Alabama DHR v. Eternal Life Learning Center - Child Care Subsidy Program
Summary
The Alabama Court of Civil Appeals reversed a lower court's decision, reinstating the Alabama Department of Human Resources' (ADHR) final decision to terminate Eternal Life Learning Center from the Child Care Subsidy Program. The court agreed with ADHR's interpretation of the "90-day rule" regarding facility compliance.
What changed
The Alabama Court of Civil Appeals has reversed a circuit court's judgment, reinstating the Alabama Department of Human Resources' (ADHR) decision to terminate Eternal Life Learning Center from the Child Care Subsidy Program. The appellate court found ADHR's interpretation of the "90-day rule" to be reasonable and upheld the agency's final decision, which had initially terminated the center's participation due to 42 identified deficiencies during a license renewal inspection.
This ruling means Eternal Life Learning Center will be removed from the Child Care Subsidy Program as per ADHR's final decision. Regulated entities participating in similar subsidy programs should review ADHR's "90-day rule" and ensure strict adherence to health and safety guidelines to avoid similar enforcement actions. The case highlights the importance of compliance with specific regulatory interpretations and the potential consequences of failing to meet program requirements.
What to do next
- Review ADHR's "90-day rule" and associated Health and Safety Guidelines.
- Ensure all facilities participating in the Child Care Subsidy Program are in full compliance with identified deficiencies and guidelines.
- Consult legal counsel regarding interpretation and application of specific regulatory rules in subsidy programs.
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Feb. 27, 2026 Get Citation Alerts Download PDF Add Note
Alabama Department of Human Resources v. Eternal Life Learning Center, Kimmi McKinstry, and Prince Etta Dunning
Court of Civil Appeals of Alabama
- Citations: None known
- Docket Number: CL-2025-0269
Judges: Bowden, J.
Combined Opinion
Rel: February 27, 2026
Notice: This opinion is subject to formal revision before publication in the advance sheets of Southern Reporter.
Readers are requested to notify the Reporter of Decisions, Alabama Appellate Courts, 300 Dexter Avenue,
Montgomery, Alabama 36104-3741 ((334) 229-0650), of any typographical or other errors, in order that corrections
may be made before the opinion is published in Southern Reporter.
ALABAMA COURT OF CIVIL APPEALS
OCTOBER TERM, 2025-2026
CL-2025-0269
Alabama Department of Human Resources
v.
Eternal Life Learning Center, Kimmi McKinstry, and Prince
Etta Dunning
Appeal from Jefferson Circuit Court
(CV-24-901554)
BOWDEN, Judge.
The Alabama Department of Human Resources ("ADHR") appeals
the March 4, 2025, judgment of the Jefferson Circuit Court reversing the
March 13, 2024, order of an administrative-law judge ("the ALJ")
upholding the September 26, 2023, final decision of ADHR ("the final
CL-2025-0269
decision") that terminated Eternal Life Learning Center ("Eternal Life")
from participation in the Child Care Subsidy Program. ADHR argues on
appeal that its interpretation of the "90-day rule" is reasonable and
supports the final decision. We agree. Accordingly, we reverse the circuit
court's judgment and remand the cause to the circuit court to enter a
judgment affirming the final decision of ADHR.
Background and Procedural History
ADHR granted Eternal Life a license to operate as a child-care
facility, and to participate in the Child Care Subsidy Program, in 2019.
Eternal Life had previously operated as a church-exempt facility, but it
sought licensure when the rules regarding federal funding for unlicensed
child-care facilities were changed.
On June 15, 2023, as part of the license-renewal process, Catressa
Rozell, a child-care consultant for ADHR, inspected Eternal Life to
ensure that the facility complied with ADHR's Health and Safety
Guidelines. Ala. Dep't of Hum. Res., Health and Safety Guidelines:
Requirements and Procedures for Facilities Participating in the Child
Care Subsidy Program, (Sept. 13, 2021), https://dhr.alabama.gov/wp-
content/uploads/2021/06/PROPOSED-Blue-Book-Health-and-Safety-
2
CL-2025-0269
Guidelines-.pdf (https://perma.cc/M9ED-MDDS) (last visited Feb. 23,
2026). Rozell identified 42 "deficiencies" at Eternal Life during that
inspection. See Ala. Admin. Code (Dep't of Hum. Res.), r. 660-5-20-.02(2)
(defining "deficiency" as "non-compliance with [ADHR's] Health and
Safety Guidelines"). During that inspection, Rozell met with Prince Etta
Dunning, who is Eternal Life's "sole owner and staff member employee,"
to address the 42 deficiencies and discuss how to bring Eternal Life into
compliance with ADHR's Health and Safety Guidelines.
Rozell made a follow-up visit to Eternal Life on June 28, 2023.
Rozell cited five deficiencies, and Eternal Life remained noncompliant
with ADHR's Health and Safety Guidelines at that time.
Rozell inspected Eternal Life again on July 21, 2023, citing three
deficiencies. Eternal Life remained noncompliant with ADHR's Health
and Safety Guidelines at that time.
Rozell made a follow-up visit to Eternal Life on August 11, 2023,
and cited three deficiencies. One of the deficiencies related to an
"indicated" finding of child abuse/neglect regarding Dunning based on a
report dated April 26, 1988. Because of the three deficiencies, Eternal
Life remained noncompliant with ADHR's Health and Safety Guidelines.
3
CL-2025-0269
Rozell inspected Eternal Life again on September 14, 2023, and was
joined by Tonya Swanner, Program Manager for ADHR's Child Care
Licensing Division. Swanner and Rozell met with Kimmi McKinstry --
Eternal Life's "Director and Staff member employee" -- to address
Dunning's "indicated" disposition and gave McKinstry the option of
becoming the licensee for Eternal Life to resolve that deficiency. Rozell
cited a total of nine deficiencies at Eternal Life on that visit; three were
corrected at the time of that visit, but six deficiencies were not corrected.
Because of the remaining deficiencies, Eternal Life continued to be
noncompliant with ADHR's Health and Safety Guidelines.
On September 26, 2023 -- 90 days after Rozell's initial inspection of
Eternal Life -- ADHR issued a final decision to terminate Eternal Life
from the Child Care Subsidy Program.1 The final decision stated the
following:
"The registration to participate in the Child Care
Subsidy Program for the above-named facility is
TERMINATED effective October 11, 2023. The statutory and
regulatory authority for the TERMINATION is found in the
Child Care and Development Block Grant Act (42 U.S.C.S. §§
1Rozell continued to work with Eternal Life after the final decision.
She made a follow-up visit to Eternal Life on November 3, 2023, noting
two deficiencies, and on January 23, 2024, noting eight deficiencies.
4
CL-2025-0269
9857 et seq.) and in the Administrative Code, Section 660-5-
20.
"This TERMINATION is necessary and based on the
following violation(s):
"According to the Health and Safety Guidelines, Section
I, B, 3,
" 'The facility shall be ineligible to participate
in the Child Care Subsidy Program if any violation
of any of these Guidelines (deficiency) is not
corrected within ninety (90) days of the discovery
of the deficiency. This decision is a result of your
failure to resolve the deficiencies cited herein
within the 90-day period. [ADHR]'s representative
inspected your site on the following dates:
6/15/2023, 6/28/2023, 7/21/2023, 8/11/2023, and
9/14/2023. Upon the final inspection dated
9/14/2023[,] the outstanding deficiencies were not
addressed. It is therefore [ADHR]'s decision to
terminate your participation in the subsidy
program. In such instances the facility will remain
ineligible to participate until such time that no
deficiencies exist as verified by [ADHR]'s
representative.'
"You have the right to request a fair hearing in response
to this action. The Provider Request for a Fair Hearing form
is included with this notice. Requests for hearings must be
made in writing to your local Child Care Management Agency
(CMA) by you or your legal representative within 60 days of
the action. Your CMA is Child Care Central [address and
phone number omitted].
"Should you have any questions contact Ingrid Blocker,
Program Specialist, Office of Child Care Subsidy [phone
number omitted]."
5
CL-2025-0269
(Capitalization in original; emphasis added.)
On October 3, 2023, pursuant to § 44-22-12, Ala. Code 1975,
McKinstry requested an administrative hearing before the ALJ of
ADHR's final decision on behalf of Eternal Life.2 The ALJ held hearings
on December 11, 2023, and February 21, 2024.
On March 13, 2024, the ALJ entered an order, in pertinent part,
that affirmed the final decision of ADHR to terminate Eternal Life's
participation in the Child Care Subsidy Program. The ALJ made the
following findings of fact and conclusions of law:
"[ADHR] established by a preponderance of the evidence
that the decision to terminate [Eternal Life] from
participation in the Child Care Subsidy Program should be
upheld. According to [ADHR's] Child Care Subsidy Program
Policies and Procedures Manual, a facility shall be ineligible
to participate in the Child Care Subsidy Program if any
violation of any of these Guidelines (deficiency) is not
corrected within ninety (90) days of the discovery of the
2An administrative hearing was later requested regarding the child
abuse/neglect report regarding Dunning. When that report was made in
1988, there was no process to challenge an "indicated" finding. See Ala.
Code 1975, § 26-14-7.1. However, ADHR agreed to provide an
administrative hearing to Dunning.
The ALJ combined Dunning's hearing and the hearing on ADHR's
final decision to terminate Eternal Life from participation in the Child
Care Subsidy Program. ADHR temporarily reinstated Eternal Life's
participation in the Child Care Subsidy Program on December 19, 2023,
pending the disposition of both matters.
6
CL-2025-0269
deficiency. … [T]he evidence clearly shows that [ADHR]'s
representative inspected the facility on 6/15/2023. 6/28/2023,
7/21/2023, 8/11/2023, and 9/14/2023 and discovered ongoing
deficiencies. Furthermore, [ADHR] established that
deficiencies remained after the ninety (90) day time period.
"Therefore … [ADHR]'s decision to terminate [Eternal
Life] from participation in the Child Care Subsidy Program is
affirmed."3
Eternal Life, McKinstry, and Dunning ("the Eternal Life parties")
mailed a notice of appeal to ADHR on March 20, 2024. See Ala. Code
1975, § 41-22-20(d) ("The notice of appeal or review shall be filed within
30 days after the receipt of the notice of or other service of [the ALJ's]
final decision … upon the petitioner …."). On April 16, 2024, the Eternal
Life parties timely filed a pleading in the Jefferson Circuit Court titled
"petition for judicial review of [the ALJ's] final decision, complaint for
damages under state law Ala. Const., 1901 Art. I, § 13 and an action
pursuant to 42 USC § 1983." See § 41-22-20(d) ("The petition for judicial
review in the circuit court shall be filed within 30 days after the filing of
the notice of appeal or review."). The Eternal Life parties petitioned the
circuit court, among other things, to reverse the ALJ's order upholding
3The ALJ also found that ADHR had not proven by a preponderance
of the evidence that Dunning had engaged in child abuse/neglect in
relation to the 1988 report and concluded that the disposition of that
matter shall be marked as "not indicated."
7
CL-2025-0269
ADHR's final decision that terminated Eternal Life's participation in the
Child Care Subsidy Program.
ADHR removed the action to the United States District Court for
the Northern District of Alabama ("the federal district court") on May 24,
- On October 10, 2024, the federal district court remanded the
Eternal Life parties' appeal to the circuit court.4 The circuit court held a
hearing on February 12, 2025.
On March 4, 2025, the circuit court entered a judgment reversing
the ALJ's order upholding ADHR's final decision and ordering ADHR to
retroactively reinstate the Eternal Life parties' participation in the Child
Care Subsidy Program.5 In support of its judgment, the circuit court
made the following findings:
4The federal district court retained jurisdiction over the Eternal
Life parties' federal-law and state-law claims against numerous
individual defendants, none of which are parties to the present appeal.
During the pendency of the present appeal, the federal district court
entered an order dismissing the Eternal Life parties' federal-law claims
against the numerous individual defendants under Rule 12(b)(6), Fed. R.
Civ. P. The federal district court remanded the Eternal Life parties' state-
law claims against the numerous individual defendants to the circuit
court.
5The circuit court also held that the Eternal Life parties were
entitled to retroactive benefits and payments that they would have
8
CL-2025-0269
"After careful review of [the Eternal Life parties']
Second Amended Petition for Judicial Review, [ADHR]'s
Answer, the administrative record and transcript of the
underlying administrative proceedings, the parties'
respective briefs filed in this matter, and consideration of the
oral arguments made before this Court on February 12, 2025,
this Court respectfully disagrees with the [ALJ]'s findings and
interpretation of the [Health and Safety] Guidelines. The key
issue in the case is the interpretation of DHR's ninety (90) day
rule concerning correcting deficiencies. Simply stated, the
Guidelines are unclear and ambiguous.
"Therefore, it is ORDERED, ADJUDGED, and
DECREED:
"1. [ADHR] is ORDERED to reinstate [the
Eternal Life parties'] participation in the Child
Care Subsidy Program retroactively to October 11,
2023.
"2. [The Eternal Life parties] are entitled
to retroactive benefits and any payments [the
Eternal Life parties] would have received that
were not paid from October 11, 2023[,] through the
date the Child Care Subsidy [Program] payments
were reinstated to the [Eternal Life parties].
received had ADHR not terminated Eternal Life from participation in the
Child Care Subsidy Program. ADHR argues on appeal that the Eternal
Life parties are not entitled to retroactive benefits or payments because
they do not have a property interest in the Child Care Subsidy Program.
Because we reverse the judgment on other grounds, we pretermit
discussion on this argument. See, e.g., McDaniel v. Harleysville Mut. Ins.
Co., 84 So. 3d 106, 113 (Ala. Civ. App. 2011) ("Because we conclude that
Harleysville's motion was without merit and that the trial court's
judgment is due to be reversed, we pretermit discussion of the other
grounds for reversal the McDaniels assert on appeal.").
9
CL-2025-0269
"3. The court costs associated with these
proceedings are hereby taxed to [ADHR and the
numerous individual defendants].
"All other or further relief requested by any party in this
case is DENIED, as this is a final Order."
(Capitalization in original; emphasis added.)
ADHR filed a timely notice of appeal from the judgment on April
14, 2025. See Ala. Code 1975, § 41-22-21 ("The appeal [of a final judgment
from the circuit court under Ala. Code 1975, § 41-22-20,] shall be taken
within 42 days of the date of the entry of the judgment ….").
Standard of Review
This court recently summarized the standard of judicial review of
an agency's decision under § 41-22-20:
" 'This court reviews a circuit court's judgment as to an
agency's decision without a presumption of correctness
because the circuit court is in no better position to review the
agency's decision than is this court.' Affinity Hosp., LLC v. St.
Vincent's Health Sys., 129 So. 3d 1022, 1025 (Ala. Civ. App.
2012).
"….
"Under the Alabama Administrative Procedure Act, §
41-22-1 et seq., Ala. Code 1975, the final decision of an agency,
such as [ADHR], 'shall be taken as prima facie just and
reasonable' and may be reversed or modified if the court finds
that the agency action is '[u]nreasonable, arbitrary, or
capricious, or characterized by an abuse of discretion or a
clearly unwarranted exercise of discretion.' Ala. Code 1975, §
10
CL-2025-0269
41-22-20(k). A court 'shall not substitute its judgment for that
of the agency as to the weight of the evidence on questions of
fact, except where otherwise authorized by statute.' Id.
"….
" 'This court has held that a decision cannot be said to be
"arbitrary" where there is a reasonable justification for the
decision or where the determination is founded upon adequate
principles or fixed standards.' Alabama Dep't of Pub. Health
v. Perkins, 469 So. 2d 651, 652 (Ala. Civ. App. 1985). ' " ' " '[A]
decision is capricious if it is so unreasonable as to "shock the
sense of justice and indicate lack of fair and careful
consideration." ' " ' " ' Alabama Dep't of Youth Servs. v. State
Pers. Bd., 7 So. 3d 380, 386 (Ala. Civ. App. 2008) (quoting
Alabama Dep't of Hum. Res. v. Dye, 921 So. 2d 421, 427 (Ala.
Civ. App. 2005), quoting in turn Westring v. James, 71 Wis.
2d 462, 476-77, 238 N.W.2d 695, 702-03 (1976), quoting in
turn Scharping v. Johnson, 32 Wis. 2d 383, 390, 145 N.W.2d
691, 695 (1966))."
Alabama Crime Victims Comp. Comm'n v. Thomas, [Ms. CL-2025-0178,
Dec. 19, 2025] ___ So. 3d __, __ (Ala. Civ. App. 2025).
A court reviewing the final decision of an agency must defer to the
agency's interpretation of its own rules and regulations unless the
interpretation is arbitrary or unreasonable. See Alabama Medicaid
Agency v. Kerby, 84 So. 3d 95, 104 (Ala. Civ. App. 2011) (" '[A]n agency's
interpretation of its own regulation must stand if it is reasonable, even
though it may not appear as reasonable as some other interpretation.' "
11
CL-2025-0269
(quoting Ferlisi v. Alabama Medicaid Agency, 481 So. 2d 400, 403 (Ala.
Civ. App. 1985))).
Analysis
"[ADHR] is required to create and implement health and safety
standards for all child care facilities in order to receive Child Care and
Development Funds (CCDF), through the Child Care Subsidy Program."
Ala. Admin. Code (Dep't of Hum. Res.), r. 660-5-20-.01. One way that
ADHR ensures that a child-care facility meets its health and safety
standards is to inspect the facility, identify noncompliance with ADHR's
Health and Safety Guidelines, prepare a deficiency report, and discuss
the deficiency report with the facility's representative. Ala. Admin. Code
(Dep't of Hum. Res.), r. 660-5-20-.02(2)-(3).
ADHR argues that its interpretation of "the 90-day rule" that the
circuit court found to be the "key issue in the case" is reasonable and
supports the final decision to terminate Eternal Life's participation in the
Child Care Subsidy Program. We agree that ADHR's interpretation of
the 90-day rule is reasonable.
"The 90-day rule" refers to the 90-day period in which a child-care
facility must correct any violation of ADHR's Health and Safety
12
CL-2025-0269
Guidelines in order to remain eligible to participate in the Child Care
Subsidy Program:
"The facility shall be ineligible to participate in the Child Care
Subsidy Program if any violation of any of these Guidelines
(deficiency) is not corrected within ninety (90) days of the
discovery of the deficiency. In such instances the facility will
remain ineligible to participate until such time that no
deficiencies exist as verified by [ADHR]'s representative."
Ala. Admin. Code (Dep't of Hum. Res.), r. 660-5-20-.02(4).
As we have stated, because the question at issue here is one of
interpretation of ADHR's own rules and regulations, a reviewing court
must defer to ADHR's interpretation unless it is unreasonable or
arbitrary. See Kerby, 84 So. 3d at 104; see also § 41-22-20(k).
ADHR interprets the 90-day rule to mean that, after a deficiency is
discovered and the 90-day period begins, a child-care facility must have
zero deficiencies at the end of the 90-day period to remain eligible for the
Child Care Subsidy Program. According to ADHR, the 90-day period does
not reset every time a new deficiency is discovered. During the
administrative hearing, Rozell testified that, based on ADHR's
interpretation of the 90-day rule, Eternal Life had 90 days from the
initial inspection date of June 15, 2023, "to become overall in compliance
13
CL-2025-0269
with the evaluation …." Swanner also testified about how ADHR
interprets the 90-day rule during the administrative hearing:
"For the 90 days, anytime [ADHR] go[es] out to a facility
and we find any kind of noncompliance and that facility
accepts childcare subsidy … that starts the 90-day window. …
And the facility has that 90-day window to make any
corrections necessary to come into compliance in order to be
eligible to stay on childcare subsidy.
"So it starts at the -- whatever that first visit is, that
first noncompliance. It doesn't matter what kind of visit that
is. It could be a visit like this where we're starting a [license]
renewal. … So any time we see a noncompliant [sic], that
starts that 90 days ….
"….
"The only time a 90-day period would start over is if [the
child-care facility] were in compliance. So [it] would have zero
deficiencies."
Applying its interpretation of the 90-day rule to the facts in this
case, ADHR concluded that Eternal Life was ineligible to participate in
the Child Care Subsidy Program; Eternal Life continued to have
deficiencies 90 days after ADHR's initial inspection. Accordingly, ADHR
terminated Eternal Life from the Child Care Subsidy Program.
The circuit court disagreed with ADHR's interpretation of the 90-
day rule that was implicitly adopted by the ALJ in his order. In the
judgment, the circuit court found that "the Guidelines are unclear and
14
CL-2025-0269
ambiguous" and "respectfully disagree[d]" with the ALJ's "findings and
interpretation of the Guidelines."6
We agree with the circuit court that the 90-day rule is ambiguous
and appears to contradict itself. On one hand, the 90-day rule appears to
state that a child-care facility has 90 days from the discovery of a
deficiency to correct that deficiency but, in the interim, will remain
eligible to participate in the Child Care Subsidy Program. Ala. Admin.
Code (Dep't Hum. Res.), r. 660-5-20-.02(4). On the other hand, the 90-day
rule clearly states that "the facility will remain ineligible to participate
[in the Child Care Subsidy Program] until such time that no deficiencies
exist …." Id.
ADHR's interpretation of the 90-day rule resolves the ambiguity
and apparent conflict by concluding that a child-care facility has 90 days
to correct all deficiencies, so that no deficiencies exist, to remain eligible
to participate in the Child Care Subsidy Program. As ADHR points out
in its brief, if ADHR interpreted the 90-day rule to require a separate 90-
day period for each deficiency, a child-care facility could be noncompliant
6ADHR's Health and Safety Guidelines contain the same language
regarding "the 90-day rule" as Ala. Admin. Code (Dep't of Hum. Res.), r.
660-5-20-.02(4).
15
CL-2025-0269
with ADHR's Health and Safety Guidelines in perpetuity. Such an
interpretation would not align with ADHR's obligation to ensure that our
state's child-care facilities meet and maintain ADHR's Health and Safety
Guidelines. Even if the circuit court concluded that ADHR's
interpretation of the 90-day rule was not as reasonable as some other
interpretation, our caselaw requires that ADHR's interpretation of its
own rules and regulations, if reasonable, must stand. Kerby, 84 So. 3d at
104.
Conclusion
Based on the foregoing, we conclude that ADHR's interpretation of
the 90-day rule is reasonable. Accordingly, we reverse the circuit court's
judgment and remand the cause to the circuit court to enter an order
affirming the ALJ's order upholding ADHR's final decision in accordance
with this opinion.
REVERSED AND REMANDED WITH INSTRUCTIONS.
Moore, P.J., and Edwards and Hanson, JJ., concur.
Fridy, J., dissents, without opinion.
16
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