(1) An individual or entity that operates a school-age program must be licensed by the department as a school-age program, pursuant to RCW 43.216.295, unless exempt under RCW 43.216.010(2) and WAC 110-301-0025.

(2) The department must not license a department employee or a member of the employee's household if the employee is involved directly, or in an administrative or supervisory capacity, in the:

(a) Licensing process;

(b) Placement of a child in a licensed school-age program; or

(c) Authorization of payment for the child in care.