Regulating Child Care Center Fees

The bill limits the amount a licensed child care center, family child care home, or substitute placement agency (child care center) may charge for a wait list fee or an application fee to $25. A child care center shall use a wait list fee or an application fee to cover only the administrative burdens of managing a wait list or processing an application. A child care center shall credit a deposit fee toward the family's first month of child care if the family secures a position with the child care center. For transparency and accountability to families, a child care center shall create and publish a policy for establishing fees. Each child care center shall make the information available to families in a clear and understandable format before families apply to and enroll in the child care center. Each child care center shall display the information in a prominent and conspicuous location:

• On the child care center's website, if applicable;
• In the child care center's facility at all times during operational hours; and
• On the child care center's application.

The bill states that if a prospective family pays a child care center, family child care home, or neighborhood youth organization (child care program) an application fee, a deposit fee, or wait list fee and is not enrolled in the child care program after six months of paying the fee, the fee is refundable. A child care program may retain a reasonable administrative fee, as determined by the department of early childhood (department), from the refundable fee before issuing a refund to the prospective family. The prospective family must submit a written request to the child care program to receive a refund. Upon receiving the written request from the prospective family, the child care program shall refund the fees to the prospective family and may remove the prospective family from the wait list. Prospective families who are offered a child care slot with a child care program and who refuse the child care slot shall not receive a refund. If a family enrolls in a child care program and signs a contract with the child care program provider, the terms of the contract, including fees outlined in the contract, are not subject to the requirements of the bill. For transparency and accountability to prospective families, a child care program shall provide a fee schedule and the process on fee refunds to a prospective family upon:

• Joining a wait list;
• Registration; and
• Request of the family.

For transparency and accountability to an enrolled family, a child care program shall provide a fee schedule and the process on fee refunds to an enrolled family upon:

• Enrollment;
• Amendments to the fee schedule; and
• Amendments to the process on fee refunds.

A child care program may publish the fee schedule digitally on the child care program's website.

During the department of early childhood's (department) periodic inspections, or if a complaint is filed regarding fees, the department shall review the information in the child care center's policy for establishing fees to confirm the child care center is complying with the law. If the department finds the child care center is not compliant, the child care center has 30 days after the date of inspection to comply. If the child care center does not comply within 30 days after the date of inspection, the department may take further disciplinary action. The department shall not take disciplinary action against a child care program that makes a good faith administrative error or is not in compliance for the first time. The department's enforcement shall focus on deliberate violations.

(Note: Italicized words indicate new material added to the original summary; dashes through words indicate deletions from the original summary.)

(Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)