Regulating Child Care Center Fees

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 act makes the fee is refundable. A child care program may retain a reasonable administrative fee determined by the department of early childhood (department) 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 act.

A child care program shall provide a fee schedule and the process on fee refunds to a prospective family and an enrolled family. A child care program may publish the fee schedule digitally on the child care program's website.

During the department's periodic inspections, or if a complaint is filed regarding fees, the act directs the department to 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.

(Note: This summary applies to this bill as enacted.)