Analysis
Topic: Child Care Regulation
SPONSOR: Representative Gustafson
COMMITTEE: Human Services and Children
POSITION: The Department of Consumer and Industry Services supports the bill.
PROBLEM/BACKGROUND: The child day care licensing function in the Department of
Consumer and Industry Services is unable to keep up with the demand for child day care
licensure. The demand for inspections, investigations and license renewals from a system that
now includes over 21,000 providers has placed extraordinary demands on the child care licensing
system. As a result, resources may not always be available to provide the most prompt response
and oversight in the highest priority areas. Regulation needs to be focused on those areas where
there are the greatest threats to the health, safety and welfare of children.
DESCRIPTION OF THE BILL: The Bill would exclude from regulation several categories
of facilities where there is little risk to the health, safety and welfare of children. These include:
Facilities for school age children and other children operated by a school district;
Child care centers, group day care homes or private homes that operate for less than 2
hours per day, for 1 day or less each week or for 6 weeks or less in a 12-month period.
A facility operated by a bowling alley, ski resort, malls, department stores and similar
facilities, where parents are in the general vicinity while in care.
A child care center or private home that provides care for 3 or less children.
SUMMARY OF ARGUMENTS:
PRO: The bill would increase the quality of child care regulation by permitting the department
to focus more resources on its core mission of protecting children. By narrowing the scope of
regulation, the department will be able to focus more resources on areas that have the greatest
need for regulation. The goal of protecting children in licensed facilities from harm will be
enhanced.
The bill will provide more security for the public by clarifying exactly what is regulated. The
public often assumes that there is a licensing presence when there may be none, because a
significant number of providers do not apply for licensure.
CON: There are still risks of harm to children in the facilities exempted by this bill.
Exempting facilities with 3 or fewer children from registration and licensing opens the door for
providers who have had their certificate of registration or license revoked to re-open with fewer
children. Such individuals should be prohibited from providing care to children under any
condition.
SUPPORTER/PROPONENTS: There is no information available at this time.
FISCAL INFORMATION: Licensing staff would not be reduced. It is estimated that the
current 21,675 regulated child care facilities would be reduced by about 3,500 to approximately
18,000 facilities. This includes an estimated 1,500 school-run programs caring for children 2 «
years or older. These reductions in the scope of licensing would reduce fee revenues.
ECONOMIC IMPACT: The bill should increase the availability of day care services by
easing entry by those who begin by providing care for a few children or intermittent care. As
these new business grow, they will join the thousands of other licensed providers when their
numbers or the scope of their care exceeds the thresholds in the bill. This outcome benefits the
economy by encouraging new enterprises and making day care more available and affordable for
Michigan workers.
ADMINISTRATIVE RULES IMPACT: No administrative rules will be needed.
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