Section 1. Section 26B-2-401 is amended to read:26B-2-401. Definitions.As used in this part:(1)"Capacity limit" means the maximum number of qualifying children that a regulated provider may care for at any given time, in accordance with rules made by the department.(2)(a)"Center based child care" means child care provided in a facility or program that is not the home of the provider.(b)"Center based child care" does not include:(i)residential child care; or(ii)care provided in a facility or program exempt under Section 26B-2-405.(3)"Certified provider" means a person who holds a certificate from the department under Section 26B-2-404.(4)"Child care" means continuous care and supervision of a qualifying child, that is:(a)in lieu of care ordinarily provided by a parent in the parent's home;(b)for less than 24 hours a day; and(c)for direct or indirect compensation.(5)"Child care program" means a child care facility or program operated by a regulated provider.(6)"Exempt provider" means a person who provides care described in Subsection 26B-2-405(2).(7)"Licensed provider" means a person who holds a license from the department under Section 26B-2-403.(8)"Licensing committee" means the Child Care Provider Licensing Committee created in Section 26B-1-204.(9)"Public school" means:(a)a school, including a charter school, that:(i)is directly funded at public expense; and(ii)provides education to qualifying children for any grade from first grade through twelfth grade; or(b)a school, including a charter school, that provides:(i)preschool or kindergarten to qualifying children, regardless of whether the preschool or kindergarten is funded at public expense; and(ii)education to qualifying children for any grade from first grade through twelfth grade, if each grade, from first grade to twelfth grade, that is provided at the school, is directly funded at public expense.(10)"Qualifying child" means an individual who is:(a)(i)under the age of 13 years old; or(ii)under the age of 18 years old, if the person has a disability; and(b)a child of:(i)a person other than the person providing care to the child;(ii)a regulated provider, if the child is under the age of four; or(iii)an employee or owner of a licensed child care center, if the child is under the age of four.(11)"Registered home-based child care provider" means a child care provider who receives a registration from the department under Section 26B-2-411.(12)"Regulated provider" means a licensed provider or certified provider.certified provider, licensed provider, or registered home-based child care provider.(12)(13)"Residential child care" means child care provided in the home of the provider.

Section 2. Section 26B-2-403 is amended to read:26B-2-403. Licensure requirements -- Expiration -- Renewal.(1)Except as provided in Section 26B-2-405, and subject to Subsection (2), a person shall obtain a license from the department if:(a)the person provides center based child care for five or more qualifying children;(b)the person provides residential child care for nine11 or more qualifying children; or(c)the person is registered as a home-based child care provider in accordance with Section 26B-2-411, and participates in the Home-based Child Care Capacity Expansion Grant Program created under Section 35A-3-211; or(c)(d)the person:(i)provides child care;(ii)is not required to obtain a license under Subsection (1)(a) or (b), (b), or (c); and(iii)requests to be licensed.(2)Notwithstanding Subsection (1), a certified provider may, in accordance with rules made by the department under Subsection 26B-2-402(3), exceed the certified provider's capacity limit to provide after school child care without obtaining a license from the department.(3)The department may issue licenses for a period not exceeding 24 months to child care providers who meet the requirements of:(a)this part; and(b)the department's rules governing child care programs.(4)A license issued under this part is not assignable or transferable.

Section 3. Section 26B-2-404 is amended to read:26B-2-404. Residential Child Care Certificate.(1)Except as provided in Section 26B-2-405Sections 26B-2-405 and 26B-2-411, a person may request a Residential Child Care Certificate from the department if the person provides residential child care for eight10 or fewer qualifying children.(2)The minimum qualifications for a Residential Child Care Certificate are:(a)the submission of:(i)an application in the form prescribed by the department;(ii)a certification and criminal background fee established in accordance with Section 26B-1-209; and(iii)in accordance with Section 26B-2-406, identifying information for each adult person and each juvenile age 12 through 17 years old who resides in the provider's home:(A)for processing by the Department of Public Safety to determine whether any such person has been convicted of a crime;(B)to screen for a substantiated finding of child abuse or neglect by a juvenile court; and(C)to discover whether the person is listed in the Licensing Information System described in Section 80-2-1002;(b)an initial and annual inspection of the provider's home within 90 days of sending an intent to inspect notice to:(i)check the immunization record, as defined in Section 53G-9-301, of each qualifying child who receives child care in the provider's home;(ii)identify serious sanitation, fire, and health hazards to qualifying children; and(iii)make appropriate recommendations; and(c)annual training consisting of 10 hours of department-approved training as specified by the department by administrative rule, including a current department-approved CPR and first aid course.(3)If a serious sanitation, fire, or health hazard has been found during an inspection conducted pursuant to Subsection (2)(b), the department shall require corrective action for the serious hazards found and make an unannounced follow up inspection to determine compliance.(4)In addition to an inspection conducted pursuant to Subsection (2)(b), the department may inspect the home of a certified provider in response to a complaint of:(a)child abuse or neglect;(b)serious health hazards in or around the provider's home; or(c)providing residential child care without the appropriate certificate or license.(5)With respect to residential child care, the department may only make and enforce rules necessary to implement this section.

Section 4. Section 26B-2-405 is amended to read:26B-2-405. Exclusions from part -- Criminal background checks by an excluded person.(1)(a)Except as provided in Subsections (1)(b) and (1)(c), the provisions and requirements of this part do not apply to:(i)a facility or program owned or operated by an agency of the United States government;(ii)group counseling provided by a mental health therapist, as defined in Section 58-60-102, who is licensed to practice in this state;(iii)a health care facility licensed under Part 2, Health Care Facility Licensing and Inspection;(iv)care provided to a qualifying child by or in the home of a parent, legal guardian, grandparent, brother, sister, uncle, or aunt;(v)care provided to a qualifying child, in the home of the provider, for less than four hours a day or on a sporadic basis, unless that child care directly affects or is related to a business licensed in this state;(vi)care provided at a residential support program that is licensed by the department;(vii)center based child care for four or fewer qualifying children, unless the provider requests to be licensed under Section 26B-2-403; or(viii)residential child care for eight10 or fewer qualifying children, unless the provider requests to be licensed under Section 26B-2-403 or , certified under Section 26B-2-404., or registered home-based child care under Section 26B-2-411.(b)(i)A person that does not hold a license or certificateis not a regulated provider from the department under this part may not, at any given time, provide child care in the person's home for more than 10 children in total under the age of 13 years old, or under the age of 18 years old if a child has a disability, regardless of whether a child is related to the person providing child care.(ii)A person providing care described in Subsection (1)(a)(viii) may not provide, at any given time, child care in the person's home for more than two children who are under three years old.(c)A person providing care described in Subsection (1)(a)(viii) that is not a certified provider or a licensed providerregulated provider under this part is subject to the requirements of Section 26B-2-406.(2)The licensing and , certification, and registration requirements of this part do not apply to:(a)care provided to a qualifying child as part of a course of study at or a program administered by an educational institution that is regulated by the boards of education of this state, a private education institution that provides education in lieu of that provided by the public education system, or by a parochial education institution;(b)care provided to a qualifying child by a public or private institution of higher education, if the care is provided in connection with a course of study or program, relating to the education or study of children, that is provided to students of the institution of higher education;(c)care provided to a qualifying child at a public school by an organization other than the public school, if:(i)the care is provided under contract with the public school or on school property; or(ii)the public school accepts responsibility and oversight for the care provided by the organization;(d)care provided to a qualifying child as part of a summer camp that operates on federal land pursuant to a federal permit;(e)care provided by an organization that:(i)qualifies for tax exempt status under Section 501(c)(3) of the Internal Revenue Code;(ii)provides care pursuant to a written agreement with:(A)a municipality, as defined in Section 10-1-104, that provides oversight for the program; or(B)a county that provides oversight for the program; and(iii)provides care to a child who is over the age of four years old and under the age of 13 years old; or(f)care provided to a qualifying child at a facility where:(i)the parent or guardian of the qualifying child is at all times physically present in the building where the care is provided and the parent or guardian is near enough to reach the child within five minutes if needed;(ii)the duration of the care is less than four hours for an individual qualifying child in any one day;(iii)the care is provided on a sporadic basis;(iv)the care does not include diapering a qualifying child; and(v)the care does not include preparing or serving meals to a qualifying child.(3)An exempt provider shall submit to the department:(a)the information required under Subsections 26B-2-406(1) and (2); and(b)of the children receiving care from the exempt provider:(i)the number of children who are less than two years old;(ii)the number of children who are at least two years old and less than five years old; and(iii)the number of children who are five years old or older.(4)An exempt provider shall post, in a conspicuous location near the entrance of the exempt provider's facility, a notice prepared by the department that:(a)states that the facility is exempt from licensure and ,certification, and registration; and(b)provides the department's contact information for submitting a complaint.(5)(a)Except as provided in Subsection (5)(b), the department may not release the information the department collects from exempt providers under Subsection (3).(b)The department may release an aggregate count of children receiving care from exempt providers, without identifying a specific provider.

Section 5. Section 26B-2-406 is amended to read:26B-2-406. Disqualified individuals -- Criminal history checks -- Payment of costs.(1)(a)Each exempt provider, except as provided in Subsection (1)(c), each person described in Subsection 26B-2-405(1)(a)(viii) that is not a certified provider or a licensed providerregulated provider, and each person requesting a residential certificate or, to be licensed or to renew a license, or to register as a home-based child care provider under this part shall submit to the department the name and other identifying information, which shall include fingerprints, of existing, new, and proposed:(i)owners;(ii)directors;(iii)members of the governing body;(iv)employees;(v)providers of care;(vi)volunteers, except parents of children enrolled in the programs; and(vii)all adults residing in a residence where child care is provided.(b)(i)The Utah Division of Criminal Investigation and Technical Services within the Department of Public Safety shall process the information required under Subsection (1)(a) to determine whether the individual has been convicted of any crime.(ii)The Utah Division of Criminal Investigation and Technical Services shall submit fingerprints required under Subsection (1)(a) to the FBI for a national criminal history record check.(iii)A person required to submit information to the department under Subsection (1) shall pay the cost of conducting the record check described in this Subsection (1)(b).(c)An exempt provider who provides care to a qualifying child as part of a program administered by an educational institution that is regulated by the State Board of Education is not subject to this Subsection (1), unless required by the Child Care and Development Block Grant, 42 U.S.C. Secs. 9857-9858r.(2)(a)(i)Each person requesting a residential certificate or to be licensed or to renew a license under this part andto be regulated under this part shall submit to the department the name and other identifying information of any person ages 12 through 17 who resides in the residence where the child care is provided.(ii) eachEach person described in Subsection 26B-2-405(1)(a)(viii) that is not a certified provider or a licensed providerregulated provider shall submit to the department the name and other identifying information of any person age 12 through 17 who resides in the residence where the child care is provided. (ii)(iii) The identifying information required under Subsections (2)(a)(i) and (ii) for a person age 12 through 17 does not include fingerprints.(b)The department shall access the juvenile court records to determine whether a person described in Subsection (1) or (2)(a) has been adjudicated in juvenile court of committing an act which if committed by an adult would be a felony or misdemeanor if:(i)the person described in Subsection (1) is under the age of 28 years old; or(ii)the person described in Subsection (1) is:(A)over the age of 28 years old; and(B)has been convicted, has pleaded no contest, or is currently subject to a plea in abeyance or diversion agreement for a felony or misdemeanor.(3)Except as provided in Subsections (4) and (5), a licensee under this part, a person described in Subsection 26B-2-405(1)(a)(viii) that is not a certified provider or a licensed providerregulated provider, or an exempt provider may not permit a person who has been convicted, has pleaded no contest, or is currently subject to a plea in abeyance or diversion agreement for any felony or misdemeanor, or if the provisions of Subsection (2)(b) apply, who has been adjudicated in juvenile court of committing an act which if committed by an adult would be a felony or a misdemeanor, to:(a)provide child care;(b)provide volunteer services for a child care program or an exempt provider;(c)reside at the premises where child care is provided; or(d)function as an owner, director, or member of the governing body of a child care program or an exempt provider.(4)(a)The department may, by rule, exempt the following from the restrictions of Subsection (3):(i)specific misdemeanors; and(ii)specific acts adjudicated in juvenile court, which if committed by an adult would be misdemeanors.(b)In accordance with criteria established by rule, the executive director may consider and exempt individual cases not otherwise exempt under Subsection (4)(a) from the restrictions of Subsection (3).(5)The restrictions of Subsection (3) do not apply to the following:(a)a conviction or plea of no contest to any nonviolent drug offense that occurred on a date 10 years or more before the date of the criminal history check described in this section; or(b)if the provisions of Subsection (2)(b) apply, any nonviolent drug offense adjudicated in juvenile court on a date 10 years or more before the date of the criminal history check described in this section. (6)The department may retain background check information submitted to the department for up to one year after the day on which the covered individual is no longer associated with a Utah child care provider.

Section 6. Section 26B-2-411 is enacted to read:26B-2-411. Home-based child care provider registration.(1)Except as provided in Sections 26B-2-405 and 35A-3-211, a person shall register with the department as a registered home-based child care provider if the person provides residential child care for:(a)more than four qualifying children; and(b)fewer than 10 qualifying children.(2)A person providing care described in Subsection (1) may not provide, at any given time, child care in the person's home for more than two children who are under three years old.(3)The minimum qualifications for home-based child care registration are:(a)the submission of:(i)certification and criminal background fee established in accordance with Section 26B-1-209;(ii)in accordance with Section 26B-2-406, fingerprints and identifying information for each adult person who resides in the provider's home, and identifying information for each juvenile ages 12 through 17 who resides in the provider's home:(A)for obtaining and evaluating relevant information from the Criminal Investigations and Technical Services Division of the Department of Public Safety;(B)to screen for a substantiated finding of child abuse or neglect by a juvenile court;(C)to discover whether the person is listed in the Licensing Information System described in Section 80-2-1002; and(D)to access the juvenile court records to determine whether a person described in Subsection (3)(a)(ii) has been adjudicated in juvenile court of committing an act, which if committed by an adult, would be a felony or misdemeanor; and(iii)the identifying information required for a person ages 12 through 17 does not include fingerprints;(b)annual training consisting of 10 hours of department-approved training as specified by the department by administrative rule, including a current department-approved CPR and first aid course; and(c)signing an acknowledgment that the person shall immediately report suspected child abuse or neglect, in accordance with Section 80-2-602.(4)A registrant under this section shall disclose with families contracting care current registration status:(a)for a period of two years beginning on the day on which the department revokes a previous license or certificate, if a previous license or certificate was revoked; and(b)for a period of two years beginning on the day on which the department denies a previous certificate, license, or registration, if a previous certificate, license, or registration was denied.(5)If the department revokes or denies an application for a registration or license under this part, the person may not operate a child care program for two years beginning on the day on which the department denies or revokes the registration or license application.(6)Except as provided in Section 35A-3-211, a registered home-based child care provider may also obtain a certificate or license as provided in this chapter.(7)With respect to home-based child care, the department may only make and enforce rules necessary to implement this section.

Section 7. Section 35A-3-211 is enacted to read:35A-3-211. Home-based Child Care Capacity Expansion Grant Program.(1)As used in this section:(a)"Capacity limit" means the same as that term is defined in Section 26B-2-401.(b)"CCQS" means the Child Care Quality System created by the office.(c)"Child care" means the same as that term is defined in Section 26B-2-401.(d)"Child care desert" means a county with more than three children under five years old for every regulated child care slot.(e)"Grant" means a home-based child care capacity expansion grant program award described in this section.(f)"Non-traditional hours" means:(i)for a weekday:(A)hours beginning before 8 a.m.; or(B)hours after 6 p.m.; or(ii)any time on a weekend.(g)"Program" means the Home-based Child Care Capacity Expansion Grant Program created in Subsection (2).(h)"Qualifying child" means the same as that term is defined in Section 26B-2-401.(i)"Registered home-based child care provider" means the same as that term is defined in Section 26B-2-401.(2)This section creates the Home-based Child Care Capacity Expansion Grant Program.(3)Beginning on July 1, 2026, the office may award a grant to a person:(a)seeking to start a registered home-based child care business; or(b)who operates as a registered home-based child care provider in accordance with Section 26B-2-411.(4)A grant recipient described in Subsection (3) who is not already licensed with the Department of Health and Human Services in accordance with Title 26B, Chapter 2, Part 4, Child Care Licensing, shall apply for a license no later than 90 days after the day on which the recipient receives the award.(5)The office shall prioritize grant applications for home-based child care centers based on one, or a combination of factors that:(a)expand child care capacity;(b)operate within a child care desert;(c)operate during non-traditional hours;(d)participate in CCQS; or(e)other factors determined by the office by rule, in accordance with Subsection (11).(6)(a)A grant recipient shall use a grant award for:(i)expenses directly related to obtaining and maintaining a license from the Department of Health and Human Services;(ii)minor home modifications that directly benefit the qualifying children;(iii)equipment and materials used for the home-based child care business;(iv)expenses related to starting or expanding a home-based child care business;(v)wages and compensation for employees of the home-based child care business; or(vi)other qualified expenses directly related to starting, expanding, or improving a home-based child care business, as defined by rule made in accordance with Subsection (11).(b)A grant recipient may not use a grant award for:(i)a mortgage payment;(ii)a rent payment; or(iii)other ineligible expenses, as defined by rule made in accordance with Subsection (11).(7)Grant awards may not exceed $5,000.(8)A grant recipient shall:(a)maintain expanded child care capacity for at least 24 months;(b)maintain a license from the Department of Health and Human Services in accordance with Title 26B, Chapter 2, Part 4, Child Care Licensing; and(c)report to the office:(i)the capacity limit before and after grant expenditures;(ii)operating hours, including non-traditional hours;(iii)date of enrollment in the CCQS and level achieved, if applicable; and(iv)other metrics determined by the office.(9)(a)If the office determines that a grant recipient is out of compliance with the requirements described in this section, the office shall notify the grant recipient of the determination of noncompliance.(b)After receiving the notice described in Subsection (9)(a), the grant recipient shall return the grant award, in a prorated amount, no later than 90 days from the day the recipient is found noncompliant.(c)The office may issue a new grant, in accordance with Subsection (3), with the returned grant award described in Subsection (9)(b).(10)On or before November 1, the office shall annually report to the Economic Development and Workforce Services Interim Committee and the Health and Human Services Interim Committee on:(a)the number of applications to the program;(b)the number of approved applications for the program;(c)the number of new child care slots created by the program; and(d)other metrics determined by the office.(11)The office shall make rules, in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, to administer the program, including to:(a)create a grant application process;(b)determine requirements for grant eligibility;(c)determine tiered grant award amounts using the factors described under Subsection (5);(d)define qualified expenses; and(e)other rules necessary for the implementation of the grant program.

Section 8. FY 2027 Appropriations.

The following sums of money are appropriated for the fiscal year beginning July 1, 2026, and ending June 30, 2027. These are additions to amounts previously appropriated for fiscal year 2027.

Subsection 8(a).Operating and Capital Budgets

Under the terms and conditions of Title 63J, Chapter 1, Budgetary Procedures Act, the Legislature appropriates the following sums of money from the funds or accounts indicated for the use and support of the government of the state of Utah.

ECONOMIC AND COMMUNITY DEVELOPMENTDEPARTMENT OF WORKFORCE SERVICESITEM 1Department of Workforce Services - Operations and PolicyFrom General Fund, One-time2,300,000Child Care Assistance2,300,000In accordance with Section 63J-1-603 of the Utah Code, the Legislature intends that up to $2,300,000 of the one-time General fund provided in Item 1 for the Department of Workforce Services' Operations and Policy line item shall not lapse at the close of fiscal year 2027. The use of any nonlapsing funds is limited to the home-based child care capacity expansion program.

Section 9. Effective Date.This bill takes effect on May 6, 2026.