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Bill

AB 318

Revises provisions relating to captive insurers. (BDR 57-884)

2025 Regular Session Introduced by Melissa Hardy

Allows electronic initial licensure applications and credit card payments for daycare licenses starting by 2028, with checks also accepted for initial fees.

(Pursuant to Joint Standing Rule No. 14.3.2, no further action allowed.)
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Bill Summary · AB 318

AB 318 — Child daycare: application: fees (Alanis) — Summary

Status: Introduced Jan 24, 2025. In committee (HUM. S.); first hearing was set but canceled at author's request (May 1, 2025). Referred and amended in committee March–April 2025.

Main purpose

To modernize and broaden payment and filing options for child daycare licensure administered by the State Department of Social Services (CDSS) by (1) allowing applicants to pay initial application fees by check, (2) requiring the department to accept credit card payments for initial application and annual license fees, and (3) requiring the department to accept initial license applications electronically.

Key provisions

  • Electronic applications
    • Requires the department, beginning no later than January 1, 2028, to accept initial licensure applications electronically. Applicants may choose electronic or paper submission.
  • Payment methods
    • Explicitly authorizes child daycare facilities to pay the initial application fee by a bona fide business or personal check (previously this authorization applied to annual license fees only).
    • Requires the department, beginning no later than January 1, 2028, to accept credit card payments for initial application fees and license fees.
  • Fee schedule and related rules (selected highlights)
    • Fee schedule by facility type and capacity (examples):
    • Family Day Care (1–8): Original application $73; Annual $73
    • Family Day Care (9–14): $140 application; $140 annual
    • Day Care Centers (1–30): $484 application; $242 annual
    • Day Care Centers (121+): $2,420 application; $1,210 annual
    • Additional fees: 50% of application fee for facility moves or corporate control changes; $25 for capacity changes; orientation fees ($25 family home / $50 center); probation monitoring (equal to current annual fee, in addition to annual fee); 50% late fee for overdue annual fees; $200 plan-of-correction fee; processing-cost recovery for payment issues.
    • The department must review fee levels at least every five years and recommend legislative adjustments as needed.
  • Use and oversight of fee revenue
    • Revenues are dedicated to licensing activities (health/safety oversight, monitoring, administrative support) and must not exceed program costs.
    • The department cannot use collected revenues sooner than 30 days after written notification (approved by Department of Finance) to legislative budget chairs; ongoing staffing/support costs require a budget change proposal.
  • Enforcement
    • Nonpayment of applicable fees or civil penalties is grounds for denial or forfeiture of a license.
  • Local authority
    • Local jurisdictions may not impose business license fees or taxes for small family daycare homes licensed under the act.

Who is affected

  • Family daycare home operators and child daycare centers (applicants and licensees)
  • Current and prospective license applicants (payment and filing options)
  • CDSS — operational impact to implement electronic intake and credit-card processing
  • Local governments (limited by prohibition on extra fees for small family daycare homes)

Procedural/fiscal notes

  • Bill does not appropriate funds; it was referred to fiscal committee and contains implementation deadlines (no later than Jan 1, 2028) that may require CDSS to secure resources to build/maintain electronic application and payment systems.
  • The bill includes ongoing oversight requirements for fee setting and use.

Compiled from official sources — confirm details with the bill’s official record.

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