Amends TCA Title 71, Chapter 3, Part 5.

Generally under present law, persons or entities operating a child care agency must be licensed by the department of human services. This bill revises various provisions governing child care agencies, as follows: (1) Present law provides that to the extent they are not inconsistent with the statutory provisions governing child care agencies, the regulations of the department of human services regarding such agencies that are in effect July 1, 2000, remain in force and effect until modified by regulatory action of the department. This bill changes the applicable date to be July 1, 2020, so that such regulations in effect on that date will remain in effect until modified by regulatory action of the department; (2) Present law provides that if a licensee is denied the renewal of a license, if a license is revoked, or if any applicant for a license cannot meet the standards, then the department must offer reasonable assistance to the parent, guardian or custodian of the child in planning for the placement of such children in licensed child care agencies or other suitable care. This bill revises the application of this provision to apply only when "a license is revoked or an application for licensure is denied"; (3) Present law establishes a fee schedule for the licensing of child care agencies, with fees ranging from $100 to $300, depending on the type of agency/how many children in attendance and on whether the license is annual, biennial, or triennial. This bill deletes the existing fee schedule and instead provides that the department will set the fees by rule, as further discussed below in item (4); (4) Present law provides that following the expiration of a least one annual license, the department may issue an extended license to a licensee who seeks renewal of an existing license if the department determines that the licensee has demonstrated that its methods of child care and its adherence to licensing laws and regulations are clearly appropriate to justify an extended licensing period. An extended license may not be granted as the first license immediately following any temporary license. Present law further provides that the department may by rule establish any criteria for the issuance of an extended license. An extended license may not exceed three years in duration. At the time renewal of the license is sought, or at any other time during the licensing period, the department may reduce the period of the extended license to a shorter period if it determines that the licensee has failed to demonstrate continued adherence to the requirements for the issuance of the extended license. The licensee may appeal such action. This bill rewrites these provisions to instead provide that prior to January 1, 2022, the licensure application fees as they existed for child care agencies on June 30, 2021, apply. On or after January 1, 2022, licensure fees will apply only to applications for provisional licenses for licensed child care agencies in amounts established by rules promulgated by the department. In order to address the need for and encourage the development of extended child care for parents working during nights or on weekends, or for any other nontraditional child care needs for which the department determines that available child care is inadequate or unavailable in all or any part of the state, the department may promulgate rules providing for alternative fee schedules in order to recognize and encourage the development of child care to meet such needs; (5) Present law provides that a person or entity that does not have an existing license may apply for either a restricted or unrestricted temporary license. The purpose of the temporary license is to permit the license applicant to begin the operation of a child care agency after meeting certain minimum requirements and to demonstrate during the temporary licensing period that it has the ability to attain and maintain compliance with all licensing laws and regulations. This bill revises these provisions to refer to a "provisional license" instead of a "restricted or unrestricted temporary license, in accordance with the changes described above. This bill makes related changes in other provisions governing the licensing of child care agencies; (6) Under present law, if the department determines that any of the criteria for a temporary license has not been, or cannot be met, then it may deny the application for a temporary license; or, if the department determines that the conditions of the applicant's facility, its methods of care or other circumstances warrant, it may issue a restricted temporary license that permits operation of a child care agency, but limits the agency's authority in one or more areas of operation. This bill removes the provision for the issuance of a temporary license with a restriction and instead provides for a denial of a provisional license if criteria not met. This bill removes other references for the issuance of a temporary license and provides that if the department determines that the applicant has fully complied with criteria established in present law and with all other laws and regulations governing the specific classification of child care agency for which the application was made, that the child care agency has demonstrated the ability to maintain compliance with all licensing regulations following the provisional licensure period, and that it has a reasonable likelihood of maintaining licensure, then the department will issue a license; (7) This bill provides that if the department fails to issue a license within 120 days of the granting of the provisional license, then the provisional license will continue in effect, unless suspended, until such determination is made. If a license is denied following the issuance of a provisional license, and if a timely appeal is made of the denial of a license, then the provisional license will remain in effect, unless suspended, until the board of review renders a decision regarding the denial of a license; (8) Present law requires the department, in consultation with the Tennessee commission on children and youth, to establish and implement a mandatory child care agency report card system, and a separate and voluntary child care agency rated licensing system in conformity. This bill replaces these provisions with a requirement for the department to establish and implement a quality assessment and rating system for the purpose of evaluating, individually and collectively, child care agencies licensed or approved by the department so that parents or other caretakers of children enrolled, or being considered for enrollment, at a child care agency, may make more informed decisions regarding the care of their children by comparing the quality of services offered by child care agencies, to encourage the improvement of out-of-home child care for children in this state, and to support child care providers in continuously improving the quality of services and support they provide families. This bill requires that the quality assessment and rating system be developed in a manner easily usable by parents or other caretakers of children to make informed choices related to child care. This bill requires the department to promulgate rules establishing the quality assessment and rating system. Under this bill, each child care agency must receive a quality assessment and rating evaluation after the rules become effective, and annually thereafter. The quality assessment and rating system must include an annual evaluation of each child care agency by the department and must reflect key indicators of performance comparison among all child care agencies in this state. This bill sets out information that may be included in such evaluation. Similar to present law, this bill requires that results of the assessment and rating information be posted at the child care agency. This bill also requires that such information be posted on the department's website; and (9) Present law prohibits the department from failing to recognize the credentials of any accrediting agency based solely upon the religious affiliation or ethnicity of the organization granting accreditation to a child care agency. This bill revises this provision to instead prohibit the department from discriminating or failing to recognize the credentials of any accrediting agency based upon religious affiliation, race, age, color, sex, or national origin.