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Back to HB 106
Tennessee General Assembly· HB 106Transmitted to Governor for his action.

Human Services, Dept. of - As enacted, makes various changes to the licensing exemption categories for programs and activities that fall within the definition of a child care agency; makes related changes, such as exempt, the official text

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                         $tate of utennessee

                          PUBLIC CHAPTER NO. 135

                                                  HOUSE BILL NO. 106

       By Representatives Lamberth, Cochran, Hale, Sherrell, Davis, Wright, Hardaway

                                       Substituted for: Senate Bill No. 1288

                                  By Senators Johnson, Haile, Massey, Oliver

         AN ACT to amend Tennessee Code Annotated, Title 4 and Title 71, Chapter 3, Part 5,
relative to exemptions from child care licensing.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:

          SECTION 1. Tennessee Code Annotated, Section 71-3-501 (8), is amended by deleting
the subdivision and substituting:

                    (8) "Drop-in center" means a place or facility operated by any person or entity
          providing child care, at the same time, for fifteen (15) or more children, who are not
          related to the primary caregiver, for short periods of time, not to exceed eighteen (18)
          hours per week and for not more than nine (9) hours per day for an individual child
          during regular working hours, Monday through Friday six o'clock a.m. (6:00 a.m.) to six
          o'clock p.m. (6:00 p.m.); provided, however, that a drop-in center may provide such child
          care during evenings after six o'clock p.m. (6:00 p.m.) and weekends, Friday, six o'clock
          p.m. (6:00 p.m.) through Sunday, ten o'clock p.m. (10:00 p.m.), so long as the drop-in
          center provides no more than a total of twenty (20) hours per week, exclusive of snow
          days, defined as days when the school of the affected child is closed; provided, further,
          that drop-in centers may provide such care during snow days; provided, however, that,
          notwithstanding any other requirements of this part, training requirements for the staff of
          this class of child care agency are limited to basic health and safety precautions and the
          detection and reporting of child abuse and neglect for children in care;

          SECTION 2. Tennessee Code Annotated, Section 71-3-503, is amended by deleting the
section and substituting instead:

                    (a) A home school, as defined in § 49-6-3050; a program operated by a church-
          related school, as defined in § 49-50-801, for students whose parents are associated,
          registered, or participating as a parent-teacher with the church-related school for
          purposes of§ 49-6-3050(a)(2) or (a)(3); or any educational or tutorial program designed
          to support or enhance the education of home school students, is not subject to licensure
          and does not require an exemption from licensing to operate lawfully.

                     (b) A program, such as an after-school care program, that does not provide child
          care for five (5) or more children who are not related to the primary caregiver for three
           (3) or more hours per day is not subject to licensure and does not require an exemption
          from licensing to operate lawfully. A program or activity that falls within the definition of a
           child care agency is exempt from the licensing requirements of this part upon
           demonstration by clear and convincing evidence that the program or activity meets one
           (1) of the following categories of exempt care:

                               (1) A person or entity licensed or otherwise regulated by other agencies
                     of the state or federal government providing health, psychiatric, or psychological
                     care or treatment or mental health care or counseling for children while the
                     person or entity is engaged in such licensed or regulated activity;

                               (2) Preschool or school-age child care programs, a Title I program, a
                     school-administered head start or an even start program, and all state-approved
                     Montessori school programs that are subject to regulation by the department of
                     education or other department of state government;
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                 (3) Private or parochial kindergartens for children five (5) years of age if
       such kindergartens operate on the public school kindergarten schedule;

                 (4) Child care centers operated by church-related schools, as defined by
       § 49-50-801, that are subject to regulation by the department of education
       pursuant to title 49, chapter 1, part 11;

                 (5) Educational programs that meet the following criteria:

                           (A) The sole or primary purpose of the program is:

                                     (i) To prepare children five (5) years of age and older or
                           four-year-old children enrolled in a school-based pre-kindergarten
                           program for advancement to the next educational level through a
                           prescribed course of study or curriculum that is not typically
                           available in a department-regulated child care setting; or

                                     (ii) To provide specialized tutoring services to assist
                           children with the passage of mandatory educational proficiency
                           examinations;

                           (8) The program time scheduled to be dedicated to the
                 educational activity is reasonably age appropriate for the type of activity
                 and the ages served;

                            (C) The program operates no longer than three (3) hours per day,
                  not to exceed fifteen (15) hours per week unless the children are
                  accompanied by the children's parents or other custodians;

                            (D) The program is registered with the department and has
                  received written approval to operate prior to offering the services; and

                            (E) The program maintains records that include dates and times of
                  each child's attendance and the telephone numbers of persons to contact
                  in the event of an emergency, and those records are made available
                  during regular business hours to the department;

                  (6) "Parents' Day Out" or similar programs that meet the following criteria:

                            (A) The program is operated by a religious institution or religious
                  organization that provides custodial care and services for children of less
                  than school age;

                            (8) The program operates with no child attending more than
                  twelve (12) hours in each calendar week;

                            (C) The program is registered with the department and has
                  received written approval to operate prior to offering the services;

                            (D) The program maintains records that include dates and times of
                  each child's attendance and the telephone numbers of persons to contact
                  in the event of an emergency, and those records are made available
                  during regular business hours to the department; and

                            (E) Each separate location or campus of a religious institution or
                  religious organization is considered a separate religious institution or
                  religious organization for the purpose of Parents' Day Out or any similar
                  program;

                  (7) "Parents' Night Out" or similar "Special Event" programs that meet the
        following criteria:

                            (A) An entity or organization may offer programs to provide care
                  on an occasional or infrequent basis, not to exceed fourteen (14) days per
                  year; and

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                 (B) If such a program is provided by a child care agency that is
       licensed by the department, the agency must first notify the department
       and receive written approval prior to providing such care, and the
       program must not be operated during licensed operating hours;

       (8) Recreational programs that meet the following criteria:

                 (A) The sole or primary purpose of the program or activity is to
       provide recreational services, which include martial arts, organized
       sports, craft activities, and music activities;

                 (B) The recreational activity must be offered for at least seventy-
       five percent (75%) of the hours of operation;

                 (C) The majority of program staff responsible for the direct delivery
       of services must possess specialized qualifications that are directly
       related to the recreational services being offered;

                 (D) The supervision or care of children, or other types of child
       care-related services, must be incidental to its overall purpose;

                 (E) An individual child may not participate in the program or
       activity for more than seven (7) hours per day or for more than seven (7)
       consecutive weeks and for no more than one hundred twenty (120) days
       per calendar year;

                 (F) The program only provides recreational services to children
       four (4) years of age and older if unaccompanied by the children's parents
       or other custodians of the children but may also provide recreational
       services to children under four (4) years of age if the children's parents or
       other custodians remain on-site;

                  (G) The program is registered with the department and has
        received written approval to operate prior to offering the services; and

                  (H) The program shall maintain records that include dates and
        times of each child's attendance and the telephone numbers of persons to
        contact in the event of an emergency, and those records must be made
        available during regular business hours to the department;

        (9) Camp programs that meet the following criteria:

                  (A) The primary purpose of the program or activity is to provide
        intensive recreational, religious, outdoor, or other activities that are not
        routinely available in full-time child care to children school-aged and
        older;

                  (B)

                            (i) The program or activity operates exclusively during the
                  summer months and fewer than ninety (90) days in a calendar
                  year; or

                            (ii) The program or activity operates exclusively during
                  breaks that align with the school calendar of the district within
                  which the program or activity is located;

                  (C) Enrollment periods for participation in the program or activity
        clearly define the duration of the program or activity and exclude drop-in
        child care;

                  (D) The camp programs must be developmentally appropriate for
        the ages of participating children;

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                          (E) The program, is registered with the department and has
                received written approval to operate prior to offering the services; and

                          (F) The program maintains records that include dates and times of
                each child's attendance and the telephone numbers of persons to contact
                in the event of an emergency, and those records are made available
                during regular business hours to the department;

                (10) "Gym Care" programs that meet the following criteria:

                          (A) The care may only take place on-site at a gym or recreation
                center where adults can exercise while the care is being provided on-site;

                          (B) Children can be in care no longer than two (2) hours a day
                with a maximum care time limit of fourteen (14) hours per week;

                          (C) A parent must be engaged in activities on-site and must be
                available in case of emergency;

                          (D) The program is registered with the department and has
                received written approval to operate prior to offering the services; and

                           (E) The program maintains records that include dates and times of
                each child's attendance and the telephone numbers of persons to contact
                 in the event of an emergency, and those records are made available
                 during regular business hours to the department;

                 (11) "Tennessee Professional Sporting Event Care" programs that meet
       the following criteria:

                           (A) The care is provided on-site and available only for children of
                 players and coaches of the home team during home games and includes
                 adequate supervision based on the number, ages, and abilities of
                 participating children;

                           (B) The program is registered with the department and has
                 received written approval to operate prior to offering the services; and

                           (C) The program maintains records that include dates and times of
                 each child's attendance and the telephone numbers of persons to contact
                 in the event of an emergency, and those records are made available
                 during regular business hours to the department;

                 (12) "Casual care" operations consisting of a place or facility operated by
       a person or entity that provides child care meeting the following criteria:

                           (A) Child care is provided for a minimum of five (5) children, but
                 less than fifteen (15) children, who are not related to the primary
                 caregiver, during short periods of time that do not exceed ten (10) hours
                 per week or six (6) hours per day for an individual child while the parents
                 or other custodians of the children are engaged in short-term activities,
                  not including employment of the parent or other custodian of the child;

                            (B) The operation is registered with the department and has
                  received written approval to operate prior to offering the services;

                            (C) The operation maintains records that include the children's
                  names, ages, addresses, dates and times of attendance, the parents' or
                  custodians' names, addresses, and intended whereabouts while the
                  children are in care, and the telephone numbers of persons to contact in
                  the event of an emergency. All records are made available at any time to
                  an authorized representative of the department; and

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                                        (D) A person or entity that fails to comply with this subdivision
                              (a)(12) is subject by the department to a fine not to exceed five hundred
                              dollars ($500) for the first violation and not to exceed one thousand
                              dollars ($1,000) for subsequent violations, and the department may seek
                              injunctive relief in the chancery or circuit court of the county where the
                              place or facility is located to prevent further operation of the place or
                              facility or to obtain entry to conduct an inspection of the operation;

                              (13) Any program or facility operated by, or in affiliation with, any Boys
                    and Girls Club that meets the following criteria:

                                        (A) The program or facility provides care for school-aged children
                              and holds membership in good standing with Boys and Girls Clubs of
                              America and is certified as being in compliance with the purposes,
                              procedures, voluntary standards, and mandatory requirements of Boys
                              and Girls Clubs of America;

                                        (8) Any such Boys and Girls Club that applies to participate in
                              state or federally funded programs that require child care licensing by the
                              state as a term of eligibility may elect to apply to the department for child
                              care licensing and regulation. Upon meeting departmental standards, the
                              Boys and Girls Club may be licensed as a child care center or provider;
                              and

                                         (C) The department is authorized to grant a waiver from any rule
                               concerning grouping of children and adult-to-child ratios for child care
                               centers to a Boys and Girls Club that is providing after-school child care
                              to mixed groups of school-aged children;

                               (14) Any program or facility operated by, or in affiliation with, any YMCA
                     of the United States that meets the following criteria:

                                         (A) The program or facility provides care for only school-aged
                               children and holds membership in good standing with the YMCA of the
                               United States and is certified as being in compliance with the purposes,
                               procedures, voluntary standards, and mandatory requirements of the
                               YMCA of the United States;

                                         (B) Any such YMCA that applies to participate in state or federally
                               funded programs that require child care licensing by the state as a term of
                               eligibility may elect to apply to the department for child care licensing and
                               regulation. Upon meeting departmental standards, the YMCA school-
                               aged program may be licensed as a child care center or provider;

                                         (C) The staff of each facility or program provide adequate
                               supervision based on the number, ages, and abilities of participating
                               children and take all necessary steps to ensure the safety and health of
                               children; and

                                         (D) The department is authorized to grant a waiver from any rule
                               concerning grouping of children and adult-to-child ratios for child care
                               centers to a YMCA that is providing after-school child care to mixed
                               groups of school-aged children; and

                               (15) Child care services associated with religious services or related
                     activities of churches or other houses of worship that are provided while the
                     parents or other custodians of the children are on-site and that are not ordinarily
                     operated on a daily basis, including nurseries, babysitting services, and other
                     children's activities. Such services may also be provided during limited special
                     events; provided, that such events must not exceed fourteen (14) days in a
                     calendar year.

                     (c) In analyzing whether the program or activity is exempt pursuant to this
           section, unless the department determines upon clear and convincing evidence that the

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          program or activity qualifies for an exemption based upon the criteria set forth in
          subdivisions (b)(1 )-(15), the department shall consider the following nonexclusive criteria
          to determine if the program or activity is clearly distinguishable from child care services
          typically regulated by the department and otherwise qualifies for exemption from
          licensing:

                              (1) The sole or primary purpose of the program or activity is to provide
                    specialized opportunities for the child's educational, social, cultural, religious, or
                    athletic development, or to provide the child with mental or physical health
                    services;

                              (2) The time period in which the program or activity provides these
                    opportunities is consistent with a reasonable time period for the completion of the
                    program or activity, considering the age of each child served and the nature of
                    the program;

                              (3) The primary purpose of the program or activity is not routinely
                    available or could not be made routinely available in the typical child care
                    settings regulated by the department;

                              (4) Parents could reasonably be expected to choose the program or
                    activity because of the unique nature of what it offers, rather than as a substitute
                    for full-time, before- or after-school, holiday, or weather-related child care; and

                               (5) If the program or activity is regulated by any other federal, state, or
                     local agency, it is required by such other agency to comply with standards that
                     substantially meet or exceed department licensing regulations.

                     (d)

                               (1) All exempt programs, except those programs or categories of care
                     exempt under subdivisions (b)(1 )-(4), (7), and (13)-(15), must:

                                         (A) Register intent to operate as an exempt program or activity
                               with the department in a manner and form as the department may
                               require, including that the request must contain a detailed description of
                               the operation of the program or activity, the program's or activity's
                               purpose, and the applicant's basis for claiming an exemption;

                                         (B) Post a sign stating: "This facility is not required to be licensed
                               by the state as a child care agency.";

                                         (C)

                                                   (i) Require that when a parent, custodian, or guardian
                                         initially registers a child with an exempt program, the parent,
                                         custodian, or guardian must sign a form indicating that the parent,
                                         custodian, or guardian has been advised and understands that the
                                         program is not licensed and is not required to be licensed by the
                                         state as a child care agency; and

                                                   (ii) Maintain the signed form with the records of the exempt
                                         entity; and

                               (2) The department shall provide a written response to the exemption
                     request described in subdivision (d)(1 )(A) stating the reasons the exemption was
                     granted or denied.

                      (e)

                               (1) The department is not required to grant exemptions to programs or
                     activities that offer otherwise exempt opportunities or services as a mere
                     component of a program or activity that the department determines primarily
                     constitutes child care.

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HB106
                              (2) A program or activity is not exempt from licensing solely for the reason

                    that the care and supervision of children that constitutes child care is offered only
                    on a part-time or periodic basis.

                              (3) Exemption from licensure does not exempt the program or activity
                    from compliance with any other local, state, or federal requirements.
                    (f) A program or activity that falls within the definition of a child care agency, but
          has been determined to be exempt under one (1) of the categories of exempt care in
          subsection (b), upon failure to comply with any of the criteria required under the
          applicable category of exempt care, is no longer exempt and, therefore, is subject to the
          licensing requirements of this part.
          SECTION 3. The department of human services is authorized to promulgate rules to
effectuate this act. The rules must be promulgated in accordance with the Uniform
Administrative Procedures Act, compiled in Tennessee Code Annotated, Title 4, Chapter 5.
          SECTION 4. This act takes effect July 1, 2025, the public welfare requiring it.

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         HOUSE BILL NO. 106

PASSED:  March 24, 2025

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                           CAMERON SEXTON, SPEAKER
                           HOUSE OF REPRESENTATIVES

                                                  RANDYM
                                     SPEAKER OF THE

APPROVED this -:J'cl day of /\tx:il  2025

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BILL LEE, GOVERNOR
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