SB 5130
In CommitteeSenate
Child care licensing fees
Eliminating child care licensing fees.
This status may be delayed. See Action History below for the latest updates.
How does a bill become law?
- Introduced: The bill is filed and assigned a number.
- Committee: A subject-matter committee holds hearings, takes public testimony, and decides whether to advance the bill.
- Floor Vote: The full chamber (House or Senate) debates and votes on the bill.
- Opposite Chamber: The bill repeats the committee and floor vote process in the other chamber.
- Governor: The Governor reviews the bill and decides whether to sign or veto it.
- Signed: The bill has been signed into law.
AI Analysis
This bill eliminates all fees charged by the state for obtaining or renewing a child care license. It removes the authority for the Department of Children, Youth, and Families to collect or waive such fees, while keeping other licensing requirements in place.
- Eliminates all licensing fees for obtaining or renewing a child care license in Washington State.
- Removes the authority for the Department of Children, Youth, and Families (DCYF) to charge or waive licensing fees.
- Keeps the requirement for annual declarations (intent to continue operating, compliance with rules, and employee background checks) to maintain a nonexpiring license, but removes the requirement to submit the annual licensing fee as part of that process.
Who is affected
- Child care providers — Child care providers (including family day care homes and center-based programs) who currently pay fees to obtain or renew their state child care license.
- Families using child care — Families who use licensed child care services, as the bill may influence provider availability and stability.
- Washington State Department of Children, Youth, and Families (DCYF) — The Washington State Department of Children, Youth, and Families (DCYF), which administers child care licensing and will no longer collect licensing fees.
Pro/Con Analysis
Potential Benefits (2)
Eliminating licensing fees directly reduces a recurring cost for all child care providers—including sole proprietors and family day care homes—making it easier to start or remain in business, especially for small, marginally profitable operations that struggle with upfront and annual fees.
Business & EmploymentPeopleRef: Sec. 1 (amending RCW 43.216.300) and Sec. 2 (removing fee submission in RCW 43.216.305(2)(a))By reducing barriers to licensing, the bill may increase provider supply over time, easing child care access in underserved areas (e.g., rural communities, low-income neighborhoods), where small providers often fill gaps in housing-dense, high-need neighborhoods.
HousingPeopleRef: Sec. 1 (amending RCW 43.216.300) and Sec. 2 (removing fee submission in RCW 43.216.305(2)(a))
Potential Concerns (3)
Elimination of licensing fees removes a dedicated revenue stream for DCYF’s licensing activities, which may reduce the department’s capacity to conduct thorough inspections and oversight—potentially weakening quality control and compliance monitoring, especially in high-risk settings.
Local GovernmentPeopleRef: Sec. 1 (amending RCW 43.216.300)The state loses fee revenue without specifying a replacement funding source, increasing pressure on general fund budgets; this could lead to reduced staffing or resources for other early learning programs (e.g., Early Learning Scholarships, Head Start coordination), indirectly affecting low- and middle-income families who rely on those services.
FinancialLean peopleRef: Fiscal Impact section (not codified but in summary) and Sec. 2 (removing annual fee requirement from RCW 43.216.305(2)(a))While providers save on fees, the bill does not address other regulatory costs (e.g., training, insurance, facility upgrades), and reduced licensing revenue may lead to longer wait times for inspections or delayed responses to complaints—disproportionately burdening small, under-resourced providers who lack administrative support.
Business & EmploymentLean peopleRef: Sec. 2 (removing annual licensing fee submission from RCW 43.216.305(2)(a))
Who Is Most Affected
Small family day care providers and home-based providers—many of whom operate on thin margins—benefit significantly from fee elimination, as licensing fees represent a meaningful recurring cost. However, they may face indirect strain if reduced licensing revenue leads to slower response times or fewer support services from DCYF.
Large center-based providers (e.g., corporate chains, nonprofit networks) save on fees but are less dependent on them; they may benefit more from reduced administrative friction than from cost savings. However, they are less likely to be harmed by potential reductions in DCYF oversight capacity.
Low- and middle-income families benefit from improved access and potentially more stable care options as small providers stay in business. However, if reduced licensing oversight leads to quality inconsistencies, safety or quality may suffer in vulnerable communities.
DCYF loses a dedicated fee-based revenue stream, which may constrain its ability to conduct robust monitoring—particularly in high-risk or high-need areas—potentially undermining public safety and quality assurance despite the bill’s intent.
Local governments may see indirect effects if reduced state oversight leads to more unlicensed or informal care arrangements, potentially increasing demand for local social services or emergency interventions—though this is speculative and not directly codified.