Michigan Daycare Licensing Handbook and Regulations

Opening a child care center in Michigan is an opportunity to build a rewarding business and serve your community. However, before you can open your doors, you must navigate the state's licensing requirements. In Michigan, it is illegal to provide child care services without being licensed by the Michigan Department of Lifelong Education, Advancement, and Potential Child Care Licensing Division. This guide serves as a companion to the official state of Michigan daycare licensing handbook, breaking down the regulations, process, and costs into manageable steps.

Understanding Michigan's Daycare Licensing Rules

The foundation of operating a safe and legal child care center is understanding the rules that govern it. The Licensing Rules for Child Care Centers and Homes provide the minimum standards all regulated providers in Michigan must meet.

Governing Authority and Key Statutes

The Department of Licensing and Regulatory Affairs (LARA) is responsible for writing Michigan's child care licensing rules. The authority to establish these rules is granted by the Child Care Organizations Act (1973 PA 116). This act, along with several other key statutes, guides the regulations and are referenced throughout the official Michigan daycare licensing book. Providers must be familiar with them.

The statutes that guide Michigan's child care licensing rules include:

• The Child Protection Law, 1975 PA 238
• The Child Care Organizations Act, 1973 PA 116
• The Zoning Enabling Act, 2006 PA 110
• The Michigan Vehicle Code (Booster Seats), 1949 PA 300, MCL 257.710e
• The Michigan Vehicle Code (Child Restraints), 1949 PA 300, MCL 257.710d
• The Children's Product Safety Act, 2000 PA 219
• Listed Offenses from the Sex Offenders Registration Act, 1994 PA 295, MCL 28.722(e)

Rule Versions and Availability

Regulations evolve, and staying current is critical. The Licensing Rules for Child Care Centers were last amended on February 22, 2022. The state also provides resources on upcoming changes, including a FINAL 2025 Child Care Center Licensing Rule Set and DRAFT 2024 Child Care Home Licensing Rule Revisions, along with documents explaining these changes.

To ensure accessibility, licensing rules for Family and Group Child Care Homes are available in English, Spanish (NORMAS DE CONCESIÓN DE LICENCIAS PARA HOGARES DE CUIDADO INFANTIL FAMILIARES Y GRUPALES - BCAL-PUB-714-SP), Arabic, and Chinese.

The Michigan Child Care Center Licensing Process: A Step-by-Step Guide

Obtaining a license is a multi-step process that requires careful planning and documentation. From initial research to final inspection, each stage has specific requirements. The entire process can take up to six months after a complete application packet is submitted, though individual circumstances can affect the timeline. Navigating these detailed requirements is a key area where we provide support to new providers.

Pre-Application Steps

Before you even begin the application, you must complete some foundational work. First, you are required to read the Licensing Rules for Child Care Centers and the Child Care Organizations Act (1973 PA 116). You must also contact your local zoning authorities to confirm that operating a child care center is permitted at your proposed location. It is recommended that you obtain this zoning approval before signing a lease or contract.

Applicants should also schedule a meeting with their assigned licensing consultant to discuss the Act and the Rules. This consultation is provided by LARA without charge.

Submitting Your Application

The application to establish a child care center must be for a specific location and is submitted online. You will need to use Google Chrome, Microsoft Edge, or FireFox to complete the online application. A credit or debit card is required for the non-refundable application fee; Discover and American Express cards are not accepted.

The application fee is based on your center's proposed capacity:

• 1-20 Children: $150
• 21-50 Children: $200
• 51-100 Children: $250
• 101+ Children: $300

Upon receipt of your application, a rule book and a copy of the Child Care Organizations Act will be sent to you.

Required Inspections and Assessments

A significant part of the licensing process involves ensuring your facility is safe. It is the applicant's responsibility to arrange and pay for several inspections. Required repairs and fees may determine whether a location is suitable, so it is wise to get estimates before making a commitment.

• Fire Safety Inspection: You must arrange an inspection with a qualified fire safety inspector. If your project involves new construction or remodeling, a plan review must be submitted to the Bureau of Fire Services.
• Environmental Health Inspection: This is arranged by sending the Environmental Health Inspection Request (BCAL-1787-CC) form to your local health department. If your plans include new construction or renovation of kitchen or bathroom areas, a plan review may also be required by the health department.
• Playground Inspection: You must ensure all playground equipment, use zones, and surfacing comply with licensing rule 400.8170(11), which is typically verified through an inspection.
• Lead Hazard Risk Assessment: If your building was constructed before 1978, a lead hazard risk assessment by a certified lead risk assessor is mandatory.
• Furnace, Water Heater, and Boiler Inspections: Fuel-fired furnaces and water heaters must be inspected by licensed contractors. Boilers require a certificate from the boiler division at LARA.

The completed inspection reports must be forwarded to your licensing consultant, and any required work must be completed before proceeding.

Required Documentation and Plans

Prior to a final licensing determination, you must submit a comprehensive set of documents to your licensing consultant for review and approval. These materials outline every aspect of your center's operations.

Personnel and Staffing:

• Program Director Qualifications: Submit transcripts and, if necessary, verification of experience to show compliance with the education and experience requirements detailed in Licensing Rule 400.8113.
• Staffing Plan (BCAL-5001): This plan must detail the number and ages of children in care, room locations, and staffing numbers throughout the day. It also includes procedures for criminal background screening, documentation of staff health and training (TB test, CPR, first aid), and supervision methods for any staff with prior convictions.

Program and Operations:

• Program Plan: This includes a sample daily schedule with planned activities for each age group that meet children's social, emotional, physical, and intellectual needs. For centers with children present for five or more hours, it must also include a plan for rest and outdoor play.
• Equipment List: A detailed, age-appropriate list of equipment, divided into categories like sensory exploration, language and literacy, and creative experiences.
• Child Use Space Documentation: An 8 1/2 x 11 paper sketch with measurements of all indoor child use areas and a drawing showing the location of the outdoor play space relative to the building.
• Schedule of Operations: The months, days, and hours your center will be open.
• Emergency and Evacuation Plans: Written, detailed plans for emergencies as outlined in the licensing rules.

Center Policies:

You must submit written policies covering key operational areas. These policies form the contract between your center and the families you serve.

• Admission and withdrawal criteria
• Fee policy, including payment schedules and policies for holidays and absences
• Discipline policy outlining permitted and prohibited techniques
• Parent notification plan for accidents, injuries, and illnesses
• Exclusion policy for when children are too ill to remain in care
• Medication policy
• Transportation policy (if applicable)

After You Apply: The Path to Licensure

Once all your required documents and inspection reports have been submitted and reviewed, the process moves into its final stages. A licensing consultant will conduct an on-site inspection of your facility to verify compliance with all rules. Getting every detail right is crucial, and our business coaching can help you prepare for this critical step.

License Types and Renewals

If the department's decision is to issue a license, you will receive a notification letter indicating when you may begin caring for children. Initially, you will be issued an original provisional license, which is valid for six months.

After six months, a licensing consultant will conduct a renewal inspection. If your center is in compliance with all rules, a regular license will be issued. A regular child care center license must be renewed every two years. Throughout the life of your license, a licensing consultant will conduct annual inspections and will also inspect if a complaint is received.

Denial and Appeals

If the licensing decision is to deny your application, you have the right to appeal. The appeal process is handled in accordance with the Child Care Organizations Act (1973 PA 116), MCL 722.121(2).

Estimated Costs of Starting a Daycare in Michigan

Budgeting is essential for a successful launch. While costs vary greatly depending on location, center size, and necessary repairs, the state provides estimates for many of the required fees. Understanding your potential earnings can help you budget effectively; you can find out how much you can make with our provider calculator.

Inspection and Application Fees

The following are estimated start-up costs you should plan for:

• Application Fee: $150 - $300 (based on capacity)
• Background Check/Fingerprinting: $70
• Fire Inspection: $200 - $1,000
• Environmental Health Inspection: $100 - $250
• Lead Risk Assessment (if building built before 1978): $350 - $600
• Playground Inspection (if needed): $200 - $900
• Zoning Fees (if required): $300 - $1,000
• Furnace Inspection: $60 - $100
• Hot Water Heater Inspection (if fuel-fired): $40 - $60

The total estimated start-up costs for these required items range from $1,470 to $4,830. Keep in mind that re-inspection fees may apply if corrections are needed.

Additional Expenses

Beyond the licensing fees, you will have other significant expenses. These costs are highly variable and will depend on your specific business plan.

• Employment Costs: Wages, benefits, background checks, and ongoing training for staff.
• Equipment: Indoor/outdoor play equipment, furniture, appliances, electronics, and consumable supplies.
• Utilities: Gas, water, electricity, telephone, and trash removal.
• Other: Rent or mortgage, taxes, liability insurance, and marketing expenses.

How Wonderschool Can Help You Start Your Michigan Daycare

The journey to opening a licensed child care center in Michigan is detailed and demanding, but you don't have to do it alone. At Wonderschool, we help passionate educators and providers start, run, and grow successful child care businesses. We provide the tools and support to transform your vision into a thriving program that serves your community.

We help family child care programs earn sustainable income through enrollments and even guarantee enrollment spots for new programs created through our Startup Child Care Program. We assist new providers in navigating the complexities of licensing and insurance, ensuring you meet every requirement in the state of Michigan license book for daycare centers.

Our services are designed to empower you at every stage. We offer business coaching and classes to equip you with the skills to manage your center effectively. We also help connect potential and existing providers with government grants to ease the financial burden of starting up. From developing your staffing plan to setting up your fee policies, we are here to guide you, helping you operate your daycare with confidence.

Your Partner in Child Care

Becoming a licensed child care provider in Michigan is a significant achievement that opens the door to a fulfilling career. The regulations and processes are in place to ensure every child has access to a safe, nurturing, and enriching environment. By understanding the Michigan daycare licensing regulations handbook and leveraging the right support, you can successfully launch and grow your program.