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New Tennessee Law Reduces Licensing Requirements for Select Childcare Providers

By Joel Lancaster, jlancaster@mckenziebanner.com
From the Apr 15, 2025 e-Edition

NASHVILLE (April 12) — Tennessee’s new childcare licensing law, now codified as Public Chapter 135, expands flexible childcare options while easing regulatory burdens. House Bill 106, passed unanimously and signed into law by Governor Bill Lee on April 3, takes effect July 1.

The law exempts programs caring for fewer than five unrelated children for under three hours per day from Tennessee Department of Human Services (DHS) licensure. Additional exemptions include “Parents’ Night Out” events, gym childcare, and care at religious services or professional sporting events.

“It’s just another tool in the toolbox for families and facilities to provide childcare options in Tennessee,” said Rep. Michael Hale (R–40th District), a sponsor of the bill. Hale also assured that the law offers “less government, but more transparency,” emphasizing that oversight would remain intact through registration requirements.

Callon Baggett, representing DHS, pointed to practical benefits for event-based care: “It allows players and staff to have a safe place for their children during home games.”

Under the law, most exempt programs must register with DHS. Those who fail to meet criteria or operate outside defined scopes must obtain licensure. Adjustments to definitions of casual care, camp programs, and educational care models reflect current childcare needs.

Despite unanimous legislative votes (House: 92-0-1; Senate: 32-0), several public voices raised concerns over reduced oversight. Parent Diane Barrett, quoted in regional media coverage, stated: “I think it’s great that we’re making child care more accessible, but I do hope safeguards are put in place to ensure safety.”

One parent expressed deeper concern: “This is your most prized possession in all the world, so why would you not want it to be the safest level of care possible?”

Although no lawmakers voted against the bill, some child welfare advocates and organizations cautioned that deregulation, even partial, could undermine safety standards. Critics emphasized that even short-term or low-volume care environments require consistent monitoring.

A fiscal note issued by the Tennessee General Assembly’s Fiscal Review Committee on February 12 concluded the law would not significantly impact state expenditures or revenues. DHS is expected to manage additional oversight responsibilities with existing personnel and infrastructure.

With implementation pending, DHS will issue guidance to providers and clarify registration procedures. Supporters champion the law as a modernization effort that increases access to care, while opponents urge robust enforcement to ensure that deregulation does not compromise children’s safety.

As Tennessee adjusts its regulatory framework, all eyes remain on how the balance between accessibility and oversight will be maintained.

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