As Introduced

136th General Assembly

Regular Session H. B. No. 649

2025-2026

To amend sections 5104.015 and 5104.04 and to enact sections 5104.044, 5104.303, 5104.304, and 5104.361 of the Revised Code to require video surveillance of child care centers, to establish an online portal for tracking child care center attendance, to require investigations of waste, fraud, and abuse allegations relating to providers of publicly funded child care, and to name this act the Child Care Fraud Prevention Act.

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

Section 1. That sections 5104.015 and 5104.04 be amended and sections 5104.044, 5104.303, 5104.304, and 5104.361 of the Revised Code be enacted to read as follows:

Sec. 5104.015. The director of children and youth shall adopt rules in accordance with Chapter 119. of the Revised Code governing the operation of child care centers, including parent cooperative centers, part-time centers, and drop-in centers. The rules shall reflect the various forms of child care and the needs of children receiving child care or publicly funded child care and shall include specific rules for school-age child care centers that are developed in consultation with the department of education and workforce. The rules shall include the following:

(A) Submission of a site plan and descriptive plan of operation to demonstrate how the center proposes to meet the requirements of this chapter and rules adopted pursuant to this chapter for the initial license application;

(B) Standards for ensuring that the physical surroundings of the center are safe and sanitary including the physical environment, the physical plant, and the equipment of the center;

(C) Standards for the supervision, care, and discipline of children receiving child care or publicly funded child care in the center;

(D) Standards for a program of activities, and for play equipment, materials, and supplies, to enhance the development of each child; however, any educational curricula, philosophies, and methodologies that are developmentally appropriate and that enhance the social, emotional, intellectual, and physical development of each child shall be permissible. As used in this division, "program" does not include instruction in religious or moral doctrines, beliefs, or values that is conducted at child care centers owned and operated by churches and does include methods of disciplining children at child care centers.

(E) Admissions policies and procedures;

(F) Health care policies and procedures, including procedures for the isolation of children with communicable diseases;

(G) First aid and emergency procedures;

(H) Procedures for discipline and supervision of children;

(I) Standards for the provision of nutritious meals and snacks;

(J) Procedures for screening children that may include any necessary physical examinations and shall include immunizations in accordance with section 5104.014 of the Revised Code;

(K) Procedures for screening employees that may include any necessary physical examinations and immunizations;

(L) Methods for encouraging parental participation in the center and methods for ensuring that the rights of children, parents, and employees are protected and that responsibilities of parents and employees are met;

(M) Procedures for ensuring the safety and adequate supervision of children traveling off the premises of the center while under the care of a center employee;

(N) Procedures for record keeping, organization, and administration;

(O) Procedures for issuing, denying, and revoking a license that are not otherwise provided for in Chapter 119. of the Revised Code;

(P) Inspection procedures;

(Q) Procedures and standards for setting initial license application fees;

(R) Procedures for receiving, recording, and responding to complaints about centers;

(S) Procedures for enforcing ~~section~~ sections 5104.04 and 5104.044 of the Revised Code;

(T) Minimum qualifications for employment as an administrator or child care staff member, which shall not include requiring an administrator or child care staff member to hold or obtain a bachelor's, master's, or doctoral degree;

(U) Requirements for the training of administrators and child care staff members, including training in first aid, in prevention, recognition, and management of communicable diseases, and in child abuse recognition and prevention;

(V) Standards providing for the needs of children who have disabilities or who require treatment for health conditions while the child is receiving child care or publicly funded child care in the center;

(W) A procedure for reporting of injuries of children that occur at the center;

(X) Standards for licensing child care centers for children with short-term illnesses and other temporary medical conditions;

(Y) Minimum requirements for instructional time for child care centers rated through the step up to quality program established pursuant to section 5104.29 of the Revised Code;

(Z) Any other procedures and standards necessary to carry out the provisions of this chapter regarding child care centers.

Sec. 5104.04. (A) The department of children and youth shall establish procedures to be followed in investigating, inspecting, and licensing child care centers, type A family child care homes, and licensed type B family child care homes.

(B)(1)(a) The department shall, at least once during every twelve-month period of operation of a center, type A home, or licensed type B home, inspect the center, type A home, or licensed type B home. The department shall inspect a part-time center or part-time type A home at least once during every twelve-month period of operation. The department shall provide a written inspection report to the licensee within a reasonable time after each inspection.

Inspections may be unannounced. No person, firm, organization, institution, or agency shall interfere with the inspection of a center, type A home, or licensed type B home by any state or local official engaged in performing duties required of the state or local official by this chapter or rules adopted pursuant to this chapter, including inspecting the center, type A home, or licensed type B home, reviewing records, or interviewing licensees, employees, children, or parents.

(b) Upon receipt of any complaint that a center, type A home or licensed type B home is out of compliance with the requirements of this chapter or rules adopted pursuant to this chapter, the department shall investigate the center or home, and both of the following apply:

(i) If the complaint alleges that a child suffered physical harm while receiving child care at the center or home or that the noncompliance alleged in the complaint involved, resulted in, or poses a substantial risk of physical harm to a child receiving child care at the center or home, the department shall inspect the center or home.

(ii) If division (B)(1)(b)(i) of this section does not apply regarding the complaint, the department may inspect the center or home.

(c) Division (B)(1)(b) of this section does not limit, restrict, or negate any duty of the department to inspect a center, type A home, or licensed type B home that otherwise is imposed under this section, or any authority of the department to inspect a center, type A home, or licensed type B home that otherwise is granted under this section, or any authority of the department to inspect a center that otherwise is granted under section 5104.044 of the Revised Code.

(2) If the department implements an instrument-based program monitoring information system, it may use an indicator checklist to comply with division (B)(1) of this section.

(C) The department may deny an application or revoke a license of a center, type A home, or licensed type B home, if the applicant knowingly submits falsified information to the department or if the center or home does not comply with the requirements of this chapter or rules adopted pursuant to this chapter.

(D) If the department finds, after notice and hearing pursuant to Chapter 119. of the Revised Code, that any applicant, person, firm, organization, institution, or agency applying for licensure or licensed under section 5104.03 of the Revised Code is in violation of any provision of this chapter or rules adopted pursuant to this chapter, the department may issue an order of denial to the applicant or an order of revocation to the center, type A home, or licensed type B home revoking the license previously issued by the department. Upon the issuance of such an order, the person whose application is denied or whose license is revoked may appeal in accordance with section 119.12 of the Revised Code.

(E) The surrender of a center, type A home, or licensed type B home license to the department or the withdrawal of an application for licensure by the owner or administrator of the center, type A home, or licensed type B home shall not prohibit the department from instituting any of the actions set forth in this section.

(F) Whenever the department receives a complaint, is advised, or otherwise has any reason to believe that a center or type A home is providing child care without a license issued pursuant to section 5104.03 and is not exempt from licensing pursuant to section 5104.02 of the Revised Code, the department shall investigate the center or type A home and may inspect the areas children have access to or areas necessary for the care of children in the center or type A home during suspected hours of operation to determine whether the center or type A home is subject to the requirements of this chapter or rules adopted pursuant to this chapter.

(G) The department, upon determining that the center or type A home is operating without a license, shall notify the attorney general, the prosecuting attorney of the county in which the center or type A home is located, or the city attorney, village solicitor, or other chief legal officer of the municipal corporation in which the center or type A home is located, that the center or type A home is operating without a license. Upon receipt of the notification, the attorney general, prosecuting attorney, city attorney, village solicitor, or other chief legal officer of a municipal corporation shall file a complaint in the court of common pleas of the county in which the center or type A home is located requesting that the court grant an order enjoining the owner from operating the center or type A home in violation of section 5104.02 of the Revised Code. The court shall grant such injunctive relief upon a showing that the respondent named in the complaint is operating a center or type A home and is doing so without a license.

(H) The department shall prepare an annual report on inspections conducted under this section and section 5104.044 of the Revised Code. The report shall include the number of inspections conducted, the number and types of violations found, and the steps taken to address the violations. The department shall file the report with the governor, the president and minority leader of the senate, and the speaker and minority leader of the house of representatives on or before the first day of January of each year, beginning in 1999.

(I) While an investigation conducted by the department under this section remains ongoing, any of its investigative records are not public records for purposes of section 149.43 of the Revised Code.

Sec. 5104.044. (A) To the extent permitted by federal law, all of the following apply to each child care center:

(1) The center shall procure and maintain a camera, collection of cameras, or camera system at every entrance to and exit from the center. At each entrance and exit where such a camera, collection, or system is maintained, the camera, collection, or system shall have a clear line of sight to both the interior and exterior of that entrance and exit.

(2) The center shall procure and maintain a camera, collection of cameras, or camera system in the general areas of the center where children receive child care, except that this requirement does not apply to any of the following areas of the center: its administrative areas, including offices, and any private areas, including changing rooms and restrooms.

(3) Each camera, collection, or system described in divisions (A)(1) and (2) of this section shall record for each day that the center operates and shall be capable of storing either on the center's site or digitally the video from each day of operation for the sixty-day period immediately following the recording of the day of operation.

(4) To enable the department of children and youth, under its authority described in division (B)(1)(a) of section 5104.04 of the Revised Code, to conduct unannounced inspections, including visual inspections relating to attendance, other administrative matters, and health and safety concerns, the center shall provide the department on the department's request access to every camera, collection, or system described in divisions (A)(1) to (3) of this section, with such access to include the video stored as described in division (A)(3) of this section.

(B) Not later than twelve months after the effective date of this section and to the extent permitted by federal law, all of the following apply:

(1) To enable the department, under its authority described in division (B)(1)(a) of section 5104.04 of the Revised Code, to conduct unannounced inspections, including visual inspections relating to attendance, other administrative matters, and health and safety concerns, each child care center shall provide the department on the department's request access to every camera, collection, or system described in division (A) of this section, with such access after that date to include both live access, as well as the video stored and provided under divisions (A)(3) and (4) of this section.

(2) The department shall develop and implement a system capable of surveilling the live and stored video provided by each center under this section.

(3) The department shall surveil and use the live and stored video to conduct visual attendance audits of child care centers. Such audits shall be logged into the department's system by noting the date, time, location, and individual who conducted the visual attendance audit. The department also shall surveil and use the live and stored video for any other lawful purpose, including to monitor the health and safety of the children receiving child care at the center and to conduct any other administrative matter.

(C)(1) The department shall immediately suspend or withhold any further state payments to any child care center if an inspection or audit conducted under this section indicates that the center has engaged in probable or suspected waste, fraud, and abuse, false attendance reporting, or other material misrepresentation, pending a full investigation and adjudication by the department.

(2) If a child care center fails to comply with the requirements of this section, the department may terminate the center's contract entered into under section 5104.32 of the Revised Code to provide publicly funded child care.

(D) The video described in this section, including both live access video and stored video, is not a public record for purposes of section 149.43 of the Revised Code.

Sec. 5104.303. (A) Immediately after receiving an allegation of probable or suspected waste, fraud, and abuse related to a provider of publicly funded child care that is a child care center, the department of children and youth shall conduct a preliminary investigation of the allegation. If, as part of the investigation, the department determines that the allegation is substantiated and the director of children and youth reasonably believes that the provider engaged in probable or suspected waste, fraud, and abuse, including false attendance reporting, or made material misrepresentations to the department, then not later than forty-eight hours after that determination and belief have been reached, the department of children and youth shall refer the matter to the auditor of state. As soon as practicable after receiving the referral, the auditor of state shall conduct a full investigation of the allegation in accordance with Chapter 117. of the Revised Code.

(B) At the beginning of the investigation described in division (A) of this section, the auditor shall report to the speaker of the house of representatives and president of the senate that the auditor received a referral seeking a full investigation of a provider of publicly funded child care. At the conclusion of the required investigation, the auditor shall provide to the speaker of the house of representatives and senate president a summary of the investigation, with the summary to indicate whether or not the name of the provider under investigation has been referred to the office of attorney general for prosecution as described in division (C) of this section.

(C) When a full investigation conducted by the auditor demonstrates that a provider of publicly funded child care that is a child care center engaged in probable or suspected waste, fraud, and abuse or made material misrepresentations to the department of children and youth, the auditor shall refer the matter to the office of the attorney general.

(D) While an investigation conducted under this section remains ongoing, any of its investigative records are not public records for purposes of section 149.43 of the Revised Code.

Sec. 5104.304. (A) On a referral from the auditor of state described in section 5104.303 of the Revised Code, the attorney general may in the name of this state institute against the provider of publicly funded child care in a court of competent jurisdiction appropriate legal action, including criminal prosecution.

(B) In any other instance of probable or suspected waste, fraud, and abuse relating to the publicly funded child care program of which the department of children and youth becomes aware, the department of children and youth may request that the attorney general institute in the name of this state in a court of competent jurisdiction appropriate legal action, including criminal prosecution, against the person or governmental entity engaging in the probable or suspected waste, fraud, and abuse. On the department's request, the attorney general may institute such an action.

Sec. 5104.361. (A) Not later than twelve months after the effective date of this section and to the extent permitted by federal law, the department of children and youth shall establish and make available an online portal for the purpose of tracking child care center attendance through the automated child care system described in section 5104.32 of the Revised Code. The portal shall allow a caretaker parent of a child enrolled with a child care center to record the child's attendance upon the child's entry to and exit from the center.

(B) In making available the online portal and recording attendance through it, all of the following apply:

(1) The department shall provide each child care center with appropriate software through which a child's caretaker parent shall record the child's attendance, with such software serving as the only method by which attendance is recorded through the portal.

(2) The child's caretaker parent shall be responsible for recording the child's attendance upon the child's entry to and exit from the child care center for each day the child attends the center. Such a record shall be completed only at the center or another location where the center is approved to provide child care to the child.

(3) The online portal shall close at eleven fifty-nine p.m. each day, except that, in the case of a child care center providing child care during nontraditional hours, the timeline may be adjusted with the approval of the department.

(4) The portal shall not permit a caretaker parent or child care center to backdate a child's attendance.

(5) The portal shall allow for the use of pins or quick response codes when recording attendance, with the pin or code uploaded each day attendance is recorded. If a caretaker parent uses a quick response code, the parent shall allow location data from the parent's registered cellular phone to be collected at the time of the code's use.

(6) Each attendance record submitted through the portal shall include a photograph with a clear picture of the face of the child's caretaker parent. If the record does not include such a picture, the department shall reject the record.

(C) The department shall use attendance records submitted through the online portal under this section when calculating a child care center's payments for publicly funded child care as described in division (C)(1) of section 5104.32 of the Revised Code. Records submitted to the department through the online portal are confidential and may be used by the department only as described in this division.

Section 2. That existing sections 5104.015 and 5104.04 of the Revised Code are hereby repealed.

Section 3. This act shall be known as the Child Care Fraud Prevention Act.