As Introduced

136th General Assembly

Regular Session S. B. No. 32

2025-2026

Senators Reynolds, Schaffer

A BILL

To enact section 5180.41 of the Revised Code to establish the Child Care Cred Program and to make an appropriation.

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

Section 1. That section 5180.41 of the Revised Code be enacted to read as follows:

Sec. 5180.41. (A) As used in this section, "child care" and "publicly funded child care" have the same meanings as in section 5104.01 of the Revised Code.

(B) The child care cred program is created in the department of children and youth, under which the costs of child care may be shared by eligible employees, participating employers, and, subject to available funds, the department. The program has all of the following goals: enabling employers to attract and retain talent; assisting eligible employees with child care costs; and sustaining the businesses of child care providers.

Under the program, an employee's child care costs shall be shared equally by the employee, the employee's employer, and the department, with each contributing a one-third share, except that the employer may agree to also contribute some or all of the employee's share.

Participation in the program is voluntary. Neither an employee nor the employee's employer shall be required to participate. Each employer seeking to participate in the program shall be responsible for selecting which of its employees the employer agrees to contribute at least one-third of the employee's child care costs.

(C) To be eligible for participation, all of the following apply:

(1) In the case of an employee, the employee shall reside in this state, be ineligible to participate in publicly funded child care, and have been selected for participation by the employee's employer.

(2) In the case of an employer, the employer shall employ individuals who are working in this state and have selected one or more of those employees to participate in the program.

(3) In the case of a child care provider, the provider shall either hold a license issued under Chapter 5104. of the Revised Code or be certified by a county department of job and family services under section 5104.12 of the Revised Code.

(D) An employee seeking to participate in the program, together with the employee's employer, shall submit an application to the department in a manner prescribed by the department. The department shall review each application as soon as practicable after it is received and shall determine if the employee and employer are both eligible to participate.

(E) After the employee and the employer are both determined eligible and agree to participate in the program, all of the following apply:

(1) The employee, with the assistance of the department, shall select a child care provider for the employee's child and shall enroll the child with the provider. An employee may opt to select the employee's existing child care provider so long as that provider is licensed or certified as described in this section.

(2) As a condition of participation, the department may require the employee, employer, and child care provider to each sign a memorandum of understanding with the department.

(3) The department is responsible for coordinating and performing all administrative activities associated with the sharing of child care costs and making payments to child care providers, except that the department may delegate the performance of some or all of the activities to one or more third-party entities. The department shall specify the conditions that an entity must satisfy before the department delegates performance of the activities to the entity.

(F) An eligibility determination made under division (D) of this section remains valid as long as the employee, employer, and child care provider continue to satisfy the eligibility conditions described in division (C) of this section.

(G) If the department finds that an employee or employer has committed fraud, misrepresentation, or deception in applying to participate, or in participating, in the program, the employee or employer is permanently ineligible to participate, or to continue to participate, in the program.

(H)(1) The department may adopt rules as necessary to implement this section. Any rules shall be adopted in accordance with Chapter 119. of the Revised Code.

(2) Notwithstanding any provision of section 121.95 of the Revised Code to the contrary, a regulatory restriction contained in a rule adopted under division (H)(1) of this section is not subject to sections 121.95 to 121.953 of the Revised Code.

Section 2. All items in this act are hereby appropriated as designated out of any moneys in the state treasury to the credit of the designated fund. For all operating appropriations made in this act, those in the first column are for fiscal year 2026 and those in the second column are for fiscal year 2027. The operating appropriations made in this act are in addition to any other operating appropriations made for these fiscal years.

Section 3.

CHILD CARE CRED PROGRAM

The foregoing appropriation item 830414, Child Care Cred Program, shall be used for the Child Care Cred Program established in section 5180.41 of the Revised Code.

If the Director of Children and Youth determines that there are insufficient funds in fiscal year 2026 in appropriation item 830414, Child Care Cred Program, the Director may certify to the Director of Budget and Management the additional amount necessary to fund the Child Care Cred Program. The amount certified is hereby appropriated to appropriation item 830414, Child Care Cred Program.

Section 4. Within the limits set forth in this act, the Director of Budget and Management shall establish accounts indicating the source and amount of funds for each appropriation made in this act, and shall determine the manner in which appropriation accounts shall be maintained. Expenditures from operating appropriations contained in this act shall be accounted for as though made in, and are subject to all applicable provisions of, the main operating appropriations act of the 136th General Assembly.