In this title the following words have the meanings indicated. “Advertisement” means a communication that is intended to influence a person to enter into an obligation or sign a contract for services. “Child care center” has the meaning stated in § 9.5–401 of this title. “Family child care home” has the meaning stated in § 9.5–301 of this title. “Large family child care home” has the meaning stated in § 9.5–301 of this title. “License” means a license issued by the Department to operate a child care center. “Registration” means a registration issued by the Department to a family child care home or a large family child care home.

The General Assembly declares that: Minor children are not capable of protecting themselves; and When a parent has relinquished the care of the parent’s minor child to others, there is a possibility of certain risks to the child that require compensating measures. It is the policy of the State: To protect minor children whose care has been relinquished to others by the child’s parent; To resolve doubts in favor of the child when there is a conflict between the interests of a minor child and the interests of an adult; and To encourage the development of child care services for minor children in a safe, healthy, and home–like environment.

There is a Division of Early Childhood Development in the Department.

A license or registration is effective until the license or registration is suspended or revoked under § 9.5–106 of this subtitle.

Within 60 days after receiving the license or registration application, the Department shall issue or deny a license or registration and give notice of the action to the applicant.

Subject to the hearing provisions of § 9.5–107 of this subtitle: If a licensee violates any provision of this title or of a rule or regulation adopted under this title, the Department may suspend the license for a period not exceeding 1 year; and If a licensee or registrant violates any provision of this title or of a rule or regulation adopted under this title, the Department may revoke the license or registration.

The Department may not suspend or revoke a license or registration unless the Department gives to the licensee or registrant: Notice of the suspension or revocation at least 20 days before the suspension or revocation; A statement of the grounds for the suspension or revocation; and An opportunity to be heard.

A person aggrieved by a decision of the Department concerning a license or registration may appeal the decision to the administrative appellate authority designated by regulation.

A person aggrieved by a final decision of the highest administrative appellate authority in a contested case may take any further appeal as allowed by the Administrative Procedure Act. If a further appeal is taken under this section: Any criminal prosecution of the person for carrying on without a license or registration an activity for which the person must be licensed or registered shall be stayed pending the appeal; Any injunction against the person for carrying on without a license or registration an activity for which the person must be licensed or registered shall be stayed pending the appeal; and The court has discretion as to the care, custody, or control of any child whose care, custody, or control is the responsibility of the person.

In connection with the issuance, suspension, or revocation of a license or registration, the Department may investigate the policies, purposes, premises, and facilities of a licensee or registrant or an applicant for a license or registration. The Department may petition an equity court to enjoin the activities and operation of a person who seeks to carry on, without a license or registration, the activities for which the person must be licensed or registered. The petition shall be filed in the circuit court for the county in which the person is located or has a place of business.

In this section the following words have the meanings indicated. “Analysis” means the market rate survey or an alternative method allowable under federal law. “Program” means the Child Care Scholarship Program. Beginning in 2017, and every 2 years thereafter, the Department shall conduct an analysis in order to formulate appropriate reimbursement rates for the Program. The Department, before conducting the analysis, shall consult with: The Office of Child Care Advisory Council; Child care resource and referral agencies; Child care worker organizations; and Any other appropriate entities. On or before September 1, 2017, and by September 1 every 2 years thereafter, the Department shall report to the Joint Committee on Children, Youth, and Families, the Senate Budget and Taxation Committee, and the House Appropriations Committee, in accordance with § 2–1257 of the State Government Article, on: The methodology of the analysis required under subsection (b) of this section; Cost estimates for raising the Program’s reimbursement rates to the 45th, 55th, 65th, and 75th percentile of child care providers in each of the State’s market regions; The minimum base payment rate that is required for child care providers to meet health, safety, quality, and staffing requirements in accordance with federal law and the factors used to determine that rate; The rate adjustment that the Department will implement based on the analysis; Any adjustments to Program eligibility or family copay amount that will be implemented; and Any potential impacts on families and providers due to any adjustments made to the Program. The Governor shall include in the annual State budget an appropriation from all fund sources for the Program that is not less than the total appropriation for the Program in fiscal year 2018 or fiscal year 2019, whichever is greater. Except as provided in paragraph (3) of this subsection, the Department may not make the following alterations to the Program in effect as of January 1, 2023: Reduce the reimbursement rates; Reduce the income eligibility requirements; or Subject to subsections (e) and (f) of this section, implement a freeze in Program enrollment. The Department may alter the Program in effect as of January 1, 2023, by reducing the reimbursement rates, reducing the income eligibility requirements, or implementing a freeze in Program enrollment, if: The Department submits a notification to the Senate Budget and Taxation Committee, the Senate Committee on Education, Energy, and the Environment, the House Appropriations Committee, and the House Ways and Means Committee, in accordance with § 2–1257 of the State Government Article, on the intended Program alterations, including the reason for, and expected duration of, the proposed actions; and The Program alterations identified in the notification are not implemented until the completion of the regular legislative session immediately following the submission of the notification. If the Board of Public Works approves budget reductions for the Program under § 7–213 of the State Finance and Procurement Article for a certain fiscal year, the Department may reduce the reimbursement rates, reduce the income eligibility requirements, or implement a freeze in Program enrollment at any time during the fiscal year. Except as provided in § 9.5–113(d) of this subtitle, the Department may not increase the copayment levels of the Program in effect as of January 1, 2024. A freeze in Program enrollment may not apply to: An individual or a family who is enrolled in the temporary cash assistance program under § 5–312 of the Human Services Article; An individual or a family who is enrolled in the federal Temporary Assistance for Needy Families program; A child, parent, or caregiver who is enrolled in the federal Supplemental Security Income program; The sibling of a child who is enrolled in the Program; and A child who is homeless. An individual described under subparagraph (i) of this paragraph shall otherwise meet the criteria for enrollment in the Program. If the Department establishes a freeze in Program enrollment, the Department shall establish a waitlist for eligible individuals who apply to the Program after the freeze is in effect. The waitlist shall remain in effect as long as there are fewer available awards under the Program than eligible applicants for the Program. The waitlist shall provide awards for enrollment in the Program to qualified applicants in the following order of priority: Applicants with the greatest financial need, based on annual household income; Applicants who work for at least 20 hours a week as an employee or operator of a child care center, a family child care home, a large family child care home, or an eligible publicly funded prekindergarten program under Title 7, Subtitle 1A of this article that accepts children enrolled in the Program; Applicants enrolling a child under the age of 3 years; and Applicants who have been on the waitlist for the longest period of time. If the Department establishes a freeze in Program enrollment, the Department shall identify applicants to the Program whose children qualify for: The publicly funded prekindergarten program under Title 7, Subtitle 1A of this article; or A Head Start or Early Head Start program. The Department shall inform an applicant identified under paragraph (1) of this subsection about the publicly funded prekindergarten program, Head Start program, or Early Head Start program, including by providing information on: Available prekindergarten, Head Start, or Early Head Start programs in the county in which the applicant resides; How to contact providers who may have available program slots; and How to apply for the programs. On request, the Department shall provide eligible families identified under paragraph (1) of this subsection with information on the enrollment processes. The process for identifying and assisting eligible Program applicants whose children qualify for a program shall continue as long as the waitlist is in effect. The Governor shall, from all fund sources, appropriate funds in the annual State budget in an amount sufficient to raise the Program’s reimbursement rates for each region to: For fiscal year 2020, not less than the 30th percentile of the most recent market rate survey or its equivalent if an alternative methodology defined by the Department is used; and For fiscal year 2021 and each fiscal year thereafter, not less than the 60th percentile of the most recent market rate survey or its equivalent if an alternative methodology defined by the Department is used.

Beginning October 1, 2016, the Department shall submit to the Senate Budget and Taxation Committee and the House Appropriations Committee, in accordance with § 2–1257 of the State Government Article, the monthly reports received by the Department regarding Child Care Subsidy Program expenditures and participation.

In this section, “Program” means the Child Care Scholarship Program. The Department shall administer the Program in accordance with federal law. The Department shall: Provide to Program applicants information on income–based government assistance programs and tax credits for which the applicants may be eligible; and Incorporate the framework of the Youth Transitioning From Foster Placement to Successful Adulthood Program as established under § 9.5–113.2 of this subtitle. The Department shall award a scholarship under the Program in an amount sufficient to ensure that an individual will not be required to pay a copay for child care if the individual provides proof, as determined by the Department, of: Participation in one of the following programs: Federal Special Supplemental Food Program for Women, Infants, and Children; Federal Supplemental Nutrition Assistance Program; Federal Housing Act Housing Choice Voucher Program; Supplemental Security Income benefits; or Temporary cash assistance; and Employment or enrollment in an education or career training program; or Participation in the Youth Transitioning From Foster Placement to Successful Adulthood Program established under § 9.5–113.2 of this subtitle. The Department shall award a scholarship under the Program in an amount sufficient to ensure that an individual who has an annual household income at or below the federal poverty line is not required to pay a copay for child care. The Department may award partial scholarships under the Program through a sliding fee scale for copayments that: Applies to an individual who: Has an annual household income above the federal poverty line; and Is not described under paragraph (1)(i) of this subsection; Is based on an individual’s annual household income above the federal poverty line; Requires an individual to provide an increased percentage of the individual’s annual household income as a copay as the individual’s income increases; Increases copay percentages gradually between household income categories, culminating in a maximum copay not exceeding 7% of an individual’s annual household income for an individual with the highest income category under the Program; Includes a sufficient number of household income categories to minimize significant increases in copay amounts for an individual who moves from one household income category to another; and Requires a copay for each child in a family receiving a partial scholarship, but requires a lower copay amount for each subsequent child. Subject to subparagraph (i) of this paragraph, the Department may set a minimum copay amount for a partial scholarship award under the Program. A minimum copay amount may not be more than $10 each month. An individual is eligible to continue to receive a scholarship under the Program: For at least 90 days in a year if the individual is unemployed and seeking employment; and If the individual meets any other eligibility criteria determined by the Department. The Department may not require an individual to pursue or receive child support payments or apply for services from a child support agency to be eligible for a scholarship under the Program. The Department shall notify the Comptroller within 10 days after the date on which the Department receives an invoice from a child care provider. The Comptroller shall pay a child care provider within 5 days after the date on which the Comptroller receives a notice under paragraph (1) of this subsection. The Department shall adopt regulations to implement the provisions of this section.

In this section the following words have the meanings indicated. “Fund” means the Child Care Capital Support Revolving Loan Fund. “Rural community” has the meaning stated in § 2–207 of the State Finance and Procurement Article. There is a Child Care Capital Support Revolving Loan Fund. The purpose of the Fund is to provide no–interest loans for capital expenses to child care providers who participate in the Child Care Scholarship Program under § 9.5–113 of this subtitle. The Department of Commerce shall administer the Fund with support from the Department. The Fund is a special, nonlapsing fund that is not subject to § 7–302 of the State Finance and Procurement Article that shall be available in perpetuity for the purpose of providing loans in accordance with the provisions of this section. The State Treasurer shall hold the Fund separately, and the Comptroller shall account for the Fund. The Fund consists of: Money appropriated in the State budget to the Fund; Any interest earnings of the Fund; Repayments of principal and interest from loans made from the Fund; and Any other money from any other source accepted for the benefit of the Fund. The Fund may be used only to provide no–interest loans to child care providers for capital expenses related to a child care facility, including: Acquisition; Expansion; Renovations; and New construction. Except as provided in subparagraph (ii) of this paragraph, child care providers shall repay loans from the Fund not later than 5 years after receiving a loan from the Fund. The Department of Commerce may establish a financial hardship exemption to allow a child care provider additional time to repay a loan from the Fund. If a hardship exemption is not granted, the Department of Commerce shall apply its normal policy regarding assisting child care providers with past due loan payments. The State Treasurer shall invest the money of the Fund in the same manner as other State money may be invested. Any interest earnings of the Fund shall be credited to the Fund. The Department of Commerce, in consultation with the Department, shall establish application procedures and eligibility criteria for loans from the Fund, in addition to the requirement that a child care provider be a participant in the Child Care Scholarship Program under § 9.5–113 of this subtitle. The Department shall prioritize applicant criteria in the following order when providing funding from the Fund: Child care providers that are located in: Underserved communities; or Areas designated by the Department as areas lacking child care slots; Child care providers that are located in rural communities; Child care providers that serve primarily low–income populations in areas of high poverty; Child care providers that serve children with special needs; and Child care providers that serve children ages 2 and younger. The Department of Commerce shall work with the Department to publicize the availability of loans from the Fund and provide support to child care providers in applying for loans from the Fund. For fiscal year 2023, the Governor shall include in the annual budget bill an appropriation to the Fund of $15,000,000. For fiscal year 2024, the Governor shall include in the annual budget bill an appropriation to the Fund of $10,000,000.

In this section the following words have the meanings indicated. “Foster youth” means an individual who: Is at least 16 years old and under the age of 22 years; and Is in out–of–home care under the responsibility of the State; or Was in out–of–home care under the responsibility of the State on the individual’s 18th birthday. “Program” means the Youth Transitioning From Foster Placement to Successful Adulthood Program. There is a Youth Transitioning From Foster Placement to Successful Adulthood Program in the Department. The purpose of the Program is to remove certain application barriers for parenting foster youth and increase eligibility access to the Child Care Scholarship Program for the foster youth’s child. The Department shall administer the Program. The Program shall begin on or before January 1, 2026. The Department shall remove barriers in the Child Care Scholarship Program application process for foster youth in the Program by removing the following requirements: Proof of a foster youth’s employment or enrollment in an education or career training program; The name of the other parent of the foster youth’s child; A written authorization from a parent if the parent is not residing in the same household as the child; and Application information, including income, that relates to a foster youth’s foster parents rather than to the foster youth. The Department of Human Services shall make referrals to the Department regarding the Program.

In this section the following words have the meanings indicated. “Child care licensing region” means any one of 13 regions designated by the Department to provide licensing and oversight for family child care programs. “Family child care” means the care given to a child under the age of 13 years or to a developmentally disabled person under the age of 21 years that is in place of parental care for less than 24 hours a day, in a residence other than the child’s residence, for which the family child care provider is paid. “Family child care provider” means an individual who cares for children in a registered family child care home or a registered large family child care home. “Local program” means a local jurisdiction or child care licensing region that participates in the Program. “Program” means the Growing Family Child Care Opportunities Program. “Start–up assistance” means the funding for starting a family child care program including the cost of materials, curriculum, and renovations. There is a Growing Family Child Care Opportunities Program in the Department. The purpose of the Program is to provide grants to establish and support local programs in the State. The Department shall partner with the Maryland Child Care Resource Network to administer the Program. Except as provided in subsection (g) of this section, on or before September 1, 2022, the Department shall award at least three grants, each of which does not exceed $150,000, in accordance with paragraph (2) of this subsection to establish and support family child care providers in the State. To be eligible for a grant under this section, a county governing body or multiple county governing bodies shall sign a memorandum of understanding with a child care resource center that serves the child care licensing region that contains one of the counties. The county or counties and the child care resource center jointly shall apply for the grant and administer the local program. Grant recipients shall: Use the grants to: Establish and support a local program; and Target the use of the grant to increase the supply and ensure the sustainability of family child care providers in areas with above average rates of poverty and unemployment or areas with a lack of available child care providers; Raise local matching funds, including in–kind matching resources at a 1:1 match; Collaborate with existing family child care providers during the implementation of the Program; Provide multilingual outreach to recruit individuals to become registered family child care providers with the Department; Provide technical assistance, financial incentives, and start–up assistance for recruited individuals as they navigate the Department’s process to become a registered family child care provider; Assist newly registered and established family child care providers through technical assistance to achieve quality benchmarks, peer–to–peer mentoring, and financial incentives; and Establish partnerships with local chambers of commerce, or other local or state organizations for family child care providers that support small businesses and women and minority–owned businesses to provide: Assistance to recruited individuals or registered family child care providers in implementing best business practices; and Assistance in achieving financial sustainability. Subject to paragraph (2) of this subsection, for each of fiscal years 2023, 2024, 2026, and 2028 through 2030, the Governor shall include in the annual budget bill an appropriation of $450,000 to the Program. To the extent authorized under federal law, the Governor shall use federal funds to satisfy the requirement of paragraph (1) of this subsection. The Department shall develop guidelines, in consultation with the Maryland Child Care Resource Center, for the grant application process and grant recipients. The Department may seek funding to start the Program. If the Department receives funding before July 1, 2022, the Department shall begin awarding grants as soon as possible under the Program. Each year, the Department shall develop and publish goals for the Program. On or before December 1, 2021, and each December 1 thereafter, the Department shall report to the General Assembly, in accordance with § 2–1257 of the State Government Article, on the status of the Program and an evaluation of local programs in meeting the Program goals.

In this section, “child care program” includes: A child care center, as defined in § 9.5–401 of this title; A family child care home, as defined in § 9.5–301 of this title; and A large family child care home, as defined in § 9.5–301 of this title. Beginning July 1, 2023, at least once each calendar year, a child care program shall make the following information available to the parent or guardian of each child under the age of 3 years: Information about the Maryland Infants and Toddlers Program; and Contact information for the local lead agency responsible for the administration of the Maryland Infants and Toddlers Program. A child care program may provide the information required under paragraph (1) of this subsection by: A personal message to a parent or guardian, including by an e–mail; A document for which a parent or guardian acknowledges receipt; or A text message. On request of a parent or guardian, a child care program shall assist the parent or guardian with scheduling a time and convenient location for the local lead agency responsible for administering the Maryland Infants and Toddlers Program to provide the appropriate screening. The Department shall provide each child care program with information about the Maryland Infants and Toddlers Program sufficient for the child care program to carry out the requirements of this section, including contact information for the local lead agency.

In this section the following words have the meanings indicated. “Community resources” includes: Judy Centers; Patty Centers; Head Start Centers; Maryland Infant and Toddlers Program providers; and Other community stakeholders that serve children facing developmental, social, emotional, or behavioral health issues. “Initially eligible child” means a child under the age of 6 years who is enrolled in: A family child care home or large family child care home, registered under Subtitle 3 of this title; A child care center that, in accordance with Subtitle 4 of this title, is licensed, has a certificate of approval from the Department, or has been issued a letter of compliance; or A publicly funded full–day prekindergarten program under Title 7, Subtitle 1A of this article. “Potentially eligible child” means a child who is at least 6 years old and is enrolled in kindergarten, first grade, or second grade. “Program” means the Infant and Early Childhood Mental Health Support Services Program. There is an Infant and Early Childhood Mental Health Support Services Program. The Program shall be administered by the Department. The purpose of the Program is to promote positive mental and behavioral health practices for young children who may have developmental, social, emotional, or behavioral issues. The Department may accept for enrollment in the Program: Referrals from child care providers; and Self–referrals from families of initially eligible children. The Program shall aid children enrolled in accordance with paragraph (1) of this subsection by: Referring children and families in need of intensive mental or behavioral health services to appropriate clinics or programs; Training, coaching, and mentoring teachers and caregivers to address challenging behaviors; Building partnerships with community resources; Working to ensure children have stable, quality child care programs; and Awarding grants to carry out the Program. In implementing the Program, the Department may designate specific regions in the State and create unique approaches in each designated region. For fiscal year 2024 and each fiscal year thereafter, the Governor shall include in the annual budget bill an appropriation of $3,000,000 for the operation of the Program. The Department shall utilize additional available funding to support the Program. If the Program is able to serve all initially eligible children and has funds remaining for the Program, the Department shall consider potentially eligible children who may have developmental, social, emotional, or behavioral issues for enrollment in the Program. The Department may accept for enrollment in the Program: Referrals from child care providers; and Self–referrals from families of potentially eligible children. The Program shall aid children enrolled in accordance with paragraph (1) of this subsection by: Referring children and families in need of intensive mental or behavioral health services to appropriate clinics or programs; Training, coaching, and mentoring teachers and caregivers to address challenging behaviors; Building partnerships with community resources; and Awarding grants to carry out the Program.

In this section the following words have the meanings indicated. “Anaphylactic allergy” has the meaning stated in § 7–426.1 of this article. “Emergency use epinephrine” has the meaning stated in § 7–426.2 of this article. “Major food allergen” has the meaning stated in § 7–426.1 of this article. The Department and the Maryland Department of Health jointly shall develop guidelines to reduce the risk of exposure to anaphylactic major food allergens in child care settings. The guidelines developed under paragraph (1) of this subsection shall identify at least one free training resource on reducing the risk of exposure to anaphylactic major food allergens that is appropriate for child care providers. Based on the guidelines developed in subsection (b) of this section, the Department shall develop a model policy for child care providers that, at minimum, includes: Emergency protocols, including comprehensive guidelines for storage and administration of epinephrine; Cross–contamination prevention strategies; and Notification of a child’s anaphylactic allergy to: Staff who come into contact with the child; and Child care provider administrators. The Department shall post the guidelines, model policy, and training resources developed under this section on the Department’s website. This subsection applies to the following registrants or licensees that have at least one enrolled child with a food allergy: A large family child care home registered under Subtitle 3 of this title; and A child care center licensed under Subtitle 4 of this title. A registered large family child care home and licensed child care center shall: Adopt and implement a policy on reducing the risk of exposure to anaphylactic major food allergens in child care settings in accordance with the guidelines developed under subsection (b) of this section; Monitor updates to the Department’s guidelines and update the policy in accordance with the Department’s revisions; and Provide a copy of the policy to the parent or guardian of each enrolled child each year. Except for any willfully or grossly negligent act, a child care provider or an employee of a child care provider who responds in good faith to the anaphylactic reaction of a child in accordance with the guidelines implemented under this section or by use of emergency use epinephrine is immune from civil liability for any act or omission in the course of responding to the reaction.

In this section the following words have the meanings indicated. “Applicant” means an individual who is applying for a position involving direct contact with children in a child care facility. “Applicant” includes a volunteer or other individuals who may be subject to federally required background checks. “Central Repository” means the Criminal Justice Information System Central Repository of the Department of Public Safety and Correctional Services. “Child care facility” means a registered family child care home, a registered large family child care home, a licensed child care center, or a child care center that holds a letter of compliance. An applicant who is seeking a position involving direct contact with children at a child care facility shall submit to a criminal history records check in accordance with § 5–555 of the Family Law Article. On or before June 30, 2027, the Department shall establish a centralized unit for the processing and management of information about criminal history records checks for applicants providing child care services. The centralized unit may be staffed by licensing specialists in the regional child care licensing offices throughout the State. The centralized unit shall notify an applicant for a criminal history records check: Of the status of the application within 10 days after submission; and Subject to the receipt of the criminal history record information from the Central Repository under subsection (d) of this section, within the time frame required under federal law, of the applicant’s eligibility to provide child care services in a child care facility. The centralized unit shall review and maintain background checks completed in accordance with § 5–555 of the Family Law Article. Information obtained from the Central Repository under this section: Is confidential; May not be disseminated without the express permission of the applicant; and May be used only for the purposes authorized by this title. The centralized unit may maintain a list of applicants who have submitted a criminal history records check in accordance with this section. The centralized unit may share the name and status of an applicant on the list with: A child care facility at which the applicant seeks to be employed or volunteer; and The applicant. On request by an applicant or a child care facility, the centralized unit may provide written notice to the applicant or the child care facility that an applicant who seeks to be employed by or volunteer with the child care facility has a criminal history records check on file with the Department.