A new Michigan law carves school-based preschools out of child care licensing rules—but the exemption may not apply to your program.
Most child care owners in Michigan don't realize that preschool programs operating inside public and nonpublic schools are no longer required to meet state child care center licensing standards. This exemption, buried in HB5803, fundamentally changes the regulatory landscape for a specific slice of the early childhood market—and it's worth understanding, whether you operate a school-based program or compete with one.
The bill amends the Michigan Child Care Licensing Act (1973 PA 116, MCL 722.111) by adding a new exemption to the definition of "child care center." Under the new language in Section 1(1)(i)(vii), preschool classrooms located in both public schools and nonpublic schools—including private, religious, and independent schools—are excluded from licensing requirements entirely.
This is not a minor paperwork reduction. The exemption eliminates:
For a small nonpublic school operating a preschool classroom, this can mean significant cost savings and administrative relief. For independent child care centers competing in the same market, it creates an uneven playing field.
The exemption applies specifically to preschool programs housed within school buildings—public or private. This includes:
If your child care center operates as a standalone facility, in a church building that is not a school, or serves infants and toddlers alongside preschoolers in a non-school setting, you remain subject to full licensing requirements. The exemption does not apply to you.
HB5803 takes effect upon enactment. The bill text does not specify a delayed effective date, meaning the exemption is in force now.
If you operate a school-based preschool, this law removes a significant regulatory burden. If you run an independent child care center, you should be aware that school-based competitors may now operate under different—and lighter—regulatory requirements, even if they serve the same age group and families in your community.
Either way, understanding the scope of this exemption is important for business planning, competitive positioning, and compliance. School districts and nonpublic schools considering preschool expansion should know they are no longer subject to child care licensing. Independent operators should factor this into market analysis and advocacy efforts.
For a detailed breakdown of how HB5803 affects your specific program type, consult the bill text (MCL 722.111(1)(i)(vii)) or speak with a child care licensing specialist familiar with Michigan regulations.