A provision in Utah's budget bill limits how much the state can charge you to file licenses and renewals online.
Most child care owners in Utah don't realize that when they submit a license application, renewal, or annual report to the Department of Commerce electronically, they're charged a convenience fee on top of the filing cost itself. That surcharge has been uncapped—until now.
HB0008, a bill focused on state agency fees and internal service fund spending, contains a provision that directly affects every child care provider who files anything with Commerce online. Starting July 1, 2026, the state can no longer charge unlimited convenience fees for electronic filings. Instead, fees are capped at a flat $3 for transactions under $100, and 3% of the transaction amount for anything over $100.
Child care licensing in Utah requires regular filings: initial applications, annual renewals, and administrative updates. Each time you submit these documents electronically through the state's system, Commerce has been able to charge a processing fee. Without a cap, that surcharge could vary significantly and add up across multiple filings each year.
The new cap means predictability. If your renewal fee is $150, the convenience charge will be capped at $4.50 (3% of $150), not whatever the state previously charged. For smaller filings under $100, you'll never pay more than $3 in convenience fees, regardless of the actual filing cost.
This is particularly relevant for child care centers and family child care providers who maintain multiple licenses or file frequent administrative updates. Over time, a capped fee structure reduces the total cost of compliance.
The fee cap applies during the fiscal year beginning July 1, 2026, and ending June 30, 2027. This gives the state time to update its payment systems and gives you time to plan for the change. If you file before July 1, 2026, the old fee structure may still apply—so it's worth checking with Commerce closer to that date if you have filings scheduled.
The provision is found in Section 3 of HB0008, page 221 of the bill text.
There's no action required immediately. However, if you're budgeting for licensing costs or planning filings over the next year, you may want to contact the Utah Department of Commerce directly to confirm current convenience fees and understand how the transition will work on July 1, 2026. Keep records of what you've paid in the past—it may help you spot the savings once the cap takes effect.
Child care business associations and licensing consultants in Utah have published detailed guides to HB0008's impact on the child care sector, available through the Utah Office of Child Care and the state's small business resources.
Source: HB0008, State Agency Fees and Internal Service Fund Authorization and Appropriations, Section 3, page 221; effective July 1, 2026 through June 30, 2027.