02/27/2026
HB 647 Childcare Bill: How it will affect the profession if passed!
Ohio HB 647 – Plain Language Summary
Impact on Type A and Type B Family Child Care Homes
1. Immediate License Suspension Authority
• The Department of Children & Youth may immediately suspend a Type A or Type B license
without a prior hearing if there is a serious safety issue or suspected misuse of publicly funded
child care money.
• Suspension triggers include serious injury or death of a child, abuse allegations, criminal
charges, serious safety risks, background check issues, or suspected fraud.
• While suspended, the provider cannot operate and must notify parents.
2. Attorney General Investigation Authority
• The Ohio Attorney General can investigate criminal or improper activity related to publicly
funded child care.
• Cases may be referred to local prosecutors or prosecuted directly by the Attorney General.
• Fraud cases could become criminal, not just administrative repayment matters.
3. Shift to Enrollment-Based Payments (By July 9, 2028)
• Payments for publicly funded child care will be calculated based on enrollment rather than daily
attendance.
• Providers must ensure enrollment records match authorizations and schedules.
• Duplicate billing or inaccurate enrollment documentation may trigger audits.
4. Automated Fraud Detection and Data Analytics
• The state is funding enhanced data analytics to conduct automated attendance reviews.
• Red flags may include identical daily times, overlapping providers, billing outside authorized
hours, or use of parent PINs by providers.
• Providers should ensure accurate documentation and compliance with system rules.
5. Limited Appeal Rights for Overpayments and Terminations
• Department decisions regarding overpayments, recovery of funds, and contract terminations
are described as final and not subject to standard administrative appeal under Chapter 119.
• Providers should maintain strong internal documentation to protect against overpayment
determinations.
6. Compliance Best Practices for Type A and Type B Homes
• Maintain complete enrollment files for every publicly funded child.
• Do not store or use a parent’s PIN or system credentials.
• Reconcile authorized hours against billed hours monthly.
• Document all schedule or employment changes reported by parents.
• Ensure all background checks and household member requirements are curren