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Thursday, November 13, 2025

Michigan bill seeks to limit regulatory reach over multi-use childcare facilities

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Brian Calley President and Chief Executive Officer at Small Business Association of Michigan | Official website

Brian Calley President and Chief Executive Officer at Small Business Association of Michigan | Official website

Cutting regulatory requirements for childcare providers has been a focus in the Michigan House Rules Committee this year. Last week, Jacob Manning, Advocacy & Policy Manager at the Small Business Association of Michigan (SBAM), testified in support of House Bill 5127. He appeared alongside the bill’s sponsor, Representative Bill G. Schuette.

The proposed legislation would clarify that Michigan’s Department of Lifelong Education, Advancement, and Potential (MILEAP) can only regulate licensed childcare spaces themselves and not unrelated tenants or areas in multi-use buildings where children are not present.

Currently, there is no legal guarantee protecting providers from inspections in parts of their facility where children do not go or in areas outside their control. According to SBAM, these inspection risks can affect both family-based and community-based providers as well as larger centers.

Jacob Manning explained that compliance demands take time away from actual childcare: “Every provider agrees that the most important part of their work is ensuring the health and safety of their kids, and a safe environment is a central piece of providing stellar care. Regulators play a vital role in ensuring safety conditions are met. HB 5127 does not take away any relevant safety requirements but focuses providers’ efforts on the aspects of their center where kids are actually present.”

Childcare shortages continue to impact employers across Michigan since access to reliable childcare remains a leading factor behind workforce gaps. Regulatory confusion is frequently cited by providers as an obstacle to expanding capacity and improving services.

SBAM’s testimony on this issue began earlier this year when it joined Lindsey Potter, owner of Bright Light Early Care & Education, before lawmakers. Potter described having to interact with six different organizations to satisfy regulatory demands. She noted duplicative requirements create extra burdens for small businesses.

House Bill 5127 forms part of broader legislative efforts responding to recommendations found in Representative Schuette’s Red Tape Report. Multiple bills have been introduced seeking changes to state regulations affecting childcare operations.

For more details about HB 5127, visit https://www.legislature.mi.gov/Bills/Bill?ObjectName=2025-HB-5127

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