Texas Daycare Licensing Requirements: What It Takes to Run and Expand a Licensed Child Care Center

Operating or expanding a licensed child care center in Texas means working through state statutes, administrative codes, and agency handbooks. In Texas, the licensing process is governed by the Texas Health and Human Services Commission (HHSC), Child Care Regulation (CCR), under Human Resources Code (HRC) Chapter 42.

A licensed child care center cares for seven or more children under 14 for less than 24 hours per day at a location other than the permit holder’s home (CCRH 2110.4, Rev. 24-2). The fees, timeline, staffing, background-check, and enforcement rules below are for owners and directors currently operating or expanding a licensed center—not home-based care or business-startup planning.

(If you search for state requirements, you may hit legacy pages branded under the Texas Department of Family and Protective Services (DFPS) “Texas Child Care Licensing (CCL).” Regulation has moved from DFPS to HHSC; the legacy DFPS pages remain live and still appear in search results, but the active authority is HHSC CCR.)

Texas Child Care Licensing At-a-Glance

HRC Chapter 42 citations are current through the 89th 2nd Called Session, 2025; 26 TAC Chapter 746 is HHSC’s PDF revised December 2025; the CCRH’s latest revision is 25-3 (August 15, 2025), older sections dated inline. Reconciled August 26, 2026.

Permit Types, Thresholds, and Exemptions

Among Texas’s permit types (CCRH 2110, Rev. 25-2, Jul 1 2025), a licensed child care center is defined under 26 TAC §746.123(16) (revised December 2025) as:

“Child-care center–A child-care facility that is licensed to care for seven or more children for less than 24 hours per day, at a location other than the permit holder’s home. If you were licensed before September 1, 2003, the location of the center could be in the permit holder’s home.”

If you provide care in your own residence, you generally fall under home-based permits, outside this guide’s scope (CCRH 2110.1–2110.3, Rev. 24-2). The one exception is a center licensed before September 1, 2003, whose location may be the permit holder’s home (26 TAC §746.123(16), revised December 2025). Licensed centers may provide nighttime care with CCR approval (CCRH 2110.4, Rev. 24-2). School-age programs and before/after-school programs each need their own permit and are not the standard licensed center (CCRH 2110.5, 2110.6, Rev. 24-2).

Exemptions

HRC §42.041(a) requires a license to operate, but §42.041(b) exempts 19 or more categories. Those most relevant to center operators include drop-in care, provided the facility does not advertise as a child care facility and informs parents it is unlicensed (b)(3); accredited educational programs for prekindergarten and above (b)(7); other educational and religious programs, each with its own custodial-care limit; and an operation running “less than three consecutive weeks and less than 40 days in a period of 12 months” (b)(17). Any exempt facility that “desires to receive or participate in federal or state funding” must still comply with the whole chapter (HRC §42.041(d)).

HHSC decides all exemption requests under CCRH 2400. Do not assume you are exempt; confirm with HHSC or consult legal counsel.

Licensing Costs and Fees

Texas charges flat, low-cost fees plus a small per-capacity charge.

Fee Schedule (CCRH §5210 chart, Rev. 25-3)

Fee Mechanics

• Payment timing: The application fee is due before CCR accepts your application; CLASS invoices it when you submit your e-Application (CCRH 5231, Rev. 25-3). Withdraw and you forfeit it, but owe no new fee if you re-apply within 30 days.
• Annual fee vs. renewal: The annual fee falls each year on your full permit’s issuance anniversary (CCRH 5235, Rev. 25-3)—the statute instead anchors it to the initial-license issuance date (HRC §42.054(c))—invoiced 35 days ahead.
• Non-payment: Miss the annual fee and the license is automatically suspended; unpaid for six months after, it is automatically revoked (HRC §42.054(f)).
• Refunds and multiples: Background-check and annual fees are nonrefundable, as is anything on revocation or relinquishment. The application fee is likewise nonrefundable, with one exception: it is refunded after appeal where issuance was late. The initial license, full license, and amendment fees are each refunded only where the corresponding permit is not issued (CCRH 5270, Rev. 25-3). Separately licensed programs each pay their own fees, and for-profit centers are exempt from none (CCRH 5212, 5211, Rev. 25-3; 26 TAC §§745.511, 745.513).

The Licensing Timeline

The timeline is set partly by statute (the two-month decision clock, HRC §42.046(d)) and partly by handbook (the six-month initial license and its inspections, CCRH 3421, Aug 2021; 3511.1, Rev. 25-2), running in four stages:

1. Pre-application interview.
2. Application accepted — the two-month decision clock runs from acceptance (the statute measures from receipt of a completed application).
3. Initial license issued (six months) — at least three unannounced inspections while children are in care: within two months of issuance, at reasonable intervals, and at least 30 days before it expires.
4. Full license issued — a renewal application is due every two years, and the annual fee each year.

The two-month clock starts only on “acceptance”—a completed application plus a paid fee—and may be extended only for limited “good cause” (CCRH 3410, 3411, Rev. 25-2; 26 TAC §745.327). Because the initial license can be renewed once, acceptance to full license runs roughly eight to fourteen months (CCRH 3520, 3531, Rev. 25-2).

Director and Staff Qualifications

Texas sets minimum standards for who runs a center and who cares for children.

Director Qualifications (26 TAC §746.1015, footer March 2023; document revised December 2025)

For centers licensed for 13 or more children, the director must meet these verbatim requirements:

“Except as otherwise provided in this division, the director of a child-care center licensed for 13 or more children must be at least 21 years of age, have a high school diploma or its equivalent, and meet one of the following combinations of education and experience, as defined in §746.1021 of this division …”

“Options (5) and (6) of this section require periodic renewal for the director to remain qualified as specified in §746.1053 … and §746.1055”

Centers licensed for 12 or fewer children have lighter requirements under 26 TAC §746.1017 (revised December 2025). A degree is not required: options (5)–(7) qualify through credentials or credit hours plus experience.

Director Presence

The director must be physically present at least 75% of weekly operating hours or 30 hours a week, whichever is less, excepting vacation, PTO, and professional development (26 TAC §746.1011(a), revised December 2025); a director covering more than one operation had to meet that rule by March 1, 2025 (26 TAC §746.1011(b)). When the director is away, designate a qualified caregiver or director in charge; an extended absence needs a temporary director meeting full qualifications, reported to CCR (26 TAC §746.1013).

Staff Training Requirements

Training standards above are set by 26 TAC Chapter 746, revised December 2025.

Background Checks

Texas background-check rules (26 TAC Chapter 745 Subchapter F, rule pages revised August 9, 2024) run through HHSC’s Centralized Background Check Unit (CBCU) (CCRH 10111, Rev. 24-1).

Who Must Be Checked

Every owner (including partners and board members in everyday management); every current and prospective employee, including directors; every frequent visitor aged 14+ (contractors, self-employed persons, volunteers present while children are in care); and anyone 14+ counted in ratios, with unsupervised access, providing direct care, or residing at the operation (CCRH 10121, Rev. 25-3; 26 TAC §§745.601, 745.605, revised August 9, 2024). Narrow exceptions cover children in care, a parent present only for their own child, certain licensed professionals and subcontractors in an official capacity (with written parental consent before unsupervised access), a controlling person with no other role, and HHSC/DFPS staff (CCRH 10122, Rev. 25-3).

Check Types and Fingerprinting

Checks span the Texas Central Registry (abuse/neglect), name-based Texas criminal history and fingerprint-based DPS and FBI criminal history, and Texas, national, and out-of-state sex offender registries (CCRH 10112, Rev. 25-3). Fingerprint-based checks are mandatory for owners, employees, and directors (26 TAC §745.605(a)(1)–(6), revised August 9, 2024). A person who falls only under §745.605(a)(7) needs a name-based Texas check unless they resided outside Texas at any time in the preceding five years, or there is reason to believe they have out-of-state criminal history (26 TAC §745.611(a), revised August 9, 2024). High school or college students completing a required practicum need only a name-based check, provided they are never left unsupervised, are not counted in ratios, and are paired with a qualified caregiver (26 TAC §745.611(b), revised August 9, 2024).

The Presence Gate: Texas Exceeds the Federal Floor

Federally, a prospective staff member may start under supervision after a qualifying FBI or resident-state result (45 CFR §98.43(d)(4), as of 2026-08-25). Texas is stricter: the subject may not be present at the center until the CBCU notifies the operator that they are “eligible,” “eligible with conditions,” or “provisionally eligible with conditions,” the only exception being that a pending hire may attend unpaid on-site orientation or pre-service training with no contact with children in care (26 TAC §745.641, revised August 9, 2024). Since the CBCU must notify the subject and the operation no later than 45 days from submission (26 TAC §745.627), this gate is a real hiring constraint, distinct from the federal 45-day cap on completing a check (45 CFR §98.43(e)(1)).

Renewal Intervals

Renewal follows the check type, not the job title (26 TAC §745.621, revised August 9, 2024): fingerprint-based every five years, name-based Texas every two, each from the last request, plus new checks on residence-state changes, role upgrades, hires, and new 14+ residents. Owners, employees, and directors are fingerprint-based (26 TAC §745.611(a)(1)), on the five-year cycle.

Ratios and Group Size

Classroom ratios (26 TAC §746.1601, revised December 2025) vary by age band and are covered in our companion guide to Texas daycare ratios and group size. Regardless, HHSC records ratio data for every group of children four and younger at every monitoring inspection (HRC §42.0412(c); CCRH 4131.4, Apr 2021), and supervision is among the high-risk standards HHSC may fine without a prior corrective plan (HRC §42.078(a-2)).

Inspections and Monitoring

HHSC may enter and inspect any licensed center during operating hours (HRC §42.044(a)).

Inspection Cadence

• Statutory rule: at least one inspection a year, at least one unannounced (HRC §42.044(b)); the handbook schedules annual monitoring (CCRH 4131, Aug 2020).
• Initial license: at least three unannounced inspections over the six months (CCRH 3511.1, Rev. 25-2).
• Full license: at least one unannounced monitoring inspection every six months in the first 12 months, then at least annually (not exceeding 366 days between visits); all minimum standards are evaluated every two years and core health and safety standards annually (CCRH 4131, Aug 2020; 4131.5, Apr 2021).

The inspector meets the on-site director at the unannounced annual inspection to assess qualifications, with a follow-up if the director is absent (CCRH 4131.3, Rev. 25-2; HRC §42.044(b-2)).

Local Inspections

Texas has no county or municipal child care licensing authority—HHSC is the single licensor—but local rules can apply. Two clearances are required statewide, before the initial permit and at least every 12 months after: an annual fire-marshal inspection (26 TAC §746.5101, revised December 2025) and an annual local sanitation inspection (26 TAC §746.3401). You must comply with all corrections in the fire marshal’s report (26 TAC §746.5105); the only exceptions are a public-school location or a documented unavailable inspection (from the fire marshal, sanitation official, or county judge).

License Renewal

A full license expires if not formally renewed (CCRH 3911, Rev. 25-2).

• Cycle: renew on the second anniversary of full-license issuance and every two years after (CCRH 3912, Rev. 25-2; 26 TAC §745.473).
• Window: submit within the 60-day window before the anniversary (not earlier), with a 30-day grace period immediately following the anniversary date to avoid expiration (CCRH 3913, Rev. 25-2).
• Complete application: verify your public Search Texas Child Care listing, provide current controlling-person and governing-body lists, note whether waivers or variances still apply, and confirm your background-check list is validated (CCRH 3922.1, Rev. 25-2; 26 TAC §745.475).
• Five-year look-back: the inspector reviews five years of compliance history, and HHSC may add restrictions or conditions (HRC §42.050(c)).
• Hard blockers: HHSC may not renew over an uncorrected violation past its compliance date (unless under administrative review or a pending contested case), and unpaid penalties also block renewal (HRC §42.050(c-1); CCRH 7561, Rev. 25-3).

Violations, Enforcement, and Public Records

HHSC weights each citable minimum standard by risk to children (high through low), independent of a given deficiency’s scope or severity (26 TAC Chapter 746 Introduction, revised December 2025). A deficiency is any failure to meet a minimum standard, a Chapter 745 rule, law, a permit term, or a probation or suspension condition.

When a deficiency is cited, CCR sets a compliance date and re-inspects within 15 days of the latest compliance date where any high-weighted standard was cited, or 30 days of the latest compliance date for medium-high through low (CCRH 4320, Rev. 24-2).

The Enforcement Ladder

1. Voluntary Plan of Action: a corrective plan capped at six months (not extendable), unavailable if used for similar issues in the prior 12 months (CCRH 7300, 7310, Rev. 25-3).
2. Probation: a non-voluntary plan with conditions beyond minimum standards and at least monthly inspections, capped at 12 months (CCRH 7400, Rev. 25-3; HRC §42.071(c)).
3. Administrative penalties: monetary fines.
4. Adverse actions: denial, adverse amendment, involuntary suspension, revocation, or refusal to renew (CCRH 7610, Rev. 25-3).

Administrative Penalties (Fines)

Nonmonetary sanctions come first when appropriate (HRC §42.078(a-1)), but for high-risk violations—abuse, neglect, exploitation, background checks, safety hazards, parent/agency reporting-time standards, and supervision—HHSC may fine without one first (HRC §42.078(a-2)). Each day a violation continues or occurs is treated as a separate violation (HRC §42.078(b)); no fines for clerical errors (HRC §42.078(d)).

Statutory Penalty Limits (HRC §42.078(b)(1))

For non-residential centers, the maximum penalty is set by capacity:

Mandatory Recommended Amounts

These override the capacity table (HRC §42.078(e-1), (e-2)): abuse, neglect, or exploitation, $1,000; failing to timely report to a parent/guardian or HHSC an injury needing professional treatment or hospitalization, or an illness needing hospitalization, $500; failing to report to the parent/guardian of each child in care, within the required time, an HHSC citation for a violation constituting abuse, neglect, or exploitation or of a safe-sleep standard, $50 plus $50 for each day the violation continues; and failing to report to the parent/guardian of each child in care, within the required time, that the facility does not maintain liability insurance, $50 plus $50 for each day.

Due Process and Appeal Clocks

HHSC must give written notice of a penalty recommendation within 14 days of issuing it (HRC §42.078(f)). You then have 20 days from receiving the notice to accept the penalty or request a hearing (HRC §42.078(g))—though the handbook states 30 days from receiving CLASS Form 2994 to pay, accept, or dispute the penalty (CCRH 7540, 7550, Rev. 25-3), so consult counsel. Hearings are before an administrative law judge, and you pay or seek judicial review within 30 days after the ALJ’s order is final (HRC §42.078(i), (k)).

The Five-Year Bar

Under HRC §42.072(c), (c-1), an applicant whose license was revoked, not renewed, or denied for a substantive reason in the prior five years—or who voluntarily closed or relinquished in lieu of disciplinary action—cannot be licensed or serve as a “controlling person” in any facility or family home in Texas for those five years.

What Parents Can See

By law, parents have a right to receive copies of your inspection reports and view your compliance history and upheld violations on the public Search Texas Child Care database (HRC §42.0492(5); CCRH 8120, Rev. 23-3, Aug 2020). HHSC also publishes each center’s prior-year employee-departure count as public record (HRC §42.0412(c-1)).

Expanding, Relocating, or Selling

Any structural change to your entity or location is a major licensing event.

Adding a Second Site

A license is tied to one address, so a second location needs a new license and full fee sequence, a pre-licensure inspection, and a six-month initial license with at least three unannounced inspections (CCRH 5212, 5210, Rev. 25-3; 4121, Rev. 25-2; 3421, Aug 2021; 3511.1, Rev. 25-2).

Relocating Your Center

Moving to a new address adds no licensing fees. Notify CCR at least 30 days before via SharePoint Form 2002; CCR inspects within 21 days of receiving your completed form, and you may not operate there until HHSC approves (HRC §42.048(e-3); CCRH 3812, Rev. 25-2). As an amendment, it keeps your issuance date, anniversary, and renewal cycle unchanged, with no new invoice.

Capacity and Space Changes

Amend and get CCR approval before changing total or infant capacity, square footage, or the age range served, or before reducing the number of toilets or sinks (CCRH 3810, 3811, Rev. 25-2). An increase costs $1 per added child on approval (refunded if denied); a decrease is not prorated (CCRH 5236, Rev. 25-3).

Change of Ownership (The Cliff)

Under HRC §42.048(e), a child care license is non-transferable:

“A license issued under this chapter is not transferable and applies only to the operator stated in the license application. A change in ownership automatically revokes a license.”

A change of ownership occurs when the permit’s owner no longer owns the operation, the governing body loses ultimate authority, the legal structure changes (e.g., sole proprietorship to LLC), or the business entity is sold; the sole exception is the acquisition of a corporate permit holder’s publicly traded stock, provided the corporate permit holder continues to exist as the same corporate entity and continues to own and operate the operation, there is no change in policy or procedure, there is no change in staff who have contact with children, and any change in day-to-day operations is in the ordinary course of business and not a result of the stock transaction (CCRH 3833, Rev. 25-2). Otherwise the permit is revoked and the new owner applies fresh, pays all fees, and gets a new CLASS operation number (CCRH 3833, 3834.3, Rev. 25-2); a deal that changes direct-care staff or policies may draw a six-month initial license rather than a full one (CCRH 3412, Rev. 25-2).

Because a change in legal organizational structure automatically revokes the license (HRC §42.048(e); CCRH 3833, Rev. 25-2), consult legal counsel before any corporate or organizational change, so you do not inadvertently shut down your operation.

What This Costs You to Run: The Bookkeeping Layer

Compliance in Texas is not only an administrative task; several of these obligations land directly on your books, your cash flow, and your records. Tactivus provides managed finance and runs the finance function for child care operators.

• The $100,000 liability insurance requirement. Under HRC §42.049, you must carry $100,000 of coverage per occurrence of negligence and file evidence of an unexpired, uncancelled policy with HHSC yearly; lapsing is grounds for suspension or revocation. If you cannot obtain coverage, notify every parent in writing and HHSC with the reason—failing to notify parents carries $50 plus $50 per day (HRC §42.078(e-1)(4)).
• Payroll and time records are licensing records. Under 26 TAC Chapter 746, Subchapter C, Division 3 (revised December 2025), you must keep “Attendance records or time sheets listing all days and hours worked for each employee” on file at the center—the evidence an inspector uses to verify the 75%/30-hour director-presence rule (26 TAC §746.1011, revised December 2025). Tactivus does bookkeeping and managed finance for child care operators.
• The background-check ledger. A recurring expense: fingerprint-based checks renew every five years and name-based every two, at $2 each (26 TAC §745.621(b), revised August 9, 2024; CCRH 5210, Rev. 25-3), invoiced quarterly (CCRH 5237, Rev. 25-3).
• Segregation of duties for provisional staff. A person cleared only as “provisionally eligible with conditions” must never be responsible for financial transactions at the operation (CCRH 10510, Rev. 25-3)—a bookkeeping-permissions constraint, not just a staffing one.

Running a child care center in Texas means balancing strict operating standards against precise financial management: annual licensing fees, quarterly background-check invoices, and the payroll records that prove director presence are all tied to your license. Tactivus does bookkeeping and managed finance for preschool and daycare operators.

Talk to Tactivus about running your center’s finance function.

Sources

• Tex. Hum. Res. Code Chapter 42, current through the 89th 2nd Called Legislative Session, 2025.
• 26 TAC Chapter 745, Subchapter F (Background Check Rules), revised December 2024.
• 26 TAC Chapter 746 (Minimum Standards for Child-Care Centers), revised December 2025.
• 45 CFR §§98.41–98.43 (federal child care background-check floor), eCFR Title 45, Part 98, Subpart E.
• HHSC Child Care Regulation Handbook (CCRH), Revision 25-3, effective August 15, 2025.
• ACF National Database of Child Care Licensing Regulations (Texas profile).