How to Start a Daycare in Arizona

Quality child care has many long-term benefits for young children. It helps children build cognitive, language, physical, and social-emotional skills while working on other learning abilities like memory, self-control, and motivation. Childcare programs have even been linked to boosting academic performance and high school graduation.

Starting a daycare or childcare business can be a lucrative and fulfilling endeavor. In this article, we’ll discuss the licensing requirements and application process to start a daycare center in Arizona.

young child having fun with toys

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Do I need a childcare license in Arizona?

The Arizona Department of Health Services, Bureau of Child Care Licensing (BCCL) develops standards to address the physical space, equipment, programs, and services in childcare facilities. They also verify the qualifications of applicants and facility personnel.

Arizona state law defines child care as, “The care, supervision, and guidance of a child or children, unaccompanied by a parent, guardian, or custodian on a regular basis, for periods of less than 24 hours per day, in a place other than the child’s or the children’s own home or homes.”

The Arizona Department of Health Services (ADHS) requires a childcare license or certificate for the following facilities:

Child care centers: Child care centers are center-based facilities that provide care for five or more children.

Child care group homes: Child care group homes provide care for five or more children in a provider’s home in exchange for compensation.

Licensing and certification are not required for:

Children who are cared for in their families’ homes
Home-based facilities that provide care to less than five children
A religious institution conducting a nursery in conjunction with its religious services or conducting parent-supervised occasional drop-in care
A unit of the public school system
Any facility that provides training only in specific subjects, including dancing, drama, music, self-defense, or religion

Once the BCCL has determined that applicable childcare facilities are in compliance with the regulatory requirements, the department will issue an initial license or certificate.

young girl at playground

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Childcare licensing requirements in Arizona

The Bureau of Child Care Licensing created the Arizona Administrative Code and Revised Statutes for childcare facilities and childcare group homes “to monitor the health, safety, and well-being of children in childcare centers and childcare group homes throughout Arizona.” They accomplish this by establishing, regulating, and enforcing childcare licensing requirements.

The requirements created by the department are related to facility administration, staff, program and equipment, and physical environment standards.

General requirements

The general requirements for both licensed childcare centers and certified childcare group homes are as follows:

Every applicant must be at least 21 years old
Applicants must pay initial and repeating annual licensing fees
All licensees must allow the department immediate access to all areas of the facility that affect the health, safety, or welfare of enrolled children
Within ten calendar days after the start date of employment or volunteer service, licensees or certificate holders shall provide, and each staff member shall complete, training for new staff members
A licensee or certificate holder shall maintain staff-to-children ratios when providing services to enrolled children
All childcare facilities must ensure that an unannounced fire and emergency evacuation drill is conducted at least once a month and at different times of the day and that each staff member and enrolled child participates

Childcare centers

Provider requirements

For childcare centers, the department requires facility directors to fulfill one of four educational requirements:

At least 24 months of childcare experience, a high school diploma or equivalent, and:
- Six credit hours or more in early childhood, child development, or a closely-related field from an accredited college or university
- At least 60 actual hours of instruction, provided in conferences, seminars, lectures, or workshops, in early childhood, child development, or a closely-related field, and an additional 12 hours of instruction in program administration, planning, development, or management
At least 18 months of childcare experience and:
- An NAC, CDA, or CCP credential; or
- At least 24 credit hours from an accredited college or university, including at least six credit hours in early childhood, child development, or a closely-related field
At least six months of childcare experience and an associate degree from an accredited college or university in early childhood, child development, or a closely-related field; or
At least three months of childcare experience and a bachelor's degree from an accredited college or university in early childhood, child development, or a closely-related field

Ratio requirements

The requirements for staff-to-children ratios in childcare centers are strict. When providing childcare services to enrolled children, the following ratios must be maintained:

Infants: One staff member for five children (1:5) or two staff members for 11 children (2:11)
1-year-old children: One staff member for six children (1:6) or two staff members for 13 children (2:13)
2-year-old children: One staff member for eight children (1:8)
3-year-old children: One staff member for 13 children (1:13)
4-year-old children: One staff member for 15 children (1:15)
5-year-old children (not school age): One staff member for 20 children (1:20)
School-age-children: One staff member for 20 children (1:20)

Child care group homes

Provider requirements

For child care group homes, the department requires providers to have a high school diploma, high school equivalency diploma, associate’s degree, or bachelor's degree, completed department-provided orientation training, and fulfill one of three educational requirements:

Have completed at least three credit hours in child growth and development, nutrition, psychology, or early childhood education
Have completed at least 60 hours of training in child growth and development, nutrition, psychology, early childhood education, or management of a childcare business
Have at least 12 months of childcare experience

Ratio requirements

At least two adults shall be present in the child care group home when six to ten children are cared for in the home
For purposes of certification of the child care group home, the provider’s own children shall not be counted
The total number of children present in a child care group home at any given time for whom compensation is received shall not exceed ten (10)
The total number of children present in a child care group home at any given time, including children related to the provider, shall not exceed fifteen (15)

All childcare centers and childcare group home providers must maintain detailed records. A tool like brightwheel’s center management feature can simplify your record keeping process to help your facility remain in compliance with licensing requirements.

Childcare license application in Arizona

In Arizona, childcare centers require licensing, and child care group homes require certification. Use the following steps to get licensing or certification for an Arizona childcare facility.

Childcare centers

All applicants for childcare center licensure must be at least 21 years old. If you are applying as an individual, you must be a U.S. citizen or legal resident and resident of Arizona. If you’re applying as part of a corporation, association, or limited liability company, your business has to be a domestic entity or foreign entity that is qualified to do business in Arizona. If you’re applying as a partnership, you must have at least one person who is a U.S. citizen or legal resident and resident of Arizona.

Step 1: Submit an application

To apply for a childcare center license, you need to access the ADHS Child Care Facility Licensing Portal and complete an online application form that includes:

Your name and date of birth
Your facility’s name, mailing address, and telephone number
The requested service classifications
Your agreement to allow the department to submit supplemental information requests
A statement that you have read and will comply with the rules and regulations set by the department
A statement verifying that the information in the application is accurate and complete
Your signature and the date the application was signed

Step 2: Submit your supplemental information

In addition to your application, some of the additional information you are required to submit is:

A copy of your U.S. passport, birth certificate, naturalization documents, or documentation of legal resident status
A copy of your valid fingerprint clearance card
A copy of your background check document
A department-issued certificate showing you completed at least four hours of department-provided training
A site plan of the facility drawn to scale
A floor plan of each building to be used for childcare

Step 3: Pay your application fees

The fees associated with your application depend on the licensed capacity you are applying for:

Licensed capacity of five to 10 children: $330
Licensed capacity of 11 to 59 children: $1,330
Licensed capacity of 60 or more children: $2,575

Access the ADHS Child Care Facility Licensing Portal to pay your application fee.

Step 4: Send the department your on-site licensing inspection date

Your application will not be considered complete until you provide a date to the department, with the application packet or written notice, when your facility is ready for an on-site licensing inspection.

Step 5: Wait for an administrative notice from the department

Your application will go through an administrative completeness review for 30 days. During this time, you will be assigned a licensing surveyor who will monitor your compliance with department rules and regulations.

They will send notice of administrative completeness or deficiencies. If the department doesn’t receive documentation to satisfy the items listed in a notice of deficiencies within 180 calendar days, they will withdraw your application.

Step 6: Review the new owner orientation

To apply for a childcare license, you need to take the new owner orientation provided by the department. After you review the information, contact your licensing surveyor for a link to the orientation evaluation. Passing is necessary for your application to be complete.

Step 7: Pass your inspection

After you receive notice of administrative completeness, the department will conduct one or more visits to the facility.

Step 8: Receive your license

Once the department determines that you and your facility comply with its rules and regulations, they will issue your childcare license.

Childcare group homes

All applicants for childcare group home certification must be at least 21 years old and reside in the facility.

Follow these steps to apply for a certificate for your childcare group home.

Step 1: Submit an application

To apply for a childcare group home certificate, you need to access the ADHS Child Care Facility Licensing Portal and complete an online application form that includes:

Your name and date of birth
Your facility’s name, mailing address, and telephone number
The requested service classifications
Your agreement to allow the department to submit supplemental information requests
A statement that you have read and will comply with the rules and regulations set by the department
A statement verifying that the information in the application is accurate and complete
Your signature and the date the application was signed

Step 2: Submit your supplemental information

In addition to your application, you are required to submit the following additional information:

A copy of your U.S. passport, birth certificate, naturalization documents, or documentation of legal resident status
A copy of your high school diploma or its equivalent, associate degree, or bachelor's degree
A copy of your Arizona driver’s license or ID
A copy of your valid fingerprint clearance card
A copy of your background check document
A department-issued certificate showing you completed at least four hours of department-provided training
An agricultural land notification form if there’s vacant agricultural land within a quarter mile of the facility
A site plan of the facility drawn to scale
A floor plan of your facility

Step 3: Pay your application fee

There is a $330 certification fee for child care group homes. Access the ADHS Child Care Facility Licensing Portal to pay your application fee.

Step 4: Send the department your on-site licensing inspection date

Step 5: Wait for an administrative notice from the department

The administrative completeness review time frame for applications is 30 days. During this time, you will be assigned a licensing surveyor who will monitor your compliance with department rules and regulations.

They will send notice of administrative completeness or deficiencies. If the department doesn’t receive the documentation to satisfy the items listed in a notice of deficiencies within 180 calendar days, they will consider your application withdrawn.

Step 6: Review the new owner orientation

Step 7: Pass your inspection

After you receive notice of administrative completeness, the department will conduct one or more visits to the facility.

Step 8: Receive your certificate

Once the department determines that you and your facility comply with its rules and regulations, they will issue your certificate.

After you’ve received your license or certificate, create a marketing plan based on the needs and goals listed in your facility’s business plan. A detailed marketing plan will help you determine the best ways to advertise your business and inform families that your childcare services are available to the community.

How to stay compliant with a daycare license in Arizona

Follow these steps to remain compliant with a daycare license in Arizona.

Follow all the rules and regulations

Arizona’s childcare licensing rules and regulations include guidelines for compliance that all facilities must fulfill annually. For example, an annual gas inspection is required if your facility has gas pipes running from a meter to a location in the same building as the licensed facility. However, an annual gas inspection isn’t required if your gas lines are capped.

The BCCL, your local health department, the Arizona Department of Child Safety, and the local fire department or state fire marshal can visit childcare facilities during hours of operation for inspections without prior notice. The department can visit your facility as often as necessary, and they will make at least one unannounced annual visit to ensure continued compliance with licensing and certification laws.

Compliance requires complete cooperation with department inspections. This includes access to your facility documents, records, and reports and access to all areas of the facility that affect the health, safety, or welfare of the children in your care. The department may deny, revoke, or suspend a license or certificate if the licensee or certificate holder provides false or misleading information, refuses to carry out a plan acceptable to the department to eliminate any deficiencies, or fails to comply with any provision in the childcare licensing laws.

To determine whether they will deny, revoke, or suspend a license or certificate, the BCCL will consider the health and safety threat to the children in the facility based on repeated violations, a pattern of non-compliance, the type of violation, the severity of each violation, and the number of violations.

Pay your annual fee

The department requires you to submit a form that contains the licensee’s or certificate holder’s name, the facility name and license/certificate number, and whether the licensee or certificate holder intends to submit the applicable fee with the form or according to the department’s payment plan.

For childcare centers, the licensure fee is based on the licensed capacity of your facility.

Annual licensing fees must be submitted less than 60 calendar days before the anniversary date on the license or certificate. The department offers payment plans that allow you to submit half of the applicable fee with the annual form and pay the remainder no later than 120 days after the anniversary date on the license or certificate.

Funding resources for your childcare business

As you go through the licensing process, you may come across grants or other funding resources that can help fund your childcare business. A grant is an often overlooked financial resource given by a government agency or private foundation that does not need to be repaid. This makes them an attractive funding option if you are looking to expand or enhance the quality and accessibility of your program.

Grants provide funding that can be used towards a variety of purposes, such as improving facilities, purchasing new equipment or materials, or offering professional development opportunities for staff. The available resources vary by state so it is crucial to research and understand the grants for childcare providers in Arizona to make informed decisions about which ones to apply for.

Conclusion

The Arizona Department of Health Services and BCCL have created a strong system of rules and regulations to ensure children's health, safety, and welfare in Arizona childcare facilities. The licensing laws require childcare center licensees and childcare group home certificate holders to manage facility operations, programming, staff, and safety to provide the best developmental and educational environment. Be sure to use this guide and the resources provided by the BCCL to increase your chances of successfully starting a daycare.

How to Start a Daycare in Arizona

Do I need a childcare license in Arizona?