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Montana day-care center license: rules, staffing and steps under ARM 37.96

In Montana, any out-of-home program caring for 16 or more children on a regular basis needs a day-care center license from DPHHS Child Care Licensing. The state charges no fee for the license. Before it is issued, you need a fire marshal certificate, a local health certificate, liability and fire insurance, and a pre-inspection. Since May 1, 2025 the rules have been in ARM chapter 37.96, not the older 37.95.

Written by Editorial team Checked against 23 official sources Last reviewed How we review
Contents14 sections

Key takeaways

  • A license is required once you care for 16 or more children on a regular basis outside a private home. Programs with 9 to 15 children are registered as group homes, not licensed as centers.
  • Montana law bars DPHHS from charging a license fee. Your local health authority may charge up to $25 for its inspection.
  • DPHHS will not issue the license until you have a State Fire Marshal certificate of approval, a local public health certificate, and proof of liability and fire insurance. None of the three can be waived.
  • The current rules are ARM 37.96, in effect since May 1, 2025. The DPHHS center rulebook PDF marked Rev. 12/21 cites the replaced 37.95 rules.
  • After a passed pre-inspection you get a 90-day provisional license and can open. DPHHS then observes you with children in care before issuing a one-year regular license.
  • Directors and teaching staff qualify through the Practitioner Registry, not a fixed degree table. Each staff member who works more than 500 hours a year needs 16 hours of annual training.

Quick facts

License threshold16 or more children, out-of-home, regular basis
AgencyDPHHS Early Childhood and Family Support Division, Child Care Licensing, (406) 444-2012
State license feeNone (MCA 52-2-721); local health inspection up to $25
RulesARM 37.96, effective May 1, 2025
Space35 sq ft indoor and 75 sq ft outdoor per child
Decision timeDPHHS decides within 30 days of receiving the application
License term90-day provisional, then 1 year
RenewalFile at least 60 days before expiration

Figures as published on 2026-10-12 in MCA Title 52, chapter 2, part 7 and ARM chapter 37.96.

When Montana requires a center license

Montana law defines a day-care center as “an out-of-home place in which day care is provided to 16 or more children on a regular or irregular basis” ⁠1. “Regular basis” means caring for children of separate families for daily periods under 24 hours within 3 or more consecutive weeks ⁠1. Running a center on a regular basis without a DPHHS license is prohibited ⁠2.

The count includes children of staff or owners who are in the child care space during care hours. An owner’s children who attend school full time are not counted ⁠7. That matters at the 15/16 line. A program with 9 to 15 children is a group day-care home, and family homes take 3 to 8. Both are registered, not licensed ⁠7. See Montana family and group day-care home registration if you will stay at 15 or fewer.

A few edge cases have their own rules:

  • Drop-in and irregular care. A center that cares for children only on an irregular, on-demand basis may choose to be licensed but is not required to be ⁠2⁠7.
  • School-age programs. A program that serves only school-age children outside school hours may also choose licensure. It runs at 20:1 with groups of up to 40 ⁠7.
  • Shared buildings. If several programs in one commercial building together bring 16 or more children into the building on a regular basis, each must meet the fire, safety and sanitation rules for licensed facilities. Each facility in a retail or commercial building gets its own license ⁠7.
  • Military programs. DPHHS recognizes child care facilities licensed by a branch of the armed forces, including the Coast Guard, and does not require a state license for them ⁠2⁠7.
  • Tribal applicants. American Indians living on a reservation apply under the separate procedure in MCA 52-2-722 ⁠7.

A license covers one licensee at one location. It cannot be sold, assigned or transferred, so a buyer of an existing center applies for a new license. A second site needs a second license ⁠7.

The 2025 rewrite: ignore the 37.95 rulebook

On May 1, 2025, DPHHS adopted a new chapter, ARM 37.96 “Licensure of Day Care Facilities” (MAR notice 37-1044) ⁠7. The DPHHS rules page now points to 37.96 ⁠20. As of October 12, 2026, every rule in the chapter on the Administrative Rules of Montana site shows a single version effective May 1, 2025 ⁠7.

DPHHS still hosts a center rulebook PDF marked Rev. 12/21. It cites the old 37.95 rules (37.95.205 to 37.95.227) ⁠23. Use the 37.96 rule text, not that booklet. Some DPHHS handouts also predate the change. The 2022 new-facility flowchart says to renew 30 days ahead, but rule 37.96.112 now requires 60 days ⁠16⁠7.

The 2025 Legislature considered Senate Bill 285, “Generally revise child care administrative rules.” Its second reading failed and it was indefinitely postponed on March 5, 2025, and it died in process ⁠22. It did not change the 37.96 rules.

No state fee, but three certificates come first

MCA 52-2-721 says DPHHS “may not charge a fee to issue a license or registration certificate” ⁠2. Your costs come from the local sign-offs and from the building itself.

Before DPHHS can issue a center license, the statute requires:

  1. Fire marshal certificate

    You need a certificate of approval from the state fire prevention and investigation section of the Department of Justice showing you meet its fire safety rules ⁠5. Under ARM 37.96.409, licensed facilities must meet the International Fire Code. DPHHS tells new center operators to consult the local jurisdiction or state fire marshal before selecting a facility ⁠9.

  2. Local public health certificate

    Your local public health authority either trains you and your staff or inspects the facility, then issues a certificate ⁠6. It may charge up to $25 for the inspection, or no more than the documented cost of the training (as published on 2026-10-12) ⁠6.

  3. Liability and fire insurance

    You need current public liability insurance and fire insurance ⁠3. On the DPHHS Insurance Verification Form, your insurance agent fills in the policy details. If you rent, the agent records the building owner’s fire insurance ⁠17.

DPHHS cannot waive any of these three, even for a provisional license ⁠4. All three come back every year. You must give Child Care Licensing an annual fire marshal report and an annual local health training or inspection certificate ⁠9⁠10. A center inside a school or other public building that already gets annual fire and health inspections can submit copies of those reports instead ⁠9⁠10.

Sizing the building

Your licensed capacity comes from measured space, available staff and the application itself ⁠7. DPHHS’s Floor Plan / Square Footage Report sets the number of children from your measurements ⁠18.

Physical requirements for licensed centers under ARM 37.96 (effective May 1, 2025)
Item Requirement
Indoor space 35 sq ft of usable floor space per child in a room at one time. Kitchen prep areas, bathrooms, offices, staff rooms, hallways, closets, laundry, furnace rooms and storage don’t count ⁠9
Outdoor space 75 sq ft of usable space per child using the play area at one time ⁠9
Fence At least 4 ft high, with no holes or gaps over 4 in ⁠9
Surfacing CPSC shock-absorbing surface, or at least 6 in of sand, fine gravel or woodchips, under equipment ⁠9
Exits Two remote means of egress on every level used for care, and two in every nap room. One must be a door at least 32 in wide and 80 in tall. The other may be a window with a clear opening at least 20 in wide or 24 in high, 5.7 sq ft in area, and a sill no higher than 44 in ⁠9
Toilets and sinks 1 toilet and 1 sink per 15 users, counting children, staff and volunteers. Over 20 males, urinals may replace half the toilets ⁠10
Hand-sink water 100°F to 120°F ⁠10
Infant areas Infant play space separate from play space for children over 2, and sleeping areas separate from play areas ⁠9

For example, 700 sq ft of qualifying room space supports 20 children at once. The play yard must then provide 1,500 sq ft for all 20 to be outside together. If you are short on space, you can request a waiver with an alternate plan. Examples are sheltered outdoor space for indoor area, or a gym or nearby school playground or park for outdoor area ⁠9.

Rural sites need more paperwork. A facility on a non-public water system must test the water before opening, then each January and June for coliform bacteria, and send the lab results to DPHHS. Licensed facilities must also test before operating to show the water does not exceed the maximum contamination levels of 10 mg/L nitrate and 1 mg/L nitrite, and keep the results on the premises for 24 months. A private septic system needs documentation that it meets your local board of health’s rules ⁠10.

In the kitchen, a licensed center using a dishwasher needs a two-compartment sink as backup. It may not use home-canned food ⁠10. A domestic-style dishwasher must be run on the heat-dry option ⁠10.

Ratios and group sizes

Center child-to-staff ratios and maximum group sizes, ARM 37.96.106 (effective May 1, 2025)
Age Ratio Maximum group
Birth to 11 months 4:1 12
12 to 23 months 6:1 12
2 years 8:1 16
3 to 5 years 10:1 20
6 years and older 20:1 40

In a mixed-age group, the ratio and group size for the youngest child apply. Only the director, site directors, lead teachers, teachers, substitutes and trainees count toward ratio, so cooks and support staff do not ⁠7. Group-size limits are relaxed at meals, outdoor play, rest and large assemblies ⁠7.

At nap time, a center may double the ratio for children 2 and older if four conditions are met. At least half the children must be asleep. Another staff member must be on site and immediately available. Group size and room capacity must not be exceeded. The person supervising the nappers cannot be a trainee ⁠7.

Who can run the center and teach

The 2025 rules replaced fixed credential tables with roles tied to the state Practitioner Registry. The registry is the statewide system that tracks each worker’s verified education and training ⁠12.

  • Director (required). Must be at least 18, pass background checks, be current on the Practitioner Registry, hold CPR and pediatric first aid, and finish orientation. The director also needs “a combination of education, training, other licensing, or experience in working with children” for the facility type, approved through the registry or by the department. If the director will be away more than 30 continuous days, you must name a qualified designee to DPHHS in writing ⁠12.
  • Site director (optional). For operators with sites in different places. Each site director serves one location and is on site during operating hours. One person may be both director and site director ⁠12.
  • Lead teacher (optional). At least 18 and plans and delivers activities ⁠12.
  • Teacher. At least 16 and works under a lead teacher, site director or director ⁠12.
  • Trainee. At least 16. A trainee cannot be left alone with children until the 30-day orientation is done, and cannot stay in the role more than 90 days ⁠12.

Directors, site directors, lead teachers, teachers and substitutes each need the registry listing, CPR and first aid, and orientation. Trainees need a background check and onsite oversight, and everyone counted in ratio completes orientation ⁠12.

Training on a clock

Orientation is split in two ⁠12:

  • Within 30 days of hire, before unsupervised care. Infant, child and adult CPR, infant choking response, and pediatric first aid, with CPR done hands-on. If you serve infants, add SIDS prevention and safe sleep. If you serve infants or toddlers, add shaken baby syndrome and abusive head trauma prevention.
  • Within 90 days of hire. Infectious disease control and immunization, child development, medication administration, food and allergy emergencies, building safety, emergency preparedness, hazardous materials, bodily-fluid disposal, transportation, and recognizing and reporting child abuse and neglect.

After that, staff and owners who work more than 500 hours a year at a center need 16 hours of training each year. It must be approved through the Practitioner Registry and tied to the Montana Early Care and Education Knowledge Base. Orientation hours count toward it ⁠12. Everyone also takes a department-approved health and safety refresher at least every three years, which also counts ⁠12.

Background checks for owners and staff

Owners, directors and all staff in ratio need satisfactory results before DPHHS approves the license or the staff member. The same applies to support staff and volunteers with unsupervised contact, and to any adult who lives at or regularly stays at the facility ⁠13. The checks must be done before work starts and then every year. National background checks are the exception and are repeated every five years ⁠13. The checks are ⁠13:

  • a Montana DOJ and FBI fingerprint check
  • the NCIC national sex offender registry
  • the Montana Sex Offender Registry
  • child protective services checks for Montana and every state lived in during the past five years
  • name-based criminal record checks for the same states

Spark Montana locations offer free FBI fingerprinting for child care providers. If you use inked cards, send two copies to Child Care Licensing. DPHHS says payment may not be required unless the check is interstate, and to ask Child Care Licensing if unsure ⁠14. Submit each employee’s new-hire paperwork first, because CCL cannot accept fingerprints without it ⁠16. Results showing a serious violent crime or a crime against children require DPHHS to deny, suspend, restrict, revoke or downgrade the license ⁠13.

Policies DPHHS expects on file

ARM 37.96.303 requires these written policies before you serve children ⁠8:

  • first aid, consistent with Caring for Our Children. It covers medical emergencies, food and allergy reactions, a CPR plan, incident reports, how to contact parents, and medication administration with parent authorization.
  • an emergency disaster plan for each building. It covers evacuation to at least one off-site gathering point, children’s mobility and health needs, staff duties, reunification, shelter-in-place and lockdown, and continuity of operations.
  • safe sleep, if you serve children under 2. Every staff member signs it.
  • shaken baby syndrome and abusive head trauma
  • expulsion and suspension
  • transportation, and water safety, if they apply

Review and update every policy annually ⁠8. Before enrolling a child, give families your daily schedule, admission rules, hours, meals, fees, sick-child rules, guidance policy and expulsion policy. Post your license and the state and local Early Childhood and Family Support Division phone numbers where parents can see them ⁠8.

Applying, step by step

  1. Talk to the fire marshal before you sign a lease

    The IFC review drives whether a building can work at all ⁠9. Ask your local health authority about its training or inspection at the same time ⁠6.

  2. Set up the Provider Portal account

    New and renewal center applications go through DPHHS’s online MAQCS system, the Child Care Provider Portal ⁠14⁠15. You can contact the Child Care Licensing team or your local Spark Learning Lab for help before you apply ⁠14.

  3. Upload the center forms

    These are the activity schedule or written plan, emergency disaster plan, fire safety record and evacuation plan, floor plan and square footage report, insurance verification form, menu, and center staff list ⁠15. Add any waiver requests to the application, with the reason, the proposed alternative and how it meets the rule’s intent ⁠7.

  4. Clear background checks for everyone

    in the roles listed above ⁠13⁠16.

  5. Get the fire and health certificates

    A center’s pre-inspection includes a building, fire and sanitation review ⁠16. The fire marshal and local health certificates are statutory conditions of the license ⁠5⁠6.

  6. Pass the DPHHS pre-inspection

    You cannot care for children before it ⁠7.

  7. Open on the 90-day provisional license

    DPHHS observes the center with children present before removing provisional status ⁠7.

  8. Receive the regular license

    , issued for one year after the observation and any required corrections ⁠7.

DPHHS says it will decide whether to issue a license within 30 days of receiving the application. An application still missing materials 90 days after receipt must be denied ⁠7.

Keeping the license

Renew at least 60 days before expiration. If your complete renewal is on time, the old license stays valid until DPHHS decides ⁠7. The statute allows licenses of up to three years for providers with no deficiency notices ⁠2. The 2025 rule says regular licenses are issued for one year ⁠7.

DPHHS inspects every licensed center at least once a year and may come unannounced during business hours. Those visits are in addition to the local health and fire inspections ⁠7. Notify DPHHS within 10 days of changes that affect the license, such as staff, closures or ownership ⁠8. Report to Child Care Licensing within 24 hours if a child is lost or missing, if you suspect abuse, if an injury needs medical care, if there is a fire that involves the fire department, and for the other listed events ⁠8. If DPHHS puts you on a probationary license, you must notify enrolled families within five working days, in a department-approved format ⁠21.

Children must meet the state immunization schedule by age to attend ⁠11. By statute, children under 5 need the Hib vaccine unless an exemption is claimed ⁠6.

Getting paid through Best Beginnings

Montana’s child care subsidy is the Best Beginnings Child Care Scholarship. It covers families under 185% of the federal poverty level who meet work or school requirements. Families pay a sliding-scale copayment directly to you ⁠19. DPHHS says licensed providers can serve scholarship children and receive monthly payments at the start of each month. To enroll, create a State Okta account for the Provider Portal, complete the Rights and Responsibilities Agreement, enroll a child on the scholarship and set up invoicing ⁠19.

If you are weighing other care businesses in Montana, see the guides to the assisted living facility license, the adult day-care center license and the adult foster care home license. Other states’ rules for skilled care are compared under home health agency licenses.

Sources

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Montana and neighboring states

Compare all 51
Child care center licensing in Montana and neighboring states: license, size threshold and state fee
StateLicenseWho needs itState fee
Montana (this guide) Day-Care Center license An out-of-home place caring for 16 or more children None (MCA 52-2-721); local health inspection up to $25
Idaho Basic Daycare License (daycare center or group daycare facility) 7 or more children for pay (group 7-12; center 13+) $100 (7-12), $250 (13-25), $325 (26+)
Wyoming Child care center license Non-residential building licensed for 16 or more children $25 application, $25 annual renewal (Chapter 2)
South Dakota Day Care Center license (also Group Family Day Care Home license for 13-20 children) 21+ children; 13-20 children is a group family day care home license See guide
North Dakota Child care center license (group child care license for 8-30 children) 8-30 children: group child care license; more than 30: center license $40 for one year or $75 for two years

Shortened from each state's guide and our 51-state table, as of each guide's last review. Fees are the state's own; local permits and background checks cost extra.