Providers seek clearer license-transfer rules to avoid losing star ratings after moves or ownership changes

Multiple providers raised concerns that changing a center’s address or owner can reset its star rating and affect families’ tax credits and center funding. Rochelle Wilcox and other participants said a move or an ownership change can disrupt a center’s performance profile even when staff and services remain largely the same.

“If you have a childcare center that is changing locations...there should be no interruption in star rating,” one provider said, urging a transfer approach that preserves a center’s history when the operation simply relocates. Panelists discussed safeguards to ensure that any transfer still requires verification that the new location or new owner meets licensing standards; participants emphasized that transfers should not bypass background checks, safety requirements or other licensing standards.

Department staff acknowledged the issue and said they will review proposed language to allow transfers or an appropriate change-of-location process, while preserving licensing checks. The work group agreed the department will bring refined wording and options for how transfers should be handled back to a future meeting.