OHIO LEGISLATIVE SERVICE COMMISSION
Office of Research Legislative Budget
www.lsc.ohio.gov and Drafting Office
S.B. 273 Bill Analysis
135th General Assembly
Click here for S.B. 273’s Fiscal Note
Version: As Introduced
Primary Sponsor: Sen. Reynolds
Effective date:
Elizabeth Molnar, Attorney
SUMMARY
 Creates the Child Care Cred Program in the Department of Children and Youth, a
voluntary program that allows the costs of child care to be shared equally by eligible
employees, participating employers, and the Department.
 Authorizes a participating employer to select each employee that the employer agrees
to contribute to the employee’s child care costs.
 Requires each participating employee to choose a child care provider for the employee’s
child, but specifies that the chosen provider must hold a license issued by the state or
be certified by a county department of job and family services.
 Requires the Department to perform all administrative activities for the program, but
also authorizes it to delegate that performance to one or more third-party entities.
 Appropriates $10.0 million in FY 2025 from the GRF for the Child Care Cred Program.
 Allows the Director of Children and Youth, if there are insufficient funds for the Child
Care Cred Program in FY 2025, to certify to the Director of Budget and Management the
amount necessary to fund the program. Appropriates the amount certified.
DETAILED ANALYSIS
Child Care Cred Program
S.B. 273 creates the Child Care Cred Program in the Department of Children and Youth. 1
Under the program, the costs of child care may be shared by eligible employees, participating
employers, and, subject to available funds, the Department. The bill specifies that the program
1 R.C. 5180.41.
June 7, 2024
Office of Research and Drafting LSC Legislative Budget Office
has three goals – enabling employers to attract and retain talent; assisting eligible employees
with child care costs; and sustaining the businesses of child care providers.
Voluntary participation
The bill states that participation in the program is voluntary, specifying that neither an
employee nor the employee’s employer is required to participate.2
Cost sharing
An employee’s child care costs are to be shared equally by the employee, the
employee’s employer, and the Department, with each contributing a one-third share. An
employer, however, may agree to also contribute some or all of the employee’s share.3
Eligibility conditions
The bill establishes the following conditions on program participation.4 In the case of an
employee, the employee must reside in Ohio, be ineligible to participate in the state’s publicly
funded child care program (PFCC), and have been selected for participation by the employee’s
employer.5
In the case of an employer, the employer must employ individuals who are working in
Ohio and have selected one or more of those employees to participate in the program.
With respect to a child care provider, the provider must hold a child care center or
family child care home license issued by the state or be certified as an in-home aide by a county
department of job and family services.
Application
An employee seeking to participate in the program, together with the employee’s
employer, must submit an application to the Department in a manner prescribed by the
Department. The Department must review each application as soon as practicable after it is
received and must determine if the employee and employer are both eligible to participate.6
Note than an eligibility determination remains valid as long as the employee, employer, and
child care provider continue to satisfy the bill’s eligibility conditions.7
2 R.C. 5180.41(B).
3 R.C. 5180.41(B).
4 R.C. 5180.41(C).
5Until June 30, 2025, the maximum amount of family income for initial PFCC eligibility cannot exceed
145% of the federal poverty line (FPL), or 150% for special needs child care. For continued eligibility, the
maximum amount cannot exceed 300% FPL. See R.C. 5104.38 and Section 423.130 of H.B. 33 of the
135th General Assembly.
6 R.C. 5180.41(D).
7 R.C. 5180.41(F).
P a g e |2 S.B. 273
As Introduced
Office of Research and Drafting LSC Legislative Budget Office
Program administration
After the Department determines an employee and employer are both eligible and each
agrees to participate in the program, the bill requires or authorizes the following actions:
 The employee, with the Department’s assistance, must select a child care provider for
the employee’s child and must enroll the child with the selected provider. An employee
may opt to choose his or her existing provider so long as that provider is licensed or
certified as required by the bill.
 The Department may require the employee, employer, and child care provider to each
sign a memorandum of understanding with the Department.
 The Department is responsible for coordinating and performing all administrative
activities associated with the sharing of child care costs and making payments to child
care providers.8
Third-party delegation
The bill authorizes the Department to delegate the performance of some or all of its
administrative activities to one or more third-party entities. The Department is required to
specify the conditions that an entity must satisfy before it delegates to the entity.9
Fraud, misrepresentation, or deception
If the Department finds that an employee or employer has committed fraud,
misrepresentation, or deception in applying to participate, or in participating, in the program,
the employee or employer is permanently ineligible to participate, or to continue to participate,
in the program.10
Rulemaking
The bill authorizes the Department to adopt rules as necessary to implement its
provisions.11 If the Department adopts any rules for the program, it must do so in accordance
with Ohio’s Administrative Procedure Act.12 The bill also specifies that a regulatory restriction
contained in such a rule is not subject to the two-for-one rule, effective until July 1, 2025, or the
statutory cap, effective beginning July 1, 2025, on the number of regulatory restrictions that the
Department may have in place.13
8 R.C. 5180.41(E).
9 R.C. 5180.41(E)(3).
10 R.C. 5180.41(G).
11 R.C. 5180.41(H)(1).
12 R.C. Chapter 119, not in the bill.
13 R.C. 5180.41(H)(2). See also R.C. 121.95 to 121.953, not in the bill.
P a g e |3 S.B. 273
As Introduced
Office of Research and Drafting LSC Legislative Budget Office
Appropriation
The bill appropriates $10.0 million in FY 2025 in GRF line item 830414, Child Care Cred
Program, under the Department of Children and Youth.14 If the Director of Children and Youth
determines that there are insufficient funds in FY 2025, the Director may certify to the Director
of Budget and Management the necessary to administer the program. The bill appropriates the
amount certified to line item 830414, Child Care Cred.
HISTORY
Action Date
Introduced 05-21-24
ANSB0273IN-135/sb
14 Section 3.
P a g e |4 S.B. 273
As Introduced