(1) An individual or entity that provides child care and early learning services for a group of children, birth through twelve years of age, must be licensed by the department, pursuant to RCW 43.216.295, unless exempt under RCW 43.216.010(2) and WAC 110-300-0025.

(2) The department must not license a department employee or a member of the employee's household if the employee is involved directly, or in an administrative or supervisory capacity in the:

(a) Licensing process;

(b) Placement of a child in a licensed early learning program; or

(c) Authorization of payment for the child in care.

(3) A license is required when an individual provides child care and early learning services in his or her family home:

(a) Outside the child's home on a regular and ongoing basis for one or more children not related to the licensee; or

(b) For preschool age children for more than four hours a day.

As used in this chapter, "not related" means not any of the relatives listed in RCW 43.216.010 (2)(a).

(4) The department may license a center located in a private family residence when the portion of the residence accessible to children is:

(a) Used exclusively for children during the center's operating hours or when children are in care; or

(b) Separate from the family living quarters.