Monterey County, CA Home Business: Home Daycare (2026)

California's Keeping Kids Close to Home Act (SB 234, effective January 1, 2020) governs family daycare homes statewide and preempts local zoning. Health & Safety Code 1597.45 provides that the use of a home as a small or large family daycare home is a residential use of property and a use by right for purposes of all local ordinances, including zoning. Health & Safety Code 1597.40 establishes that state law, the state building code and fire code preempt local laws governing the use and occupancy of family daycare homes, and local agencies shall not directly or indirectly prohibit or restrict their use. Section 1597.45 also bars a local jurisdiction from imposing a business license, fee, or tax for the privilege of operating a small or large family daycare home, and standards such as parking, noise, spacing and signs may not be applied to a family daycare home unless they apply to all residences in the same zoning district. A small family daycare home serves up to 8 children and a large family daycare home serves 7 to 14 children, inclusive. As a result, unincorporated Monterey County cannot require a discretionary planning permit, conditional use permit, variance or business license for a family daycare home. The operator must instead obtain a license from the California Department of Social Services, Community Care Licensing Division.