Human Resources, Department of - As enacted, excludes a person or entity that operates a family child care home and obtains a United States department of defense certificate to operate from being subject to licensure as long as such family child care home provides child care services only to an eligible patron. - Amends TCA Title 71, Chapter 3.

HB 1663 exempts family child care homes operating under a U.S. Department of Defense certificate (per 32 CFR 79.6) from Tennessee's licensing requirements, provided they serve only military-connected families ("eligible patrons" as defined in federal regulations). The bill amends Tennessee Code Annotated Title 71, Chapter 3, to clarify that such providers do not need a state license or exemption to operate legally. This directly affects military-affiliated child care providers who already comply with federal DoD standards. The policy change takes effect July 1, 2026.