(1) The Department of Human Services shall not expend any state or federal funds for childcare services to any childcare facility unless that facility is licensed or approved by the Division of Child Care and Early Childhood Education of the Department of Human Services, or registered with the department except where care is provided by a relative in a setting otherwise exempt from licensure.
(2) The provisions of this section shall not apply until January 1, 1992, to any facility which is currently exempt and which is providing childcare services to participants in the Project Success Program.
(3) Before that time, such facilities may apply for licensure or become registered with the department.
(4) After January 1, 1992, the facility must either be licensed or registered to qualify for state or federal funds.