The purpose of licensing is to provide protection in circumstances in which people are vulnerable and to mandate that positive services will be provided. The common denominator of human vulnerability in licensed children's services is the fact that the children are in the care of someone other than their families. Licensed services include family day care homes, day care centers, child placing agencies, family foster homes, and child care institutions. Licensing mandates a basic level of quality because it is the floor below which it is not legal to operate. Licensing is selective in that it usually follows children who are placed by public agencies or children whose care is paid for by public agencies. Licensing also increases following tragedies and scandals that receive public attention. Strong arguments exist for administering licensing at the state level, but state level licensing means that there is variation in standards from state to state. Licensing for child placing agencies has been one of the least effective areas. In all kinds of licensing, multiple forms of protection are needed, i.e., credentialing of individuals, program accreditation, and parent involvement (especially in day care). Licensing, like any form of regulation, may interfere with the rights of persons who wish to carry out a certain enterprise, but society has a legitimate interest in protecting the welfare and rights of children. (CB)