PHOENIX — State health chief Will Humble agreed Monday to partially curtail the sharp hike in licensing fees he had proposed for child care facilities — but only for those that agree to do some things he wants.

The plan by the interim director for the Arizona Department of Health Services still would mean all care centers and homes will pay a lot more for their three-year licenses beginning in January. But Humble is offering 50 percent discounts for those facilities that adopt a 10-point plan he said will promote healthier children.

Bruce Liggett, executive director of the Arizona Child Care Association, said the bottom line for parents is that while facilities still will have to raise their costs, the increases won't be as much as they would have been without the discount program.

Liggett said he cannot predict exactly how much costs will go up.

Humble's maneuver is not a bribe: He said it's the only way he can legally use cash earmarked for other purposes to underwrite the cost of inspecting the approximately 2,700 child care facilities in the state every three years.

About half of the money is coming from federal grants, which are supposed to be used to cut childhood obesity.

To get the discounts, care centers would have to have at least an hour of structured physical activity each day, serve only low-fat and fat-free milk to children age 2 and older and avoid more than 60 minutes of sedentary activity at any time except for periods of sleep.

And care centers could not rely on "screen time" to keep children busy. Youngsters could spend no more than an hour a day in front of a television, computer or video game.

The other half of the approximately $1.2 million Humble is using to underwrite his costs for the first six months of 2010 is being taken from the proceeds of a 60-cent-a-pack hike in cigarette taxes approved by voters in 2002 to fund programs to help people stop smoking.

To qualify, child care centers would need to be entirely smokefree on a 24-hour basis, whether there are children present or not. And staffers could not just step outside to light up but would have to go off the property entirely.

And care centers would have to send home information with children at least four times a year informing adults of the dangers of secondhand smoke and telling their parents how they can get state help if they want to quit.

Even for facilities that agree to the "Empower Pack" program, fees still are going up sharply.

All child care centers now pay $150 for a three-year license, a fee Humble said does not begin to cover the actual cost of inspections and regulations.

In a move to save money, state lawmakers earlier this year directed Humble to make the program self sufficient. To comply, he proposed a tiered structure starting at $351 for the smallest centers those with no more than 10 children to more than $13,000 for those operations with at least 150 children.

That provoked squeals of protest of owners and operators. But Humble said the legislative decision to halt the flow of tax dollars into the licensing program left him no choice.

Under the new plan, Humble narrowed the fee categories to just three.

The new fees will be $1,000 for facilities of 10 or less, $4,000 for those up to 59 children and $7,800 for larger ones. But those are before the 50 percent discount for those who comply with the 10point plan.

"We found what is a pretty good solution to a very difficult problem," he said.

Humble said he expects most care centers to go after that discount.

"It's real easy stuff," he said.

"These are things that many centers are already doing," he said. "Many families already do these things."

Jeanette Shea, a deputy health director, said the move is not diverting federal funds from other, more worthy programs.

"These funds would be going for prevention and for these very same messages," she said. The only difference, Shea said, is the dollars are being focused on a specific population: families with children in child care centers.

"It's a great fit," Shea said.

Liggett said he expects "a vast majority" of care centers to adopt their programs to qualify themselves for the discounts.

But that may not happen immediately.

While the new fees kick in on Jan. 1, child care centers will pay them only when their three-year licenses expire.

A facility which just got relicensed at the current $150 rate would not be subject to the higher fees until three years from now. That means they do not have to have the 10point program in place until then.

Humble said only 500 to 600 care centers come up for licensing between January and July. But he said others may want to jump into the program now.

"Families are going to recognize that this Empower Pack program is good for their kids," Humble said. He said families will be asking if facilities are complying.

Requirements for child care facilities to get 50 percent discount in state licensing fees:

Encourage physical activity with at least 60 minutes per day of structured activity

Limit "screen time" including TV, computers and video games to less than an hour a day

Avoid more than 60 minutes of sedentary activity at any one time except for sleep periods

Offer water at least four times during the day

Serve 1 percent or fat-free milk to all children age 2 and older

Serve only 100 percent fruit juice, with limit of 4 ounces per day

Serve meals "family style" so each child can take only what he or she wants, with staff eating same food

If eligible, participate in federal nutrition subsidy program

Make facilities totally smoke-free

Provide all families with education and referrals about stop-smoking programs and dangers of secondhand smoke at least four times a year.

Source: Arizona Department of Health Services