To add in my original question, The provider has 2 kids of her own. I would never consider reporting a provider unless I have all of my facts straight.
Thank you so much for your passion in this topic, it is alarming to us all when this happens, both as a parent, and as a fellow daycare provider following the rules everyday.
It is astonishing that parents do not know these laws and are 'okay' with seeing all the kids in the home with one parent.
I will advise what the outcome is of all this.