As I read it, the Governor is already putting into motion a change in the state law that forbids this form of "daycare" - because it's not really daycare, it's "before-the-bus" care. And really, how much care is she providing? She's only watching the kids so they don't get abducted, start a fire, attack each other with sharp objects, run with scissors, etc.
State laws are written years before to prevent unscrupulous individuals or groups from taking advantage of situations. There will be societal and sociological changes in due course which can and do affect the interpretation of these laws. It's one reason why the Founders provided for Amendments to the Constitution.
I'm OK with this.
EDIT: .. and f**k that neighbor who blew the whistle, and the horse they rode in on.