Apparently, in Michigan, babysitting is considered daycare, and therefore requires state licensing and regulation.
After posting about illegal babysitting (childminding) in England, six people sent this recent article about a Michigan woman, Lisa Snyder, who incurred the wrath of the Department of Human Services for watching over her neighbor's children for the short time period after they leave for work and before the bus comes. The crime? She didn't have a license. The reaction from her state representative? He is "drafting legislation that would exempt people who agree to care for non-dependent children from daycare rules as long as they're not engaged in a business." So he's 'easing' the rules for the crime of babysitting.
Now watch this video where Matt Lauer looks into this on the Today show. He acts perplexed that such a thing can happen. While playing devil's advocate, he inquires about the legal jeopardy of the babysitter's home not having such regulatory requirements as "exit signs" (!!), etc. Also, note the reaction from the parents whose children are being cared for by Mrs. Snyder. They are aghast to find out that the state that they approve, elect, and consent to has turned into this gigantic, totalitarian busybody that threatens a woman with jail time for watching her neighbor's kids.
Unsurprisingly, it was some slime snitch in the neighborhood who called the state to tattle on this horrifying, unauthorized babysitting.