The Florida Senate
BILL ANALYSIS AND FISCAL IMPACT STATEMENT
(This document is based on the provisions contained in the legislation as of the latest date listed below.)
Prepared By: The Professional Staff of the Committee on Education Pre-K -12
BILL: SB 990
INTRODUCER: Senator Grall
SUBJECT: Child Care and Early Learning Providers
DATE: March 13, 2023
ANALYST STAFF DIRECTOR REFERENCE ACTION
1. Sabitsch Bouck ED Favorable
2. FT
3. AP
I. Summary:
SB 990 provides programmatic and financial supports for child care facilities and early learning
providers. Specifically the bill:
Modifies requirements for Voluntary Prekindergarten (VPK) classroom instructors, program
and child assessments, and implementation of the accountability measures for VPK
programs.
Establishes a program to deliver intensive reading interventions to VPK students with
substantial deficiencies in early literacy.
Modifies requirements for obtaining and maintaining the Gold Seal Quality Care designation.
Directs early learning coalitions to support the Teacher Education and Compensation Helps
(T.E.A.C.H.) Scholarship Program by assisting with co-pays for providers.
Modifies requirements related to licensing of child care facilities by the Department of
Children and Families.
Provides an exemption from licensing for child care facilities owned by certain corporations.
Modifies the existing exemptions from special assessments levied by municipalities to
include preschools.
Provides tax credits for:
o Contributions to child care facilities by corporations.
o Startup costs and operational costs for child care facilities established by corporations.
o Contributions to child care facilities on behalf of employees by corporations.
Clarifies cancelation and coverage from residential property insurance for large family child
care homes.
The bill takes effect on July 1, 2023.
II. Present Situation:
The present situation is presented in Section III under the Effect of Proposed Changes.
REVISED: BILL: SB 990 Page 2
III. Effect of Proposed Changes:
Voluntary Prekindergarten Program
Present Situation
The Voluntary Prekindergarten Education Program
The Voluntary Prekindergarten Education Program (VPK) prepares early learners for success in
kindergarten and beyond. VPK helps build a strong foundation for school using educational
material corresponding to various stages in a child's development. To be eligible, children must
live in Florida and be 4 years old on or before September 1 of the current school year.
1
Parents
whose children are born between February 2 and September 1 can postpone enrolling their 4-
year-old until the following year when their child is age 5. Private child care centers and schools,
public schools, and specialized instructional services providers offer VPK. Since the program
began in 2005-06, more than 2.6 million children have benefited from VPK. Data collected by
the Department of Education (DOE) show that children who participate in VPK are more ready
for kindergarten than children who do not participate in VPK.
2
For the 2021-22 VPK program year, 150,212 children participated in the school year VPK
program and 2,882 children participated in the summer VPK program. Program participation was
64.14% of the 4 year old population.
3
VPK Administration
The DOE is responsible for ensuring that administrative expenditures are kept to the minimum
necessary for efficient and effective administration of the VPK Program. Each early learning
coalition (coalition) may retain and expend no more than four percent of the funds paid by the
coalition to VPK providers. Funds retained by a coalition may be used only for administering the
VPK Program.
4
Total administrative expenditures for the 2021-22 VPK program for all
coalitions was $12,145,890 with only 12 of 30 coalitions spending the full four percent allowed.
5
The DOE is required to establish a single statewide information system that each coalition must
use for the purposes of managing the single point of entry, tracking children’s progress,
coordinating services among stakeholders, determining eligibility of children, tracking child
attendance, and streamlining administrative processes for providers and early learning
coalitions.
6
1
Section 1002.53(2), F.S.
2
Florida Division of Early Learning, About Voluntary Prekindergarten, https://www.floridaearlylearning.com/vpk/floridas-
vpk-program (last visited Mar. 11, 2023).
3
Office of Economic & Demographic Research, Early Learning Programs Estimating Conference Prekindergarten
Education Program, February 16, 2023, Conference Package, available at
http://edr.state.fl.us/Content/conferences/vpk/index.cfm.
4
Section 1002.71(7), F.S.
5
Florida Department of Education, Division of Early Learning, Annual Report 2021-22, available at.
https://www.floridaearlylearning.com/Content/Uploads/floridaearlylearning.com/images/DEL%20Annual%20Report%20202
1-2022%20FINAL.pdf.
6
Section 1002.82, F.S. BILL: SB 990 Page 3
Each coalition administers the VPK Program at the county or regional level for students enrolled
in a school-year VPK program delivered by a private prekindergarten provider.
7
Each coalition is
composed of at least 15 but not more than 30 members. The Governor appoints the chair and two
other members of each early learning coalition, who must each meet the qualifications of a
private sector business member. The coalition may appoint additional private sector business
members.
8
To be eligible to deliver the VPK program, a private prekindergarten provider must be a licensed
or licensed-exempt child care facility.
9
Exempt providers include certain nonpublic schools that
primarily serve children at least 5 years of age or older,
10
accredited faith-based child care
providers that are members of a larger organization with published health, safety, and sanitation
standards,
11
and certain accredited child development programs on military bases.
12
VPK Personnel
All providers, including licensed-exempt providers, must meet requirements for certification of
personnel and background screening.
13
For the school year VPK program, a VPK instructor must
successfully complete three emergent literacy training courses that include developmentally
appropriate and experiential learning practices for children and a student performance standards
training course approved by the DOE. The prekindergarten instructor must also complete an
emergent literacy training course at least once every five years after initially completing the three
emergent literacy training courses.
14
VPK personnel may also earn a literacy micro-credential and receive a $2,000 stipend.
15
The
literacy micro-credential provides instructional personnel with high-quality, evidence-based
strategies for developing emergent literacy skills.
16
Enrollment in the program began on
December 31, 2022.
17
Instructor requirements are more stringent for the summer VPK program. Each summer VPK
program provider must have, for each prekindergarten class, at least one prekindergarten
instructor who is a certified teacher or holds a bachelor’s or higher degree in early childhood
education, prekindergarten or primary education, preschool education, or family and consumer
7
Section 1002.55(1), F.S.
8
Section 1002.83(6), F.S.
9
Section 1002.55(3)(a), F.S.
10
Section 402.3025(2), F.S.
11
Section 402.316(1), F.S.
12
Section 1002.55(3)(a), F.S.
13
Section 1002.55(3)(b)3., F.S.
14
Section 1002.59, F.S.
15
University of Florida Lastinger Center, Emergent Literacy Micro-Credential,
https://lastinger.center.ufl.edu/work/literacy/flamingo-literacy/literacy-microcredentials/emergent-literacy-microcredential/
(last visited Mar. 10, 2023).
16
Section 1003.485(2)(h)1., F.S.
17
University of Florida Lastinger Center, Emergent Literacy Micro-Credential,
https://lastinger.center.ufl.edu/work/literacy/flamingo-literacy/literacy-microcredentials/emergent-literacy-microcredential/
(last visited Mar. 10, 2023). BILL: SB 990 Page 4
science, or hold a certificate to teach any age from birth through grade 6 and holds a bachelor’s
or higher degree in elementary education and is not otherwise disqualified.
18
VPK Accountability
Each VPK provider may select or design the curriculum that the provider uses to implement the
VPK Program. The curriculum must be developmentally appropriate and must:
19
Be designed to prepare a student for early literacy and provide for instruction in early math
skills.
Enhance the age-appropriate progress of students in attaining the performance standards
adopted by DOE.
Support student learning gains through differentiated instruction that shall be measured by
the coordinated screening and progress monitoring program.
All VPK providers are required to participate in a program assessment of each VPK classroom
beginning with the 2022-23 VPK Program. The program assessment measures the quality of
teacher-child interactions, including emotional support, classroom organization, and instructional
support for children ages 3 to 5 years. Early learning coalitions are responsible for the
administration of the program assessments.
20
The program assessment score must constitute at least half of the provider performance metric to
be developed by the DOE beginning with the 2022-2023 VPK program year. The performance
metric must include program assessment scores, learning gains, and learning outcomes from the
coordinated screening and progress monitoring system. The methodology is required to include a
statistical latent profile analysis developed by the DOE that produces a limited number of
performance metric profiles which summarize the profiles of all VPK programs in designations
consisting of “unsatisfactory,” “emerging proficiency,” “proficient,” “highly proficient,” and
“excellent” or similar designations.
21
Beginning with the 2023-2024 program year, each VPK
provider will be assigned a designation within 45 days after the conclusion of the VPK
Program.
22
The coordinated screening and progress monitoring program is the statewide, standardized
assessment program known as Florida's Assessment of Student Thinking (FAST) using Star
Early Literacy. This program is used to assess student achievement in early literacy and
mathematics.
23
VPK Programs began implementing the FAST using Star Early Literacy in the
2022-2023 VPK Program Year.
A VPK student who exhibits a substantial deficiency in early literacy skills in accordance with
the standards and based upon the results of the administration of the final coordinated screening
and progress monitoring must be referred to the local school district and may be eligible to
18
Section 1002.61(4), F.S.
19
Section 1002.67(2), F.S.
20
Section 1002.68(2), F.S.
21
Section 1002.68(4)(a), F.S.
22
Section 1002.68(4)(f), F.S.
23
Florida Division of Early Learning, Florida's Assessment of Student Thinking (FAST) using Star Early Literacy,
https://www.floridaearlylearning.com/vpk/fast (last visited Mar. 10, 2023). BILL: SB 990 Page 5
receive intensive reading interventions before participating in kindergarten. Such intensive
reading interventions must be paid for using funds from the district’s evidence-based reading
instruction allocation.
24
Effect of Proposed Changes
Voluntary Prekindergarten Requirements
The bill modifies s. 1002.55, F.S. to add corporate-provided child care providers to the types of
license-exempt private providers that may offer the VPK program.
VPK Personnel
The bill modifies s. 1022.55, F.S., to provide flexibility for a VPK instructor to complete the
required three emergent literacy training courses to require completion within 45 days after
commencing employment rather than as a pre-condition of employment. This may increase the
number of available instructors, but VPK classes may be impacted if an instructor fails to
complete all courses within the required timeframe.
The bill modifies s. 1002.61. F.S., to add options for personnel to satisfy the certification
requirements for instructors in the summer VPK program. The bill allows a person to serve as an
instructor of a summer VPK program if the person possesses either a Child Development
Associate (CDA), or a credential approved by the Department of Children and families as equal
or greater than a CDA, as long as the instructor has completed the early literacy micro-credential
program or has an instructional support score of 3 or higher on the program assessment.
VPK Administration
The bill modifies s. 1002.82, F.S., to expand the requirements of the statewide data information
program to include the Florida Education Identifier for all instructors and enrolled children in the
VPK and school readiness programs. The bill also directs the DOE to contract for, rather than
establish, a single statewide information system to manage all early learning programs and child
care licensing and training. The bill requires the system to allow parents to locate early learning
programs online, including the provider performance profile by October 1, 2024. It is unclear if
this system is intended to replace the current EFS Modernization Portal.
The bill amends s. 1002.71, F.S., to modify the method used to determine the amount of
administrative funds an early learning coalition may retain for the VPK program. The bill
requires the administrative fee that may be retained by an early learning coalition to be based on
the number of VPK applications processed by the coalition instead of payments made to
providers for VPK enrollments.
This may greatly increase the administrative funds available to a coalition. The base student
allocation for the 2021-2022 VPK school year program was $2,486 for each full-time student.
25
Four percent, $12,145,890, in administrative fees was paid to coalitions out of the $342,758,173
24
Section. 1008.25(5), F.S.
25
Specific Appropriation 86, ch. 2021-36, Laws of Fla. BILL: SB 990 Page 6
in actual payments to VPK providers for services.
26
The reported number of applications
processed by all early learning coalitions was 204,576 in the same year.
27
If the base student
allocation of $2,486 was multiplied by the 204,576 applications processed, the result amounts to
$508,575,936. Shifting the basis of the administrative fee to applications processed may have
authorized the early learning coalitions to receive four percent of $508,575.936, which would
have amounted to $20,343,037.
The bill modifies s. 1002.83, F.S., to allow early learning coalitions to appoint additional at-large
members to their board as long as the at-large members do not comprise more than one-third of
the board’s composition. The bill also removes private sector business members from the
allowable composition of at-large appointees.
VPK Accountability
The bill modifies s. 1002.67, F.S., to prohibit a public or private VPK provider’s curriculum
from:
Utilizing the coordinated screening and progress monitoring program for direct student
instruction; and
The use of electronic devices except to complete the coordinated screening and monitoring
program.
The bill modifies s. 1002.68, F.S., to postpone from the 2022-23 program year to the 2023-2024
program year the requirement to participate in a program assessment. The bill specifies that the
program assessment may be conducted only when at least 75 percent of enrolled students are in
attendance.
The bill also postpones, from the 2022-23 program year to the 2023-2024 program year, the
requirement for the DOE to adopt the methodology for calculating each VPK provider’s
performance metric. The bill removes the responsibility for the DOE to develop the performance
metric and instead requires the methodology for the performance metric to include an analysis
that has been conducted by an independent expert with experience in relevant quantitative
analysis, early childhood assessment, and designing state-level accountability systems. The bill
requires the independent expert to be identified through competitive procurement before the
2023-2024 program year and retained through the 2025-2026 program year.
Finally, the bill postpones from the 2023-24 VPK program year to the 2024-25 program year the
requirement for the DOE to issue a performance designation based on the provider’s
performance metric.
The bill modifies s. 1008.25, F.S., to clarify eligibility for children in the VPK program who
exhibit a substantial deficiency in early literacy skills. The bill requires that the student receive
intensive reading interventions in the summer prior to kindergarten. The bill authorizes public or
private VPK providers to provide the interventions if they are qualified to offer the summer VPK
26
Florida Division of Early Learning, Annual Report 2021-22, available at
https://www.floridaearlylearning.com/Content/Uploads/floridaearlylearning.com/images/DEL%20Annual%20Report%20202
1-2022%20FINAL.pdf.
27
Email, Florida Department of Education (March 9, 2023). BILL: SB 990 Page 7
program. The bill provides that the summer intensive reading interventions program must consist
of no more than 4 hours per day and be limited to 140 hours. The bill requires the program to be
funded in the General Appropriations Act in accordance with the rate set for the Summer VPK
program.
School Readiness Program Administration
Present Situation
The School Readiness (SR) Program provides subsidies for child care services and early
childhood education for children of low-income families; children in protective services who are
at risk of abuse, neglect, or abandonment; and children with disabilities.
28
The SR Program
offers financial assistance for child care to support working families and help children to develop
skills for success in school. The program also provides developmental screening and referrals to
health and education specialists where needed.
29
The DOE is required to monitor the alignment and consistency of the standards developed and
adopted by DOE that address the age-appropriate progress of children in the development of
school readiness skills. The standards for children from birth to kindergarten entry in the SR
Program must be aligned with the performance standards adopted for children in the VPK
Program and must address the following domains:
30
Approaches to learning.
Cognitive development and general knowledge.
Numeracy, language, and communication.
Physical development.
Self-regulation.
Early learning coalitions may award grants and provide financial support to SR Program
providers and their staff to assist them in meeting applicable state requirements for the program
assessment, child care performance standards, implementing developmentally appropriate
curricula and related classroom resources that support curricula, providing literacy supports, and
providing continued professional development and training. Early learning coalitions provide
training, technical assistance, and financial support to school readiness program providers, staff,
and parents on standards, child screenings, child assessments, child development research and
best practices, developmentally appropriate curricula, character development, teacher-child
interactions, age-appropriate discipline practices, health and safety, nutrition, first aid,
cardiopulmonary resuscitation, the recognition of communicable diseases, and child abuse
detection, prevention, and reporting.
31
Effect of Proposed Changes
The bill modifies s. 1002.89, F.S., to specifically authorize early learning coalitions to use
School Readiness program funds to improve quality by:
28
Section 1002.87, F.S.
29
Section 1002.86, F.S.
30
Section 1002.82, F.S.
31
Section 1002.89, F.S. BILL: SB 990 Page 8
Implementing a developmentally appropriate curriculum that meets the performance
standards for the School Readiness program.
Supporting parent engagement.
Supporting professional development through the Teacher Education and Compensation
Helps (TEACH) Scholarship program.
Providing training aligned to the early learning professional development standards and
career pathways.
Reimbursing providers for the cost for background screening.
Gold Seal Quality Care Program
Present Situation
The DOE administers the Gold Seal Quality Care program. In 1996,
32
the Florida Legislature
established the Gold Seal Quality Care Program to recognize child care facilities and family day
care homes that have gone above the required minimum licensing standards to become
accredited by recognized agencies whose standards reflect quality in the level of care and
supervision provided to children. The Gold Seal Quality Care Program is not an accreditation,
but a designation with potential benefits to those that participate including, but not limited to:
33
A positive marketing tool for prospective parents.
Tax exemptions. The Department of Revenue issues the exemption certificates for sales tax.
This exemption is for certain educational materials.
Higher reimbursement for School Readiness providers.
Eligibility to participate in Voluntary Prekindergarten (VPK).
Currently, 2,890 providers are listed as a Gold Seal Quality Care provider.
34
In order to obtain and maintain a designation as a Gold Seal Quality Care provider, a child care
facility, large family child care home, or family day care home must have:
No class I
35
violations within preceding 2 years;
Less than 3 class II
36
violations within preceding 2 years;
Less than 3 class III
37
violations within the preceding 2 years that were not corrected within 1
year.
38
32
Ch. 96-175, s. 72, Laws of Fla.
33
Florida Division of Early Learning, About the Gold Seal Quality Care Program, available at:
https://www.floridaearlylearning.com/providers/gold-seal-quality-care-program.
34
Department of Children and Families, Child Care Provider List, 3-1-2023, available at:
https://www.myflfamilies.com/sites/default/files/2023-03/Public%20-%202023-3-1%20-%20Statewide.pdf
35
Class “I” violations are those conditions or occurrences related to the operation and maintenance of a provider or to the
care of clients which the agency determines present an imminent danger to the clients of the provider or a substantial
probability that death or serious physical or emotional harm would result therefrom. Section 408.813, F.S.
36
Class “II” violations are those conditions or occurrences related to the operation and maintenance of a provider or to the
care of clients which the agency determines directly threaten the physical or emotional health, safety, or security of the
clients, other than class I violations. Id.
37
Class “III” violations are those conditions or occurrences related to the operation and maintenance of a provider or to the
care of clients which the agency determines indirectly or potentially threaten the physical or emotional health, safety, or
security of clients, other than class I or class II violations. Id.
38
Section 1002.945, F.S. BILL: SB 990 Page 9
The DOE has not terminated any providers from the program. The Children’s Forum has denied
renewal applications for 33 Gold Seal Quality Care Program providers.
39
Effect of Proposed Changes
The bill amends s. 1002.945, F.S., to modify requirements for obtaining or maintaining the Gold
Seal Quality Care designation. The bill specifies that a provider must not have three or more of
the same Class II violations, rather than just three or more class II violations in general.
T.E.A.C.H. Scholarship Program
Present Situation
The DOE administers the Teacher Education and Compensation Helps (T.E.A.C.H.) Scholarship
Program in partnership with the Children’s Forum, which provides educational scholarships to
caregivers and administrators of early childhood programs, family day care homes, and large
family child care homes. The goal of the program is to increase the education and training for
caregivers, increase the compensation for child caregivers who complete the program
requirements, and reduce the rate of participant turnover in the field of early childhood
education.
40
The Legislature appropriated $3 million in recurring funds and $7 million in nonrecurring funds
for the T.E.AC.H. Program in the 2022-2023 fiscal year.
41
According to the T.E.A.C.H. 2020-
2021 annual report, the DOE provided $9,999,885 in funding to support 4,215 scholarships. In
2020-21, the DOE waived employer and scholar copays.
42
Effect of Proposed Changes
The bill modifies 1002.95, F.S., to clarify that T.E.A.C.H. scholarship program recipients are
“instructors” and not “caregivers,” the bill directs early learning coalitions to support the
T.E.A.C.H scholarship program by reimbursing child care providers for the co-pay portion of the
program for each instructor who completes a child development associate credential in his or her
service area.
Child Care Licensing Program
Present Situation
The child-care licensing program is a component of the services provided by Department of
Children and Families (DCF). The program is accountable for the statewide licensure of Florida's
child-care facilities, specialized child-care facilities for the care of mildly ill children, large
family child-care homes, and licensure or registration of family day care homes. The purpose of
the program is to ensure a healthy and safe environment for the children in child-care settings
and to improve the quality of their care through regulation and consultation. DCF ensures that
39
Email, Florida Department of Education (Mar. 9, 2023).
40
Section 1002.945, F.S.
41
Chapter 2022-156, s. 2, Specific Appropriation 78, Laws of Fla.
42
T.E.A.C.H Early Childhood Scholarship Program, Annual Report 2021, available at: https://teach-fl.org/download/t-e-a-c-
h-annual-report-for-2021/. BILL: SB 990 Page 10
licensing requirements are met through on-going inspections of child-care facilities and homes,
thus preventing the continued operation of substandard child-care programs.
43
There are over
8,000 licensed child care programs in Florida.
44
Florida's child-care law
45
provides for any county whose licensing standards meet or exceed the
state minimum standards to designate by ordinance a local licensing agency in their county.
Counties not choosing to administer their own child care licensing programs are licensed by
(DCF).
Effect of Proposed Changes
The bill modifies s. 402.302, F.S. to define “preschool” to mean any childcare care facility that is
licensed pursuant to the standards of DCF and serves children under 5 years of age.
Child Care Facility Standards
Present Situation
DCF establishes licensing standards that each licensed child care facility must meet regardless of
the origin or source of the fees used to operate the facility or the type of children served by the
facility. The standards are required to address the following areas:
46
The health, sanitation, safety, and adequate physical surroundings for all children in child
care.
The health and nutrition of all children in child care.
The child development needs of all children in child care.
All standards established by DCF must be consistent with the rules adopted by the State Fire
Marshal for child care facilities. However, if the facility is operated in a public school, the DCF
is required to use the public school fire code, as provided in the rules of the State Board of
Education, as the minimum standard for firesafety.
47
DCF child-care licensing staff are responsible for the inspection and licensure of child-care
facilities and homes in 63 out of 67 counties, as well as registration of family day care homes in
those counties which do not require licensure. Four counties have elected to regulate licensing of
child care facilities and homes,
48
which are Broward, Palm Beach, Pinellas, and Sarasota.
49
The DCF and local governmental agencies that license child care facilities must develop and
implement a plan to eliminate duplicative and unnecessary inspections of child care facilities. In
addition, DCF and the local governmental agencies are required to develop and implement an
43
Florida Department of Children and Families, About Child Care Licensure, available at:
https://www.myflfamilies.com/services/child-family/child-care/child-care-providers-and-staff/about-child-care-licensure
44
Florida Department of Children and Families, Child Care Provider List, 3-1-2023, available at
https://www.myflfamilies.com/sites/default/files/2023-03/Public%20-%202023-3-1%20-%20Statewide.pdf
45
Sections 402.301-319 F.S.
46
Section 402.305, F.S.
47
Section 402.305(1)(b), F.S.
48
Section 402.306, F.S.
49
Florida Department of Children and Families, Child Care Licensure,
https://www.myflfamilies.com/services/licensing/child-care-licensure (last visited Mar. 10, 2023). BILL: SB 990 Page 11
abbreviated inspection plan for child care facilities that have had no Class 1 or Class 2
deficiencies for at least 2 consecutive years. The abbreviated inspection must include those
elements identified by DCF and the local governmental agencies as being key indicators of
whether the child care facility continues to provide quality care and programming.
50
Effect of Proposed Changes
The bill amends s. 402.305, F.S., to modify the scope of required licensing standards for child
care facilities. Specifically the bill:
Removes from the scope of DCF licensing standards health and nutrition and child
development needs.
Clarifies that fire safety regulations for child care facilities are directed by the State Fire
Marshal.
Removes periodic health examinations from licensing requirements.
Removes the requirement for child care facilities to provide parents of children enrolled in
the facility detailed information regarding:
o The causes, symptoms, and transmission of the influenza virus and the importance of
immunizing their children.
o The potential for a distracted adult to fail to drop off a child at the facility and instead
leave the child in the adult’s vehicle upon arrival at the adult’s destination.
Removes the requirements that the written plan for the daily provision of age-appropriate
activities include a program to assist the children in preventing and avoiding physical and
mental abuse.
Removes minimum standards for specialized child care facilities of the care of mildly ill
children.
The bill modifies s. 402.3115, F.S., to add family day care homes and large family child care
homes to the list of facilities that the DCF must include in its plan to eliminate duplicative and
unnecessary inspections.
The bill expands the requirement for DCF and local government agencies to develop an
abbreviated inspection plan for certain child care facilities. The bill requires the DCF and local
government agencies to develop and implement an abbreviated inspection plan for child care
facilities that:
Have been licensed for a period of not less than 2 consecutive years, and do not have a
Class 1 and no more than two of the same Class 2 deficiencies, for at least 2 consecutive
years.
Have received at least two full onsite renewals in the most recent 2 years.
Do not have any current uncorrected violations.
Do not have any open regulatory complaints or active child protective services
investigations.
The bill requires the DCF to annually calculate efficiencies and moneys saved due to the
implementation of abbreviated inspections and use the savings to focus resources and technical
assistance to support child care facilities, family day care homes, and large family child care
50
Section 402.305, F.S. BILL: SB 990 Page 12
homes that are having difficulty maintaining compliance with licensing requirements based on a
history of violations, regulatory complaints, or active child protective violations.
The bill modifies s. 402.316, F.S., to add an exemption from licensing for a child care provider
that receives a child care tax credit and is attended only by children or grandchildren of
employees of the corporation claiming the credit.
Child Care Personnel
Present Situation
The DCF establishes minimum standards for child care personnel that include minimum
requirements for good moral character based upon background screening.
51
This screening must
be conducted using the level 2 standards for screening which include employment history
checks, a search of criminal history records, sexual predator and sexual offender registries, and
the child abuse and neglect registry of any state in which the current or prospective child care
personnel resided during the preceding 5 years.
52
The DCF also establishes minimum training requirements for child care personnel. DCF has
adopted the Child Care Facility Handbook to describe these requirements in detail.
53
The
minimum standards for training must ensure that all child care personnel take an approved 40-
clock-hour introductory course in child care covering the following topic areas:
54
State and local rules and regulations which govern child care.
Health, safety, and nutrition.
Identifying and reporting child abuse and neglect.
Child development, including typical and atypical language, cognitive, motor, social, and
self-help skills development.
Observation of developmental behaviors, including using a checklist or other similar
observation tools and techniques to determine the child’s developmental age level.
Specialized areas, including computer technology for professional and classroom use and
early literacy and language development of children from birth to 5 years of age, as
determined by the DCF, for owner-operators and child care personnel of a child care facility.
Developmental disabilities, including autism spectrum disorder and Down syndrome, and
early identification, use of available state and local resources, classroom integration, and
positive behavioral supports for children with developmental disabilities.
55
The DCF is required to evaluate or contract for an evaluation to determine the status of and
means to improve staff training requirements and testing procedures. The evaluation must be
conducted every 2 years. The evaluation must include, but is not be limited to, determining:
56
51
Section. 405.305(15), F.S.
52
Section. 435.04, F.S.
53
Florida Department of Children and Families, Child Care Facility Handbook, October 2021, available at:
https://www.myflfamilies.com/sites/default/files/2022-12/FacilityHandbook_0.pdf.
54
Florida Department of Children and Families, Child Care Facility Handbook, October 2021, available at:
https://www.myflfamilies.com/sites/default/files/2022-12/FacilityHandbook_0.pdf.
55
Section. 402.305, F.S.
56
Section. 402.305(2), F.S. BILL: SB 990 Page 13
The availability, quality, scope, and sources of current staff training.
The need for specialty training.
Ways to increase in-service training.
Ways to increase the accessibility, quality, and cost-effectiveness of current and proposed
staff training.
The DCF also establishes minimum standards for:
Sanitary and safety conditions, first aid treatment, emergency procedures, and pediatric
cardiopulmonary resuscitation. The minimum standards must require that at least one staff
person trained in cardiopulmonary resuscitation, as evidenced by current documentation of
course completion, must be present at all times that children are present.
57
Admissions and recordkeeping. During the months of August and September of each year,
each child care facility must provide parents of children enrolled in the facility detailed
information regarding
o The causes, symptoms, and transmission of the influenza virus and the importance of
immunizing their children.
o The potential for a distracted adult to fail to drop off a child at the facility and instead
leave the child in the adult’s vehicle upon arrival at the adult’s destination.
58
o A plan of activities which must ensure that each child care facility has and implements a
written plan for the daily provision of varied activities and active and quiet play
opportunities appropriate to the age of the child.
59
o Specialized child care facilities for the care of mildly ill children.
60
Effect of Proposed Changes
The bill amends s. 402.305 to modify minimum standards for child care personnel. Specifically,
the bill:
Requires the 40-clock-hour introductory course in child care to be taken by child care
personnel to include online training coursework, provided at no cost by the DCF, to meet
minimum training standards for child care personnel.
Clarifies that the child care personnel competency examination will be either in-person or
online.
Requires a child care operator have two persons, instead of one, trained in cardiopulmonary
resuscitation present at all times that children are present.
The bill specifies a timeline for DCF to provide background screening results of personnel to
providers. The bill requires the DCF to complete the background screening and provide results to
the child care facility within 5 business days. Upon failure to do so, the bill requires the DCF to
issue a current or prospective child care personnel a 45-day provisional hire status while all
required information is being requested and the DCF is awaiting results. During the 45-day
period, the current or prospective child care personnel must be under the direct supervision of a
screened and trained staff member when in contact with children.
57
Section. 402.305(7), F.S.
58
Section. 402.305(9), F.S.
59
Section. 402.305(13), F.S.
60
Section. 402.305(17), F.S. BILL: SB 990 Page 14
The bill modifies the required evaluation by DCF, or a contracted entity, to determine the status
of and means to improve staff training requirements and testing procedures. The bill removes
existing requirements for the evaluation and requires, by December 31, 2023, the DCF to
evaluate or contract for an evaluation of:
The current training requirements and coursework offered to child care personnel and make
recommendations to increase the quality and relevancy of training.
The licensing and regulation of child care facilities to:
o Identify rules that exceed specific delegated legislative authority.
o Identify rules that are arbitrary, vague, or redundant.
o Streamline the standards used to classify violations and eliminate redundancy or
subjectivity in application by licensing counselors.
The bill provides that once the evaluation is completed, the DCF must begin revising the
regulation of child care facilities to simplify ongoing licensure inspections, increase objectivity,
and provide a greater emphasis on technical assistance. The evaluation must be conducted every
5 years.
Special Assessments
Present Situation
There are 67 county governments and over 400 municipal governments. Municipalities levy and
collect special assessments to fund capital improvements and municipal services including but
not limited to; fire protection, emergency medical services, garbage disposal, sewer
improvement, street improvement and parking facilities. Small municipalities with a population
fewer than 100 persons may use special assessments to fund special security and crime
prevention services and facilities.
61
Property owned or occupied by a religious institution, a public or private elementary, middle, or
high school, or by a governmentally financed, insured or subsidized housing facility that is used
primarily for persons who are elderly or disabled is exempt from any special assessments levied
by a municipality.
62
No specific exemption exists for preschools. There are over 8,000 licensed
preschools in Florida.
63
Special assessments represent a significant amount of tax revenue for local municipalities, which
include cities and county governments. For 2019-20, special assessment levied by local
governments were $123.63 per capita, this compares with $77.33 per capita for school impact
fees, $63.17 for local public service tax revenue, $26.12 for communication services tax revenue
as examples.
64
61
Section 170.201, F.S.
62
Section 170.201(2), F.S.
63
Department of Children and Families, Child Care Provider List, 3-1-2023, available at
https://www.myflfamilies.com/sites/default/files/2023-03/Public%20-%202023-3-1%20-%20Statewide.pdf.
64
Florida TaxWatch, 2022 How Florida Counties Compare, available at https://floridataxwatch.org/Research/Full-
Library/ArtMID/34407/ArticleID/19164/2022-How-Florida-Counties-Compare. BILL: SB 990 Page 15
Effect of Proposed Changes
The bill modifies s. 170.201, F.S., to add any public or private preschool to those properties that
are exempt from special assessments levied by local governments and municipalities. This
provision would exempt some 8,000 private preschools in Florida from special assessments
levied by local governments and municipalities.
Tax Collections and Credits
Present Situation
Early Learning Tax Incentive
Child care tax credits expired in 2008.
65
There is no tax credit program against tax due for any
taxpayers for contributions made to a child care facility on behalf of employees for oil and gas
producers, direct pay permit-holders, corporate income/franchise filers, entities owing excise
taxes on malt beverages, wines and beverages or on liquors/beverages, and insurance companies.
Corporate Income Tax
Florida imposes a 5.5 percent tax on the taxable income of certain corporations and financial
institutions doing business in Florida.
66
Corporate income tax is remitted to the Department of
Revenue (DOR) and distributed to General Revenue. Net collections of corporate income tax in
FY 2021-2022 were $2.9 billion.
67
Insurance Premium Tax
Florida imposes a 1.75 percent tax on most Florida insurance premiums.
68
Insurance premium
taxes are paid by insurance companies under ch. 624, F.S., and are remitted to the DOR. These
revenues are distributed to General Revenue with additional distributions to the Insurance
Regulatory Trust Fund, the Police & Firefighters Premium Tax Trust Fund, and the Emergency
Management Preparedness & Assistance Trust Fund. Net collections of insurance premium taxes
in FY 2021-2022 were $1.16 billion with distributions to General Revenue of $750 million.
69
Severance Taxes on Oil and Gas Production
Oil and gas production severance taxes are imposed on persons who sever oil or gas in Florida
for sale, transport, storage, profit, or commercial use.
70
These taxes are remitted to the DOR and
distributed to General Revenue with additional distributions to the Minerals Trust Fund and to
the counties where production occurred. Receipts from the severance taxes on oil and gas are
65
Section. 220.19, F.S. (2008).
66
Sections 220.11(2) and 220.63(2), F.S.
67
Office of Economic and Demographic Research, Memo, August 17, 2022, available at
http://edr.state.fl.us/Content/conferences/generalrevenue/CITNetCollections_FY2021-22.pdf
68
Section 624.509, F.S. (Different tax rates apply to wet marine and transportation insurance, self-insurance, and annuity
premiums.)
69
Florida Revenue Estimating Conference, 2022 Florida Tax Handbook (Nov. 4, 2022), available at
http://edr.state.fl.us/content/revenues/reports/tax-handbook/taxhandbook2022.pdf
70
Sections 211.02(1) and 211.025, F.S. BILL: SB 990 Page 16
estimated to be $2.7 million in FY 2021-2022 with distributions to General Revenue of $1.7
million.
71
Sales Taxes Paid by Direct Pay Permit Holders
Section 212.183, F.S., authorizes the DOR to establish a process for the self-accrual of sales
taxes due under ch. 212, F.S. The process involves the DOR granting a direct pay permit to a
taxpayer, who then pays the taxes directly to the DOR.
72
Alcoholic Beverage Taxes
Florida imposes excise taxes on malt beverages, wines, and other beverages.
73
The taxes are due
from manufacturers, distributors and vendors of malt beverages, and from manufacturers and
distributors of wine, liquor, and other specified alcoholic beverages. Taxes are remitted to the
Division of Alcoholic Beverages and Tobacco (Division) in the Department of Business and
Professional Regulation (DBPR).
The Division is responsible for supervising the conduct, management, and operation of the
manufacturing, packaging, distribution, and sale of all alcoholic beverages in Florida.
74
Distributions of the excise taxes on alcoholic beverages are made to the General Revenue Fund,
the Alcoholic Beverage and Tobacco Trust Fund, and Viticulture Trust Fund. Collections of
alcoholic beverage taxes were $359 million in FY 2021-2022 with distributions to General
Revenue of $352 million.
75
Florida Tax Credit Scholarship Program
The Florida Tax Credit (FTC) Scholarship Program was established to encourage private,
voluntary contributions from corporate donors to non-profit scholarship funding organizations
(SFOs) that award scholarships to children from low-income families. Scholarship Funding
Organizations (SFOs) are responsible for the receipt and distribution of contributed funds to
eligible students attending participating Florida private schools. Scholarships are awarded to
low-income students to attend a private school or assist with transportation costs to attend a
public school in an adjacent district.
76
Taxpayers can receive a tax credit for use against their liability for corporate income tax,
insurance premium tax, severance taxes on oil and gas production, self-accrued sales tax
71
Florida Revenue Estimating Conference, 2022 Florida Tax Handbook (Nov. 4, 2022), available at
http://edr.state.fl.us/content/revenues/reports/tax-handbook/taxhandbook2022.pdf
72
Section 212.183, F.S., and rule 12A-1.0911, F.A.C. Direct pay permit holders include: dealers who annually make
purchases in excess of $10 million per year in any county; dealers who annually purchase at least $100,000 of tangible
personal property, including maintenance and repairs for their own use; dealers who purchase promotional materials whose
ultimate use is unknown at purchase; eligible air carriers, vessels, railroads, and motor vehicles engaged in interstate and
foreign commerce; and dealers who lease realty from a number of independent property owners.
73
Sections 563.05, 564.06, and 565.12, F.S.
74
Section 561.02, F.S.
75
Florida Revenue Estimating Conference, 2022 Florida Tax Handbook (Nov. 4, 2022), available at
http://edr.state.fl.us/content/revenues/reports/tax-handbook/taxhandbook2022.pdf
76
Florida Department of Education, Fact Sheet Florida Tax Credit Scholarship Program, available at:
https://www.fldoe.org/core/fileparse.php/5606/urlt/FTC-Oct-2022-line.pdf. BILL: SB 990 Page 17
liabilities of direct pay permit holders or alcoholic beverage taxes on beer, wine, and spirits.
77
The tax credit is equal to 100 percent of the eligible contributions made.
78
To receive a tax credit
the taxpayer must submit an application to the DOR and specify each tax for which the taxpayer
requests a credit and the applicable taxable or state fiscal year for the credit.
79
Taxpayers can
rescind tax credits, which will become available to another eligible taxpayer in that fiscal year.
80
Effect of Proposed Changes
The bill modifies s. 200.19, F.S., to establish the Early Learning Tax Incentive. This tax
incentive works in conjunction with the Florida Tax Credit Scholarship Program by allowing a
for a tax credit of 100 percent of a donation made to a child care facility on behalf of an
employee by a corporation against the following tax liabilities:
Corporate income tax;
Insurance premium tax;
Severance taxes on oil and gas production;
Alcoholic beverage tax on beer, wine, and spirits; or
Self-accrued sales tax liability of direct pay permit holders.
New sections are created in each of the applicable tax chapters to create the credit authorized in
s. 220.19, F.S., for the Early Learning Tax Incentive for:
A tax credit of up to 50 percent of the startup costs of a child care facility for children under
the age of 5 by a corporation for its employee for any tax due in a taxable year.
An additional tax credit for the operational costs of a child care facility for children under the
age of 5 by a corporation for its employees. The tax credit is an amount of $300 per month
for each child or grandchild of an employee.
A tax credit for any tax due for a tax year for a corporation that makes payments to an
eligible facility if the payments are made in the name of a child or grandchild of an employee
for a maximum credit of $3,600 per child. Payments may be made directly to the facility or
the corporation may contract with the early learning coalition to process payments. However,
the maximum credit needs clarification if the $3,600 per child credit is for one occasion or
can be claimed annually.
The bill caps the maximum amount of tax credits based on the number of employees employed
by the corporation during the year ranging from:
$50,000 for a corporation with 1 to 25 employees.
$100,000 for a corporation with 26 to 50 employees.
$150,000 for a corporation with 51 to 75 employees.
$200,000 for a corporation with 76 to 100 employees.
$300,000 for a corporation with 101 to 200 employees.
$500,000 for a corporation with 201 to 500 employees.
The bill establishes eligibility requirements for claiming the credit. The bill specifies that:
77
Section 1002.395(1) and (5), F.S.
78
Sections 220.1875 and 1002.395(5), F.S.
79
Section 1002.395(5)(b), F.S.
80
Section 1002.395(5)(e), F.S. BILL: SB 990 Page 18
A corporation may only claim a credit for an eligible child care facility.
The services of a child care facility for which a corporation claims a credit for operating a
child care facility must be available to all employees of the corporation, or must be allocated
on a first-come, first-served basis, and must be used by employees employed by the
corporation.
Child care payments for which a corporation claims a credit for making payments to a child
care facility in the name of and for the benefit of an employee of the corporation whose child
or grandchild attends the child care facility may not exceed the amount charged by the child
care facility for other children of like age and ability of persons not employed by the
corporation.
The bill authorizes two or more corporations to jointly establish and operate a child care facility.
If two or more corporations choose to jointly establish and operate a child care facility, or cause
a not-for-profit corporation to establish and operate a child care facility, the corporations must
file a joint application, or the not-for-profit corporation may file an application setting forth the
corporations’ proposal. The bill authorizes the participating corporations to proportion the credits
in any manner they choose; however, participating corporations may not receive more than
$150,000 in credits for all approved child care costs incurred by the participating corporations in
any one taxable year.
The bill delineates the application process for the credit. The bill requires an application for a
credit to be approved by the DOR prior to claiming a credit on a return. The bill authorizes,
beginning January 1, 2024, a corporation to submit an application to the DOR for the purposes of
determining qualification for an Early Learning Tax Incentive credit to be applied to a taxable
year beginning on or after January 1, 2024. The application must include:
For a credit for operating a child care facility, a proposal for establishing a child care facility
for use by a corporation’s employees, the total number of employees’ children and
grandchildren expected to be enrolled, and the expected date operations will begin. A credit
may not be claimed on a return until operations have begun.
For a credit for donating to a child care facility, the total number of employees’ children and
grandchildren for which child care payments will be paid and the estimated total annual
amount of such payments.
The taxable year in which the credit is expected to be earned. A corporation may apply for a
credit to be used for a prior taxable year at any time before the date on which the corporation
is required to file a return for that year.
Written verification by the DCF or local licensing agency that the facility is a child care
facility and is an eligible facility. Such verification must be attached to the application.
The bill requires the DOR to approve tax credits on a first-come, first-served basis.
The bill authorizes the DOR to adopt all rules pursuant to the Administrative Procedure Act to
administer the tax incentive, including rules for the approval or disapproval of proposals
submitted by corporations and rules to provide for cooperative arrangements between for-profit
and not-for-profit corporations.
BILL: SB 990 Page 19
The bill specifies that the DOR’s decision to approve or disapprove a proposal must be in
writing, and, if the proposal is approved, the decision must state the maximum credit authorized
for the corporation.
Insurance
Present Situation
Homeowners' insurance is a specific type of property insurance. Homeowners' insurance covers
damage or loss by theft and against perils which can include fire, and storm damage. It also may
insure the owner for accidental injury or death for which the owner may be legally responsible.
Mortgage lenders usually require homeowners' insurance as part of the mortgage terms.
81
While homeowners' insurance can specifically refer to the insurance of a house, it also
encompasses the insurance of other types of structures associated with personal residences,
including tenants (renters) and condominium unit owners.
82
Florida recognizes that family day care homes fulfill a vital role in providing child care and that
residential property insurance coverage should not be canceled, denied, or nonrenewed solely on
the basis of the family day care services at the residence. The potential liability of residential
property insurers is substantially increased by the operation of child care services on the
premises. Contractual liabilities that arise in connection with the operation of the family day care
home are excluded from residential property insurance policies unless they are specifically
included in such coverage.
83
In addition to family day care services, there are also over 400 large family day care services in
Florida.
84
A large family day care home is an occupied residence in which child care is regularly
provided for children from as least two unrelated families where there is payment for the care
provided and which has at least two full-time child care personnel on the premise during hours of
operation.
85
The insurance protections for family day care homes do not extend to large family
day care homes.
86
Effect of Proposed Changes
The bill modifies s. 627.70161, F.S., to add specific language to include large family child care
homes to existing law to prevent cancelation of the residential property insurance solely on the
basis of offering those services at a residence, and to include “large family child care homes” in
language stating the liabilities arising out of such services are excluded from property insurance
policies specifically included in that coverage.
81
Florida Office of Insurance Regulation, Homeowners’ Insurance,
https://floir.com/Sections/PandC/Homeowners/default.aspx (last visited Mar. 11, 2023).
82
Florida Office of Insurance Regulation, Homeowners’ Insurance,
https://floir.com/Sections/PandC/Homeowners/default.aspx (last visited Mar. 11, 2023).
83
Section 627.70161, F.S.
84
Department of Children and Families, Child Care Provider List, 3-1-2023, available at
https://www.myflfamilies.com/sites/default/files/2023-03/Public%20-%202023-3-1%20-%20Statewide.pdf.
85
Section 402.302(11), F.S.
86
Section 627.70161, F.S. BILL: SB 990 Page 20
The bill takes effect July 1, 2023.
IV. Constitutional Issues:
A. Municipality/County Mandates Restrictions:
The bill limits the ability to collect special assessments to fund capital improvements and
municipal services under s. 170.201, F.S., by providing exemptions for preschools.
B. Public Records/Open Meetings Issues:
None.
C. Trust Funds Restrictions:
None.
D. State Tax or Fee Increases:
None.
E. Other Constitutional Issues:
None.
V. Fiscal Impact Statement:
A. Tax/Fee Issues:
The bill provides an exemption from special assessments levied by municipalities, which
may reduce tax revenue. An impact estimating conference is required to estimate the
impact on tax revenue for local governments as a result of introducing the exemption for
preschool from special assessments levied by municipal governments.
The bill provides corporate tax credits for contributions to child care facilities, which may
reduce the collection of taxes.
B. Private Sector Impact:
The bill may reduce costs to School Readiness and Voluntary Prekindergarten providers
by providing reimbursements for:
Background screening of personnel; and
Co-pays for providers related to the TEACH scholarship program.
C. Government Sector Impact:
This bill may have a significant but indeterminate negative fiscal impact on state general
revenue and federal Child Care Development Funds. For example, the bill: BILL: SB 990 Page 21
Requires a statistical analysis be conducted by an independent expert; identified
through competitive procurement before 2023-2024 program year.
Requires a statewide information system to be used to manage all early learning
programs.
Provides a reimbursement for child care providers for the copayment portion of the
program for each instructor who completes a child development associate credential
in his or her service.
Allows for intensive reading interventions by a qualified private or public
prekindergarten provider consisting of 4 hours of instruction per day, totaling 140
hours; subject to an appropriation in the General Appropriations Act.
VI. Technical Deficiencies:
None.
VII. Related Issues:
The bill establishes in ss. 220.1878 and 624.51058, F.S., credits for corporate and insurance
premium taxes. However, unlike other tax credits that are enacted on January 1, 2024, these
taxes are enacted on January 1, 2023. The bill may be amended to reconcile the dates for
enactment of the tax credits, or provide the Department of Revenue with emergency rulemaking
authority for these sections.
87
VIII. Statutes Affected:
This bill substantially amends the following sections of the Florida Statutes: 39.101, 170.201,
220.19, 402.302, 402.305, 402.3115, 402.316, 627.70161, 1002.55, 1002.61, 1002.67, 1002.68,
1002.71, 1002.82, 1002.83, 1002.89, 1002.945, 1002.95, 1008.25, 1002.57, and 1002.59.
This bill creates the following sections of the Florida Statutes: 211.0254, 212.1835, 220.1878,
561.1214, and 624.51058.
IX. Additional Information:
A. Committee Substitute – Statement of Changes:
(Summarizing differences between the Committee Substitute and the prior version of the bill.)
None.
B. Amendments:
None.
This Senate Bill Analysis does not reflect the intent or official position of the bill’s introducer or the Florida Senate.
87
Florida Department of Revenue, 2023 Agency Analysis of SB 990 (Mar. 7, 2023).