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 Children, Families, and Elder Affairs BILL: SB 738 INTRODUCER: Senator Burton SUBJECT: Child Care and Early Learning Providers DATE: March 11, 2025 ANALYST STAFF DIRECTOR REFERENCE ACTION 1. Rao Tuszynski CF Pre-meeting 2. AHS 3. FP I. Summary: Florida law directs the Department of Children and Families (DCF) to create minimum standards for the licensure of child care facilities. SB 738 makes several changes to these requirements for child care. Specifically, the bill: • Directs the DCF to codify classification levels for violations relating to the health and safety of a child. • Provides for a 45-day provisional-hire status upon a delayed background screening of child care personnel. • Adjusts training requirements relating to the introductory course child care personnel must take and cardiopulmonary resuscitation training. • Limits periodic health examinations to child care facility drivers. • Removes language that requires facilities to provide parents with pagers or beepers during drop-in child care. • Removes the requirement for child care facilities to provide parents with information about the influenza virus and the dangers of a distracted adult leaving a child in a vehicle. • Removes the requirement for child care facilities to develop a program to assist in preventing and avoiding physical and mental abuse. • Removes the requirement for the DCF to develop standards for specialized child care facilities for the care of mildly ill children. The bill allows child care facilities to receive abbreviated inspections, upon meeting certain conditions. Additionally, the bill prohibits the cancelation, denial, or nonrenewal of residential property insurance solely on the basis that certain child care services are provided at the residence. The bill requires the county commissions of the counties that elect to license their own child care facilities to annually affirm this decision to designate a local licensing agency. REVISED: BILL: SB 738 Page 2 The bill exempts preschools from special assessments levied by municipalities. Further, the bill provides an exemption from licensing, except for the screening of personnel, for a child care facility that solely provides child care to certain eligible children. The bill has an indeterminate, but significant, negative fiscal impact on state government. See Section V. Fiscal Impact Statement. The bill provides an effective date of July 1, 2025. II. Present Situation: The present situation is presented in Section III under the Effect of Proposed Changes. III. Effect of Proposed Changes: Child Care Program Licensure The Florida Department of Children and Families (DCF) provides licensing requirements for child-care programs in the state. 1 The program is accountable for the statewide licensure of Florida’s child-care facilities 2 , specialized child-care facilities for the care of mildly ill children 3 , large family child-care homes 4 and licensure or registration of family day care homes. 5 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. The DCF ensures that licensing requirements are met through on-going inspections of child-care facilities and homes. 6 1 Florida Department of Children and Families, About Child Care Licensure, available at: https://www.myflfamilies.com/services/child-family/child-care/about-child-care- licensure#:~:text=The%20program%20is%20accountable%20for%20the%20statewide%20licensure,licensure%20or%20regi stration%20of%20family%20day%20care%20homes. (last visited 3/4/25). 2 Section 402.302(2), F.S. defines a “child care facility” as any child care center or child care arrangement which provides child care for more than five children unrelated to the operator and which receives a payment, fee, or grant for any of the children receiving care, wherever operated, and whether or not operated for profit. Certain entities are excluded from the definition of a child care facility. See Section 402.302(2), F.S. 3 The term “Specialized Child Care Facilities for the Care for Mildly Ill Children” refers to a child care facility that provides child care for more than five mildly ill children unrelated to the operator, and receives a payment, fee, or grant for any of the children receiving care. Specialized child care facilities may provide care for mildly ill children in a facility specialized for this purpose or as a component of other child care services offered in a distinct and separate part of a regularly licensed child care facility. See 65C-25.001, F.A.C. 4 A “large family child care home” must have operated as a licensed family day care home for 2 years, with an operator who has had a child development associate credential or its equivalent for 1 year, before seeking licensure as a large family child care home. See Section 402.302(11), F.S. 5 A “family day care home” regularly provides child care for children from at least two unrelated families and receives a payment, fee, or grant for any of the children receiving care, whether or not operated for profit. Family day care homes are restricted in the number of children it can provide child care to, based on the ages of the group of children in the family day care home. See Section 402.302(8), F.S. 6 Id. BILL: SB 738 Page 3 Local Licensing Agencies Present Situation Florida law allows any county whose licensing standards meet or exceed the state minimum standards to designate a local licensing agency to license child care facilities, rather than DCF licensure. 7 Counties that do not choose to administer their own child-care licensing programs are licensed by DCF. 8 Currently, DCF child-care licensing staff are responsible for the inspection and licensure of child-care facilities and homes in 63 out of 67 counties. 9 Local licensing agencies regulate child care programs in the following four counties: Broward, Palm Beach, Pinellas, and Sarasota. 10 The following table displays the number of providers the DCF and local licensing agencies regulate: 11 Statewide Child Care Facility Licensure as of January 2025 DCF Local Licensing Agency Statewide Facilities 7,697 1,1820 9,517 Family Day Care Homes 1,601 433 2,034 Large Family Child Care Homes 330 78 408 Mildly Ill Facilities 1 0 1 Total 9,629 2,331 11,960 Effect of the Proposed Language The bill amends s. 402.306, F.S., to require the county commission to annually affirm by majority vote the decision to designate a local agency for child care licensing. State Minimum Standards for Child Care Facilities Present Situation Current law requires minimum standards for child care personnel that include minimum requirements as to: 12 • Good moral character based on level 2 background screening. 7 Section 402.306, F.S. 8 Florida Department of Children and Families, About Child Care Licensure, available at: https://www.myflfamilies.com/services/child-family/child-care/about-child-care- licensure#:~:text=The%20program%20is%20accountable%20for%20the%20statewide%20licensure,licensure%20or%20regi stration%20of%20family%20day%20care%20homes. (last visited 3/4/25). 9 Florida Department of Children and Families, About Child Care Licensure, available at: https://www.myflfamilies.com/services/child-family/child-care/about-child-care- licensure#:~:text=The%20program%20is%20accountable%20for%20the%20statewide%20licensure,licensure%20or%20regi stration%20of%20family%20day%20care%20homes. (last visited 3/4/25). 10 Florida Department of Children and Families, 2025 Agency Analysis, p. 2 (on file with the Children, Families, and Elder Affairs Committee). 11 Id., p. 3. 12 Section 402.305, F.S. BILL: SB 738 Page 4 • Fingerprint submission. • Exemptions from disqualification from working with children or the developmentally disabled. • Minimum age requirements. • Minimum training requirements. Periodic health examinations. • Credentials for child care facility directors. Background Screening: The DCF establishes minimum standards for child care personnel that include minimum requirements for good moral character based upon background screening. 13 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 five years. 14 A level 2 background screening is a multi-agency effort and includes the Florida Department of Law Enforcement and the Federal Bureau of Investigation. 15 While background screenings typically take a few business days, the request for additional out-of-state documents, incomplete information, or variations in agency processing times may delay the process of the background screening and delay employment of child care personnel. 16 Training: The DCF also establishes minimum training requirements for child care personnel. The DCF has adopted the Child Care Facility Handbook to describe these requirements in detail. 17 Child care personnel must successfully complete 40 hours of child care training and pass competency examinations offered by the DCF. 18 This training must commence within 90 days of employment, and be completed within one year after the date on which the training began. 19 The training courses cover the following topic areas: 20 • 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. 13 Section 402.302(15), F.S. 14 Section 402.305(2), F.S. 15 Upon the initiation of a background screening, fingerprints are sent to the Florida Department of Law Enforcement (FDLE) and the Federal Bureau of Investigations (FBI). Results from FDLE and the FBI are typically available within 24 to 48 hours; however, FDLE standards require results within 72 hours. See Florida Department of Children and Families, 2025 Agency Analysis, p. 6 (on file with the Children, Families, and Elder Affairs Committee). 16 Id. 17 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 (last visited 3/5/25). 18 Id. 19 Section 402.305(2), F.S. 20 Section 402.305(2), F.S. BILL: SB 738 Page 5 • Specialized areas, including computer technology for professional and classroom use and early literacy and language development of children from birth to five 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. Minimum Licensing Standards Florida law has extensive licensing requirements for child care facilities that address the health, sanitation, safety, and adequate physical surroundings for all children in child care; the health and nutrition of all children in child care; and the child development needs of all children in child care. 21 Sanitation and Safety: Current law includes minimum standards for sanitary and safety conditions that include cardiopulmonary resuscitation (CPR). At least one staff person trained in CPR must be present at all times the children are present. 22 There must be current documentation of course completion to be in compliance with Florida law. 23 Additionally, minimum safety standards require a parent whose child is in drop-in child care to receive a communications system such as a pager or beeper to ensure the child can be immediately returned to the parent. 24 Information: Each year, child care facilities must provide parents of children enrolled in the facility detailed information regarding: 25 • The causes, symptoms, and transmission of the influenza virus and the importance of immunizing their children. • 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. Written Plans: Each child care facility is required to implement a written plan for the daily provision of varied activities and active and quiet play opportunities appropriate to the age of the child. 26 Specialized Facilities for Mildly Ill Children: The DCF oversees and implements minimum standards for specialized child care facilities for the care of mildly ill children. 27 The term mildly ill children refers to children with short term illness or symptoms of an illness or disability, provided either as an exclusive service in a center specialized for this purpose, or as a component 21 Section 402.305(1), F.S. 22 Section 402.305(7), F.S. 23 Id. 24 Drop-in child care refers to child care provided occasionally in a child care facility in a shopping mall or business establishment where a child is in care for no more than a 4-hour period and the parent remains on the premises of the shopping mall or business establishment at all times. See Section 402.302(6), F.S. 25 Section 402.305(9), F.S. 26 Section 402.305(13), F.S. 27 Section 402.305(17), F.S. BILL: SB 738 Page 6 of other child care services offered in a regularly licensed child care facility. 28 The DCF requires child care facilities to have one licensed health caregiver, at a minimum, that physically assesses the child; provides ongoing daily oversight; makes decisions on the exclusion of an ineligible child; and be present at the facility at all times during the hours of operation. 29 Violations If a child care facility is in noncompliance with licensing standards, Florida law allows the DCF to administer disciplinary sanctions for violations. 30 The DCF utilizes three classification levels for violations of licensing standards. 31 • Class 1 violations are the most serious in nature, pose an imminent threat to a child include abuse or neglect and which could or does result in death or serious harm to the health, safety, and well-being of a child. • Class 2 violations are less serious in nature than Class 1 violations and could be anticipated to pose a threat to the health, safety, or well-being of a child, although the threat is not imminent. • Class 3 violations are less serious in nature than Class 1 or Class 2 violations and pose a low potential for harm to children. The following table shows the number of violations recorded in Fiscal Year 2023-24. 32 Violations in Fiscal Year 2023-24 Classification Number of Violations Class 1 145 Class 2 3,908 Class 3 12,352 Total 16,405 A majority (75%) of the violations recorded in FY 2023-24 were classified as Class 3 violations. Specifically, 803 programs accumulated over five Class 3 violations during the fiscal year. 33 Effect of Proposed Changes The bill amends s. 402.305, F.S. to modify the minimum licensing standards child care facilities must follow. Specifically, the bill: • Allows the Department of Children and Families (DCF) to create up to three classification levels of violations of licensing standards that relate to the health and safety of a child. The bill clarifies a class three violation as the least serious in nature and must be the same incident of noncompliance that occurs at least three times within a two year period. 28 Florida Department of Children and Families, 2025 Agency Analysis, p. 6 (on file with the Children, Families, and Elder Affairs Committee). 29 65C-25.002, F.A.C. 30 Section 402.310, F.S. 31 Florida Department of Children and Families, 2025 Agency Analysis, p. 3 (on file with the Children, Families, and Elder Affairs Committee). 32 Id. 33 Id. BILL: SB 738 Page 7 • Requires the DCF to complete the background screening for child care personnel and provide the results to the child care facility within three business days. o Upon failure to do so, the bill requires the DCF to issue the current or prospective child care personnel a 45-day provisional-hire status while all information is being requested and the DCF is awaiting results, unless the DCF believes a disqualifying factor may exist. o 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. • Requires the 40-clock-hour introductory course in child care that must be taken by child care personnel to cover specified topics areas. • Removes the requirement for the introductory course in child care to stress an interdisciplinary approach to the study of children. • Limits periodic health examinations to child care facility drivers. • Requires that the required training in cardiopulmonary resuscitation (CPR) must be in-person training. • Removes language that requires facilities that provide drop-in child care to provide pagers or beepers to parents. • Removes the requirement for child care facilities to provide parents with information about the influenza virus and the influenza vaccine during the months of August and September. • Removes the requirement for child care facilities to provide parents with information on the dangers of a distracted adult leaving a child in a vehicle, and resources for avoiding this occurrence, during the months of April and September. • Removes the requirement for a program to be implemented periodically by a child care facility to assist in preventing and avoiding physical and mental abuse. • Removes a requirement for the DCF in conjunction with the Department of Health to develop standards for specialized child care facilities for the care of mildly ill children. Abbreviated Inspections for Child Care Facilities Present Situation The DCF and local licensing agencies are tasked with eliminating duplicative and unnecessary inspections of child care facilities. 34 Child care facilities that have had no Class 1 or Class 2 deficiencies for at least two consecutive years are eligible to receive an abbreviated inspection, rather than a full routine inspection. 35 Abbreviated inspections include elements identified by the DCF and local licensing agency that ensure a child care facility continues to provide quality care and programming. 36 In 2022, the DCF expanded the providers eligible for abbreviated inspections to include family day care homes and large family child care homes that meet the following criteria: 37 34 Section 402.3115, F.S. 35 Section 402.3115, F.S.; and Florida Department of Children and Families, 2025 Agency Analysis, p. 6 (on file with the Children, Families, and Elder Affairs Committee). 36 Id. 37 Florida Department of Children and Families, 2025 Agency Analysis, p. 6 (on file with the Children, Families, and Elder Affairs Committee). BILL: SB 738 Page 8 • Have been licensed for at least two consecutive years. • Have had no Class 1 violations or Class 2 violations for at least two consecutive years. • Have received at least two full onsite renewals in the most recent two years. • Have no current uncorrected violations. • Have no open regulatory or active child protective services investigations. The following table shows the number of inspections that were abbreviated in Fiscal Year 2023- 24. 38 Abbreviated Inspections of Child Care Facilities FY 2023-24 Total Inspections Statewide 33,717 Abbreviated Inspections 2,044 % of Abbreviated Inspections 6% Effect of Proposed Changes The bill amends s. 402.3115, F.S. to codify current administrative rule that allows for child care facilities to receive an abbreviated inspection upon meeting all of the following conditions: • Have been licensed for at least two consecutive years. • Have not had a Class 1 deficiency for at least two consecutive years. • Have not had more than three of the same Class 2 deficiencies for at least two consecutive years. • Have received at least two full onsite renewal inspections in the most recent two years. • Do not have any current uncorrected violations. • Do not have any open regulatory complains or active child protective services investigations. The bill removes local governmental agencies’ ability to identify elements included in the abbreviated inspection and leaves the responsibility solely to the DCF. The bill requires the DCF to review and update the elements included in the abbreviated inspection every five years, and revise the overall plan as necessary. Child Care Licensure Exemptions Present Situation Florida exempts child care facilities that are an integral part of a church or parochial school which is accredited by, or is a member of, an organization that publishes and requires compliance with its standards for health, safety, and sanitation from the child care licensure requirements. 39 However, child care facilities that are exempt from licensure must meet the child care personnel background screening requirements. 40 If the child care facility desires licensure 38 Id., p. 7. 39 Section 402.316, F.S. 40 Id. BILL: SB 738 Page 9 by the DCF, the facility must notify DCF to obtain a license. 41 Once licensed by the DCF, the facility cannot withdraw its licensure and continue to operate. 42 Any county or city with state or local child care licensing programs that were in existence on July 1, 1974, are authorized to continue to license the child care facilities covered under such programs until and unless the licensing agency makes a determination to exempt the child care facility from licensure. 43 Effect of Proposed Language The bill amends s. 402.316, F.S. to provide an exemption from licensing, except for the screening of personnel, for a child care facility that solely provides child care to eligible children. The bill utilizes the same definition of eligible child that is used in s. 402.261, F.S., which refers to the child or grandchild of an employee of a taxpayer, if such employee is the child’s or grandchild’s caregiver. Insurance and Child Care Homes Present Situation Florida law 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 fail to be renewed solely on the basis of the family day care services at the residence. 44 The potential liability of residential property insurers is substantially increased by the rendition of child care services on the premises. Florida law excludes contractual liabilities that arise in connection with the operation of a family day care home from residential property insurance policies unless they are specifically included in such coverage. 45 Current law does not extend the insurance protections to large family day care homes. Effect of Proposed Language The bill amends s. 627.70161, F.S., to include large family child care homes in existing law that prevents the cancelation, denial, or nonrenewal of residential property insurance coverage solely on the basis of the day care or child care services at the residence. The bill excludes contractual liabilities that arise from the operation of the family day care home or large family child care homes in residential property insurance policies unless they are specifically included in the coverage. The bill defines “large family child care home,” which is consistent with the definition provided in s. 402.3131, F.S. 41 Section 402.316(3), F.S. 42 Id. 43 Section 402.316, F.S. 44 Section 627.70161, F.S. 45 Section 627.70161, F.S. BILL: SB 738 Page 10 Special Assessments Present Situation There are 67 county governments 46 and over 400 municipal governments 47 in the state of Florida. 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. 48 Small municipalities with a population of fewer than 100 persons may use special assessments to fund special security and crime prevention services and facilities. 49 Florida law exempts properties with religious affiliations from special assessments levied by municipalities. Currently, property owned or occupied by a religious institution is exempt from special assessments if that property: 50 • Is used as a place of worship or education; • Is used by a public or private elementary, middle, or high school; or • Is used by a governmentally financed, insured, or subsidized housing facility that is used primarily for persons who are elderly or disabled. As of 2023, there were over 8,500 licensed preschools in Florida. 51 Effect of Proposed Changes The bill amends s. 170.201, F.S., to include properties owned or occupied by a religious institution and used by a public or private preschool in the exemption from special assessments levied by local governments and municipalities. The bill defines a preschool as a child care facility licensed under s. 402.305, F.S. Other The bill updates cross references and makes other conforming changes to align statute with the substantive changes of the language. The bill provides an effective date of July 1, 2025. 46 Florida Department of State, County Governments, available at: https://dos.fl.gov/library-archives/research/florida- information/government/local-resources/fl-counties/ (last visited 3/4/25). 47 Florida Department of State, Florida Cities, available at: https://dos.fl.gov/library-archives/research/florida- information/government/local-resources/fl-cities/ (last visited 3/4/25). 48 Section 170.201(1), F.S. 49 Id. 50 Section 170.201(2), F.S. 51 Department of Children and Families, Child Care Provider List 11-1-2024, available at: https://www.myflfamilies.com/sites/default/files/2023-11/Public%20-%202023-11-1%20-%20Statewide.pdf (last visited 3/4/25). BILL: SB 738 Page 11 IV. Constitutional Issues: A. Municipality/County Mandates Restrictions: Article VII, s. 18(b) of the Florida Constitution provides that, except upon the approval of each house of the Legislature by a two-thirds vote of the membership, the Legislature may not enact, amend, or repeal any general law if the anticipated effect of doing so would be to reduce the authority that municipalities or counties have to raise revenue in the aggregate, as such authority existed on February 1, 1989. However, the mandates requirements do not apply to laws having an insignificant impact, 52 which is $2.3 million or less for Fiscal Year 2025-2026. 53 The bill, in part, limits the authority to collect special assessments on preschools. The Revenue Estimated Conference determined that this provision in a previous version of this bill [SB 820 (2024)] would reduce the authority of local governments to raise revenue by $4.4 million in Fiscal Year 2024-2025. Therefore, this bill may be a mandate requiring a two-thirds vote of the membership of each house of the Legislature for approval. B. Public Records/Open Meetings Issues: None. C. Trust Funds Restrictions: None. D. State Tax or Fee Increases: Not applicable. The bill does not impose or raise a state tax or fee which would be subject to the provisions of Article VII, s. 19 of the Florida Constitution. E. Other Constitutional Issues: None Identified. V. Fiscal Impact Statement: A. Tax/Fee Issues: None. 52 FLA. CONST. art. VII, s. 18(d). An insignificant fiscal impact is the amount not greater than the average statewide population for the applicable fiscal year multiplied by $0.10. See Florida Senate Committee on Community Affairs, Interim Report 2012-115: Insignificant Impact, (September 2011), available at http://www.flsenate.gov/PublishedContent/Session/2012/InterimReports/2012-115ca.pdf (last visited March 8, 2025). 53 Based on the Demographic Estimating Conference’s estimated population adopted on April 1, 2024; Florida Population Estimates by County and Municipality Estimate, available at: https://edr.state.fl.us/Content/population- demographics/data/2024_Pop_Estimates.pdf (last visited March 8, 2025). BILL: SB 738 Page 12 B. Private Sector Impact: None. C. Government Sector Impact: Child Care Facility Licensure The DCF reports the potential of an indeterminate but significant negative fiscal impact if the DCF must assume the responsibilities of child care licensure in a county in which the county commission does not confirm the current local licensing agency. The DCF would then have to assume the responsibility of and administer child care licensing in that county. This would require the establishment of a field office, as well as the recruitment and training of licensing staff. Additional funding and FTEs would be needed. 54 VI. Technical Deficiencies: None. VII. Related Issues: None. VIII. Statutes Affected: This bill substantially amends the following sections of the Florida Statutes: 170.201, 402.305, 402.306, 402.3115, 402.316, 627.70161, and 1002.59 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. 54 Florida Department of Children and Families, 2025 Agency Analysis, p. 7 (on file with the Children, Families, and Elder Affairs Committee).