*HB1102.2* Reprinted January 30, 2024 HOUSE BILL No. 1102 _____ DIGEST OF HB 1102 (Updated January 29, 2024 2:59 pm - DI 148) Citations Affected: IC 12-7; IC 12-17.2; IC 36-7. Synopsis: Child care. Revises the definition of "child care home". Provides that certain child care programs are exempt from licensure. Amends certain licensing requirements for a class II child care home and a child care center. Provides that certain child care providers are eligible for voucher payments. Allows certain child care programs at schools to provide services to business employees' children when the business enters into a contract with the school. Effective: July 1, 2024. Heine, Snow, Barrett, DeVon January 8, 2024, read first time and referred to Committee on Family, Children and Human Affairs. January 25, 2024, amended, reported — Do Pass. January 29, 2024, read second time, amended, ordered engrossed. HB 1102—LS 6537/DI 148 Reprinted January 30, 2024 Second Regular Session of the 123rd General Assembly (2024) PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in this style type. Additions: Whenever a new statutory provision is being enacted (or a new constitutional provision adopted), the text of the new provision will appear in this style type. Also, the word NEW will appear in that style type in the introductory clause of each SECTION that adds a new provision to the Indiana Code or the Indiana Constitution. Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts between statutes enacted by the 2023 Regular Session of the General Assembly. HOUSE BILL No. 1102 A BILL FOR AN ACT to amend the Indiana Code concerning human services. Be it enacted by the General Assembly of the State of Indiana: 1 SECTION 1. IC 12-7-2-28.6, AS AMENDED BY P.L.124-2007, 2 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE 3 JULY 1, 2024]: Sec. 28.6. (a) Except as provided in subsection (c), 4 "child care home", for purposes of IC 12-17.2, means a residential 5 structure in which at least six (6) eight (8) children (not including the 6 children for whom the provider is a parent, stepparent, guardian, 7 custodian, or other relative) or any child who is at least fourteen (14) 8 years of age and does not require child care) at any time receive child 9 care from a provider: 10 (1) while unattended by a parent, legal guardian, or custodian; 11 (2) for regular compensation; and 12 (3) for more than four (4) six (6) hours per day but less than 13 twenty-four (24) hours in each of per day for ten (10) 14 consecutive days, per year, excluding intervening not including 15 Saturdays, Sundays, and holidays. 16 (b) The term includes: 17 (1) a class I child care home; and HB 1102—LS 6537/DI 148 2 1 (2) a class II child care home. 2 (c) A child who is: 3 (1) a relative of a provider; 4 (2) under the custody or guardianship of a provider; or 5 (3) at least fourteen (14) years of age and does not require 6 child care; 7 is not a child described under subsection (a). 8 SECTION 2. IC 12-17.2-1-1, AS AMENDED BY P.L.56-2023, 9 SECTION 116, IS AMENDED TO READ AS FOLLOWS 10 [EFFECTIVE JULY 1, 2024]: Sec. 1. Except as provided in 11 IC 12-17.2-3.5, this article does not apply to the following: 12 (1) A child care center or child care home licensed or operated by 13 any of the following: 14 (A) Programs for children in grades kindergarten through 12 15 that are operated under the authority of the department of 16 education or that are operated with the assistance of the 17 department of education. 18 (B) The division of mental health and addiction. 19 (C) The Indiana department of health. 20 (D) The department of correction. 21 (2) A person who provides child care in the person's 22 residential structure, if the person: 23 (A) does not receive regular compensation for child care; 24 (B) cares only for children who are related to the provider; 25 (C) cares for less than eight (8) children, not including a 26 child who is: 27 (i) a relative of a provider; 28 (ii) under the custody or guardianship of a provider; or 29 (iii) at least fourteen (14) years of age and does not 30 require child care; or 31 (D) provides child care for less than six (6) hours per day, 32 but not more than thirty (30) hours per week. 33 (2) (3) A county jail or detention center. 34 SECTION 3. IC 12-17.2-2-8, AS AMENDED BY P.L.81-2022, 35 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE 36 JULY 1, 2024]: Sec. 8. The division shall exempt from licensure the 37 following programs: 38 (1) A program for children enrolled in grades kindergarten 39 through 12 that is operated by the department of education or a 40 public or private school. 41 (2) A program for children who become at least three (3) years of 42 age as of December 1 of a particular school year (as defined in HB 1102—LS 6537/DI 148 3 1 IC 20-18-2-17) that is operated by the department of education or 2 a public or private school. 3 (3) A nonresidential program for a child that provides child care 4 for less than four (4) hours a day. 5 (4) A recreation program for children that operates for not more 6 than ninety (90) days in a calendar year. 7 (5) A program whose primary purpose is to provide social, 8 recreational, or religious activities for school age children, such 9 as scouting, boys club, girls club, sports, or the arts. 10 (6) A program operated to serve migrant children that: 11 (A) provides services for children from migrant worker 12 families; and 13 (B) is operated during a single period of less than one hundred 14 twenty (120) consecutive days during a calendar year. 15 (7) A child care ministry registered under IC 12-17.2-6. 16 (8) A child care home if the provider 17 (A) does not receive regular compensation; 18 (B) cares only for children who are related to the provider; 19 (C) cares for less than six (6) children, not including children 20 for whom the provider is a parent, stepparent, guardian, 21 custodian, or other relative; or 22 (D) operates to serve migrant children. 23 (9) A child care program operated by a public or private school 24 that: 25 (A) provides day care on the school premises for children of 26 students or employees of schools in the school corporation in 27 which the public or private school is located; 28 (B) complies with health, safety, and sanitation standards as 29 determined by the division under section 4 of this chapter for 30 child care centers or in accordance with a variance or waiver 31 of a rule governing child care centers approved by the division 32 under section 10 of this chapter; and 33 (C) substantially complies with the fire and life safety rules as 34 determined by the state fire marshal under rules adopted by the 35 division under section 4 of this chapter for child care centers 36 or in accordance with a variance or waiver of a rule governing 37 child care centers approved by the division under section 10 of 38 this chapter. 39 (10) A school age child care program (commonly referred to as a 40 latch key program) established under IC 20-26-5-2 that is 41 operated by: 42 (A) the department of education; HB 1102—LS 6537/DI 148 4 1 (B) a public or private school; or 2 (C) a public or private organization under a written contract 3 with: 4 (i) the department of education; or 5 (ii) a public or private school. 6 (11) A child care program that: 7 (A) is operated by a public or private organization under a 8 contract with a public or private school; 9 (B) serves children who are enrolled in the public or private 10 school in: 11 (i) grades kindergarten through 12; or 12 (ii) a preschool program offered by a public or private 13 school as described in this subdivision; and 14 (C) serves children who are: 15 (i) attending school through remote or e-learning due to a 16 disaster emergency declared under IC 10-14-3-12 or 17 IC 10-14-3-29; or 18 (ii) participating in a learning recovery program that 19 administers an assessment to measure student learning loss 20 and provides Indiana academic standards aligned 21 instruction. 22 (12) An educational program: 23 (A) consisting of a group of not more than ten (10) students 24 who attend the educational program in lieu of attending 25 prekindergarten or kindergarten through grade 12 at a public 26 or private school; 27 (B) whose students meet in a single classroom in person or 28 outside a classroom and which may include mixed age level 29 groupings; and 30 (C) that is under the supervision of a teacher or tutor. 31 (13) If located in the same public or private school building: 32 (A) a preschool program that is operated by the public or 33 private school; and 34 (B) either or both of the following: 35 (i) A child care program described in subdivision (9). 36 (ii) A school age child care program described in 37 subdivision (10). 38 (14) A child care program operated by a public or private 39 school that: 40 (A) provides child care for children of employees of a 41 business or organization with which the school has entered 42 into a contract to provide services; HB 1102—LS 6537/DI 148 5 1 (B) complies with health, safety, and sanitation standards 2 as determined by the division under section 4 of this 3 chapter for child care centers or in accordance with a 4 variance or waiver of a rule governing child care centers 5 approved by the division under section 10 of this chapter; 6 and 7 (C) substantially complies with the fire and life safety rules 8 as determined by the state fire marshal under rules 9 adopted by the division under section 4 of this chapter for 10 child care centers or in accordance with a variance or 11 waiver of a rule governing child care centers approved by 12 the division under section 10 of this chapter. 13 SECTION 4. IC 12-17.2-3.5-3.5 IS ADDED TO THE INDIANA 14 CODE AS A NEW SECTION TO READ AS FOLLOWS 15 [EFFECTIVE JULY 1, 2024]: Sec. 3.5. A child care provider is 16 eligible to receive a voucher payment if the provider complies with 17 this chapter and: 18 (1) does not receive regular compensation; 19 (2) cares only for children who are related to the provider; 20 (3) cares for less than eight (8) children, not including 21 children for whom the provider is a parent, stepparent, 22 guardian, custodian, or other relative; or 23 (4) operates to serve migrant children. 24 SECTION 5. IC 12-17.2-4-12 IS AMENDED TO READ AS 25 FOLLOWS [EFFECTIVE JULY 1, 2024]: Sec. 12. (a) A license for a 26 child care center expires two (2) three (3) years after the date of 27 issuance, unless revoked, modified to a probationary or suspended 28 status, or voluntarily returned. 29 (b) A license issued under this chapter: 30 (1) is not transferable; 31 (2) applies only to the licensee and the location stated in the 32 application; and 33 (3) remains the property of the division. 34 (c) A current license shall be publicly displayed. 35 (d) When a licensee submits a timely application for renewal, the 36 current license shall remain in effect until the division issues a license 37 or denies the application. 38 (e) A licensee shall publicly display and make available, as a 39 handout, written documentation of: 40 (1) any changes in the status of the licensee's license; 41 (2) a telephone number and an Internet site where information 42 may be obtained from the division concerning: HB 1102—LS 6537/DI 148 6 1 (A) the current status of the licensee's license; 2 (B) any complaints filed with the division concerning the 3 licensee; and 4 (C) violations of this article by the licensee; and 5 (3) a telephone number of the office of the Indiana child care 6 resource and referral program of the county in which the child 7 care center is located. 8 SECTION 6. IC 12-17.2-5-3.7, AS ADDED BY P.L.53-2018, 9 SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE 10 JULY 1, 2024]: Sec. 3.7. (a) A licensee that cares for children who are 11 less than twelve (12) months of age shall: 12 (1) complete the training course provided or approved by the 13 division under IC 12-17.2-2-1(10) concerning safe sleeping 14 practices as required by section 6.3(a)(3) or 6.5(a)(9) 6.5(9) of 15 this chapter, whichever is applicable; and 16 (2) ensure that all caregivers of children who are less than twelve 17 (12) months of age follow safe sleeping practices. 18 (b) If a licensee violates subsection (a), the division may do the 19 following with respect to each violation determined during an 20 inspection of the child care home: 21 (1) On the first inspection during which a violation is determined 22 during a licensure period, issue a formal warning letter stating the 23 division's intent to take administrative action and impose a civil 24 penalty for any future violation. 25 (2) On the second inspection during which a violation is 26 determined during a licensure period, impose a civil penalty of 27 fifty dollars ($50) for each violation determined during the 28 inspection. 29 (3) On the third inspection during which a violation is determined 30 during a licensure period, impose a civil penalty of seventy-five 31 dollars ($75) for each violation determined during the inspection. 32 (4) On the fourth inspection during which a violation is 33 determined during a licensure period: 34 (A) place the child care home's license on probation for not 35 more than six (6) months; and 36 (B) impose a civil penalty of one hundred dollars ($100) for 37 each violation determined during the inspection. 38 (5) On the fifth inspection during which a violation is determined 39 during a licensure period: 40 (A) suspend or revoke the child care home's license for one (1) 41 year; and 42 (B) impose a civil penalty of two hundred fifty dollars ($250) HB 1102—LS 6537/DI 148 7 1 for each violation determined during the inspection. 2 (c) The division shall send to the licensee written notice: 3 (1) of an action taken under subsection (b), specifying the reason 4 for the action and amount of any monetary civil penalty; and 5 (2) that failure to pay any monetary civil penalty may result in 6 revocation of the child care home's license for not more than two 7 (2) years. 8 (d) The division shall deposit all civil penalties collected under this 9 section in the division of family resources child care fund established 10 by IC 12-17.2-2-3. 11 (e) In addition to the actions described in subsection (b), the 12 division may seek further disciplinary action provided for under this 13 article, as determined by the director. 14 SECTION 7. IC 12-17.2-5-6.5, AS AMENDED BY P.L.74-2022, 15 SECTION 12, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE 16 JULY 1, 2024]: Sec. 6.5. (a) To qualify for a license to operate a class 17 II child care home under this chapter, a person must do the following: 18 (1) Provide all child care services on the first story of the child 19 care home unless the class II child care home meets the 20 exceptions to the first story requirements contained in the Indiana 21 building code adopted by the fire prevention and building safety 22 commission in effect at the time the class II child care home 23 provider applies for licensure. 24 (2) Provide a smoke detection system that is: 25 (A) hard wired to the building's electrical system; and 26 (B) wired in a manner that activates all of the detector devices 27 in the building when one (1) detector device is activated. 28 (3) Provide a fire extinguisher in each room that is used to 29 provide child care services. 30 (4) Meet: 31 (A) the exit requirements for an E-3 building occupancy 32 classification under the Indiana building code adopted by the 33 fire prevention and building safety commission, except for any 34 illumination requirements, in effect at the time the class II 35 child care home provider initially applies for licensure; and 36 (B) the illumination requirements established in section 37 6.3(b)(3) of this chapter. 38 (5) Provide a minimum of thirty-five (35) square feet for each 39 child. 40 (6) Conduct fire drills required under article 37 of the Indiana fire 41 prevention code adopted by the fire prevention and building 42 safety commission in effect at the time the class II child care HB 1102—LS 6537/DI 148 8 1 home provider applies for licensure. 2 (7) Apply for a license before July 1, 1996, or after June 30, 2001. 3 (8) Comply with rules adopted by the division of family resources 4 for class II child care homes. 5 (9) Complete the training course taught or approved by the 6 division concerning safe sleeping practices for a child within the 7 person's care as described in IC 12-17.2-2-1(10). 8 (b) To qualify for a license to operate a class II child care home 9 under this chapter, a person, before applying for the license, must have: 10 (1) a class I child care home license; or 11 (2) at least one (1) year of experience as a caregiver in a child 12 care home or child care center. 13 SECTION 8. IC 36-7-4-1108, AS AMENDED BY P.L.145-2006, 14 SECTION 374, IS AMENDED TO READ AS FOLLOWS 15 [EFFECTIVE JULY 1, 2024]: Sec. 1108. (a) This section applies only 16 to a child care home that is used as the primary residence of the person 17 who operates the child care home regardless of whether the child 18 care home meets the definition set forth in IC 12-7-2-28.6. 19 (b) As used in this section, "child care home" has the meaning set 20 forth in IC 12-7-2-28.6. 21 (c) (b) Except as provided in subsection (e), A zoning ordinance 22 may not do any of the following: 23 (1) Exclude a child care home from a residential area solely 24 because the child care home is a business. 25 (2) Impose limits on the number of children that may be served by 26 a child care home at any one (1) time that vary from the limits set 27 forth in IC 12-7-2-33.7 and IC 12-7-2-33.8. 28 (3) Impose requirements or restrictions upon child care homes 29 that vary from the requirements and restrictions imposed upon 30 child care homes by rules adopted by the division of family 31 resources or the fire prevention and building safety commission. 32 (d) (c) Notwithstanding subsection (c), (b), a child care home may 33 be required to meet the same: 34 (1) zoning requirements; 35 (2) developmental standards; and 36 (3) building codes; 37 that apply to other residential structures in the same residential district 38 or classification as the child care home. 39 (e) A zoning ordinance: 40 (1) that is in effect on July 1, 1993; and 41 (2) that: 42 (A) excludes a child care home from a residential area solely HB 1102—LS 6537/DI 148 9 1 because the child care home is a business; 2 (B) imposes limits on the number of children that may be 3 served by a child care home at any one (1) time that vary from 4 the limits set forth in IC 12-7-2-33.7 and IC 12-7-2-33.8; or 5 (C) imposes requirements or restrictions upon child care 6 homes that vary from the requirements and restrictions 7 imposed upon child care homes by rules adopted by the 8 division of family resources or the fire prevention and building 9 safety commission; 10 is not subject to subsection (c) until July 1, 1994. HB 1102—LS 6537/DI 148 10 COMMITTEE REPORT Mr. Speaker: Your Committee on Family, Children and Human Affairs, to which was referred House Bill 1102, has had the same under consideration and begs leave to report the same back to the House with the recommendation that said bill be amended as follows: Delete everything after the enacting clause and insert the following: (SEE TEXT OF BILL) and when so amended that said bill do pass. (Reference is to HB 1102 as introduced.) DEVON Committee Vote: yeas 8, nays 4. _____ HOUSE MOTION Mr. Speaker: I move that House Bill 1102 be amended to read as follows: Page 1, line 5, reset in roman "(not including the". Page 1, reset in roman line 6. Page 1, line 7, reset in roman "custodian, or other". Page 1, line 7, delete "relative" and insert "relative)". (Reference is to HB 1102 as printed January 25, 2024.) HEINE HB 1102—LS 6537/DI 148