*EH1102.1* February 16, 2024 ENGROSSED HOUSE BILL No. 1102 _____ DIGEST OF HB 1102 (Updated February 14, 2024 11:47 am - DI 104) Citations Affected: IC 12-7; IC 12-17.2; IC 36-7. Synopsis: Child care. Revises the definition of "child care home". Limits the number of children under twelve months of age that may be provided care in a 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 and certain conditions are met. Effective: July 1, 2024. Heine, Snow, Barrett, DeVon (SENATE SPONSORS — WALKER G, JOHNSON T, DONATO, BECKER) 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. January 30, 2024, engrossed. Read third time, passed. Yeas 75, nays 21. SENATE ACTION February 5, 2024, read first time and referred to Committee on Health and Provider Services. February 15, 2024, amended, reported favorably — Do Pass. EH 1102—LS 6537/DI 148 February 16, 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. ENGROSSED 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 EH 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 EH 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: 26 (i) on the school premises; or 27 (ii) at another location leased by the school within the 28 school district in which the school is located; 29 for children of students or employees of schools in the school 30 corporation in which the public or private school is located; 31 (B) complies with health, safety, and sanitation standards as 32 determined by the division under section 4 of this chapter for 33 child care centers or in accordance with a variance or waiver 34 of a rule governing child care centers approved by the division 35 under section 10 of this chapter; and 36 (C) substantially complies with the fire and life safety rules as 37 determined by the state fire marshal under rules adopted by the 38 division under section 4 of this chapter for child care centers 39 or in accordance with a variance or waiver of a rule governing 40 child care centers approved by the division under section 10 of 41 this chapter. 42 (10) A school age child care program (commonly referred to as a EH 1102—LS 6537/DI 148 4 1 latch key program) established under IC 20-26-5-2 that is 2 operated by: 3 (A) the department of education; 4 (B) a public or private school; or 5 (C) a public or private organization under a written contract 6 with: 7 (i) the department of education; or 8 (ii) a public or private school. 9 (11) A child care program that: 10 (A) is operated by a public or private organization under a 11 contract with a public or private school; 12 (B) serves children who are enrolled in the public or private 13 school in: 14 (i) grades kindergarten through 12; or 15 (ii) a preschool program offered by a public or private 16 school as described in this subdivision; and 17 (C) serves children who are: 18 (i) attending school through remote or e-learning due to a 19 disaster emergency declared under IC 10-14-3-12 or 20 IC 10-14-3-29; or 21 (ii) participating in a learning recovery program that 22 administers an assessment to measure student learning loss 23 and provides Indiana academic standards aligned 24 instruction. 25 (12) An educational program: 26 (A) consisting of a group of not more than ten (10) students 27 who attend the educational program in lieu of attending 28 prekindergarten or kindergarten through grade 12 at a public 29 or private school; 30 (B) whose students meet in a single classroom in person or 31 outside a classroom and which may include mixed age level 32 groupings; and 33 (C) that is under the supervision of a teacher or tutor. 34 (13) If located in the same public or private school building: 35 (A) a preschool program that is operated by the public or 36 private school; and 37 (B) either or both of the following: 38 (i) A child care program described in subdivision (9). 39 (ii) A school age child care program described in 40 subdivision (10). 41 (14) A child care program operated by a public or private 42 school that: EH 1102—LS 6537/DI 148 5 1 (A) provides child care: 2 (i) on the school premises; or 3 (ii) at another location leased by the school within the 4 school district in which the school is located; 5 for children of employees of a business or organization 6 with which the school has entered into a contract to 7 provide services; 8 (B) complies with health, safety, and sanitation standards 9 as determined by the division under section 4 of this 10 chapter for child care centers or in accordance with a 11 variance or waiver of a rule governing child care centers 12 approved by the division under section 10 of this chapter; 13 and 14 (C) substantially complies with the fire and life safety rules 15 as determined by the state fire marshal under rules 16 adopted by the division under section 4 of this chapter for 17 child care centers or in accordance with a variance or 18 waiver of a rule governing child care centers approved by 19 the division under section 10 of this chapter. 20 SECTION 4. IC 12-17.2-3.5-3.5 IS ADDED TO THE INDIANA 21 CODE AS A NEW SECTION TO READ AS FOLLOWS 22 [EFFECTIVE JULY 1, 2024]: Sec. 3.5. A child care provider is 23 eligible to receive a voucher payment if the provider complies with 24 this chapter and: 25 (1) does not receive regular compensation; 26 (2) cares only for children who are related to the provider; 27 (3) cares for less than eight (8) children, not including 28 children for whom the provider is a parent, stepparent, 29 guardian, custodian, or other relative; or 30 (4) operates to serve migrant children. 31 SECTION 5. IC 12-17.2-4-12 IS AMENDED TO READ AS 32 FOLLOWS [EFFECTIVE JULY 1, 2024]: Sec. 12. (a) A license for a 33 child care center expires two (2) three (3) years after the date of 34 issuance, unless revoked, modified to a probationary or suspended 35 status, or voluntarily returned. 36 (b) A license issued under this chapter: 37 (1) is not transferable; 38 (2) applies only to the licensee and the location stated in the 39 application; and 40 (3) remains the property of the division. 41 (c) A current license shall be publicly displayed. 42 (d) When a licensee submits a timely application for renewal, the EH 1102—LS 6537/DI 148 6 1 current license shall remain in effect until the division issues a license 2 or denies the application. 3 (e) A licensee shall publicly display and make available, as a 4 handout, written documentation of: 5 (1) any changes in the status of the licensee's license; 6 (2) a telephone number and an Internet site where information 7 may be obtained from the division concerning: 8 (A) the current status of the licensee's license; 9 (B) any complaints filed with the division concerning the 10 licensee; and 11 (C) violations of this article by the licensee; and 12 (3) a telephone number of the office of the Indiana child care 13 resource and referral program of the county in which the child 14 care center is located. 15 SECTION 6. IC 12-17.2-5-3.7, AS ADDED BY P.L.53-2018, 16 SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE 17 JULY 1, 2024]: Sec. 3.7. (a) A licensee that cares for children who are 18 less than twelve (12) months of age shall: 19 (1) complete the training course provided or approved by the 20 division under IC 12-17.2-2-1(10) concerning safe sleeping 21 practices as required by section 6.3(a)(3) or 6.5(a)(9) 6.5(9) of 22 this chapter, whichever is applicable; and 23 (2) ensure that all caregivers of children who are less than twelve 24 (12) months of age follow safe sleeping practices. 25 A licensee may not provide care for more than three (3) children 26 (not including the children for whom the provider is a parent, 27 stepparent, guardian, custodian, or other relative) who are less 28 than twelve (12) months of age. 29 (b) If a licensee violates subsection (a), the division may do the 30 following with respect to each violation determined during an 31 inspection of the child care home: 32 (1) On the first inspection during which a violation is determined 33 during a licensure period, issue a formal warning letter stating the 34 division's intent to take administrative action and impose a civil 35 penalty for any future violation. 36 (2) On the second inspection during which a violation is 37 determined during a licensure period, impose a civil penalty of 38 fifty dollars ($50) for each violation determined during the 39 inspection. 40 (3) On the third inspection during which a violation is determined 41 during a licensure period, impose a civil penalty of seventy-five 42 dollars ($75) for each violation determined during the inspection. EH 1102—LS 6537/DI 148 7 1 (4) On the fourth inspection during which a violation is 2 determined during a licensure period: 3 (A) place the child care home's license on probation for not 4 more than six (6) months; and 5 (B) impose a civil penalty of one hundred dollars ($100) for 6 each violation determined during the inspection. 7 (5) On the fifth inspection during which a violation is determined 8 during a licensure period: 9 (A) suspend or revoke the child care home's license for one (1) 10 year; and 11 (B) impose a civil penalty of two hundred fifty dollars ($250) 12 for each violation determined during the inspection. 13 (c) The division shall send to the licensee written notice: 14 (1) of an action taken under subsection (b), specifying the reason 15 for the action and amount of any monetary civil penalty; and 16 (2) that failure to pay any monetary civil penalty may result in 17 revocation of the child care home's license for not more than two 18 (2) years. 19 (d) The division shall deposit all civil penalties collected under this 20 section in the division of family resources child care fund established 21 by IC 12-17.2-2-3. 22 (e) In addition to the actions described in subsection (b), the 23 division may seek further disciplinary action provided for under this 24 article, as determined by the director. 25 SECTION 7. IC 12-17.2-5-6.5, AS AMENDED BY P.L.74-2022, 26 SECTION 12, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE 27 JULY 1, 2024]: Sec. 6.5. (a) To qualify for a license to operate a class 28 II child care home under this chapter, a person must do the following: 29 (1) Provide all child care services on the first story of the child 30 care home unless the class II child care home meets the 31 exceptions to the first story requirements contained in the Indiana 32 building code adopted by the fire prevention and building safety 33 commission in effect at the time the class II child care home 34 provider applies for licensure. 35 (2) Provide a smoke detection system that is: 36 (A) hard wired to the building's electrical system; and 37 (B) wired in a manner that activates all of the detector devices 38 in the building when one (1) detector device is activated. 39 (3) Provide a fire extinguisher in each room that is used to 40 provide child care services. 41 (4) Meet: 42 (A) the exit requirements for an E-3 building occupancy EH 1102—LS 6537/DI 148 8 1 classification under the Indiana building code adopted by the 2 fire prevention and building safety commission, except for any 3 illumination requirements, in effect at the time the class II 4 child care home provider initially applies for licensure; and 5 (B) the illumination requirements established in section 6 6.3(b)(3) of this chapter. 7 (5) Provide a minimum of thirty-five (35) square feet for each 8 child. 9 (6) Conduct fire drills required under article 37 of the Indiana fire 10 prevention code adopted by the fire prevention and building 11 safety commission in effect at the time the class II child care 12 home provider applies for licensure. 13 (7) Apply for a license before July 1, 1996, or after June 30, 2001. 14 (8) Comply with rules adopted by the division of family resources 15 for class II child care homes. 16 (9) Complete the training course taught or approved by the 17 division concerning safe sleeping practices for a child within the 18 person's care as described in IC 12-17.2-2-1(10). 19 (b) To qualify for a license to operate a class II child care home 20 under this chapter, a person, before applying for the license, must have: 21 (1) a class I child care home license; or 22 (2) at least one (1) year of experience as a caregiver in a child 23 care home or child care center. 24 SECTION 8. IC 36-7-4-1108, AS AMENDED BY P.L.145-2006, 25 SECTION 374, IS AMENDED TO READ AS FOLLOWS 26 [EFFECTIVE JULY 1, 2024]: Sec. 1108. (a) This section applies only 27 to a child care home that is used as the primary residence of the person 28 who operates the child care home regardless of whether the child 29 care home meets the definition set forth in IC 12-7-2-28.6. 30 (b) As used in this section, "child care home" has the meaning set 31 forth in IC 12-7-2-28.6. 32 (c) (b) Except as provided in subsection (e), A zoning ordinance 33 may not do any of the following: 34 (1) Exclude a child care home from a residential area solely 35 because the child care home is a business. 36 (2) Impose limits on the number of children that may be served by 37 a child care home at any one (1) time that vary from the limits set 38 forth in IC 12-7-2-33.7 and IC 12-7-2-33.8. 39 (3) Impose requirements or restrictions upon child care homes 40 that vary from the requirements and restrictions imposed upon 41 child care homes by rules adopted by the division of family 42 resources or the fire prevention and building safety commission. EH 1102—LS 6537/DI 148 9 1 (d) (c) Notwithstanding subsection (c), (b), a child care home may 2 be required to meet the same: 3 (1) zoning requirements; 4 (2) developmental standards; and 5 (3) building codes; 6 that apply to other residential structures in the same residential district 7 or classification as the child care home. 8 (e) A zoning ordinance: 9 (1) that is in effect on July 1, 1993; and 10 (2) that: 11 (A) excludes a child care home from a residential area solely 12 because the child care home is a business; 13 (B) imposes limits on the number of children that may be 14 served by a child care home at any one (1) time that vary from 15 the limits set forth in IC 12-7-2-33.7 and IC 12-7-2-33.8; or 16 (C) imposes requirements or restrictions upon child care 17 homes that vary from the requirements and restrictions 18 imposed upon child care homes by rules adopted by the 19 division of family resources or the fire prevention and building 20 safety commission; 21 is not subject to subsection (c) until July 1, 1994. EH 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 _____ COMMITTEE REPORT Madam President: The Senate Committee on Health and Provider Services, to which was referred House Bill No. 1102, has had the same under consideration and begs leave to report the same back to the Senate with the recommendation that said bill be AMENDED as follows: Page 3, delete lines 25 through 27, begin a new line double block indented and insert: "(A) provides day care: EH 1102—LS 6537/DI 148 11 (i) on the school premises; or (ii) at another location leased by the school within the school district in which the school is located; for children of students or employees of schools in the school corporation in which the public or private school is located;". Page 4, line 40, delete "care for" and insert "care: (i) on the school premises; or (ii) at another location leased by the school within the school district in which the school is located; for". Page 6, between lines 17 and 18, begin a new line blocked left and insert: "A licensee may not provide care for more than three (3) children (not including the children for whom the provider is a parent, stepparent, guardian, custodian, or other relative) who are less than twelve (12) months of age.". and when so amended that said bill do pass. (Reference is to HB 1102 as reprinted January 30, 2024.) CHARBONNEAU, Chairperson Committee Vote: Yeas 8, Nays 2. EH 1102—LS 6537/DI 148