*SB0002.1* January 19, 2024 SENATE BILL No. 2 _____ DIGEST OF SB 2 (Updated January 17, 2024 12:10 pm - DI 104) Citations Affected: IC 5-28; IC 12-7; IC 12-8; IC 12-14; IC 12-17.2; noncode. Synopsis: Child care. Requires the Indiana economic development corporation to annually report to the general assembly regarding funds dedicated to supporting child care under specified state and federal programs. Requires the office of the secretary of family and social services (FSSA) to publish on the FSSA website a dashboard providing monthly information regarding state and federal child care subsidies available to Indiana residents. Provides that a household is eligible to begin receiving assistance under the federal Child Care and Development Fund (CCDF) voucher program if the household, at the time of FSSA's initial determination of the household's income eligibility: (1) has a household income that does not exceed 85% of Indiana's state median income for the household's family size; (2) includes an individual who is employed by a licensed child care center, a licensed child care home, or a licensed or registered child care (Continued next page) Effective: Upon passage. Charbonneau, Walker K, Donato, Bohacek, Brown L, Ford J.D. January 16, 2024, read first time and referred to Committee on Health and Provider Services. January 18, 2024, amended, reported favorably — Do Pass; reassigned to Committee on Appropriations. SB 2—LS 6562/DI 119 Digest Continued ministry; and (3) otherwise meets federal eligibility requirements for the CCDF program. Provides, with respect to the individual with certification in cardiopulmonary resuscitation (CPR) required to be present at all times when a child is in the care of a child care provider that is eligible to receive reimbursement through the CCDF program, that the individual is not required to be recertified in CPR annually. Provides that: (1) the early learning advisory committee must commission a third party evaluation to assess existing regulations for child care providers not later than May 1, 2024 (rather than July 1, 2024, under current law); and (2) FSSA must initiate the process of amending FSSA's rules in consideration of the findings of the third party evaluation not later than July 1, 2024. Requires the early learning advisory committee to complete a study of early childhood educator compensation in Indiana not later than September 30, 2024. Amends provisions regarding the On My Way Pre-K voucher program (program) to: (1) provide eligibility for children of child care employees; and (2) amend references to funds provided to children under the program as prekindergarten vouchers, rather than grants. Requires FSSA to establish a micro facility pilot program, under which FSSA shall: (1) develop a regulatory model that: (A) is applicable only to certain licensed or registered child care providers that provide child care for not less than three children and not more than 30 children for at least four hours per day (micro facilities); and (B) incorporates waivers or variances from FSSA's rules applicable to certain child care providers; (2) apply the regulatory model to at least three micro facilities and evaluate the operation of the micro facilities under the regulatory model; and (3) not later than October 1, 2026: (A) make a determination as to whether FSSA will adopt rules specific to micro facilities that incorporate some or all aspects of the regulatory model; and (B) submit to the general assembly a report regarding the pilot program. Requires FSSA to do the following: (1) Amend FSSA's rules to define a "substitute educator" caregiver type for purposes of FSSA's rules pertaining to all categories of child care providers regulated by FSSA. (2) Amend FSSA's rules to allow an employee of a child care provider who: (A) is 16 or 17 years of age; (B) is assigned to a lead caregiver who supervises the employee at all times during which the employee is supervising a child; (C) is never left alone with a child; and (D) meets specified qualifications; to be counted in child/staff ratios for school age child care rooms. (3) Amend FSSA's rules to allow an employee of a child care provider who: (A) is at least 18 years of age; and (B) meets specified qualifications; to serve as the staff person in charge of an infant/toddler room. (4) Issue a report to the general assembly not later than October 31, 2024, documenting the results attributable to: (A) the employer sponsored child care fund; and (B) the employer child care expenditure credit. (5) Study, in collaboration with other specified state agencies, opportunities for resource sharing across state agencies and local units of government to facilitate the fingerprinting of individuals for purposes of conducting national criminal history background checks and issue a report to the governor and the general assembly regarding the results of the study. Makes technical corrections. SB 2—LS 6562/DI 119SB 2—LS 6562/DI 119 January 19, 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. SENATE BILL No. 2 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 5-28-6-10 IS ADDED TO THE INDIANA CODE 2 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE 3 UPON PASSAGE]: Sec. 10. Not later than October 1, 2024, and not 4 later than October 1 of each year thereafter, the corporation shall 5 submit to the executive director of the legislative services agency, 6 for distribution to the members of the general assembly, a report 7 regarding funds dedicated to supporting child care under: 8 (1) the regional economic acceleration and development 9 initiative (READI) under IC 5-28-41; and 10 (2) the CHIPS Act of 2022 (P.L. 117-167, 136 Stat. 1366). 11 The corporation's report under this section must be in an 12 electronic format under IC 5-14-6. 13 SECTION 2. IC 12-7-2-25.2 IS ADDED TO THE INDIANA CODE 14 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE 15 UPON PASSAGE]: Sec. 25.2. "CCDF", for purposes of SB 2—LS 6562/DI 119 2 1 IC 12-17.2-7.2, has the meaning set forth in IC 12-17.2-7.2-0.4. 2 SECTION 3. IC 12-7-2-28.5 IS ADDED TO THE INDIANA CODE 3 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE 4 UPON PASSAGE]: Sec. 28.5. "Child care employee", for purposes 5 of IC 12-17.2-7.2, has the meaning set forth in IC 12-17.2-7.2-0.5. 6 SECTION 4. IC 12-7-2-31.4 IS ADDED TO THE INDIANA CODE 7 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE 8 UPON PASSAGE]: Sec. 31.4. "Child of a child care employee", for 9 purposes of IC 12-17.2-7.2, has the meaning set forth in 10 IC 12-17.2-7.2-0.6. 11 SECTION 5. IC 12-8-1.5-20 IS ADDED TO THE INDIANA CODE 12 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE 13 UPON PASSAGE]: Sec. 20. Not later than September 30, 2024, the 14 office of the secretary shall publish on the website of the office of 15 the secretary a dashboard providing monthly information 16 regarding state and federal child care subsidies available to 17 Indiana residents, including the following information: 18 (1) The number of child care subsidies available. 19 (2) The average copayment required under each available 20 subsidy. 21 (3) The number of children on a wait list for each available 22 subsidy. 23 (4) Other key indicators, as determined by the office of the 24 secretary, of the effectiveness of the available child care 25 subsidies in each Indiana county. 26 SECTION 6. IC 12-14-31-3 IS ADDED TO THE INDIANA CODE 27 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE 28 UPON PASSAGE]: Sec. 3. A household that, at the time of the office 29 of the secretary's initial determination of the household's income 30 eligibility for purposes of entry into the CCDF program: 31 (1) has a household income that does not exceed eighty-five 32 percent (85%) of Indiana's state median income for the 33 household's family size; 34 (2) includes a child care employee (as defined in 35 IC 12-17.2-7.2-0.5); and 36 (3) otherwise meets federal eligibility requirements for the 37 CCDF program; 38 is eligible for assistance under the CCDF program. 39 SECTION 7. IC 12-17.2-3.5-8, AS AMENDED BY P.L.171-2014, 40 SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE 41 UPON PASSAGE]: Sec. 8. (a) At least one (1) adult individual who 42 maintains annual certification in a course of cardiopulmonary SB 2—LS 6562/DI 119 3 1 resuscitation applicable to all age groups of children cared for by a 2 provider shall be present at all times when a child is in the care of the 3 provider. 4 (b) The following apply to an individual who is employed or 5 volunteers as a caregiver at a facility where a provider operates a child 6 care program: 7 (1) The individual shall maintain current certification in first aid 8 applicable to all age groups of children cared for by the provider. 9 (2) If the individual is: 10 (A) at least eighteen (18) years of age, the individual may act 11 as a caregiver without supervision of another caregiver; or 12 (B) less than eighteen (18) years of age, the individual may act 13 as a caregiver only if the individual: 14 (i) is at least fourteen (14) years of age; and 15 (ii) is, at all times when child care is provided, directly 16 supervised by a caregiver who is at least eighteen (18) years 17 of age. 18 (3) Before beginning employment or volunteer duties, the 19 individual must receive a formal orientation to the facility and the 20 child care program. 21 (4) Beginning July 1, 2015, unless the provider is a parent, 22 stepparent, guardian, custodian, or other relative to each child in 23 the care of the provider, the individual annually must receive at 24 least twelve (12) hours of continuing education approved by the 25 division and related to the age appropriate educational 26 development, care, and safety of children. The hours of 27 continuing education required by this subdivision may include the 28 training described in this chapter concerning child abuse 29 detection and prevention, first aid, cardiopulmonary resuscitation, 30 and safe sleeping practices. 31 (5) Not more than three (3) months after the individual begins 32 employment or volunteer duties, the individual must receive 33 training approved by the division concerning child abuse 34 detection and prevention. 35 (c) A provider shall: 36 (1) maintain at the facility where the provider operates a child 37 care program documentation of all training and completion of 38 continuing education required by this section; and 39 (2) make the documentation available to the division upon 40 request. 41 SECTION 8. IC 12-17.2-3.8-5, AS AMENDED BY P.L.246-2023, 42 SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE SB 2—LS 6562/DI 119 4 1 UPON PASSAGE]: Sec. 5. (a) The early learning advisory committee 2 is established to do the following: 3 (1) Establish child developmental and educational goals for 4 Indiana's early learning system, including the development of 5 standards and objectives for early education programs that receive 6 state or federal funds. 7 (2) Design and maintain an approach to measuring progress 8 toward the goals established under subdivision (1) that include 9 objective measures of academic quality. 10 (3) Assess the attainment of the goals established under 11 subdivision (1) and evaluate the efficacy of state and federal 12 spending on Indiana's early learning system. 13 (4) Assess whether the requirements for early education program 14 licensure: 15 (A) create an equitable standard for health and safety across all 16 early education program types; 17 (B) reinforce the goals established under subdivision (1); and 18 (C) support the sustainability of Indiana's early learning 19 system. 20 (5) Conduct periodic statewide needs assessments concerning the 21 quality and availability of early education programs for children 22 from birth to the age of school entry, including the availability of 23 high quality prekindergarten education for low income children 24 in Indiana. 25 (6) Identify opportunities for, and barriers to, collaboration and 26 coordination among federally and state funded child development, 27 child care, and early childhood education programs and services, 28 including governmental agencies that administer the programs 29 and services. 30 (7) Design early education workforce strategies, including 31 recommendations on how to advance professional development. 32 (8) Assess the capacity and effectiveness of pathways to support 33 training and recruitment of early educators. 34 (9) Not later than November 30 of each year, develop and make 35 recommendations to the governor and, in an electronic format 36 under IC 5-14-6, to the legislative council concerning the results 37 of the committee's work under subdivisions (1) through (8). 38 (10) Not later than July May 1, 2024, commission a third party 39 evaluation to assess existing regulations for child care providers 40 and provide a report containing recommendations to: 41 (A) maintain health and safety standards; 42 (B) streamline administrative burdens, program standards, and SB 2—LS 6562/DI 119 5 1 reporting requirements for child care providers; 2 (C) provide flexibility for a child care provider with a Level 3 3 or Level 4 paths to QUALITY program rating to expand to 4 other locations; and 5 (D) assist accredited kindergarten through grade 12 6 institutions in establishing and providing high quality onsite 7 child care and early learning programs. 8 Not later than July 1, 2024, the office of the secretary shall 9 initiate the process of amending the rules adopted by the 10 office under IC 12-17.2-7.2 in consideration of the 11 recommendations of the third party evaluation. This 12 subdivision expires January 1, 2025. 13 (11) Not later than December 31, 2023, develop recommendations 14 for implementing a revised paths to QUALITY program that: 15 (A) maintains health and safety standards; 16 (B) integrates objective measures of kindergarten readiness; 17 (C) contemplates accredited kindergarten through grade 12 18 institutions as onsite providers; and 19 (D) incentivizes child care providers to increase wages for 20 child care workers who complete education and training that 21 result in a postsecondary degree or industry recognized 22 credential. 23 This subdivision expires July 1, 2024. 24 (12) Not later than September 30, 2024, complete a study of 25 early childhood educator compensation in Indiana by: 26 (A) collecting compensation data for early childhood 27 educators throughout Indiana; 28 (B) creating an online dashboard to allow access to 29 compensation data; and 30 (C) issuing a report containing the committee's findings 31 and recommendations on early childhood educator 32 compensation in Indiana. 33 This subdivision expires October 1, 2024. 34 (b) The committee consists of the following thirteen (13) members: 35 (1) The secretary of education or the secretary's designee. 36 (2) The secretary of family and social services or the secretary's 37 designee. 38 (3) Seven (7) members appointed by the governor as follows: 39 (A) A representative of an organization with an interest in 40 training the early childhood education workforce. 41 (B) A representative of a Head Start program under 42 U.S.C. 42 9831 et seq. SB 2—LS 6562/DI 119 6 1 (C) A member of the general public who has an interest in 2 early childhood education. 3 (D) A representative of an early childhood education provider. 4 (E) A representative from a school corporation who has an 5 interest in strengthening the transition from early childhood 6 education to elementary education. 7 (F) A representative of business with an interest in early 8 childhood education. 9 (G) A representative of the nonprofit or philanthropic 10 community with an interest in early childhood education. 11 (4) One (1) member who: 12 (A) is appointed by the speaker of the house of representatives; 13 (B) is not a member of the general assembly; and 14 (C) shall serve as a nonvoting member. 15 (5) One (1) member who: 16 (A) is appointed by the president pro tempore of the senate; 17 (B) is not a member of the general assembly; and 18 (C) shall serve as a nonvoting member. 19 (6) One (1) member who: 20 (A) is appointed by the minority leader of the house of 21 representatives; 22 (B) is not a member of the general assembly; and 23 (C) shall serve as a nonvoting member. 24 (7) One (1) member who: 25 (A) is appointed by the minority leader of the senate; 26 (B) is not a member of the general assembly; and 27 (C) shall serve as a nonvoting member. 28 (c) Subject to section 5.1 of this chapter, members appointed under 29 subsection (b)(3) through (b)(7) serve for three (3) year terms. The 30 members of the committee serve at the pleasure of the appointing 31 authority. 32 (d) The governor shall appoint a member of the committee to serve 33 as chairperson of the committee. The committee shall meet at least six 34 (6) times each calendar year at the call of the chairperson. 35 (e) The division shall, in consultation with the department of 36 education, staff the committee. 37 (f) The expenses of the committee shall be paid from the funds of 38 the division. 39 (g) Each member of the committee who is not a state employee is 40 entitled to the minimum salary per diem provided by IC 4-10-11-2.1(b). 41 The member is also entitled to reimbursement for traveling expenses 42 as provided under IC 4-13-1-4 and other expenses actually incurred in SB 2—LS 6562/DI 119 7 1 connection with the member's duties as provided in the state policies 2 and procedures established by the Indiana department of administration 3 and approved by the budget agency. 4 (h) Each member of the committee who is a state employee but who 5 is not a member of the general assembly is entitled to reimbursement 6 for traveling expenses as provided under IC 4-13-1-4 and other 7 expenses actually incurred in connection with the member's duties as 8 provided in the state policies and procedures established by the Indiana 9 department of administration and approved by the budget agency. 10 (i) Each member of the committee who is a member of the general 11 assembly is entitled to receive the same per diem, mileage, and travel 12 allowances paid to legislative members of interim study committees 13 established by the legislative council. Per diem, mileage, and travel 14 allowances paid under this section shall be paid from appropriations 15 made to the legislative council or the legislative services agency. 16 (j) The affirmative votes of a majority of the voting members 17 appointed to the committee are required for the committee to take 18 action on any measure, including final reports. 19 SECTION 9. IC 12-17.2-7.2-0.4 IS ADDED TO THE INDIANA 20 CODE AS A NEW SECTION TO READ AS FOLLOWS 21 [EFFECTIVE UPON PASSAGE]: Sec. 0.4. As used in this chapter, 22 "CCDF" refers to the federal Child Care and Development Fund 23 program administered under 45 CFR 98 and 45 CFR 99. 24 SECTION 10. IC 12-17.2-7.2-0.5 IS ADDED TO THE INDIANA 25 CODE AS A NEW SECTION TO READ AS FOLLOWS 26 [EFFECTIVE UPON PASSAGE]: Sec. 0.5. As used in this chapter, 27 "child care employee" means an individual who: 28 (1) receives compensation as a full-time employee of an entity 29 licensed or regulated under this article, as determined by the 30 office; or 31 (2) receives compensation as a part-time employee of an entity 32 licensed or regulated under this article while also pursuing 33 postsecondary study or educational training in child care or 34 early childhood education, as determined by the office. 35 SECTION 11. IC 12-17.2-7.2-0.6 IS ADDED TO THE INDIANA 36 CODE AS A NEW SECTION TO READ AS FOLLOWS 37 [EFFECTIVE UPON PASSAGE]: Sec. 0.6. As used in this chapter, 38 "child of a child care employee" means an individual who: 39 (1) is at least four (4) years of age and less than five (5) years 40 of age on August 1 of the state fiscal year for which a 41 prekindergarten voucher is sought for the individual under 42 the prekindergarten program; SB 2—LS 6562/DI 119 8 1 (2) is a resident of Indiana or otherwise has legal settlement 2 in Indiana, as determined under IC 20-26-11; 3 (3) receives qualified early education services from an eligible 4 provider, as determined by the office; 5 (4) has a parent or guardian who agrees to ensure that the 6 child meets the attendance requirements determined by the 7 office; 8 (5) resides with a parent or guardian who is a child care 9 employee, as determined by the office; 10 (6) has a household income that does not exceed eighty-five 11 percent (85%) of Indiana's state median income for the 12 household's family size; and 13 (7) meets the requirements of section 7.2(c) of this chapter. 14 SECTION 12. IC 12-17.2-7.2-2, AS AMENDED BY P.L.268-2019, 15 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE 16 UPON PASSAGE]: Sec. 2. As used in this chapter, "eligible provider" 17 refers to a provider that satisfies the following conditions: 18 (1) The provider is: 19 (A) a: 20 (i) public school, including a charter school; 21 (ii) (i) child care center licensed under IC 12-17.2-4; 22 (iii) (ii) child care home licensed under IC 12-17.2-5; or 23 (iv) (iii) child care ministry registered under IC 12-17.2-6; 24 that meets the standards of quality recognized by a Level 3 or 25 Level 4 paths to QUALITY program rating; 26 (B) a public school, including a charter school; 27 (B) (C) a nonpublic school that is accredited by the state 28 board of education or a national or regional accreditation 29 agency that is recognized by the state board of education; or 30 (C) (D) a nonpublic school that is accredited to provide 31 qualified early education services by an accrediting agency 32 approved by the office of the secretary. 33 (2) The provider: 34 (A) provides qualified early education services to eligible and 35 children, limited eligibility children, and children of child 36 care employees; 37 (B) complies with the agreement with the office concerning 38 the delivery of qualified education services and the use of a 39 grant prekindergarten voucher provided under this chapter; 40 and 41 (C) complies with CCDF provider eligibility standards in 42 accordance with federal requirements for health and SB 2—LS 6562/DI 119 9 1 safety. 2 SECTION 13. IC 12-17.2-7.2-2.5, AS AMENDED BY 3 P.L.246-2023, SECTION 8, IS AMENDED TO READ AS FOLLOWS 4 [EFFECTIVE UPON PASSAGE]: Sec. 2.5. As used in this chapter, 5 "limited eligibility child" refers to an individual who: 6 (1) is at least four (4) years of age and less than five (5) years of 7 age on August 1 of the state fiscal year for which a grant 8 prekindergarten voucher is sought for the individual under the 9 prekindergarten program; 10 (2) is a resident of Indiana or otherwise has legal settlement in 11 Indiana, as determined under IC 20-26-11; 12 (3) receives qualified early education services from an eligible 13 provider, as determined by the office; 14 (4) has a parent or guardian who agrees to ensure that the child 15 meets the attendance requirements determined by the office; 16 (5) has a parent or guardian who participates in a parental 17 engagement and involvement component provided by the eligible 18 provider; 19 (6) is a member of a household with an annual income that does 20 not exceed one hundred eighty-five percent (185%) of the federal 21 poverty level; 22 (7) meets the requirements of section 7.2(b) and 7.2(c) of this 23 chapter; and 24 (8) is not an eligible child or a child of a child care employee. 25 SECTION 14. IC 12-17.2-7.2-5.7, AS AMENDED BY 26 P.L.216-2021, SECTION 4, IS AMENDED TO READ AS FOLLOWS 27 [EFFECTIVE UPON PASSAGE]: Sec. 5.7. As used in this chapter, 28 "priority enrollment period" refers to the period set forth by the office 29 beginning not later than April 1 of each calendar year, except for 30 calendar year 2021, 2024, during which the priority enrollment period 31 may begin later than April 1, 2021. 2024. 32 SECTION 15. IC 12-17.2-7.2-6, AS AMENDED BY P.L.268-2019, 33 SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE 34 UPON PASSAGE]: Sec. 6. As used in this chapter, "qualified early 35 education services" refers to a program of early education services that: 36 (1) is provided by an eligible provider to: 37 (A) an eligible or child; 38 (B) a limited eligibility child; or 39 (C) a child of a child care employee; 40 (2) includes a parental engagement and involvement component 41 in the delivery of early education services that is based on the 42 requirements and guidelines established by the office; SB 2—LS 6562/DI 119 10 1 (3) administers the kindergarten readiness assessment adopted by 2 the state board of education; 3 (4) aligns with the early learning development framework for 4 prekindergarten approved by the department of education under 5 IC 20-19-3-16; and 6 (5) meets the design parameters for inclusion in the longitudinal 7 study described in section 12 of this chapter, as determined by the 8 office. 9 SECTION 16. IC 12-17.2-7.2-7, AS AMENDED BY P.L.246-2023, 10 SECTION 11, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE 11 UPON PASSAGE]: Sec. 7. (a) The prekindergarten program is 12 established to provide: grants for: 13 (1) prekindergarten vouchers for qualified early education 14 services in a manner consistent with how funds are distributed 15 under the Child Care and Development Fund (CCDF) grant 16 CCDF child care voucher program; and 17 (2) grants for expansion plans as described in section 7.4(a)(2) 18 of this chapter. 19 (b) The office shall administer the prekindergarten program. The 20 prekindergarten program may include: 21 (1) eligible providers in Indiana; and 22 (2) potential eligible providers or existing eligible providers as 23 described in section 7.4 of this chapter. 24 (c) Beginning July 1, 2020, the total number of grants 25 prekindergarten vouchers provided during the immediately 26 preceding state fiscal year shall include the number of grants 27 prekindergarten vouchers issued under a preschool program 28 established in March 2015 that operates in a consolidated city. 29 (d) The prekindergarten program includes eligible providers in any 30 county in Indiana. 31 (e) Subject to the requirements of this chapter, the office shall 32 determine: 33 (1) the eligibility requirements, application process, and selection 34 process for awarding grants providing prekindergarten 35 vouchers under the prekindergarten program and awarding 36 grants under section 7.4 of this chapter; 37 (2) the administration and reporting requirements for: 38 (A) eligible providers; and 39 (B) potential eligible providers or existing eligible providers; 40 participating in the prekindergarten program; and 41 (3) with the assistance of the early learning advisory committee, 42 an appropriate outcomes based accountability system for: SB 2—LS 6562/DI 119 11 1 (A) eligible providers; and 2 (B) potential eligible providers or existing eligible providers. 3 (f) The office shall, subject to the availability of funding, determine 4 the number of eligible children, limited eligibility children, and 5 children of child care employees who will participate in the 6 prekindergarten program. After December 31, 2019, the office shall, 7 subject to the availability of funding, determine the number of limited 8 eligibility children who will participate in the prekindergarten program. 9 SECTION 17. IC 12-17.2-7.2-7.2, AS AMENDED BY 10 P.L.268-2019, SECTION 9, IS AMENDED TO READ AS FOLLOWS 11 [EFFECTIVE UPON PASSAGE]: Sec. 7.2. (a) For an eligible child to 12 qualify for a grant prekindergarten voucher under this chapter, the 13 eligible child must reside with a parent or guardian who is: 14 (1) working or attending a job training or an educational program; 15 or 16 (2) actively seeking employment, subject to the approval by the 17 United States Department of Health and Human Services as 18 provided in 45 CFR 98.21. 19 (b) For a limited eligibility child to qualify for a grant 20 prekindergarten voucher under this chapter, the limited eligibility 21 child must reside with a parent or guardian who: 22 (1) is working or attending a job training or an educational 23 program; 24 (2) is actively seeking employment, subject to the approval by the 25 United States Department of Health and Human Services as 26 provided in 45 CFR 98.21; or 27 (3) receives Social Security Disability Insurance, or Supplemental 28 Security Income benefits, or disability benefits from the United 29 States Department of Veterans Affairs. 30 (c) Before the office may award provide a grant prekindergarten 31 voucher to an eligible or child, a limited eligibility child, or a child of 32 a child care employee under this chapter, the office shall require that 33 a parent or guardian of the eligible or limited eligibility child agree to 34 the following: 35 (1) The eligible or limited eligibility child will attend the 36 prekindergarten program of an eligible provider selected by the 37 parent or guardian for the full duration of the prekindergarten 38 program year. 39 (2) The parent or guardian will not transfer to another 40 prekindergarten program during the prekindergarten program 41 year. 42 (3) The eligible or limited eligibility child will attend the SB 2—LS 6562/DI 119 12 1 prekindergarten program at least eighty-five percent (85%) of the 2 days that the prekindergarten program is provided. 3 (4) The parent or guardian will allow the eligible or limited 4 eligibility child to participate in an external evaluation conducted 5 by researchers, including the kindergarten readiness assessment 6 and measuring of developmental and academic progress. 7 (5) The parent or guardian will participate in family engagement 8 and involvement activities offered by the selected prekindergarten 9 program, including meetings with the eligible or limited eligibility 10 child's teacher to discuss the eligible or limited eligibility child's 11 progress or any other conference concerning the eligible or 12 limited eligibility child that is requested by the eligible provider. 13 (6) The parent or guardian will complete the necessary forms for 14 the eligible child or limited eligibility child to receive a student 15 test number from the department of education. 16 (7) The parent or guardian will send the eligible or limited 17 eligibility child to kindergarten. 18 (8) The parent or guardian will read to the eligible or limited 19 eligibility child each week. 20 (9) Any other condition the office determines is appropriate. 21 (d) Priority shall be given to a child of a child care employee 22 under this section. 23 (d) (e) Priority may be given to an eligible or limited eligibility child 24 under this section if a parent or guardian of the eligible or limited 25 eligibility child is: 26 (1) involved in activities that improve the parent's or guardian's 27 education; or 28 (2) involved in job training. 29 SECTION 18. IC 12-17.2-7.2-7.3, AS AMENDED BY 30 P.L.246-2023, SECTION 12, IS AMENDED TO READ AS 31 FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 7.3. The office 32 shall require, for an eligible provider to enroll in the prekindergarten 33 program, that the eligible provider agree to the following: 34 (1) Comply on a continuing basis with the requirements under this 35 chapter and rules for participation established by the office. 36 (2) Maintain eligibility under this chapter throughout the 37 prekindergarten program year. 38 (3) Report immediately any changes in eligibility status to the 39 office, including the eligible provider's loss of national or regional 40 accreditation. 41 (4) Participate in any training and mandatory meetings required 42 by the office. SB 2—LS 6562/DI 119 13 1 (5) Participate in all onsite visits conducted by the office, 2 including fiscal auditing activities with regard to the 3 prekindergarten program and prekindergarten program activity 4 monitoring. 5 (6) Allow families the family of an eligible or child, a limited 6 eligibility children, child, or a child of a child care employee 7 enrolled in the prekindergarten program of the eligible provider 8 to visit at any time the prekindergarten program is in operation. 9 (7) Maintain accurate online attendance records through the 10 attendance portal for eligible or children, limited eligibility 11 children, and children of child care employees enrolled in the 12 prekindergarten program and submit attendance records as 13 required by the office. 14 (8) Offer parental engagement and involvement activities in the 15 prekindergarten program of the eligible provider in alignment 16 with the family engagement framework adopted by the early 17 learning advisory committee established by IC 12-17.2-3.8-5. 18 (9) Complete, within the period established by the office, the 19 Indiana early childhood family engagement toolkit, including the 20 family engagement self-assessment, adopted by the early learning 21 advisory committee. 22 (10) Share information on the family engagement self-assessment 23 described in subdivision (9) as required by the office. 24 (11) Participate in research studies as required by the office. 25 (12) Enforce minimum attendance requirements of at least 26 eighty-five percent (85%) of the days that the prekindergarten 27 program of the eligible provider is offered to an eligible or child, 28 a limited eligibility child, or a child of a child care employee. 29 (13) Inform the office that an eligible or child, a limited eligibility 30 child, or a child of a child care employee has withdrawn from 31 the prekindergarten program of the eligible provider not later than 32 five (5) days after the eligible or limited eligibility child is 33 withdrawn. 34 (14) That retroactive repayment to the state may be required or 35 future payments may be adjusted as a result of the withdrawal of 36 an eligible or child, a limited eligibility child, or a child of a 37 child care employee or changes in the law. 38 (15) Maintain records of participation by a the family of an 39 eligible or child, a limited eligibility child, or a child of a child 40 care employee in family engagement activities and submit 41 records as required by the office. 42 (16) Promote an eligible or limited eligibility child's the social, SB 2—LS 6562/DI 119 14 1 emotional, and behavioral health of an eligible child, a limited 2 eligibility child, or a child of a child care employee and 3 eliminate or severely limit the use of expulsion, suspension, and 4 other exclusionary discipline practices. 5 (17) Use the exclusionary discipline practices described in 6 subdivision (16) only as a last resort in extraordinary 7 circumstances when there is a determination of a serious safety 8 threat that cannot otherwise be reduced or eliminated by the 9 provision of reasonable modifications. 10 (18) Inform and receive approval from the office before the 11 eligible provider expels, suspends, or uses other exclusionary 12 discipline practices. 13 (19) Assist a parent or guardian, upon request by the parent or 14 guardian, in obtaining information from, referral to, or both 15 information from and referral to, the public school that serves the 16 attendance area in which the parent or guardian resides for an 17 educational evaluation and determination of eligibility for special 18 education services if developmental delays or reasons to suspect 19 a disability are observed by the parent, guardian, or teacher of an 20 eligible or child, a limited eligibility child, or a child of a child 21 care employee during the prekindergarten program year. 22 SECTION 19. IC 12-17.2-7.2-7.8, AS AMENDED BY 23 P.L.246-2023, SECTION 15, IS AMENDED TO READ AS 24 FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 7.8. (a) The office 25 shall make random onsite inspections each year, as determined 26 necessary by the office, at the facility of: 27 (1) an eligible provider that receives a prekindergarten 28 voucher under this chapter; or 29 (2) a potential eligible provider or existing eligible provider that 30 receives a grant under section 7.4 of this chapter. 31 that receives a grant under this chapter. 32 (b) The office may determine that an eligible provider or potential 33 eligible provider or existing eligible provider is not eligible to receive 34 a grant prekindergarten voucher under the prekindergarten program 35 or that a potential eligible provider or existing eligible provider is 36 not eligible to receive a grant under section 7.4 of this chapter if the 37 eligible provider or the potential eligible provider or existing eligible 38 provider: 39 (1) fails to comply with this chapter; or 40 (2) refuses to allow, during normal business hours, the office or 41 an agent of the office to inspect the facility at which the eligible 42 provider or potential eligible provider or existing eligible provider SB 2—LS 6562/DI 119 15 1 operates a child care program for eligible or children, limited 2 eligibility children, or children of child care employees. 3 SECTION 20. IC 12-17.2-7.2-8, AS AMENDED BY P.L.268-2019, 4 SECTION 13, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE 5 UPON PASSAGE]: Sec. 8. (a) The office shall determine: 6 (1) which applicants shall be awarded provided a: 7 (A) prekindergarten voucher under this chapter; or 8 (B) grant under section 7.4 of this chapter; and 9 (2) subject to subsection (b) and to the availability of funding, the 10 amount of each prekindergarten voucher or grant. 11 (b) At least five percent (5%) but not more than fifty percent (50%) 12 of the: 13 (1) tuition for eligible or limited eligibility children under the 14 prekindergarten pilot program; or 15 (2) expansion plan described in section 7.4(a) of this chapter; 16 during the state fiscal year must be paid from donations, gifts, grants, 17 bequests, and other funds received from a private entity or person, from 18 the United States government, or from other sources (excluding funds 19 from a prekindergarten voucher or grant provided under this chapter 20 and excluding other state funding). The office may receive and 21 administer grants on behalf of the prekindergarten pilot program. The 22 grants shall be distributed by the office to fulfill the requirements of 23 this subsection. 24 (c) The amount of a grant made prekindergarten voucher 25 provided under the pilot prekindergarten program to an eligible or 26 child, a limited eligibility child, or a child of a child care employee: 27 (1) who attends a prekindergarten program full time must equal 28 at least two thousand five hundred dollars ($2,500) during the 29 state fiscal year; and 30 (2) may not exceed six thousand eight hundred dollars ($6,800) 31 from state money provided under this chapter during the state 32 fiscal year. 33 SECTION 21. IC 12-17.2-7.2-8.1, AS AMENDED BY 34 P.L.246-2023, SECTION 16, IS AMENDED TO READ AS 35 FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 8.1. (a) If funds are 36 appropriated by the general assembly, grants prekindergarten 37 vouchers provided to limited eligibility children may not exceed: 38 (1) twenty percent (20%) of the amount appropriated for a 39 particular state fiscal year if families with children four (4) years 40 of age are on the waiting list for funds available under the Child 41 Care Development Fund; CCDF; or 42 (2) forty percent (40%) of the amount appropriated for a SB 2—LS 6562/DI 119 16 1 particular state fiscal year if there is no waiting list for children 2 four (4) years of age for funds available under the Child Care 3 Development Fund. CCDF. 4 (b) During the priority enrollment period, the office shall provide 5 grants prekindergarten vouchers to eligible children and children of 6 child care employees in the prekindergarten program on a first-come, 7 first-served basis. The office shall date stamp and reserve applications 8 for limited eligibility children received during the priority enrollment 9 period for processing during the extended enrollment period. 10 (c) During the extended enrollment period, the office shall provide 11 grants prekindergarten vouchers to eligible children, children of 12 child care employees, and limited eligibility children in the 13 prekindergarten program on a first-come, first-served basis to the 14 extent of available funding and in accordance with the limit established 15 by subsection (a). 16 SECTION 22. IC 12-17.2-7.2-10, AS ADDED BY P.L.202-2014, 17 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE 18 UPON PASSAGE]: Sec. 10. The office shall apply for any available 19 waivers under the federal Child Care and Development Fund (CCDF) 20 grant CCDF voucher program and the federal Head Start program. 21 SECTION 23. IC 12-17.2-7.2-11, AS AMENDED BY 22 P.L.201-2023, SECTION 139, AND AS AMENDED BY 23 P.L.246-2023, SECTION 17, AND AS AMENDED BY THE 24 TECHNICAL CORRECTIONS BILL OF THE 2024 GENERAL 25 ASSEMBLY, IS CORRECTED AND AMENDED TO READ AS 26 FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 11. Except as 27 provided under IC 20-51-1-4.3(4)(E), The receipt of a grant 28 prekindergarten voucher under the pilot prekindergarten program 29 does not qualify, nor have an effect on the qualification or eligibility, 30 of a child for a choice scholarship under IC 20-51-4. 31 SECTION 24. IC 12-17.2-7.2-13, AS AMENDED BY 32 P.L.246-2023, SECTION 19, IS AMENDED TO READ AS 33 FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 13. (a) The office 34 shall, before November 1 of each year, submit a report to the governor, 35 the budget committee, the state board of education, the department of 36 education, and, in an electronic format under IC 5-14-6, the general 37 assembly regarding the prekindergarten program. 38 (b) The report under subsection (a) must include the following: 39 (1) The total number of children who received a grant 40 prekindergarten voucher under the prekindergarten program for 41 the immediately preceding state fiscal year, disaggregated by 42 county. SB 2—LS 6562/DI 119 17 1 (2) The total amount of funds budgeted for and spent under the 2 prekindergarten program during the immediately preceding state 3 fiscal year. 4 (3) The balance remaining in the fund at the end of the 5 immediately preceding state fiscal year. 6 SECTION 25. IC 12-17.2-7.2-13.1, AS AMENDED BY 7 P.L.246-2023, SECTION 20, IS AMENDED TO READ AS 8 FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 13.1. The office 9 shall post monthly on the office's website the total enrollment of and 10 number of grants prekindergarten vouchers awarded to: 11 (1) all eligible children; (before January 1, 2020); and 12 (2) after December 31, 2019, both: 13 (A) all eligible children; and 14 (B) (2) all limited eligibility children; and 15 (3) children of child care employees; 16 for each county that participates in the prekindergarten program. 17 SECTION 26. IC 12-17.2-7.2-13.5, AS AMENDED BY 18 P.L.246-2023, SECTION 21, IS AMENDED TO READ AS 19 FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 13.5. (a) The 20 prekindergarten program fund is established to: 21 (1) provide grants prekindergarten vouchers to eligible or 22 children, limited eligibility children, and children of child care 23 employees for qualified early education services under this 24 chapter; 25 (2) carry out the longitudinal study described in section 12 of this 26 chapter; 27 (3) provide grants to potential eligible providers and existing 28 eligible providers as set forth in section 7.4 of this chapter; and 29 (4) make payments to reimburse costs incurred to provide 30 in-home early education services under IC 12-17.2-7.5. 31 (b) The fund consists of: 32 (1) money appropriated to the fund by the general assembly; and 33 (2) grants or gifts to the fund. 34 (c) The fund shall be administered by the office. 35 (d) The expenses of administering the fund shall be paid from 36 money in the fund. 37 (e) Money in the fund is continuously appropriated for the purposes 38 provided under this article. 39 (f) The treasurer of state shall invest the money in the fund not 40 currently needed to meet the obligations of the fund in the same 41 manner as other public funds may be invested. 42 SECTION 27. IC 12-17.2-7.6 IS ADDED TO THE INDIANA SB 2—LS 6562/DI 119 18 1 CODE AS A NEW CHAPTER TO READ AS FOLLOWS 2 [EFFECTIVE UPON PASSAGE]: 3 Chapter 7.6. Micro Facility Pilot Program 4 Sec. 1. As used in this chapter, "micro facility" means an entity 5 licensed under this article that provides child care for not less than 6 three (3) children and not more than thirty (30) children for at 7 least four (4) hours per day. 8 Sec. 2. As used in this chapter, "pilot program" refers to the 9 pilot program established under section 3 of this chapter. 10 Sec. 3. (a) Not later than January 1, 2025, after soliciting and 11 considering recommendations from appropriate stakeholders, the 12 office of the secretary shall develop a regulatory model that: 13 (1) is applicable only to micro facilities; 14 (2) incorporates waivers or variances from the office of the 15 secretary's rules applicable to providers under this article; 16 and 17 (3) provides for a balance between the goals of: 18 (A) increasing the availability of child care, particularly in 19 geographic areas facing a critical shortage of child care, by 20 reducing the costs of operating a micro facility; and 21 (B) ensuring the health and safety of children for whom a 22 micro facility provides child care. 23 (b) In determining waivers or variances to be incorporated 24 under subsection (a)(2), the office of the secretary shall consider 25 efficiencies such as: 26 (1) allowing a micro facility to be operated in either a 27 residential or nonresidential building; 28 (2) prescribing educational requirements for staff members of 29 a micro facility that are tailored to the needs of providing 30 child care to groups of thirty (30) children or less; and 31 (3) allowing for supervision of children of diverse age groups 32 in a manner that maximizes use of limited facility space. 33 (c) Not later than March 1, 2025, the office of the secretary shall 34 establish and administer a pilot program under which: 35 (1) a licensee under IC 12-7-2-28.4 or IC 12-7-2-28.8 that: 36 (A) operates an existing micro facility; or 37 (B) proposes to begin operating a new micro facility not 38 more than sixty (60) days after the date of the licensee's 39 application under this subdivision; 40 may apply to participate in the pilot program in a manner 41 prescribed by the office of the secretary; 42 (2) the office of the secretary shall select at least three (3) SB 2—LS 6562/DI 119 19 1 licensees that apply under subdivision (1) and: 2 (A) allow a selected licensee described in subdivision (1)(A) 3 to operate the licensee's existing micro facility; and 4 (B) allow a selected licensee described in subdivision (1)(B) 5 to operate the licensee's proposed micro facility; 6 under the regulatory model developed under subsection (a); 7 and 8 (3) the office of the secretary shall: 9 (A) monitor the operation of the micro facilities operating 10 under the regulatory model under subdivision (2); and 11 (B) evaluate the degree to which the operation of the micro 12 facilities under the regulatory model serves the balance 13 described in subsection (a)(3). 14 (d) The office of the secretary shall, to the extent practicable, 15 select licensees for participation in the pilot program such that the 16 micro facilities operated by the licensees are located in areas: 17 (1) that are geographically diverse from one another; and 18 (2) in which there exists a critical shortage of child care 19 providers. 20 (e) A waiver or variance applied to a micro facility under this 21 section expires on the earlier of: 22 (1) the date specified by the office of the secretary; or 23 (2) December 31, 2026. 24 Sec. 4. Not later than October 1, 2026, the office of the secretary 25 shall do the following: 26 (1) Make a determination as to whether the operation of the 27 micro facilities under the regulatory model developed under 28 section 3(a) of this chapter served the balance described in 29 section 3(a)(3) of this chapter. 30 (2) Based on the office of the secretary's determination under 31 subdivision (1), make a determination as to whether the office 32 of the secretary will adopt rules specific to micro facilities that 33 incorporate some or all aspects of the regulatory model 34 developed under section 3(a) of this chapter. 35 (3) Submit to the executive director of the legislative services 36 agency, for distribution to the members of the general 37 assembly, a report regarding the pilot program that describes 38 the office of the secretary's determinations under subdivisions 39 (1) and (2). The office of the secretary's report under this 40 subdivision must be in an electronic format under IC 5-14-6. 41 Sec. 5. This chapter expires January 1, 2027. 42 SECTION 28. [EFFECTIVE UPON PASSAGE] (a) As used in this SB 2—LS 6562/DI 119 20 1 SECTION, "CCDF" refers to the federal Child Care and 2 Development Fund program administered under 45 CFR 98 and 45 3 CFR 99. 4 (b) As used in this SECTION, "office" means the office of the 5 secretary of family and social services established by IC 12-8-1.5-1. 6 (c) Not later than September 30, 2024, the office shall do the 7 following: 8 (1) Amend 470 IAC 3 to define a "substitute educator" 9 caregiver type for purposes of the office's rules pertaining to 10 all categories of child care providers regulated by the office 11 under IC 12-17.2. 12 (2) Amend 470 IAC 3-4.7-24 to allow an employee of a child 13 care provider who: 14 (A) is sixteen (16) or seventeen (17) years of age; 15 (B) meets CCDF qualified caregiver requirements; 16 (C) is assigned to a lead caregiver who: 17 (i) is at least eighteen (18) years of age; 18 (ii) meets the qualifications of a lead caregiver under 19 rules adopted under IC 12-13-5-3; and 20 (iii) supervises the employee at all times during which 21 the employee is supervising one (1) or more children; 22 (D) is never left alone with a child; and 23 (E) meets other reasonable requirements related to 24 ensuring the health, safety, and welfare of children as 25 established by the office; 26 to be counted in child/staff ratios for school age child care 27 rooms. 28 (3) Amend 470 IAC 3-4.7-121 to allow an employee of a child 29 care provider who: 30 (A) is at least eighteen (18) years of age; 31 (B) meets CCDF qualified caregiver requirements; and 32 (C) meets other reasonable requirements related to 33 ensuring the health, safety, and welfare of children as 34 established by the office; 35 to serve as the staff person in charge of an infant/toddler 36 room. 37 (d) Not later than October 31, 2024, the office, in collaboration 38 with the department of state revenue, shall provide to the executive 39 director of the legislative services agency for distribution to the 40 members of the general assembly a report in an electronic format 41 under IC 5-14-6 documenting the results attributable to: 42 (1) the employer sponsored child care fund, including any SB 2—LS 6562/DI 119 21 1 tri-share model programs; and 2 (2) the employer child care expenditure credit. 3 (e) Not later than December 31, 2024, the office shall: 4 (1) submit to the United States Department of Health and 5 Human Services any state plan amendment necessary to 6 implement; and 7 (2) amend the rules of the office's division of family resources 8 in conformance with; 9 IC 12-14-31-3, as added by this act, and IC 12-17.2-7.2, as amended 10 by this act. 11 (f) This SECTION expires January 1, 2025. 12 SECTION 29. [EFFECTIVE UPON PASSAGE] (a) As used in this 13 SECTION, "secretary" refers to the secretary of family and social 14 services appointed under IC 12-8-1.5-2. 15 (b) The secretary, in collaboration with the department of 16 administration, the department of education, the department of 17 child services, the criminal justice institute, and the state police, 18 shall study opportunities for resource sharing across state agencies 19 and local units of government to facilitate the fingerprinting of 20 individuals for purposes of conducting a national criminal history 21 background check (as defined by IC 10-13-3-12) or any similar 22 criminal history check involving fingerprint identification. 23 (c) Not later than November 1, 2024, the secretary shall submit 24 a report of the secretary's findings under subsection (b) to the 25 following: 26 (1) The governor. 27 (2) The legislative council in an electronic format under 28 IC 5-14-6. 29 The report must include recommendations to facilitate 30 fingerprinting for individuals in rural areas. 31 (d) This section expires December 31, 2025. 32 SECTION 30. An emergency is declared for this act. SB 2—LS 6562/DI 119 22 COMMITTEE REPORT Madam President: The Senate Committee on Health and Provider Services, to which was referred Senate Bill No. 2, 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 20, line 17, after "(i)" insert "is at least eighteen (18) years of age; (ii)". Page 20, line 19, delete "(ii)" and insert "(iii)". and when so amended that said bill do pass and be reassigned to the Senate Committee on Appropriations. (Reference is to SB 2 as introduced.) CHARBONNEAU, Chairperson Committee Vote: Yeas 11, Nays 0. SB 2—LS 6562/DI 119