LEGISLATIVE SERVICES AGENCY OFFICE OF FISCAL AND MANAGEMENT ANALYSIS FISCAL IMPACT STATEMENT LS 7209 NOTE PREPARED: Feb 10, 2025 BILL NUMBER: HB 1253 BILL AMENDED: Jan 27, 2025 SUBJECT: Child Care. FIRST AUTHOR: Rep. Heine BILL STATUS: 2 nd Reading - 1 st House FIRST SPONSOR: FUNDS AFFECTED:XGENERAL IMPACT: State & Local DEDICATED FEDERAL Summary of Legislation: The bill provides that a granted waiver or variance expires three years after the date that the waiver or variance becomes effective. It also provides that, not later than June 30, 2026, the Division of Family Resources (DFR) shall establish an organizational license category for multi-site child care centers operating under one owner, and specifies obligations of the DFR with regard to the new license category. It removes the requirement that a child receiving child care from a school must be the child of a student or employee of the school. Effective Date: July 1, 2025. Explanation of State Expenditures: The cost for the additional license type will depend on the number of entities seeking the license and the number of locations. If additional funds and resources are required, they could be supplied through existing staff and resources currently being used in another program or with new appropriations. Ultimately, the source of funds and resources required to satisfy the requirements of this bill will depend on legislative and administrative actions. Currently, the Office of the Secretary of Family and Social Services (FSSA) indicates that administrative changes may be sufficient to meet the increased workload. Explanation of State Revenues: Explanation of Local Expenditures: Explanation of Local Revenues: Schools with available capacity may have additional children eligible for their program. State Agencies Affected: Office of the Secretary of Family and Social Services HB 1253 1 Local Agencies Affected: Schools with child care programs. Information Sources: Courtney Penn, FSSA; Courtney Hott, FSSA; December 2024 State Staffing Table. Fiscal Analyst: Karen Rossen, 317-234-2106. HB 1253 2