Introduced Version
SENATE BILL No. 463
_____
DIGEST OF INTRODUCED BILL
Citations Affected: IC 6-3.1-39.5; IC 12-17.2.
Synopsis: Child care matters. Adds additional qualified child care
expenditures for purposes of the employer child care expenditure tax
credit and extends the availability of the credit through July 1, 2027.
Adds a representative of an out-of-school-time program to the
membership of the early learning advisory committee (ELAC). Sets
forth age ranges for which a licensed child care center shall maintain:
(1) staff to child ratios; and (2) maximum group sizes. Provides that:
(1) the required staff to child ratio for each age range is equal to the
lowest staff to child ratio for that age range under the laws of Illinois,
Kentucky, Michigan, and Ohio (bordering states), unless the lowest
staff to child ratio for the age range in the bordering states is higher
than the staff to child ratio for the age range in Indiana; and (2) the
required maximum group size for each age range is equal to the highest
maximum group size for that age range under the laws of the bordering
states, unless the highest maximum group size for the age range in the
bordering states is less than the maximum group size for the age range
in Indiana. Requires: (1) the office of the secretary of family and social
services (office) to post the required staff to child ratios and maximum
group sizes on the office's website not later than December 1 of each
year; and (2) a licensed child care center to maintain the posted staff to
child ratios and maximum group sizes for the duration of the next
calendar year. Provides that if the office has received at least five
applications from child care providers wishing to participate in the
micro center pilot program (pilot program) but has selected less than
five applicants for participation in the pilot program, the office shall
select additional applicants for participation in the pilot program such
(Continued next page)
Effective: Upon passage; July 1, 2025.
Charbonneau
January 13, 2025, read first time and referred to Committee on Health and Provider
Services.
2025 IN 463—LS 7491/DI 119 Digest Continued
that at least five child care providers are participating in the pilot
program. Establishes the local child care assistance program (program)
for the purpose of providing a county with assistance in expanding the
availability of child care in the county and provides the following with
regard to the program: (1) That the office shall administer the program
and may provide matching grants to a county participating in the
program. (2) That a county that wishes to receive a matching grant
must enter into a memorandum of understanding with office regarding
the purposes for which the county may use the matching grant. (3) The
requirements for: (A) a county that receives a matching grant under the
program to report specified information to the office; and (B) the office
to submit an annual report to the legislative council regarding the
program. Requires the office to adopt emergency rules not later than
July 1, 2025, to implement the recommendations issued by ELAC.
2025 IN 463—LS 7491/DI 1192025 IN 463—LS 7491/DI 119 Introduced
First Regular Session of the 124th General Assembly (2025)
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 2024 Regular Session of the General Assembly.
SENATE BILL No. 463
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 6-3.1-39.5-3, AS ADDED BY P.L.201-2023,
2 SECTION 103, IS AMENDED TO READ AS FOLLOWS
3 [EFFECTIVE UPON PASSAGE]: Sec. 3. As used in this chapter,
4 "qualified child care expenditure" means an expenditure:
5 (1) for the acquisition, construction, rehabilitation, or expansion
6 of property used as part of an Indiana qualified child care facility
7 of a taxpayer that is operated for the taxpayer's employees;
8 (2) incurred under a contract between a taxpayer and an Indiana
9 qualified child care facility to provide for the acquisition,
10 construction, rehabilitation, or expansion of property used as part
11 of the Indiana qualified child care facility; or
12 (3) for purposes of complying with the qualified child care facility
13 licensure requirements under IC 12-17.2, as part of the taxpayer
14 acquiring or constructing an Indiana qualified child care facility;
15 (4) for operating costs of the taxpayer's Indiana qualified
2025 IN 463—LS 7491/DI 119 2
1 child care facility, including costs related to:
2 (A) employee training;
3 (B) scholarship programs; and
4 (C) providing increased compensation to employees with
5 higher levels of child care training; or
6 (5) incurred under a contract with an Indiana qualified child
7 care facility for the Indiana qualified child care facility's
8 provision of child care services to the taxpayer's employees.
9 SECTION 2. IC 6-3.1-39.5-15, AS ADDED BY P.L.201-2023,
10 SECTION 103, IS AMENDED TO READ AS FOLLOWS
11 [EFFECTIVE UPON PASSAGE]: Sec. 15. This chapter expires July
12 1, 2025. 2027.
13 SECTION 3. IC 12-17.2-3.8-5, AS AMENDED BY P.L.92-2024,
14 SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
15 UPON PASSAGE]: Sec. 5. (a) The early learning advisory committee
16 is established to do the following:
17 (1) Establish child developmental and educational goals for
18 Indiana's early learning system, including the development of
19 standards and objectives for early education programs that receive
20 state or federal funds.
21 (2) Design and maintain an approach to measuring progress
22 toward the goals established under subdivision (1) that include
23 objective measures of academic quality.
24 (3) Assess the attainment of the goals established under
25 subdivision (1) and evaluate the efficacy of state and federal
26 spending on Indiana's early learning system.
27 (4) Assess whether the requirements for early education program
28 licensure:
29 (A) create an equitable standard for health and safety across all
30 early education program types;
31 (B) reinforce the goals established under subdivision (1); and
32 (C) support the sustainability of Indiana's early learning
33 system.
34 (5) Conduct periodic statewide needs assessments concerning the
35 quality and availability of early education programs for children
36 from birth to the age of school entry, including the availability of
37 high quality prekindergarten education for low income children
38 in Indiana.
39 (6) Identify opportunities for, and barriers to, collaboration and
40 coordination among federally and state funded child development,
41 child care, and early childhood education programs and services,
42 including governmental agencies that administer the programs
2025 IN 463—LS 7491/DI 119 3
1 and services.
2 (7) Design early education workforce strategies, including
3 recommendations on how to advance professional development.
4 (8) Assess the capacity and effectiveness of pathways to support
5 training and recruitment of early educators.
6 (9) Not later than November 30 of each year, develop and make
7 recommendations to the governor and, in an electronic format
8 under IC 5-14-6, to the legislative council concerning the results
9 of the committee's work under subdivisions (1) through (8).
10 (10) Not later than May 1, 2024, commission a third party
11 evaluation to assess existing regulations for child care providers
12 and provide a report containing recommendations to:
13 (A) maintain health and safety standards;
14 (B) streamline administrative burdens, program standards, and
15 reporting requirements for child care providers;
16 (C) provide flexibility for a child care provider with a Level 3
17 or Level 4 paths to QUALITY program rating to expand to
18 other locations; and
19 (D) assist accredited kindergarten through grade 12
20 institutions in establishing and providing high quality onsite
21 child care and early learning programs.
22 Not later than July 1, 2024, the office of the secretary shall initiate
23 the process of amending the rules adopted by the office under
24 IC 12-17.2-7.2 in consideration of the recommendations of the
25 third party evaluation. This subdivision expires January 1, 2025.
26 (11) Not later than December 31, 2023, develop recommendations
27 for implementing a revised paths to QUALITY program that:
28 (A) maintains health and safety standards;
29 (B) integrates objective measures of kindergarten readiness;
30 (C) contemplates accredited kindergarten through grade 12
31 institutions as onsite providers; and
32 (D) incentivizes child care providers to increase wages for
33 child care workers who complete education and training that
34 result in a postsecondary degree or industry recognized
35 credential.
36 This subdivision expires July 1, 2024.
37 (12) Not later than September 30, 2024, do the following:
38 (A) Complete a study regarding compensation in Indiana for:
39 (i) early childhood educators; and
40 (ii) caregivers at out-of-school-time programs;
41 by collecting compensation data throughout Indiana.
42 (B) Create an online dashboard to allow access to
2025 IN 463—LS 7491/DI 119 4
1 compensation data.
2 (C) Issue a report containing the committee's findings and
3 recommendations on compensation in Indiana for:
4 (i) early childhood educators; and
5 (ii) caregivers at out-of-school-time programs.
6 (b) The committee consists of the following thirteen (13) fourteen
7 (14) members:
8 (1) The secretary of education or the secretary's designee.
9 (2) The secretary of family and social services or the secretary's
10 designee.
11 (3) Seven (7) Eight (8) members appointed by the governor as
12 follows:
13 (A) A representative of an organization with an interest in
14 training the early childhood education workforce.
15 (B) A representative of a Head Start program under 42 U.S.C.
16 9831 et seq.
17 (C) A member of the general public who has an interest in
18 early childhood education.
19 (D) A representative of an early childhood education provider.
20 (E) A representative from a school corporation who has an
21 interest in strengthening the transition from early childhood
22 education to elementary education.
23 (F) A representative of business with an interest in early
24 childhood education.
25 (G) A representative of the nonprofit or philanthropic
26 community with an interest in early childhood education.
27 (H) A representative of an out-of-school-time program.
28 (4) One (1) member who:
29 (A) is appointed by the speaker of the house of representatives;
30 (B) is not a member of the general assembly; and
31 (C) shall serve as a nonvoting member.
32 (5) One (1) member who:
33 (A) is appointed by the president pro tempore of the senate;
34 (B) is not a member of the general assembly; and
35 (C) shall serve as a nonvoting member.
36 (6) One (1) member who:
37 (A) is appointed by the minority leader of the house of
38 representatives;
39 (B) is not a member of the general assembly; and
40 (C) shall serve as a nonvoting member.
41 (7) One (1) member who:
42 (A) is appointed by the minority leader of the senate;
2025 IN 463—LS 7491/DI 119 5
1 (B) is not a member of the general assembly; and
2 (C) shall serve as a nonvoting member.
3 (c) Subject to section 5.1 of this chapter, members appointed under
4 subsection (b)(3) through (b)(7) serve for three (3) year terms. The
5 members of the committee serve at the pleasure of the appointing
6 authority.
7 (d) The governor shall appoint a member of the committee to serve
8 as chairperson of the committee. The committee shall meet at least six
9 (6) times each calendar year at the call of the chairperson.
10 (e) The division shall, in consultation with the department of
11 education, staff the committee.
12 (f) The expenses of the committee shall be paid from the funds of
13 the division.
14 (g) Each member of the committee who is not a state employee is
15 entitled to the minimum salary per diem provided by IC 4-10-11-2.1(b).
16 The member is also entitled to reimbursement for traveling expenses
17 as provided under IC 4-13-1-4 and other expenses actually incurred in
18 connection with the member's duties as provided in the state policies
19 and procedures established by the Indiana department of administration
20 and approved by the budget agency.
21 (h) Each member of the committee who is a state employee but who
22 is not a member of the general assembly is entitled to reimbursement
23 for traveling expenses as provided under IC 4-13-1-4 and other
24 expenses actually incurred in connection with the member's duties as
25 provided in the state policies and procedures established by the Indiana
26 department of administration and approved by the budget agency.
27 (i) Each member of the committee who is a member of the general
28 assembly is entitled to receive the same per diem, mileage, and travel
29 allowances paid to legislative members of interim study committees
30 established by the legislative council. Per diem, mileage, and travel
31 allowances paid under this section shall be paid from appropriations
32 made to the legislative council or the legislative services agency.
33 (j) The affirmative votes of a majority of the voting members
34 appointed to the committee are required for the committee to take
35 action on any measure, including final reports.
36 SECTION 4. IC 12-17.2-4-14.5 IS ADDED TO THE INDIANA
37 CODE AS A NEW SECTION TO READ AS FOLLOWS
38 [EFFECTIVE UPON PASSAGE]: Sec. 14.5. (a) As used in this
39 section, "bordering state" means any of the following:
40 (1) Illinois.
41 (2) Kentucky.
42 (3) Michigan.
2025 IN 463—LS 7491/DI 119 6
1 (4) Ohio.
2 (b) As used in this section, "child care facility" means:
3 (1) a child care center in Indiana; or
4 (2) a facility comparable to a child care center in a bordering
5 state.
6 (c) As used in this section, "comparator group size" means the
7 maximum allowable group size that applies to an age range set
8 forth in subsection (g) for purposes of licensure of child care
9 facilities in a bordering state.
10 (d) As used in this section, "comparator staff to child ratio"
11 means the required staff to child ratio that applies to an age range
12 set forth in subsection (g) for purposes of licensure of child care
13 facilities in a bordering state.
14 (e) As used in this section, "group" means a portion of the
15 children for whom a child care facility is providing supervision
16 who are generally assigned by the child care facility to be
17 supervised:
18 (1) in the same room or space; and
19 (2) by the same staff member or members of the child care
20 facility.
21 (f) As used in this section, "staff to child ratio" means, for a
22 specified age range, a fraction:
23 (1) the numerator of which is one (1); and
24 (2) the denominator of which is the maximum number of
25 children within that age range that a child care facility may
26 allow to be supervised by a single staff member of the child
27 care facility under the laws of the state in which the child care
28 facility is licensed.
29 (g) A licensed child care center shall maintain the child to staff
30 ratio established under subsection (h) and maximum group size
31 established under subsection (i) for each of the following age
32 ranges:
33 (1) Less than twelve (12) months of age.
34 (2) At least twelve (12) months of age but less than eighteen
35 (18) months of age.
36 (3) At least eighteen (18) months of age but less than
37 twenty-four (24) months of age.
38 (4) At least twenty-four (24) months of age but less than thirty
39 (30) months of age.
40 (5) At least thirty (30) months of age but less than thirty-six
41 (36) months of age.
42 (6) At least thirty-six (36) months of age but less than
2025 IN 463—LS 7491/DI 119 7
1 forty-eight (48) months of age.
2 (7) At least forty-eight (48) months of age but less than sixty
3 (60) months of age.
4 (8) At least sixty (60) months of age but less than seventy-two
5 (72) months of age.
6 (9) Seventy-two (72) months of age or older.
7 (h) A licensed child care center must maintain a staff to child
8 ratio for each age range set forth in subsection (g) that is equal to
9 the lowest comparator staff to child ratio for that age range, unless
10 the lowest comparator staff to child ratio for the age range is
11 higher than the staff to child ratio in effect for the age range under
12 this section.
13 (i) A licensed child care center must maintain a maximum group
14 size for each age range set forth in subsection (g) that is equal to
15 the highest comparator group size for that age range, unless the
16 highest comparator group size for the age range is less than the
17 maximum group size in effect for the age range under this section.
18 (j) Not later than December 1 of each year, the office of the
19 secretary shall publish on the website of the office of the secretary
20 the:
21 (1) staff to child ratio that a licensed child care center is
22 required to maintain under subsection (h); and
23 (2) maximum group size that a licensed child care center is
24 required to maintain under subsection (i);
25 for each age range set forth in subsection (g).
26 (k) For the duration of each calendar year, a licensed child care
27 center shall maintain for each age range set forth in subsection (g)
28 the:
29 (1) staff to child ratio; and
30 (2) maximum group size;
31 that is posted on the website of the office of the secretary under
32 subsection (j) as of December 1 of the immediately preceding year.
33 SECTION 5. IC 12-17.2-7.6-3.1 IS ADDED TO THE INDIANA
34 CODE AS A NEW SECTION TO READ AS FOLLOWS
35 [EFFECTIVE UPON PASSAGE]: Sec. 3.1. If as of July 1, 2025:
36 (1) at least five (5) licensees have applied to participate in the
37 pilot program under section 3(c)(1) of this chapter; and
38 (2) the office of the secretary has selected less than five (5) of
39 the applicant licensees to participate in the pilot program
40 under section 3(c)(2) of this chapter;
41 the office of the secretary shall, not later than July 1, 2025, and
42 subject to section 3(d) of this chapter, select additional applicant
2025 IN 463—LS 7491/DI 119 8
1 licensees for participation in the pilot program such that at least
2 five (5) licensees are participating in the pilot program.
3 SECTION 6. IC 12-17.2-7.7 IS ADDED TO THE INDIANA CODE
4 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
5 JULY 1, 2025]:
6 Chapter 7.7. Local Child Care Assistance Program
7 Sec. 1. As used in this chapter, "grant fund" means the local
8 child care assistance grant fund established by section 6 of this
9 chapter.
10 Sec. 2. As used in this chapter, "matching grant" means funds
11 transferred by the office of the secretary from the general account
12 of the grant fund to a county's county match account in the grant
13 fund.
14 Sec. 3. As used in this chapter, "program" means the local child
15 care assistance program established by section 4 of this chapter.
16 Sec. 4. (a) The local child care assistance program is established
17 for the purpose of providing a county with assistance in expanding
18 the availability of child care in the county.
19 (b) The office of the secretary shall administer the program.
20 Sec. 5. (a) A county may apply to the office of the secretary, in
21 a manner prescribed by the office of the secretary, to participate
22 in the program.
23 (b) The office of the secretary may make any of the following
24 assistance available to a county participating in the program:
25 (1) Matching grants.
26 (2) Technical, analytical, and communications assistance.
27 (3) Training.
28 (4) Guidance regarding licensure of child care providers.
29 (5) Any other assistance the office of the secretary chooses to
30 offer through the program.
31 Sec. 6. (a) The local child care assistance grant fund is
32 established for the purpose of receiving and disbursing funds for
33 purposes of the program.
34 (b) The office of the secretary shall administer the grant fund.
35 (c) The grant fund consists of:
36 (1) appropriations to the grant fund by the general assembly;
37 (2) grants, gifts, and donations intended for deposit in the
38 grant fund; and
39 (3) funds transferred to the grant fund by counties
40 participating in the program.
41 (d) A general account is established within the grant fund for
42 purposes of receiving and disbursing funds described in subsection
2025 IN 463—LS 7491/DI 119 9
1 (c)(1) and (c)(2) that are deposited in the grant fund.
2 (e) The office of the secretary shall establish a county match
3 account within the grant fund for each county that participates in
4 the program for purposes of receiving and disbursing funds
5 transferred to the grant fund by the county.
6 (f) The expenses of administering the grant fund shall be paid
7 from money in the grant fund.
8 (g) Funds remaining in the grant fund at the end of a state fiscal
9 year do not revert to the state general fund.
10 Sec. 7. (a) Subject to the available balance in the general
11 account of the grant fund, the office of the secretary shall, on the
12 first day of each month:
13 (1) transfer from the general account of the grant fund to a
14 county's county match account in the grant fund one dollar
15 ($1) for every one dollar ($1) deposited by the county in the
16 county's county match account in the immediately preceding
17 month; and
18 (2) after making the transfer under subdivision (1), disburse
19 the money in the county's county match account to the county.
20 (b) A county that requests a matching grant through the
21 program shall, as a condition of receiving the matching grant,
22 enter into a memorandum of understanding with the office of the
23 secretary that prescribes the purposes for which the county may
24 use matching grants received by the county.
25 (c) A county may accept private funds for deposit in the county's
26 county match account. The office of the secretary shall not include
27 private funds deposited by a county in the county's county match
28 account in the calculation of the amount transferred by the office
29 of the secretary to the county's county match account under
30 subsection (a).
31 Sec. 8. Not later than March 1 of each year, a county that
32 received one (1) or more matching grants in the immediately
33 preceding calendar year shall submit a report to the office of the
34 secretary that includes:
35 (1) an accounting of the purposes for which the county used
36 the matching grants received by the county in the immediately
37 preceding calendar year;
38 (2) a proposed plan for the county's use of future matching
39 grants received by the county; and
40 (3) any additional information required by the office of the
41 secretary.
42 Sec. 9. If the office of the secretary determines that a county is
2025 IN 463—LS 7491/DI 119 10
1 not complying with the memorandum of understanding entered
2 into by the county under this chapter, the office of the secretary
3 shall:
4 (1) provide written notice to the county that:
5 (A) the office of the secretary has determined that the
6 county is not in compliance with the county's
7 memorandum of understanding; and
8 (B) the county must demonstrate that it is in compliance
9 with the memorandum of understanding not later than
10 thirty (30) days after the date of the notice; and
11 (2) suspend matching grants to the county if the county does
12 not demonstrate to the office of the secretary that the county
13 is in compliance with the memorandum of understanding not
14 later than thirty (30) days after the date of the notice.
15 Sec. 10. Not later than July 1, 2026, and July 1 of each year
16 thereafter, the office of the secretary shall submit a report to the
17 legislative council that provides the following information
18 regarding the program for the preceding calendar year:
19 (1) The counties that participated in the program.
20 (2) The counties that received matching grants, and the total
21 amount of the matching grants received by each county.
22 (3) A summary of the assistance other than matching grants
23 that was provided to counties through the program.
24 (4) A summary of the purposes for which counties reported
25 using matching grants under section 8 of this chapter.
26 (5) The office of the secretary's assessment of the effectiveness
27 of the program in expanding the availability of child care in
28 Indiana.
29 (6) Any changes to the program the office of the secretary
30 recommends to increase the effectiveness of the program in
31 expanding the availability of child care in Indiana.
32 The report must be submitted in an electronic format under
33 IC 5-14-6.
34 SECTION 7. [EFFECTIVE UPON PASSAGE] (a) As used in this
35 SECTION, "office of the secretary" means the office of the
36 secretary of family and social services established by IC 12-8-1.5-1.
37 (b) Not later than July 1, 2025, the office of the secretary shall
38 adopt interim rules under IC 4-22-2-37.1 to implement the
39 recommendations issued by the early learning advisory committee
40 under IC 12-17.2-3.8-5, as amended by this act.
41 (c) This SECTION expires January 1, 2026.
42 SECTION 8. [EFFECTIVE UPON PASSAGE] (a) As used in this
2025 IN 463—LS 7491/DI 119 11
1 SECTION, "office of the secretary" means office of the secretary
2 of family and social services established by IC 12-8-1.5-1.
3 (b) Not later than July 1, 2025, the office of the secretary shall
4 initiate the process of amending 470 IAC 3-4.7 in conformance with
5 IC 12-17.2-4-14.5, as added by this act.
6 (c) This SECTION expires January 1, 2026.
7 SECTION 9. An emergency is declared for this act.
2025 IN 463—LS 7491/DI 119