*SB0463.2*
February 14, 2025
SENATE BILL No. 463
_____
DIGEST OF SB 463 (Updated February 13, 2025 11:04 am - DI 120)
Citations Affected: IC 6-3.1; IC 12-17.2; noncode.
Synopsis: Child care matters. Extends the availability of the employer
child care expenditure tax 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
(Continued next page)
Effective: Upon passage.
Charbonneau, Alting, Yoder,
Spencer, Pol Jr., Ford J.D.,
Randolph Lonnie M
January 13, 2025, read first time and referred to Committee on Health and Provider
Services.
January 29, 2025, reported favorably — Do Pass; reassigned to Committee on
Appropriations.
February 13, 2025, amended, reported favorably — Do Pass.
SB 463—LS 7491/DI 119 Digest Continued
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 that at least five
child care providers are participating in the pilot program. Requires the
office to adopt emergency rules not later than July 1, 2025, to
implement the recommendations issued by ELAC.
SB 463—LS 7491/DI 119SB 463—LS 7491/DI 119 February 14, 2025
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 6-3.1-39.5-15, AS ADDED BY P.L.201-2023,
2 SECTION 103, IS AMENDED TO READ AS FOLLOWS
3 [EFFECTIVE UPON PASSAGE]: Sec. 15. This chapter expires July
4 1, 2025. 2027.
5 SECTION 2. IC 12-17.2-3.8-5, AS AMENDED BY P.L.92-2024,
6 SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
7 UPON PASSAGE]: Sec. 5. (a) The early learning advisory committee
8 is established to do the following:
9 (1) Establish child developmental and educational goals for
10 Indiana's early learning system, including the development of
11 standards and objectives for early education programs that receive
12 state or federal funds.
13 (2) Design and maintain an approach to measuring progress
14 toward the goals established under subdivision (1) that include
15 objective measures of academic quality.
SB 463—LS 7491/DI 119 2
1 (3) Assess the attainment of the goals established under
2 subdivision (1) and evaluate the efficacy of state and federal
3 spending on Indiana's early learning system.
4 (4) Assess whether the requirements for early education program
5 licensure:
6 (A) create an equitable standard for health and safety across all
7 early education program types;
8 (B) reinforce the goals established under subdivision (1); and
9 (C) support the sustainability of Indiana's early learning
10 system.
11 (5) Conduct periodic statewide needs assessments concerning the
12 quality and availability of early education programs for children
13 from birth to the age of school entry, including the availability of
14 high quality prekindergarten education for low income children
15 in Indiana.
16 (6) Identify opportunities for, and barriers to, collaboration and
17 coordination among federally and state funded child development,
18 child care, and early childhood education programs and services,
19 including governmental agencies that administer the programs
20 and services.
21 (7) Design early education workforce strategies, including
22 recommendations on how to advance professional development.
23 (8) Assess the capacity and effectiveness of pathways to support
24 training and recruitment of early educators.
25 (9) Not later than November 30 of each year, develop and make
26 recommendations to the governor and, in an electronic format
27 under IC 5-14-6, to the legislative council concerning the results
28 of the committee's work under subdivisions (1) through (8).
29 (10) Not later than May 1, 2024, commission a third party
30 evaluation to assess existing regulations for child care providers
31 and provide a report containing recommendations to:
32 (A) maintain health and safety standards;
33 (B) streamline administrative burdens, program standards, and
34 reporting requirements for child care providers;
35 (C) provide flexibility for a child care provider with a Level 3
36 or Level 4 paths to QUALITY program rating to expand to
37 other locations; and
38 (D) assist accredited kindergarten through grade 12
39 institutions in establishing and providing high quality onsite
40 child care and early learning programs.
41 Not later than July 1, 2024, the office of the secretary shall initiate
42 the process of amending the rules adopted by the office under
SB 463—LS 7491/DI 119 3
1 IC 12-17.2-7.2 in consideration of the recommendations of the
2 third party evaluation. This subdivision expires January 1, 2025.
3 (11) Not later than December 31, 2023, develop recommendations
4 for implementing a revised paths to QUALITY program that:
5 (A) maintains health and safety standards;
6 (B) integrates objective measures of kindergarten readiness;
7 (C) contemplates accredited kindergarten through grade 12
8 institutions as onsite providers; and
9 (D) incentivizes child care providers to increase wages for
10 child care workers who complete education and training that
11 result in a postsecondary degree or industry recognized
12 credential.
13 This subdivision expires July 1, 2024.
14 (12) Not later than September 30, 2024, do the following:
15 (A) Complete a study regarding compensation in Indiana for:
16 (i) early childhood educators; and
17 (ii) caregivers at out-of-school-time programs;
18 by collecting compensation data throughout Indiana.
19 (B) Create an online dashboard to allow access to
20 compensation data.
21 (C) Issue a report containing the committee's findings and
22 recommendations on compensation in Indiana for:
23 (i) early childhood educators; and
24 (ii) caregivers at out-of-school-time programs.
25 (b) The committee consists of the following thirteen (13) fourteen
26 (14) members:
27 (1) The secretary of education or the secretary's designee.
28 (2) The secretary of family and social services or the secretary's
29 designee.
30 (3) Seven (7) Eight (8) members appointed by the governor as
31 follows:
32 (A) A representative of an organization with an interest in
33 training the early childhood education workforce.
34 (B) A representative of a Head Start program under 42 U.S.C.
35 9831 et seq.
36 (C) A member of the general public who has an interest in
37 early childhood education.
38 (D) A representative of an early childhood education provider.
39 (E) A representative from a school corporation who has an
40 interest in strengthening the transition from early childhood
41 education to elementary education.
42 (F) A representative of business with an interest in early
SB 463—LS 7491/DI 119 4
1 childhood education.
2 (G) A representative of the nonprofit or philanthropic
3 community with an interest in early childhood education.
4 (H) A representative of an out-of-school-time program.
5 (4) One (1) member who:
6 (A) is appointed by the speaker of the house of representatives;
7 (B) is not a member of the general assembly; and
8 (C) shall serve as a nonvoting member.
9 (5) One (1) member who:
10 (A) is appointed by the president pro tempore of the senate;
11 (B) is not a member of the general assembly; and
12 (C) shall serve as a nonvoting member.
13 (6) One (1) member who:
14 (A) is appointed by the minority leader of the house of
15 representatives;
16 (B) is not a member of the general assembly; and
17 (C) shall serve as a nonvoting member.
18 (7) One (1) member who:
19 (A) is appointed by the minority leader of the senate;
20 (B) is not a member of the general assembly; and
21 (C) shall serve as a nonvoting member.
22 (c) Subject to section 5.1 of this chapter, members appointed under
23 subsection (b)(3) through (b)(7) serve for three (3) year terms. The
24 members of the committee serve at the pleasure of the appointing
25 authority.
26 (d) The governor shall appoint a member of the committee to serve
27 as chairperson of the committee. The committee shall meet at least six
28 (6) times each calendar year at the call of the chairperson.
29 (e) The division shall, in consultation with the department of
30 education, staff the committee.
31 (f) The expenses of the committee shall be paid from the funds of
32 the division.
33 (g) Each member of the committee who is not a state employee is
34 entitled to the minimum salary per diem provided by IC 4-10-11-2.1(b).
35 The member is also entitled to reimbursement for traveling expenses
36 as provided under IC 4-13-1-4 and other expenses actually incurred in
37 connection with the member's duties as provided in the state policies
38 and procedures established by the Indiana department of administration
39 and approved by the budget agency.
40 (h) Each member of the committee who is a state employee but who
41 is not a member of the general assembly is entitled to reimbursement
42 for traveling expenses as provided under IC 4-13-1-4 and other
SB 463—LS 7491/DI 119 5
1 expenses actually incurred in connection with the member's duties as
2 provided in the state policies and procedures established by the Indiana
3 department of administration and approved by the budget agency.
4 (i) Each member of the committee who is a member of the general
5 assembly is entitled to receive the same per diem, mileage, and travel
6 allowances paid to legislative members of interim study committees
7 established by the legislative council. Per diem, mileage, and travel
8 allowances paid under this section shall be paid from appropriations
9 made to the legislative council or the legislative services agency.
10 (j) The affirmative votes of a majority of the voting members
11 appointed to the committee are required for the committee to take
12 action on any measure, including final reports.
13 SECTION 3. IC 12-17.2-4-14.5 IS ADDED TO THE INDIANA
14 CODE AS A NEW SECTION TO READ AS FOLLOWS
15 [EFFECTIVE UPON PASSAGE]: Sec. 14.5. (a) As used in this
16 section, "bordering state" means any of the following:
17 (1) Illinois.
18 (2) Kentucky.
19 (3) Michigan.
20 (4) Ohio.
21 (b) As used in this section, "child care facility" means:
22 (1) a child care center in Indiana; or
23 (2) a facility comparable to a child care center in a bordering
24 state.
25 (c) As used in this section, "comparator group size" means the
26 maximum allowable group size that applies to an age range set
27 forth in subsection (g) for purposes of licensure of child care
28 facilities in a bordering state.
29 (d) As used in this section, "comparator staff to child ratio"
30 means the required staff to child ratio that applies to an age range
31 set forth in subsection (g) for purposes of licensure of child care
32 facilities in a bordering state.
33 (e) As used in this section, "group" means a portion of the
34 children for whom a child care facility is providing supervision
35 who are generally assigned by the child care facility to be
36 supervised:
37 (1) in the same room or space; and
38 (2) by the same staff member or members of the child care
39 facility.
40 (f) As used in this section, "staff to child ratio" means, for a
41 specified age range, a fraction:
42 (1) the numerator of which is one (1); and
SB 463—LS 7491/DI 119 6
1 (2) the denominator of which is the maximum number of
2 children within that age range that a child care facility may
3 allow to be supervised by a single staff member of the child
4 care facility under the laws of the state in which the child care
5 facility is licensed.
6 (g) A licensed child care center shall maintain the child to staff
7 ratio established under subsection (h) and maximum group size
8 established under subsection (i) for each of the following age
9 ranges:
10 (1) Less than twelve (12) months of age.
11 (2) At least twelve (12) months of age but less than eighteen
12 (18) months of age.
13 (3) At least eighteen (18) months of age but less than
14 twenty-four (24) months of age.
15 (4) At least twenty-four (24) months of age but less than thirty
16 (30) months of age.
17 (5) At least thirty (30) months of age but less than thirty-six
18 (36) months of age.
19 (6) At least thirty-six (36) months of age but less than
20 forty-eight (48) months of age.
21 (7) At least forty-eight (48) months of age but less than sixty
22 (60) months of age.
23 (8) At least sixty (60) months of age but less than seventy-two
24 (72) months of age.
25 (9) Seventy-two (72) months of age or older.
26 (h) A licensed child care center must maintain a staff to child
27 ratio for each age range set forth in subsection (g) that is equal to
28 the lowest comparator staff to child ratio for that age range, unless
29 the lowest comparator staff to child ratio for the age range is
30 higher than the staff to child ratio in effect for the age range under
31 this section.
32 (i) A licensed child care center must maintain a maximum group
33 size for each age range set forth in subsection (g) that is equal to
34 the highest comparator group size for that age range, unless the
35 highest comparator group size for the age range is less than the
36 maximum group size in effect for the age range under this section.
37 (j) Not later than December 1 of each year, the office of the
38 secretary shall publish on the website of the office of the secretary
39 the:
40 (1) staff to child ratio that a licensed child care center is
41 required to maintain under subsection (h); and
42 (2) maximum group size that a licensed child care center is
SB 463—LS 7491/DI 119 7
1 required to maintain under subsection (i);
2 for each age range set forth in subsection (g).
3 (k) For the duration of each calendar year, a licensed child care
4 center shall maintain for each age range set forth in subsection (g)
5 the:
6 (1) staff to child ratio; and
7 (2) maximum group size;
8 that is posted on the website of the office of the secretary under
9 subsection (j) as of December 1 of the immediately preceding year.
10 SECTION 4. IC 12-17.2-7.6-3.1 IS ADDED TO THE INDIANA
11 CODE AS A NEW SECTION TO READ AS FOLLOWS
12 [EFFECTIVE UPON PASSAGE]: Sec. 3.1. If as of July 1, 2025:
13 (1) at least five (5) licensees have applied to participate in the
14 pilot program under section 3(c)(1) of this chapter; and
15 (2) the office of the secretary has selected less than five (5) of
16 the applicant licensees to participate in the pilot program
17 under section 3(c)(2) of this chapter;
18 the office of the secretary shall, not later than July 1, 2025, and
19 subject to section 3(d) of this chapter, select additional applicant
20 licensees for participation in the pilot program such that at least
21 five (5) licensees are participating in the pilot program.
22 SECTION 5. [EFFECTIVE UPON PASSAGE] (a) As used in this
23 SECTION, "office of the secretary" means the office of the
24 secretary of family and social services established by IC 12-8-1.5-1.
25 (b) Not later than July 1, 2025, the office of the secretary shall
26 adopt interim rules under IC 4-22-2-37.1 to implement the
27 recommendations issued by the early learning advisory committee
28 under IC 12-17.2-3.8-5, as amended by this act.
29 (c) This SECTION expires January 1, 2026.
30 SECTION 6. [EFFECTIVE UPON PASSAGE] (a) As used in this
31 SECTION, "office of the secretary" means office of the secretary
32 of family and social services established by IC 12-8-1.5-1.
33 (b) Not later than July 1, 2025, the office of the secretary shall
34 initiate the process of amending 470 IAC 3-4.7 in conformance with
35 IC 12-17.2-4-14.5, as added by this act.
36 (c) This SECTION expires January 1, 2026.
37 SECTION 7. An emergency is declared for this act.
SB 463—LS 7491/DI 119 8
COMMITTEE REPORT
Mr. President: The Senate Committee on Health and Provider
Services, to which was referred Senate Bill No. 463, has had the same
under consideration and begs leave to report the same back to the
Senate with the recommendation that said bill DO PASS and be
reassigned to the Senate Committee on Appropriations.
(Reference is to SB 463 as introduced.)
CHARBONNEAU, Chairperson
Committee Vote: Yeas 11, Nays 1.
_____
COMMITTEE REPORT
Mr. President: The Senate Committee on Appropriations, to which
was referred Senate Bill No. 463, 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 1, delete lines 1 through 15.
Page 2, delete lines 1 through 8.
Page 8, delete lines 3 through 42.
Delete page 9.
Page 10, delete lines 1 through 33.
Renumber all SECTIONS consecutively.
and when so amended that said bill do pass.
(Reference is to SB 463 as printed January 30, 2025.)
MISHLER, Chairperson
Committee Vote: Yeas 11, Nays 0.
SB 463—LS 7491/DI 119