LEGISLATIVE SERVICES AGENCY
Office OF FISCAL AND MANAGEMENT ANALYSIS
FISCAL IMPACT STATEMENT
LS 7491 NOTE PREPARED: Feb 13, 2025
BILL NUMBER: SB 463 BILL AMENDED: Feb 13, 2025
SUBJECT: Child Care Matters.
FIRST AUTHOR: Sen. Charbonneau BILL STATUS: CR Adopted - 1
st
House
FIRST SPONSOR:
FUNDS AFFECTED:XGENERAL IMPACT: State & Local
XDEDICATED
XFEDERAL
Summary of Legislation: (Amended) Child Care Expenditure Tax Credits: The bill extends the availability
of the employer child care expenditure tax credit through July 1, 2027.
Early Learning Advisory Committee: The bill adds a representative of an out-of-school-time program to the
membership of the Early Learning Advisory Committee (ELAC). This bill requires the Office to adopt
emergency rules not later than July 1, 2025, to implement the recommendations issued by ELAC.
Staff Ratio and Group Size: The bill sets forth age ranges for which a licensed child care center shall
maintain:
(1) staff to child ratios; and
(2) maximum group sizes.
The bill also 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.
The bill 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.
SB 463 1 Micro Center Pilot Program: The bill 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.
Effective Date: (Amended) Upon passage.
Explanation of State Expenditures: Early Learning Advisory Committee: The bill will increase the
workload of the Office of Early Childhood and Out-of-School Learning (OECOSL), primarily due to the rule
promulgation and recommendation implementation deadlines in the bill. The OECOSL implemented some
recommendations within current laws and regulations. The OECOSL will have additional workload for legal
and financial evaluation of the recommendations.
Staff Ratio and Group Size: The bill’s requirements represent an additional workload on the Office to
annually survey surrounding states and post staff to child ratio information on its website. Also, the Office’s
workload will increase to regulate child care entities for compliance with information postings and group size
and staffing ratios. These additional duties should be able to be implemented with no additional
appropriations, assuming near customary agency staffing and resource levels.
Explanation of State Revenues: (Revised) Child Care Expenditure Tax Credits: The bill extends the
expiration of the credit from July 1, 2025 to July 1, 2027. The bill will reduce General Fund revenue in FY
2026 through FY 2028 by up to $2.5 M.
A taxpayer can claim a credit amount equal to the lesser of 50% of qualified expenditures or $100,000. The
credit may be applied against tax liability for Adjusted Gross Income (AGI) Tax, the Insurance Premiums
Tax, the Nonprofit Agricultural Organization Health Coverage Tax, and the Financial Institutions Tax. The
credit may be carried forward for three years.
Staff Ratio and Group Size: A violations of child care center regulations may result in an action against the
license of the facility, a civil penalty of up to $1,000, or a Class B misdemeanor. Civil penalties are deposited
in the Child Care Fund, a nonreverting fund.
Penalty Provision: If additional court cases occur and fines are collected, revenue to both the Common
School Fund (from fines) and the state General Fund (from court fees) would increase. The maximum fine
for a Class B misdemeanor is $1,000. The total fee revenue per case would range between $113 and $138.
The amount of court fees deposited will vary depending on whether the case is filed in a court of record or
a municipal court. The following linked document describes the fees and distribution of the revenue: Court
fees imposed in criminal, juvenile, and civil violation cases.
Explanation of Local Expenditures: Penalty Provision: A Class B misdemeanor is punishable by up to 180
days in jail.
Explanation of Local Revenues: Penalty Provision: If additional court actions occur and a guilty verdict
is entered, more revenue will be collected by certain local units. If the case is filed in a court of record, the
county general fund will receive $47.40 and qualifying municipalities will receive a share of $3.60. If the
case is filed in a municipal court, the county receives $30, and the municipality will receive $46. The
following linked document describes the fees and distribution of the revenue: Court fees imposed in
SB 463 2 criminal, juvenile, and civil violation cases.
State Agencies Affected: Office of the Secretary of Family and Social Services; Indiana Department of
Revenue.
Local Agencies Affected: Trial courts, local law enforcement agencies, participating counties.
Information Sources: Courtney Penn, OECOSL; Indiana Supreme Court; Indiana Trial Court Fee Manual;
https://iga.in.gov/publications/tax_expenditure_report/2024%20Tax%20Expenditure%20Review%20FIN
AL.pdf.
Fiscal Analyst: Karen Rossen, 317-234-2106, Dhiann Kinsworthy-Blye, 317-234-1360; Camille Tesch,
317-232-5293.
SB 463 3