LEGISLATIVE SERVICES AGENCY
Office OF FISCAL AND MANAGEMENT ANALYSIS
FISCAL IMPACT STATEMENT
LS 7491 NOTE PREPARED: Apr 9, 2025
BILL NUMBER: SB 463 BILL AMENDED: Apr 8, 2025
SUBJECT: Child Care Matters.
FIRST AUTHOR: Sen. Charbonneau BILL STATUS: As Passed House
FIRST SPONSOR: Rep. Devon
FUNDS AFFECTED:XGENERAL IMPACT: State & Local
XDEDICATED
XFEDERAL
Summary of Legislation: Child Care Expenditure Tax Credits: The bill extends the availability of the
employer child care expenditure tax credit through July 1, 2027.
Student Caregiver Volunteers: It provides that under specified circumstances, an individual who:
(1) is at least 15 years of age; and
(2) is a student at a school corporation that operates a child care program;
may volunteer as a caregiver for the child care program before completing the statutory requirements for
individuals to act as a volunteer caregiver at a child care program.
Early Learning Advisory Committee: The bill adds two representatives of out-of-school-time programs to
the membership of the Early Learning Advisory Committee.
Staff Ratio and Group Size: The bill provides for purposes of regulation of licensed child care centers that
the Office of the Secretary of Family and Social Services (FSSA) shall:
(1) ensure that:
(A) Indiana's staff to child ratio for a specified age range is not more
stringent than the average of the staff to child ratios permitted for that age
range under the laws of Illinois, Kentucky, Michigan, and Ohio; and
(B) Indiana's maximum group size for a specified age range is not more
stringent than the average of the maximum group sizes permitted for that
age range under the laws of Illinois, Kentucky, Michigan, and Ohio; and
(2) annually publish on the FSSA's website the:
(A) staff to child ratio; and
(B) maximum group size;
that a licensed child care center is required to maintain for the specified age ranges.
It provides exceptions to the bill's group size provisions for:
(1) an indoor or outdoor area of a child care center that provides at least 75 square feet of
space per child; and
SB 463 1 (2) a child care center's cafeteria.
Micro Center Pilot Program: It provides that if the FSSA 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: Upon passage.
Explanation of State Expenditures: Early Learning Advisory Committee: The bill adds two members to
the Early Learning Advisory Committee (ELAC). Members of the ELAC who are not state employees are
entitled to the minimum salary per diem, currently $100 per day, and reimbursement for traveling and other
actual expenses. The ELAC is to meet at least six times a year.
Staff Ratio and Group Size: The bill’s requirements represent an additional workload on the FSSA to
annually survey surrounding states and review the child ratio information on its website. Also, the FSSA’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: 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
SB 463 2 following linked document describes the fees and distribution of the revenue: Court fees imposed in
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