HB 1219

                                                              Introduced Version
            HOUSE BILL No. 1219
                  _____
               DIGEST OF INTRODUCED BILL
Citations Affected: IC 12-7-2; IC 12-14-31-3; IC 12-17.2-7.2.
Synopsis: Prekindergarten program enrollment. Amends the definition
of "eligible child" for purposes of the prekindergarten program
(program). Removes provisions regarding the program that require: (1)
the office of the secretary of family and social services to determine the
number of eligible children who will participate in the program; and (2)
a percentage of matching funds from other sources. Establishes the
prekindergarten expansion grant fund to provide grants to potential
eligible providers and existing eligible providers. Makes a continuous
appropriation to the prekindergarten program fund from the state
general fund in an amount sufficient to carry out the purposes of the
fund. Makes an appropriation to the prekindergarten expansion grant
fund from the state general fund. Repeals certain provisions regarding
the definitions of "eligible child", "extended enrollment period",
"limited eligibility child", "priority enrollment period", "child care
employee", and "child of a child care employee". Repeals or removes
provisions regarding prekindergarten vouchers for limited eligibility
children and children of child care employees. Makes conforming
changes.
Effective: July 1, 2026.
                               Miller K
January 5, 2026, read first time and referred to Committee on Family, Children and Human
Affairs.
2026  IN 1219—LS 6537/DI 152
                                                                                       Introduced
            Second Regular Session of the 124th General Assembly (2026)
 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 2025 Regular Session of the General Assembly.
                   HOUSE BILL No. 1219
   A BILL FOR AN ACT to amend the Indiana Code concerning
 human services and to make an appropriation.
     Be it enacted by the General Assembly of the State of Indiana:
1    SECTION 1. IC 12-7-2-28.5, AS ADDED BY P.L.92-2024,
2 SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3 JULY 1, 2026]: Sec. 28.5. "Child care employee", for purposes of
4 IC 12-17.2-7.2, has the meaning set forth in IC 12-17.2-7.2-0.5.
5 IC 12-14-31, means an individual who:
6      (1) receives compensation as a full-time employee of an entity
7      licensed or regulated under IC 12-17.2, as determined by the
8      office of the secretary of family and social services; or
9      (2) receives compensation as a part-time employee of an entity
10      licensed or regulated under IC 12-17.2 while also pursuing
11      postsecondary study or educational training in child care or
12      early childhood education, as determined by the office of the
13      secretary of family and social services.
14    SECTION 2. IC 12-7-2-31.4 IS REPEALED [EFFECTIVE JULY
15 1, 2026]. Sec. 31.4. "Child of a child care employee", for purposes of
16 IC 12-17.2-7.2, has the meaning set forth in IC 12-17.2-7.2-0.6.
17    SECTION 3. IC 12-7-2-79.5 IS ADDED TO THE INDIANA CODE
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                                    2
1 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
2 1, 2026]: Sec. 79.5. "Expansion fund", for purposes of
3 IC 12-17.2-7.2, has the meaning set forth in IC 12-17.2-7.2-2.1.
4    SECTION 4. IC 12-7-2-91, AS AMENDED BY P.L.152-2024,
5 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
6 JULY 1, 2026]: Sec. 91. "Fund" means the following:
7      (1) For purposes of IC 12-12-1-9, the fund described in
8      IC 12-12-1-9.
9      (2) For purposes of IC 12-15-20, the meaning set forth in
10      IC 12-15-20-1.
11      (3) For purposes of IC 12-17-12, the meaning set forth in
12      IC 12-17-12-4.
13      (4) For purposes of IC 12-17.2-7.2, the meaning set forth in
14      IC 12-17.2-7.2-4.7.
15      (5) (4) For purposes of IC 12-17.6, the meaning set forth in
16      IC 12-17.6-1-3.
17      (6) (5) For purposes of IC 12-21-9, the meaning set forth in
18      IC 12-21-9-1.
19      (7) (6) For purposes of IC 12-23-2, the meaning set forth in
20      IC 12-23-2-1.
21      (8) (7) For purposes of IC 12-23-18, the meaning set forth in
22      IC 12-23-18-4.
23      (9) (8) For purposes of IC 12-24-6, the meaning set forth in
24      IC 12-24-6-1.
25      (10) (9) For purposes of IC 12-24-14, the meaning set forth in
26      IC 12-24-14-1.
27      (11) (10) For purposes of IC 12-30-7, the meaning set forth in
28      IC 12-30-7-3.
29    SECTION 5. IC 12-7-2-143.3 IS ADDED TO THE INDIANA
30 CODE AS A NEW SECTION TO READ AS FOLLOWS
31 [EFFECTIVE JULY 1, 2026]: Sec. 143.3. "Prekindergarten fund",
32 for purposes of IC 12-17.2-7.2, has the meaning set forth in
33 IC 12-17.2-7.2-4.7.
34    SECTION 6. IC 12-14-31-3, AS AMENDED BY P.L.213-2025,
35 SECTION 110, IS AMENDED TO READ AS FOLLOWS
36 [EFFECTIVE JULY 1, 2026]: Sec. 3. A household that, at the time of
37 the office of the secretary's initial determination of the household's
38 income eligibility for purposes of entry into the CCDF program:
39      (1) subject to federal law, has a parent or guardian who is working
40      or attending a job training or an educational program;
41      (2) has a household income that does not exceed eighty-five
42      percent (85%) of Indiana's state median income for the
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1household's family size;
2(3) includes a child care employee; (as defined in
3IC 12-17.2-7.2-0.5); and
4(4) otherwise meets federal eligibility requirements for the CCDF
5program;
6 is eligible for assistance under the CCDF program.
7     SECTION 7. IC 12-17.2-7.2-0.5 IS REPEALED [EFFECTIVE
8 JULY 1, 2026]. Sec. 0.5. As used in this chapter, "child care employee"
9 means an individual who:
10(1) receives compensation as a full-time employee of an entity
11licensed or regulated under this article, as determined by the
12office; or
13(2) receives compensation as a part-time employee of an entity
14licensed or regulated under this article while also pursuing
15postsecondary study or educational training in child care or early
16childhood education, as determined by the office.
17     SECTION 8. IC 12-17.2-7.2-0.6 IS REPEALED [EFFECTIVE
18 JULY 1, 2026]. Sec. 0.6. As used in this chapter, "child of a child care
19 employee" means an individual who:
20(1) is at least four (4) years of age and less than five (5) years of
21age on August 1 of the state fiscal year for which a
22prekindergarten voucher is sought for the individual under the
23prekindergarten program;
24(2) is a resident of Indiana or otherwise has legal settlement in
25Indiana, as determined under IC 20-26-11;
26(3) receives qualified early education services from an eligible
27provider, as determined by the office;
28(4) has a parent or guardian who agrees to ensure that the child
29meets the attendance requirements determined by the office;
30(5) resides with a parent or guardian who is a child care
31employee, as determined by the office;
32(6) has a household income that does not exceed eighty-five
33percent (85%) of Indiana's state median income for the
34household's family size; and
35(7) meets the requirements of section 7.2(c) of this chapter.
36     SECTION 9. IC 12-17.2-7.2-1, AS AMENDED BY P.L.213-2025,
37 SECTION 121, IS AMENDED TO READ AS FOLLOWS
38 [EFFECTIVE JULY 1, 2026]: Sec. 1. As used in this chapter, "eligible
39 child" refers to an individual who:
40(1) in the case of an individual who is enrolled before May 1,
412025:
42(A) is at least four (4) years of age and less than five (5) years
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1of age on August 1 of the state fiscal year for which a grant is
2sought under the prekindergarten program;
3(B) is a resident of Indiana or otherwise has legal settlement in
4Indiana, as determined under IC 20-26-11;
5(C) is a member of a household with an annual income that
6does not exceed one hundred fifty percent (150%) of the
7federal poverty level;
8(D) (C) receives qualified early education services from an
9eligible provider, as determined by the office;
10(E) (D) has a parent or guardian who participates in a parental
11engagement and involvement component provided by the
12eligible provider;
13(F) (E) has a parent or guardian who agrees to ensure that the
14child meets the attendance requirements determined by the
15office; and
16(G) (F) meets the requirements under section 7.2(a) and 7.2(c)
177.2(b) of this chapter; and
18      (2) in the case of an individual who is enrolled on or after May 1,
19      2025:
20(A) is at least four (4) years of age and less than five (5) years
21of age on August 1 of the state fiscal year for which a grant is
22sought under the prekindergarten program;
23(B) is a resident of Indiana or otherwise has legal settlement in
24Indiana, as determined under IC 20-26-11;
25(C) is a member of a household with an annual income that
26does not exceed one hundred thirty-five percent (135%) of the
27federal poverty level;
28(D) (C) receives qualified early education services from an
29eligible provider, as determined by the office;
30(E) (D) has a parent or guardian who participates in a parental
31engagement and involvement component provided by the
32eligible provider;
33(F) (E) has a parent or guardian who agrees to ensure that the
34child meets the attendance requirements determined by the
35office; and
36(G) (F) meets the requirements under section 7.2(a) and 7.2(c)
377.2(b) of this chapter.
38    SECTION 10. IC 12-17.2-7.2-2, AS AMENDED BY P.L.92-2024,
39 SECTION 13, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
40 JULY 1, 2026]: Sec. 2. As used in this chapter, "eligible provider"
41 refers to a provider that satisfies the following conditions:
42      (1) The provider is:
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1(A) a:
2(i) child care center licensed under IC 12-17.2-4;
3(ii) child care home licensed under IC 12-17.2-5; or
4(iii) child care ministry registered under IC 12-17.2-6;
5that meets the standards of quality recognized by a Level 3 or
6Level 4 paths to QUALITY program rating;
7(B) a public school, including a charter school;
8(C) a nonpublic school that is accredited by the state board of
9education or a national or regional accreditation agency that is
10recognized by the state board of education; or
11(D) a nonpublic school that is accredited to provide qualified
12early education services by an accrediting agency approved by
13the office of the secretary.
14(2) The provider:
15(A) provides qualified early education services to eligible
16children; limited eligibility children, and children of child care
17employees;
18(B) complies with the agreement with the office concerning
19the delivery of qualified education services and the use of a
20prekindergarten voucher provided under this chapter; and
21(C) complies with CCDF provider eligibility standards in
22accordance with federal requirements for health and safety.
23    SECTION 11. IC 12-17.2-7.2-2.1, AS ADDED BY P.L.268-2019,
24 SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
25 JULY 1, 2026]: Sec. 2.1. As used in this chapter, "extended enrollment
26 period" refers to the period set forth by the office beginning not later
27 than June 1 of each calendar year. "expansion fund" refers to the
28 prekindergarten expansion grant fund established by section 15 of
29 this chapter.
30    SECTION 12. IC 12-17.2-7.2-2.5 IS REPEALED [EFFECTIVE
31 JULY 1, 2026]. Sec. 2.5. As used in this chapter, "limited eligibility
32 child" refers to an individual who:
33(1) is at least four (4) years of age and less than five (5) years of
34age on August 1 of the state fiscal year for which a
35prekindergarten voucher is sought for the individual under the
36prekindergarten program;
37(2) is a resident of Indiana or otherwise has legal settlement in
38Indiana, as determined under IC 20-26-11;
39(3) receives qualified early education services from an eligible
40provider, as determined by the office;
41(4) has a parent or guardian who agrees to ensure that the child
42meets the attendance requirements determined by the office;
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1      (5) has a parent or guardian who participates in a parental
2      engagement and involvement component provided by the eligible
3      provider;
4      (6) is a member of a household with an annual income that does
5      not exceed one hundred eighty-five percent (185%) of the federal
6      poverty level;
7      (7) meets the requirements of section 7.2(b) and 7.2(c) of this
8      chapter; and
9      (8) is not an eligible child or a child of a child care employee.
10    SECTION 13. IC 12-17.2-7.2-4.7, AS AMENDED BY
11 P.L.246-2023, SECTION 9, IS AMENDED TO READ AS FOLLOWS
12 [EFFECTIVE JULY 1, 2026]: Sec. 4.7. As used in this chapter, "fund"
13 "prekindergarten fund" refers to the prekindergarten program fund
14 established by section 13.5 of this chapter.
15    SECTION 14. IC 12-17.2-7.2-5.7 IS REPEALED [EFFECTIVE
16 JULY 1, 2026]. Sec. 5.7. As used in this chapter, "priority enrollment
17 period" refers to the period set forth by the office beginning not later
18 than April 1 of each calendar year, except for calendar year 2024,
19 during which the priority enrollment period may begin later than April
20 1, 2024.
21    SECTION 15. IC 12-17.2-7.2-6, AS AMENDED BY P.L.214-2025,
22 SECTION 7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
23 JULY 1, 2026]: Sec. 6. As used in this chapter, "qualified early
24 education services" refers to a program of early education services that:
25      (1) is provided by an eligible provider to
26(A) an eligible child;
27(B) a limited eligibility child; or
28(C) a child of a child care employee;
29      (2) includes a parental engagement and involvement component
30      in the delivery of early education services that is based on the
31      requirements and guidelines established by the office;
32      (3) administers the kindergarten readiness assessment adopted by
33      the state board of education;
34      (4) aligns with the early learning development framework for
35      prekindergarten approved by the department of education; and
36      (5) meets the design parameters for inclusion in the longitudinal
37      study described in section 12 of this chapter, as determined by the
38      office.
39    SECTION 16. IC 12-17.2-7.2-7, AS AMENDED BY P.L.92-2024,
40 SECTION 17, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
41 JULY 1, 2026]: Sec. 7. (a) The prekindergarten program is established
42 to provide:
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1(1) prekindergarten vouchers for qualified early education
2services in a manner consistent with how funds are distributed
3under the CCDF child care voucher program; and
4(2) grants for expansion plans as described in section 7.4(a)(2) of
5this chapter.
6     (b) The office shall administer the prekindergarten program. The
7 prekindergarten program may include:
8(1) eligible providers in Indiana; and
9(2) potential eligible providers or existing eligible providers as
10described in section 7.4 of this chapter.
11     (c) Beginning July 1, 2020, the total number of prekindergarten
12 vouchers provided during the immediately preceding state fiscal year
13 shall include the number of prekindergarten vouchers issued under a
14 preschool program established in March 2015 that operates in a
15 consolidated city.
16     (d) The prekindergarten program includes eligible providers in any
17 county in Indiana.
18     (e) Subject to the requirements of this chapter, the office shall
19 determine:
20(1) the eligibility requirements, application process, and selection
21process for providing prekindergarten vouchers under the
22prekindergarten program and awarding grants under section 7.4
23of this chapter;
24(2) the administration and reporting requirements for:
25(A) eligible providers; and
26(B) potential eligible providers or existing eligible providers;
27participating in the prekindergarten program; and
28(3) with the assistance of the early learning advisory committee,
29an appropriate outcomes based accountability system for:
30(A) eligible providers; and
31(B) potential eligible providers or existing eligible providers.
32     (f) The office shall, subject to the availability of funding, determine
33 the number of eligible children, limited eligibility children, and
34 children of child care employees who will participate in the
35 prekindergarten program.
36     SECTION 17. IC 12-17.2-7.2-7.2, AS AMENDED BY THE
37 TECHNICAL CORRECTIONS BILL OF THE 2026 GENERAL
38 ASSEMBLY, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
39 JULY 1, 2026]: Sec. 7.2. (a) For an eligible child to qualify for a
40 prekindergarten voucher under this chapter, the eligible child must
41 reside with a parent or guardian who is working or attending a job
42 training or an educational program.
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1    (b) For a limited eligibility child to qualify for a prekindergarten
2 voucher under this chapter, the limited eligibility child must reside with
3 a parent or guardian who:
4(1) is working or attending a job training or an educational
5program; or
6or
7(2) receives Social Security Disability Insurance, Supplemental
8Security Income benefits, or disability benefits from the United
9States Department of Veterans Affairs.
10    (c) (b) Before the office may provide a prekindergarten voucher to
11 an eligible child a limited eligibility child, or a child of a child care
12 employee under this chapter, the office shall require that a parent or
13 guardian of the child agree to the following:
14(1) The child will attend the prekindergarten program of an
15eligible provider selected by the parent or guardian for the full
16duration of the prekindergarten program year.
17(2) The parent or guardian will not transfer to another
18prekindergarten program during the prekindergarten program
19year.
20(3) The child will attend the prekindergarten program at least
21eighty-five percent (85%) of the days that the prekindergarten
22program is provided.
23(4) The parent or guardian will allow the child to participate in an
24external evaluation conducted by researchers, including the
25kindergarten readiness assessment and measuring of
26developmental and academic progress.
27(5) The parent or guardian will participate in family engagement
28and involvement activities offered by the selected prekindergarten
29program, including meetings with the child's teacher to discuss
30the child's progress or any other conference concerning the child
31that is requested by the eligible provider.
32(6) The parent or guardian will complete the necessary forms for
33the child to receive a student test number from the department of
34education.
35(7) The parent or guardian will send the child to kindergarten.
36(8) The parent or guardian will read to the child each week.
37(9) Any other condition the office determines is appropriate.
38    (d) Priority shall be given to a child of a child care employee under
39 this section.
40    (e) (c) Priority may be given to an eligible or limited eligibility child
41 under this section if a parent or guardian of the eligible or limited
42 eligibility child is:
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1      (1) involved in activities that improve the parent's or guardian's
2      education; or
3      (2) involved in job training.
4    SECTION 18. IC 12-17.2-7.2-7.3, AS AMENDED BY P.L.92-2024,
5 SECTION 19, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
6 JULY 1, 2026]: Sec. 7.3. The office shall require, for an eligible
7 provider to enroll in the prekindergarten program, that the eligible
8 provider agree to the following:
9      (1) Comply on a continuing basis with the requirements under this
10      chapter and rules for participation established by the office.
11      (2) Maintain eligibility under this chapter throughout the
12      prekindergarten program year.
13      (3) Report immediately any changes in eligibility status to the
14      office, including the eligible provider's loss of national or regional
15      accreditation.
16      (4) Participate in any training and mandatory meetings required
17      by the office.
18      (5) Participate in all onsite visits conducted by the office,
19      including fiscal auditing activities with regard to the
20      prekindergarten program and prekindergarten program activity
21      monitoring.
22      (6) Allow the family of an eligible child a limited eligibility child,
23      or a child of a child care employee enrolled in the prekindergarten
24      program of the eligible provider to visit at any time the
25      prekindergarten program is in operation.
26      (7) Maintain accurate online attendance records through the
27      attendance portal for eligible children limited eligibility children,
28      and children of child care employees enrolled in the
29      prekindergarten program and submit attendance records as
30      required by the office.
31      (8) Offer parental engagement and involvement activities in the
32      prekindergarten program of the eligible provider in alignment
33      with the family engagement framework adopted by the early
34      learning advisory committee established by IC 12-17.2-3.8-5.
35      (9) Complete, within the period established by the office, the
36      Indiana early childhood family engagement toolkit, including the
37      family engagement self-assessment, adopted by the early learning
38      advisory committee.
39      (10) Share information on the family engagement self-assessment
40      described in subdivision (9) as required by the office.
41      (11) Participate in research studies as required by the office.
42      (12) Enforce minimum attendance requirements of at least
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1      eighty-five percent (85%) of the days that the prekindergarten
2      program of the eligible provider is offered to an eligible child. a
3      limited eligibility child, or a child of a child care employee.
4      (13) Inform the office that an eligible child a limited eligibility
5      child, or a child of a child care employee has withdrawn from the
6      prekindergarten program of the eligible provider not later than
7      five (5) days after the child is withdrawn.
8      (14) That retroactive repayment to the state may be required or
9      future payments may be adjusted as a result of the withdrawal of
10      an eligible child a limited eligibility child, or a child of a child
11      care employee or changes in the law.
12      (15) Maintain records of participation by the family of an eligible
13      child a limited eligibility child, or a child of a child care employee
14      in family engagement activities and submit records as required by
15      the office.
16      (16) Promote the social, emotional, and behavioral health of an
17      eligible child a limited eligibility child, or a child of a child care
18      employee and eliminate or severely limit the use of expulsion,
19      suspension, and other exclusionary discipline practices.
20      (17) Use the exclusionary discipline practices described in
21      subdivision (16) only as a last resort in extraordinary
22      circumstances when there is a determination of a serious safety
23      threat that cannot otherwise be reduced or eliminated by the
24      provision of reasonable modifications.
25      (18) Inform and receive approval from the office before the
26      eligible provider expels, suspends, or uses other exclusionary
27      discipline practices.
28      (19) Assist a parent or guardian, upon request by the parent or
29      guardian, in obtaining information from, referral to, or both
30      information from and referral to, the public school that serves the
31      attendance area in which the parent or guardian resides for an
32      educational evaluation and determination of eligibility for special
33      education services if developmental delays or reasons to suspect
34      a disability are observed by the parent, guardian, or teacher of an
35      eligible child a limited eligibility child, or a child of a child care
36      employee during the prekindergarten program year.
37    SECTION 19. IC 12-17.2-7.2-7.4, AS AMENDED BY
38 P.L.246-2023, SECTION 13, IS AMENDED TO READ AS
39 FOLLOWS [EFFECTIVE JULY 1, 2026]: Sec. 7.4. (a) To qualify as
40 a potential eligible provider or existing eligible provider, an applicant
41 must:
42      (1) provide an expansion plan to the office that details the
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1potential eligible provider's or existing eligible provider's plan to:
2(A) increase the capacity of providers of qualified early
3education services to serve a greater number of eligible or
4limited eligibility children;
5(B) increase the number of providers of qualified early
6education services; or
7(C) increase the capacity as described in clause (A) and
8increase the number as described in clause (B);
9(2) comply with the agreement with the office concerning the plan
10under subdivision (1) and the use of a grant awarded under this
11chapter;
12(3) agree:
13(A) to operate as an eligible provider; or
14(B) that the applicant intends to operate as an eligible
15provider;
16(4) agree that the applicant will not use any grant funds awarded
17under this section for capital expenditures; and
18(5) comply with any other standards and procedures established
19under this chapter.
20     (b) Subject to subsections subsection (c), and (d), the office may
21 award a grant to an applicant that meets the requirements of subsection
22 (a).
23     (c) The office may not use more than a total of twenty percent (20%)
24 of the money in the fund each state fiscal year:
25(1) for grants awarded under this chapter to potential eligible
26providers and existing eligible providers for expansion plans; and
27(2) to meet any state match amounts required for a federal grant
28described in subsection (f).
29     (d) (c) The office may not award grant funds under this section to an
30 applicant for any of the following:
31(1) The purchase of land or a building.
32(2) The construction or expansion of a building.
33     (e) (d) If a potential eligible provider or existing eligible provider
34 fails to:
35(1) use the grant funds in accordance with the expansion plan
36described in subsection (a); or
37(2) comply with the agreement entered into with the office under
38subsection (a);
39 the potential eligible provider or existing eligible provider shall repay
40 to the office the total amount of the grant awarded to the potential
41 eligible provider or existing eligible provider under this chapter.
42     (f) (e) The office may use money in the expansion fund that is
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1 allocated for expansion plans under this section for a state fiscal year
2 to meet any state match amounts required for a federal grant if the
3 purpose of the federal grant is that the grant money be used for
4 increasing:
5(1) the capacity;
6(2) the number; or
7(3) both the capacity and number;
8 of providers of early education services for children four (4) years of
9 age.
10     SECTION 20. IC 12-17.2-7.2-7.8, AS AMENDED BY P.L.92-2024,
11 SECTION 20, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
12 JULY 1, 2026]: Sec. 7.8. (a) The office shall make random onsite
13 inspections each year, as determined necessary by the office, at the
14 facility of:
15(1) an eligible provider that receives a prekindergarten voucher
16under this chapter; or
17(2) a potential eligible provider or existing eligible provider that
18receives a grant under section 7.4 of this chapter.
19     (b) The office may determine that an eligible provider is not eligible
20 to receive a prekindergarten voucher under the prekindergarten
21 program or that a potential eligible provider or existing eligible
22 provider is not eligible to receive a grant under section 7.4 of this
23 chapter if the eligible provider or the potential eligible provider or
24 existing eligible provider:
25(1) fails to comply with this chapter; or
26(2) refuses to allow, during normal business hours, the office or
27an agent of the office to inspect the facility at which the eligible
28provider or potential eligible provider or existing eligible provider
29operates a child care program for eligible children. limited
30eligibility children, or children of child care employees.
31     SECTION 21. IC 12-17.2-7.2-8, AS AMENDED BY P.L.92-2024,
32 SECTION 21, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
33 JULY 1, 2026]: Sec. 8. (a) The office shall determine
34(1) which applicants shall be provided a:
35(A) prekindergarten voucher under this chapter; or
36(B) grant under section 7.4 of this chapter; and
37(2) subject to subsection (b) and to the availability of funding, the
38amount of each prekindergarten voucher or grant.
39     (b) At least five percent (5%) but not more than fifty percent (50%)
40 of the:
41(1) tuition for eligible or limited eligibility children under the
42prekindergarten program; or
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1(2) expansion plan described in section 7.4(a) of this chapter;
2 during the state fiscal year must be paid from donations, gifts, grants,
3 bequests, and other funds received from a private entity or person, from
4 the United States government, or from other sources (excluding funds
5 from a prekindergarten voucher or grant provided under this chapter
6 and excluding other state funding). The office may receive and
7 administer grants on behalf of the prekindergarten program. The grants
8 shall be distributed by the office to fulfill the requirements of this
9 subsection.
10    (c) The amount of a prekindergarten voucher provided under the
11 prekindergarten program to an eligible child, a limited eligibility child,
12 or a child of a child care employee:
13(1) who attends a prekindergarten program full time must equal
14at least two thousand five hundred dollars ($2,500) during the
15state fiscal year; and
16(2) may not exceed six thousand eight hundred dollars ($6,800)
17from state money provided under this chapter during the state
18fiscal year.
19    SECTION 22. IC 12-17.2-7.2-8.1 IS REPEALED [EFFECTIVE
20 JULY 1, 2026]. Sec. 8.1. (a) If funds are appropriated by the general
21 assembly, prekindergarten vouchers provided to limited eligibility
22 children may not exceed:
23(1) twenty percent (20%) of the amount appropriated for a
24particular state fiscal year if families with children four (4) years
25of age are on the waiting list for funds available under the CCDF;
26or
27(2) forty percent (40%) of the amount appropriated for a
28particular state fiscal year if there is no waiting list for children
29four (4) years of age for funds available under the CCDF.
30    (b) During the priority enrollment period, the office shall provide
31 prekindergarten vouchers to eligible children and children of child care
32 employees in the prekindergarten program on a first-come, first-served
33 basis. The office shall date stamp and reserve applications for limited
34 eligibility children received during the priority enrollment period for
35 processing during the extended enrollment period.
36    (c) During the extended enrollment period, the office shall provide
37 prekindergarten vouchers to eligible children, children of child care
38 employees, and limited eligibility children in the prekindergarten
39 program on a first-come, first-served basis to the extent of available
40 funding and in accordance with the limit established by subsection (a).
41    SECTION 23. IC 12-17.2-7.2-13, AS AMENDED BY P.L.92-2024,
42 SECTION 25, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
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1 JULY 1, 2026]: Sec. 13. (a) The office shall, before November 1 of
2 each year, submit a report to the governor, the budget committee, the
3 state board of education, the department of education, and, in an
4 electronic format under IC 5-14-6, the general assembly regarding the
5 prekindergarten program.
6    (b) The report under subsection (a) must include the following:
7(1) The total number of children who received a prekindergarten
8voucher under the prekindergarten program for the immediately
9preceding state fiscal year, disaggregated by county.
10(2) The total amount of funds budgeted for and spent under the
11prekindergarten program during the immediately preceding state
12fiscal year.
13(3) The balance remaining in the prekindergarten fund and
14expansion fund at the end of the immediately preceding state
15fiscal year.
16    SECTION 24. IC 12-17.2-7.2-13.1, AS AMENDED BY
17 P.L.92-2024, SECTION 26, IS AMENDED TO READ AS FOLLOWS
18 [EFFECTIVE JULY 1, 2026]: Sec. 13.1. The office shall post monthly
19 on the office's website the total enrollment of and number of
20 prekindergarten vouchers awarded to
21(1) eligible children
22(2) limited eligibility children; and
23(3) children of child care employees;
24 for each county that participates in the prekindergarten program.
25    SECTION 25. IC 12-17.2-7.2-13.5, AS AMENDED BY
26 P.L.92-2024, SECTION 27, IS AMENDED TO READ AS FOLLOWS
27 [EFFECTIVE JULY 1, 2026]: Sec. 13.5. (a) The prekindergarten
28 program fund is established to do the following:
29(1) Provide prekindergarten vouchers to eligible children limited
30eligibility children, and children of child care employees for
31qualified early education services under this chapter.
32(2) Carry out the longitudinal study described in section 12 of this
33chapter.
34(3) provide grants to potential eligible providers and existing
35eligible providers as set forth in section 7.4 of this chapter; and
36(4) (3) Make payments to reimburse costs incurred to provide
37in-home early education services under IC 12-17.2-7.5 in an
38amount that does not exceed one million dollars ($1,000,000)
39each state fiscal year.
40    (b) The prekindergarten fund consists of:
41(1) money appropriated to the prekindergarten fund by the
42general assembly; and
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1(2) grants or gifts to the prekindergarten fund.
2    (c) The prekindergarten fund shall be administered by the office.
3    (d) The expenses of administering the prekindergarten fund shall
4 be paid from money in the prekindergarten fund.
5    (e) Money in the prekindergarten fund is continuously
6 appropriated for the purposes provided under this article.
7    (f) The treasurer of state shall invest the money in the
8 prekindergarten fund not currently needed to meet the obligations of
9 the prekindergarten fund in the same manner as other public funds
10 may be invested.
11    SECTION 26. IC 12-17.2-7.2-15 IS ADDED TO THE INDIANA
12 CODE AS A NEW SECTION TO READ AS FOLLOWS
13 [EFFECTIVE JULY 1, 2026]: Sec. 15. (a) The prekindergarten
14 expansion grant fund is established to provide grants to potential
15 eligible providers and existing eligible providers as set forth in
16 section 7.4 of this chapter.
17    (b) The expansion fund consists of:
18(1) money appropriated to the expansion fund by the general
19assembly; and
20(2) grants or gifts to the expansion fund.
21    (c) The expansion fund shall be administered by the office.
22    (d) The expenses of administering the expansion fund shall be
23 paid from money in the expansion fund.
24    (e) Money in the expansion fund is continuously appropriated
25 for the purposes provided under this article.
26    (f) The treasurer of state shall invest the money in the expansion
27 fund not currently needed to meet the obligations of the expansion
28 fund in the same manner as other public funds may be invested.
29    SECTION 27. [EFFECTIVE JULY 1, 2026] (a) There is
30 continuously appropriated to the prekindergarten program fund
31 established by IC 12-17.2-7.2-13.5, as amended by this act, from the
32 state general fund for the state fiscal year beginning after:
33(1) June 30, 2026, and ending before July 1, 2027; and
34(2) June 30, 2027, and ending before July 1, 2028;
35 an amount sufficient to carry out the purposes of the
36 prekindergarten program fund, as amended by this act.
37    (b) There is appropriated to the prekindergarten expansion
38 grant fund established by IC 12-17.2-7.2-15, as added by this act,
39 from the state general fund the following:
40(1) For the state fiscal year beginning after June 30, 2026, and
41ending before July 1, 2027, fifty million dollars ($50,000,000).
42(2) For the state fiscal year beginning after June 30, 2027, and
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1     ending before July 1, 2028, seventy-five million dollars
2     ($75,000,000).
3   (c) This SECTION expires July 1, 2028.
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