1. (a) Not later than January 1, 2025, after soliciting and considering recommendations from appropriate stakeholders, the office of the secretary shall develop a regulatory model that:

   1. (1) is applicable only to micro facilities;
   2. (2) incorporates waivers or variances from the office of the secretary's rules applicable to providers under this article; and

   3. (3) provides for a balance between the goals of:

      1. (A) increasing the availability of child care, particularly in geographic areas facing a critical shortage of child care, by reducing the costs of operating a micro facility; and
      2. (B) ensuring the health and safety of children for whom a micro facility provides child care.

2. (b) In determining waivers or variances to be incorporated under subsection (a)(2), the office of the secretary shall consider efficiencies such as:

   1. (1) allowing a micro facility to be operated in either a residential or nonresidential building;
   2. (2) prescribing educational requirements for staff members of a micro facility that are tailored to the needs of providing child care to groups of thirty (30) children or less; and
   3. (3) allowing for supervision of children of diverse age groups in a manner that maximizes use of limited facility space.

3. (c) Not later than March 1, 2025, the office of the secretary shall establish and administer a pilot program under which:

   1. (1) a licensee under IC 12-7-2.1-55 or IC 12-7-2.1-58 that:

      1. (A) operates an existing micro facility; or

      2. (B) proposes to begin operating a new micro facility not more than sixty (60) days after the date of the licensee's application under this subdivision;

         may apply to participate in the pilot program in a manner prescribed by the office of the secretary;

   2. (2) the office of the secretary shall select at least three (3) licensees that apply under subdivision (1) and:

      1. (A) allow a selected licensee described in subdivision (1)(A) to operate the licensee's existing micro facility; and

      2. (B) allow a selected licensee described in subdivision (1)(B) to operate the licensee's proposed micro facility;

         under the regulatory model developed under subsection (a); and

   3. (3) the office of the secretary shall:

      1. (A) monitor the operation of the micro facilities operating under the regulatory model under subdivision (2); and
      2. (B) evaluate the degree to which the operation of the micro facilities under the regulatory model serves the balance described in subsection (a)(3).

4. (d) The office of the secretary shall, to the extent practicable, select licensees for participation in the pilot program such that the micro facilities operated by the licensees are located in areas:

   1. (1) that are geographically diverse from one another; and
   2. (2) in which there exists a critical shortage of child care providers.

5. (e) A waiver or variance applied to a micro facility under this section expires on the earlier of:

   1. (1) the date specified by the office of the secretary; or
   2. (2) December 31, 2027.

As added by P.L.92-2024, SEC.28. Amended by P.L.122-2026, SEC.66; P.L.145-2026, SEC.85.