in-20250521-IR-470250278RAA: Regulatory Analysis — 470 IAC (LSA #250278)

TITLE 470 DIVISION OF FAMILY RESOURCES Regulatory Analysis LSA Document #25-278

I. Description of Rule

This section should include an overview of the proposed rulemaking, background, and high-level justification.  Topics to address include (as applicable):

II. Fiscal Impact Analysis

This section should include a discussion of the impact of the proposed rulemaking on State and local government expenditures and revenues.  Topics to address include (as applicable):

III. Impacted Parties

This section should identify all parties that may be impacted from the proposed rule. This will serve as the multiplier for costs and benefits. Consider the impact of the rule on all persons affected by the rule, not just regulated persons. Impacted parties can be determined by a variety of sources including, but not limited to, agency records, calculation, research, estimates, and surveys. Agencies can exclude parties already in compliance from the cost-benefit analysis. Response: There are approximately 4,300 regulated child care facilities. All of these facilities will be impacted by this rule change.

IV. Changes in Proposed Rule

This section should identify all changes from existing regulation. This can be done by creating a list of changes or showing the changes in a table format. Failure to identify all changes in the proposed rule is the biggest reason for delays in the OMB review of a proposed rule. Be sure to check legal authority for each provision. As part of this process, identify all requirements that are being included as part of the proposed rulemaking but are imposed by another source of law.  For example, these requirements could be in statute, other regulations, federal regulations, court orders, or compacts. These sources should be included in a list, table, or annotation on the proposed rule language.  Requirements that are imposed by another source of law should be excluded from the cost-benefit analysis. Also, as part of this process, identify all requirements that are being included as part of the proposed rulemaking that incorporate an existing agency standard that is contained in a non-rule document.  For example, these standards can be contained in a policy, manual, handbook, contract, form, application, etc.  These sources should be included in a list, table, or annotation along with an estimate of the current compliance rate by regulated parties with the standard. Response: The proposed rule supersedes 470 IAC 3-4.8-1 to add language to the list of reasons that may subject a child care facility to emergency closure. The new language states that the failure to report suspected child abuse or neglect, as required by IC 31-33-5 or 470 IAC 3-1.1-35, 470 IAC 3-4.7-12, or 470 IAC 3-4.7-13 may subject a child care center, child care home, or child care ministry to an emergency or a temporary closure order.

V. Benefit Analysis

This section should include a discussion of the benefits of the changes made in the proposed rule compared to existing requirements.  For each new requirement in the proposed rule, consider the benefits to the general public, regulated community, businesses and other regulated entities, your agency, other state agencies, local partners, individuals, families, and small businesses. When considering possible direct and indirect benefits, consider questions such as the following: Will the regulation save time or money for your agency or another agency? Does the regulation decrease compliance costs? Does the regulation increase business profitability by reducing costs? Does the regulation make the market more competitive? Does the regulation decrease the price of goods or services? Does the regulation create benefits for public health or safety? If benefits cannot be monetized or quantified, the agency should explain why and include a thorough description of the non-quantifiable benefits as well as a determination whether such benefits will be significant. Topics to address include (as applicable):

VI. Cost Analysis

This section should include a comprehensive enumeration of the cost imposed by the changes made in the proposed rule compared to existing requirements, including tangible and intangible costs. For each new requirement in the proposed rule, consider the costs to the general public, regulated community, businesses and other regulated entities, your agency, other state agencies, local partners, individuals, families, and small businesses. When considering possible direct and indirect costs, consider questions such as the following: Does the regulation increase compliance costs? Will the regulation require individuals or businesses to change their behavior or procedures to comply?  Will the regulation require regulated parties to buy new equipment or software, take more time to complete tasks, hire new workers, take new training, develop new procedures, provide additional information, or take additional actions to comply? Will the regulation require more time or money for your agency or another agency? Does the regulation decrease business profitability by increasing costs? Does the regulation make it more difficult to enter the market? Does the regulation increase the price of goods or services? If costs cannot be monetized or quantified, the agency should explain why and include a thorough description of the non-quantifiable costs as well as a determination whether such costs will be significant. Topics to address include (as applicable):

VII. Sources of Information

This section should include a discussion of the sources of outside information utilized to calculate the cost and benefits for the rule.  Topics to address include (as applicable):

VIII. Regulatory Analysis

Conclude with an aggregated tally of the costs and benefits for each new requirement along with the agency's determination whether the benefits are likely to exceed the costs. Response: It is difficult to put a monetary amount on the costs and benefits of this rule. However, there are other non-monetary costs and benefits of this rule. The benefits of this rule are protecting children from harm, compliance with reporting laws, promoting accountability, preserving public trust, and legal and ethical alignment. The potential costs include disruption of child care services, economic consequences for employees, legal and administrative burdens, and financial costs to the child care system. With the main benefit of protecting children, the benefits of this rule likely exceed the costs. 

IX. Contact Information of Staff to Answer Substantive Questions

Questions regarding any aspect of the proposed changes should also be addressed to Amanda DeRoss at 317-234-8533 or at Amanda.DeRoss@fssa.in.gov. Provisional Rule: 20250521-IR-470250278ERA Notice of Determination Received: May 9, 2025