BILL NUMBER: AB 932	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Torlakson

                        FEBRUARY 26, 2009

   An act to amend Section 8278.3 of the Education Code, relating to
child care and development services, and making an appropriation
therefor.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 932, as introduced, Torlakson. Child care and development
services: facilities.
   Existing law establishes the Child Care Facilities Revolving Fund
in the State Treasury to provide funding for the renovation, repair,
improvement, or purchase of child care facilities for lease to school
districts and contracting agencies that provide child care and
development services pursuant to the Child Care and Development
Services Act.
    This bill would instead specify that the fund be used to make
loans to eligible borrowers for the purchase, development,
construction, expansion, renovation, repair, or improvement of
licensed child care. The bill would authorize the Superintendent of
Public Instruction to transfer federal funds appropriated for child
care facilities into the fund.
   Existing law requires the Superintendent of Public Instruction to
submit a report to specified agencies detailing certain information
relating to the fund, including a projection of the lease payments
collected.
   This bill would instead require the Superintendent of Public
Instruction to include a projection of the loan payments collected,
and would require the Superintendent to include specified additional
information in the report. The bill would require the State
Department of Education to utilize the capital financing expertise of
the child care financial intermediary program to administer the
fund, and to adopt regulations to implement these procedures and
manage the fund.
   By authorizing the expenditure of funds in the Child Care
Facilities Revolving Fund, a continuously appropriated fund, for a
new purpose, and adding a new source of revenue for deposit into the
fund, the bill would make an appropriation.
   Vote: majority. Appropriation: yes. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 8278.3 of the Education Code is amended to
read:
   8278.3.  (a) (1) The Child Care Facilities Revolving Fund is
hereby established in the State Treasury  to provide funding
for the renovation, repair, or improvement of an existing building to
make the building suitable for licensure for child care and
development services and for the purchase of new relocatable child
care facilities for lease to school districts and contracting
agencies that provide child care and development services, pursuant
to this chapter   , to be used to make loans for the
purchase, development, construction, expansion, renovation, repair,
or improvement of all types of licensed child care   and
development facilities, and for the purpose of loan administration
 . The Superintendent of Public Instruction may transfer state
 and federal  funds appropriated for  these  child
care facilities  purposes  into this fund  for
allocation to school districts and contracting agencies, as
specified, for the purchase, transportation, and installation of
facilities for replacement and expansion of capacity. School
districts and contracting agencies using facilities made available by
the use of these funds shall be charged a leasing fee, either at a
fair market value for those facilities or at an amount sufficient to
amortize the cost of purchase and relocation, whichever amount is
lower, over a 10-year period. Upon full repayment of the purchase and
relocation costs, title shall transfer from the State of California
to the school district or contracting agency  . The
Superintendent  of Public Instruction  shall deposit
all revenue derived from the  repayment of loans made pursuant
to this section, and from the  lease payments  from funds
allocated prior to January 1, 2010,  into the Child Care
Facilities Revolving Fund.
   (2) Notwithstanding Section 13340 of the Government Code, all
moneys in the fund, including moneys deposited from lease payments
 and loan payments  , are continuously appropriated, without
regard to fiscal years, to the Superintendent  of Public
Instruction for expenditure pursuant to this article.
   (b) On or before August 1 of each fiscal year, the Superintendent
 of Public Instruction  shall submit to the Office
of the Secretary for Education, the Department of Finance, and the
Legislative Analyst's Office a report detailing the number of funding
requests received  and their purpose  ,  the
number of funding requests pending, the number of funding requests
approved, and the purpose of each funding request,  the types of
agencies that received funding from the Child Care Facilities
Revolving Fund, the  retained or  increased capacity that
these facilities generated, a description of the manner in which the
facilities are being used, and a projection of the  lease
  loan  payments collected and the funds available
for future use.
   (c) A school district or county office of education that provides
child care  and development services  pursuant to the
California School Age Families Education Program (Article 7.1
(commencing with Section 54740) of Chapter 9 of Part 29) is eligible
to apply for and receive funding pursuant to this section. 
   (d) The department shall utilize the capital financing expertise
of the child care financial intermediary program to administer the
Child Care Facilities Revolving Fund.  
   (e) The department shall adopt regulations to establish
priorities, forms, policies, and procedures for implementing this
section and managing the Child Care Facilities Revolving Fund.