BILL NUMBER: AB 932 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY APRIL 13, 2009
INTRODUCED BY Assembly Member Torlakson
FEBRUARY 26, 2009
An act to amend Section 8278.3 Sections
8278.3, 8279.4, 8279.5, and 8279.6 of the Education Code,
relating to child care and development services, and making an
appropriation therefor.
LEGISLATIVE COUNSEL'S DIGEST
AB 932, as amended, 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
lease and 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.
Existing law requires the Superintendent to contract with a
nonprofit organization to serve as a financial intermediary to
undertake activities designed to increase funds available from the
private and public sectors for the financing of child day care
facilities.
This bill would require the financial intermediary to coordinate
private sources of capital with the Child Care Facilities Revolving
Fund instead of the Department of Housing and Community Development
and the California Infrastructure and Economic Development Bank, and
to provide capital financing and facility development expertise and
assistance to the Child Care Facilities Revolving Fund. The bill
would delete obsolete references in those provisions to regional
resource centers.
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 be used to make loans
for the purchase, site development, construction,
expansion, renovation, repair, or improvement of all types
of licensed child care and development facilities, and for
the purpose of loan administration. Eligible borrowers are
school districts and contracting agencies that provide child care and
development services pursuant to this chapter, and school districts
and county offices of education that provide services
pursuant to the California School Age Families Education Program
(Article 7.1 (commencing with Section 54740) of Chapter 9 of Part 29
of Division 4 of Title 2). The Superintendent of Public
Instruction may transfer state and federal funds appropriated for
these child care facilities purposes into this fund. The
Superintendent 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 for expenditure pursuant to this
article.
(b) On or before August 1 of each fiscal year, the Superintendent
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, 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 and 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)
(c) The department shall utilize the capital financing
expertise of the child care financial intermediary program to
administer the Child Care Facilities Revolving Fund pursuant to
Sections 8279.4, 8279.5, and 8279.6 .
(e)
(d) The department shall adopt regulations to establish
priorities, forms, policies, and procedures for implementing this
section and managing the Child Care Facilities Revolving Fund.
SEC. 2. Section 8279.4 of the Education
Code is amended to read:
8279.4. The Legislature finds and declares the following:
(a) There is a serious shortage of quality child day care
facilities throughout the state.
(b) It is in the interest of the state's children and families,
and the state's economic growth, to encourage the expansion of
existing child day care facilities by assisting communities and
interested government and private entities to finance child day care
facilities.
(c) In addition to regional resource centers described in
Provision 7(d) of Item 6110-196-0001 of the Budget Act of 1999,
which focus on developing child care capacity in underserved areas of
the state, there There is a need to
access capital for facilities on a systematic basis, especially to
use limited public sector funds to leverage a greater private sector
role in financing child day care facilities. The Legislature finds
and declares that a financial intermediary could fill this role and
support the regional resource centers and other
local entities that work with potential providers by functioning as a
centralized repository of training, best practices, and expertise on
facilities financing.
SEC. 3. Section 8279.5 of the Education
Code is amended to read:
8279.5. (a) The Superintendent of Public Instruction
shall contract with a nonprofit organization to serve as a
financial intermediary. The nonprofit organization shall have staff
who have expertise in financing and capital expansion, are
knowledgeable about the child care field, and have the ability to
develop and implement a plan to increase the availability of
financing to renovate, expand, and construct child day care
facilities, both in day care centers and family day care homes.
(b) The financial intermediary selected by the Superintendent
of Public Instruction shall undertake activities
designed to increase funds available from the private and public
sectors for the financing of child day care facilities. These
activities shall include, but are not limited to, all of the
following:
(1) Soliciting capital grants and program-related investments from
foundations and corporations.
(2) Building partnerships with foundations and corporations.
(3) Developing lending commitments, linked deposits, and other
financing programs with conventional financial institutions.
(4) Coordinating private sources of capital with existing public
sector sources of financing for child day care facilities, including,
but not limited to, the Department of Housing and Community
Development and the California Infrastructure and Economic
Development Bank Child Care Facilities Revolving Fund
.
(5) Coordinating financing efforts with the technical assistance
provided by the regional resource centers described in
Provision 7(d) of Item 6110-196-0001 of the Budget Act of 1999, and
other local entities that work with potential providers.
(6) Providing capital financing and facility development expertise
and assistance to the Child Care Facilities Revolving Fund process,
including support of the Child Care Facilities Revolving Fund in
delivering capital for child day care facilities, including
facilities on nonpublic school property.
(c) This section shall only be implemented to the extent that
funds are appropriated for this purpose in the annual Budget Act.
SEC. 4. Section 8279.6 of the Education
Code is amended to read:
8279.6. (a) Pursuant to funding made available in subdivision (d)
of Provision 7 of Item 6110-196-001 of the Budget Act of 2000, the
Superintendent of Public Instruction shall
contract for a financial intermediary, pursuant to Section
8290.1 8279.5 , by January 1, 2001.
(b) The financial intermediary, during its first six months of
operation, shall do all of the following:
(1) Create and publicize an 800 technical assistance telephone
service number.
(2) Provide financial development training for agencies at the
local level including, but not limited to, Regional Resource
Centers, Resource and Referral Agencies ,
and local child care planning councils that are assisting
existing and potential providers renovate, expand, build or purchase
facilities.
(3) Determine the financing barriers and impediments to the
development of child care facilities, especially in underserved areas
of the state.
(4) Identify funding sources that may be leveraged by the state,
and partnerships with the philanthropic and corporate sectors that
may be established, with the goal of increasing funding available for
child care facilities for California's CalWORKs and low-income
families.