BILL NUMBER: AB 932 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY APRIL 27, 2009
AMENDED IN ASSEMBLY APRIL 13, 2009
INTRODUCED BY Assembly Member Torlakson
FEBRUARY 26, 2009
An act to amend 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 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 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 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. School
districts, county offices of education, and contracting agencies
using facilities made available by the use of these funds shall be
charged a fee, either at a fair market value of 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, county
office of education, or contracting agency. 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) 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.
(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) 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 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 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
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 Child Care Facilities Revolving Fund.
(5) Coordinating financing efforts with the technical assistance
provided by 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 shall contract for a financial intermediary, pursuant
to Section 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, 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.