Amended in Assembly May 1, 2014

Amended in Assembly April 22, 2014

California Legislature—2013–14 Regular Session

Assembly Bill No. 2302

Introduced by Assembly Member Mullin

February 21, 2014

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

LEGISLATIVE COUNSEL’S DIGEST

AB 2302, as amended, Mullin. Child care and developmental services: facilities.

Existing law establishes the Child Care Facilities Revolving Fund, a continuously appropriated 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 developmental services pursuant to the Child Care and Development Services Act. Existing law provides for payment by the school district or contracting agency of a leasing fee over a 10-year period, after which title transfers to the district or agency.

begin delete This bill would extend the period of the lease from 10 years to 14 years. end delete begin insert The bill would require the period of the lease to be 10 years or a different term as established by regulations. end insert The bill would require the department to adopt regulations begin delete to establish priorities, forms, policies, and procedures end delete for implementing and managing the fund, and to promote the availability of the fund on its Internet Web site. begin delete The bill would provide that eligible applicants may apply for, and receive, a funding award from the fund up to $400,000 for a single, freestanding relocatable or modular building, and up to $200,000 for each additional module added to an existing building. The bill would also require that a funding award not exceed $900,000 for any applicant for the renovation, repair, or improvement of an existing building. end delete begin insert The bill would require the regulations to include, among other things, the development of forms, policies, and procedures for the management of the fund and the terms of the loan. end insert

The bill would state the intent of the Legislature that $7,000,000 shall be appropriated annually in the Budget Act, to fund specified purposes related to child care facilities.

Vote: majority. Appropriation: no. 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 begin insert modular or end insert relocatable child
care facilities for lease to school districts and contracting agencies
that provide child care and development services pursuant to this
chapter. The Superintendent may transfer state funds appropriated
for child care facilities 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 begin delete 14-year end delete begin insert 10-year end insert
period begin insert or over a term established pursuant to subdivision (e) end insert . 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 shall deposit all revenue
derived from the lease payments 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, 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 Department of Finance and the Legislative
Analyst’s Office a report detailing the number of funding requests
received and their purpose, the types of agencies that received
funding from the Child Care Facilities Revolving Fund, the
increased capacity that these facilities generated, a description of
the manner in which the facilities are being used, and a projection
of the lease payments collected and the funds available for future
use.

(c) A school district or county office of education that provides
child care 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) is eligible to apply
for and receive funding pursuant to this section.

(d) The department shall adopt regulations begin delete to establish priorities,
forms, policies, and procedures end delete for implementing and managing
the Child Care Facilities Revolving Fund that set expansion of
capacity, including expansion of capacity of existing sites, as a
priority, and shall promote the availability of the fund on its
Internet Web site.

begin delete

(e) (1) A funding award under this section shall not exceed nine
hundred thousand dollars ($900,000) per award for the renovation,
repair, or improvement of an existing building.

end delete begin delete

(2) An eligible applicant may apply for, and receive, a funding
award up to four hundred thousand dollars ($400,000) for a single,
freestanding relocatable or modular building consisting of three
12-by-40-foot modules, and up to two hundred thousand dollars
($200,000) per additional module added to an existing building.

end delete begin insert

(e) The regulations adopted pursuant to subdivision (d) shall
include, but not be limited to, all of the following:

end insert begin insert

(1) Development of forms, policies, and procedures for the
management of the fund.

end insert begin insert

(2) Establishment of project funding eligibility criteria, which
shall include authorizing the expenditure of funds for the purchase
of new relocatable or modular buildings and for the renovation
of existing buildings that will expand capacity.

end insert begin insert

(3) The maximum amount of the awards.

end insert begin insert

(4) The terms of the loans.

end insert

(f) It is the intent of the Legislature to annually appropriate the
amount of seven million dollars ($7,000,000) in the Budget Act
to fund purposes specified in Provision 3 of Item 6110-194-0001
of Section 2.00 of the Budget Act of 2013.