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AB-2302 Child care and developmental services: facilities. (2013-2014)

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Amended  IN  Assembly  May 01, 2014
Amended  IN  Assembly  April 22, 2014

CALIFORNIA LEGISLATURE— 2013–2014 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.
This bill would extend the period of the lease from 10 years to 14 years. The bill would require the period of the lease to be 10 years or a different term as established by regulations. The bill would require the department to adopt regulations to establish priorities, forms, policies, and procedures for implementing and managing the fund, and to promote the availability of the fund on its Internet Web site. 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. 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.
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   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 modular or 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 14-year 10-year period or over a term established pursuant to subdivision (e). 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 to establish priorities, forms, policies, and procedures 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.

(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.

(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.

(e) The regulations adopted pursuant to subdivision (d) shall include, but not be limited to, all of the following:
(1) Development of forms, policies, and procedures for the management of the fund.
(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.
(3) The maximum amount of the awards.
(4) The terms of the loans.
(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.