EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
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HOUSE BILL 993
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By: Delegates Ebersole and Solomon
Introduced and read first time: February 10, 2022
Assigned to: Ways and Means and Appropriations
A BILL ENTITLED
AN ACT concerning 1
Child Care Capital Support Revolving Loan Fund – Established 2
FOR the purpose of establishing the Child Care Capital Support Revolving Loan Fund as 3
a special, nonlapsing fund; requiring interest earnings of the Fund to be credited to 4
the Fund; requiring the State Department of Education to administer the Fund; 5
requiring the Department of Commerce to publicize the availability of loans from the 6
Fund; and generally relating to the Child Care Capital Support Revolving Loan 7
Fund. 8
BY repealing and reenacting, without amendments, 9
Article – Education 10
Section 1–101(a) and (f) 11
Annotated Code of Maryland 12
(2018 Replacement Volume and 2021 Supplement) 13
BY repealing and reenacting, with amendments, 14
Article – Education 15
Section 9.5–907 16
Annotated Code of Maryland 17
(2018 Replacement Volume and 2021 Supplement) 18
BY adding to 19
Article – Education 20
Section 9.5–909 21
Annotated Code of Maryland 22
(2018 Replacement Volume and 2021 Supplement) 23
BY repealing and reenacting, without amendments, 24
Article – State Finance and Procurement 25
Section 6–226(a)(2)(i) 26
Annotated Code of Maryland 27 2 HOUSE BILL 993
(2021 Replacement Volume) 1
BY repealing and reenacting, with amendments, 2
Article – State Finance and Procurement 3
Section 6–226(a)(2)(ii)144. and 145. 4
Annotated Code of Maryland 5
(2021 Replacement Volume) 6
BY adding to 7
Article – State Finance and Procurement 8
Section 6–226(a)(2)(ii)146. 9
Annotated Code of Maryland 10
(2021 Replacement Volume) 11
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 12
That the Laws of Maryland read as follows: 13
Article – Education 14
1–101. 15
(a) In this article, unless the context requires otherwise, the following words have 16
the meanings indicated. 17
(f) “Department” means the State Department of Education. 18
9.5–907. 19
Priority in providing awards under §§ 9.5–902 THROUGH 9.5–906 OF this subtitle 20
shall be given to child care providers or programs that published a quality rating level of 2 21
in the Maryland EXCELS Program on or before June 30, 2022. 22
9.5–909. 23
(A) IN THIS SECTION, “FUND” MEANS THE CHILD CARE CAPITAL SUPPORT 24
REVOLVING LOAN FUND. 25
(B) THERE IS A CHILD CARE CAPITAL SUPPORT REVOLVING LOAN FUND. 26
(C) THE PURPOSE OF THE FUND IS TO PROVIDE NO–INTEREST LOANS FOR 27
CAPITAL EXPENSES TO CHILD CARE PROVIDERS WHO PARTICIPATE IN T HE CHILD 28
CARE SCHOLARSHIP PROGRAM UNDER § 9.5–113 OF THIS TITLE. 29
(D) THE DEPARTMENT SHALL ADMINISTER THE FUND. 30
HOUSE BILL 993 3
(E) (1) THE FUND IS A SPECIAL , NONLAPSING FUND THAT IS NOT 1
SUBJECT TO § 7–302 OF THE STATE FINANCE AND PROCUREMENT ARTICLE THAT 2
SHALL BE AVAILABLE I N PERPETUITY FOR THE PURPOSE OF PROVIDING LOANS IN 3
ACCORDANCE WITH THE PROVISIONS OF THIS S ECTION. 4
(2) THE STATE TREASURER SHALL HOLD THE FUND SEPARATELY , 5
AND THE COMPTROLLER SHALL ACC OUNT FOR THE FUND. 6
(F) THE FUND CONSISTS OF : 7
(1) MONEY APPROPRIATED IN THE STATE BUDGET TO THE FUND; 8
(2) ANY INTEREST EARNINGS OF THE FUND; 9
(3) REPAYMENTS OF PRINCIP AL AND INTEREST FROM LOANS MADE 10
FROM THE FUND; AND 11
(4) ANY OTHER MONEY FROM ANY OTHER SOURCE ACC EPTED FOR 12
THE BENEFIT OF THE FUND. 13
(G) (1) THE FUND MAY BE USED ONLY TO PROVIDE NO –INTEREST LOANS 14
TO CHILD CARE PROVIDERS FOR CAPITAL EXPENSES RELATED TO A CHILD CARE 15
FACILITY, INCLUDING: 16
(I) ACQUISITION; 17
(II) EXPANSION; 18
(III) RENOVATIONS; AND 19
(IV) NEW CONSTRUCTION . 20
(2) (I) EXCEPT AS PROVIDED IN SUBPARAGRAPH (II) OF THIS 21
PARAGRAPH , CHILD CARE PROVIDERS SHALL REPAY LOANS FR OM THE FUND NOT 22
LATER THAN 5 YEARS AFTER RECEIVIN G A LOAN FROM THE FUND. 23
(II) THE DEPARTMENT MAY ESTABLISH A FINANCIA L HARDSHIP 24
EXEMPTION TO ALLOW A CHILD CARE P ROVIDER ADDITIONAL T IME TO REPAY A 25
LOAN FROM THE FUND. 26
(H) (1) THE STATE TREASURER SHALL INVES T THE MONEY OF THE FUND 27
IN THE SAME MANNER A S OTHER STATE MONEY MAY BE IN VESTED. 28
4 HOUSE BILL 993
(2) ANY INTEREST EARNINGS OF THE FUND SHALL BE CREDITE D TO 1
THE FUND. 2
(I) THE DEPARTMENT SHALL ESTABLISH APPL ICATION PROCEDURES A ND 3
ELIGIBILITY CRITERIA FOR LOANS FROM THE FUND, INCLUDING: 4
(1) REQUIRING A CHILD CARE PROVIDER TO BE A PARTICIPANT IN 5
THE CHILD CARE SCHOLARSHIP PROGRAM UNDER § 9.5–113 OF THIS TITLE; AND 6
(2) GIVING PRIORITY TO CHILD CARE PROVIDERS THAT : 7
(I) ARE LOCATED IN: 8
1. RURAL COMMUNITIES ; 9
2. UNDERSERVED COMMUNITI ES; OR 10
3. AREAS DESIGNATED BY T HE DEPARTMENT AS CHILD 11
CARE DESERTS OR AS AREAS LACKING CHILD CARE SLOTS ; 12
(II) SERVE PRIMARILY LOW –INCOME POPULATIONS I N AREAS 13
OF HIGH POVERTY ; 14
(III) SERVE CHILDREN WITH S PECIAL NEEDS; OR 15
(IV) SERVE CHILDREN AGES 2 AND YOUNGER . 16
(J) THE DEPARTMENT OF COMMERCE SHALL WORK WITH THE 17
DEPARTMENT TO PUBLICI ZE THE AVAILABILITY OF LOANS FROM THE FUND AND 18
PROVIDE SUPPORT TO CHILD CARE PROVIDERS IN APPLYIN G FOR LOANS FROM THE 19
FUND. 20
(K) (1) FOR FISCAL YEAR 2023, THE GOVERNOR SHALL INCLUD E IN THE 21
ANNUAL BUDGET BILL A N APPROPRIATION TO T HE FUND OF $15,000,000. 22
(2) FOR FISCAL YEAR 2024, THE GOVERNOR SHALL INCLUD E IN THE 23
ANNUAL BUDGET BILL A N APPROPRIATION TO T HE FUND OF $10,000,000. 24
(3) FOR FISCAL YEAR 2025, THE GOVERNOR SHALL INCLUD E IN THE 25
ANNUAL BUDGET BILL A N APPROPRIATION TO T HE FUND OF $5,000,000. 26
Article – State Finance and Procurement 27
6–226. 28 HOUSE BILL 993 5
(a) (2) (i) Notwithstanding any other provision of law, and unless 1
inconsistent with a federal law, grant agreement, or other federal requirement or with the 2
terms of a gift or settlement agreement, net interest on all State money allocated by the 3
State Treasurer under this section to special funds or accounts, and otherwise entitled to 4
receive interest earnings, as accounted for by the Comptroller, shall accrue to the General 5
Fund of the State. 6
(ii) The provisions of subparagraph (i) of this paragraph do not apply 7
to the following funds: 8
144. the Health Equity Resource Community Reserve Fund; 9
[and] 10
145. the Access to Counsel in Evictions Special Fund; AND 11
146. THE CHILD CARE CAPITAL SUPPORT REVOLVING 12
LOAN FUND. 13
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 14
1, 2022. 15