EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
Underlining indicates amendments to bill.
Strike out indicates matter stricken from the bill by amendment or deleted from the law by
amendment.
*hb0993*
HOUSE BILL 993
F5 2lr1451
CF SB 919
By: Delegates Ebersole and Solomon
Introduced and read first time: February 10, 2022
Assigned to: Ways and Means and Appropriations
Committee Report: Favorable with amendments
House action: Adopted
Read second time: March 7, 2022
CHAPTER ______
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 Department of Commerce to 5
administer the Fund with support from the State Department of Education; 6
requiring the Department of Commerce to publicize the availability of loans from the 7
Fund; and generally relating to the Child Care Capital Support Revolving Loan 8
Fund. 9
BY repealing and reenacting, without amendments, 10
Article – Education 11
Section 1–101(a) and (f) 12
Annotated Code of Maryland 13
(2018 Replacement Volume and 2021 Supplement) 14
BY repealing and reenacting, with amendments, 15
Article – Education 16
Section 9.5–907 17
Annotated Code of Maryland 18
(2018 Replacement Volume and 2021 Supplement) 19
BY adding to 20
Article – Education 21
Section 9.5–909 9.5–113.1 22 2 HOUSE BILL 993
Annotated Code of Maryland 1
(2018 Replacement Volume and 2021 Supplement) 2
BY repealing and reenacting, without amendments, 3
Article – State Finance and Procurement 4
Section 6–226(a)(2)(i) 5
Annotated Code of Maryland 6
(2021 Replacement Volume) 7
BY repealing and reenacting, with amendments, 8
Article – State Finance and Procurement 9
Section 6–226(a)(2)(ii)144. and 145. 10
Annotated Code of Maryland 11
(2021 Replacement Volume) 12
BY adding to 13
Article – State Finance and Procurement 14
Section 6–226(a)(2)(ii)146. 15
Annotated Code of Maryland 16
(2021 Replacement Volume) 17
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 18
That the Laws of Maryland read as follows: 19
Article – Education 20
1–101. 21
(a) In this article, unless the context requires otherwise, the following words have 22
the meanings indicated. 23
(f) “Department” means the State Department of Education. 24
9.5–907. 25
Priority in providing awards under §§ 9.5–902 THROUGH 9.5–906 OF this subtitle 26
shall be given to child care providers or programs that published a quality rating level of 2 27
in the Maryland EXCELS Program on or before June 30, 2022. 28
9.5–909. 9.5–113.1. 29
(A) (1) IN THIS SECTION, THE FOLLOWING WORDS HAVE THE MEANINGS 30
INDICATED. 31
(2) “FUND” MEANS THE CHILD CARE CAPITAL SUPPORT REVOLVING 32
LOAN FUND. 33 HOUSE BILL 993 3
(3) “RURAL COMMUNITY ” HAS THE MEANING STAT ED IN § 2–207 OF 1
THE STATE FINANCE AND PROCUREMENT ARTICLE. 2
(B) THERE IS A CHILD CARE CAPITAL SUPPORT REVOLVING LOAN FUND. 3
(C) THE PURPOSE OF THE FUND IS TO PROVIDE NO –INTEREST LOANS FOR 4
CAPITAL EXPENSES TO CHILD CARE PROVIDERS WHO PARTICIPATE IN T HE CHILD 5
CARE SCHOLARSHIP PROGRAM UNDER § 9.5–113 OF THIS TITLE SUBTITLE. 6
(D) THE DEPARTMENT OF COMMERCE SHALL ADMINISTER THE FUND WITH 7
SUPPORT FROM THE DEPARTMENT . 8
(E) (1) THE FUND IS A SPECIAL , NONLAPSING FUND THAT IS NOT 9
SUBJECT TO § 7–302 OF THE STATE FINANCE AND PROCUREMENT ARTICLE THAT 10
SHALL BE AVAILABLE I N PERPETUITY FOR THE PURPOSE OF PROVIDING LOANS IN 11
ACCORDANCE WITH THE PROVISIONS OF THIS S ECTION. 12
(2) THE STATE TREASURER SHALL HOLD THE FUND SEPARATELY , 13
AND THE COMPTROLLER SHALL ACC OUNT FOR THE FUND. 14
(F) THE FUND CONSISTS OF : 15
(1) MONEY APPROPRIATED IN THE STATE BUDGET TO THE FUND; 16
(2) ANY INTEREST EARNINGS OF THE FUND; 17
(3) REPAYMENTS OF PRINCIP AL AND INTEREST FROM LOANS MADE 18
FROM THE FUND; AND 19
(4) ANY OTHER MONEY FROM ANY OTHER SOURCE ACC EPTED FOR 20
THE BENEFIT OF THE FUND. 21
(G) (1) THE FUND MAY BE USED O NLY TO PROVIDE NO –INTEREST LOANS 22
TO CHILD CARE PROVID ERS FOR CAPITAL EXPE NSES RELATED TO A CH ILD CARE 23
FACILITY, INCLUDING: 24
(I) ACQUISITION; 25
(II) EXPANSION; 26
(III) RENOVATIONS; AND 27
(IV) NEW CONSTRUCTION . 28
4 HOUSE BILL 993
(2) (I) EXCEPT AS PROVIDED IN SUBPARAGRAPH (II) OF THIS 1
PARAGRAPH , CHILD CARE PROVIDERS SHALL REPAY LOANS FR OM THE FUND NOT 2
LATER THAN 5 YEARS AFTER RECEIVIN G A LOAN FROM THE FUND. 3
(II) THE DEPARTMENT OF COMMERCE MAY ESTABLISH A 4
FINANCIAL HARDSHIP E XEMPTION TO ALLOW A CHILD CARE PROVIDER ADDITIONAL 5
TIME TO REPAY A LOAN FROM THE FUND. 6
(III) IF A HARDSHIP EXEMPTI ON IS NOT GRANTED , THE 7
DEPARTMENT OF COMMERCE SHALL APPLY ITS NORMAL POLICY RE GARDING 8
ASSISTING CHILD CARE PROVIDERS WITH PAST DUE LOAN PAYMENTS . 9
(H) (1) THE STATE TREASURER SHALL INVES T THE MONEY OF THE FUND 10
IN THE SAME MANNER A S OTHER STATE MONEY MAY BE IN VESTED. 11
(2) ANY INTEREST EARNINGS OF THE FUND SHALL BE CREDITE D TO 12
THE FUND. 13
(I) (1) THE DEPARTMENT OF COMMERCE, IN CONSULTATION WITH THE 14
DEPARTMENT , SHALL ESTABLISH APPLICATION PROCEDURES AND ELIGI BILITY 15
CRITERIA FOR LOANS F ROM THE FUND, INCLUDING: 16
(1) REQUIRING IN ADDITION TO THE R EQUIREMENT THAT A CHILD 17
CARE PROVIDER TO BE A PARTICIPANT IN THE CHILD CARE SCHOLARSHIP 18
PROGRAM UNDER § 9.5–113 OF THIS TITLE; AND SUBTITLE. 19
(2) GIVING PRIORITY TO CH ILD CARE PROVIDERS T HAT THE 20
DEPARTMENT SHALL PRIO RITIZE APPLICANT CRI TERIA IN THE FOLLOWI NG ORDER 21
WHEN PROVIDING FUNDI NG FROM THE FUND: 22
(I) ARE CHILD CARE PROVIDERS THAT ARE LOCATED IN: 23
1. RURAL COMMUNITIES ; 24
2. UNDERSERVED COMMUNITI ES; OR 25
3. 2. AREAS DESIGNATED BY T HE DEPARTMENT AS CHILD 26
CARE DESERTS OR AS AREAS LACKING CHILD CARE SLOTS; 27
(II) CHILD CARE PROVIDERS THAT ARE LOCATED IN RURAL 28
COMMUNITIES ; 29
(III) SERVE CHILD CARE PROVIDERS THAT SERVE PRIMARILY 30
LOW–INCOME POPULATIONS I N AREAS OF HIGH POVE RTY; 31 HOUSE BILL 993 5
(III) (IV) SERVE CHILD CARE PROVIDERS THAT SERVE 1
CHILDREN WITH SPECIA L NEEDS; OR AND 2
(IV) (V) SERVE CHILD CARE PROVIDERS THAT SERVE 3
CHILDREN AGES 2 AND YOUNGER . 4
(J) THE DEPARTMENT OF COMMERCE SHALL WORK W ITH THE 5
DEPARTMENT TO PUBLICI ZE THE AVAILABILITY OF LOANS FROM THE FUND AND 6
PROVIDE SUPPORT TO C HILD CARE PROVIDERS IN APPLYING FOR LOAN S FROM THE 7
FUND. 8
(K) (1) FOR FISCAL YEAR 2023, THE GOVERNOR SHALL INCLUD E IN THE 9
ANNUAL BUDGET BILL A N APPROPRIATION TO T HE FUND OF $15,000,000. 10
(2) FOR FISCAL YEAR 2024, THE GOVERNOR SHALL INCLUD E IN THE 11
ANNUAL BUDGET BILL A N APPROPRIATION TO T HE FUND OF $10,000,000. 12
(3) FOR FISCAL YEAR 2025, THE GOVERNOR SHALL INCLUD E IN THE 13
ANNUAL BUDGET BILL A N APPROPRIATION TO T HE FUND OF $5,000,000. 14
Article – State Finance and Procurement 15
6–226. 16
(a) (2) (i) Notwithstanding any other provision of law, and unless 17
inconsistent with a federal law, grant agreement, or other federal requirement or with the 18
terms of a gift or settlement agreement, net interest on all State money allocated by the 19
State Treasurer under this section to special funds or accounts, and otherwise entitled to 20
receive interest earnings, as accounted for by the Comptroller, shall accrue to the General 21
Fund of the State. 22
(ii) The provisions of subparagraph (i) of this paragraph do not apply 23
to the following funds: 24
144. the Health Equity Resource Community Reserve Fund; 25
[and] 26
145. the Access to Counsel in Evictions Special Fund; AND 27
146. THE CHILD CARE CAPITAL SUPPORT REVOLVING 28
LOAN FUND. 29
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 30
1, 2022. 31