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. Italics indicate opposite chamber/conference committee amendments. *hb0993* HOUSE BILL 993 F5 (2lr1451) ENROLLED BILL — Ways and Means and Appropriations/Budget and Taxation and Education, Health, and Environmental Affairs — Introduced by Delegates Ebersole and Solomon Read and Examined by Proofreaders: _______________________________________________ Proofreader. _______________________________________________ Proofreader. Sealed with the Great Seal and presented to the Governor, for h is approval this _______ day of _______________ at ________________________ o’clock, ________M. ______________________________________________ Speaker. 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 2 HOUSE BILL 993 (2018 Replacement Volume and 2021 Supplement) 1 BY repealing and reenacting, with amendments, 2 Article – Education 3 Section 9.5–907 4 Annotated Code of Maryland 5 (2018 Replacement Volume and 2021 Supplement) 6 BY adding to 7 Article – Education 8 Section 9.5–909 9.5–113.1 9 Annotated Code of Maryland 10 (2018 Replacement Volume and 2021 Supplement) 11 BY repealing and reenacting, without amendments, 12 Article – State Finance and Procurement 13 Section 6–226(a)(2)(i) 14 Annotated Code of Maryland 15 (2021 Replacement Volume) 16 BY repealing and reenacting, with amendments, 17 Article – State Finance and Procurement 18 Section 6–226(a)(2)(ii)144. and 145. 19 Annotated Code of Maryland 20 (2021 Replacement Volume) 21 BY adding to 22 Article – State Finance and Procurement 23 Section 6–226(a)(2)(ii)146. 24 Annotated Code of Maryland 25 (2021 Replacement Volume) 26 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 27 That the Laws of Maryland read as follows: 28 Article – Education 29 1–101. 30 (a) In this article, unless the context requires otherwise, the following words have 31 the meanings indicated. 32 (f) “Department” means the State Department of Education. 33 9.5–907. 34 HOUSE BILL 993 3 Priority in providing awards under §§ 9.5–902 THROUGH 9.5–906 OF this subtitle 1 shall be given to child care providers or programs that published a quality rating level of 2 2 in the Maryland EXCELS Program on or before June 30, 2022. 3 9.5–909. 9.5–113.1. 4 (A) (1) IN THIS SECTION, THE FOLLOWING WORDS HAVE THE MEANINGS 5 INDICATED. 6 (2) “FUND” MEANS THE CHILD CARE CAPITAL SUPPORT REVOLVING 7 LOAN FUND. 8 (3) “RURAL COMMUNITY ” HAS THE MEANING STAT ED IN § 2–207 OF 9 THE STATE FINANCE AND PROCUREMENT ARTICLE. 10 (B) THERE IS A CHILD CARE CAPITAL SUPPORT REVOLVING LOAN FUND. 11 (C) THE PURPOSE OF THE FUND IS TO PROVIDE NO –INTEREST LOANS FOR 12 CAPITAL EXPENSES TO CHILD CARE PROVIDERS WHO PARTICIPATE IN T HE CHILD 13 CARE SCHOLARSHIP PROGRAM UNDER § 9.5–113 OF THIS TITLE SUBTITLE. 14 (D) THE DEPARTMENT OF COMMERCE SHALL ADMINISTER THE FUND WITH 15 SUPPORT FROM THE DEPARTMENT . 16 (E) (1) THE FUND IS A SPECIAL , NONLAPSING FUND THAT IS NOT 17 SUBJECT TO § 7–302 OF THE STATE FINANCE AND PROCUREMENT ARTICLE THAT 18 SHALL BE AVAILABLE I N PERPETUITY FOR THE PURPOSE OF PROVI DING LOANS IN 19 ACCORDANCE WITH THE PROVISIONS OF THIS S ECTION. 20 (2) THE STATE TREASURER SHALL HOLD THE FUND SEPARATELY , 21 AND THE COMPTROLLER SHALL ACC OUNT FOR THE FUND. 22 (F) THE FUND CONSISTS OF : 23 (1) MONEY APPROPRIATED IN THE STATE BUDGET TO THE FUND; 24 (2) ANY INTEREST EARNINGS OF THE FUND; 25 (3) REPAYMENTS OF PRINCIP AL AND INTEREST FROM LOANS MADE 26 FROM THE FUND; AND 27 (4) ANY OTHER MONEY FROM ANY OTHER SOURCE ACC EPTED FOR 28 THE BENEFIT OF THE FUND. 29 4 HOUSE BILL 993 (G) (1) THE FUND MAY BE USED O NLY TO PROVIDE NO –INTEREST LOANS 1 TO CHILD CARE PROVID ERS FOR CAPITAL EXPE NSES RELATED TO A CH ILD CARE 2 FACILITY, INCLUDING: 3 (I) ACQUISITION; 4 (II) EXPANSION; 5 (III) RENOVATIONS; AND 6 (IV) NEW CONSTRUCTION . 7 (2) (I) EXCEPT AS PROVIDED IN SUBPARAGRAPH (II) OF THIS 8 PARAGRAPH , CHILD CARE PROVIDERS SHALL REPAY LOANS FR OM THE FUND NOT 9 LATER THAN 5 YEARS AFTER RECEIVIN G A LOAN FROM THE FUND. 10 (II) THE DEPARTMENT OF COMMERCE MAY ESTABLISH A 11 FINANCIAL HARDSHIP E XEMPTION TO ALLOW A CHILD CARE PROVIDER ADDITIONAL 12 TIME TO REPAY A LOAN FROM THE FUND. 13 (III) IF A HARDSHIP EXEMPTI ON IS NOT GRANTED , THE 14 DEPARTMENT OF COMMERCE SHALL APPLY ITS NORMAL POLICY RE GARDING 15 ASSISTING CHILD CARE PROVIDERS WITH PAST DUE LOAN PAYMENTS . 16 (H) (1) THE STATE TREASURER SHALL INVEST THE MONEY OF THE FUND 17 IN THE SAME MANNER A S OTHER STATE MONEY MAY BE IN VESTED. 18 (2) ANY INTEREST EARNINGS OF THE FUND SHALL BE CREDITE D TO 19 THE FUND. 20 (I) (1) THE DEPARTMENT OF COMMERCE, IN CONSULTATION WITH THE 21 DEPARTMENT , SHALL EST ABLISH APPLICATION P ROCEDURES AND ELIGIB ILITY 22 CRITERIA FOR LOANS F ROM THE FUND, INCLUDING: 23 (1) REQUIRING IN ADDITION TO THE R EQUIREMENT THAT A CHILD 24 CARE PROVIDER TO BE A PARTICIPANT IN THE CHILD CARE SCHOLARSHIP 25 PROGRAM UNDER § 9.5–113 OF THIS TITLE; AND SUBTITLE. 26 (2) GIVING PRIORITY TO CH ILD CARE PROVIDERS T HAT THE 27 DEPARTMENT SHALL PRIO RITIZE APPLICANT CRI TERIA IN THE FOLLOWI NG ORDER 28 WHEN PROVIDING FUNDI NG FROM THE FUND: 29 (I) ARE CHILD CARE PROVIDERS THAT ARE LOCATED IN: 30 HOUSE BILL 993 5 1. RURAL COMMUNITIES ; 1 2. UNDERSERVED COMMUNITI ES; OR 2 3. 2. AREAS DESIGNATED BY T HE DEPARTMENT AS CHILD 3 CARE DESERTS OR AS AREAS LACKING CHILD CARE SLOTS; 4 (II) CHILD CARE PROVIDERS THAT ARE LOCATED IN RURAL 5 COMMUNITIES ; 6 (III) SERVE CHILD CARE PROVIDERS THAT SERVE PRIMARILY 7 LOW–INCOME POPULATIONS I N AREAS OF HIGH POVE RTY; 8 (III) (IV) SERVE CHILD CARE PROVIDERS THAT SERVE 9 CHILDREN WITH SPECIA L NEEDS; OR AND 10 (IV) (V) SERVE CHILD CARE PROVIDERS THAT SERVE 11 CHILDREN AGES 2 AND YOUNGER . 12 (J) THE DEPARTMENT OF COMMERCE SHALL WORK W ITH THE 13 DEPARTMENT TO PUBLICI ZE THE AVAILABILITY OF LOANS FROM THE FUND AND 14 PROVIDE SUPPORT TO C HILD CARE PROVIDERS IN APPLYING FOR LOAN S FROM THE 15 FUND. 16 (K) (1) FOR FISCAL YEAR 2023, THE GOVERNOR SHALL INCLUD E IN THE 17 ANNUAL BUDGET BILL A N APPROPRIATION TO T HE FUND OF $15,000,000. 18 (2) FOR FISCAL YEAR 2024, THE GOVERNOR SHALL INCLUD E IN THE 19 ANNUAL BUDGET BILL A N APPROPRIATION TO T HE FUND OF $10,000,000. 20 (3) FOR FISCAL YEAR 2025, THE GOVERNOR SHALL INCLUD E IN THE 21 ANNUAL BUDGET BILL A N APPROPRIATION TO T HE FUND OF $5,000,000. 22 Article – State Finance and Procurement 23 6–226. 24 (a) (2) (i) Notwithstanding any other provision of law, and unless 25 inconsistent with a federal law, grant agreement, or other federal requirement or with the 26 terms of a gift or settlement agreement, net interest on all State money allocated by the 27 State Treasurer under this section to special funds or accounts, and otherwise entitled to 28 receive interest earnings, as accounted for by the Comptroller, shall accrue to the General 29 Fund of the State. 30 6 HOUSE BILL 993 (ii) The provisions of subparagraph (i) of this paragraph do not apply 1 to the following funds: 2 144. the Health Equity Resource Community Reserve Fund; 3 [and] 4 145. the Access to Counsel in Evictions Special Fund; AND 5 146. THE CHILD CARE CAPITAL SUPPORT REVOLVING 6 LOAN FUND. 7 SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 8 1, 2022. 9 Approved: ________________________________________________________________________________ Governor. ________________________________________________________________________________ Speaker of the House of Delegates. ________________________________________________________________________________ President of the Senate.