LAWRENCE J. HOGAN, JR., Governor Ch. 466
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Chapter 466
(House Bill 993)
AN ACT concerning
Child Care Capital Support Revolving Loan Fund – Established
FOR the purpose of establishing the Child Care Capital Support Revolving Loan Fund as
a special, nonlapsing fund; requiring interest earnings of the Fund to be credited to
the Fund; requiring the State Department of Education Department of Commerce to
administer the Fund with support from the State Department of Education;
requiring the Department of Commerce to publicize the availability of loans from the
Fund; and generally relating to the Child Care Capital Support Revolving Loan
Fund.
BY repealing and reenacting, without amendments,
Article – Education
Section 1–101(a) and (f)
Annotated Code of Maryland
(2018 Replacement Volume and 2021 Supplement)
BY repealing and reenacting, with amendments,
Article – Education
Section 9.5–907
Annotated Code of Maryland
(2018 Replacement Volume and 2021 Supplement)
BY adding to
Article – Education
Section 9.5–909 9.5–113.1
Annotated Code of Maryland
(2018 Replacement Volume and 2021 Supplement)
BY repealing and reenacting, without amendments,
Article – State Finance and Procurement
Section 6–226(a)(2)(i)
Annotated Code of Maryland
(2021 Replacement Volume)
BY repealing and reenacting, with amendments,
Article – State Finance and Procurement
Section 6–226(a)(2)(ii)144. and 145.
Annotated Code of Maryland
(2021 Replacement Volume)
BY adding to Ch. 466 2022 LAWS OF MARYLAND
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Article – State Finance and Procurement
Section 6–226(a)(2)(ii)146.
Annotated Code of Maryland
(2021 Replacement Volume)
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
That the Laws of Maryland read as follows:
Article – Education
1–101.
(a) In this article, unless the context requires otherwise, the following words have
the meanings indicated.
(f) “Department” means the State Department of Education.
9.5–907.
Priority in providing awards under §§ 9.5–902 THROUGH 9.5–906 OF this subtitle
shall be given to child care providers or programs that published a quality rating level of 2
in the Maryland EXCELS Program on or before June 30, 2022.
9.5–909. 9.5–113.1.
(A) (1) IN THIS SECTION, THE FOLLOWING WORDS HAVE THE MEANINGS
INDICATED.
(2) “FUND” MEANS THE CHILD CARE CAPITAL SUPPORT REVOLVING
LOAN FUND.
(3) “RURAL COMMUNITY ” HAS THE MEANING STAT ED IN § 2–207 OF
THE STATE FINANCE AND PROCUREMENT ARTICLE.
(B) THERE IS A CHILD CARE CAPITAL SUPPORT REVOLVING LOAN FUND.
(C) THE PURPOSE OF THE FUND IS TO PROVIDE NO –INTEREST LOANS FOR
CAPITAL EXPENSES TO CHILD CARE PROVIDERS WHO PARTICIPATE IN T HE CHILD
CARE SCHOLARSHIP PROGRAM UNDER § 9.5–113 OF THIS TITLE SUBTITLE.
(D) THE DEPARTMENT OF COMMERCE SHALL ADMINISTER THE FUND WITH
SUPPORT FROM THE DEPARTMENT .
(E) (1) THE FUND IS A SPECIAL , NONLAPSING FUND THAT IS NOT
SUBJECT TO § 7–302 OF THE STATE FINANCE AND PROCUREMENT ARTICLE THAT LAWRENCE J. HOGAN, JR., Governor Ch. 466
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SHALL BE AVAILABLE I N PERPETUITY FOR THE P URPOSE OF PROVIDING LOANS IN
ACCORDANCE WITH THE PROVISIONS OF THIS S ECTION.
(2) THE STATE TREASURER SHALL HOLD THE FUND SEPARATELY ,
AND THE COMPTROLLER SHALL ACC OUNT FOR THE FUND.
(F) THE FUND CONSISTS OF :
(1) MONEY APPROPRIATE D IN THE STATE BUDGET TO THE FUND;
(2) ANY INTEREST EARNINGS OF THE FUND;
(3) REPAYMENTS OF PRINCIP AL AND INTEREST FROM LOANS MADE
FROM THE FUND; AND
(4) ANY OTHER MONEY FROM ANY OTHER SOURCE ACC EPTED FOR
THE BENEFIT OF THE FUND.
(G) (1) THE FUND MAY BE USED ONLY T O PROVIDE NO–INTEREST LOANS
TO CHILD CARE PROVID ERS FOR CAPITAL EXPE NSES RELATED TO A CH ILD CARE
FACILITY, INCLUDING:
(I) ACQUISITION;
(II) EXPANSION;
(III) RENOVATIONS; AND
(IV) NEW CONSTRUCTION .
(2) (I) EXCEPT AS PROVIDED IN SUBPARAG RAPH (II) OF THIS
PARAGRAPH , CHILD CARE PROVIDERS SHALL REPAY LOANS FR OM THE FUND NOT
LATER THAN 5 YEARS AFTER RECEIVIN G A LOAN FROM THE FUND.
(II) THE DEPARTMENT OF COMMERCE MAY ESTABLISH A
FINANCIAL HARDSHIP E XEMPTION TO ALLOW A CHILD CARE PROVIDER ADDITIONAL
TIME TO REPAY A LOAN FROM THE FUND.
(III) IF A HARDSHIP EXEMPTI ON IS NOT GRANTED , THE
DEPARTMENT OF COMMERCE SHALL APPLY ITS NORMAL POLICY RE GARDING
ASSISTING CHILD CARE PROVIDERS WITH PAST DUE LOAN PAYMENTS .
(H) (1) THE STATE TREASURER SHALL INVES T THE MONEY OF THE FUND
IN THE SAME MANNER A S OTHER STATE MONEY MAY BE IN VESTED. Ch. 466 2022 LAWS OF MARYLAND
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(2) ANY INTEREST EARNINGS OF THE FUND SHALL BE CREDITE D TO
THE FUND.
(I) (1) THE DEPARTMENT OF COMMERCE, IN CONSULTATION WITH THE
DEPARTMENT , SHALL ESTABLISH APPL ICATION PROCEDURES A ND ELIGIBILITY
CRITERIA FOR LOANS F ROM THE FUND, INCLUDING:
(1) REQUIRING IN ADDITION TO THE R EQUIREMENT THAT A CHILD
CARE PROVIDER TO BE A PARTICIPANT IN THE CHILD CARE SCHOLARSHIP
PROGRAM UNDER § 9.5–113 OF THIS TITLE; AND SUBTITLE.
(2) GIVING PRIORITY TO CH ILD CARE PROVIDERS T HAT THE
DEPARTMENT SHALL PRIO RITIZE APPLICANT CRI TERIA IN THE FOLLOWI NG ORDER
WHEN PROVIDING FUNDI NG FROM THE FUND:
(I) ARE CHILD CARE PROVIDERS THAT ARE LOCATED IN:
1. RURAL COMMUNITIES ;
2. UNDERSERVED COMMUNITI ES; OR
3. 2. AREAS DESIGNATED BY T HE DEPARTMENT AS CHILD
CARE DESERTS OR AS AREAS LACKING CHILD CARE SLOTS;
(II) CHILD CARE PROVIDERS THAT ARE LOCATED IN RURAL
COMMUNITIES ;
(III) SERVE CHILD CARE PROVIDERS THAT SERVE PRIMARILY
LOW–INCOME POPULATIONS I N AREAS OF HIGH POVE RTY;
(III) (IV) SERVE CHILD CARE PROVIDERS THAT SERVE
CHILDREN WITH SPECIA L NEEDS; OR AND
(IV) (V) SERVE CHILD CARE PROVIDERS THAT SERVE
CHILDREN AGES 2 AND YOUNGER .
(J) THE DEPARTMENT OF COMMERCE SHALL WORK W ITH THE
DEPARTMENT TO PUBLICI ZE THE AVAILABILITY OF LOANS FROM THE FUND AND
PROVIDE SUPPORT TO C HILD CARE PROVIDERS IN APPLYING FOR LOAN S FROM THE
FUND.
(K) (1) FOR FISCAL YEAR 2023, THE GOVERNOR SHALL INCLUD E IN THE
ANNUAL BUDGET BILL A N APPROPRIATION TO T HE FUND OF $15,000,000. LAWRENCE J. HOGAN, JR., Governor Ch. 466
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(2) FOR FISCAL YEAR 2024, THE GOVERNOR SHALL INCLUD E IN THE
ANNUAL BUDGET BILL A N APPROPRIATION TO T HE FUND OF $10,000,000.
(3) FOR FISCAL YEAR 2025, THE GOVERNOR SHALL INCLUD E IN THE
ANNUAL BUDGET BILL A N APPROPRIATION TO T HE FUND OF $5,000,000.
Article – State Finance and Procurement
6–226.
(a) (2) (i) Notwithstanding any other provision of law, and unless
inconsistent with a federal law, grant agreement, or other federal requirement or with the
terms of a gift or settlement agreement, net interest on all State money allocated by the
State Treasurer under this section to special funds or accounts, and otherwise entitled to
receive interest earnings, as accounted for by the Comptroller, shall accrue to the General
Fund of the State.
(ii) The provisions of subparagraph (i) of this paragraph do not apply
to the following funds:
144. the Health Equity Resource Community Reserve Fund;
[and]
145. the Access to Counsel in Evictions Special Fund; AND
146. THE CHILD CARE CAPITAL SUPPORT REVOLVING
LOAN FUND.
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July
1, 2022.
Approved by the Governor, May 16, 2022.