LAWRENCE J. HOGAN, JR., Governor Ch. 207 – 1 – Chapter 207 (Senate Bill 480) AN ACT concerning State Department of Education – Child Care Stabilization Grant Program and Child Care Expansion Grant Program – Established Grants FOR the purpose of establishing the Child Care Stabilization Grant Program and the Child Care Expansion Grant Program in the State Department of Education; and generally relating to the Child Care Stabilization Grant Program and the Child Care Expansion Grant Program requiring the State Department of Education to administer stabilization grants to child care providers in a certain fiscal year; providing for the priority of grant awards; and generally relating to child care stabilization grants. BY adding to Article – Education Section 9.5–115 and 9.5–116 Annotated Code of Maryland (2018 Replacement Volume and 2021 Supplement) SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, That the Laws of Maryland read as follows: Article – Education 9.5–115. (A) IN THIS SECTION, “PROGRAM” MEANS THE CHILD CARE STABILIZATION GRANT PROGRAM. (B) (1) THERE IS A CHILD CARE STABILIZATION GRANT PROGRAM IN THE DEPARTMENT . (2) THE PURPOSE OF THE PROGRAM IS TO PROVIDE FINANCIAL SUPPORT TO LICENSED CHILD CARE PROVIDERS IN THE STATE THAT ARE IN DANGER OF CLOSING IN THE NEXT 12 MONTHS DUE TO FINANC IAL HARDSHIP. (C) (1) THE DEPARTMENT SHALL DEVE LOP: (I) ELIGIBILITY CRITERIA ; (II) APPLICATION PROCEDURE S; Ch. 207 2022 LAWS OF MARYLAND – 2 – (III) A FORMULA FOR DETERM INING GRANT AWARD AM OUNTS; AND (IV) A PROCESS TO AWARD GRA NTS TO ELIGIBLE CHIL D CARE PROVIDERS. (D) (1) THE DEPARTMENT SHALL AWAR D GRANTS TO ELIGIBLE CHILD CARE PROVIDERS NOT M ORE THAN 3 MONTHS AFTER A GRANT APPLICATION IS RECEIVED BY THE DEPARTMENT . (2) AN ANNUAL AWARD FROM THE PROGRAM FOR EACH ELIG IBLE CHILD CARE PROVIDER SHALL BE: (I) NOT LESS THAN $1,000; AND (II) NOT MORE THAN $35,000. (3) IN DETERMINING AWARD AMOUNTS, THE DEPARTMENT SHALL USE PROVIDER CAPACIT Y AS A KEY CRITERIA. (E) THE GOVERNOR SHALL INCLUD E IN THE ANNUAL BUDG ET BILL AN APPROPRIATION TO THE PROGRAM. (F) (1) A RECIPIENT OF AN AWAR D UNDER THE PROGRAM MAY NOT RECEIVE AN AWARD UND ER THE CHILD CARE EXPANSION GRANT PROGRAM UNDER § 9.5–116 OF THIS SUBTITLE IN THE SAME YEAR . (2) A RECIPIENT OF AN AWAR D UNDER THE PROGRAM MAY NOT RECEIVE AN AWARD UND ER THE PROGRAM OR UNDER THE CHILD CARE EXPANSION GRANT PROGRAM UNDER § 9.5–116 OF THIS SUBTITLE FOR MORE THAN 5 CONSECUTIVE YEA RS. (G) THE DEPARTMENT SHALL ADOP T REGULATIONS TO IMP LEMENT THIS SECTION. 9.5–116. (A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS INDICATED. (2) “PROGRAM” MEANS THE CHILD CARE EXPANSION GRANT PROGRAM. (3) “COSTS” INCLUDE: LAWRENCE J. HOGAN, JR., Governor Ch. 207 – 3 – (I) STAFF TRAINING; (II) BACKGROUND CHECK FEES ; (III) CLEANING SUPPLIES ; (IV) EDUCATIONAL SUPPLIES ; AND (V) CAPITAL OR FACILITY I MPROVEMENT COSTS . (B) (1) THERE IS A CHILD CARE EXPANSION GRANT PROGRAM IN THE DEPARTMENT . (2) THE PURPOSE OF THE PROGRAM IS TO INCREAS E ACCESS AND AVAILABILITY OF LICE NSED CHILD CARE PROV IDERS IN THE STATE BY PROVIDING FINANCIAL ASSISTANCE TO NEW OR EXISTING C HILD CARE PROVIDERS . (C) A GRANT AWARD FROM THE PROGRAM MAY BE USED F OR COSTS ASSOCIATED WITH THE EXPANSION OF AN EXIS TING CHILD CARE PROG RAM OR TO ASSIST WITH THE CREA TION OF A NEW CHILD CARE PROGRAM . (D) THE DEPARTMENT SHALL DEVE LOP: (1) ELIGIBILITY CRITERIA ; (2) APPLICATION PROCEDURE S; (3) A FORMULA FOR DETERMIN ING GRANT AWARD AMOU NTS; AND (4) A PROCESS TO AWARD GRA NTS TO NEW OR EXISTI NG CHILD CARE PROVIDERS WHO MEET T HE ELIGIBILITY CRITE RIA FOR THE PROGRAM. (E) (1) THE DEPARTMENT SHALL AWAR D GRANTS NOT MORE TH AN 3 MONTHS AFTER A GRANT APPLICATION IS RECEI VED BY THE DEPARTMENT . (2) AN ANNUAL AWARD FROM THE PROGRAM FOR EACH ELIG IBLE CHILD CARE PROVIDER SHALL BE: (I) NOT LESS THAN $3,000; AND (II) NOT MORE THAN $50,000. Ch. 207 2022 LAWS OF MARYLAND – 4 – (F) THE GOVERNOR SHALL INCLUD E IN THE ANNUAL BUDG ET BILL AN APPROPRIATION TO THE PROGRAM. (G) (1) A RECIPIENT OF AN AWAR D UNDER THE PROGRAM MAY NOT RECEIVE AN AWARD UND ER THE CHILD CARE STABILIZATION GRANT PROGRAM UNDER § 9.5–115 OF THIS SUBTITLE IN THE SAME YEAR . (2) A RECIPIENT OF AN AWAR D UNDER THE PROGRAM MAY NOT RECEIVE AN AWARD UND ER THE PROGRAM OR UNDER THE CHILD CARE STABILIZATION GRANT PROGRAM UNDER § 9.5–115 OF THIS SUBTITLE FOR MORE THAN 5 CONSECUTIVE YEARS . (H) THE DEPARTMENT SHALL ADOP T REGULATIONS TO IMP LEMENT THIS SECTION. SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 1, 2022. (a) In fiscal years 2022 and 2023, the State Department of Education shall administer child care stabilization grants to provide financial support to child care providers that have faced a financial hardship or suffered an operational burden during the COVID–19 pandemic. (b) In awarding grants under this section, the State Department of Education shall give preference to child care providers based on the following criteria, in order of priority: (1) providers that have a demonstrated financial hardship that poses significant risk of the provider’s business closing within the next 12 months; (2) providers that have not received a stabilization grant in a prior application cycle; (3) providers that participate in the Child Care Scholarship Program; (4) providers located in areas designated by the State Department of Education as lacking child care slots; (5) providers that serve primarily low–income populations in areas of high poverty; (6) providers that serve children with special needs; and (7) providers that serve children 2 years old and under. LAWRENCE J. HOGAN, JR., Governor Ch. 207 – 5 – (c) The State Department of Education shall award grants to child care providers in accordance with this section in the amount of $50,000,000 for the remainder of fiscal year 2022 and in the amount provided for such purpose in the fiscal year 2023 operating budget, as enacted by Chapter ___ of the Acts of the General Assembly of 2022 (S.B. 290). SECTION 2. AND BE IT FURTHER ENACTED, That this Act is an emergenc y measure, is necessary for the immediate preservation of the public health or safety, has been passed by a yea and nay vote supported by three–fifths of all the members elected to each of the two Houses of the General Assembly, and shall take effect from the date it is enacted. Approved by the Governor, April 21, 2022.