EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*sb0919*
SENATE BILL 919
F5 2lr3106
CF HB 993
By: Senator King
Introduced and read first time: February 11, 2022
Assigned to: Rules
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 SENATE BILL 919
(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 ADMI NISTER THE FUND. 30
SENATE BILL 919 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 PERPETU ITY FOR THE PURPOSE OF PROVIDING LOANS I N 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 PROVI DE NO–INTEREST LOANS 14
TO CHILD CARE PROVID ERS FOR CAPITAL EXPE NSES RELATED TO A CH ILD 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 SUBPARAG RAPH (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 ESTABL ISH A FINANCIAL HARD SHIP 24
EXEMPTION TO ALLOW A CHILD CARE PR OVIDER ADDITIONAL TI ME 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 SENATE BILL 919
(2) ANY INTEREST EARNINGS OF THE FUND SHALL BE CREDITE D TO 1
THE FUND. 2
(I) THE DEPARTMENT SHALL ESTA BLISH APPLICATION PR OCEDURES AND 3
ELIGIBILITY CRITERIA FOR LOANS FROM THE FUND, INCLUDING: 4
(1) REQUIRING A CHILD CAR E PROVIDER TO BE A P ARTICIPANT IN 5
THE CHILD CARE SCHOLARSHIP PROGRAM UNDER § 9.5–113 OF THIS TITLE; AND 6
(2) GIVING PRIORITY TO CH ILD CARE PROVIDERS T HAT: 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 A REAS LACKING CHILD C ARE 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 W ITH THE 17
DEPARTMENT TO PUBLICI ZE THE AVAILABILITY OF LOANS FROM THE FUND AND 18
PROVIDE SUPPORT TO C HILD CARE PROVIDERS IN APPLYING FOR LOAN S 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 SENATE BILL 919 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