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.
*sb0919*
SENATE BILL 919
F5 2lr3106
CF HB 993
By: Senator King
Introduced and read first time: February 11, 2022
Assigned to: Rules
Re–referred to: Budget and Taxation and Education, Health, and Environmental Affairs,
February 21, 2022
Committee Report: Favorable with amendments
Senate action: Adopted
Read second time: March 25, 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 2 SENATE BILL 919
Article – Education 1
Section 9.5–909 9.5–113.1 2
Annotated Code of Maryland 3
(2018 Replacement Volume and 2021 Supplement) 4
BY repealing and reenacting, without amendments, 5
Article – State Finance and Procurement 6
Section 6–226(a)(2)(i) 7
Annotated Code of Maryland 8
(2021 Replacement Volume) 9
BY repealing and reenacting, with amendments, 10
Article – State Finance and Procurement 11
Section 6–226(a)(2)(ii)144. and 145. 12
Annotated Code of Maryland 13
(2021 Replacement Volume) 14
BY adding to 15
Article – State Finance and Procurement 16
Section 6–226(a)(2)(ii)146. 17
Annotated Code of Maryland 18
(2021 Replacement Volume) 19
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 20
That the Laws of Maryland read as follows: 21
Article – Education 22
1–101. 23
(a) In this article, unless the context requires otherwise, the following words have 24
the meanings indicated. 25
(f) “Department” means the State Department of Education. 26
9.5–907. 27
Priority in providing awards under §§ 9.5–902 THROUGH 9.5–906 OF this subtitle 28
shall be given to child care providers or programs that published a quality rating level of 2 29
in the Maryland EXCELS Program on or before June 30, 2022. 30
9.5–909. 9.5–113.1. 31
(A) (1) IN THIS SECTION, THE FOLLOWING WORDS HAVE THE MEANINGS 32
INDICATED. 33
SENATE BILL 919 3
(2) “FUND” MEANS THE CHILD CARE CAPITAL SUPPORT REVOLVING 1
LOAN FUND. 2
(3) “RURAL COMMUNITY ” HAS THE MEANING STAT ED IN § 2–207 OF 3
THE STATE FINANCE AND PROCUREMENT ARTICLE. 4
(B) THERE IS A CHILD CARE CAPITAL SUPPORT REVOLVING LOAN FUND. 5
(C) THE PURPOSE OF THE FUND IS TO PROVIDE NO –INTEREST LOANS FOR 6
CAPITAL EXPENSES TO CHILD CARE PROVIDERS WHO PARTICIPATE IN T HE CHILD 7
CARE SCHOLARSHIP PROGRAM UNDER § 9.5–113 OF THIS TITLE SUBTITLE. 8
(D) THE DEPARTMENT OF COMMERCE SHALL ADMINISTER THE FUND WITH 9
SUPPORT FROM THE DEPARTMENT . 10
(E) (1) THE FUND IS A SPECIAL , NONLAPSING FUND THAT IS NOT 11
SUBJECT TO § 7–302 OF THE STATE FINANCE AND PROCUREMENT ARTICLE THAT 12
SHALL BE AVAILABLE I N PERPETUITY FOR THE PURPOSE OF PROVIDING LOANS IN 13
ACCORDANCE WITH THE PROVISIONS OF THIS SECT ION. 14
(2) THE STATE TREASURER SHALL HOLD THE FUND SEPARATELY , 15
AND THE COMPTROLLER SHALL ACC OUNT FOR THE FUND. 16
(F) THE FUND CONSISTS OF : 17
(1) MONEY APPROPRIATED IN THE STATE BUDGET TO THE FUND; 18
(2) ANY INTEREST EARNINGS OF THE FUND; 19
(3) REPAYMENTS OF PRINCIP AL AND INTEREST FROM LOANS MADE 20
FROM THE FUND; AND 21
(4) ANY OTHER MONEY FROM ANY OTHER SOURCE ACC EPTED FOR 22
THE BENEFIT OF THE FUND. 23
(G) (1) THE FUND MAY BE USED ONLY TO PROVIDE NO –INTEREST LOANS 24
TO CHILD CARE PROVID ERS FOR CAPITAL EXPE NSES RELATED TO A CH ILD CARE 25
FACILITY, INCLUDING: 26
(I) ACQUISITION; 27
(II) EXPANSION; 28
(III) RENOVATIONS; AND 29
4 SENATE BILL 919
(IV) NEW CONSTRUCTION . 1
(2) (I) EXCEPT AS PROVIDED IN SUBPARAGRAPH (II) OF THIS 2
PARAGRAPH , CHILD CARE PROVIDERS SHALL REPAY LOANS FR OM THE FUND NOT 3
LATER THAN 5 YEARS AFTER RECEIVIN G A LOAN FROM THE FUND. 4
(II) THE DEPARTMENT OF COMMERCE MAY ESTABLISH A 5
FINANCIAL HARDSHIP E XEMPTION TO ALLOW A CHILD CARE P ROVIDER ADDITIONAL 6
TIME TO REPAY A LOAN FROM THE FUND. 7
(III) IF A HARDSHIP EXEMPTI ON IS NOT GRANTED , THE 8
DEPARTMENT OF COMMERCE SHALL APPLY ITS NORMAL POLICY RE GARDING 9
ASSISTING CHILD CARE PROVIDERS WITH PAST DUE LOAN PAYMENTS . 10
(H) (1) THE STATE TREASURER SHALL INVES T THE MONEY OF THE FUND 11
IN THE SAME MANNER A S OTHER STATE MONEY MAY BE IN VESTED. 12
(2) ANY INTEREST EARNINGS OF THE FUND SHALL BE CREDITE D TO 13
THE FUND. 14
(I) (1) THE DEPARTMENT OF COMMERCE, IN CONSULTATION WITH THE 15
DEPARTMENT , SHALL ESTABLISH APPL ICATION PROCEDURES A ND ELIGIBILITY 16
CRITERIA FOR LOANS F ROM THE FUND, INCLUDING: 17
(1) REQUIRING IN ADDITION TO THE R EQUIREMENT THAT A CHILD 18
CARE PROVIDER TO BE A PARTICIPANT IN THE CHILD CARE SCHOLARSHIP 19
PROGRAM UNDER § 9.5–113 OF THIS TITLE; AND SUBTITLE. 20
(2) GIVING PRIORITY TO CH ILD CARE PROVIDERS T HAT THE 21
DEPARTMENT SHALL PRIO RITIZE APPLICANT CRI TERIA IN THE FOLLOWI NG ORDER 22
WHEN PROVIDING FUNDI NG FROM THE FUND: 23
(I) ARE CHILD CARE PROVIDERS THAT ARE LOCATED IN: 24
1. RURAL COMMUNITIES ; 25
2. UNDERSERVED COMMUNITI ES; OR 26
3. 2. AREAS DESIGNATED BY T HE DEPARTMENT AS CHILD 27
CARE DESERTS OR AS AREAS LACKING CHILD CARE SLOTS; 28
(II) CHILD CARE PROVIDERS THAT ARE LOCATED IN RURAL 29
COMMUNITIES ; 30
SENATE BILL 919 5
(III) SERVE CHILD CARE PROVIDERS THAT SERVE PRIMARILY 1
LOW–INCOME POPULATIONS I N AREAS OF HIGH POVE RTY; 2
(III) (IV) SERVE CHILD CARE PROVIDERS THAT SERVE 3
CHILDREN WITH SPECIA L NEEDS; OR AND 4
(IV) (V) SERVE CHILD CARE PROVIDERS THAT SERVE 5
CHILDREN AGES 2 AND YOUNG ER. 6
(J) THE DEPARTMENT OF COMMERCE SHALL WORK W ITH THE 7
DEPARTMENT TO PUBLICI ZE THE AVAILABILITY OF LOANS FROM THE FUND AND 8
PROVIDE SUPPORT TO C HILD CARE PROVIDERS IN APPLYING FOR LOAN S FROM THE 9
FUND. 10
(K) (1) FOR FISCAL YEAR 2023, THE GOVERNOR SHALL INCLUDE IN THE 11
ANNUAL BUDGET BILL A N APPROPRIATION TO T HE FUND OF $15,000,000. 12
(2) FOR FISCAL YEAR 2024, THE GOVERNOR SHALL INCLUD E IN THE 13
ANNUAL BUDGET BILL A N APPROPRIATION TO T HE FUND OF $10,000,000. 14
(3) FOR FISCAL YEAR 2025, THE GOVERNOR SHALL IN CLUDE IN THE 15
ANNUAL BUDGET BILL A N APPROPRIATION TO T HE FUND OF $5,000,000. 16
Article – State Finance and Procurement 17
6–226. 18
(a) (2) (i) Notwithstanding any other provision of law, and unless 19
inconsistent with a federal law, grant agreement, or other federal requirement or with the 20
terms of a gift or settlement agreement, net interest on all State money allocated by the 21
State Treasurer under this section to special funds or accounts, and otherwise entitled to 22
receive interest earnings, as accounted for by the Comptroller, shall accrue to the General 23
Fund of the State. 24
(ii) The provisions of subparagraph (i) of this paragraph do not apply 25
to the following funds: 26
144. the Health Equity Resource Community Reserve Fund; 27
[and] 28
145. the Access to Counsel in Evictions Special Fund; AND 29
146. THE CHILD CARE CAPITAL SUPPORT REVOLVING 30
LOAN FUND. 31
6 SENATE BILL 919
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 1
1, 2022. 2
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
President of the Senate.
________________________________________________________________________________
Speaker of the House of Delegates.