Maryland 2023 Regular Session

Maryland House Bill HB881 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2
3	3	EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
4	4	[Brackets] indicate matter deleted from existing law.
5	5	hb0881
6	6
7	7	HOUSE BILL 881
8	8	F1, Q3 3lr1120
9	9
10	10	By: Delegate Queen
11	11	Introduced and read first time: February 9, 2023
12	12	Assigned to: Ways and Means
13	13
14	14	A BILL ENTITLED
15	15
16	16	AN ACT concerning 1
17	17
18	18	Early Learning Collaboratives – Established and Tax Credit for Contributions 2
19	19
20	20	FOR the purpose of authorizing certain public and private providers of prekindergarten to 3
21	21	form certain early learning collaboratives as part of a certain publicly funded 4
22	22	prekindergarten program; requiring certain funds to be distributed to an early 5
23	23	learning collaborative in a certain manner; authorizing a certain person to make a 6
24	24	certain monetary contribution to an early learning collaborative; allowing a credit 7
25	25	against the State income tax for a certain monetary contribution to an early learning 8
26	26	collaborative subject to certain limitations; requiring the State Department of 9
27	27	Education to administer the credit; and generally relating to prekindergarten, early 10
28	28	learning collaboratives, and an income tax credit for a certain monetary contribution 11
29	29	to an early learning collaborative. 12
30	30
31	31	BY repealing and reenacting, with amendments, 13
32	32	Article – Education 14
33	33	Section 5–229(d), 7–1A–01, 7–1A–04(b), and 7–1A–05 15
34	34	Annotated Code of Maryland 16
35	35	(2022 Replacement Volume) 17
36	36
37	37	BY adding to 18
38	38	Article – Education 19
39	39	Section 7–1A–05.1 and 7–1A–05.2 20
40	40	Annotated Code of Maryland 21
41	41	(2022 Replacement Volume) 22
42	42
43	43	BY adding to 23
44	44	Article – Tax – General 24
45	45	Section 10–757 25
46	46	Annotated Code of Maryland 26
47	47	(2022 Replacement Volume) 27
48	48	2 HOUSE BILL 881
49	49
50	50
51	51	SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 1
52	52	That the Laws of Maryland read as follows: 2
53	53
54	54	Article – Education 3
55	55
56	56	5–229. 4
57	57
58	58	(d) (1) For public providers THAT ARE NOT PART OF AN EARLY LEARNING 5
59	59	COLLABORATIVE UNDER TITLE 7, SUBTITLE 1A OF THIS ARTICLE , each fiscal year: 6
60	60
61	61	(i) The State shall distribute the State share to each county board; 7
62	62	and 8
63	63
64	64	(ii) The county board shall distribute to each public provider the 9
65	65	minimum school funding amount for prekindergarten calculated under § 5–234 of this 10
66	66	subtitle. 11
67	67
68	68	(2) For private providers THAT ARE NOT PART OF AN EARLY LEA RNING 12
69	69	COLLABORATIVE UNDER TITLE 7, SUBTITLE 1A OF THIS ARTICLE , each fiscal year: 13
70	70
71	71	(i) The State shall distribute the State share for private providers 14
72	72	to the Department; 15
73	73
74	74	(ii) The county shall distribute the local share for private providers 16
75	75	to the Department; and 17
76	76
77	77	(iii) The Department shall distribute the State and local share to the 18
78	78	private providers. 19
79	79
80	80	(3) FOR PROVIDERS THAT ARE P ART OF AN EARLY LEARNING 20
81	81	COLLABORATIVE UNDER TITLE 7, SUBTITLE 1A OF THIS ARTIC LE, EACH FISCAL 21
82	82	YEAR: 22
83	83
84	84	(I) THE STATE SHALL DISTRIBUT E THE STATE SHARE: 23
85	85
86	86	1. TO EACH COUNTY BOARD IN AN EARLY LEARNING 24
87	87	COLLABORATIVE ; AND 25
88	88
89	89	2. FOR PRIVATE PROVIDERS IN AN EARLY LEARNING 26
90	90	COLLABOR ATIVE TO THE DEPARTMENT ; 27
91	91
92	92	(II) THE COUNTY SHALL DIST RIBUTE: 28
93	93
94	94	1. TO EACH PUBLIC PROVID ER, THE MINIMUM SCHOOL 29
95	95	FUNDING AMOUNT FOR P REKINDERGARTEN CALCU LATED UNDER § 5–234 OF THIS 30 HOUSE BILL 881 3
96	96
97	97
98	98	SUBTITLE; AND 1
99	99
100	100	2. THE LOCAL SHARE F OR PRIVATE PROVIDERS IN AN 2
101	101	EARLY LEARNING COLLA BORATIVE TO THE DEPARTMENT ; AND 3
102	102
103	103	(III) THE DEPARTMENT SHALL DIST RIBUTE THE STATE AND 4
104	104	LOCAL SHARE TO THE P RIVATE PROVIDERS IN AN EARLY LEARNING 5
105	105	COLLABORATIVE . 6
106	106
107	107	7–1A–01. 7
108	108
109	109	(a) In this subtitle the following words have the meanings indicated. 8
110	110
111	111	(b) “Cost of quality” means the per–pupil amount provided under § 5–229 of this 9
112	112	article. 10
113	113
114	114	(c) “EARLY LEARNING COLLABORATIVE ” MEANS A GROUP OF PUBLIC AND 11
115	115	PRIVATE PROVIDERS THAT TOGETHER MEETS THE REQUIREMENTS UND ER §§ 12
116	116	7–1A–04 AND 7–1A–05.1 OF THIS SUBTITLE. 13
117	117
118	118	(D) “Eligible prekindergarten provider” includes an: 14
119	119
120	120	(1) Eligible public provider; [and] 15
121	121
122	122	(2) Eligible private provider; AND 16
123	123
124	124	(3) EARLY LEARNING COLLABORATIVE . 17
125	125
126	126	[(d)] (E) (1) “Eligible private provider” means a community–based early 18
127	127	learning program that: 19
128	128
129	129	(i) Is licensed in the State; 20
130	130
131	131	(ii) Does not charge more tuition for full–day prekindergarten than 21
132	132	the cost of quality; and 22
133	133
134	134	(iii) Meets the requirements under § 7–1A–04 of this subtitle. 23
135	135
136	136	(2) “Eligible private provider” includes the Ulysses Currie Head Start 24
137	137	Program under § 5–231 of this article. 25
138	138
139	139	[(e)] (F) “Eligible public provider” means an early learning program that: 26
140	140
141	141	(1) Is provided by a county board at a public school; and 27
142	142	4 HOUSE BILL 881
143	143
144	144
145	145	(2) Meets the requirements under § 7–1A–04 of this subtitle. 1
146	146
147	147	[(f)] (G) “Full–day prekindergarten” means an early learning program with a 2
148	148	six and one–half hour school day. 3
149	149
150	150	[(g)] (H) “Prekindergarten program” means an early learning program at an 4
151	151	eligible prekindergarten provider. 5
152	152
153	153	[(h)] (I) “Prekindergarten slot” means the available space for a child to attend 6
154	154	a prekindergarten program. 7
155	155
156	156	[(i)] (J) “Tier I child” means a child: 8
157	157
158	158	(1) Who is 3 or 4 years old; 9
159	159
160	160	(2) Whose family income is less than or equal to 300% of the federal poverty 10
161	161	level; and 11
162	162
163	163	(3) Whose family chooses to enroll the child in full–day prekindergarten. 12
164	164
165	165	[(j)] (K) “Tier II child” means a child: 13
166	166
167	167	(1) Who is 4 years old; 14
168	168
169	169	(2) Whose family income is more than 300% but not more than 600% of the 15
170	170	federal poverty level; and 16
171	171
172	172	(3) Whose family chooses to enroll the child in full–day prekindergarten. 17
173	173
174	174	[(k)] (L) “Tier III child” means a child: 18
175	175
176	176	(1) Who is 4 years old; 19
177	177
178	178	(2) Whose family income is more than 600% of the federal poverty level; 20
179	179	and 21
180	180
181	181	(3) Whose family chooses to enroll the child in full–day prekindergarten. 22
182	182
183	183	7–1A–04. 23
184	184
185	185	(b) In addition to the requirements listed in subsection (a) of this section, an 24
186	186	eligible prekindergarten provider shall: 25
187	187
188	188	(1) If the provider is an eligible private provider OR AN EARLY LEARNING 26
189	189	COLLABORATIVE , achieve a quality rating level of 3 in the Maryland EXCELS program 27
190	190	and publish that quality rating in a publicly available manner, determined by the 28 HOUSE BILL 881 5
191	191
192	192
193	193	Department; 1
194	194
195	195	(2) If the provider is an eligible public provider, achieve a quality rating 2
196	196	level of 4 in the Maryland EXCELS program and publish that quality rating in a publicly 3
197	197	available manner, determined by the Department; 4
198	198
199	199	(3) Submit to the Department a plan to achieve a quality rating level 5 in 5
200	200	the Maryland EXCELS program within 5 years after becoming an eligible prekindergarten 6
201	201	provider; 7
202	202
203	203	(4) Achieve in accordance with the plan a quality rating level 5 in the 8
204	204	Maryland EXCELS program within 5 years after becoming an eligible prekindergarten 9
205	205	provider and publish that quality rating in a publicly available manner, determined by the 10
206	206	Department; and 11
207	207
208	208	(5) Except as otherwise provided in § 7–1A–07 of this subtitle, be open for 12
209	209	pupil attendance in accordance with § 7–103 of this title. 13
210	210
211	211	7–1A–05. 14
212	212
213	213	(a) (1) Each county board shall enter into a memorandum of understanding 15
214	214	with the Department, each eligible private provider AND EARLY LEARNING 16
215	215	COLLABORATIVE participating in publicly funded prekindergarten in the county, and 17
216	216	other applicable government agencies. 18
217	217
218	218	(2) Before executing a memorandum of understanding under this section, 19
219	219	each county board shall submit an implementation plan of the proposed memorandum of 20
220	220	understanding to the Accountability and Implementation Board in accordance with § 21
221	221	5–404 of this article. 22
222	222
223	223	(b) The memorandum of understanding shall provide for: 23
224	224
225	225	(1) Services for children with disabilities; 24
226	226
227	227	(2) A process by which a parent is able to indicate a preference for eligible 25
228	228	prekindergarten providers; 26
229	229
230	230	(3) The manner for processing the payment of the State share, local share, 27
231	231	and family share for each child who is enrolled with an eligible prekindergarten provider; 28
232	232
233	233	(4) Any agreed upon administrative costs to be retained by an agency that 29
234	234	is party to the agreement; 30
235	235
236	236	(5) The manner in which the parties will meet the requirements of this 31
237	237	subtitle; 32
238	238
239	239	(6) A plan to address racial and socioeconomic integration in 33 6 HOUSE BILL 881
240	240
241	241
242	242	prekindergarten classrooms; and 1
243	243
244	244	(7) Any other provisions necessary to carry out this subtitle. 2
245	245
246	246	(c) A memorandum of understanding under this section shall seek to avoid, to the 3
247	247	extent practicable, a disproportionate concentration of students of the same race, ethnicity, 4
248	248	disability status, and income within an eligible provider. 5
249	249
250	250	7–1A–05.1. 6
251	251
252	252	(A) THE PURPOSE OF AN EARLY LEARNING COLLABORATIVE IS TO ENA BLE 7
253	253	PUBLIC AND PRIVATE PROVIDERS TO JOIN TOGETHER TO MEET THE REQUIREMENTS 8
254	254	OF § 7–1A–04 OF THIS SUBTITLE. 9
255	255
256	256	(B) (1) EACH EARLY LEARNING COLLABORATIVE SHALL C ONSIST OF: 10
257	257
258	258	(I) ONE ELIGIBLE PUBLIC PROVIDER ; AND 11
259	259
260	260	(II) ONE ULYSSES CURRIE HEAD START PROGRAM UNDER § 12
261	261	5–231 OF THIS ARTICLE. 13
262	262
263	263	(2) IN ADDITION TO THE RE QUIRED MEMBERS UNDER PARAGRAPH 14
264	264	(1) OF THIS SUBSECTION , AN EARLY LEARNING CO LLABORATIVE MAY INCL UDE ONE 15
265	265	OR MORE PRIVATE PROV IDERS OF A COMMUNITY –BASED EARLY LE ARNING 16
266	266	PROGRAM THAT : 17
267	267
268	268	(I) ARE LICENSED IN THE STATE; AND 18
269	269
270	270	(II) DO NOT CHARGE MORE TU ITION FOR FULL –DAY 19
271	271	PREKINDERGARTEN THAN THE COST OF QUALITY . 20
272	272
273	273	(C) (1) SUBJECT TO PARAGRAPH (4) OF THIS SUBSECTION , EACH 21
274	274	PROSPECTIVE EARLY LEARNING COLLA BORATIVE SHALL DESIGNATE A LEAD 22
275	275	MEMBER. 23
276	276
277	277	(2) THE LEAD MEMBER SHALL: 24
278	278
279	279	(I) SUBMIT AN APPLICATION TO THE DEPARTMENT FOR 25
280	280	APPROVAL AS AN EARLY LEARNING COLLABORATI VE; 26
281	281
282	282	(II) BE THE FISCAL AGENT FOR PURPOSES OF RECE IVING AND 27
283	283	DISTRIBUTING A CONTRIBUTION MADE TO THE EARLY LE ARNING COLLABORATIVE 28
284	284	UNDER § 7–1A–05.2 OF THIS SUBTITLE; AND 29
285	285	HOUSE BILL 881 7
286	286
287	287
288	288	(III) ENSURE EACH MEMBER OF THE EARLY LEARNING 1
289	289	COLLABORATIVE IS COMPLIANT WITH § 7–1A–04 OF THIS SUBTITLE. 2
290	290
291	291	(3) THE APPLICATION UNDER PARAGRAPH (2)(I) OF THIS 3
292	292	SUBSECTION SHALL BE SUBMITTED I N THE MANNER AND FORM THAT THE 4
293	293	DEPARTMENT REQUIRES . 5
294	294
295	295	(4) THE COUNTY BOARD SHAL L BE THE LEAD MEMBER IF THERE IS NO 6
296	296	SUITABLE ALTERNATIVE . 7
297	297
298	298	7–1A–05.2. 8
299	299
300	300	(A) AN INDIVIDUAL MAY MAKE A MONETARY CONTRIBUTION TO A LEAD 9
301	301	MEMBER OF AN EARLY LEARNING COLLABORATIVE TO SUPPORT THE COSTS OF THE 10
302	302	EARLY LEARNING COLLABORATIVE . 11
303	303
304	304	(B) A LEAD MEMBER THAT RECEIVES A CONT RIBUTION UNDER THIS 12
305	305	SECTION SHALL: 13
306	306
307	307	(1) PROVIDE A RECEIPT TO THE PERSON MAKING THE 14
308	308	CONTRIBUTION ; AND 15
309	309
310	310	(2) DISTRIBUTE THE CONTRI BUTION EQUALLY AMONG THE 16
311	311	MEMBER S OF THE EARLY LEARNIN G COLLABORATIVE . 17
312	312
313	313	(C) AN INDIVIDUAL WHO MAKES A CONTRIBUTION UNDER THIS SECTION 18
314	314	MAY BE ELIGIBLE FOR AN INCOME TAX CREDIT UN DER § 10–757 OF THE 19
315	315	TAX – GENERAL ARTICLE. 20
316	316
317	317	SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 21
318	318	as follows: 22
319	319
320	320	Article – Tax – General 23
321	321
322	322	10–757. 24
323	323
324	324	(A) IN THIS SECTION, “DEPARTMENT ” MEANS THE STATE DEPARTMENT OF 25
325	325	EDUCATION. 26
326	326
327	327	(B) SUBJECT TO THE LIMITA TIONS OF THIS SECTIO N, A TAXPAYER MAY 27
328	328	CLAIM A CREDIT AGAIN ST THE STATE INCOME TAX IN AN AMOUNT EQUAL TO THE 28
329	329	AMOUNT STATED IN THE TAX CREDIT CERTI FICATE PROVIDED BY THE DEPARTMENT 29
330	330	FOR A CONTRIBUTION M ADE TO AN EARLY LEAR NING COLLABORATIVE IN 30
331	331	ACCORDANCE WITH § 7–1A–05.2 OF THE EDUCATION ARTICLE. 31 8 HOUSE BILL 881
332	332
333	333
334	334
335	335	(C) BEFORE RECEIVING A TA X CREDIT CERTIFICATE UNDER THIS SECTION , 1
336	336	A TAXPAYER SHALL SUB MIT TO THE DEPARTMENT AN APPLICA TION WITH THE 2
337	337	FOLLOWING INFORMATIO N: 3
338	338
339	339	(1) THE NAMES OF THE TAXP AYER AND THE EARLY L EARNING 4
340	340	COLLABORATIVE TO WH ICH THE CONTRIBUTIO N WAS MADE; 5
341	341
342	342	(2) THE RECEIPT PROVIDED UNDER § 7–1A–05.2 OF THE EDUCATION 6
343	343	ARTICLE; AND 7
344	344
345	345	(3) ANY OTHER INFORMATION REQUIRED BY THE DEPARTMENT . 8
346	346
347	347	(D) (1) SUBJECT TO THE LIMITA TIONS OF THIS SUBSEC TION, THE 9
348	348	DEPARTMENT , ON A FIRST–COME, FIRST–SERVED BASIS, SHALL ISSUE A TAX CR EDIT 10
349	349	CERTIFICATE TO A TAX PAYER WHO HAS MET THE REQUIREM ENTS OF SUBSECTION 11
350	350	(C) OF THIS SECTION. 12
351	351
352	352	(2) SUBJECT TO PARAGRAPH (3) OF THIS SUBSECTION, THE AMOUNT 13
353	353	OF THE TAX CREDIT ST ATED IN THE TAX CERT IFICATE SHALL BE EQUAL TO TH E 14
354	354	AMOUNT OF THE CONTRI BUTION INDICATED ON THE TAXPAYER’S RECEIPT. 15
355	355
356	356	(3) THE DEPARTMENT MAY NOT IS SUE TAX CREDIT CERTI FICATES 16
357	357	FOR CREDIT AMOUNTS : 17
358	358
359	359	(I) TOTALING MORE THAN $1,000,000 FOR A SINGLE TAXPAYE R 18
360	360	IN A TAXABLE YEAR ; AND 19
361	361
362	362	(II) IN THE AGGREGATE TOTA LING MORE THAN $16,000,000 IN 20
363	363	ANY TAXABLE YEAR. 21
364	364
365	365	(E) ON OR BEFORE JANUARY 31 EACH YEAR, THE DEPARTMENT SHALL 22
366	366	REPORT TO THE COMPTROLLER ON THE TA X CREDIT CERTIF ICATES ISSUED UNDER 23
367	367	THIS SECTION DURING THE PRIOR TAXABLE YE AR. 24
368	368
369	369	SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect July 25
370	370	1, 2023. Section 2 of this Act shall be applicable to all taxable years beginning after 26
371	371	December 31, 2022. 27