HOUSE BILL 631 By Clemmons SENATE BILL 580 By Akbari SB0580 002027 - 1 - AN ACT to amend Tennessee Code Annotated, Title 4, Chapter 32; Title 8; Title 9 and Title 71, relative to the governor's office of faith-based and community initiatives. BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE: SECTION 1. Tennessee Code Annotated, Title 4, Chapter 32, is amended by adding the following as a new section: (a) The office shall establish a grant program for the purpose of supporting and funding nonprofit and faith-based child care programs for children four (4) years of age and younger. (b) Subject to appropriations, at least one-third (1/3) of funds appropriated to the office each year must be allocated and disbursed as grants in accordance with this section. (c) (1) To qualify and receive grant funds, a nonprofit or faith-based child care program must: (A) Be licensed and qualified in accordance with title 71, chapter 3, part 5, as a child care agency; (B) Be in good standing with the department of human services; and (C) Operate on an income-based pricing model in which a family is charged not more than seven percent (7%) of their household income for child care. - 2 - 002027 (2) Priority for grants must be given to applicants located in a child care desert. For purposes of this subdivision (c)(2), "child care desert" means a census tract where there are more than fifty (50) children younger than five (5) years of age and the tract either does not contain a licensed child care agency or has a ratio of at least three (3) children in such age group per licensed child care agency slot. (d) The executive director of the office shall oversee the grant application process and program. Not later than March 1 annually, the executive director shall report to the general assembly and the office of legislative budget analysis on the availability of grant funds and the use and recipients of such funds disbursed in accordance with this section. SECTION 2. This act takes effect July 1, 2025, the public welfare requiring it.