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Legislation Detail
CS/SB 175 CHILD CARE FACILITY LOAN FUND CHANGES
Sponsored By: Sen Heather Jean Berghmans

Actions: [2] STBTC/SFC-STBTC [6] DNP-CS/DP-SFC [9] DP [11] PASSED/S (40-0) [10] HCEDC-HCEDC [15] DP [17] PASSED/H (66-0) SGND BY GOV (Mar. 21) Ch. 14.

Scheduled: Not Scheduled

Summary:
 Senate Bill 175 amends the Child Care Facility Revolving Loan Fund; allows the Early Childhood Education and Care Department and the New Mexico Finance Authority to contract for services with providers or employers seeking to create or expand childcare programs and employees; provides conditions; and expands uses of the loans.
Legislation Overview:
 Senate Bill 175 amends the Child Care Facility Revolving Loan Fund (Fund) in Administration Subsection B to provide that money in the Fund may also make loans as follows: 

to employers to create or expand high-quality child care programs for employees; and 

for the department and the New Mexico Finance Authority (NMFA) to contract for services with providers and employers seeking to create or expand child care programs for employees.

Subsection C adds that the department shall give priority to loans for providers that serve proportionately high numbers of state subsidized clients and low-income families that are located in communities with high poverty rates and that provide nontraditional-hour child care.

Subsection D is inserted and the section is relettered. 
D. The department and the NMFA shall enter into a contract for services with a provider or an employer seeking to create or expand child care programs for the employer's employees, provided that within five years of disbursement of the loan, the provider or employer: 
(1) is located in a designated child care desert; 
(2) demonstrates that at least 50 percent of the children served are recipients of a child care assistance program expanded or created by the provider or employer; 
(3) demonstrates that the number of children served increased by ten percent; and 
(4) satisfies other qualifications as determined by the department and the NMFA.
Current Law: 
 Senate Bill 175 in Health and Safety Section 24-24-4 NMSA 1978 (being Laws 2003, Chapter 316, Section 4, as amended) currently does not support loans as proposed for the Child Care Facility Revolving Loan Fund.
Committee Substitute:
 Senate Bill 175 is substituted by the Senate Tax, Business and Transportation Committee as follows:
CS/Senate Bill 175 (CS/SB 175) inserts Section 1, titled Definitions.
CS/SB 175 in Section 2
Subsection A creates the Child Care Facility Revolving Loan Fund in the authority. “expand their facilities, create new facilities” is inserted in the list of possible loans.
Subsection A also is amended to delete that the money in the fund is “appropriated to the department, which shall utilize the fund for the purposes of the Child Care Facility Loan Act
Subsection B is substituted to insert “or contract for services with providers” as a use for money in the fund. Subsection B also adds to this list of loans “to providers seeking to expand child care facilities; and to providers seeking to create new childe care facilities, including for employers  to create child care facilities for the employer’s employees.
Subsection C is inserted:
C. The department and the authority may contract for services with an eligible provider to provide child care for child care assistance eligible families as reasonably adequate legal consideration for money from the fund; provided that within a period of time prescribed in the contract of disbursement of the loan, the provider: 
(1) is located in a designated child care desert;
(2) provides care during non-traditional hours; 
(3) demonstrates that at least 50 percent of the children that the provider or employer serves are recipients of a child care assistance program expanded or created by the provider; 
(4) demonstrates that the number of children served by the provider increased by at least ten percent; and
(5) satisfies other qualifications as determined by the department and the authority. 
Subsection D is inserted:
D. No more than 20 percent of the fund may be loaned for a single provider in a single project. The department shall give priority for loans to providers that serve proportionately high numbers of state subsidized clients and low-income families that are located in communities with high poverty rates and that provide nontraditional-hour child care. 
Subsection E is substituted to to provide that the department and authority make rules “including providing for eligibility requirements and for the selection of applicants based on department-defined priority.
  • Floor Amendments arrow_drop_down