ARIZONA HOUSE OF REPRESENTATIVES

Fifty-fourth Legislature

Second Regular Session

HB 2913: supplemental appropriations; child care facilities

Sponsor: Representative Udall, LD 25

Caucus & COW

Overview

Appropriates $85,005,835 from the Child Care Development Fund (CCDF) in FY 2020 to the Department of Economic Security (DES) to provide forgivable loans to child care facilities. Appropriates $3,000,000 in FY 2020 from the CCDF in FY 2020 to the Department of Health Services (DHS) to provide waivers of licensure renewal fees for child care facilities.

History

The federal Coronavirus Aid, Relief, and Economic Security (CARES) Act, signed into law on March 27, 2020, includes supplemental appropriations for the Child Care and Development Block Grant (CCDBG) to prevent, prepare for and respond to the coronavirus disease 2019. Arizona's formula-based allocation of CARES Act supplemental CCDBG funding is $88,005,835.

Federal law requires state legislatures to appropriate CCDBG funds (P.L. 104-193, Section 901). The FY 2021 General Appropriations Act appropriated $181,251,300 in CCDBG monies from the CCDF to DES and $882,600 to DHS.

Provisions

1. Appropriates $85,005,835 from the CCDF in FY 2020 to DES to provide forgivable loans to licensed child care facilities that provide child care services for at least six months after receiving a loan and that spend the monies for any of the following:

a) Reopening the child care facility and providing child care services;

b) Continuing to operate the child care facility and providing child care services;

c) Making past and future rental or lease payments for the child care facility; or

d) Purchasing sanitation supplies and personal protective equipment for the child care facility and the facility's staff. (Sec. 1)

2. Requires DES to:

a) Base each loan amount on a per child basis using February 2020 enrollment; and

b) Prorate the loan repayment on a monthly basis for any licensed child care facility that does not remain in operation for at least six months after receiving the loan. (Sec. 1)

3. Appropriates $3,000,000 from the CCDF in FY 2020 to DHS to provide a waiver of licensure renewal fees for each licensed child care facility. (Sec. 1)

4. Allows DES and DHS to spend the appropriated monies in FY 2020 and FY 2021. (Sec. 1)

5. Requires DES and DHS to report to the Joint Legislative Budget Committee by August 1, 2020, February 1, 2021 and August 1, 2021 on each of the following:

a) Total expenditures by each department;

b) If applicable, expenditure by each department categorized by:

i. Type of licensed child care facility;

ii. County of each child care facility;

iii. How the monies were spent by each child care facility; and

c) From DES, the amount and county of the loan that was repaid by each licensed child care facility that received a loan and did not remain operational for at least six months after receiving the loan. (Sec. 1)

6. Exempts DES and DHS from rulemaking provisions for purposes on this section for one year after the effective date of this act. (Sec. 1)

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10. HB 2913

11. Initials TG Page 0 Caucus & COW

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