Section 1. Section 35A-3-209 is amended to read:35A-3-209. Award of child care subsidy services.(1)As used in this section, "child care provider" means an entity that holds a license or certificate from the Department of Health and Human Services in accordance with Title 26B, Chapter 2, Part 4, Child Care Licensing.(2)(a)On or before June 30, 2023, the office shall award a full child care subsidy or grant for an income-eligible child.(b)The office shall make the award described in Subsection (2)(a):(i)in accordance with applicable federal law and regulation; and(ii)subject to available funds.(3)(a)Beginning on July 1, 2023, and subject to Subsection (3)(b), the office may award:(i)a full child care subsidy or grant for:(A)an income-eligible child whose family income is equal to or below 75% of state median income; or(B)a child who has at least one parent or legal guardian working as a full-time employee of a child care provider; and(ii)(i)a full child care subsidy or grant for an income-eligible child whose family income is equal to or less than 75% of state median income; or(ii)a progressively lower child care subsidy or grant for each tenth of a percentage point by which the income-eligible child's family income exceeds 75% of state median income up to 85% of state median income.(b)The office shall make the award described in Subsection (3)(a):(i)in accordance with applicable federal law and regulation; and(ii)subject to available federal funds.(4)(a)On or before June 30, 2023, and subject to Subsection (4)(b), the office shall determine the amount of a child care subsidy or grant based on the income-eligible child's enrollment in child care.(b)To qualify for a child care subsidy or grant under Subsection (4)(a), an income-eligible child shall be enrolled in child care for a minimum of eight hours per month.(c)On or after July 1, 2023, and subject to Subsection (4)(d), the office shall determine the amount of a child care subsidy or grant based on the income-eligible child's attendance in child care.(d)To qualify for a child care subsidy or grant under Subsection (4)(c), an income-eligible child shall attend child care for a minimum of eight hours per month.

Section 2. Section 35A-3-211 is enacted to read:35A-3-211. Child Care Center Employee Subsidy Pilot Program.(1)As used in this section:(a)"Center based child care" means the same as that term is defined in Section 26B-2-401.(b)"Child Care Center Employee Subsidy Pilot Program" means the child care subsidy program created in Subsection (2).(c)"Eligible employee" means an individual that:(i)works at an eligible employer;(ii)enrolls at least one qualifying child for child care with the eligible employer; and(iii)applies for the child care subsidy in accordance with Section 35A-3-209.(d)"Eligible employer" means a center based child care provider that:(i)holds a license from the Department of Health and Human Services in accordance with Title 26B, Chapter 2, Part 4, Child Care Licensing;(ii)provides a reduced tuition employee benefit to an eligible employee for a qualifying child; and(iii)accepts the child care subsidy services for an income-eligible child as described in Section 35A-3-209.(e)"Qualifying child" means a child of an eligible employee who:(i)is enrolled for child care with an eligible employer;(ii)meets attendance requirements for the child care subsidy services described in Section 35A-3-209; and(iii)does not meet the income eligibility requirements for an award of child care subsidy services described in Section 35A-3-209.(f)"Reduced tuition employee benefit" means a child care tuition reduction benefit that is equal to or more than 50% of an eligible employer's average monthly child care tuition provided to an eligible employee for each qualifying child.(2)There is created the Child Care Center Employee Subsidy Pilot Program administered by the office.(3)(a)Beginning on July 1, 2026, and subject to legislative appropriations, the office may award a child care center employee subsidy under this section to an eligible employer for each qualifying child.(b)The subsidy award may not exceed 50% of the average cost of monthly child care tuition, as determined by the office.(c)An eligible employer may not receive a subsidy award for the same child who receives a subsidy award under this section and Section 35A-3-209.(4)The office may make rules in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, to implement this section.

Section 3. Section 35A-3-211.1 is enacted to read:35A-3-211.1. The Child Care Center Employee Subsidy Restricted Account.(1)As used in this section, "account" means the Child Care Center Employee Subsidy Restricted Account created under Subsection (2).(2)There is created in the General Fund a restricted account known as the Child Care Center Employee Subsidy Restricted Account to fund the Child Care Center Employee Subsidy Pilot Program created in Section 35A-3-211.(3)The account shall consist of:(a)gifts, grants, donations, or any other conveyance of money that may be made to the fund from private sources;(b)additional amounts as appropriated by the Legislature; and(c)all income and interest derived from the deposit and investment of money in the account.(4)The account shall be administered by the office.(5)The state treasurer shall invest the money in the account according to the procedures and requirements of Title 51, Chapter 7, State Money Management Act, except that interest and other earnings derived from the account shall be deposited into the account.(6)The funds in the account shall be nonlapsing.

Section 4. FY 2027 Appropriations.

The following sums of money are appropriated for the fiscal year beginning July 1, 2026, and ending June 30, 2027. These are additions to amounts previously appropriated for fiscal year 2027.

Subsection 4(a).Operating and Capital Budgets

Under the terms and conditions of Title 63J, Chapter 1, Budgetary Procedures Act, the Legislature appropriates the following sums of money from the funds or accounts indicated for the use and support of the government of the state of Utah.

ECONOMIC AND COMMUNITY DEVELOPMENTDEPARTMENT OF WORKFORCE SERVICESITEM 1Department of Workforce Services - Operations and PolicyFrom General Fund Restricted - Child Care Center Employee Subsidy Restricted Account 3,000,000Child Care Assistance3,000,000Subsection 4(b).Restricted Fund and Account Transfers

The Legislature authorizes the State Division of Finance to transfer the following amounts between the following funds or accounts as indicated. Expenditures and outlays from the funds to which the money is transferred must be authorized by an appropriation.

ECONOMIC AND COMMUNITY DEVELOPMENTITEM 2General Fund Restricted � Child Care Center Employee Subsidy Restricted AccountFrom General Fund, One-time3,000,000General Fund Restricted � Child Care Center Employee Subsidy Restricted Account3,000,000In accordance with Section 63J-1-603 of the Utah Code, the Legislature intends that up to $3,000,000 of the one-time general funds provided in Item 2 for the Child Care Center Employee Subsidy Restricted Account shall not lapse at the close of fiscal year 2027. The use of any nonlapsing funds is limited to the child care center employee subsidy.

Section 5. Effective Date.This bill takes effect on May 6, 2026.