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)In accordance with Section 63J-1-602.1, appropriations from the account are nonlapsing.

Section 4. Section 63J-1-602.1 is amended to read:63J-1-602.1. List of nonlapsing appropriations from accounts and funds.Appropriations made from the following accounts or funds are nonlapsing:(1)The Native American Repatriation Restricted Account created in Section 9-9-407.(2)Certain money payable for expenses of the Pete Suazo Utah Athletic Commission, as provided under Title 9, Chapter 23, Pete Suazo Utah Athletic Commission Act.(3)Funds collected for directing and administering the C-PACE district created in Section 11-42a-106.(4)Money received by the Utah Inland Port Authority, as provided in Section 11-58-105.(5)The Commerce Electronic Payment Fee Restricted Account created in Section 13-1-17.(6)The Division of Air Quality Oil, Gas, and Mining Restricted Account created in Section 19-2a-106.(7)The Division of Water Quality Oil, Gas, and Mining Restricted Account created in Section 19-5-126.(8)State funds for matching federal funds in the Children's Health Insurance Program as provided in Section 26B-3-906.(9)Funds collected from the program fund for local health department expenses incurred in responding to a local health emergency under Section 26B-7-111.(10)The Technology Development Restricted Account created in Section 31A-3-104.(11)The Criminal Background Check Restricted Account created in Section 31A-3-105.(12)The Captive Insurance Restricted Account created in Section 31A-3-304, except to the extent that Section 31A-3-304 makes the money received under that section free revenue.(13)The Title Licensee Enforcement Restricted Account created in Section 31A-23a-415.(14)The Health Insurance Actuarial Review Restricted Account created in Section 31A-30-115.(15)The State Mandated Insurer Payments Restricted Account created in Section 31A-30-118.(16)The Insurance Fraud Investigation Restricted Account created in Section 31A-31-108.(17)The Underage Drinking Prevention Media and Education Campaign Restricted Account created in Section 32B-2-306.(18)The Child Care Center Employee Subsidy Restricted Account created in Section 35A-3-211.1.(19)The School Readiness Restricted Account created in Section 35A-15-203.(19)(20)Money received by the Utah State Office of Rehabilitation for the sale of certain products or services, as provided in Section 35A-13-202.(20)(21)The Property Loss Related to Homelessness Compensation Enterprise Fund created in Section 35A-16-212.(21)(22)The Homeless Shelter Cities Mitigation Restricted Account created in Section 35A-16-402.(22)(23)The Oil and Gas Administrative Penalties Account created in Section 40-6-11.(23)(24)The Oil and Gas Conservation Account created in Section 40-6-14.5.(24)(25)The Division of Oil, Gas, and Mining Restricted account created in Section 40-6-23.(25)(26)The Electronic Payment Fee Restricted Account created by Section 41-1a-121 to the Motor Vehicle Division.(26)(27)The License Plate Restricted Account created by Section 41-1a-122.(27)(28)The Motor Vehicle Enforcement Division Temporary Permit Restricted Account created by Section 41-3-110 to the State Tax Commission.(28)(29)The State Disaster Recovery Restricted Account to the Division of Emergency Management, as provided in Section 53-2a-603.(29)(30)The Disaster Response, Recovery, and Mitigation Restricted Account created in Section 53-2a-1302.(30)(31)The Emergency Medical Services Critical Needs Account created in Section 53-2d-110.(31)(32)The Department of Public Safety Restricted Account to the Department of Public Safety, as provided in Section 53-3-106.(32)(33)The Utah Highway Patrol Aero Bureau Restricted Account created in Section 53-8-303.(33)(34)The DNA Specimen Restricted Account created in Section 53-10-407.(34)(35)The Technical Colleges Capital Projects Fund created in Section 53H-9-605.(35)(36)The Higher Education Capital Projects Fund created in Section 53H-9-502.(36)(37)A certain portion of money collected for administrative costs under the School Institutional Trust Lands Management Act, as provided under Section 53C-3-202.(37)(38)The Public Utility Regulatory Restricted Account created in Section 54-5-1.5, subject to Subsection 54-5-1.5(4)(d).(38)(39)Funds collected from a surcharge fee to provide certain licensees with access to an electronic reference library, as provided in Section 58-3a-105.(39)(40)Certain fines collected by the Division of Professional Licensing for violation of unlawful or unprofessional conduct that are used for education and enforcement purposes, as provided in Section 58-17b-505.(40)(41)Funds collected from a surcharge fee to provide certain licensees with access to an electronic reference library, as provided in Section 58-22-104.(41)(42)Funds collected from a surcharge fee to provide certain licensees with access to an electronic reference library, as provided in Section 58-55-106.(42)(43)Funds collected from a surcharge fee to provide certain licensees with access to an electronic reference library, as provided in Section 58-56-3.5.(43)(44)Certain fines collected by the Division of Professional Licensing for use in education and enforcement of the Security Personnel Licensing Act, as provided in Section 58-63-103.(44)(45)The Relative Value Study Restricted Account created in Section 59-9-105.(45)(46)The Cigarette Tax Restricted Account created in Section 59-14-204.(46)(47)Funds paid to the Division of Real Estate for the cost of a criminal background check for a mortgage loan license, as provided in Section 61-2c-202.(47)(48)Funds paid to the Division of Real Estate for the cost of a criminal background check for principal broker, associate broker, and sales agent licenses, as provided in Section 61-2f-204.(48)(49)Certain funds donated to the Department of Health and Human Services, as provided in Section 26B-1-202.(49)(50)Certain funds donated to the Division of Child and Family Services, as provided in Section 80-2-404.(50)(51)Funds collected by the Office of Administrative Rules for publishing, as provided in Section 63G-3-402.(51)(52)The Immigration Act Restricted Account created in Section 63G-12-103.(52)(53)Money received by the military installation development authority, as provided in Section 63H-1-504.(53)(54)The Unified Statewide 911 Emergency Service Account created in Section 63H-7a-304.(54)(55)The Utah Statewide Radio System Restricted Account created in Section 63H-7a-403.(55)(56)The Utah Capital Investment Restricted Account created in Section 63N-6-204.(56)(57)The Motion Picture Incentive Account created in Section 63N-8-103.(57)(58)Funds collected by the housing of state probationary inmates or state parole inmates, as provided in Subsection 64-13e-104(2).(58)(59)Certain forestry and fire control funds utilized by the Division of Forestry, Fire, and State Lands, as provided in Section 65A-8-103.(59)(60)The following funds or accounts created in Section 72-2-124:(a)Transportation Investment Fund of 2005;(b)Transit Transportation Investment Fund;(c)Cottonwood Canyons Transportation Investment Fund;(d)Active Transportation Investment Fund; and(e)Commuter Rail Subaccount.(60)(61)The Amusement Ride Safety Restricted Account, as provided in Section 72-16-204.(61)(62)Certain funds received by the Office of the State Engineer for well drilling fines or bonds, as provided in Section 73-3-25.(62)(63)The Water Resources Conservation and Development Fund, as provided in Section 73-23-2.(63)(64)Award money under the State Asset Forfeiture Grant Program, as provided under Section 77-11b-403.(64)(65)Funds donated or paid to a juvenile court by private sources, as provided in Subsection 78A-6-203(1)(c).(65)(66)Fees for certificate of admission created under Section 78A-9-102.(66)(67)Funds collected for adoption document access as provided in Sections 81-13-103, 81-13-504, and 81-13-505.(67)(68)Funds collected for indigent defense as provided in Title 78B, Chapter 22, Part 4, Utah Indigent Defense Commission.(68)(69)The Utah Geological Survey Restricted Account created in Section 79-3-403.(69)(70)Revenue for golf user fees at the Wasatch Mountain State Park, Palisades State Park, and Green River State Park, as provided under Section 79-4-403.(70)(71)Certain funds received by the Division of State Parks from the sale or disposal of buffalo, as provided under Section 79-4-1001.

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