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First Substitute H.B. 36

Representative Richard M. Siddoway proposes the following substitute bill:




Sponsor: Richard M. Siddoway

             5      This act modifies provisions related to child care in Utah. The act modifies definitions
             6      related to providing child care services. It expands and clarifies the functions and duties of
             7      the Office of Child Care and requires an annual report by the office on the status of child
             8      care in the state. The act expands the membership of the Child Care Advisory Committee
             9      and provides specific responsibilities for the committee. The act clarifies the roles and
             10      relationships of individuals and entities who have statutory responsibilities related to the
             11      Child Care Expendable Trust Fund and makes certain technical changes.
             12      This act affects sections of Utah Code Annotated 1953 as follows:
             13      AMENDS:
             14          26-39-102, as last amended by Chapter 77, Laws of Utah 1999
             15          26-39-104, as last amended by Chapter 77, Laws of Utah 1999
             16          35A-3-102, as last amended by Chapter 9, Laws of Utah 2001
             17          35A-3-201, as renumbered and amended by Chapter 375, Laws of Utah 1997
             18          35A-3-203, as last amended by Chapter 143, Laws of Utah 2001
             19          35A-3-205, as last amended by Chapter 1, Laws of Utah 1998
             20          35A-3-206, as renumbered and amended by Chapter 375, Laws of Utah 1997
             21      Be it enacted by the Legislature of the state of Utah:
             22          Section 1. Section 26-39-102 is amended to read:
             23           26-39-102. Definitions.
             24          As used in this chapter:
             25          (1) "Child" means:

             26          (a) a child of a person other than the provider of child care;
             27          (b) a child of a licensed or certified residential child care provider who is under the age
             28      of four; and
             29          (c) a child of an employee or owner of a licensed child care center who is under the age
             30      of four.
             31          (2) "Child care" means continuous care and supervision of five or more children [under
             32      14 years of age] through age 12 and children with disabilities through age 18, in lieu of care
             33      ordinarily provided by parents in their own home, for less than 24 hours a day, for direct or indirect
             34      compensation.
             35          (3) "Child care program" means a child care facility or program operated by a person
             36      pursuant to a license issued in accordance with this chapter.
             37          (4) "Residential child care" means child care provided in the home of a provider.
             38          Section 2. Section 26-39-104 is amended to read:
             39           26-39-104. Duties of the department.
             40          (1) With regard to child care programs licensed pursuant to this chapter, the department
             41      may:
             42          (a) make and enforce rules to implement the provisions of this chapter and, as necessary
             43      to protect children's common needs for a safe and healthy environment, to provide for:
             44          (i) adequate facilities and equipment; and
             45          (ii) competent caregivers considering the age of the children and the type of program
             46      offered by the licensee;
             47          (b) make and enforce rules necessary to carry out the purposes of this chapter, in the
             48      following areas:
             49          (i) requirements for applications, the application process, and compliance with other
             50      applicable statutes and rules;
             51          (ii) documentation and policies and procedures that providers shall have in place in order
             52      to be licensed, in accordance with Subsection (1)(a);
             53          (iii) categories, classifications, and duration of initial and ongoing licenses;
             54          (iv) changes of ownership or name, changes in licensure status, and changes in operational
             55      status;
             56          (v) license expiration and renewal, contents, and posting requirements;

             57          (vi) procedures for inspections, complaint resolution, disciplinary actions, and other
             58      procedural measures to encourage and assure compliance with statute and rule; and
             59          (vii) guidelines necessary to assure consistency and appropriateness in the regulation and
             60      discipline of licensees; and
             61          (c) set and collect licensing and other fees in accordance with Section 26-1-6 .
             62          (2) (a) The department may not regulate educational curricula, academic methods, or the
             63      educational philosophy or approach of the provider.
             64          (b) The department shall allow for a broad range of educational training and academic
             65      background in certification or qualification of child day care directors.
             66          (3) In licensing and regulating child care programs, the department shall reasonably
             67      balance the benefits and burdens of each regulation and, by rule, provide for a range of licensure,
             68      depending upon the needs and different levels and types of child care provided.
             69          (4) Notwithstanding the definition of "child" in Subsection 26-39-102 (1), the department
             70      shall count children [under the age of 14] through age 12 and children with disabilities through age
             71      18 toward the minimum square footage requirement for indoor and outdoor areas, including the
             72      child of:
             73          (a) a licensed residential child care provider; or
             74          (b) an owner or employee of a licensed child care center.
             75          Section 3. Section 35A-3-102 is amended to read:
             76           35A-3-102. Definitions.
             77          [As] Unless otherwise specified, as used in this chapter:
             78          (1) "Applicant" means a person who requests assistance under this chapter.
             79          (2) "Average monthly number of families" means the average number of families who
             80      received cash assistance on a monthly basis during the previous federal fiscal year, starting from
             81      October 1, 1998 to September 30, 1999, and continuing each year thereafter.
             82          (3) "Cash assistance" means a monthly dollar amount of cash a client is eligible to receive
             83      under Section 35A-3-302 .
             84          (4) "Child care services" means care of a child for a portion of the day that is less than 24
             85      hours in a qualified setting, as defined by rule, by a responsible person who is not the child's parent
             86      or legal guardian.
             87          (5) "Date of enrollment" means the date on which the applicant was approved as eligible

             88      for cash assistance.
             89          (6) "Director" means the director of the division.
             90          (7) "Diversion" means a single payment of cash assistance under Section 35A-3-303 to a
             91      client who is eligible for but does not require extended cash assistance under Part 3, Family
             92      Employment Program.
             93          (8) "Division" means the Division of Employment Development.
             94          (9) "Education or training" means:
             95          (a) basic remedial education;
             96          (b) adult education;
             97          (c) high school education;
             98          (d) education to obtain the equivalent of a high school diploma;
             99          (e) education to learn English as a second language;
             100          (f) applied technology training;
             101          (g) employment skills training; or
             102          (h) on-the-job training.
             103          (10) "Full-time education or training" means training on a full-time basis as defined by the
             104      educational institution attended by the parent client.
             105          (11) "General assistance" means financial assistance provided to a person who is not
             106      otherwise eligible for cash assistance under Part 3, Family Employment Program, because that
             107      person does not live in a family with a related dependent child.
             108          (12) "Parent client" means a person who enters into an employment plan with the division
             109      to qualify for cash assistance under Part 3, Family Employment Program.
             110          (13) (a) "Passenger vehicle" means a self-propelled, two-axle vehicle intended primarily
             111      for operation on highways and used by an applicant or client to meet basic transportation needs
             112      and has a fair market value below 40% of the applicable amount of the federal luxury passenger
             113      automobile tax established in 26 U.S.C. Sec. 4001 and adjusted annually for inflation.
             114          (b) "Passenger vehicle" does not include:
             115          (i) a commercial vehicle, as defined in Section 41-1a-102 ;
             116          (ii) an off-highway vehicle, as defined in Section 41-1a-102 ; or
             117          (iii) a motor home, as defined in Section 13-14-102 .
             118          (14) "Plan" or "state plan" means the state plan submitted to the Secretary of the United

             119      States Department of Health and Human Services to receive funding from the United States
             120      through the Temporary Assistance for Needy Families Block Grant.
             121          (15) "Single minor parent" means a person under 18 years of age who is not married and
             122      has a minor child in his care and custody.
             123          Section 4. Section 35A-3-201 is amended to read:
             124           35A-3-201. Definitions.
             125          As used in this part:
             126          (1) "Child care" means the services referred to in Subsection 35A-3-102 (4) provided for:
             127          (a) children through age 12; and
             128          (b) children with disabilities through age 18.
             129          [(1)] (2) "Committee" means the Child Care Advisory Committee created in Section
             130      35A-3-205 .
             131          [(2)] (3) "Director" means the director of the Office of Child Care.
             132          [(3)] (4) "Office" means the Office of Child Care created in Section 35A-3-202 .
             133          Section 5. Section 35A-3-203 is amended to read:
             134           35A-3-203. Functions and duties of office -- Annual report.
             135          The office shall:
             136          (1) assess child care needs throughout the state on an ongoing basis and focus its activities
             137      on helping to meet those needs, with highest identified needs being addressed first;
             138          (2) provide child care subsidy services for income-eligible children through age 12 and for
             139      income-eligible children with disabilities through age 18;
             140          (3) use its resources to encourage the development and enhancement of child care
             141      throughout the state;
             142          [(1)] (4) provide information:
             143          (a) to employers for the development of options for child care in the work place; and
             144          (b) for educating the public in obtaining quality child care;
             145          [(2)] (5) coordinate services for quality child care training and child care resource and
             146      referral core services;
             147          [(3)] (6) apply for, accept, or expend gifts or donations from public or private sources;
             148          [(4)] (7) provide administrative support services to the committee;
             149          [(5)] (8) work collaboratively with the following for the delivery of quality child care and

             150      early childhood programs, and school age programs [in] throughout the state:
             151          (a) the State Board of Education;
             152          (b) the Department of Community and Economic Development; and
             153          (c) the Department of Health;
             154          [(6)] (9) research child care programs and public policy that will improve quality and
             155      accessibility and that will further the purposes of the office and child care, early childhood
             156      programs, and school age programs; [and]
             157          [(7)] (10) provide planning and technical assistance for the development and
             158      implementation of programs in communities that lack child care, early childhood programs, and
             159      school age programs; [and]
             160          [(8)] (11) provide organizational support for the establishment of nonprofit organizations
             161      approved by the Child Care Advisory Committee, created in Section 35A-3-205 [.]; and
             162          (12) provide a written report on the status of child care in Utah to the Legislature by
             163      November 1 of each year through the Workforce Services and Community and Economic
             164      Development Interim Committee.
             165          Section 6. Section 35A-3-205 is amended to read:
             166           35A-3-205. Creation of committee.
             167          (1) There is created a Child Care Advisory Committee.
             168          (2) The committee shall counsel and advise the office in fulfilling its statutory
             169      obligations[.] to include:
             170          (a) a review of and recommendations on the office's annual budget;
             171          (b) recommendations on how the office might best respond to child care needs throughout
             172      the state; and
             173          (c) recommendations on the use of new monies that come into the office, including those
             174      for the Child Care Expendable Trust Fund.
             175          (3) The committee shall be composed of [13] the following members [as follows] with
             176      special attention being given to insure diversity and representation from both urban and rural
             177      groups:
             178          (a) one expert in early childhood development [appointed by the executive director in
             179      accordance with Subsection (4)];
             180          (b) one child care provider who operates a center [appointed by the executive director in

             181      accordance with Subsection (4)];
             182          (c) one child care provider who operates a family child care business [appointed by the
             183      executive director in accordance with Subsection (4)];
             184          (d) one parent [of preschool or elementary school-aged children appointed by the executive
             185      director in accordance with Subsection (4)] who currently receives a child care subsidy from the
             186      office and is representative of single-parent households with children through age 12;
             187          (e) one representative of two-parent households with children through age 12 using child
             188      care;
             189          [(e)] (f) one representative from the public at-large [appointed by the director in
             190      accordance with Subsection (4)];
             191          [(f)] (g) one representative of the State Office of Education;
             192          [(g)] (h) one representative of the Department of Health;
             193          (i) one representative of the Department of Human Services;
             194          (j) one representative of the Department of Community and Economic Development;
             195          [(h)] (k) two representatives from the corporate community [appointed by the executive
             196      director in accordance with Subsection (4)], one of which shall be a recent "Family Friendly"
             197      award winner who received the award because of efforts in the child care arena;
             198          [(i)] (l) two representatives from the small business community [appointed by the
             199      executive director in accordance with Subsection (4)];
             200          [(j)] (m) one representative from child care advocacy groups [appointed by the executive
             201      director in accordance with Subsection (4); and];
             202          [(k) one representative from the Division of Employment Development appointed by the
             203      executive director.]
             204          (n) one representative of children with disabilities;
             205          (o) one representative from the state Head Start Association appointed by the association;
             206          (p) one representative from each child care provider association; and
             207          (q) one representative of a child care resource and referral center appointed by the
             208      organization representing child care resource and referral agencies.
             209          [(4) Of those members appointed by the executive director under Subsection (3), with the
             210      exception of the representative from the Division of Employment Development, no]
             211          (4) (a) The executive director shall appoint the members designated in Subsections (3)(a)

             212      through (f) and (k) through (n).
             213          (b) (i) The members appointed under Subsection (3)(q) shall be appointed by their
             214      respective child care provider association.
             215          (ii) As used in Subsections (3) and (4), "child care provider association" means an
             216      association:
             217          (A) that has functioned as a child care provider association in the state for at least three
             218      years; and
             219          (B) is affiliated with a national child care provider association.
             220          (c) No more than [five] seven of the members appointed by the executive director may be
             221      from the same political party.
             222          (5) (a) Except as required by Subsection (5)(b), as terms of current committee members
             223      expire, the executive director shall appoint each new member or reappointed member to a
             224      four-year term.
             225          (b) Notwithstanding the requirements of Subsection (5)(a), the executive director shall,
             226      at the time of appointment or reappointment, adjust the length of terms to ensure that the terms of
             227      committee members are staggered so that approximately half of the committee is appointed every
             228      two years.
             229          (6) When a vacancy occurs in the membership for any reason, including missing three
             230      consecutive meetings where the member has not been excused by the chair prior to or during the
             231      meeting, the replacement shall be appointed for the unexpired term.
             232          (7) A majority of the members constitutes a quorum for the transaction of business.
             233          (8) (a) The executive director shall select a chair from the committee membership.
             234          (b) The chair's term of office expires on April 1 of each year [and a].
             235          (c) A chair may serve no more than two one-year terms as chair.
             236          (9) (a) [(i)] Members who are not government employees may not receive compensation
             237      or benefits for their services, but may receive per diem and expenses incurred in the performance
             238      of the member's official duties at the rates established by the Division of Finance under Sections
             239      63A-3-106 and 63A-3-107 .
             240          [(ii) Members may decline to receive per diem and expenses for their service.]
             241          (b) [(i)] State government officer and employee members who do not receive salary, per
             242      diem, or expenses from their agency for their service may receive per diem and expenses incurred

             243      in the performance of their official duties from the committee at the rates established by the
             244      Division of Finance under Sections 63A-3-106 and 63A-3-107 .
             245          [(ii)] (c) [State government officer and employee members] Members identified in
             246      Subsections (9)(a) and (b) may decline to receive per diem and expenses for their service.
             247          Section 7. Section 35A-3-206 is amended to read:
             248           35A-3-206. Expendable trust fund -- Use of monies -- Committee and director duties
             249      -- Restrictions.
             250          (1) There is created an expendable trust fund known as the Child Care Expendable Trust
             251      Fund.
             252          (2) The [executive] director shall administer the trust fund under the direction of the
             253      committee.
             254          (3) The [department] office shall be the trustee of the fund.
             255          (4) The trust fund shall be used to accept monies designated for child care initiatives
             256      improving the quality, affordability, or accessibility of child care.
             257          (5) The monies in the trust fund that are not restricted to a specific use under federal law
             258      or by donors may not be expended without approval of the committee.
             259          (6) There shall be deposited into the trust fund money from numerous sources including
             260      grants, private foundations, or individual donors.
             261          (7) The monies in the trust fund shall be invested by the state treasurer [pursuant to] under
             262      Title 51, Chapter 7, State Money Management Act, except that all interest or other earnings
             263      derived from the trust fund monies shall be deposited in the trust fund.
             264          (8) The monies in the trust fund may not be used for administrative expenses of the
             265      [department] office normally provided for by legislative appropriation.
             266          (9) The committee shall:
             267          (a) advise the director on child care needs in the state and on relevant operational aspects
             268      of any grant, loan, or revenue collection program established under this part;
             269          (b) recommend specific child care projects to the director;
             270          (c) recommend policy and procedures for administering the trust fund;
             271          (d) make recommendations on grants, loans, or contracts from the trust fund for any of the
             272      child care activities authorized under this part;
             273          (e) establish the criteria by which loans and grants will be made;

             274          (f) determine the order in which approved child care projects will be funded;
             275          (g) make recommendations regarding the distribution of money from the trust fund in
             276      accordance with the procedures, conditions, and restrictions placed upon the monies by the donors;
             277      and
             278          (h) have joint responsibility with the office to solicit public and private funding for the
             279      trust fund.
             280          (10) Trust fund monies [may] shall be used for [any of the following activities]:
             281          (a) training of child care providers;
             282          (b) scholarships and grants for child care providers' professional development;
             283          (c) child care public awareness and consumer education services;
             284          (d) child care provider recruitment;
             285          (e) Office of Child Care sponsored activities;
             286          (f) matching money for obtaining grants; or
             287          (g) other activities that will assist in the improvement of child care quality, affordability,
             288      or accessibility.
             289          (11) The [executive] director, with the consent of the committee and the executive
             290      director, may grant, lend, or contract trust fund money for child care purposes to:
             291          (a) local governments;
             292          (b) nonprofit community, charitable, or neighborhood-based organizations;
             293          (c) regional or statewide nonprofit organizations; or
             294          (d) child care providers.
             295          (12) Preference may be given but not limited to applicants for trust fund monies that
             296      demonstrate any of the following:
             297          (a) programatic or financial need;
             298          (b) diversity of clientele or geographic location; and
             299          (c) coordination with or enhancement of existing services.
             300          (13) The executive director or the executive director's designee shall monitor the activities
             301      of the recipients of grants, loans, or contracts issued from the trust fund on an annual basis to
             302      ensure compliance with the terms and conditions imposed on the recipient by the trust fund.
             303          (14) The entities receiving grants, loans, or contracts shall provide the [executive] director
             304      with an annual accounting of how the monies they received from the trust fund have been spent.

             305          (15) (a) The [executive] director shall make an annual report to the committee regarding
             306      the status of the trust fund and the programs and [the] services funded by the trust fund.
             307          (b) The report shall be included as a component of the report to the Legislature required
             308      under Subsection 35A-3-203 (12).

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