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7 LONG TITLE
8 General Description:
9 This bill enacts the Child Care Capacity Expansion Act.
10 Highlighted Provisions:
11 This bill:
12 ▸ defines terms;
13 ▸ creates the Child Care Capacity Expansion Act;
14 ▸ describes the purpose of the Child Care Capacity Expansion Act;
15 ▸ directs certain state departments to collaborate on implementing the Child Care
16 Capacity Expansion Act;
17 ▸ creates a restricted account; and
18 ▸ requires an annual report to legislative committees.
19 Money Appropriated in this Bill:
20 None
21 Other Special Clauses:
22 None
23 Utah Code Sections Affected:
24 ENACTS:
25 63N-22-101, Utah Code Annotated 1953
26 63N-22-102, Utah Code Annotated 1953
27 63N-22-103, Utah Code Annotated 1953
28 63N-22-104, Utah Code Annotated 1953
29 63N-22-105, Utah Code Annotated 1953
30 63N-22-106, Utah Code Annotated 1953
31 63N-22-107, Utah Code Annotated 1953
32 63N-22-201, Utah Code Annotated 1953
33 63N-22-202, Utah Code Annotated 1953
34 63N-22-203, Utah Code Annotated 1953
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36 Be it enacted by the Legislature of the state of Utah:
37 Section 1. Section 63N-22-101 is enacted to read:
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40 63N-22-101. Definitions.
41 As used in this chapter:
42 (1) "Capacity limit" means the same as that term is defined in Section 26B-2-401.
43 (2) "Center based child care" means the same as that term is defined in Section
44 26B-2-401.
45 (3) "Child care" means the same as that term is defined in Section 26B-2-401.
46 (4) "Child care program" means the same as that term is defined in Section 26B-2-401.
47 (5) "Community member" means an individual who:
48 (a) resides no more than 30 miles from an expanded child care opportunity facility;
49 (b) works at a location no more than 15 miles from an expanded child care opportunity
50 facility; or
51 (c) is a state employee.
52 (6) "Economically disadvantaged" means a child who is:
53 (a) experiencing intergenerational poverty;
54 (b) a member or foster child of a family with an annual income at or below 200%
55 federal poverty level; or
56 (c) living with a legal custodian or legal guardian who can attest that the child or the
57 child's household is receiving services benefiting low-income households or individuals.
58 (7) "Employer cooperative" means three or more private employers who have entered
59 into a formal agreement to share resources.
60 (8) "Employer sponsor" means a private, for-profit entity that leases an expanded child
61 care capacity facility.
62 (9) "Expanded child care opportunity facility" means a building:
63 (a) that is state-owned;
64 (b) that has been retrofitted to meet the licensing requirements for child care
65 established by the Department of Health and Human Services; and
66 (c) in which one or more licensed providers may operate a private child care business
67 pursuant to a contract with an employer sponsor.
68 (10) "Licensed child care provider" means a person who holds a license from the
69 Department of Health and Human Services to provide center based child care, whether in a
70 for-profit or non-profit model.
71 (11) "Program" means the employer-based, state assisted child care capacity expansion
72 program described in Section 63N-22-102.
73 (12) "Young child" means a child six years old or younger.
74 Section 2. Section 63N-22-102 is enacted to read:
75 63N-22-102. Employer-based, state-assisted child care capacity expansion
76 program created.
77 (1) There is created an employer-based, state-assisted child care capacity expansion program
78 as described in this chapter.
79 (2) The goal of the employer-based, state-assisted child care capacity expansion
80 program is to:
81 (a) expand the state's supply of high quality and affordable child care seats;
82 (b) support employers seeking to secure a reliable workforce;
83 (c) support the economic prospects of parents of young children in the workforce;
84 (d) promote economic growth; and
85 (e) utilize obsolete state property.
86 Section 3. Section 63N-22-103 is enacted to read:
87 63N-22-103. Retrofitting state-owned buildings for center based child care.
88 (1) The Division of Facilities Construction and Management and office shall partner
89 to:
90 (a) identify an obsolete state-owned building suitable for retrofitting as an expanded
91 child care opportunity facility;
92 (b) once an obsolete state-owned building is identified as suitable, establish a timeline
93 by which the building may be retrofitted to serve as an expanded child care opportunity facility;
94 (c) identify state-owned property suitable for a new building to serve as an expanded
95 child care opportunity facility;
96 (d) once state-owned property is identified as suitable, establish a timeline by which
97 the expanded child care opportunity facility may be built; and
98 (e) within available funds, ensure the retrofitting process or building process results in
99 an expanded child care opportunity facility that complies with licensing standards established
100 by the Department of Health and Human Services.
101 (2) The Division of Facilities Construction and Management shall be responsible for
102 ongoing maintenance of an expanded child care opportunity facility, as more fully detailed in a
103 lease between the Division of Facilities Construction and Management and an employer
104 sponsor described in Section 63N-22-104.
105 (3) Once an obsolete state-owned building has been successfully retrofitted to serve as
106 an expanded child care opportunity facility, or an expanded child care opportunity facility has
107 been built on state-owned property, the Department of Health and Human Services shall work
108 with the Division of Facilities Construction and Management and the office to determine:
109 (a) the expanded child care opportunity expansion facility's maximum capacity limit;
110 and
111 (b) if the expanded child care opportunity expansion facility is appropriate to house
112 more than one licensed child care program.
113 Section 4. Section 63N-22-104 is enacted to read:
114 63N-22-104. Leasing expanded child care opportunity facilities.
115 (1) The office shall:
116 (a) identify a potential employer sponsor to lease an expanded child care opportunity
117 facility; and
118 (b) recommend the Division of Facilities Construction and Management seek to enter
119 into a lease with a potential employer sponsor at an expanded child care opportunity facility at
120 no more than 80% of the market rate and no less than 50% based on the study described in
121 Subsection (3).
122 (2) If the office identifies more potential employer sponsors than there are available
123 leasing opportunities, the office shall prioritize recommendations that the Division of Facilities
124 Construction and Management enter into leases with employer sponsors that self-report:
125 (a) (i) having 50 or more employees; or
126 (ii) being part of an employer cooperative agreement; and
127 (b) having 25% or more of the employer sponsor's workforce made up of parents of
128 young children.
129 (3) (a) The Division of Facilities Construction and Management shall conduct a market
130 analysis to determine appropriate leasing rates for an expanded child care opportunity facility.
131 (b) The Division of Facilities Construction and Management may enter into a lease
132 with an employer sponsor as described in this section.
133 (4) A lease authorized by this section shall, at a minimum, require:
134 (a) the employer sponsor utilize the leased space only for child care purposes;
135 (b) the employer sponsor to contract with a licensed provider to operate the center
136 based child care at the leased space, as described in Section 63N-22-105;
137 (c) the employer sponsor to maintain general liability and workers compensation
138 insurance in minimum amounts established by the Division of Facilities Construction and
139 Management by rule;
140 (d) the employer sponsor to require a contracted licensed provider to maintain general
141 liability and workers' compensation in minimum amounts established by the Division of
142 Facilities Construction and Management by rule;
143 (e) that the employer sponsor reserve no more than 60% of capacity limit of the leased
144 space for the children of employer sponsor employees and no less than 40% of capacity limit of
145 the leased space for the children of community members;
146 (f) automatic relinquishment of the leased space in the event the employer sponsor fails
147 to maintain a licensed provider operating in the leased space, as described in Section
148 63N-22-105, for a time period of more than 90 consecutive calendar days; and
149 (g) an employer sponsor that relinquishes leased space under Subsection (3)(f) to be
150 responsible for all rent payments up until the date of relinquishment.
151 (5) The Division of Facilities Construction and Management shall deposit lease
152 payments from an employer sponsor into the Employer-based, State-assisted Care Capacity
153 Expansion Program Restricted Account created in Section 63N-22-201.
154 (6) Subject to appropriations from the Legislature, the office may offer an incentive to
155 an employer sponsor that:
156 (a) offsets the cost of monthly rent of the expanded child care opportunity facility; and
157 (b) provides additional subsidies that may be offered by the employer sponsor to an
158 employer sponsor employee to allow the employer sponsor employee to take advantage of seats
159 in a licensed provider's program at the expanded child care opportunity facility.
160 (7) The Division of Facilities Construction and Management and the office shall make
161 rules, in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, to
162 implement the provisions of this section.
163 Section 5. Section 63N-22-105 is enacted to read:
164 63N-22-105. Contracts with licensed providers -- Expectations of licensed
165 providers.
166 (1) No later than 60 days after the day on which a lease between an employer sponsor
167 and the Division of Facilities Construction and Management takes effect, the employer sponsor
168 shall enter into a contract with a licensed provider for the licensed provider to operate a center
169 based child care facility in the leased space.
170 (2) (a) The Division of Facilities Construction and Management, in consultation with
171 the office, shall establish a contract template to be used between an employer sponsor and
172 licensed provider.
173 (b) The employer sponsor and licensed provider may modify the template described in
174 Subsection (2)(a) to meet specific needs, subject to the requirements of this section.
175 (3) The contract between the employer sponsor and licensed provider shall establish, at
176 a minimum:
177 (a) the amount of tuition reduction for an employer sponsor employee, broken down by
178 age of child receiving care;
179 (b) the number of overall spots set aside for employer sponsor employees;
180 (c) the expected hours of operation of the licensed provider;
181 (d) the insurance amounts that the licensed provider is required to maintain while
182 conducting business in accordance with the contract;
183 (e) that the employer sponsor is providing the space and related utilities at the
184 expanded child care opportunity facility free-of-charge to the licensed provider, to facilitate the
185 licensed provider offering high quality child care to employees of the employer sponsor and
186 community members;
187 (f) that a licensed provider at an expanded child care opportunity facility shall:
188 (i) no later than one year after the date the contract described in this section is effective,
189 earn a rating of "building quality," "high quality," or "high quality plus" from the Department
190 of Workforce Services, as described by Department of Workforce Services rule, and thereafter
191 maintain that rating or better;
192 (ii) accept community member families who receive child care subsidy from the
193 Department of Workforce Services, if space is available; and
194 (iii) maintain at least one infant room and one toddler room at the expanded child care
195 opportunity facility; and
196 (g) that in the event the licensed provider has its license suspended or revoked by the
197 Department of Health and Human Services, the contract shall be immediately terminated.
198 (4) The contracted licensed provider shall be responsible for collecting tuition,
199 complying with licensing requirements, managing and compensating the licensed provider's
200 employees, managing any potential waitlist of families hoping to secure a spot at the program,
201 and all other child care provider business activities.
202 (5) The employer sponsor may not pass along any facility costs, whether rent or cost of
203 utilities, to the licensed provider.
204 (6) The contracted license provider shall use the rent and utility cost-savings provided
205 to the child care program to build quality care and better serve young children and their
206 families, including:
207 (a) retaining and recruiting experienced and qualified staff members, either through
208 compensation, benefits, or a combination of compensation and benefits; and
209 (b) offering nontraditional hours, including evening care or weekend care, if
210 appropriate.
211 (7) The contracted licensed provider may not charge a community member tuition in
212 excess of what the licensed provider charges at other child care programs that the licensed
213 provider operates within a 50 mile radius of the expanded child care opportunity facility.
214 Section 6. Section 63N-22-106 is enacted to read:
215 63N-22-106. Promotion of the employer-based, state-assisted child care capacity
216 expansion program.
217 (1) The office shall promote the program created in this chapter to the business
218 community.
219 (2) The Department of Workforce Services shall promote the program created in this
220 chapter to licensed child care providers, with particular outreach to licensed child care
221 providers that have been rated "building quality," "high quality," or "high quality plus" by the
222 Department of Workforce Services.
223 (3) Beginning January 1, 2025, the Department of Health and Human Services and the
224 Department of Workforce Services shall collaborate to provide a list of high quality center
225 based child care providers in the geographic region of an expanded child care opportunity
226 facility to the Division of Facilities Construction and Management on a quarterly basis.
227 (4) The Division of Facilities Construction and Management shall provide the list
228 described in Subsection (3) upon request to an employer sponsor seeking a licensed provider
229 with whom the employer sponsor may contract, as described in Section 63N-22-105.
230 Section 7. Section 63N-22-107 is enacted to read:
231 63N-22-107. Limitation on liability.
232 (1) Nothing in this chapter creates an employer-employee relationship between the
233 state or any department of the state and an employer sponsor or a licensed provider.
234 (2) The state is not liable for any civil damages for acts or omissions resulting from the
235 operations of an expanded child care opportunity facility.
236 Section 8. Section 63N-22-201 is enacted to read:
237
238 63N-22-201. Creation of Employer-based, State-assisted Child Care Capacity
239 Expansion Program Restricted Account -- Uses.
240 (1) There is created a restricted account within the General Fund known as the
241 Employer-based, State-assisted Child Care Capacity Expansion Program Restricted Account.
242 (2) The account consists of:
243 (a) money deposited into the account, as required by Section 63N-22-104; and
244 (b) appropriations made by the Legislature.
245 (3) The Legislature may annually appropriate money from the Employer-based,
246 State-assisted Child Care Capacity Expansion Program Restricted Account to fund incentives,
247 as described in Subsection 63N-22-104(6).
248 Section 9. Section 63N-22-202 is enacted to read:
249 63N-22-202. Stakeholder engagement -- Outreach to political subdivisions.
250 (1) The office shall seek to solicit feedback and evaluate the program created in this
251 chapter:
252 (a) by August 31, 2024; and
253 (b) on an annual basis.
254 (2) As part of soliciting feedback and evaluating the program, the office shall engage,
255 at a minimum:
256 (a) a child care advocacy or early childhood advocacy group;
257 (b) an association representing the interests of licensed child care providers; and
258 (c) an association promoting economic development in the state.
259 (3) The office shall engage in outreach to political subdivisions that may have obsolete,
260 publicly owned property appropriate for retrofitting as an expanded child care opportunity
261 facility.
262 Section 10. Section 63N-22-203 is enacted to read:
263 63N-22-203. Report.
264 (1) The office shall provide, by October 1 of each year, a report to the Economic
265 Development and Workforce Services Interim Committee, the Health and Human Services
266 Interim Committee, and the Government Operations Interim Committee on the following:
267 (a) the progress and status of identifying obsolete state buildings for potential
268 retrofitting;
269 (b) the progress and status of retrofitting state buildings into expanded child care
270 opportunity facilities;
271 (c) the number of leases with employer sponsors;
272 (d) the amount of money from lease payments deposited into the Employer-based,
273 State-assisted Child Care Capacity Expansion Program Restricted Account created in Section
274 63N-22-201;
275 (e) the number of children and families served at expanded child care opportunity
276 facilities;
277 (f) the number of child care spots created by the program established in this chapter;
278 (g) the demand in the business community, if any, to participate in the program;
279 (h) the demand by political subdivisions, if any, to participate in the program or create
280 a similar program;
281 (i) the projected economic growth created by the program; and
282 (j) the program's progress at achieving the goals described in Section 63N-22-102.
283 (2) In addition to the report described in Subsection (1), beginning January 1, 2025, the
284 office shall report on:
285 (a) a proposed plan to implement a sliding fee scale to allow economically
286 disadvantaged children living with community member families to secure child care through
287 the program while ensuring the continued economic viability of contracted licensed providers;
288 and
289 (b) any recommended funding mechanisms to implement the sliding fee scale
290 described in Subsection (2)(a).
291 (3) The Division of Facilities Construction and Management, Department of
292 Workforce Services, and Department of Health and Human Services shall assist the office in
293 the creation of the reports described in Subsections (1) and (2).
294 Section 11. Effective date.
295 This bill takes effect on May 1, 2024.