Rep. Norm Thurston — Voting Record

Bill

Number

S.B. 176 First Substitute (2024GS)

Sponsor

Sen. Escamilla, L.

Final action

Senate/ filed 3/1/2024

Outcome

Failed / filed without passage

Summary

What it does

• This bill:
• defines terms;
• creates the Child Care Capacity Expansion Act;
• describes the purpose of the Child Care Capacity Expansion Act;
• directs certain state departments to collaborate on implementing the Child Care Capacity Expansion Act;
• creates a restricted account; and
• requires an annual report to legislative committees.

Every vote on this bill

Bill text

CHILD CARE SERVICES AMENDMENTS
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Luz Escamilla
House Sponsor: 
 Robert M. Spendlove
LONG TITLE
General Description:
This bill enacts the Child Care Capacity Expansion Act.
Highlighted Provisions:
This bill:
▸ defines terms;
▸ creates the Child Care Capacity Expansion Act;
▸ describes the purpose of the Child Care Capacity Expansion Act;
▸ directs certain state departments to collaborate on implementing the Child Care
Capacity Expansion Act;
▸ creates a restricted account; and
▸ requires an annual report to legislative committees.
Money Appropriated in this Bill:
None
Other Special Clauses:
None
Utah Code Sections Affected:
ENACTS:
63N-22-101
, Utah Code Annotated 1953
63N-22-102
, Utah Code Annotated 1953
63N-22-103
, Utah Code Annotated 1953
63N-22-104
, Utah Code Annotated 1953
63N-22-105
, Utah Code Annotated 1953
63N-22-106
, Utah Code Annotated 1953
63N-22-107
, Utah Code Annotated 1953
63N-22-201
, Utah Code Annotated 1953
63N-22-202
, Utah Code Annotated 1953
63N-22-203
, Utah Code Annotated 1953
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
63N-22-101
 is enacted to read:
CHAPTER 22. CHILD CARE CAPACITY EXPANSION ACT
Part 1. Employer-based, State-assisted Child Care Capacity Expansion Program
 63N-22-101.
Definitions.
As used in this chapter:
(1) "Capacity limit" means the same as that term is defined in Section 
26B-2-401
.
(2) "Center based child care" means the same as that term is defined in Section
26B-2-401
.
(3) "Child care" means the same as that term is defined in Section 
26B-2-401
.
(4) "Child care program" means the same as that term is defined in Section 
26B-2-401
.
(5) "Community member" means an individual who:
(a) resides no more than 30 miles from an expanded child care opportunity facility;
(b) works at a location no more than 15 miles from an expanded child care opportunity
facility; or
(c) is a state employee.
(6) "Economically disadvantaged" means a child who is:
(a) experiencing intergenerational poverty;
(b) a member or foster child of a family with an annual income at or below 200%
federal poverty level; or
(c) living with a legal custodian or legal guardian who can attest that the child or the
child's household is receiving services benefiting low-income households or individuals.
(7) "Employer cooperative" means three or more private employers who have entered
into a formal agreement to share resources.
(8) "Employer sponsor" means a private, for-profit entity that leases an expanded child
care capacity facility.
(9) "Expanded child care opportunity facility" means a building:
(a) that is state-owned;
(b) that has been retrofitted to meet the licensing requirements for child care
established by the Department of Health and Human Services; and
(c) in which one or more licensed providers may operate a private child care business
pursuant to a contract with an employer sponsor.
(10) "Licensed child care provider" means a person who holds a license from the
Department of Health and Human Services to provide center based child care, whether in a
for-profit or non-profit model.
(11) "Program" means the employer-based, state assisted child care capacity expansion
program described in Section 
63N-22-102
.
(12) "Young child" means a child six years old or younger.
Section 2. Section 
63N-22-102
 is enacted to read:
 63N-22-102.
Employer-based, state-assisted child care capacity expansion
program created.
(1) There is created an employer-based, state-assisted child care capacity expansion program
as described in this chapter.
(2) The goal of the employer-based, state-assisted child care capacity expansion
program is to:
(a) expand the state's supply of high quality and affordable child care seats;
(b) support employers seeking to secure a reliable workforce;
(c) support the economic prospects of parents of young children in the workforce;
(d) promote economic growth; and
(e) utilize obsolete state property.
Section 3. Section 
63N-22-103
 is enacted to read:
 63N-22-103.
Retrofitting state-owned buildings for center based child care.
(1) The Division of Facilities Construction and Management and office shall partner
to:
(a) identify an obsolete state-owned building suitable for retrofitting as an expanded
child care opportunity facility;
(b) once an obsolete state-owned building is identified as suitable, establish a timeline
by which the building may be retrofitted to serve as an expanded child care opportunity facility;
(c) identify state-owned property suitable for a new building to serve as an expanded
child care opportunity facility;
(d) once state-owned property is identified as suitable, establish a timeline by which
the expanded child care opportunity facility may be built; and
(e) within available funds, ensure the retrofitting process or building process results in
an expanded child care opportunity facility that complies with licensing standards established
by the Department of Health and Human Services.
(2) The Division of Facilities Construction and Management shall be responsible for
ongoing maintenance of an expanded child care opportunity facility, as more fully detailed in a
lease between the Division of Facilities Construction and Management and an employer
sponsor described in Section 
63N-22-104
.
(3) Once an obsolete state-owned building has been successfully retrofitted to serve as
an expanded child care opportunity facility, or an expanded child care opportunity facility has
been built on state-owned property, the Department of Health and Human Services shall work
with the Division of Facilities Construction and Management and the office to determine:
(a) the expanded child care opportunity expansion facility's maximum capacity limit;
and
(b) if the expanded child care opportunity expansion facility is appropriate to house
more than one licensed child care program.
Section 4. Section 
63N-22-104
 is enacted to read:
 63N-22-104.
Leasing expanded child care opportunity facilities.
(1) The office shall:
(a) identify a potential employer sponsor to lease an expanded child care opportunity
facility; and
(b) recommend the Division of Facilities Construction and Management seek to enter
into a lease with a potential employer sponsor at an expanded child care opportunity facility at
no more than 80% of the market rate and no less than 50% based on the study described in
Subsection (3).
(2) If the office identifies more potential employer sponsors than there are available
leasing opportunities, the office shall prioritize recommendations that the Division of Facilities
Construction and Management enter into leases with employer sponsors that self-report:
(a) (i) having 50 or more employees; or
(ii) being part of an employer cooperative agreement; and
(b) having 25% or more of the employer sponsor's workforce made up of parents of
young children.
(3) (a) The Division of Facilities Construction and Management shall conduct a market
analysis to determine appropriate leasing rates for an expanded child care opportunity facility.
(b) The Division of Facilities Construction and Management may enter into a lease
with an employer sponsor as described in this section.
(4) A lease authorized by this section shall, at a minimum, require:
(a) the employer sponsor utilize the leased space only for child care purposes;
(b) the employer sponsor to contract with a licensed provider to operate the center
based child care at the leased space, as described in Section 
63N-22-105
;
(c) the employer sponsor to maintain general liability and workers compensation
insurance in minimum amounts established by the Division of Facilities Construction and
Management by rule;
(d) the employer sponsor to require a contracted licensed provider to maintain general
liability and workers' compensation in minimum amounts established by the Division of
Facilities Construction and Management by rule;
(e) that the employer sponsor reserve no more than 60% of capacity limit of the leased
space for the children of employer sponsor employees and no less than 40% of capacity limit of
the leased space for the children of community members;
(f) automatic relinquishment of the leased space in the event the employer sponsor fails
to maintain a licensed provider operating in the leased space, as described in Section
63N-22-105
, for a time period of more than 90 consecutive calendar days; and
(g) an employer sponsor that relinquishes leased space under Subsection (3)(f) to be
responsible for all rent payments up until the date of relinquishment.
(5) The Division of Facilities Construction and Management shall deposit lease
payments from an employer sponsor into the Employer-based, State-assisted Care Capacity
Expansion Program Restricted Account created in Section 
63N-22-201
.
(6) Subject to appropriations from the Legislature, the office may offer an incentive to
an employer sponsor that:
(a) offsets the cost of monthly rent of the expanded child care opportunity facility; and
(b) provides additional subsidies that may be offered by the employer sponsor to an
employer sponsor employee to allow the employer sponsor employee to take advantage of seats
in a licensed provider's program at the expanded child care opportunity facility.
(7) The Division of Facilities Construction and Management and the office shall make
rules, in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, to
implement the provisions of this section.
Section 5. Section 
63N-22-105
 is enacted to read:
 63N-22-105.
Contracts with licensed providers -- Expectations of licensed
providers.
(1) No later than 60 days after the day on which a lease between an employer sponsor
and the Division of Facilities Construction and Management takes effect, the employer sponsor
shall enter into a contract with a licensed provider for the licensed provider to operate a center
based child care facility in the leased space.
(2) (a) The Division of Facilities Construction and Management, in consultation with
the office, shall establish a contract template to be used between an employer sponsor and
licensed provider.
(b) The employer sponsor and licensed provider may modify the template described in
Subsection (2)(a) to meet specific needs, subject to the requirements of this section.
(3) The contract between the employer sponsor and licensed provider shall establish, at
a minimum:
(a) the amount of tuition reduction for an employer sponsor employee, broken down by
age of child receiving care;
(b) the number of overall spots set aside for employer sponsor employees;
(c) the expected hours of operation of the licensed provider;
(d) the insurance amounts that the licensed provider is required to maintain while
conducting business in accordance with the contract;
(e) that the employer sponsor is providing the space and related utilities at the
expanded child care opportunity facility free-of-charge to the licensed provider, to facilitate the
licensed provider offering high quality child care to employees of the employer sponsor and
community members;
(f) that a licensed provider at an expanded child care opportunity facility shall:
(i) no later than one year after the date the contract described in this section is effective,
earn a rating of "building quality," "high quality," or "high quality plus" from the Department
of Workforce Services, as described by Department of Workforce Services rule, and thereafter
maintain that rating or better;
(ii) accept community member families who receive child care subsidy from the
Department of Workforce Services, if space is available; and
(iii) maintain at least one infant room and one toddler room at the expanded child care
opportunity facility; and
(g) that in the event the licensed provider has its license suspended or revoked by the
Department of Health and Human Services, the contract shall be immediately terminated.
(4) The contracted licensed provider shall be responsible for collecting tuition,
complying with licensing requirements, managing and compensating the licensed provider's
employees, managing any potential waitlist of families hoping to secure a spot at the program,
and all other child care provider business activities.
(5) The employer sponsor may not pass along any facility costs, whether rent or cost of
utilities, to the licensed provider.
(6) The contracted license provider shall use the rent and utility cost-savings provided
to the child care program to build quality care and better serve young children and their
families, including:
(a) retaining and recruiting experienced and qualified staff members, either through
compensation, benefits, or a combination of compensation and benefits; and
(b) offering nontraditional hours, including evening care or weekend care, if
appropriate.
(7) The contracted licensed provider may not charge a community member tuition in
excess of what the licensed provider charges at other child care programs that the licensed
provider operates within a 50 mile radius of the expanded child care opportunity facility.
Section 6. Section 
63N-22-106
 is enacted to read:
 63N-22-106.
Promotion of the employer-based, state-assisted child care capacity
expansion program.
(1) The office shall promote the program created in this chapter to the business
community.
(2) The Department of Workforce Services shall promote the program created in this
chapter to licensed child care providers, with particular outreach to licensed child care
providers that have been rated "building quality," "high quality," or "high quality plus" by the
Department of Workforce Services.
(3) Beginning January 1, 2025, the Department of Health and Human Services and the
Department of Workforce Services shall collaborate to provide a list of high quality center
based child care providers in the geographic region of an expanded child care opportunity
facility to the Division of Facilities Construction and Management on a quarterly basis.
(4) The Division of Facilities Construction and Management shall provide the list
described in Subsection (3) upon request to an employer sponsor seeking a licensed provider
with whom the employer sponsor may contract, as described in Section 
63N-22-105
.
Section 7. Section 
63N-22-107
 is enacted to read:
 63N-22-107.
Limitation on liability.
(1) Nothing in this chapter creates an employer-employee relationship between the
state or any department of the state and an employer sponsor or a licensed provider.
(2) The state is not liable for any civil damages for acts or omissions resulting from the
operations of an expanded child care opportunity facility.
Section 8. Section 
63N-22-201
 is enacted to read:
Part 2. Funding and Reporting
 63N-22-201.
Creation of Employer-based, State-assisted Child Care Capacity
Expansion Program Restricted Account -- Uses.
(1) There is created a restricted account within the General Fund known as the
Employer-based, State-assisted Child Care Capacity Expansion Program Restricted Account.
(2) The account consists of:
(a) money deposited into the account, as required by Section 
63N-22-104
; and
(b) appropriations made by the Legislature.
(3) The Legislature may annually appropriate money from the Employer-based,
State-assisted Child Care Capacity Expansion Program Restricted Account to fund incentives,
as described in Subsection 
63N-22-104
(6).
Section 9. Section 
63N-22-202
 is enacted to read:
 63N-22-202.
Stakeholder engagement -- Outreach to political subdivisions.
(1) The office shall seek to solicit feedback and evaluate the program created in this
chapter:
(a) by August 31, 2024; and
(b) on an annual basis.
(2) As part of soliciting feedback and evaluating the program, the office shall engage,
at a minimum:
(a) a child care advocacy or early childhood advocacy group;
(b) an association representing the interests of licensed child care providers; and
(c) an association promoting economic development in the state.
(3) The office shall engage in outreach to political subdivisions that may have obsolete,
publicly owned property appropriate for retrofitting as an expanded child care opportunity
facility.
Section 10. Section 
63N-22-203
 is enacted to read:
 63N-22-203.
Report.
(1) The office shall provide, by October 1 of each year, a report to the Economic
Development and Workforce Services Interim Committee, the Health and Human Services
Interim Committee, and the Government Operations Interim Committee on the following:
(a) the progress and status of identifying obsolete state buildings for potential
retrofitting;
(b) the progress and status of retrofitting state buildings into expanded child care
opportunity facilities;
(c) the number of leases with employer sponsors;
(d) the amount of money from lease payments deposited into the Employer-based,
State-assisted Child Care Capacity Expansion Program Restricted Account created in Section
63N-22-201
;
(e) the number of children and families served at expanded child care opportunity
facilities;
(f) the number of child care spots created by the program established in this chapter;
(g) the demand in the business community, if any, to participate in the program;
(h) the demand by political subdivisions, if any, to participate in the program or create
a similar program;
(i) the projected economic growth created by the program; and
(j) the program's progress at achieving the goals described in Section 
63N-22-102
.
(2) In addition to the report described in Subsection (1), beginning January 1, 2025, the
office shall report on:
(a) a proposed plan to implement a sliding fee scale to allow economically
disadvantaged children living with community member families to secure child care through
the program while ensuring the continued economic viability of contracted licensed providers;
and
(b) any recommended funding mechanisms to implement the sliding fee scale
described in Subsection (2)(a).
(3) The Division of Facilities Construction and Management, Department of
Workforce Services, and Department of Health and Human Services shall assist the office in
the creation of the reports described in Subsections (1) and (2).
Section 11. 
Effective date.
This bill takes effect on May 1, 2024.