Senate File 434 - Introduced SENATE FILE 434 BY WINCKLER , CELSI , ZIMMER , TOWNSEND , STAED , PETERSEN , QUIRMBACH , DOTZLER , DONAHUE , BLAKE , WAHLS , TRONE GARRIOTT , and BISIGNANO A BILL FOR An Act relating to the creation of a child care solutions fund, 1 and making an appropriation. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 1789XS (6) 91 dg/ko

S.F. 434 Section 1. NEW SECTION . 237A.15 Child care solutions fund. 1 1. For purposes of this section: 2 a. “Child care worker” means a person employed by a child 3 care provider and whose primary duties involve the provision of 4 child care to children in this state. 5 b. “Community” means a geographic area designated by the 6 department under subsection 4. 7 c. “Fund” means the child care solutions fund created under 8 subsection 2. 9 2. A child care solutions fund is created within the state 10 treasury under the control of the department. The fund shall 11 consist of all of the following: 12 a. Moneys appropriated by the general assembly for the 13 purposes of this section. 14 b. Interest attributable to the investment of moneys in the 15 fund. 16 c. Moneys from gifts, devises, donations, and grants that 17 are intended to be used for the purposes of this section. 18 3. Moneys in the fund are appropriated to the department 19 for distribution to communities. Distributions shall provide 20 a state match of two dollars for every one dollar of private 21 investment a community obtains for the purpose of increasing 22 the wages of child care workers within the community. 23 4. a. The department shall establish eligibility 24 requirements for a geographic area to qualify for designation 25 as a community, and requirements for a geographic area to 26 maintain the community designation. 27 b. The department shall continue to designate communities 28 until the entire geographic area of the state is within a 29 community. 30 5. On or before January 1 of each year, the department shall 31 submit a report to the general assembly detailing all of the 32 following for the immediately preceding fiscal year: 33 a. The amount each community received from the fund. 34 b. The amount each community spent from the moneys the 35 -1- LSB 1789XS (6) 91 dg/ko 1/ 4

S.F. 434 community received from the fund, including the amount spent 1 on increasing the wages of child care workers within the 2 community, and the amount spent on administrative costs. 3 c. The number of child care providers that each community 4 supported with moneys from the fund. 5 d. The number of existing child care workers retained by 6 child care providers within each community as a result of 7 moneys the community received from the fund. 8 e. The number of new child care workers hired by child 9 care providers within each community as a result of moneys the 10 community received from the fund. 11 f. The number of additional child care slots created within 12 each community as a result of child care workers described 13 under paragraphs “d” and “e” . 14 g. The number of private entities that contributed private 15 investment for state match under this section. 16 h. The number of private entities that pledged to contribute 17 private investment for state match under this section in the 18 immediately succeeding fiscal year. 19 6. The department shall adopt rules pursuant to chapter 17A 20 to administer this section. 21 Sec. 2. DEPARTMENT OF HEALTH AND HUMAN SERVICES —— CHILD 22 CARE WAGE ENHANCEMENT PROJECT CONTINUATION. The department of 23 health and human services shall use the moneys in the child 24 care solutions fund created in section 237A.15 to continue to 25 provide state matching moneys to communities that received 26 funds due to the community’s participation in the department’s 27 child care wage enhancement project during the fiscal year 28 beginning July 1, 2024, and ending June 30, 2025. 29 Sec. 3. DEPARTMENT OF HEALTH AND HUMAN SERVICES —— CHILD 30 CARE SOLUTIONS FUND. There is appropriated from the general 31 fund of the state to the department of health and human 32 services for the fiscal year beginning July 1, 2025, and ending 33 June 30, 2026, the following amount, or so much thereof as is 34 necessary, to be used for the purposes designated: 35 -2- LSB 1789XS (6) 91 dg/ko 2/ 4

S.F. 434 For deposit in the child care solutions fund created in 1 section 237A.15: 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 6,000,000 3 EXPLANATION 4 The inclusion of this explanation does not constitute agreement with 5 the explanation’s substance by the members of the general assembly. 6 This bill relates to the creation of a child care solutions 7 fund (fund) under the control of the department of health and 8 human services (HHS). 9 The bill defines “child care worker” as a person employed 10 by a child care provider and whose primary duties involve the 11 provision of child care to children in this state. 12 The bill defines “community” as a geographic area designated 13 by HHS. The bill also defines “fund”. 14 The fund consists of moneys appropriated by the general 15 assembly for the purposes detailed in the bill; interest 16 attributable to the investment of moneys in the fund; and 17 moneys from gifts, devises, donations, and grants that are 18 intended to be used for the fund’s purposes. Moneys in the 19 fund are appropriated to HHS for distributions to communities. 20 Distributions must be used to provide a state match of $2 for 21 every $1 of private investment a community obtains to increase 22 the wages of child care workers. 23 The bill requires HHS to establish eligibility requirements 24 for a geographic area to be designated as a community, and for 25 the geographic area to maintain the community designation. 26 HHS must continue to designate communities until the entire 27 geographic area of the state is within a community. 28 The bill requires HHS, on or before January 1 of each 29 year, to submit a report, as detailed in the bill, for the 30 immediately preceding fiscal year to the general assembly 31 relating to the fund, and the impact on communities who 32 received money from the fund. 33 The bill requires HHS to adopt rules to administer the fund. 34 The bill requires HHS to use the moneys in the fund to 35 -3- LSB 1789XS (6) 91 dg/ko 3/ 4

S.F. 434 continue to provide state matching moneys to communities that 1 received funds due to the community’s participation in HHS’s 2 child care wage enhancement project during FY 2024-2025. 3 The bill appropriates $6 million to HHS for FY 2025-2026 for 4 deposit in the fund. 5 -4- LSB 1789XS (6) 91 dg/ko 4/ 4