SF 434 (LSB 1789XS (6) 91)

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, and making an appropriation.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  NEW SECTION.  237A.15  Child care solutions fund.
   1.  For purposes of this section:
   a.  “Child care worker” means a person employed by a child care provider and whose primary duties involve the provision of child care to children in this state.
   b.  “Community” means a geographic area designated by the department under subsection 4.
   c.  “Fund” means the child care solutions fund created under subsection 2.
   2.  A child care solutions fund is created within the state treasury under the control of the department. The fund shall consist of all of the following:
   a.  Moneys appropriated by the general assembly for the purposes of this section.
   b.  Interest attributable to the investment of moneys in the fund.
   c.  Moneys from gifts, devises, donations, and grants that are intended to be used for the purposes of this section.
   3.  Moneys in the fund are appropriated to the department for distribution to communities. Distributions shall provide a state match of two dollars for every one dollar of private investment a community obtains for the purpose of increasing the wages of child care workers within the community.
   4.  a.  The department shall establish eligibility requirements for a geographic area to qualify for designation as a community, and requirements for a geographic area to maintain the community designation.
   b.  The department shall continue to designate communities until the entire geographic area of the state is within a community.
   5.  On or before January 1 of each year, the department shall submit a report to the general assembly detailing all of the following for the immediately preceding fiscal year:
   a.  The amount each community received from the fund.
   b.  The amount each community spent from the moneys the community received from the fund, including the amount spent on increasing the wages of child care workers within the community, and the amount spent on administrative costs.
   c.  The number of child care providers that each community supported with moneys from the fund.
   d.  The number of existing child care workers retained by child care providers within each community as a result of moneys the community received from the fund.
   e.  The number of new child care workers hired by child care providers within each community as a result of moneys the community received from the fund.
   f.  The number of additional child care slots created within each community as a result of child care workers described under paragraphs “d” and “e”.
   g.  The number of private entities that contributed private investment for state match under this section.
   h.  The number of private entities that pledged to contribute private investment for state match under this section in the immediately succeeding fiscal year.
   6.  The department shall adopt rules pursuant to chapter 17A to administer this section.
    Sec. 2.  DEPARTMENT OF HEALTH AND HUMAN SERVICES —— CHILD CARE WAGE ENHANCEMENT PROJECT CONTINUATION.  The department of health and human services shall use the moneys in the child care solutions fund created in section 237A.15 to continue to provide state matching moneys to communities that received funds due to the community’s participation in the department’s child care wage enhancement project during the fiscal year beginning July 1, 2024, and ending June 30, 2025.
    Sec. 3.  DEPARTMENT OF HEALTH AND HUMAN SERVICES —— CHILD CARE SOLUTIONS FUND.  There is appropriated from the general fund of the state to the department of health and human services for the fiscal year beginning July 1, 2025, and ending June 30, 2026, the following amount, or so much thereof as is necessary, to be used for the purposes designated:
   For deposit in the child care solutions fund created in section 237A.15:
   ...................................................................... $  6,000,000
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill relates to the creation of a child care solutions fund (fund) under the control of the department of health and human services (HHS).
   The bill defines “child care worker” as a person employed by a child care provider and whose primary duties involve the provision of child care to children in this state.
   The bill defines “community” as a geographic area designated by HHS. The bill also defines “fund”.
   The fund consists of moneys appropriated by the general assembly for the purposes detailed in the bill; interest attributable to the investment of moneys in the fund; and moneys from gifts, devises, donations, and grants that are intended to be used for the fund’s purposes. Moneys in the fund are appropriated to HHS for distributions to communities. Distributions must be used to provide a state match of $2 for every $1 of private investment a community obtains to increase the wages of child care workers.
   The bill requires HHS to establish eligibility requirements for a geographic area to be designated as a community, and for the geographic area to maintain the community designation. HHS must continue to designate communities until the entire geographic area of the state is within a community.
   The bill requires HHS, on or before January 1 of each year, to submit a report, as detailed in the bill, for the immediately preceding fiscal year to the general assembly relating to the fund, and the impact on communities who received money from the fund.
   The bill requires HHS to adopt rules to administer the fund.
   The bill requires HHS to use the moneys in the fund to continue to provide state matching moneys to communities that received funds due to the community’s participation in HHS’s child care wage enhancement project during FY 2024-2025.
   The bill appropriates $6 million to HHS for FY 2025-2026 for deposit in the fund.