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House File 13 - IntroducedA Bill ForAn Act 1establishing a child care future zones program and fund
2within the economic development authority to award financial
3assistance to eligible persons involved in child care.
4BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. NEW SECTION. 15.371 Child care future zones
2program and fund.
31. As used in this section, unless the context otherwise
4requires:
5a. “Child care future zone” means any census tract in this
6state with more than fifty children under the age of five that
7contains either no child care providers or so few child care
8providers that there are more than three times as many children
9under the age of five as there are spaces available at the
10existing child care providers.
11b. “Financial assistance” means assistance provided only
12from the funds, rights, and assets legally available to the
13authority and includes but is not limited to assistance in the
14form of tax incentives, tuition reimbursement, low-interest
15loans, and grants.
16c. “Fund” means the child care future zones fund.
17d. “Program” means the child care future zones program.
182. a. A child care future zones fund is created in
19the state treasury under the control of the authority and
20consists of any moneys appropriated by the general assembly
21and any other moneys available and obtained or accepted by
22the authority for placement in the fund. The fund shall be
23used to provide financial assistance to eligible persons under
24the program. The authority shall use any moneys specifically
25appropriated for purposes of this section only for the purposes
26of this section.
27b. Notwithstanding section 8.33, moneys in the fund at the
28end of each fiscal year shall not revert to any other fund
29but shall remain in the fund for expenditures for subsequent
30fiscal years. Notwithstanding section 12C.7, subsection 2,
31interest or earnings on moneys in the fund shall accrue to the
32authority and shall be used for purposes of this section. All
33repayments, payments of interest, or recaptures of financial
34assistance provided under this section shall accrue to the
35authority and shall be used for purposes of this section.
-1- 1c. The authority shall use not more than five percent of
2the moneys in the fund at the beginning of the fiscal year for
3purposes of administrative costs, marketing, and other program
4support.
53. The authority shall establish and administer a child
6care future zones program to provide financial assistance to
7eligible persons who own, or work in, a child care-related
8business in a child care future zone; or who are enrolled in an
9early childhood development degree program and currently work
10in, or have committed to work in, a child care future zone.
114. A person seeking financial assistance under this section
12shall apply to the authority pursuant to rules adopted by the
13authority.
145. The authority, in consultation with the department of
15human services, shall adopt rules pursuant to chapter 17A to
16implement and administer this section. The rules shall, at a
17minimum, provide for all of the following:
18a. The identification and designation of child care future
19zones.
20b. The requirements for a person to be eligible for the
21program.
22c. The requirements for a person to be eligible for specific
23financial assistance including all of the following:
24(1) A five-year property tax exemption.
25(2) A five-year sales tax exemption.
26(3) A five-year income tax liability exemption.
27(4) Tuition reimbursement for obtaining a degree in early
28childhood development.
29d. The application process for the program.
30e. The maximum financial assistance any one person may be
31awarded on an annual basis and on an aggregate basis.
32 Sec. 2. ANALYSIS OF NONEMPLOYEE ENROLLMENT IN THE STATE
33OF IOWA’S EMPLOYEE GROUP HEALTH PLAN. The director of the
34department of administrative services, or the director’s
35designee, shall conduct an analysis of the legality and
-2-1feasibility of offering enrollment in the state of Iowa’s
2employee group health plan to a nonemployee as a type of
3financial assistance available under the program. The director
4shall submit the director’s, or the director’s designee’s,
5findings to the general assembly no later than January 31,
62022.
7 Sec. 3. ECONOMIC DEVELOPMENT AUTHORITY’S COMMUNITY
8DEVELOPMENT BLOCK GRANT ANNUAL ACTION PLAN. As part of the
9economic development authority’s 2021 community development
10block grant (CDBG) annual action plan submission to the United
11States department of housing and urban development (HUD),
12the director of the authority, or the director’s designee,
13shall include the program as one of the authority’s goals and
14objectives and seek an allocation of CDBG funds for the fund.
15EXPLANATION
16The inclusion of this explanation does not constitute agreement with
17the explanation’s substance by the members of the general assembly.
18This bill establishes a child care future zones program and
19fund within the economic development authority (authority) to
20award financial assistance to eligible persons involved in
21child care.
22“Child care future zone” is defined by the bill as any census
23tract in this state with more than 50 children under the age
24of five that contain either no child care providers or so few
25child care providers that there are more than three times as
26many children under age five as there are spaces available at
27the existing child care providers.
28The bill establishes a child care future zones fund (fund)
29in the state treasury under the control of the authority
30consisting of any moneys appropriated by the general assembly
31and any other moneys available and obtained or accepted by
32the authority for placement in the fund. The fund is to be
33used to provide financial assistance to eligible persons under
34the child care future zones program (program). The authority
35must use any moneys specifically appropriated for purposes of
-3-1the program only for the purposes of the program. “Financial
2assistance” is defined in the bill.
3Moneys in the fund at the end of each fiscal year do not
4revert but must remain in the fund for expenditures for
5subsequent fiscal years. Interest or earnings on moneys in the
6fund accrue to the authority to be used for purposes of the
7program. All repayments, payments of interest, or recaptures
8of financial assistance provided under the program accrue to
9the authority for purposes of the program. The authority
10cannot use more than 5 percent of the moneys in the fund at the
11beginning of the fiscal year for purposes of administrative
12costs, marketing, and other program support.
13The bill directs the authority to establish and administer a
14child care future zones program to provide financial assistance
15to eligible persons who own, or work in, a child care-related
16business in a child care future zone; or who are enrolled in an
17early childhood development degree program and currently work
18in, or have committed to work in, a child care future zone.
19A person seeking financial assistance under the program
20must apply to the authority pursuant to rules adopted by the
21authority. The authority, in consultation with the department
22of human services, must adopt rules to implement and administer
23the program. The rules must, at a minimum, provide for the
24identification and designation of child care future zones;
25the requirements for a person to be eligible the program; the
26requirements for a person to be eligible for specific types of
27financial assistance as detailed in the bill; the application
28process for the program; and the maximum financial assistance
29any one person may be awarded on an annual or aggregate basis.
30The bill directs the director of the department of
31administrative services, or the director’s designee, to
32conduct an analysis of the legality and feasibility of offering
33enrollment in the state of Iowa’s employee group health plan
34to nonemployees as a type of financial assistance available
35under the program. The director must submit the finding to the
-4-1general assembly no later than January 31, 2022.
2The bill directs the authority to include the program as one
3of the authority’s goals and objectives, and seek an allocation
4of community development block grant (CDBG) funds for the fund,
5in the authority’s 2021 annual CDBG action plan submission to
6the United States department of housing and urban development.
-5-ko/jh
2within the economic development authority to award financial
3assistance to eligible persons involved in child care.
4BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. NEW SECTION. 15.371 Child care future zones
2program and fund.
31. As used in this section, unless the context otherwise
4requires:
5a. “Child care future zone” means any census tract in this
6state with more than fifty children under the age of five that
7contains either no child care providers or so few child care
8providers that there are more than three times as many children
9under the age of five as there are spaces available at the
10existing child care providers.
11b. “Financial assistance” means assistance provided only
12from the funds, rights, and assets legally available to the
13authority and includes but is not limited to assistance in the
14form of tax incentives, tuition reimbursement, low-interest
15loans, and grants.
16c. “Fund” means the child care future zones fund.
17d. “Program” means the child care future zones program.
182. a. A child care future zones fund is created in
19the state treasury under the control of the authority and
20consists of any moneys appropriated by the general assembly
21and any other moneys available and obtained or accepted by
22the authority for placement in the fund. The fund shall be
23used to provide financial assistance to eligible persons under
24the program. The authority shall use any moneys specifically
25appropriated for purposes of this section only for the purposes
26of this section.
27b. Notwithstanding section 8.33, moneys in the fund at the
28end of each fiscal year shall not revert to any other fund
29but shall remain in the fund for expenditures for subsequent
30fiscal years. Notwithstanding section 12C.7, subsection 2,
31interest or earnings on moneys in the fund shall accrue to the
32authority and shall be used for purposes of this section. All
33repayments, payments of interest, or recaptures of financial
34assistance provided under this section shall accrue to the
35authority and shall be used for purposes of this section.
-1- 1c. The authority shall use not more than five percent of
2the moneys in the fund at the beginning of the fiscal year for
3purposes of administrative costs, marketing, and other program
4support.
53. The authority shall establish and administer a child
6care future zones program to provide financial assistance to
7eligible persons who own, or work in, a child care-related
8business in a child care future zone; or who are enrolled in an
9early childhood development degree program and currently work
10in, or have committed to work in, a child care future zone.
114. A person seeking financial assistance under this section
12shall apply to the authority pursuant to rules adopted by the
13authority.
145. The authority, in consultation with the department of
15human services, shall adopt rules pursuant to chapter 17A to
16implement and administer this section. The rules shall, at a
17minimum, provide for all of the following:
18a. The identification and designation of child care future
19zones.
20b. The requirements for a person to be eligible for the
21program.
22c. The requirements for a person to be eligible for specific
23financial assistance including all of the following:
24(1) A five-year property tax exemption.
25(2) A five-year sales tax exemption.
26(3) A five-year income tax liability exemption.
27(4) Tuition reimbursement for obtaining a degree in early
28childhood development.
29d. The application process for the program.
30e. The maximum financial assistance any one person may be
31awarded on an annual basis and on an aggregate basis.
32 Sec. 2. ANALYSIS OF NONEMPLOYEE ENROLLMENT IN THE STATE
33OF IOWA’S EMPLOYEE GROUP HEALTH PLAN. The director of the
34department of administrative services, or the director’s
35designee, shall conduct an analysis of the legality and
-2-1feasibility of offering enrollment in the state of Iowa’s
2employee group health plan to a nonemployee as a type of
3financial assistance available under the program. The director
4shall submit the director’s, or the director’s designee’s,
5findings to the general assembly no later than January 31,
62022.
7 Sec. 3. ECONOMIC DEVELOPMENT AUTHORITY’S COMMUNITY
8DEVELOPMENT BLOCK GRANT ANNUAL ACTION PLAN. As part of the
9economic development authority’s 2021 community development
10block grant (CDBG) annual action plan submission to the United
11States department of housing and urban development (HUD),
12the director of the authority, or the director’s designee,
13shall include the program as one of the authority’s goals and
14objectives and seek an allocation of CDBG funds for the fund.
15EXPLANATION
16The inclusion of this explanation does not constitute agreement with
17the explanation’s substance by the members of the general assembly.
18This bill establishes a child care future zones program and
19fund within the economic development authority (authority) to
20award financial assistance to eligible persons involved in
21child care.
22“Child care future zone” is defined by the bill as any census
23tract in this state with more than 50 children under the age
24of five that contain either no child care providers or so few
25child care providers that there are more than three times as
26many children under age five as there are spaces available at
27the existing child care providers.
28The bill establishes a child care future zones fund (fund)
29in the state treasury under the control of the authority
30consisting of any moneys appropriated by the general assembly
31and any other moneys available and obtained or accepted by
32the authority for placement in the fund. The fund is to be
33used to provide financial assistance to eligible persons under
34the child care future zones program (program). The authority
35must use any moneys specifically appropriated for purposes of
-3-1the program only for the purposes of the program. “Financial
2assistance” is defined in the bill.
3Moneys in the fund at the end of each fiscal year do not
4revert but must remain in the fund for expenditures for
5subsequent fiscal years. Interest or earnings on moneys in the
6fund accrue to the authority to be used for purposes of the
7program. All repayments, payments of interest, or recaptures
8of financial assistance provided under the program accrue to
9the authority for purposes of the program. The authority
10cannot use more than 5 percent of the moneys in the fund at the
11beginning of the fiscal year for purposes of administrative
12costs, marketing, and other program support.
13The bill directs the authority to establish and administer a
14child care future zones program to provide financial assistance
15to eligible persons who own, or work in, a child care-related
16business in a child care future zone; or who are enrolled in an
17early childhood development degree program and currently work
18in, or have committed to work in, a child care future zone.
19A person seeking financial assistance under the program
20must apply to the authority pursuant to rules adopted by the
21authority. The authority, in consultation with the department
22of human services, must adopt rules to implement and administer
23the program. The rules must, at a minimum, provide for the
24identification and designation of child care future zones;
25the requirements for a person to be eligible the program; the
26requirements for a person to be eligible for specific types of
27financial assistance as detailed in the bill; the application
28process for the program; and the maximum financial assistance
29any one person may be awarded on an annual or aggregate basis.
30The bill directs the director of the department of
31administrative services, or the director’s designee, to
32conduct an analysis of the legality and feasibility of offering
33enrollment in the state of Iowa’s employee group health plan
34to nonemployees as a type of financial assistance available
35under the program. The director must submit the finding to the
-4-1general assembly no later than January 31, 2022.
2The bill directs the authority to include the program as one
3of the authority’s goals and objectives, and seek an allocation
4of community development block grant (CDBG) funds for the fund,
5in the authority’s 2021 annual CDBG action plan submission to
6the United States department of housing and urban development.
-5-ko/jh