HOUSE BILL REPORT

2SSB 6051

As Amended by the House

BYSenate Committee on Ways & Means (originally sponsored by Senators Anderson, Cantu, Stratton, Smith, Thorsness, McMullen, Wojahn, Lee and Bailey)

Promoting employer involvement in the development of child care services and facilities.

House Committe on Trade & Economic Development

Majority Report:  Do pass with amendments.  (11)

      Signed by Representatives Cantwell, Chair; Wineberry, Vice Chair; Doty, Ranking Republican Member; Kremen, Moyer, Rasmussen, Raiter, Rector, Tate, Walk and Youngsman.

House Staff:Charlie Gavigan (786-7340)

Rereferred House Committee on Appropriations

Majority Report:  Do pass as amended by Committee on Trade & Economic Development. (25)

      Signed by Representatives Locke, Chair; Grant, Vice Chair, H. Sommers, Vice Chair; Silver, Ranking Minority Member; Youngsman, Assistant Ranking Minority Member; Appelwick, Silver, Bowman, Brekke, Bristow, Brough, Dorn, Ferguson, Hine, May, McLean, Nealey, Peery, Rust, Sayan, Spanel, Sprenkle, Valle, Wang and Wineberry.

House Staff:      Susan Nakagawa (786-7136)

AS PASSED HOUSE APRIL 14, 1989

BACKGROUND:

Child care is licensed and coordinated by the Department of Social and Health Services (DSHS).  In addition to regulating child care providers, DSHS also provides technical assistance and other programs to help child care providers.

In 1988, the Legislature established a Child Care Coordinating Committee to help coordinate state agencies in this area and to provide recommendations to the legislature regarding child care subsidy programs.

The Legislature created but did not fund a Child Care Expansion Grant Fund to provide one-time start-up grants to persons, organizations, or schools for new child care facilities, or to expand existing facilities to handle children with special needs.

The Legislature established a child care policy in statute in 1988.  The policy encourages the participation of families and businesses in operating and expanding the child care system in the state to meet the needs of the labor market and to assist families.  The policy encourages traditional at-home parenting, but also promotes the availability and affordability of quality child care for families that need child care assistance.

SUMMARY:

The Business Assistance Center in the Department of Trade and Economic Development is to encourage and support employer-assisted child care by: (a) preparing and disseminating, in conjunction with the Child Care Coordinating Committee in the Department of Social and Health Services (DSHS), information on child care options for employers; and (b) providing, in conjunction with the Child Care Coordinating Committee in DSHS, resources for technical assistance for employers considering child care assistance.

The Development Loan Fund, subject to federal requirements, may give priority to applications for economic development projects that include provisions for child care.

The Child Care Facilities Loan Guarantee Fund is established in the Development Loan Fund (DLF).  This fund will guarantee loans used for expanding, renovating, making capital improvements to, or financing child care facilities.

The applicant for a guarantee must:  (1) provide a detailed description of the proposed or existing child care facility; (2) provide an itemization of costs and investment needed to develop or expand the child care; (3) provide a summary of the funds available to expand or develop the child care facility and the amount of the loan the applicant needs to be guaranteed; (4) provide the reasons why the applicant cannot obtain conventional financing; and (5) provide a financial statement.

In making the loan guarantee, the DLF Committee is to consider:  (1) the geographic distribution of the child care facilities; (2) the needs of the community; (3) the income level of the community, with priority given to communities with lower income; and (4) the commitment of the applicant to serve a reasonable number of children who are handicapped, children who are ill, children who need care at night or on weekends and children whose costs are subsidized by DSHS.

If funding for this legislation is not specifically included in the operating budget for the 1989-91 biennium, this act is null and void.

Fiscal Note:      Requested March 30, 1989.

Effective Date:The bill contains an emergency clause and takes effect immediately.

House Committee ‑ Testified For:    (Trade & Economic Development) Lyle Bates, Kids R People Too, Spanaway, Washington.

(Appropriations) None Presented.

House Committee - Testified Against:      (Trade & Economic Development) None Presented.

(Appropriations) None Presented.

House Committee - Testimony For:    (Trade & Economic Development) Providing information, technical assistance, grants, loans, and guarantees to businesses will increase employer involvement in child care.  This will benefit the employers, the employees, and children.

(Appropriations) None Presented.

House Committee - Testimony Against:      (Trade & Economic Development) None Presented.

(Appropriations) None Presented.

VOTE ON FINAL PASSAGE:

      Yeas 97; Excused 1

Excused:    Representative Gallagher