AN ACT Relating to encouraging employer involvement in child care facilities development and services; amending RCW 74.13.090 and 74.13.095; adding new sections to chapter 74.13 RCW; adding a new section to chapter 43.168 RCW; creating a new section; making an appropriation; and declaring an emergency.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1. The legislature finds that the increasing difficulty of balancing work life and family needs has made the availability of quality, affordable child care a critical concern for the state and its citizens. The dramatic increase in participation of women in the work force has resulted in the demand for child care exceeding the response of the market. There are not enough child care services and facilities to meet the needs of working parents, the costs of care are often beyond the resources of working parents, and facilities are not located conveniently to work places and neighborhoods. The prospect for labor shortages resulting from the aging of the population and the importance of the quality of the workforce to the competitiveness of Washington businesses make the availability of quality child care an important concern for the state's businesses.

The legislature further finds that making information on child care options available to businesses can help the market for child care adjust to the needs of businesses and working families. The legislature further finds that investments are necessary to promote partnerships between the public and private sectors, educational institutions, and local governments to increase the supply, affordability, and quality of child care in the state.

Sec. 2. Section 2, chapter 213, Laws of 1988 and RCW 74.13.090 are each amended to read as follows:

(1) There is established a child care coordinating committee to provide coordination and communication between state agencies responsible for child care and early childhood education services. The child care coordinating committee shall be composed of not less than seventeen nor more than thirty members who shall include:

(a) One representative each from the department of social and health services, the department of community development, the office of the superintendent of public instruction, and any other agency having responsibility for regulation, provision, or funding of child care services in the state;

(b) One representative from the ((~~governor's commission on children~~)) department of labor and industries;

(d) One representative from the department of revenue;

(e) One representative from the employment security department;

(f) At least one representative of family home child care providers and one representative of center care providers;

((~~(e)~~)) (g) At least one representative of early childhood development experts;

((~~(f)~~)) (h) At least one representative of school districts and teachers involved in the provision of child care and preschool programs;

((~~(g)~~)) (i) At least one parent education specialist;

((~~(h)~~)) (j) At least one representative of resource and referral programs;

((~~(i)~~)) (k) One pediatric or other health professional;

((~~(j)~~)) (l) At least one representative of college or university child care providers;

((~~(k)~~)) (m) At least one representative of a citizen group concerned with child care;

((~~(l)~~)) (n) At least one representative of a labor organization;

((~~(m)~~)) (o) At least one representative of a head start - early childhood education assistance program agency;

((~~(n)~~)) (p) At least one employer who provides child care assistance to employees;

((~~(o)~~)) (q) Parents of children receiving, or in need of, child care, half of whom shall be parents needing or receiving subsidized child care and half of whom shall be parents who are able to pay for child care.

The named state agencies shall select their representative to the child care coordinating committee. The department of social and health services shall select the remaining members, considering recommendations from lists submitted by professional associations and other interest groups until such time as the committee adopts a member selection process. Staff support for the child care coordinating committee shall be provided within available resources by the department of social and health services on an ongoing basis. The department shall use any federal funds which may become available to accomplish the purposes of RCW 74.13.085 through 74.13.095.

The committee shall elect officers from among its membership and shall adopt policies and procedures specifying the lengths of terms, methods for filling vacancies, and other matters necessary to the ongoing functioning of the committee. The secretary of social and health services shall appoint a temporary chair until the committee has adopted policies and elected a chair accordingly. Child care coordinating committee members shall be reimbursed for travel expenses as provided in RCW 43.03.050 and 43.03.060.

(2) To the extent possible within available funds, the child care coordinating committee shall:

(a) Serve as an advisory coordinator for all state agencies responsible for early childhood or child care programs for the purpose of improving communication and interagency coordination, but not to review the substance of programs. The committee shall annually review state programs and make recommendations to the agencies and the legislature which will maximize funding and promote furtherance of the policies set forth in RCW 74.13.085;

(b) Review and propose changes to the child care subsidy system by December 1, 1989;

(c) Review ((~~agency~~)) department of social and health services administration of the child care expansion grant program described in RCW 74.13.095;

(d) Review department of social and health services administration of the child care partnership program described in section 3 of this act.

Representatives of the department of labor and industries, the department of trade and economic development, the employment security department and the department of revenue shall assist the department of social and health services in administration of the child care partnership program by making the existence of the program known to employers and businesses in Washington state through communications those agencies routinely have with these employers and businesses.

(e) Review alternative models for child care service systems, in the context of the policies set forth in RCW 74.13.085, and recommend to the legislature a new child care service structure;

((~~(e)~~)) (f) Review options and make recommendations on the feasibility of establishing an allocation for day care facilities when constructing state buildings; and

((~~(f)~~)) (g) Perform other functions to improve the quantity and quality of child care in the state, including compliance with existing and future prerequisites for federal funding.

NEW SECTION. Sec. 3. A new section is added to chapter 74.13 RCW to read as follows:

(1) The secretary of the department of social and health services shall appoint a child care resource coordinator who shall, within appropriated funds:

(a) Seek public or private moneys and administer funding of available grants for the purpose of:

(i) Creating and operating community-based child care resource and referral agencies; and

(ii) Administering the child care partnership program established in subsection (2) of this section;

(b) Coordinate the provision of training and technical assistance to child care providers;

(c) Maintain a state-wide child care referral data bank and provide information to community-based child care resource and referral agencies about licensed child care providers in the state; and

(d) Collect and assemble information regarding the availability of insurance and of federal and other child care funding to assist state agencies, businesses, and other child care providers in offering child care-related services.

(2) The child care partnership program is established within the department of social and health services under the direction of the child care resource coordinator. The program shall encourage employer assistance and involvement in child care and foster partnerships between employers and the public sector to increase the availability, quality, and affordability of child care services in the state. An employer support position shall be located in the office of the child care resource coordinator. In addition to the activities included in subsection (3) of this section, the employer support position shall provide assistance to community-based child care resource and referral agencies to increase their capacity to provide quality technical assistance to employers in their community. To the greatest extent possible and consistent with the need to ensure the quality of assistance provided to employers, funds appropriated for the purposes of the child care partnership program shall be allocated to community-based child care resource and referral agencies to carry out the activities included in subsection (3) of this section.

(3) The program shall work with the assistance of, and in consultation with, the child care coordinating committee, particularly the representatives of the department of trade and economic development, the department of labor and industries, and the department of revenue, and shall:

(a) Provide technical assistance to employers to enable them to support child care services or facilities. Such technical assistance shall include, but not be limited to: Assessment of the child care needs of employees and prospective employees; review of options available to employers interested in increasing access to child care for their employees; development of techniques to permit smaller employers to increase access to child care for their employees in a cost-effective manner; and review of methods for evaluating the impact of child care activities on the employer;

(b) Prepare information for employers on options for increasing involvement in child care;

(c) Develop a list of firms and individuals with expertise in the field of employer involvement in child care and utilize such firms and individuals, as appropriate, in delivering technical assistance. The program shall make this information available to employers to whom it provides technical assistance;

(d) Provide assistance to community-based child care resource and referral programs to increase their capacity to provide quality technical assistance to employers in their community; and

(e) Encourage local governments to create incentives for employer support for child care by providing information on such local government incentives in this state and other states.

(4) The child care resource coordinator, with the approval of the child care coordinating committee, shall publish a report by December 1 of each even-numbered year. The report shall be made available to the senate and house of representatives ways and means committees, to the house of representatives trade and economic development and human services committees, and to the senate economic development and labor and children and family services committees. The report shall recommend statutory and administrative changes to encourage employer involvement in child care and partnerships between employers and the public sector to increase the quantity, quality, and affordability of child care services and facilities in this state.

NEW SECTION. Sec. 4. A new section is added to chapter 74.13 RCW to read as follows:

In addition to the responsibilities listed in RCW 74.18.090, the child care coordinating committee shall conduct a study of the liability insurance issues related to the provision of child care. In conducting this study, the child care coordinating committee shall involve appropriate state agencies, local governments, insurance providers, child care providers, businesses, health care and child abuse professionals, law enforcement officials, attorneys for both plaintiffs and defendants in this area, and other persons or organizations the child care coordinating committee deems appropriate. The committee shall report to the trade and economic development and the human services committees in the house of representatives and the economic development and labor and the children and family services committees in the senate by January 1, 1991. The report shall include recommendations.

Sec. 5. Section 3, chapter 213, Laws of 1988 and RCW 74.13.095 are each amended to read as follows:

(1) The legislature recognizes that a severe shortage of child care exists to the detriment of all families and employers throughout the state. Many workers are unable to enter or remain in the work force due to a shortage of child care resources. The high costs of starting a child care business create a barrier to the creation of new slots, especially for children with special needs.

(2) A child care expansion grant fund is created in the custody of the secretary of the department of social and health services. Grants shall be awarded on a one-time only basis to persons, organizations, businesses, consortia of two or more businesses, or schools needing assistance to start a child care center or mini-center as defined by the department by rule, or to make capital improvements in existing licensed child care ((~~providers~~)) facilities, including family day care homes ((providers, for the purpose of making capital improvements in order to accommodate handicapped children as defined under chapter 72.40 RCW, sick children, or infant care, or children needing night time care)). In awarding grants, priority shall be given to persons, organizations, businesses, consortia of two or more businesses, or schools who, as a condition of grant funding, make a commitment to serve a reasonable number of the following children:

(a) Handicapped children as defined under chapter 72.40 RCW;

(b) Sick children;

(d) Children requiring night time or weekend care; or

(e) Children whose costs of care are subsidized by the department of social and health services. As a condition of an individual business or a consortia of businesses receiving a grant under this section, the business or consortia of businesses must match the grant request with an equal amount of the grant requested. No grant may exceed ((~~ten~~)) twenty-five thousand dollars. Start-up costs shall not include operational costs after the first three months of business.

(3) Child care expansion grants shall be awarded on the basis of need for the proposed services in the community, within appropriated funds. Every effort shall be made to ensure that the distribution of grants is balanced geographically throughout the state.

(4) Where the grant is made to a private person, organization, business, or consortia of businesses, the grant shall be repaid to the fund if the child care facility using the grant to start up or expand ceases to provide child care earlier than the following time periods from when the grant is made: (a) Twelve months for a grant up to five thousand dollars; (b) twenty-four months for a grant over five thousand dollars up to ten thousand dollars; (c) thirty-six months for a grant over ten thousand dollars up to fifteen thousand dollars; (d) forty-eight months for a grant over fifteen thousand dollars up to twenty thousand dollars; and (e) sixty months for a grant over twenty thousand dollars up to twenty-five thousand dollars.

(5) The department shall adopt rules under chapter ((~~34.04~~)) 34.05 RCW setting forth criteria, application procedures, and methods to assure compliance with the purposes described in this section.

NEW SECTION. Sec. 6. (1) The sum of two hundred fifty thousand dollars, or as much thereof as may be necessary, is appropriated for the biennium ending June 30, 1991, from the general fund to the department of social and health services for the purposes of section 3 of this act, including the employer support position.

(2) The sum of four hundred thousand dollars, or as much thereof as may be necessary, is appropriated for the biennium ending June 30, 1991, from the general fund to the child care expansion grant fund in the department of social and health services for the purposes of section 4 of this act.

NEW SECTION. Sec. 7. A new section is added to chapter 43.168 RCW to read as follows:

(1) The legislature finds that the dramatic increase in the participation of women in the workforce has resulted in a shortage of affordable, quality child care. The economy will continue to need the increasing participation of women in the workforce in the future; therefore affordable and quality child care is important for economic development.

(2) The committee may approve applications for projects to provide child care. The committee shall, subject to federal block grant criteria, give higher priority to economic development projects that contain provisions for child care.

(3)(a) A child care facilities loan guarantee fund is created in the custody of the committee. All receipts designated for the guarantee fund shall be placed in the guarantee fund and shall be administered by the committee including:

(i) Premiums and fees for guaranteeing loans;

(ii) Income from investments that the state treasurer, on instruction of the committee, makes for the committee under this section;

(iii) Proceeds from the sale, disposition, lease, or rental of collateral relating to loan guarantees;

(iv) Moneys appropriated by the state to the guarantee fund;

(v) Moneys appropriated by the committee from the development loan fund; and

(vi) Any other moneys made available to the guarantee fund.

!ixDisbursements from the guarantee fund shall be on authorization by the committee. No appropriation shall be required to permit expenditures and payment of obligations from the fund.

(b) The guarantee fund shall be used to pay all expenses and disbursements authorized by the committee for administering the guarantee fund and financing the expansion, renovation, capital improvement or development of child care facilities in this state, including, but not limited to:

(i) Guaranty payments required by loan defaults; and

(ii) Expenses for administrative, legal, actuarial, technical assistance, and other services.

(c) If at any time the amount of money in the guarantee fund exceeds the amount that the committee finds necessary to meet its current expenses and obligations, the excess shall be deposited with the state treasurer to the credit of the fund and invested in the manner provided for by law.

(4)(a) Subject to the restrictions of this subsection (4), the committee, on application, may provide a guarantee of a loan made to an applicant. The committee may guarantee a loan only if the applicant meets the qualifications required by this section and the loan is to be used for expansion, renovation, capital improvement, or financing of a child care facility.

(b) To apply for a loan guarantee, an applicant shall submit an application to the committee on the form required by the committee. The application shall include, at a minimum:

(i) A detailed description of the proposed or existing day care facility, including the categories of children served or to be served and documentation of licensing pursuant to chapter 74.15 RCW;

(ii) An itemization of known and estimated costs;

(iii) The total amount of investment required to expand or develop the day care facility;

(iv) The funds available to the applicant without loan guarantee assistance from the committee;

(v) The amount of loan guarantee assistance sought from the committee;

(vi) Information about the inability of the applicant to obtain the financing necessary for the facility on reasonable terms through conventional lending channels;

(vii) Information on the financial status of the applicant, including, if applicable:

(A) A current balance sheet;

(B) A profit and loss statement;

(D) Any other relevant information required by the committee.

(i) Geographic distribution of child care facilities;

(ii) Community need in the community in which the facility is or will be located;

(iii) Community income, with special weight given to those communities with the lowest median family income; and

(iv) Commitment by the applicant as a condition of the loan guarantee to serve a reasonable number of: Handicapped children, as defined under chapter 72.40 RCW; sick children; infants; children requiring night time or weekend care; or children whose costs of care are subsidized by the department of social and health services.

(d) Except as otherwise required in this subsection (4), the committee may set the terms and conditions for guarantees of loans. The total aggregate amount of the loan guarantee for any applicant may not exceed eighty percent of the loan.

(5) The total aggregate amount of insurance from the guarantee fund, with respect to the insured portions of loans, may not exceed at any time an amount equal to five times the balance in the guarantee fund.

(6) The committee shall adopt rules setting forth criteria, application procedures, and methods to assure compliance with the purposes described in this section.

NEW SECTION. Sec. 8. If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.

NEW SECTION. Sec. 9. This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect immediately.