WSR 02-03-131

PROPOSED RULES

DEPARTMENT OF COMMUNITY,

TRADE AND ECONOMIC DEVELOPMENT

[ Filed January 23, 2002, 10:38 a.m. ]

Original Notice.

Preproposal statement of inquiry was filed as WSR 01-22-010.

Title of Rule: Child care facility fund, WAC 130-14-010 - 130-14-070.

Purpose: To increase availability of capital for child care facility development and expansion of child care capacity in Washington (original intent was to increase supply of employer-supported child care facilities in Washington).

Statutory Authority for Adoption: RCW 43.31.504.

Statute Being Implemented: RCW 43.31.502 - 43.31.514.

Summary: The proposed changes to WAC 130-14-010, 130-14-030, 130-14-050, and 130-14-060 would expand eligibility for use of the child care revolving loan fund to include all nonsectarian child care businesses. This change will increase available low-interest capital for child care businesses in Washington state. Other amendments clarify uses of the fund and that loan origination fees may be charged to applicants.

Reasons Supporting Proposal: The proposed changes to WAC 130-14-010, 130-14-030, 130-14-050 and 130-14-060 will open up eligibility to the child care facility fund to all child care businesses needing capital to build or expand child care facilities. This will result in an increase in available capital funds for the purpose of increasing the availability of child care.

Name of Agency Personnel Responsible for Drafting and Implementation: Gail Gosney, Community, Trade and Economic Development, 128 10th Avenue S.W., Olympia, WA 98504, (360) 725-4034; and Enforcement: Gail Gosney and Tom Stilz, Community, Trade and Economic Development, 128 10th Avenue S.W., Olympia, WA 98504, (360) 725-4034.

Name of Proponent: Child Care Facility Fund Advisory Committee, Department of Community, Trade and Economic Development, governmental.

Rule is not necessitated by federal law, federal or state court decision.

Explanation of Rule, its Purpose, and Anticipated Effects: WAC 130-14-010 - 130-14-070 establishes the eligibility guidelines for applicants, the purposes for which funds can be loaned or granted, the maximum amount of funds to be lent or granted and the interest rate to be charged on the loans. The WAC further defines the reporting requirements for successful applicants and the maximum terms for loans.

Proposal Changes the Following Existing Rules: WAC 130-14-010, allows businesses, organizations or persons whose primary purpose is to provide child care services to be eligible applicants to the child care facility fund.

WAC 130-14-030, adds provision that applicants may be charged a one-time loan origination fee.

WAC 130-14-050, removes requirement that applicants to the child care facility fund must be restricted to private sector businesses or employer.

WAC 130-14-060, adds purchase of land for buildings or child care facilities as an eligible use of child care facility fund loans or grants.

No small business economic impact statement has been prepared under chapter 19.85 RCW. The proposed changes to WAC 130-14-010, 130-14-030, 130-14-050, and 130-14-060 are exempt from the requirement for a small business economic statement because they are filed under rule-making procedures RCW 34.05.310 (4)(e) as WAC 130-14-010 - 130-14-070 were originally adopted in order to implement RCW 43.31.504.

RCW 34.05.328 does not apply to this rule adoption.

Hearing Location: Highline Community College, Building 3, Room 102, 2400 South 240th Street, Des Moines, WA, on February 26, 2002, at 2:00 p.m.

Assistance for Persons with Disabilities: Contact Gail Gosney by February 25, 2002, TDD (360) 753-7427.

Submit Written Comments to: Gail Gosney, Small Business Resources Unit, Department of Community, Trade and Economic Development, 10th Avenue S.W., Olympia, WA 98504, (360) 725-4034, gailg@cted.wa.gov, fax (360) 586-0783, by February 27, 2002.

Date of Intended Adoption: February 27, 2002.

January 23, 2002

Martha Choe

Director


AMENDATORY SECTION(Amending WSR 92-02-015, filed 12/23/91)

WAC 130-14-010   Definitions.   As used in this chapter:

Capital improvements means improvements to real property or improvements or acquisition of personal property which is depreciable under the Federal Tax Code.

Existing child care facility means that facility which holds a current license for a child care facility from the department of social and health services (DSHS) at the time of application to the child care facility fund.

New child care facility means that facility that does not hold a current license for a child care facility from the department of social and health services (DSHS) at the time of application to the child care facility fund.

Applicant means either:

(1) One or more businesses seeking to establish or cause to be established a child care facility primarily for use of the children of its employees; or

(2) A child care facility that has a written contract with one or more private sector businesses to provide child care for the employees of that business.

(3) A business, organization or person whose primary purpose is to provide child care services. Sectarian organizations are not eligible organizations.

[Statutory Authority: RCW 43.31.504. 92-02-015, 130-14-010, filed 12/23/91, effective 1/23/92. Statutory Authority: RCW 43.31.085. 90-17-054, 130-14-010, filed 8/14/90, effective 9/14/90.]


AMENDATORY SECTION(Amending WSR 92-02-015, filed 12/23/91)

WAC 130-14-030   Direct loans.   (1) Direct loans may be awarded to the applicant on a one-time-only basis and shall not exceed a maximum of one hundred thousand dollars.

(2) Repayment of the direct loan shall be made to the child care facility revolving fund.

(3) Interest rates for a direct loan may be up to prime rate, negotiated on a case-by-case basis, fixed for the life of the loan. Loan terms shall be negotiated on a case-by-case basis.

(4) Applicants must provide sufficient collateral for funds loaned under this section, as determined by the child care facility fund committee.

(5) Applicants may be charged a one-time loan origination fee.

[Statutory Authority: RCW 43.31.504. 92-02-015, 130-14-030, filed 12/23/91, effective 1/23/92. Statutory Authority: RCW 43.31.085. 90-17-054, 130-14-030, filed 8/14/90, effective 9/14/90.]


AMENDATORY SECTION(Amending WSR 92-02-015, filed 12/23/91)

WAC 130-14-050   Project eligibility.   (((1))) To receive child care facility funds under these provisions, an applicant must: ((provide on-site or off-site child care.

(2) The business applicant must:

(a) Enter into a written contract with an existing or a newly licensed child care provider offering expanded child care services either on-site or off-site; or

(b) Operate a child care facility for their own employees' children.))

(1) ((3 An applicant must)) Include with ((its)) their application a copy of the required ((written contract)) state license for child care services.

(2) ((4 The applicant must s)) Submit a plan that includes a description of:

(a) The need for a new or improved child care facility in the area to be served by the applicant;

(b) The steps to be taken to serve a reasonable number of:

(i) Handicapped children;

(ii) Sick children;

(iii) Infants;

(iv) Children requiring nighttime or weekend care;

(v) Children whose costs of care are subsidized by the government;

(c) Why financial assistance from the state is needed to start or improve the child care facility;

(d) How the guaranteed loan, direct loan, or grant will be used, and how such use will meet the described need;

(e) The child care services to be available at the facility and the capacity of the applicant to provide these services;

(f) The financial status of the applicant, including other resources available to the applicant which will ensure the viability of the facility and the availability of its described services.

[Statutory Authority: RCW 43.31.504. 92-02-015, 130-14-050, filed 12/23/91, effective 1/23/92. Statutory Authority: RCW 43.31.085. 90-17-054, 130-14-050, filed 8/14/90, effective 9/14/90.]

Reviser's note: The typographical errors in the above section occurred in the copy filed by the agency and appear in the Register pursuant to the requirements of RCW 34.08.040.
AMENDATORY SECTION(Amending WSR 90-17-054, filed 8/14/90)

WAC 130-14-060   Use of funds.   Eligible activities and uses of child care facility funds include:

(1) Capital improvements for new or existing licensed child care facilities;

(2) Operating capital for new facilities which are available for a period limited to the first three months of operation.

(3) Purchanse of land or buildings which enables a child care business to increase the number license child care slots.

[Statutory Authority: RCW 43.31.085. 90-17-054, 130-14-060, filed 8/14/90, effective 9/14/90.]

Reviser's note: The spelling error in the above section occurred in the copy filed by the agency and appears in the Register pursuant to the requirements of RCW 34.08.040.

Washington State Code Reviser's Office