Bill Text: NJ A2071 | 2024-2025 | Regular Session | Introduced
Bill Title: Establishes competitive grant program for new child care facility construction, using $30 million in federal "Coronavirus State Fiscal Recovery Fund" monies appropriated to EDA pursuant to P.L.2022, c.49.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced) 2024-01-09 - Introduced, Referred to Assembly Children, Families and Food Security Committee [A2071 Detail]
Download: New_Jersey-2024-A2071-Introduced.html
STATE OF NEW JERSEY
221st LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2024 SESSION
Sponsored by:
Assemblywoman ELIANA PINTOR MARIN
District 29 (Essex and Hudson)
SYNOPSIS
Establishes competitive grant program for new child care facility construction, using $30 million in federal "Coronavirus State Fiscal Recovery Fund" monies appropriated to EDA pursuant to P.L.2022, c.49.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel.
An Act establishing child care facility construction grant program.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. The purpose of this act shall be to incentivize the construction of new child care facilities in order to expand the State's capacity of high-quality child care services.
2. As used in this act:
"Authority" means the New Jersey Economic Development Authority in the Department of the Treasury.
"Child care center" means a community-based organization that provides full day, year-round child care for infants and toddlers, as well as before and after care and summer programs for preschool children.
"Child care desert" means a community or geographic area in which there are three times as many children residing in the area as there are licensed child care slots.
"Community Development Financial Institution (CDFI)" means a private-sector financial entity with the primary mission of using private and publicly sourced capital to expand economic opportunity in low-income communities by providing access to financial products and services for local residents and businesses. CDFIs include, but are by no means limited to, community development credit unions and community development banks.
"Department" means the Department of Children and Families.
"Nonprofit organization" means an organization incorporated under the provisions of Title 15 or Title 16 of the Revised Statutes of New Jersey, an organization exempt from taxation under section 501(c)(3) of the Internal Revenue Code, or an entity to which a charitable contribution as defined under subsection (c) of section 170 of the Internal Revenue Code is deductible under section 170.
3. a. Within 60 days of the effective date of this act, the Chief Executive Officer of the Authority shall seek applications and, from the applications received, select a Community Development Finance Institution to:
(1) administer the grant application, review, and award processes established pursuant to section 4 of this act;
(2) disburse grant funds awarded under section 4 of this act;
(3) provide technical assistance to grant recipients during the planning, construction, and licensing phases for new child care facilities constructed pursuant to this act;
(4) assist grant recipients, as necessary, in preparing the recipients' new child care programs for evaluation under the State's child care quality rating and improvement system, Grow NJ Kids;
(5) collect, analyze, and report any program benchmarks or outcomes data as may be required by the Authority, in consultation with the Departments of Children and Families and Human Services.
b. The Community Development Finance Institution, selected pursuant to subsection a. of this section, shall have experience in early childhood facilities financing in order to encourage participation in the grant program, established pursuant to section 4 of this act, from nonprofit, community-based child care providers and ensure the equitable disbursement of grant funds to eligible applicants.
4. a. Within 120 days of the designation of a Community Development Finance Institution to administer the grant program, established pursuant to this act, the Community Development Finance Institution shall award one-time, competitive grants to nonprofit, community-based child care providers that meet the eligibility requirements established for grant applicants under subsection b. of this section. Grants awarded pursuant to this act shall be used for the construction of new child care facilities in order to increase the number of child care slots available for children ages five years and younger.
b. Grant amounts and awards will be dependent upon the availability of funds. The grant program will expire once the available funding, appropriated pursuant to section 7 of this act, has been expended.
c. Eligible grant applicants shall:
(1) be a nonprofit organization that is based in the community in which the proposed new child care facility will be constructed;
(2) have no less than five years' experience in providing child care services for children, ages five years and younger;
(3) commit to participate in, and prioritize enrollment of children eligible for, the State's subsidized child care assistance program for low and moderate-income families;
(4) agree to be evaluated under, and participate in, the State's child care quality rating and improvement system, Grow NJ Kids; and
(5) consent to collect any de-identified data that the Authority may require in order to assess the grant program's outcomes and efficacy.
d. In awarding grants for the construction of new child care facilities, the Community Development Finance Institution shall give preference to grant applicants that:
(1) have experience in providing high-quality child care services to children and families who require additional socio-economic supports and services;
(2) commit to locating a new child care facility in a child care desert; and
(3) agree to construct and operate a child care facility with a minimum capacity of 60 children, of whom 25 percent will be children who are enrolled in the State's subsidized child care assistance program.
e. In no case shall land or building purchases be permissible uses of grant funding awarded pursuant to this act.
5. Within 60 days of the expiration of the grant program, the Chief Executive Officer of the Authority shall provide a report to the Governor and to the Legislature pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1), on the number of new child care slots created through the grant program established pursuant to this act.
6. The State Treasurer shall adopt such rules and regulations, pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), as may be necessary to implement the requirements under this act.
7. From the $30,000,000 in federal "Coronavirus State Fiscal Recovery Fund" monies appropriated to the Authority for a Child Care Facilities Fund, pursuant to the FY 2023 Appropriations Act, P.L.2022, c.49, the following sums shall be awarded to the Community Development Finance Institution, designated pursuant to section 3 of this act, to effectuate the provisions of this act:
a. $26,000,000 for competitive grants to nonprofit, community-based organizations for the construction of new child care facilities;
b. $1,000,000 for the provision of technical assistance to grant recipients; and
c. $3,000,000 for the costs to administer the grant program established pursuant to this act.
8. This act shall take effect on the first day of the fourth month next after enactment, except that the State Treasurer may take such anticipatory action in advance thereof as shall be necessary for the implementation of this act. Upon the submission of the report required pursuant to section 5, the provisions of this act shall expire.
STATEMENT
This bill establishes a grant program to finance the construction of new child care facilities by nonprofit, community-based child care providers. The grant program will be financed with the $30 million in federal "Coronavirus State Fiscal Recovery Fund" monies, appropriated, pursuant to the FY 2023 Appropriations Act, to the New Jersey Economic Development Authority (NJEDA) for the creation of a Child Care Facilities Fund. It is the sponsor's intent that the grant program spur the creation of new child care slots, for children ages five years and younger, in the State's child care deserts.
Within 60 days of the bill's effective date, the Chief Executive Officer of the NJEDA will seek applications and, from those received, select a Community Development Finance Institution (CDFI) to: 1) manage the grant application, review, and award processes; 2) disburse grants awarded to child care providers; 3) provide technical assistance to grant recipients; 4) help grant recipients prepare their new facilities for evaluation under the Grow NJ Kids program; and 5) compile and report any program benchmarks or outcomes data that the NJEDA may require.
Under the bill, the designated CDFI is required to have experience in early childhood facilities financing, in order to ensure the equitable disbursement of grant funds and encourage the participation of nonprofit, community-based child care providers.
The bill requires the CDFI, within 120 days of designation, to award one-time, competitive grants to child care providers for the construction of new child care facilities. The bill also stipulates that the grant program will expire once the available funding has been expended.
The bill provides that an eligible grant applicant: 1) is a nonprofit, community-based organization; 2) has at least five years' experience in providing child care for children ages five years and younger; 3) will commit to participate in, and prioritize enrollment of children eligible for, the State's child care subsidy program; 4) will agree to participate in the Grow NJ Kids program; and 5) will consent to collect any de-identified data that the NJEDA requires.
The CDFI is required to give preference to applicants that: 1) have experience in providing services to children and families who require additional socio-economic supports and services; 2) will commit to locating a new child care facility in a child care desert; and 3) will operate a child care facility that has a minimum capacity of 60 children, of whom 25 percent will be children who receive child care subsidies.
The bill also prohibits the use of grant funds for the purchase of land or buildings.
Of the $30 million in federal "Coronavirus State Fiscal Recovery Fund" monies appropriated to the NJEDA for the creation of a Child Care Facilities Fund, pursuant to the FY 2023 Appropriations Act, the bill awards to the designated CDFI: 1) $26 million for competitive grant awards; 2) $1.0 million for the provision of technical assistance to grantees; and 3) $3 million for the grant program's administrative costs.
