46th legislature - STATE OF NEW MEXICO - first session, 2003

RELATING TO CHILD CARE; CREATING THE CHILD CARE FACILITY REVOLVING LOAN FUND; AUTHORIZING LOANS FOR LICENSED CHILD CARE FACILITIES TO MAKE NECESSARY IMPROVEMENTS FOR HEALTH AND SAFETY; MAKING AN APPROPRIATION; DECLARING AN EMERGENCY.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

Section 1. SHORT TITLE.--This act may be cited as the "Child Care Facility Loan Act".

Section 2. PURPOSE.--The purpose of the Child Care Facility Loan Act is to support the physical improvement, repair, safety and maintenance of licensed child care facilities throughout New Mexico by providing long-term, low-interest funding through a revolving loan fund so as to ensure availability of healthy and safe teaching environments.

Section 3. DEFINITIONS.--As used in the Child Care Facility Loan Act:

A. "department" means the children, youth and families department;

B. "facility" means a child care facility operated by a provider, including both family home-based and

center-based programs, licensed by the department to provide care to infants, toddlers and children;

C. "fund" means the child care facility revolving loan fund; and

D. "provider" means a person licensed by the department to provide child care to infants, toddlers and children pursuant to Section 9-2A-8 NMSA 1978.

Section 4. FUND CREATED--ADMINISTRATION.--

A. The "child care facility revolving loan fund" is created in the state treasury to provide low-interest, long-term loans to providers to make health and safety improvements in their facilities. The fund shall consist of appropriations, gifts, grants and donations to the fund, which shall be invested as other state funds. Money in the fund shall not revert and is appropriated to the department, which shall administer the fund for the purposes of the Child Care Facility Loan Act. Expenditures from the fund shall be made upon warrants of the secretary of finance and administration pursuant to vouchers signed by the secretary of children, youth and families or his authorized representative.

B. Money in the fund shall be used to make loans to providers that demonstrate the need to make health and safety improvements, including space expansion, in order to maintain an adequate and appropriate environment for their clients. Loans from the fund are to be made at the very lowest possible interest rates for the longest amount of time in order to allow the providers the maximum opportunity to maintain the business while repaying the loan.

C. No more than twenty percent of the fund may be loaned to a single provider in a single loan. A provider that has received a loan from the fund in the immediately preceding five years or that has not completed repayment of a previous loan from the fund is ineligible for a new loan. The department shall give priority for loans to facilities of providers that serve proportionately high numbers of state-subsidized clients and low-income families.

Section 5. APPROPRIATION.--Two hundred fifty thousand dollars ($250,000) is appropriated from the general fund to the child care facility revolving loan fund for expenditure in fiscal year 2003 and subsequent fiscal years to carry out the provisions of the Child Care Facility Loan Act. Any unexpended or unencumbered balance remaining at the end of a fiscal year shall not revert to the general fund.

Section 6. EMERGENCY.--It is necessary for the public peace, health and safety that this act take effect immediately.