SECTIONS 8493-8498 - California Statutes

EDUCATION CODE

SECTION 8493-8498

8493. It is the intent of the Legislature that funds be
appropriated for capital outlay for purposes of providing facilities
for child care and development services provided pursuant to this
chapter, including, but not limited to, all of the following
purposes:
(a) For the purchase of relocatable facilities by the state for
lease to qualifying contracting agencies in areas with no available
economically practical or feasible child care and development
facilities.
(b) For renovation and repair of child care and development
facilities in order to comply with state and local health and safety
standards and licensing requirements, without unnecessarily
increasing the value of the facility.

8494. (a) All of the following child care and development programs,
other than those providing extended day care services, shall be
eligible to receive a loan for the renovation and repair of
facilities used for the program or to lease relocatable facilities to
be used for the program:
(1) Private nonprofit child care and development programs
currently, or soon to be, under contract with the State Department of
Education pursuant to Section 8262.
(2) Child care and development programs conducted pursuant to
Article 4 (commencing with Section 8225).
(3) Child care and development programs operated by, or in a
facility owned by, a public entity.
(4) Child care and development programs conducted pursuant to
Article 7.1 (commencing with Section 54740) of Chapter 9 of Part 29.
(b) A recipient of a loan pursuant to this section shall document
that the renovated facility shall comply with all laws and
regulations applicable to child care facilities provided for pursuant
to Chapter 3.4 (commencing with Section 1596.70) and Chapter 3.5
(commencing with Section 1596.90) of Division 2 of the Health and
Safety Code.
(c) A recipient of a loan pursuant to this section shall assure
the board that the renovated facility shall be used for the purposes
of the child care and development program for the entire loan period,
which shall be determined by the board as follows:
(1) For loans equal to or less than thirty thousand dollars
($30,000), not less than three years.
(2) For loans exceeding thirty thousand dollars ($30,000), the
loan period shall increase one year for each additional ten thousand
dollars ($10,000) or part thereof, to a maximum of fifty thousand
dollars ($50,000).
(d) Interest on the loan principal shall be charged at a rate
equal to the average of the interest rate applied to the last three
bond sales pursuant to Chapter 21.6 (commencing with Section 17695)
of Part 10.
(e) In the event that a recipient ceases to use the renovated
facility for purposes of the child care and development program prior
to the expiration of the loan period, the board shall collect the
entire outstanding balance of the loan, plus interest,
notwithstanding the loan period originally set pursuant to
subdivision (c), unless the board deems it appropriate to waive
repayment at that time.
(f) If the renovated facility has been continuously used for
purposes of the child care and development program for the entire
loan period, the board shall waive repayment of the amount of the
loan principal, plus interest, at the end of the loan period.

8495. (a) There is hereby created in the State Treasury the State
Child Care Capital Outlay Fund. Notwithstanding Section 13340 of the
Government Code, all moneys in the State Child Care Capital Outlay
Fund, including moneys deposited in that fund from any source
whatsoever, shall be continuously appropriated without regard to
fiscal year for expenditure pursuant to the provisions of this
article. The fund shall be administered by the State Allocation
Board, which may authorize the expenditure of any moneys in the fund
for capital outlay projects pursuant to Section 8277.7 or this
article. Funds in the State Child Care Facilities Fund set aside for
the purposes of providing extended day care facilities pursuant to
Section 8477 shall be transferred to the State Child Care Capital
Outlay Fund upon the effective date of the act amending this section
in the 1997-98 Regular Session.
(b) The Superintendent of Public Instruction shall establish the
qualifications to determine the eligibility of child care and
development agencies, including those that provide preschool and
extended day care services, to lease relocatable facilities under
this section.
(c) Although primary use of relocatable facilities shall be for
child care and development programs, including preschool and extended
day care programs, those facilities may be used for other purposes
if the following conditions are met:
(1) The alternative use of the facility does not infringe upon the
accessibility of child care and development programs including
preschool or extended day care programs.
(2) The Superintendent of Public Instruction authorizes
alternative use as being compatible with child care and development
programs, including preschool or extended day care programs.
(d) The State Allocation Board, with the advice of the
Superintendent of Public Instruction, may do all of the following:
(1) Establish any procedures and policies in connection with the
administration of this section that it deems necessary.
(2) Adopt any rules and regulations for the administration of this
section requiring those procedures, forms, and information that it
deems necessary.
(3) Have constructed, furnished, equipped, or otherwise require
whatever work is necessary to place relocatable facilities for child
care and development services, including preschool and extended day
care services where needed.
(e) The board shall lease relocatable facilities to qualifying
agencies providing child care and development services, including
preschool or extended day care services, and shall charge rent of one
dollar ($1) per year. The board shall require lessees to undertake
all necessary maintenance, repairs, renewal, and replacement to
ensure that a project is at all times kept in good repair, working
order, and condition. All costs incurred for this purpose shall be
borne by the lessee. Neither the board nor the state shall assume any
responsibility for utility services costs other than initial
installation costs reimbursed under this article, and the agency
shall provide adequate safeguards to protect the state's interest in
this regard.
(f) The board shall require lessees to insure at their own expense
for the benefit of the state, any leased relocatable facility that
is the property of the state, against any risks, including liability
from the use thereof, in the amounts the board deems necessary to
protect the interests of the state. Neither the board nor the state
shall assume any responsibility for utility services costs other than
initial installation costs reimbursed under this article, and the
agency shall provide adequate safeguards to protect the state's
interest in this regard.
(g) No relocatable facilities shall be made available to an agency
unless the agency furnishes evidence, satisfactory to the board,
that the agency has no other facility available for rental, lease, or
purchase in the geographic service area that is economically or
otherwise feasible.
(h) The board shall have prepared for its use, performance
specifications for relocatable facilities and bids for their
construction that can be solicited from more than one responsible
bidder. The board shall from time to time solicit bids from, and
award to, the lowest responsible competitive bidder, contracts for
the construction or purchase of relocatable facilities that have been
approved for lease to eligible agencies that provide child care and
development services, including preschool or extended day care
services.
(i) If at any time the board determines that a lessees' need for
particular relocatable facilities that were made available to the
lessee pursuant to this article has ceased, the board may take
possession of the relocatable facilities and may lease them to other
eligible contracting agencies, or, if there is no longer a need for
the relocatable facilities, the board may dispose of them to public
or private parties in the manner it deems to be in the best interests
of the state.
(j) If a lessee uses a particular relocatable facility for only a
portion of the year, the board may enter into a second lease with a
public or private party for the use of that facility for the portion
of the year during which the facility would otherwise be unused, in
the manner it deems to be in the best interests of the state. The
lessee shall be subject to subdivisions (d) and (f).

8495.1. (a) The State Allocation Board shall establish regulations
for the allocation of funds for capital outlay and for the
reimbursement of initial utility installation costs for purposes of
this chapter. The Superintendent of Public Instruction shall
establish qualifications for determining the eligibility of agencies
providing child care and development services, including preschool
and extended day care service, to apply for these funds.
(b) Notwithstanding any other provision of law, except for Section
8477, priority in funding of capital outlay grants or relocatables
from funds administered pursuant to Section 8277.7 and under this
article, shall be determined in the following order:
(1) Programs experiencing emergencies as defined by the
Superintendent of Public Instruction and the State Allocation Board.
(2) Facilities lost due to the Class Size Reduction Program
(Chapter 6.10 (commencing with Section 52120) of Part 28).
(3) Expansion of child care services.

8496. The State Allocation Board may use an amount not to exceed
four hundred thousand dollars ($400,000), or 4 percent of the total
funds available for the purposes of this article, whichever is less,
in any given fiscal year for necessary administrative costs incurred
pursuant to this article, including, but not limited to, the
establishment of new administrative positions.

8498. (a) The State Allocation Board may use up to 5 percent of any
appropriation for the purposes of this article to provide loans to
private nonsectarian child care and development programs not under
contract with the department for renovation and repair of existing
program facilities, in accordance with this section.
(b) The Superintendent shall establish qualifications to determine
the eligibility of child care agencies for loans pursuant to this
section.
(c) The board, with any necessary assistance from the
Superintendent, may do any of the following:
(1) Establish procedures and policies in connection with the
administration of this section it deems necessary.
(2) Adopt rules and regulations for the administration of this
section requiring procedure, forms, and information it deems
necessary.
(d) A recipient of a loan pursuant to this section shall do all of
the following:
(1) Document that the renovated facility shall comply with all
laws and regulations applicable to child care facilities provided for
pursuant to Chapter 3.4 (commencing with Section 1596.70) and
Chapter 3.5 (commencing with Section 1596.90) of Division 2 of the
Health and Safety Code.
(2) Demonstrate to the satisfaction of the board that it will have
sufficient revenues to pay the principal and interest on the loan
and to maintain the operation of the child care facility.
(e) A recipient of a loan pursuant to this section shall assure
the board that the renovated facility shall be used for purposes of
the child care and development program for the following periods:
(1) For loans equal to or less than thirty thousand dollars
($30,000), not less than three years from the beginning of the loan
period.
(2) For loans exceeding thirty thousand dollars ($30,000), the
fixed period of time shall increase one year for each additional ten
thousand dollars ($10,000) or part thereof, to a maximum of fifty
thousand dollars ($50,000).
(f) The board shall set the period of the loan for each recipient,
up to a maximum of 10 years, based upon the amount of the loan, the
recipient's ability to repay the loan, and the length of time the
recipient has committed to use the renovated facility for purposes of
the child care and development program.
(g) Interest on the loan principal shall be charged at a rate
equal to the average of the interest rate applied to the last three
bond sales pursuant to Chapter 21.6 (commencing with Section 17695)
of Part 10.
(h) In the event that a recipient ceases to use the renovated
facility for purposes of the child care and development program prior
to the expiration of the period specified pursuant to subdivision
(e), the board shall collect the entire outstanding balance of the
loan, plus interest, notwithstanding the loan period originally set
pursuant to subdivision (f).