AN ACT
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;
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 New Mexico finance authority 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 provided in the New Mexico Finance Authority
Act. Money in the fund shall not revert
and is appropriated to the department, which shall utilize the fund for the
purposes of the Child Care Facility Loan Act.
Administrative costs of the authority may be paid from the fund. Expenditures from the fund for loans to
providers 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 lowest legally permissible 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.
D. The department, in conjunction with the New
Mexico finance authority, shall adopt rules to administer and implement the
Child Care Facility Loan Act. The rules
shall become effective when filed in accordance with the State Rules Act.
Section 5.
EMERGENCY.--It is necessary for the public peace, health and safety that
this act take effect immediately.