SB540: Bill Text

SB540,10,18 2. Foster coordination and communication between providers of child care and early childhood education, employers, the local public schools, parents and other appropriate individuals and organizations in the community to maximize the accessibility and quality of, and to minimize duplication in, the programs and services that are available in the community for young children and their families.

SB540,10,21 3. Promote and increase public awareness of the characteristics and importance of high-quality child care and early childhood education for young children.

SB540,10,24 (d) Advise the county department under s. 46.215, 46.22 or 46.23 on the development of the county department's proposed budget for the expenditure of funds allocated under s. 46.40.

SB540,11,5 (5) Membership of local early childhood councils. Membership on a local early childhood council funded under this section shall be open to all persons and organizations in the community with a demonstrated interest in or knowledge of child care, early childhood education or other services for young children and their families and shall include all of the following persons as members:

SB540,11,6 (a) One or more parents of young children.

SB540,11,7 (b) One or more providers of family child care.

SB540,11,8 (c) One or more providers of center-based child care.

SB540,11,9 (d) One elected county official.

SB540,11,10 (e) One or more representatives of each of the following:

SB540,11,11 1. A local employer.

SB540,11,12 2. The local school district.

SB540,11,14 3. The county department receiving child care funds under s. 46.98 and any entity administering those funds if different from the county department.

SB540,11,15 4. The local health department, as defined in s. 250.01 (4).

SB540,11,17 5. A local agency providing child care resource and referral services funded by a grant under s. 46.984.

SB540,11,19 (6) Rules. The department, in consultation with the department of education, shall promulgate rules to implement this section.

Note: Establishes a local early childhood council grant program and appropriates $100,000 GPR for the program in the 1996-97 fiscal year.

Under the bill, a body consisting of 2 representatives of the department of health and family services (DHFS), 2 representatives of the department of industry, labor and job development (DILJD) and 2 representatives of the department of education (DOE) shall evaluate applications and award grants for the establishment or operation, or both, of local early childhood councils. Any public agency or private, nonprofit organization may apply for a grant.

The bill requires a grant recipient to match the grant or secure a match from local sources, through money or in-kind services, or both, as follows:

1. During the first year of the grant, in the amount of at least 25% of the amount received for that year.

2. During the 2nd and subsequent years of the grant, in the amount of at least 50% of the amount received for each year.

Each application for a grant must include proof of the applicant's ability to provide the local match required by the bill. In addition, any in-kind services proposed to be used as part of the required local match are subject to the approval of the grant-awarding body.

The bill specifies that amounts granted are to be used for the establishment or operation, or both, of a local early childhood council. Membership in a council is open to all persons and organizations in the community with a demonstrated interest or knowledge of child care, early childhood education or other services for young children and their families. At a minimum, a local early childhood council must include all of the following as members:

1. One or more parents of young children.

2. One or more providers of family child care.

3. One or more providers of center-based child care.

4. One elected county official.

5. One or more representatives of each of the following:

a. A local employer.

b. The local school district.

c. The county department.

d. Any entity with which the county department contracts to administer child care funds.

e. The local health department.

f. A local agency providing child care resource and referral services.

Under the bill, a local early childhood council funded under the grant program must do all of the following:

1. Designate an individual to serve as the facilitator of the local early childhood council.

2. Conduct an assessment of existing child care and early childhood education programs and other services for young children and their families in the community.

3. Conduct an assessment of the need for child care and early childhood education programs and other services for young children and their families available in the community.

4. Develop a plan to do all of the following:

a. Increase the supply and accessibility of high-quality child care and early childhood education programs in the community.

b. Foster coordination and communication between providers of child care and early childhood education, employers, the local public schools, parents and other appropriate individuals and organizations in the community to maximize the accessibility and quality of programs and services that are available for young children and their families and minimize duplication in those programs and services.

5. Promote and increase public awareness of the characteristics and importance of high-quality child care and early childhood education for young children.

6. Advise the county department on the development of the county department's proposed budget for the expenditure of community aids funding.

Under the bill, when evaluating applications for grants, the grant-awarding body is required to give priority to proposals which involve the planning and participation of multiple individuals and organizations, including all of the following:

1. Child care providers.

2. Head start agencies.

3. Child care resource and referral agencies.

4. School districts.

5. Private schools.

6. Local units of government.

7. Providers of early childhood education.

8. Parents.

9. Employers.

10. Family resource centers.

11. Recipients from right from the start grants.

12. Other individuals and organizations that have demonstrated interest in, or knowledge of, child care, early childhood education or other sources for young children and their families.

The bill directs DHFS, in consultation with DOE, to promulgate rules to implement the grant program.

SB540, s. 9 Section 9. 66.521 (2) (k) 22. of the statutes is amended to read:

SB540,13,3 66.521 (2) (k) 22. Child care centers, as defined in s. 231.01 (3c), except that this subdivision does not apply on or after March 31, 1994.

Note: Authorizes cities, villages and towns to issue bonds to provide financing to nonprofit child care centers. Specifically, this Section deletes the provision in current law which terminated that authority on March 31, 1994.

Industrial revenue bonds (IRB's) are municipal bonds, the proceeds of which are loaned to private persons or to businesses to finance capital investment projects. Wisconsin statutes authorize cities, villages and towns to issue IRB's. Because IRB's are municipal bonds, the interest earned from them is exempt from the federal income tax and, thus, IRB's bear lower interest rates than other forms of borrowing.

Under current law, cities, villages and towns are authorized to issue IRB's primarily for financing the construction, enlargement or equipping of manufacturing plants and a limited number of nonmanufacturing facilities, such as facilities for nonprofit organizations [s. 66.521]. Cities, villages and towns currently are not authorized to issue IRB's to provide financing to child care centers.

IRB's issued on behalf of nonprofit [i.e., s. 501 (c) (3)] corporations are not subject to the unified volume cap which applies to other private activity bonds issued on behalf of nongovernmental persons.

SB540, s. 10 Section 10. 120.13 (36) of the statutes is created to read:

SB540,13,9 120.13 (36) Prekindergarten and kindergarten program agreements. Enter into an agreement with a licensed public or private nonsectarian day care center to lease space for prekindergarten or kindergarten programs offered by the school district or to place school district employes in day care centers to provide instruction in prekindergarten or kindergarten programs offered by the school district.

Note: Authorizes school boards to enter into agreements with licensed public or private nonsectarian day care centers for the following purposes: (1) to lease space for prekindergarten or kindergarten programs offered by the school district; and (2) to place school district employes in a day care center to provide instruction in prekindergarten or kindergarten programs offered by the school district.

SB540, s. 11 Section 11 . 121.54 (2) (am) of the statutes is created to read:

SB540,14,5 121.54 (2) (am) In lieu of transporting a pupil who is eligible for transportation under par. (a) to and from his or her residence, a school district may transport the pupil to or from, or both, a before- and after-school day care program under s. 120.125, a day care program under s. 120.13 (14) or any other day care program, family day care home or child care provider.

Note: This Section and Section 12 authorize the payment of state transportation aid to school districts which transport pupils between school and a day care program or other child care provider in lieu of transporting the pupil between school and home.

SB540, s. 12 Section 12 . 121.545 (2) of the statutes is amended to read:

SB540,14,15 121.545 (2) A school board may provide transportation for children residing in the school district whom the school district is not required to transport under s. 121.54 to or from, or both, a before- and after-school day care program under s. 120.125, a prekindergarten class under s. 120.13 (13), a day care program under s. 120.13 (14) or any other day care program, family day care home, child care provider or prekindergarten class. The school board may charge a fee for the cost of providing such transportation. The school board may waive the fee or any portion of the fee for any person who is unable to pay the fee. State aid shall not be provided for transportation under this subsection.

Note: See the note following Section 11.

SB540, s. 13 Section 13. 121.58 (2) (b) of the statutes is created to read:

SB540,14,22 121.58 (2) (b) A school board that provides transportation under s. 121.54 (2) (am) shall be paid state aid for such transportation at the rates specified and according to the conditions established under par. (a), except that the amount of state aid may not exceed the amount which the school district would receive for transporting the child between the child's residence and school attended under s. 121.54 (1) to (3), (5), (6) or (9) or 121.57.

Note: Specifies that the amount of state transportation aid provided to a school district which transports a child to or from a day care program or other child care provider in lieu of home may not exceed the amount of state transportation aid which the school district would receive for transporting the child from his or her residence to the school attended.

SB540, s. 14 Section 14. 231.01 (3c) (c) and (d) of the statutes are repealed.

Note: Changes the definition of "child care center" within ch. 231, which governs the operation of the WHEFA. Specifically, this Section deletes provisions which limit the definition of "child care center" within that chapter to centers which: (1) are located in a commercial or industrial park of a city, village or town; and (2) provide child care services to a significant number of persons employed by businesses located in the commercial or industrial park in which it is located.

See the note following Section 19 for a description of other provisions of the bill affecting WHEFA.

SB540, s. 15 Section 15 . 231.03 (6) (e) of the statutes is amended to read:

SB540,15,4 231.03 (6) (e) Finance any project undertaken for a child care center by a child care provider, except that this paragraph does not apply on or after March 31, 1994.

SB540, s. 16 Section 16 . 231.03 (6) (f) of the statutes is amended to read:

SB540,15,7 231.03 (6) (f) Refinance outstanding debt of any participating child care provider, except that this paragraph does not apply on or after March 31, 1994.

SB540, s. 17 Section 17. 231.03 (13) of the statutes is amended to read:

SB540,16,2 231.03 (13) Make loans to any participating health institution, participating educational institution or, before March 31, 1994, participating child care provider for the cost of a project in accordance with an agreement between the authority and the participating health institution, participating educational institution or participating child care provider. The authority may secure the loan by a mortgage or other security arrangement on the health facility, educational facility or child care center granted by the participating health institution, participating educational institution or participating child care provider to the authority. The loan may not exceed the total cost of the project as determined by the participating health institution, participating educational institution or participating child care provider and approved by the authority.

SB540, s. 18 Section 18 . 231.03 (14) of the statutes is amended to read:

SB540,16,10 231.03 (14) Make loans to a health facility, educational facility or, before March 31, 1994, child care center for which bonds may be issued under sub. (6) (b), (d) or (f) to refinance the health facility's, educational facility's or child care center's outstanding debt. The authority may secure the loan or bond by a mortgage or other security arrangement on the health facility, educational facility or child care center granted by the participating health institution, participating educational institution or participating child care provider to the authority.

SB540, s. 19 Section 19 . 231.16 (3) of the statutes is amended to read:

SB540,16,15 231.16 (3) All bonds issued under this section shall be subject to this chapter in the same manner and to the same extent as other bonds issued pursuant to this chapter, except that the limitations with respect to dates under s. 231.03 (6) (e) and (f) and (14) do not apply to bonds issued under this section.

Note: This Section and Sections 15, 16 and 18 authorize WHEFA to issue bonds to provide financing to nonprofit child care centers.

WHEFA assists nonprofit health care and educational institutions by issuing bonds on their behalf to finance capital costs. Under federal law, interest earned on the bonds is exempt from federal income taxation and, thus, WHEFA can market the bonds at lower interest rates, thereby reducing the cost of borrowing to health and educational facilities. Any corporation which is exempt from federal income taxation under s. 501 (c) (3) of the internal revenue code (IRC) (i.e., a nonprofit corporation) is eligible to take advantage of the federal tax exemption. However, federal law requires each state to designate a governmental entity to issue bonds and to specify the types of nonprofit corporations in the state on whose behalf the entity may issue bonds [s. 103, IRC]. Chapter 231 designates WHEFA as the entity to issue bonds in Wisconsin and specifies the types of entities on whose behalf it may issue bonds. WHEFA currently is not authorized to issue bonds on behalf of child care centers.