SB540: Bill Text

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.

WHEFA may issue bonds to finance any qualifying capital project of an eligible entity. The types of projects which may be financed are set forth in the statutes. Upon completion of the project, WHEFA may collect rents and revenues sufficient to cover the principal and interest on the bonds and administrative expenses. There is no limit on the total volume of bonds which WHEFA may issue annually.

SB540, s. 20 Section 20. Nonstatutory provisions; health and social services.

SB540,17,8 (1) Safe and affordable child care. The secretary of health and social services shall submit to the legislature, in the manner provided under section 13.172 (2) of the statutes, a proposal which will ensure that safe and affordable child care is available for all children of low-income parents upon replacement of the aid to families with dependent children program under section 49.19 of the statutes. The proposal shall be submitted as an amendment to the proposal for welfare reform required under 1993 Wisconsin Act 99, section 112. The proposal shall include all of the following:

SB540,17,13 (a) An estimate of the total number of children in each county who will be in need of child care services after the replacement of the aid to families with dependent children program and the number of those children who will be in need of child care services due to the replacement of the aid to families with dependent children program.

SB540,17,17 (b) An estimate of the total capacity of the group day care centers and family day care homes in each county which are licensed or certified in 1995 and the capacity available to serve the additional children who will be in need of child care services due to the replacement of the aid to families with dependent children program.

SB540,17,20 (c) An estimate of the minimum, maximum and average hourly rates for child care for infants, toddlers and preschoolers in group day care centers and family day care homes in each county in 1995.

SB540,18,2 (2) Child care program consolidation. The secretary of health and social services shall submit to the legislature, in the manner provided under section 13.172 (2) of the statutes, a proposal for the consolidation of all child care programs administered by the department of health and social services under a uniform automated voucher system. The proposal shall be submitted as an amendment to the proposal for welfare reform required under 1993 Wisconsin Act 99, section 112.

Note: Requires the secretary of health and social services to submit to the legislature, as an amendment to its plan to replace the AFDC program by December 31, 1998, a proposal which will ensure that safe and affordable child care is available for all children of low-income parents upon replacement of the AFDC program. 1993 Wisconsin Act 99 provides that, by no later than December 31, 1995, the secretary of health and social services shall submit the AFDC replacement plan to the legislature. This bill requires the secretary to include in the child care proposal an estimate of: (1) the total number of children in each county who will be in need of child care services after the replacement of the AFDC program and the number of those children who will be in need of child care services due to the replacement of the AFDC program; (2) the total capacity of the group day care centers and family day care homes in each county which are licensed or certified in 1995 and the capacity available to serve the additional children who will be in need of child care services due to the replacement of the AFDC program; and (3) the minimum, maximum and average hourly rates for care for infants, toddlers and preschoolers in group day care centers and family day care homes in each county in 1995.

The bill also requires the secretary of health and social services to submit to the legislature, as an amendment to the AFDC replacement plan, a proposal for the consolidation of all child care programs administered by DHSS under a uniform automated voucher system.

SB540,18,13 (3) Child care funding information rules. The department of health and social services shall promulgate rules that require county departments under sections 46.215, 46.22 and 46.23 of the statutes to collect from parents who are placed on a waiting list, under section HSS 55.73 (7) of the Wisconsin administrative code, for child care funding under section 46.98 of the statutes information regarding the number of children for whom the parent needs day care funds and the ages of those children. The rules shall also require county departments to remove from the waiting list parents who have been on the waiting list for an amount of time specified by the department. The department shall submit the proposed rules to the legislative council staff under section 227.15 (1) of the statutes by no later than July 1, 1996.

Note: Requires DHSS to promulgate additional rules which require county departments to collect information from parents who are placed on a waiting list for state allocated day care funds regarding the number of children for whom the parent needs day care funds and the ages of those children. The bill also requires county departments to remove from the waiting list parents who have been on the waiting list for an amount of time which DHSS must specify. DHSS is required to submit the proposed rules to the legislative council staff, which is the first step in the rule-making process, by no later than July 1, 1996.

Under current administrative rules, if state-allocated day care funding is not sufficient to meet the needs of all parents in a county who are eligible for that funding, the county department is required to establish a waiting list. The waiting list must include the parent's name, address and telephone number and the date the parent applied to receive day care funds. The county department must place a parent's name on the waiting list when an application is received by telephone or in writing if it appears likely that the parent is eligible for day care funds. Documentation of eligibility is not required. The county department must submit information to DHSS every 6 months on the number of parents on the waiting list according to category of eligibility.

SB540,19,13 (4) Outdoor play space exemption rules. The department of health and social services shall promulgate rules that establish the procedure under which an applicant for a license to operate a group day care center or family day care home may obtain an exemption from the outdoor play space requirements in sections HSS 45.05 (11) and 55.33 (11), Wisconsin administrative code, and the requirements, if any, in addition to those specified in this subsection that an applicant must meet to obtain such an exemption. Those rules shall permit the department to grant an exemption to an applicant who has submitted an outdoor play space plan if the plan provides an alternative to on-site outdoor play space that is safe, provides for adequate supervision of the children and meets any other requirements established by the department. The department shall submit proposed rules establishing the requirements and procedure for granting the exemptions to the legislative council staff under section 227.15 (1) of the statutes by no later than July 1, 1996.

Note: Requires DHSS to promulgate rules which establish the procedure under which an applicant for a license to operate a group day care center or a family day care home may obtain an exemption from the outdoor place space requirements in ss. HSS 45.05 (11) and 55.33 (11), Wis. adm. code, and the requirements, if any, in addition to those specified in this bill that an applicant must meet to obtain such an exemption. The bill requires DHSS to grant an exemption to an applicant who has submitted an outdoor play space plan if the plan provides an alternative to on-site outdoor play space which is safe, provides for adequate supervision of the children and meets any other requirements established by DHSS. DHSS is required to submit the rules establishing the requirements and procedure for granting the exemptions to the legislative council staff, which is the first step in the rule-making process, by no later than July 1, 1996.

SB540, s. 21 Section 21. Nonstatutory provisions; industry, labor and human relations.

SB540,20,11 (1) The department of industry, labor and human relations shall, in consultation with the office of child care in the department of health and social services, promulgate rules permitting children under the age of 24 months to be provided care in a group day care center on a floor other than the first floor or ground floor. In promulgating those rules, the department shall consider whether there are circumstances in which children under the age of 24 months can be safely cared for in a day care setting on a floor other than the first floor or ground floor. The department of industry, labor and human relations shall submit the proposed rules required under this subsection to the legislative council staff under section 227.15 (1) of the statutes by no later than July 1, 1996.

Note: Requires DILHR, in consultation with the office of child care in, DHSS, to promulgate rules permitting children under the age of 24 months to be provided care in a group day care center on a floor other than the first floor or ground floor. Under s. ILHR 60.31 (6), Wis. adm. code, children under the age of 24 months are required to remain on the first floor or ground floor of a child day care facility. In promulgating the rules, DILHR must consider whether there are circumstances in which children under the age of 24 months can be as safely cared for in a day care setting on a floor other than the first floor or ground floor. DILHR is required to submit the rules to the legislative council staff, which is the first step in the rule-making process, by no later than July 1, 1996.

SB540, s. 22 Section 22. Appropriation changes.

SB540,20,17 (1) In the schedule under section 20.005 (3) of the statutes for the appropriation to the department of education under section 20.255 (1) (a) of the statutes, as affected by the acts of 1995, the dollar amount is increased by $8,400 for fiscal year 1996-97 to increase the authorized FTE positions for the department by 0.5 position for the purpose of administering the child care worker loan repayment assistance program.

Note: Creates a 0.5 FTE position in DOE for fiscal year 1996-97 for the purpose of administering the child care worker loan repayment assistance program. See the note following Section 5 for a description of this program.

SB540, s. 23 Section 23. Initial applicability; public instruction.

SB540,21,3 (1) Transportation aid. The treatment of sections 121.54 (2) (am) and 121.58 (2) (b) of the statutes first applies to the payment of transportation aid in the 1996-97 school year.

SB540, s. 24 Section 24. Effective dates. This act takes effect on the day after publication, except as follows:

SB540,21,8 (1) Child care worker loan repayment assistance program. The amendment of section 39.385 (1) (intro.) and (2) (intro.) and (a) of the statutes takes effect on July 1, 1996.

SB540,21,11 (2) Local early childhood council grant program. The treatment of sections 20.435 (3) (cr), 46.031 (4) and 46.983 of the statutes takes effect on July 1, 1996, or on the day after publication, whichever is later.

SB540,21,12 (End)