HB 290 — CHILD CARE FACILITY LOAN FORGIVENESS

HOUSE BILL 290 56TH LEGISLATURE -STATEOFNEWMEXICO-- STATEOFNEWMEXICO- SECOND SESSION , 2024 INTRODUCED BY Linda Serrato 6This 8document 10may ANincorporate ACTamendments RELATINGproposed TOby ECONOMICa DEVELOPMENT;committee, but not yet adopted, as well as amendments that have been adopted during the current legislative session.

ALLOWINGThe FORdocument THEis FORGIVENESSa OFtool LOANSto MADEshow TOamendments CERTAINin BORROWERScontext PURSUANTand TOcannot THEbe CHILDused CAREfor FACILITYthe LOANpurpose ACT;of adding amendments to legislation.

h AN ACT g o RELATING TO ECONOMIC DEVELOPMENT;

HCEDCºALLOWING FOR THE t hr g e i k FORGIVENESS OF LOANS MADE TO CERTAIN BORROWERS PURSUANT TO THE h r i s CHILD CARE FACILITY LOAN ACT»HCEDC HCEDCºALLOWING THE EARLY h , t, CHILDHOOD EDUCATION AND CARE DEPARTMENT AND THE NEW MEXICO e u g e b l e e h FINANCE AUTHORITY TO CONTRACT FOR SERVICES WITH PROVIDERS OR n d d i = = o h EMPLOYERS SEEKING TO CREATE OR EXPAND CHILD CARE PROGRAMS FOR l ] b ,d i a º e THEIR EMPLOYEES»HCEDC ;

EXPANDING USES OF r i = r t e w d m a n o THE LOANS;

16d BEm IT: ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

b e d s º o t 17n SECTION= 1..226668.5AIC February 7, 2024 (6:41pm) s k m e e a n e d r e l u [ A d BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

SectionSECTION 24-24-41. NMSA 1978 (being Laws 2003, w l n d 18 Chapter 316, Section 4, as amended) is amended to read:

=Section =24-24-4 19NMSA a1978 l(being "24-24-4.Laws 2003, Chapter 316, Section 4, as amended) is amended to read:

FUND"24-24-4. CREATED--ADMINISTRATION.-- i a e r 20 A.

TheFUND "childCREATED--ADMINISTRATION.-- careA. facility revolving loan fund" is a t m m 21 created in the New Mexico finance authority to provide low- d r e 22 interest, long-term loans to providers to make health and c e s k 23 safety improvements in their facilities and for operating e a n b 24 capital.

The fund"child shallcare consistfacility ofrevolving appropriations,loan gifts,fund" uis [created grantsin andthe donationsNew Mexico finance authority to theprovide fund,low- whichinterest, shalllong-term beloans investedto asproviders .226668.5to providedmake health and safety improvements in thetheir Newfacilities Mexicoand Financefor Authorityoperating Act.capital.

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 be used to make loans to h g providers that demonstrate the need to make health and safety o t hr improvements, including space expansion, in order to maintain g e i k an adequate and appropriate environment for their clients;

to h r i s h providers andHCEDCºand facilitiesfacilities»HCEDC seeking to expand child , t, e u g care programs;

and to employers to create or expand child care e b l e e h programs for their employees.employees HCEDCº, and for the department and n d d i = = o h the New Mexico finance authority to contract for services with l ] b ,d i a º e r i = r providers and employers seeking to create or expand child care t e w d m a n o programs for their employees»HCEDC .

Loans from the fund are tod bem made: at an interest rate greater than zero percent for a term that does not exceed the useful life of the project being financed.

b e d s º o t n = .226668.5AIC February 7, 2024 (6:41pm) s k m e - 2 - e a n e d r e l u [ A d to be made at an interest rate greater than zero percent for a term that does not exceed the useful life of the project being financed.

The e t 17 department shall give priority for loans to facilities of w l n d 18 providers that serve proportionately high numbers of state- = = 19 a l subsidized clients and low-income families.

i a e r 20 D.

TheHCEDCºThe department shall provide in a contract that a t m m 21 a loan made to a provider, facility or employer to expand child d r e 22 care programs or to an employer to create or expand child care c e s k 23 programs pursuant to Subsection B of this section shall be eforgiven;»HCEDC HCEDCºThe department and the New Mexico finance authority shall enter into a ncontract bfor 24services forgiven;with a provider or an employer seeking to create or expand child care programs for their employees;»HCEDC provided that, within five years of disbursement of the loan, the provider HCEDCº, h u facility»HCEDC or employer:

provided» that,r withint fiveh years(1) demonstrates that at least fifty percent g e l i of disbursementthe children that the provider HCEDCº, facility»HCEDC or h r i s h , employer serves are recipients of a child care assistance e h t u [g theprogram loan,expanded or created by the provider,provider facilityHCEDCº, e b l e e , gh facility»HCEDC or employer:employer;

.226668.5n -d 2d -i (1)= demonstrates= thato ath leastl fifty] percentb of,d the(2) childrendemonstrates that the provider,number facilityof orchildren employeri servesa areº recipientsr ofe ar child= careserved assistanceby programthe expandedprovider HCEDCº, facility»HCEDC or createdemployer byt thee provider,w facilityd orm employer;a n o d m :

(2)b demonstratesr thate thet numberº ofo childrent servedn by= the.226668.5AIC provider,February facility7, or2024 employer(6:41pm) s k m e - 3 - e a n e d r e l u [ A d increased by twenty-five percent;

APPROPRIATION.--One million seven hundred e t 17 fifty thousand dollars ($1,750,000) is appropriated from the w l n d 18 general fund to the department of finance and administration = = 19 a l for expenditure in fiscal year 2025 and subsequent fiscal years i a e r 20 for the New Mexico finance authority to carry out the purposes a t m m 21 of the child care facility revolving loan fund.

Any unexpended d r e 22 or unencumbered balance remaining at the end of a fiscal year c e s k 23 shall not revert to the general fund.

h - 4 - u » r t h g e al i h r i s h , e h t u g e b l e e , gh n d d i = = o h l ] b 24,d -i 3a -º ur [e .226668.5r = t e w d m a n o d m :

b r e t º o t n = .226668.5AIC February 7, 2024 (6:41pm) s k m e e a n e d r e l u [ A d