SB 175 — CHILD CARE FACILITY LOAN FUND CHANGES

SENATE TAX, BUSINESS AND TRANSPORTATION COMMITTEE SUBSTITUTE FOR SENATE BILL 175 57TH LEGISLATURE -STATEOFNEWMEXICO- FIRST SESSION, 2025 4 6 8 10 AN ACT RELATING TO ECONOMIC DEVELOPMENT;

EXPANDING USES OF e t 17 THE LOANS.

w l n d 18 = = 19 a l BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

i a e r 20 SECTION 1.

Section 24-24-3 NMSA 1978 (being Laws 2003, a t m m 21 Chapter 316, Section 3, as amended) is amended to read:

d r e 22 "24-24-3.

DEFINITIONS.--As used in the Child Care c e s k 23 Facility Loan Act:

e a n b 24 A.

"authority" means the New Mexico finance u [ authority;

.230674.1 STBTC/SB 175 [A.] B.

[B.] C.

[C.] D.

[D.] E.

"operating capital" means funds needed to meet STBTC/SB 175 Page 1 short-term obligations, such as accounts payable, wages, debt servicing, lease and income tax payments;

and [E.] F.

Section 24-24-4 NMSA 1978 (being Laws 2003, e t 17 Chapter 316, Section 4, as amended) is amended to read:

w l n d 18 "24-24-4.

FUND CREATED--ADMINISTRATION.-- = = 19 A.

The "child care facility revolving loan fund" is a l i a e r 20 created in the [New Mexico finance] authority to provide low-low-interest, a t m m 21 interest, long-term loans to providers to make health and d r e 22 safety improvements in their facilities, expand their c e s k 23 facilities, create new facilities and for operating capital.

e a n b 24 The fund shall consist of appropriations, gifts, grants and u [ donations to the fund, which shall be invested as provided in .230674.1 - 2 - STBTC/SB 175 the New Mexico Finance Authority Act.

[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.

and to providers seeking to create new child care STBTC/SB 175 Page 2 facilities, including for employers to create child care facilities for the employer's employees.

e t 17 C.

The department and the authority may contract w l n d 18 for services with an eligible provider to provide child care = = 19 for child care assistance eligible families as reasonably a l i a e r 20 adequate legal consideration for money from the fund;

provided a t m m 21 that within a period of time prescribed in the contract of d r e 22 disbursement of the loan, the provider:

c e s k 23 (1) is located in a designated child care e a n b 24 desert;

u [ (2) provides care during non-traditional .230674.1 - 3 - STBTC/SB 175 hours;

[C.] D.

The STBTC/SB 175 Page 3 department shall give priority for loans to [facilities of] providers that serve proportionately high numbers of state-state-subsidized subsidized clients and low-income families that are located in communities with high poverty rates and that provide nontraditional-hour child care.

e t 17 [D.] E.

The department, in conjunction with the w l n d 18 [New Mexico finance] authority, shall adopt rules to administer = = 19 and implement the Child Care Facility Loan Act, including a l i a e r 20 providing for eligibility requirements and for the selection of a t m m 21 applicants based on department-defined priority.

The rules d r e 22 shall become effective when filed in accordance with the State c e s k 23 Rules Act." eSTBTC/SB a175 nPage b 24 - 4 -25 u [ .230674.1