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90_HB0420
New Act
30 ILCS 105/5.449 new
Creates the Child Care Capital Development Act. Creates
the Child Care Capital Development Fund Advisory Council to
provide guidance to the Illinois Facilities Fund. Provides
that the Illinois Facilities Fund shall create a loan program
to make loans to nonprofit child care providers in Illinois
for the purpose of improving or expanding facilities that
serve low-income working parents. Provides that money in the
Child Care Capital Development Fund will be used to open the
Illinois Facilities Fund. Amends the State Finance Act to
create the Child Care Capital Development Fund. Effective
July 1, 1997.
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1 AN ACT in relation to a Child Care Development Fund.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 1. Short title. This Act may be cited as the
5 Child Care Capital Development Act.
6 Section 5. Legislative intent. The General Assembly
7 finds that in this State the following conditions exist:
8 (1) in a significant number of low-income families both
9 the mother and father work full or part-time;
10 (2) there is an extreme shortage of appropriate and
11 affordable facilities for child care in low-income
12 neighborhoods;
13 (3) there is an inadequate supply of capital funds
14 available to nonprofit child care providers operating in
15 low-income neighborhoods;
16 (4) the quality of the facility has significant impact
17 on the learning ability of the children and the quality of
18 the child care program;
19 (5) the inability to have accessible and affordable
20 child care impairs the ability of families to properly care
21 for their children and to achieve their full earnings
22 potential;
23 (6) an increase in the availability of quality child
24 care will improve the ability of individuals to find
25 employment opportunities that provide wages that can support
26 a family;
27 (7) State funds can be used to leverage private market
28 rate funds for the expansion of nonprofit child care
29 facilities; and
30 (8) the State's leadership may encourage private market
31 rate lenders to loan funds for the purpose of providing child
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1 care.
2 Based upon these findings it is declared that there are
3 conditions in the State that require the creation of the
4 Child Care Capital Development Fund, the moneys of which will
5 be used by the Illinois Facilities Fund, a nonprofit
6 Statewide corporation. Funds appropriated by the General
7 Assembly for this purpose will be used by the Illinois
8 Facilities Fund to create a revolving loan fund which will be
9 used to leverage other long term financing from commercial
10 lenders. The General Assembly further creates the Child Care
11 Capital Development Fund Advisory Council, to provide
12 guidance to the Illinois Facilities Fund, a Statewide
13 nonprofit agency whose purpose is to undertake community
14 development, real-estate lending, facilities development, and
15 technical assistance to nonprofit human service providers, on
16 the selection criteria and disbursement of funds.
17 Section 10. Definitions. As used in this Act:
18 "Advisory Council" means Child Care Capital Development
19 Fund Advisory Council.
20 "Child Care and Development Block Grant" means the block
21 grant established by the Child Care and Development Block
22 Grant Act of 1990, Section 5082 of the Omnibus Budget
23 Reconciliation Act of 1990, Public Law 101-508.
24 "Child care provider" or "provider" means a person that
25 provides child care:
26 (1) for less than 18 hours per day, except in
27 emergencies; and
28 (2) not in the residence of the child, unless (i)
29 the provider is the primary care giver of the child and
30 (ii) the provider also cares for other children in the
31 residence who are not related to the provider.
32 "Child care facility" means a site that is used by a
33 child care provider to provide child care.
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1 "DHS" means the Department of Human Services.
2 "DPA" means the Department of Public Aid.
3 "Fund" means the Child Care Capital Development Fund.
4 "Lender" means a federal or State chartered bank, federal
5 or State chartered savings and loan association or building
6 and loan association, small business investment company, or
7 any other institution qualified within this State to
8 originate and service loans, including, without limitation,
9 insurance companies, credit unions, and mortgage loan
10 companies.
11 Section 15. Advisory Council. The Child Care Capital
12 Development Fund Advisory Council is created within the
13 Department of Human Services. The Advisory Council shall
14 consist of 9 members, no more than 5 of whom may be of the
15 same political party, 8 of whom shall be appointed by the
16 Governor, by and with the consent of the Senate. The
17 Governor or his or her designee shall serve as a member of
18 the Advisory Council. If the Governor does not appoint these
19 members by January 1, 1998, the appointment power is
20 transferred to the Senate. The Advisory Council shall
21 consist of 2 persons with experience in real estate finance
22 who has skills in providing capital to nonprofit agencies,
23 one child care services expert who is employed by DHS, one
24 child care services expert who is employed by DPA, 2 persons
25 who represent a center-based child care provider; and 2 other
26 persons. No other person may be appointed as a member of the
27 Advisory Council who is serving as an elected officer for, or
28 an employee of, the State or any unit of local government or
29 school district within the State. The Chairperson shall be
30 elected annually from the members of the Advisory Council.
31 All members shall be residents of the State and shall be
32 knowledgeable in the fields of finance or child care. If the
33 Senate is not in session when the first appointments are
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1 made, the Governor shall make temporary appointments as in
2 the case of a vacancy. In making the first appointments, the
3 Governor shall designate 3 members to serve until January
4 1999, 3 members to serve until January 2000, and 2 members to
5 serve until January 2001, or until their successors are
6 appointed and qualified. Their successors shall be appointed
7 to serve for 3-year terms expiring on the third Monday in
8 January or until their successors are appointed and
9 qualified. Any vacancy occurring in the Advisory Council,
10 whether by death, resignation, or otherwise, shall be filled
11 by appointment by the Governor in the same manner as original
12 appointments. A member appointed to fill a vacancy shall
13 serve for the remainder of the unexpired term until his or
14 her successor is appointed and qualified. Members shall not
15 receive compensation except for reimbursement of expenses
16 directly related to their duties. Reimbursements shall be
17 made from the Child Care Capital Development Fund.
18 Section 20. Related Financial Interests. No member of
19 the Advisory Council shall be employed by, hold any official
20 relation to, or have any financial interest in any
21 corporation or entity receiving loans or grants or in any
22 corporation or entity providing services or materials to the
23 Advisory Council or to any project financed or assisted under
24 this Act.
25 Section 25. Advisory Council duties. The Advisory
26 Council shall provide guidance to the Illinois Facilities
27 Fund on the operation and management of the Fund, and on
28 guidelines, marketing, technical assistance, and outreach to
29 commercial lenders.
30 Section 30. Child Care Capital Development Fund. The
31 Child Care Capital Development Fund is created as a special
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1 fund in the State Treasury.
2 Section 35. Use of funds by the Illinois Facilities
3 Fund. The Illinois Facilities Fund shall create a revolving
4 loan program to be used exclusively to make loans to
5 nonprofit child care providers throughout Illinois for the
6 purpose of improving or expanding facilities that serve 51%
7 or more low-income working parents, with priority given to
8 nonprofit agencies working specifically with DHS and DPA on
9 welfare reform and dependency reduction programs.
10 Principal repayments shall be returned to the Fund to be
11 used in other loans meeting the criteria of the Fund.
12 Interest payments shall be used to fund the administrative
13 costs of the program, and the Illinois Facilities Fund shall
14 document actual expenses once a year and return to the Fund
15 any revenue from interest on the loans that is not required
16 to cover administrative costs. If the Illinois Facilities
17 Fund sells loans in a secondary market at any time, all
18 proceeds may only be used for the original purposes of the
19 Fund.
20 Section 95. The State Finance Act is amended by adding
21 Section 5.449 as follows:
22 (30 ILCS 105/5.449 new)
23 Sec. 5.449. The Child Care Capital Development Fund.
24 Section 99. Effective date. This Act takes effect on
25 July 1, 1997.