Establishing a child care future zones program and fund within the economic development authority to award financial assistance to eligible persons involved in child care

The bill establishes a child care future zones fund (fund) in the state treasury under the control of the authority consisting of any moneys appropriated by the general assembly and any other moneys available and obtained or accepted by the authority for placement in the fund. The fund is to be used to provide financial assistance to persons under the child care future zones program (program). The authority must use any moneys specifically appropriated for purposes of the program only for the purposes of the program. The bill defines “financial assistance” as assistance provided only from the funds, rights, and assets legally available to the authority and includes but is not limited to assistance in the form of tax incentives, tuition reimbursement, low-interest loans, and grants. Moneys in the fund at the end of each fiscal year do not revert to any other fund but must remain in the fund for expenditures for subsequent fiscal years. Interest or earnings on moneys in the fund accrue to the authority to be used for purposes of the program. All repayments, payments of interest, or recaptures of financial assistance provided under the program accrue to the authority for purposes of the program. The authority cannot use more than percent of the moneys in the fund at the beginning of the fiscal year for purposes of administrative costs, marketing, and other program support. The bill directs the authority to establish and administer a child care future zones program to provide financial assistance to eligible persons who own, or work in, a child care-related business in a child care future zone; or who are enrolled in an early childhood development degree program and currently work in, or have committed to work in, a child care future zone. A person seeking financial assistance under the program must apply to the authority pursuant to rules adopted by the authority. The authority, in consultation with the department of human services, must adopt rules to implement and administer the bill provisions. The rules must, at a minimum, provide for the identification and designation of child care future zones; the requirements for a person to be eligible to apply to the program; the requirements for a person to be eligible for specific types of financial assistance as detailed in the bill; the application process for applying to the program; and the maximum financial assistance any one person may be awarded on an annual or aggregate basis. The bill directs the director of the department of administrative services, or the director’s designee, to conduct an analysis of the legality and feasibility of offering enrollment in the state of Iowa’s employee group health plan to nonemployees as a type of financial assistance available under the program. The director must submit the finding to the general assembly no later than January 31, 2021. The bill directs the authority to include the program as one of the authority’s goals and objectives, and seek an allocation of community development block grant (CDBG) funds for the fund, in the authority’s 2020 annual CDBG action plan submission to the United States department of housing and urban development.