SENATE, No. 2264

STATE OF NEW JERSEY

INTRODUCED NOVEMBER 17, 1997

By Senator KOSCO

An Act establishing the Small-Medium Business Child Care Consortium Incentive Demonstration Program.

    Be It Enacted by the Senate and General Assembly of the State of New Jersey:

    1. The Legislature finds and declares that: the need for quality child care is of vital importance due to the growing number of single-parent households and two-career families; small and medium-sized businesses generally lack adequate resources to provide child care services to their employees; the State can play a useful and important role in the promotion of quality and adequate child care services which will benefit the well-being of children and families; the availability of quality child care allows parents the peace of mind to pursue their careers and lead active, productive, professional lives; and it is, therefore, in the public interest to establish a Small-Medium Business Child Care Consortium Incentive Demonstration Program to assist small and medium-sized businesses in providing child care to the children of their employees, and to expand the family day care model.

    2. As used in this act:

    "Authority" means the New Jersey Economic Development Authority, established pursuant to section 4 of P.L.1974, c.80 (C.34:1B-4);

    "Consortium" means a cooperative arrangement between two or more small or medium-sized businesses to provide child care for the children of the employees of those businesses entering into the cooperative arrangement;

    "Director" means the Director of the Division of Youth and Family Services in the Department of Human Services;

    "Division" means the Division of Youth and Family Services in the Department of Human Services;

    "Program" means the three-year Small-Medium Business Child Care Consortium Incentive Demonstration Program created by this act; and

    "Small or medium-sized business" means a business enterprise, which has its principal place of business in this State, with a level of gross income from operations defined by the authority as a small or medium-sized business.

    3. a. The authority shall establish a three-year Small-Medium Business Child Care Consortium Incentive Demonstration Program, hereinafter, the "program," in conjunction with the division.

    b. The program shall be designed to involve to the greatest extent possible: small or medium-sized businesses interested in establishing cooperative partnerships to develop child care centers; volunteer networks of college students, retired teachers, nurses and other persons qualified to participate in the child care program; neighborhood resources such as religious organizations and schools; community leaders; and active, involved parents of children needing child care services.

    4. a. Within six months of the effective date of this act, the authority, in consultation with the director, shall designate three consortia for the program. The authority, in consultation with the director, shall review child care center proposals submitted by consortia interested in participating in the program. Priority consideration for the selection of the participating consortia shall be given to those proposals which: use a partnership approach; use a large network of volunteers that have social, educational or professional qualifications that will further the goal of expanding child care services; and leverage moneys and in-kind contributions, including, but not limited to, physical space and equipment for the child care centers, from other public or private sources. In selecting the consortia, the authority shall select one consortium located in the southern region, one consortium located in the central region, and one consortium located in the northern region of the State.

    b. The authority, in consultation with the division, shall actively inform small and medium-sized businesses about the program. The authority shall work, in this regard, with the New Jersey Business and Industry Association, the New Jersey Chamber of Commerce, the National Federation of Independent Businesses, and any other nonprofit groups or any local, state or federal programs that provide advice or services to small and medium-sized businesses.

    c.    A consortium  may enter into contracts for child care services with sponsoring organizations including, but not limited to, nonprofit or community-based groups, community colleges, and religious organizations, in order to locate the child care center at a mutually agreed upon site and to assist with obtaining space, personnel, facilities and resources therefor, provided that such entities demonstrate that they have the professional staff with the expertise and skills to provide quality child care services.

    d.    The authority shall use standards developed by the director regarding the physical facility, staffing, record keeping and other administrative requirements for the program that promote regulatory flexibility without jeopardizing the quality and safety of child care.

    5. a. To implement the demonstration program, the authority shall establish and maintain a special revolving fund to be known as the "Small-Medium Business Child Care Consortium Incentive Demonstration Fund," hereinafter the "fund," which shall be credited with monies from any sources of funds or programs administered by the authority, such as the Statewide Loan Pool for Business, which the authority determines is necessary to effectively implement the program.

    b.    The authority shall use the moneys in the fund, within 60 days of the selection of the participating consortia pursuant to section 4 of this act, to award low-interest loans in amounts not to exceed $100,000 per consortium for child care center physical plant or facilities for the children of employees of the businesses in the consortia.

    c.    Moneys in the fund which are determined by the authority not to be needed for the current responsibilities of the fund may be invested by the authority in any direct obligations as to which the principal and interest thereof are guaranteed by the United States of America or any other obligation deemed appropriate by the authority. The authority may appoint a director to manage the activities associated with the fund. The director shall receive compensation as determined by the authority.

    6. a. The Department of Human Services shall give priority consideration for the awarding of moneys for Mini Child Care Center Project Grants to consortia participating in the program who use a volunteer network in addition to professional child care personnel in the delivery of child care services and demonstrate a need for training.

    b.    The division shall establish a training program for volunteers who shall provide services to the consortia participating in the program.

    7. No later than six months before the expiration of this act, the authority, in consultation with the director, shall report to the Legislature and the Governor on the effectiveness of the program and present recommendations regarding the advisability and feasibility of expanding the program statewide, as appropriate.

    8. The authority shall adopt, pursuant to the "Administrative Procedure Act," P.L. 1968, c.410 (C.52:14B-1 et seq.), any rules and regulations necessary to effectuate the purposes of this act.

    9. This act shall take effect immediately and shall expire on the first day of the 37th month following enactment.

STATEMENT

    This bill establishes a three-year Small-Medium Business Child Care Consortium Incentive Demonstration Program in the New Jersey Economic Development Authority (EDA), in conjunction with the Division of Youth and Family Services in the Department of Human Services. The EDA, in consultation with the Director of the Division of Youth and Family Services, shall designate three consortia for the three-year demonstration program, with one consortium located in the southern region, one consortium located in the central region, and one consortium located in the northern region of the State. Priority consideration for the selection of the participating consortia will be given to those proposals which: use a partnership approach; use a large network of volunteers that have social, educational or professional qualifications that will further the goal of expanding child care services; and leverage moneys and in-kind contributions, such as physical space and equipment for the child care centers, from other public or private sources. The authority is responsible for actively informing small and medium-sized businesses about the program, and shall work in this regard with the New Jersey Business and Industry Association, the New Jersey Chamber of Commerce, the National Federation of Independent Businesses, and any other nonprofit groups or any local, state or federal programs that provide advice or service to small and medium-sized businesses.

    The bill permits the selected consortia to enter into contracts for child care services with sponsoring organizations including, but not limited to, nonprofit or community-based groups, community colleges, and religious organizations, in order to locate child care centers at mutually agreed upon sites and to assist with obtaining space, personnel, facilities and resources therefor, provided that such entities demonstrate that they have the professional staff with the expertise and skills needed to provide quality child care services.

    The EDA will award the participating consortia low-interest loans not exceeding $100,000 per consortium for child care physical plant or facilities for the children of employees of the businesses in the consortia.

    The Department of Human Services shall give priority consideration for the awarding of moneys for Mini Child Care Center Project Grants to consortia participating in the program who use a volunteer network in addition to professional child care personnel in the delivery of child care services and demonstrate a need for training. In addition, the bill requires the Division of Youth and Family Services to establish a training program for volunteers who provide services to the consortia participating in the program.

    The bill provides that the program shall expire on the first day of the 37th month following enactment. No later than six months before that expiration date, the EDA, in consultation with the Director of the Division of Youth and Family Services, shall report to the Legislature and the Governor on the effectiveness of the program and present recommendations regarding the advisability and feasibility of expanding the program Statewide, as appropriate.

    The Legislature recognizes that the EDA has partnered with the Department of Human Services in the past in the provision of child care services. This initiative would specifically provide assistance for small and medium-sized businesses which enter into cooperative arrangements by forming consortia to provide child care to the children of their employees.

    This bill is part of a package of Legislative initiatives resulting from a series of public hearings on child care issues which were held by the General Assembly Advisory Council on Women in 1996 and 1997.

Establishes Small-Medium Business Child Care Consortium Incentive Demonstration Program.