Child Care Pilot Program Amendments

18
35A-3-209
35A-3-211
35A-3-211.1
63J-1-602.1
12
Child Care Pilot Program Amendments
2026 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Ashlee Matthews
Senate Sponsor:
LONG TITLE
General Description:
This bill creates the Child Care Employee Subsidy Pilot Program.
Highlighted Provisions:
This bill:
defines terms;
creates the Child Care Employee Subsidy Pilot Program within the Office of Child Care;
creates the Child Care Center Employee Subsidy Restricted Account;
makes technical and conforming changes; and
provides intent language that provides for funds appropriated to the Child Care Center
Employee Subsidy Restricted Account be nonlapsing.
Money Appropriated in this Bill:
This bill appropriates
$3,000,000
in operating and capital budgets for fiscal year 2027,
all of which is from the various sources as detailed in this bill.
This bill appropriates
$3,000,000
in restricted fund and account transfers for fiscal year 2027,
all of which is from the General Fund.
Other Special Clauses:
None
Utah Code Sections Affected:
AMENDS:
35A-3-209
, as last amended by Laws of Utah 2024, Chapter 308
63J-1-602.1
, as last amended by Laws of Utah 2025, First Special Session, Chapter 9
ENACTS:
35A-3-211
, Utah Code Annotated 1953
35A-3-211.1
, Utah Code Annotated 1953
Be it enacted by the Legislature of the state of Utah:
Section 1. Section
35A-3-209
is amended to read:
35A-3-209
. Award of child care subsidy services.
(1)
As used in this section, "child care provider" means an entity that holds a license or
certificate from the Department of Health and Human Services in accordance with Title
26B, Chapter 2, Part 4, Child Care Licensing.
(2)
(a)
On or before June 30, 2023, the office shall award a full child care subsidy or
grant for an income-eligible child.
(b)
The office shall make the award described in Subsection
(2)(a)
:
(i)
in accordance with applicable federal law
and regulation
; and
(ii)
subject to available funds.
(3)
(a)
Beginning on July 1, 2023
,
and subject to Subsection
(3)(b)
, the office may award:
(i)
a full child care subsidy or grant for:
(A)
an income-eligible child whose family income is equal to or below 75% of
state median income; or
(B)
a child who has at least one parent or legal guardian working as a full-time
employee of a child care provider; and
(ii)
(i)
a full child care subsidy or grant for an income-eligible child whose family
income is equal to or less than 75% of state median income; or
(ii)
a progressively lower child care subsidy or grant for each tenth of a percentage
point by which the income-eligible child's family income exceeds 75% of state
median income up to 85% of state median income.
(b)
The office shall make the award described in Subsection
(3)(a)
:
(i)
in accordance with applicable federal law and regulation; and
(ii)
subject to available federal funds.
(4)
(a)
On or before June 30, 2023, and subject to Subsection
(4)(b)
, the office shall
determine the amount of a child care subsidy or grant based on the income-eligible
child's enrollment in child care.
(b)
To qualify for a child care subsidy or grant under Subsection
(4)(a)
, an
income-eligible child shall be enrolled in child care for a minimum of eight hours per
month.
(c)
On or after July 1, 2023, and subject to Subsection
(4)(d)
, the office shall determine
the amount of a child care subsidy or grant based on the income-eligible child's
attendance in child care.
(d)
To qualify for a child care subsidy or grant under Subsection
(4)(c)
, an
income-eligible child shall attend child care for a minimum of eight hours per month.
Section 2. Section
35A-3-211
is enacted to read:
35A-3-211
. Child Care Center Employee Subsidy Pilot Program.
(1)
As used in this section:
(a)
"Center based child care" means the same as that term is defined in Section
26B-2-401
.
(b)
"Child Care Center Employee Subsidy Pilot Program" means the child care subsidy
program created in Subsection
(2)
.
(c)
"Eligible employee" means an individual that:
(i)
works at an eligible employer;
(ii)
enrolls at least one qualifying child for child care with the eligible employer; and
(iii)
applies for the child care subsidy in accordance with Section
35A-3-209
.
(d)
"Eligible employer" means a center based child care provider that:
(i)
holds a license from the Department of Health and Human Services in accordance
with Title 26B, Chapter 2, Part 4, Child Care Licensing;
(ii)
provides a reduced tuition employee benefit to an eligible employee for a
qualifying child; and
(iii)
accepts the child care subsidy services for an income-eligible child as described
in Section
35A-3-209
.
(e)
"Qualifying child" means a child of an eligible employee who:
(i)
is enrolled for child care with an eligible employer;
(ii)
meets attendance requirements for the child care subsidy services described in
Section
35A-3-209
; and
(iii)
does not meet the income eligibility requirements for an award of child care
subsidy services described in Section
35A-3-209
.
(f)
"Reduced tuition employee benefit" means a child care tuition reduction benefit that
is equal to or more than 50% of an eligible employer's average monthly child care
tuition provided to an eligible employee for each qualifying child.
(2)
There is created the Child Care Center Employee Subsidy Pilot Program administered
by the office.
(3)
(a)
Beginning on July 1, 2026, and subject to legislative appropriations, the office
may award a child care center employee subsidy under this section to an eligible
employer for each qualifying child.
(b)
The subsidy award may not exceed 50% of the average cost of monthly child care
tuition, as determined by the office.
(c)
An eligible employer may not receive a subsidy award for the same child who
receives a subsidy award under this section and Section
35A-3-209
.
(4)
The office may make rules in accordance with Title 63G, Chapter 3, Utah
Administrative Rulemaking Act, to implement this section.
Section 3. Section
35A-3-211.1
is enacted to read:
35A-3-211.1
. The Child Care Center Employee Subsidy Restricted Account.
(1)
As used in this section, "account" means the Child Care Center Employee Subsidy
Restricted Account created under Subsection
(2)
.
(2)
There is created in the General Fund a restricted account known as the Child Care
Center Employee Subsidy Restricted Account to fund the Child Care Center Employee
Subsidy Pilot Program created in Section
35A-3-211
.
(3)
The account shall consist of:
(a)
gifts, grants, donations, or any other conveyance of money that may be made to the
fund from private sources;
(b)
additional amounts as appropriated by the Legislature; and
(c)
all income and interest derived from the deposit and investment of money in the
account.
(4)
The account shall be administered by the office.
(5)
The state treasurer shall invest the money in the account according to the procedures
and requirements of Title 51, Chapter 7, State Money Management Act, except that
interest and other earnings derived from the account shall be deposited into the account.
(6)
In accordance with Section 63J-1-602.1, appropriations from the account are nonlapsing.
Section 4. Section
63J-1-602.1
is amended to read:
63J-1-602.1
. List of nonlapsing appropriations from accounts and funds.
Appropriations made from the following accounts or funds are nonlapsing:
(1)
The Native American Repatriation Restricted Account created in Section
9-9-407
.
(2)
Certain money payable for expenses of the Pete Suazo Utah Athletic Commission, as
provided under Title
9, Chapter 23
, Pete Suazo Utah Athletic Commission Act.
(3)
Funds collected for directing and administering the C-PACE district created in Section
11-42a-106
.
(4)
Money received by the Utah Inland Port Authority, as provided in Section
11-58-105
.
(5)
The Commerce Electronic Payment Fee Restricted Account created in Section
13-1-17
.
(6)
The Division of Air Quality Oil, Gas, and Mining Restricted Account created in Section
19-2a-106
.
(7)
The Division of Water Quality Oil, Gas, and Mining Restricted Account created in
Section
19-5-126
.
(8)
State funds for matching federal funds in the Children's Health Insurance Program as
provided in Section
26B-3-906
.
(9)
Funds collected from the program fund for local health department expenses incurred in
responding to a local health emergency under Section
26B-7-111
.
(10)
The Technology Development Restricted Account created in Section
31A-3-104
.
(11)
The Criminal Background Check Restricted Account created in Section
31A-3-105
.
(12)
The Captive Insurance Restricted Account created in Section
31A-3-304
, except to the
extent that Section
31A-3-304
makes the money received under that section free revenue.
(13)
The Title Licensee Enforcement Restricted Account created in Section
31A-23a-415
.
(14)
The Health Insurance Actuarial Review Restricted Account created in Section
31A-30-115
.
(15)
The State Mandated Insurer Payments Restricted Account created in Section
31A-30-118
.
(16)
The Insurance Fraud Investigation Restricted Account created in Section
31A-31-108
.
(17)
The Underage Drinking Prevention Media and Education Campaign Restricted
Account created in Section
32B-2-306
.
(18)
The Child Care Center Employee Subsidy Restricted Account created in Section
35A-3-211.1.
(19)
The School Readiness Restricted Account created in Section
35A-15-203
.
(19)
(20)
Money received by the Utah State Office of Rehabilitation for the sale of certain
products or services, as provided in Section
35A-13-202
.
(20)
(21)
The Property Loss Related to Homelessness Compensation Enterprise Fund
created in Section
35A-16-212
.
(21)
(22)
The Homeless Shelter Cities Mitigation Restricted Account created in Section
35A-16-402
.
(22)
(23)
The Oil and Gas Administrative Penalties Account created in Section
40-6-11
.
(23)
(24)
The Oil and Gas Conservation Account created in Section
40-6-14.5
.
(24)
(25)
The Division of Oil, Gas, and Mining Restricted account created in Section
40-6-23
.
(25)
(26)
The Electronic Payment Fee Restricted Account created by Section
41-1a-121
to
the Motor Vehicle Division.
(26)
(27)
The License Plate Restricted Account created by Section
41-1a-122
.
(27)
(28)
The Motor Vehicle Enforcement Division Temporary Permit Restricted Account
created by Section
41-3-110
to the State Tax Commission.
(28)
(29)
The State Disaster Recovery Restricted Account to the Division of Emergency
Management, as provided in Section
53-2a-603
.
(29)
(30)
The Disaster Response, Recovery, and Mitigation Restricted Account created in
Section
53-2a-1302
.
(30)
(31)
The Emergency Medical Services Critical Needs Account created in Section
53-2d-110
.
(31)
(32)
The Department of Public Safety Restricted Account to the Department of Public
Safety, as provided in Section
53-3-106
.
(32)
(33)
The Utah Highway Patrol Aero Bureau Restricted Account created in Section
53-8-303
.
(33)
(34)
The DNA Specimen Restricted Account created in Section
53-10-407
.
(34)
(35)
The Technical Colleges Capital Projects Fund created in Section
53H-9-605
.
(35)
(36)
The Higher Education Capital Projects Fund created in Section
53H-9-502
.
(36)
(37)
A certain portion of money collected for administrative costs under the School
Institutional Trust Lands Management Act, as provided under Section
53C-3-202
.
(37)
(38)
The Public Utility Regulatory Restricted Account created in Section
54-5-1.5
,
subject to Subsection
54-5-1.5
(4)(d).
(38)
(39)
Funds collected from a surcharge fee to provide certain licensees with access to
an electronic reference library, as provided in Section
58-3a-105
.
(39)
(40)
Certain fines collected by the Division of Professional Licensing for violation of
unlawful or unprofessional conduct that are used for education and enforcement
purposes, as provided in Section
58-17b-505
.
(40)
(41)
Funds collected from a surcharge fee to provide certain licensees with access to
an electronic reference library, as provided in Section
58-22-104
.
(41)
(42)
Funds collected from a surcharge fee to provide certain licensees with access to
an electronic reference library, as provided in Section
58-55-106
.
(42)
(43)
Funds collected from a surcharge fee to provide certain licensees with access to
an electronic reference library, as provided in Section
58-56-3.5
.
(43)
(44)
Certain fines collected by the Division of Professional Licensing for use in
education and enforcement of the Security Personnel Licensing Act, as provided in
Section
58-63-103
.
(44)
(45)
The Relative Value Study Restricted Account created in Section
59-9-105
.
(45)
(46)
The Cigarette Tax Restricted Account created in Section
59-14-204
.
(46)
(47)
Funds paid to the Division of Real Estate for the cost of a criminal background
check for a mortgage loan license, as provided in Section
61-2c-202
.
(47)
(48)
Funds paid to the Division of Real Estate for the cost of a criminal background
check for principal broker, associate broker, and sales agent licenses, as provided in
Section
61-2f-204
.
(48)
(49)
Certain funds donated to the Department of Health and Human Services, as
provided in Section
26B-1-202
.
(49)
(50)
Certain funds donated to the Division of Child and Family Services, as provided
in Section
80-2-404
.
(50)
(51)
Funds collected by the Office of Administrative Rules for publishing, as
provided in Section
63G-3-402
.
(51)
(52)
The Immigration Act Restricted Account created in Section
63G-12-103
.
(52)
(53)
Money received by the military installation development authority, as provided
in Section
63H-1-504
.
(53)
(54)
The Unified Statewide 911 Emergency Service Account created in Section
63H-7a-304
.
(54)
(55)
The Utah Statewide Radio System Restricted Account created in Section
63H-7a-403
.
(55)
(56)
The Utah Capital Investment Restricted Account created in Section
63N-6-204
.
(56)
(57)
The Motion Picture Incentive Account created in Section
63N-8-103
.
(57)
(58)
Funds collected by the housing of state probationary inmates or state parole
inmates, as provided in Subsection
64-13e-104
(2).
(58)
(59)
Certain forestry and fire control funds utilized by the Division of Forestry, Fire,
and State Lands, as provided in Section
65A-8-103
.
(59)
(60)
The following funds or accounts created in Section
72-2-124
:
(a)
Transportation Investment Fund of 2005;
(b)
Transit Transportation Investment Fund;
(c)
Cottonwood Canyons Transportation Investment Fund;
(d)
Active Transportation Investment Fund; and
(e)
Commuter Rail Subaccount.
(60)
(61)
The Amusement Ride Safety Restricted Account, as provided in Section
72-16-204
.
(61)
(62)
Certain funds received by the Office of the State Engineer for well drilling fines
or bonds, as provided in Section
73-3-25
.
(62)
(63)
The Water Resources Conservation and Development Fund, as provided in
Section
73-23-2
.
(63)
(64)
Award money under the State Asset Forfeiture Grant Program, as provided under
Section
77-11b-403
.
(64)
(65)
Funds donated or paid to a juvenile court by private sources, as provided in
Subsection
78A-6-203
(1)(c).
(65)
(66)
Fees for certificate of admission created under Section
78A-9-102
.
(66)
(67)
Funds collected for adoption document access as provided in Sections
81-13-103
,
81-13-504
, and
81-13-505
.
(67)
(68)
Funds collected for indigent defense as provided in Title
78B, Chapter 22, Part 4
,
Utah Indigent Defense Commission.
(68)
(69)
The Utah Geological Survey Restricted Account created in Section
79-3-403
.
(69)
(70)
Revenue for golf user fees at the Wasatch Mountain State Park, Palisades State
Park, and Green River State Park, as provided under Section
79-4-403
.
(70)
(71)
Certain funds received by the Division of State Parks from the sale or disposal of
buffalo, as provided under Section
79-4-1001
.
Section 5.
FY 2027 Appropriations.
The following sums of money are appropriated for the fiscal year beginning July 1,
2026, and ending June 30, 2027. These are additions to amounts previously appropriated for
fiscal year 2027.
Subsection 5(a).
Operating and Capital Budgets
Under the terms and conditions of Title 63J, Chapter 1, Budgetary Procedures Act, the
Legislature appropriates the following sums of money from the funds or accounts indicated for
the use and support of the government of the state of Utah.
ECONOMIC AND COMMUNITY DEVELOPMENT
DEPARTMENT OF WORKFORCE SERVICES
ITEM 1
Department of Workforce Services - Operations and Policy
From General Fund Restricted - Child Care Center
Employee Subsidy Restricted Account
3,000,000
Child Care Assistance
3,000,000
Subsection 5(b).
Restricted Fund and Account Transfers
The Legislature authorizes the State Division of Finance to transfer the following
amounts between the following funds or accounts as indicated. Expenditures and outlays from
the funds to which the money is transferred must be authorized by an appropriation.
ECONOMIC AND COMMUNITY DEVELOPMENT
ITEM 2
General Fund Restricted - Child Care Center Employee Subsidy Restricted
Account
From General Fund, One-time
3,000,000
General Fund Restricted - Child Care Center
Employee Subsidy Restricted Account
3,000,000
In accordance with Section 63J-1-603 of the
Utah Code, the Legislature intends that up to $3,000,000
of the one-time general funds provided in Item 2 for the
Child Care Center Employee Subsidy Restricted Account
shall not lapse at the close of fiscal year 2027. The use of
any nonlapsing funds is limited to the child care center
employee subsidy.
Section 6.
Effective Date.
This bill takes effect on
May 6, 2026
.
2-10-26 4:55 PM