Early learning facilities

AN ACT Relating to the early learning facilities grant and loan 1
program; amending RCW 43.31.565, 43.31.569, 43.31.571, 43.31.573, 2
43.31.575, 43.31.577, 43.31.579, and 43.31.581; adding a new section 3
to chapter 43.31 RCW; and repealing RCW 43.31.567. 4
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:5
Sec. 1. RCW 43.31.565 and 2021 c 130 s 4 are each amended to 6
read as follows: 7
Unless the context clearly requires otherwise, the definitions in 8
this section apply throughout RCW ((43.31.567)) 43.31.569 through 9
43.31.583: 10
(1) "Department" means the department of commerce.11
(2) "Director" means the director of commerce.12
(3) "Early learning facility" means a facility providing 13
regularly scheduled care for a group of children one month of age 14
through ((twelve)) 12 years of age for periods of less than ((twenty-15
four)) 24 hours. 16
(4) "Tribal compact school" means a state-tribal education 17
compact school subject to chapter 28A.715 RCW.18
Sec. 2. RCW 43.31.569 and 2021 c 130 s 3 are each amended to 19
read as follows: 20
H-0478.2
HOUSE BILL 1314
State of Washington 69th Legislature 2025 Regular Session
By Representatives Callan, Abbarno, Fosse, Davis, Waters, Reed,
Salahuddin, Tharinger, Nance, Eslick, and Doglio
Read first time 01/15/25. Referred to Committee on Capital Budget.
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(1)(a) The early learning facilities revolving account ((and the 1
early learning facilities development account are )) is created in the 2
state treasury. 3
(((2))) (b) Revenues to the early learning facilities revolving 4
account shall consist of appropriations by the legislature, early 5
learning facilities grant and loan repayments, taxable bond proceeds, 6
and all other sources deposited in the account. 7
(((3))) (c) Expenditures from the account shall be used, in 8
combination with other private and public funding, for: (i) State 9
matching funds for the planning, renovation, purchase, and 10
construction of early learning facilities as established in RCW 11
43.31.573 through 43.31.583 and 43.84.092; and (ii) emergency grants 12
for eligible organizations.13
(d) Expenditures from the account are subject to appropriation 14
and the allotment provisions of chapter 43.88 RCW.15
(e) The early learning facilities revolving account shall be 16
known as the Ruth LeCocq Kagi early learning facilities revolving 17
account.18
(2)(a) The early learning facilities development account is 19
created in the state treasury.20
(b) Revenues to the early learning facilities development account 21
shall consist of tax exempt bond proceeds. 22
(((4))) (c) Expenditures from the account ((s)) shall be used ((, 23
in combination with other private and public funding, for state 24
matching funds )) for the planning, renovation, purchase, and 25
construction of early learning facilities as established in RCW 26
43.31.573 through 43.31.583 and 43.84.092. 27
(((5))) (d) Expenditures from the account ((s)) are subject to 28
appropriation and the allotment provisions of chapter 43.88 RCW.29
(((6) The early learning facilities revolving account shall be 30
known as the Ruth LeCocq Kagi early learning facilities revolving 31
account.32
(7))) (e) The early learning facilities development account shall 33
be known as the Ruth LeCocq Kagi early learning facilities 34
development account. 35
Sec. 3. RCW 43.31.571 and 2018 c 58 s 5 are each amended to read 36
as follows: 37
(1) The department, in consultation with the department of 38
children, youth, and families, shall oversee the early learning 39
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facilities revolving account and the early learning facilities 1
development account, and is the lead state agency for the early 2
learning facilities grant and loan program. 3
(2) It is the intent of the legislature that state funds invested 4
in the accounts be matched by private or local government funding 5
whenever feasible . Every effort ((shall)) may be made to maximize 6
funding available for early learning facilities from public schools, 7
community colleges, educational service districts, local governments, 8
and private funders. 9
(3) Amounts used for program administration by the department may 10
not exceed an average of four percent of the appropriated funds.11
(4) ((Commitment of state funds for construction, purchase, or 12
renovation of early learning facilities may be given only after 13
private or public match funds are committed )) The department is 14
encouraged to leverage private and public match funds when feasible 15
and may not require match funds for applicants experiencing financial 16
hardship. The department may not consider the level of project match 17
funds as a competitive criterion when selecting or recommending 18
projects for funding . Private or public match funds may consist of 19
cash, equipment, land, buildings, or like-kind. ((In determining the 20
level of match required, the department shall take into consideration 21
the financial need of the applicant and the economic conditions of 22
the location of the proposed facility.))23
Sec. 4. RCW 43.31.573 and 2017 3rd sp.s. c 12 s 6 are each 24
amended to read as follows: 25
(1) The department must expend moneys from the early learning 26
facilities revolving account ((to)): (a) To provide state matching 27
funds for early learning facilities grants or loans to provide 28
classrooms necessary for children to participate in the early 29
childhood education and assistance program and working connections 30
child care ; and (b) for emergency grants for eligible organizations 31
as identified in this chapter. 32
(2) The department must expend moneys from the early learning 33
facilities development account ((to provide state matching funds )) 34
for early learning facilities grants to provide classrooms necessary 35
for children to participate in the early childhood education and 36
assistance program and working connections child care.37
(3) Funds expended from the accounts as specified in subsections 38
(1) and (2) of this section may fund projects only for:39
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(a) Eligible organizations identified in RCW 43.31.575; ((and))1
(b) School districts; and2
(c) Tribal compact schools. 3
(4)(((a) Beginning August 1, 2017, the)) The department shall:4
(((i))) (a) In consultation with the office of the superintendent 5
of public instruction, implement and administer the early learning 6
facilities grant and loan program for school districts and tribal 7
compact schools as described in RCW 43.31.579(3) and 43.31.581(1); 8
and 9
(((ii))) (b) Contract with one or more nongovernmental private-10
public partnerships that are certified by the community development 11
financial institutions fund to ((implement)): (i) Implement and 12
administer grants and loans funded through the early learning 13
facilities revolving account or for a grant funded through the early 14
learning facilities development account, for eligible organizations ; 15
and (ii) subject to the availability of amounts appropriated for this 16
specific purpose, award and administer emergency project grants on an 17
ongoing basis to eligible organizations.18
(A) Emergency projects are projects that are made necessary by a 19
natural disaster or another immediate health or safety threat 20
resulting from unforeseen circumstances. Emergency projects may 21
include the construction, repair, reconstruction, replacement, 22
rehabilitation, or other improvements to early learning facilities 23
that are necessary to restore a safe and healthy early learning 24
environment, preserve existing capacity, or to mitigate situations 25
that obstruct children's access to early learning.26
(B) The grant administrator must adopt policies and procedures to 27
ensure that funding from emergency grants does not duplicate payments 28
resulting from insurance proceeds or other payment from any other 29
source. The grant administrator may receive administrative costs 30
associated with conducting application processes, managing contracts, 31
and providing technical assistance for emergency project grants.32
(5) Any nongovernmental private-public partnership that is 33
certified by the community development financial institutions fund 34
that is seeking early learning fund resources must demonstrate an 35
ability to raise funding from private and other public entities for 36
early learning facilities construction projects. 37
(((b))) (6) The department may allow the application of an 38
eligible organization for a grant or loan from the early learning 39
facilities revolving account or for a grant from the early learning 40
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facilities development account created in RCW 43.31.569 to be 1
considered without the involvement of the nongovernmental private-2
public partnership that is certified by the community development 3
financial institutions fund if a nongovernmental private-public 4
partnership certified by the community development financial 5
institutions fund is not reasonably available to the location of the 6
proposed facility or if the eligible organization has sufficient 7
ability and capacity to proceed with a project absent the involvement 8
of a nongovernmental private-public partnership that is certified by 9
the community development financial institutions fund.10
(((5))) (7) The department shall monitor performance of the early 11
learning facilities grant and loan program. Any nongovernmental 12
private-public partnership that is certified by the community 13
development financial institutions fund receiving state funds for 14
purposes of ((chapter 12, Laws of 2017 3rd sp. sess. shall provide 15
annual reports, beginning July 1, 2018 )) this section and RCW 16
43.31.577 and 43.31.579, shall provide reports by July 1st of each 17
year, to the department. The reports must include, but are not 18
limited to, the following: 19
(a) A list of projects funded through the early learning 20
facilities grant and loan program for eligible organizations to 21
include: 22
(i) Name; 23
(ii) Location; 24
(iii) Grant or loan amount; 25
(iv) Private match amount; 26
(v) Public match amount; 27
(vi) Number of early learners served; and 28
(vii) Other elements as required by the department;29
(b) A demonstration of sufficient investment of private match 30
funds; and 31
(c) A description of how the projects met the criteria described 32
in RCW 43.31.581. 33
Sec. 5. RCW 43.31.575 and 2024 c 230 s 3 are each amended to 34
read as follows: 35
(1) Organizations eligible to receive funding from the early 36
learning facilities grant and loan program include:37
(a) Early childhood education and assistance program providers;38
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(b) Working connections child care providers who are eligible to 1
receive state subsidies; 2
(c) Licensed early learning centers not currently participating 3
in the early childhood education and assistance program, but 4
intending to do so; 5
(d) Developers of housing and community facilities;6
(e) Community and technical colleges; 7
(f) Educational service districts; 8
(g) Local governments; 9
(h) Federally recognized tribes in the state; and10
(i) Religiously affiliated entities. 11
(2) To be eligible to receive funding from the early learning 12
facilities grant and loan program for activities described in RCW 13
43.31.577 (1) (b), (c), and (d) and (2), eligible organizations 14
((and)), school districts, and tribal compact schools must:15
(a) Commit to being an active participant in good standing with 16
the early achievers program as defined by chapter 43.216 RCW; and17
(b) Demonstrate that projects receiving construction, purchase, 18
or renovation grants or loans must also: 19
(i) Demonstrate that the project site is under the applicant's 20
control for a minimum of ((ten)) 10 years, either through ownership 21
or a long-term lease; and 22
(ii) Commit to using the facility funded by the grant or loan for 23
the purposes of providing preschool or child care for a minimum of 24
((ten)) 10 years. 25
(3) To be eligible to receive funding from the early learning 26
facilities grant and loan program for activities described in RCW 27
43.31.577 (1) (b), (c), and (d) and (2), religiously affiliated 28
entities must use the facility to provide child care and education 29
services consistent with subsection (4)(a) of this section.30
(4)(a) Upon receiving a grant or loan, the recipient must 31
continue to be an active participant and in good standing with the 32
early achievers program. 33
(b) If the recipient does not meet the conditions specified in 34
(a) of this subsection, the grants shall be repaid to the early 35
learning facilities revolving account or the early learning 36
facilities development account, as directed by the department. So 37
long as an eligible organization continues to provide an early 38
learning program in the facility, the facility is used as authorized, 39
and the eligible organization continues to be an active participant 40
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and in good standing with the early achievers program, the grant 1
repayment is waived. 2
(((c) The department, in consultation with the department of 3
children, youth, and families, may adopt rules to implement this 4
section.))5
Sec. 6. RCW 43.31.577 and 2024 c 230 s 1 are each amended to 6
read as follows: 7
(1) Activities eligible for funding through the early learning 8
facilities grant and loan program for eligible organizations include:9
(a) Facility predesign grants or loans to allow eligible 10
organizations to secure professional services or consult with 11
organizations certified by the community development financial 12
institutions fund to plan for and assess the feasibility of early 13
learning facilities projects or receive other technical assistance to 14
design and develop projects for construction funding;15
(b) Grants or loans for predevelopment activities to advance a 16
proposal from planning to major construction or renovation;17
(c) Grants or loans for renovations or repairs of existing early 18
learning facilities; 19
(d) Major construction and renovation grants or loans and grants 20
or loans for facility purchases to create or expand early learning 21
facilities, including those that increase early childhood education 22
and assistance program capacity by supporting conversion of slots 23
from part day to full day or extended day, or conversion of full day 24
to extended day, as defined in RCW 43.216.010; ((and))25
(e) Emergency project grants as provided in RCW 43.31.573; and26
(f) Administration costs associated with conducting application 27
processes, managing contracts, translation services, and providing 28
technical assistance. 29
(2) For grants or loans awarded under subsection (1)(c) and (d) 30
of this section, the department must prioritize applications for 31
facilities that are ready for construction. 32
(3) Activities eligible for funding through the early learning 33
facilities grant and loan program for school districts and tribal 34
compact schools include major construction, purchase, and renovation 35
grants or loans to create or expand early learning facilities that 36
received priority and ranking as described in RCW 43.31.581.37
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Sec. 7. RCW 43.31.579 and 2017 3rd sp.s. c 12 s 9 are each 1
amended to read as follows: 2
(1) It is the intent of the legislature that state funds invested 3
in the early learning facilities grant and loan program be matched by 4
private or local government funding whenever feasible . Every effort 5
((shall)) may be made to maximize funding available for early 6
learning facilities from public schools, community colleges, 7
((education[al])) educational service districts, local governments, 8
and private funders. 9
(2) In the administration of the early learning facilities grant 10
and loan program for eligible organizations, any nongovernmental 11
private-public partnership that is certified by the community 12
development financial institutions fund contracted with the 13
department shall award grants or loans as described in RCW 43.31.577 14
and 43.31.573, that meet the criteria described in RCW 43.31.581 or 15
43.31.573, through an application process or in compliance with state 16
and federal requirements of the funding source. 17
(3) In the administration of the early learning facilities grant 18
and loan program for school districts and tribal compact schools , the 19
department, in coordination with the office of the superintendent of 20
public instruction, shall submit a ranked and prioritized list of 21
proposed purchases and major construction or renovation of early 22
learning facilities projects for school districts and tribal compact 23
schools subject to the prioritization methodology described in RCW 24
43.31.581 to the office of financial management and the relevant 25
legislative committees by ((December 15, 2017, and by )) September 26
15th of even-numbered years ((thereafter)). 27
Sec. 8. RCW 43.31.581 and 2018 c 58 s 17 are each amended to 28
read as follows: 29
(1) The department shall convene a committee of early learning 30
facilities experts to advise the department regarding the 31
prioritization methodology of applications for projects described in 32
RCW 43.31.577 including no less than one representative each from the 33
department of children, youth, and families, the Washington state 34
housing finance commission, an organization certified by the 35
community development financial institutions fund, and the office of 36
the superintendent of public instruction. 37
(2) When developing a prioritization methodology under this 38
section, the committee shall consider, but is not limited to:39
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(a) Projects that add ((part-day, full-day, or extended day )) 1
early childhood education and assistance program slots in areas with 2
the highest unmet need or increase capacity by supporting conversion 3
of slots from part day to full day or extended day, or conversion of 4
full day to extended day, as defined in RCW 43.216.010;5
(b) Projects benefiting low-income children; 6
(c) Projects located in low-income neighborhoods;7
(d) Projects that provide more access to the early childhood 8
education and assistance program as a ratio of the children eligible 9
to participate in the program; 10
(e) Projects that are geographically disbursed relative to 11
statewide need; 12
(f) Projects that include new or renovated kitchen facilities 13
equipped to support the use of from scratch, modified scratch, or 14
other cooking methods that enhance overall student nutrition; and15
(g) Projects that balance mixed-use development and rural 16
locations((; and17
(h) Projects that maximize resources available from the state 18
with funding from other public and private organizations, including 19
the use of state lands or facilities)). 20
(3) Committee members shall serve without compensation, but may 21
request reimbursement for travel expenses as provided in RCW 22
43.03.050 and 43.03.060. 23
(4) Committee members are not liable to the state, the early 24
learning facilities revolving account, the early learning facilities 25
development account, or to any other person, as a result of their 26
activities, whether ministerial or discretionary, as members except 27
for willful dishonesty or intentional violation of the law.28
(5) The department may purchase liability insurance for members 29
and may indemnify these persons against the claims of others.30
NEW SECTION. Sec. 9. A new section is added to chapter 43.31 31
RCW to read as follows: 32
The department may adopt rules to implement RCW 43.31.565 through 33
43.31.583. 34
NEW SECTION. Sec. 10. RCW 43.31.567 (Early learning facilities 35
grant and loan program — Review of existing licensing standards by 36
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department of early learning — Preapproval under existing licensing 1
standards) and 2017 3rd sp.s. c 12 s 2 are each repealed.2
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