(a) (1) The Child Care Facilities Revolving Fund is hereby
established in the State Treasury to provide funding for the
renovation, repair, or improvement of an existing building to make
the building suitable for licensure for child care and development
services and for the purchase of new relocatable child care
facilities for lease to school districts and contracting agencies
that provide child care and development services, pursuant to this
chapter. The Superintendent of Public Instruction may transfer state
funds appropriated for child care facilities into this fund for
allocation to school districts and contracting agencies, as
specified, for the purchase, transportation, and installation of
facilities for replacement and expansion of capacity. School
districts and contracting agencies using facilities made available by
the use of these funds shall be charged a leasing fee, either at a
fair market value for those facilities or at an amount sufficient to
amortize the cost of purchase and relocation, whichever amount is
lower, over a 10-year period. Upon full repayment of the purchase and
relocation costs, title shall transfer from the State of California
to the school district or contracting agency. The Superintendent of
Public Instruction shall deposit all revenue derived from the lease
payments into the Child Care Facilities Revolving Fund.
   (2) Notwithstanding Section 13340 of the Government Code, all
moneys in the fund, including moneys deposited from lease payments,
are continuously appropriated, without regard to fiscal years, to the
Superintendent of Public Instruction for expenditure pursuant to
this article.
   (b) On or before August 1 of each fiscal year, the Superintendent
of Public Instruction shall submit to the Office of the Secretary for
Education, the Department of Finance, and the Legislative Analyst's
Office a report detailing the number of funding requests received and
their purpose, the types of agencies that received funding from the
Child Care Facilities Revolving Fund, the increased capacity that
these facilities generated, a description of the manner in which the
facilities are being used, and a projection of the lease payments
collected and the funds available for future use.
   (c) A school district or county office of education that provides
child care pursuant to the California School Age Families Education
Program (Article 7.1 (commencing with Section 54740) of Chapter 9 of
Part 29) is eligible to apply for and receive funding pursuant to
this section.