(a) Repayments on loans made pursuant to Section 10303 shall commence within one year after allocation of the loan to the contracting agency. In lieu of payments by the contracting agency, the department shall annually reduce the agency’s contract amount for child care or preschool services by at least the level of normal depreciation allowance on the renovation or repair, calculated by the straight line method of depreciation.

(b) The entire balance of a loan made pursuant to this section shall be payable to the department immediately if the contracting agency ceases operation of services to children subsidized pursuant to this chapter, or if the department fails to renew the agency’s contract, or if 10 years have elapsed from the date of the allocation.

Terms Used In California Welfare and Institutions Code 10304

  • Capital outlay: means the amount paid for the renovation and repair of childcare and development and preschool facilities to comply with state and local health and safety standards, and the amount paid for the state purchase of relocatable childcare and development and preschool facilities for lease to qualifying contracting agencies. See California Welfare and Institutions Code 10213.5
  • Contract: A legal written agreement that becomes binding when signed.

(c) The department shall deposit all revenue derived from loan payments made by contracting agencies, or reductions made by the department in agencies’ contracts in lieu of payments, into the revolving loan fund for allocation to other contracting agencies for capital outlay projects pursuant to this section.

(Added by Stats. 2021, Ch. 116, Sec. 260. (AB 131) Effective July 23, 2021.)

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