(a) The department shall administer the Child Care and Development Infrastructure Grant Program to expand access to child care and development and preschool opportunities for children up to five years of age by providing resources to build new facilities or retrofit, renovate, repair, or expand existing facilities as provided in this section.

(b) (1) The department shall award infrastructure grants on a competitive basis to either of the following:

(A) Child care and development and preschool providers that are not local educational agencies and that are one or more of the following:

(i) A child care center or family child care home serving children through an alternative payment program pursuant to Chapter 3 (commencing with Section 10225).

(ii) A migrant child care and development program serving children pursuant to Chapter 6 (commencing with Section 10235).

(iii) A child care center or family child care home education network serving children through a California state preschool program pursuant to Article 2 (commencing with Section 8207) of Chapter 2 of Part 6 of Division 1 of Title 1 of the Education Code.

(iv) A child care center or family child care home serving children through a general childcare and development program pursuant to Chapter 7 (commencing with Section 10240).

(v) A family child care home education network serving children pursuant to Chapter 8 (commencing with Section 10250).

(vi) Child care and development services for children with special needs pursuant to Chapter 9 (commencing with Section 10260).

(vii) A child care center or family child care home serving children through a CalWORKs Stage 1, Stage 2, or Stage 3 program pursuant to Chapter 21 (commencing with Section 10370).

(viii) A child care center or family child care home serving children through the Emergency Child Care Bridge Program for Foster Children pursuant to Section 11461.6.

(B) Child care and development and preschool providers that are not local educational agencies and that meet two or more of the following:

(i) Have a demonstrated need for expanded access to subsidized child care and development and preschool programs as measured by the ratio of children in state and federally subsidized child care and development and preschool programs to eligible children in the applicant’s service area.

(ii) Are located in low-income communities, as measured by the proportion of children that qualify for state or federal subsidies for child care and development and preschool programs.

(iii) Plan to use grant funding to serve children that qualify for state or federal subsidies for child care and development and preschool programs.

(iv) Serve children from birth to five years of age, inclusive, with exceptional needs in inclusive environments.

(v) Wish to recover lost capacity as a result of a state or federally declared disaster.

(2) The department shall award infrastructure grants for any of the following purposes:

(A) Construction of new child care and development and preschool facilities to increase capacity or recover lost capacity as a result of a state or federally declared disaster.

(B) Renovation, repair, modernization, or retrofitting of existing child care and development and preschool facilities to increase capacity or recover lost capacity as a result of a state or federally declared disaster, or make existing child care and development and preschool facilities more resilient for future natural disasters.

(C) Renovation, repair, modernization, or retrofitting of existing facilities for use as child care and development and preschool facilities.

(D) Renovation, repair, modernization, or retrofitting of existing child care and development and preschool facilities to address needs related to the COVID-19 pandemic and other health and safety or licensure needs.

(c) The department shall award grants to applicants based upon criteria established by the department. The department shall release guidance to the public outlining the criteria for grant awards and the application process.

(d) The department shall give priority for grant funding to both of the following:

(1) Applicants with a demonstrated need for expanded access to subsidized child care and development and preschool programs, as measured by the ratio of children in subsidized child care and development and preschool programs to eligible children in the applicant’s service area.

(2) Applicants who are currently serving subsidized children in programs described in subparagraph (A) of paragraph (1) of subdivision (b) and who are not eligible for federal funding for these purposes.

(e) Infrastructure grants may be used for any of the following:

(1) One-time infrastructure costs, including, but not limited to, universal design facility renovations, retrofitting to meet licensing requirements, the cost of design, engineering, testing, inspections, plan checking, construction management, site acquisition and development, evaluation and response action costs relating to removal of hazardous substances at a new or existing site, demolition, construction, landscaping, or other related costs as determined by the department.

(2) Facility maintenance and improvements, including, but not limited to, maintenance and minor renovations to address concerns related to the COVID-19 pandemic such as nonstructural changes to create space for social distancing, minor remodeling and upgrading of facilities to meet licensing requirements or health and safety standards, or other related costs as determined by the department.

(f) The department shall determine the appropriate grant amount for each grantee, based upon factors that include, but are not limited to, the scope of the project, regional costs, the use of universal design to provide inclusive environments, the need to meet licensing requirements or health and safety standards, and the proportion of children receiving subsidies to be served.

(g) The department shall establish the terms and conditions associated with accepting the infrastructure grant funds awarded pursuant to this section.

(h) The grant program shall offer technical assistance to potential applicants before being awarded a grant, including, but not limited to, project development support and financial expertise, including assistance with coordinating financing from multiple sources.

(i) Infrastructure grant recipients shall commit to providing program data to the department, as specified by the department, and shall participate in overall program evaluation.

(j) The department, with the concurrence of the Department of Finance, may establish an appropriate method, process, and structure for grant management, fiscal accountability, and technical assistance and supports for grantees that ensures transparency and accountability in the use of state funds. The department, at its discretion, may set aside a percentage of the amounts appropriated for the program to contract with one or more community development financial intermediaries, state financial entities, or other community-based organizations for these purposes.

(k) For purposes of this section, “state or federally declared disaster” means counties where child care and development and preschool providers are operating subject to a Presidential declaration of an emergency or major disaster, pursuant to the federal Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. § 5121 et seq.), or a Governor’s Proclamation, on behalf of the impacted local government, as authorized by the powers authorized by the California Emergency Services Act (Chapter 7 (commencing with Section 8550) of Division 1 of Title 2 of the Government Code).

(l) A grantee that receives funds under this section shall supplement, and not supplant, federal, state, and local public funds expended for these purposes.

(m) Notwithstanding subdivision (g) and the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code), the department may implement and administer this section by means of all-county letters or similar instructions.

(n) This section shall take effect only to the extent that funds are appropriated for this program by the Legislature.

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