SB540,2,9 1An Act to repeal 231.01 (3c) (c) and (d); to amend 39.385 (1) (intro.) and (2)
2(intro.) and (a), 66.521 (2) (k) 22., 121.545 (2), 231.03 (6) (e), 231.03 (6) (f),
3231.03 (13), 231.03 (14) and 231.16 (3); and to create 20.235 (1) (cw), 20.435 (3)
4(cr), 36.25 (38), 39.385, 46.031 (4), 46.983, 120.13 (36), 121.54 (2) (am) and
5121.58 (2) (b) of the statutes; relating to: the child care worker loan repayment
6assistance program; issuing bonds to finance certain child care centers;
7authorizing school boards to contract with day care centers; requesting the
8board of regents of the University of Wisconsin System to prepare certain
9written reports containing information about child care services in this state;
10early childhood councils; requiring the department of industry, labor and
11human relations to promulgate rules permitting children under the age of 24
12months to be provided care on a floor other than the first floor or ground floor
13of a group day care center; requiring the department of health and social
14services to promulgate rules which establish requirements that county
15departments of human services or social services must follow in establishing
16and maintaining waiting lists for state-allocated day care funds; requiring the
17secretary of health and social services to submit to the legislature a proposal

1which will ensure that safe and affordable child care is available for all children
2of low-income parents upon replacement of the aid to families with dependent
3children program and a proposal for the consolidation of all child care programs
4administered by the department of health and social services under a uniform
5automated voucher system; requiring the department of health and social
6services to promulgate rules that establish the requirements for obtaining and
7procedure for granting exemptions to the outdoor play space requirements
8under the administrative rules relating to group day care centers and family
9day care homes; granting rule-making authority; and making appropriations.
Analysis by the Legislative Reference Bureau
This bill is explained in the Notes provided by the joint legislative council in
the bill.
For further information see the state and local fiscal estimate, which will be
printed as an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
Prefatory note: This bill was prepared for the joint legislative council's special
committee on child care economics and contains the recommendations of that special
committee. The special committee was directed by the joint legislative council to study
the child care system in Wisconsin and to make recommendations to increase the supply
of high-quality child care, reduce demand for state-supported child care and retain
skilled child care providers.
This bill contains a variety of proposals related to child care. The key provisions
of the bill are as follows:
1. Establishment of a local early childhood council grant program.
2. Establishment of a child care worker loan repayment assistance program.
3. Authorization for school boards to enter into certain agreements with day care
centers for the provision of prekindergarten or kindergarten programs in those day care
centers.
4. Provision of state transportation aid to school districts that transport children
between school and a day care program in lieu of transporting them between school and
home.
5. Authorization for the Wisconsin health and educational facilities authority
(WHEFA) and municipalities to issue bonds on behalf of nonprofit child care centers.
6. A requirement for the department of health and social services (DHSS) to create
exemptions to DHSS's current requirements regarding outdoor play space at day care
centers and day care homes.

7. A requirement for the department of industry, labor and human relations
(DILHR) to promulgate rules to permit children under the age of 24 months to be provided
care in a group day care center on a floor other than the first floor or ground floor in certain
day care centers.
8. A request for the University of Wisconsin (UW) System to prepare reports
containing certain information about child care in Wisconsin.
9. A requirement for DHSS to submit to the Legislature a proposal which will
ensure that safe and affordable child care is available for all children of low-income
parents upon replacement of the aid to families with dependent children (AFDC) program
and a proposal for the consolidation of all child care programs administered by DHSS
under a uniform automated voucher system.
10. A requirement for DHSS to promulgate rules to require counties to collect
certain information from parents on waiting lists for low-income child care funding.
See the Notes following the individual Sections of the bill for additional
information.
SB540, s. 1 1Section 1. 20.005 (3) (schedule) of the statutes: at the appropriate place, insert
2the following amounts for the purposes indicated: - See PDF for table PDF - See PDF for table PDF
SB540, s. 2 3Section 2. 20.235 (1) (cw) of the statutes is created to read:
SB540,3,64 20.235 (1) (cw) Child care worker loan repayment assistance program.
5Biennially, the amounts in the schedule for the child care worker loan repayment
6assistance program under s. 39.385.

Note: New s. 20.235 (1) (cw), and the dollar amounts in the appropriation schedule,
establish a program for child care worker loan repayment assistance to be funded with
general purpose revenue (GPR) as a biennial appropriation. See the Note following
Section 5 for a description of this program.
SB540, s. 3 1Section 3. 20.435 (3) (cr) of the statutes is created to read:
SB540,4,42 20.435 (3) (cr) Local early childhood council grants. As a continuing
3appropriation, the amounts in the schedule for grants for local early childhood
4councils under s. 46.983.
Note: New s. 20.435 (3) (cr), and the dollar amounts in the appropriation schedule,
establish a program of grants for local early childhood councils to be funded with GPR as
a continuing appropriation. See the Note following Section 8 for a description of this
program.
SB540, s. 4 5Section 4. 36.25 (38) of the statutes is created to read:
SB540,4,96 36.25 (38) Child care study. (a) The board is requested to prepare one or more
7written reports detailing and analyzing the following information and to submit
8copies of the reports to the joint legislative council, to the governor, and to the
9appropriate standing committees under s. 13.172 (3):
SB540,4,1810 1. The rates charged for child care services for children of different ages in
11different regions of the state by licensed and certified providers of child care; the total
12capacity of certified and licensed child care providers in different regions of the state;
13the total estimated number of children of various ages in different regions of the state
14who are cared for by persons other than their parents or guardians for a significant
15period each week; an analysis of the rates charged for child care services in relation
16to family incomes in different regions of the state; and a projection of the effects of
17demographic, economic and employment trends on the demand, cost and availability
18of child care services in this state for each year until 2005.
SB540,5,3
12. A compilation and analysis of information regarding the relationship
2between the availability of child care services and worker productivity and the
3economic well-being of the state.
SB540,5,74 3. A compilation and analysis of existing information regarding the
5relationship between the quality of child care services received by a child and the
6child's school readiness, involvement in juvenile delinquency and general social
7integration.
SB540,5,168 (b) The board is requested to gather information on the use of child care services
9by low-income parents and by parents receiving aid to families with dependent
10children under s. 49.19 for the purpose of establishing baseline data for the
11evaluation of the effect of changes in state policies regarding aid to families with
12dependent children on the use of, demand for, availability of and affordability of child
13care services for low-income persons in this state. The board is requested to prepare
14a written report detailing and analyzing this information and to submit a copy of the
15report to the joint legislative council, to the governor, and to the appropriate standing
16committees under s. 13.172 (3).
Note: Requests the board of regents of the UW System to prepare one or more
written reports for the joint legislative council, the legislature and the governor
containing all of the following items:
1. Information on the rates charged for licensed and certified child care services
for children of different ages in different regions of the state; the capacity of certified and
licensed child care providers in different regions of the state; the estimated number of
children of various ages in different regions of the state receiving child care services; an
analysis of the rates charged for child care services in relation to the various family
incomes of different regions of the state; and a projection of the effects of demographic,
economic and employment trends on the demand for and cost and availability of child care
in Wisconsin for the next 10 years.
2. A compilation and analysis of information regarding the relationship between
the availability of child care services and worker productivity and the economic
well-being of the state.
3. A compilation and analysis of information regarding the relationship between
the quality of child care services received by a child and the child's school readiness,
involvement in juvenile delinquency and general social integration.
The bill also requests the board to gather baseline information on child care use by
low-income parents and by parents currently receiving AFDC for the purpose of being

able to evaluate the effect of expected changes in Wisconsin's AFDC policies on the use,
demand for, availability and affordability of child care services for low-income persons
in Wisconsin.
SB540, s. 5 1Section 5 . 39.385 of the statutes is created to read:
SB540,6,4 239.385 Child care worker loan repayment assistance program. (1)
3There is established, to be administered by the board, a loan repayment assistance
4program for resident child care workers who meet all of the following requirements:
SB540,6,85 (a) Have graduated on or after May 1, 1996, with a bachelor's degree from an
6institution of higher education, as defined in s. 39.32 (1) (a), located in this state or
7a degree under an associate degree program, as defined in s. 38.01 (1), in an area
8relating to early childhood education.
SB540,6,109 (b) Are currently in loan repayment on any student loan, which loan repayment
10status is not in default, as determined by the applicable lender.
SB540,6,1211 (c) Have been continuously employed on a full-time basis in this state for at
12least 12 months as a child care worker.
SB540,6,13 13(2) The board shall:
SB540,6,2114 (a) Reimburse a child care worker for 10% of the outstanding principal amount
15of any student loans of the child care worker or $1,000, whichever is less, for the
1612-month period of eligibility under sub. (1). As a condition of eligibility for loan
17repayment assistance under this paragraph, the child care worker shall submit to
18the board, on a form prescribed by the board, a statement certified by the lender of
19an applicable student loan, within 30 days previous to the filing of the submission,
20that the loan repayment status of the borrower is not in default and the outstanding
21principal amount of the applicable student loan.
SB540,7,3
1(b) For each succeeding 12-month period of eligibility under sub. (1), reimburse
2the child care worker as determined under par. (a). No child care worker is eligible
3for more than 5 loan repayment assistance payments under this section.
SB540,7,54 (c) Make the loan repayment assistance payments under pars. (a) and (b) from
5the appropriation account under s. 20.235 (1) (cw) subject to the availability of funds.
SB540,7,116 (d) Promulgate rules to implement and administer this section, including rules
7establishing the criteria and procedures for loan repayment assistance and, after
8first consulting with the department of health and social services, defining "child
9care worker" for the purposes of this section. The definition of "child care worker"
10shall include any child care position specified in rules of the department of health and
11social services relating to day care and family day care centers for children.
Note: Establishes a program for child care worker loan repayment assistance to
be administered by the higher educational aids board (HEAB) and appropriates $50,000
GPR for the 1996-97 fiscal year.
Under the bill, a child care worker is eligible for up to $5,000 in educational loan
repayment assistance.
Under the bill, the department of education (DOE) reimburses a child care worker
for 10% of the outstanding principal amount of educational loans of the child care worker
or $1,000, whichever is less, if all of the following apply:
1. The child care worker has been continuously employed full-time in this state
as a child care worker in a licensed group day care center or family day care home for not
less than 12 months.
2. The child care worker graduated on or after May 1, 1996 from a Wisconsin
college or technical school with a degree in an area relating to early childhood education.
3. The child care worker is currently in repayment on any educational loan and is
not in default on repayment.
After initial reimbursement under the program, a child care worker is eligible for
additional loan repayment assistance payments, up to a maximum of 4 additional
reimbursements, in the same manner as initial reimbursement under the program.
SB540, s. 6 12Section 6. 39.385 (1) (intro.) and (2) (intro.) and (a) of the statutes, as created
13by 1995 Wisconsin Act .... (this act), are amended to read:
SB540,7,1614 39.385 (1) (intro.) There is established, to be administered by the board
15department, a loan repayment assistance program for resident child care workers
16who meet all of the following requirements:
SB540,8,1
1(2) (intro.) The board department shall:
SB540,8,92 (a) Reimburse a child care worker for 10% of the outstanding principal amount
3of any student loans of the child care worker or $1,000, whichever is less, for the
412-month period of eligibility under sub. (1). As a condition of eligibility for loan
5repayment assistance under this paragraph, the child care worker shall submit to
6the board department, on a form prescribed by the board department, a statement
7certified by the lender of an applicable student loan, within 30 days previous to the
8filing of the submission, that the loan repayment status of the borrower is not in
9default and the outstanding principal amount of the applicable student loan.
Note: Amends the language of s. 39.385, effective July 1, 1996, to require DOE to
administer the child care worker loan repayment assistance program. Under 1995
Wisconsin Act 27
, HEAB will be eliminated and its functions will be transferred to DOE
on July 1, 1996.
SB540, s. 7 10Section 7. 46.031 (4) of the statutes is created to read:
SB540,8,1511 46.031 (4) Plans for county community aids budgets. In developing its
12proposed budget for the expenditure of funds allocated under s. 46.40, a county
13department under s. 46.215, 46.22 or 46.23, in addition to using the open public
14participation process under sub. (3), shall consult with any local early childhood
15council established under s. 46.983 within the county.
Note: Requires a county department of social services or human services (county
department) to consult with any local early childhood council established within the
county served by the county department when developing its proposed budget for the
expenditure of community aids funding.
SB540, s. 8 16Section 8 . 46.983 of the statutes is created to read:
SB540,8,20 1746.983 Local early childhood council grants. (1) Purpose. From the
18appropriation under s. 20.435 (3) (cr), the department shall provide grants, awarded
19under sub. (2), to public agencies or private, nonprofit organizations for the
20establishment or operation, or both, of local early childhood councils.
SB540,9,4
1(2) Grant awards; amounts. (a) Grants shall be awarded by a body consisting
2of 2 representatives of the department of health and family services, 2
3representatives of the department of industry, labor and job development and 2
4representatives of the department of education.
SB540,9,75 (b) A grant may be awarded only to an applicant that agrees to match the grant
6or to secure a match from local sources, through money or in-kind services, or both,
7as follows:
SB540,9,98 1. During the first year of the grant, in the amount of at least 25% of the amount
9received for that year.
SB540,9,1110 2. During the 2nd and subsequent years of the grant, in the amount of at least
1150% of the amount received for each year.
SB540,9,1412 (c) Each grant application shall include proof of the applicant's ability to comply
13with par. (b). Any in-kind services proposed under par. (b) are subject to the approval
14of the body awarding grants under par. (a).
SB540,9,25 15(3) Grant awards; criteria. In evaluating applications for grants, the body
16under sub. (2) (a) shall give priority to proposals that involve the planning and
17participation of multiple individuals and organizations, including child care
18providers, as defined in s. 46.98 (1) (am), employers, parents, head start agencies
19designated under 42 USC 9836, child care resource and referral service grant
20recipients under s. 46.984, school districts, private schools, counties, cities, villages,
21towns, tribal governments, providers of early childhood education, early childhood
22family education center grant recipients under s. 48.982 (6), right from the start
23grant recipients under s. 48.982 (7) and other individuals and organizations that
24have a demonstrated interest in or knowledge of child care, early childhood
25education or other services for young children and their families.
SB540,10,4
1(4) Use of funds; functions of local early childhood councils. Any amounts
2granted under this section shall be used for the establishment or operation, or both,
3of a local early childhood council. A local early childhood council funded under this
4section shall do all of the following:
SB540,10,65 (a) Designate an individual to serve as the facilitator of the local early
6childhood council.
SB540,10,107 (b) Conduct an assessment of child care and early childhood education
8programs and other services for young children and their families that are available
9in the community and an assessment of the need for those programs and services in
10the community.
SB540,10,1111 (c) Develop a plan to do all of the following:
SB540,10,1312 1. Increase the supply and accessibility of high-quality child care and early
13childhood education programs in the community.
SB540,10,1814 2. Foster coordination and communication between providers of child care and
15early childhood education, employers, the local public schools, parents and other
16appropriate individuals and organizations in the community to maximize the
17accessibility and quality of, and to minimize duplication in, the programs and
18services that are available in the community for young children and their families.
SB540,10,2119 3. Promote and increase public awareness of the characteristics and
20importance of high-quality child care and early childhood education for young
21children.
SB540,10,2422 (d) Advise the county department under s. 46.215, 46.22 or 46.23 on the
23development of the county department's proposed budget for the expenditure of
24funds allocated under s. 46.40.
SB540,11,5
1(5) Membership of local early childhood councils. Membership on a local
2early childhood council funded under this section shall be open to all persons and
3organizations in the community with a demonstrated interest in or knowledge of
4child care, early childhood education or other services for young children and their
5families and shall include all of the following persons as members:
SB540,11,66 (a) One or more parents of young children.
SB540,11,77 (b) One or more providers of family child care.
SB540,11,88 (c) One or more providers of center-based child care.
SB540,11,99 (d) One elected county official.
SB540,11,1010 (e) One or more representatives of each of the following:
SB540,11,1111 1. A local employer.
SB540,11,1212 2. The local school district.
SB540,11,1413 3. The county department receiving child care funds under s. 46.98 and any
14entity administering those funds if different from the county department.
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