(1) As used in this section, unless the context otherwise requires: (a) "Child care development" means: (I) The development or creation of a new child care facility; or (II) Remodeling or retrofitting an existing building or space to be a child care facility. (b) "Eligible recipient" means a local government that is eligible to receive a grant through the program. (c) "Program" means the child care facility development planning grant program that is created in subsection (2)(a) of this section. (2) (a) There is created in the division the child care facility development planning grant program to incentivize and support local governments in identifying and making regulatory updates or improvements to community planning, development, building, zoning, and other regulatory processes to support the development of child care facilities. Eligible recipients that intend to implement one or more of the recommended policy or regulatory tools set forth in subsection (3)(c) of this section or identify other local policies or programs to implement to streamline the eligible recipient's regulatory environment for development of child care facilities as set forth in subsection (3)(b) of this section and that can benefit from additional funding for implementation may receive grants pursuant to the program. Grant money may be used by an eligible recipient to retain consultants or related professional services to assess the child care needs of its community, including considerations of equity, or to make changes to its policies, programs, development review processes, land use codes, and related rules and regulations to promote development of child care facilities. (b) In administering the program, the division shall provide assistance to eligible recipients on best practices and tools for incentivizing the development of child care facilities. (c) The division shall consult with the department of early childhood, created in section 26.5-1-104 (1), in developing the menu of recommended policy or regulatory tools pursuant to subsection (3) of this section and the policies and procedures required to be adopted pursuant to subsection (4)(a) of this section. (3) (a) In connection with the policies, procedures, and guidelines that the division is required to adopt for the program pursuant to subsection (4)(a) of this section, the division shall develop a menu of recommended policy or regulatory tools that eligible recipients can adopt to promote development of child care facilities within their territorial boundaries or across their region. (b) The menu of recommended policy or regulatory tools that the division is required to develop pursuant to subsection (3)(a) of this section must include known or promising best practices. Implementation of any recommended policy or regulatory tools is at the discretion of the eligible recipient based on compatibility with community needs and desires. Eligible recipients may select from the menu of recommended policy or regulatory tools or identify other local policies or programs to streamline the eligible recipient's regulatory environment for development of child care facilities. (c) (I) The menu of recommended policy or regulatory tools developed by the division pursuant to this subsection (3) must set forth strategies to promote development of child care facilities including: (A) The use of vacant publicly owned real property for child care facility development; (B) Examining or revising local land use policies and regulations to incentivize the development or creation of child care facilities; (C) Creating a local public funding source dedicated to child care facilities; (D) Aligning local rules and regulations, such as building codes or zoning codes, with state licensing requirements; and (E) Any other strategies determined by the division that meet the intent of the program for aligning and streamlining the regulatory environment for child care to incentivize the development of child care facilities. (II) In addition to the items that the menu of recommended policy or regulatory tools may include set forth in subsection (3)(c)(I) of this section, development of the menu by the division must also allow for the adoption by an eligible recipient of additional policy or regulatory tools that provide novel, creative, or innovative incentives for the development of child care facilities. (4) (a) On or before November 1, 2024, the division shall adopt policies, procedures, and guidelines for the program, including: (I) Procedures and timelines for local governments to apply for grants; (II) Criteria for evaluating applications for approval and the amount of grants; (III) Performance criteria for eligible recipients; and (IV) Reporting requirements for eligible recipients. (b) Evaluation criteria established pursuant to this subsection (4) must include favorable consideration for applications in which the local government demonstrates commitment to evaluating and implementing one or more of the recommended policy or regulatory tools set forth in subsection (3)(c)(I) of this section and, the more recommended policy or regulatory tools the applicant demonstrates a commitment to evaluating and implementing, the more weight the division shall give the application. (c) The division has sole discretion in determining the amount of grants and any restrictions or conditions on the use of grants by eligible recipients in accordance with the provisions of this section. (5) On or before January 1, 2026, January 1, 2027, and January 1, 2028, the division shall publish a report that summarizes the use of all grants from the program in the preceding fiscal year. The report must include the amount of grants distributed to eligible recipients and a description of each eligible recipient's use of the grant. The report may contain recommendations of the division for future administration of the program. The report must be shared with the house of representatives education committee, the house of representatives transportation, housing, and local government committee, the senate education committee, and the senate local government and housing committee, or their successor committees, and with the department of early childhood, and must be posted on the division's website. (6) This section is repealed, effective July 1, 2028.
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