P.L. 2022, c.025 (S2476 3R)

An Act establishing ²[an]² infant and toddler child care grant ²[program] programs², supplementing Title 30 of the New Jersey Statutes, and making an appropriation.

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

²[1. a. ¹[There is established in the] The¹ Department of Human Services, in coordination with the Department of Education, the Bureau of Licensing in the Department of Children and Families, and the New Jersey Economic Development Authority, ¹shall establish a grant program, which shall be known as¹ the ¹“¹Thriving By Three ¹”¹ grant program ¹, the purpose of which shall be¹ to incentivize the development of child care programs for infants and toddlers ¹[and] ,¹ provide technical assistance to child care services providers for the expansion of child care spaces for ¹[infant] infants¹ and toddlers ¹[. The purpose of the grant program shall be to] ,¹ address ¹[the]¹ shortages ¹[of] in the number of¹ regulated child care ¹providers that are available¹ for working families ¹,¹ and ¹[to]¹ support the developmental needs of young children.

b. ¹[Grants under] Under¹ the program ¹, the department¹ shall ¹[be awarded to a licensed child care or registered family day care provider, Head Start program, or school district] award one-time grants,¹ on a competitive basis ¹, to licensed child care providers, registered family day care providers, Health Start programs, and school districts that meet the requirements of subsection c. of this section¹ . Providers, programs, ¹[or] and¹ school districts that ¹[receive a grant under the program shall use the funds to develop or expand quality child care spaces for infant and toddlers , and preference shall be given to providers, programs, or school districts:

(1) located in communities identified as child care deserts with little or no child care options for infants and toddlers;

(2) located in communities with high percentages of low-income families; and

(3) that can align their infant and toddler child care programs with high-quality preschool, support collaborations for shared services, and build upon existing early childhood education services] meet the requirements of subsection c. of this section shall be eligible for both a one-time grant that may be used to renovate, improve, expand, or reconstruct existing facilities to increase the number of infant and toddler child care spaces or classrooms, as appropriate, and for a one-time grant that may be used to recruit staff and provide staff development opportunities. One-time grants awarded to increase the number of infant and toddler child care spaces or classrooms and one-time grants awarded to recruit staff and provide staff development opportunities may be awarded to a provider, program, or school district at separate times¹ .

c. To be eligible for consideration ¹[of] for¹ a grant award, a licensed child care ¹[or] provider,¹ registered family day care provider, Head Start program, or school district shall:

(1) submit an application to the Commissioner of Human Services, in ¹[accordance with application procedures and requirements] a form and manner as shall be¹ prescribed by the commissioner ¹, which application shall outline the purposes for which a grant award would be used¹ ;

(2) comply with the current child care licensing standards for infant and toddler child care, including ¹,¹ but not limited to, class size, ¹[child to staff] child-to-staff¹ ratios, and health and safety standards;

(3) participate in the State’s child care quality rating and improvement system, Grow NJ Kids ¹[(GNJK)]¹ ;

(4) require ¹[classroom teachers] room supervisors¹ to have earned ¹[or to attain]¹ an infant and toddler child development associate (CDA) or equivalent credential ¹or to attain a CDA or equivalent credential¹ within two years of ¹the effective date of this act or within two years of commencing¹ employment ¹with the provider, program, or school, whichever occurs later¹ ; and

(5) require that ¹[classroom teachers with] every six to eight rooms at the provider, program, or school be supervised by at least one individual who holds a¹bachelor of arts ¹[degrees supervise at least six but no more than eight classrooms or up to] degree and has at least two years of early childhood experience, provided that no room supervisor shall be responsible for supervising more than¹ 24 children at one time.

d. ¹(1)¹ The commissioner shall establish selection criteria for the awarding of grant funds under the program. One-time grants shall be awarded ¹, in an amount to be determined by the commissioner,¹ based upon review of the applications and subject to the availability of funds ¹[, and shall be used:

(1) to expand, renovate, or reconstruct existing facilities to increase the number of infant and toddler child care spaces or classrooms, as appropriate; and] .¹

(2) ¹[for staff recruitment and staff development initiatives] In awarding grants pursuant to this subsection, the commissioner shall establish a preference for licensed child care providers, registered family day care providers, Head Start programs, and school districts that:

(a) are located in communities with few or no child care options for infants and toddlers;

(b) are located in communities with high percentages of low-income families; and

(c) can align the provider’s, program’s, or school district’s infant and toddler child care programs with high-quality preschools, support collaborations for shared services, and build upon existing early childhood education services¹ .

¹[Additional grants shall be made] (3) In addition to the one-time grants awarded to increase the number of infant and toddler child care spaces or classrooms and the one-time grants awarded to recruit staff and provide staff development opportunities the commissioner shall make an additional one-time grant¹ available to ¹any¹ family day care ¹[providers who meet all the eligibility requirements pursuant to subsection c. of this section to incentivize such providers to register] provider that is registered¹ with the Department of Children and Families in accordance with the “Family Day Care Provider Registration Act,” ¹[P.L. L. 1987, c. 27] P.L.1987, c.27¹ (C.30:5B-16 et seq.). ¹An additional grant awarded pursuant to this paragraph may be used to increase the number of infant and toddler child care spaces, to recruit staff and provide staff development opportunities, or both.¹

e. A licensed child care ¹[or] provider,¹ registered family day care provider, Head Start program, or school district receiving a grant under the program ¹[and using]¹ that ¹uses the¹ grant to expand, renovate, or reconstruct existing facilities to increase the number of infant and toddler child care spaces or classrooms, as appropriate, shall receive from the Department of Human Services a child care reimbursement rate of $22,000 per year per child to ¹[cover] help offset the cost of additional¹ staff salaries ¹, which salaries shall be¹ commensurate with the infant and toddler ¹[child development associate (CDA)] CDA¹ or ¹[other]¹ equivalent credential ¹held by the additional staff members¹ .

f. The commissioner shall ¹[establish the amount for each grant that is approved and shall]¹ :

(1) publicize the existence of, and encourage licensed child care ¹[or] providers,¹ registered family day care providers, Head Start programs, ¹[or] and¹ school districts ¹[in applying] to apply¹ to participate in, the ¹grant¹ program; and

(2) provide technical assistance to the grant awardees to meet the requirements of the ¹grant¹ program.

g. Within one year after receiving a grant award under the program, a licensed child care ¹[or] provider,¹ registered family day care provider, Head Start program, or school district shall submit a report to the Department of Human Services containing information on the provider’s, program’s, or school district’s use of the grant funds. The report shall include, at a minimum, information on the number of additional infant and toddler child care spaces created using grant funds, ¹the number of additional staff hired and any staff development initiatives created using grant funds,¹ increases or improvements in the provision of child care services as a result of the grant, and any notable changes in child care enrollment and attendance rates or other measures ¹the provider, program, or school district observed¹ since receiving the grant.]²

²1. This act shall be known and may be cited as the “Thriving By Three Act.”²

²2. The purpose of this act shall be to incentivize the expansion of capacity for infants and toddlers, provide technical assistance to child care providers for the expansion of child care spaces for infants and toddlers, address shortages in infant and toddler care capacity that is available for working families, and support the developmental needs of young children.²

²3. a. The New Jersey Economic Development Authority shall award one-time grants, on either a competitive or rolling application basis, to licensed child care providers, registered family day care providers, ³and³ Head Start programs ³[, charter schools, renaissance schools, and school districts]³ that meet the requirements of subsection b. of this section. Providers ³[,] and³ programs ³[, schools, and school districts]³ that meet the requirements of subsection b. of this section shall be eligible for a one-time grant that may be used to renovate, improve, expand, or reconstruct existing facilities in a manner that will have the predominant effect of increasing the number of infant and toddler child care slots or classrooms, as appropriate. The authority may provide technical assistance to assist providers in meeting the requirements of the grant program.

b. To be eligible for consideration for a grant award under this section, a licensed child care provider, registered family day care provider, ³or³ Head Start program ³[, charter school, renaissance school, or school district]³ shall:

(1) submit an application to the authority, in a form and manner as shall be prescribed by the authority and in accordance with criteria established by the authority in consultation with the Commissioner of Human Services, which application shall outline the purposes for which a grant award would be used;

(2) comply with the current child care licensing standards for infant and toddler child care, including, but not limited to, class size, child-to-staff ratios, and health and safety standards; and

(3) participate or apply to participate in the State’s child care quality rating and improvement system, Grow NJ Kids.

c. In awarding grants under this section, the authority shall give preference to providers ³[,] and³ programs ³[, schools, and school districts]³ that:

(1) are located in communities identified as child care deserts with few or no options for high-quality child care for infants and toddlers;

(2) are located in communities with high percentages of low-income families; and

(3) can align their infant and toddler child care programs with high-quality preschool programs, support collaborations for shared services, and build upon existing early childhood education services.²

²4. a. The Commissioner of Human Services shall award grants, on a competitive basis pursuant to criteria established by the Commissioner of Human Services, to licensed child care ³[centers] providers³ , registered family day care providers, ³and³ Head Start programs ³[, and school districts]³ that meet the requirements of subsection b. of this section. Providers ³[,] and³ programs ³[, schools, and school districts]³ that meet the requirements of subsection b. of this section shall be eligible for a one-time initial grant that may be used to: purchase equipment; recruit, train, or compensate staff for new infant and toddler slots or classrooms; and for other initiatives to support the expansion of infant and toddler child care capacity. The Department of Human Services may provide technical assistance to assist providers in meeting the requirements of the grant program.

b. To be eligible for consideration for a grant award under this section, a licensed child care provider, registered family day care provider ³[,] or³ Head Start program ³[, charter school, renaissance school, or school district]³ shall submit an application to the Department of Human Services, in a form and manner as shall be prescribed by the Commissioner of Human Services and in accordance with criteria established by the Commissioner of Human Services, which application shall outline the purposes for which a grant award would be used. Eligible providers shall include, but shall not be limited to, providers that receive a grant from the Economic Development Authority pursuant to section 2 of this act. To be eligible for consideration for a grant award under this section, an applicant shall additionally:

(1) comply with the current child care licensing standards for infant and toddler child care, including, but not limited to, class size, child-to-staff ratios, and health and safety standards;

(2) demonstrate that the grant funding will be used to support the expansion of infant and toddler child care capacity; and

(3) participate or apply to participate in the State’s child care quality rating and improvement system, Grow NJ Kids.

c. The commissioner shall establish selection criteria for the awarding of grant funds under the program. One-time initial grants shall be awarded, in an amount to be determined by the commissioner, based upon review of the applications and subject to the availability of funds.

d. The department shall calculate the initial grant award for an eligible recipient based on the number of new infant or toddler child care slots that will be supported through the grant program created pursuant to this section. Initial grants awarded pursuant to this section shall be in an amount that is not less than $3,000 per new infant or toddler child care slot that will be supported through the grant program.

e. (1) Subject to appropriation and the availability of funds, grant recipients not already participating in Grow NJ Kids at the time the grant recipient applied to the department for a grant award under this section, which recipients apply to participate in Grow NJ Kids as a condition of program eligibility, shall be eligible to apply for and receive up to two additional grant awards to allow for time for the recipient to join and become rated under Grow NJ Kids. A recipient shall not be eligible for an additional grant award under this subsection if the recipient has received a Grow NJ Kids rating.

(2) A grant recipient shall apply for additional grant awards pursuant to paragraph (1) of this subsection in a form and manner as shall be prescribed by the commissioner. The application for an additional grant award shall outline the purposes for which the grant would be used. Additional grant awards may be used for the same purposes as are authorized for grants awarded pursuant to subsection a. of this section.

(3) The department shall calculate an additional grant award for an eligible recipient based on the number of new infant or toddler child care slots that are supported using the recipient’s initial grant award. Additional grants awarded pursuant to this subsection shall be in an amount that is not less than $1,200 per infant or toddler child care slot that will be supported through the grant program.

(4) A first additional grant awarded pursuant to this subsection shall be paid on the first day of the 12th month next following the date the initial grant award is paid. A second additional grant awarded pursuant to this subsection shall be paid on the first day of the 24th month next following the date the initial grant award is paid.

f. In awarding grants under this section, the commissioner shall give preference to providers ³[,] and³ programs ³[, schools, and school districts]³ that:

(1) are located in communities identified as child care deserts with few or no options for high-quality child care for infants and toddlers;

(2) are located in communities with high percentages of low-income families; and

²5. The Economic Development Authority and the Department of Human Services shall each publicize the existence of, and encourage licensed child care providers, registered family day care providers, ³and³ Head Start programs ³[, charter schools, renaissance schools, and school districts]³ to apply to participate in, the grant programs established under this act; and shall provide technical assistance to the grant awardees to meet the requirements of the grant program.²

²6. Within one year after receiving a grant award under this act, a licensed child care provider, registered family day care provider, ³or³ Head Start program ³[, charter school, renaissance school, or school district]³ shall submit a report to the agency that awarded the grant to the licensed child care provider, registered family day care provider, ³or³ Head Start program ³[, charter school, renaissance school, or school district]³ containing information on the provider’s ³[,] or³ program’s ³[, school’s, or school district’s]³ use of the grant funds. The report shall include, to the extent relevant, information any new infant and toddler child care capacity, including new slots, created using grant funds, any staff recruitment initiatives supported using grant funds, increases or improvements in the provision of child care services as a result of the grant, and any notable changes in child care enrollment and attendance rates or other measures the provider ³[,] or³ program ³[, school, or school district]³ observed since receiving the grant.²

²[2.] 7.² The Commissioner of Human Services ²and the Economic Development Authority² shall ²each² submit a report to the Governor, and to the Legislature pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1), no later than two years after the establishment of the ²[Thriving By Three infant and toddler child care]² grant ²[program] programs established pursuant to this act² . The report shall include, but need not be limited to, information on the number of grant applicants, the number and amounts of ¹[the grant awards] grants awarded, the purposes for which grant funds were used¹ , the number of additional infant and toddler child care spaces created using grant funds, information provided by licensed child care ¹[and] providers, registered¹ family day care providers, ³and³ Head Start programs ³[, ²charter schools, renaissance schools,² and school districts]³ under ²[subsection g. of]² section ²[1] 6² of this act, and any recommendations concerning the continuation or expansion of the grant ²[program] programs² .

²[3.] 8.² The ²Economic Development Authority and the² Commissioner of Human Services, in consultation with the Department of Education ²[,] and² the Bureau of Licensing in the Department of Children and Families ²[, and the New Jersey Economic Development Authority]² , pursuant to the “Administrative Procedure ¹[Act”] Act,”¹ P.L.1968, c.410 (C.52:14B-1 et seq.), ²[shall] may each² adopt such rules and regulations as ¹may be¹ necessary to implement the provisions of this act.

²[4.] 9.² There is appropriated ²[to the Department of Human Services]² ¹the following sums ³[, which shall be used by the department]³ to effectuate the provisions of this act¹ :

a. ²[$22,000,000] $8,000,000² from the General Fund ²[from the federal “Coronavirus State Fiscal Recovery Fund” established pursuant to the federal “American Rescue Plan Act”, Pub.L.117-2, which] to the ³[Division of Disaster Recovery and Mitigation in the Department of Community Affairs, which sum shall be made available to and used by the]³ Economic Development Authority to effectuate the provisions of section 3 of this act, of which a reasonable amount not to exceed five percent may be used by the authority for organizational, administrative and other work and services, including salaries, equipment, services, and materials necessary to administer the activities authorized by this act ³[. The authority shall enter into a memorandum of understanding or grant agreement, as applicable, with the division to effectuate the purposes of this subsection, to establish appropriate administrative costs, and to ensure compliance with federal rules and guidance²]³ ; and

b. ²[$6,000,000] $20,000,000² from the ²[federal “Coronavirus State Fiscal Recovery Fund” established pursuant to the federal “American Rescue Plan Act”, Pub.L.117-2, of which ¹[the following amounts shall be distributed by the authority, on a one-time basis, to a licensed child care or registered family day care provider, Head Start program, or school district awarded a grant in accordance with section 1 of this act:

(1)] amount¹ $5,000,000 ¹shall be dedicated to grants awarded¹ to cover the costs of renovating, improving, expanding, or reconstructing existing ¹[child care]¹ facilities ¹[, as appropriate;] to increase the number of infant and toddler child care spaces and classrooms,¹ and

¹[(2)]¹ $1,000,000 ¹[for] shall be dedicated to grants awarded to cover the costs of¹ staff recruitment initiatives and creating scholarships for staff development and training] General Fund to the Department of Human Services to effectuate the provisions of section 4 of this act, of which a reasonable amount not to exceed five percent may be used by the department for organizational, administrative and other work and services, including salaries, equipment, services, and materials necessary to administer the activities authorized by this act² .

²[5.] 10.² This act shall take effect ²[on the first day of the sixth month next following enactment] immediately² .

Establishes Thriving By Three Act to award competitive grants for infant and toddler child care programs; appropriates $28 million.