Amends TCA Title 9; Title 37 and Title 71.

This bill creates the child care improvement fund within the state general fund. The department of human services is required to administer the fund and must allocate and disperse grants each fiscal year from the fund to nonprofit organizations to be expended only for establishing a new child care agency in this state or making improvements to, or assisting with staffing, recruitment, or salary gaps, at an existing child care agency in this state. Moneys deposited in the fund must only be used to implement and administer these purposes.<br /> <br /> In addition to appropriations made to the fund, the department is authorized to accept other funds, private or public, by way of gift or grant to the fund. The state treasurer is required to invest moneys in the fund for the benefit of the fund. Interest accruing on investments and deposit of the fund must be credited to and remain part of the fund. Any unencumbered moneys and any unexpended balance of the fund remaining at the end of the fiscal year do not revert to the general fund, but must be carried forward until expended. All expenditures from the fund are subject to review in the form of an annual report submitted by the department to the commissioner of finance and administration.<br /> <br /> ON APRIL 21, 2023, THE SENATE ADOPTED AMENDMENT #1 AND PASSED SENATE BILL 543, AS AMENDED.<br /> <br /> AMENDMENT #1 makes the following changes to this bill:<br /> <br /> (1) Creates a child care improvement pilot program to provide grants to nonprofit organizations to be used for establishing a new child care agency in this state or making improvements to, or assisting with staffing, recruitment, or salary gaps, at an existing child care agency in this state. The program must be operated from July 1, 2023, to June 30, 2026;<br /> <br /> (2) Removes the provision that required the department to allocate and disperse grants each fiscal year from the fund to nonprofit organizations to be expended only for establishing a new child care agency in this state or making improvements to, or assisting with staffing, recruitment, or salary gaps, at an existing child care agency in this state;<br /> <br /> (3) Clarifies that all expenditures from the fund are subject to review in the form of a written report submitted by the department to the commissioner of finance and administration no later than January 15, 2024, and by January 15 each year thereafter until the close of the pilot program period.<br />