S.B. 248 Child Care Expansion Act

What this bill does

The bill would have the state retrofit one already-owned state building into a childcare center, which would then be leased to a private employer. That employer would contract with a licensed Utah childcare provider to run the center, with half the slots reserved for state employees, military members, and community members and the other half going to the employer's workers.

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Every vote

• 3 yes, 0 no, 3 absentSenate Economic Development and Workforce Services Committee: Amendment Recommendation · Feb 13, 2026Who voted how
• 4 yes, 1 no, 1 absentSenate Economic Development and Workforce Services Committee: vote to approve it · Feb 13, 2026Who voted how
• 19 yes, 4 no, 6 absentFirst of two Senate votes · Feb 24, 2026Who voted how
• 13 yes, 9 no, 7 absentSenate vote, which failed · Feb 25, 2026Who voted how
• 17 yes, 9 no, 3 absentFinal Senate vote · Feb 25, 2026Who voted how
• 5 yes, 3 no, 2 absentHouse Economic Development and Workforce Services Committee: vote to approve it · Mar 3, 2026Who voted how
• 25 yes, 47 no, 3 absentHouse vote, which failed · Mar 4, 2026Who voted how

Hearings and debates

• Feb 13, 2026 Senate Economic Development and Workforce Services Committee▶ Watch
  Transcript (30 turns)

  1. Committee chair35:06

     Now we're gonna go to Senate bill 2 48. Uh, Senator Escamilla. And I see that you have an amendment for that. Correct. Okay. Do you want us to pass? Do you wanna tell us what the amendment is? And then do you want us to

  2. Sen. Luz Escamilla35:23

     Of course. Thank you Madam Chair and thank you. Committee. Um, amendment one is a technical change that was requested, uh, for just clarification in terms of, I think it's a, um, liability pieces, so just technical so we could actually implement what we want to do. Do.

  3. Committee chair35:37

     Okay. Alright. Thank you very much. Okay. So, um, we have Amendment one, uh, Senate Amendment one online for SB 2 48. Senator Kwan.

  4. Sen. Karen Kwan35:50

     Thank you Madam Chair. I move, uh, Senate Amendment one and Senator Escamilla ISS name.

  5. Committee chair35:56

     Okay. Uh, we have a motion to move Senate Amendment one. Um, any discussion to that motion? All in favor indicate by saying aye. Aye. Aye. Any opposed? Okay. That motion passes. So thank you very much and you're, let's, we will hear Senate Bill 2 48 as amended. Thank you very much. Senator Rest. Thank

  6. Sen. Luz Escamilla36:21

     You, Madam Chair. And, um, and thank you committee again for this opportunity. This bill has had, um, an evolution in the last three years, and I think all of you have participated in some of the conversations and what we ended after this last summer work. Um, and we had multiple people participating and trying to get us to a place where we can continue to be, uh, bring solutions to the toolbox and tools to that toolbox addressing, uh, workforce need. And that workforce need has to ties directly to family. And that is how do we, um, assist and make sure that our workers that we're investing in have an opportunity to provide high quality childcare for their children. I know the state has been very committed to making sure that we work for fa with families and, um, address their needs and make sure that they also feel that they have the support to continue growing families. We're seeing obviously, uh, you know, uh, decrease on our, uh, fertility rate. We wanna make sure our children are, are, you know, we are in incentivizing ways for families to continue to work and thrive here in Utah. So where we ended with this new version of the Childcare Expansion Act is, um, it's a private public partnership. It's always been, um, a priority for, for this bill. And, um, what it does is it creates, um, a state incentive. Um, and I'll explain what that incentive is. It, the incentive looks like a retrofitting of one of our facilities that is available for, uh, you know, for, for a lease. And we will enter into a contract in, in a partnership with a private employer. It could be a large employer or a co-op of small, small businesses that could come together. And this private employer, whoever that is, will then take, um, will enter into a lease agreement. And that's why we have the FCM with us this morning 'cause they've been very helpful in this process. And then they will be the ones, um, license, you know, um, and contracting for childcare to be provided at this facility. Part of that private public partnership is, as we incentivize with the investment, the capital investment for retrofitting this, this part of the property is that we will get 50% of the seats available for childcare for our state employees. And in, in this specific piece of legislation, Madam Chair, uh, you will see that we are in a very specific, um, location where the need is high for our state employees. And I'll let the, um, DFCM if that's okay with you, uh, provide just how we got to this location and where we are talking about it. Thank you. Okay. Thank you.

  7. Andy Marr, Division Director, DFCM39:06

     Thank you, Madam Chair. My name is Andy Mar. I'm the division Director of DFCM. Uh, we've been working a couple years on this with Senator Escamilla, and last year we had a feasibility study that looked at probably five or six different locations around the valley. None of those are really gonna work really well for this application, so we decided to go back to the drawing board and look for any vacant space. We didn't want to build any new buildings, we didn't want to have a substantial cost there. Um, so we identified the tax commission warehouse out here on 1950. West Tax Commission really has evolved in the way that they're storing materials and distributing materials. So there's quite a bit of vacant space available in the tax commission building. Um, and it's essentially a located location. So what we've done this year is we've executed a new feasibility study to see what the impacts to the, the building would be. Um, and we, we feel like we have a couple of options, uh, should the Bill pass and DFCM is ready to, to help should that be the case.

  8. Committee chair40:01

     Okay. And thank you. If I can just Sure.

  9. Andy Marr, Division Director, DFCM40:04

     Keep going to find. Thank you Madam Chair. Um, I think, you know, the key P piece here is that not only do you have the tax commission, um, staff and, and state employees you are across from, um, also the Department of Health and Human Services, which is a large employer. And, you know, I I definitely think that this is a very delicate line of making sure that, you know, the state is, um, it's addressing barriers, but at the same time, not, um, you know, doing certain, um, work that we have experts. And that's why the bill is very careful to say, look, you, you employer, that will be in this private public partnership with the state, you need to hire a high quality childcare provider. Um, that is a local company, so it can't be an out of state. We were making sure we wanna protect also our own providers. And, um, you know, we, we are addressing a really interesting issue right now as we see new generations of younger families and entering the workforce. I know for the state and in my own office, I've got permission from one of our staff members that just, um, had a baby not that long ago last year. Um, just, we almost lost her 'cause we could, she was in a waiting list for childcare and, and we were struggling, um, to Helper. And so I know this is something really critical for, as we continue to invest in our state employees and we're competing with the private sector, uh, we wanna make sure that our, our benefit packages and ability to access high quality childcare are, are part of them. And Senator Fillmore right now is running an interesting legislation that I think is important is how do we make our, our recruitment and retention competitive through our, our, our benefits. I think childcare could be one of those in this specific facility. This is not gonna solve all the childcare problems. That's, I wanna be very clear. We, I'm running other bills. We have a, a package of about five bills. We're using, uh, tax incentives. We're using grants to get more home-based childcare available in the state because of the childcare testers. We wanna make sure we're, we're flexible and we, and this is an opportunity that I think is worthwhile investing. And, um, because of the previous years where, um, things were not moving, um, I've had, uh, the opportunity to work with leadership to try to make sure we, we are, you know, managing the expectations. And I think this landed in the right place. And without Madam Chairman open for questions.

  10. Committee chair42:34

      Okay. Questions from the committee.

  11. Unknown speaker42:40speaker not certain

      I, I have, I have a couple questions. First of all, um, this, I wanna make sure I understand this correctly. So the idea here is that DFCM would, um, remodel this facility, make it into a childcare facility, correct? Correct. At uh, before or after we find a business that wants to be in this. After, After, so we'd find the business, we would work with them who bears the capital cost of this, Of the retrofitting, the state Of the retrofitting. That will be our investment into the private public partnership. So the state would bear the cost of remodeling the city. Mm-hmm. 'cause I, I don't really see that in the physical note. 'cause I know you're not going to do that for $250,000. So I don't Yeah, I, I've done one of these before, so, um, and that was a long time ago, so I, I know you're not doing it for that, so, no, it's, it's, so what kind of state investment would we be making? Do you have any estimates on that? Sure. We have a number of estimates in the bill. I believe the appropriation is 3.8. Um, and that was based on feasibility studies early. Um, And I think it's, we're in the fiscal note, Madam Chair. Well, fiscal note really relates to the operation of the facility. Looks like to me, more than it relates to the capital investment Cost of construction ranges generally from about 2.5 to 4.2 million with different options, adding different square footage with different programs, um, for different, you know, there's, there's options to right size it for X amount of kids, and then if there's opportunities to change that, we have that ability. Um, but it's, it's that 2.5 to 4.2. Okay. And then DFCM is gonna manage?

  12. Andy Marr, Division Director, DFCM44:41

      Correct. So This project, another

  13. Unknown speaker44:43speaker not certain

      Piece, so You're into childcare now? Well,

  14. Andy Marr, Division Director, DFCM44:46

      That is a great question. Uh, we currently have a, a childcare center in the Canon Health Building that we're managing. Um, and we would look to the same o and m structure that we have employed there to manage this. Uh, one of the discussions we had during the interim was how do we collect revenue to support that program? Um, so in the bill, there's a restricted fund that set up that would take the lease revenues from whoever's selected to run it. The portion of that, that would be attributable to operation and maintenance would come to DFCM to cover those costs. And we would analyze those costs every year and adjust that accordingly.

  15. Unknown speaker45:21speaker not certain

      Okay. And then they, um, then from the business, the, the, the whoever you're partnering with, they are paying part of the cost of the childcare, I'm assuming their employees are, are our state employees paying the cost of childcare or is that your,

  16. Andy Marr, Division Director, DFCM45:41

      And let me answer that question. That's a great question. So the, the relationship between the state and the employer that will be the partner is that they will run the childcare. Okay. So when I think your question about the role of the FCM, the role of the FCM is the same role that it will be on any other facility. They're, they're renting, leasing the property. They're not engaged on who the childcare, uh, provider is. That is the employer. The employer bears all of that, including the liability. And they are the ones that are dealing with their 50% of, um, workers that are their, whether they do full free childcare for their workers or employees is up to them. That's their, their work, you know, their workforce for the state. Then the estate employees will pay. Um, and it does describe just a type of scale fee base, uh, based on income. They will pay for their, their childcare, but that will be all managed through that employer that is managing that childcare service.

  17. Unknown speaker46:45speaker not certain

      So, okay. Thank you.

  18. Committee chair46:49

      Um, Senator Kwan, oh, I'm sorry. Senator Stevenson.

  19. Sen. Jerry W Stevenson46:59

      It should be on. Is that okay? There we go. Yep. Uh, you know, I've bounced back and forth on these type of things for a lot of years now, and as my tenure in the legislature and, and you know, we, we are in a, our society has changed, and where it's changed is, is that, uh, you know, everyone's not like me anymore. They were, but I've got 23 grandchildren. I've got most of my granddaughter, my, my, uh, kids are going to have to work. My children mostly work, and they have, this would certainly be an asset to them, but I think that this is something we need to try and see how it fits. I know this, uh, I've noticed lately in the news that I think Salt Lake City, Salt Lake County has been in the childcare business and hasn't worked out as well as they thought. But I do believe that we need to look at these type of things. We look at, need to see if there are things we can do to accommodate these changes in our system and, uh, and in our society. But we, we all know one thing and that is, is that we're not producing as many children as we used to. And if something like this can help a little bit in that, so that we've got, got kids to move into the workplace, I'm getting to the point where I'm starting to look at who's gonna take care of me, the, you know, the next 20 years. Um, It's Corinne, But I, I just think that we need to look, look at these things. I now, that's the positive part of what I'm going to say, the, the not so positive part is, is that I know what our budget is offering us this year, and it's going to be very, very tight. And there are going to be things that are probably going to be passed and not funded due to lack of funds. And so, um, just be, be wise. I know Senator Esee, I appreciate you've worked hard on this for several years now, and, and I appreciate that. I, I do believe if we have the money, that it's probably a, a worthwhile direction for the state to go in and, and to try at least get a, a pilot put together, so to speak. So, uh, with that, I, I think I'm, I'm in favor of this, but be it known, there may not be funds to finish the project. Thank you. Thank you.

  20. Committee chair49:13

      Anyone else in the committee? Okay. Um, we'll take it to the public for public comment. Thanks. How many people and would would like to speak to this? Please raise your hand. Okay. Uh, then I'm gonna turn, uh, anybody online, I'm gonna turn this back to, uh, Senator Escamilla. Um, I'm, I'm, I'm ready for motion. Okay. Oh, okay. Um, Senator Juab.

  21. Sen. Karen Kwan49:42

      Thank you, Madam Chair. I move that we pass out SB 2 48, uh, with a favorable recommendation.

  22. Committee chair49:50

      Okay. There is a motion to pass out Senate Bill 2 48 as amended Amendment one, uh, childcare Expansion Act, uh, to the Senate with a favorable recommendation. Is there any discussion to that motion?

  23. Sen. Jerry W Stevenson50:07

      I, I just wanna say, I so appreciate the work that you have done, Senator Es and we, we've had this conversation, but, um, I just am not sure that the state should, if we were leasing the facility, even if we said, we'll, our contribution will be, and we're not leasing the facility, but we're only gonna give you a really low cost lease. You could do the infrastructure, um, put it in, do the remodel, et cetera, and we want some, you know, some spaces I, I could support that. I just don't think at this, the state being in this childcare business is, uh, to this degree is something that, that, that I can support. And I'm absolutely want more childcare, and I absolutely believe that only supply is going to make that happen. But I just have concerns about the way this is structured. And, but I also know how hard you've worked on it. I, I just want you to know that I thank you and I've been there. I know how you, you want something and you work hard on it. So I just wanted to say that.

  24. Committee chair51:15

      Thanks, Senator Stevenson. Just, Just very quickly, um, Senator Millner, You were the president of Weaver State University, and I'm assuming that's where you ran a project similar to this to see how it worked. And just very quickly tell us how it did work.

  25. Sen. Ann Millner51:31

      It didn't. Okay. That, I mean, uh, let, let me say two things. Um, we weren't trying to provide it for employees. Um, we were actually part of an even start program, the Glassman, uh, project, and we were trying to make childcare and educational programs together. We were trying to put that in place, and we actually had a downtown location, um, to do that because we were trying to make sure it was convenient to the parents. We made a very large investment in that because the standards that you have to meet are so high. Um, and it, it just, it didn't, it wasn't sustainable, even with private funds, um, helping to support it, it wasn't sustainable. So I, I do have to say it's, you know, it, it relates to my experience and, um, it, it just didn't work.

  26. Committee chair52:33

      Great. Thank you. Okay. Um, with that, I'm gonna come back to, um, I'm not seeing any further comments. All in favor of passing out, uh, SB 2 48 as Amended Childcare Expansion Act. Um, please indicate by saying aye. Aye. You've got three ayes and I'm a no. So, um, but it passes out three to one. I think I saw President, you're on muted. Yes. I, oh, President Adams, are you on?

  27. Sen. J. Stuart Adams53:09

      Yes. Vote Aye. Okay.

  28. Committee chair53:10

      President Adam Votes. Aye. So it's four to one.

  29. Sen. J. Stuart Adams53:13speaker not certain

      Thank you. Thank you, Madam Chair. Thank you. Thanks, committee.

  30. Committee chair53:19

      Okay. All right. Let's go to Senate Bill 2 77.

• Feb 24, 2026 Senate floor debate▶ Watch
  Transcript (4 turns)

  1. Sen. Luz Escamilla29:00

     Thank you Mr. President. Um, SB 2 48 creates a public private partnership to expand childcare capacity by retrofitting one existing state-owned building and leasing it to a private employer that will contract with a licensed Utah childcare provider to actually operate the center. We have worked for years and just trying to find solutions. I know this is not gonna fix all the problems, but it's one specific area where we have a lot of state employees. It's in the tax commission building. And, um, we've been working during the summer and fall to figure out what is a location that could provide this opportunity. As you know, uh, Utah's declining fertility rate is directly tied to the lack of access to affordable childcare. Employers across sectors report that childcare makes it harder to recruit and retain good workers. In our state, the state of Utah government, uh, faces the same workforce retention challenge and we've been talking about multiple bills related to compensation and other key pieces. And this is one more that will be helping to make it more competitive, um, for the state of Utah. So, as you know, the Salt Lake Chamber estimates the childcare breakdown cost of Utah's economy. It's about $1.36 billion annually. And you know the role of the state. I know this is a question that many of my colleagues have asked. It's a valid question. In this case, it will only be to retrofit the building. So it's ready for a license standards, um, a license center to be open. And this will happen after we get a private employer to enter into an agreement with the state. Um, it will then do the normal maintenance piece, um, and through the lease. And there will be obviously all of those paid by the private entity. Um, 50% of our of childcare slots will be reserved for state employees and military, uh, members. The role of the private sector will be to contract with a Utah based licensed childcare provider. They will operate and manage the center and they will hold all operational liability. They will pay the lease for the building and they will take 50% of the slots. The other ones for the state. This is not a government run childcare program. This is just one innovative way of retrofitting what we have a location that our warehouses right now in the, um, base, not basement, but on the, uh, first floor of the tax commission. And across the street you have HHS, which is a very large, uh, building with a lot of state employees and allowing the private employers, uh, getting to a contract with licensed providers. Um, I hope we can get to move forward with this. We've worked hard to get us to a place where we can see just one piece of working towards, um, you know, D-D-C-F-M has on visibility studies and get us to place where we just provide more access to childcare without Mr. President, I'm open for questions.

  2. Sen. J. Stuart Adams (presiding)32:00

     Thank you for the presentation. Senator Escamilla, no discussion on your bill. I'm here to go to you for action. Uh, waive summation and call the question. Thank you. And the question is, shall Senate Bill 2 48 be read a third time Roll call vote.

  3. Sen. J. Stuart Adams (presiding)32:15speaker not certain

     Senator Vickers Baldy. Lewin Aye. Brammer bus Colmore Escamilla Aye. Fillmore Grover Harper Kins. E Ipson Johnson. Yes. Juab McKay. Mikel Milner Musselman Owens Picture Lum Rebe Sandal Stevenson Aye. Bickers Weiler Wilson Weiler Aye. Winterton No more? I two.

  4. Sen. J. Stuart Adams (presiding)33:31

     President Adams Aye. Senate bill 2 48 Having received 19 yay votes for nay votes for nay votes. Six being absent. Shall we read a third time?

• Feb 25, 2026 Senate floor debate▶ Watch
  Transcript (7 turns)

  1. Sen. Luz Escamilla55:57

     existing state-owned building is actually the tax commission. We've been working, um, with leadership on during the summer and fall to get us to a place where we can, um, provide just extra availability for childcare. And um, you know, I presented at length yesterday, I won't do that, but it's the role of the state is the retrofitting, that's the investment. The rest contracts operation and hiring a Utah based licensed childcare. We'll all do through the private sector. We take 50% of the available slots for employees and community and also military. Just to be clear, um, the goal here is to create more childcare and access. And with that I'm open for any questions. Mr. President ProAm.

  2. Senate President (presiding)56:40

     Alright. Questions to the bill? Seeing no questions. Senator Escamilla,

  3. Sen. Luz Escamilla56:47

     Um, waive summation and call the question.

  4. Senate President (presiding)56:49

     The question is, shall Senate bill two forty eight pass Roll call vote.

  5. Senate clerk56:55

     Senator Vickers Baldry Lewin Aye. Bramer Bus Cullimore Escamilla Aye. Fillmore No. Grover, no. Harper Hankins Ipson Johnson Bon McKay Mikel Brammer Mikel Milner Bus Musselman Owens pitcher Plum Rebe Determined Sandal Stevenson Stratton Stevenson Aye. They get that Bickers Weiler Wilson Winterton Es changes to, to no

  6. Senate President (presiding)58:24

     President Adams Senate Bill 2 48 having received 13 yay votes nine nay votes, seven being absent fails and will be returned to staff for filing. Senate bill 2 7 6, Senate Bill 2 76. Veteran Organization Amendments. Senator Millner. Senator Millner.

  7. Sen. Calvin Millner58:59

     Um, what this bill does is give veterans tax exempt organizations the same, uh, nonprofit status as we have for nonprofits

• Feb 25, 2026 Senate floor debate▶ Watch
  Transcript (11 turns)

  1. Senate President (presiding)1:41:46

     Senator Escamilla. Senator Escamilla to the bill now.

  2. Sen. Luz Escamilla1:41:49

     Thank you Mr. President. Um, just needed to count my votes. I apologize. We're back here in private public partnership to get more access to childcare. And with that I'm open for questions. Mr. President, Thank you again. I, we heard this bill earlier. Apparently we, it didn't make it through the process. I don't see discussion on it again right now, so I'm gonna go back to you. Wait, Summation and call the question.

  3. Senate President (presiding)1:42:13

     Thank you. And the question is, shall Senate bill 2 48 pass quel vote.

  4. Unknown speaker1:42:18

     Senator Vickers Derry Lewin Aye. Bramer Bus Colmore Aye. As Camilla Fillmore Grover Harper Kins Ipson Johnson Quan McKay Mikel Milner Musselman Owens Pitcher Plum Rebe Sandal Stevenson Stratton Vickers Weiler Aye. Wilson Aye. Winterton President Adams Aye.

  5. Senate President (presiding)1:43:19

     Senate Bill 2 48 Having received 17 yay votes nine nay votes, three being absent passes this body and will be sent to the house for their consideration. We're gonna leave the oh, Senator Fillmore, before we leave the third reading calendar, I'll go to you.

  6. Sen. Lincoln Fillmore1:43:35

     Thank you Mr. President. The fiscal note has caught up to Senate Bill one 19, the third substitute Senate Bill one 19. Make a motion to encircle it.

  7. Senate President (presiding)1:43:47

     Okay, so we're mo making a motion to encircle Senate bill one 19, correct? Yes. School and Classroom amendments. Third substitute Senate Bill one 19. All in favor say aye. Aye. Any opposed? Will that motion passes. The bill is encircled. Senator Fillmore. Thank

  8. Sen. Lincoln Fillmore1:44:07

     You. Uh, a reminder for the body that Senate Bill one 19 started with a very significant, uh, financial change, um, that I know school districts did not support. I've taken that out. Uh, so, um, what's left here is just the development of a, uh, Utah centered curriculum, uh, for grades K through eight. This is supported by the state superintendent. Uh, I don't, I'm certain that, uh, you know, the bodies that have, uh, watched these education bills have not had a meeting to adopt or reject the third substitute, but my school district, uh, has expressed that, that he, this is a good idea. School districts in Utah, Mr. President spend $40 million a year on textbooks. And so recognizing that we are already spending that much in taxpayer dollars every year to buy curriculum resources, the investment of a Utah specific curriculum for grades K through eight that is tied to Utah's core standards, uh, by developing that through the State Board of Education and through our regular curriculum review process, developing it in-house and then making available for free to public schools is an investment in cost savings in the future. Uh, so this would create, again, an open educational resource, uh, that I think will lead to significant savings over the long term. This, uh, will be funded at $12 million this year out of the stabilization fund. To get this started, the state board will issue an RFP and then select one or more, uh, curriculum development, uh, groups who will design a curriculum. Again, that is specifically tied to Utah's core standards. So I'd be happy to answer questions.

  9. Senate President (presiding)1:45:52

     Senator Fillmore, there are no questions

  10. Sen. Lincoln Fillmore1:45:55

      Then. Thank you. I would just, I, I think on second reading, a lot of people looked at a list and found that one 19 was opposed by the school groups, which it was in its earlier versions, but the third substitute has taken out everything that offended them. So I will move that third substitute Senate Bill one 19 pass.

  11. Senate President (presiding)1:46:12

      Thank you. And the question is, shall third substitute Senate Bill one 19

• Mar 3, 2026 House Economic Development and Workforce Services Committee▶ Watch
  Transcript (41 turns)

  1. Committee chair (presiding)1:32:05

     the House Economic Development Committee.

  2. Sen. Luz Escamilla1:32:07

     Thank you. Thank you, Mr. Chair for the time. Um, so, um, I'll just, there is a, a paper that we wanna ask if it could be distributed. Thank you. Yes, that would be fine. To your committee members. I appreciate that. And this, this bill has had multiple modifications throughout the years. And our goal, again, as we are trying to identify solutions, not all of them are gonna be the perfect solution for everyone. In the issue of childcare, uh, one of the things that is critical in addressing childcare deserts is access and affordability. So with this bill, and we worked during the summer and, uh, fall with, um, Senate President Adams was instrumental in helping us get to a place where we can find a, a location, um, that we own a property and create this, um, public-private partnership to expand childcare capacity by retrofitting an existing state-owned building. We already own the building and leasing it to a private employer that will contract with a Utah childcare provider to operate the center and DFCM, which is here. If there's any technical questions, I know they're really good in talking more about the feasibility study has been working with us and addressing what type of location will be helpful for this and the issue. As all of you're very aware, we're seeing a significant decline in fertility rate directly tied to the lack of access to affordable childcare. Younger families are having to make very difficult decisions. It may look different from when we, not all of you, many here are very young, but other, um, maybe some of us are more mature. Our decision making process of, of making, you know, of having children, uh, was not necessarily tied to access to childcare. And we're seeing more of those, uh, younger families, many of our own children or grandkids struggling with this piece. The state faces a workforce retention challenge. We are doing infinite number of bills, trying to keep our good, um, state, um, workforce, state employees, workforce. And we're investing on them to be competitive because the private sector certainly can be sometimes more competitive than state government. The Salt Lake Chamber of Commerce system aids that Utah loses about $1.3 billion annually. Uh, I mean, uh, two $58 million in lost tax revenue out of this, uh, issue. So I want to be very clear on what the role of the state is on this bill versus the role of the private sector, because at the end, it is a private public partnership. The state of Utah will retrofit the building after contracting with a private employer to ensure the billing meets safety and licensing standards for children. That is our investment as a state on this private public partnership. From that, we will get, in exchange 50% of childcare slots, uh, that will be reserved for state employees, military, and community members in the specific surrounding area. The role of the private sector will be, um, they will contract with a Utah based licensed childcare provider, operate and manage. The center will hold all operational liability. They will pay a lease for the building to the FCM, which is our already agency that manages all of our buildings, and they will take the other 50% of slots available on this childcare center. To be very clear, this is not a government run childcare program. The state's role is limited to investing in retrofitting and leasing an existing vacant building while private employers and licensed providers operate and manage the center. And we get to all work together in finding more access to childcare without Mr. Chairman open for any clarifying questions. And I do have, if it's okay with you, if I could bring the FCM just to be ready for any technical questions regarding the, the, the place.

  3. Committee chair (presiding)1:36:06

     Sure. That would be helpful. And,

  4. Unknown speaker1:36:07speaker not certain

     and I, I have a question for you. I wasn't quite clear. So if a building needs to be retrofitted, DFC M's gonna do that, but who pays for it? Is it the private employer or the, the, the childcare provider that you're gonna contract with? Perfect. And how does that contracting relationship work? Could you go over that?

  5. Sen. Luz Escamilla1:36:27

     Thank you. And so, just to be clear, this bill will only apply to one building, which has been already designated. And so we found the, the, kinda like the perfect location, the retrofitting is the investment of the state, and that's what we paid as a state. And then we get the 50% of the slots available of childcare. So We're paying for the retro, The retrofitting only. Yeah.

  6. Unknown speaker1:36:50speaker not certain

     And where is, does this, uh, specify the location?

  7. Sen. Luz Escamilla1:36:53

     Yes. And I'll let DFCM if that's okay, Mr. Chair, to proceed with those answers. Thank you.

  8. Andy Marr, Division Director, Division of Facilities and Construction Management1:36:58

     Thank you, Mr. Chair. Andy Mara, director DFCM. The location is the tax commission warehouse, uh, out on 1950 West. Uh, tax changed quite a bit, how they process things that they were formally using the warehouse for. Um, and we have worked with Tax Commission to see if that site would be a viable solution. Um, when you're looking to cite a daycare, there's a lot of requirements for those. And, um, the tax commission site proved to be through our feasibility study, the most feasible site because it contains perimeters and outdoor spacing and parking and things like that. Um, so it, it helps to repurpose that space to, to a new use tax commission. So it'll still be used as for tax commission pur storage part of the time. But, uh, a portion of the space would be allocated for childcare. Childcare,

  9. Unknown speaker1:37:46speaker not certain

     Correct. And also, uh, and

  10. Unknown speaker1:37:47speaker not certain

      Who is eligible to participate in that childcare?

  11. Sen. Luz Escamilla1:37:50

      So that will be, so in my bill is very clear. So one, the employer that takes a 50% will be for their employees, or it could be a co-op of businesses coming together. By the way, the other 50% is state employees. And if you have been at the tax commission, you have the tax commission and you have DHHS across the street. So we do have, and Department of Health, another Department of Health, Canon building a block two blocks away. So we do have an oh, department of natural resource. Multiple departments are in that, um, location, community, uh, surrounding areas of community and military. Thank you. Do you anticipate there will be any open slots for the public or between the partner, private, uh, employers sponsoring and the, and state?

  12. Sen. Luz Escamilla1:38:37speaker not certain

      So the community members that I mentioned are the public. Okay.

  13. Committee chair (presiding)1:38:41

      Thank you. Uh, any other, uh, questions from the committee?

  14. Committee chair (presiding)1:38:47

      Seeing none, we'll open it to public for public comment. If you'd like to speak, please come and, uh, share your comments with us.

  15. Dr. Sarah Stone, Director, Utah Association for the Education of Young Children1:39:02

      Hello Committee. Thank you for having me here. My name is Dr. Sarah Stone. I have worked in early childhood education for 25 years, and I also represent the Utah Association for the Education of Young Children. For the past eight years, I've run my own childcare center here in Utah, and I've seen firsthand how broken the economics of childcare have become. Childcare centers can't charge enough to pay their employees a living wage, and parents can't afford the true cost of high quality care. At my own program, we actually only charge 70% of what the true cost of care is, and we fundraise the rest so that we don't have to have the parents paying the full burden. Um, the current business model simply does not work without meaningful public investment. And Utah's children are worth that investment. Um, today 61% of Utah families have all available parents in the workforce, and there are twice as many children under five needing care as there are available licensed spots in Utah. Um, happy to back up all those stats for you if you'd like it. We need creative solutions to help our working families. And Senator Escamilla bill will take a step in that direction. This will strengthen families, support our workforce, and benefit our entire state. So I urge you to vote in favor of SB 2 48. Thank you.

  16. Committee chair (presiding)1:40:25

      Thank you for those comments. Do we have anyone on the line? Anyone else who would like to be heard? Seeing none, we'll close the public comment and turn it back to the committee for questions or access or action.

  17. Vice Chair Cutler (presiding)1:40:39

      We'll go to Representative Shelley.

  18. Rep. Rob Shelley1:40:41

      Thank you, Mr. Vice Chair. So a couple questions. Uh, we talked earlier on this, so I'm just wanting to see clarification. So if a, in a neighborhood, 'cause we're in a rural area, so in a neighborhood, if a neighbor says, Hey, um, I'll, uh, I'll watch eight kids for you guys. And, and if even if they get paid, do they have to register through this program with the state?

  19. Sen. Luz Escamilla1:41:08

      Um, Mr. Chair, if it's okay, thank you. Yes, please. Um, just to be clear, this is a different bill representative. So the other bill stands on its own. Um, that's a separate bill. So this bill will only impact one location that is state-owned facility just to create a private public partnership and work with the state. So it will not impact anything related to individuals trying

  20. Rep. Troy Shelley1:41:31

      to Okay. Do that. Appreciate that this appreciate Super Bill. I appreciate that clarification. Thank you.

  21. Rep. Troy Shelley1:41:35

      So one other question. So this is, uh, this only benefits the Salt Lake Valley. Correct?

  22. Sen. Luz Escamilla1:41:43

      Mr. Chair, if it's okay, um, yes. This bill, it's only, will only impact people in Salt Lake Valley area. Correct. Is, and, and if I can expand, Mr. Chair, if you follow some of my other bills that I've worked on, I was at one point when we were in, in, um, different employment, um, structure during CO and after COVID for a long time we were having a lot of the work done remotely. There were a lot of vacant buildings that we own as a state that we were keeping maintenance on the states buildings. I was hoping that we could use more, and specifically I was looking at specific rural areas. Most of those buildings have been filled now because we have gone back to in-person work. So the reality is right now is very limited, which is what the FCM said through the, um, different, um, work that they've done on, you know, feasibility studies. It very, if any, this building will be one of the very few, if any, probably the only one that actually allows for all the time, like distance and location to actually do something like this.

  23. Rep. Troy Shelley1:42:49

      Okay. Perfect. Thank you.

  24. Committee chair (presiding)1:42:51

      Thank you. Uh, next we'll go to Representative Owens.

  25. Rep. Doug Owens1:42:54

      Thank you, Mr. Chair. I, I hear that response to be, it wasn't aimed at benefiting Salt Lake County, but it's the one solution, or it was the solution that applied here, you know, the building you found. Um, and I would point out it benefits any state employee has the potential to be benefited who might be commuting from other counties or it, or might move to the Wasatch front for a state job. So I see this as a big boost to the morale of our state employees, and I think it's a sensible solution for that building. So I didn't reserve a right to make a motion. So I'll, I'll be anxious to support somebody else who makes a motion to pass this out with a favorable recommendation.

  26. Committee chair (presiding)1:43:37

      Thank you. We'll go next to represent Fiefia.

  27. Rep. Doug Fiefia1:43:41

      Thank you, Mr. Chair, are you okay if I ask a couple of questions? I was out during the question section. Sorry.

  28. Committee chair (presiding)1:43:47

      Yes. I think she's anxious to answer Your questions. I'm anxious to respond to your question

  29. Rep. Doug Fiefia1:43:51

      Representative. Thank you, Senator. Um, what is the measurable ROI on this with, with the three plus million here, how many seats does that actually create? Um, it's reaching about 200 seats, so about a hundred that will be for the state to have access for state employees, c community, surrounding area and military. Do you believe that this crowds out private, uh, childcare providers in the area and around the Salt Lake kind of area? Um,

  30. Sen. Luz Escamilla1:44:24

      That's a great question. Representative. We, we work, so one of the things we did is we specifically asked in the bill that they have to license with a licensed provider from Utah. 'cause we wanted to protect first our, our, you know, providers for our state. But I will answer by the reality is, especially for our state employees, where we're hearing their biggest concern is access and affordability. This will bring down the pricing because what is very expensive on this initial childcare centers is the investment on infrastructure. And that's where we, that is where we investing as a state. So I, I, I believe that, um, you know, there's space for multiple, there's so much need in childcare that I think, um, I don't know that we're in ex, you know, that we have extra, um, childcare access. So I, I do think this is a targeted group. It's a retention piece for us as for our state employees. And we do have multiple agencies within two blocks of this area.

  31. Rep. Doug Fiefia1:45:33

      I may have another question. Um, I guess what, what, what protects taxpayers from long-term cost escalation if lease revenue and maintenances don't align? Can I have the FCM answer that question because I Yes.

  32. Sen. Luz Escamilla1:45:53

      That's a really good piece. I want to clarify. Thank you. Sorry.

  33. Andy Marr, Division Director, Division of Facilities and Construction Management1:46:00

      Thanks. So we, we structured the, the maintenance and the o and m off, um, of a square footage rate. That's what we do for all of our buildings. So we look for comps in the market that show what, what are the true costs associated with maintaining a facility like this? Um, this program will be run through our internal service fund, uh, which is a zero based budget that we get approved rates for every year. It all, it gives us the ability to keep retained earnings, should we collect more revenue so that we can keep that in the fund to take care of future improvements or future maintenance should the revenues fall down. We also have a mechanism to adjust that rate through the ISF process, so it's not locked in and we have somewhat of an ability to change that, um, on about an 18 month basis.

  34. Rep. Doug Fiefia1:46:46

      Okay. Thank you. Thank you, Mr. Chair.

  35. Committee chair (presiding)1:46:48

      Thank you. Any other questions?

  36. Committee chair (presiding)1:46:52

      We'll go to Representative Mauga.

  37. Rep. Verona Mauga1:46:56

      Can I make a chair or am a motion? Mr. Chair? You may. Okay. I would like to make a motion to favorably recommend SB 2 48 Childcare Expansion Act. That motion is, or would you like to speak to it? Yeah, Just, I support the bill and I appreciate the sponsor bringing it forward. I mean, access to reliable childcare is something that parents face every day, and I think this is a great solution for partnership. Thank you.

  38. Committee chair (presiding)1:47:20

      Thank you. Discussion to that motion scene?

  39. Sen. Luz Escamilla1:47:26

      None. We'll go to the sponsor. I Appreciate that. Mr. Chair. Just to be clear, because of the timing in the session, this has been prioritized by the Senate. Like I said, it's, uh, an important priority of the Senate for funding. Thank you. And to the maker of the motion, I'll waive. Thank you.

  40. Vice Chair Cutler (presiding)1:47:42

      All right. Let's do a, uh, roll call. Vote, uh, on this Calvin, if you don't mind. The motion is to favorably recommend SB 2 48. Uh, if I push the right button, that will work better, won't it? Childcare Expansion Act. Representative Fiefia, No. Representative Hansen. No. Representative Jack? Yes. Representative Maga. Yes. Representative Miller? Yes. Representative Owens? Yes. Representative Shelley, No. Vice Chair Cutler? Yes. That appears to pass five to three Representatives With representatives, fi, fia, fia, Hansen, and Shelly Voting in opposition. Thank You. Mr. Turn. Committee. Thank You. Thank you.

  41. Unknown speaker1:48:46speaker not certain

      My on mic there. All right.

• Mar 4, 2026 House floor debate▶ Watch
  Transcript (11 turns)

  1. Rep. Anthony E. Loubet23:24

     Senate Bill 2 48, childcare Expansion Act by Senator Escamilla. This bill was heard in Economic Development and Workforce Services with a vote of 5 3 2. The house sponsors Representative Blue Bay, Representative Blue Bay.

  2. Rep. Anthony E. Loubet23:37

     Thank you Mr. Speaker. Uh, SB 2 48 is, uh, create the public private partnership to expand childcare capacity by retrofitting an existing state owned building and leasing it to a private employer that will contract with a licensed Utah childcare provider to operate the center. So what this is doing is that right now in Utah, we have a childcare problem, um, trying to find, uh, affordable available childcare options for parents that are also having to work. And so what this is trying to do is find a, uh, a good solution in order to provide fix and address this problem. Um, so instead of, uh, so what's happening right now is we have a facility that has unused space. And so instead of having that unused space, not have, uh, any use, this is being able to put it to use for something good where we have a, uh, public partner come in, rent out the space so we can able to make money off of it. But then as a part of this arrangement, we're also able to, uh, give, uh, access to childcare for state employees. Um, a certain percentage of that 50% will be able to be allocated to, to state employees. Um, this is a great way of trying to find a balance, uh, between, uh, try to address the childcare issue, but also try to find a balance between, uh, the private side and the public side of being able to provide these options. And so with that, I conclude my presentation and I'm happy to answer any questions.

  3. Speaker (presiding)25:09

     Thank you, Representative Loubet discussion to the bill Representative.

  4. Rep. Mark A. Strong25:17

     Strong. Thank, thank you, Mr. Speaker. Um, we've, we've actually seen this bill a few years in a row, and if we have facilities that aren't being used, they should be sold. Um, typically these are in tr high traffic areas. I think this is, this is, uh, the same policy that we voted down, I think two, maybe three years. And I, uh, I'm not sure it's, I I, I'm sure, but, uh, I'll say it's not the right policy for us. And I, I would, uh, propose we vote against it. Thank you.

  5. Speaker (presiding)25:58

     Thank you, Representative Strong. Uh, further discussion to the bill Representative Kyle.

  6. Rep. Jason B. Kyle26:05

     Thank you, Mr. Speaker. I, I, I agree with, um, my other, uh, colleague from Salt Lake County's, uh, sentiments. There, there's a, we understand that there's a, a need for some childcare and some, some help out here, but this is a very inefficient role for government to be in. Um, it's, it's, it's doesn't make the best use for our resources, and I would encourage a no vote on this. Thank you.

  7. Speaker (presiding)26:30

     Thank you, Representative Kyle. Further discussion to the bill Representative Shelley.

  8. Rep. Troy Shelley26:37

     Thank You, Mr. Speaker. I, I also, uh, opposed to this bill, um, as I read through this bill, I think, I think it's, uh, a half a million dollars or maybe substantially more, um, that, uh, that goes to retrofit this. And then as it generates revenue, it just grows the program. It doesn't, it doesn't ever pay the state back for any of the money. It just absorbs that money and grows the program. And I, I just hope that we'll be cognizant of the fact that, uh, as we continue to make the state the most appealing place to work, we're hurting our small businesses. Um, 80% of this state is made up of small business. So as, as we continue to do all these things that just make it more appealing, it, it makes small businesses hard, hard to compete. And, uh, I I think we've passed a lot of, a lot of tax bills that have given tax incentives for employers to offer daycare. And so in addition to all of those tax incentives, now we're saying let's pay for it as well. So I think it's a whole lot of money outta the same pot. So I would, I would encourage a no vote on this.

  9. Speaker (presiding)27:55

     Thank you Representative Shelley. Further discussion to the bill. See none. Back to rep, back to you. Representative Blue Bay.

  10. Rep. Anthony E. Loubet28:02

      Thank you, Mr. Speaker. Uh, I wanna address some of the comments that were made. I mean, this is a, we're looking at one facility. So this isn't, uh, something that we're doing across the board, or it's not even a program we're looking at growing. This bill is trying to take a facility that we already have, um, that's already has, uh, an existing purpose retrofitting a portion of it so that way we can actually turn it into money that we can, uh, collect that money, uh, would be able to, uh, be utilized for other things, pay back the program and be used for, and would go to the general fund. Um, rather than, there was a comment about this bill being run again, um, by a good representative, uh, from Southern Salt Lake County. And, uh, while it's true that this bill, uh, in some form has come before this body, the big difference I think this time around is that the, uh, bill sponsored did a really good job of working with all the stakeholders to come up with a solution that would be able to, to re have a net positive return on investment, um, while also at the same time partnering with the public and providing a vital resource to the community. Um, it is, uh, a time rate now where we are trying to find, um, affordable options for childcare for our residents and for our employees. And I think the bill sponsor did a great job of trying to, uh, come up with a solution that was, uh, feasible. Um, I also want to mention that we are investing in multiple bills addressing the issue of childcare. And so this is just another way to be able to provide a benefit. Um, there is no growing the program. Um, we partner with, we'll be partnering with only one private business, and then we take care of our state workers in the process. Um, with that, I conclude my statements and I think this is a good bill.

  11. Speaker (presiding)29:50

      Thank you. Representative Lu voting will now be open on SB 2 48. Seeing all present, having voting votings now closed SB 2 48 fails to pass this body with 25 yes votes, 47 no votes, and will be sent to the Senate sent to staff for filing. Okay, uh, Madam Marine Clerk