1. (a) To qualify as a potential eligible provider or existing eligible provider, an applicant must:

   1. (1) provide an expansion plan to the office that details the potential eligible provider's or existing eligible provider's plan to:

      1. (A) increase the capacity of providers of qualified early education services to serve a greater number of eligible or limited eligibility children;
      2. (B) increase the number of providers of qualified early education services; or
      3. (C) increase the capacity as described in clause (A) and increase the number as described in clause (B);
   2. (2) comply with the agreement with the office concerning the plan under subdivision (1) and the use of a grant awarded under this chapter;

   3. (3) agree:

      1. (A) to operate as an eligible provider; or
      2. (B) that the applicant intends to operate as an eligible provider;
   4. (4) agree that the applicant will not use any grant funds awarded under this section for capital expenditures; and
   5. (5) comply with any other standards and procedures established under this chapter.
2. (b) Subject to subsections (c) and (d), the office may award a grant to an applicant that meets the requirements of subsection (a).

3. (c) The office may not use more than a total of twenty percent (20%) of the money in the fund each state fiscal year:

   1. (1) for grants awarded under this chapter to potential eligible providers and existing eligible providers for expansion plans; and
   2. (2) to meet any state match amounts required for a federal grant described in subsection (f).

4. (d) The office may not award grant funds under this section to an applicant for any of the following:

   1. (1) The purchase of land or a building.
   2. (2) The construction or expansion of a building.

5. (e) If a potential eligible provider or existing eligible provider fails to:

   1. (1) use the grant funds in accordance with the expansion plan described in subsection (a); or

   2. (2) comply with the agreement entered into with the office under subsection (a);

      the potential eligible provider or existing eligible provider shall repay to the office the total amount of the grant awarded to the potential eligible provider or existing eligible provider under this chapter.

6. (f) The office may use money in the fund that is allocated for expansion plans under this section for a state fiscal year to meet any state match amounts required for a federal grant if the purpose of the federal grant is that the grant money be used for increasing:

   1. (1) the capacity;
   2. (2) the number; or

   3. (3) both the capacity and number;

      of providers of early education services for children four (4) years of age.

As added by P.L.184-2017, SEC.23. Amended by P.L.268-2019, SEC.11; P.L.246-2023, SEC.13.