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HF 423

1st Division Engrossment - 91st Legislature (2019 - 2020) Posted on 03/21/2019 05:27pm

KEY: stricken = removed, old language.
underscored = added, new language.

Bill Text Versions

Engrossments
Introduction Posted on 01/28/2019
Division Engrossments
1st Division Engrossment Posted on 03/18/2019

Current Version - 1st Division Engrossment

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A bill for an act
relating to economic development; child care; establishing a greater Minnesota
child care facility capital grant program; providing for a transfer; proposing coding
for new law in Minnesota Statutes, chapter 119B.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

new text begin [119B.255] GREATER MINNESOTA CHILD CARE FACILITY CAPITAL
GRANT PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Creation of account. new text end

new text begin A greater Minnesota child care facility capital grant
account is created in the special revenue fund. Money in the account is appropriated to the
commissioner to make grants under this section.
new text end

new text begin Subd. 2. new text end

new text begin Purpose; authority. new text end

new text begin The purpose of the grant program established in this
section is to keep or enhance jobs, increase the tax base, or expand or create new economic
development in the area in which the grants are made, by providing facilities for the child
care necessary to support workers and their families. Grants under this section must be made
to applicants that are located outside of the metropolitan area as defined in section 473.121,
subdivision 2.
new text end

new text begin Subd. 3. new text end

new text begin Definitions. new text end

new text begin (a) For the purposes of this section, the following terms have the
meanings given.
new text end

new text begin (b) "Eligible applicant" or "applicant" means a nonprofit or for-profit family child care
provider or child care center that: (1) uses the grant to increase child care capacity in the
community that is served by the provider; (2) meets all state requirements for child care
facilities or programs; and (3) agrees to achieve or maintain Parent Aware certification.
new text end

new text begin (c) "Eligible project" or "project" includes acquisition of land or interest in land,
predesign, design, renovation, construction, furnishing, and equipping facilities in which
to provide child care or for other child care capital facility improvements that support the
purposes for which this grant program is established, including upgrading or expanding
existing nonprofit child care facilities for purposes of meeting state requirements.
new text end

new text begin (d) "Commissioner" means the commissioner of employment and economic development.
new text end

new text begin Subd. 4. new text end

new text begin Grants. new text end

new text begin (a) The commissioner shall make grants to eligible applicants to provide
up to 50 percent of the capital costs of eligible child care facility capital projects, subject
to section 16A.502. An eligible applicant receiving a grant must provide for the remainder
of the costs of the project, either in cash or in kind. In-kind contributions may include the
cost of acquisition of real property and the value of site preparation made before or after
the grant award is made.
new text end

new text begin (b) The commissioner may also distribute money provided by this section through a
regional organization within the meaning of section 15.75 to provide grants to eligible
applicants based on the manner of application and criteria established by the commissioner
in subdivision 5 and the requirements of this subdivision and subdivisions 6 and 7.
new text end

new text begin (c) If the commissioner awards a grant for less than 50 percent of the project cost, the
commissioner must provide the applicant and the chairs and ranking minority members of
the senate and house of representatives committees with jurisdiction over economic
development finance a written explanation for awarding less than 50 percent.
new text end

new text begin Subd. 5. new text end

new text begin Application; criteria. new text end

new text begin The commissioner must develop forms and procedures
for soliciting and reviewing applications for grants under this section. An applicant shall
apply for a grant in the manner and at the times the commissioner shall determine. At a
minimum, an application must include:
new text end

new text begin (1) evidence of the need for improved, expanded, or new child care facilities in the area;
new text end

new text begin (2) a description of the new or expanded facility or other improvements to be made;
new text end

new text begin (3) a description of the specific state requirements making improvements necessary, if
applicable;
new text end

new text begin (4) estimated costs of the capital project and the sources of funding to complete it;
new text end

new text begin (5) estimated costs of the expanded services and the sources of funding to provide them;
new text end

new text begin (6) the applicant's analysis of the expected economic benefits to the area in which the
project would be located;
new text end

new text begin (7) other information that the commissioner determines is necessary or useful in
evaluating the impact of the proposed project on the local economy; and
new text end

new text begin (8) the average number of children provided care by the applicant during the year prior
to the application, if any, and the expected number of children that could be provided child
care after the proposed project is completed.
new text end

new text begin Subd. 6. new text end

new text begin Maximum grant amount. new text end

new text begin Grants must not be awarded for more than $500,000
per project or more than $2,000,000 in two years to an applicant for one or more projects
in the same city or county.
new text end

new text begin Subd. 7. new text end

new text begin Cancellation of grant; return of money. new text end

new text begin If the commissioner determines that
a grantee is unable to proceed with an approved project or has not expended or obligated
the grant money within five years of entering into the grant agreement with the commissioner,
the commissioner shall cancel the grant and the money is available for the commissioner
to make other grants under this section.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 2. new text beginTRANSFER; GREATER MINNESOTA CHILD CARE FACILITY GRANTS.
new text end

new text begin $10,000,000 in fiscal year 2020 is transferred from the general fund to the commissioner
of employment and economic development for deposit in the greater Minnesota child care
facility capital grant account for the purposes of the greater Minnesota child care facility
capital grant program in Minnesota Statutes, section 119B.255.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end