1.1 	A bill for an act
1.2 	relating to child care; appropriating money for child care site assistance; requiring 
1.3 	reports.
1.4 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.5 	Section 1. FIRST CHILDREN'S FINANCE CHILD CARE SITE ASSISTANCE; 
1.6 	APPROPRIATION.
 1.7 		Subdivision 1.Appropriation. $2,500,000 in fiscal year 2020 and $2,500,000 in fiscal 
1.8 	year 2021 are appropriated from the general fund to the commissioner of human services 
1.9 	for a grant to First Children's Finance to make loans to improve child care or early childhood 
1.10 	education sites, or loans to plan, design, and construct or expand licensed and legal unlicensed 
1.11 	sites to increase the availability of child care or early childhood education.
1.12 		Subd. 2.Financing program. (a) First Children's Finance shall use the money to:
1.13 	(1) establish a revolving loan fund to make loans to existing, expanding, and newly 
1.14 	licensed and legally unlicensed child care and early childhood education sites;
1.15 	(2) establish a fund to guarantee private loans to improve or construct a child care or 
1.16 	early childhood education site;
1.17 	(3) establish a fund to provide forgivable loans or grants to match all or part of a loan 
1.18 	made under this section;
1.19 	(4) establish a fund as a reserve against bad debt; and
1.20 	(5) establish a fund to provide business planning assistance for child care providers.
2.1 	(b) First Children's Finance shall establish the terms and conditions for loans and loan 
2.2 	guarantees including interest rates, repayment agreements, private match requirements, and 
2.3 	conditions for loan forgiveness. A minimum interest rate for loans must be established to 
2.4 	ensure that necessary loan administration costs are covered. Interest earnings may be used 
2.5 	for administrative expenses.
2.6 		Subd. 3.Reporting. First Children's Finance shall:
2.7 	(1) by September 30 each year, report to the commissioner of human services the purposes 
2.8 	for which the money was used during the past fiscal year, including a description of projects 
2.9 	supported by the financing, an account of loans made during the calendar year, the financing 
2.10 	program's assets and liabilities, and an explanation of administrative expenses; and
2.11 	(2) annually submit to the commissioner of human services a copy of the report of an 
2.12 	independent audit performed in accordance with generally accepted accounting practices 
2.13 	and auditing standards.