HF 3497

as introduced - 91st Legislature (2019 - 2020) Posted on 02/18/2020 10:50am

A bill for an act
relating to capital investment; appropriating money for and establishing the greater
Minnesota child care facility capital grant program; authorizing the sale and
issuance of state bonds; proposing coding for new law in Minnesota Statutes,
chapter 116J.

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

Section 1.

new text begin [116J.417] GREATER MINNESOTA CHILD CARE FACILITY CAPITAL
GRANT PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Purpose. new text end

new text begin The purpose of the greater Minnesota child care facility capital
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.
new text end

new text begin Subd. 2. new text end

new text begin Creation of accounts. new text end

new text begin Two greater Minnesota child care facility capital grant
accounts are created. One account is created in the general fund and one in the bond proceeds
fund. Money in the accounts is appropriated to the commissioner to make grants under this
section. Money appropriated to the greater Minnesota child care facility capital grant accounts
is available until encumbered or spent subject to section 16A.642.
new text end

new text begin Subd. 3. new text end

new text begin Eligible applicant. new text end

new text begin (a) A city, county, or school district, or a joint powers board
established by two or more cities, counties, or school districts is eligible to apply for and
receive a grant from either greater Minnesota child care facility capital grant account
established in this section.
new text end

new text begin (b) A private child care provider licensed as a child care center or to provide in-home
family child care is eligible to apply for and receive a grant from the greater Minnesota
child care facility capital grant account in the general fund.
new text end

new text begin (c) An applicant must be located outside of the metropolitan area as defined in section
473.121, subdivision 2.
new text end

new text begin Subd. 4. new text end

new text begin Local government authority. new text end

new text begin A city, county, or school district may own a
child care facility and operate a child care facility program that meets the requirements for
state licensing under Minnesota Rules, chapter 9503. A city, county, or school district may
enter into a lease or management agreement with one or more licensed child care providers
to operate a child care program in a facility owned by the city, county, or school district. A
lease or management agreement for state bond-financed property is subject to section
16A.695.
new text end

new text begin Subd. 5. new text end

new text begin Eligible project. new text end

new text begin (a) A grant may be used to acquire land or interest in land,
predesign, design, renovate, construct, furnish, and equip facilities in which to provide child
care or for other child care facility improvements that support the purposes for which this
grant program is established. Money from the account in the general fund may also be used
to upgrade or expand existing nonprofit child care facilities for purposes of meeting state
requirements.
new text end

new text begin (b) All projects must increase child care capacity in the community that is served by the
provider, and meet all state requirements for child care facilities or programs.
new text end

new text begin Subd. 6. 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. 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 project elements 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.
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. 7. 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) the feasibility study that shows the financial and operational sustainability of the
project funded;
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; and
new text end

new text begin (9) other information that the commissioner determines is necessary or useful in
evaluating the impact of the proposed project on the local economy.
new text end

new text begin Subd. 8. 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. 9. 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. Money made available to the commissioner from
a canceled grant is subject to cancellation under section 16A.642 as if it had been appropriated
to the program in the year in which the grant is canceled.
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 begin GREATER MINNESOTA CHILD CARE FACILITY CAPITAL GRANT
PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Appropriations. new text end

new text begin $10,000,000 is appropriated from the bond proceeds
fund and $10,000,000 is appropriated from the general fund to the commissioner of
employment and economic development for the greater Minnesota child care facility capital
grant program in Minnesota Statutes, section 116J.417.
new text end

new text begin Subd. 2. new text end

new text begin Bond sale. new text end

new text begin To provide the money appropriated in this section from the bond
proceeds fund, the commissioner of management and budget shall sell and issue bonds of
the state in an amount up to $10,000,000 in the manner, upon the terms, and with the effect
prescribed by Minnesota Statutes, sections 16A.631 to 16A.675, and by the Minnesota
Constitution, article XI, sections 4 to 7.
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