SF 3578

as introduced - 90th Legislature (2017 - 2018) Posted on 03/20/2018 09:13am

A bill for an act
relating to capital investment; establishing a greater Minnesota child care facility
capital grant program; appropriating money for grants; authorizing the sale and
issuance of state bonds; 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 accounts. new text end

new text begin Two greater Minnesota child care facility capital
grant accounts are created, one 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 in the accounts is available until encumbered or spent subject to Minnesota Statutes,
section 16A.642.
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 the facilities for the
child care necessary to support workers and their families.
new text end

new text begin In order to accomplish the purposes of this section, a local government may own and
operate a child care facility.
new text end

new text begin Subd. 3. new text end

new text begin Definitions. new text end

new text begin For the purposes of this section:
new text end

new text begin (1) "eligible applicant" or "applicant" for the purposes of grants from the account in the
bond proceeds fund means a local government; and for the purposes of grants from the
account in the general fund means a local government or a nonprofit organization; and
new text end

new text begin (2) "local government" means a county or home rule charter or statutory city, 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 Grants. new text end

new text begin 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. 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 Eligible projects. new text end

new text begin (a) "Eligible project" or "project" for the purposes of grants
from the account in the bond proceeds fund means the acquisition or betterment of public
land, buildings, and other public improvements of a capital nature within the meaning of
the Minnesota Constitution, article XI, section 5, clause (a). It includes acquisition of land
or interest in land, predesign, design, renovation, construction, furnishing, and equipping
facilities in which to provide child care.
new text end

new text begin (b) "Eligible project" or "project" for the purposes of grants from the account in the
general fund may be made for purposes described in paragraph (a) or other child care capital
facility improvements that support the purposes for which this grant program is established,
including upgrading or expanding nonprofit child care facilities for purposes of meeting
state requirements.
new text end

new text begin Subd. 6. new text end

new text begin Ineligible projects. new text end

new text begin Grants may not be made for:
new text end

new text begin (1) projects that do not serve a greater number of children than are served with the
facilities available at the time of application;
new text end

new text begin (2) projects that will not meet state requirements for child care facilities or programs;
or
new text end

new text begin (3) projects funded with state bond proceeds that the local government intends to transfer
to a private party contrary to the law governing state bond-financed property.
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. A grant
agreement for an award of state general obligation bond proceeds must be approved by the
commissioner of management and budget. At a minimum, an application must include:
new text end

new text begin (1) a resolution of support by the local government's governing body requesting a grant
when it is a local government making the request;
new text end

new text begin (2) evidence of the need for improved, expanded, or new child care facilities in the area;
new text end

new text begin (3) a description of the new or expanded facility or other improvements to be made;
new text end

new text begin (4) a description of the specific state requirements making improvements necessary, if
applicable;
new text end

new text begin (5) estimated costs of the capital project and the sources of funding to complete it;
new text end

new text begin (6) estimated costs of the expanded services and the sources of funding to provide them;
new text end

new text begin (7) 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 (8) 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 (9) 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. 8. new text end

new text begin Maximum grant amount. new text end

new text begin The commissioner must not award 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.
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 GRANTS
new text end

new text begin Subdivision 1. new text end

new text begin Bond proceeds appropriation. new text end

new text begin $5,000,000 is appropriated from the
bond proceeds fund to the commissioner of human services for the purposes of the greater
Minnesota child care facility grant program in Minnesota Statutes, section 119B.255.
new text end

new text begin Subd. 2. new text end

new text begin General fund appropriation. new text end

new text begin $5,000,000 is appropriated from the general
fund to the commissioner of human services for the purposes of the greater Minnesota child
care facility grant program in Minnesota Statutes, section 119B.255.
new text end

new text begin Subd. 3. 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 $5,000,000 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