SF 470

as introduced - 92nd Legislature (2021 - 2022) Posted on 03/26/2021 09:39am

A bill for an act
relating to child care; establishing a grant program to provide grants for loans to
improve child care or early education sites; requiring reports; appropriating money.

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

Section 1. new text begin FIRST CHILDREN'S FINANCE CHILD CARE SITE ASSISTANCE
GRANT PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Purpose. new text end

new text begin The commissioner of human services shall provide a grant to
First Children's Finance for: (1) loans to improve child care or early childhood education
sites; or (2) loans to plan, design, and construct or expand licensed and legal nonlicensed
sites to increase the availability of child care or early childhood education.
new text end

new text begin Subd. 2. new text end

new text begin Financing program. new text end

new text begin (a) First Children's Finance shall use grant money to:
new text end

new text begin (1) establish a revolving loan fund to provide loans to existing, expanding, and newly
licensed and legal nonlicensed child care and early childhood education sites;
new text end

new text begin (2) establish a fund to guarantee private loans to improve or construct a child care or
early childhood education site;
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new text begin (3) establish a fund to provide forgivable loans or grants to match all or part of a loan
provided under this section;
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new text begin (4) establish a fund as a reserve against bad debt; and
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new text begin (5) establish a fund to provide business planning assistance for child care providers.
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new text begin (b) First Children's Finance shall establish the terms and conditions for loans and loan
guarantees including interest rates, repayment agreements, private match requirements, and
conditions for loan forgiveness. First Children's Finance must establish a minimum interest
rate for loans to ensure that First Children's Finance covers necessary loan administration
costs. First Children's Finance may use interest earnings for administrative expenses.
new text end

new text begin Subd. 3. new text end

new text begin Reports. new text end

new text begin First Children's Finance shall:
new text end

new text begin (1) by September 30, 2022, and by September 30, 2023, report to the commissioner of
human services the purposes for which First Children's Finance used the money during the
past fiscal year, including a description of projects supported by financing, an account of
loans made during the calendar year, the financing program's assets and liabilities, and an
explanation of administrative expenses; and
new text end

new text begin (2) for each fiscal year in which First Children's Finance receives grant money, submit
to the commissioner of human services a copy of the report of an audit performed by an
independent auditor in accordance with generally accepted accounting practices and auditing
standards.
new text end

Sec. 2. new text begin APPROPRIATION; FIRST CHILDREN'S FINANCE CHILD CARE
ASSISTANCE GRANT PROGRAM.
new text end

new text begin $3,000,000 in fiscal year 2022 is appropriated from the general fund to the commissioner
of human services for a grant to First Children's Finance to establish and operate the financing
program in section 1, subdivision 2. This is a onetime appropriation.
new text end