1.1 	A bill for an act
1.2 	relating to economic development; appropriating money for grants to local 
1.3 	communities to increase the supply of quality child care providers.
1.4 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.5 	Section 1. APPROPRIATION; GRANTS FOR CHILD CARE.
 1.6 	(a) $10,000,000 in fiscal year 2021 is appropriated from the general fund to the 
1.7 	commissioner of employment and economic development for grants to local communities 
1.8 	to increase the supply of quality child care providers to support economic development. 
1.9 	This is a onetime appropriation. Fifty percent of grant funds must go to communities located 
1.10 	outside of the seven-county metropolitan area as defined under Minnesota Statutes, section 
1.11 	473.121, subdivision 2.
1.12 	(b) Grant recipients must obtain a 50 percent nonstate match to grant funds in either 
1.13 	cash or in-kind contribution. Grant funds available under this section must be used to 
1.14 	implement projects to reduce the child care shortage in the state including but not limited 
1.15 	to funding for child care business start-ups or expansion, training, facility modifications, 
1.16 	direct subsidies or incentives to retain employees, or improvements required for licensing, 
1.17 	and assistance with licensing and other regulatory requirements. In awarding grants, the 
1.18 	commissioner must give priority to communities that have demonstrated a shortage of child 
1.19 	care providers in the area.
1.20 	(c) Within one year of receiving grant funds, grant recipients must report to the 
1.21 	commissioner on the outcomes of the grant program including but not limited to the number 
1.22 	of new providers, the number of additional child care provider jobs created, the number of 
1.23 	additional child care slots, and the amount of cash and in-kind local funds invested.