1.1                          A bill for an act
  1.2             relating to child care; providing for certain grants; 
  1.3             expanding uses for certain funds; appropriating money; 
  1.4             amending Minnesota Statutes 1996, sections 119B.20, 
  1.5             subdivisions 7 and 9; and 119B.21, subdivision 5; 
  1.6             proposing coding for new law in Minnesota Statutes, 
  1.7             chapter 119B. 
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9      Section 1.  Minnesota Statutes 1996, section 119B.20, 
  1.10  subdivision 7, is amended to read: 
  1.11     Subd. 7.  [FACILITY IMPROVEMENT EXPENSES.] "Facility 
  1.12  improvement expenses" means funds for building improvements, 
  1.13  equipment, appropriate technology and software, toys, and 
  1.14  supplies needed to establish, expand, or improve a licensed 
  1.15  child care facility or a child care program under the 
  1.16  jurisdiction of the state board of education. 
  1.17     Sec. 2.  Minnesota Statutes 1996, section 119B.20, 
  1.18  subdivision 9, is amended to read: 
  1.19     Subd. 9.  [MINI-GRANTS.] "Mini-grants" means child care 
  1.20  grants for facility improvements that are up to $1,000. 
  1.21  Mini-grants include, but are not limited to, improvements to 
  1.22  meet licensing requirements, improvements to expand a child care 
  1.23  facility or program, appropriate technology and software, toys 
  1.24  and equipment, start-up costs, staff training, and development 
  1.25  costs. 
  1.26     Sec. 3.  Minnesota Statutes 1996, section 119B.21, 
  2.1   subdivision 5, is amended to read: 
  2.2      Subd. 5.  [PURPOSES FOR WHICH A CHILD CARE SERVICES GRANT 
  2.3   MAY BE AWARDED.] The commissioner may award grants for any of 
  2.4   the following purposes: 
  2.5      (1) for creating new licensed day care facilities and 
  2.6   expanding existing facilities, including, but not limited to, 
  2.7   supplies, equipment, facility renovation, and remodeling; 
  2.8      (2) for improving licensed day care facility programs, 
  2.9   including, but not limited to, staff specialists, staff 
  2.10  training, supplies, equipment, and facility renovation and 
  2.11  remodeling.  In awarding grants for training, priority must be 
  2.12  given to child care workers caring for infants, toddlers, sick 
  2.13  children, children in low-income families, and children with 
  2.14  special needs; 
  2.15     (3) for supportive child development services including, 
  2.16  but not limited to, in-service training, curriculum development, 
  2.17  consulting specialist, resource centers, and program and 
  2.18  resource materials; 
  2.19     (4) for carrying out programs including, but not limited 
  2.20  to, staff, supplies, equipment, facility renovation, and 
  2.21  training; 
  2.22     (5) for interim financing; and 
  2.23     (6) for capacity building through the purchase of 
  2.24  appropriate technology, software, and staff training to create, 
  2.25  enhance, and maintain financial systems for facilities; and 
  2.26     (7) for carrying out the resource and referral program 
  2.27  services identified in section 119B.19, subdivision 3. 
  2.28     Sec. 4.  [119B.25] [CHILD CARE FACILITY IMPROVEMENT 
  2.29  GRANTS.] 
  2.30     Subdivision 1.  [PURPOSE.] The purpose of this section is 
  2.31  to enhance and expand child care facilities, to encourage 
  2.32  private investment in child care and early childhood education 
  2.33  facilities, to promote availability of quality, affordable child 
  2.34  care throughout Minnesota, and to provide for cooperation 
  2.35  between private nonprofit child care organizations and providers 
  2.36  and the department of children, families, and learning. 
  3.1      Subd. 2.  [GRANTS.] The commissioner shall distribute money 
  3.2   provided by section 6 through a grant to a nonprofit corporation 
  3.3   organized to plan, develop, and finance early childhood 
  3.4   education and child care facilities.  The nonprofit corporation 
  3.5   must have demonstrated the ability to analyze financing 
  3.6   projects, have knowledge of other sources of public and private 
  3.7   financing for child care and early childhood education 
  3.8   facilities, and have a relationship with the resource and 
  3.9   referral programs under section 119B.18.  The board of directors 
  3.10  of the nonprofit corporation must include the commissioners of 
  3.11  the departments of children, families, and learning, and trade 
  3.12  and economic development, and the commissioner of the housing 
  3.13  finance agency.  The board must also consist of members who are 
  3.14  knowledgeable about early childhood education, child care, 
  3.15  facility development and improvement, and facility financing.  
  3.16  The grant must be used to make loans to improve child care or 
  3.17  early childhood education facilities, or loans to plan, design, 
  3.18  and construct or expand facilities to increase the availability 
  3.19  of child care or early childhood education.  All loans made by 
  3.20  the nonprofit corporation must comply with section 363.03, 
  3.21  subdivision 8. 
  3.22     Subd. 3.  [FINANCING PROGRAM.] A nonprofit corporation that 
  3.23  receives a grant under this section shall use the money to: 
  3.24     (1) establish a revolving loan fund to make loans to 
  3.25  existing, expanding, and new child care and early childhood 
  3.26  education facilities; 
  3.27     (2) establish a fund to guarantee private loans to improve 
  3.28  or construct a child care or early childhood education facility; 
  3.29     (3) establish a fund to provide forgiveable loans or grants 
  3.30  to match all or part of a loan made under this section; and 
  3.31     (4) establish a fund as a reserve against bad debt.  
  3.32     The nonprofit corporation shall establish the terms and 
  3.33  conditions for loans and loan guarantees including, but not 
  3.34  limited to, interest rates, repayment agreements, private match 
  3.35  requirements, and conditions for loan forgiveness.  The 
  3.36  nonprofit corporation shall establish a minimum interest rate 
  4.1   for loans to ensure that necessary loan administration costs are 
  4.2   covered.  The nonprofit corporation may use interest earnings 
  4.3   for administrative expenses. 
  4.4      Subd. 4.  [REPORTING.] A nonprofit corporation that 
  4.5   receives a grant under this section shall: 
  4.6      (1) annually report by September 30 to the commissioner the 
  4.7   purposes for which the money was used in the past fiscal year, 
  4.8   including a description of projects supported by the financing, 
  4.9   an account of loans made during the calendar year, the financing 
  4.10  program's assets and liabilities, and an explanation of 
  4.11  administrative expenses; and 
  4.12     (2) annually submit to the commissioner a copy of the 
  4.13  report of an independent audit performed in accordance with 
  4.14  generally accepted accounting practices and auditing standards. 
  4.15     Sec. 5.  [119B.26] [CHILD CARE AND EARLY CHILDHOOD 
  4.16  EDUCATION TECHNICAL ASSISTANCE AND CAPACITY BUILDING GRANTS.] 
  4.17     The commissioner shall make grants to organizations to 
  4.18  provide technical assistance to child care and early childhood 
  4.19  education providers.  Grants may be used for facility planning 
  4.20  and feasibility studies and for the installation of appropriate 
  4.21  software to create, enhance, and maintain financial management 
  4.22  systems.  
  4.23     Sec. 6.  [APPROPRIATION.] 
  4.24     Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
  4.25  LEARNING.] The sums indicated in this section are appropriated 
  4.26  from the general fund to the department of children, families, 
  4.27  and learning for the fiscal years designated. 
  4.28     Subd. 2.  [CHILD CARE FACILITY IMPROVEMENT GRANTS.] For a 
  4.29  child care facility improvement grant to a nonprofit corporation 
  4.30  under section 4: 
  4.31         $...,...,...     ....     1998
  4.32     This appropriation is available until expended. 
  4.33     Up to five percent of this amount may be used by the 
  4.34  department and the nonprofit corporation to administer the loan 
  4.35  program including costs associated with setting up an 
  4.36  information system to administer child care and early childhood 
  5.1   education facility loans. 
  5.2      Subd. 3.  [CHILD CARE AND EARLY CHILDHOOD TECHNICAL 
  5.3   ASSISTANCE AND CAPACITY BUILDING GRANTS.] For grants under 
  5.4   section 5 to provide assistance to child care and early 
  5.5   childhood education providers: 
  5.6          $...,...,...     ....     1998
  5.7          $...,...,...     ....     1999