SF1921

Purpose

To provide state funding for a new child care facility in the city of Slayton by using bond money to support a grant to the city. The goal is to help design, construct, furnish, and equip a childcare facility so it can operate for families in Slayton.

Main Provisions

• Subdivision 1 – Appropriation:
  • $3,000,000 is appropriated from the bond proceeds fund.
  • A grant is given to the city of Slayton through Minnesota’s existing child care program (Minnesota Statutes section 116J.417) to design, construct, furnish, and equip a child care facility.
  • The city may enter into a lease or management agreement to operate the facility, under the rules in Minnesota Statutes section 16A.695.
  • The grant created by this appropriation is not subject to certain requirements of 116J.417 (specifically subdivisions 6 and 8).
• Subdivision 2 – Bond sale:
  • The money for this appropriation will come from the sale of state bonds.
  • The commissioner of management and budget must sell and issue bonds up to $3,000,000.
  • Bonds are issued under the general state bonding laws (Minnesota Statutes sections 16A.631 to 16A.675) and in accordance with the Minnesota Constitution, Article XI, sections 4 to 7.

How the Funding Works

• The state will borrow money (through bonds) and place it in the bond proceeds fund.
• A grant is then provided to the City of Slayton to help pay for designing, building, furnishing, and equipping a child care facility.
• The city may lease or have someone manage the facility once it’s built, using the same funding framework.

What This Does Not Change (Legal/Procedural Context)

• The grant is tied to existing state statutes for child care funding (116J.417) and bonding rules (16A.631-16A.675).
• The arrangement includes a potential lease or management agreement, but subject to the state's procurement and contract rules (16A.695).
• The project financing follows standard bond issuance procedures and constitutional authority.

Practical Impact

• A new child care facility in Slayton could be designed, built, furnished, and equipped using state bond funds.
• The city could operate or delegate the operation of the facility to a lessee or manager.
• The funding process uses bonds rather than a direct annual appropriation.

Significant Changes to Law or Policy

• Creates a targeted capital investment grant for a Slayton child care center funded by state bonds.
• Includes an exemption from certain subparts of the 116J.417 program for this grant.
• Formalizes the option for a lease or management arrangement for facility operation, aligning with 16A.695 rules.

Implementation Timeline (implied)

• Authorization and appropriation in this bill passage.
• Bond sale process initiated by the commissioner of management and budget to raise up to $3,000,000.
• Grant to the City of Slayton to design, construct, furnish, and equip the facility.
• Potential lease or management agreement when the facility becomes operational.

Relevant Terms bond proceeds fund grant Slayton child care facility / child care center design, construct, furnish, and equip lease or management agreement Minnesota Statutes 116J.417 Minnesota Statutes 16A.695 Minnesota Statutes 16A.631 to 16A.675 Minnesota Constitution Article XI (sections 4 to 7) capital investment bonds commissioner of management and budget commissioner of employment and economic development design and construction of childcare facilities Not subject to 116J.417 subdivisions 6 and 8