SB421: Bill Text

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2023 - 2024 LEGISLATURE

2023 Senate BILL 421

September 8, 2023 - Introduced by Senators James, Cabral-Guevara, Stroebel and Felzkowski, cosponsored by Representatives Hurd, Goeben, Edming, Green, Gundrum, Krug, Magnafici, Melotik, O'Connor, Penterman, Petersen, Petryk, Plumer, Rodriguez, Rozar, Steffen, Summerfield, Swearingen, Tranel, Armstrong and Wichgers. Referred to Committee on Mental Health, Substance Abuse Prevention, Children and Families.

SB421,1,2 An Act to create 238.145 of the statutes; relating to: creating a child care center renovations loan program.

Analysis by the Legislative Reference Bureau

This bill creates a child care center renovations revolving loan program, under which the Wisconsin Economic Development Corporation must award loans to licensed child care providers for the purpose of making renovations to their facilities. Under the bill, 60 percent of the loans must go to in-home licensed child care providers, and 40 percent must go to licensed child care providers that are not in-home. An in-home child care provider may receive up to $30,000 per loan, and a licensed child care provider that is not in-home may receive up to $100,000 per loan. The loans must be interest free. An in-home child care provider must establish or maintain enrollment in the in-home child care facility within one year of receiving the loan. If enrollment is not established or maintained, the corporation may claw back the loan.

For further information see the state fiscal estimate, which will be printed as an appendix to this bill.

The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

SB421,1 Section 1. 238.145 of the statutes is created to read:

SB421,2,4 238.145 Child care center renovations revolving loan fund and program. (1) Establishment of fund. (a) The corporation shall establish a child care center renovations revolving loan fund, for the purpose of providing loans under sub. (3).

SB421,2,6 (b) All moneys appropriated to the corporation for child care providers in the 2024-25 fiscal biennium shall be credited to the fund.

SB421,2,8 (c) All moneys received as repayments of loans awarded under sub. (3) shall be credited to the fund.

SB421,2,12 (2) Establishment of child care center renovations revolving loan program. The corporation shall establish and administer a child care center renovations revolving loan program for the purpose of awarding loans to licensed child care providers under sub. (3).

SB421,2,15 (3) Loan requirements. (a) From the child care center renovations revolving loan fund, the corporation shall award loans to licensed child care providers for renovations of licensed child care facilities.

SB421,2,18 (b) Of the loan funding awarded to child care providers under this subsection, the corporation shall award 60 percent to in-home licensed child care providers and 40 percent to licensed child care providers that are not in-home.

SB421,2,21 (c) No loan awarded under this subsection to an in-home licensed child care provider may exceed $30,000. No loan awarded under this subsection to a licensed child care provider that is not in-home may exceed $100,000.

SB421,2,23 (d) The corporation shall charge no interest on a loan awarded under this subsection.

SB421,3,3 (e) An in-home child care provider who receives a loan under this subsection shall, within one year of receiving the loan, establish or maintain enrollment in the child care provider's in-home child care facility. If enrollment is not established or maintained, the corporation shall terminate the loan agreement and the child care provider shall be liable to the corporation for the amount awarded.

SB421,3,4 (End)