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ASSEMBLY SUBSTITUTE AMENDMENT 1,
TO ASSEMBLY BILL 388
September 8, 2023 - Offered by Representative Hurd.
AB388-ASA1,1,2 1An Act to create 238.145 of the statutes; relating to: creating a child care center
2renovations loan program.
This substitute amendment differs from 2023 Assembly Bill 388 in the
following respects:
1. Under the bill, the Wisconsin Economic Development Corporation may only
award loans to child care providers that are licensed at the time of receiving the loan.
Under the substitute amendment, WEDC may award loans to child care providers
that are licensed or certified at the time of receiving the loan or demonstrate to
WEDC that the child care provider will be licensed or certified within one year of
receiving a loan.
2. Under the bill, in-home child care providers must establish or maintain
enrollment within one year of receiving a loan. Under the substitute amendment,
this requirement applies to all child care providers.
3. Under the substitute amendment, to be eligible for a loan, a child care
provider must submit to WEDC a business plan and three-year financial forecast
that demonstrates that the child care provider is capable of repaying a loan. WEDC,
in consultation with the Department of Children and Families, may conduct an
inquiry into the child care provider's financial health three years after the child care
provider is awarded a loan. If WEDC, in consultation with DCF, determines that the
child care provider is no longer capable of repaying the loan, WEDC may terminate

the loan agreement and require that the child care provider immediately repay the
loan.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB388-ASA1,1 1Section 1. 238.145 of the statutes is created to read:
AB388-ASA1,2,6 2238.145 Child care center renovations revolving loan fund and
3program.
(1) Definition. In this section, “nonrelative children” means children
4who are not the child care provider's natural or adopted children, foster children,
5stepchildren, grandchildren, brothers, sisters, first cousins, nephews, nieces, uncles,
6or aunts.
AB388-ASA1,2,9 7(2) Establishment of fund. (a) The corporation shall establish a child care
8center renovations revolving loan fund, for the purpose of awarding loans under sub.
9(5).
AB388-ASA1,2,1110 (b) All moneys appropriated to the corporation for child care providers in the
112023-25 fiscal biennium shall be credited to the fund.
AB388-ASA1,2,1312 (c) All moneys received as repayments of loans awarded under sub. (5) shall be
13credited to the fund.
AB388-ASA1,2,17 14(3) Establishment of child care center renovations revolving loan program.
15The corporation shall establish and administer a child care center renovations
16revolving loan program for the purpose of awarding loans to child care providers
17under sub. (5).
AB388-ASA1,2,19 18(4) Eligibility. A child care provider is eligible for a loan under sub. (5) if all
19of the following conditions are met:
AB388-ASA1,3,220 (a) The child care provider is licensed under s. 48.65 or certified under s. 48.651
21or demonstrates to the corporation that the child care provider will be licensed under

1s. 48.65 or certified under s. 48.651 within one year after receiving a loan under sub.
2(5).
AB388-ASA1,3,53 (b) The child care provider submits to the corporation a business plan and
43-year financial forecast that demonstrates that the child care provider is capable
5of repaying a loan under sub. (5), as determined by the corporation.
AB388-ASA1,3,8 6(5) Loan requirements. (a) From the child care center renovations revolving
7loan fund, the corporation shall award loans to child care providers for renovations
8of child care facilities.
AB388-ASA1,3,119 (b) Of the loan funding awarded to child care providers under this subsection,
10the corporation shall award 60 percent to in-home child care providers and 40
11percent to child care providers that are not in-home.
AB388-ASA1,3,1412 (c) No loan awarded under this subsection to an in-home licensed child care
13provider may exceed $30,000. No loan awarded under this subsection to a licensed
14child care provider that is not in-home may exceed $100,000.
AB388-ASA1,3,1615 (d) The corporation shall charge no interest on a loan awarded under this
16subsection.
AB388-ASA1,3,2117 (e) A child care provider who receives a loan under this subsection shall, within
18one year of receiving the loan, establish or maintain enrollment of nonrelative
19children in the child care provider's child care facility. If enrollment is not
20established or maintained, the corporation shall terminate the loan agreement and
21the child care provider shall immediately repay the outstanding balance of the loan.
AB388-ASA1,4,322 (f) The corporation may, in consultation with the department of children and
23families, conduct an inquiry into a child care provider's financial health 3 years after
24the child care provider is awarded a loan under this subsection. If the corporation,
25in consultation with the department of children and families, determines that the

1child care provider is no longer capable of repaying the loan, as determined by the
2corporation, the corporation may terminate the loan agreement and may require
3that the child care provider immediately repay the outstanding balance of the loan.
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