Wisconsin Legislative Council
AMENDMENT MEMO
One Ea st Ma in Stre e t, Suite 401 • Ma dison, W I 53703 • (608) 266-1304 • le g.council@le gis.wisconsin.gov • http://www.le gis.wisconsin.gov/lc
Memo published: September 13, 2023 Contact: Amber Otis, Senior Staff Attorney
2023 Assembly Bill 388
Assembly Substitute
Amendment 1
2023 ASSEMBLY BILL 388
2023 Assembly Bill 388 requires the Wisconsin Economic Development Corporation (WEDC) to
establish a child care center revolving loan fund, and directs that funds appropriated to WEDC for child
care providers in the 2023-25 fiscal biennium be credited to the fund, as must any funds received as
repayments of loans awarded under the program.
The bill directs WEDC to award interest-free loans to licensed child care providers for renovations of
licensed child care facilities. The bill limits loan awards to a maximum of $30,000 for in-home licensed
child care providers and $100,000 to licensed child care providers that are not in-home.
Of the loans awarded under the program, WEDC must award 60 percent to in-home licensed child care
providers, and 40 percent to licensed child care providers that are not in-home. Under the bill, an in-
home child care provider must, within one year of receiving a loan under the program, establish or
maintain enrollment in the provider’s in-home facility. If enrollment is not established or maintained,
WEDC must terminate the loan agreement and the provider is liable for the amount awarded.
ASSEMBLY SUBSTITUTE AMENDMENT 1
The substitute amendment maintains the child care revolving loan program as provided under the bill,
but with the following changes:
Expands program eligibility to child care providers who are licensed or certified,
1
or who
demonstrate to WEDC that the provider will be licensed or certified within one year after receiving a
loan under the program, rather limiting eligibility to licensed child care providers as under the bill.
Requires providers to submit to WEDC a business plan and a three-year financial forecast
demonstrating that the provider is capable of repaying the loan, as determined by WEDC.
Authorizes WEDC to (1) conduct an inquiry into a provider’s financial health three years after the
loan award and (2) if WEDC determines the provider is no longer capable of repaying the loan,
terminate the loan agreement and require the provider to immediately repay the outstanding loan
balance.
Requires all child care providers receiving a loan under the program to maintain or establish
enrollment within one year of receiving the loan, and further specifies that the enrollment
requirement applies only to nonrelative children, as defined in the amendment.
1
Current law requires a person providing care and supervision for four or more children under age seven to be licensed
by the Department of Children and Families, subject to certain exceptions. [s. 48.65 (1), Stats.] While persons caring
for less than four children are not required to be licensed, such persons must be certified in order to receive payment
for providing child care services for families receiving the state’s child care subsidy. [s. 48.651 (1), Stats.] - 2 -
BILL HISTORY
Representative Hurd introduced Assembly Bill 388 on September 1, 2023, and offered Assembly
Substitute Amendment 1 on September 8, 2023. On September 12, 2023, the Assembly Committee on
Children and Families recommended adoption of the substitute amendment on votes of Ayes, 12; Noes,
0; and recommended passage of the bill, as amended, on votes of Ayes, 8; Noes, 4.
For a full history of the bill, visit the Legislature’s bill history page.
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