HF 4570

1st Engrossment - 92nd Legislature (2021 - 2022) Posted on 03/31/2022 03:43pm

A bill for an act
relating to early childhood; making changes to prekindergarten programs; providing
for voluntary prekindergarten for eligible four-year-old children; establishing a
transition year for early childhood programs; appropriating money; amending
Minnesota Statutes 2020, sections 120A.20, subdivision 1; 120A.41; 124D.151,
as amended; Minnesota Statutes 2021 Supplement, sections 126C.05, subdivisions
1, 3; 126C.10, subdivision 2d; Laws 2021, First Special Session chapter 13, article
9, section 4, subdivision 3; repealing Minnesota Statutes 2020, section 124D.151,
subdivision 5; Minnesota Statutes 2021 Supplement, section 124D.151, subdivision
6.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2020, section 120A.20, subdivision 1, is amended to read:

Subdivision 1.

Age limitations; pupils.

(a) All schools supported in whole or in part
by state funds are public schools. Admission to a public school is free to any person who:
(1) resides within the district that operates the school; (2) is under 21 years of age or who
meets the requirements of paragraph (c); and (3) satisfies the minimum age requirements
imposed by this section. Notwithstanding the provisions of any law to the contrary, the
conduct of all students under 21 years of age attending a public secondary school is governed
by a single set of reasonable rules and regulations promulgated by the school board.

(b) A person shall not be admitted to a public school new text begin : new text end (1) new text begin as a prekindergarten pupil,
unless the pupil is at least four years of age as of September 1 of the calendar year in which
the school year for which the pupil seeks admission commences; (2) new text end as a kindergarten pupil,
unless the pupil is at least five years of age on September 1 of the calendar year in which
the school year for which the pupil seeks admission commences; or deleted text begin (2) deleted text end new text begin (3) new text end as a 1st grade
student, unless the pupil is at least six years of age on September 1 of the calendar year in
which the school year for which the pupil seeks admission commences or has completed
kindergarten; except that any school board may establish a policy for admission of selected
pupils at an earlier age under section 124D.02.

(c) A pupil who becomes age 21 after enrollment is eligible for continued free public
school enrollment until at least one of the following occurs: (1) the first September 1 after
the pupil's 21st birthday; (2) the pupil's completion of the graduation requirements; (3) the
pupil's withdrawal with no subsequent enrollment within 21 calendar days; or (4) the end
of the school year.

Sec. 2.

Minnesota Statutes 2020, section 120A.41, is amended to read:

120A.41 LENGTH OF SCHOOL YEAR; HOURS OF INSTRUCTION.

(a) A school board's annual school calendar must include at least 425 hours of instruction
for a kindergarten student without a disability, 935 hours of instruction for a student in
grades 1 through 6, and 1,020 hours of instruction for a student in grades 7 through 12, not
including summer school. The school calendar for new text begin a prekindergarten student without a
disability and a student in an new text end all-day kindergarten must include at least 850 hours of
instruction for the school year. deleted text begin The school calendar for a prekindergarten student under
section 124D.151, if offered by the district, must include at least 350 hours of instruction
for the school year. deleted text end A school board's annual calendar must include at least 165 days of
instruction for a student in grades 1 through 11 unless a four-day week schedule has been
approved by the commissioner under section 124D.126.

(b) A school board's annual school calendar may include plans for up to five days of
instruction provided through online instruction due to inclement weather. The inclement
weather plans must be developed according to section 120A.414.

Sec. 3.

Minnesota Statutes 2020, section 124D.151, as amended by Laws 2021, First
Special Session chapter 13, article 9, section 1, is amended to read:

124D.151 VOLUNTARY PREKINDERGARTEN PROGRAM new text begin FOR ELIGIBLE
FOUR-YEAR-OLD CHILDREN new text end .

Subdivision 1.

Establishment; purpose.

A deleted text begin district, a charter school, a group of districts,
a group of charter schools, or a group of districts and charter schools deleted text end new text begin school district or
charter school, a child care center or family child care provider licensed under section
245A.03, or a Head Start agency licensed under section 245A.03 that meets program
requirements under subdivision 2, new text end may establish a voluntary prekindergarten program new text begin for
eligible four-year-old children new text end . The purpose of a voluntary prekindergarten program is to
prepare children for success as they enter kindergarten in the following year.

new text begin Subd. 1a. new text end

new text begin Definition. new text end

new text begin For purposes of this section, a "lead teacher" is an individual with
primary responsibility for the instruction and care of eligible children in a voluntary
prekindergarten classroom. A lead teacher employed by a school district is a teacher for
purposes of sections 122A.40, subdivision 1; 122A.41, subdivision 1, clause (a); and
179A.03, subdivision 18.
new text end

Subd. 2.

Program requirements.

deleted text begin (a) deleted text end A voluntary prekindergarten program provider
must:

(1) provide instruction through play-based learning to foster children's social and
emotional development, cognitive development, physical and motor development, and
language and literacy skills, including the native language and literacy skills of English
learners, to the extent practicable;

(2) deleted text begin measure each child's cognitive and social skills deleted text end new text begin assess each child's progress toward
the state's early learning standards at program entrance and exit new text end using a new text begin
commissioner-approved, new text end formative deleted text begin measure aligned to the state's early learning standards
when the child enters and again before the child leaves the program, screening and progress
monitoring measures, and other age-appropriate versions from the state-approved menu of
kindergarten entry profile measures; deleted text end new text begin , age-appropriate assessment that must be submitted to
the department in the form and manner prescribed by the commissioner;
new text end

(3) provide comprehensive program content new text begin aligned with the state early learning
standards, new text end including the implementation of curriculum, assessment, and new text begin intentional new text end
instructional strategies deleted text begin aligned with the state early learning standards, and kindergarten
through grade 3 academic standards deleted text end ;

(4) provide instructional content and activities that are of sufficient length and intensity
to address learning needs including offering a program with at least deleted text begin 350 deleted text end new text begin 850 new text end hours of
instruction per school year for a prekindergarten student;

(5) provide voluntary prekindergarten deleted text begin instructional deleted text end staff salaries deleted text begin comparable deleted text end new text begin and set
salary schedules equivalent new text end to the salaries of deleted text begin local kindergarten through grade 12 instructional
staff; deleted text end new text begin public school district elementary school staff with similar credentials and experience
for school district and charter prekindergarten program sites and, to the extent practicable,
for Head Start, child care center, and family child care sites;
new text end

new text begin (6) employ a lead teacher for each voluntary prekindergarten classroom who has at least
a bachelor's degree in early education or a related field no later than July 1, 2028. Teachers
employed by an eligible provider for at least three of the last five years immediately preceding
July 1, 2022, who meet the necessary content knowledge and teaching skills for early
childhood educators, as demonstrated through measures determined by the state, may be
employed as a lead teacher;
new text end

deleted text begin (6) deleted text end new text begin (7) new text end coordinate appropriate kindergarten transition with families deleted text begin , community-based
prekindergarten programs, and school district kindergarten programs; deleted text end new text begin and all mixed-delivery
partners within the school district;
new text end

deleted text begin (7) deleted text end new text begin (8) new text end involve parents in program deleted text begin planning deleted text end new text begin decision-making new text end and transition planning by
implementing parent engagement strategies that include culturally and linguistically
responsive activities in prekindergarten through third grade that are aligned with early
childhood family education under section 124D.13;

deleted text begin (8) deleted text end new text begin (9) new text end coordinate with relevant community-based services, including health and social
service agencies, to ensure children have access to comprehensive services;

deleted text begin (9) deleted text end new text begin (10) new text end coordinate with all relevant school district programs and services including
early childhood special education, homeless students, and English learners;

deleted text begin (10) deleted text end new text begin (11) new text end ensure staff-to-child ratios of one-to-ten and a maximum group size of 20
children deleted text begin ; deleted text end new text begin in school-based programs, staff-to-child ratios and group size as required for child
care center and family child care licensing in programs offered in child care centers and by
family child care providers, and staff-to-child ratios and group size as determined by Head
Start standards in programs offered by Head Start agencies; and
new text end

deleted text begin (11) deleted text end new text begin (12) new text end provide high-quality coordinated professional development, training, and
coaching for deleted text begin both deleted text end school district deleted text begin and community-based early learning deleted text end new text begin , Head Start, child
care center, and family child care new text end providers that is informed by a measure of adult-child
interactions and enables teachers to be highly knowledgeable in early childhood curriculum
content, assessment, native and English language development programs, and instruction deleted text begin ;
and deleted text end new text begin .
new text end

deleted text begin (12) implement strategies that support the alignment of professional development,
instruction, assessments, and prekindergarten through grade 3 curricula.
deleted text end

deleted text begin (b) A voluntary prekindergarten program must have teachers knowledgeable in early
childhood curriculum content, assessment, native and English language programs, and
instruction.
deleted text end

deleted text begin (c) Districts and charter schools must include their strategy for implementing and
measuring the impact of their voluntary prekindergarten program under section 120B.11
and provide results in their world's best workforce annual summary to the commissioner of
education.
deleted text end

Subd. 3.

Mixed delivery deleted text begin of services deleted text end new text begin program plan new text end .

deleted text begin A district or charter school may
contract with a charter school, Head Start or child care centers, family child care programs
licensed under section 245A.03, or a community-based organization to provide eligible
children with developmentally appropriate services that meet the program requirements in
subdivision 2. Components of a mixed-delivery plan include strategies for recruitment,
contracting, and monitoring of fiscal compliance and program quality. deleted text end new text begin School districts and
charter schools that receive funding for voluntary prekindergarten programs must develop
and submit a mixed-delivery program plan to the Department of Education annually by July
1, 2023, and every year thereafter, in a manner and format prescribed by the commissioner.
The plan must ensure alignment of all voluntary prekindergarten program providers within
the school district boundaries in meeting the program requirements in subdivision 2 and
must include:
new text end

new text begin (1) a description of the process used to convene and obtain group agreement among all
voluntary prekindergarten program providers within the district boundaries in order to
coordinate efforts regarding the requirements in subdivision 2;
new text end

new text begin (2) a description of the voluntary prekindergarten program providers within the school
district boundaries, including but not limited to the name and location of partners and the
number of hours and days per week the program will be offered at each program site;
new text end

new text begin (3) an estimate of the number of eligible children to be served in the program at each
school site or mixed-delivery location;
new text end

new text begin (4) a plan for recruitment, outreach, and communication regarding the availability of
public prekindergarten programming within the community;
new text end

new text begin (5) a plan for coordinating and offering professional development opportunities, as
needed;
new text end

new text begin (6) a plan for coordinating the required child assessments, as needed, and continuous
quality improvement efforts to ensure quality instruction;
new text end

new text begin (7) a plan for meeting the needs for any child with an individualized education plan;
new text end

new text begin (8) a plan to ensure salaries equivalent to school staff with comparable credentials and
experience;
new text end

new text begin (9) a detailed plan for transitioning children and families to kindergarten; and
new text end

new text begin (10) a statement of assurances signed by the superintendent, charter school director,
Head Start director, child care center director, and family child care license holder that the
proposed program meets the requirements of subdivision 2. A statement of assurances must
be submitted in the mixed-delivery program plan and must be signed by an individual from
each voluntary prekindergarten program provider with authority to enter into the agreement.
new text end

new text begin Subd. 3a. new text end

new text begin Funding. new text end

new text begin (a) School district and charter school voluntary prekindergarten
providers are funded based on the number of eligible pupils enrolled as authorized under
chapters 124D, 124E, and 126C.
new text end

new text begin (b) Head Start voluntary prekindergarten providers that are licensed under section
245A.03 and meet the requirements of subdivisions 2 and 3 must receive $11,000 per child
served per year.
new text end

new text begin (c) Licensed child care center and family child care voluntary prekindergarten providers
that are licensed under section 245A.03 and meet the requirements of subdivisions 2 and 3
must receive $11,000 per child served per year.
new text end

new text begin (d) The commissioner must establish a process for allocating the seats under paragraphs
(b) and (c) that match community strengths, capacity, and needs. The number of seats per
year is subject to the availability of appropriations.
new text end

new text begin (e) Up to 2.5 percent of the amounts appropriated for paragraphs (b) and (c) may be
used for distribution of funds.
new text end

Subd. 4.

Eligibility.

deleted text begin A deleted text end new text begin (a) An eligible new text end child new text begin means a child new text end who new text begin :
new text end

new text begin (1) new text end is four years of age as of September 1 in the calendar year in which the school year
commences deleted text begin is deleted text end new text begin ; and
new text end

new text begin (2) meets at least one of the following criteria:
new text end

new text begin (i) qualifies for free or reduced-price meals;
new text end

new text begin (ii) is an English learner as defined by section 124D.59, subdivision 2;
new text end

new text begin (iii) is American Indian;
new text end

new text begin (iv) is experiencing homelessness;
new text end

new text begin (v) has an individualized education plan under section 125A.08;
new text end

new text begin (vi) was identified as having a potential risk factor that may influence learning through
health and developmental screening under sections 121A.16 to 121.19;
new text end

new text begin (vii) is in foster care, in need of child protection services, or in kinship care, including
children receiving Northstar kinship assistance under chapter 256N;
new text end

new text begin (viii) has a parent who is a migrant or seasonal agriculture laborer under section 181.85;
or
new text end

new text begin (ix) has a parent who is incarcerated.
new text end

new text begin (b) An new text end eligible deleted text begin to deleted text end new text begin child is eligible to new text end participate in a voluntary prekindergarten program
free of charge. deleted text begin An eligible four-year-old child served in a mixed-delivery system by a child
care center, family child care program licensed under section 245A.03, or community-based
organization deleted text end new text begin Programs may charge a sliding fee for the instructional hours that exceed 850
hours during the school year, any hours that provide before- or after-school child care during
the school year, or any hours that provide child care during the summer. A child that does
not meet the eligibility requirements in paragraph (a), clause (2), may participate in the
same classroom as eligible children and new text end may be charged a new text begin sliding new text end fee as long as deleted text begin the
mixed-delivery partner deleted text end new text begin state funding new text end was not awarded deleted text begin a seat deleted text end for that child.

new text begin (c) new text end Each eligible child must complete a health and developmental screening within 90
days of program enrollment under sections 121A.16 to 121A.19, and provide documentation
of required immunizations under section 121A.15.

Subd. 5.

Application process; priority for high poverty schools.

(a) To qualify for
program approval for fiscal year 2017, a district or charter school must submit an application
to the commissioner by July 1, 2016. To qualify for program approval for fiscal year 2018
and later, a district or charter school must submit an application to the commissioner by
January 30 of the fiscal year prior to the fiscal year in which the program will be
implemented. The application must include:

(1) a description of the proposed program, including the number of hours per week the
program will be offered at each school site or mixed-delivery location;

(2) an estimate of the number of eligible children to be served in the program at each
school site or mixed-delivery location; and

(3) a statement of assurances signed by the superintendent or charter school director that
the proposed program meets the requirements of subdivision 2.

(b) The commissioner must review all applications submitted for fiscal year 2017 by
August 1, 2016, and must review all applications submitted for fiscal year 2018 and later
by March 1 of the fiscal year in which the applications are received and determine whether
each application meets the requirements of paragraph (a).

(c) The commissioner must divide all applications for new or expanded voluntary
prekindergarten programs under this section meeting the requirements of paragraph (a) and
school readiness plus programs into four groups as follows: the Minneapolis and St. Paul
school districts; other school districts located in the metropolitan equity region as defined
in section 126C.10, subdivision 28; school districts located in the rural equity region as
defined in section 126C.10, subdivision 28; and charter schools. Within each group, the
applications must be ordered by rank using a sliding scale based on the following criteria:

(1) concentration of kindergarten students eligible for free or reduced-price lunches by
school site on October 1 of the previous school year. A school site may contract to partner
with a community-based provider or Head Start under subdivision 3 or establish an early
childhood center and use the concentration of kindergarten students eligible for free or
reduced-price meals from a specific school site as long as those eligible children are
prioritized and guaranteed services at the mixed-delivery site or early education center. For
school district programs to be operated at locations that do not have free and reduced-price
lunch concentration data for kindergarten programs for October 1 of the previous school
year, including mixed-delivery programs, the school district average concentration of
kindergarten students eligible for free or reduced-price lunches must be used for the rank
ordering;

(2) presence or absence of a three- or four-star Parent Aware rated program within the
school district or close proximity of the district. School sites with the highest concentration
of kindergarten students eligible for free or reduced-price lunches that do not have a three-
or four-star Parent Aware program within the district or close proximity of the district shall
receive the highest priority, and school sites with the lowest concentration of kindergarten
students eligible for free or reduced-price lunches that have a three- or four-star Parent
Aware rated program within the district or close proximity of the district shall receive the
lowest priority; and

(3) whether the district has implemented a mixed delivery system.

(d) The limit on participation for the programs as specified in subdivision 6 must initially
be allocated among the four groups based on each group's percentage share of the statewide
kindergarten enrollment on October 1 of the previous school year. Within each group, the
participation limit for fiscal years 2018 and 2019 must first be allocated to school sites
approved for aid in the previous year to ensure that those sites are funded for the same
number of participants as approved for the previous year. The remainder of the participation
limit for each group must be allocated among school sites in priority order until that region's
share of the participation limit is reached. If the participation limit is not reached for all
groups, the remaining amount must be allocated to the highest priority school sites, as
designated under this section, not funded in the initial allocation on a statewide basis. For
fiscal year 2020 and later, the participation limit must first be allocated to school sites
approved for aid in fiscal year 2017, and then to school sites approved for aid in fiscal year
2018 based on the statewide rankings under paragraph (c).

(e) Once a school site or a mixed delivery site under subdivision 3 is approved for aid
under this subdivision, it shall remain eligible for aid if it continues to meet program
requirements, regardless of changes in the concentration of students eligible for free or
reduced-price lunches.

(f) If the total number of participants approved based on applications submitted under
paragraph (a) is less than the participation limit under subdivision 6, the commissioner must
notify all school districts and charter schools of the amount that remains available within
30 days of the initial application deadline under paragraph (a), and complete a second round
of allocations based on applications received within 60 days of the initial application deadline.

(g) Procedures for approving applications submitted under paragraph (f) shall be the
same as specified in paragraphs (a) to (d), except that the allocations shall be made to the
highest priority school sites not funded in the initial allocation on a statewide basis.

Subd. 6.

Participation limits.

(a) Notwithstanding section 126C.05, subdivision 1,
paragraph (d), the pupil units for a voluntary prekindergarten program for an eligible school
district or charter school must not exceed 60 percent of the kindergarten pupil units for that
school district or charter school under section 126C.05, subdivision 1, paragraph (e).

(b) In reviewing applications under subdivision 5, the commissioner must limit the total
number of participants in the voluntary prekindergarten and school readiness plus programs
under Laws 2017, First Special Session chapter 5, article 8, section 9, to not more than 7,160
participants for fiscal years 2019, 2020, 2021, 2022, and 2023, and 3,160 participants for
fiscal years 2024 and later.

Subd. 7.

Financial accounting.

An eligible school district or charter school must record
expenditures attributable to voluntary prekindergarten pupils according to guidelines prepared
by the commissioner under section 127A.17. new text begin Child care centers, family child care providers,
and Head Start agencies must record expenditures attributable to voluntary prekindergarten
pupils according to guidelines developed and approved by the commissioner of education.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2023 and later.
new text end

Sec. 4.

Minnesota Statutes 2021 Supplement, section 126C.05, subdivision 1, is amended
to read:

Subdivision 1.

Pupil unit.

Pupil units for each Minnesota resident pupil under the age
of 21 or who meets the requirements of section 120A.20, subdivision 1, paragraph (c), in
average daily membership enrolled in the district of residence, in another district under
sections 123A.05 to 123A.08, 124D.03, 124D.08, or 124D.68; in a charter school under
chapter 124E; or for whom the resident district pays tuition under section 123A.18, 123A.22,
123A.30, 123A.32, 123A.44, 123A.488, 123B.88, subdivision 4, 124D.04, 124D.05, 125A.03
to 125A.24, 125A.51, or 125A.65, shall be counted according to this subdivision.

(a) A prekindergarten pupil with a disability who is enrolled in a program approved by
the commissioner and has an individualized education program is counted as the ratio of
the number of hours of assessment and education service to 825 times 1.0 with a minimum
average daily membership of 0.28, but not more than 1.0 pupil unit.

(b) A prekindergarten pupil who is assessed but determined not to be disabled is counted
as the ratio of the number of hours of assessment service to 825 times 1.0.

(c) A kindergarten pupil with a disability who is enrolled in a program approved by the
commissioner is counted as the ratio of the number of hours of assessment and education
services required in the fiscal year by the pupil's individualized education program to 875,
but not more than one.

(d) A prekindergarten pupil who is not included in paragraph (a) or (b) and is enrolled
in deleted text begin an approved deleted text end new text begin a new text end voluntary prekindergarten program under section 124D.151 deleted text begin is counted as
the ratio of the number of hours of instruction to 850 times 1.0, but not more than 0.6 pupil
units deleted text end new text begin that meets the minimum hours required in section 120A.41 is counted as 1.0 pupil
unit new text end .

(e) A kindergarten pupil who is not included in paragraph (c) is counted as 1.0 pupil
unit if the pupil is enrolled in a free all-day, every day kindergarten program available to
all kindergarten pupils at the pupil's school that meets the minimum hours requirement in
section 120A.41, or is counted as .55 pupil unit, if the pupil is not enrolled in a free all-day,
every day kindergarten program available to all kindergarten pupils at the pupil's school.

(f) A pupil who is in any of grades 1 to 6 is counted as 1.0 pupil unit.

(g) A pupil who is in any of grades 7 to 12 is counted as 1.2 pupil units.

(h) A pupil who is in the postsecondary enrollment options program is counted as 1.2
pupil units.

deleted text begin (i) For fiscal years 2018 through 2023, a prekindergarten pupil who:
deleted text end

deleted text begin (1) is not included in paragraph (a), (b), or (d);
deleted text end

deleted text begin (2) is enrolled in a school readiness plus program under Laws 2017, First Special Session
chapter 5, article 8, section 9; and
deleted text end

deleted text begin (3) has one or more of the risk factors specified by the eligibility requirements for a
school readiness plus program,
deleted text end

deleted text begin is counted as the ratio of the number of hours of instruction to 850 times 1.0, but not more
than 0.6 pupil units. A pupil qualifying under this paragraph must be counted in the same
manner as a voluntary prekindergarten student for all general education and other school
funding formulas.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2023 and later.
new text end

Sec. 5.

Minnesota Statutes 2021 Supplement, section 126C.05, subdivision 3, is amended
to read:

Subd. 3.

Compensation revenue pupil units.

Compensation revenue pupil units must
be computed according to this subdivision.

(a) The compensation revenue concentration percentage for each building in a district
equals the product of 100 times the ratio of:

(1) the sum of the number of pupils enrolled in the building eligible to receive free lunch
plus one-half of the pupils eligible to receive reduced priced lunch on October 1 of the
previous fiscal year; to

(2) the number of pupils enrolled in the building on October 1 of the previous fiscal
year.

(b) The compensation revenue pupil weighting factor for a building equals the lesser of
one or the quotient obtained by dividing the building's compensation revenue concentration
percentage by 80.0.

(c) The compensation revenue pupil units for a building equals the product of:

(1) the sum of the number of pupils enrolled in the building eligible to receive free lunch
and one-half of the pupils eligible to receive reduced priced lunch on October 1 of the
previous fiscal year; times

(2) the compensation revenue pupil weighting factor for the building; times

(3) .60.

(d) Notwithstanding paragraphs (a) to (c), for voluntary prekindergarten programs under
section 124D.151, charter schools, and contracted alternative programs in the first year of
operation, compensation revenue pupil units shall be computed using data for the current
fiscal year. If the voluntary prekindergarten program, charter school, or contracted alternative
program begins operation after October 1, compensatory revenue pupil units shall be
computed based on pupils enrolled on an alternate date determined by the commissioner,
and the compensation revenue pupil units shall be prorated based on the ratio of the number
of days of student instruction to 170 days.

deleted text begin (e) Notwithstanding paragraphs (a) to (c), for voluntary prekindergarten seats discontinued
in fiscal year 2024 due to the reduction in the participation limit under section 124D.151,
subdivision 6, those discontinued seats must not be used to calculate compensation revenue
pupil units for fiscal year 2024.
deleted text end

deleted text begin (f) deleted text end new text begin (e) new text end The percentages in this subdivision must be based on the count of individual
pupils and not on a building average or minimum.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2023 and later.
new text end

Sec. 6.

Minnesota Statutes 2021 Supplement, section 126C.10, subdivision 2d, is amended
to read:

Subd. 2d.

Declining enrollment revenue.

(a) A school district's declining enrollment
revenue equals the greater of zero or the product of: (1) 28 percent of the formula allowance
for that year and (2) the difference between the adjusted pupil units for the preceding year
and the adjusted pupil units for the current year.

(b) Notwithstanding paragraph (a), new text begin for prekindergarten programs new text end for fiscal year deleted text begin 2024 deleted text end new text begin
2023 new text end only, prekindergarten pupil units under section 126C.05, subdivision 1, paragraph deleted text begin (d) deleted text end new text begin
(c) new text end , must be excluded from the calculation of declining enrollment revenue.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2023 and later.
new text end

Sec. 7.

Laws 2021, First Special Session chapter 13, article 9, section 4, subdivision 3, is
amended to read:

Subd. 3.

Early learning scholarships.

(a) For the early learning scholarship program
under Minnesota Statutes, section 124D.165:

	$	70,709,000	.....	2022
	$	70,709,000	.....	2023

(b) This appropriation is subject to the requirements under Minnesota Statutes, section
124D.165, subdivision 6.

new text begin (c) Notwithstanding section 124D.165, for fiscal year 2023 only, the commissioner may
allocate funds to Head Start agencies, child care centers, and family child care providers as
necessary to implement the voluntary prekindergarten transition year, including allocating
funds under section 124D.165 as they existed prior to the date of enactment of this act.
new text end

Sec. 8. new text begin TRANSITION YEAR IN 2023.
new text end

new text begin (a) Fiscal year 2023 may serve as a transition year in order to give current voluntary
prekindergarten programs, school readiness plus programs, and early learning scholarships
pathway II programs a year to transition to the new voluntary prekindergarten program for
eligible four-year-old children and to make the necessary adjustments to meet the additional
program requirements and facilitate relationships with all voluntary prekindergarten program
providers within the school district boundaries.
new text end

new text begin (b) For fiscal year 2023 only, school districts operating a voluntary prekindergarten
program under Minnesota Statutes, section 124D.151, or school readiness plus program
under Laws 2017, First Special Session chapter 5, article 8, section 9, may apply to the
Department of Education to allow the program to continue to operate under the provisions
of Minnesota Statutes, sections 124D.151 and 126C.05, subdivision 1, as they existed prior
to the date of enactment of this act.
new text end

Sec. 9. new text begin APPROPRIATIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Department of Education. new text end

new text begin The sums indicated in this section are
appropriated from the general fund to the Department of Education for the fiscal years
designated.
new text end

new text begin Subd. 2. new text end

new text begin Voluntary prekindergarten through mixed delivery. new text end

new text begin For voluntary
prekindergarten provided by Head Start agencies, child care centers, and family child care
providers under Minnesota Statutes, section 124D.151, subdivision 3a, paragraphs (b) and
(c).
new text end

	new text begin $ new text end	new text begin 0 new text end	new text begin ..... new text end	new text begin 2022 new text end
	new text begin $ new text end	new text begin 96,920,000 new text end	new text begin ..... new text end	new text begin 2023 new text end

Sec. 10. new text begin REPEALER.
new text end

new text begin (a) new text end new text begin Minnesota Statutes 2020, section 124D.151, subdivision 5, new text end new text begin is repealed.
new text end

new text begin (b) new text end new text begin Minnesota Statutes 2021 Supplement, section 124D.151, subdivision 6, new text end new text begin is repealed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2022.
new text end

APPENDIX

Repealed Minnesota Statutes: H4570-1

124D.151 VOLUNTARY PREKINDERGARTEN PROGRAM.

Subd. 5.

Application process; priority for high poverty schools.

(a) To qualify for program approval for fiscal year 2017, a district or charter school must submit an application to the commissioner by July 1, 2016. To qualify for program approval for fiscal year 2018 and later, a district or charter school must submit an application to the commissioner by January 30 of the fiscal year prior to the fiscal year in which the program will be implemented. The application must include:

(1) a description of the proposed program, including the number of hours per week the program will be offered at each school site or mixed-delivery location;

(2) an estimate of the number of eligible children to be served in the program at each school site or mixed-delivery location; and

(3) a statement of assurances signed by the superintendent or charter school director that the proposed program meets the requirements of subdivision 2.

(b) The commissioner must review all applications submitted for fiscal year 2017 by August 1, 2016, and must review all applications submitted for fiscal year 2018 and later by March 1 of the fiscal year in which the applications are received and determine whether each application meets the requirements of paragraph (a).

(c) The commissioner must divide all applications for new or expanded voluntary prekindergarten programs under this section meeting the requirements of paragraph (a) and school readiness plus programs into four groups as follows: the Minneapolis and St. Paul school districts; other school districts located in the metropolitan equity region as defined in section 126C.10, subdivision 28; school districts located in the rural equity region as defined in section 126C.10, subdivision 28; and charter schools. Within each group, the applications must be ordered by rank using a sliding scale based on the following criteria:

(1) concentration of kindergarten students eligible for free or reduced-price lunches by school site on October 1 of the previous school year. A school site may contract to partner with a community-based provider or Head Start under subdivision 3 or establish an early childhood center and use the concentration of kindergarten students eligible for free or reduced-price meals from a specific school site as long as those eligible children are prioritized and guaranteed services at the mixed-delivery site or early education center. For school district programs to be operated at locations that do not have free and reduced-price lunch concentration data for kindergarten programs for October 1 of the previous school year, including mixed-delivery programs, the school district average concentration of kindergarten students eligible for free or reduced-price lunches must be used for the rank ordering;

(2) presence or absence of a three- or four-star Parent Aware rated program within the school district or close proximity of the district. School sites with the highest concentration of kindergarten students eligible for free or reduced-price lunches that do not have a three- or four-star Parent Aware program within the district or close proximity of the district shall receive the highest priority, and school sites with the lowest concentration of kindergarten students eligible for free or reduced-price lunches that have a three- or four-star Parent Aware rated program within the district or close proximity of the district shall receive the lowest priority; and

(3) whether the district has implemented a mixed delivery system.

(d) The limit on participation for the programs as specified in subdivision 6 must initially be allocated among the four groups based on each group's percentage share of the statewide kindergarten enrollment on October 1 of the previous school year. Within each group, the participation limit for fiscal years 2018 and 2019 must first be allocated to school sites approved for aid in the previous year to ensure that those sites are funded for the same number of participants as approved for the previous year. The remainder of the participation limit for each group must be allocated among school sites in priority order until that region's share of the participation limit is reached. If the participation limit is not reached for all groups, the remaining amount must be allocated to the highest priority school sites, as designated under this section, not funded in the initial allocation on a statewide basis. For fiscal year 2020 and later, the participation limit must first be allocated to school sites approved for aid in fiscal year 2017, and then to school sites approved for aid in fiscal year 2018 based on the statewide rankings under paragraph (c).

(e) Once a school site or a mixed delivery site under subdivision 3 is approved for aid under this subdivision, it shall remain eligible for aid if it continues to meet program requirements, regardless of changes in the concentration of students eligible for free or reduced-price lunches.

(f) If the total number of participants approved based on applications submitted under paragraph (a) is less than the participation limit under subdivision 6, the commissioner must notify all school districts and charter schools of the amount that remains available within 30 days of the initial application deadline under paragraph (a), and complete a second round of allocations based on applications received within 60 days of the initial application deadline.

(g) Procedures for approving applications submitted under paragraph (f) shall be the same as specified in paragraphs (a) to (d), except that the allocations shall be made to the highest priority school sites not funded in the initial allocation on a statewide basis.

Subd. 6.

Participation limits.

(a) Notwithstanding section 126C.05, subdivision 1, paragraph (d), the pupil units for a voluntary prekindergarten program for an eligible school district or charter school must not exceed 60 percent of the kindergarten pupil units for that school district or charter school under section 126C.05, subdivision 1, paragraph (e).

(b) In reviewing applications under subdivision 5, the commissioner must limit the total number of participants in the voluntary prekindergarten and school readiness plus programs under Laws 2017, First Special Session chapter 5, article 8, section 9, to not more than 7,160 participants for fiscal years 2019, 2020, 2021, 2022, and 2023, and 3,160 participants for fiscal years 2024 and later.