1.1 	A bill for an act
1.2 	relating to early childhood; making changes to child care assistance, child care 
1.3 	licensing, health and human services policies, and early education programs; 
1.4 	requiring reports; appropriating money;amending Minnesota Statutes 2020, sections 
1.5 	119A.52; 119B.03, subdivisions 4, 6; 119B.09, subdivision 4; 119B.11, subdivision 
1.6 	2a; 119B.125, subdivision 1; 119B.13, subdivisions 1, 1a, 6, 7; 119B.25, 
1.7 	subdivision 3; 124D.13, subdivision 2; 124D.142; 124D.151, subdivisions 2, 5, 
1.8 	6; 124D.162; 124D.165, subdivisions 2, 3; 126C.05, subdivisions 1, 3; 136A.128, 
1.9 	subdivisions 2, 4; 144.225, subdivision 2; 245A.14, subdivision 4; 245A.50, 
1.10 	subdivisions 7, 9; proposing coding for new law in Minnesota Statutes, chapters 
1.11 	119B; 122A; 124D; 245; repealing Minnesota Statutes 2020, sections 119B.04; 
1.12 	119B.125, subdivision 5; Laws 2017, First Special Session chapter 5, article 8, 
1.13 	section 9.
1.14 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.15 	ARTICLE 1
1.16 	CHILD CARE ASSISTANCE

1.17 	Section 1. Minnesota Statutes 2020, section 119B.03, subdivision 4, is amended to read:
1.18 		Subd. 4.Funding priority. (a) First priority for child care assistance under the basic 
1.19 	sliding fee program must be given to eligible non-MFIP families who do not have a high 
1.20 	school diploma or commissioner of education-selected high school equivalency certification 
1.21 	or who need remedial and basic skill courses in order to pursue employment or to pursue 
1.22 	education leading to employment and who need child care assistance to participate in the 
1.23 	education program. This includes student parents as defined under section 119B.011, 
1.24 	subdivision 19b. Within this priority, the following subpriorities must be used:
1.25 	(1) child care needs of minor parents;
1.26 	(2) child care needs of parents under 21 years of age; and
2.1 	(3) child care needs of other parents within the priority group described in this paragraph.
2.2 	(b) Second priority must be given to parents who have completed their MFIP or DWP 
2.3 	transition year, or parents who are no longer receiving or eligible for diversionary work 
2.4 	program supports families in which at least one parent is a veteran, as defined under section 
2.5 	197.447.
2.6 	(c) Third priority must be given to eligible families who are eligible for portable basic 
2.7 	sliding fee assistance through the portability pool under subdivision 9 do not meet the 
2.8 	specifications of paragraph (a), (b), (d), or (e).
2.9 	(d) Fourth priority must be given to families in which at least one parent is a veteran as 
2.10 	defined under section 197.447 who are eligible for portable basic sliding fee assistance 
2.11 	through the portability pool under subdivision 9.
2.12 	(e) Fifth priority must be given to eligible families receiving services under section 
2.13 	119B.011, subdivision 20a, if the parents have completed their MFIP or DWP transition 
2.14 	year, or if the parents are no longer receiving or eligible for DWP supports.
2.15 	(e) (f) Families under paragraph (b) (e) must be added to the basic sliding fee waiting 
2.16 	list on the date they begin the complete their transition year under section 119B.011, 
2.17 	subdivision 20, and must be moved into the basic sliding fee program as soon as possible 
2.18 	after they complete their transition year.

2.19 	EFFECTIVE DATE. This section is effective July 1, 2021.

2.20 	Sec. 2. Minnesota Statutes 2020, section 119B.03, subdivision 6, is amended to read:
2.21 		Subd. 6.Allocation formula. The allocation component of basic sliding fee state and 
2.22 	federal funds shall be allocated on a calendar year basis. Funds shall be allocated first in 
2.23 	amounts equal to each county's guaranteed floor according to subdivision 8, with any 
2.24 	remaining available funds allocated according to the following formula:
2.25 	(a) One-fourth of the funds shall be allocated in proportion to each county's total 
2.26 	expenditures for the basic sliding fee child care program reported during the most recent 
2.27 	fiscal year completed at the time of the notice of allocation.
2.28 	(b) Up to one-fourth of the funds shall be allocated in proportion to the number of families 
2.29 	participating in the transition year child care program as reported during and averaged over 
2.30 	the most recent six months completed at the time of the notice of allocation. Funds in excess 
2.31 	of the amount necessary to serve all families in this category shall be allocated according 
2.32 	to paragraph (f) (e).
3.1 	(c) Up to one-fourth of the funds shall be allocated in proportion to the average of each 
3.2 	county's most recent six months of reported first, second, and third priority waiting list as 
3.3 	defined in subdivision 2 and the reinstatement list of those families whose assistance was 
3.4 	terminated with the approval of the commissioner under Minnesota Rules, part 3400.0183, 
3.5 	subpart 1. Funds in excess of the amount necessary to serve all families in this category 
3.6 	shall be allocated according to paragraph (f).
3.7 	(d) (c) Up to one-fourth one-half of the funds shall be allocated in proportion to the 
3.8 	average of each county's most recent six 12 months of reported waiting list as defined in 
3.9 	subdivision 2 and the reinstatement list of those families whose assistance was terminated 
3.10 	with the approval of the commissioner under Minnesota Rules, part 3400.0183, subpart 1. 
3.11 	Funds in excess of the amount necessary to serve all families in this category shall be 
3.12 	allocated according to paragraph (f) (e).
3.13 	(e) (d) The amount necessary to serve all families in paragraphs (b), (c), and (d) (c) shall 
3.14 	be calculated based on the basic sliding fee average cost of care per family in the county 
3.15 	with the highest cost in the most recently completed calendar year.
3.16 	(f) (e) Funds in excess of the amount necessary to serve all families in paragraphs (b), 
3.17 	(c), and (d) (c) shall be allocated in proportion to each county's total expenditures for the 
3.18 	basic sliding fee child care program reported during the most recent fiscal year completed 
3.19 	at the time of the notice of allocation.

3.20 	EFFECTIVE DATE. This section is effective January 1, 2022. The 2022 calendar year 
3.21 	shall be a phase-in year for the allocation formula in this section using phase-in provisions 
3.22 	determined by the commissioner of human services.

3.23 	Sec. 3. Minnesota Statutes 2020, section 119B.09, subdivision 4, is amended to read:
3.24 		Subd. 4.Eligibility; annual income; calculation. (a) Annual income of the applicant 
3.25 	family is the current monthly income of the family multiplied by 12 or the income for the 
3.26 	12-month period immediately preceding the date of application, or income calculated by 
3.27 	the method which provides the most accurate assessment of income available to the family.
3.28 	(b) Self-employment income must be calculated based on gross receipts less operating 
3.29 	expenses.
3.30 	(c) Income changes are processed under section 119B.025, subdivision 4. Included lump 
3.31 	sums counted as income under section 256P.06, subdivision 3 119B.011, subdivision 15, 
3.32 	must be annualized over 12 months. Income must be verified with documentary evidence. 
4.1 	If the applicant does not have sufficient evidence of income, verification must be obtained 
4.2 	from the source of the income.

4.3 	EFFECTIVE DATE. This section is effective March 1, 2023.

4.4 	Sec. 4. Minnesota Statutes 2020, section 119B.11, subdivision 2a, is amended to read:
4.5 		Subd. 2a.Recovery of overpayments. (a) An amount of child care assistance paid to a 
4.6 	recipient or provider in excess of the payment due is recoverable by the county agency or 
4.7 	commissioner under paragraphs (b) and (c), even when the overpayment was caused by 
4.8 	agency error or circumstances outside the responsibility and control of the family or provider.
4.9 	(b) An overpayment must be recouped or recovered from the family if the overpayment 
4.10 	benefited the family by causing the family to pay less for child care expenses than the family 
4.11 	otherwise would have been required to pay under child care assistance program requirements. 
4.12 	If the family remains eligible for child care assistance, the overpayment must be recovered 
4.13 	through recoupment as identified in Minnesota Rules, part 3400.0187, except that the 
4.14 	overpayments must be calculated and collected on a service period basis. If the family no 
4.15 	longer remains eligible for child care assistance, the county or commissioner may choose 
4.16 	to initiate efforts to recover overpayments from the family for overpayment less than $50. 
4.17 	If the overpayment is greater than or equal to $50, the county or commissioner shall seek 
4.18 	voluntary repayment of the overpayment from the family. If the county or commissioner is 
4.19 	unable to recoup the overpayment through voluntary repayment, the county or commissioner 
4.20 	shall initiate civil court proceedings to recover the overpayment unless the county's or 
4.21 	commissioner's costs to recover the overpayment will exceed the amount of the overpayment. 
4.22 	A family with an outstanding debt under this subdivision is not eligible for child care 
4.23 	assistance until: (1) the debt is paid in full; or (2) satisfactory arrangements are made with 
4.24 	the county or commissioner to retire the debt consistent with the requirements of this chapter 
4.25 	and Minnesota Rules, chapter 3400, and the family is in compliance with the arrangements; 
4.26 	or (3) the commissioner determines that it is in the best interests of the state to compromise 
4.27 	debts owed to the state pursuant to section 16D.15. The commissioner's authority to recoup 
4.28 	and recover overpayments from families in this paragraph is limited to investigations 
4.29 	conducted under chapter 245E.
4.30 	(c) The county or commissioner must recover an overpayment from a provider if the 
4.31 	overpayment did not benefit the family by causing it to receive more child care assistance 
4.32 	or to pay less for child care expenses than the family otherwise would have been eligible 
4.33 	to receive or required to pay under child care assistance program requirements, and benefited 
4.34 	the provider by causing the provider to receive more child care assistance than otherwise 
5.1 	would have been paid on the family's behalf under child care assistance program 
5.2 	requirements. If the provider continues to care for children receiving child care assistance, 
5.3 	the overpayment must be recovered through reductions in child care assistance payments 
5.4 	for services as described in an agreement with the county recoupment as identified in 
5.5 	Minnesota Rules, part 3400.0187. The provider may not charge families using that provider 
5.6 	more to cover the cost of recouping the overpayment. If the provider no longer cares for 
5.7 	children receiving child care assistance, the county or commissioner may choose to initiate 
5.8 	efforts to recover overpayments of less than $50 from the provider. If the overpayment is 
5.9 	greater than or equal to $50, the county or commissioner shall seek voluntary repayment 
5.10 	of the overpayment from the provider. If the county or commissioner is unable to recoup 
5.11 	the overpayment through voluntary repayment, the county or commissioner shall initiate 
5.12 	civil court proceedings to recover the overpayment unless the county's or commissioner's
5.13 	costs to recover the overpayment will exceed the amount of the overpayment. A provider 
5.14 	with an outstanding debt under this subdivision is not eligible to care for children receiving 
5.15 	child care assistance until:
5.16 	(1) the debt is paid in full; or
5.17 	(2) satisfactory arrangements are made with the county or commissioner to retire the 
5.18 	debt consistent with the requirements of this chapter and Minnesota Rules, chapter 3400, 
5.19 	and the provider is in compliance with the arrangements.; or
5.20 	(3) the commissioner determines that it is in the best interests of the state to compromise 
5.21 	debts owed to the state pursuant to section 16D.15.
5.22 	(d) When both the family and the provider acted together to intentionally cause the 
5.23 	overpayment, both the family and the provider are jointly liable for the overpayment 
5.24 	regardless of who benefited from the overpayment. The county or commissioner must 
5.25 	recover the overpayment as provided in paragraphs (b) and (c). When the family or the 
5.26 	provider is in compliance with a repayment agreement, the party in compliance is eligible 
5.27 	to receive child care assistance or to care for children receiving child care assistance despite 
5.28 	the other party's noncompliance with repayment arrangements.

5.29 	EFFECTIVE DATE. This section is effective August 1, 2021.

5.30 	Sec. 5. Minnesota Statutes 2020, section 119B.125, subdivision 1, is amended to read:
5.31 		Subdivision 1.Authorization. Except as provided in subdivision 5, A county or the 
5.32 	commissioner must authorize the provider chosen by an applicant or a participant before 
5.33 	the county can authorize payment for care provided by that provider. The commissioner 
6.1 	must establish the requirements necessary for authorization of providers. A provider must 
6.2 	be reauthorized every two years. A legal, nonlicensed family child care provider also must 
6.3 	be reauthorized when another person over the age of 13 joins the household, a current 
6.4 	household member turns 13, or there is reason to believe that a household member has a 
6.5 	factor that prevents authorization. The provider is required to report all family changes that 
6.6 	would require reauthorization. When a provider has been authorized for payment for 
6.7 	providing care for families in more than one county, the county responsible for 
6.8 	reauthorization of that provider is the county of the family with a current authorization for 
6.9 	that provider and who has used the provider for the longest length of time.

6.10 	EFFECTIVE DATE. This section is effective August 1, 2021.

6.11 	Sec. 6. Minnesota Statutes 2020, section 119B.13, subdivision 1, is amended to read:
6.12 		Subdivision 1.Subsidy restrictions. (a) The maximum rate paid for child care assistance 
6.13 	in any county or county price cluster under the child care fund shall be the greater of the 
6.14 	25th percentile of the 2018 child care provider rate survey or the rates in effect at the time 
6.15 	of the update. set in accordance with rates and policies established by the commissioner, 
6.16 	dependent on federal funds, and consistent with federal law, up to a maximum of the 75th 
6.17 	percentile of the most recent child care provider rate survey, but in no event shall the 
6.18 	maximum rate be less than the greater of the 50th percentile of the most recent child care 
6.19 	provider rate survey or the rates in effect at the time of the update. The rate increase is 
6.20 	effective no later than the first full service period on or after January 1 of the year following 
6.21 	the provider rate survey. For a child care provider located within the boundaries of a city 
6.22 	located in two or more of the counties of Benton, Sherburne, and Stearns, the maximum 
6.23 	rate paid for child care assistance shall be equal to the maximum rate paid in the county 
6.24 	with the highest maximum reimbursement rates or the provider's charge, whichever is less. 
6.25 	The commissioner may: (1) assign a county with no reported provider prices to a similar 
6.26 	price cluster; and (2) consider county level access when determining final price clusters.
6.27 	(b) A rate which includes a special needs rate paid under subdivision 3 may be in excess 
6.28 	of the maximum rate allowed under this subdivision.
6.29 	(c) The department shall monitor the effect of this paragraph on provider rates. The 
6.30 	county shall pay the provider's full charges for every child in care up to the maximum 
6.31 	established. The commissioner shall determine the maximum rate for each type of care on 
6.32 	an hourly, full-day, and weekly basis, including special needs and disability care.
7.1 	(d) If a child uses one provider, the maximum payment for one day of care must not 
7.2 	exceed the daily rate. The maximum payment for one week of care must not exceed the 
7.3 	weekly rate.
7.4 	(e) If a child uses two providers under section 119B.097, the maximum payment must 
7.5 	not exceed:
7.6 	(1) the daily rate for one day of care;
7.7 	(2) the weekly rate for one week of care by the child's primary provider; and
7.8 	(3) two daily rates during two weeks of care by a child's secondary provider.
7.9 	(f) Child care providers receiving reimbursement under this chapter must not be paid 
7.10 	activity fees or an additional amount above the maximum rates for care provided during 
7.11 	nonstandard hours for families receiving assistance.
7.12 	(g) If the provider charge is greater than the maximum provider rate allowed, the parent 
7.13 	is responsible for payment of the difference in the rates in addition to any family co-payment 
7.14 	fee.
7.15 	(h) All maximum provider rates changes shall be implemented on the Monday following 
7.16 	the effective date of the maximum provider rate.
7.17 	(i) Beginning September 21, 2020, (h) The maximum registration fee paid for child care 
7.18 	assistance in any county or county price cluster under the child care fund shall be the greater 
7.19 	of the 25th percentile of the 2018 child care provider rate survey or the registration fee in 
7.20 	effect at the time of the update.set in accordance with rates and policies established by the 
7.21 	commissioner, dependent on federal funds, and consistent with federal law, up to a maximum 
7.22 	of the 75th percentile of the most recent child care provider rate survey, but in no event 
7.23 	shall the maximum registration fee be less than the greater of the 50th percentile of the most 
7.24 	recent child care provider rate survey or the registration fee in effect at the time of the update. 
7.25 	Each maximum registration fee update must be implemented on the same schedule as 
7.26 	maximum child care assistance rate increases under paragraph (a). Maximum registration 
7.27 	fees must be set for licensed family child care and for child care centers. For a child care 
7.28 	provider located in the boundaries of a city located in two or more of the counties of Benton, 
7.29 	Sherburne, and Stearns, the maximum registration fee paid for child care assistance shall 
7.30 	be equal to the maximum registration fee paid in the county with the highest maximum 
7.31 	registration fee or the provider's charge, whichever is less.

7.32 	EFFECTIVE DATE. This section is effective the day following final enactment.

8.1 	Sec. 7. Minnesota Statutes 2020, section 119B.13, subdivision 1a, is amended to read:
8.2 		Subd. 1a.Legal nonlicensed family child care provider rates. (a) Legal nonlicensed 
8.3 	family child care providers receiving reimbursement under this chapter must be paid on an 
8.4 	hourly basis for care provided to families receiving assistance.
8.5 	(b) The maximum rate paid to legal nonlicensed family child care providers must be 68
8.6 	90 percent of the county maximum hourly rate for licensed family child care providers. The 
8.7 	rate increase is effective the first full service period on or after January 1 of the year following 
8.8 	the provider rate survey. In counties or county price clusters where the maximum hourly 
8.9 	rate for licensed family child care providers is higher than the maximum weekly rate for 
8.10 	those providers divided by 50, the maximum hourly rate that may be paid to legal nonlicensed 
8.11 	family child care providers is the rate equal to the maximum weekly rate for licensed family 
8.12 	child care providers divided by 50 and then multiplied by 0.68 0.90. The maximum payment 
8.13 	to a provider for one day of care must not exceed the maximum hourly rate times ten. The 
8.14 	maximum payment to a provider for one week of care must not exceed the maximum hourly 
8.15 	rate times 50.
8.16 	(c) A rate which includes a special needs rate paid under subdivision 3 may be in excess 
8.17 	of the maximum rate allowed under this subdivision.
8.18 	(d) Legal nonlicensed family child care providers receiving reimbursement under this 
8.19 	chapter may not be paid registration fees for families receiving assistance.

8.20 	EFFECTIVE DATE. This section is effective the day following final enactment.

8.21 	Sec. 8. Minnesota Statutes 2020, section 119B.13, subdivision 6, is amended to read:
8.22 		Subd. 6.Provider payments. (a) A provider shall bill only for services documented 
8.23 	according to section 119B.125, subdivision 6. The provider shall bill for services provided 
8.24 	within ten days of the end of the service period. Payments under the child care fund shall 
8.25 	be made within 21 days of receiving a complete bill from the provider. Counties or the state 
8.26 	may establish policies that make payments on a more frequent basis.
8.27 	(b) If a provider has received an authorization of care and been issued a billing form for 
8.28 	an eligible family, the bill must be submitted within 60 days of the last date of service on 
8.29 	the bill. A bill submitted more than 60 days after the last date of service must be paid if the 
8.30 	county determines that the provider has shown good cause why the bill was not submitted 
8.31 	within 60 days. Good cause must be defined in the county's child care fund plan under 
8.32 	section 119B.08, subdivision 3, and the definition of good cause must include county error. 
9.1 	Any bill submitted more than a year after the last date of service on the bill must not be 
9.2 	paid.
9.3 	(c) If a provider provided care for a time period without receiving an authorization of 
9.4 	care and a billing form for an eligible family, payment of child care assistance may only be 
9.5 	made retroactively for a maximum of six three months from the date the provider is issued 
9.6 	an authorization of care and billing form. For a family at application, if a provider provided 
9.7 	child care during a time period without receiving an authorization of care and a billing form, 
9.8 	a county may only make child care assistance payments to the provider retroactively from 
9.9 	the date that child care began, or from the date that the family's eligibility began under 
9.10 	section 119B.09, subdivision 7, or from the date that the family meets authorization 
9.11 	requirements, not to exceed six months from the date the provider is issued an authorization 
9.12 	of care and billing form, whichever is later.
9.13 	(d) A county or the commissioner may refuse to issue a child care authorization to a 
9.14 	certified, licensed, or legal nonlicensed provider, revoke an existing child care authorization 
9.15 	to a certified, licensed, or legal nonlicensed provider, stop payment issued to a certified, 
9.16 	licensed, or legal nonlicensed provider, or refuse to pay a bill submitted by a certified, 
9.17 	licensed, or legal nonlicensed provider if:
9.18 	(1) the provider admits to intentionally giving the county materially false information 
9.19 	on the provider's billing forms;
9.20 	(2) a county or the commissioner finds by a preponderance of the evidence that the 
9.21 	provider intentionally gave the county materially false information on the provider's billing 
9.22 	forms, or provided false attendance records to a county or the commissioner;
9.23 	(3) the provider is in violation of child care assistance program rules, until the agency 
9.24 	determines those violations have been corrected;
9.25 	(4) the provider is operating after:
9.26 	(i) an order of suspension of the provider's license issued by the commissioner;
9.27 	(ii) an order of revocation of the provider's license issued by the commissioner; or
9.28 	(iii) a final order of conditional license issued by the commissioner for as long as the 
9.29 	conditional license is in effect an order of decertification issued to the provider;
9.30 	(5) the provider submits false attendance reports or refuses to provide documentation 
9.31 	of the child's attendance upon request;
9.32 	(6) the provider gives false child care price information; or
10.1 	(7) the provider fails to report decreases in a child's attendance as required under section 
10.2 	119B.125, subdivision 9.
10.3 	(e) For purposes of paragraph (d), clauses (3), (5), (6), and (7), the county or the 
10.4 	commissioner may withhold the provider's authorization or payment for a period of time 
10.5 	not to exceed three months beyond the time the condition has been corrected.
10.6 	(f) A county's payment policies must be included in the county's child care plan under 
10.7 	section 119B.08, subdivision 3. If payments are made by the state, in addition to being in 
10.8 	compliance with this subdivision, the payments must be made in compliance with section 
10.9 	16A.124.
10.10 	(g) If the commissioner or responsible county agency suspends or refuses payment to a 
10.11 	provider under paragraph (d), clause (1) or (2), or chapter 245E and the provider has:
10.12 	(1) a disqualification for wrongfully obtaining assistance under section 256.98, 
10.13 	subdivision 8, paragraph (c);
10.14 	(2) an administrative disqualification under section 256.046, subdivision 3; or
10.15 	(3) a termination under section 245E.02, subdivision 4, paragraph (c), clause (4), or 
10.16 	245E.06;
10.17 	then the provider forfeits the payment to the commissioner or the responsible county agency, 
10.18 	regardless of the amount assessed in an overpayment, charged in a criminal complaint, or 
10.19 	ordered as criminal restitution.

10.20 	EFFECTIVE DATE. This section is effective August 1, 2021.

10.21 	Sec. 9. Minnesota Statutes 2020, section 119B.13, subdivision 7, is amended to read:
10.22 		Subd. 7.Absent days. (a) Licensed child care providers and license-exempt centers 
10.23 	must not be reimbursed for more than 25 full-day absent days per child, excluding holidays, 
10.24 	in a calendar year, or for more than ten consecutive full-day absent days. "Absent day" 
10.25 	means any day that the child is authorized and scheduled to be in care with a licensed 
10.26 	provider or license-exempt center, and the child is absent from the care for the entire day. 
10.27 	Legal nonlicensed family child care providers must not be reimbursed for absent days. If a 
10.28 	child attends for part of the time authorized to be in care in a day, but is absent for part of 
10.29 	the time authorized to be in care in that same day, the absent time must be reimbursed but 
10.30 	the time must not count toward the absent days limit. Child care providers must only be 
10.31 	reimbursed for absent days if the provider has a written policy for child absences and charges 
10.32 	all other families in care for similar absences.
11.1 	(b) Notwithstanding paragraph (a), children with documented medical conditions that 
11.2 	cause more frequent absences may exceed the 25 absent days limit, or ten consecutive 
11.3 	full-day absent days limit. Absences due to a documented medical condition of a parent or 
11.4 	sibling who lives in the same residence as the child receiving child care assistance do not 
11.5 	count against the absent days limit in a calendar year. Documentation of medical conditions 
11.6 	must be on the forms and submitted according to the timelines established by the 
11.7 	commissioner. A public health nurse or school nurse may verify the illness in lieu of a 
11.8 	medical practitioner. If a provider sends a child home early due to a medical reason, 
11.9 	including, but not limited to, fever or contagious illness, the child care center director or 
11.10 	lead teacher may verify the illness in lieu of a medical practitioner.
11.11 	(c) Notwithstanding paragraph (a), children in families may exceed the absent days limit 
11.12 	if at least one parent: (1) is under the age of 21; (2) does not have a high school diploma or 
11.13 	commissioner of education-selected high school equivalency certification; and (3) is a 
11.14 	student in a school district or another similar program that provides or arranges for child 
11.15 	care, parenting support, social services, career and employment supports, and academic 
11.16 	support to achieve high school graduation, upon request of the program and approval of the 
11.17 	county. If a child attends part of an authorized day, payment to the provider must be for the 
11.18 	full amount of care authorized for that day.
11.19 	(d) Child care providers must be reimbursed for up to ten federal or state holidays or 
11.20 	designated holidays per year when the provider charges all families for these days and the 
11.21 	holiday or designated holiday falls on a day when the child is authorized to be in attendance. 
11.22 	Parents may substitute other cultural or religious holidays for the ten recognized state and 
11.23 	federal holidays. Holidays do not count toward the absent days limit.
11.24 	(e) A family or child care provider must not be assessed an overpayment for an absent 
11.25 	day payment unless (1) there was an error in the amount of care authorized for the family, 
11.26 	or (2) all of the allowed full-day absent payments for the child have been paid, or (3) the 
11.27 	family or provider did not timely report a change as required under law.
11.28 	(f) The provider and family shall receive notification of the number of absent days used 
11.29 	upon initial provider authorization for a family and ongoing notification of the number of 
11.30 	absent days used as of the date of the notification.
11.31 	(g) For purposes of this subdivision, "absent days limit" means 25 full-day absent days 
11.32 	per child, excluding holidays, in a calendar year; and ten consecutive full-day absent days.
11.33 	(h) For purposes of this subdivision, "holidays limit" means ten full-day holidays per 
11.34 	child, excluding absent days, in a calendar year.
12.1 	(i) If a day meets the criteria of an absent day or a holiday under this subdivision, the 
12.2 	provider must bill that day as an absent day or holiday. A provider's failure to properly bill 
12.3 	an absent day or a holiday results in an overpayment, regardless of whether the child reached, 
12.4 	or is exempt from, the absent days limit or holidays limit for the calendar year.

12.5 	EFFECTIVE DATE. This section is effective August 1, 2021.

12.6 	Sec. 10. Minnesota Statutes 2020, section 119B.25, subdivision 3, is amended to read:
12.7 		Subd. 3.Financing program. A nonprofit corporation that receives a grant under this 
12.8 	section shall use the money to:
12.9 	(1) establish a revolving loan fund to make loans to existing, expanding, and new licensed 
12.10 	and legal unlicensed child care and early childhood education sites;
12.11 	(2) establish a fund to guarantee private loans to improve or construct a child care or 
12.12 	early childhood education site;
12.13 	(3) establish a fund to provide forgivable loans or grants to match all or part of a loan 
12.14 	made under this section;
12.15 	(4) establish a fund as a reserve against bad debt; and
12.16 	(5) establish a fund to provide business planning assistance for child care providers.; 
12.17 	and
12.18 	(6) provide training and consultation for child care providers to build and strengthen 
12.19 	their businesses and acquire key business skills.
12.20 	The nonprofit corporation shall establish the terms and conditions for loans and loan 
12.21 	guarantees including, but not limited to, interest rates, repayment agreements, private match 
12.22 	requirements, and conditions for loan forgiveness. The nonprofit corporation shall establish 
12.23 	a minimum interest rate for loans to ensure that necessary loan administration costs are 
12.24 	covered. The nonprofit corporation may use interest earnings for administrative expenses.

12.25 	Sec. 11. REPEALER.
 12.26 	Minnesota Statutes 2020, sections 119B.04; and 119B.125, subdivision 5, are repealed.

12.27 	EFFECTIVE DATE. This section is effective August 1, 2021.

13.1 	ARTICLE 2
13.2 	CHILD CARE LICENSING

13.3 	Section 1. [245.975] OMBUDSPERSON FOR FAMILY CHILD CARE PROVIDERS.
13.4 		Subdivision 1.Appointment. The governor shall appoint an ombudsperson in the 
13.5 	classified service to assist family child care providers with licensing, compliance, and other 
13.6 	issues facing family child care providers. The ombudsperson must be selected without regard 
13.7 	to the person's political affiliation.
13.8 		Subd. 2.Duties. (a) The ombudsperson's duties shall include:
13.9 	(1) advocating on behalf of a family child care provider to address all areas of concern 
13.10 	related to the provision of child care services, including licensing monitoring activities, 
13.11 	licensing actions, and other interactions with state and county licensing staff;
13.12 	(2) providing recommendations for family child care improvement or family child care 
13.13 	provider education;
13.14 	(3) operating a telephone line to answer questions, receive complaints, and discuss 
13.15 	agency actions when a family child care provider believes their rights or program may have 
13.16 	been adversely affected; and
13.17 	(4) assisting family child care license applicants with navigating the application process.
13.18 	(b) The ombudsperson must report annually by December 31 to the commissioner and 
13.19 	the chairs and ranking minority members of the legislative committees with jurisdiction 
13.20 	over child care on the services provided by the ombudsperson to child care providers, 
13.21 	including the number and locations of child care providers served, and the activities of the 
13.22 	ombudsperson to carry out the duties under this section. The commissioner shall determine 
13.23 	the form of the report and may specify additional reporting requirements.
13.24 		Subd. 3.Staff. The ombudsperson may appoint and compensate out of available funds 
13.25 	a deputy, confidential secretary, and other employees in the unclassified service as authorized 
13.26 	by law. The ombudsperson and the full-time staff are members of the Minnesota State 
13.27 	Retirement Association. The ombudsperson may delegate to members of the staff any 
13.28 	authority or duties of the office except the duty to provide reports to the governor, 
13.29 	commissioner, or the legislature.
13.30 		Subd. 4.Access to records. (a) The ombudsperson or designee, excluding volunteers, 
13.31 	has access to data of a state agency necessary for the discharge of the ombudsperson's duties, 
13.32 	including records classified as confidential data on individuals or private data on individuals 
13.33 	under chapter 13 or any other law. The ombudsperson's data request must relate to a specific 
14.1 	case and is subject to section 13.03, subdivision 4. If the data concerns an individual, the 
14.2 	ombudsperson or designee shall first obtain the individual's consent. If the individual cannot 
14.3 	consent and has no parent or legal guardian, then access to the data is authorized by this 
14.4 	section.
14.5 	(b) The ombudsperson and designees must adhere to the Minnesota Government Data 
14.6 	Practices Act and may not disseminate any private or confidential data on individuals unless 
14.7 	specifically authorized by state, local, or federal law or pursuant to a court order.
14.8 	(c) The commissioner and county agency must provide the ombudsperson copies of all 
14.9 	fix-it tickets, correction orders, and licensing actions issued to family child care providers.
14.10 		Subd. 5.Independence of action. In carrying out the duties under this section, the 
14.11 	ombudsperson may act independently of the department to provide testimony to the 
14.12 	legislature, make periodic reports to the legislature, and address areas of concern to child 
14.13 	care providers.
14.14 		Subd. 6.Civil actions. The ombudsperson or designee is not civilly liable for any action 
14.15 	taken under this section if the action was taken in good faith, was within the scope of the 
14.16 	ombudsperson's authority, and did not constitute willful or reckless misconduct.
14.17 		Subd. 7.Qualifications. The ombudsperson must be a person who has knowledge and 
14.18 	experience concerning the provision of family child care. The ombudsperson must be 
14.19 	experienced in dealing with governmental entities, interpretation of laws and regulations, 
14.20 	investigations, record keeping, report writing, public speaking, and management. A person 
14.21 	is not eligible to serve as the ombudsperson while holding public office or while holding a 
14.22 	family child care license.
14.23 		Subd. 8.Office support. The commissioner shall provide the ombudsperson with the 
14.24 	necessary office space, supplies, equipment, and clerical support to effectively perform the 
14.25 	duties under this section.
14.26 		Subd. 9.Posting. (a) The commissioner shall post on the department's website the 
14.27 	mailing address, e-mail address, and telephone number for the office of the ombudsperson. 
14.28 	The commissioner shall provide family child care providers with the mailing address, e-mail 
14.29 	address, and telephone number of the office on the family child care licensing website and 
14.30 	upon request from a family child care applicant or provider. Counties must provide family 
14.31 	child care applicants and providers with the name, mailing address, e-mail address, and 
14.32 	telephone number of the office upon request.
15.1 	(b) The ombudsperson must approve all posting and notice required by the department 
15.2 	and counties under this subdivision.

15.3 	Sec. 2. Minnesota Statutes 2020, section 245A.14, subdivision 4, is amended to read:
15.4 		Subd. 4.Special family daychild care homes. Nonresidential child care programs 
15.5 	serving 14 or fewer children that are conducted at a location other than the license holder's 
15.6 	own residence shall be licensed under this section and the rules governing family daychild
15.7 	care or group family daychild care if:
15.8 	(a) the license holder is the primary provider of care and the nonresidential child care 
15.9 	program is conducted in a dwelling that is located on a residential lot;
15.10 	(b) the license holder is an employer who may or may not be the primary provider of 
15.11 	care, and the purpose for the child care program is to provide child care services to children 
15.12 	of the license holder's employees;
15.13 	(c) the license holder is a church or religious organization;
15.14 	(d) the license holder is a community collaborative child care provider. For purposes of 
15.15 	this subdivision, a community collaborative child care provider is a provider participating 
15.16 	in a cooperative agreement with a community action agency as defined in section 256E.31;
15.17 	(e) the license holder is a not-for-profit agency that provides child care in a dwelling 
15.18 	located on a residential lot and the license holder maintains two or more contracts with 
15.19 	community employers or other community organizations to provide child care services. 
15.20 	The county licensing agency may grant a capacity variance to a license holder licensed 
15.21 	under this paragraph to exceed the licensed capacity of 14 children by no more than five 
15.22 	children during transition periods related to the work schedules of parents, if the license 
15.23 	holder meets the following requirements:
15.24 	(1) the program does not exceed a capacity of 14 children more than a cumulative total 
15.25 	of four hours per day;
15.26 	(2) the program meets a one to seven staff-to-child ratio during the variance period;
15.27 	(3) all employees receive at least an extra four hours of training per year than required 
15.28 	in the rules governing family child care each year;
15.29 	(4) the facility has square footage required per child under Minnesota Rules, part 
15.30 	9502.0425;
15.31 	(5) the program is in compliance with local zoning regulations;
16.1 	(6) the program is in compliance with the applicable fire code as follows:
16.2 	(i) if the program serves more than five children older than 2-1/2 years of age, but no 
16.3 	more than five children 2-1/2 years of age or less, the applicable fire code is educational 
16.4 	occupancy, as provided in Group E Occupancy under the Minnesota State Fire Code 2015, 
16.5 	Section 202; or
16.6 	(ii) if the program serves more than five children 2-1/2 years of age or less, the applicable 
16.7 	fire code is Group I-4 Occupancies, as provided in the Minnesota State Fire Code 2015, 
16.8 	Section 202, unless the rooms in which the children are cared for are located on a level of 
16.9 	exit discharge and each of these child care rooms has an exit door directly to the exterior, 
16.10 	then the applicable fire code is Group E occupancies, as provided in the Minnesota State 
16.11 	Fire Code 2015, Section 202; and
16.12 	(7) any age and capacity limitations required by the fire code inspection and square 
16.13 	footage determinations shall be printed on the license; or
16.14 	(f) the license holder is the primary provider of care and has located the licensed child 
16.15 	care program in a commercial space, if the license holder meets the following requirements:
16.16 	(1) the program is in compliance with local zoning regulations;
16.17 	(2) the program is in compliance with the applicable fire code as follows:
16.18 	(i) if the program serves more than five children older than 2-1/2 years of age, but no 
16.19 	more than five children 2-1/2 years of age or less, the applicable fire code is educational 
16.20 	occupancy, as provided in Group E Occupancy under the Minnesota State Fire Code 2015, 
16.21 	Section 202; or
16.22 	(ii) if the program serves more than five children 2-1/2 years of age or less, the applicable 
16.23 	fire code is Group I-4 Occupancies, as provided under the Minnesota State Fire Code 2015, 
16.24 	Section 202;
16.25 	(3) any age and capacity limitations required by the fire code inspection and square 
16.26 	footage determinations are printed on the license; and
16.27 	(4) the license holder prominently displays the license issued by the commissioner which 
16.28 	contains the statement "This special family child care provider is not licensed as a child 
16.29 	care center."
16.30 	(g) The commissioner may approve two or more licenses under paragraphs (a) to (f) to 
16.31 	be issued at the same location or under one contiguous roof, if each license holder is able 
16.32 	to demonstrate compliance with all applicable rules and laws. Each license holder must 
17.1 	operate the license holder's respective licensed program as a distinct program and within 
17.2 	the capacity, age, and ratio distributions of each license. Notwithstanding Minnesota Rules, 
17.3 	part 9502.0335, subpart 12, the commissioner may issue up to four licenses to an organization 
17.4 	licensed under paragraphs (b), (c), or (e). Each license must have its own primary provider 
17.5 	of care as required under paragraph (i). Each license must operate as a distinct and separate 
17.6 	program in compliance with all applicable laws and regulations.
17.7 	(h) The commissioner may grant variances to this section to allow a primary provider 
17.8 	of care, a not-for-profit organization, a church or religious organization, an employer, or a 
17.9 	community collaborative to be licensed to provide child care under paragraphs (e) and (f) 
17.10 	if the license holder meets the other requirements of the statute. For licenses issued under 
17.11 	paragraphs (b), (c), (d), (e), or (f), the commissioner may approve up to four licenses at the 
17.12 	same location or under one contiguous roof if each license holder is able to demonstrate 
17.13 	compliance with all applicable rules and laws. Each licensed program must operate as a 
17.14 	distinct program and within the capacity, age, and ratio distributions of each license.
17.15 	(i) For a license issued under paragraphs (b), (c), or (e), the license holder must designate 
17.16 	a person to be the primary provider of care at the licensed location on a form and in a manner 
17.17 	prescribed by the commissioner. The license holder shall notify the commissioner in writing 
17.18 	before there is a change of the person designated to be the primary provider of care. The 
17.19 	primary provider of care:
17.20 	(1) must be the person who will be the provider of care at the program and present during 
17.21 	the hours of operation;
17.22 	(2) must operate the program in compliance with applicable laws and regulations under 
17.23 	chapter 245A and Minnesota Rules, chapter 9502;
17.24 	(3) is considered a child care background study subject as defined in section 245C.02, 
17.25 	subdivision 6a, and must comply with background study requirements in chapter 245C; and
17.26 	(4) must complete the training that is required of license holders in section 245A.50.
17.27 	(j) For any license issued under this subdivision, the license holder must ensure that any 
17.28 	other caregiver, substitute, or helper who assists in the care of children meets the training 
17.29 	requirements in section 245A.50 and background study requirements under chapter 245C.

17.30 	Sec. 3. Minnesota Statutes 2020, section 245A.50, subdivision 7, is amended to read:
17.31 		Subd. 7.Training requirements for family and group family child care. (a) For 
17.32 	purposes of family and group family child care, the license holder and each second adult 
17.33 	caregiver must complete 16 hours of ongoing training each year. Repeat of topical training 
18.1 	requirements in subdivisions 2 to 8 shall count toward the annual 16-hour training 
18.2 	requirement. Additional ongoing training subjects to meet the annual 16-hour training 
18.3 	requirement must be selected from the following areas:
18.4 	(1) child development and learning training in understanding how a child develops 
18.5 	physically, cognitively, emotionally, and socially, and how a child learns as part of the 
18.6 	child's family, culture, and community;
18.7 	(2) developmentally appropriate learning experiences, including training in creating 
18.8 	positive learning experiences, promoting cognitive development, promoting social and 
18.9 	emotional development, promoting physical development, promoting creative development; 
18.10 	and behavior guidance;
18.11 	(3) relationships with families, including training in building a positive, respectful 
18.12 	relationship with the child's family;
18.13 	(4) assessment, evaluation, and individualization, including training in observing, 
18.14 	recording, and assessing development; assessing and using information to plan; and assessing 
18.15 	and using information to enhance and maintain program quality;
18.16 	(5) historical and contemporary development of early childhood education, including 
18.17 	training in past and current practices in early childhood education and how current events 
18.18 	and issues affect children, families, and programs;
18.19 	(6) professionalism, including training in knowledge, skills, and abilities that promote 
18.20 	ongoing professional development; and
18.21 	(7) health, safety, and nutrition, including training in establishing healthy practices; 
18.22 	ensuring safety; and providing healthy nutrition.
18.23 	(b) A provider who is approved as a trainer through the Develop data system may count 
18.24 	up to two hours of training instruction toward the annual 16-hour training requirement in 
18.25 	paragraph (a). The provider may only count training instruction hours for the first instance 
18.26 	in which they deliver a particular content-specific training during each licensing year. Hours 
18.27 	counted as training instruction must be approved through the Develop data system with 
18.28 	attendance verified on the trainer's individual learning record and must be in Knowledge 
18.29 	and Competency Framework content area VII A (Establishing Healthy Practices) or B 
18.30 	(Ensuring Safety).

19.1 	Sec. 4. Minnesota Statutes 2020, section 245A.50, subdivision 9, is amended to read:
19.2 		Subd. 9.Supervising for safety; training requirement. (a) Courses required by this 
19.3 	subdivision must include the following health and safety topics:
19.4 	(1) preventing and controlling infectious diseases;
19.5 	(2) administering medication;
19.6 	(3) preventing and responding to allergies;
19.7 	(4) ensuring building and physical premises safety;
19.8 	(5) handling and storing biological contaminants;
19.9 	(6) preventing and reporting child abuse and maltreatment; and
19.10 	(7) emergency preparedness.
19.11 	(b) Before initial licensure and before caring for a child, all family child care license 
19.12 	holders and each second adult caregiver shall complete and document the completion of 
19.13 	the six-hour Supervising for Safety for Family Child Care course developed by the 
19.14 	commissioner.
19.15 	(c) The license holder must ensure and document that, before caring for a child, all 
19.16 	substitutes have completed the four-hour Basics of Licensed Family Child Care for 
19.17 	Substitutes course developed by the commissioner, which must include health and safety 
19.18 	topics as well as child development and learning.
19.19 	(d) The family child care license holder and each second adult caregiver shall complete 
19.20 	and document:
19.21 	(1) the annual completion of either:
19.22 	(i) a two-hour active supervision course developed by the commissioner; or
19.23 	(ii) any courses in the ensuring safety competency area under the health, safety, and 
19.24 	nutrition standard of the Knowledge and Competency Framework that the commissioner 
19.25 	has identified as an active supervision training course; and
19.26 	(2) the completion at least once every five years of the two-hour courses Health and 
19.27 	Safety I and Health and Safety II. When the training is due for the first time or expires, it 
19.28 	must be taken no later than the day before the anniversary of the license holder's license 
19.29 	effective date. A license holder's or second adult caregiver's completion of either training 
19.30 	in a given year meets the annual active supervision training requirement in clause (1).
20.1 	(e) At least once every three years, license holders must ensure and document that 
20.2 	substitutes have completed the four-hour Basics of Licensed Family Child Care for 
20.3 	Substitutes course. When the training expires, it must be retaken no later than the day before 
20.4 	the anniversary of the license holder's license effective date.

20.5 	Sec. 5. CHILD CARE CENTER REGULATION MODERNIZATION.
 20.6 	(a) The commissioner of human services shall contract with an experienced and 
20.7 	independent organization or individual consultant to conduct the work outlined in this 
20.8 	section. If practicable, the commissioner must contract with the National Association for 
20.9 	Regulatory Administration.
20.10 	(b) The consultant must develop a proposal for revised licensing standards that includes 
20.11 	a risk-based model for monitoring compliance with child care center licensing standards, 
20.12 	grounded in national regulatory best practices. Violations in the new model must be weighted 
20.13 	to reflect the potential risk that the violations pose to children's health and safety, and 
20.14 	licensing sanctions must be tied to the potential risk. The proposed new model must protect 
20.15 	the health and safety of children in child care centers and be child-centered, family-friendly, 
20.16 	and fair to providers.
20.17 	(c) The consultant shall develop and implement a stakeholder engagement process that 
20.18 	solicits input from parents, licensed child care centers, staff of the Department of Human 
20.19 	Services, and experts in child development about appropriate licensing standards, appropriate 
20.20 	tiers for violations of the standards based on the potential risk of harm that each violation 
20.21 	poses, and appropriate licensing sanctions for each tier.
20.22 	(d) The consultant shall solicit input from parents, licensed child care centers, and staff 
20.23 	of the Department of Human Services about which child care centers should be eligible for 
20.24 	abbreviated inspections that predict compliance with other licensing standards for licensed 
20.25 	child care centers using key indicators previously identified by an empirically based statistical 
20.26 	methodology developed by the National Association for Regulatory Administration and the 
20.27 	Research Institute for Key Indicators.
20.28 	(e) No later than February 1, 2024, the commissioner shall submit a report and proposed 
20.29 	legislation required to implement the new licensing model to the chairs and ranking minority 
20.30 	members of the legislative committees with jurisdiction over child care regulation.

21.1 	Sec. 6. FAMILY CHILD CARE REGULATION MODERNIZATION.
 21.2 	(a) The commissioner of human services shall contract with an experienced and 
21.3 	independent organization or individual consultant to conduct the work outlined in this 
21.4 	section. If practicable, the commissioner must contract with the National Association for 
21.5 	Regulatory Administration.
21.6 	(b) The consultant must develop a proposal for updated family child care licensing 
21.7 	standards and solicit input from stakeholders as described in paragraph (d).
21.8 	(c) The consultant must develop a proposal for a risk-based model for monitoring 
21.9 	compliance with family child care licensing standards, grounded in national regulatory best 
21.10 	practices. Violations in the new model must be weighted to reflect the potential risk they 
21.11 	pose to children's health and safety, and licensing sanctions must be tied to the potential 
21.12 	risk. The proposed new model must protect the health and safety of children in family child 
21.13 	care programs and be child-centered, family-friendly, and fair to providers.
21.14 	(d) The consultant shall develop and implement a stakeholder engagement process that 
21.15 	solicits input from parents, licensed family child care providers, county licensors, staff of 
21.16 	the Department of Human Services, and experts in child development about licensing 
21.17 	standards, tiers for violations of the standards based on the potential risk of harm that each 
21.18 	violation poses, and licensing sanctions for each tier.
21.19 	(e) The consultant shall solicit input from parents, licensed family child care providers, 
21.20 	county licensors, and staff of the Department of Human Services about which family child 
21.21 	care providers should be eligible for abbreviated inspections that predict compliance with 
21.22 	other licensing standards for licensed family child care providers using key indicators 
21.23 	previously identified by an empirically based statistical methodology developed by the 
21.24 	National Association for Regulatory Administration and the Research Institute for Key 
21.25 	Indicators.
21.26 	(f) No later than February 1, 2024, the commissioner shall submit a report and proposed 
21.27 	legislation required to implement the new licensing model and the new licensing standards 
21.28 	to the chairs and ranking minority members of the legislative committees with jurisdiction 
21.29 	over child care regulation.

21.30 	Sec. 7. DIRECTION TO COMMISSIONER OF HUMAN SERVICES; FAMILY 
21.31 	CHILD CARE ONE-STOP ASSISTANCE NETWORK.
 21.32 	By January 1, 2022, the commissioner of human services shall, in consultation with 
21.33 	county agencies, providers, and other relevant stakeholders, develop a proposal to create, 
22.1 	advertise, and implement a one-stop regional assistance network comprised of individuals 
22.2 	who have experience starting a licensed family or group family child care program or 
22.3 	technical expertise regarding the applicable licensing statutes and procedures, in order to 
22.4 	assist individuals with matters relating to starting or sustaining a licensed family or group 
22.5 	family child care program. The proposal shall include an estimated timeline for 
22.6 	implementation of the assistance network, an estimated budget of the cost of the assistance 
22.7 	network, and any necessary legislative proposals to implement the assistance network. The 
22.8 	proposal shall also include a plan to raise awareness and distribute contact information for 
22.9 	the assistance network to all licensed family or group family child care providers.

22.10 	Sec. 8. DIRECTION TO THE COMMISSIONER OF HUMAN SERVICES; 
22.11 	RECOMMENDED FAMILY CHILD CARE ORIENTATION TRAINING.
 22.12 	(a) By July 1, 2022, the commissioner of human services shall develop, in consultation 
22.13 	with licensed family child care providers and representatives from counties, recommended 
22.14 	orientation training for family child care license applicants to ensure that all family child 
22.15 	care license applicants have access to information about Minnesota Statutes, chapters 245A 
22.16 	and 245C, and Minnesota Rules, chapter 9502.
22.17 	(b) The orientation training is voluntary and completion of the orientation is not required 
22.18 	to receive or maintain a family child care license.

22.19 	Sec. 9. FAMILY CHILD CARE TRAINING ADVISORY COMMITTEE.
 22.20 		Subdivision 1.Formation; duties. (a) The Family Child Care Training Advisory 
22.21 	Committee shall advise the commissioner of human services on the training requirements 
22.22 	for licensed family and group family child care providers. Beginning January 1, 2022, the 
22.23 	advisory committee shall meet at least twice per year. The advisory committee shall annually 
22.24 	elect a chair from among its members who shall establish the agenda for each meeting. The 
22.25 	commissioner or commissioner's designee shall attend all advisory committee meetings.
22.26 	(b) The Family Child Care Training Advisory Committee shall advise and make 
22.27 	recommendations to the commissioner of human services and the contractors working on 
22.28 	the family child care licensing modernization project on:
22.29 	(1) updates to the rules and statutes governing family child care training, including 
22.30 	technical updates to facilitate providers' understanding of training requirements;
22.31 	(2) difficulties facing family child care providers in completing training requirements, 
22.32 	including proposed solutions to provider difficulties; and
23.1 	(3) other ideas for improving access to and quality of training for family child care 
23.2 	providers.
23.3 	(c) The Family Child Care Training Advisory Committee shall expire December 1, 2025.
23.4 		Subd. 2.Advisory committee members. (a) The Family Child Care Training Advisory 
23.5 	Committee consists of:
23.6 	(1) four members representing family child care providers from greater Minnesota, 
23.7 	including two appointed by the speaker of the house and two appointed by the senate majority 
23.8 	leader;
23.9 	(2) two members representing family child care providers from the seven-county 
23.10 	metropolitan area as defined in Minnesota Statutes, section 473.121, subdivision 2, including 
23.11 	one appointed by the speaker of the house and one appointed by the senate majority leader;
23.12 	(3) one member appointed by the Minnesota Association of Child Care Professionals;
23.13 	(4) one member appointed by the Minnesota Child Care Provider Information Network;
23.14 	(5) two members appointed by the Association of Minnesota Child Care Licensors, 
23.15 	including one from greater Minnesota and one from the seven-county metropolitan area, as 
23.16 	defined in Minnesota Statutes, section 473.121, subdivision 2; and
23.17 	(6) five members with experience in child development, instructional design, and training 
23.18 	delivery, with:
23.19 	(i) one member appointed by Child Care Aware of Minnesota;
23.20 	(ii) one member appointed by the Minnesota Initiative Foundations;
23.21 	(iii) one member appointed by the Center for Inclusive Child Care;
23.22 	(iv) one member appointed by the Greater Minnesota Partnership; and
23.23 	(v) one member appointed by Achieve, the Minnesota Center for Professional 
23.24 	Development.
23.25 	(b) Advisory committee members shall not be employed by the Department of Human 
23.26 	Services. Advisory committee members shall receive no compensation for their participation 
23.27 	in the advisory committee.
23.28 	(c) Advisory committee members must include representatives of diverse cultural 
23.29 	communities.
23.30 	(d) Advisory committee members shall serve two-year terms. Initial appointments to 
23.31 	the advisory committee must be made by December 1, 2021. Subsequent appointments to 
24.1 	the advisory committee must be made by December 1 of the year in which the member's 
24.2 	term expires.
24.3 		Subd. 3.Commissioner report. The commissioner of human services shall report 
24.4 	annually by November 1 to the chairs and ranking minority members of the legislative 
24.5 	committees with jurisdiction over early care and education programs on any recommendations 
24.6 	from the Family Child Care Training Advisory Committee.

24.7 	ARTICLE 3
24.8 	MISCELLANEOUS HEALTH AND HUMAN SERVICES POLICIES

24.9 	Section 1. [119B.195] RETAINING EARLY EDUCATORS THROUGH ATTAINING 
24.10 	INCENTIVES NOW (REETAIN) GRANT PROGRAM.
24.11 		Subdivision 1.Establishment; purpose. The retaining early educators through attaining 
24.12 	incentives now (REETAIN) grant program is established to provide competitive grants to 
24.13 	incentivize well-trained child care professionals to remain in the workforce. The overall 
24.14 	goal of the REETAIN grant program is to create more consistent care for children over time.
24.15 		Subd. 2.Administration. The commissioner shall administer the REETAIN grant 
24.16 	program through a grant to a nonprofit with the demonstrated ability to manage benefit 
24.17 	programs for child care professionals. Up to ten percent of grant money may be used for 
24.18 	administration of the grant program.
24.19 		Subd. 3.Application. Applicants must apply for the REETAIN grant program using 
24.20 	the forms and according to timelines established by the commissioner.
24.21 		Subd. 4.Eligibility. (a) To be eligible for a grant, an applicant must:
24.22 	(1) be licensed to provide child care or work for a licensed child care program;
24.23 	(2) work directly with children at least 30 hours per week;
24.24 	(3) have worked in the applicant's current position for at least 12 months;
24.25 	(4) agree to work in the early childhood care and education field for at least 12 months 
24.26 	upon receiving a grant under this section;
24.27 	(5) have a career lattice step of five or higher;
24.28 	(6) have a current membership with the Minnesota quality improvement and registry 
24.29 	tool;
24.30 	(7) not be a current teacher education and compensation helps scholarship recipient; and
25.1 	(8) meet any other requirements determined by the commissioner.
25.2 	(b) Grant recipients must sign a contract agreeing to remain in the early childhood care 
25.3 	and education field for 12 months.
25.4 		Subd. 5.Grant awards. Grant awards must be made annually and may be made up to 
25.5 	an amount per recipient determined by the commissioner. Grant recipients may use grant 
25.6 	money for program supplies, training, or personal expenses.
25.7 		Subd. 6.Report. By January 1 each year, the commissioner must report to the legislative 
25.8 	committees with jurisdiction over child care about the number of grants awarded to recipients 
25.9 	and outcomes of the grant program since the last report.

25.10 	Sec. 2. Minnesota Statutes 2020, section 136A.128, subdivision 2, is amended to read:
25.11 		Subd. 2.Program components. (a) The nonprofit organization must use the grant for:
25.12 	(1) tuition scholarships up to $5,000 $10,000 per year for courses leading to the nationally 
25.13 	recognized child development associate credential or college-level courses leading to an 
25.14 	associate's degree or bachelor's degree in early childhood development and school-age care; 
25.15 	and
25.16 	(2) education incentives of a minimum of $100 $250 to participants in the tuition 
25.17 	scholarship program if they complete a year of working in the early care and education 
25.18 	field.
25.19 	(b) Applicants for the scholarship must be employed by a licensed early childhood or 
25.20 	child care program and working directly with children, a licensed family child care provider,
25.21 	employed by a public prekindergarten program, or an employee in a school-age program 
25.22 	exempt from licensing under section 245A.03, subdivision 2, paragraph (a), clause (12). 
25.23 	Lower wage earners must be given priority in awarding the tuition scholarships. Scholarship 
25.24 	recipients must contribute at least ten percent of the total scholarship and must be sponsored 
25.25 	by their employers, who must also contribute ten at least five percent of the total scholarship. 
25.26 	Scholarship recipients who are self-employed must contribute 20 percent of the total 
25.27 	scholarship.

25.28 	Sec. 3. Minnesota Statutes 2020, section 136A.128, subdivision 4, is amended to read:
25.29 		Subd. 4.Administration. A nonprofit organization that receives a grant under this 
25.30 	section may use five ten percent of the grant amount to administer the program.

26.1 	Sec. 4. Minnesota Statutes 2020, section 144.225, subdivision 2, is amended to read:
26.2 		Subd. 2.Data about births. (a) Except as otherwise provided in this subdivision, data 
26.3 	pertaining to the birth of a child to a woman who was not married to the child's father when 
26.4 	the child was conceived nor when the child was born, including the original record of birth 
26.5 	and the certified vital record, are confidential data. At the time of the birth of a child to a 
26.6 	woman who was not married to the child's father when the child was conceived nor when 
26.7 	the child was born, the mother may designate demographic data pertaining to the birth as 
26.8 	public. Notwithstanding the designation of the data as confidential, it may be disclosed:
26.9 	(1) to a parent or guardian of the child;
26.10 	(2) to the child when the child is 16 years of age or older;
26.11 	(3) under paragraph (b), (e), or (f), or (g); or
26.12 	(4) pursuant to a court order. For purposes of this section, a subpoena does not constitute 
26.13 	a court order.
26.14 	(b) Unless the child is adopted, data pertaining to the birth of a child that are not accessible 
26.15 	to the public become public data if 100 years have elapsed since the birth of the child who 
26.16 	is the subject of the data, or as provided under section 13.10, whichever occurs first.
26.17 	(c) If a child is adopted, data pertaining to the child's birth are governed by the provisions 
26.18 	relating to adoption records, including sections 13.10, subdivision 5; 144.218, subdivision 
26.19 	1; 144.2252; and 259.89.
26.20 	(d) The name and address of a mother under paragraph (a) and the child's date of birth 
26.21 	may be disclosed to the county social services, Tribal health department, or public health 
26.22 	member of a family services collaborative for purposes of providing services under section 
26.23 	124D.23.
26.24 	(e) The commissioner of human services shall have access to birth records for:
26.25 	(1) the purposes of administering medical assistance and the MinnesotaCare program;
26.26 	(2) child support enforcement purposes; and
26.27 	(3) other public health purposes as determined by the commissioner of health.
26.28 	(f) Tribal child support programs shall have access to birth records for child support 
26.29 	enforcement purposes.
26.30 	(g) An entity administering a children's savings program that starts at birth shall have 
26.31 	access to birth records for the purpose of opening an account in the program for the child 
27.1 	as a beneficiary. For purposes of this paragraph, "children's savings program" means a 
27.2 	long-term savings or investment program that helps children and their families build savings 
27.3 	for the future.

27.4 	Sec. 5. REPORT ON PARTICIPATION IN EARLY CHILDHOOD PROGRAMS 
27.5 	BY CHILDREN IN FOSTER CARE.
 27.6 		Subdivision 1.Reporting requirement. (a) The commissioner of human services shall 
27.7 	report on the participation in early care and education programs by children under age six 
27.8 	who have experienced foster care, as defined in Minnesota Statutes, section 260C.007, 
27.9 	subdivision 18, at any time during the reporting period.
27.10 	(b) For purposes of this section, "early care and education program" means Early Head 
27.11 	Start and Head Start under the federal Improving Head Start for School Readiness Act of 
27.12 	2007; special education programs under Minnesota Statutes, chapter 125A; early learning 
27.13 	scholarships under Minnesota Statutes, section 124D.165; school readiness under Minnesota 
27.14 	Statutes, sections 124D.15 and 124D.16; school readiness plus under Laws 2017, First 
27.15 	Special Session chapter 5, article 8, section 9; voluntary prekindergarten under Minnesota 
27.16 	Statutes, section 124D.151; child care assistance under Minnesota Statutes, chapter 119B; 
27.17 	and other programs as determined by the commissioner.
27.18 		Subd. 2.Report content. (a) The report shall provide counts and rates of participation 
27.19 	by early care and education program and child's race, ethnicity, age, and county of residence. 
27.20 	The report shall use the most current administrative data and systems, including the Early 
27.21 	Childhood Longitudinal Data System, and include recommendations for collecting any 
27.22 	other administrative data listed in this paragraph that is not currently available.
27.23 	(b) The report shall include recommendations to:
27.24 	(1) provide the data described in paragraph (a) on an annual basis as part of the report 
27.25 	required under Minnesota Statutes, section 257.0725;
27.26 	(2) facilitate children's continued participation in early care and education programs 
27.27 	after reunification, adoption, or transfer of permanent legal and physical custody; and
27.28 	(3) regularly report measures of early childhood well-being for children who have 
27.29 	experienced foster care. "Measures of early childhood well-being" include administrative 
27.30 	data from developmental screenings, school readiness assessments, well-child medical visits, 
27.31 	and other sources as determined by the commissioner, in consultation with the commissioners 
27.32 	of health, education, and management and budget, county social service and public health 
27.33 	agencies, and school districts.
28.1 	(c) The report shall include an implementation plan to increase the rates of participation 
28.2 	among children and their foster families in early care and education programs, including 
28.3 	processes for referrals and follow-up. The plan shall be developed in collaboration with 
28.4 	affected communities and families, incorporating their experiences and feedback. 
28.5 	Representatives from county public health agencies; county social service agencies, including 
28.6 	child protection services; early childhood care and education providers; the judiciary; and 
28.7 	school districts must collaborate on the plan's development and implementation strategy.
28.8 	(d) The report shall identify barriers to be addressed to ensure that early care and 
28.9 	education programs are responsive to the cultural, logistical, and racial equity concerns and 
28.10 	needs of children's foster families and families of origin, and the report shall identify methods 
28.11 	to ensure the experiences and feedback from children's foster families and families of origin 
28.12 	are included in the ongoing implementation of early care and education programs.
28.13 		Subd. 3.Submission to legislature. By June 30, 2022, the commissioner shall submit 
28.14 	an interim progress report, including identification of potential administrative data sources 
28.15 	and barriers and a listing of plan development participants, and by December 1, 2022, the 
28.16 	commissioner shall submit the final report required under this section to the legislative 
28.17 	committees with jurisdiction over early care and education programs.

28.18 	Sec. 6. CHILDREN WITH DISABILITIES INCLUSIVE CHILD CARE ACCESS 
28.19 	EXPANSION GRANT PROGRAM.
 28.20 		Subdivision 1.Establishment. (a) The commissioner of human services shall establish 
28.21 	a competitive grant program to expand access to licensed family child care providers or 
28.22 	licensed child care centers for children with disabilities including medical complexities. 
28.23 	The commissioner shall award grants to counties or Tribes, including at least one county 
28.24 	from the seven-county metropolitan area and at least one county or Tribe outside the 
28.25 	seven-county metropolitan area, and grant funds shall be used to enable child care providers 
28.26 	to develop an inclusive child care setting and offer care to children with disabilities and 
28.27 	children without disabilities. Grants shall be awarded to at least two applicants beginning 
28.28 	no later than December 1, 2021.
28.29 	(b) For purposes of this section, "child with a disability" means a child who has a 
28.30 	substantial delay or has an identifiable physical, medical, emotional, or mental condition 
28.31 	that hinders development.
28.32 	(c) For purposes of this section, "inclusive child care setting" means child care provided 
28.33 	in a manner that serves children with disabilities in the same setting as children without 
28.34 	disabilities.
29.1 		Subd. 2.Commissioner's duties. To administer the grant program, the commissioner 
29.2 	shall:
29.3 	(1) consult with relevant stakeholders to develop a request for proposals that at least 
29.4 	requires grant applicants to identify the items or services, and estimated accompanying costs 
29.5 	where possible, needed to expand access to inclusive child care settings for children with 
29.6 	disabilities;
29.7 	(2) develop procedures for data collection, qualitative and quantitative measurement of 
29.8 	grant program outcomes, and reporting requirements for grant recipients;
29.9 	(3) convene a working group of grant recipients, partner child care providers, and 
29.10 	participating families to assess progress on grant activities, share best practices, and collect 
29.11 	and review data on grant activities; and
29.12 	(4) by February 1, 2023, provide a report to the chairs and ranking minority members 
29.13 	of the legislative committees with jurisdiction over early childhood programs on the activities 
29.14 	and outcomes of the grant program, with legislative recommendations for implementing 
29.15 	inclusive child care settings statewide. The report shall be made available to the public.
29.16 		Subd. 3.Grant activities. Grant recipients shall use grant funds for the cost of facility 
29.17 	modifications, resources, or services necessary to expand access to inclusive child care 
29.18 	settings for children with disabilities, including:
29.19 	(1) onetime needs to equip a child care setting to serve children with disabilities, including 
29.20 	but not limited to environmental modifications; accessibility modifications; sensory 
29.21 	adaptation; training materials and staff time for training, including for substitutes; or 
29.22 	equipment purchases, including durable medical equipment;
29.23 	(2) ongoing medical or disability-related services for children with disabilities in inclusive 
29.24 	child care settings, including but not limited to mental health supports; inclusion specialist 
29.25 	services; home care nursing; behavioral supports; coaching or training for staff and 
29.26 	substitutes; substitute teaching time; or additional child care staff, an enhanced rate, or 
29.27 	another mechanism to increase staff-to-child ratio; and
29.28 	(3) other expenses determined by the grant recipient and each partner child care provider 
29.29 	to be necessary to establish an inclusive child care setting and serve children with disabilities 
29.30 	at the provider's location.
29.31 		Subd. 4.Requirements for grant recipients. Upon receipt of grant funds and throughout 
29.32 	the grant period, grant recipients shall:
30.1 	(1) partner with at least two but no more than five child care providers, each of which 
30.2 	must meet one of the following criteria:
30.3 	(i) serve 29 or fewer children, including at least two children with a disability who are 
30.4 	not a family member of the child care provider if the participating child care provider is a 
30.5 	family child care provider; or
30.6 	(ii) serve more than 30 children, including at least three children with a disability;
30.7 	(2) develop and follow a process to ensure that grant funding is used to support children 
30.8 	with disabilities who, without the additional supports made available through the grant, 
30.9 	would have difficulty accessing an inclusive child care setting;
30.10 	(3) pursue funding for ongoing services needed for children with disabilities in inclusive 
30.11 	child care settings, such as Medicaid or private health insurance coverage; additional grant 
30.12 	funding; or other funding sources;
30.13 	(4) explore and seek opportunities to use existing federal funds to provide ongoing 
30.14 	support to family child care providers or child care centers serving children with disabilities. 
30.15 	Grant recipients shall seek to minimize family financial obligations for child care for a child 
30.16 	with disabilities beyond what child care would cost for a child without disabilities; and
30.17 	(5) identify and utilize training resources for child care providers, where available and 
30.18 	applicable, for at least one of the grant recipient's partner child care providers.
30.19 		Subd. 5.Reporting. Grant recipients shall report to the commissioner every six months, 
30.20 	in a manner specified by the commissioner, on the following:
30.21 	(1) the number, type, and cost of additional supports needed to serve children with 
30.22 	disabilities in inclusive child care settings;
30.23 	(2) best practices for billing;
30.24 	(3) availability and use of funding sources other than through the grant program;
30.25 	(4) processes for identifying families of children with disabilities who could benefit 
30.26 	from grant activities and connecting them with a child care provider interested in serving 
30.27 	them;
30.28 	(5) processes and eligibility criteria used to determine whether a child is a child with a 
30.29 	disability and means of prioritizing grant funding to serve children with significant support 
30.30 	needs associated with their disability; and
30.31 	(6) any other information deemed relevant by the commissioner.

31.1 	Sec. 7. DIRECTION TO COMMISSIONER OF HUMAN SERVICES; FAMILY 
31.2 	CHILD CARE SHARED SERVICES INNOVATION GRANTS.
 31.3 	The commissioner of human services shall establish a grant program to test strategies 
31.4 	by which family child care providers may share services and thereby achieve economies of 
31.5 	scale. The commissioner shall report the results of the grant program to the legislative 
31.6 	committees with jurisdiction over early care and education programs.

31.7 	Sec. 8. REVISOR INSTRUCTION.
 31.8 	The revisor of statutes shall renumber Minnesota Statutes, section 136A.128, in Minnesota 
31.9 	Statutes, chapter 119B. The revisor shall also make necessary cross-reference changes 
31.10 	consistent with the renumbering.

31.11 	ARTICLE 4
31.12 	EARLY EDUCATION

31.13 	Section 1. Minnesota Statutes 2020, section 119A.52, is amended to read:
31.14 	119A.52 DISTRIBUTION OF APPROPRIATION.
31.15 	(a) The commissioner of education must distribute money appropriated for that purpose 
31.16 	to federally designated Head Start programs to expand services and to serve additional 
31.17 	low-income children. Migrant and Indian reservation programs must be initially allocated 
31.18 	money based on the programs' share of federal funds. in the following order: (1) 10.72 
31.19 	percent of the total Head Start appropriation shall be allocated to federally designated Tribal 
31.20 	Head Start programs; (2) the Tribal Head Start portion of the appropriation shall be allocated 
31.21 	to Tribal Head Start programs based on the programs' share of federal funds; and (3) migrant 
31.22 	programs must then be initially allocated funding based on the programs' share of federal 
31.23 	funds. The remaining money must be initially allocated to the remaining local agencies 
31.24 	based equally on the agencies' share of federal funds and on the proportion of eligible 
31.25 	children in the agencies' service area who are not currently being served. A Head Start 
31.26 	program must be funded at a per child rate equal to its contracted, federally funded base 
31.27 	level at the start of the fiscal year. For all agencies without a federal Early Head Start rate, 
31.28 	the state average federal cost per child for Early Head Start applies. In allocating funds 
31.29 	under this paragraph, the commissioner of education must assure that each Head Start 
31.30 	program in existence in 1993 is allocated no less funding in any fiscal year than was allocated 
31.31 	to that program in fiscal year 1993. Before paying money to the programs, the commissioner 
31.32 	must notify each program of its initial allocation and how the money must be used. Each 
31.33 	program must present a plan under section 119A.535. For any program that cannot utilize 
32.1 	its full allocation at the beginning of the fiscal year, the commissioner must reduce the 
32.2 	allocation proportionately. Money available after the initial allocations are reduced must 
32.3 	be redistributed to eligible programs.
32.4 	(b) The commissioner must develop procedures to make payments to programs based 
32.5 	upon the number of children reported to be enrolled during the required time period of 
32.6 	program operations. Enrollment is defined by federal Head Start regulations. The procedures 
32.7 	must include a reporting schedule, corrective action plan requirements, and financial 
32.8 	consequences to be imposed on programs that do not meet full enrollment after the period 
32.9 	of corrective action. Programs reporting chronic underenrollment, as defined by the 
32.10 	commissioner, will have their subsequent program year allocation reduced proportionately. 
32.11 	Funds made available by prorating payments and allocations to programs with reported 
32.12 	underenrollment will be made available to the extent funds exist to fully enrolled Head Start 
32.13 	programs through a form and manner prescribed by the department.
32.14 	(c) Programs with approved innovative initiatives that target services to high-risk 
32.15 	populations, including homeless families and families living in homeless shelters and 
32.16 	transitional housing, are exempt from the procedures in paragraph (b). This exemption does 
32.17 	not apply to entire programs. The exemption applies only to approved innovative initiatives 
32.18 	that target services to high-risk populations, including homeless families and families living 
32.19 	in homeless shelters, transitional housing, and permanent supportive housing.

32.20 	Sec. 2. [122A.261] PREKINDERGARTEN, SCHOOL READINESS, PRESCHOOL, 
32.21 	AND EARLY EDUCATION PROGRAMS; LICENSURE REQUIREMENT.
32.22 		Subdivision 1.Licensure requirement. A school district or charter school must employ 
32.23 	a qualified teacher, as defined in section 122A.16, to provide instruction in a preschool, 
32.24 	school readiness, school readiness plus, prekindergarten, or other school district or charter 
32.25 	school-based early education program.
32.26 		Subd. 2.Exemptions. A person employed by a school district or charter school as a 
32.27 	teacher in an early education program during the 2020-2021 school year who does not have 
32.28 	a Minnesota teaching license is exempt from the licensure requirement until July 1, 2026, 
32.29 	or until such time as the teacher is able to obtain a Minnesota teaching license, whichever 
32.30 	occurs first. Notwithstanding this exemption from the licensure requirement, these individuals 
32.31 	are teachers under section 179A.03, subdivision 18.

33.1 	Sec. 3. Minnesota Statutes 2020, section 124D.13, subdivision 2, is amended to read:
33.2 		Subd. 2.Program requirements. (a) Early childhood family education programs are 
33.3 	programs for children in the period of life from birth to kindergarten, for the parents and 
33.4 	other relatives of these children, and for expectant parents, and for alloparents. To the extent 
33.5 	that funds are insufficient to provide programs for all children, early childhood family 
33.6 	education programs should emphasize programming for a child from birth to age three and 
33.7 	encourage parents and other relatives to involve four- and five-year-old children in school 
33.8 	readiness programs, and other public and nonpublic early learning programs. A district may 
33.9 	not limit participation to school district residents. Early childhood family education programs 
33.10 	must provide:
33.11 	(1) programs to educate parents and other relatives about the physical, cognitive, social, 
33.12 	and emotional development of children and to enhance the skills of parents and other relatives 
33.13 	in providing for their children's learning and development;
33.14 	(2) structured learning activities requiring interaction between children and their parents 
33.15 	or relatives;
33.16 	(3) structured learning activities for children that promote children's development and 
33.17 	positive interaction with peers, which are held while parents or relatives attend parent 
33.18 	education classes;
33.19 	(4) information on related community resources;
33.20 	(5) information, materials, and activities that support the safety of children, including 
33.21 	prevention of child abuse and neglect;
33.22 	(6) a community needs assessment that identifies new and underserved populations, 
33.23 	identifies child and family risk factors, particularly those that impact children's learning and 
33.24 	development, and assesses family and parenting education needs in the community;
33.25 	(7) programming and services that are tailored to the needs of families and parents 
33.26 	prioritized in the community needs assessment; and
33.27 	(8) information about and, if needed, assist in making arrangements for an early childhood 
33.28 	health and developmental screening under sections 121A.16 and 121A.17, when the child 
33.29 	nears the third birthday.
33.30 	Early childhood family education programs should prioritize programming and services 
33.31 	for families and parents identified in the community needs assessment, particularly those 
33.32 	families and parents with children with the most risk factors birth to age three.
34.1 	Early childhood family education programs are encouraged to provide parents of English 
34.2 	learners with translated oral and written information to monitor the program's impact on 
34.3 	their children's English language development, to know whether their children are progressing 
34.4 	in developing their English and native language proficiency, and to actively engage with 
34.5 	and support their children in developing their English and native language proficiency.
34.6 	The programs must include learning experiences for children, parents, and other relatives 
34.7 	that promote children's early literacy and, where practicable, their native language skills 
34.8 	and activities for children that require substantial involvement of the children's parents or 
34.9 	other relatives. The program may provide parenting education programming or services to 
34.10 	anyone identified in the community needs assessment. Providers must review the program 
34.11 	periodically to assure the instruction and materials are not racially, culturally, or sexually 
34.12 	biased. The programs must encourage parents to be aware of practices that may affect 
34.13 	equitable development of children.
34.14 	(b) For the purposes of this section, "relative" or "relatives" means noncustodial 
34.15 	grandparents or other persons related to a child by blood, marriage, adoption, or foster 
34.16 	placement, excluding parents.

34.17 	Sec. 4. Minnesota Statutes 2020, section 124D.142, is amended to read:
34.18 	124D.142 QUALITY RATING AND IMPROVEMENT SYSTEM.
34.19 		Subdivision 1.System established. (a) There is established a quality rating and 
34.20 	improvement system (QRIS) framework, known as Parent Aware, to ensure that Minnesota's 
34.21 	children have access to high-quality early learning and care programs in a range of settings 
34.22 	so that they are fully ready for kindergarten by 2020. Creation of a standards-based voluntary 
34.23 	quality rating and improvement system includes:
34.24 		Subd. 2.System components. The standards-based, voluntary quality rating and 
34.25 	improvement system includes:
34.26 	(1) quality opportunities in order to improve the educational outcomes of children so 
34.27 	that they are ready for school. The;
34.28 	(2) a framework shall be based on the Minnesota quality rating system rating tool and 
34.29 	a common set of child outcome and program standards and informed by evaluation results;
34.30 	(2) (3) a tool to increase the number of publicly funded and regulated early learning and 
34.31 	care services in both public and private market programs that are high quality.;
35.1 	(4) voluntary participation that ensures that if a program or provider chooses to participate, 
35.2 	the program or provider will be rated and may receive public funding associated with the 
35.3 	rating. The state shall develop a plan to link future early learning and care state funding to 
35.4 	the framework in a manner that complies with federal requirements; and
35.5 	(3) (5) tracking progress toward statewide access to high-quality early learning and care 
35.6 	programs, progress toward the number of low-income children whose parents can access 
35.7 	quality programs, and progress toward increasing the number of children who are fully 
35.8 	prepared to enter kindergarten.
35.9 	(b) In planning a statewide quality rating and improvement system framework in 
35.10 	paragraph (a), the state shall use evaluation results of the Minnesota quality rating system 
35.11 	rating tool in use in fiscal year 2008 to recommend:
35.12 	(1) a framework of a common set of child outcome and program standards for a voluntary 
35.13 	statewide quality rating and improvement system;
35.14 	(2) a plan to link future funding to the framework described in paragraph (a), clause (2); 
35.15 	and
35.16 	(3) a plan for how the state will realign existing state and federal administrative resources 
35.17 	to implement the voluntary quality rating and improvement system framework. The state 
35.18 	shall provide the recommendation in this paragraph to the early childhood education finance 
35.19 	committees of the legislature by March 15, 2011.
35.20 	(c) Prior to the creation of a statewide quality rating and improvement system in paragraph 
35.21 	(a), the state shall employ the Minnesota quality rating system rating tool in use in fiscal 
35.22 	year 2008 in the original Minnesota Early Learning Foundation pilot areas and additional 
35.23 	pilot areas supported by private or public funds with its modification as a result of the 
35.24 	evaluation results of the pilot project.
35.25 		Subd. 3.Evaluation. (a) By February 1, 2022, the commissioner of human services 
35.26 	must arrange an independent evaluation of the quality rating and improvement system's 
35.27 	effectiveness and impact on:
35.28 	(1) children's progress toward school readiness;
35.29 	(2) the quality of the early learning and care system supply and workforce;
35.30 	(3) parents' ability to access and use meaningful information about early learning and 
35.31 	care program quality; and
36.1 	(4) providers' ability to serve children and families, particularly those from racially, 
36.2 	ethnically, or culturally diverse backgrounds.
36.3 	(b) The evaluation must be performed by a staff member from another agency or a 
36.4 	consultant. An evaluator must have experience in program evaluation and must not be 
36.5 	regularly involved in implementation of the quality rating and improvement system.
36.6 	(c) The evaluation findings, along with the commissioner's recommendations for 
36.7 	revisions, potential future evaluations, and plans for continuous improvement, must be 
36.8 	reported to the chairs and ranking members of the legislative committees with jurisdiction 
36.9 	over early childhood programs by December 31, 2024.
36.10 	(d) At a minimum, the evaluation must:
36.11 	(1) analyze the effectiveness of the quality rating and improvement system, including 
36.12 	but not limited to reviewing:
36.13 	(i) whether quality indicators and measures used in the quality rating and improvement 
36.14 	system are consistent with evidence and research findings on early learning and care program 
36.15 	quality; and
36.16 	(ii) patterns or differences in observed quality of participating early learning and care 
36.17 	programs in comparison to programs at other quality rating and improvement system star 
36.18 	rating levels and accounting for other factors;
36.19 	(2) perform evidence-based assessments of children's developmental gains in ways that 
36.20 	are appropriate for children's linguistic and cultural backgrounds and are aligned with the 
36.21 	state early childhood indicators of progress;
36.22 	(3) analyze the extent to which differences in developmental gains among children 
36.23 	correspond to the star ratings of the early learning and care programs, providing disaggregated 
36.24 	findings by:
36.25 	(i) children's demographic factors, including geographic area, family income level, and 
36.26 	racial and ethnic groups;
36.27 	(ii) type of provider, including family child care providers, child care centers, Head Start 
36.28 	and Early Head Start, and school-based early childhood providers; and
36.29 	(iii) any other categories identified by the commissioner, in consultation with the 
36.30 	commissioners of health and education or entity performing the evaluation;
36.31 	(4) analyze the accessibility for providers to participate in the quality rating and 
36.32 	improvement system, including ease of application and supports for a provider to receive 
37.1 	or improve a rating, and provide disaggregated findings by children's demographic factors 
37.2 	and type of provider, as each is defined in clause (3);
37.3 	(5) analyze the availability of providers participating in the quality rating and 
37.4 	improvement system to families, and provide disaggregated findings by children's 
37.5 	demographic factors and type of provider, as each is defined in clause (3);
37.6 	(6) analyze the degree to which the quality rating and improvement system does or does 
37.7 	not account for racial, cultural, linguistic, and ethnic diversity when measuring quality; and
37.8 	(7) analyze the impact of financial or administrative requirements of the quality rating 
37.9 	and improvement system on family child care providers and child care providers serving 
37.10 	racially, ethnically, and culturally diverse communities.
37.11 	(e) The evaluation must include a comparison of the quality rating and improvement 
37.12 	system with at least three other quality metric systems used in other states. The other metric 
37.13 	systems chosen must incorporate methods of assessing and monitoring developmental and 
37.14 	achievement benchmarks in early care and education settings to assess kindergarten readiness, 
37.15 	including for racially, ethnically, and culturally diverse populations.
37.16 		Subd. 4.Equity reports. (a) The Department of Human Services shall continue to 
37.17 	participate in a process funded by an outside entity to engage a racially, ethnically, and 
37.18 	geographically diverse group of stakeholders to create a Parent Aware racial equity action 
37.19 	plan. The plan shall include strategies that beneficially impact children and parents from 
37.20 	racially and ethnically diverse communities; equitably support early learning and care 
37.21 	providers to help them meet the Parent Aware rating requirements; and increase equity in 
37.22 	the Parent Aware rating and improvement system. The department shall submit the Parent 
37.23 	Aware racial equity action plan to the legislative committees with jurisdiction over early 
37.24 	learning and care programs by February 1, 2022.
37.25 	(b) The Department of Human Services shall conduct outreach to a racially, ethnically, 
37.26 	and geographically diverse group of early learning and care providers to identify any barriers 
37.27 	that prevent them from pursuing a Parent Aware rating. The department shall summarize 
37.28 	and submit the results of the outreach, along with a plan for reducing those barriers, to the 
37.29 	legislative committees with jurisdiction over early learning and care programs by February 
37.30 	1, 2022.

37.31 	Sec. 5. Minnesota Statutes 2020, section 124D.151, subdivision 2, is amended to read:
37.32 		Subd. 2.Program requirements. (a) A voluntary prekindergarten program provider 
37.33 	must:
38.1 	(1) provide instruction through play-based learning to foster children's social and 
38.2 	emotional development, cognitive development, physical and motor development, and 
38.3 	language and literacy skills, including the native language and literacy skills of English 
38.4 	learners, to the extent practicable;
38.5 	(2) measure each child's cognitive and social skills using a formative measure aligned 
38.6 	to the state's early learning standards when the child enters and again before the child leaves 
38.7 	the program, screening and progress monitoring measures, and other age-appropriate versions 
38.8 	from the state-approved menu of kindergarten entry profile measures;
38.9 	(3) provide comprehensive program content including the implementation of curriculum, 
38.10 	assessment, and instructional strategies aligned with the state early learning standards, and 
38.11 	kindergarten through grade 3 academic standards;
38.12 	(4) provide instructional content and activities that are of sufficient length and intensity 
38.13 	to address learning needs including offering a program with at least 350 hours of instruction 
38.14 	per school year for a prekindergarten student;
38.15 	(5) provide voluntary prekindergarten instructional staff salaries comparable to the 
38.16 	salaries of local kindergarten through grade 12 instructional staff;
38.17 	(6) coordinate appropriate kindergarten transition with families, community-based 
38.18 	prekindergarten programs, and school district kindergarten programs;
38.19 	(7) involve parents in program planning and transition planning by implementing parent 
38.20 	engagement strategies that include culturally and linguistically responsive activities in 
38.21 	prekindergarten through third grade that are aligned with early childhood family education 
38.22 	under section 124D.13;
38.23 	(8) coordinate with relevant community-based services, including health and social 
38.24 	service agencies, to ensure children have access to comprehensive services;
38.25 	(9) coordinate with all relevant school district programs and services including early 
38.26 	childhood special education, homeless students, and English learners;
38.27 	(10) ensure staff-to-child ratios of one-to-ten and a maximum group size of 20 children
38.28 	with at least one licensed teacher;
38.29 	(11) provide high-quality coordinated professional development, training, and coaching 
38.30 	for both school district and community-based early learning providers that is informed by 
38.31 	a measure of adult-child interactions and enables teachers to be highly knowledgeable in 
38.32 	early childhood curriculum content, assessment, native and English language development 
38.33 	programs, and instruction; and
39.1 	(12) implement strategies that support the alignment of professional development, 
39.2 	instruction, assessments, and prekindergarten through grade 3 curricula.
39.3 	(b) A voluntary prekindergarten program must have teachers knowledgeable in early 
39.4 	childhood curriculum content, assessment, native and English language programs, and 
39.5 	instruction.
39.6 	(c) Districts and charter schools must include their strategy for implementing and 
39.7 	measuring the impact of their voluntary prekindergarten program under section 120B.11 
39.8 	and provide results in their world's best workforce annual summary to the commissioner of 
39.9 	education.

39.10 	Sec. 6. Minnesota Statutes 2020, section 124D.151, subdivision 5, is amended to read:
39.11 		Subd. 5.Application process; priority for high poverty schools. (a) To qualify for 
39.12 	program approval for fiscal year 2017, a district or charter school must submit an application 
39.13 	to the commissioner by July 1, 2016. To qualify for program approval for fiscal year 2018 
39.14 	and later, a district or charter school must submit an application to the commissioner by 
39.15 	January 30 of the fiscal year prior to the fiscal year in which the program will be 
39.16 	implemented. The application must include:
39.17 	(1) a description of the proposed program, including the number of hours per week the 
39.18 	program will be offered at each school site or mixed-delivery location;
39.19 	(2) an estimate of the number of eligible children to be served in the program at each 
39.20 	school site or mixed-delivery location; and
39.21 	(3) a statement of assurances signed by the superintendent or charter school director that 
39.22 	the proposed program meets the requirements of subdivision 2.
39.23 	(b) The commissioner must review all applications submitted for fiscal year 2017 by 
39.24 	August 1, 2016, and must review all applications submitted for fiscal year 2018 and later
39.25 	by March 1 of the fiscal year in which the applications are received and determine whether 
39.26 	each application meets the requirements of paragraph (a).
39.27 	(c) The commissioner must divide all applications for new or expanded voluntary 
39.28 	prekindergarten programs under this section meeting the requirements of paragraph (a) and 
39.29 	school readiness plus programs into four groups as follows: the Minneapolis and St. Paul 
39.30 	school districts; other school districts located in the metropolitan equity region as defined 
39.31 	in section 126C.10, subdivision 28; school districts located in the rural equity region as 
39.32 	defined in section 126C.10, subdivision 28; and charter schools. Within each group, the 
39.33 	applications must be ordered by rank using a sliding scale based on the following criteria:
40.1 	(1) concentration of kindergarten students eligible for free or reduced-price lunches by 
40.2 	school site on October 1 of the previous school year. A school site may contract to partner 
40.3 	with a community-based provider or Head Start under subdivision 3 or establish an early 
40.4 	childhood center and use the concentration of kindergarten students eligible for free or 
40.5 	reduced-price meals from a specific school site as long as those eligible children are 
40.6 	prioritized and guaranteed services at the mixed-delivery site or early education center. For 
40.7 	school district programs to be operated at locations that do not have free and reduced-price 
40.8 	lunch concentration data for kindergarten programs for October 1 of the previous school 
40.9 	year, including mixed-delivery programs, the school district average concentration of 
40.10 	kindergarten students eligible for free or reduced-price lunches must be used for the rank 
40.11 	ordering;
40.12 	(2) presence or absence of a three- or four-star Parent Aware rated program within the 
40.13 	school district or close proximity of the district. School sites with the highest concentration 
40.14 	of kindergarten students eligible for free or reduced-price lunches that do not have a three- 
40.15 	or four-star Parent Aware program within the district or close proximity of the district shall 
40.16 	receive the highest priority, and school sites with the lowest concentration of kindergarten 
40.17 	students eligible for free or reduced-price lunches that have a three- or four-star Parent 
40.18 	Aware rated program within the district or close proximity of the district shall receive the 
40.19 	lowest priority; and
40.20 	(3) whether the district has implemented a mixed delivery system.
40.21 	(d) The limit on participation for the programs as specified in subdivision 6 must initially 
40.22 	be allocated among the four groups based on each group's percentage share of the statewide 
40.23 	kindergarten enrollment on October 1 of the previous school year. Within each group, the 
40.24 	participation limit for fiscal years 2018 and 2019 must first be allocated to school sites 
40.25 	approved for aid in the previous year to ensure that those sites are funded for the same 
40.26 	number of participants as approved for the previous year. The remainder of the participation 
40.27 	limit for each group must be allocated among school sites in priority order until that region's 
40.28 	share of the participation limit is reached. If the participation limit is not reached for all 
40.29 	groups, the remaining amount must be allocated to the highest priority school sites, as 
40.30 	designated under this section, not funded in the initial allocation on a statewide basis. For 
40.31 	fiscal year 2020 and later, the participation limit must first be allocated to school sites 
40.32 	approved for aid in fiscal year 2017, and then to school sites approved for aid in fiscal year 
40.33 	2018 based on the statewide rankings under paragraph (c).
40.34 	(e) Once A school site or a mixed delivery site under subdivision 3 is offering a voluntary 
40.35 	prekindergarten or a school readiness plus program approved for aid under this subdivision, 
41.1 	it in fiscal year 2021 shall remain eligible for aid if it continues to meet program 
41.2 	requirements, regardless of changes in the concentration of students eligible for free or 
41.3 	reduced-price lunches.
41.4 	(f) If the total number of participants approved based on applications submitted under 
41.5 	paragraph (a) is less than the participation limit under subdivision 6, the commissioner must 
41.6 	notify all school districts and charter schools of the amount that remains available within 
41.7 	30 days of the initial application deadline under paragraph (a), and complete a second round 
41.8 	of allocations based on applications received within 60 days of the initial application deadline.
41.9 	(g) Procedures for approving applications submitted under paragraph (f) shall be the 
41.10 	same as specified in paragraphs (a) to (d), except that the allocations shall be made to the 
41.11 	highest priority school sites not funded in the initial allocation on a statewide basis.

41.12 	Sec. 7. Minnesota Statutes 2020, section 124D.151, subdivision 6, is amended to read:
41.13 		Subd. 6.Participation limits. (a) Notwithstanding section 126C.05, subdivision 1, 
41.14 	paragraph (d), the pupil units for a voluntary prekindergarten program for an eligible school 
41.15 	district or charter school must not exceed 60 percent of the kindergarten pupil units for that 
41.16 	school district or charter school under section 126C.05, subdivision 1, paragraph (e).
41.17 	(b) In reviewing applications under subdivision 5, the commissioner must limit the total 
41.18 	number of participants in the voluntary prekindergarten and school readiness plus programs 
41.19 	under Laws 2017, First Special Session chapter 5, article 8, section 9, program to not more 
41.20 	than 7,160 participants for fiscal years 2019, 2020, and 2021, and 3,160 participants for 
41.21 	fiscal years 2022 and later.

41.22 	Sec. 8. Minnesota Statutes 2020, section 124D.162, is amended to read:
41.23 	124D.162 KINDERGARTEN READINESS ASSESSMENT.
41.24 		Subdivision 1.Implementation. (a) The commissioner of education may must implement 
41.25 	a kindergarten readiness assessment representative of incoming kindergartners. to:
41.26 	(1) identify preparedness of a child for success in school;
41.27 	(2) inform instructional decision making;
41.28 	(3) improve understanding of connections between kindergarten readiness and later 
41.29 	academic achievement; and
41.30 	(4) produce data that can assist in evaluation of the effectiveness of early childhood 
41.31 	programs.
42.1 	(b) The commissioner must provide districts and charter schools with a process for 
42.2 	measuring the kindergarten readiness of incoming kindergartners on a comparable basis. 
42.3 	The commissioner must approve one or more measurement tools for district and charter 
42.4 	school use.
42.5 		Subd. 2.Assessment development.  The measurement tools used for assessment must 
42.6 	be based on the Department of Education Kindergarten Readiness Assessment at kindergarten 
42.7 	entrance study research-based, developmentally appropriate, valid and reliable, and aligned 
42.8 	to the state early childhood indicators of progress and kindergarten academic standards.
42.9 		Subd. 3.Reporting. Beginning in the 2022-2023 school year, every district and charter 
42.10 	school must use the commissioner-provided process. Every district and charter school must 
42.11 	annually report kindergarten readiness results under this section to the department in the 
42.12 	form and manner determined by the commissioner concurrent with the district's and charter 
42.13 	school's world's best workforce report under section 120B.11. The commissioner must 
42.14 	publicly report kindergarten readiness results as part of the performance reports required 
42.15 	under section 120B.36 and consistent with section 120B.35, subdivision 3, paragraph (a), 
42.16 	clause (2).
42.17 		Subd. 4.Longitudinal data system. Beginning with data reported on incoming 
42.18 	kindergartners in the 2022-2023 school year, the commissioner must integrate kindergarten 
42.19 	readiness data under this section into statewide longitudinal educational data systems.

42.20 	Sec. 9. Minnesota Statutes 2020, section 124D.165, subdivision 2, is amended to read:
42.21 		Subd. 2.Family eligibility. (a) For a family to receive an early learning scholarship, 
42.22 	parents or guardians must meet the following eligibility requirements:
42.23 	(1) have an eligible child; and
42.24 	(2) have income equal to or less than 185 percent of federal poverty level income in the 
42.25 	current calendar year, or be able to document their child's current participation in the free 
42.26 	and reduced-price lunch program or Child and Adult Care Food Program, National School 
42.27 	Lunch Act, United States Code, title 42, sections 1751 and 1766; the Food Distribution 
42.28 	Program on Indian Reservations, Food and Nutrition Act, United States Code, title 7, sections 
42.29 	2011-2036; Head Start under the federal Improving Head Start for School Readiness Act 
42.30 	of 2007; Minnesota family investment program under chapter 256J; child care assistance 
42.31 	programs under chapter 119B; the supplemental nutrition assistance program; or placement 
42.32 	in foster care under section 260C.212.
43.1 	(b) An "eligible child" means a child who has not yet enrolled in kindergarten and is:
43.2 	not yet five years of age on September 1 of the current school year.
43.3 	(1) at least three but not yet five years of age on September 1 of the current school year;
43.4 	(2) a sibling from birth to age five of a child who has been awarded a scholarship under 
43.5 	this section provided the sibling attends the same program as long as funds are available;
43.6 	(3) the child of a parent under age 21 who is pursuing a high school degree or a course 
43.7 	of study for a high school equivalency test; or
43.8 	(4) homeless, in foster care, or in need of child protective services.
43.9 	(c) Notwithstanding the priorities outlined in subdivision 3 of this section, a child who 
43.10 	has received a scholarship under this section must continue to receive a scholarship each 
43.11 	year until that child is eligible for kindergarten under section 120A.20 and as long as funds 
43.12 	are available.
43.13 	(d) Early learning scholarships may not be counted as earned income for the purposes 
43.14 	of medical assistance under chapter 256B, MinnesotaCare under chapter 256L, Minnesota 
43.15 	family investment program under chapter 256J, child care assistance programs under chapter 
43.16 	119B, or Head Start under the federal Improving Head Start for School Readiness Act of 
43.17 	2007.
43.18 	(e) A child from an adjoining state whose family resides at a Minnesota address as 
43.19 	assigned by the United States Postal Service, who has received developmental screening 
43.20 	under sections 121A.16 to 121A.19, who intends to enroll in a Minnesota school district, 
43.21 	and whose family meets the criteria of paragraph (a) is eligible for an early learning 
43.22 	scholarship under this section.

43.23 	Sec. 10. Minnesota Statutes 2020, section 124D.165, subdivision 3, is amended to read:
43.24 		Subd. 3.Administration. (a) The commissioner shall establish application timelines 
43.25 	and determine the schedule for awarding scholarships that meets operational needs of eligible 
43.26 	families and programs. The commissioner must give highest priority to prioritize applications 
43.27 	from children who as follows:
43.28 	(1) first priority is children who have a parent under age 21 who is pursuing a high school 
43.29 	diploma or a course of study for a high school equivalency test, are in foster care or otherwise 
43.30 	in need of protection or services, or have experienced homelessness in the last 24 months, 
43.31 	as defined under the federal McKinney-Vento Homeless Assistance Act, United States 
43.32 	Code, title 42, section 11434a;
44.1 	(2) are in foster care or otherwise in need of protection or services; or second priority 
44.2 	is children who are from birth through age two; and
44.3 	(3) have experienced homelessness in the last 24 months, as defined under the federal 
44.4 	McKinney-Vento Homeless Assistance Act, United States Code, title 42, section 11434a
44.5 	third priority is children who are age three or four.
44.6 	The commissioner may prioritize applications on additional factors including family 
44.7 	income, geographic location, and whether the child's family is on a waiting list for a publicly 
44.8 	funded program providing early education or child care services.
44.9 	(b) The commissioner shall establish a target for the average scholarship amount per 
44.10 	child based on the results of the rate survey conducted under section 119B.02.
44.11 	(c) A four-star rated program that has children eligible for a scholarship enrolled in or 
44.12 	on a waiting list for a program beginning in July, August, or September may notify the 
44.13 	commissioner, in the form and manner prescribed by the commissioner, each year of the 
44.14 	program's desire to enhance program services or to serve more children than current funding 
44.15 	provides. The commissioner may designate a predetermined number of scholarship slots 
44.16 	for that program and notify the program of that number. For fiscal year 2018 and later, the 
44.17 	statewide amount of funding directly designated by the commissioner must not exceed the 
44.18 	funding directly designated for fiscal year 2017. Beginning July 1, 2016, A school district 
44.19 	or Head Start program qualifying under this paragraph may use its established registration 
44.20 	process to enroll scholarship recipients and may verify a scholarship recipient's family 
44.21 	income in the same manner as for other program participants.
44.22 	(d) A scholarship is awarded for a 12-month period. If the scholarship recipient has not 
44.23 	been accepted and subsequently enrolled in a rated program within ten three months of the 
44.24 	awarding of the scholarship, the scholarship cancels and the recipient must reapply in order 
44.25 	to be eligible for another scholarship. If a family is unable to enroll in an eligible program 
44.26 	within three months, they may request an extension based on an established set of criteria 
44.27 	that would be developed under the commissioner's authority. A child may not be awarded 
44.28 	more than one scholarship in a 12-month period.
44.29 	(e) A child who receives a scholarship who has not completed development screening 
44.30 	under sections 121A.16 to 121A.19 must complete that screening within 90 days of first 
44.31 	attending an eligible program or within 90 days after the child's third birthday if awarded 
44.32 	a scholarship under the age of three.
44.33 	(f) For fiscal year 2017 and later, a school district or Head Start program enrolling 
44.34 	scholarship recipients under paragraph (c) may apply to the commissioner, in the form and 
45.1 	manner prescribed by the commissioner, for direct payment of state aid. Upon receipt of 
45.2 	the application, the commissioner must pay each program directly for each approved 
45.3 	scholarship recipient enrolled under paragraph (c) according to the metered payment system 
45.4 	or another schedule established by the commissioner.

45.5 	Sec. 11. [124D.166] LIMIT ON SCREEN TIME FOR CHILDREN IN PRESCHOOL 
45.6 	AND KINDERGARTEN.
45.7 	A child in a publicly funded preschool or kindergarten program may not use an 
45.8 	individual-use screen, such as a tablet, smartphone, or other digital media, without 
45.9 	engagement from a teacher or other students. This section does not apply to a child for 
45.10 	whom the school has in effect an individualized family service plan or an individualized 
45.11 	education program.

45.12 	Sec. 12. Minnesota Statutes 2020, section 126C.05, subdivision 1, is amended to read:
45.13 		Subdivision 1.Pupil unit. Pupil units for each Minnesota resident pupil under the age 
45.14 	of 21 or who meets the requirements of section 120A.20, subdivision 1, paragraph (c), in 
45.15 	average daily membership enrolled in the district of residence, in another district under 
45.16 	sections 123A.05 to 123A.08, 124D.03, 124D.08, or 124D.68; in a charter school under 
45.17 	chapter 124E; or for whom the resident district pays tuition under section 123A.18, 123A.22, 
45.18 	123A.30, 123A.32, 123A.44, 123A.488, 123B.88, subdivision 4, 124D.04, 124D.05, 125A.03 
45.19 	to 125A.24, 125A.51, or 125A.65, shall be counted according to this subdivision.
45.20 	(a) A prekindergarten pupil with a disability who is enrolled in a program approved by 
45.21 	the commissioner and has an individualized education program is counted as the ratio of 
45.22 	the number of hours of assessment and education service to 825 times 1.0 with a minimum 
45.23 	average daily membership of 0.28, but not more than 1.0 pupil unit.
45.24 	(b) A prekindergarten pupil who is assessed but determined not to be disabled is counted 
45.25 	as the ratio of the number of hours of assessment service to 825 times 1.0.
45.26 	(c) A kindergarten pupil with a disability who is enrolled in a program approved by the 
45.27 	commissioner is counted as the ratio of the number of hours of assessment and education 
45.28 	services required in the fiscal year by the pupil's individualized education program to 875, 
45.29 	but not more than one.
45.30 	(d) A prekindergarten pupil who is not included in paragraph (a) or (b) and is enrolled 
45.31 	in an approved voluntary prekindergarten program under section 124D.151 is counted as 
46.1 	the ratio of the number of hours of instruction to 850 times 1.0, but not more than 0.6 pupil 
46.2 	units.
46.3 	(e) A kindergarten pupil who is not included in paragraph (c) is counted as 1.0 pupil 
46.4 	unit if the pupil is enrolled in a free all-day, every day kindergarten program available to 
46.5 	all kindergarten pupils at the pupil's school that meets the minimum hours requirement in 
46.6 	section 120A.41, or is counted as .55 pupil unit, if the pupil is not enrolled in a free all-day, 
46.7 	every day kindergarten program available to all kindergarten pupils at the pupil's school.
46.8 	(f) A pupil who is in any of grades 1 to 6 is counted as 1.0 pupil unit.
46.9 	(g) A pupil who is in any of grades 7 to 12 is counted as 1.2 pupil units.
46.10 	(h) A pupil who is in the postsecondary enrollment options program is counted as 1.2 
46.11 	pupil units.
46.12 	(i) For fiscal years 2018 through 2021, A prekindergarten pupil who:
46.13 	(1) is not included in paragraph (a), (b), or (d);
46.14 	(2) is enrolled in a school readiness plus program under Laws 2017, First Special Session 
46.15 	chapter 5, article 8, section 9; and
46.16 	(3) has one or more of the risk factors specified by the eligibility requirements for a 
46.17 	school readiness plus program,
46.18 	is counted as the ratio of the number of hours of instruction to 850 times 1.0, but not more 
46.19 	than 0.6 pupil units. A pupil qualifying under this paragraph must be counted in the same 
46.20 	manner as a voluntary prekindergarten student for all general education and other school 
46.21 	funding formulas.

46.22 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2022 and later.

46.23 	Sec. 13. Minnesota Statutes 2020, section 126C.05, subdivision 3, is amended to read:
46.24 		Subd. 3.Compensation revenue pupil units. Compensation revenue pupil units for 
46.25 	fiscal year 1998 and thereafter must be computed according to this subdivision.
46.26 	(a) The compensation revenue concentration percentage for each building in a district 
46.27 	equals the product of 100 times the ratio of:
46.28 	(1) the sum of the number of pupils enrolled in the building eligible to receive free lunch 
46.29 	plus one-half of the pupils eligible to receive reduced priced lunch on October 1 of the 
46.30 	previous fiscal year; to
47.1 	(2) the number of pupils enrolled in the building on October 1 of the previous fiscal 
47.2 	year.
47.3 	(b) The compensation revenue pupil weighting factor for a building equals the lesser of 
47.4 	one or the quotient obtained by dividing the building's compensation revenue concentration 
47.5 	percentage by 80.0.
47.6 	(c) The compensation revenue pupil units for a building equals the product of:
47.7 	(1) the sum of the number of pupils enrolled in the building eligible to receive free lunch 
47.8 	and one-half of the pupils eligible to receive reduced priced lunch on October 1 of the 
47.9 	previous fiscal year; times
47.10 	(2) the compensation revenue pupil weighting factor for the building; times
47.11 	(3) .60.
47.12 	(d) Notwithstanding paragraphs (a) to (c), for voluntary prekindergarten programs under 
47.13 	section 124D.151, charter schools, and contracted alternative programs in the first year of 
47.14 	operation, compensation revenue pupil units shall be computed using data for the current 
47.15 	fiscal year. If the voluntary prekindergarten program, charter school, or contracted alternative 
47.16 	program begins operation after October 1, compensatory revenue pupil units shall be 
47.17 	computed based on pupils enrolled on an alternate date determined by the commissioner, 
47.18 	and the compensation revenue pupil units shall be prorated based on the ratio of the number 
47.19 	of days of student instruction to 170 days.
47.20 	(e) Notwithstanding paragraphs (a) to (c), for voluntary prekindergarten seats discontinued 
47.21 	in fiscal year 2022 due to the reduction in the participation limit under section 124D.151, 
47.22 	subdivision 6, those discontinued seats must not be used to calculate compensation revenue 
47.23 	pupil units for fiscal year 2022.
47.24 	(f) (e) The percentages in this subdivision must be based on the count of individual 
47.25 	pupils and not on a building average or minimum.

47.26 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2022 and later.

47.27 	Sec. 14. AFFORDABLE, HIGH-QUALITY EARLY CARE AND EDUCATION 
47.28 	FOR ALL FAMILIES.
 47.29 	It is the goal of the state for all families to have access to affordable, high-quality early 
47.30 	care and education, for children from birth up to age five, that enriches, nurtures, and supports 
47.31 	children and their families. The goal will be achieved by:
48.1 	(1) creating a system under which no family pays more than seven percent of its income 
48.2 	for early care and education;
48.3 	(2) ensuring that a child's access to high-quality early care and education is not determined 
48.4 	by the child's race, income, or zip code; and
48.5 	(3) increasing compensation, credentials, and professional development opportunities 
48.6 	for the early care and education workforce.

48.7 	Sec. 15. GREAT START FOR ALL MINNESOTA CHILDREN TASK FORCE.
 48.8 		Subdivision 1.Establishment. The Great Start for All Minnesota Children Task Force 
48.9 	is established to develop strategies that will meet the goal of all families in the state having 
48.10 	access to affordable, high-quality early care and education, for children from birth up to 
48.11 	age five, that enriches, nurtures, and supports children and their families.
48.12 		Subd. 2.Membership. (a) The task force shall consist of the following 21 voting 
48.13 	members, appointed by the governor or governor's designee, except as otherwise specified:
48.14 	(1) two members of the house of representatives, appointed first from the majority party 
48.15 	by the speaker of the house and second from the minority party by the minority leader. One 
48.16 	of the members must represent a district outside of the seven-county metropolitan area, and 
48.17 	one member must represent a district that includes the seven-county metropolitan area. The 
48.18 	appointment by the minority leader must ensure that the requirement for geographic diversity 
48.19 	in appointments is met;
48.20 	(2) two members of the senate, appointed first from the majority party by the majority 
48.21 	leader and second from the minority party by the minority leader. One of the members must 
48.22 	represent a district outside of the seven-county metropolitan area, and one member must 
48.23 	represent a district that includes the seven-county metropolitan area. The appointment by 
48.24 	the minority leader must ensure that the requirement for geographic diversity in appointments 
48.25 	is met;
48.26 	(3) one individual who is the director of a licensed child care center with at least 50 
48.27 	percent of its enrolled children eligible for or currently receiving public assistance for early 
48.28 	care and education;
48.29 	(4) two individuals who are license holders of family child care programs, one from 
48.30 	greater Minnesota and one from the seven-county metropolitan area;
48.31 	(5) one individual who is both a licensed early childhood teacher and a member of a 
48.32 	licensed early childhood educator union;
49.1 	(6) two parents of children under the age of five who are enrolled in early care and 
49.2 	education programs, one parent from greater Minnesota and one parent from the seven-county 
49.3 	metropolitan area;
49.4 	(7) one representative of an organization that organizes licensed child care centers and 
49.5 	employees;
49.6 	(8) one representative from the statewide child care resource and referral network, known 
49.7 	as Child Care Aware;
49.8 	(9) one representative of a trade organization representing the interests of licensed child 
49.9 	care centers;
49.10 	(10) one representative of a federally recognized Tribe;
49.11 	(11) one representative from the Minnesota Association of County Social Service 
49.12 	Administrators;
49.13 	(12) one nationally recognized expert in early care and education financing;
49.14 	(13) one representative from an association representing small business interests;
49.15 	(14) one representative of a statewide advocacy organization that supports and promotes 
49.16 	early childhood education and welfare;
49.17 	(15) one representative from the Minnesota Head Start Association;
49.18 	(16) one representative from an organization representing community education directors; 
49.19 	and
49.20 	(17) one representative from the Children's Cabinet.
49.21 	(b) One representative from each of the following state agencies shall serve as a nonvoting 
49.22 	member of the task force who participates in meetings and provides data and information 
49.23 	to the task force upon request:
49.24 	(1) the Department of Education;
49.25 	(2) the Department of Employment and Economic Development;
49.26 	(3) the Department of Health;
49.27 	(4) the Department of Human Services;
49.28 	(5) the Department of Labor and Industry;
49.29 	(6) the Department of Management and Budget; and
49.30 	(7) the Department of Revenue.
50.1 		Subd. 3.Administration. (a) The governor must select a chair or cochairs for the task 
50.2 	force from among the voting members. The first task force meeting shall be convened by 
50.3 	the chair or cochairs and held no later than September 1, 2021. Thereafter, the chair or 
50.4 	cochairs shall convene the task force at least monthly and may convene other meetings as 
50.5 	necessary. The chair or cochairs shall convene meetings in a manner to allow for access 
50.6 	from diverse geographic locations in Minnesota.
50.7 	(b) Members of the task force shall serve without compensation.
50.8 	(c) The commissioner of management and budget shall provide staff and administrative 
50.9 	services for the task force.
50.10 	(d) The task force shall expire upon submission of the final report required under 
50.11 	subdivision 8.
50.12 	(e) The duties of the task force in this section shall be transferred to an applicable state 
50.13 	agency if specifically authorized under law to carry out such duties.
50.14 	(f) The task force is subject to Minnesota Statutes, chapter 13D.
50.15 		Subd. 4.Plan development. (a) The task force must develop a plan to achieve the goal 
50.16 	outlined in subdivision 1 by 2031. The plan must incorporate strategies that:
50.17 	(1) create a system under which no family pays more than seven percent of its income 
50.18 	for early care and education;
50.19 	(2) ensure that a child's access to high-quality early care and education is not determined 
50.20 	by the child's race, income, or zip code; and
50.21 	(3) increase compensation to at least a livable wage and increase professional development 
50.22 	and credentialing opportunities for the early care and education workforce, which includes 
50.23 	but is not limited to early educators working in Head Start, family child care programs, 
50.24 	child care centers, school-based programs, and early childhood special education.
50.25 	(b) Development of the strategies must incorporate or otherwise take into account the 
50.26 	factors identified in subdivisions 5 and 6.
50.27 		Subd. 5.Affordable, high-quality early care and education. In developing the plan 
50.28 	under subdivision 4, the task force must:
50.29 	(1) identify the benefit mechanisms, financing mechanisms, and infrastructure under 
50.30 	which families will access financial assistance so early care and education is affordable;
50.31 	(2) describe how the plan will be administered, including the roles for state agencies, 
50.32 	local government agencies, and community-based organizations;
51.1 	(3) describe how the plan will maintain and encourage the further development of 
51.2 	Minnesota's mixed-delivery system for early care and education;
51.3 	(4) consider the recommendations from previous work including the Transforming 
51.4 	Minnesota's Early Childhood Workforce project;
51.5 	(5) consider how provider payment rates will be determined and updated under a seven 
51.6 	percent cap; and
51.7 	(6) consider how the state can develop and implement diverse methods of assessing and 
51.8 	monitoring developmental and achievement benchmarks in early care and education settings 
51.9 	to assess kindergarten readiness.
51.10 		Subd. 6.Workforce compensation. In developing the plan under subdivision 4, the 
51.11 	task force must:
51.12 	(1) endeavor to preserve and increase racial and ethnic equity and diversity in the early 
51.13 	care and education workforce and recognize the value of cultural competency and 
51.14 	multilingualism;
51.15 	(2) include a salary floor that supports recruitment and retention of a qualified workforce 
51.16 	in every early care and education setting;
51.17 	(3) consider the need for and development of a mechanism that ties provider 
51.18 	reimbursement rates to employee compensation;
51.19 	(4) consider how compensation standards for early educators will apply at both child 
51.20 	care centers and family child care programs;
51.21 	(5) increase compensation to incentivize advancements in relevant higher education 
51.22 	credentials, training, years of experience, and credential equivalencies, including certified 
51.23 	demonstrations of competencies developed through apprenticeships, peer learning models, 
51.24 	and community-based training; and
51.25 	(6) set compensation for the early care and education workforce by reference to 
51.26 	compensation for licensed elementary school teachers, and consider differentiating base 
51.27 	compensation for:
51.28 	(i) varying levels of responsibility, including but not limited to center directors, assistant 
51.29 	directors, lead teachers, assistant teachers, paraprofessionals, family child care license 
51.30 	holders, second adult caregivers, substitutes, and helpers; and
51.31 	(ii) different geographic areas of the state.
52.1 		Subd. 7.Implementation timeline. The task force must develop an implementation 
52.2 	timeline for the plan developed under subdivision 4 that phases in the plan over a period of 
52.3 	no more than six years, beginning in July 2025 and finishing no later than July 2031. In 
52.4 	developing the implementation timeline, the task force must consider:
52.5 	(1) how to simultaneously apply the seven percent cap to as many families as possible 
52.6 	while minimizing disruptions in the availability and cost of currently available early care 
52.7 	and education arrangements;
52.8 	(2) the capacity for the state to increase the availability of different types of early care 
52.9 	and education settings from which a family may choose;
52.10 	(3) how the inability to afford and access early care and education settings 
52.11 	disproportionately affects certain populations; and
52.12 	(4) how to provide additional targeted investments for early care and education providers 
52.13 	serving a high proportion of families currently eligible for or receiving public assistance 
52.14 	for early care and education.
52.15 		Subd. 8.Required reports. By July 1, 2022, the task force must submit to the governor 
52.16 	and legislative committees with jurisdiction over early childhood programs preliminary 
52.17 	findings and draft implementation plans pursuant to the plan required under subdivision 4. 
52.18 	By February 1, 2023, the task force must submit to the governor and legislative committees 
52.19 	with jurisdiction over early childhood programs final recommendations and implementation 
52.20 	plans pursuant to subdivision 4.

52.21 	Sec. 16. DIRECTION TO THE CHILDREN'S CABINET; EARLY CHILDHOOD 
52.22 	GOVERNANCE REPORT.
 52.23 		Subdivision 1.Recommendations. The Children's Cabinet shall develop 
52.24 	recommendations on the governance of programs relating to early childhood development, 
52.25 	care, and learning, including how such programs could be consolidated into an existing 
52.26 	state agency or a new state Department of Early Childhood. The recommendations shall 
52.27 	address the impact of such a consolidation on:
52.28 	(1) state efforts to ensure that all Minnesota children are kindergarten-ready, with race, 
52.29 	income, and zip code no longer predictors of school readiness;
52.30 	(2) coordination and alignment among programs;
52.31 	(3) the effort required of families to receive services to which they are entitled;
52.32 	(4) the effort required of service providers to participate in childhood programs; and
53.1 	(5) the articulation between early care and education programs and the kindergarten 
53.2 	through grade 12 system.
53.3 		Subd. 2.Public input. In developing the recommendations required under subdivision 
53.4 	1, the Children's Cabinet must provide for a community engagement process to seek input 
53.5 	from the public and stakeholders.
53.6 		Subd. 3.Report. (a) The Children's Cabinet shall produce a report that includes:
53.7 	(1) the recommendations required under subdivision 1;
53.8 	(2) the explanations and reasoning behind such recommendations;
53.9 	(3) a description of the community engagement process required under subdivision 2; 
53.10 	and
53.11 	(4) a summary of the feedback received from the public and early care and education 
53.12 	stakeholders through the community engagement process.
53.13 	(b) The Children's Cabinet may arrange for consultants to assist with the development 
53.14 	of the report.
53.15 	(c) By February 1, 2022, the Children's Cabinet shall submit the report to the governor 
53.16 	and the legislative committees with jurisdiction over early childhood programs.

53.17 	Sec. 17. DIRECTION TO THE CHILDREN'S CABINET; EVALUATION OF THE 
53.18 	USE OF FEDERAL MONEY.
 53.19 	(a) The Children's Cabinet, with the assistance of the commissioners of human services, 
53.20 	education, and employment and economic development, shall conduct an evaluation of the 
53.21 	use of federal money received pursuant to the American Rescue Plan Act of 2021 (Public 
53.22 	Law 117-2), the Coronavirus Response and Relief Supplemental Appropriations Act of 
53.23 	2020 (Public Law 116-260), and the Coronavirus Aid, Relief, and Economic Security Act 
53.24 	(Public Law 116-136) to address the state's needs in the area of early care and education. 
53.25 	The Children's Cabinet may arrange for consultants to assist with the evaluation.
53.26 	(b) The evaluation shall address at least the following topics with results disaggregated, 
53.27 	to the extent practicable, by age, race, ethnicity, and geographic areas of the state:
53.28 	(1) changes in the number of children who are able to access early care and education 
53.29 	programs, including children from the following categories: those from low-income families; 
53.30 	those who have disabilities or developmental delays; those who are English language 
53.31 	learners; those who are members of American Indian Tribes; and those who are migrant, 
53.32 	homeless, in foster care, or are in need of child protective services;
54.1 	(2) changes in the supply of early care and education, particularly in areas of the state 
54.2 	with shortages of early care and education;
54.3 	(3) changes in the quality of early care and education programs, as measured pursuant 
54.4 	to the state's quality rating and improvement system under Minnesota Statutes, section 
54.5 	124D.142; and
54.6 	(4) changes in the average compensation and credentials of the early care and education 
54.7 	workforce.
54.8 	(c) The Children's Cabinet shall submit interim findings of the evaluation to the governor 
54.9 	and the legislative committees with jurisdiction over early childhood programs by February 
54.10 	1 in each of calendar years 2022, 2023, and 2024. The Children's Cabinet shall submit a 
54.11 	final report to the governor and the legislative committees with jurisdiction over early 
54.12 	childhood programs by February 1, 2025.

54.13 	Sec. 18. REPEALER.
 54.14 	Laws 2017, First Special Session chapter 5, article 8, section 9, is repealed.

54.15 	ARTICLE 5
54.16 	APPROPRIATIONS; EARLY EDUCATION

54.17 	Section 1. MINNESOTA MANAGEMENT AND BUDGET.
 54.18 	(a) $500,000 in fiscal year 2022 is appropriated from the general fund to the commissioner 
54.19 	of management and budget for the Great Start for All Minnesota Children Task Force. This 
54.20 	is a onetime appropriation.
54.21 	(b) $250,000 in fiscal year 2022 is appropriated from the general fund to the commissioner 
54.22 	of management budget for the early childhood governance report. This is a onetime 
54.23 	appropriation.

54.24 	Sec. 2. DEPARTMENT OF EDUCATION.
 54.25 		Subdivision 1.Department of Education. The sums indicated in this section are 
54.26 	appropriated from the general fund to the Department of Education for the fiscal years 
54.27 	designated.
54.28 		Subd. 2.School readiness. (a) For revenue for school readiness programs under 
54.29 	Minnesota Statutes, sections 124D.15 and 124D.16:

55.1		$
	33,683,000
	.....
	2022
	
55.2		$
	33,683,000
	.....
	2023
	
55.3 	(b) The 2022 appropriation includes $3,368,000 for fiscal year 2021 and $30,315,000 
55.4 	for fiscal year 2022.
55.5 	(c) The 2023 appropriation includes $3,368,000 for fiscal year 2022 and $30,315,000 
55.6 	for fiscal year 2023.
55.7 		Subd. 3.Early learning scholarships. (a) For the early learning scholarship program 
55.8 	under Minnesota Statutes, section 124D.165:

55.9		$
	88,949,000
	.....
	2022
	
55.10		$
	88,949,000
	.....
	2023
	
55.11 	(b) This appropriation is subject to the requirements under Minnesota Statutes, section 
55.12 	124D.165, subdivision 6.
55.13 	(c) The base for each of fiscal years 2024 and 2025 is $89,997,000.
55.14 		Subd. 4.Head Start program. For Head Start programs under Minnesota Statutes, 
55.15 	section 119A.52:

55.16		$
	25,100,000
	.....
	2022
	
55.17		$
	25,100,000
	.....
	2023
	
55.18 		Subd. 5.Early childhood family education aid. (a) For early childhood family education 
55.19 	aid under Minnesota Statutes, section 124D.135:

55.20		$
	33,772,000
	.....
	2022
	
55.21		$
	34,055,000
	.....
	2023
	
55.22 	(b) The 2022 appropriation includes $3,339,000 for fiscal year 2021 and $30,433,000 
55.23 	for fiscal year 2022.
55.24 	(c) The 2023 appropriation includes $3,381,000 for fiscal year 2022 and $30,674,000 
55.25 	for fiscal year 2023.
55.26 		Subd. 6.Developmental screening aid. (a) For developmental screening aid under 
55.27 	Minnesota Statutes, sections 121A.17 and 121A.19:

55.28		$
	3,582,000
	.....
	2022
	
55.29		$
	3,476,000
	.....
	2023
	
55.30 	(b) The 2022 appropriation includes $360,000 for fiscal year 2021 and $3,222,000 for 
55.31 	fiscal year 2022.
56.1 	(c) The 2023 appropriation includes $358,000 for fiscal year 2022 and $3,118,000 for 
56.2 	fiscal year 2023.
56.3 		Subd. 7.ParentChild+ program. (a) For a grant to the ParentChild+ program:

56.4		$
	1,500,000
	.....
	2022
	
56.5		$
	1,500,000
	.....
	2023
	
56.6 	(b) The ParentChild+ program must use the grant to implement its evidence-based and 
56.7 	research-validated early childhood literacy and school readiness program for children ages 
56.8 	16 months to four years. The program must be implemented at existing ParentChild+ program 
56.9 	locations, including Cass County, Hennepin County, and Rice County, and the cities of 
56.10 	Rochester and St. Cloud, or at any new rural, suburban, or urban locations.
56.11 	(c) Any balance in the first year does not cancel but is available in the second year.
56.12 		Subd. 8.Kindergarten readiness assessment. (a) For the kindergarten readiness 
56.13 	assessment under Minnesota Statutes, section 124D.162:

56.14		$
	1,781,000
	.....
	2022
	
56.15		$
	1,781,000
	.....
	2023
	
56.16 	(b) The base for each of fiscal years 2024 and 2025 is $1,500,000.
56.17 		Subd. 9.Quality rating and improvement system. (a) For transfer to the commissioner 
56.18 	of human services for the purposes of expanding the quality rating and improvement system 
56.19 	under Minnesota Statutes, section 124D.142, in greater Minnesota and increasing supports 
56.20 	for providers participating in the quality rating and improvement system:

56.21		$
	1,750,000
	.....
	2022
	
56.22		$
	1,750,000
	.....
	2023
	
56.23 	(b) The amounts in paragraph (a) must be in addition to any federal funding under the 
56.24 	child care and development block grant authorized under Public Law 101-508 in that year 
56.25 	for the system under Minnesota Statutes, section 124D.142.
56.26 	(c) Any balance in the first year does not cancel but is available in the second year.
56.27 		Subd. 10.Early childhood programs at Tribal contract schools. For early childhood 
56.28 	family education programs at Tribal contract schools under Minnesota Statutes, section 
56.29 	124D.83, subdivision 4:

56.30		$
	68,000
	.....
	2022
	
56.31		$
	68,000
	.....
	2023
	
57.1 		Subd. 11.Educate parents partnership. For the educate parents partnership under 
57.2 	Minnesota Statutes, section 124D.129:

57.3		$
	49,000
	.....
	2022
	
57.4		$
	49,000
	.....
	2023
	
57.5 		Subd. 12.Home visiting aid. (a) For home visiting aid under Minnesota Statutes, section 
57.6 	124D.135:

57.7		$
	462,000
	.....
	2022
	
57.8		$
	444,000
	.....
	2023
	
57.9 	(b) The 2022 appropriation includes $47,000 for fiscal year 2021 and $415,000 for fiscal 
57.10 	year 2022.
57.11 	(c) The 2023 appropriation includes $46,000 for fiscal year 2022 and $398,000 for fiscal 
57.12 	year 2023.
57.13 		Subd. 13.Reach Out and Read Minnesota. (a) For a grant to support Reach Out and 
57.14 	Read Minnesota to expand its statewide program that encourages early childhood 
57.15 	development through a network of health care clinics:

57.16		$
	150,000
	.....
	2022
	
57.17		$
	150,000
	.....
	2023
	
57.18 	(b) The grant recipient must implement a plan that includes:
57.19 	(1) integrating children's books and parent education into well-child visits;
57.20 	(2) creating literacy-rich environments at clinics, including books for visits outside of 
57.21 	Reach Out and Read Minnesota parameters or for waiting room use or volunteer readers to 
57.22 	model read-aloud techniques for parents where possible;
57.23 	(3) working with public health clinics, federally qualified health centers, Tribal sites, 
57.24 	community health centers, and clinics that belong to health care systems, as well as 
57.25 	independent clinics in underserved areas; and
57.26 	(4) training medical professionals on speaking with parents of infants, toddlers, and 
57.27 	preschoolers on the importance of early literacy.
57.28 	(c) Any balance in the first year does not cancel but is available in the second year.
57.29 		Subd. 14.Early childhood Tribal education and engagement grants. (a) For grants 
57.30 	to the 11 Tribal Nations located in Minnesota to provide programming and services for 
57.31 	parents and children who are enrolled or eligible for enrollment in a federally recognized 
58.1 	Tribe. Admission may not be limited to those enrolled or eligible for enrollment in a federally 
58.2 	recognized Tribe:

58.3		$
	3,300,000
	.....
	2022
	
58.4		$
	3,300,000
	.....
	2023
	
58.5 	(b) Grant funds must be used to support programming and services in one or more of 
58.6 	three focus areas:
58.7 	(1) implementing strategies to support comprehensive, authentic family engagement 
58.8 	and education;
58.9 	(2) implementing strategies to increase language and literacy outcomes through language 
58.10 	revitalization efforts; or
58.11 	(3) implementing strategies supporting the recruitment and retention of prospective 
58.12 	American Indian teachers and enhancing the practice of current American Indian teachers 
58.13 	and adults who work in Tribal communities through deep pedagogical professional 
58.14 	development.
58.15 	(c) Each Tribal Nation may apply to the department for grants of up to $100,000 per 
58.16 	focus area for a maximum amount of $285,000. Each Tribal Nation grant recipient must 
58.17 	submit an annual proposal to the commissioner that outlines specific strategies for providing 
58.18 	early childhood family engagement and education programs and outreach.
58.19 	(d) The department will provide technical assistance to the grant recipients by designing, 
58.20 	in collaboration with the 11 Tribal Nations, guidance that includes potential strategies and 
58.21 	examples of comprehensive, coherent approaches.
58.22 	(e) Each Tribe awarded a grant will submit an annual report to the commissioner on July 
58.23 	1 on the numbers of families and children participating and measurable outcomes on 
58.24 	engagement, language revitalization, and supporting American Indian teachers in Tribal 
58.25 	communities.
58.26 	(f) Up to five percent is reserved to the department for program and grant administration.
58.27 	(g) Any balance in the first year does not cancel but is available in the second year.

58.28 	ARTICLE 6
58.29 	APPROPRIATIONS; HEALTH AND HUMAN SERVICES

58.30	Section 1. HEALTH AND HUMAN SERVICES APPROPRIATIONS.
 	
58.31 	The sums shown in the columns marked "Appropriations" are appropriated to the agencies 
58.32 	and for the purposes specified in this article. The appropriations are from the general fund, 
59.1 	or another named fund, and are available for the fiscal years indicated for each purpose. 
59.2 	The figures "2022" and "2023" used in this article mean that the appropriations listed under 
59.3 	them are available for the fiscal year ending June 30, 2022, or June 30, 2023, respectively. 
59.4 	"The first year" is fiscal year 2022. "The second year" is fiscal year 2023. "The biennium" 
59.5 	is fiscal years 2022 and 2023.

59.6				APPROPRIATIONS
	
59.7				Available for the Year
	
59.8				Ending June 30
	
59.9					2022
		2023

59.10
59.11	Sec. 2. COMMISSIONER OF HUMAN 
SERVICES

59.12	Subdivision 1.Total Appropriation
 	$
	160,654,000
	$
	168,241,000

59.13	Appropriations by Fund
	
59.14		2022
	2023
	
59.15	General
	160,654,000
	168,241,000
	
59.16 	The amounts that may be spent for each 
59.17 	purpose are specified in the following 
59.18 	subdivisions.

59.19	Subd. 2.Central Office; Operations

59.20	Appropriations by Fund
	
59.21	General
	1,185,000
	1,511,000
	
59.22 	(a) Ombudsperson for Child Care 
59.23 	Providers. $120,000 in fiscal year 2022 and 
59.24 	$126,000 in fiscal year 2023 are for an 
59.25 	ombudsperson for child care providers under 
59.26 	Minnesota Statutes, section 119B.27.
59.27 	(b) Base Level Adjustment. The general fund 
59.28 	base is increased by $1,511,000 in fiscal year 
59.29 	2024 and $152,000 in fiscal year 2025.

59.30
59.31	Subd. 3.Forecasted Programs; MFIP Child Care 
Assistance
 		103,559,000
		110,880,000

59.32
59.33	Subd. 4.Grant Programs; Basic Sliding Fee 
Child Care Assistance Grants
 		53,593,000
		53,593,000

59.34
59.35	Subd. 5.Grant Programs; Child Care 
Development Grants
 		2,317,000
		2,257,000
	
60.1 	(a) TEACH Grant Program. $500,000 in 
60.2 	fiscal year 2022 and $500,000 in fiscal year 
60.3 	2023 are for TEACH program grants under 
60.4 	Minnesota Statutes, section 136A.128.
60.5 	(b) Peer Mentoring Program for Licensed 
60.6 	Family Child Care Providers. $30,000 in 
60.7 	fiscal year 2022 and $20,000 in fiscal year 
60.8 	2023 are for a grant to the Minnesota Child 
60.9 	Care Provider Information Network for 
60.10 	establishing a peer mentoring program for 
60.11 	licensed family child care providers in the 
60.12 	state. The grant money must be used to revise 
60.13 	and update peer mentoring program curricula, 
60.14 	recruit and train mentors and program 
60.15 	participants, and support mentors and active 
60.16 	mentoring. The Minnesota Child Care 
60.17 	Provider Information Network must submit 
60.18 	to the commissioner an initial report 
60.19 	describing the program's implementation 
60.20 	progress and financial accounting by 
60.21 	September 1, 2022, and a final report must be 
60.22 	submitted by June 30, 2023. Any unexpended 
60.23 	balance in the first year does not cancel and 
60.24 	is available in the second year. This is a 
60.25 	onetime appropriation.
60.26 	(c) Report on Foster Children Participation 
60.27 	in Early Childhood Programs. $50,000 in 
60.28 	fiscal year 2022 is for interim and final reports 
60.29 	on foster children's participation in early 
60.30 	childhood programs. This is a onetime 
60.31 	appropriation and is available until June 30, 
60.32 	2023.
60.33 	(d) Child Care Center Regulation 
60.34 	Modernization. $577,000 in fiscal year 2022 
60.35 	and $741,000 in fiscal year 2023 are for the 
61.1 	child care center regulation modernization 
61.2 	project. This is a onetime appropriation and 
61.3 	remains available until June 30, 2024.
61.4 	(e) Family Child Care Regulation 
61.5 	Modernization. $478,000 in fiscal year 2022 
61.6 	and $642,000 in fiscal year 2023 are for the 
61.7 	family child care regulation modernization 
61.8 	project. This is a onetime appropriation and 
61.9 	remains available until June 30, 2024.
61.10 	(f) Base Level Adjustment. The general fund 
61.11 	base is $2,237,000 in fiscal year 2024 and 
61.12 	$2,237,000 in fiscal year 2025.

61.13 	Sec. 3. DIRECTION TO THE COMMISSIONER OF HUMAN SERVICES; CHILD 
61.14 	CARE AND DEVELOPMENT BLOCK GRANT ALLOCATION.
 61.15 	(a) The commissioner of human services shall allocate $212,400,000 from the child care 
61.16 	development block grant amount in the federal fund as follows:
61.17 	(1) $1,650,000 for the quality rating and improvement system's evaluation under 
61.18 	Minnesota Statutes, section 124D.142, subdivision 3; and
61.19 	(2) the remaining amount to reprioritize the basic sliding fee program waiting list under 
61.20 	Minnesota Statutes, section 119B.03, to increase child care assistance rates for legal, 
61.21 	nonlicensed family child care providers under Minnesota Statutes, section 119B.13, 
61.22 	subdivision 1a, and to increase child care assistance rates under Minnesota Statutes, section 
61.23 	119B.13, subdivision 1, paragraph (a), to the 50th percentile of the most recent market rate 
61.24 	survey. The commissioner may not increase the rate differential percentage established 
61.25 	under Minnesota Statutes, section 119B.13, subdivision 3a or 3b.
61.26 	(b) Each year, an amount equal to at least 88 percent of the federal discretionary funding 
61.27 	in the Child Care Development Block Grant of 2014, Public Law 113-186, in federal fiscal 
61.28 	year 2018 above the amounts authorized in federal fiscal year 2017, not to exceed the cost 
61.29 	of rate adjustments, shall be allocated to pay the cost of rate adjustments based on the most 
61.30 	recent market survey.
61.31 	(c) When increased federal discretionary child care development block grant funding is 
61.32 	used to pay for the rate increase under paragraph (a), the commissioner, in consultation with 
61.33 	the commissioner of management and budget, may adjust the amount of working family 
62.1 	credit expenditures as needed to meet the state's maintenance of effort requirements for the 
62.2 	TANF block grant.

62.3 	Sec. 4. DIRECTION TO THE COMMISSIONER OF HUMAN SERVICES; CHILD 
62.4 	CARE STABILIZATION.
 62.5 	The commissioner shall allocate $325,000,000 from the child care development block 
62.6 	grant amount in the federal fund for the following purposes:
62.7 	(1) $1,500,000 for the Children's Cabinet to conduct an evaluation of the use of federal 
62.8 	money on early care and learning programs;
62.9 	(2) $500,000 to award grants to community-based organizations working with family, 
62.10 	friend, and neighbor caregivers, with a particular emphasis on such caregivers serving 
62.11 	children from low-income families, families of color, Tribal communities, or families with 
62.12 	limited English language proficiency, to promote healthy development, social-emotional 
62.13 	learning, early literacy, and school readiness;
62.14 	(3) $100,000 for a grant program to test strategies by which family child care providers 
62.15 	could share services;
62.16 	(4) $500,000 for competitive grants to expand access to child care for children with 
62.17 	disabilities;
62.18 	(5) $5,000,000 for child care improvement grants under Minnesota Statutes, section 
62.19 	119B.25;
62.20 	(6) $5,000,000 for administering the monthly grants under clause (7); and
62.21 	(7) the remaining amount to award monthly grants, between July 1, 2021, and June 30, 
62.22 	2023, to providers of early care and education to support the stability of the sector, with 
62.23 	providers required to direct 75 percent of such grants to employees or other individuals 
62.24 	providing early care and education services.

62.25 	Sec. 5. FEDERAL FUNDS REPLACEMENT; APPROPRIATION.
 62.26 	Notwithstanding any law to the contrary, the commissioner of management and budget 
62.27 	must determine whether the expenditures authorized under this act are eligible uses of federal 
62.28 	funding received under the Coronavirus State Fiscal Recovery Fund or any other federal 
62.29 	funds received by the state under the American Rescue Plan Act, Public Law 117-2. If the 
62.30 	commissioner of management and budget determines an expenditure is eligible for funding 
62.31 	under Public Law 117-2, the amount of the eligible expenditure is appropriated from the 
63.1 	account where those amounts have been deposited and the corresponding general fund 
63.2 	amounts appropriated under this act are canceled to the general fund.

63.3 	EFFECTIVE DATE. This section is effective the day following final enactment.

APPENDIX 

Repealed Minnesota Statutes: H2230-1 

119B.04 FEDERAL CHILD CARE AND DEVELOPMENT FUND.Subdivision 1.Commissioner to administer program. 
The commissioner is authorized and directed to receive, administer, and expend funds available under the child care and development fund under Public Law 104-193, Title VI. 

Subd. 2.Rulemaking authority. 
The commissioner may adopt rules under chapter 14 to administer the child care and development fund. 

119B.125 PROVIDER REQUIREMENTS.Subd. 5.Provisional payment. 
After a county receives a completed application from a provider, the county may issue provisional authorization and payment to the provider during the time needed to determine whether to give final authorization to the provider. 

Repealed Minnesota Session Laws: H2230-1 

Laws 2017, First Special Session chapter 5, article 8, section 9
Sec. 9. SCHOOL READINESS PLUS PROGRAM. Subdivision 1.Establishment; purpose. 
A district, a charter school, or a group of districts and charter schools may establish a school readiness plus program for children age four to kindergarten entrance. The purpose of a school readiness plus program is to prepare children for success as they enter kindergarten in the following year. 

Subd. 2.Program requirements. 
A school readiness plus program provider must:  

(1) assess each child's cognitive and language skills with a comprehensive child assessment instrument when the child enters and again before the child leaves the program to improve program planning and implementation, communicate with parents, and promote kindergarten readiness; 

(2) provide comprehensive program content and intentional instructional practice aligned with the state early childhood learning guidelines and kindergarten standards and based on early childhood research and professional practice that is focused on children's cognitive, social, emotional, and physical skills and development and prepares children for the transition to kindergarten, including early literacy and language skills; 

(3) coordinate appropriate kindergarten transition with parents and kindergarten teachers; 

(4) involve parents in program planning and decision making; 

(5) coordinate with relevant community-based services;  

(6) cooperate with adult basic education programs and other adult literacy programs; 

(7) ensure staff-to-child ratios of one-to-ten and a maximum group size of 20 children with at least one licensed teacher; 

(8) have teachers knowledgeable in early childhood curriculum content, assessment, native and English language development programs, and instruction; and 

(9) provide instructional content and activities that are of sufficient length and intensity to address learning needs including offering a program with at least 350 hours of instruction per school year. 

Subd. 3.Mixed delivery of services. 
A district or charter school may contract with a charter school, Head Start or child care center, family child care program licensed under Minnesota Statutes, section 245A.03, or a community-based organization to provide eligible children with developmentally appropriate services that meet the program requirements in subdivision 2. 

Subd. 4.Eligibility. 
(a) A child who is four years of age as of September 1 in the calendar year in which the school year commences and has one or more of the risk factors under paragraph (b) is eligible to participate in a school readiness plus program free of charge. A child who is four years of age as of September 1 in the calendar year in which the school year commences and does not have one or more of the risk factors under paragraph (b) may participate on a fee-for-service basis. A district must adopt a sliding fee schedule based on a family's income but must waive a fee for a participant unable to pay. School districts and charter schools must use school readiness plus aid for eligible children.  Each eligible child must complete a health and developmental screening within 90 days of program enrollment under Minnesota Statutes, sections 121A.16 to 121A.19, and provide documentation of required immunizations under section 121A.15. 

(b) An at-risk four-year-old child may participate in the school readiness plus program free of charge if the child: 

(1) qualifies for free or reduced-price lunch; 

(2) is an English language learner; 

(3) is homeless;  

(4) has an individualized education program, or individual interagency intervention plan; 

(5) is identified through health and developmental screening under Minnesota Statutes, sections 121A.16 to 121.19, with a potential risk factor that may influence learning; or  

(6) is in foster care. 

Subd. 5.Application process; priority for high poverty schools. 
(a) For 2017-2018 school year, a school district or charter school that did not apply to participate in a voluntary prekindergarten program under Minnesota Statutes, section 124D.151, may apply to the commissioner by July 1, 2017, to participate in a school readiness plus program in the form and manner specified by the commissioner. By June 15, 2017, the commissioner must notify districts and charter schools of the availability of additional money for voluntary prekindergarten and school readiness plus programs. A school district or charter school that previously applied to participate in a voluntary prekindergarten program may amend its application by July 1, 2017, to apply instead for school readiness plus. The commissioner must review all applications for school readiness plus and notify applicant districts and charter schools by August 1, 2017, whether they have been selected for participation. 

(b) For the 2018-2019 school year, a school district or charter school may apply to the commissioner by January 30, 2018, to participate in school readiness plus in the form and manner specified by the commissioner.   

(c) A district or charter school submitting an application under this section 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; (3) the number of children being served that will be new to the program;  and (4) a statement of assurances signed by the superintendent or charter school director that the proposed program meets the requirements of subdivision 2. 

(d) The commissioner must award funding for school readiness plus programs across school districts and charter schools in the same manner as for the voluntary prekindergarten program. 

(e) A school site or mixed-delivery site approved for aid under this subdivision remains eligible for aid if the site continues to meet program requirements, regardless of changes in the concentration of students eligible for free or reduced-price lunches. 

Subd. 6.No supplanting. 
For a site first qualifying in fiscal year 2018 or 2019, mixed delivery revenue, including voluntary prekindergarten and school readiness plus program revenue, must be used to supplement not supplant existing state, federal, and local revenue for prekindergarten activities. 

EFFECTIVE DATE. 
This section is effective the day following final enactment.