1.1 	A bill for an act
1.2 	relating to child care programs; requiring underperforming school districts to have 
1.3 	their prekindergarten programs evaluated by the Parent Aware program;amending 
1.4 	Minnesota Statutes 2024, sections 142D.05, subdivision 3; 142D.13, subdivision 
1.5 	2.
1.6 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.7 	Section 1. Minnesota Statutes 2024, section 142D.05, subdivision 3, is amended to read:
1.8 		Subd. 3.Application and reporting requirements. (a) A school readiness program 
1.9 	provider must include a biennial plan in the district's comprehensive achievement and civic 
1.10 	readiness plan under section 120B.11, describing how the school readiness program meets 
1.11 	the program requirements under subdivision 3.
1.12 	(b) Programs receiving school readiness funds annually must submit a report to the 
1.13 	department of education for transfer to the department of children, youth, and families.
1.14 	(c) Programs run by a district or districts that are below the average of Minnesota school 
1.15 	districts in a composite of the performance measures in section 120B.11, subdivision 1a, 
1.16 	clauses (1) to (4), do not meet requirements for receiving a school-based program rating 
1.17 	under the Quality Rating and Improvement System and must qualify under section 142D.13. 
1.18 	The commissioner of education shall create a formula to determine the composite for this 
1.19 	paragraph and inform the commissioner of children, youth, and families which districts 
1.20 	scored below the state average by August 1 of each year.

2.1 	Sec. 2. Minnesota Statutes 2024, section 142D.13, subdivision 2, is amended to read:
2.2 		Subd. 2.System components. (a) The standards-based voluntary quality rating and 
2.3 	improvement system includes:
2.4 	(1) effective July 1, 2026, at least a one-star rating for all programs licensed under 
2.5 	Minnesota Rules, chapter 9502 or 9503,; school readiness programs that are required to 
2.6 	qualify according to section 142D.05, subdivision 3, paragraph (c); or Tribally licensed that 
2.7 	do not opt out of the system under paragraph (b) and that are not:
2.8 	(i) the subject of a finding of fraud for which the program or individual is currently 
2.9 	serving a penalty or exclusion;
2.10 	(ii) prohibited from receiving public funds under section 142A.12, regardless of whether 
2.11 	the action is under appeal;
2.12 	(iii) under revocation, suspension, temporary immediate suspension, or decertification, 
2.13 	or is operating under a conditional license, regardless of whether the action is under appeal; 
2.14 	or
2.15 	(iv) the subject of suspended, denied, or terminated payments to a provider under section 
2.16 	142E.17, subdivision 9, paragraph (d), clause (1) or (2); 142E.51, subdivision 7, paragraph 
2.17 	(c), clause (4); or 256.98, subdivision 1, regardless of whether the action is under appeal;
2.18 	(2) quality opportunities in order to improve the educational outcomes of children so 
2.19 	that they are ready for school;
2.20 	(3) a framework based on the Minnesota quality rating system rating tool and a common 
2.21 	set of child outcome and program standards informed by evaluation results;
2.22 	(4) a tool to increase the number of publicly funded and regulated early learning and 
2.23 	care services in both public and private market programs that are high quality;
2.24 	(5) voluntary participation ensuring that if a program or provider chooses to participate, 
2.25 	the program or provider will be rated and may receive public funding associated with the 
2.26 	rating; and
2.27 	(6) tracking progress toward statewide access to high-quality early learning and care 
2.28 	programs, progress toward the number of low-income children whose parents can access 
2.29 	quality programs, and progress toward increasing the number of children who are fully 
2.30 	prepared to enter kindergarten.
2.31 	(b) By July 1, 2026, the commissioner of children, youth, and families shall establish a 
2.32 	process by which a program may opt out of the rating under paragraph (a), clause (1). The 
3.1 	commissioner shall consult with Tribes to develop a process for rating Tribally licensed 
3.2 	programs that is consistent with the goal outlined in paragraph (a), clause (1).