SF 2759

Introduction - 94th Legislature (2025 - 2026)

Posted on 03/28/2025 09:56 a.m.

A bill for an act
relating to child care; establishing a program to assist families with the cost of
child care; amending Minnesota Statutes 2024, section 142A.44, subdivision 2;
proposing coding for new law in Minnesota Statutes, chapter 142D.

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

Section 1.

Minnesota Statutes 2024, section 142A.44, subdivision 2, is amended to read:

Subd. 2.

Development.

In developing the plan and implementing the program under
this section, the commissioner shall:

(1) identify ways to integrate the functions, administrative structures, and funding
mechanisms of early care and learning programs administered by the state with the great
start scholarships program;

(2) consider the recommendations made by the Great Start for All Minnesota Children
Task Force under Laws 2021, First Special Session chapter 7, article 14, section 18,
subdivision 2;

(3) create a process and timeline to transition the following families to the great start
scholarships program by July 1, 2028:

(i) families with at least one child receiving an early learning scholarship under section
142D.25; deleted text begin and
deleted text end

(ii) families with at least one child who is not yet in kindergarten and is receiving child
care assistance under section 142E.04 or 142E.08 for care received from a provider licensed
under Minnesota Rules, chapter 9502 or 9503, or Tribally licensed, or a Head Start program
that has a rating under section 142D.13; new text begin and
new text end

new text begin (iii) families with at least one child receiving a great start affordability scholarship under
section 142D.26;
new text end

(4) create mechanisms for members of local communities, including families and members
of the early care and learning workforce, to have input in decisions regarding needs and
preferences for early care and learning options;

(5) develop a proposed method for funding early care and learning slots in response to
local need through contracts with eligible providers that may be used to deliver services
that meet quality and compensation standards with the intent to build early care and learning
capacity statewide for children from birth to kindergarten entry; and

(6) consider how to maximize available federal resources while maintaining access to
child care assistance funding under sections 142E.04 or 142E.08 for school-age children.
The commissioner, in consultation with an appropriate state agency, may seek federal
technical assistance or outside consultation as necessary to provide minimally burdensome
program access to all participating families.

Sec. 2.

new text begin [142D.26] GREAT START AFFORDABILITY SCHOLARSHIPS.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment; purpose. new text end

new text begin The commissioner of children, youth, and
families shall establish a great start affordability scholarship program. The purpose of the
program is to increase the affordability of high-quality early care and learning for families
with children from birth to kindergarten entry, to meet as near as possible the standard that
no Minnesota family pay more than seven percent of annual income for early care and
learning.
new text end

new text begin Subd. 2. new text end

new text begin Family and child eligibility. new text end

new text begin (a) For a family to receive a scholarship under
this section, parents or guardians must:
new text end

new text begin (1) have income less than 150 percent of the state median income; and
new text end

new text begin (2) have an eligible child as defined in section 142D.25, subdivision 2, paragraph (b),
who is not concurrently a recipient of child care assistance under chapter 142E, or an early
learning scholarship under section 142D.25.
new text end

new text begin (b) A child who receives a scholarship under this section must continue to receive the
scholarship each year until the child is eligible for kindergarten under section 120A.20,
provided the child's family complies with the renewal requirements in subdivision 4,
paragraph (b), and provided money is available.
new text end

new text begin (c) A child from an adjoining state whose family resides at a Minnesota address as
assigned by the United States Postal Service, who has received developmental screening
under sections 142D.09 to 142D.093, who intends to enroll in a Minnesota school district,
and whose family meets the criteria of paragraph (a) is eligible for a scholarship under this
section.
new text end

new text begin (d) A child who receives a scholarship under this section, is at least three years old, and
has not completed development screening under sections 142D.09 to 142D.093, must
complete that screening within 90 days of first attending an eligible program.
new text end

new text begin Subd. 3. new text end

new text begin Early care and learning program eligibility. new text end

new text begin (a) To be eligible to accept a
scholarship under this section, an early care and learning program must participate in the
quality rating and improvement system under section 142D.13.
new text end

new text begin (b) An early care and learning program accepting a scholarship under this section must
use the revenue to supplement and not supplant federal funding.
new text end

new text begin Subd. 4. new text end

new text begin Administration. new text end

new text begin (a) The commissioner shall establish application timelines
and procedures that meet the operational needs of eligible families.
new text end

new text begin (b) A scholarship is awarded for a 12-month period. To continue to receive a scholarship
for an eligible child, a family must renew a scholarship prior to the end of the award period.
The commissioner must establish a process by which a family may request a modification
in scholarship amount due to changes in the family's circumstances prior to renewing a
scholarship.
new text end

new text begin (c) The commissioner must cancel a scholarship for an eligible child under the following
conditions:
new text end

new text begin (1) the child has not been accepted and subsequently enrolled in an eligible program
within three months of the scholarship award;
new text end

new text begin (2) the child moves out of state;
new text end

new text begin (3) the child no longer has scholarship-eligible costs, fees, or tuition;
new text end

new text begin (4) the child's family is unresponsive for more than 30 days; or
new text end

new text begin (5) the child's family declines to continue to receive the scholarship.
new text end

new text begin Subd. 5. new text end

new text begin Scholarship amounts. new text end

new text begin The commissioner must establish a schedule of monthly,
per-child scholarship amounts based on family income. The minimum per-child scholarship
amount allowed under this section is $100 per month.
new text end

new text begin Subd. 6. new text end

new text begin Payment practices. new text end

new text begin (a) The commissioner must establish a system to make
scholarship payments to an eligible program selected by a scholarship recipient's family.
The payment system must:
new text end

new text begin (1) ensure that a program receives payment for services in accordance with a written
agreement completed by the program and the scholarship recipient's family that identifies
amounts awarded under this section as a state-provided benefit;
new text end

new text begin (2) make scholarship payments in advance of or at the beginning of the delivery of
services;
new text end

new text begin (3) make payments based on a child's enrollment rather than attendance; and
new text end

new text begin (4) include a process for transferring scholarship awards between eligible programs,
when initiated by a scholarship recipient. Under the process, the commissioner:
new text end

new text begin (i) may adjust scholarship payment schedules for eligible programs to account for changes
in a scholarship recipient's enrollment; and
new text end

new text begin (ii) must specify a period of time for which scholarship payments must continue to an
eligible program for a scholarship recipient who transfers to a different eligible program.
new text end

new text begin (b) Payments to eligible programs for scholarships awarded under this section must start
no later than July 1, 2026.
new text end

new text begin Subd. 7. new text end

new text begin Family notifications. new text end

new text begin (a) The commissioner must notify families in the state
about potential eligibility and the opportunity to apply for scholarships under this section.
new text end

new text begin (b) An eligible program must identify the portion of a scholarship recipient's tuition that
is paid for under this section as state-provided assistance on any tuition billing statements
provided to the recipient's family.
new text end

new text begin Subd. 8. new text end

new text begin Great start affordability scholarship account. new text end

new text begin (a) A great start affordability
scholarship account is established in the special revenue fund. Money appropriated for great
start affordability scholarships under this section must be transferred to the account in the
special revenue fund.
new text end

new text begin (b) Money in the account is annually appropriated to the commissioner for great start
affordability scholarships under this section. Any returned money is available to be regranted.
new text end

new text begin (c) The commissioner may use up to seven percent of the money under paragraph (b)
for costs associated with administering and monitoring the scholarships, including but not
limited to making payments to eligible programs for the administrative costs associated
with accepting scholarships under this section. The payment to an eligible program for
administrative costs must be based on a percentage, as determined by the commissioner, of
the total scholarship payment made to the eligible program.
new text end