1.1 	A bill for an act
1.2 	relating to education finance; early childhood education; modifying early learning 
1.3 	programs' eligibility to accept scholarships;amending Minnesota Statutes 2016, 
1.4 	section 124D.165, subdivision 4.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. Minnesota Statutes 2016, section 124D.165, subdivision 4, is amended to read:
1.7 		Subd. 4.Early childhood program eligibility. (a) In order to be eligible to accept an 
1.8 	early learning scholarship, a program must:
1.9 	(1) participate in the quality rating and improvement system under section 124D.142; 
1.10 	and
1.11 	(2) beginning July 1, 2016, have a three- or four-star rating in the quality rating and 
1.12 	improvement system.
1.13 	(b) Any program accepting scholarships must use the revenue to supplement and not 
1.14 	supplant federal funding.
1.15 	(c) Notwithstanding paragraph (a), all Minnesota early learning foundation scholarship 
1.16 	program pilot sites are eligible to accept an early learning scholarship under this section.
1.17 	(d) Notwithstanding paragraph (a), beginning September 1, 2017, a qualifying newly 
1.18 	opened program carries the rating of its affiliated program for its first two years of operation.
1.19 	(e) For purposes of this subdivision, "qualifying newly opened program" means a program 
1.20 	in its first two years of operation actively pursuing a rating whose on-site director has 
1.21 	managerial experience operating a three- or four-star rated program, and "affiliated program" 
2.1 	means a program with which the newly opened program shares an ownership or management 
2.2 	interest or is otherwise structurally linked.

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