HF 3681

as introduced - 93rd Legislature (2023 - 2024) Posted on 02/26/2024 04:13pm

A bill for an act
relating to child care; tax data; establishing a program to assist families with the
cost of child care; authorizing the disclosure of tax return information for purposes
of verifying eligibility for early child care and learning benefits programs;
appropriating money; amending Minnesota Statutes 2022, section 270B.14, by
adding a subdivision; Minnesota Statutes 2023 Supplement, section 119B.99,
subdivision 2; proposing coding for new law in Minnesota Statutes, chapter 124D.

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

Section 1.

Minnesota Statutes 2023 Supplement, section 119B.99, 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
124D.165; 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 119B.03 or 119B.05 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 124D.142; 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 124D.1651;
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 119B.03 and 119B.05 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.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 2.

new text begin [124D.1651] 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 Department of Education 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, as established under
section 119B.99.
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 124D.165, subdivision 2, paragraph (b),
who is not concurrently a recipient of child care assistance under chapter 119B, or an early
learning scholarship under section 124D.165.
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 funds are 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 121A.16 to 121A.19, 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 121A.16 to 121A.19, 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 meet the eligibility
criteria in section 124D.165, subdivision 4, paragraph (a).
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 department 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 department 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 department 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 department 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 $25 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 department 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 any 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) pay prospectively prior to 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. The process must allow an eligible program to:
new text end

new text begin (i) retain a scholarship payment for a month in which a scholarship recipient leaves the
program before the end of the month; and
new text end

new text begin (ii) receive a prorated scholarship payment for a scholarship recipient for the month in
which the recipient transfers to the program.
new text end

new text begin (b) Payments to eligible programs for scholarships awarded under this section must start
no later than September 1, 2024.
new text end

new text begin Subd. 7. new text end

new text begin Family notifications. new text end

new text begin (a) The department 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 as state-provided assistance the portion of a
scholarship recipient's tuition that is paid for under this section 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. Funds 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 department for great start
affordability scholarships under this section. Any returned funds are available to be regranted.
new text end

new text begin (c) The department may use up to seven percent of the funds 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 department, of
the total scholarship payment made to the eligible program.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 3.

Minnesota Statutes 2022, section 270B.14, is amended by adding a subdivision to
read:

new text begin Subd. 23. new text end

new text begin Disclosure to Department of Education. new text end

new text begin The commissioner may disclose
to the commissioner of education the minimum return information necessary for the
commissioner of education to verify an individual's income for purposes of determining the
individual's eligibility for early child care and learning benefits programs administered by
the Department of Education. The commissioner may enter into data sharing agreements
with the commissioner of education to make the disclosures authorized by this subdivision.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 4. new text begin TRANSFER OF SCHOLARSHIP RESPONSIBILITIES TO DEPARTMENT
OF CHILDREN, YOUTH, AND FAMILIES.
new text end

new text begin The responsibilities and authorities under Minnesota Statutes, section 124D.1651, shall
transfer to the Department of Children, Youth, and Families once the department is
operational. The revisor of statutes shall renumber Minnesota Statutes, section 124D.1651,
with other early care and learning programs if legislation is enacted during the 2024
legislative session recodifying early care and learning statutes.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 5. new text begin TRANSFER OF DATA SHARING RESPONSIBILITIES TO DEPARTMENT
OF CHILDREN, YOUTH, AND FAMILIES.
new text end

new text begin The responsibilities and authorities assigned to the commissioner of education under
Minnesota Statutes, section 270B.14, subdivision 23, shall transfer to the commissioner of
the Department of Children, Youth, and Families once the department is operational.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 6. new text begin APPROPRIATION; DEPARTMENT OF EDUCATION.
new text end

new text begin Subdivision 1. new text end

new text begin Department of Education. new text end

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

new text begin Subd. 2. new text end

new text begin Great start affordability scholarships. new text end

new text begin (a) For the great start affordability
scholarships program under Minnesota Statutes, section 124D.1651:
new text end

	new text begin $ new text end	new text begin ....... new text end	new text begin ..... new text end	new text begin 2024 new text end
	new text begin $ new text end	new text begin ....... new text end	new text begin ..... new text end	new text begin 2025 new text end

new text begin (b) This appropriation is subject to the requirements under Minnesota Statutes, section
124D.1651, subdivision 8.
new text end

new text begin (c) The base for fiscal year 2026 is $....... and the base for fiscal year 2027 is $.......
new text end

new text begin (d) The department shall transfer all of the appropriation to the Department of Children,
Youth, and Families once the Department of Children, Youth, and Families is operational.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end