SF 2393

as introduced - 92nd Legislature (2021 - 2022) Posted on 07/30/2021 03:35pm

A bill for an act
relating to human services; allocating funding for early learning scholarships and
child care assistance; modifying child care assistance funding priorities for eligible
families; adjusting allocation formula for basic sliding fee child care assistance
program; modifying definition of eligible child for early learning scholarship
program; establishing the retaining early educators through attaining incentives
now grant program; modifying certain early educator incentive programs;
establishing COVID-19 public health support funds for child care programs;
directing the commissioner of human services to evaluate the parent aware program;
requiring reports; allocating funds from the American Rescue Plan Act of 2021;
appropriating money; amending Minnesota Statutes 2020, sections 119B.03,
subdivisions 4, 6; 124D.142; 124D.165, subdivision 2; 136A.128, subdivisions 2,
4; proposing coding for new law in Minnesota Statutes, chapter 119B.

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

Section 1.

Minnesota Statutes 2020, section 119B.03, subdivision 4, is amended to read:

Subd. 4.

Funding priority.

(a) First priority for child care assistance under the basic
sliding fee program must be given to eligible non-MFIP families who do not have a high
school diploma or commissioner of education-selected high school equivalency certification
or who need remedial and basic skill courses in order to pursue employment or to pursue
education leading to employment and who need child care assistance to participate in the
education program. This includes student parents as defined under section 119B.011,
subdivision 19b. Within this priority, the following subpriorities must be used:

(1) child care needs of minor parents;

(2) child care needs of parents under 21 years of age; and

(3) child care needs of other parents within the priority group described in this paragraph.

(b) Second priority must be given to deleted text begin parents who have completed their MFIP or DWP
transition year, or parents who are no longer receiving or eligible for diversionary work
program supports deleted text end new text begin families in which at least one parent is a veteran, as defined under section
197.447 new text end .

(c) Third priority must be given to new text begin eligible new text end families who deleted text begin are eligible for portable basic
sliding fee assistance through the portability pool under subdivision 9 deleted text end new text begin do not meet the
specifications of paragraph (a), (b), (d), or (e) new text end .

(d) Fourth priority must be given to families deleted text begin in which at least one parent is a veteran as
defined under section 197.447 deleted text end new text begin who are eligible for portable basic sliding fee assistance
through the portability pool under subdivision 9 new text end .

new text begin (e) Fifth priority must be given to eligible families receiving services under section
119B.011, subdivision 20a, if the parents have completed their MFIP or DWP transition
year or if the parents are no longer receiving or eligible for DWP supports.
new text end

deleted text begin (e) deleted text end new text begin (f) new text end Families under paragraph deleted text begin (b) deleted text end new text begin (e) new text end must be added to the basic sliding fee waiting
list on the date they deleted text begin begin the deleted text end new text begin complete their new text end transition year under section 119B.011,
subdivision 20 deleted text begin , and must be moved into the basic sliding fee program as soon as possible
after they complete their transition year deleted text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2021.
new text end

Sec. 2.

Minnesota Statutes 2020, section 119B.03, subdivision 6, is amended to read:

Subd. 6.

Allocation formula.

The new text begin allocation component of new text end basic sliding fee state and
federal funds shall be allocated on a calendar year basis. Funds shall be allocated first in
amounts equal to each county's guaranteed floor according to subdivision 8, with any
remaining available funds allocated according to the following formula:

(a) One-fourth of the funds shall be allocated in proportion to each county's total
expenditures for the basic sliding fee child care program reported during the most recent
fiscal year completed at the time of the notice of allocation.

(b) Up to one-fourth of the funds shall be allocated in proportion to the number of families
participating in the transition year child care program as reported during and averaged over
the most recent six months completed at the time of the notice of allocation. Funds in excess
of the amount necessary to serve all families in this category shall be allocated according
to paragraph deleted text begin (f) deleted text end new text begin (e) new text end .

deleted text begin (c) Up to one-fourth of the funds shall be allocated in proportion to the average of each
county's most recent six months of reported first, second, and third priority waiting list as
defined in subdivision 2 and the reinstatement list of those families whose assistance was
terminated with the approval of the commissioner under Minnesota Rules, part 3400.0183,
subpart 1. Funds in excess of the amount necessary to serve all families in this category
shall be allocated according to paragraph (f).
deleted text end

deleted text begin (d) deleted text end new text begin (c) new text end Up to deleted text begin one-fourth deleted text end new text begin one-half new text end of the funds shall be allocated in proportion to the
average of each county's most recent deleted text begin six deleted text end new text begin 12 new text end months of reported waiting list as defined in
subdivision 2 and the reinstatement list of those families whose assistance was terminated
with the approval of the commissioner under Minnesota Rules, part 3400.0183, subpart 1.
Funds in excess of the amount necessary to serve all families in this category shall be
allocated according to paragraph deleted text begin (f) deleted text end new text begin (e) new text end .

deleted text begin (e) deleted text end new text begin (d) new text end The amount necessary to serve all families in paragraphs (b) deleted text begin , (c), deleted text end and deleted text begin (d) deleted text end new text begin (c) new text end shall
be calculated based on the basic sliding fee average cost of care per family in the county
with the highest cost in the most recently completed calendar year.

deleted text begin (f) deleted text end new text begin (e) new text end Funds in excess of the amount necessary to serve all families in paragraphs (b) deleted text begin ,
(c), deleted text end and deleted text begin (d) deleted text end new text begin (c) new text end shall be allocated in proportion to each county's total expenditures for the
basic sliding fee child care program reported during the most recent fiscal year completed
at the time of the notice of allocation.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2022. The 2022 calendar year
shall be a phase-in year for the allocation formula in this section using phase-in provisions
determined by the commissioner of human services.
new text end

Sec. 3.

new text begin [119B.195] RETAINING EARLY EDUCATORS THROUGH ATTAINING
INCENTIVES NOW (REETAIN) GRANT PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment; purpose. new text end

new text begin The retaining early educators through attaining
incentives now (REETAIN) grant program is established to provide competitive grants to
incentivize well-trained child care professionals to remain in the workforce. The overall
goal of the REETAIN grant program is to create more consistent care for children over time.
new text end

new text begin Subd. 2. new text end

new text begin Administration. new text end

new text begin The commissioner shall administer the REETAIN grant
program through a grant to a nonprofit with the demonstrated ability to manage benefit
programs for child care professionals. Up to ten percent of grant money may be used for
administration of the grant program.
new text end

new text begin Subd. 3. new text end

new text begin Application. new text end

new text begin Applicants must apply for the REETAIN grant program using
the forms and according to timelines established by the commissioner.
new text end

new text begin Subd. 4. new text end

new text begin Eligibility. new text end

new text begin (a) To be eligible for a grant, an applicant must:
new text end

new text begin (1) be licensed to provide child care or work for a licensed child care program;
new text end

new text begin (2) work directly with children at least 30 hours per week;
new text end

new text begin (3) have worked in the applicant's current position for at least 12 months;
new text end

new text begin (4) agree to work in the early childhood care and education field for at least 12 months
upon receiving a grant under this section;
new text end

new text begin (5) have a career lattice step of five or higher;
new text end

new text begin (6) have a current membership with the Minnesota quality improvement and registry
tool;
new text end

new text begin (7) not be a current teacher education and compensation helps scholarship recipient; and
new text end

new text begin (8) meet any other requirements determined by the commissioner.
new text end

new text begin (b) Grant recipients must sign a contract agreeing to remain in the early childhood care
and education field for 12 months.
new text end

new text begin Subd. 5. new text end

new text begin Grant awards. new text end

new text begin Grant awards must be made annually and may be made up to
an amount for each recipient determined by the commissioner. Grant recipients may use
grant money for program supplies, training, or personal expenses.
new text end

new text begin Subd. 6. new text end

new text begin Report. new text end

new text begin By January 1 of each year, the commissioner must report to the
legislative committees with jurisdiction over child care about the number of grants awarded
to recipients, and outcomes of the grant program since the last report.
new text end

Sec. 4.

Minnesota Statutes 2020, section 124D.142, is amended to read:

124D.142 QUALITY RATING AND IMPROVEMENT SYSTEM.

new text begin Subdivision 1. new text end

new text begin System established. new text end

deleted text begin (a) deleted text end There is established a quality rating and
improvement system (QRIS) framework new text begin , known as Parent Aware, new text end to ensure that Minnesota's
children have access to high-quality early learning and care programs in a range of settings
so that they are fully ready for kindergarten deleted text begin by 2020 deleted text end . deleted text begin Creation of a standards-based voluntary
quality rating and improvement system includes:
deleted text end

new text begin Subd. 2. new text end

new text begin System components. new text end

new text begin The standards-based, voluntary quality rating and
improvement system includes:
new text end

(1) quality opportunities in order to improve the educational outcomes of children so
that they are ready for school deleted text begin . The deleted text end new text begin ;
new text end

new text begin (2) a new text end framework deleted text begin shall be deleted text end based on the Minnesota quality rating system rating tool and
a common set of child outcome and program standards and informed by evaluation results;

deleted text begin (2) deleted text end new text begin (3) new text end a tool to increase the number of publicly funded and regulated early learning and
care services in both public and private market programs that are high quality deleted text begin . deleted text end new text begin ;
new text end

new text begin (4) voluntary participation that ensures that new text end if a program or provider chooses to participate,
the program or provider will be rated and may receive public funding associated with the
rating deleted text begin . The state shall develop a plan to link future early learning and care state funding to
the framework in a manner that complies with federal requirements deleted text end ; and

deleted text begin (3) deleted text end new text begin (5) new text end tracking progress toward statewide access to high-quality early learning and care
programs, progress toward the number of low-income children whose parents can access
quality programs, and progress toward increasing the number of children who are fully
prepared to enter kindergarten.

deleted text begin (b) In planning a statewide quality rating and improvement system framework in
paragraph (a), the state shall use evaluation results of the Minnesota quality rating system
rating tool in use in fiscal year 2008 to recommend:
deleted text end

deleted text begin (1) a framework of a common set of child outcome and program standards for a voluntary
statewide quality rating and improvement system;
deleted text end

deleted text begin (2) a plan to link future funding to the framework described in paragraph (a), clause (2);
and
deleted text end

deleted text begin (3) a plan for how the state will realign existing state and federal administrative resources
to implement the voluntary quality rating and improvement system framework. The state
shall provide the recommendation in this paragraph to the early childhood education finance
committees of the legislature by March 15, 2011.
deleted text end

deleted text begin (c) Prior to the creation of a statewide quality rating and improvement system in paragraph
(a), the state shall employ the Minnesota quality rating system rating tool in use in fiscal
year 2008 in the original Minnesota Early Learning Foundation pilot areas and additional
pilot areas supported by private or public funds with its modification as a result of the
evaluation results of the pilot project.
deleted text end

new text begin Subd. 3. new text end

new text begin Evaluation. new text end

new text begin (a) By February 1, 2022, the commissioner of human services
must arrange an independent evaluation of the quality rating and improvement system's
effectiveness and impact on:
new text end

new text begin (1) children's progress toward school readiness;
new text end

new text begin (2) the quality of the early learning and care system supply and workforce; and
new text end

new text begin (3) parents' ability to access and use meaningful information about early learning and
care program quality.
new text end

new text begin (b) The evaluation must be performed by a staff member from another agency or a
consultant. An evaluator must have experience in program evaluation and must not be
regularly involved in implementation of the quality rating and improvement system.
new text end

new text begin (c) The evaluation findings, along with the commissioner's recommendations for
revisions, potential future evaluations, and plans for continuous improvement, must be
reported to the chairs and ranking members of the legislative committees with jurisdiction
over early childhood programs by December 31, 2024.
new text end

new text begin (d) At a minimum, the evaluation must:
new text end

new text begin (1) analyze the effectiveness of the quality rating and improvement system, including
but not limited to reviewing:
new text end

new text begin (i) whether quality indicators and measures used in the quality rating and improvement
system are consistent with evidence and research findings on early learning and care program
quality; and
new text end

new text begin (ii) patterns or differences in observed quality of participating early learning and care
programs compared to programs at other quality rating and improvement system star rating
levels and accounting for other factors;
new text end

new text begin (2) perform evidence-based assessments of children's developmental gains in ways that
are appropriate for children's linguistic and cultural backgrounds and are aligned with the
state early childhood indicators of progress;
new text end

new text begin (3) analyze the extent to which differences in developmental gains among children
correspond to the star ratings of the early learning and care programs, providing disaggregated
findings by:
new text end

new text begin (i) children's demographic factors, including geographic area, family income level, and
racial and ethnic groups;
new text end

new text begin (ii) type of provider, including family child care providers, child care centers, Head Start
and Early Head Start, and school-based early childhood providers; and
new text end

new text begin (iii) any other categories identified by the commissioner, in consultation with the
commissioners of health and education or entity performing the evaluation;
new text end

new text begin (4) analyze the accessibility for providers to participate in the quality rating and
improvement system, including ease of application and supports for a provider to receive
or improve a rating, and provide disaggregated findings by geographic area and type of
provider, including family child care providers, child care centers, Head Start and Early
Head Start, and school-based early childhood providers; and
new text end

new text begin (5) analyze the availability of providers participating in the quality rating and
improvement system to families, and provide disaggregated findings by geographic area
and type of provider, including family child care providers, child care centers, Head Start
and Early Head Start, and school-based early childhood providers.
new text end

Sec. 5.

Minnesota Statutes 2020, section 124D.165, subdivision 2, is amended to read:

Subd. 2.

Family eligibility.

(a) For a family to receive an early learning scholarship,
parents or guardians must meet the following eligibility requirements:

(1) have an eligible child; and

(2) have income equal to or less than 185 percent of federal poverty level income in the
current calendar year, or be able to document their child's current participation in the free
and reduced-price lunch program or Child and Adult Care Food Program, National School
Lunch Act, United States Code, title 42, sections 1751 and 1766; the Food Distribution
Program on Indian Reservations, Food and Nutrition Act, United States Code, title 7, sections
2011-2036; Head Start under the federal Improving Head Start for School Readiness Act
of 2007; Minnesota family investment program under chapter 256J; child care assistance
programs under chapter 119B; the supplemental nutrition assistance program; or placement
in foster care under section 260C.212.

(b) An "eligible child" means a child who has not yet enrolled in kindergarten and is:

(1) at least three but not yet deleted text begin five deleted text end new text begin six new text end years of age on September 1 of the current school
year;

(2) a sibling from birth to age deleted text begin five deleted text end new text begin six new text end of a child who has been awarded a scholarship
under this section provided the sibling attends the same program as long as funds are
available;

(3) the child of a parent under age 21 who is pursuing a high school degree or a course
of study for a high school equivalency test; or

(4) homeless, in foster care, or in need of child protective services.

(c) A child who has received a scholarship under this section must continue to receive
a scholarship each year until that child is eligible for kindergarten under section 120A.20
and as long as funds are available.

(d) Early learning scholarships may not be counted as earned income for the purposes
of medical assistance under chapter 256B, MinnesotaCare under chapter 256L, Minnesota
family investment program under chapter 256J, child care assistance programs under chapter
119B, or Head Start under the federal Improving Head Start for School Readiness Act of
2007.

(e) 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 an early learning
scholarship under this section.

Sec. 6.

Minnesota Statutes 2020, section 136A.128, subdivision 2, is amended to read:

Subd. 2.

Program components.

(a) The nonprofit organization must use the grant for:

(1) tuition scholarships up to deleted text begin $5,000 deleted text end new text begin $10,000 new text end per year for courses leading to the nationally
recognized child development associate credential or college-level courses leading to an
associate's new text begin degree new text end or bachelor's degree in early childhood development and school-age care;
and

(2) education incentives of a minimum of deleted text begin $100 deleted text end new text begin $250 new text end to participants in the tuition
scholarship program if they complete a year of working in the early care and education
field.

(b) Applicants for the scholarship must be employed by a licensed early childhood or
child care program and working directly with children, a licensed family child care provider, new text begin
employed by a public prekindergarten program, new text end or an employee in a school-age program
exempt from licensing under section 245A.03, subdivision 2, paragraph (a), clause (12).
Lower wage earners must be given priority in awarding the tuition scholarships. Scholarship
recipients must contribute new text begin at least new text end ten percent of the total scholarship and must be sponsored
by their employers, who must also contribute deleted text begin ten deleted text end new text begin at least five new text end percent of the total scholarship.
Scholarship recipients who are self-employed must contribute 20 percent of the total
scholarship.

Sec. 7.

Minnesota Statutes 2020, section 136A.128, subdivision 4, is amended to read:

Subd. 4.

Administration.

A nonprofit organization that receives a grant under this
section may use deleted text begin five deleted text end new text begin ten new text end percent of the grant amount to administer the program.

Sec. 8. new text begin COVID-19 PUBLIC HEALTH SUPPORT FUNDS FOR CHILD CARE
PROGRAMS.
new text end

new text begin Subdivision 1. new text end

new text begin Public health support funds. new text end

new text begin (a) The commissioner of human services
shall distribute COVID-19 public health support funds to eligible child care programs to
support the higher costs to operate safely as defined by state and federal public health
guidance, including but not limited to efforts to create smaller and consistent child groupings,
screening procedures, quarantine periods, cleaning and sanitation, additional sick leave,
substitute teachers, supports for distance learning and incentive pay, and other public health
measures that prevent transmission of COVID-19 and protect families and staff.
new text end

new text begin (b) The commissioner shall distribute monthly base grant awards under subdivision 4
for a distribution period beginning June 2021 until either December 2021, until one month
following the end of the peacetime emergency declared in response to the COVID-19
pandemic, or until funds are no longer available, whichever is sooner.
new text end

new text begin (c) The commissioner shall distribute monthly bonus grant payments under subdivision
5 for a distribution period beginning June 2021 through September 30, 2023.
new text end

new text begin Subd. 2. new text end

new text begin Eligible programs. new text end

new text begin (a) The following programs are eligible to receive public
health support funds under this section:
new text end

new text begin (1) family and group family day care homes licensed under Minnesota Rules, chapter
9502;
new text end

new text begin (2) child care centers licensed under Minnesota Rules, chapter 9503;
new text end

new text begin (3) certified license-exempt child care centers under Minnesota Statutes, chapter 245H;
and
new text end

new text begin (4) tribally licensed child care programs.
new text end

new text begin (b) Programs must not be:
new text end

new text begin (1) the subject of a finding of fraud;
new text end

new text begin (2) prohibited from receiving public funds under Minnesota Statutes, section 245.095;
or
new text end

new text begin (3) under revocation, suspension, temporary immediate suspension, or decertification,
regardless of whether the action is under appeal.
new text end

new text begin (c) Public health support funds under this section must be made available to all eligible
programs on a noncompetitive basis.
new text end

new text begin Subd. 3. new text end

new text begin Requirements to receive public health support funds. new text end

new text begin (a) To receive funds
under this section, an eligible program must complete a monthly application for COVID-19
public health support funds, attesting and agreeing in writing that the program has been
operating and serving children during each month's funding period. An applicant program
must further attest and agree in writing that the program intends to remain operating and
serving children through the remainder of each month's funding period. Exceptions to this
operating requirement are:
new text end

new text begin (1) service disruptions that are necessary due to public health guidance to protect the
safety and health of children and child care programs issued by the Centers for Disease
Control and Prevention, commissioner of health, commissioner of human services, or a
local public health agency; and
new text end

new text begin (2) planned temporary closures for provider vacation and holidays for up to three weeks
over the duration of the funding months from June 1, 2021, to December 31, 2021, but not
sequentially.
new text end

new text begin Temporary closures must be reported to the Department of Human Services using a form
prescribed by the commissioner. For licensed and certified centers, only temporary closures
of the entire program need to be reported; classroom closures or other operating adjustments
do not need to be reported.
new text end

new text begin (b) Providers who close permanently for any reason are subject to recovery of funds for
any period of time after program closure. Permanent closures must be reported to the
Department of Human Services using a form prescribed by the commissioner.
new text end

new text begin (c) Notwithstanding paragraphs (a) and (b), if the commissioner determines that the
temporary or permanent closure of one program is undertaken to ensure the continued
availability of services to children by another program, the commissioner may issue the
closed program's public health support funds to the program that has agreed to accept the
children previously cared for by the closed program whether or not all the children choose
to go to the remaining program and whether or not the remaining program is already receiving
public health support funds.
new text end

new text begin (d) To receive funds under this section, an eligible program must:
new text end

new text begin (1) continue to comply with all other requirements listed in the application for 2021
COVID-19 public health support funds; and
new text end

new text begin (2) prioritize use of the funds during the monthly award periods, and use the funds to
cover costs incurred during the peacetime emergency declared by the governor relating to
COVID-19.
new text end

new text begin Subd. 4. new text end

new text begin Maximum base payment to programs. new text end

new text begin (a) An eligible family child care
program may receive up to $1,200 in monthly public health support funds.
new text end

new text begin (b) An eligible licensed child care center may receive up to $8,500 in monthly public
health support funds.
new text end

new text begin (c) An eligible certified child care center may receive up to $3,000 in monthly public
health support funds.
new text end

new text begin (d) The commissioner of human services shall calculate monthly base payment amounts
that are based upon the changing needs of providers to comply with public health guidance
but do not exceed the amounts in paragraphs (a) to (c).
new text end

new text begin Subd. 5. new text end

new text begin Bonus payment to programs. new text end

new text begin (a) An eligible child care provider may receive
a monthly bonus payment if the provider meets one or both of the following criteria:
new text end

new text begin (1) the program currently operates or begins to operate in an area of the state with a
documented shortage of child care providers based on the current licensed capacity in the
area compared to the estimated number of children under age six with both parents working;
or
new text end

new text begin (2) the program serves children from families that qualify for the child care assistance
program under Minnesota Statutes, section 119B.03 or 119B.05, children from families that
qualify for early learning scholarships under Minnesota Statutes, section 124D.165, or
children with disabilities or who are otherwise in need of special assistance or support.
new text end

new text begin (b) The amount of a provider's bonus payment may be multiplied by a factor to be
determined by the commissioner of human services that corresponds with the program's
star rating in the Parent Aware program under Minnesota Statutes, section 124D.142.
new text end

new text begin (c) The commissioner of human services shall determine the amounts of each type of
bonus payment in paragraph (a). The amount for a bonus payment under paragraph (a),
clause (1), shall be proportionate to the number of children served by the program. The
amount for a bonus payment under paragraph (a), clause (2), shall be based upon the number
of program slots filled by children that meet the criteria. The multiplication factor under
paragraph (b) shall be tiered based upon the program's star rating in the quality rating and
improvement system under Minnesota Statutes, section 124D.142, with a four-star rating
receiving the highest multiplication factor.
new text end

Sec. 9. new text begin CHILD CARE AND DEVELOPMENT BLOCK GRANT ALLOCATION;
TRANSFER FUNDS FOR EARLY LEARNING SCHOLARSHIPS.
new text end

new text begin The commissioner of human services shall allocate $73,000,000 in fiscal year 2022 and
$73,000,000 in fiscal year 2023 from the amount Minnesota received under the American
Rescue Plan Act for the child care and development block grant, to be transferred to the
commissioner of education for the early learning scholarship program under Minnesota
Statutes, section 124D.165. For purposes of expending federal resources, the commissioner
of human services shall consult with the commissioner of education to ensure that the
transferred resources are deployed to support prioritized groups of children, including but
not limited to the groups identified in Minnesota Statutes, section 124D.165, while identifying
and implementing any other necessary changes to maintain compliance with the federal
child care and development block grant requirements.
new text end

Sec. 10. new text begin CHILD CARE AND DEVELOPMENT BLOCK GRANT ALLOCATION;
CHILD CARE ASSISTANCE PROGRAM BASIC SLIDING FEE WAITING LIST.
new text end

new text begin The commissioner of human services shall allocate up to $33,000,000 in fiscal year 2022
and up to $33,000,000 in fiscal year 2023 from the amount Minnesota received under the
American Rescue Plan Act for the child care and development block grant, for the basic
sliding fee child care assistance program waiting list under Minnesota Statutes, section
119B.03, subdivision 2.
new text end

Sec. 11. new text begin CHILD CARE AND DEVELOPMENT BLOCK GRANT ALLOCATION;
PARENT AWARE PROGRAM EVALUATION.
new text end

new text begin The commissioner of human services shall allocate $1,650,000 in fiscal year 2022 from
the child care and development block grant funds in the federal fund for the Parent Aware
program evaluation in section 4.
new text end

Sec. 12. new text begin CHILD CARE STABILIZATION FUND ALLOCATION; COVID-19
PUBLIC HEALTH SUPPORT FUNDS FOR CHILD CARE.
new text end

new text begin (a) The commissioner of human services shall allocate $....... in fiscal year 2022 from
the amount Minnesota received under the American Rescue Plan Act for the child care
stabilization fund for COVID-19 public health support funds for child care base grant awards
in section 8, subdivision 4. This is a onetime allocation available until December 31, 2021,
or until 60 days after the expiration of the peacetime emergency declared by the governor
in an executive order that relates to the infectious disease known as COVID-19, whichever
occurs earlier. Any unobligated or unexpended amounts cancel on January 1, 2022, or 60
days after the expiration of the peacetime emergency declared by the governor in an executive
order that relates to the infectious disease known as COVID-19, whichever occurs earlier.
new text end

new text begin (b) The commissioner of human services shall allocate $....... in fiscal year 2022 from
the amount Minnesota received under the American Rescue Plan Act for the child care
stabilization fund for COVID-19 public health support funds for child care bonus grant
awards in section 8, subdivision 5. This is a onetime allocation available until September
30, 2023.
new text end

Sec. 13. new text begin CHILD CARE STABILIZATION FUND ALLOCATION;
ADMINISTRATION AND CHILD CARE SUPPLY INCREASES.
new text end

new text begin (a) The commissioner of human services shall allocate $32,503,300 in fiscal year 2022
from the amount Minnesota received under the American Rescue Plan Act for the child
care stabilization fund for administrative costs and to carry out activities to increase the
supply of child care.
new text end

new text begin (b) Of the amount in paragraph (a), up to $11,000,000 is for:
new text end

new text begin (1) administrative costs to administer the child care development grants in paragraph
(c) and the COVID-19 public health support funds for child care providers in section 8;
new text end

new text begin (2) providing technical assistance and support for grant applicants;
new text end

new text begin (3) publicizing the availability of the grant programs;
new text end

new text begin (4) providing technical assistance to help child care providers understand and implement
public health guidance; and
new text end

new text begin (5) evaluating the results of the grant programs funded by the child care stabilization
fund, including but not limited to the effects on the available supply of child care, effects
on child care quality, changes in child care compensation or workforce retention, and effects
on continuity of care.
new text end

new text begin (c) Of the amount in paragraph (a), $20,000,000 is for one grant of $8,000,000 to the
Minnesota Initiative Foundations to identify and fund projects outside the metropolitan
area, one grant of $8,000,000 to an intermediary entity to identify and fund projects in the
metropolitan area, and $4,000,000 is for a competitive grant process to be administered by
the Department of Human Services. Fifty percent of grant funds must be used for the
authorized activities in clauses (1) to (4) of this paragraph, and 50 percent of grant funds
must be used for the authorized activities in clause (5) of this paragraph. Grant funds shall
be available until June 30, 2023, and must be used for the following authorized activities:
new text end

new text begin (1) facilitate planning processes for communities resulting in a community solution
action plan that guides decision making to sustain and increase the number of quality child
care providers in the region to support economic development;
new text end

new text begin (2) engage the private sector to invest local resources to support the community solution
action plan and ensure child care is a vital component of additional regional economic
development planning processes;
new text end

new text begin (3) provide high quality, locally based training and technical assistance to child care
business owners through a learning cohort. Access to financial and business development
assistance must prepare child care businesses for quality engagement and improvement by
stabilizing operations, leveraging funding from other sources, and fostering business acumen;
new text end

new text begin (4) recruit child care programs to participate in Parent Aware under Minnesota Statutes,
section 124D.142, by providing targeted resources designed to encourage high levels of
participation. The Minnesota Initiative Foundations must work with local partners to provide
low-cost training, professional development opportunities, and curriculum. The Minnesota
Initiative Foundations must fund, through local partners, an enhanced level of coaching to
rural child care providers to obtain a quality rating through Parent Aware; and
new text end

new text begin (5) fund proposals that modify or improve a child care setting that the applicant
demonstrates would result in a program improvement or satisfy a licensing requirement.
new text end

new text begin (d) Of the amount in paragraph (a), $500,000 in fiscal year 2022 and $500,000 in fiscal
year 2023 are for teacher education and compensation helps (TEACH) program grants under
Minnesota Statutes, section 136A.128.
new text end

new text begin (e) Of the amount in paragraph (a), $250,000 in fiscal year 2022 and $250,000 in fiscal
year 2023 are for retaining early educators through attaining incentives now (REETAIN)
grants under Minnesota Statutes, section 119B.195.
new text end

Sec. 14. new text begin APPROPRIATION; EARLY LEARNING SCHOLARSHIP PROGRAM.
new text end

new text begin $123,709,000 in fiscal year 2022 and fiscal year 2023 is appropriated from the general
fund to the commissioner of education for the early learning scholarship program under
Minnesota Statutes, section 124D.165. The base for fiscal year 2024 and later shall be
$70,709,000.
new text end

Sec. 15. new text begin REVISOR INSTRUCTION.
new text end

new text begin The revisor of statutes shall renumber Minnesota Statutes, section 136A.128, in Minnesota
Statutes, chapter 119B. The revisor shall also make necessary cross-reference changes
consistent with the renumbering.
new text end