1.1.................... moves to amend H.F. No. 1026 as follows:
1.2Delete everything after the enacting clause and insert:


1.5    Section 1. [4.046] OFFICE OF EARLY LEARNING.
1.6(a) An Office of Early Learning is established to oversee and coordinate a
1.7high-quality early childhood system in Minnesota to make such programs more effective
1.8and to improve the educational outcomes of all children. The governor must appoint,
1.9subject to the advice and consent of the senate, a director who is a recognized expert in the
1.10field of early childhood care and education who will oversee prekindergarten and child care
1.11programs under the administration of the Departments of Education and Human Services.
1.12(b) The director of the Office of Early Learning must report to the commissioners of
1.13education an human services and must coordinate Departments of Education and Human
1.14Services Staff efforts to:
1.15(1) oversee resources and public funding streams for early childhood education
1.16and child care, and ensure the accountability and coordinated development of all early
1.17childhood education and child care services to children from birth to age five;
1.18(2) work with the Departments of Education and Human Services and the Minnesota
1.19Early Learning Foundation (MELF) to create common standards for quality early
1.20childhood programming;
1.21(3) create a seamless transition from early childhood programs to kindergarten that
1.22aligns with kindergarten through grade 3 standards;
1.23(4) develop and oversee an effective data collection system to support the necessary
1.24functions of a coordinated system of early childhood education and child care;
1.25(5) plan and implement a quality rating and improvement system to ensure that
1.26all Minnesota's children have access to high-quality early learning and care programs
2.1in a range of settings that meet the needs of children and their families and reflects the
2.2diversity of the family values and cultural heritage represented in the community;
2.3(6) prior to the creation of a quality rating and improvement system, employ the
2.4Minnesota quality rating system rating tool in use in fiscal year 2008; and
2.5(7) create an inventory of early childhood services that:
2.6(i) identifies state programs and initiatives funded by state, federal, and private
2.7dollars;
2.8(ii) provides brief descriptions of programs under which services are received;
2.9(iii) provides budget allocations toward the outcome areas; and
2.10(iv) includes subsections describing specific:
2.11(A) geographic regions served by the program;
2.12(B) number of children eligible;
2.13(C) number of children enrolled; and
2.14(D) age, ethnicity and race, and income demographics of children enrolled.
2.15The inventory shall be used to guide legislative proposals and best practices
2.16addressing the development, care, and education of children from birth to the child's fifth
2.17birthday. The inventory should be updated every biennium.
2.18(c) The director of the Office of Early Learning must coordinate activities with the
2.19State Advisory Council on Early Childhood Education and Care under section 124D.141.
2.20    (d) The director of the Office of Early Learning must report to the legislative
2.21committees with jurisdiction over the early childhood education and child care programs
2.22by February 1 of each year on the status of the work required under paragraph (b) and
2.23any statutory changes necessary to improve quality and increase access. The director
2.24also must present to these same legislative committees by February 1, 2010, a detailed
2.25plan, with an implementation timeline, to colocate state early childhood education and
2.26child care assistance programs and services.
2.27EFFECTIVE DATE.This section is effective the day following final enactment.

2.28    Sec. 2. Minnesota Statutes 2008, section 119A.52, is amended to read:
2.29119A.52 DISTRIBUTION OF APPROPRIATION.
2.30    (a) The commissioner of education must distribute money appropriated for that
2.31purpose to federally designated Head Start programs to expand services and to serve
2.32additional low-income children. Migrant and Indian reservation programs must be initially
2.33allocated money based on the programs' share of federal funds. The remaining money
2.34must be initially allocated to the remaining local agencies based equally on the agencies'
2.35share of federal funds and on the proportion of eligible children in the agencies' service
3.1area who are not currently being served. A Head Start program must be funded at a per
3.2child rate equal to its contracted, federally funded base level at the start of the fiscal
3.3year. For all agencies without a federal Early Head Start rate, the state average federal
3.4cost per child for Early Head Start applies. In allocating funds under this paragraph, the
3.5commissioner of education must assure that each Head Start program in existence in
3.61993 is allocated no less funding in any fiscal year than was allocated to that program in
3.7fiscal year 1993. Before paying money to the programs, the commissioner must notify
3.8each program of its initial allocation, and how the money must be used, and the number of
3.9low-income children to be served with the allocation based upon the federally funded per
3.10child rate. Each program must present a plan under section 119A.535. For any program
3.11that cannot utilize its full allocation at the beginning of the fiscal year, the commissioner
3.12must reduce the allocation proportionately. Money available after the initial allocations
3.13are reduced must be redistributed to eligible programs.
3.14    (b) The commissioner must develop procedures to make payments to programs
3.15based upon the number of children reported to be enrolled during the required time
3.16period of program operations. Enrollment is defined by federal Head Start regulations.
3.17The procedures must include a reporting schedule, corrective action plan requirements,
3.18and financial consequences to be imposed on programs that do not meet full enrollment
3.19after the period of corrective action. Programs reporting chronic underenrollment, as
3.20defined by the commissioner, will have their subsequent program year allocation reduced
3.21proportionately. Funds made available by prorating payments and allocations to programs
3.22with reported underenrollment will be made available to the extent funds exist to fully
3.23enrolled Head Start programs through a form and manner prescribed by the department.

3.24    Sec. 3. Minnesota Statutes 2008, section 124D.13, subdivision 13, is amended to read:
3.25    Subd. 13. Plan and Program data submission requirements. (a) An early
3.26childhood family education program must submit a biennial plan addressing the
3.27requirements of subdivision 2 for approval by the commissioner. The plan must also
3.28describe how the program provides parenting education and ensures participation of
3.29families representative of the school district. A school district must submit the plan for
3.30approval by the commissioner in the form and manner prescribed by the commissioner.
3.31One-half of districts, as determined by the commissioner, must first submit a biennial plan
3.32by April 1, 2009, and the remaining districts must first submit a plan by April 1, 2010.
3.33    (b) Districts receiving early childhood family education revenue under section
3.34124D.135 must submit annual program data to the department by July 15 in the form and
3.35manner prescribed by the commissioner.
4.1    (c) Beginning with levies for fiscal year 2011, a school district must submit its annual
4.2program data to the department before it may certify a levy under section 124D.135.
4.3Districts selected by the commissioner to submit a biennial plan by April 1, 2009, must
4.4also have an approved plan on file with the commissioner before certifying a levy under
4.5section 124D.135 for fiscal year 2011. Beginning with levies for fiscal year 2012, all
4.6districts must submit annual program data and have an approved biennial plan on file with
4.7the commissioner before certifying a levy under section 124D.135.

4.8    Sec. 4. Minnesota Statutes 2008, section 124D.135, subdivision 3, is amended to read:
4.9    Subd. 3. Early childhood family education levy. (a) By September 30 of each
4.10year, the commissioner shall establish a tax rate for early childhood family education
4.11revenue that raises $22,135,000 in each fiscal year. If the amount of the early childhood
4.12family education levy would exceed the early childhood family education revenue, the
4.13early childhood family education levy must equal the early childhood family education
4.14revenue. Beginning with levies for fiscal year 2011, a district may not certify an early
4.15childhood family education levy unless it has met the annual program data reporting and
4.16biennial plan requirements under section 124D.13, subdivision 13.
4.17    (b) Notwithstanding paragraph (a), for fiscal year 2009 only, the commissioner shall
4.18establish a tax rate for early education revenue that raises $13,565,000.

4.19    Sec. 5. [124D.142] QUALITY RATING AND IMPROVEMENT SYSTEM.
4.20(a) There is established a quality rating and improvement system to ensure that all
4.21Minnesota's children have access to high-quality early learning and care programs in a
4.22range of settings so that all children are fully ready for kindergarten by 2020. Creation of
4.23a standards-based quality rating and improvement system includes:
4.24(1) establishing an early care and education framework that improves quality
4.25opportunities in order to improve the educational outcomes of children so that all
4.26children are ready for school. The framework shall be based on the Minnesota quality
4.27rating system rating tool and a common set of child outcome standards and informed by
4.28evaluation results;
4.29(2) using the framework as a tool to increase the number of publicly funded and
4.30regulated early learning and care services in both public and private market programs that
4.31are high quality. If a program or provider chooses to participate, the program or provider
4.32will be rated and will receive public funding associated with the rating. The state shall
4.33develop a plan to link future early learning and care state funding to the framework in a
4.34manner that complies with federal requirements; and
5.1(3) using the framework to track progress toward statewide access to high-quality
5.2early learning and care programs, progress toward the number of low-income children
5.3whose parents can access quality programs, and progress toward increasing the number
5.4of children who are fully prepared to enter kindergarten.
5.5(b) In planning and implementing a statewide quality rating and improvement
5.6system in paragraph (a), the state shall assess the cost of administering and staffing
5.7the system and collecting assessment and evaluation data of the early learning and
5.8care system, including ensuring all children are fully ready for kindergarten. This cost
5.9assessment shall be provided to the early childhood learning education finance committees
5.10of the legislature by January 15, 2010.
5.11(c) Prior to the creation of a statewide quality rating and improvement system in
5.12paragraph (a), the state shall employ the Minnesota quality rating system rating tool
5.13in use in fiscal year 2008 with its modification as a result of the evaluation results of
5.14the pilot project.
5.15(d) The Departments of Education and Human Services must report to the
5.16legislature by January 15, 2010, with how they will realign their existing state and federal
5.17administrative resources to implement the quality rating and improvement system. Any
5.18remaining design work required of the Departments of Education and Human Services
5.19should be completed within existing department resources currently allocated for early
5.20care and education activities. Additional implementation resources will be determined
5.21after both departments present early care and education administrative realignment plans
5.22to the legislature.
5.23EFFECTIVE DATE.This section is effective July 1, 2009.

5.24    Sec. 6. [124D.145] EARLY LEARNING SYSTEM.
5.25The early learning system is defined to be the coherent structure of
5.26research-based curriculum content, instructional practice, program and child assessment,
5.27performance-based child and programmatic standards, professional development,
5.28engagement and outreach, accountability, financing, and governance efforts that contribute
5.29to all aspects of children's development and to prepare all children for kindergarten. This
5.30includes children's readiness for success in meeting Minnesota's kindergarten academic
5.31standards under section 120B.021. The system is delivered through a variety of public and
5.32private child care, preschool, Head Start, and school-based programs and services.

5.33    Sec. 7. Minnesota Statutes 2008, section 124D.15, subdivision 1, is amended to read:
5.34    Subdivision 1. Establishment; purpose. A district or a group of districts may
5.35establish a school readiness program for children age three to kindergarten entrance.
6.1The purpose of a school readiness program is to prepare children to enter kindergarten,
6.2especially children most at-risk for being unprepared for kindergarten.

6.3    Sec. 8. Minnesota Statutes 2008, section 124D.15, subdivision 3, is amended to read:
6.4    Subd. 3. Program requirements. A school readiness program provider must:
6.5    (1) assess each child's cognitive skills with a comprehensive child assessment
6.6instrument when the child enters and again before the child leaves the program to inform
6.7program planning and parents and promote kindergarten readiness;
6.8    (2) provide comprehensive program content and intentional instructional practice
6.9aligned with the state early childhood learning guidelines and kindergarten standards and
6.10based on early childhood research and professional practice that is focused on children's
6.11cognitive, social, emotional, and physical skills and development and prepares children
6.12for the transition to kindergarten, including early literacy skills;
6.13(3) coordinate appropriate kindergarten transition with parents and kindergarten
6.14teachers;
6.15    (3) (4) arrange for early childhood screening and appropriate referral;
6.16    (4) (5) involve parents in program planning and decision making;
6.17    (5) (6) coordinate with relevant community-based services; and
6.18    (6) (7) cooperate with adult basic education programs and other adult literacy
6.19programs.;
6.20(8) ensure staff-child ratios of one to ten and maximum group size of 20 children
6.21with the first staff required to be a teacher;
6.22(9) serve children a minimum of 12 hours per week. If a school district anticipates
6.23that the school readiness services the district provides may not reach the 12 hours per
6.24week due to extenuating circumstances, prior approval to provide less than the required 12
6.25hours must be obtained in the form and manner prescribed by the commissioner; and
6.26(10) have teachers knowledgeable in early childhood curriculum content,
6.27assessment, and instruction.

6.28    Sec. 9. Minnesota Statutes 2008, section 124D.15, is amended by adding a subdivision
6.29to read:
6.30    Subd. 15. Program rating. A district school readiness program, as defined in
6.31subdivision 3, receives a rating of four stars in any publicly funded pilot early childhood
6.32quality rating system. The rating will remain in effect until fiscal year 2011.

6.33    Sec. 10. TRANSFER OF DUTIES.
7.1Responsibilities of the commissioner of education for early childhood education
7.2programs and financing under Minnesota Statutes, sections 119A.50; 119A.52; 119A.53;
7.3119A.535; 119A.5411; 119A.545; 121A.16 to 121A.19; 124D.082; 124D.129; 124D.13;
7.4124D.135; 124D.141; 124D.142; 124D.143; 124D.15; 124D.16; 124D.162; and 125A.259
7.5to 125A.48 are transferred to the Office of Early Learning. All positions in the Department
7.6of Education are transferred to the Office of Early Learning. Responsibilities of the
7.7commissioner of human services for child care assistance and child care development
7.8programs and financing under Minnesota Statutes, sections 119B.189 to 119B.23 are
7.9transferred to the Office of Early Learning. All positions in the Department of Human
7.10Services are transferred to the Office of Early Learning. Minnesota Statutes, section
7.1115.039, applies to the transfer of the responsibilities in this section.

7.12    Sec. 11. APPROPRIATIONS.
7.13    Subdivision 1. Department of Education. The sums indicated in this section are
7.14appropriated from the general fund to the Department of Education for the fiscal years
7.15designated.
7.16    Subd. 2. School readiness. For revenue for school readiness programs under
7.17Minnesota Statutes, sections 124D.15 and 124D.16:

7.18		$	8,379,000	.....	2010
7.19		$	10,095,000	.....	2011

7.20The 2010 appropriation includes $1,009,000 for 2009 and $7,370,000 for 2010.
7.21The 2011 appropriation includes $2,725,000 for 2010 and $7,370,000 for 2011.
7.22    Subd. 3. Early childhood family education aid. For early childhood family
7.23education aid under Minnesota Statutes, section 124D.135:

7.24		$	19,189,000	.....	2010
7.25		$	22,473,000	.....	2011

7.26The 2010 appropriation includes $3,020,000 for 2009 and $16,169,000 for 2010.
7.27The 2011 appropriation includes $5,980,000 for 2010 and $16,493,000 for 2011.
7.28    Subd. 4. Health and developmental screening aid. For health and developmental
7.29screening aid under Minnesota Statutes, sections 121A.17 and 121A.19:

7.30		$	3,066,000	.....	2010
7.31		$	3,780,000	.....	2011

7.32The 2010 appropriation includes $367,000 for 2009 and $2,699,000 for 2010.
7.33The 2011 appropriation includes $997,000 for 2010 and $2,783,000 for 2011.
8.1    Subd. 5. Head Start program. For Head Start programs under Minnesota Statutes,
8.2section 119A.52:

8.3		$	20,100,000	.....	2010
8.4		$	20,100,000	.....	2011

8.5Any balance in the first year does not cancel but is available in the second year.
8.6    Subd. 6. Educate parents partnership. For the educate parents partnership under
8.7Minnesota Statutes, section 124D.129:

8.8		$	50,000	.....	2010
8.9		$	50,000	.....	2011

8.10Any balance in the first year does not cancel but is available in the second year.
8.11    Subd. 7. Kindergarten entrance assessment initiative and intervention
8.12program. For the kindergarten entrance assessment initiative and intervention program
8.13under Minnesota Statutes, section 124D.162:

8.14		$	287,000	.....	2010
8.15		$	287,000	.....	2011

8.16Any balance in the first year does not cancel but is available in the second year.

8.17    Sec. 12. REVISOR'S INSTRUCTION.
8.18In the next and subsequent editions of Minnesota Statutes, the revisor of statutes
8.19shall:
8.20(1) substitute the term "the director" for "commissioner" and "commissioner of
8.21education" in the following: Minnesota Statutes, sections 119A.50; 119A.52; 119A.53;
8.22119A.535; 119A.5411; 119A.545; 121A.16 to 121A.19; 124D.082; 124D.129; 124D.13;
8.23124D.135; 124D.141; 124D.142; 124D.143; 124D.15; 124D.16; 124D.162; and 125A.259
8.24to 125A.48. In the next and subsequent editions of Minnesota Statutes, the revisor of
8.25statutes shall substitute the term "the director" for "commissioner" and "commissioner of
8.26human services" in Minnesota Statutes, sections 119B.189 to 119B.23.
8.27(2) substitute the term "Office of Early Learning" for the term "Department of
8.28Education" in the following: Minnesota Statutes, sections 119A.50; 119A.52; 119A.53;
8.29119A.535; 119A.5411; 119A.545; 121A.16 to 121A.19; 124D.082; 124D.129; 124D.13;
8.30124D.135; 124D.141; 124D.142; 124D.143; 124D.15; 124D.16; 124D.162; and 125A.259
8.31to 125A.48; and substitute the term "Office of Early Learning" for the term "Department
8.32of Human Services" in the following: Minnesota Statutes, sections 119B.189 to 119B.23.


9.3    Section 1. Minnesota Statutes 2008, section 124D.19, subdivision 10, is amended to
9.4read:
9.5    Subd. 10. Youth service programs. (a) A school board may offer, as part of a
9.6community education program with a youth development program, a youth service
9.7program that provides young people with meaningful opportunities to become involved in
9.8their community, develop individual capabilities, make career connections, seek support
9.9networks and services, become active citizens, and address community needs through
9.10youth service. The board may award up to one credit, or the equivalent, toward graduation
9.11for a pupil who completes the youth service requirements of the district. The community
9.12education advisory council, after considering the results of the commissioner's study
9.13under section 124D.50, subdivision 1, must design the program in cooperation with the
9.14district planning, evaluating and reporting committee and local organizations that train
9.15volunteers or need volunteers' services.
9.16(b) Programs must include:
9.17(1) preliminary training for pupil volunteers conducted, when possible, by
9.18organizations experienced in such training;
9.19(2) supervision of the pupil volunteers to ensure appropriate placement and adequate
9.20learning opportunity;
9.21(3) sufficient opportunity, in a positive setting for human development, for pupil
9.22volunteers to develop general skills in preparation for employment, to enhance self-esteem
9.23and self-worth, and to give genuine service to their community;
9.24(4) integration of academic learning with the service experience; and
9.25(5) integration of youth community service with elementary and secondary
9.26curriculum.
9.27(c) Youth service projects include, but are not limited to, the following:
9.28(1) human services for the elderly, including home care and related services;
9.29(2) tutoring and mentoring;
9.30(3) training for and providing emergency services;
9.31(4) services at extended day programs;
9.32(5) environmental services; and
9.33(6) service-learning programs in which schools, including postsecondary schools,
9.34and employers work together with young people to provide them with meaningful
9.35opportunities for community service and with the academic and technical skills that
9.36employers require.
10.1(d) The commissioner shall maintain a list of acceptable projects with a description
10.2of each project. A project that is not on the list must be approved by the commissioner.
10.3(e) A youth service project must have a community sponsor that may be a
10.4governmental unit or nonprofit organization. To assure that pupils provide additional
10.5services, each sponsor must assure that pupil services do not displace employees or reduce
10.6the workload of any employee.
10.7(f) (e) The commissioner shall assist districts in planning youth service programs,
10.8implementing programs, and developing recommendations for obtaining community
10.9sponsors.

10.10    Sec. 2. Minnesota Statutes 2008, section 124D.19, subdivision 14, is amended to read:
10.11    Subd. 14. Community education; annual report. Each district offering a
10.12community education program under this section must annually report to the department
10.13information regarding the cost per participant and cost per contact hour for each
10.14community education program, including youth after-school enrichment programs, that
10.15receives aid or levy. The department must include cost per participant and cost per contact
10.16hour information by program in the community education annual report.

10.17    Sec. 3. APPROPRIATIONS.
10.18    Subdivision 1. Department of Education. The sums indicated in this section are
10.19appropriated from the general fund to the Department of Education for the fiscal years
10.20designated.
10.21    Subd. 2. Community education aid. For community education aid under
10.22Minnesota Statutes, section 124D.20:

10.23		$	488,000	.....	2010
10.24		$	486,000	.....	2011

10.25The 2010 appropriation includes $73,000 for 2009 and $415,000 for 2010.
10.26The 2011 appropriation included $153,000 for 2010 and $333,000 for 2011.
10.27    Subd. 3. Adults with disabilities program aid. For adults with disabilities
10.28programs under Minnesota Statutes, section 124D.56:

10.29		$	590,000	.....	2010
10.30		$	710,000	.....	2011

10.31The 2010 appropriation includes $71,000 for 2009 and $519,000 for 2010.
10.32The 2011 appropriation includes $191,000 for 2010 and $519,000 for 2011.
10.33    Subd. 4. Hearing-impaired adults. For programs for hearing-impaired adults
10.34under Minnesota Statutes, section 124D.57:

11.1		$	70,000	.....	2010
11.2		$	70,000	.....	2011

11.3    Subd. 5. School-age care revenue. For extended day aid under Minnesota Statutes,
11.4section 124D.22:

11.5		$	1,000	.....	2010
11.6		$	1,000	.....	2011

11.7The 2010 appropriation includes $0 for 2009 and $1,000 for 2010.
11.8The 2011 appropriation includes $0 for 2010 and $1,000 for 2011.


11.11    Section 1. Minnesota Statutes 2008, section 124D.522, is amended to read:
11.12124D.522 ADULT BASIC EDUCATION SUPPLEMENTAL SERVICE
11.13GRANTS.
11.14(a) The commissioner, in consultation with the policy review task force under
11.15section 124D.521, may make grants to nonprofit organizations to provide services that
11.16are not offered by a district adult basic education program or that are supplemental to
11.17either the statewide adult basic education program, or a district's adult basic education
11.18program. The commissioner may make grants for: staff development for adult basic
11.19education teachers and administrators; training for volunteer tutors; training, services, and
11.20materials for serving disabled students through adult basic education programs; statewide
11.21promotion of adult basic education services and programs; development and dissemination
11.22of instructional and administrative technology for adult basic education programs;
11.23programs which primarily serve communities of color; adult basic education distance
11.24learning projects, including television instruction programs; and other supplemental
11.25services to support the mission of adult basic education and innovative delivery of adult
11.26basic education services.
11.27(b) The commissioner must establish eligibility criteria and grant application
11.28procedures. Grants under this section must support services throughout the state, focus on
11.29educational results for adult learners, and promote outcome-based achievement through
11.30adult basic education programs. Beginning in fiscal year 2002, the commissioner may
11.31make grants under this section from the state total adult basic education aid set aside for
11.32supplemental service grants under section 124D.531. Up to one-fourth of the appropriation
11.33for supplemental service grants must be used for grants for adult basic education programs
11.34to encourage and support innovations in adult basic education instruction and service
11.35delivery. A grant to a single organization cannot exceed $100,000 20 percent of the total
12.1supplemental services aid. Nothing in this section prevents an approved adult basic
12.2education program from using state or federal aid to purchase supplemental services.

12.3    Sec. 2. APPROPRIATIONS.
12.4    Subdivision 1. Department of Education. The sums indicated in this section are
12.5appropriated from the general fund to the Department of Education for the fiscal years
12.6designated.
12.7    Subd. 2. Adult basic education aid. For adult basic education aid under Minnesota
12.8Statutes:

12.9		$	35,648,000	.....	2010
12.10		$	44,039,000	.....	2011

12.11The 2010 appropriation includes $4,187,000 for 2009 and $31,461,000 for 2010.
12.12The 2011 appropriation includes $11,636,000 for 2010 and $32,403,000 for 2011.
12.13    Subd. 3. GED tests. For payment of 60 percent of the costs of GED tests under
12.14Minnesota Statutes, section 124D.55:

12.15		$	125,000	.....	2010
12.16		$	125,000	.....	2011

12.17Any balance in the first year does not cancel but is available in the second year.

12.20

Section 1. HUMAN SERVICES APPROPRIATION.

12.21The sums shown in the columns marked "Appropriations" are appropriated to the
12.22agencies and for the purposes specified in this article. The appropriations are from the
12.23general fund, or another named fund, and are available for the fiscal years indicated
12.24for each purpose. The figures "2010" and "2011" used in this article mean that the
12.25appropriations listed under them are available for the fiscal year ending June 30, 2010, or
12.26June 30, 2011, respectively. "The first year" is fiscal year 2010. "The second year" is fiscal
12.27year 2011. "The biennium" is fiscal years 2010 and 2011. Appropriations for the fiscal
12.28year ending June 30, 2009, are effective the day following final enactment.

12.29				APPROPRIATIONS
12.30				Available for the Year
12.31				Ending June 30
12.32					2010		2011

12.33

Sec. 2. HUMAN SERVICES

12.34

Subdivision 1.Total Appropriation

$

131,139,000

$

131,812,000

13.1	Appropriations by Fund
13.2		2010	2011
13.3	General	118,356,000	118,362,000
13.4 13.5	Child Care Development Fund	12,783,000	13,450,000

13.6Child Care and Development Fund
13.7Unexpended Balance. (a) The commissioner
13.8shall determine the unexpended balance of
13.9the federal Child Care and Development
13.10Fund (CCDF) for the basic sliding fee child
13.11care program by February 28, 2009. The
13.12balance must first be used to fund programs
13.13described in paragraph (b) and the remainder
13.14must be available for the basic sliding fee
13.15child care under Minnesota Statutes, section
13.16119B.03.
13.17(b) Notwithstanding Minnesota Statutes,
13.18section 119B.03, subdivision 5b, and
13.19Minnesota Rules, part 3400.0060, subpart
13.204, the commissioner shall transfer to the
13.21commissioner of education $500,000 in fiscal
13.22year 2010 and $500,000 in fiscal year 2011
13.23for the purposes of after-school community
13.24learning grants under Minnesota Statutes,
13.25section 124D.2211. Any funds unexpended
13.26in fiscal year 2010 may be used in fiscal year
13.272011. The commissioner shall transfer to the
13.28commissioner of education $500,000 in fiscal
13.29year 2010 and $500,000 in fiscal year 2011
13.30for the words work program under Minnesota
13.31Statutes, section 119A.50, subdivision 3,
13.32paragraph (a). Any unexpended funds in
13.33fiscal year 2010 may be used in fiscal year
13.342011.

13.35 13.36

Subd. 2.Children and Economic Assistance Grants

14.1The amounts that may be spent from this
14.2appropriation for each purpose are as follows:

14.3

(a) MFIP Child Care Assistance Grants

74,546,000

74,657,000

14.4Child care assistance provider rates.
14.5$2,478,000 in fiscal year 2010 and
14.6$2,395,000 in fiscal year 2011 are from the
14.7federal child care development fund from
14.8American Recovery and Reinvestment Act
14.9of 2009, Public Law 111-5, funds to the
14.10commissioner of human services consistent
14.11with federal regulations for the purpose of
14.12child care assistance provider rate increases
14.13under Minnesota Statutes, section 119B.13,
14.14subdivision 1. This appropriation is one
14.15time. Any unexpended balance the first year
14.16is available in the second year.
14.17School readiness service agreements.
14.18$408,000 in fiscal year 2010 and $408,000 in
14.19fiscal year 2011 are from the federal child care
14.20development fund from American Recovery
14.21and Reinvestment Act of 2009, Public Law
14.22111-5, funds to the commissioner of human
14.23services consistent with federal regulations
14.24for the purpose of school readiness service
14.25agreements under Minnesota Statutes,
14.26section 119B.231. This appropriation is one
14.27time. Any unexpended balance the first year
14.28is available in the second year.

14.29 14.30

(b) Basic Sliding Fee Child Care Assistance Grants

52,406,000

52,203,000

14.31Child care assistance provider rates.
14.32$1,793,000 in fiscal year 2010 and
14.33$1,775,000 in fiscal year 2011 are from the
14.34federal child care development fund from
14.35American Recovery and Reinvestment Act
15.1of 2009, Public Law 111-5, funds to the
15.2commissioner of human services consistent
15.3with federal regulations for the purpose of
15.4child care assistance provider rate increases
15.5under Minnesota Statutes, section 119B.13,
15.6subdivision 1. This appropriation is one
15.7time. Any unexpended balance the first year
15.8is available in the second year.
15.9School readiness service agreements.
15.10$262,000 in fiscal year 2010 and $262,000 in
15.11fiscal year 2011 are from the federal child care
15.12development fund from American Recovery
15.13and Reinvestment Act of 2009, Public Law
15.14111-5, funds to the commissioner of human
15.15services consistent with federal regulations
15.16for the purpose of school readiness service
15.17agreements under Minnesota Statutes,
15.18section 119B.231. This appropriation is one
15.19time. Any unexpended balance the first year
15.20is available in the second year.
15.21Basic sliding fee. $5,146,000 in fiscal year
15.222010 and $5,145,000 in fiscal year 2011 are
15.23from the federal child care development fund
15.24from American Recovery and Reinvestment
15.25Act of 2009, Public Law 111-5, funds to the
15.26commissioner of human services consistent
15.27with federal regulations for the purpose of
15.28basic sliding fee child care assistance under
15.29Minnesota Statutes, section 119B.03. This
15.30appropriation is one time. Any unexpended
15.31balance the first year is available in the
15.32second year.
15.33Base adjustment. The general fund base is
15.34increased by $184,000 in fiscal year 2012
15.35and $182,000 in fiscal year 2013.

16.1

(c) Child Care Development Grants

4,077,000

4,848,000

16.2FFN grants. $375,000 in fiscal year 2010
16.3and $375,000 in fiscal year 2011 are from the
16.4child care development fund from American
16.5Recovery and Reinvestment Act of 2009,
16.6Public Law 111-5, funds to the commissioner
16.7of human services for FFN grants under
16.8Minnesota Statutes, section 119B.232. This
16.9appropriation may be used on programs
16.10receiving FFN grant funds as of June 30,
16.112009, or on new programs or projects. This
16.12appropriation is one time. Any unexpended
16.13balance the first year is available in the
16.14second year.
16.15Quality rating system training, coaching,
16.16consultation, and supports. $1,350,000
16.17in fiscal year 2010 and $1,350,000 in fiscal
16.18year 2011 are from the federal child care
16.19development fund required targeted funds
16.20for quality expansion and infant/toddler from
16.21American Recovery and Reinvestment Act
16.22of 2009, Public Law 111-5, funds to the
16.23commissioner of human services consistent
16.24with federal regulations for the purpose
16.25of providing grants to provide statewide
16.26child-care provider training, coaching,
16.27consultation, and supports to prepare for
16.28the Minnesota quality rating system rating
16.29tool. This appropriation is one time. Any
16.30unexpended balance the first year is available
16.31in the second year.
16.32Quality rating system. $865,000 in
16.33fiscal year 2010 and $1,500,000 in fiscal
16.34year 2011 are from the federal child care
16.35development fund required targeted funds
17.1for quality expansion and infant/toddler from
17.2American Recovery and Reinvestment Act
17.3of 2009, Public Law 111-5, funds to the
17.4commissioner of human services consistent
17.5with federal regulations for the purpose of
17.6implementing the Parent Aware quality star
17.7rating system pilot in coordination with the
17.8Minnesota Early Learning Foundation. The
17.9appropriation for the first year is to complete
17.10and promote the Parent Aware quality rating
17.11system pilot program through June 30, 2010,
17.12and the appropriation for the second year
17.13is to continue the Minnesota quality rating
17.14system pilot through June 30, 2011. This
17.15appropriation is one time. Any unexpended
17.16balance the first year is available in the
17.17second year.
17.18Parent Aware pilot. $136,000 in fiscal
17.19year 2011 is from the federal child care
17.20development fund from American Recovery
17.21and Reinvestment Act of 2009, Public Law
17.22115-5, funds to the commissioner of human
17.23services for 1.5 FTEs to continue the Parent
17.24Aware pilot program.

17.25 17.26

(d) Children and Economic Assistance Administration

17.27School readiness service agreements.
17.28$106,000 in fiscal year 2010 and $104,000
17.29in fiscal year 2011 are from the federal
17.30child care development fund from American
17.31Recovery and Reinvestment Act of
17.322009, Public Law 111-5, funds to the
17.33commissioner of human services consistent
17.34with federal regulations for the purpose of
17.35school readiness service agreements under
18.1Minnesota Statutes, section 119B.231. This
18.2appropriation is one time.
18.3(e) Children and Economic Assistance
18.4Operations $4,000 in fiscal year 2010 is for
18.5systems costs.

18.6    Sec. 3. Minnesota Statutes 2008, section 119B.09, subdivision 7, is amended to read:
18.7    Subd. 7. Date of eligibility for assistance. (a) The date of eligibility for child
18.8care assistance under this chapter is the later of the date the application was signed; the
18.9beginning date of employment, education, or training; the date the infant is born for
18.10applicants to the at-home infant care program; or the date a determination has been made
18.11that the applicant is a participant in employment and training services under Minnesota
18.12Rules, part 3400.0080, or chapter 256J.
18.13    (b) Payment ceases for a family under the at-home infant child care program when a
18.14family has used a total of 12 months of assistance as specified under section 119B.035.
18.15Payment of child care assistance for employed persons on MFIP is effective the date of
18.16employment or the date of MFIP eligibility, whichever is later. Payment of child care
18.17assistance for MFIP or DWP participants in employment and training services is effective
18.18the date of commencement of the services or the date of MFIP or DWP eligibility,
18.19whichever is later. Payment of child care assistance for transition year child care must be
18.20made retroactive to the date of eligibility for transition year child care.
18.21(c) Notwithstanding paragraph (b), payment of child care assistance for participants
18.22eligible under section 119B.05 may only be made retroactive for a maximum of six
18.23months from the date of application for child care assistance.
18.24EFFECTIVE DATE.This section is effective October 1, 2009.

18.25    Sec. 4. Minnesota Statutes 2008, section 119B.13, subdivision 1, is amended to read:
18.26    Subdivision 1. Subsidy restrictions. (a) Beginning July 1, 2006 2009, the
18.27maximum rate paid for child care assistance in any county or multicounty region under
18.28the child care fund shall be the rate for like-care arrangements in the county effective
18.29January 1, 2006 July 1, 2008, increased by six two percent.
18.30    (b) Rate changes shall be implemented for services provided in September 2006
18.31unless a participant eligibility redetermination or a new provider agreement is completed
18.32between July 1, 2006, and August 31, 2006.
18.33    As necessary, appropriate notice of adverse action must be made according to
18.34Minnesota Rules, part 3400.0185, subparts 3 and 4.
19.1    New cases approved on or after July 1, 2006, shall have the maximum rates under
19.2paragraph (a), implemented immediately.
19.3    (c) Every year, the commissioner shall survey rates charged by child care providers in
19.4Minnesota to determine the 75th percentile for like-care arrangements in counties. When
19.5the commissioner determines that, using the commissioner's established protocol, the
19.6number of providers responding to the survey is too small to determine the 75th percentile
19.7rate for like-care arrangements in a county or multicounty region, the commissioner may
19.8establish the 75th percentile maximum rate based on like-care arrangements in a county,
19.9region, or category that the commissioner deems to be similar.
19.10    (d) (c) A rate which includes a special needs rate paid under subdivision 3 or under a
19.11school readiness service agreement paid under section 119B.231, may be in excess of the
19.12maximum rate allowed under this subdivision.
19.13    (e) (d) The department shall monitor the effect of this paragraph on provider rates.
19.14The county shall pay the provider's full charges for every child in care up to the maximum
19.15established. The commissioner shall determine the maximum rate for each type of care on
19.16an hourly, full-day, and weekly basis, including special needs and disability care.
19.17    (f) (e) When the provider charge is greater than the maximum provider rate allowed,
19.18the parent is responsible for payment of the difference in the rates in addition to any
19.19family co-payment fee.
19.20    (g) (f) All maximum provider rates changes shall be implemented on the Monday
19.21following the effective date of the maximum provider rate.

19.22    Sec. 5. Minnesota Statutes 2008, section 119B.13, subdivision 6, is amended to read:
19.23    Subd. 6. Provider payments. (a) Counties or the state shall make vendor payments
19.24to the child care provider or pay the parent directly for eligible child care expenses.
19.25(b) If payments for child care assistance are made to providers, the provider shall
19.26bill the county for services provided within ten days of the end of the service period. If
19.27bills are submitted within ten days of the end of the service period, a county or the state
19.28shall issue payment to the provider of child care under the child care fund within 30 days
19.29of receiving a bill from the provider. Counties or the state may establish policies that
19.30make payments on a more frequent basis.
19.31(c) All bills If a provider has received an authorization of care and been issued a
19.32billing form for an eligible family, the bill must be submitted within 60 days of the last
19.33date of service on the bill. A county may pay a bill submitted more than 60 days after
19.34the last date of service if the provider shows good cause why the bill was not submitted
19.35within 60 days. Good cause must be defined in the county's child care fund plan under
20.1section 119B.08, subdivision 3, and the definition of good cause must include county
20.2error. A county may not pay any bill submitted more than a year after the last date of
20.3service on the bill.
20.4(d) If a provider provided care for a time period without receiving an authorization
20.5of care and a billing form for an eligible family, payment of child care assistance may only
20.6be made retroactively for a maximum of six months from the date the provider is issued
20.7an authorization of care and billing form.
20.8(d) (e) A county may stop payment issued to a provider or may refuse to pay a
20.9bill submitted by a provider if:
20.10(1) the provider admits to intentionally giving the county materially false information
20.11on the provider's billing forms; or
20.12(2) a county finds by a preponderance of the evidence that the provider intentionally
20.13gave the county materially false information on the provider's billing forms.
20.14(e) (f) A county's payment policies must be included in the county's child care plan
20.15under section 119B.08, subdivision 3. If payments are made by the state, in addition to
20.16being in compliance with this subdivision, the payments must be made in compliance
20.17with section 16A.124.
20.18EFFECTIVE DATE.This section is effective October 1, 2009.

20.19    Sec. 6. Minnesota Statutes 2008, section 119B.231, subdivision 2, is amended to read:
20.20    Subd. 2. Provider eligibility. (a) To be considered for an SRSA, a provider shall
20.21apply to the commissioner or have been chosen as an SRSA provider prior to June 30,
20.222009, and have complied with all requirements of the SRSA agreement. Priority for funds
20.23is given to providers who had agreements prior to June 30, 2009. If sufficient funds are
20.24available, the commissioner shall make applications available to additional providers. To
20.25be eligible to apply for an SRSA, a provider shall:
20.26    (1) be eligible for child care assistance payments under chapter 119B;
20.27    (2) have at least 25 percent of the children enrolled with the provider subsidized
20.28through the child care assistance program;
20.29    (3) provide full-time, full-year child care services; and
20.30    (4) serve at least one child who is subsidized through the child care assistance
20.31program and who is expected to enter kindergarten within the following 30 months have
20.32obtained a level 3 or 4 star rating under the Parent Aware quality rating system.
20.33    (b) The commissioner may waive the 25 percent requirement in paragraph (a),
20.34clause (2), if necessary to achieve geographic distribution of SRSA providers and diversity
20.35of types of care provided by SRSA providers.
21.1    (c) An eligible provider who would like to enter into an SRSA with the commissioner
21.2shall submit an SRSA application. To determine whether to enter into an SRSA with a
21.3provider, the commissioner shall evaluate the following factors:
21.4    (1) the qualifications of the provider and the provider's staff provider's Parent
21.5Aware rating score;
21.6    (2) the provider's staff-child ratios;
21.7    (3) the provider's curriculum;
21.8    (4) the provider's current or planned parent education activities;
21.9    (5) (2) the provider's current or planned social service and employment linkages;
21.10    (6) the provider's child development assessment plan;
21.11    (7) (3) the geographic distribution needed for SRSA providers;
21.12    (8) (4) the inclusion of a variety of child care delivery models; and
21.13    (9) (5) other related factors determined by the commissioner.

21.14    Sec. 7. Minnesota Statutes 2008, section 119B.231, subdivision 3, is amended to read:
21.15    Subd. 3. Family and child eligibility. (a) A family eligible to choose an SRSA
21.16provider for their children shall:
21.17    (1) be eligible to receive child care assistance under any provision in chapter 119B
21.18except section 119B.035;
21.19    (2) be in an authorized activity for an average of at least 35 hours per week when
21.20initial eligibility is determined; and
21.21    (3) include a child who has not yet entered kindergarten.
21.22    (b) A family who is determined to be eligible to choose an SRSA provider remains
21.23eligible to be paid at a higher rate through the SRSA provider when the following
21.24conditions exist:
21.25    (1) the child attends child care with the SRSA provider a minimum of 25 hours per
21.26week, on average;
21.27    (2) the family has a child who has not yet entered kindergarten; and
21.28    (3) the family maintains eligibility under chapter 119B except section 119B.035.
21.29    (c) For the 12 months After initial eligibility has been determined, a decrease in the
21.30family's authorized activities to an average of less than 35 hours per week does not result
21.31in ineligibility for the SRSA rate. A family must continue to maintain eligibility under this
21.32chapter and be in an authorized activity.
21.33    (d) A family that moves between counties but continues to use the same SRSA
21.34provider shall continue to receive SRSA funding for the increased payments.

21.35    Sec. 8. Minnesota Statutes 2008, section 119B.231, subdivision 4, is amended to read:
22.1    Subd. 4. Requirements of providers. An SRSA must include assessment,
22.2evaluation, and reporting requirements that promote the goals of improved school
22.3readiness and movement toward appropriate child development milestones. A provider
22.4who enters into an SRSA shall comply with all SRSA requirements, including the
22.5assessment, evaluation, and reporting requirements in the SRSA. Providers who have been
22.6selected previously for SRSAs must begin the process to obtain a rating using Parent
22.7Aware according to timelines established by the commissioner. If the initial Parent Aware
22.8rating is less than three stars, the provider must submit a plan to improve the rating. If
22.9a 3 or 4 star rating is not obtained within established timelines, the commissioner may
22.10consider continuation of the agreement, depending upon the progress made and other
22.11factors. Providers who apply and are selected for a new SRSA agreement on or after July
22.121, 2009, must have a level 3 or 4 star rating under the Parent Aware quality rating system
22.13at the time the SRSA agreement is signed."
22.14Amend the title accordingly