1.1    .................... moves to amend H. F. No. 1056 the delete-everything amendment
1.2A07-0428 as follows:
1.3Page 7, delete section 6
1.4Page 7, after line 17, insert:

1.5    "Sec. 7. Minnesota Statutes 2006, section 119B.09, is amended by adding a subdivision
1.6to read:
1.7    Subd.13. Sliding fee. Child care services to families must be made available on
1.8a sliding fee basis.
1.9    (a) The commissioner shall convert eligibility requirements in section 119B.09 and
1.10parent fee schedules in 119B.12 to state median income, based on a family size of 3,
1.11adjusted for family size, Subd. 2(a) shall be implemented July 1, 2008. The commissioner
1.12shall report to the 2008 Legislature with the necessary statutory changes to codify this
1.13conversion to state median income.

1.14    Sec. .... Minnesota Statutes 2006, section 119B.12, subdivision 1, is amended to read:
1.15    Subdivision 1. Fee schedule. In setting the sliding fee schedule, the commissioner
1.16shall exclude from the amount of income used to determine eligibility an amount for
1.17federal and state income and Social Security taxes attributable to that income level
1.18according to federal and state standardized tax tables. The commissioner shall base the
1.19parent fee on the ability of the family to pay for child care. The fee schedule must be
1.20designed to use any available tax credits.
1.21PARENT FEE SCHEDULE. The parent fee schedule is as follows:

1.22 1.23	Income Range (as a percent of the federal poverty guidelines	Cop-payment (as a percentage of adjusted gross income)
1.24	0-74.99%	$0/month
1.25	75.00 - 99.99%	$5/month
1.26	100.00-104.99%	2.61%
1.27	105.00-109.99%	2.61%
2.1	110.00-114.99%	2.61%
2.2	115.00-119.99%	2.61%
2.3	120.00-124.99%	2.91%
2.4	125.00-129.99%	2.91%
2.5	130.00-134.99%	2.91%
2.6	135.00-139.99%	2.91%
2.7	140.00-144.99%	3.21%
2.8	145.00-149.99%	3.21%
2.9	150.00-154.99%	3.21%
2.10	155.00-159.99%	3.84%
2.11	160.00-164.99%	3.84%
2.12	165.00-169.99%	4.46%
2.13	170.00-174.99%	4.76%
2.14	175.00-179.99%	5.05%
2.15	180.00-184.99%	5.65%
2.16	185.00-189.99%	5.95%
2.17	190.00-194.99%	6.24%
2.18	195.00-199.99%	6.84%
2.19	200.00-204.99%	7.58%
2.20	205.00-209.99%	8.33%
2.21	210.00-214.99%	9.20%
2.22	215.00-219.99%	10.07%
2.23	220.00-224.99%	10.94%
2.24	225.00-229.99%	11.55%
2.25	230.00-234.99%	12.16%
2.26	235.00-239.99%	12.77%
2.27	240.00-244.99%	13.38%
2.28	245.00-249.99%	14.00%
2.29	250%	ineligible

2.30A family's monthly co-payment fee is the fixed percentage established for the
2.31income range multiplied by the highest possible income within that income range.
2.32    Subd. 2. Parent fee. A family must be assessed a parent fee for each service period.
2.33A family's parent fee must be a fixed percentage of its annual gross income. Parent fees
2.34must apply to families eligible for child care assistance under sections 119B.03 and
2.35119B.05. Income must be as defined in section 119B.011, subdivision 15. The fixed
2.36percent is based on the relationship of the family's annual gross income to 100 percent
2.37of the annual federal poverty guidelines. Parent fees must begin at 75 percent of the
2.38poverty level. The minimum parent fees for families between 75 percent and 100 percent
2.39of poverty level must be $10 $5 per month. Parent fees must provide for graduated
2.40movement to full payment. Payment of part or all of a family's parent fee directly to the
2.41family's child care provider on behalf of the family by a source other than the family shall
3.1not affect the family's eligibility for child care assistance, and the amount paid shall be
3.2excluded from the family's income. Child care providers who accept third-party payments
3.3must maintain family specific documentation of payment source, amount, and time period
3.4covered by the payment.
3.5EFFECTIVE DATE.This section is effective July 1, 2007.
3.6Effective July 1, 2008, the parent fee scale for families with incomes greater than or
3.7equal to 100% FPG shall be converted to state median income for a family size of three,
3.8adjusted for family size, as directed in 119B.09 subdivision 2(a). "
3.9Page 11, line 6, delete section 8, and insert:

3.10    "Sec. 8.Minnesota Statutes 2006, section 119B.13, subdivision 1, is amended to read:
3.11    Subdivision 1. Subsidy restrictions. (a) Beginning July 1, 20062007, the maximum
3.12rate paid for child care assistance in any county or multicounty region under the child care
3.13fund shall be the rate for like-care arrangements in the county effective July January 1,
3.142006, increased by two six percent.
3.15    (b) Rate changes shall be implemented for services provided in September 2006
3.16September 2007unless a participant eligibility redetermination or a new provider
3.17agreement is completed between July 1, 2007 and August 1, 2007July 1, 2006, and August
3.1831, 2006.
3.19    As necessary, appropriate notice of adverse action must be made according to
3.20Minnesota Rules, part 3400.0185, subparts 3 and 4.
3.21    New cases approved on or after July 1, 2006, 2007shall have the maximum rates
3.22under paragraph (a), implemented immediately.
3.23    (c) Not less than once every two years, the commissioner shall survey rates
3.24charged by child care providers in Minnesota to determine the 75th percentile for
3.25like-care arrangements in counties. When the commissioner determines that, using the
3.26commissioner's established protocol, the number of providers responding to the survey is
3.27too small to determine the 75th percentile rate for like-care arrangements in a county or
3.28multicounty region, the commissioner may establish the 75th percentile maximum rate
3.29based on like-care arrangements in a county, region, or category that the commissioner
3.30deems to be similar.
3.31    (d) A rate which includes a special needs rate paid under subdivision 3 or under
3.32a school readiness service agreement paid under Section 29 may be in excess of the
3.33maximum rate allowed under this subdivision.
3.34    (e) The department shall monitor the effect of this paragraph on provider rates. The
3.35county shall pay the provider's full charges for every child in care up to the maximum
4.1established. The commissioner shall determine the maximum rate for each type of care
4.2on an hourly, full-day, and weekly basis, including special needs and disability care. The
4.3half-day rates are effective beginning July 1, 2008.
4.4    (f) When the provider charge is greater than the maximum provider rate allowed, the
4.5parent is responsible for payment of the difference in the rates in addition to any family
4.6co-payment fee. (g) All maximum provider rate changes shall be implemented on the
4.7Monday following the effective date of the maximum provider rate."
4.8Page 12, line 12, after "degree" insert "a child development associate credential"
4.9Page 25, line 20, delete everything after "commissioner"
4.10Page 25, delete lines 21 to 23 and insert "to allow the commissioner to pay higher
4.11rates to up to 50 child care providers who are deemed by the commissioner to meet the
4.12requirements of a School Readiness Service Agreement provider and perform services
4.13that support school readiness for children and economic stability for parents."
4.14Page 33, line 8, delete "subdivisions 1 and 2" and insert "subdivision 4"
4.15Page 35, lines 15 to 18, delete "Program providers may seek recommendations
4.16from the commissioner of human services on early learning for children birth to age
4.17three and from the commissioner of education on educational progress for children ages
4.18three to five."
4.19Page 38, line 12, delete "12-member" and insert "13-member"
4.20Page 38, line 18, delete "12" and insert "13"
4.21Page 38, line 24, delete "five public members who are recognized experts in early
4.22care and education" and insert "six public members"
4.23Page 38, line 25, after "program" insert "five of whom are recognized experts in
4.24early care and education, one of whom is a higher education representative,"
4.25Page 39, line 8, delete "preschools" and insert "early care and education programs"
4.26Page 39, delete lines 27 to 30 and insert "(2) the positive or negative effects of
4.27policies and programs recommended under this section on families affected by these
4.28programs."
4.29Page 39, line 31, delete "separate" and after "groups" insert "as necessary"
4.30Page 41, after line 26, insert:

4.31    "Sec. 9. [124D.165] EARLY CHILDHOOD SCHOLARSHIPS.
4.32    Subdivision 1. Purpose. The commissioner must establish an early childhood
4.33scholarship fund to improve the school readiness of prekindergarten children at risk
4.34of being unprepared for kindergarten. Scholarships are available for the purpose of
4.35participating in an approved program as specified in subdivision 4 the year prior to
4.36kindergarten entrance.
5.1    Subd. 2. Eligibility. A parent or legal guardian of a four-year-old child with a
5.2household income that does not exceed 180 percent of the federal poverty guidelines,
5.3adjusted for family size, is eligible to apply for an annual scholarship of up to $4,000 for
5.4each eligible child.
5.5    Subd. 3. Scholarship application, award, and process. Parents or guardians
5.6meeting the eligibility requirements defined in subdivision 2 may apply for a scholarship
5.7certificate. Application must be made according to the form and manner prescribed by the
5.8commissioner. The certificates must be redeemable for instruction at an approved early
5.9childhood program, as specified in subdivision 4, for up to one year from the date of
5.10issue or until the child for whom the scholarship is designated enrolls in kindergarten,
5.11whichever occurs first. The commissioner shall annually award scholarship certificates to
5.12eligible applicants in the order applications are received until all funds available for the
5.13year have been obligated. Recipients may not transfer a scholarship certificate to another
5.14person. The parent or guardian may transfer the scholarship certificate to another approved
5.15early childhood program according to requirements established by the commissioner.
5.16    Subd. 4. Program approval. A program must be approved by the commissioner
5.17to be eligible to receive state early childhood scholarship program funds on behalf of
5.18an enrolled scholarship certificate recipient. Early childhood programs must apply for
5.19approval in the form and manner prescribed by the commissioner and must be:
5.20    (1) a federally designated Head Start program as defined in section 119A.50;
5.21    (2) a school readiness program as defined in section 124D.15; or
5.22    (3) a licensed child care program as defined in chapter 245A.
5.23    The application must include evidence that the program provides research-based
5.24instruction to support school readiness. Programs must submit any program changes
5.25related to approval as they occur and must reapply for approval every three years.
5.26    Subd. 5. Payments to approved programs. The commissioner shall issue
5.27payments of scholarship funds on a reimbursement basis to approved programs as defined
5.28in subdivision 4 for services provided that are comparable to service costs for program
5.29participants who do not receive a scholarship. Scholarship funds may not be used for
5.30services that are available at no cost to nonscholarship recipient families. Approved
5.31programs must maintain documentation of services provided and the commissioner shall
5.32verify information submitted by approved programs to ensure appropriate services were
5.33provided to eligible recipients for whom state early childhood scholarship funds are paid.
5.34Scholarship funds awarded to families receiving other forms of assistance, such as child
6.1care assistance, must be used to supplement and may not be used to supplant services
6.2provided through that assistance.
6.3    Subd. 6. Scholarship not income for purposes of other publicly funded
6.4programs. Notwithstanding any law to the contrary, the receipt of a scholarship does not
6.5count as earned income for the purposes of medical assistance, MinnesotaCare, MFIP,
6.6child care assistance, or Head Start programs."
6.7Page 47, line 18, delete "three" and insert "four"
6.8Page 52, after line 24, insert:

6.9    "Section 1. GRANT PROGRAM TO PROMOTE THE HEALTHY
6.10DEVELOPMENT OF CHILDREN AND YOUTH WITHIN THEIR
6.11COMMUNITIES.
6.12    (a) The commissioner of education must contract with the Search Institute to help
6.13local communities develop, expand, and maintain the tools, training, and resources needed
6.14to foster positive child and youth development and effectively engage young people in
6.15their communities. The Search Institute must educate individuals and community-based
6.16organizations to adequately understand and meet the development needs of their children
6.17and youth, use best practices to promote the healthy development of children and youth,
6.18share best program practices with other interested communities, and create electronic and
6.19other opportunities for communities to share experiences in and resources for promoting
6.20the healthy development of children and youth.
6.21    (b) The commissioner of education must provide for an evaluation of the
6.22effectiveness of this program and must recommend to the education policy and finance
6.23committees of the legislature by February 15, 2010, whether or not to make the program
6.24available statewide. The Search Institute annually must report to the commissioner of
6.25education on the services it provided and the grant money it expended under this section.
6.26EFFECTIVE DATE.This section is effective the day following final enactment."
6.27Page 56, after line 32, insert:

6.28    "Sec. 29. APPROPRIATION.
6.29    $250,000 in fiscal year 2008 and $250,000 in fiscal year 2009 are appropriated from
6.30the general fund to the commissioner of education for contracting with the Search Institute
6.31to promote the healthy development of children and youth within their communities
6.32under section 1. The commissioner may expend up to five percent of the appropriation to
6.33provide for a program evaluation. This appropriation is available until June 30, 2009.
6.34EFFECTIVE DATE.This section is effective July 1, 2008."
7.1Renumber the sections in sequence and correct the internal references
7.2Amend the title accordingly