1.1.................... moves to amend the ....... amendment (H2749A21) to H.F. No. 2749
1.2as follows:
1.3Pages 1 to 5, delete sections 1 to 9 and insert:

"1.4    Section 1. [124D.1295] EARLY LEARNING PROGRAM COORDINATION.
1.5    Subdivision 1. Early learning program coordination. A school board, after
1.6receiving written comments from its early childhood advisory council or its community
1.7education council, may adopt a resolution allowing the district to offer an integrated early
1.8learning program. An integrated early learning program may provide for early childhood
1.9family education services, school readiness services, and other early learning programs
1.10providing services to parents and children. A school district's integrated early learning
1.11program must continue to contain components of parent education, opportunities for early
1.12learning activities for families with young children, and school readiness activities.
1.13    Subd. 2. Early learning program revenue sources. A school district's early
1.14learning program revenue includes its early childhood family education revenue under
1.15section 124D.135, school readiness program revenue under section 124D.16, and any
1.16other revenues set aside for early learning activities.
1.17    Subd. 3. Reserve account. A district that offers an integrated early learning
1.18program must place all of the revenue it receives under subdivision 2 in an early learning
1.19program reserve account established in the community service fund.
1.20EFFECTIVE DATE.This section is effective for fiscal year 2017 and later.

1.21    Sec. 2. Minnesota Statutes 2014, section 124D.13, subdivision 1, is amended to read:
1.22    Subdivision 1. Establishment; purpose. A district that provides a community
1.23education program under sections 124D.18 and 124D.19 may establish an early childhood
1.24family education program as an individual program or as a part of an early learning
1.25program under section 124D.1295. Two or more districts, each of which provides a
1.26community education program, may cooperate to jointly provide an early childhood
2.1family education program. The purpose of the early childhood family education program
2.2is to provide parenting education to support children's learning and development.
2.3EFFECTIVE DATE.This section is effective July 1, 2016.
"2.4Page 5, after line 29, insert:

"2.5    Sec. 4. Minnesota Statutes 2014, section 124D.13, subdivision 5, is amended to read:
2.6    Subd. 5. Separate accounts. The A district operating an early childhood family
2.7education program independent of an early learning program under section 124D.1295
2.8must maintain a separate account within the community education fund for money for
2.9early childhood family education programs.
2.10EFFECTIVE DATE.This section is effective for fiscal year 2017 and later.

2.11    Sec. 5. Minnesota Statutes 2014, section 124D.13, subdivision 9, is amended to read:
2.12    Subd. 9. District advisory councils. The board must appoint an advisory council
2.13from the area in which the program is provided. A majority of the council must be parents
2.14participating in the program, who represent the demographics of the community. The
2.15district must ensure, to the extent possible, that the council includes representation of
2.16families who are racially, culturally, linguistically, and economically diverse. The council
2.17must assist the board in developing, planning, and monitoring the early childhood family
2.18education program and the early learning program under section 124D.1295. The council
2.19must report to the board and the community education advisory council.
2.20EFFECTIVE DATE.This section is effective July 1, 2016.
"2.21Page 5, delete section 11
2.22Pages 5 to 8, delete sections 13 to 18 and insert:

"2.23    Sec. 7. Minnesota Statutes 2014, section 124D.135, subdivision 5, is amended to read:
2.24    Subd. 5. Use of revenue restricted. (a) Early childhood family education revenue
2.25may be used only for early learning programs, including early childhood family education
2.26programs.
2.27    (b) Not more than five percent of early childhood family education revenue, as defined
2.28in subdivision 7, may be used to administer early childhood family education programs.
2.29    (c) An early childhood family education program may use up to ten percent of its
2.30early childhood family education revenue as defined in subdivision 1, including revenue
2.31from participant fees, for equipment that is used in the early childhood family education
2.32program. This revenue may only be used for the following purposes:
2.33    (1) to purchase or lease computers and related materials; and
3.1    (2) to purchase or lease equipment for instruction for participating children and
3.2their families.
3.3    If a district anticipates an unusual circumstance requiring its early childhood family
3.4education program capital expenditures to exceed the ten percent limitation, prior approval
3.5to exceed the limit must be obtained in writing from the commissioner.
3.6EFFECTIVE DATE.This section is effective for fiscal year 2017 and later.

3.7    Sec. 8. Minnesota Statutes 2014, section 124D.135, subdivision 7, is amended to read:
3.8    Subd. 7. Reserve account. Early childhood family education revenue, which
3.9includes aids, levies, fees, grants, and all other revenues received by the district for early
3.10childhood family education programs, must be maintained in either an early learning
3.11program reserve account or a separate early childhood family education reserve account
3.12within the community service fund.
3.13EFFECTIVE DATE.This section is effective for fiscal year 2017 and later.

3.14    Sec. 9. Minnesota Statutes 2014, section 124D.15, subdivision 1, is amended to read:
3.15    Subdivision 1. Establishment; purpose. A district, charter school, or a group of
3.16districts or charter schools may establish a school readiness program for children age
3.17three to kindergarten entrance. The purpose of a school readiness program is to prepare
3.18children to enter kindergarten.

3.19    Sec. 10. Minnesota Statutes 2014, section 124D.15, subdivision 3a, is amended to read:
3.20    Subd. 3a. Application and reporting requirements. (a) A school readiness
3.21program provider must submit a biennial plan for approval by the commissioner before
3.22receiving aid under section 124D.16. The plan must describe how the program meets the
3.23program requirements under subdivision 3. A school district by April 1 or charter school
3.24must submit the plan for approval by the commissioner in the form and manner and by the
3.25date prescribed by the commissioner. One-half the districts must first submit the plan by
3.26April 1, 2006, and one-half the districts must first submit the plan by April 1, 2007, as
3.27determined by the commissioner.
3.28(b) Programs receiving school readiness funds annually must submit a report to
3.29the department.

3.30    Sec. 11. Minnesota Statutes 2015 Supplement, section 124D.16, subdivision 2, is
3.31amended to read:
4.1    Subd. 2. Amount of aid. (a) A district or charter school is eligible to receive school
4.2readiness aid for eligible prekindergarten pupils enrolled in a school readiness program
4.3under section 124D.15 if the biennial plan required by section 124D.15, subdivision 3a,
4.4has been approved by the commissioner.
4.5(b) A school district must receive school readiness aid equal to:
4.6(1) the number of four-year-old children in the district on October 1 for the previous
4.7school year times the ratio of 50 percent of the total school readiness aid for that year to
4.8the total number of four-year-old children reported to the commissioner for the previous
4.9school year; plus
4.10(2) the number of pupils enrolled in the school district from families eligible for the
4.11free or reduced-price school lunch program for the previous school year times the ratio
4.12of 50 percent of the total school readiness aid for that year to the total number of pupils
4.13in the state from families eligible for the free or reduced-price school lunch program for
4.14the previous school year.
4.15(c) The total school readiness aid entitlement equals $23,558,000 for fiscal year 2016
4.16and $33,683,000 for fiscal year 2017 and later.
4.17(d) If the aid entitlement in paragraph (c) is increased above $33,683,000 for any
4.18year, the commissioner must calculate the school readiness aid entitlement for charter
4.19schools equal to the aid entitlement in the current year less $33,683,000. A charter
4.20school's school readiness aid equals:
4.21(1) the number of kindergarten pupils enrolled in the charter school on October 1 for
4.22the previous school year times the ratio of 50 percent of the total charter school readiness
4.23aid for that year to the total number of charter school kindergarten pupils reported to the
4.24commissioner for the previous school year; plus
4.25(2) the number of pupils enrolled in the charter school from families eligible for the
4.26free or reduced-price school lunch program for the previous school year times the ratio
4.27of 50 percent of the total charter school readiness aid for that year to the total number of
4.28pupils in all charter schools from families eligible for the free or reduced-price school
4.29lunch program for the previous school year.
4.30(e) If the aid entitlement under paragraph (c) is increased above $36,683,000, the
4.31commissioner must combine the counts for school districts and charter schools under
4.32paragraphs (b) and (c) and compute aid amounts accordingly.
4.33EFFECTIVE DATE.This section is effective for revenue for fiscal year 2018
4.34and later.

4.35    Sec. 12. Minnesota Statutes 2014, section 124D.16, subdivision 3, is amended to read:
5.1    Subd. 3. Use of aid. School readiness aid shall be used only to provide a school
5.2readiness program or an early learning program and may be used to provide transportation.
5.3Not more than five percent of program revenue, as defined in subdivision 5, may be used
5.4for the cost of administering the program. Aid must be used to supplement and not supplant
5.5local, state, and federal funding. Aid may not be used for instruction and services required
5.6under sections 125A.03 to 125A.24 and 125A.65. Aid may not be used to purchase land
5.7or construct buildings, but may be used to lease or renovate existing buildings.
5.8EFFECTIVE DATE.This section is effective for fiscal year 2017 and later.

5.9    Sec. 13. Minnesota Statutes 2014, section 124D.16, subdivision 5, is amended to read:
5.10    Subd. 5. Reserve account. School readiness revenue, which includes aids, fees,
5.11grants, and all other revenues received by the district school readiness programs, must
5.12be maintained in either an early learning program reserve account or a school readiness
5.13reserve account within the community service fund.
5.14EFFECTIVE DATE.This section is effective for fiscal year 2017 and later.
"5.15Page 9, line 4, delete the new language and reinstate the stricken language
5.16Page 9, line 7, delete the new language and reinstate the stricken language
5.17Page 9, line 18, after the comma, insert "child from birth to age five and not yet
5.18enrolled in kindergarten is eligible for an early learning scholarship if the child's family
5.19meets the income eligibility standard established in paragraph (a), clause (2), and: (1) the
5.20child's" and after "parent" insert "is" and strike "who" and insert "and"
5.21Page 9, line 19, strike "is eligible for an early"
5.22Page 9, strike lines 20 and 21 and insert a semicolon
5.23Page 9, after line 21, insert:
"5.24(2) the child is in foster care or otherwise a child in need of protection or services; or
5.25(3) the child's family has experienced homelessness in the last 24 months.
"5.26Page 10, line 6, after "including" insert ": (1)" and strike the first comma and insert
5.27"; (2)" and strike ", and" and insert "; (3)"
5.28Page 10, line 7, strike the period and insert a semicolon
5.29Page 10, after line 7, insert:
"5.30(4) whether the child is in foster care or otherwise a child in need of protection or
5.31services; and
5.32(5) whether the child's family has experienced homelessness in the last 24 months.
"6.1Page 10, line 11, after the period insert "The commissioner may award a scholarship
6.2in excess of this amount to a child who qualifies for priority enrollment under paragraph
6.3(a), clause (4) or (5)."
6.4Page 10, line 15, strike "or" insert "and"
6.5Page 10, line 18, after "paragraph" insert "a licensed child care center, or a family
6.6chid care provider"
6.7Page 10, line 20, after the period, insert "Scholarships awarded under this section
6.8must be paid to the eligible program provider designated by the award recipient and must
6.9be transferred to another eligible program provider at the recipient's request."
6.10Page 10, line 29, strike "2017" and insert "2018" and strike everything after the
6.11comma
6.12Page 10, strike lines 30 to 34 and insert "the total amount of funding directly
6.13allocated to a program under paragraph (c) must not exceed the amount directly awarded
6.14to that program in fiscal year 2017."
6.15Page 11, line 3, strike "2016" and insert "2020"
6.16Page 11, after line 9, insert:
"6.17(d) Notwithstanding paragraph (a), beginning September 1, 2016, a qualifying
6.18newly opened program carries the rating of its affiliated program for its first two years of
6.19operation.
6.20(e) For purposes of this subdivision, "qualifying newly opened program" means
6.21a program in its first two years of operation actively pursuing a rating whose on-site
6.22director has experience operating a three- or four-star rated program, and "affiliated
6.23program" means a program with which the newly opened program shares an ownership or
6.24management interest or is otherwise structurally linked.
"6.25Page 11, delete lines 17 and 18
6.26Pages 11 to 16, delete sections 20 to 26
6.27Page 17, delete article 14
6.28Page 21, delete article 15
6.29Renumber the sections in sequence and correct the internal references