1.1 	A bill for an act
1.2 	relating to early childhood education; increasing the duties of the Minnesota 
1.3 	Early Learning Foundation; appropriating money;amending Minnesota Statutes 
1.4 	2005 Supplement, section 124D.175.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. Minnesota Statutes 2005 Supplement, section 124D.175, is amended to read:
1.7 	124D.175 MINNESOTA EARLY LEARNING FOUNDATION PROPOSAL.
1.8 	(a) The commissioner must implement an early childhood development grant 
1.9 	program for low-income and other challenged families that increases the effectiveness 
1.10 	and expands the capacity of public and nonpublic early childhood development programs, 
1.11 	which may include child care programs, and leads to improved early childhood parent 
1.12 	education and children's kindergarten readiness. The program must include:
1.13 	(1) grant awards to existing early childhood development program providers that 
1.14 	also provide parent education programs and to qualified providers proposing to implement 
1.15 	pilot programs for this same purpose;
1.16 	(2) grant awards to enable low-income families to participate in these programs;
1.17 	(3) grant awards to improve overall programmatic quality; and
1.18 	(4) an evaluation of the programmatic and financial efficacy of all these programs, 
1.19 	which may be performed using measures of services, staffing, and management systems 
1.20 	that provide consistent information about system performance, show trends, confirm 
1.21 	successes, and identify potential problems in early childhood development programs.
1.22 	This grant program must not supplant existing early childhood development programs 
1.23 	or child care funds.
2.1 	(b) The commissioner must contract with a private nonprofit, section 501(c)(3) 
2.2 	organization to implement the requirements of paragraph (a). The private nonprofit 
2.3 	organization must be governed by a board of directors composed of members from the 
2.4 	public and nonpublic sectors, where the nonpublic sector members compose a simple 
2.5 	majority of board members and where the public sector members are state and local 
2.6 	government officials, kindergarten through grade 12 or postsecondary educators, and early 
2.7 	childhood providers appointed by the governor. Membership on the board of directors 
2.8 	by a state agency official are work duties for the official and are not a conflict of interest 
2.9 	under section 43A.38. The board of directors must appoint an executive director and 
2.10 	must seek advice from geographically and ethnically diverse parents of young children 
2.11 	and representatives of early childhood development providers, kindergarten through grade 
2.12 	12 and postsecondary educators, public libraries, and the business sector. The board 
2.13 	of directors is subject to the open meeting law under chapter 13D. All other terms and 
2.14 	conditions under which board members serve and operate must be described in the articles 
2.15 	and bylaws of the organization. The private nonprofit organization is not a state agency 
2.16 	and is not subject to laws governing public agencies except the provisions of chapter 13, 
2.17 	salary limits under section 15A.0815, subdivision 2, and audits by the legislative auditor 
2.18 	under chapter 3 apply.
2.19 	(c) In addition to the duties under paragraph (a), the Minnesota Early Learning 
2.20 	Foundation shall evaluate the effectiveness of the voluntary NorthStar Quality 
2.21 	Improvement and Rating System. The NorthStar Quality Improvement and Rating System 
2.22 	must:
2.23 	(1) provide consumer information for parents on child care and early education 
2.24 	program quality and ratings;
2.25 	(2) set indicators to identify quality in care and early education settings, including 
2.26 	licensed family child care and centers, tribal providers and programs, Head Start and 
2.27 	school-age programs, and identify quality programs through ratings and ongoing 
2.28 	monitoring of programs;
2.29 	(3) provide funds for provider improvement grants and quality achievement grants;
2.30 	(4) require participating providers to incorporate the state's early learning standards 
2.31 	in their curriculum activities and develop appropriate child assessments aligned with the 
2.32 	kindergarten readiness assessment;
2.33 	(5) provide accountability for the NorthStar Quality Improvement and Rating 
2.34 	System's effectiveness in improving child outcomes and kindergarten readiness; and
3.1 	(6) align current and new state investments to improve quality with the NorthStar 
3.2 	Quality Improvement and Rating System framework for accountability and informed 
3.3 	parent choice.
3.4 	The Minnesota Early Learning Foundation shall report back to the legislature by 
3.5 	January 15, 2008, on the progress being made under this paragraph.
3.6 	(d) This section expires June 30, 2011. If no state appropriation is made for purposes 
3.7 	of this section, the commissioner must not implement paragraphs (a) and (b).

3.8 	Sec. 2. APPROPRIATION.
 3.9 	$2,500,000 is appropriated from the general fund to the commissioner of education 
3.10 	to be transferred to the Minnesota Early Learning Foundation for the purposes of 
3.11 	Minnesota Statutes, section 124D.175, paragraph (c). Funds will be used over a two-year 
3.12 	period to implement phase one of the NorthStar Quality Improvement and Rating System 
3.13 	including start-up costs, participation of 200 providers, parent information, and materials 
3.14 	and evaluation by the Minnesota Early Learning Foundation in conjunction with the 
3.15 	University of Minnesota.