MN SF389

Prohibits the commissioner from designating scholarships for use in predetermined qualifying programs, removing prior authority to restrict scholarship use to specific programs.

Establishes application timelines and scholarship award schedules that meet operational needs of eligible families and programs, with commissioner discretion to prioritize based on family income, geographic location, and waiting list status.

Caps scholarships at $5,000 per year for fiscal years 2014-2015; directs commissioner to establish target average scholarship amounts for fiscal year 2016 and later based on rate survey results.

Authorizes school districts and Head Start programs enrolling scholarship recipients to apply for direct state aid payments beginning fiscal year 2017, with commissioner required to pay programs directly according to metered payment system or alternative schedule.

Requires unscreened scholarship recipients to complete development screening within 90 days of first attending an eligible program and limits children to one scholarship per 12-month period, with automatic cancellation if not enrolled within ten months of award.