1.1                          A bill for an act 
  1.2             relating to education; modifying child care programs, 
  1.3             establishing a family asset account, modifying adult 
  1.4             basic education, establishing an energy assistance 
  1.5             cash flow account, providing for prevention programs; 
  1.6             requiring a notice in adoption agency correction 
  1.7             orders; appropriating money; amending Minnesota 
  1.8             Statutes 1996, sections 119B.10, by adding a 
  1.9             subdivision; 119B.18, subdivision 2, and by adding 
  1.10            subdivisions; 119B.19, subdivisions 1, 4, and by 
  1.11            adding subdivisions; 120.1701, subdivision 5; 124.26, 
  1.12            subdivision 1c; 216B.241, subdivision 2a; 239.785, 
  1.13            subdivision 6; 245A.06, subdivision 2; 256.045, 
  1.14            subdivision 6, and by adding a subdivision; Minnesota 
  1.15            Statutes 1997 Supplement, sections 119B.01, 
  1.16            subdivision 16; 119B.02; 119B.061, subdivisions 1, 2, 
  1.17            3, and 4; 119B.10, subdivision 1; 119B.13, 
  1.18            subdivisions 1 and 6; 119B.21, subdivisions 2, 4, 5, 
  1.19            and 11; 121.88, subdivision 10; 256.045, subdivision 
  1.20            7; Laws 1997, chapter 162, articles 3, section 8, 
  1.21            subdivision 3; and 4, section 63, subdivision 3; Laws 
  1.22            1997, First Special Session chapters 4, article 10, 
  1.23            section 3, subdivision 2; and 5, section 29; proposing 
  1.24            coding for new law in Minnesota Statutes, chapter 268; 
  1.25            proposing coding for new law as Minnesota Statutes, 
  1.26            chapter 119C; repealing Minnesota Statutes 1997 
  1.27            Supplement, section 119B.075. 
  1.28  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.29                             ARTICLE 1 
  1.30                             CHILD CARE 
  1.31     Section 1.  Minnesota Statutes 1997 Supplement, section 
  1.32  119B.01, subdivision 16, is amended to read: 
  1.33     Subd. 16.  [TRANSITION YEAR FAMILIES.] "Transition year 
  1.34  families" means families who have received AFDC for at least 
  1.35  three of the last six months before losing eligibility for AFDC 
  1.36  due to increased hours of employment, increased income from 
  2.1   employment or child or spousal support, or the loss of income 
  2.2   disregards due to time limitations.  Transition year child care 
  2.3   may be used to support employment or job search. 
  2.4      Sec. 2.  Minnesota Statutes 1997 Supplement, section 
  2.5   119B.02, is amended to read: 
  2.6      119B.02 [DUTIES OF COMMISSIONER.] 
  2.7      Subdivision 1. [RESPONSIBILITY FOR CHILD CARE SERVICES.] 
  2.8   The commissioner shall develop standards for county and human 
  2.9   services boards to provide child care services to enable 
  2.10  eligible families to participate in employment, training, or 
  2.11  education programs.  Within the limits of available 
  2.12  appropriations, the commissioner shall distribute money to 
  2.13  counties to reduce the costs of child care for eligible 
  2.14  families.  The commissioner shall adopt rules to govern the 
  2.15  program in accordance with this section.  The rules must 
  2.16  establish a sliding schedule of fees for parents receiving child 
  2.17  care services.  The rules shall provide that funds received as a 
  2.18  lump sum payment of child support arrearages shall not be 
  2.19  counted as income to a family in the month received but shall be 
  2.20  prorated over the 12 months following receipt and added to the 
  2.21  family income during those months.  In the rules adopted under 
  2.22  this section, county and human services boards shall be 
  2.23  authorized to establish policies for payment of child care 
  2.24  spaces for absent children, when the payment is required by the 
  2.25  child's regular provider.  The rules shall not set a maximum 
  2.26  number of days for which absence payments can be made, but 
  2.27  instead shall direct the county agency to set limits and pay for 
  2.28  absences according to the prevailing market practice in the 
  2.29  county.  County policies for payment of absences shall be 
  2.30  subject to the approval of the commissioner.  The commissioner 
  2.31  shall maximize the use of federal money in section 256.736 and 
  2.32  other programs that provide federal or state reimbursement for 
  2.33  child care services for low-income families who are in 
  2.34  education, training, job search, or other activities allowed 
  2.35  under those programs.  Money appropriated under this section 
  2.36  must be coordinated with the programs that provide federal 
  3.1   reimbursement for child care services to accomplish this 
  3.2   purpose.  Federal reimbursement obtained must be allocated to 
  3.3   the county that spent money for child care that is federally 
  3.4   reimbursable under programs that provide federal reimbursement 
  3.5   for child care services.  The counties shall use the federal 
  3.6   money to expand child care services.  The commissioner may adopt 
  3.7   rules under chapter 14 to implement and coordinate federal 
  3.8   program requirements. 
  3.9      Subd. 2.  [SUPERVISION OF COUNTIES.] The commissioner shall 
  3.10  supervise child care programs administered by the counties 
  3.11  through standard-setting, technical assistance to the counties, 
  3.12  approval of county plans and distribution of public money for 
  3.13  services.  The commissioner shall provide training and other 
  3.14  support services to assist counties in planning for and 
  3.15  implementing child care assistance programs.  The commissioner 
  3.16  shall establish minimum administrative and service standards for 
  3.17  the provision of child care social services by county boards of 
  3.18  commissioners, by the promulgation of a permanent administrative 
  3.19  rule under chapter 14.  
  3.20     Sec. 3.  Minnesota Statutes 1997 Supplement, section 
  3.21  119B.061, subdivision 1, is amended to read: 
  3.22     Subdivision 1.  [ESTABLISHMENT.] Beginning July 1, 1998, a 
  3.23  family receiving or eligible to in which a parent provides care 
  3.24  for the family's infant child may receive a subsidy in lieu of 
  3.25  assistance if the family is eligible for, or is receiving 
  3.26  assistance under the basic sliding fee program is eligible for 
  3.27  assistance for a parent to provide short-term child care for the 
  3.28  family's infant child.  An eligible family must meet the 
  3.29  eligibility factors under section 119B.09, the income criteria 
  3.30  under section 119B.12, and the requirements of this section.  
  3.31  The commissioner shall establish a pool of up to seven percent 
  3.32  of the annual appropriation for the basic sliding fee program to 
  3.33  provide assistance under the at-home infant child care program.  
  3.34  At the end of the fiscal year, any unspent funds must be used 
  3.35  for assistance under the basic sliding fee program. 
  3.36     Sec. 4.  Minnesota Statutes 1997 Supplement, section 
  4.1   119B.061, subdivision 2, is amended to read: 
  4.2      Subd. 2.  [ELIGIBLE FAMILIES.] A family with an infant 
  4.3   under the age of one year is eligible for assistance if: 
  4.4      (1) the family is not receiving MFIP-S, other cash 
  4.5   assistance, or other child care assistance; 
  4.6      (2) the family has not previously received all of the 
  4.7   one-year exemption from the work requirement for infant care 
  4.8   under the MFIP-S program; 
  4.9      (3) the family has not previously received a life-long 
  4.10  total of 12 months of assistance under this section; and 
  4.11     (4) the family is participating in the basic sliding fee 
  4.12  program or, for the first child in a family, provides 
  4.13  verification of employment at the time of application and meets 
  4.14  the program requirements. 
  4.15     Sec. 5.  Minnesota Statutes 1997 Supplement, section 
  4.16  119B.061, subdivision 3, is amended to read: 
  4.17     Subd. 3.  [ELIGIBLE PARENT.] Only A family is eligible for 
  4.18  assistance under this section if one parent, in a two-parent 
  4.19  family, is eligible for assistance cares for the family's infant 
  4.20  child.  The eligible parent must: 
  4.21     (1) be over the age of 18; 
  4.22     (2) provide care for the infant full-time care for the 
  4.23  child in the child's home; and 
  4.24     (3) provide child care for any other children in the family 
  4.25  that who are eligible for child care assistance under chapter 
  4.26  119B. 
  4.27     Sec. 6.  Minnesota Statutes 1997 Supplement, section 
  4.28  119B.061, subdivision 4, is amended to read: 
  4.29     Subd. 4.  [ASSISTANCE.] (a) A family is limited to a 
  4.30  lifetime total of 12 months of assistance under this section.  
  4.31  The maximum rate of assistance must be at 75 percent of the rate 
  4.32  established under section 119B.13 for care of infants in 
  4.33  licensed family day care in the applicant's county of 
  4.34  residence.  Assistance must be calculated to reflect the copay 
  4.35  requirement and the family's income level. 
  4.36     (b) A participating family must continue to report income 
  5.1   and other family changes as specified in the county's plan under 
  5.2   section 119B.08, subdivision 3.  The family must treat any 
  5.3   assistance received under this section as unearned income. 
  5.4      (c) Participation in the at-home infant child care program 
  5.5   must be considered participation in the basic sliding fee 
  5.6   program for purposes of continuing eligibility under section 
  5.7   119B.03, subdivision 3. 
  5.8      (d) The time that a family that receives assistance under 
  5.9   this section is ineligible for must be deducted from the 
  5.10  one-year exemption from work requirements under the MFIP-S 
  5.11  program. 
  5.12     (e) Assistance under this section does not establish an 
  5.13  employer-employee relationship between any member of the 
  5.14  assisted family and the county or state. 
  5.15     Sec. 7.  Minnesota Statutes 1997 Supplement, section 
  5.16  119B.10, subdivision 1, is amended to read: 
  5.17     Subdivision 1.  [ASSISTANCE FOR PERSONS SEEKING AND 
  5.18  RETAINING EMPLOYMENT.] (a) Persons who are seeking employment 
  5.19  and who are eligible for assistance under this section are 
  5.20  eligible to receive up to 240 hours of child care assistance per 
  5.21  calendar year.  
  5.22     (b) Employed persons who work at least an average of 20 and 
  5.23  full-time students who work at least an average of ten hours a 
  5.24  week and receive at least a minimum wage for all hours worked 
  5.25  are eligible for continued child care assistance for 
  5.26  employment.  Child care assistance during employment must be 
  5.27  authorized as provided in paragraphs (c) and (d). 
  5.28     (c) When the caregiver works for an hourly wage and the 
  5.29  hourly wage is equal to or greater than the applicable minimum 
  5.30  wage, child care assistance shall be provided for the actual 
  5.31  hours of employment, break, and mealtime during the employment 
  5.32  and travel time up to two hours per day. 
  5.33     (d) When the caregiver does not work for an hourly wage, 
  5.34  child care assistance must be provided for the lesser of: 
  5.35     (1) the amount of child care determined by dividing gross 
  5.36  earned income by the applicable minimum wage, up to one hour 
  6.1   every eight hours for meals and break time, plus up to two hours 
  6.2   per day for travel time; or 
  6.3      (2) the amount of child care equal to the actual amount of 
  6.4   child care used during employment, including break and mealtime 
  6.5   during employment, and travel time up to two hours per day. 
  6.6      Sec. 8.  Minnesota Statutes 1996, section 119B.10, is 
  6.7   amended by adding a subdivision to read: 
  6.8      Subd. 3.  [SELF-EMPLOYMENT EXCEPTION.] For assistance under 
  6.9   section 119B.03, a caregiver who has a business plan for 
  6.10  self-employment is exempt for up to six months from the minimum 
  6.11  wage requirements under subdivision 1, paragraph (d), clause 
  6.12  (1).  The caregiver must demonstrate that the business plan has 
  6.13  been developed and reviewed by an organization that specializes 
  6.14  in business assistance including, but not limited to, a 
  6.15  community development corporation, a small business assistance 
  6.16  center, or an organization affiliated with the Minnesota Micro 
  6.17  Enterprise Association.  The caregiver must meet all other 
  6.18  eligibility requirements for assistance under the basic sliding 
  6.19  fee program. 
  6.20     Sec. 9.  Minnesota Statutes 1997 Supplement, section 
  6.21  119B.13, subdivision 1, is amended to read: 
  6.22     Subdivision 1.  [SUBSIDY RESTRICTIONS.] Effective July 1, 
  6.23  1991, the maximum rate paid for child care assistance under the 
  6.24  child care fund is the maximum rate eligible for federal 
  6.25  reimbursement.  The rate may not exceed the 75th percentile rate 
  6.26  for like-care arrangements in the county as surveyed by the 
  6.27  commissioner.  A rate which includes a provider bonus paid under 
  6.28  subdivision 2 or a special needs rate paid under subdivision 3 
  6.29  may be in excess of the maximum rate allowed under this 
  6.30  subdivision.  The department of children, families, and learning 
  6.31  shall monitor the effect of this paragraph on provider rates.  
  6.32  The county shall pay the provider's full charges for every child 
  6.33  in care up to the maximum established.  The commissioner shall 
  6.34  determine the maximum rate for each type of care, including 
  6.35  special needs and handicapped care.  Not less than once every 
  6.36  two years, the county shall evaluate rates market practices for 
  7.1   payment of absent spaces absences and shall establish policies 
  7.2   for payment of absent days that reflect current market practice. 
  7.3      When the provider charge is greater than the maximum 
  7.4   provider rate allowed, the parent is responsible for payment of 
  7.5   the difference in the rates in addition to any family copayment 
  7.6   fee. 
  7.7      Sec. 10.  Minnesota Statutes 1997 Supplement, section 
  7.8   119B.13, subdivision 6, is amended to read: 
  7.9      Subd. 6.  [PROVIDER PAYMENTS.] Counties shall make vendor 
  7.10  payments to the child care provider, or may pay the parent 
  7.11  directly for eligible child care expenses if the county has 
  7.12  established procedures and requires documentation to ensure that 
  7.13  the payment is used for child care.  A parent who receives a 
  7.14  direct child care payment must provide the documentation, as 
  7.15  required by the county, that the payment was used for eligible 
  7.16  child care expenses.  If payments for child care assistance are 
  7.17  made to providers, the provider shall bill the county for 
  7.18  services provided within ten days of the end of the month of 
  7.19  service.  If bills are submitted in accordance with the 
  7.20  provisions of this subdivision, a county shall issue payment to 
  7.21  the provider of child care under the child care fund within 30 
  7.22  days of receiving an invoice from the provider.  Counties may 
  7.23  establish policies that make payments on a more frequent basis.  
  7.24  A county's payment policies must be included in the county's 
  7.25  child care plan under section 119B.08, subdivision 3. 
  7.26     Sec. 11.  Minnesota Statutes 1996, section 119B.18, 
  7.27  subdivision 2, is amended to read: 
  7.28     Subd. 2.  [DUTIES.] The regional resource and referral 
  7.29  program shall have the duties specified in section 119B.19.  In 
  7.30  addition, the regional program shall be responsible for 
  7.31  establishing new or collaborating with existing community-based 
  7.32  committees such as interagency early intervention committees or 
  7.33  neighborhood groups to advocate for child care needs in the 
  7.34  community, including school-age care needs, as well as serve as 
  7.35  important local resources for children and their families. 
  7.36     Sec. 12.  Minnesota Statutes 1996, section 119B.18, is 
  8.1   amended by adding a subdivision to read: 
  8.2      Subd. 4.  [BUSINESS PRACTICES ASSISTANCE.] The regional 
  8.3   resource and referral programs may provide technical assistance 
  8.4   on sound business practices to start-up and established child 
  8.5   care providers.  The assistance may include business planning 
  8.6   and effective business management practices for family child 
  8.7   care providers, business-based providers, providers who offer 
  8.8   care during nontraditional hours, and other child care 
  8.9   facilities.  
  8.10     Sec. 13.  Minnesota Statutes 1996, section 119B.18, is 
  8.11  amended by adding a subdivision to read: 
  8.12     Subd. 5.  [PRELICENSING ASSISTANCE.] The regional resource 
  8.13  and referral programs may act as a liaison and provide technical 
  8.14  assistance to start-up and expanding child care providers.  
  8.15  Assistance to achieve licensure for child care facilities may 
  8.16  include identifying the necessary code and licensing 
  8.17  requirements and coordinating prelicensing conferences or 
  8.18  prelicensing assessments with state and local officials. 
  8.19     Sec. 14.  Minnesota Statutes 1996, section 119B.18, is 
  8.20  amended by adding a subdivision to read: 
  8.21     Subd. 6.  [MULTICULTURAL OUTREACH.] The commissioner shall 
  8.22  contract for or provide child care licensing information and 
  8.23  child care application and selection information in all of the 
  8.24  predominant non-English languages in Minnesota.  The 
  8.25  commissioner shall coordinate or contract for services to 
  8.26  provide technical assistance and training to legally unlicensed 
  8.27  child care providers in Minnesota's communities of color.  The 
  8.28  commissioner shall also coordinate or provide developmental 
  8.29  training, business support and assist providers in becoming 
  8.30  licensed. 
  8.31     Sec. 15.  Minnesota Statutes 1996, section 119B.19, 
  8.32  subdivision 1, is amended to read: 
  8.33     Subdivision 1.  [AUTHORITY.] The commissioner of children, 
  8.34  families, and learning may make grants to public or private 
  8.35  nonprofit agencies for the planning, establishment, expansion, 
  8.36  improvement, or operation of child care resource and referral 
  9.1   programs and child care services, including school-age care 
  9.2   programs, according to the provisions of this section and may 
  9.3   make grants to county boards to carry out the purposes of 
  9.4   sections 119B.19 to 119B.21. 
  9.5      Sec. 16.  Minnesota Statutes 1996, section 119B.19, is 
  9.6   amended by adding a subdivision to read: 
  9.7      Subd. 3a.  [PROGRAM SERVICES; SCHOOL-AGE CARE.] The 
  9.8   commissioner may make grants to public or private nonprofit 
  9.9   entities to fund school-age care programs.  School-age care 
  9.10  programs shall meet the requirements of section 121.88, 
  9.11  subdivision 10. 
  9.12     Sec. 17.  Minnesota Statutes 1996, section 119B.19, 
  9.13  subdivision 4, is amended to read: 
  9.14     Subd. 4.  [GRANT REQUIREMENTS AND PRIORITY.] Priority for 
  9.15  awarding resource and referral grants shall be given in the 
  9.16  following order: 
  9.17     (1) start up resource and referral programs in areas of the 
  9.18  state where they do not exist; and 
  9.19     (2) improve resource and referral programs. 
  9.20     Resource and referral programs shall meet the following 
  9.21  requirements:  
  9.22     (a) Each program shall identify all existing child care 
  9.23  services through information provided by all relevant public and 
  9.24  private agencies in the areas of service, and shall develop a 
  9.25  resource file of the services which shall be maintained and 
  9.26  updated at least quarterly.  These services must include family 
  9.27  day care homes; public and private day care programs; full-time 
  9.28  and part-time programs; infant, preschool, and extended care 
  9.29  programs; and programs for school-age children. 
  9.30     The resource file must include:  the type of program, hours 
  9.31  of program service, ages of children served, fees, location of 
  9.32  the program, eligibility requirements for enrollment, special 
  9.33  needs services, and transportation available to the program.  
  9.34  The file may also include program information and special 
  9.35  program features. 
  9.36     (b) Each resource and referral program shall establish a 
 10.1   referral process which responds to parental need for information 
 10.2   and which fully recognizes confidentiality rights of parents.  
 10.3   The referral process must afford parents maximum access to all 
 10.4   referral information.  This access must include telephone 
 10.5   referral available for no less than 20 hours per week. 
 10.6      Each child care resource and referral agency shall 
 10.7   publicize its services through popular media sources, agencies, 
 10.8   employers, and other appropriate methods. 
 10.9      (c) Each resource and referral program shall maintain 
 10.10  ongoing documentation of requests for service.  All child care 
 10.11  resource and referral agencies must maintain documentation of 
 10.12  the number of calls and contacts to the child care information 
 10.13  and referral agency or component.  A resource and referral 
 10.14  program shall collect and maintain the following information: 
 10.15     (1) ages of children served; 
 10.16     (2) time category of child care request for each child; 
 10.17     (3) special time category, such as nights, weekends, and 
 10.18  swing shift; and 
 10.19     (4) reason that the child care is needed. 
 10.20     (d) Each resource and referral program shall make available 
 10.21  the following information as an educational aid to parents: 
 10.22     (1) information on aspects of evaluating the quality and 
 10.23  suitability of child care services, including licensing 
 10.24  regulation, financial assistance available, child abuse 
 10.25  reporting procedures, appropriate child development information; 
 10.26     (2) information on available parent, early childhood, and 
 10.27  family education programs in the community. 
 10.28     (e) On or after one year of operation a resource and 
 10.29  referral program shall provide technical assistance to employers 
 10.30  and existing and potential providers of all types of child care 
 10.31  services.  This assistance shall include: 
 10.32     (1) information on all aspects of initiating new child care 
 10.33  services including licensing, zoning, program and budget 
 10.34  development, and assistance in finding information from other 
 10.35  sources; 
 10.36     (2) information and resources which help existing child 
 11.1   care providers to maximize their ability to serve the children 
 11.2   and parents of their community; 
 11.3      (3) dissemination of information on current public issues 
 11.4   affecting the local and state delivery of child care services; 
 11.5      (4) facilitation of communication between existing child 
 11.6   care providers and child-related services in the community 
 11.7   served; 
 11.8      (5) recruitment of licensed providers; and 
 11.9      (6) options, and the benefits available to employers 
 11.10  utilizing the various options, to expand child care services to 
 11.11  employees. 
 11.12     Services prescribed by this section must be designed to 
 11.13  maximize parental choice in the selection of child care and to 
 11.14  facilitate the maintenance and development of child care 
 11.15  services and resources. 
 11.16     (f) Child care resource and referral information must be 
 11.17  provided to all persons requesting services and to all types of 
 11.18  child care providers and employers. 
 11.19     (g) Each resource and referral program shall coordinate 
 11.20  early childhood training for child care providers in that 
 11.21  program's service delivery area.  The resource and referral 
 11.22  program shall convene an early childhood care and education 
 11.23  training advisory committee to assist in the following 
 11.24  activities: 
 11.25     (1) assess the early childhood care and education training 
 11.26  needs of child care center staff and family and group family 
 11.27  child care providers, including both the needs related to early 
 11.28  childhood development and to the development of school-age 
 11.29  children; 
 11.30     (2) coordinate existing both early childhood and school-age 
 11.31  care and education training; 
 11.32     (3) develop new early childhood and school-age care and 
 11.33  education training opportunities; and 
 11.34     (4) publicize all early childhood and school-age training 
 11.35  classes and workshops to child care center staff and family and 
 11.36  group family child care providers in the service delivery area. 
 12.1      (h) Public or private entities may apply to the 
 12.2   commissioner for funding.  A local match of up to 25 percent is 
 12.3   required. 
 12.4      Sec. 18.  Minnesota Statutes 1996, section 119B.19, is 
 12.5   amended by adding a subdivision to read: 
 12.6      Subd. 4a. [GRANT REQUIREMENTS.] (a) Each school-age care 
 12.7   program shall work with the resource and referral program in the 
 12.8   geographic region to coordinate training for school-age care 
 12.9   providers in that program's service delivery area. 
 12.10     (b) Public or private entities may apply to the 
 12.11  commissioner for funding.  A local match of up to 25 percent is 
 12.12  required. 
 12.13     Sec. 19.  Minnesota Statutes 1997 Supplement, section 
 12.14  119B.21, subdivision 2, is amended to read: 
 12.15     Subd. 2.  [DISTRIBUTION OF FUNDS.] (a) The commissioner 
 12.16  shall allocate grant money appropriated for child care service 
 12.17  development among the development regions designated by the 
 12.18  governor under section 462.385, considering the following 
 12.19  factors for each economic development region: 
 12.20     (1) the number of children under 13 14 years of age needing 
 12.21  child care in the service area; 
 12.22     (2) the geographic area served by the agency; 
 12.23     (3) the ratio of children under 13 14 years of age needing 
 12.24  child care to the number of licensed spaces in the service area; 
 12.25     (4) the number of licensed child care providers and 
 12.26  extended day school-age child care programs in the service area; 
 12.27  and 
 12.28     (5) other related factors determined by the commissioner. 
 12.29     (b) Out of the amount allocated for each economic 
 12.30  development region, the commissioner shall award grants based on 
 12.31  the recommendation of the child care regional advisory 
 12.32  committees.  In addition, the commissioner shall award no more 
 12.33  than 75 percent of the money either to child care facilities for 
 12.34  the purpose of facility improvement or interim financing or to 
 12.35  child care workers for staff training expenses.  
 12.36     (c) Any funds unobligated may be used by the commissioner 
 13.1   to award grants to proposals that received funding 
 13.2   recommendations by the regional advisory committees but were not 
 13.3   awarded due to insufficient funds.  
 13.4      (d) The commissioner may allocate grants under this section 
 13.5   for a two-year period and may carry forward funds from the first 
 13.6   year as necessary. 
 13.7      Sec. 20.  Minnesota Statutes 1997 Supplement, section 
 13.8   119B.21, subdivision 4, is amended to read: 
 13.9      Subd. 4.  [DISTRIBUTION OF FUNDS FOR CHILD CARE RESOURCE 
 13.10  AND REFERRAL PROGRAMS.] (a) The commissioner shall allocate 
 13.11  funds appropriated for child care resource and referral services 
 13.12  considering the following factors for each economic development 
 13.13  region served by the child care resource and referral agency:  
 13.14     (1) the number of children under 13 14 years of age needing 
 13.15  child care in the service area; 
 13.16     (2) the geographic area served by the agency; 
 13.17     (3) the ratio of children under 13 14 years of age needing 
 13.18  care to the number of licensed spaces in the service area; 
 13.19     (4) the number of licensed child care providers and 
 13.20  extended day school-age child care programs in the service area; 
 13.21  and 
 13.22     (5) other related factors determined by the commissioner.  
 13.23     (b) The commissioner may renew grants to existing resource 
 13.24  and referral agencies that have met state standards and have 
 13.25  been designated as the child care resource and referral service 
 13.26  for a particular geographical area.  The recipients of renewal 
 13.27  grants are exempt from the proposal review process. 
 13.28     Sec. 21.  Minnesota Statutes 1997 Supplement, section 
 13.29  119B.21, subdivision 5, is amended to read: 
 13.30     Subd. 5.  [PURPOSES FOR WHICH A CHILD CARE SERVICES GRANT 
 13.31  MAY BE AWARDED.] The commissioner may award grants for: 
 13.32     (1) child care service development grants for the following 
 13.33  purposes: 
 13.34     (i) for creating new licensed day care facilities and 
 13.35  expanding existing facilities, including, but not limited to, 
 13.36  supplies, equipment, facility renovation, and remodeling; 
 14.1      (ii) for improving licensed day care facility programs, 
 14.2   including, but not limited to, staff specialists, staff 
 14.3   training, supplies, equipment, and facility renovation and 
 14.4   remodeling; 
 14.5      (iii) for supportive child development services including, 
 14.6   but not limited to, in-service training, curriculum development, 
 14.7   consulting specialist, resource centers, and program and 
 14.8   resource materials; 
 14.9      (iv) for carrying out programs including, but not limited 
 14.10  to, staff, supplies, equipment, facility renovation, and 
 14.11  training; 
 14.12     (v) for interim financing; 
 14.13     (vi) family child care technical assistance awards; and 
 14.14     (vii) for capacity building through the purchase of 
 14.15  appropriate technology and software, and staff training to 
 14.16  create, enhance, and maintain financial systems for facilities; 
 14.17     (2) child care resource and referral program services 
 14.18  identified in section 119B.19, subdivision 3; or 
 14.19     (3) targeted recruitment initiatives to expand and build 
 14.20  capacity of the child care system; or 
 14.21     (4) school-age care programs. 
 14.22     Sec. 22.  Minnesota Statutes 1997 Supplement, section 
 14.23  119B.21, subdivision 11, is amended to read: 
 14.24     Subd. 11.  [ADVISORY TASK FORCE.] The commissioner may 
 14.25  convene a statewide advisory task force which shall advise the 
 14.26  commissioner on grants or other child care issues.  The 
 14.27  following constituent groups must be represented:  family child 
 14.28  care providers, center providers, school-age care providers, 
 14.29  parent users, health services, social services, Head Start, 
 14.30  public schools, employers, and other citizens with demonstrated 
 14.31  interest in child care issues.  Each regional grant review 
 14.32  committee formed under subdivision 3, shall appoint a 
 14.33  representative to the advisory task force.  Additional members 
 14.34  may be appointed by the commissioner.  The commissioner may 
 14.35  convene meetings of the task force as needed.  Terms of office 
 14.36  and removal from office are governed by the appointing body.  
 15.1   The commissioner may compensate members for their travel, child 
 15.2   care, and child care provider substitute expenses for meetings 
 15.3   of the task force.  
 15.4      Sec. 23.  Minnesota Statutes 1996, section 120.1701, 
 15.5   subdivision 5, is amended to read: 
 15.6      Subd. 5.  [INTERAGENCY EARLY INTERVENTION COMMITTEES.] (a) 
 15.7   A school district, group of districts, or special education 
 15.8   cooperative, in cooperation with the health and human service 
 15.9   agencies located in the county or counties in which the district 
 15.10  or cooperative is located, shall establish an interagency early 
 15.11  intervention committee for children with disabilities under age 
 15.12  five and their families.  Committees shall include 
 15.13  representatives of local and regional health, education, and 
 15.14  county human service agencies; county boards; school boards; 
 15.15  early childhood family education programs; child care resource 
 15.16  and referral programs; child care providers; parents of young 
 15.17  children with disabilities under age 12; current service 
 15.18  providers; and may also include representatives from other 
 15.19  private or public agencies such as family service 
 15.20  collaboratives.  The committee shall elect a chair from among 
 15.21  its members and shall meet at least quarterly. 
 15.22     (b) The committee shall develop and implement interagency 
 15.23  policies and procedures concerning the following ongoing duties: 
 15.24     (1) develop public awareness systems designed to inform 
 15.25  potential recipient families of available programs and services; 
 15.26     (2) implement interagency child find systems designed to 
 15.27  actively seek out, identify, and refer infants and young 
 15.28  children with, or at risk of, disabilities and their families; 
 15.29     (3) establish and evaluate the identification, referral, 
 15.30  child and family assessment systems, procedural safeguard 
 15.31  process, and community learning systems to recommend, where 
 15.32  necessary, alterations and improvements; 
 15.33     (4) assure the development of individualized family service 
 15.34  plans for all eligible infants and toddlers with disabilities 
 15.35  from birth through age two, and their families, and individual 
 15.36  education plans and individual service plans when necessary to 
 16.1   appropriately serve children with disabilities, age three and 
 16.2   older, and their families and recommend assignment of financial 
 16.3   responsibilities to the appropriate agencies.  Agencies are 
 16.4   encouraged to develop individual family service plans for 
 16.5   children with disabilities, age three and older; 
 16.6      (5) implement a process for assuring that services involve 
 16.7   cooperating agencies at all steps leading to individualized 
 16.8   programs; 
 16.9      (6) facilitate the development of a transitional plan if a 
 16.10  service provider is not recommended to continue to provide 
 16.11  services; 
 16.12     (7) identify the current services and funding being 
 16.13  provided within the community for children with disabilities 
 16.14  under age five and their families; 
 16.15     (8) develop a plan for the allocation and expenditure of 
 16.16  additional state and federal early intervention funds under 
 16.17  United States Code, title 20, section 1471 et seq., (Part H, 
 16.18  Public Law Number 102-119) and United States Code, title 20, 
 16.19  section 631, et seq., (Chapter I, Public Law Number 89-313); and 
 16.20     (9) develop a policy that is consistent with section 13.05, 
 16.21  subdivision 9, and federal law to enable a member of an 
 16.22  interagency early intervention committee to allow another member 
 16.23  access to data classified as not public.; and 
 16.24     (10) identify the child care services available in the 
 16.25  community for children with disabilities and facilitate a 
 16.26  process for the integration and coordination of child care 
 16.27  services with other services provided to children with 
 16.28  disabilities. 
 16.29     (c) The local committee shall also: 
 16.30     (1) participate in needs assessments and program planning 
 16.31  activities conducted by local social service, health and 
 16.32  education agencies for young children with disabilities and 
 16.33  their families; 
 16.34     (2) review and comment on the early intervention section of 
 16.35  the total special education system for the district, the county 
 16.36  social service plan, the section or sections of the community 
 17.1   health services plan that address needs of and service 
 17.2   activities targeted to children with special health care needs, 
 17.3   and the section of the maternal and child health special project 
 17.4   grants that address needs of and service activities targeted to 
 17.5   children with chronic illness and disabilities; and 
 17.6      (3) prepare a yearly summary on the progress of the 
 17.7   community in serving young children with disabilities, and their 
 17.8   families, including the expenditure of funds, the identification 
 17.9   of unmet service needs identified on the individual family 
 17.10  services plan and other individualized plans, and local, state, 
 17.11  and federal policies impeding the implementation of this section.
 17.12     (d) The summary must be organized following a format 
 17.13  prescribed by the commissioner of the state lead agency and must 
 17.14  be submitted to each of the local agencies and to the state 
 17.15  interagency coordinating council by October 1 of each year. 
 17.16     The departments of children, families, and learning, 
 17.17  health, and human services must provide assistance to the local 
 17.18  agencies in developing cooperative plans for providing services. 
 17.19     Sec. 24.  Minnesota Statutes 1997 Supplement, section 
 17.20  121.88, subdivision 10, is amended to read: 
 17.21     Subd. 10.  [EXTENDED DAY SCHOOL-AGE CARE PROGRAMS.] (a) A 
 17.22  school board may offer, as part of a community education 
 17.23  program, an extended day a school-age care program for children 
 17.24  from kindergarten through grade 6 for the purpose of expanding 
 17.25  students' learning opportunities.  If the school board chooses 
 17.26  not to offer a school-age care program, it may allow an 
 17.27  appropriate insured community group, for profit entity or 
 17.28  nonprofit organization to use available school facilities for 
 17.29  the purpose of offering a school-age care program. 
 17.30     (b) A school-age care program must include the following: 
 17.31     (1) adult supervised programs while school is not in 
 17.32  session; 
 17.33     (2) parental involvement in program design and direction; 
 17.34     (3) partnerships with the K-12 system, and other public, 
 17.35  private, or nonprofit entities; and 
 17.36     (4) opportunities for trained secondary school pupils to 
 18.1   work with younger children in a supervised setting as part of a 
 18.2   community service program.; and 
 18.3      (5) access to available school facilities, including the 
 18.4   gymnasium, sports equipment, computer labs, and media centers, 
 18.5   when not otherwise in use as part of the operation of the 
 18.6   school; 
 18.7      (b) (c) The district may charge a sliding fee based upon 
 18.8   family income for extended day school-age care programs.  The 
 18.9   district may receive money from other public or private sources 
 18.10  for the extended day school-age care program.  The school board 
 18.11  of the district shall develop standards for school- age child 
 18.12  care programs.  Districts with programs in operation before July 
 18.13  1, 1990, must adopt standards before October 1, 1991.  All other 
 18.14  districts must adopt standards Within one year after the 
 18.15  district first offers services under a program authorized by 
 18.16  this subdivision., the state board of education may not adopt 
 18.17  rules for extended day school-age care programs. 
 18.18     (c) (d) The district shall maintain a separate account 
 18.19  within the community services fund for all funds related to the 
 18.20  extended day school-age care program. 
 18.21     (e) A district is encouraged to coordinate the school-age 
 18.22  care program with its special education, vocational education, 
 18.23  adult basic education, early childhood family education 
 18.24  programs, K-12 instruction and curriculum services, youth 
 18.25  development and youth service agencies, and with related 
 18.26  services provided by other governmental agencies and nonprofit 
 18.27  agencies. 
 18.28     Sec. 25.  Minnesota Statutes 1996, section 245A.06, 
 18.29  subdivision 2, is amended to read: 
 18.30     Subd. 2.  [RECONSIDERATION OF CORRECTION ORDERS.] If the 
 18.31  applicant or license holder believes that the contents of the 
 18.32  commissioner's correction order are in error, the applicant or 
 18.33  license holder may ask the department of human services to 
 18.34  reconsider the parts of the correction order that are alleged to 
 18.35  be in error.  The commissioner's correction order given to the 
 18.36  applicant or license holder must inform the applicant or license 
 19.1   holder of the right to request reconsideration by the 
 19.2   commissioner.  The request for reconsideration must be in 
 19.3   writing and received by the commissioner within 20 calendar days 
 19.4   after receipt of the correction order by the applicant or 
 19.5   license holder, and: 
 19.6      (1) specify the parts of the correction order that are 
 19.7   alleged to be in error; 
 19.8      (2) explain why they are in error; and 
 19.9      (3) include documentation to support the allegation of 
 19.10  error. 
 19.11     A request for reconsideration does not stay any provisions 
 19.12  or requirements of the correction order.  The commissioner's 
 19.13  disposition of a request for reconsideration is final and not 
 19.14  subject to appeal under chapter 14. 
 19.15     Sec. 26.  Minnesota Statutes 1996, section 256.045, is 
 19.16  amended by adding a subdivision to read: 
 19.17     Subd. 3c.  [FINAL ORDER IN HEARING UNDER SECTION 119B.16.] 
 19.18  The state human services referee shall recommend an order to the 
 19.19  commissioner of children, families, and learning in an appeal 
 19.20  under section 119B.16.  The commissioner shall affirm, reverse, 
 19.21  or modify the order.  An order issued under this subdivision is 
 19.22  conclusive on the parties unless an appeal is taken under 
 19.23  subdivision 7.  
 19.24     Sec. 27.  Minnesota Statutes 1996, section 256.045, 
 19.25  subdivision 6, is amended to read: 
 19.26     Subd. 6.  [ADDITIONAL POWERS OF THE COMMISSIONER; 
 19.27  SUBPOENAS.] (a) The commissioner of human services, or the 
 19.28  commissioner of health for matters within the commissioner's 
 19.29  jurisdiction under subdivision 3b, or the commissioner of 
 19.30  children, families, and learning for matters within the 
 19.31  commissioner's jurisdiction under subdivision 3, may initiate a 
 19.32  review of any action or decision of a county agency and direct 
 19.33  that the matter be presented to a state human services referee 
 19.34  for a hearing held under subdivision 3, 3a, 3b, or 4a.  In all 
 19.35  matters dealing with human services committed by law to the 
 19.36  discretion of the county agency, the commissioner's judgment may 
 20.1   be substituted for that of the county agency.  The commissioner 
 20.2   may order an independent examination when appropriate. 
 20.3      (b) Any party to a hearing held pursuant to subdivision 3, 
 20.4   3a, 3b, or 4a may request that the commissioner issue a subpoena 
 20.5   to compel the attendance of witnesses at the hearing.  The 
 20.6   issuance, service, and enforcement of subpoenas under this 
 20.7   subdivision is governed by section 357.22 and the Minnesota 
 20.8   Rules of Civil Procedure. 
 20.9      (c) The commissioner may issue a temporary order staying a 
 20.10  proposed demission by a residential facility licensed under 
 20.11  chapter 245A while an appeal by a recipient under subdivision 3 
 20.12  is pending or for the period of time necessary for the county 
 20.13  agency to implement the commissioner's order. 
 20.14     Sec. 28.  Minnesota Statutes 1997 Supplement, section 
 20.15  256.045, subdivision 7, is amended to read: 
 20.16     Subd. 7.  [JUDICIAL REVIEW.] Except for a prepaid health 
 20.17  plan, any party who is aggrieved by an order of the commissioner 
 20.18  of human services, or the commissioner of health in appeals 
 20.19  within the commissioner's jurisdiction under subdivision 3b, or 
 20.20  the commissioner of children, families, and learning in appeals 
 20.21  within the commissioner's jurisdiction under subdivision 3, may 
 20.22  appeal the order to the district court of the county responsible 
 20.23  for furnishing assistance, or, in appeals under subdivision 3b, 
 20.24  the county where the maltreatment occurred, by serving a written 
 20.25  copy of a notice of appeal upon the commissioner and any adverse 
 20.26  party of record within 30 days after the date the commissioner 
 20.27  issued the order, the amended order, or order affirming the 
 20.28  original order, and by filing the original notice and proof of 
 20.29  service with the court administrator of the district court.  
 20.30  Service may be made personally or by mail; service by mail is 
 20.31  complete upon mailing; no filing fee shall be required by the 
 20.32  court administrator in appeals taken pursuant to this 
 20.33  subdivision, with the exception of appeals taken under 
 20.34  subdivision 3b.  The commissioner may elect to become a party to 
 20.35  the proceedings in the district court.  Except for appeals under 
 20.36  subdivision 3b, any party may demand that the commissioner 
 21.1   furnish all parties to the proceedings with a copy of the 
 21.2   decision, and a transcript of any testimony, evidence, or other 
 21.3   supporting papers from the hearing held before the human 
 21.4   services referee, by serving a written demand upon the 
 21.5   commissioner within 30 days after service of the notice of 
 21.6   appeal.  Any party aggrieved by the failure of an adverse party 
 21.7   to obey an order issued by the commissioner under subdivision 5 
 21.8   may compel performance according to the order in the manner 
 21.9   prescribed in sections 586.01 to 586.12. 
 21.10     Sec. 29.  Laws 1997, chapter 162, article 4, section 63, 
 21.11  subdivision 3, is amended to read: 
 21.12     Subd. 3.  [TANF CHILD CARE.] For child care assistance 
 21.13  according to Minnesota Statutes, section 119B.05: 
 21.14       $34,331,000 $22,468,000    .....     1998 
 21.15       $64,838,000 $83,119,000    .....     1999 
 21.16     Up to $500,000 of the fiscal year 1998 appropriation may be 
 21.17  used for grants under section 23. 
 21.18     Any balance in the first year does not cancel but is 
 21.19  available in the second year. 
 21.20     Sec. 30.  [NONSTANDARD HOUR CHILD CARE PILOT PROJECT.] 
 21.21     The commissioner of children, families, and learning shall 
 21.22  establish a program to develop family child care during 
 21.23  nonstandard hours.  The program may pay a guaranteed subsidy for 
 21.24  up to one year of providing nonstandard hour child care in a 
 21.25  family child care home.  Any subsidy must be reduced by the 
 21.26  amount of income the provider receives from nonstandard hour 
 21.27  child care.  The program must include start-up assistance for 
 21.28  new nonstandard hour child care providers, including mentoring, 
 21.29  technical assistance, marketing, and provider training.  The 
 21.30  program may also make start-up grants to participating 
 21.31  nonstandard hour providers to purchase toys and equipment for 
 21.32  nonstandard hour care.  The commissioner may provide grants for 
 21.33  developing nonstandard hour child care under this section. 
 21.34     Sec. 31.  [INTERGENERATIONAL CARE.] 
 21.35     The commissioners of children, families, and learning and 
 21.36  of human services shall encourage licensed nursing homes to 
 22.1   establish licensed child care programs that emphasize 
 22.2   intergenerational activities for seniors and young children. 
 22.3      Sec. 32.  [FEASIBILITY OF PREPAID CHILD CARE ASSISTANCE.] 
 22.4      The commissioner of children, families, and learning must 
 22.5   consider ways to ensure full payment to child care providers 
 22.6   while maintaining fiscal accountability to county, state, and 
 22.7   federal governments, including the feasibility of: 
 22.8      (1) providing prepayment of child care assistance to 
 22.9   parents so that they may prepay child care expenses; 
 22.10     (2) standardizing county billing forms and billing cycles; 
 22.11     (3) improving and streamlining approval and reauthorization 
 22.12  process; and 
 22.13     (4) allowing providers to use accrediting bodies other than 
 22.14  N.A.E.Y.C. to qualify for the reimbursement bonus. 
 22.15     Sec. 33.  [FEDERAL TANF TRANSFERS.] 
 22.16     Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
 22.17  LEARNING.] The sums indicated in this section are transferred 
 22.18  from the federal TANF fund to the child care and development 
 22.19  fund and appropriated to the department of children, families, 
 22.20  and learning for fiscal year 1999. 
 22.21     Subd. 2.  [LOAN FORGIVENESS.] To provide funds to forgive 
 22.22  all or part of child development education and training loans 
 22.23  under Minnesota Statutes, section 119B.18, subdivision 3: 
 22.24       $  300,000     .....     1999 
 22.25     This is a one-time appropriation. 
 22.26     Subd. 3.  [CHILD CARE BUSINESS PRACTICES ASSISTANCE.] For 
 22.27  the regional resource and referral programs to provide business 
 22.28  practices assistance to start-up and established child care 
 22.29  facilities and family child care providers under Minnesota 
 22.30  Statutes, section 119B.18, subdivision 4: 
 22.31       $  300,000     .....     1999 
 22.32     This is a one-time appropriation. 
 22.33     Subd. 4.  [PRELICENSING ASSISTANCE.] For grants to resource 
 22.34  and referral programs to provide prelicensing assistance under 
 22.35  section 13: 
 22.36       $  150,000     .....     1999 
 23.1      This is a one-time appropriation. 
 23.2      Subd. 5.  [CHILD CARE DEVELOPMENT.] For grants to public 
 23.3   and private agencies to:  (1) respond to locally determined 
 23.4   needs to increase child care capacity including nonstandard hour 
 23.5   care and care for specific groups of children; and (2) to 
 23.6   collect, analyze and report data to support research to guide 
 23.7   the development of child care and welfare reform policy: 
 23.8        $1,000,000     .....     1999 
 23.9      Of this amount, up to $100,000 is for grants to develop 
 23.10  nonstandard hour family child care under section 30. 
 23.11     This is a one-time appropriation. 
 23.12     Subd. 6.  [CHILD CARE QUALITY IMPROVEMENT GRANTS.] For 
 23.13  grants to public and private agencies to improve the quality of 
 23.14  child care: 
 23.15       $1,100,000     .....     1999 
 23.16     Grants may be made for the following purposes: 
 23.17     (1) research-based child development training for child 
 23.18  care providers; 
 23.19     (2) assistance for providers to achieve accreditation; 
 23.20     (3) incentives for staff retention; and 
 23.21     (4) training for new providers with emphasis on care for 
 23.22  children with special needs. 
 23.23     This is a one-time appropriation. 
 23.24     Subd. 7.  [MULTICULTURAL CHILD CARE ASSISTANCE.] To provide 
 23.25  assistance to child care providers in communities of color under 
 23.26  section 14:  
 23.27       $  150,000      ....      1999
 23.28     This is a one-time appropriation. 
 23.29     Subd. 8.  [SCHOOL-AGE COOPERATION GRANTS.] For grants to 
 23.30  promote cooperation and coordination in school-age child care 
 23.31  programs between school districts, community education, park 
 23.32  boards, after school programs, and other entities and programs 
 23.33  serving school-age children: 
 23.34       $  500,000     .....     1999 
 23.35     Of this amount up to $200,000 is for grants to start-up 
 23.36  school-age child care programs and $150,000 is for grants to 
 24.1   resource and referral programs to provide prelicensing technical 
 24.2   assistance for child care facilities and family child care 
 24.3   providers. 
 24.4      This is a one-time appropriation. 
 24.5      Subd. 9.  [CHILD CARE DATA MANAGEMENT PROJECT.] For the 
 24.6   design and implementation of a statewide child care data 
 24.7   management system for child care assistance programs: 
 24.8        $1,500,000     .....     1999 
 24.9      This is a one-time appropriation.  
 24.10     Sec. 34.  [REVISOR'S INSTRUCTION.] 
 24.11     The revisor of statutes shall change the phrase "school-age 
 24.12  child care" to "school-age care" wherever it appears in the next 
 24.13  edition of Minnesota Statutes and Minnesota Rules. 
 24.14     Sec. 35.  [REPEALER WITHOUT EFFECT.] 
 24.15     The repeal of Minnesota Statutes, section 119B.03, 
 24.16  subdivision 7, by Laws 1997, chapter 162, article 1, section 19, 
 24.17  is without effect and Minnesota Statutes, section 119B.03, 
 24.18  subdivision 7, remains in effect after June 30, 1997, as amended 
 24.19  by Laws 1997, chapter 162, article 4, section 14.  
 24.20     Sec. 36.  [REPEALER.] 
 24.21     Minnesota Statutes 1997 Supplement, section 119B.075, is 
 24.22  repealed. 
 24.23     Sec. 37.  [EFFECTIVE DATE.] 
 24.24     Sections 29 and 36 are effective the day following final 
 24.25  enactment. 
 24.26     Section 35 is effective July 1, 1997. 
 24.27                             ARTICLE 2 
 24.28                        PREVENTION PROGRAMS 
 24.29     Section 1.  [119C.01] [ESTABLISHMENT.] 
 24.30     The Minnesota family assets for independence initiative is 
 24.31  established to provide incentives for low-income families to 
 24.32  accrue assets for education, housing, and economic development 
 24.33  purposes. 
 24.34     Sec. 2.  [119C.02] [DEFINITIONS.] 
 24.35     Subdivision 1.  [FAMILY ASSET ACCOUNT.] "Family asset 
 24.36  account" means a savings account opened by a household 
 25.1   participating in the Minnesota family assets for independence 
 25.2   initiative. 
 25.3      Subd. 2.  [COMMISSIONER.] "Commissioner" means the 
 25.4   commissioner of children, families, and learning. 
 25.5      Subd. 3.  [FIDUCIARY ORGANIZATION.] "Fiduciary organization"
 25.6   means: 
 25.7      (1) a community action agency that has obtained recognition 
 25.8   under section 268.53; 
 25.9      (2) a community development credit union that: 
 25.10     (i) has a dual mission of promoting community development 
 25.11  and providing high quality services to predominantly low-income 
 25.12  people; 
 25.13     (ii) serves an investment area or targeted population; 
 25.14     (iii) provides development services in conjunction with 
 25.15  equity investments or loans, directly or through a subsidiary or 
 25.16  affiliate; 
 25.17     (iv) maintains, through representation on its governing 
 25.18  board or otherwise, accountability to residents of its 
 25.19  investment area or targeted population; and 
 25.20     (v) is not an agency or instrumentality of the United 
 25.21  States, or of the state or a political subdivision of the state; 
 25.22  or 
 25.23     (3) a women-oriented economic development agency 
 25.24  experienced in areas of micro-enterprise programs and job 
 25.25  development issues that: 
 25.26     (i) is a 501 (c)(3) organization; 
 25.27     (ii) provides a broad range of services including business 
 25.28  loans, training and technical assistance, assistance with 
 25.29  personal finances, employment assessment, and training, 
 25.30  placement and retention services; 
 25.31     (iii) serves low-income residents of at least eight 
 25.32  Minnesota counties; and 
 25.33     (iv) is not an agency or instrumentality of the United 
 25.34  States, the state of Minnesota or any of its political 
 25.35  subdivisions. 
 25.36     Subd. 4.  [ELIGIBLE EDUCATIONAL INSTITUTION.] "Eligible 
 26.1   educational institution" means: 
 26.2      (1) an institution described in United States Code, title 
 26.3   20, section 1088(a)(1) or 1141(a); and 
 26.4      (2) an area vocational education school as defined in 
 26.5   United States Code, title 20, section 2471(4)(C) or (D). 
 26.6      Subd. 5.  [FINANCIAL INSTITUTION.] "Financial institution" 
 26.7   means a bank, bank and trust, savings bank, savings association, 
 26.8   or credit union, the deposits of which are insured by the 
 26.9   Federal Deposit Insurance Corporation or the National Credit 
 26.10  Union Administration. 
 26.11     Subd. 6.  [POST-SECONDARY EDUCATIONAL EXPENSES.] 
 26.12  "Post-secondary educational expenses" means: 
 26.13     (1) tuition and fees required for the enrollment or 
 26.14  attendance of a student at an eligible educational institution; 
 26.15  and 
 26.16     (2) fees, books, supplies, and equipment required for 
 26.17  courses of instruction at an eligible educational institution. 
 26.18     Subd. 7.  [QUALIFIED ACQUISITION COSTS.] "Qualified 
 26.19  acquisition costs" means the costs of acquiring, constructing, 
 26.20  or reconstructing a residence, including any usual or reasonable 
 26.21  settlement, financing, or other closing costs. 
 26.22     Subd. 8.  [QUALIFIED BUSINESS.] "Qualified business" means 
 26.23  any business that does not contravene any law or public policy. 
 26.24     Subd. 9.  [QUALIFIED BUSINESS CAPITALIZATION 
 26.25  EXPENSES.] "Qualified business capitalization expenses" means 
 26.26  qualified expenditures for the capitalization of a business 
 26.27  pursuant to a qualified plan. 
 26.28     Subd. 10.  [QUALIFIED EXPENDITURES.] "Qualified 
 26.29  expenditures" means expenditures included in a qualified plan, 
 26.30  including capital, plant, equipment, working capital, and 
 26.31  inventory expenses. 
 26.32     Subd. 11.  [QUALIFIED PLAN.] "Qualified plan" means a 
 26.33  business plan that: 
 26.34     (1) is approved by a financial institution, or by a 
 26.35  nonprofit loan fund or microenterprise program that has 
 26.36  demonstrated fiduciary integrity; 
 27.1      (2) includes a description of services or goods to be sold, 
 27.2   a marketing plan, and projected financial statements; and 
 27.3      (3) may require the participant to obtain the assistance of 
 27.4   an experienced entrepreneurial adviser. 
 27.5      Subd. 12.  [QUALIFIED PRINCIPAL RESIDENCE.] "Qualified 
 27.6   principal residence" means a principal residence within the 
 27.7   meaning of section 1034 of the Internal Revenue Code of 1986, 
 27.8   the qualified acquisition costs of which do not exceed 100 
 27.9   percent of the average area purchase price applicable to the 
 27.10  residence determined according to section 143(e)(2) and (3) of 
 27.11  the Internal Revenue Code of 1986. 
 27.12     Subd. 13.  [FEDERAL POVERTY LEVEL.] "Federal poverty level" 
 27.13  means the poverty income guidelines published in the most recent 
 27.14  calendar year by the United States Department of Health and 
 27.15  Human Services. 
 27.16     Subd. 14.  [HOUSEHOLD.] "Household" means all individuals 
 27.17  who share use of a dwelling unit as primary quarters for living 
 27.18  and eating separate from other individuals. 
 27.19     Sec. 3.  [119C.03] [GRANTS APPLICATION.] 
 27.20     Subdivision 1.  [GRANTS AWARDED.] The commissioner shall 
 27.21  award grants to fiduciary organizations to provide family asset 
 27.22  services under this chapter for up to four years. 
 27.23     The commissioner will apportion available state and federal 
 27.24  grant funds among applicants in proportion to the size of the 
 27.25  poverty level population in the agency's service area compared 
 27.26  to the size of the poverty level population in the state.  For 
 27.27  fiduciary organizations which are not community action agencies 
 27.28  under section 268.53, the commissioner will identify the 
 27.29  organization's service population for purposes of apportioning 
 27.30  grant funds. 
 27.31     Subd. 2.  [APPLICATIONS.] A fiduciary organization may 
 27.32  apply to the commissioner for a grant to provide family asset 
 27.33  services.  The application must be submitted in a form approved 
 27.34  by the commissioner and must include: 
 27.35     (1) a proposal for the provision of family asset services, 
 27.36  including program objectives, number of participating 
 28.1   households, match rate, availability of adequate funding, 
 28.2   appropriateness of the proposed services for the population to 
 28.3   be served, and outreach activities; 
 28.4      (2) a proposed budget; 
 28.5      (3) a plan for collection of required data and the method 
 28.6   to be used for program evaluation; 
 28.7      (4) evidence of the participation in the development of the 
 28.8   application of any agency or governmental body that will provide 
 28.9   services or assistance to the program; and 
 28.10     (5) any other information the commissioner may require. 
 28.11     Subd. 3.  [DUTIES.] A fiduciary organization that receives 
 28.12  a grant under this chapter shall: 
 28.13     (1) establish an account in which all funds provided to the 
 28.14  organization for the purpose of the family assets for 
 28.15  independence initiative are deposited; 
 28.16     (2) determine whether an applicant household is eligible to 
 28.17  participate in the family assets for independence initiative; 
 28.18     (3) select, from eligible households, the households best 
 28.19  suited to participate, with preference given to individuals 
 28.20  residing within neighborhoods or communities that experience low 
 28.21  rates of income or employment; 
 28.22     (4) develop, with the household, a family asset agreement; 
 28.23     (5) provide households with economic literacy education, 
 28.24  including information on budgeting, use of credit, 
 28.25  homeownership, and long-term financial planning; 
 28.26     (6) provide households with information on early childhood 
 28.27  family education and if appropriate, include participation in 
 28.28  ECFE classes as part of the family asset agreement; 
 28.29     (7) provide matching deposits for households selected to 
 28.30  participate; 
 28.31     (8) coordinate with homeownership, small business, and 
 28.32  related programs administered by the commissioner of trade and 
 28.33  economic development and the commissioner of the Minnesota 
 28.34  housing finance agency; 
 28.35     (9) establish a grievance committee and a procedure to 
 28.36  hear, review, and decide in writing any grievance made by a 
 29.1   household; and 
 29.2      (10) comply with all requirements of this chapter and of 
 29.3   the commissioner related to administration of the grants. 
 29.4      Sec. 4.  [119C.04] [HOUSEHOLD ELIGIBILITY; PARTICIPATION.] 
 29.5      Subdivision 1.  [INITIAL ELIGIBILITY.] To be eligible for 
 29.6   the family assets for independence initiative, the household's 
 29.7   income must be below 200 percent of the federal poverty level 
 29.8   and the household must have assets of $25,000 or less as 
 29.9   determined by the asset eligibility requirements under the 
 29.10  Minnesota plan for low-income household energy assistance.  An 
 29.11  individual who is a dependent of another person for federal 
 29.12  income tax purposes may not be a separate eligible household for 
 29.13  purposes of this chapter, but may be included in the household 
 29.14  of the taxpayer who claims the individual as a dependent if they 
 29.15  meet the definition of household in section 119C.02, subdivision 
 29.16  14.  An individual may not participate in programs under this 
 29.17  chapter if the individual is a debtor for a judgment resulting 
 29.18  from nonpayment of a court-ordered child support obligation.  In 
 29.19  verifying income eligibility, the fiduciary organization shall 
 29.20  apply procedures and policies consistent with procedures and 
 29.21  policies used under the low-income home energy assistance 
 29.22  program. 
 29.23     Subd. 2.  [PARTICIPATION.] To participate in the family 
 29.24  assets for independence initiative, a household must: 
 29.25     (1) be selected by a fiduciary organization; 
 29.26     (2) enter into a family asset agreement with a fiduciary 
 29.27  organization; and 
 29.28     (3) open a savings account at a financial institution. 
 29.29     Subd. 3.  [CONTINUED PARTICIPATION.] A household 
 29.30  participating in the family asset for independence initiative 
 29.31  may continue to make contributions to the savings account 
 29.32  established under subdivision 5 as long as family income is 
 29.33  below 250 percent of the federal poverty level.  The amount of 
 29.34  any contributions made during the time when a participating 
 29.35  household's income is between 200 and 250 percent of the poverty 
 29.36  level is not eligible for the match under section 119C.05. 
 30.1      Subd. 4.  [FAMILY ASSET AGREEMENT; CONTENTS.] The fiduciary 
 30.2   organization and the household must develop a family asset 
 30.3   agreement for the household.  The family asset agreement must 
 30.4   include the amount of the household's regularly scheduled 
 30.5   contribution to their savings account, the household's savings 
 30.6   goal, and how the household will use savings and matching funds 
 30.7   for one or more permissible uses.  The household must agree to 
 30.8   complete an economic literacy training program.  A family asset 
 30.9   agreement may be amended upon agreement by the household and the 
 30.10  agency. 
 30.11     Subd. 5.  [INDIVIDUAL CONTRIBUTIONS.] A household may only 
 30.12  deposit money in a family asset account that is derived from 
 30.13  earned income of members of the household and income from state 
 30.14  and federal earned income credits of members of the household.  
 30.15     Sec. 5.  [119C.05] [WITHDRAWAL; MATCHING; PERMISSIBLE 
 30.16  USES.] 
 30.17     Subdivision 1.  [WITHDRAWAL OF FUNDS.] To receive a match 
 30.18  upon withdrawal of funds from a family asset account, a 
 30.19  participant must make a request for withdrawal of funds and 
 30.20  agree to transfer withdrawn funds to the fiduciary organization. 
 30.21  The fiduciary organization must determine whether the request 
 30.22  for withdrawal of funds is for a permissible use consistent with 
 30.23  this section and the household's family asset agreement.  A 
 30.24  "permissible use" means using funds to pay for: 
 30.25     (1) post-secondary educational expenses; 
 30.26     (2) qualified home acquisition costs; 
 30.27     (3) qualified business capitalization expenses; or 
 30.28     (4) amounts paid for repairs to a qualified principal 
 30.29  residence to comply with city housing or health and safety codes 
 30.30  or for other major repairs or improvements to a qualified 
 30.31  principal residence. 
 30.32     Subd. 2.  [MATCHING.] If the request for withdrawal is 
 30.33  approved, a household's account will be matched at the time of 
 30.34  withdrawal based on the balance in the household's account, 
 30.35  including interest, at the time of withdrawal.  Matches must be 
 30.36  provided as follows: 
 31.1      (1) from the funds provided by the commissioner, a matching 
 31.2   contribution of $2 for every $1 of funds withdrawn from the 
 31.3   family asset account; 
 31.4      (2) from funds other than those provided by the 
 31.5   commissioner, a matching contribution of no less than $2 for 
 31.6   every $1 of funds withdrawn from the family asset account. 
 31.7      Subd. 3.  [VENDOR PAYMENT OF WITHDRAWN FUNDS.] Upon receipt 
 31.8   of withdrawn funds, the agency shall make a direct payment to 
 31.9   the vendor of the goods or services being purchased by the 
 31.10  household. 
 31.11     Sec. 6.  [119C.07] [REPORTING; EVALUATION.] 
 31.12     Subdivision 1.  [PROGRAM REPORTING.] Each fiduciary 
 31.13  organization operating a family assets for independence 
 31.14  initiative shall report annually to the commissioner of 
 31.15  children, families, and learning the number of accounts, the 
 31.16  amount of savings and matches for each account, the uses of the 
 31.17  account, and the number of businesses, homes, and educational 
 31.18  services paid for with money from the account, as well as other 
 31.19  information that may be required for the state to operate the 
 31.20  program effectively. 
 31.21     Subd. 2.  [EVALUATION.] The commissioner shall conduct an 
 31.22  evaluation of the family assets for independence initiative that 
 31.23  analyzes the initiative's impact on savings rates, 
 31.24  homeownership, level of education attained, and self-employment, 
 31.25  and how such impacts vary among different populations and 
 31.26  communities.  The commissioner shall report to the legislature 
 31.27  on the evaluation by January 15, 2003. 
 31.28     Sec. 7.  [119C.08] [ECONOMIC LITERACY CURRICULUM.] 
 31.29     The fiduciary organization shall develop an economic 
 31.30  literacy curriculum for use by agencies participating in the 
 31.31  family assets for independence initiative. 
 31.32     Sec. 8.  Minnesota Statutes 1996, section 124.26, 
 31.33  subdivision 1c, is amended to read: 
 31.34     Subd. 1c.  [PROGRAM APPROVAL.] (a) To receive aid under 
 31.35  this section, a district, a consortium of districts, or a 
 31.36  private nonprofit organization must submit an application by 
 32.1   June 1 describing the program, on a form provided by the 
 32.2   department.  The program must be approved by the commissioner 
 32.3   according to the following criteria:  
 32.4      (1) how the needs of different levels of learning will be 
 32.5   met; 
 32.6      (2) for continuing programs, an evaluation of results; 
 32.7      (3) anticipated number and education level of participants; 
 32.8      (4) coordination with other resources and services; 
 32.9      (5) participation in a consortium, if any, and money 
 32.10  available from other participants; 
 32.11     (6) management and program design; 
 32.12     (7) volunteer training and use of volunteers; 
 32.13     (8) staff development services; 
 32.14     (9) program sites and schedules; and 
 32.15     (10) program expenditures that qualify for aid.  
 32.16     (b) The commissioner may grant adult basic education funds 
 32.17  to a private, nonprofit organization to provide services that 
 32.18  are not offered by a district or that are supplemental to a 
 32.19  district's program.  The A program provided under this provision 
 32.20  must be approved and funded according to the same criteria used 
 32.21  for district programs under paragraph (c). 
 32.22     (c) The commissioner may use up to two percent of the 
 32.23  annual state appropriation for adult basic education for grants 
 32.24  to nonprofit organizations to provide statewide support 
 32.25  services, including but not limited to: 
 32.26     (1) training literacy volunteers; 
 32.27     (2) coordinating volunteer literacy programs in schools and 
 32.28  other locations; 
 32.29     (3) operating a toll-free telephone referral service for 
 32.30  adult students and volunteers; and 
 32.31     (4) promoting literacy awareness. 
 32.32     In making a grant under this paragraph, the commissioner 
 32.33  shall consider an organization's prior experience and capacity 
 32.34  to provide services throughout the state.  
 32.35     (d) Adult basic education programs may be approved under 
 32.36  this subdivision for up to five years.  Five-year program 
 33.1   approval shall be granted to an applicant who has demonstrated 
 33.2   the capacity to: 
 33.3      (1) offer comprehensive learning opportunities and support 
 33.4   service choices appropriate for and accessible to adults at all 
 33.5   basic skill need levels; 
 33.6      (2) provide a participatory and experiential learning 
 33.7   approach based on the strengths, interests, and needs of each 
 33.8   adult, that enables adults with basic skill needs to: 
 33.9      (i) identify, plan for, and evaluate their own progress 
 33.10  toward achieving their defined educational and occupational 
 33.11  goals; 
 33.12     (ii) master the basic academic reading, writing, and 
 33.13  computational skills, as well as the problem-solving, decision 
 33.14  making, interpersonal effectiveness, and other life and learning 
 33.15  skills they need to function effectively in a changing society; 
 33.16     (iii) locate and be able to use the health, governmental, 
 33.17  and social services and resources they need to improve their own 
 33.18  and their families' lives; and 
 33.19     (iv) continue their education, if they desire, to at least 
 33.20  the level of secondary school completion, with the ability to 
 33.21  secure and benefit from continuing education that will enable 
 33.22  them to become more employable, productive, and responsible 
 33.23  citizens; 
 33.24     (3) plan, coordinate, and develop cooperative agreements 
 33.25  with community resources to address the needs that the adults 
 33.26  have for support services, such as transportation, flexible 
 33.27  course scheduling, convenient class locations, and child care; 
 33.28     (4) collaborate with business, industry, labor unions, and 
 33.29  employment-training agencies, as well as with family and 
 33.30  occupational education providers, to arrange for resources and 
 33.31  services through which adults can attain economic 
 33.32  self-sufficiency; 
 33.33     (5) provide sensitive and well trained adult education 
 33.34  personnel who participate in local, regional, and statewide 
 33.35  adult basic education staff development events to master 
 33.36  effective adult learning and teaching techniques; 
 34.1      (6) participate in regional adult basic education peer 
 34.2   program reviews and evaluations; and 
 34.3      (7) submit accurate and timely performance and fiscal 
 34.4   reports. 
 34.5      Sec. 9.  Minnesota Statutes 1996, section 216B.241, 
 34.6   subdivision 2a, is amended to read: 
 34.7      Subd. 2a.  [ENERGY AND CONSERVATION ACCOUNT.] The 
 34.8   commissioner shall deposit money contributed under subdivisions 
 34.9   1a and 1b in the energy and conservation account in the general 
 34.10  fund.  Money in the account is appropriated to the department 
 34.11  for programs designed to meet the energy conservation needs of 
 34.12  low-income persons and to make energy conservation improvements 
 34.13  in areas not adequately served under subdivision 2.  Interest on 
 34.14  money in the account accrues to the account.  Using information 
 34.15  collected under section 216C.02, subdivision 1, paragraph (b), 
 34.16  the commissioner shall, to the extent possible, allocate enough 
 34.17  money to programs for low-income persons to assure that their 
 34.18  needs are being adequately addressed.  The commissioner shall 
 34.19  request the commissioner of finance to transfer money from the 
 34.20  account to the commissioner of economic security children, 
 34.21  families, and learning for an energy conservation program for 
 34.22  low-income persons.  In establishing programs, the commissioner 
 34.23  shall consult political subdivisions and nonprofit and community 
 34.24  organizations, especially organizations engaged in providing 
 34.25  energy and weatherization assistance to low-income persons.  At 
 34.26  least one program must address the need for energy conservation 
 34.27  improvements in areas in which a high percentage of residents 
 34.28  use fuel oil or propane to fuel their source of home heating.  
 34.29  The commissioner may contract with a political subdivision, a 
 34.30  nonprofit or community organization, a public utility, a 
 34.31  municipality, or a cooperative electric association to implement 
 34.32  its programs.  
 34.33     Sec. 10.  Minnesota Statutes 1996, section 239.785, 
 34.34  subdivision 6, is amended to read: 
 34.35     Subd. 6.  [LIQUEFIED PETROLEUM GAS ACCOUNT.] A liquefied 
 34.36  petroleum gas account in the special revenue fund is established 
 35.1   in the state treasury.  Fees and penalties collected under this 
 35.2   section must be deposited in the state treasury and credited to 
 35.3   the liquefied petroleum gas account.  Money in that account, 
 35.4   including interest earned, is appropriated to the commissioner 
 35.5   of economic security children, families, and learning for 
 35.6   programs to improve the energy efficiency of residential 
 35.7   liquefied petroleum gas heating equipment in low-income 
 35.8   households, and, when necessary, to provide weatherization 
 35.9   services to the homes. 
 35.10     Sec. 11.  [268.372] [DELIVERED FUEL CASH FLOW ACCOUNT.] 
 35.11     Subdivision 1.  [ESTABLISHMENT.] There is established a 
 35.12  cash flow account in the state treasury where the commissioner 
 35.13  of finance may use general fund reserves.  These reserves may 
 35.14  only be used to meet cash demands of increasing energy 
 35.15  assistance for low-income households who receive energy 
 35.16  assistance through the federal energy assistance program.  The 
 35.17  commissioner of finance shall administer this account according 
 35.18  to the provisions of section 16A.129.  Money in the account from 
 35.19  anticipated receivables is available to the commissioner of 
 35.20  children, families, and learning for the biennium for the 
 35.21  purposes in this section. 
 35.22     Subd. 2.  [USES OF THE ACCOUNT.] The commissioner may 
 35.23  advance money from the delivered fuel account to participating 
 35.24  energy assistance delivery agencies to establish a voluntary 
 35.25  preseason fuel purchase program.  All money advanced from the 
 35.26  account must be used for preseason fuel purchases or contracts. 
 35.27     Subd. 3.  [DELIVERY AGENCY DUTIES.] Energy assistance 
 35.28  delivery agencies may request advances from the account to 
 35.29  obtain preseason delivered fuels through participating fuel 
 35.30  vendors.  The agencies must ensure that any money advanced from 
 35.31  the account is used to benefit households that are eligible for 
 35.32  the federal low-income energy assistance program.  The energy 
 35.33  assistance delivery agencies must recruit local fuel vendors to 
 35.34  participate in the prepurchase program, negotiate fuel price and 
 35.35  delivery terms, and coordinate services for low-income 
 35.36  households.  Nothing in this section requires fuel vendors to 
 36.1   participate in a preseason purchase program. 
 36.2      Subd. 4.  [COMMISSIONER RESPONSIBILITY.] The commissioner 
 36.3   must establish a prepurchase propane program and summer fill 
 36.4   program for fuel oil to increase the energy assistance available 
 36.5   to low-income households.  The commissioner may advance funds to 
 36.6   participating energy assistance agencies for the purposes of the 
 36.7   program.  The commissioner must repay the amount of any advances 
 36.8   from the delivered fuel cash flow account upon receipt of 
 36.9   federal funds for the low-income energy assistance program.  The 
 36.10  commissioner must annually estimate the amount of federal 
 36.11  payments that will be available to repay advances for the 
 36.12  prepurchase fuel program.  Advances from the delivered fuel cash 
 36.13  flow account must not exceed the amount that can be repaid from 
 36.14  federal funds. 
 36.15     Sec. 12.  Laws 1997, chapter 162, article 3, section 8, 
 36.16  subdivision 3, is amended to read: 
 36.17     Subd. 3.  [TRANSITIONAL HOUSING PROGRAMS.] For transitional 
 36.18  housing programs according to Minnesota Statutes, section 268.38:
 36.19       $1,728,000     .....     1998
 36.20       $1,728,000 $2,041,000    .....     1999
 36.21     Any balance in the first year does not cancel but is 
 36.22  available in the second year. 
 36.23     Of this appropriation, up to five percent each year may be 
 36.24  used for administrative costs.  A portion of this appropriation 
 36.25  may be used for the emergency services grant program under 
 36.26  section 7. 
 36.27     The base appropriation for fiscal year 2000 for the 
 36.28  transitional housing program is equal to the fiscal year 1999 
 36.29  appropriation under this subdivision. 
 36.30     Sec. 13.  Laws 1997, First Special Session chapter 4, 
 36.31  article 10, section 3, subdivision 2, is amended to read: 
 36.32     Subd. 2.  [DEPARTMENT.] For the department of children, 
 36.33  families, and learning: 
 36.34       $24,360,000    .....      1998
 36.35       $23,978,000    .....      1999
 36.36     (a) Any balance in the first year does not cancel but is 
 37.1   available in the second year. 
 37.2      (b) $21,000 each year is from the trunk highway fund. 
 37.3      (c) $622,000 in 1998 and $627,000 in 1999 is for the 
 37.4   academic excellence foundation. 
 37.5      Up to $50,000 each year is contingent upon the match of $1 
 37.6   in the previous year from private sources consisting of either 
 37.7   direct monetary contributions or in-kind contributions of 
 37.8   related goods or services, for each $1 of the appropriation.  
 37.9   The commissioner of children, families, and learning must 
 37.10  certify receipt of the money or documentation for the private 
 37.11  matching funds or in-kind contributions.  The unencumbered 
 37.12  balance from the amount actually appropriated from the 
 37.13  contingent amount in 1998 does not cancel but is available in 
 37.14  1999.  The amount carried forward must not be used to establish 
 37.15  a larger annual base appropriation for later fiscal years. 
 37.16     (d) $207,000 in 1998 and $210,000 in 1999 is for the state 
 37.17  board of education. 
 37.18     (e) $230,000 in 1998 and $234,000 in 1999 is for the board 
 37.19  of teaching. 
 37.20     (f) The expenditures of federal grants and aids as shown in 
 37.21  the biennial budget document and its supplements are approved 
 37.22  and appropriated and shall be spent as indicated. 
 37.23     (g) The department of children, families, and learning 
 37.24  shall develop a performance report on the quality of its 
 37.25  programs and services.  The report must be consistent with the 
 37.26  process specified in Minnesota Statutes, sections 15.90 to 
 37.27  15.92.  The goals, objectives, and measures of this report must 
 37.28  be developed in cooperation with the chairs of the finance 
 37.29  divisions of the education committees of the house of 
 37.30  representatives and senate, the department of finance, and the 
 37.31  office of legislative auditor.  The report must include data to 
 37.32  indicate the progress of the department in meeting its goals and 
 37.33  objectives. 
 37.34     (h) At least $50,000 is to ensure compliance with state and 
 37.35  federal laws prohibiting discrimination because of race, 
 37.36  religion, or sex.  The department shall use the appropriation to 
 38.1   provide state-level leadership on equal education opportunities 
 38.2   which promote elimination of discriminatory practices in the 
 38.3   areas of race, religion, and sex in public schools and public 
 38.4   educational agencies under its general supervision and on 
 38.5   activities including, at least, compliance monitoring and 
 38.6   voluntary compliance when local school district deficiencies are 
 38.7   found. 
 38.8      (i) Notwithstanding Minnesota Statutes, section 15.53, 
 38.9   subdivision 2, the commissioner of children, families, and 
 38.10  learning may contract with a school district for a period no 
 38.11  longer than five consecutive years to work in the development or 
 38.12  implementation of the graduation rule.  The commissioner may 
 38.13  contract for services and expertise as necessary.  The contracts 
 38.14  are not subject to Minnesota Statutes, sections 16B.06 to 16B.08.
 38.15     (j) In preparing the department budget for fiscal years 
 38.16  2000-2001, the department shall shift all administrative funding 
 38.17  from aids appropriations into the appropriation for the 
 38.18  department. 
 38.19     (k) Reallocations of excesses under Minnesota Statutes, 
 38.20  section 124.14, subdivision 7, from appropriations within this 
 38.21  act shall only be made to deficiencies in programs with 
 38.22  appropriations contained within this act. 
 38.23     (l) (k) $850,000 each year is for litigation costs and may 
 38.24  only be used for those purposes.  These appropriations are 
 38.25  one-time only. 
 38.26     (m) (l) Collaborative efforts between the department of 
 38.27  children, families, and learning and the office of technology, 
 38.28  as specified in Minnesota Statutes, section 237A.015, include: 
 38.29     (1) advising the commissioner of children, families, and 
 38.30  learning on new and emerging technologies, potential business 
 38.31  partnerships, and technical standards; 
 38.32     (2) assisting the commissioner of children, families, and 
 38.33  learning in the sharing of data between state agencies relative 
 38.34  to children's programs; and 
 38.35     (3) as requested by the commissioner of children, families, 
 38.36  and learning, assisting in collaborative efforts for joint 
 39.1   prekindergarten through grade 12 and higher education projects, 
 39.2   including the learning network. 
 39.3   The commissioner of children, families, and learning shall have 
 39.4   final approval for prekindergarten through grade 12 programs and 
 39.5   lifelong learning programs, grant awards, and funding decisions. 
 39.6      Sec. 14.  Laws 1997, First Special Session chapter 5, 
 39.7   section 29, is amended to read: 
 39.8      Sec. 29.  [CORRECTION 45.] Laws 1997, chapter 162, article 
 39.9   2, section 31, subdivision 9, is amended to read: 
 39.10     Subd. 9.  [DRUG POLICY AND VIOLENCE PREVENTION PROGRAMS.] 
 39.11  For drug policy, violence prevention, and family visitation 
 39.12  programs: 
 39.13       $3,000,000     .....     1998
 39.14       $3,000,000     .....     1999
 39.15     Any balance in the first year does not cancel but is 
 39.16  available in the second year.  
 39.17     $197,000 $192,000 is appropriated from the state government 
 39.18  special revenue fund to the commissioner of children, families, 
 39.19  and learning for visitation facilities under Minnesota Statutes, 
 39.20  sections 256F.09 and 517.08, subdivision 1c.  $96,000 is 
 39.21  available for the fiscal year beginning July 1, 1997, and 
 39.22  $96,000 is available for the fiscal year beginning July 1, 1998. 
 39.23     Any balance in the first year does not cancel, but is 
 39.24  available in the second year. 
 39.25     Up to $400,000 each year is for grants for mentoring 
 39.26  at-risk youth.  Of the fiscal year 1998 appropriation, up to 
 39.27  $138,000 and of the fiscal year 1999 appropriation up to 
 39.28  $100,000 is for grants under Laws 1995, chapter 226, article 3, 
 39.29  section 62.  
 39.30     Up to $75,000 each year is for grants to community-based 
 39.31  violence prevention councils. 
 39.32     Sec. 15.  [GANG PREVENTION AND INTERVENTION PROGRAM.] 
 39.33     Subdivision 1.  [GANG PREVENTION AND INTERVENTION.] The 
 39.34  commissioner of children, families, and learning shall develop 
 39.35  and administer a gang prevention and intervention program to 
 39.36  provide services (1) to young people who are at risk for 
 40.1   criminal gang involvement; and (2) to young people who are 
 40.2   interested in terminating their gang affiliation. 
 40.3      Subd. 2.  [GRANT APPLICATION.] The department of children, 
 40.4   families, and learning, in consultation with the department of 
 40.5   public safety, department of corrections, office of drug policy 
 40.6   and violence prevention, the criminal gang strike force, one or 
 40.7   more representatives of community-based programs that have 
 40.8   conducted research on street gang culture, and one or more 
 40.9   individuals having direct experience in gang life, shall develop 
 40.10  a grant application that specifies the eligibility criteria for 
 40.11  receiving grants.  A committee selected by this group also must 
 40.12  evaluate applications for grants received by the commissioner of 
 40.13  children, families, and learning and make recommendations to the 
 40.14  commissioner of children, families, and learning on the awarding 
 40.15  of grants. 
 40.16     Subd. 3.  [ELIGIBILITY FOR GRANTS.] A local organization 
 40.17  must meet the following criteria to be eligible for a grant 
 40.18  under the program: 
 40.19     (1) it must be a private, nonprofit organization or local 
 40.20  public agency; and 
 40.21     (2) it must offer and provide services to young people to 
 40.22  prevent gang involvement or to intervene in and end gang 
 40.23  involvement, including, but not limited to, after-school 
 40.24  activities, educational opportunities, job skill development, 
 40.25  community service, life skills, medical services, social 
 40.26  services, and counseling. 
 40.27     Subd. 4.  [ELIGIBILITY FOR SERVICES.] A person who is 
 40.28  eligible for services must be at least seven years old and not 
 40.29  more than 25 years old, at the time the person first receives 
 40.30  services, unless the organization receiving a grant receives 
 40.31  advance approval from the commissioner of children, families, 
 40.32  and learning to provide services outside of this age range. 
 40.33     Sec. 16.  [STATEWIDE COMMUNITY SERVICES INFORMATION AND 
 40.34  REFERRAL GRANT PROGRAM.] 
 40.35     Subdivision 1.  [FAMILY AND COMMUNITY SERVICES ASSISTANCE.] 
 40.36  The commissioner of the department of children, families, and 
 41.1   learning shall develop a grant program to fund a statewide 
 41.2   system of information and referral for community services, 
 41.3   through the nonprofit corporation First Call Minnesota.  The 
 41.4   system must be designed to assist Minnesota families in 
 41.5   accessing needed community services, including health services, 
 41.6   social services, educational programs, housing, and employment 
 41.7   and training services. 
 41.8      Subd. 2.  [GRANTEE'S DUTIES.] The grantee shall: 
 41.9      (1) develop a statewide computer database containing a 
 41.10  comprehensive listing of community services available throughout 
 41.11  Minnesota; 
 41.12     (2) support up to 11 regional centers to collect and 
 41.13  coordinate regional data and develop standards to ensure that 
 41.14  regional data is updated every six months; 
 41.15     (3) establish standards for existing regional information 
 41.16  and referral services to access data, provide public access, and 
 41.17  establish licensing standards; 
 41.18     (4) establish a state data services center to assist 
 41.19  existing regional information and referral centers with data 
 41.20  publication and subscription, administration of public access to 
 41.21  the data, and management and maintenance of resource data; 
 41.22     (5) provide ongoing support for a single statewide 
 41.23  toll-free phone number for public access; 
 41.24     (6) manage the installation of software applications and 
 41.25  Internet access to the statewide computer database; 
 41.26     (7) promote the use of the statewide computer database 
 41.27  among potential users in a region through the support of 
 41.28  regional centers in coordination with existing first call for 
 41.29  help and other information and referral providers; and 
 41.30     (8) coordinate with existing information and referral 
 41.31  agencies in each region, including the senior linkage service 
 41.32  through the Minnesota board on aging and child care resource and 
 41.33  referral programs. 
 41.34     Subd. 3.  [FUNDING.] The commissioner shall assist the 
 41.35  grantee and other state agencies to identify federal funds to 
 41.36  support the statewide system.  The grantee shall seek 
 42.1   contributions from profit and not-for-profit entities to augment 
 42.2   state grant funds received under this section. 
 42.3      Subd. 4.  [COUNTY COOPERATION.] In developing the 
 42.4   information and referral system, the grantee shall coordinate 
 42.5   with county social service agencies established under Minnesota 
 42.6   Statutes, chapter 393, the Minnesota board on aging, and other 
 42.7   public agencies that provide services. 
 42.8      Subd. 5.  [EVALUATION AND REPORT.] The grantee shall 
 42.9   arrange for an independent evaluation of the information and 
 42.10  referral services developed under the grant.  The grantee shall 
 42.11  track requests for services from callers to determine unmet 
 42.12  community service needs in each region.  The grantee shall 
 42.13  submit a report to the commissioner of children, families, and 
 42.14  learning prior to February 15, 1999, with a preliminary 
 42.15  evaluation of the information and referral system, a summary 
 42.16  analysis of the unmet needs in each region, and recommendations 
 42.17  on future funding needs of the information and referral system. 
 42.18     Sec. 17.  [ACCESS TO EDUCATION TAX CREDITS.] 
 42.19     The department of children, families, and learning must 
 42.20  explore a mechanism through which low income children, from 
 42.21  families with incomes below 200 percent of the federal poverty 
 42.22  guidelines can access funds to purchase supplies and resources 
 42.23  allowed under the education tax credit in which funds for these 
 42.24  purposes could be returned to the account after the household 
 42.25  applies for and receives the education tax credit. 
 42.26     Sec. 18.  [PROGRAM TRANSFER.] 
 42.27     The homeless youth facilities grants under Minnesota 
 42.28  Statutes, section 268.918 are transferred from the department of 
 42.29  economic security to the department of children, families, and 
 42.30  learning.  This grant program must be transferred according to 
 42.31  the requirements of Minnesota Statutes, sections 119A.04, 
 42.32  subdivisions 6 and 7; and 119A.15, subdivision 5a.  
 42.33     Sec. 19.  [APPROPRIATION; ADMINISTRATION OF ABUSED CHILDREN 
 42.34  PROGRAMS.] 
 42.35     Of the amount appropriated under Laws 1997, chapter 162, 
 42.36  article 2, section 31, subdivision 8, up to $134,000 for fiscal 
 43.1   year 1998 and up to $134,000 for fiscal year 1999 may be used 
 43.2   for state costs to administer abused children programs under 
 43.3   Minnesota Statutes, sections 119A.20 to 119A.23. 
 43.4      Sec. 20.  [APPROPRIATION; ADMINISTRATION OF DRUG POLICY AND 
 43.5   VIOLENCE PREVENTION PROGRAMS.] 
 43.6      Of the amount appropriated under Laws 1997, chapter 162, 
 43.7   article 2, section 31, subdivision 9, up to $305,000 for fiscal 
 43.8   year 1998 and up to $305,000 for fiscal year 1999 may be used 
 43.9   for state costs to administer drug policy and violence 
 43.10  prevention programs under Minnesota Statutes, sections 119A.25 
 43.11  to 119A.29 and 119A.32 to 119A.34. 
 43.12     Sec. 21.  [APPROPRIATION; ADMINISTRATION OF THE CHILDREN'S 
 43.13  TRUST FUND.] 
 43.14     Of the amount appropriated under Laws 1997, chapter 162, 
 43.15  article 2, section 31, subdivision 10, up to $22,000 for fiscal 
 43.16  year 1998 and up to $22,000 for fiscal year 1999 may be used for 
 43.17  state costs to administer the children's trust fund under 
 43.18  Minnesota Statutes, sections 119A.10 to 119A.17.  
 43.19     Of the amount in the special revenue account from fees 
 43.20  under Minnesota Statutes, section 144.226, subdivision 3, up to 
 43.21  $120,000 for fiscal year 1998 and $120,000 for fiscal year 1999 
 43.22  may be used for operating costs of the children's trust fund. 
 43.23     Sec. 22.  [APPROPRIATION.] 
 43.24     Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
 43.25  LEARNING.] The sums indicated in this section are appropriated 
 43.26  from the general fund to the department of children, families, 
 43.27  and learning for the fiscal years designated. 
 43.28     Subd. 2.  [EMERGENCY SERVICES GRANTS.] For emergency 
 43.29  services grants under Laws 1997, chapter 162, article 3, section 
 43.30  7: 
 43.31       $  313,000     .....     1999 
 43.32     The base appropriation for fiscal year 2000 for emergency 
 43.33  services grants is equal to the fiscal year 1999 appropriation 
 43.34  under this subdivision. 
 43.35     Subd. 3.  [FAMILY ASSETS FOR INDEPENDENCE.] To establish 
 43.36  the Minnesota family assets for independence initiative under 
 44.1   sections 1 to 7: 
 44.2        $  875,000     .....     1999 
 44.3      No more than five percent of the appropriation may be 
 44.4   expended for the cost of administration of this program by the 
 44.5   fiduciary organizations. 
 44.6      Subd. 4.  [LEAD HAZARD REDUCTION PROGRAM.] For the lead 
 44.7   abatement program under Minnesota Statutes, section 268.92: 
 44.8        $  150,000     .....     1999 
 44.9      This appropriation must be used for the swab team service 
 44.10  program to provide lead clean-up and lead hazard reduction 
 44.11  services in geographic areas where the residents have a high 
 44.12  risk of elevated blood lead levels. 
 44.13     Of this appropriation, up to 25 percent is for a grant to 
 44.14  the city of St. Louis Park to conduct lead testing and clean up 
 44.15  in the residential neighborhoods contaminated by an industrial 
 44.16  lead site.  The remaining amount is for grants to nonprofit 
 44.17  organizations that are operating lead hazard reduction projects. 
 44.18     Subd. 5.  [CHILD GUIDE PREVENTION PROGRAM.] For a grant to 
 44.19  the southwest and west central service cooperative to operate 
 44.20  the child guide prevention program for children in kindergarten 
 44.21  through grade six at additional regional sites established by 
 44.22  the Minnesota service cooperatives: 
 44.23       $  225,000     .....     1999 
 44.24     The grantee may choose to operate one training site.  This 
 44.25  is a one-time appropriation. 
 44.26     Subd. 6.  [GANG PREVENTION GRANT PROGRAM.] To develop a 
 44.27  gang prevention and intervention grant program under section 15 
 44.28  to be administered in conjunction with the crime prevention 
 44.29  grant program: 
 44.30       $  225,000     .....     1999 
 44.31     Subd. 7.  [STATEWIDE COMMUNITY INFORMATION AND REFERRAL 
 44.32  GRANT PROGRAM.] For a grant to First Call Minnesota to fund a 
 44.33  statewide system of information and referral for community 
 44.34  service under section 16: 
 44.35       $  100,000     .....     1999 
 44.36     Sec. 23.  [EFFECTIVE DATE.] 
 45.1      Sections 11 and 18 to 21 are effective the day following 
 45.2   final enactment.