1.1                          A bill for an act 
  1.2             relating to children; proposing an amendment to the 
  1.3             Minnesota Constitution by adding a new article XV, and 
  1.4             by renumbering certain sections; creating a children's 
  1.5             development fund; proposing coding for new law as 
  1.6             Minnesota Statutes, chapter 119C. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  [CONSTITUTIONAL AMENDMENT.] 
  1.9      An amendment to the Minnesota Constitution is proposed to 
  1.10  the people.  If the amendment is adopted, a new article XV 
  1.11  consisting of renumbered sections and a new section shall be 
  1.12  added to read: 
  1.13                             ARTICLE XV 
  1.14                             EDUCATION 
  1.15     Section 1.  [Article XIII, section 1, renumbered] 
  1.16     Sec. 2.  [Article XIII, section 2, renumbered] 
  1.17     Sec. 3.  [Article XIII, section 3, renumbered] 
  1.18     Sec. 4.  The establishment of a moral and just society is 
  1.19  enhanced when young children can develop to their full potential.
  1.20  Therefore, the state of Minnesota creates a permanent endowment 
  1.21  fund to assist in the physical, emotional, moral, intellectual, 
  1.22  and healthy development of children through the age of eight 
  1.23  years. 
  1.24     The children's development fund consists of the proceeds of 
  1.25  the annual payments of the settlement of the tobacco lawsuit 
  1.26  styled as State v. Philip Morris, Inc., No. C1-94-8565 
  2.1   (Minnesota District Court, Second Judicial District), received 
  2.2   by the state on or after July 1, 2001.  The assets of the fund 
  2.3   must be appropriated by law for purposes that enhance the 
  2.4   development of children through age eight years.  The amount 
  2.5   appropriated for each year of a biennium, commencing on July 1 
  2.6   in each odd-numbered year and ending on and including June 30 in 
  2.7   the next odd-numbered year, may be up to the following 
  2.8   percentages of the market value of the fund on June 30 one year 
  2.9   before the start of the biennium:  15 percent for fiscal years 
  2.10  ending before July 1, 2006, and 5.5 percent for fiscal years 
  2.11  ending after July 1, 2006, plus 100 percent of any tobacco 
  2.12  settlement proceeds received after that date. 
  2.13     Sec. 5.  [Article XI, section 8, renumbered] 
  2.14     Sec. 6.  [Article XI, section 9, renumbered] 
  2.15     Sec. 2.  [SCHEDULE AND QUESTION.] 
  2.16     The amendment shall be submitted to the people at the 2000 
  2.17  general election.  The question submitted shall be: 
  2.18     "Shall the Minnesota Constitution be amended to create a 
  2.19  children's development fund with funds dedicated from the annual 
  2.20  proceeds of the Minnesota tobacco lawsuit? 
  2.21                                     Yes .......
  2.22                                     No ........"
  2.23     Sec. 3.  [119C.01] [DEFINITIONS.] 
  2.24     Subdivision 1.  [APPLICABILITY.] The definitions in this 
  2.25  section apply to sections 119C.01 to 119C.05. 
  2.26     Subd. 2.  [DEVELOPMENT FUND.] "Development fund" means the 
  2.27  children's development fund established in the Minnesota 
  2.28  Constitution, article XV, section 4. 
  2.29     Subd. 3.  [YOUNG CHILDREN.] "Young children" means children 
  2.30  through the age of eight years. 
  2.31     Sec. 4.  [119C.02] [DEVELOPMENT FUND NOT TO SUPPLANT 
  2.32  EXISTING FUNDING.] 
  2.33     The development fund may not be used as a substitute for 
  2.34  traditional sources of funding activities for young children and 
  2.35  their parents or activities designed to prevent youth from 
  2.36  smoking, but the development fund must be used to supplement 
  3.1   traditional sources, including sources used to support the 
  3.2   activities in section 119C.03. 
  3.3      Sec. 5.  [119C.03] [DEVELOPMENT FUND EXPENDITURES.] 
  3.4      Money in the development fund may be spent as appropriated 
  3.5   by law to: 
  3.6      (1) collect, analyze, and distribute to communities and 
  3.7   families information that enhances the development of young 
  3.8   children; 
  3.9      (2) enhance the early care and childhood development 
  3.10  system; 
  3.11     (3) enhance public education, awareness, and understanding 
  3.12  necessary to promote and encourage activities and decisions that 
  3.13  protect and stimulate young children's development; 
  3.14     (4) improve the lives and health of young children by 
  3.15  reducing their incidence of and exposure to smoking; 
  3.16     (5) improve academic and social outcomes for young children 
  3.17  so that they will be prepared to reach their highest academic 
  3.18  potential; 
  3.19     (6) supplement funding to projects that have demonstrated 
  3.20  successful outcomes in improving and enhancing the development 
  3.21  of young children or in reducing the incidence of and exposure 
  3.22  to smoking; and 
  3.23     (7) pay administrative and investment expenses incurred by 
  3.24  the state board of investment in investing assets of the 
  3.25  development fund. 
  3.26     Sec. 6.  [119C.031] [EARLY CARE AND CHILDHOOD INTEGRATION 
  3.27  PILOT PROGRAM.] 
  3.28     A pilot program for integration of the early care and 
  3.29  childhood development system according to section 119C.03, shall 
  3.30  begin in year 2002 with pilot sites in at least one urban 
  3.31  county, one suburban county, one rural county, and one tribal 
  3.32  reservation.  The pilot program shall be considered for 
  3.33  statewide expansion in year 2004.  This section expires on July 
  3.34  1, 2005. 
  3.35     Sec. 7.  [119C.05] [ROYALTIES; COPYRIGHTS; PATENTS.] 
  3.36     This section applies to projects supported by the 
  4.1   development fund.  The development fund owns and must take title 
  4.2   to the percentage of a royalty, copyright, or patent resulting 
  4.3   from a project supported by the fund equal to the percentage of 
  4.4   the project's total funding provided by the fund.  Cash receipts 
  4.5   resulting from a royalty, copyright, or patent, or the sale of 
  4.6   the development fund's rights to a royalty, copyright, or 
  4.7   patent, must be credited immediately to the principal of the 
  4.8   development fund. 
  4.9      Sec. 8.  [EFFECTIVE DATE.] 
  4.10     Sections 3 to 7 are effective the day after the 
  4.11  constitutional amendment proposed in sections 1 and 2 is adopted.