1.1                          A bill for an act 
  1.2             relating to education; providing for family and early 
  1.3             childhood education; modifying Head Start program; 
  1.4             consolidating child care assistance programs; 
  1.5             modifying early childhood screening, early childhood 
  1.6             family education, and school readiness programs; 
  1.7             directing allocation of federal child care development 
  1.8             funds; consolidating certain advisory councils; 
  1.9             establishing youth after-school enrichment program; 
  1.10            modifying adult basic education program; requiring a 
  1.11            report; providing for early childhood program 
  1.12            evaluation; making various clarifying and technical 
  1.13            changes; appropriating money; amending Minnesota 
  1.14            Statutes 2000, sections 119A.12, by adding 
  1.15            subdivisions; 119A.13, subdivision 4; 119A.21; 
  1.16            119A.22; 119A.51, by adding a subdivision; 119A.52; 
  1.17            119A.53; 119B.011, subdivisions 5, 7, 11, 12, 18, 19, 
  1.18            by adding subdivisions; 119B.02, subdivisions 1, 2, 3, 
  1.19            by adding subdivisions; 119B.061, subdivisions 1, 2, 
  1.20            4, 5; 121A.17, subdivision 1; 121A.30; 124D.135, by 
  1.21            adding subdivisions; 124D.16, subdivision 2, by adding 
  1.22            subdivisions; 124D.19, by adding subdivisions; 
  1.23            124D.20, subdivisions 1, 5, by adding a subdivision; 
  1.24            124D.221, subdivisions 1, 2, by adding a subdivision; 
  1.25            124D.518, subdivision 5; 124D.52, subdivision 2; 
  1.26            124D.522; 124D.531, subdivisions 1, 3, 7; 125A.28; 
  1.27            125B.20, subdivision 1; 134.31, subdivision 5; 
  1.28            proposing coding for new law in Minnesota Statutes, 
  1.29            chapters 119A; 119B; 124D; 134; repealing Minnesota 
  1.30            Statutes 2000, sections 119A.13, subdivisions 1, 2, 3; 
  1.31            119A.14, subdivision 2; 119A.23; 119B.011, subdivision 
  1.32            20; 119B.03; 119B.04; 119B.05; 119B.06; 119B.07; 
  1.33            119B.074; 119B.08; 119B.09; 119B.10; 119B.11; 119B.12; 
  1.34            119B.13; 119B.14; 119B.15; 119B.16; 124D.16, 
  1.35            subdivision 4; 124D.33; 124D.331; 125B.20, subdivision 
  1.36            3; Minnesota Rules, parts 3530.2610; 3530.2612; 
  1.37            3530.2614; 3530.2616; 3530.2618; 3530.2620; 3530.2622; 
  1.38            3530.2624; 3530.2626; 3530.2628; 3530.2630; 3530.2632; 
  1.39            3530.2634; 3530.2636; 3530.2638; 3530.2640; 3530.2642; 
  1.40            3530.2644. 
  1.41  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.42                             ARTICLE 1 
  1.43                CHILDREN AND FAMILY SUPPORT PROGRAMS 
  2.1      Section 1.  Minnesota Statutes 2000, section 119A.51, is 
  2.2   amended by adding a subdivision to read: 
  2.3      Subd. 6.  [ELIGIBLE LOW-INCOME CHILDREN.] "Eligible 
  2.4   low-income children" means children who live in families with 
  2.5   incomes up to 100 percent of the federal poverty guidelines.  
  2.6      Sec. 2.  Minnesota Statutes 2000, section 119A.52, is 
  2.7   amended to read: 
  2.8      119A.52 [DISTRIBUTION OF APPROPRIATION.] 
  2.9      (a) Subdivision 1.  [DISTRIBUTION.] The commissioner of 
  2.10  children, families, and learning must distribute money 
  2.11  appropriated for that purpose this section to (1) Head Start 
  2.12  program grantees to expand services and (2) eligible agencies.  
  2.13  Agencies that receive money under this section must use the 
  2.14  money to serve additional low-income children.  Money 
  2.15     Subd. 2.  [HEAD START GRANTEES.] Eighty-five percent of the 
  2.16  annual appropriation must be allocated to each project eligible 
  2.17  Head Start grantee in existence on the effective date of Laws 
  2.18  1989, chapter 282.  Migrant grantees, including migrant and 
  2.19  Indian reservation grantees must be initially allocated money 
  2.20  based on the grantees' share of federal funds.  The remaining 
  2.21  money must be initially allocated to the remaining local 
  2.22  agencies based equally on the agencies' share of federal funds 
  2.23  and on the proportion of eligible children in the agencies' 
  2.24  service area who are not currently being served.  A Head Start 
  2.25  grantee must be funded at a per child rate equal to its 
  2.26  contracted, federally funded base level for program accounts 20, 
  2.27  22, and 25 at the start of the fiscal year.  In allocating funds 
  2.28  under this paragraph, the commissioner of children, families, 
  2.29  and learning must assure that each Head Start grantee is 
  2.30  allocated no less funding in any fiscal year than was allocated 
  2.31  to that grantee in fiscal year 1993.  For fiscal years 2002 and 
  2.32  2003, the commissioner must allocate funds appropriated for the 
  2.33  purposes of this section to grantees based 40 percent on the 
  2.34  grantees' share of federal funds and 60 percent based on unmet 
  2.35  need measured by the number of children in poverty ages birth to 
  2.36  five as reported in the most recent decennial census or 
  3.1   intercensal estimate.  The commissioner may make grants for two 
  3.2   years.  The commissioner may provide additional funding to 
  3.3   grantees for start-up costs incurred by grantees due to the 
  3.4   increased number of children to be served.  Before paying money 
  3.5   to the grantees, the commissioner must notify each grantee of 
  3.6   its initial allocation, how the money must be used, and the 
  3.7   number of low-income children that must be served with the 
  3.8   allocation.  Each grantee must notify the commissioner of the 
  3.9   number of low-income children it will be able to serve.  For any 
  3.10  grantee that cannot utilize its full allocation, the 
  3.11  commissioner must reduce the allocation proportionately.  Money 
  3.12  available after the initial allocations are reduced must be 
  3.13  redistributed to eligible grantees. 
  3.14     (b) under subdivision 6.  To be eligible for an allocation 
  3.15  under this subdivision, a grantee must have a work plan approved 
  3.16  under subdivision 5.  Head Start grantees may not use state 
  3.17  grant funds toward the federally required 25 percent local match.
  3.18     Subd. 3.  [OTHER ELIGIBLE AGENCIES.] Up to 11 (a) No less 
  3.19  than 15 percent of the funds appropriated annually may must be 
  3.20  used to provide grants to local Head Start other eligible 
  3.21  agencies to provide funds for innovative programs designed 
  3.22  either to target Head Start resources to particular at-risk 
  3.23  groups of children or to provide services in addition to those 
  3.24  currently allowable under federal Head Start regulations or 
  3.25  expand services in unserved or underserved areas.  The 
  3.26  commissioner must award funds for innovative programs under this 
  3.27  paragraph subdivision on a competitive basis., giving priority 
  3.28  to innovative and creative program proposals.  The commissioner 
  3.29  may establish criteria for agencies to apply to provide services 
  3.30  under this subdivision.  The criteria must include agencies that:
  3.31     (1) are not receiving Head Start funds as of June 30, 2001; 
  3.32     (2) are able to provide services in unserved or underserved 
  3.33  areas; 
  3.34     (3) demonstrate experience with children ages three to 
  3.35  five; and 
  3.36     (4) include a strong learning component. 
  4.1      (b) Eligible agencies receiving funds under this 
  4.2   subdivision are not required to meet the federal Head Start 
  4.3   standards. 
  4.4      (c) The commissioner must distribute funds to a variety of 
  4.5   organization types and geographic locations. 
  4.6      (d) Eligible agencies must apply to the commissioner 
  4.7   according to the timelines and on the forms provided by the 
  4.8   commissioner.  To be eligible for funds, an eligible agency must 
  4.9   have an approved work plan and budget under subdivision 5. 
  4.10     (e) The commissioner may make grants for up to two years. 
  4.11     Subd. 4.  [SERVICE PRIORITY.] Priority must be given to 
  4.12  providing services to children ages three to five for 
  4.13  appropriations received under this section.  Up to $1,000,000 in 
  4.14  TANF funds appropriated each year for the purposes of this 
  4.15  section may be set aside to provide services for children ages 
  4.16  zero to three. 
  4.17     Subd. 5.  [WORK PLAN.] (a) Beginning in 2002, to be 
  4.18  eligible for state appropriations under this section, each 
  4.19  grantee must submit a work plan to the commissioner for 
  4.20  approval.  At a minimum, the work plan must: 
  4.21     (1) be based on community needs; 
  4.22     (2) identify the services to be provided; 
  4.23     (3) include the estimated number of low-income children to 
  4.24  be served; 
  4.25     (4) describe the program design and service delivery areas, 
  4.26  ensuring fair and equitable access to all services; 
  4.27     (5) describe programming for children ages three to five; 
  4.28     (6) describe programs or plans for children under the age 
  4.29  of three, if applicable; 
  4.30     (7) describe partnerships with other programs; 
  4.31     (8) include a plan to maximize children's program time and 
  4.32  minimize transition time between programs. 
  4.33     (b) For federal Head Start grantees, the work plan must 
  4.34  specify how each Head Start grantee policy council assisted in 
  4.35  the development and planning and will assist in the monitoring 
  4.36  of the Head Start program and integration of service delivery 
  5.1   with other early childhood services within the area. 
  5.2      (c) Head Start grantees and other eligible agencies must 
  5.3   submit a work plan and operating budget, including all funding 
  5.4   sources used to provide services. 
  5.5      (d) The commissioner may refuse any work plan that does not 
  5.6   meet the criteria under this subdivision. 
  5.7      Subd. 6.  [REDISTRIBUTION.] The commissioner must develop 
  5.8   and implement a plan to redistribute reductions of the initial 
  5.9   allocations to grantees under subdivisions 2 and 3 to eligible 
  5.10  grantees to serve eligible children.  Any amount of the 
  5.11  redistribution that is allocated to an eligible grantee must be 
  5.12  used according to its approved work plan under subdivision 5. 
  5.13     Sec. 3.  Minnesota Statutes 2000, section 119A.53, is 
  5.14  amended to read: 
  5.15     119A.53 [FEDERAL REQUIREMENTS.] 
  5.16     Grantees under section 119A.52, subdivision 2, and the 
  5.17  commissioner of children, families, and learning shall comply 
  5.18  with federal regulations governing the federal head start 
  5.19  program and the TANF program, except for innovative programs 
  5.20  funded under section 119A.52, paragraph (b) other services that 
  5.21  are not required by federal Head Start eligibility regulations 
  5.22  but are included in the work plans approved under section 
  5.23  119A.52, subdivision 5, which may operate differently than 
  5.24  federal head start regulations, and except that when a state 
  5.25  statute or regulation conflicts with a federal statute or 
  5.26  regulation, the state statute or regulation prevails. 
  5.27     Sec. 4.  Minnesota Statutes 2000, section 119B.011, 
  5.28  subdivision 5, is amended to read: 
  5.29     Subd. 5.  [CHILD CARE.] "Child care" means the care of a 
  5.30  child by someone other than a parent or legal guardian in or 
  5.31  outside the child's own home for gain or otherwise, on a regular 
  5.32  basis, for any part of a 24-hour day. 
  5.33     Sec. 5.  Minnesota Statutes 2000, section 119B.011, 
  5.34  subdivision 7, is amended to read: 
  5.35     Subd. 7.  [CHILD CARE SERVICES.] "Child care services" 
  5.36  means child care provided in family day care homes, group day 
  6.1   care homes, nursery schools, day nurseries, child day care 
  6.2   centers, head start, all-day every day kindergarten for the 
  6.3   portion of kindergarten paid through parent fees, and extended 
  6.4   day school age child care programs in or out of the child's home.
  6.5      Sec. 6.  Minnesota Statutes 2000, section 119B.011, 
  6.6   subdivision 11, is amended to read: 
  6.7      Subd. 11.  [EDUCATION PROGRAM.] "Education program" means 
  6.8   remedial or basic education or English as a second language 
  6.9   instruction, a program leading to a general equivalency or high 
  6.10  school diploma, post-secondary programs excluding 
  6.11  postbaccalaureate programs, and other education and training 
  6.12  needs as documented in an employment plan, as defined in 
  6.13  subdivision 12.  The employment plan must outline education and 
  6.14  training needs of a recipient, meet state requirements for 
  6.15  employment plans, meet the requirements of this chapter, and 
  6.16  Minnesota Rules, parts 3400.0010 to 3400.0230, and meet the 
  6.17  requirements of programs that provide federal reimbursement for 
  6.18  child care services.  
  6.19     Sec. 7.  Minnesota Statutes 2000, section 119B.011, 
  6.20  subdivision 12, is amended to read: 
  6.21     Subd. 12.  [EMPLOYMENT PLAN.] "Employment plan" means 
  6.22  employment of recipients financially eligible for child care 
  6.23  assistance, or other work activities defined under section 
  6.24  256J.49, approved in an employability development, job search 
  6.25  support plan, or employment plan that is developed by the county 
  6.26  agency, if it is acting as an employment and training service 
  6.27  provider, or by an employment and training service provider 
  6.28  certified by the commissioner of economic security or an 
  6.29  individual designated by the county to provide employment and 
  6.30  training services.  The plans and designation of a service 
  6.31  provider must outline the education and training needs of a 
  6.32  recipient, meet the requirements of this chapter and chapter 
  6.33  256J or chapter 256K, Minnesota Rules, parts 3400.0010 to 
  6.34  3400.0230, and other programs that provide federal reimbursement 
  6.35  for child care services. 
  6.36     Sec. 8.  Minnesota Statutes 2000, section 119B.011, 
  7.1   subdivision 18, is amended to read: 
  7.2      Subd. 18.  [POST-SECONDARY EDUCATIONAL SYSTEMS 
  7.3   INSTITUTION.] "Post-secondary educational systems institution" 
  7.4   means the University of Minnesota board of regents and the board 
  7.5   of trustees of the Minnesota state colleges and universities any 
  7.6   accredited technical college, community college, private college 
  7.7   or university, public college or university, or public or 
  7.8   private trade school. 
  7.9      Sec. 9.  Minnesota Statutes 2000, section 119B.011, 
  7.10  subdivision 19, is amended to read: 
  7.11     Subd. 19.  [PROVIDER.] "Provider" means a child care 
  7.12  license holder who operates a family child care home, a group 
  7.13  family child care home, a child care center, a nursery school, a 
  7.14  day nursery, a school age care program; a license-exempt school 
  7.15  age care program operating under the auspices of a local school 
  7.16  board or a park or recreation board of a city of the first class 
  7.17  that has adopted school age care guidelines which meet or exceed 
  7.18  guidelines recommended by the department, or a nonlicensed an 
  7.19  individual or child care center or facility, either licensed or 
  7.20  unlicensed, providing legal child care services as defined under 
  7.21  section 245A.03.  A legally unlicensed registered family child 
  7.22  care provider who is must be at least 18 years of age, and who 
  7.23  is not a member of the MFIP assistance unit or a member of the 
  7.24  family receiving child care assistance under this chapter.  
  7.25     Sec. 10.  Minnesota Statutes 2000, section 119B.011, is 
  7.26  amended by adding a subdivision to read: 
  7.27     Subd. 21.  [ANNUAL GROSS INCOME.] "Annual gross income" of 
  7.28  the applicant family means the current monthly gross income of 
  7.29  the family multiplied by 12, the income for the 12-month period 
  7.30  immediately preceding the date of application, or income 
  7.31  calculated by the method which provides the most accurate 
  7.32  assessment of income available to the family.  Self-employment 
  7.33  income must be calculated based on gross receipts less operating 
  7.34  expenses. 
  7.35     Sec. 11.  Minnesota Statutes 2000, section 119B.011, is 
  7.36  amended by adding a subdivision to read: 
  8.1      Subd. 22.  [FEDERAL POVERTY GUIDELINES.] "Federal poverty 
  8.2   guidelines" means the annual poverty guidelines for a family of 
  8.3   four, adjusted for family size, published annually by the United 
  8.4   States Department of Health and Human Services in the Federal 
  8.5   Register. 
  8.6      Sec. 12.  Minnesota Statutes 2000, section 119B.011, is 
  8.7   amended by adding a subdivision to read: 
  8.8      Subd. 23.  [RECOUPMENT OF OVERPAYMENTS.] "Recoupment of 
  8.9   overpayments" means the reduction of child care assistance 
  8.10  payments to an eligible family in order to correct an 
  8.11  overpayment to the family even when the overpayment is due to 
  8.12  agency error or other circumstances outside the responsibility 
  8.13  or control of the family. 
  8.14     Sec. 13.  [119B.014] [ESTABLISHMENT OF CHILD CARE 
  8.15  ASSISTANCE PROGRAM.] 
  8.16     Subdivision 1.  [CHILD CARE ASSISTANCE PROGRAM.] (a) A 
  8.17  child care assistance program is established for the purpose of 
  8.18  subsidizing the child care costs of eligible families.  The 
  8.19  child care assistance program may be funded by county 
  8.20  contributions, state appropriations, and federal funds.  Child 
  8.21  care assistance payments are authorized for eligible families 
  8.22  within the limits of available appropriations. 
  8.23     (b) Child care services must be made available as in-kind 
  8.24  services. 
  8.25     (c) Families enrolled in the child care assistance program 
  8.26  must be continued until they are no longer eligible. 
  8.27     (d) Child care assistance provided through the child care 
  8.28  fund is considered assistance to the parent. 
  8.29     Subd. 2.  [SPECIAL REVENUE ACCOUNT FOR CHILD CARE.] A child 
  8.30  support collection account is established in the special revenue 
  8.31  fund for the deposit of collections through the assignment of 
  8.32  child support under section 256.741, subdivision 2.  The 
  8.33  commissioner of human services must deposit all collections made 
  8.34  under section 256.741, subdivision 2, in the child support 
  8.35  collection account. 
  8.36     Subd. 3.  [GENERAL ELIGIBILITY.] (a) To be eligible for the 
  9.1   child care assistance program, families must be participating in 
  9.2   an authorized activity under subdivision 4 and meet income 
  9.3   eligibility requirements under subdivision 5 and requirements 
  9.4   under this subdivision. 
  9.5      (b) To be eligible for child care assistance, students 
  9.6   enrolled in an education program under section 119B.011, 
  9.7   subdivision 11, must be in good standing and be making 
  9.8   satisfactory progress toward completion of the program as 
  9.9   stipulated in the school's satisfactory progress policy. 
  9.10     (c) All applicants for child care assistance and families 
  9.11  currently receiving child care assistance must cooperate in 
  9.12  establishment of paternity and enforcement of child support 
  9.13  obligations under section 256.741 for all children in the family 
  9.14  as a condition of program eligibility.  
  9.15     Subd. 4.  [AUTHORIZED ACTIVITIES.] Families must be 
  9.16  participating in at least one of the following authorized 
  9.17  activities: 
  9.18     (1) employment orientation or job search, or other 
  9.19  employment or training activities that are included in an 
  9.20  approved employability development plan under chapter 256K; 
  9.21     (2) work activities as required in their job search support 
  9.22  or employment plan, or in appeals, hearings, assessments, or 
  9.23  orientations under chapter 256J; 
  9.24     (3) social services activities under chapter 256J or 256K 
  9.25  as required in an employment plan approved according to chapter 
  9.26  256J or 256K; 
  9.27     (4) a job search for persons seeking employment up to 240 
  9.28  hours of child care assistance per calendar year; 
  9.29     (5) employment outside of an employment plan under section 
  9.30  119B.011, subdivision 12, in which the caregiver works at least 
  9.31  an average of 20 hours per week and students not participating 
  9.32  in MFIP work at least an average of 20 hours per week and 
  9.33  receive at least minimum wage for all hours worked.  For 
  9.34  purposes of this section, work-study programs must be counted as 
  9.35  employment; 
  9.36     (6) post-secondary education up to the maximum length of 
 10.1   time necessary to complete the credit requirements for an 
 10.2   associate or baccalaureate degree as determined by the 
 10.3   educational institution, excluding basic or remedial education 
 10.4   programs needed to prepare for post-secondary education or 
 10.5   employment.  Basic or remedial education programs include, but 
 10.6   are not limited to, high school, general equivalency diploma, 
 10.7   and English as a second language.  Programs exempt from this 
 10.8   time limit must not run concurrently with a post-secondary 
 10.9   program; or 
 10.10     (7) the at-home infant child care program under section 
 10.11  119B.061.  
 10.12     Subd. 5.  [INCOME ELIGIBILITY.] (a) Beginning January 1, 
 10.13  2002, all families participating in an authorized activity with 
 10.14  an annual gross income at or below 250 percent of the federal 
 10.15  poverty guidelines, adjusted for family size, are eligible for 
 10.16  child care assistance regardless of MFIP status. 
 10.17     (b) If there is a waiting list for child care assistance 
 10.18  under section 119B.025, subdivision 5, the commissioner must 
 10.19  make recommendations to the legislature to change income 
 10.20  eligibility requirements or make other changes in order to 
 10.21  eliminate the waiting list.  
 10.22     Subd. 6.  [CONTINUATION OF ASSISTANCE.] All families 
 10.23  eligible for and receiving child care assistance under chapter 
 10.24  119B as of December 31, 2001, continue to be eligible for child 
 10.25  care assistance until June 30, 2002, provided each family 
 10.26  continues to meet all eligibility requirements as of December 
 10.27  31, 2001, unless the family voluntarily withdraws or is 
 10.28  terminated from the program.  
 10.29     Sec. 14.  [119B.017] [ASSISTANCE.] 
 10.30     Subdivision 1.  [CALCULATION OF BENEFITS.] (a) Child care 
 10.31  assistance must be authorized as provided in clause (1) or (2): 
 10.32     (1) when the caregiver or student works for an hourly wage 
 10.33  and the hourly wage is equal to or greater than the applicable 
 10.34  minimum wage, child care assistance must be provided for the 
 10.35  actual hours of employment, break, and mealtime during the 
 10.36  employment and travel time up to two hours per day, and actual 
 11.1   classroom time and up to two hours of travel time per day for 
 11.2   post-secondary students; or 
 11.3      (2) when the caregiver does not work for an hourly wage, 
 11.4   child care assistance must be provided for the lesser of: 
 11.5      (i) the amount of child care determined by dividing gross 
 11.6   earned income by the applicable minimum wage, up to one hour 
 11.7   every eight hours for meals and break time, plus up to two hours 
 11.8   per day for travel time, and classroom time; 
 11.9      (ii) the amount of child care equal to the actual amount of 
 11.10  child care used during employment, including break and mealtime 
 11.11  during employment, plus up to two hours per day for travel time, 
 11.12  and classroom time.  
 11.13     (b) The maximum amount of child care assistance a local 
 11.14  agency may authorize in a two-week period is 120 hours per child.
 11.15     Subd. 2.  [STUDENTS.] Counties may not limit the duration 
 11.16  of child care assistance for a student except when the student 
 11.17  is found to be ineligible under the child care assistance 
 11.18  eligibility standards.  Any limitation must be based on a 
 11.19  student's employment plan in the case of an MFIP recipient and 
 11.20  county policies included in the child care fund plan. 
 11.21     Subd. 3.  [PORTABILITY POOL.] (a) The commissioner must 
 11.22  establish a portability set-aside of up to 3 percent of the 
 11.23  annual appropriation to provide continuous child care assistance 
 11.24  for eligible families who move between Minnesota counties.  At 
 11.25  the end of each allocation period, any unspent funds in the 
 11.26  portability set-aside must be used for child care assistance 
 11.27  under chapter 119B.  If expenditures from the portability 
 11.28  set-aside exceed the amount of money available, the reallocation 
 11.29  pool must be reduced to cover the shortfall. 
 11.30     (b) To receive assistance under this subdivision, a family 
 11.31  must have moved from a county in which it was receiving child 
 11.32  care assistance to a county with a waiting list.  The family 
 11.33  must: 
 11.34     (1) meet the income and eligibility guidelines for the 
 11.35  program; and 
 11.36     (2) notify the new county of residence within 60 days of 
 12.1   moving and provide the new county with information to document 
 12.2   continued eligibility.  A person requesting assistance under the 
 12.3   portability set-aside must not be considered a new applicant. 
 12.4      (c) The receiving county must: 
 12.5      (1) accept the administrative responsibility for the family 
 12.6   at the end of the two months of assistance under the Unitary 
 12.7   Residency Act; 
 12.8      (2) continue assistance for the lesser of six months or 
 12.9   until the family is able to receive assistance under the 
 12.10  county's child care assistance program; and 
 12.11     (3) notify the commissioner through the quarterly reporting 
 12.12  process of any family that meets the criteria of the portability 
 12.13  set-aside. 
 12.14     Subd. 4.  [DATE OF ELIGIBILITY FOR ASSISTANCE.] Within the 
 12.15  limits of available appropriations: 
 12.16     (1) the date of eligibility for child care assistance under 
 12.17  this chapter is the latest of: 
 12.18     (i) the date the application was signed; 
 12.19     (ii) the beginning date of employment, education, or 
 12.20  training; or 
 12.21     (iii) the date a determination has been made that the 
 12.22  applicant is a participant in employment and training services 
 12.23  under chapter 256J or 256K or Minnesota Rules, part 3400.0080, 
 12.24  subpart 2; 
 12.25     (2) payment of child care assistance for employed persons 
 12.26  on MFIP is effective the date of employment or the date of MFIP 
 12.27  eligibility, whichever is later; and 
 12.28     (3) payment of child care assistance for MFIP or work first 
 12.29  participants in employment and training services is effective 
 12.30  the date of commencement of the services or the date of MFIP or 
 12.31  work first eligibility, whichever is later.  
 12.32     Sec. 15.  Minnesota Statutes 2000, section 119B.02, 
 12.33  subdivision 1, is amended to read: 
 12.34     Subdivision 1.  [CHILD CARE SERVICES.] The commissioner 
 12.35  shall must: 
 12.36     (1) develop standards for county and human services boards 
 13.1   to provide child care services to enable eligible families to 
 13.2   participate in employment, training, or education programs.  
 13.3   Within the limits of available appropriations, the commissioner 
 13.4   shall; 
 13.5      (2) distribute allocate money to counties, within the 
 13.6   limits of available appropriations, to reduce the costs of child 
 13.7   care for eligible families.  The commissioner shall under 
 13.8   section 119B.014; 
 13.9      (3) adopt rules under chapter 14 to govern the program in 
 13.10  accordance with this section, to implement and coordinate 
 13.11  federal program requirements, and to administer the child care 
 13.12  development fund.  The rules must establish a sliding schedule 
 13.13  of fees for parents receiving child care services.  The 
 13.14  rules shall must provide that funds money received as a lump sum 
 13.15  payment of child support arrearages shall is not be counted as 
 13.16  income to a family in the month received but shall be is 
 13.17  prorated over the 12 months following receipt and added to the 
 13.18  family income during those months.  In the rules adopted under 
 13.19  this section, county and human services boards shall be 
 13.20  authorized to establish policies for payment of child care 
 13.21  spaces for absent children, when the payment is required by the 
 13.22  child's regular provider.  The rules shall not set a maximum 
 13.23  number of days for which absence payments can be made, but 
 13.24  instead shall direct the county agency to set limits and pay for 
 13.25  absences according to the prevailing market practice in the 
 13.26  county.  County policies for payment of absences shall be 
 13.27  subject to the approval of the commissioner.  The commissioner 
 13.28  shall; 
 13.29     (4) maximize the use of federal money under title I and 
 13.30  title IV of Public Law Number 104-193, the Personal 
 13.31  Responsibility and Work Opportunity Reconciliation Act of 1996, 
 13.32  and other programs that provide federal or state reimbursement 
 13.33  for child care services for low-income families who are in 
 13.34  education, training, job search, or other activities allowed 
 13.35  under those programs.  Money appropriated under this section 
 13.36  must be coordinated; and 
 14.1      (5) coordinate state child care assistance money with the 
 14.2   programs that provide federal reimbursement for child care 
 14.3   services to accomplish this purpose.  Federal reimbursement 
 14.4   obtained reimbursements must be allocated to the county counties 
 14.5   that spent money expend funds for federally reimbursable child 
 14.6   care that is federally reimbursable under programs that provide 
 14.7   federal reimbursement for child care services.  The counties 
 14.8   shall use the federal money to expand child care services.  The 
 14.9   commissioner may adopt rules under chapter 14 to implement and 
 14.10  coordinate federal program requirements. 
 14.11     Sec. 16.  Minnesota Statutes 2000, section 119B.02, 
 14.12  subdivision 2, is amended to read: 
 14.13     Subd. 2.  [CONTRACTUAL AGREEMENTS WITH TRIBES.] The 
 14.14  commissioner may enter into contractual agreements with a 
 14.15  federally recognized Indian tribe with a reservation in 
 14.16  Minnesota to carry out the responsibilities of county human 
 14.17  service agencies to the extent necessary for the tribe to 
 14.18  operate child care assistance programs under sections 119B.03 
 14.19  and 119B.05 chapter 119B.  An agreement may allow for the tribe 
 14.20  to be reimbursed for child care assistance services provided 
 14.21  under section 119B.05 chapter 119B.  The commissioner shall 
 14.22  consult with the affected county or counties in the contractual 
 14.23  agreement negotiations, if the county or counties wish to be 
 14.24  included, in order to avoid the duplication of county and tribal 
 14.25  child care services.  Funding to support child care services 
 14.26  under section 119B.03 may be transferred to the federally 
 14.27  recognized Indian tribe with a reservation in Minnesota from 
 14.28  allocations available to counties in which reservation 
 14.29  boundaries lie.  When funding is transferred under section 
 14.30  119B.03, The amount shall of the transfer must be commensurate 
 14.31  to estimates of the proportion of reservation residents with 
 14.32  characteristics identified in section 119B.03, subdivision 
 14.33  6 eligible under section 119B.045, to the total population of 
 14.34  county residents with those same characteristics eligible under 
 14.35  section 119B.045.  
 14.36     Sec. 17.  Minnesota Statutes 2000, section 119B.02, 
 15.1   subdivision 3, is amended to read: 
 15.2      Subd. 3.  [SUPERVISION OF COUNTIES.] The commissioner shall 
 15.3   must supervise child care programs administered by the counties 
 15.4   through standard-setting, technical assistance to the counties, 
 15.5   approval of county child care fund plans, and distribution of 
 15.6   public money for services.  The commissioner shall must provide 
 15.7   training and other support services to assist counties in 
 15.8   planning for and implementing child care assistance programs.  
 15.9   The commissioner shall adopt rules under chapter 14 that 
 15.10  establish minimum administrative standards for the provision of 
 15.11  child care services by county boards of commissioners.  
 15.12     Sec. 18.  Minnesota Statutes 2000, section 119B.02, is 
 15.13  amended by adding a subdivision to read: 
 15.14     Subd. 6.  [FEDERAL MONEY; STATE RECOVERY.] The commissioner 
 15.15  must recover from counties any state or federal money that was 
 15.16  spent for persons found to be ineligible, except if the recovery 
 15.17  is made by a county agency using any method other than 
 15.18  recoupment, the county may keep 25 percent of the recovery.  If 
 15.19  a federal audit exception is taken based on a percentage of 
 15.20  federal earnings, all counties must pay a share proportional to 
 15.21  their respective federal earnings during the period in question. 
 15.22     Sec. 19.  Minnesota Statutes 2000, section 119B.02, is 
 15.23  amended by adding a subdivision to read: 
 15.24     Subd. 7.  [REPORTS.] The commissioner must specify 
 15.25  requirements for reports under the same authority as provided to 
 15.26  the commissioner of human services in section 256.01, 
 15.27  subdivision 2, paragraph (17). 
 15.28     Sec. 20.  Minnesota Statutes 2000, section 119B.02, is 
 15.29  amended by adding a subdivision to read: 
 15.30     Subd. 8.  [APPROVAL OF CHILD CARE PLAN.] Within 90 days of 
 15.31  submission of the child care fund plan under section 119B.025, 
 15.32  subdivision 7, the commissioner must notify counties whether or 
 15.33  not the plan is approved or if corrections or other information 
 15.34  is needed for plan approval.  The commissioner must withhold 
 15.35  payments to a county until it has an approved plan.  Counties 
 15.36  must maintain services despite any withholding of payments due 
 16.1   to plans not being approved. 
 16.2      Sec. 21.  Minnesota Statutes 2000, section 119B.02, is 
 16.3   amended by adding a subdivision to read: 
 16.4      Subd. 9.  [ALLOCATION PERIOD; NOTICE OF ALLOCATION.] (a) 
 16.5   The commissioner must notify county and human service boards of 
 16.6   the forms and instructions they must follow in the development 
 16.7   of their child care fund plans required under section 119B.025, 
 16.8   subdivision 7. 
 16.9      (b) The commissioner must notify county and human services 
 16.10  boards of their estimated child care fund program allocation for 
 16.11  the two years covered by the plan.  
 16.12     (c) By October 1 of each year, the commissioner must notify 
 16.13  all counties of their final child care fund program allocation. 
 16.14     Sec. 22.  Minnesota Statutes 2000, section 119B.02, is 
 16.15  amended by adding a subdivision to read: 
 16.16     Subd. 10.  [QUARTERLY PAYMENTS.] The commissioner may make 
 16.17  payments to each county in quarterly installments.  The 
 16.18  commissioner may certify an advance of up to 25 percent of the 
 16.19  allocation.  Subsequent payments must be made on a reimbursement 
 16.20  basis for reported expenditures and may be adjusted for 
 16.21  anticipated spending patterns.  Payments may be withheld if 
 16.22  quarterly reports are incomplete or untimely. 
 16.23     Sec. 23.  Minnesota Statutes 2000, section 119B.02, is 
 16.24  amended by adding a subdivision to read: 
 16.25     Subd. 11.  [REVIEW OF USE OF FUNDS; REALLOCATION.] (a) 
 16.26  After each quarter, the commissioner must review the use of 
 16.27  child care assistance program allocations by county.  The 
 16.28  commissioner may reallocate unexpended or unencumbered money 
 16.29  among those counties that have expended their full allocation or 
 16.30  may allow a county to expend up to ten percent of its allocation 
 16.31  in the subsequent allocation period.  
 16.32     (b) Any unexpended state and federal appropriations from 
 16.33  the first year of the biennium may be carried forward to the 
 16.34  second year of the biennium.  
 16.35     Sec. 24.  Minnesota Statutes 2000, section 119B.02, is 
 16.36  amended by adding a subdivision to read: 
 17.1      Subd. 12.  [TERMINATION OF ALLOCATION.] The commissioner 
 17.2   may withhold, reduce, or terminate the allocation of any county 
 17.3   that does not meet the reporting or other requirements of this 
 17.4   program.  The commissioner must reallocate to other counties 
 17.5   money so reduced or terminated.  Counties are to maintain 
 17.6   services despite any reduction in their allocation due to 
 17.7   failure to meet the reporting or other requirements of this 
 17.8   program. 
 17.9      Sec. 25.  Minnesota Statutes 2000, section 119B.02, is 
 17.10  amended by adding a subdivision to read: 
 17.11     Subd. 13.  [COMMISSIONER TO ADMINISTER FEDERAL CHILD CARE 
 17.12  AND DEVELOPMENT FUND.] The commissioner is authorized and 
 17.13  directed to receive, administer, and expend funds available 
 17.14  under the child care and development fund under Title VI of 
 17.15  Public Law Number 104-193.  Supplemental distributions received 
 17.16  from the federal government after July 1 of each year shall be 
 17.17  submitted for review and appropriations pursuant to section 
 17.18  3.3005.  
 17.19     Sec. 26.  Minnesota Statutes 2000, section 119B.02, is 
 17.20  amended by adding a subdivision to read: 
 17.21     Subd. 14.  [CHILD CARE DEVELOPMENT FUND PLAN DEVELOPMENT; 
 17.22  REVIEW.] In an effort to improve state legislative involvement 
 17.23  in the development of the Minnesota child care and development 
 17.24  fund plan, the commissioner must present a draft copy of the 
 17.25  plan to the legislative finance committees that oversee child 
 17.26  care assistance funding no less than 30 days prior to the 
 17.27  required deadline for submission of the plan to the federal 
 17.28  government.  The legislature must submit any adjustments to the 
 17.29  plan to the commissioner for consideration within ten business 
 17.30  days of receiving the draft plan.  The commissioner must present 
 17.31  a copy of the final plan to the chairs of the legislative 
 17.32  finance committees that oversee child care assistance funding no 
 17.33  less than four days prior to the deadline for submission of the 
 17.34  plan to the federal government.  
 17.35     Sec. 27.  Minnesota Statutes 2000, section 119B.02, is 
 17.36  amended by adding a subdivision to read: 
 18.1      Subd. 15.  [FEDERAL EARNINGS.] The commissioner must 
 18.2   allocate any federal earnings to the county to be used to expand 
 18.3   child care services to serve additional families under this 
 18.4   chapter. 
 18.5      Sec. 28.  Minnesota Statutes 2000, section 119B.02, is 
 18.6   amended by adding a subdivision to read: 
 18.7      Subd. 16.  [ADMINISTRATIVE EXPENSES.] The commissioner must 
 18.8   use up to 1/21 of the state and federal funds available for the 
 18.9   child care assistance program for the administrative costs of 
 18.10  the delivery of direct services. 
 18.11     Sec. 29.  Minnesota Statutes 2000, section 119B.02, is 
 18.12  amended by adding a subdivision to read: 
 18.13     Subd. 17.  [MAXIMUM RATE DETERMINATION.] The commissioner 
 18.14  must determine the maximum rate for each type of care, including 
 18.15  special needs and handicapped care and extended day care.  The 
 18.16  commissioner must annually survey child care providers, 
 18.17  including all providers licensed by the department of human 
 18.18  services, to determine the 75th percentile of the market rate.  
 18.19  The commissioner must implement any resulting rate changes by 
 18.20  August 1 of each year.  Not less than once every two years, the 
 18.21  commissioner must evaluate market practices for payment of 
 18.22  absences and must establish policies for payment of absent days 
 18.23  that reflect current market practice. 
 18.24     Sec. 30.  [119B.025] [DUTIES OF COUNTIES.] 
 18.25     Subdivision 1.  [EXTENSION OF EMPLOYMENT 
 18.26  OPPORTUNITIES.] The county board must ensure that child care 
 18.27  services available to eligible residents are well advertised and 
 18.28  that everyone who receives or applies for MFIP cash assistance 
 18.29  is informed of training and employment opportunities, programs, 
 18.30  and requirements including child care assistance and child care 
 18.31  resource and referral services. 
 18.32     Subd. 2.  [APPLICATION; ENTRY POINTS.] Each county must 
 18.33  make available to applicants two or more methods of applying for 
 18.34  the child care assistance program.  To meet the requirements of 
 18.35  this subdivision, a county may provide alternative methods of 
 18.36  applying for assistance, including, but not limited to, a mail 
 19.1   application or application sites that are located outside of 
 19.2   government offices. 
 19.3      Subd. 3.  [CONTRACTS; OTHER USES ALLOWED.] Counties may 
 19.4   contract for administration of the program or may arrange for or 
 19.5   contract for child care funds to be used by other appropriate 
 19.6   programs in accordance with this section and as permitted by 
 19.7   federal law and regulations.  
 19.8      Subd. 4.  [ASSISTANCE PRIORITY.] (a) Each county must give 
 19.9   first priority for child care assistance under the child care 
 19.10  assistance program to eligible MFIP families.  
 19.11     (b) Each county must give second priority for child care 
 19.12  assistance to eligible non-MFIP families who do not have a high 
 19.13  school or general equivalency diploma or who need remedial and 
 19.14  basic skill courses in order to pursue employment or education 
 19.15  leading to employment and who need child care assistance to 
 19.16  participate in the education program.  Within this priority, 
 19.17  each county must use the following subpriorities for child care 
 19.18  assistance: 
 19.19     (1) child care needs of minor parents; 
 19.20     (2) child care needs of parents under 21 years of age; and 
 19.21     (3) child care needs of other parents within the priority 
 19.22  group described in this paragraph. 
 19.23     (c) Each county must give third priority to families who 
 19.24  continue to be eligible for child care assistance and are 
 19.25  receiving assistance under section 119B.017, subdivision 3. 
 19.26     (d) If a county projects that its child care allocation is 
 19.27  insufficient to meet the needs of all eligible families, it may 
 19.28  prioritize among the families that remain to be served after the 
 19.29  county has complied with the priority requirements of this 
 19.30  section.  Counties that have established a priority for families 
 19.31  beyond those established under this section must submit the 
 19.32  policy in the annual child care fund plan. 
 19.33     Subd. 5.  [WAITING LIST.] (a) Each county that receives 
 19.34  state or federal child care assistance funds must keep a written 
 19.35  record and report to the commissioner the number of eligible 
 19.36  families who have applied for a child care subsidy or have 
 20.1   requested child care assistance.  
 20.2      (b) Counties must perform a preliminary determination of 
 20.3   eligibility when a family requests child care assistance.  At a 
 20.4   minimum, a county must make a preliminary determination of 
 20.5   eligibility based on family size, income, and authorized 
 20.6   activity.  A family seeking child care assistance must provide 
 20.7   the required information to the county. 
 20.8      (c) A family that appears to be eligible must be put on a 
 20.9   waiting list if funds are not immediately available.  The 
 20.10  waiting list must identify individuals in need of child care by 
 20.11  priority categories.  Counties must review and update their 
 20.12  waiting list at least every six months. 
 20.13     Subd. 6.  [FEDERAL REIMBURSEMENT.] Counties must maximize 
 20.14  their federal reimbursement under federal reimbursement programs 
 20.15  for money spent for persons eligible under this chapter.  
 20.16     Subd. 7.  [CHILD CARE FUND PLAN.] The county and designated 
 20.17  administering agency must submit a child care fund plan to the 
 20.18  commissioner.  The commissioner must establish the dates by 
 20.19  which the county must submit the child care fund plan.  The plan 
 20.20  must include: 
 20.21     (1) a narrative of the total program for child care 
 20.22  services, including all policies and procedures that affect 
 20.23  eligible families and are used to administer the child care 
 20.24  funds; 
 20.25     (2) the methods used by the county to inform eligible 
 20.26  families of the availability of child care assistance and 
 20.27  related services; 
 20.28     (3) the provider rates paid for all children with special 
 20.29  needs by provider type; 
 20.30     (4) the county prioritization policy for all eligible 
 20.31  families under the child care assistance program; and 
 20.32     (5) other information as requested by the department to 
 20.33  ensure compliance with the child care fund statutes and rules 
 20.34  promulgated by the commissioner. 
 20.35     Subd. 8.  [COUNTY CONTRIBUTIONS REQUIRED.] In addition to 
 20.36  payments from child care assistance program participants, each 
 21.1   county must contribute from county tax or other sources a fixed 
 21.2   local match equal to its calendar year 2000 required county 
 21.3   contribution.  The commissioner must recover funds from the 
 21.4   county as necessary to bring county expenditures into compliance 
 21.5   with this subdivision. 
 21.6      Subd. 9.  [MAINTENANCE OF FUNDING EFFORT.] To receive money 
 21.7   through this program, each county must certify, in its annual 
 21.8   plan to the commissioner, that the county has not reduced 
 21.9   allocations from other federal and state sources, which, in the 
 21.10  absence of the child care fund, would have been available for 
 21.11  child care assistance.  However, the county must continue 
 21.12  contributions, as necessary, to maintain on the child care 
 21.13  assistance program, families who are receiving assistance on 
 21.14  December 31, 2001, until the family loses eligibility for the 
 21.15  program on June 30, 2002, or until a family voluntarily 
 21.16  withdraws or is terminated from the program.  This subdivision 
 21.17  does not affect the local match required for this program under 
 21.18  other sections of the law. 
 21.19     Subd. 10.  [QUALITY CHILD CARE SERVICES INFORMATION.] Each 
 21.20  county must make resources available to parents in choosing 
 21.21  quality child care services.  A county may require a parent to 
 21.22  sign a release stating the parent's knowledge and 
 21.23  responsibilities in choosing a legal provider described under 
 21.24  section 119B.011.  When a county knows that a particular 
 21.25  provider is unsafe, or that the circumstances of the child care 
 21.26  arrangement chosen by the parent are unsafe, the county may deny 
 21.27  a child care subsidy.  A county may not restrict access to a 
 21.28  general category of provider allowed under section 119B.011, 
 21.29  subdivision 19. 
 21.30     Subd. 11.  [INCOME REDETERMINATION.] A county must 
 21.31  redetermine income when the family's income changes, but no less 
 21.32  often than every six months.  Income must be verified with 
 21.33  documentary evidence.  If the applicant does not have sufficient 
 21.34  evidence of income, verification must be obtained from the 
 21.35  source of the income. 
 21.36     Subd. 12.  [PROVIDER NOTICE.] Each county must inform both 
 22.1   the family receiving assistance under this chapter and the child 
 22.2   care provider of the child care assistance payment amount and 
 22.3   how and when payment will be received.  If a county sends a 
 22.4   family a notice that child care assistance will be terminated, 
 22.5   the county must inform the provider that unless the family 
 22.6   requests to continue to receive assistance pending an appeal, 
 22.7   child care payments will no longer be made.  The notice to the 
 22.8   provider must not contain any private data on the family or 
 22.9   information on why payment will no longer be made. 
 22.10     Subd. 13.  [PROVIDER PAYMENTS.] Each county must make 
 22.11  vendor payments to the child care provider or pay the parent 
 22.12  directly for eligible child care expenses.  If payments for 
 22.13  child care assistance are made to providers, the provider must 
 22.14  bill the county for services provided within ten days of the end 
 22.15  of the month of service.  If bills are submitted in accordance 
 22.16  with the requirements of this subdivision, a county must issue 
 22.17  payment to the provider of child care under the child care fund 
 22.18  within 30 days of receiving an invoice from the provider.  Each 
 22.19  county may establish policies that make payments on a more 
 22.20  frequent basis.  If applicable, each county must participate in 
 22.21  the child care assistance voucher program under section 49.  A 
 22.22  county's payment policies must be included in the county's child 
 22.23  care plan under subdivision 7. 
 22.24     Subd. 14.  [DOCUMENTATION.] Each county must obtain, from 
 22.25  all child care assistance applicants, information documenting 
 22.26  all children in the applicant's household eligible for 
 22.27  subsidized child care.  The documentation may include a social 
 22.28  security number, certified copy of a birth certificate, or other 
 22.29  similar documentation. 
 22.30     Sec. 31.  [119B.035] [PROGRAM INTEGRITY AND FAIR HEARING.] 
 22.31     Subdivision 1.  [PROGRAM INTEGRITY.] For the child care 
 22.32  assistance program under this chapter, the commissioner must 
 22.33  enforce, in cooperation with the commissioner of human services, 
 22.34  the requirements for program integrity and fraud prevention 
 22.35  investigations under sections 256.046, 256.98, and 256.983. 
 22.36     Subd. 2.  [RECOVERY OF OVERPAYMENTS.] (a) A county agency 
 23.1   may recover an amount of child care assistance paid to a 
 23.2   recipient in excess of the payment due.  If the family remains 
 23.3   eligible for child care assistance, the overpayment must be 
 23.4   recovered through recoupment.  If the family no longer remains 
 23.5   eligible for child care assistance, the county may choose to 
 23.6   initiate efforts to recover overpayments from the family for an 
 23.7   overpayment less than $50.  If the overpayment is greater than 
 23.8   or equal to $50, the county must seek voluntary repayment of the 
 23.9   overpayment from the family.  If the county is unable to recoup 
 23.10  the overpayment through voluntary repayment, the county must 
 23.11  initiate civil court proceedings to recover the overpayment 
 23.12  unless the county's costs to recover the overpayment will exceed 
 23.13  the amount of the overpayment.  
 23.14     (b) A family with an outstanding debt under this 
 23.15  subdivision is not eligible for child care assistance until:  
 23.16  (1) the debt is paid in full; or (2) satisfactory arrangements 
 23.17  are made with the county to retire the debt consistent with the 
 23.18  requirements of this chapter and Minnesota Rules, chapter 3400, 
 23.19  and the family is in compliance with the arrangements. 
 23.20     Subd. 3.  [FAIR HEARING ALLOWED.] An applicant or recipient 
 23.21  adversely affected by a county agency action may request a fair 
 23.22  hearing in accordance with section 256.045. 
 23.23     Subd. 4. [INFORMAL CONFERENCE.] Each county agency must 
 23.24  offer an informal conference to applicants and recipients 
 23.25  adversely affected by an agency action to attempt to resolve the 
 23.26  dispute.  Each county agency must advise adversely affected 
 23.27  applicants and recipients that a request for a conference with 
 23.28  the agency is optional and does not delay or replace the right 
 23.29  to a fair hearing. 
 23.30     Sec. 32.  [119B.045] [CHILD CARE ASSISTANCE PROGRAM 
 23.31  FUNDING.] 
 23.32     Subdivision 1.  [ALLOCATION FORMULA.] The state and federal 
 23.33  child care assistance funds must be allocated on a calendar year 
 23.34  basis.  Funds must be allocated first in amounts equal to each 
 23.35  county's guaranteed floor according to subdivision 3 with any 
 23.36  remaining available funds allocated according to the following 
 24.1   formula:  
 24.2      (a) one-third of the funds must be allocated in proportion 
 24.3   to each county's total expenditures for the child care 
 24.4   assistance program reported during the most recent fiscal year 
 24.5   completed at the time of the notice of allocation; 
 24.6      (b) one-third of the funds must be allocated in proportion 
 24.7   to each county's most recently reported first, second, and third 
 24.8   priority waiting list as defined in section 119B.025, 
 24.9   subdivision 4; and 
 24.10     (c) one-third of the funds must be allocated in proportion 
 24.11  to each county's most recently reported waiting list as defined 
 24.12  in section 119B.025, subdivision 5. 
 24.13     Subd. 2.  [ALLOCATION DUE TO INCREASED FUNDING.] When 
 24.14  funding increases are implemented within a calendar year, every 
 24.15  county must receive an allocation at least equal and 
 24.16  proportionate to its original allocation for the same time 
 24.17  period.  The remainder of the allocation must be recalculated to 
 24.18  reflect the funding increase according to formulas identified in 
 24.19  subdivision 1. 
 24.20     Subd. 3.  [GUARANTEED FLOOR.] (a) Beginning January 1, 
 24.21  2002, each county's guaranteed floor must equal 90 percent of 
 24.22  the allocation received in the preceding calendar year for child 
 24.23  care assistance programs under chapter 119B.  
 24.24     (b) When the amount of funds available for allocation is 
 24.25  less than the amount available in the previous year, each 
 24.26  county's previous year allocation must be reduced in proportion 
 24.27  to the reduction in the statewide funding for the purpose of 
 24.28  establishing the guaranteed floor.  
 24.29     Subd. 4.  [CHILD CARE AT-RISK SET-ASIDE.] A child care 
 24.30  assistance at-risk set-aside is established to provide child 
 24.31  care assistance for families who: 
 24.32     (1) are eligible for child care assistance; 
 24.33     (2) are not receiving MFIP cash assistance; 
 24.34     (3) are employed at least an average of 20 hours per week; 
 24.35  and 
 24.36     (4) have an income at or below 175 percent of the federal 
 25.1   poverty guidelines. 
 25.2      Funding in this set-aside must be used only when all other 
 25.3   available child care assistance funding in a county has been 
 25.4   expended or encumbered.  Before expending these funds, the 
 25.5   county must make a determination that the family is at risk of 
 25.6   using MFIP cash assistance.  
 25.7      Sec. 33.  [119B.048] [SLIDING FEE AND PARENT FEES.] 
 25.8      Subdivision 1.  [SLIDING FEE.] Child care services to 
 25.9   families with incomes at or below 250 percent of the federal 
 25.10  poverty guidelines, adjusted for family size, must be made 
 25.11  available on a sliding fee basis.  In setting the sliding fee 
 25.12  schedule, the commissioner must exclude from the amount of 
 25.13  income used to determine eligibility an amount for federal and 
 25.14  state income and social security taxes attributable to that 
 25.15  income level according to federal and state standardized tax 
 25.16  tables.  The commissioner must base the parent fee on the 
 25.17  ability of the family to pay for child care.  The fee schedule 
 25.18  must be designed to use any available tax credits. 
 25.19     Subd. 2.  [PARENT FEES.] A family's monthly parent fees 
 25.20  must be a fixed percentage of its annual gross income.  Parent 
 25.21  fees must apply to families eligible for child care assistance 
 25.22  under section 119B.014.  Income must be as defined in section 
 25.23  119B.011, subdivision 15.  The fixed percent is based on the 
 25.24  relationship of the family's annual gross income to the 
 25.25  established income eligibility level under section 119B.014.  
 25.26  Parent fees must begin at 75 percent of the poverty level.  The 
 25.27  minimum parent fees for families between 75 percent and 100 
 25.28  percent of poverty level must be $5 per month.  Parent fees must 
 25.29  be established in rule and must provide for graduated movement 
 25.30  to full payment. 
 25.31     When the provider charge is greater than the maximum 
 25.32  provider rate allowed, the parent is responsible for payment of 
 25.33  the difference in the rates in addition to any family copayment 
 25.34  fee. 
 25.35     Sec. 34.  [119B.055] [CHILD CARE PROVIDERS; CHOICE AND 
 25.36  RATES.] 
 26.1      Subdivision 1.  [PROVIDER CHOICE.] Parents may choose child 
 26.2   care providers, as defined under section 119B.011, that best 
 26.3   meet the needs of their family. 
 26.4      Subd. 2.  [SUBSIDY RESTRICTIONS.] The maximum rate paid for 
 26.5   child care assistance under the child care fund may not exceed 
 26.6   the 75th percentile rate for like-care arrangements in the 
 26.7   county as surveyed by the commissioner.  A rate which includes a 
 26.8   provider bonus paid under subdivision 3 or a special needs rate 
 26.9   paid under subdivision 4 may be in excess of the maximum rate 
 26.10  allowed under this subdivision.  The department must monitor the 
 26.11  effect of this section on provider rates.  The county must pay 
 26.12  the provider's full charges for every child in care up to the 
 26.13  maximum established. 
 26.14     Subd. 3.  [PROVIDER RATE BONUS FOR ACCREDITATION.] A family 
 26.15  child care provider or child care center with a current early 
 26.16  childhood development credential approved by the commissioner 
 26.17  must be paid a ten percent bonus above the maximum rate 
 26.18  established in subdivision 2, up to the actual provider rate. 
 26.19     Subd. 4.  [PROVIDER RATE FOR CARE OF CHILDREN WITH 
 26.20  HANDICAPS OR SPECIAL NEEDS.] Counties must reimburse providers 
 26.21  for the care of children with handicaps or special needs at a 
 26.22  special rate to be approved by the county for care of these 
 26.23  children, subject to the approval of the commissioner. 
 26.24     Subd. 5.  [RATES CHARGED TO PUBLICLY SUBSIDIZED FAMILIES.] 
 26.25  Child care providers receiving reimbursement under this chapter 
 26.26  may not charge a rate to clients receiving assistance under this 
 26.27  chapter that is higher than the private, full-paying client rate.
 26.28     Subd. 6.  [EMPLOYER-EMPLOYEE RELATIONSHIPS.] Receipt of 
 26.29  federal, state, or local funds by a child care provider either 
 26.30  directly or through a parent who is a child care assistance 
 26.31  recipient does not establish an employer-employee relationship 
 26.32  between the county or state and the child care provider. 
 26.33     Sec. 35.  Minnesota Statutes 2000, section 119B.061, 
 26.34  subdivision 1, is amended to read: 
 26.35     Subdivision 1.  [ESTABLISHMENT.] A family in which a parent 
 26.36  provides care for the family's infant child may receive a 
 27.1   subsidy in lieu of assistance if the family is eligible for, or 
 27.2   is receiving assistance under the basic sliding fee child care 
 27.3   assistance program.  An eligible family must meet the 
 27.4   eligibility factors under section 119B.09, the income criteria 
 27.5   under section 119B.12 119B.014, and the requirements of this 
 27.6   section.  Subject to federal match and maintenance of effort 
 27.7   requirements for the child care and development fund, the 
 27.8   commissioner shall establish a pool of up to seven three percent 
 27.9   of the annual appropriation for the basic sliding fee child care 
 27.10  assistance program to provide assistance under the at-home 
 27.11  infant child care program.  At the end of a fiscal year, the 
 27.12  commissioner may carry forward any unspent funds under this 
 27.13  section to the next fiscal year within the same biennium for 
 27.14  assistance under the basic sliding fee child care assistance 
 27.15  program. 
 27.16     Sec. 36.  Minnesota Statutes 2000, section 119B.061, 
 27.17  subdivision 2, is amended to read: 
 27.18     Subd. 2.  [ELIGIBLE FAMILIES.] (a) A family with an infant 
 27.19  under the age of one year is eligible for assistance if: 
 27.20     (1) the family is not receiving MFIP, other cash 
 27.21  assistance, or other child care assistance; 
 27.22     (2) the family has not previously received all of the 
 27.23  one-year exemption from the work requirement for infant care 
 27.24  under the MFIP program; 
 27.25     (3) the family has not previously received a life-long 
 27.26  total of 12 36 months of assistance under this section; and 
 27.27     (4) the family is participating in the basic sliding fee 
 27.28  child care assistance program or provides verification of 
 27.29  participation in an authorized activity at the time of 
 27.30  application and meets the program requirements. 
 27.31     (b) A family is limited to 12 months of assistance per 
 27.32  child. 
 27.33     Sec. 37.  Minnesota Statutes 2000, section 119B.061, 
 27.34  subdivision 4, is amended to read: 
 27.35     Subd. 4.  [ASSISTANCE.] (a) A family is limited to a 
 27.36  lifetime total of 12 36 months of assistance under this 
 28.1   section subdivision 2.  The maximum rate of assistance is equal 
 28.2   to 75 90 percent of the rate established under section 119B.13 
 28.3   119B.055 for care of infants in licensed family child care in 
 28.4   the applicant's county of residence.  Assistance must be 
 28.5   calculated to reflect the parent fee requirement under 
 28.6   section 119B.12 119B.048 for the family's actual income level 
 28.7   and family size while the family is participating in the at-home 
 28.8   infant child care program under this section. 
 28.9      (b) A participating family must report income and other 
 28.10  family changes as specified in the county's plan under section 
 28.11  119B.08, subdivision 3 119B.025, subdivision 7.  The family must 
 28.12  treat any assistance received under this section as unearned 
 28.13  income. 
 28.14     (c) Persons who are admitted to the at-home infant care 
 28.15  program retain their position in any basic sliding fee child 
 28.16  care assistance program or on any waiting list attained at the 
 28.17  time of admittance.  If they are on the waiting list, they must 
 28.18  advance as if they had not been admitted to the program.  
 28.19  Persons leaving the at-home infant care program re-enter 
 28.20  the basic sliding fee child care assistance program at the 
 28.21  position they would have occupied or on the waiting list or at 
 28.22  the position to which they would have advanced.  Persons who 
 28.23  would have attained eligibility for the basic sliding fee child 
 28.24  care assistance program must be given assistance or advance to 
 28.25  the top of the waiting list when they leave the at-home infant 
 28.26  care program.  Persons admitted to the at-home infant care 
 28.27  program who are not on a basic sliding fee child care assistance 
 28.28  waiting list may apply to the basic sliding fee child care 
 28.29  assistance program, and if eligible, be placed on the waiting 
 28.30  list. 
 28.31     (d) The time that a family receives assistance under this 
 28.32  section must be deducted from the one-year exemption from work 
 28.33  requirements under the MFIP program. 
 28.34     (e) Assistance under this section does not establish an 
 28.35  employer-employee relationship between any member of the 
 28.36  assisted family and the county or state. 
 29.1      (f) The date of eligibility for the at-home infant child 
 29.2   care program is the later of the date the infant is born or, in 
 29.3   a county with a waiting list, the date the family applies for 
 29.4   at-home infant child care. 
 29.5      Sec. 38.  Minnesota Statutes 2000, section 119B.061, 
 29.6   subdivision 5, is amended to read: 
 29.7      Subd. 5.  [IMPLEMENTATION.] (a) The commissioner shall 
 29.8   implement the at-home infant child care program under this 
 29.9   section through counties that administer the basic sliding fee 
 29.10  child care assistance program under section 119B.03 119B.014.  
 29.11  The commissioner must develop and distribute consumer 
 29.12  information on the at-home infant care program to assist parents 
 29.13  of infants or expectant parents in making informed child care 
 29.14  decisions. 
 29.15     (b) The commissioner shall evaluate this program and report 
 29.16  the impact to the legislature by January 1, 2000.  The 
 29.17  evaluation must include data on the number of families 
 29.18  participating in the program; the number of families continuing 
 29.19  to pursue employment or education while participating in the 
 29.20  program; the average income of families prior to, during, and 
 29.21  after participation in the program; family size; and single 
 29.22  parent and two-parent status. 
 29.23     Sec. 39.  Minnesota Statutes 2000, section 121A.17, 
 29.24  subdivision 1, is amended to read: 
 29.25     Subdivision 1.  [EARLY CHILDHOOD DEVELOPMENTAL SCREENING.] 
 29.26  Every school board must provide for a mandatory program of early 
 29.27  childhood developmental screening for children once before 
 29.28  school entrance, targeting children who are between 3-1/2 and 
 29.29  four years old.  Screening must be targeted to children who are 
 29.30  between three and four years old.  At the request of the child's 
 29.31  parent or legal guardian, a child may be screened as early as 
 29.32  age two.  This screening program must be established either by 
 29.33  one board, by two or more boards acting in cooperation, by 
 29.34  service cooperatives, by early childhood family education 
 29.35  programs, or by other existing programs.  This screening 
 29.36  examination is a mandatory requirement for a student to continue 
 30.1   attending kindergarten or first grade in a public school.  A 
 30.2   child need not submit to developmental screening provided by a 
 30.3   board if the child's health records indicate to the board that 
 30.4   the child has received comparable developmental screening from a 
 30.5   public or private health care organization or, individual health 
 30.6   care provider, or Head Start program.  Districts are encouraged 
 30.7   to reduce the costs of preschool developmental screening 
 30.8   programs by utilizing volunteers in implementing the program. 
 30.9      Sec. 40.  Minnesota Statutes 2000, section 121A.30, is 
 30.10  amended to read: 
 30.11     121A.30 [PESTICIDE APPLICATION AT SCHOOLS.] 
 30.12     Subdivision 1.  [PARENTS' RIGHT-TO-KNOW ACT.] Subdivisions 
 30.13  2 to 14 may be cited as the Janet B. Johnson Parents' 
 30.14  Right-to-Know Act of 2000. 
 30.15     Subd. 2.  [PESTICIDE APPLICATION NOTIFICATION.] (a) A 
 30.16  school, Head Start program, or child care provider that plans to 
 30.17  apply a pesticide which is a toxicity category I, II, or III 
 30.18  pesticide product, as classified by the United States 
 30.19  Environmental Protection Agency, or a restricted use pesticide, 
 30.20  as designated under the Federal Insecticide, Fungicide, and 
 30.21  Rodenticide Act, on school, Head Start, or child care property, 
 30.22  must provide a notice to parents and employees that it applies 
 30.23  such pesticides.  The notice required under subdivision 3 must: 
 30.24     (1) provide that an estimated schedule of the pesticide 
 30.25  applications is available for review or copying at the school, 
 30.26  Head Start, or child care offices where such pesticides are 
 30.27  applied; 
 30.28     (2) state that long-term health effects on children from 
 30.29  the application of such pesticides or the class of chemicals to 
 30.30  which they belong may not be fully understood; 
 30.31     (3) inform parents that a parent may request to be notified 
 30.32  by the school, Head Start program or child care provider in the 
 30.33  manner specified in subdivision 6 before any application of a 
 30.34  pesticide listed in this subdivision. 
 30.35     (b) A Head Start or child care program conducted in a 
 30.36  facility not owned by the program must ensure that the program 
 31.1   receives prior notification from the owner of the facility of 
 31.2   pesticide applications in order to comply with the requirements 
 31.3   of this section. 
 31.4      Subd. 3.  [NOTICE; TIMING; DISTRIBUTION.] The notice must 
 31.5   be provided no later than September 15 of each school year 
 31.6   during which pesticides listed in subdivision 2 are planned to 
 31.7   be applied.  The notice may be included with other notices 
 31.8   provided by the school, Head Start program, or child care 
 31.9   provider, but must be separately identified and clearly visible 
 31.10  to the reader.  
 31.11     Subd. 4.  [SCHOOL HANDBOOK OR STATEMENT OF POLICIES.] In 
 31.12  addition to the notice provided according to subdivision 3, a 
 31.13  school, Head Start program, or child care provider that is 
 31.14  required to provide notice under this section shall must include 
 31.15  in an official school handbook or official school policy guide 
 31.16  of a general nature a section informing parents that an 
 31.17  estimated schedule of applications of pesticides listed in 
 31.18  subdivision 2 is available for review or copying at the school 
 31.19  offices or Head Start or child care facility, and that a parent 
 31.20  may receive prior notice of each application if specifically 
 31.21  requested.  
 31.22     Subd. 5.  [NOTICE AVAILABILITY.] A school, Head Start 
 31.23  program, or child care provider that uses a pesticide listed in 
 31.24  subdivision 2 must keep a copy of all notifications required 
 31.25  under subdivisions 2 and 3 for at least six years in a manner 
 31.26  available to the public.  
 31.27     Subd. 6.  [NOTIFICATION FOR INDIVIDUAL PARENTS.] A parent 
 31.28  of a student at a school or a child participating in a Head 
 31.29  Start or child care program may request that the school 
 31.30  principal or other person having general control and supervision 
 31.31  of the school notify the parent to be notified prior to the 
 31.32  application of any pesticides listed in subdivision 2 at the 
 31.33  school or program on a day different from the days specified in 
 31.34  the notice under subdivision 3.  The school principal, program 
 31.35  director, or other person having general control and supervision 
 31.36  of the school or program must provide reasonable notice to a 
 32.1   parent who has requested such the notification prior to applying 
 32.2   such the pesticides.  The notice may be waived for emergency 
 32.3   applications required only by appropriate state or local health 
 32.4   officials.  The notice must include the pesticide to be applied, 
 32.5   the time of the planned application, and the location at the 
 32.6   school or program of the planned application.  A school or 
 32.7   program may request reimbursement for the school's its 
 32.8   reasonable costs of providing notice under this subdivision, 
 32.9   including any costs of mailing, from individuals requesting 
 32.10  notification under this subdivision. 
 32.11     Subd. 7.  [MODEL NOTICE.] The department of health, in 
 32.12  consultation with the department of children, families, and 
 32.13  learning, the office of environmental assistance, and University 
 32.14  of Minnesota extension service, shall develop and make available 
 32.15  to schools by August 1, 2000, a model notice in a form that can 
 32.16  be used by a school, Head Start program, or child care provider 
 32.17  if it chooses to do so.  The department shall make the model 
 32.18  notice available to schools by August 1, 2000, and to Head Start 
 32.19  programs and child care providers by August 1, 2001.  The model 
 32.20  notice must include the information required by this section.  
 32.21  The department of health must provide an opportunity for 
 32.22  environmental groups, interested parents, public health 
 32.23  organizations, and other parties to work with the department in 
 32.24  developing the model notice.  
 32.25     Subd. 8.  [PLAN.] A school, Head Start program, or child 
 32.26  care provider is not required to adopt an integrated pest 
 32.27  management plan.  A school board, Head Start program, or child 
 32.28  care provider may only notify students, parents, or employees 
 32.29  that it has adopted an integrated pest management plan if the 
 32.30  plan is a managed pest control program designed to minimize the 
 32.31  risk to human health and the environment and to reduce the use 
 32.32  of chemical pesticides, and which ranks the district's, Head 
 32.33  Start program's, or child care provider's response to pests in 
 32.34  the following manner: 
 32.35     (1) identifying pests which need to be controlled; 
 32.36     (2) establishing tolerable limits of each identified pest; 
 33.1      (3) designing future buildings and landscapes to prevent 
 33.2   identified pests; 
 33.3      (4) excluding identified pests from sites and buildings 
 33.4   using maintenance practices; 
 33.5      (5) adapting cleaning activities and best management 
 33.6   practices to minimize the number of pests; 
 33.7      (6) using mechanical methods of controlling identified 
 33.8   pests; and 
 33.9      (7) controlling identified pests using the least toxic 
 33.10  pesticides with the least exposure to persons as is practicable. 
 33.11     Subd. 9.  [PESTICIDE DEFINED; CLEANING PRODUCTS EXCLUDED.] 
 33.12  For purposes of this section, the term "pesticide" has the 
 33.13  meaning given it in section 18B.01, subdivision 18, except that 
 33.14  it does not include any disinfectants, sanitizers, deodorizers, 
 33.15  or antimicrobial agents used for general cleaning purposes. 
 33.16     Subd. 10.  [PEST DEFINED.] For purposes of this section, 
 33.17  the term "pest" has the meaning given it in section 18B.01, 
 33.18  subdivision 17. 
 33.19     Subd. 11.  [SCHOOL DEFINED.] For the purposes of this 
 33.20  section, "school" means a school as defined in section 120A.22, 
 33.21  subdivision 4, excluding home schools. 
 33.22     Subd. 11a.  [CHILD CARE PROVIDER.] For the purposes of this 
 33.23  section, "child care center provider" means a licensed provider. 
 33.24     Subd. 12.  [IMMUNITY FROM LIABILITY.] No cause of action 
 33.25  may be brought against a school district, a school, or the 
 33.26  districts or school's employees or agents any of the following 
 33.27  persons for any failure to comply with the requirements under 
 33.28  this section: 
 33.29     (1) a school district, a school, or the district's or 
 33.30  school's employees or agents; 
 33.31     (2) A Head Start program or the program's employees or 
 33.32  agents; or 
 33.33     (3) a child care provider or the provider's employees or 
 33.34  agents. 
 33.35     Subd. 13.  [EVIDENCE OF FAILURE TO COMPLY EXCLUDED.] A 
 33.36  failure to comply with the requirements of this section may not 
 34.1   be presented as evidence in any lawsuit based upon physical 
 34.2   injury resulting from exposure to pesticides applied at a 
 34.3   school, Head Start program, or child care facility. 
 34.4      Subd. 14.  [NO SPECIAL RIGHTS.] Nothing in this section 
 34.5   affects the duty of a parent or a student to comply with the 
 34.6   compulsory attendance law or the duty of a school, Head Start, 
 34.7   or child care employee to comply with the provisions of an 
 34.8   applicable employment contract or policy.  
 34.9      <b>[EFFECTIVE DATE.]</b> This section is effective August 1, 2001. 
 34.10     Sec. 41.  Minnesota Statutes 2000, section 124D.135, is 
 34.11  amended by adding a subdivision to read: 
 34.12     Subd. 8.  [RESERVE ACCOUNT LIMIT.] Under this section, the 
 34.13  average annual revenue, during the most recent three-year 
 34.14  period, in a district's early childhood family education reserve 
 34.15  account on June 30 of each year must not be greater than 25 
 34.16  percent of the district's early childhood family education 
 34.17  annual revenue for the prior year.  If a district's average 
 34.18  early childhood family education reserve, over the most recent 
 34.19  three-year period, is in excess of 25 percent of the prior year 
 34.20  annual revenue, the district's current year early childhood 
 34.21  family education state aid and levy authority must be reduced by 
 34.22  the excess reserve amount.  The commissioner must reallocate aid 
 34.23  reduced under this subdivision to other eligible early childhood 
 34.24  family education programs.  
 34.25     Sec. 42.  Minnesota Statutes 2000, section 124D.135, is 
 34.26  amended by adding a subdivision to read: 
 34.27     Subd. 9.  [WAIVER.] If a district anticipates that the 
 34.28  reserve account may exceed the 25 percent limit established 
 34.29  under subdivision 8 because of extenuating circumstances, prior 
 34.30  approval to exceed the limit must be obtained in writing from 
 34.31  the commissioner. 
 34.32     Sec. 43.  Minnesota Statutes 2000, section 124D.16, 
 34.33  subdivision 2, is amended to read: 
 34.34     Subd. 2.  [AMOUNT OF AID.] (a) A district is eligible to 
 34.35  receive school readiness aid if the program plan as required by 
 34.36  subdivision 1 has been approved by the commissioner. 
 35.1      (b) For fiscal year 1998 and thereafter, a district must 
 35.2   receive school readiness aid equal to: 
 35.3      (1) the number of eligible four-year-old children in the 
 35.4   district on October 1 for the previous school year times the 
 35.5   ratio of 50 percent of the total school readiness aid for that 
 35.6   year to the total number of eligible four-year-old children 
 35.7   reported to the commissioner for that the previous school year; 
 35.8   plus 
 35.9      (2) the number of pupils enrolled in the school district 
 35.10  from families eligible for the free or reduced school lunch 
 35.11  program for the second previous school year times the ratio of 
 35.12  50 percent of the total school readiness aid for that year to 
 35.13  the total number of pupils in the state from families eligible 
 35.14  for the free or reduced school lunch program for the second 
 35.15  previous school year. 
 35.16     Sec. 44.  Minnesota Statutes 2000, section 124D.16, is 
 35.17  amended by adding a subdivision to read: 
 35.18     Subd. 5.  [RESERVE ACCOUNT.] School readiness revenue, 
 35.19  which includes aids, fees, grants, and all other revenues 
 35.20  received by the district school readiness programs, must be 
 35.21  maintained in a reserve account within the community service 
 35.22  fund.  
 35.23     Sec. 45.  Minnesota Statutes 2000, section 124D.16, is 
 35.24  amended by adding a subdivision to read: 
 35.25     Subd. 6.  [RESERVE ACCOUNT LIMIT.] Under this section, the 
 35.26  average annual revenue, during the most recent three-year 
 35.27  period, in a district's school readiness reserve account on June 
 35.28  30 of each year must not be greater than 25 percent of the 
 35.29  district's school readiness annual revenue for the prior year.  
 35.30  If a district's average school readiness reserve, over the most 
 35.31  recent three-year period, is in excess of 25 percent of the 
 35.32  prior year annual revenue, the district's current year school 
 35.33  readiness state aid must be reduced by the excess reserve 
 35.34  amount.  The commissioner must reallocate aid reduced under this 
 35.35  subdivision to other eligible school readiness programs.  
 35.36     Sec. 46.  Minnesota Statutes 2000, section 124D.16, is 
 36.1   amended by adding a subdivision to read: 
 36.2      Subd. 7.  [WAIVER.] If a district anticipates that the 
 36.3   reserve account may exceed the 25 percent limit established 
 36.4   under subdivision 6 because of extenuating circumstances, prior 
 36.5   approval to exceed the limit must be obtained in writing from 
 36.6   the commissioner. 
 36.7      Sec. 47.  [124D.165] [EARLY CHILDHOOD PROGRAM EVALUATION.] 
 36.8      (a) The commissioner must develop and use a common set of 
 36.9   outcomes and indicators and a statewide outcome-based evaluation 
 36.10  for the early childhood programs under sections 119A.52, 
 36.11  124D.13, and 124D.15. 
 36.12     (b) The outcomes and indicators for the early childhood 
 36.13  programs listed in paragraph (a) must include the following, if 
 36.14  applicable to the program: 
 36.15     (1) school readiness; 
 36.16     (2) child development; 
 36.17     (3) parental awareness of child development; 
 36.18     (4) parental satisfaction; 
 36.19     (5) parental involvement; and 
 36.20     (6) child health. 
 36.21     (c) The statewide outcome-based evaluation must include, 
 36.22  for each of the early childhood programs listed under paragraph 
 36.23  (a): 
 36.24     (1) a statewide comparison of children and parents 
 36.25  participating in the program and a statewide comparison group of 
 36.26  children and parents who have not participated in the programs; 
 36.27  and 
 36.28     (2) cost per participant information. 
 36.29     (d) The commissioner must require each program receiving 
 36.30  revenue under sections 119A.52, 124D.135, and 124D.16 to 
 36.31  participate in the development and use of the outcomes and 
 36.32  indicators under paragraph (b). 
 36.33     (e) The commissioner must report to the legislative finance 
 36.34  committees with responsibility for the programs listed under 
 36.35  paragraph (a) by January 31, 2002, on the development of the 
 36.36  outcomes, indicators, and outcome-based evaluation required 
 37.1   under this section. 
 37.2      Sec. 48.  Minnesota Statutes 2000, section 125A.28, is 
 37.3   amended to read: 
 37.4      125A.28 [STATE INTERAGENCY COORDINATING COUNCIL.] 
 37.5      An interagency coordinating council of at least 17, but not 
 37.6   more than 25 members is established, in compliance with Public 
 37.7   Law Number 102-119, section 682.  The members must be appointed 
 37.8   by the governor.  Council members must elect the council chair.  
 37.9   The representative of the commissioner may not serve as the 
 37.10  chair.  The council must be composed of at least five parents, 
 37.11  including persons of color, of children with disabilities under 
 37.12  age 12, including at least three parents of a child with a 
 37.13  disability under age seven, five representatives of public or 
 37.14  private providers of services for children with disabilities 
 37.15  under age five, including a special education director, county 
 37.16  social service director, local Head Start director, and a 
 37.17  community health services or public health nursing 
 37.18  administrator, one member of the senate, one member of the house 
 37.19  of representatives, one representative of teacher preparation 
 37.20  programs in early childhood-special education or other 
 37.21  preparation programs in early childhood intervention, at least 
 37.22  one representative of advocacy organizations for children with 
 37.23  disabilities under age five, one physician who cares for young 
 37.24  children with special health care needs, one representative each 
 37.25  from the commissioners of commerce, children, families, and 
 37.26  learning, health, human services, a representative from the 
 37.27  state agency responsible for child care, and a representative 
 37.28  from Indian health services or a tribal council.  Section 
 37.29  15.059, subdivisions 2 to 5, apply to the council.  The council 
 37.30  must meet at least quarterly.  
 37.31     The council must address methods of implementing the state 
 37.32  policy of developing and implementing comprehensive, 
 37.33  coordinated, multidisciplinary interagency programs of early 
 37.34  intervention services for children with disabilities and their 
 37.35  families. 
 37.36     The duties of the council include recommending policies to 
 38.1   ensure a comprehensive and coordinated system of all state and 
 38.2   local agency services for children under age five with 
 38.3   disabilities and their families.  The policies must address how 
 38.4   to incorporate each agency's services into a unified state and 
 38.5   local system of multidisciplinary assessment practices, 
 38.6   individual intervention plans, comprehensive systems to find 
 38.7   children in need of services, methods to improve public 
 38.8   awareness, and assistance in determining the role of interagency 
 38.9   early intervention committees.  
 38.10     By June September 1, the council must recommend to the 
 38.11  governor and the commissioners of children, families, and 
 38.12  learning, health, human services, commerce, and economic 
 38.13  security policies for a comprehensive and coordinated system. 
 38.14     Notwithstanding any other law to the contrary, the state 
 38.15  interagency coordinating council expires on June 30, 2001 2003.  
 38.16     Sec. 49.  [CHILD CARE DEVELOPMENT FUND STATEWIDE PLAN.] 
 38.17     Subdivision 1.  [CHILD CARE DEVELOPMENT FUND STATEWIDE 
 38.18  PLAN.] (a) In accordance with the requirements found in Code of 
 38.19  Federal Regulations, title 45, part 98, and in conjunction with 
 38.20  other federal, state, and local child care and early childhood 
 38.21  development programs, the commissioner of children, families, 
 38.22  and learning must continue to coordinate the creation of a 
 38.23  Minnesota child care and development fund plan to determine 
 38.24  statewide grant activities for the 2002-2003 biennium. 
 38.25     (b) The plan must identify grant activities that: 
 38.26     (1) directly respond to federal requirements, including 
 38.27  school-age care, infant and toddler care, child care resource 
 38.28  and referral, and quality and availability; 
 38.29     (2) promote community partnerships among a variety of 
 38.30  family providers as well as child care centers; and 
 38.31     (3) create new opportunities for employer involvement in 
 38.32  the provision of child care. 
 38.33     (c) The plan must provide no less than 35 percent of the 
 38.34  total funding in each fiscal year for child care development 
 38.35  grants for federally required activities, no less than five 
 38.36  percent of the total funding in each fiscal year for quality 
 39.1   improvement activities with existing early childhood family 
 39.2   education programs and child care providers, and no less than 15 
 39.3   percent of the general fund appropriation for child care 
 39.4   development for the development of child care facilities under 
 39.5   Minnesota Statutes, section 119B.25. 
 39.6      Subd. 2.  [CHILD CARE DEVELOPMENT GRANTS.] (a) Total 
 39.7   funding for child care development grants consists of money 
 39.8   received from state general funds, federal child care 
 39.9   development funds, federal TANF funds, and benevolent gifts.  
 39.10  Total child care development grant funding is $10,808,000 in 
 39.11  fiscal year 2002 and $11,123,000 in fiscal year 2003. 
 39.12     (b) In accordance with federal requirements for the 
 39.13  development of a comprehensive child care development plan and 
 39.14  in an effort to provide for a variety of child care needs 
 39.15  statewide, the Minnesota child care and development fund plan 
 39.16  must provide, at a minimum: 
 39.17     (1) $1,000,000 in the 2002-2003 fiscal biennium for early 
 39.18  childhood family education programs, under Minnesota Statutes, 
 39.19  section 124D.13, in communities throughout the state to enhance 
 39.20  the learning experiences of children in family- or center-based 
 39.21  child care programs through the provision of supplementary 
 39.22  services and resources, staff training, parent education, and 
 39.23  assistance with children who have special needs; 
 39.24     (2) $500,000 from the general fund in the 2002-2003 fiscal 
 39.25  biennium for loans to improve or construct child care sites, 
 39.26  under Minnesota Statutes, section 119B.25.  Each loan must be 
 39.27  matched with nonpublic funding on a one-to-one basis; 
 39.28     (3) $120,000 in the 2002-2003 fiscal biennium for early 
 39.29  childhood professional development grants.  No less than four 
 39.30  grants must be awarded to support child care professional 
 39.31  development activities.  Two of the grants must focus on the 
 39.32  development needs of child care professionals in rural areas and 
 39.33  two of the grants must focus on the development needs of child 
 39.34  care professionals located in the seven-county metropolitan 
 39.35  area.  Grants to successful applicants may not exceed $30,000 
 39.36  per grant; 
 40.1      (4) $200,000 in the 2002-2003 fiscal biennium for the 
 40.2   facilities loan and business program.  These funds must be used 
 40.3   to heighten business awareness and streamline the process to 
 40.4   support the development of new child care facilities in 
 40.5   workplace settings.  No less than 40 percent of these funds must 
 40.6   be used by the commissioner to work with the Minnesota chamber 
 40.7   of commerce and its affiliates and other trade organizations to 
 40.8   develop a statewide approach to encourage employers to establish 
 40.9   tax-deferred child care accounts for their employees; 
 40.10     (5) $1,000,000 in the 2002-2003 fiscal biennium for the 
 40.11  loan forgiveness scholarship program for credit-based education 
 40.12  or C.D.A. classes for child care providers that agree to work in 
 40.13  the Minnesota child care industry for two years; 
 40.14     (6) $20,000 in each year of the 2002-2003 fiscal biennium 
 40.15  for the child care assistance voucher program.  These funds must 
 40.16  be used to assist counties with fraud prevention activities, 
 40.17  especially in counties that make child care assistance payments 
 40.18  directly to the parents.  The commissioner of children, 
 40.19  families, and learning must devise a system of paper vouchers 
 40.20  and by October 1, 2001, require all counties that currently make 
 40.21  child care assistance payments directly to parents to convert to 
 40.22  the child care assistance voucher program system. 
 40.23     Sec. 50.  [APPROPRIATIONS.] 
 40.24     Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
 40.25  LEARNING.] The sums indicated in this section are appropriated 
 40.26  from the general fund to the department of children, families, 
 40.27  and learning for the fiscal years designated, unless otherwise 
 40.28  indicated.  
 40.29     Subd. 2.  [SCHOOL READINESS PROGRAM REVENUE.] For revenue 
 40.30  for school readiness programs according to Minnesota Statutes, 
 40.31  sections 124D.15 and 124D.16: 
 40.32       $10,395,000    .....     2002
 40.33       $10,395,000    .....     2003
 40.34     The 2002 appropriation includes $1,039,000 for 2001 and 
 40.35  $9,356,000 for 2002. 
 40.36     The 2003 appropriation includes $1,039,000 for 2002 and 
 41.1   $9,356,000 for 2003.  
 41.2      Any balance in the first year does not cancel but is 
 41.3   available in the second year. 
 41.4      Subd. 3.  [EARLY CHILDHOOD FAMILY EDUCATION AID.] For early 
 41.5   childhood family education aid according to Minnesota Statutes, 
 41.6   section 124D.135: 
 41.7        $20,758,000    .....     2002 
 41.8        $20,663,000    .....     2003
 41.9      The 2002 appropriation includes $2,036,000 for 2001 and 
 41.10  $18,722,000 for 2002.  
 41.11     The 2003 appropriation includes $2,081,000 for 2002 and 
 41.12  $18,582,000 for 2003.  
 41.13     Any balance in the first year does not cancel but is 
 41.14  available in the second year. 
 41.15     Subd. 4.  [HEALTH AND DEVELOPMENTAL SCREENING AID.] For 
 41.16  health and developmental screening aid according to Minnesota 
 41.17  Statutes, sections 121A.17 and 121A.19: 
 41.18       $2,661,000     .....     2002 
 41.19       $2,661,000     .....     2003 
 41.20     The 2002 appropriation includes $266,000 for 2001 and 
 41.21  $2,395,000 for 2002.  
 41.22     The 2003 appropriation includes $266,000 for 2002 and 
 41.23  $2,395,000 for 2003.  
 41.24     Any balance in the first year does not cancel but is 
 41.25  available in the second year. 
 41.26     Subd. 5.  [WAY TO GROW.] For grants for existing way to 
 41.27  grow programs according to Minnesota Statutes, section 124D.17:  
 41.28       $475,000       .....     2002
 41.29       $475,000       .....     2003
 41.30     Any balance in the first year does not cancel but is 
 41.31  available in the second year. 
 41.32     Subd. 6.  [HEAD START PROGRAM.] For Head Start programs 
 41.33  according to Minnesota Statutes, section 119A.52: 
 41.34       $17,375,000    .....     2002
 41.35       $17,375,000    .....     2003
 41.36     The general fund base for fiscal years 2004 and 2005 is 
 42.1   $17,375,000 for each year.  Any balance in the first year does 
 42.2   not cancel but is available in the second year. 
 42.3      Subd. 7.  [SCHOOL AGE CARE AID.] For school age care aid 
 42.4   according to Minnesota Statutes, section 124D.22: 
 42.5        $221,000       .....     2002 
 42.6        $133,000       .....     2003
 42.7      The 2002 appropriation includes $30,000 for 2001 and 
 42.8   $191,000 for 2002. 
 42.9      The 2003 appropriation includes $21,000 for 2002 and 
 42.10  $112,000 for 2003. 
 42.11     Any balance in the first year does not cancel but is 
 42.12  available in the second year. 
 42.13     Subd. 8.  [CHILD CARE ASSISTANCE.] For child care 
 42.14  assistance according to Minnesota Statutes, section 119B.014:  
 42.15       $134,252,000    .....     2002 
 42.16       $130,604,000    .....     2003
 42.17     Any balance in the first year does not cancel but is 
 42.18  available in the second year. 
 42.19     Subd. 9.  [CHILD CARE INTEGRITY.] For the administrative 
 42.20  costs of program integrity and fraud prevention for child care 
 42.21  assistance under chapter 119B: 
 42.22       $175,000       .....     2002 
 42.23       $175,000       .....     2003 
 42.24     Any balance in the first year does not cancel but is 
 42.25  available in the second year. 
 42.26     Subd. 10.  [CHILD CARE DEVELOPMENT.] For child care 
 42.27  development grants according to Minnesota Statutes, section 
 42.28  119B.21: 
 42.29       $1,865,000      .....     2002
 42.30       $1,865,000      .....     2003
 42.31     These funds must be used in accordance with section 49, 
 42.32  subdivision 2, paragraph (b), clause (2). 
 42.33     Any balance in the first year does not cancel but is 
 42.34  available in the second year. 
 42.35     Subd. 11.  [EARLY CHILDHOOD PROGRAM EVALUATIONS.] For early 
 42.36  childhood program evaluations according to Minnesota Statutes, 
 43.1   sections 119A.52, 124D.13, and 124D.15: 
 43.2        $110,000      .....     2002
 43.3        $110,000      .....     2003
 43.4      Any balance in the first year does not cancel but is 
 43.5   available in the second year. 
 43.6      Sec. 51.  [SPECIAL REVENUE; CHILD SUPPORT COLLECTIONS.] 
 43.7      Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
 43.8   LEARNING.] Appropriations in this section are from child support 
 43.9   collection payments in the special revenue fund pursuant to 
 43.10  Minnesota Statutes, section 119B.014.  The sums indicated are 
 43.11  appropriated to the department of children, families, and 
 43.12  learning for the fiscal years designated.  The commissioner must 
 43.13  ensure that all transferred funds are expended in accordance 
 43.14  with the child care and development regulations and that the 
 43.15  maximum allowable transferred funds are used for the program in 
 43.16  this section.  
 43.17     Subd. 2.  [CHILD CARE ASSISTANCE.] For child care 
 43.18  assistance according to Minnesota Statutes, section 119B.014: 
 43.19       $2,441,439     .....     2002 
 43.20       $2,340,251     .....     2003
 43.21     Sec. 52.  [FEDERAL TANF TRANSFERS.] 
 43.22     Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, and 
 43.23  LEARNING.] The sums indicated in this section are transferred 
 43.24  from the federal TANF fund to the child care and development 
 43.25  fund and appropriated to the department of children, families, 
 43.26  and learning for the fiscal years designated. 
 43.27     Subd. 2.  [CHILD CARE ASSISTANCE.] For child care 
 43.28  assistance according to Minnesota Statutes, section 119B.014:  
 43.29       $24,473,000    .....     2002 
 43.30       $24,038,000    .....     2003 
 43.31     Of this appropriation, $3,500,000 per year must be used for 
 43.32  the child care at-risk set-aside under Minnesota Statutes, 
 43.33  section 119B.045, subdivision 4. 
 43.34     Any balance the first year does not cancel but is available 
 43.35  in the second year. 
 43.36     Sec. 53.  [FEDERAL TANF TRANSFERS.] 
 44.1      Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
 44.2   LEARNING.] The sums indicated in this section are transferred 
 44.3   from the federal TANF fund to the Head Start program and 
 44.4   appropriated to the department of children, families, and 
 44.5   learning for the fiscal years designated.  These funds shall be 
 44.6   used to provide Head Start services for children ages zero to 
 44.7   three.  
 44.8      Subd. 2.  [HEAD START PROGRAM.] For Head Start programs 
 44.9   according to Minnesota Statutes, section 119A.52:  
 44.10       $1,000,000     .....     2002 
 44.11       $1,000,000     .....     2003 
 44.12     The TANF base for fiscal years 2004 and 2005 is $1,000,000 
 44.13  each year.  
 44.14     Any balance the first year does not cancel but is available 
 44.15  in the second year.  
 44.16     Sec. 54.  [REPEALER.] 
 44.17     (a) Minnesota Statutes 2000, sections 119B.011, subdivision 
 44.18  20; 119B.03; 119B.04; 119B.05; 119B.06; 119B.07; 119B.074; 
 44.19  119B.08; 119B.09; 119B.10; 119B.11; 119B.12; 119B.13; 119B.14; 
 44.20  119B.15; and 119B.16, are repealed effective December 31, 2001. 
 44.21     (b) Minnesota Statutes 2000, section 124D.16, subdivision 
 44.22  4, is repealed effective July 1, 2001.  
 44.23     Sec. 55.  [EFFECTIVE DATE.] 
 44.24     Sections 4 to 39 are effective January 1, 2002. 
 44.25                             ARTICLE 2 
 44.26                             PREVENTION 
 44.27     Section 1.  Minnesota Statutes 2000, section 119A.12, is 
 44.28  amended by adding a subdivision to read: 
 44.29     Subd. 4.  [AUTHORITY TO DISBURSE FUNDS.] The commissioner 
 44.30  may disburse trust fund money to any public or private nonprofit 
 44.31  agency to fund a child abuse prevention program.  State funds 
 44.32  appropriated for child maltreatment prevention grants may be 
 44.33  transferred to the children's trust fund special revenue account 
 44.34  and are available to carry out this section. 
 44.35     Sec. 2.  Minnesota Statutes 2000, section 119A.12, is 
 44.36  amended by adding a subdivision to read: 
 45.1      Subd. 5.  [PLAN FOR DISBURSEMENT OF FUNDS.] The 
 45.2   commissioner shall develop a plan to disburse money from the 
 45.3   trust fund.  The plan must ensure that all geographic areas of 
 45.4   the state have an equal opportunity to establish prevention 
 45.5   programs and receive trust fund money. 
 45.6      Sec. 3.  Minnesota Statutes 2000, section 119A.12, is 
 45.7   amended by adding a subdivision to read: 
 45.8      Subd. 6.  [OPERATIONAL COSTS.] $120,000 each year is 
 45.9   appropriated from the children's trust fund to the special 
 45.10  revenue fund for administration and indirect costs of the 
 45.11  children's trust fund program. 
 45.12     Sec. 4.  Minnesota Statutes 2000, section 119A.13, 
 45.13  subdivision 4, is amended to read: 
 45.14     Subd. 4.  [RESPONSIBILITIES OF COMMISSIONER.] (a) The 
 45.15  commissioner shall: 
 45.16     (1) provide for the coordination and exchange of 
 45.17  information on the establishment and maintenance of prevention 
 45.18  programs; 
 45.19     (2) develop and publish criteria for receiving trust fund 
 45.20  money by prevention programs; 
 45.21     (3) review, approve, and monitor the spending of trust fund 
 45.22  money by prevention programs; 
 45.23     (4) provide statewide educational and public informational 
 45.24  seminars to develop public awareness on preventing child abuse; 
 45.25  to encourage professional persons and groups to recognize 
 45.26  instances of child abuse and work to prevent them; to make 
 45.27  information on child abuse prevention available to the public 
 45.28  and to organizations and agencies; and to encourage the 
 45.29  development of prevention programs, including programs that 
 45.30  provide support for adolescent parents, fathering education 
 45.31  programs, and other prevention activities designed to prevent 
 45.32  teen pregnancy; 
 45.33     (5) establish a procedure for an annual, internal 
 45.34  evaluation of the functions, responsibilities, and performance 
 45.35  of the commissioner in carrying out Laws 1986, chapter 423; 
 45.36     (6) provide technical assistance to local councils and 
 46.1   agencies working in the area of child abuse prevention; and 
 46.2      (7) accept and review grant applications beginning June 1, 
 46.3   1987. 
 46.4      (b) The commissioner shall recommend to the governor 
 46.5   changes in state programs, statutes, policies, budgets, and 
 46.6   standards that will reduce the problems of child abuse, improve 
 46.7   coordination among state agencies that provide prevention 
 46.8   services, and improve the condition of children, parents, or 
 46.9   guardians in need of prevention program services. 
 46.10     Sec. 5.  Minnesota Statutes 2000, section 119A.21, is 
 46.11  amended to read: 
 46.12     119A.21 [GRANTS TO SERVICE PROVIDER PROGRAMS.] 
 46.13     Subdivision 1.  [GRANTS AWARDED.] The commissioner shall 
 46.14  award grants to programs which provide abused children 
 46.15  services to abused or neglected children.  Grants shall be 
 46.16  awarded in a manner that ensures that they are equitably 
 46.17  distributed to programs serving metropolitan and nonmetropolitan 
 46.18  populations.  
 46.19     Subd. 2.  [APPLICATIONS.] Any public or private nonprofit 
 46.20  agency may apply to the commissioner for a grant to provide 
 46.21  abused children services.  The application shall be submitted in 
 46.22  on a form approved prescribed by the commissioner after 
 46.23  consultation with the abused children advisory council and shall 
 46.24  include:.  
 46.25     (1) a proposal for the provision of abused children 
 46.26  services to, or on behalf of, abused children, children at risk, 
 46.27  and their families; 
 46.28     (2) a proposed budget; 
 46.29     (3) evidence of ability to represent the interests of 
 46.30  abused children and their families to local law enforcement 
 46.31  agencies and courts, social services, and health agencies; 
 46.32     (4) evidence of ability to do outreach to unserved and 
 46.33  underserved populations and to provide culturally and 
 46.34  linguistically appropriate services; and 
 46.35     (5) any other information the commissioner may require by 
 46.36  policy or by rule adopted under chapter 14, after considering 
 47.1   the recommendations of the abused children advisory council.  
 47.2      Programs which have been approved for grants in prior years 
 47.3   may submit materials which indicate changes in items listed in 
 47.4   clauses (1) to (5), in order to qualify for renewal funding.  
 47.5   Nothing in this subdivision may be construed to require programs 
 47.6   to submit complete applications for each year of funding.  
 47.7      Subd. 3.  [DUTIES.] Every public or private nonprofit 
 47.8   agency which receives a grant under this section to provide 
 47.9   abused children services shall comply with all requirements of 
 47.10  the commissioner related to the administration of the grants.  
 47.11     Subd. 4.  [CLASSIFICATION OF DATA COLLECTED BY GRANTEES.] 
 47.12  Personal history information and other information collected, 
 47.13  used, or maintained by a grantee from which the identity of any 
 47.14  abused child or family members may be determined is private data 
 47.15  on individuals as defined in section 13.02, subdivision 12, and 
 47.16  the grantee shall maintain the data in accordance with 
 47.17  provisions of chapter 13. 
 47.18     Sec. 6.  Minnesota Statutes 2000, section 119A.22, is 
 47.19  amended to read: 
 47.20     119A.22 [DUTIES OF THE COMMISSIONER.] 
 47.21     The commissioner shall:  
 47.22     (1) review applications and award grants to programs 
 47.23  pursuant to section 119A.21 after considering the recommendation 
 47.24  of the abused children advisory council; 
 47.25     (2) appoint members of the abused children advisory council 
 47.26  created under section 119A.23 and provide consultative staff and 
 47.27  other administrative services to the council; 
 47.28     (3) after considering the recommendation of the abused 
 47.29  children advisory council, appoint a program director to perform 
 47.30  the duties set forth in this clause.  In appointing the program 
 47.31  director the commissioner shall give due consideration to the 
 47.32  list of applicants submitted to the commissioner pursuant to 
 47.33  this section.  The program director shall administer the funds 
 47.34  appropriated for sections 119A.20 to 119A.23, consult with and 
 47.35  provide staff to the advisory council and perform other duties 
 47.36  related to abused children's programs as the commissioner may 
 48.1   assign; 
 48.2      (4) design a uniform method of collecting data on abused 
 48.3   children's programs to be used to monitor and assure compliance 
 48.4   of the programs funded under section 119A.21; 
 48.5      (5) (3) provide technical aid assistance to applicants in 
 48.6   the development of grant requests and to programs grantees in 
 48.7   meeting the data collection requirements established by the 
 48.8   commissioner; and 
 48.9      (6) (4) adopt, under chapter 14, all rules necessary to 
 48.10  implement the provisions of sections 119A.20 to 119A.23.  
 48.11     Sec. 7.  [119A.35] [ADVISORY COUNCIL.] 
 48.12     Subdivision 1.  [GENERALLY.] The council is established 
 48.13  under section 15.059 to advise the commissioner of children, 
 48.14  families, and learning on the implementation and continued 
 48.15  operations of sections 119A.10 to 119A.16 and 119A.20 to 
 48.16  119A.22.  The council shall expire June 30, 2005. 
 48.17     Subd. 2.  [COUNCIL MEMBERSHIP.] The council shall consist 
 48.18  of a total of 22 members.  The governor shall appoint 18 of 
 48.19  these members.  The commissioners of human services and health 
 48.20  shall each appoint one member.  The senate shall appoint one 
 48.21  member from the senate family and early childhood education 
 48.22  finance committee and the house of representatives shall appoint 
 48.23  one member from the house family and early childhood budget 
 48.24  committee. 
 48.25     Council members shall have knowledge in the areas of child 
 48.26  abuse and neglect prevention and intervention and knowledge of 
 48.27  the risk factors that can lead to child abuse and neglect.  
 48.28  Council members shall be representative of:  local government, 
 48.29  criminal justice, parents, consumers of services, health and 
 48.30  human services professionals, faith community, professional and 
 48.31  volunteer providers of child abuse and neglect prevention and 
 48.32  intervention services, racial and ethnic minority communities, 
 48.33  and the demographic and geographic composition of the state.  
 48.34  Ten council members shall reside in the seven-county 
 48.35  metropolitan area and eight shall reside in nonmetropolitan 
 48.36  areas. 
 49.1      Subd. 3.  [RESPONSIBILITIES.] The council shall: 
 49.2      (1) advise the commissioner on planning, policy 
 49.3   development, data collection, rulemaking, funding, and 
 49.4   evaluation of the programs under the sections listed in 
 49.5   subdivision 1; 
 49.6      (2) coordinate and exchange information on the 
 49.7   establishment and ongoing operation of the programs listed in 
 49.8   subdivision 1; 
 49.9      (3) develop and publish criteria and guidelines for 
 49.10  receiving grants relating to child abuse and neglect prevention 
 49.11  and safety and support of child victims, including, but not 
 49.12  limited to, funds dedicated to the children's trust fund and 
 49.13  abused children program; 
 49.14     (4) provide guidance in the development of statewide 
 49.15  education and public information activities that increase public 
 49.16  awareness in the prevention and intervention of child abuse and 
 49.17  neglect and encourage the development of prevention and 
 49.18  intervention programs, which includes the safety of child 
 49.19  victims; 
 49.20     (5) guide, analyze, and disseminate results in the 
 49.21  development of appropriate evaluation procedures for all 
 49.22  programs receiving funds under subdivision 1; and 
 49.23     (6) assist the commissioner in identifying service gaps or 
 49.24  duplication in services including geographic dispersion of 
 49.25  resources, programs reflecting the cycle of child abuse, and the 
 49.26  availability of culturally appropriate intervention and 
 49.27  prevention services. 
 49.28     Sec. 8.  Minnesota Statutes 2000, section 124D.19, is 
 49.29  amended by adding a subdivision to read: 
 49.30     Subd. 12.  [YOUTH AFTER-SCHOOL ENRICHMENT PROGRAMS.] Each 
 49.31  district operating a community education program under this 
 49.32  section may establish a youth after-school enrichment program to 
 49.33  maintain and expand participation by school-age youth in 
 49.34  supervised activities during nonschool hours.  The youth 
 49.35  after-school enrichment programs must include activities that 
 49.36  support development of social, mental, physical, and creative 
 50.1   abilities of school-age youth; provide structured youth programs 
 50.2   during high-risk times; and design programming to promote youth 
 50.3   leadership development and improved academic performance.  Youth 
 50.4   after-school enrichment programs must collaborate with former 
 50.5   after-school enrichment grantees. 
 50.6      Sec. 9.  Minnesota Statutes 2000, section 124D.19, is 
 50.7   amended by adding a subdivision to read: 
 50.8      Subd. 13.  [YOUTH AFTER-SCHOOL ENRICHMENT PROGRAM 
 50.9   GOALS.] The goals of youth after-school enrichment programs are 
 50.10  to: 
 50.11     (1) collaborate with and leverage existing community 
 50.12  resources that have demonstrated effectiveness; 
 50.13     (2) reach out to children and youth, including at-risk 
 50.14  youth, in the community; 
 50.15     (3) increase the number of children participating in 
 50.16  adult-supervised programs during nonschool hours; 
 50.17     (4) support academic achievement; and 
 50.18     (5) increase skills in technology, the arts, sports, and 
 50.19  other activities. 
 50.20     Sec. 10.  Minnesota Statutes 2000, section 124D.19, is 
 50.21  amended by adding a subdivision to read: 
 50.22     Subd. 14.  [COMMUNITY EDUCATION; ANNUAL REPORT.] Each 
 50.23  district offering a community education program under this 
 50.24  section must annually report to the department of children, 
 50.25  families, and learning information regarding the cost per 
 50.26  participant and cost per contact hour for each community 
 50.27  education program, including youth after-school enrichment 
 50.28  programs, that receive aid or levy.  The department of children, 
 50.29  families, and learning must include cost per participant and 
 50.30  cost per contact hour information by program in the community 
 50.31  education annual report. 
 50.32     Sec. 11.  Minnesota Statutes 2000, section 124D.20, 
 50.33  subdivision 1, is amended to read: 
 50.34     Subdivision 1.  [TOTAL COMMUNITY EDUCATION REVENUE.] Total 
 50.35  community education revenue equals the sum of a district's 
 50.36  general community education revenue and, youth service program 
 51.1   revenue, and youth after-school enrichment revenue. 
 51.2      Sec. 12.  Minnesota Statutes 2000, section 124D.20, is 
 51.3   amended by adding a subdivision to read: 
 51.4      Subd. 4a.  [YOUTH AFTER-SCHOOL ENRICHMENT 
 51.5   REVENUE.] Beginning in 2002, youth after-school enrichment 
 51.6   revenue is available to a district that has implemented a youth 
 51.7   after-school enrichment program.  Youth after-school enrichment 
 51.8   revenue equals: 
 51.9      (1) $0.93 times the greater of 1,335 or the population of 
 51.10  the district, as defined in section 275.14, not to exceed 
 51.11  10,000; and 
 51.12     (2) $0.24 times the population of the district, as defined 
 51.13  in section 275.14, in excess of 10,000. 
 51.14     In fiscal year 2003 and thereafter, youth after-school 
 51.15  enrichment revenue equals: 
 51.16     (1) $2.78 times the greater of 1,335 or the population of 
 51.17  the district, as defined in section 275.14, not to exceed 
 51.18  10,000; and 
 51.19     (2) $0.67 times the population of the district, as defined 
 51.20  in section 275.14, in excess of 10,000.  Youth after-school 
 51.21  enrichment revenue must be reserved for youth after-school 
 51.22  enrichment programs. 
 51.23     Sec. 13.  Minnesota Statutes 2000, section 124D.20, 
 51.24  subdivision 5, is amended to read: 
 51.25     Subd. 5.  [TOTAL COMMUNITY EDUCATION LEVY.] To obtain total 
 51.26  community education revenue, a district may levy the amount 
 51.27  raised by a maximum tax rate of .4795 .7431 percent times the 
 51.28  adjusted net tax capacity of the district.  This amount reflects 
 51.29  a community education levy of .4795 percent times the adjusted 
 51.30  net tax capacity of the district plus a youth after-school 
 51.31  enrichment levy of .2636 percent times the adjusted net tax 
 51.32  capacity of the district.  If the amount of the total community 
 51.33  education levy would exceed the total community education 
 51.34  revenue, the total community education levy shall be determined 
 51.35  according to subdivision 6. 
 51.36     Sec. 14.  Minnesota Statutes 2000, section 124D.221, 
 52.1   subdivision 1, is amended to read: 
 52.2      Subdivision 1.  [ESTABLISHMENT.] A competitive statewide 
 52.3   after-school enrichment grant program is established to provide 
 52.4   implementation grants to community or nonprofit organizations, 
 52.5   to political subdivisions, or to school-based programs in cities 
 52.6   of the first class.  A community or nonprofit organization must 
 52.7   be a charitable organization under section 501(c)(3) of the 
 52.8   Internal Revenue Code of 1986.  An after-school enrichment grant 
 52.9   to a successful applicant may not exceed $750,000.  The 
 52.10  commissioner shall develop criteria for after-school enrichment 
 52.11  programs. 
 52.12     Sec. 15.  Minnesota Statutes 2000, section 124D.221, 
 52.13  subdivision 2, is amended to read: 
 52.14     Subd. 2.  [PRIORITY NEIGHBORHOODS.] (a) The commissioner 
 52.15  must give priority to applicants who: 
 52.16     (1) beginning in fiscal year 2002, demonstrate a match of 
 52.17  $1 of nonstate funding for every $3 of the grant amount awarded 
 52.18  for implementation of an after-school enrichment program; 
 52.19     (2) beginning in fiscal year 2003, demonstrate a match of 
 52.20  $1 of nonstate funding for each $1 of the grant amount awarded 
 52.21  for the implementation of an after-school enrichment program; 
 52.22  and 
 52.23     (3) establish an accountability system that sets measurable 
 52.24  goals and outcomes that support academic achievement, school 
 52.25  attendance, reduces the number of suspensions, and assesses 
 52.26  participants' progress on these measures annually. 
 52.27     (b) For grants in Minneapolis and St. Paul, the 
 52.28  commissioner must give priority to neighborhoods in this 
 52.29  subdivision.  In Minneapolis, priority neighborhoods are Near 
 52.30  North, Hawthorne, Sumner-Glenwood, Harrison, Jordan, Powderhorn, 
 52.31  Central, Whittier, Cleveland, McKinley, Waite Park, Sheridan, 
 52.32  Holland, Lyndale, Folwell, and Phillips.  In St. Paul, priority 
 52.33  neighborhoods are Summit-University, Thomas-Dale, North End, 
 52.34  Payne-Phalen, Daytons Bluff, and the West Side. 
 52.35     Sec. 16.  Minnesota Statutes 2000, section 124D.221, is 
 52.36  amended by adding a subdivision to read: 
 53.1      Subd. 6.  [PROGRAM COST; REPORT.] Each program that 
 53.2   receives a grant under this section must annually report to the 
 53.3   commissioner information regarding the cost per participant and 
 53.4   cost per contact hour for the program. 
 53.5      Sec. 17.  [APPROPRIATIONS.] 
 53.6      Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
 53.7   LEARNING.] The sums indicated in this section are appropriated 
 53.8   from the general fund to the department of children, families, 
 53.9   and learning for the fiscal years designated. 
 53.10     Subd. 2.  [FAMILY COLLABORATIVES.] For family 
 53.11  collaboratives according to Laws 1995, First Special Session 
 53.12  chapter 3, article 4, section 29, subdivision 10, as amended by 
 53.13  Laws 1996, chapter 412, article 4, section 27: 
 53.14       $1,477,000     .....     2002
 53.15       $  863,000     .....     2003
 53.16     No new family services collaboratives shall be funded with 
 53.17  this appropriation. 
 53.18     Any balance in the first year does not cancel but is 
 53.19  available in the second year. 
 53.20     Subd. 3.  [COMMUNITY EDUCATION AID.] For community 
 53.21  education aid according to Minnesota Statutes, section 124D.20: 
 53.22       $16,459,000    .....     2002
 53.23       $15,611,000    .....     2003
 53.24     The 2002 appropriation includes $1,528,000 for 2001 and 
 53.25  $14,931,000 for 2002.  
 53.26     The 2003 appropriation includes $1,659,000 for 2002 and 
 53.27  $13,952,000 for 2003.  
 53.28     Of this appropriation, $250,000 must be set aside each year 
 53.29  for the guard our youth program sponsored by the department of 
 53.30  military affairs to serve at-risk and underserved youth ages 
 53.31  nine to 16 years. 
 53.32     Any balance in the first year does not cancel but is 
 53.33  available in the second year. 
 53.34     Subd. 4.  [ADULTS WITH DISABILITIES PROGRAM AID.] For 
 53.35  adults with disabilities programs according to Minnesota 
 53.36  Statutes, section 124D.56: 
 54.1        $710,000       .....     2002 
 54.2        $710,000       .....     2003 
 54.3      Any balance in the first year does not cancel but is 
 54.4   available in the second year. 
 54.5      Subd. 5.  [HEARING-IMPAIRED ADULTS.] For programs for 
 54.6   hearing-impaired adults according to Minnesota Statutes, section 
 54.7   124D.57: 
 54.8        $70,000        .....     2002
 54.9        $70,000        .....     2003
 54.10     Any balance in the first year does not cancel but is 
 54.11  available in the second year. 
 54.12     Subd. 6.  [VIOLENCE PREVENTION EDUCATION GRANTS.] For 
 54.13  violence prevention education grants according to Minnesota 
 54.14  Statutes, section 120B.23: 
 54.15       $1,450,000     .....     2002
 54.16       $1,450,000     .....     2003
 54.17     Any balance in the first year does not cancel but is 
 54.18  available in the second year. 
 54.19     Subd. 7.  [ABUSED CHILDREN.] For abused children programs 
 54.20  according to Minnesota Statutes, section 119A.21: 
 54.21       $945,000       .....     2002 
 54.22       $945,000       .....     2003 
 54.23     Any balance in the first year does not cancel but is 
 54.24  available in the second year. 
 54.25     Subd. 8.  [CHILDREN'S TRUST FUND.] For children's trust 
 54.26  fund according to Minnesota Statutes, sections 119A.12 and 
 54.27  119A.13: 
 54.28       $875,000       .....     2002
 54.29       $875,000       .....     2003
 54.30     Any balance in the first year does not cancel but is 
 54.31  available in the second year. 
 54.32     Subd. 9.  [FAMILY VISITATION CENTERS.] (a) For family 
 54.33  visitation centers according to Minnesota Statutes, section 
 54.34  119A.37: 
 54.35       $200,000       .....     2002
 54.36       $200,000       .....     2003
 55.1      Any balance in the first year does not cancel but is 
 55.2   available in the second year. 
 55.3      (b) An additional $96,000 in fiscal year 2002 and $96,000 
 55.4   in fiscal year 2003 are appropriated from the special revenue 
 55.5   fund under Minnesota Statutes, section 517.08, subdivision 1c, 
 55.6   for family visitation centers.  Any balance in the first year 
 55.7   does not cancel but is available for the second year. 
 55.8      Subd. 10.  [AFTER-SCHOOL ENRICHMENT GRANTS.] For 
 55.9   after-school enrichment grants according to Minnesota Statutes, 
 55.10  section 124D.221:  
 55.11       $3,010,000     .....     2002
 55.12       $3,010,000     .....     2003
 55.13     Any balance in the first year does not cancel but is 
 55.14  available in the second year. 
 55.15     Subd. 11.  [CHEMICAL ABUSE PREVENTION GRANTS.] (a) For 
 55.16  grants with funds received under Minnesota Statutes, section 
 55.17  171.29, subdivision 2, paragraph (b), clause (4): 
 55.18       $200,000       .....     2002
 55.19       $200,000       .....     2003
 55.20     (b) These appropriations are from the alcohol-impaired 
 55.21  driver account of the special revenue fund for chemical abuse 
 55.22  prevention grants.  
 55.23     (c) $25,000 in each year is for a grant to the city of St. 
 55.24  Louis Park for the Meadowbrook Collaborative Housing Project to 
 55.25  continue cooperative activities that support at-risk children 
 55.26  and youth programming and to provide advice to the after-school 
 55.27  substance abuse prevention program and other grantees that seek 
 55.28  to replicate the Meadowbrook Collaborative Housing Project 
 55.29  program model. 
 55.30     (d) $175,000 in each year is to establish an after-school 
 55.31  substance abuse prevention grant program to provide eligible 
 55.32  community and nonprofit organizations with grants of up to 
 55.33  $20,000 per year for after-school substance abuse prevention 
 55.34  programs. 
 55.35     Sec. 18.  [REVISOR INSTRUCTION.] 
 55.36     In the next and subsequent editions of Minnesota Statutes 
 56.1   and Minnesota Rules, the revisor shall renumber Minnesota 
 56.2   Statutes, section 119A.13, subdivision 4, as Minnesota Statutes, 
 56.3   section 119A.12, subdivision 4, and make necessary 
 56.4   cross-reference changes consistent with the renumbering. 
 56.5      Sec. 19.  [REPEALER.] 
 56.6      Minnesota Statutes 2000, sections 119A.13, subdivisions 1, 
 56.7   2, and 3; 119A.14, subdivision 2; 119A.23; 124D.33; and 
 56.8   124D.331, are repealed. 
 56.9                              ARTICLE 3 
 56.10               SELF-SUFFICIENCY AND LIFELONG LEARNING 
 56.11     Section 1.  Minnesota Statutes 2000, section 124D.518, 
 56.12  subdivision 5, is amended to read: 
 56.13     Subd. 5.  [UNREIMBURSED EXPENSES.] "Unreimbursed expenses" 
 56.14  means allowable adult basic education expenses of a program, in 
 56.15  the current program year, that are not covered by payments from 
 56.16  federal or private for-profit sources. 
 56.17     Sec. 2.  Minnesota Statutes 2000, section 124D.52, 
 56.18  subdivision 2, is amended to read: 
 56.19     Subd. 2.  [PROGRAM APPROVAL.] (a) To receive aid under this 
 56.20  section, a district, a consortium of districts, the department 
 56.21  of corrections, or a private nonprofit organization must submit 
 56.22  an application by June 1 describing the program, on a form 
 56.23  provided by the department.  The program must be approved by the 
 56.24  commissioner according to the following criteria:  
 56.25     (1) how the needs of different levels of learning will be 
 56.26  met; 
 56.27     (2) for continuing programs, an evaluation of results; 
 56.28     (3) anticipated number and education level of participants; 
 56.29     (4) coordination with other resources and services; 
 56.30     (5) participation in a consortium, if any, and money 
 56.31  available from other participants; 
 56.32     (6) management and program design; 
 56.33     (7) volunteer training and use of volunteers; 
 56.34     (8) staff development services; 
 56.35     (9) program sites and schedules; 
 56.36     (10) program expenditures that qualify for aid; 
 57.1      (11) program ability to provide data related to learner 
 57.2   outcomes as required by law; and 
 57.3      (12) a copy of the memorandum of understanding described in 
 57.4   subdivision 1 submitted to the commissioner.  
 57.5      (b) Adult basic education programs may be approved under 
 57.6   this subdivision for up to five years.  Five-year program 
 57.7   approval must be granted to an applicant who has demonstrated 
 57.8   the capacity to: 
 57.9      (1) offer comprehensive learning opportunities and support 
 57.10  service choices appropriate for and accessible to adults at all 
 57.11  basic skill need levels; 
 57.12     (2) provide a participatory and experiential learning 
 57.13  approach based on the strengths, interests, and needs of each 
 57.14  adult, that enables adults with basic skill needs to: 
 57.15     (i) identify, plan for, and evaluate their own progress 
 57.16  toward achieving their defined educational and occupational 
 57.17  goals; 
 57.18     (ii) master the basic academic reading, writing, and 
 57.19  computational skills, as well as the problem-solving, decision 
 57.20  making, interpersonal effectiveness, and other life and learning 
 57.21  skills they need to function effectively in a changing society; 
 57.22     (iii) locate and be able to use the health, governmental, 
 57.23  and social services and resources they need to improve their own 
 57.24  and their families' lives; and 
 57.25     (iv) continue their education, if they desire, to at least 
 57.26  the level of secondary school completion, with the ability to 
 57.27  secure and benefit from continuing education that will enable 
 57.28  them to become more employable, productive, and responsible 
 57.29  citizens; 
 57.30     (3) plan, coordinate, and develop cooperative agreements 
 57.31  with community resources to address the needs that the adults 
 57.32  have for support services, such as transportation, flexible 
 57.33  course scheduling, convenient class locations, and child care; 
 57.34     (4) collaborate with business, industry, labor unions, and 
 57.35  employment-training agencies, as well as with family and 
 57.36  occupational education providers, to arrange for resources and 
 58.1   services through which adults can attain economic 
 58.2   self-sufficiency; 
 58.3      (5) provide sensitive and well trained adult education 
 58.4   personnel who participate in local, regional, and statewide 
 58.5   adult basic education staff development events to master 
 58.6   effective adult learning and teaching techniques; 
 58.7      (6) participate in regional adult basic education peer 
 58.8   program reviews and evaluations; 
 58.9      (7) submit accurate and timely performance and fiscal 
 58.10  reports; 
 58.11     (8) submit accurate and timely reports related to program 
 58.12  outcomes and learner follow-up information; and 
 58.13     (9) spend adult basic education aid on adult basic 
 58.14  education purposes only, which are specified in sections 
 58.15  124D.518 to 124D.531.  
 58.16     (c) The commissioner shall require each district to provide 
 58.17  notification by February 1, 2001, of its intent to apply for 
 58.18  funds under this section as a single district or as part of an 
 58.19  identified consortium of districts.  A district receiving funds 
 58.20  under this section must notify the commissioner by February 1 of 
 58.21  its intent to change its application status for applications due 
 58.22  the following June 1. 
 58.23     Sec. 3.  Minnesota Statutes 2000, section 124D.522, is 
 58.24  amended to read: 
 58.25     124D.522 [ADULT BASIC EDUCATION SUPPLEMENTAL SERVICE 
 58.26  GRANTS.] 
 58.27     (a) The commissioner, in consultation with the policy 
 58.28  review task force under section 124D.521, may make grants to 
 58.29  nonprofit organizations to provide services that are not offered 
 58.30  by a district adult basic education program or that are 
 58.31  supplemental to either the statewide adult basic education 
 58.32  program, or a district's adult basic education program.  The 
 58.33  commissioner may make grants for:  staff development for adult 
 58.34  basic education teachers and administrators; training for 
 58.35  volunteer tutors; training, services, and materials for serving 
 58.36  disabled students through adult basic education programs; 
 59.1   statewide promotion of adult basic education services and 
 59.2   programs; development and dissemination of instructional and 
 59.3   administrative technology for adult basic education programs; 
 59.4   programs which primarily serve communities of color; adult basic 
 59.5   education distance learning projects, including television 
 59.6   instruction programs; and other supplemental services to support 
 59.7   the mission of adult basic education and innovative delivery of 
 59.8   adult basic education services.  
 59.9      (b) The commissioner must establish eligibility criteria 
 59.10  and grant application procedures.  Grants under this section 
 59.11  must support services throughout the state, focus on educational 
 59.12  results for adult learners, and promote outcome-based 
 59.13  achievement through adult basic education programs.  Beginning 
 59.14  in fiscal year 2002, the commissioner may make grants under this 
 59.15  section from funds specifically appropriated the state total 
 59.16  adult basic education aid set aside for supplemental service 
 59.17  grants under section 124D.531.  Up to one-third one-fourth of 
 59.18  the appropriation for supplemental service grants must be used 
 59.19  for grants for adult basic education programs to encourage and 
 59.20  support innovations in adult basic education instruction and 
 59.21  service delivery.  A grant to a single organization cannot 
 59.22  exceed $100,000.  Nothing in this section prevents an approved 
 59.23  adult basic education program from using state or federal aid to 
 59.24  purchase supplemental services. 
 59.25     Sec. 4.  Minnesota Statutes 2000, section 124D.531, 
 59.26  subdivision 1, is amended to read: 
 59.27     Subdivision 1.  [STATE TOTAL ADULT BASIC EDUCATION AID.] 
 59.28  (a) The state total adult basic education aid for fiscal year 
 59.29  2001 equals $30,157,000.  The state total adult basic education 
 59.30  aid for later years equals: 
 59.31     (1) the state total adult basic education aid for the 
 59.32  preceding fiscal year; times 
 59.33     (2) the lesser of: 
 59.34     (i) 1.08, or 
 59.35     (ii) the greater of 1.00 or the ratio of the state total 
 59.36  contact hours in the first prior program year to the state total 
 60.1   contact hours in the second prior program year.  Beginning in 
 60.2   fiscal year 2002, two percent of the state total adult basic 
 60.3   education aid must be set aside for adult basic education 
 60.4   supplemental service grants under section 124D.522.  
 60.5      (b) The state total adult basic education aid, excluding 
 60.6   basic population aid, equals the difference between the amount 
 60.7   computed in paragraph (a), and the state total basic population 
 60.8   aid under subdivision 2. 
 60.9      Sec. 5.  Minnesota Statutes 2000, section 124D.531, 
 60.10  subdivision 3, is amended to read: 
 60.11     Subd. 3.  [PROGRAM REVENUE.] Adult basic education programs 
 60.12  established under section 124D.52 and approved by the 
 60.13  commissioner are eligible for revenue under this subdivision.  
 60.14  For fiscal year 2001 and later, adult basic education revenue 
 60.15  for each approved program equals the sum of: 
 60.16     (1) the basic population aid under subdivision 2 for 
 60.17  districts participating in the program during the current 
 60.18  program year; plus 
 60.19     (2) 84 percent times the amount computed in subdivision 1, 
 60.20  paragraph (b), times the ratio of the contact hours for students 
 60.21  participating in the program during the first prior program year 
 60.22  to the state total contact hours during the first prior program 
 60.23  year; plus 
 60.24     (3) eight percent times the amount computed in subdivision 
 60.25  1, paragraph (b), times the ratio of the enrollment of students 
 60.26  with limited English proficiency during the second prior school 
 60.27  year in districts participating in the program during the 
 60.28  current program year to the state total enrollment of students 
 60.29  with limited English proficiency during the second prior school 
 60.30  year in districts participating in adult basic education 
 60.31  programs during the current program year; plus 
 60.32     (4) eight percent times the amount computed in subdivision 
 60.33  1, paragraph (b), times the ratio of the latest federal census 
 60.34  count of the number of adults aged 20 or older with no diploma 
 60.35  residing in the districts participating in the program during 
 60.36  the current program year to the latest federal census count of 
 61.1   the state total number of adults aged 20 or older with no 
 61.2   diploma residing in the districts participating in adult basic 
 61.3   education programs during the current program year. 
 61.4      Sec. 6.  Minnesota Statutes 2000, section 124D.531, 
 61.5   subdivision 7, is amended to read: 
 61.6      Subd. 7.  [PROGRAM AUDITS.] Programs that receive aid under 
 61.7   this section must maintain records that support the aid 
 61.8   payments.  The commissioner may audit these records upon 
 61.9   request.  The commissioner must establish procedures for 
 61.10  conducting fiscal audits of adult basic education programs 
 61.11  according to the schedule in this subdivision.  In calendar year 
 61.12  2002, the commissioner must audit one-half of approved adult 
 61.13  basic education programs that received aid for fiscal year 2001, 
 61.14  and in calendar year 2003, the commissioner must audit the 
 61.15  remaining unaudited programs for aid received in fiscal year 
 61.16  2002.  Beginning with fiscal year 2004 2003, the commissioner 
 61.17  must, at a minimum, audit each adult basic education program 
 61.18  once every five years.  The commissioner must establish 
 61.19  procedures to reconcile any discrepancies between aid payments 
 61.20  based on information reported to the commissioner and aid 
 61.21  estimates based on a program audit. 
 61.22     Sec. 7.  [ADULT BASIC EDUCATION POLICY TASK FORCE.] 
 61.23     The adult basic education policy task force, under Laws 
 61.24  2000, chapter 489, article 1, section 42, must recommend to the 
 61.25  legislative finance committees with responsibility for adult 
 61.26  basic education an equitable funding formula for nondistrict 
 61.27  programs based on an evaluation of costs and revenues.  The task 
 61.28  force must report to the legislature by February 1, 2002. 
 61.29     Sec. 8.  [DIRECTION TO COMMISSIONER.] 
 61.30     The commissioner of children, families, and learning must 
 61.31  hire an additional permanent full-time staff person to oversee 
 61.32  the state adult basic education program.  The duties of the 
 61.33  state adult basic education coordinator include, but are not 
 61.34  limited to: 
 61.35     (1) oversight of the supplemental service grants; 
 61.36     (2) oversight of the adult basic education program audits; 
 62.1      (3) coordination of the adult basic education policy task 
 62.2   force; 
 62.3      (4) working with adult basic education directors around the 
 62.4   state; and 
 62.5      (5) providing information to the legislative finance 
 62.6   committees that oversee the adult basic education program.  
 62.7      Sec. 9.  [APPROPRIATIONS.] 
 62.8      Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
 62.9   LEARNING.] The sums indicated in this section are appropriated 
 62.10  from the general fund to the department of children, families, 
 62.11  and learning for the fiscal years designated. 
 62.12     Subd. 2.  [MINNESOTA ECONOMIC OPPORTUNITY GRANTS.] For 
 62.13  Minnesota economic opportunity grants, sections 119A.374 to 
 62.14  119A.376: 
 62.15       $8,514,000     .....     2002
 62.16       $8,514,000     .....     2003
 62.17     Any balance in the first year does not cancel but is 
 62.18  available in the second year. 
 62.19     Subd. 3.  [TRANSITIONAL HOUSING PROGRAMS.] For transitional 
 62.20  housing programs according to Minnesota Statutes, section 
 62.21  119A.43: 
 62.22       $1,988,000     .....     2002
 62.23       $1,988,000     .....     2003
 62.24     Any balance in the first year does not cancel but is 
 62.25  available in the second year. 
 62.26     Subd. 4.  [EMERGENCY SERVICES.] For emergency services 
 62.27  according to Minnesota Statutes, section 119A.43: 
 62.28       $600,000       .....     2002
 62.29       $409,000       .....     2003
 62.30     Of this appropriation, $250,000 in fiscal year 2002 and 
 62.31  $59,000 in 2003 is one time funding to support emergency shelter 
 62.32  activities and is not to be added to the base for 2004 and 2005. 
 62.33     Any balance in the first year does not cancel but is 
 62.34  available in the second year. 
 62.35     Subd. 5.  [ADULT BASIC EDUCATION AID.] For adult basic 
 62.36  education aid according to Minnesota Statutes, section 124D.531: 
 63.1        $32,150,000    .....     2002 
 63.2        $34,732,000    .....     2003
 63.3      The 2002 appropriation includes $3,019,000 for 2001 and 
 63.4   $29,131,000 for 2002.  
 63.5      The 2003 appropriation includes $3,237,000 for 2002 and 
 63.6   $31,494,000 for 2003.  
 63.7      Subd. 6.  [ADULT BASIC EDUCATION AUDITS; STATE 
 63.8   COORDINATOR.] 
 63.9      For adult basic education audits under Minnesota Statutes, 
 63.10  section 124D.531 and for a state adult basic education 
 63.11  coordinator: 
 63.12       $145,000       .....     2002 
 63.13       $145,000       .....     2003 
 63.14     Of this appropriation, $70,000 in each fiscal year must be 
 63.15  used for adult basic education audits and $75,000 must be used 
 63.16  to hire an additional permanent, full-time state adult basic 
 63.17  education coordinator.  Any balance in the first year does not 
 63.18  cancel but is available in the second year. 
 63.19     Subd. 7.  [ADULT GRADUATION AID.] For adult graduation aid 
 63.20  according to Minnesota Statutes, section 124D.54: 
 63.21       $3,195,000     .....     2002 
 63.22       $3,356,000     .....     2003 
 63.23     The 2002 appropriation includes $305,000 for 2001 and 
 63.24  $2,890,000 for 2002.  
 63.25     The 2003 appropriation includes $321,000 for 2002 and 
 63.26  $3,035,000 for 2003.  
 63.27     Subd. 8.  [GED TESTS.] For payment of 60 percent of the 
 63.28  costs of GED tests according to Laws 1993, chapter 224, article 
 63.29  4, section 44, subdivision 10: 
 63.30       $125,000       .....     2002
 63.31       $125,000       .....     2003
 63.32     Any balance in the first year does not cancel but is 
 63.33  available in the second year. 
 63.34     Subd. 9.  [FOODSHELF PROGRAM.] For foodshelf programs 
 63.35  according to Minnesota Statutes, section 119A.44: 
 63.36       $1,278,000     .....     2002
 64.1        $1,278,000     .....     2003
 64.2      Any balance in the first year does not cancel but is 
 64.3   available in the second year. 
 64.4      Subd. 10.  [FAMILY ASSETS FOR INDEPENDENCE.] 
 64.5        $500,000       .....     2002
 64.6      Any balance in the first year does not cancel but is 
 64.7   available in the second year. 
 64.8      Subd. 11.  [LEAD ABATEMENT.] For lead abatement according 
 64.9   to Minnesota Statutes, section 119A.46: 
 64.10       $100,000       .....     2002
 64.11       $100,000       .....     2003
 64.12     Any balance in the first year does not cancel but is 
 64.13  available in the second year. 
 64.14     Sec. 10.  [TANF APPROPRIATIONS.] 
 64.15     Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
 64.16  LEARNING.] The sums indicated in this section are appropriated 
 64.17  to the commissioner of children, families, and learning from the 
 64.18  federal Temporary Assistance for Needy Families block grant for 
 64.19  the fiscal years designated.  These amounts are available for 
 64.20  expenditure until June 30, 2003.  Appropriations under this 
 64.21  section are one-time appropriations and are not added to the 
 64.22  base for fiscal years 2004 and 2005. 
 64.23     Subd. 2.  [INTENSIVE ENGLISH AS A SECOND LANGUAGE.] For 
 64.24  intensive English as a second language for eligible MFIP 
 64.25  participants under Laws 2000, chapter 489, article 1, section 39:
 64.26       $1,100,000     .....     2002 
 64.27       $1,100,000     .....     2003 
 64.28     Subd. 3.  [TRANSITIONAL HOUSING.] For reimbursement grants 
 64.29  to transitional housing programs under Minnesota Statutes, 
 64.30  section 119A.43: 
 64.31       $1,900,000     .....     2002 
 64.32       $1,950,000     .....     2003 
 64.33     These appropriations must be used for up to four months of 
 64.34  transitional housing for families with incomes below 200 percent 
 64.35  of the federal poverty guidelines.  Payment must be made to 
 64.36  programs on a reimbursement basis. 
 65.1      Sec. 11.  [REVISOR INSTRUCTION.] 
 65.2      In the next and subsequent editions of Minnesota Statutes 
 65.3   and Minnesota Rules, the revisor must replace all references to 
 65.4   the "Minnesota Foodshelf Association" with "Hunger Solutions." 
 65.5                              ARTICLE 4 
 65.6                              LIBRARIES 
 65.7      Section 1.  Minnesota Statutes 2000, section 125B.20, 
 65.8   subdivision 1, is amended to read: 
 65.9      Subdivision 1.  [ESTABLISHMENT; PURPOSE.] The purpose of 
 65.10  developing a statewide school district telecommunications 
 65.11  network is to expand the availability of a broad range of 
 65.12  courses and degrees to students throughout the state, to share 
 65.13  information resources to improve access, quality, and 
 65.14  efficiency, to improve learning, and distance cooperative 
 65.15  learning opportunities, and to promote the exchange of ideas 
 65.16  among students, parents, teachers, media generalists, 
 65.17  librarians, and the public.  In addition, through the 
 65.18  development of this statewide telecommunications network 
 65.19  emphasizing cost-effective, competitive connections, all 
 65.20  Minnesotans will benefit by enhancing access to 
 65.21  telecommunications technology throughout the state.  Network 
 65.22  connections for school districts and public libraries are 
 65.23  coordinated and fully integrated into the existing state 
 65.24  telecommunications and interactive television networks to 
 65.25  achieve comprehensive and efficient interconnectivity of school 
 65.26  districts and libraries to higher education institutions, state 
 65.27  agencies, other governmental units, agencies, and institutions 
 65.28  throughout Minnesota.  A school district may apply to the 
 65.29  commissioner for a grant under subdivision 2, and a regional 
 65.30  public library may apply under subdivision 3.  The Minnesota 
 65.31  education telecommunications council established in Laws 1995, 
 65.32  First Special Session chapter 3, article 12, section 7, shall 
 65.33  establish priorities for awarding grants, making grant awards, 
 65.34  and being responsible for the coordination of networks. 
 65.35     Sec. 2.  Minnesota Statutes 2000, section 134.31, 
 65.36  subdivision 5, is amended to read: 
 66.1      Subd. 5.  [ADVISORY COMMITTEE.] The commissioner shall 
 66.2   appoint an advisory committee of five members to advise the 
 66.3   staff of the Minnesota library for the blind and physically 
 66.4   handicapped on long-range plans and library services.  Members 
 66.5   shall be people who use the library.  Section 15.059 governs 
 66.6   this committee except that the committee shall expire on June 
 66.7   30, 2001 2005. 
 66.8      Sec. 3.  [134.47] [REGIONAL LIBRARY TELECOMMUNICATIONS 
 66.9   AID.] 
 66.10     Subdivision 1.  [ELIGIBILITY.] (a) A regional public 
 66.11  library system may apply for regional library telecommunications 
 66.12  aid.  The aid must be used for data and video access costs and 
 66.13  other related costs to improve or maintain electronic access and 
 66.14  connect the library system with the state information 
 66.15  infrastructure administered by the department of administration 
 66.16  under section 16B.465.  Priority shall be given to public 
 66.17  libraries that have not received access.  To be eligible, a 
 66.18  regional public library system must be officially designated by 
 66.19  the commissioner of children, families, and learning as a 
 66.20  regional public library system as defined in section 134.34, 
 66.21  subdivision 3, and each of its participating cities and counties 
 66.22  must meet local support levels defined in section 134.34, 
 66.23  subdivision 1.  A public library building that receives aid 
 66.24  under this section must be open a minimum of 20 hours per week. 
 66.25     (b) Aid received under this section may not be used to 
 66.26  substitute for any existing local funds allocated to provide 
 66.27  electronic access, equipment for library staff or the public, or 
 66.28  local funds dedicated to other library operations. 
 66.29     (c) An application for regional library telecommunications 
 66.30  aid must, at a minimum, contain information to document the 
 66.31  following: 
 66.32     (1) that the data line or video link relies on a transport 
 66.33  medium that operates at a minimum speed of 1.544 megabytes per 
 66.34  second for each regional public library system headquarters or a 
 66.35  minimum of 64 kilobits per second for each public library 
 66.36  building and employs an open network architecture that will 
 67.1   ensure interconnectivity and interoperability with school 
 67.2   districts, post-secondary education, or other governmental 
 67.3   agencies; 
 67.4      (2) that the connection is established through the most 
 67.5   cost-effective means and that the regional library has explored 
 67.6   and coordinated connections through school districts, 
 67.7   post-secondary education, or other governmental agencies; 
 67.8      (3) the regional library system has filed an e-rate 
 67.9   application; and 
 67.10     (4) other information, as determined by the commissioner of 
 67.11  children, families, and learning, to ensure that connections are 
 67.12  coordinated, efficient, and cost-effective; take advantage of 
 67.13  discounts; and meet applicable state standards. 
 67.14     The library system may include costs associated with 
 67.15  cooperative arrangements with post-secondary institutions, 
 67.16  school districts, and other governmental agencies. 
 67.17     Subd. 2.  [AWARD OF FUNDS.] The commissioner of children, 
 67.18  families, and learning shall develop application and reporting 
 67.19  forms and procedures for regional library telecommunications 
 67.20  aid.  Aid shall be based on actual costs of connections and 
 67.21  funds available for this purpose.  The commissioner shall make 
 67.22  payments directly to the regional public library system. 
 67.23     Sec. 4.  [APPROPRIATIONS.] 
 67.24     Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
 67.25  LEARNING.] The sums indicated in this section are appropriated 
 67.26  from the general fund to the department of children, families, 
 67.27  and learning for the fiscal years designated.  
 67.28     Subd. 2.  [BASIC SUPPORT GRANTS.] For basic support grants 
 67.29  according to Minnesota Statutes, sections 134.32 to 134.35: 
 67.30       $8,570,000     .....     2002 
 67.31       $8,570,000     .....     2003 
 67.32     The 2002 appropriation includes $857,000 for 2001 and 
 67.33  $7,713,000 for 2002. 
 67.34     The 2003 appropriation includes $857,000 for 2002 and 
 67.35  $7,713,000 for 2003. 
 67.36     Subd. 3.  [STATE AGENCY LIBRARIES.] For maintaining and 
 68.1   upgrading the online computer-based library catalog system in 
 68.2   state agency libraries: 
 68.3        $120,000       .....     2002 
 68.4        $120,000       .....     2003 
 68.5      This is a one-time appropriation and is not to be added to 
 68.6   the base for 2004 and 2005. 
 68.7      This appropriation is in addition to funding provided in 
 68.8   the K-12 education finance omnibus bill for the administrative 
 68.9   budget of the department of children, families, and learning.  
 68.10     Any balance in the first year does not cancel but is 
 68.11  available in the second year.  
 68.12     Subd. 4.  [MULTICOUNTY, MULTITYPE LIBRARY SYSTEMS.] For 
 68.13  grants according to Minnesota Statutes, sections 134.353 and 
 68.14  134.354, to multicounty, multitype library systems: 
 68.15       $903,000       .....     2002 
 68.16       $903,000       .....     2003 
 68.17     The 2002 appropriation includes $90,000 for 2001 and 
 68.18  $813,000 for 2002. 
 68.19     The 2003 appropriation includes $90,000 for 2002 and 
 68.20  $813,000 for 2003. 
 68.21     Any balance in the first year does not cancel but is 
 68.22  available in the second year. 
 68.23     Subd. 5.  [REGIONAL LIBRARY TELECOMMUNICATIONS AID.] For 
 68.24  aid to regional public library systems under Minnesota Statutes, 
 68.25  section 134.47: 
 68.26       $2,000,000     .....     2002 
 68.27       $2,000,000     .....     2003 
 68.28     The general fund base for fiscal years 2004 and 2005 is 
 68.29  $2,000,000 in each year. 
 68.30     Any balance in the first year does not cancel but is 
 68.31  available in the second year. 
 68.32     Sec. 5.  [REPEALER.] 
 68.33     (a) Minnesota Statutes 2000, section 125B.20, subdivision 
 68.34  3, is repealed. 
 68.35     (b) Minnesota Rules, parts 3530.2610; 3530.2612; 3530.2614; 
 68.36  3530.2616; 3530.2618; 3530.2620; 3530.2622; 3530.2624; 
 69.1   3530.2626; 3530.2628; 3530.2630; 3530.2632; 3530.2634; 
 69.2   3530.2636; 3530.2638; 3530.2640; 3530.2642; and 3530.2644, are 
 69.3   repealed.