1.1                          A bill for an act 
  1.2             relating to education; providing for family and early 
  1.3             childhood education; providing funding formulas and 
  1.4             directing allocation of certain funds; modifying and 
  1.5             consolidating various programs; establishing certain 
  1.6             programs, projects, boards, and committees; requiring 
  1.7             reports; creating a task force and requiring a study; 
  1.8             consolidating certain advisory councils; making 
  1.9             various clarifying and technical changes; 
  1.10            appropriating money; amending Minnesota Statutes 2000, 
  1.11            sections 119A.05; 119A.12, by adding subdivisions; 
  1.12            119A.13, subdivision 4; 119A.21; 119A.22; 119A.52; 
  1.13            119B.011, subdivisions 7, 19, by adding subdivisions; 
  1.14            119B.02, subdivisions 1, 2; 119B.03, subdivisions 3, 
  1.15            9, 10, by adding a subdivision; 119B.05, subdivision 
  1.16            5; 119B.061, subdivisions 1, 4; 119B.08; 119B.09, 
  1.17            subdivisions 1, 2, 7; 119B.10; 119B.11, subdivision 1; 
  1.18            119B.12, subdivision 2; 119B.13, subdivisions 1, 6; 
  1.19            119B.15; 119B.24; 121A.16; 121A.17, subdivisions 1, 3, 
  1.20            4, 5; 121A.19; 124D.13, subdivisions 8, 9, by adding 
  1.21            subdivisions; 124D.135, subdivisions 1, 3, 7, by 
  1.22            adding a subdivision; 124D.15; 124D.16; 124D.221, 
  1.23            subdivisions 1, 2; 124D.52, subdivision 2; 124D.522; 
  1.24            124D.531, subdivisions 1, 3; proposing coding for new 
  1.25            law in Minnesota Statutes, chapters 119A; 119B; 
  1.26            repealing Minnesota Statutes 2000, sections 119A.13, 
  1.27            subdivisions 1, 2, 3; 119A.14, subdivision 2; 119A.23; 
  1.28            119B.011, subdivision 20; 119B.03, subdivisions 1, 2, 
  1.29            4, 5, 6, 6a, 8; 119B.05, subdivision 1; 119B.07; 
  1.30            119B.09, subdivision 3; 119B.11, subdivision 4; 
  1.31            124D.33; 124D.331. 
  1.32  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.33                             ARTICLE 1
  1.34                      EARLY CHILDHOOD PROGRAMS
  1.35     Section 1.  Minnesota Statutes 2000, section 119A.05, is 
  1.36  amended to read: 
  1.37     119A.05 [FUNDING CONSOLIDATION.] 
  1.38     Subdivision 1.  [AUTHORITY FOR FUNDING CONSOLIDATION AND 
  2.1   INTEGRATION.] (a) Notwithstanding existing law governing 
  2.2   allocation of funds by local grantees, mode of service delivery, 
  2.3   grantee planning and reporting requirements, and other 
  2.4   procedural requirements for the grant programs identified in 
  2.5   this section, a local grantee may elect to consolidate all or a 
  2.6   portion of funding received from the programs under subdivision 
  2.7   5 in a collaboration funding plan, if all conditions specified 
  2.8   in this section are satisfied.  County boards, school boards, or 
  2.9   governing boards of other grantees may elect not to consolidate 
  2.10  funding for a program.  
  2.11     (b) Funding for services provided to a community under 
  2.12  sections 119A.52, 119B.189 to 119B.26, 124D.13, and 124D.15 must 
  2.13  be determined according to the funding formulas and distributed 
  2.14  as identified in applicable program laws and rules.  
  2.15  Notwithstanding existing law governing allocation of funds to 
  2.16  local programs, mode of service delivery, program planning, 
  2.17  traditional geographic boundaries, and other procedural 
  2.18  requirements for early childhood care and education programs 
  2.19  under the jurisdiction of the commissioner, a community early 
  2.20  childhood council may elect to integrate all or a portion of 
  2.21  funding available through these programs under an integrated 
  2.22  funding and service plan, if all requirements under this section 
  2.23  are met. 
  2.24     (c) For grantees electing consolidation or integration, the 
  2.25  commissioner may, with the approval of the board of government 
  2.26  innovation and cooperation, waive all provisions of rules 
  2.27  inconsistent with the intent of this section.  This waiver 
  2.28  authority does not apply to rules governing client protections, 
  2.29  due process, or inclusion of clients, parents, cultures, and 
  2.30  ethnicities in decision making.  Funding to a local grantee must 
  2.31  be determined according to the funding formulas or allocation 
  2.32  rules governing the individual programs listed in section 
  2.33  119A.04.  
  2.34     (d) For communities consolidating or integrating funds 
  2.35  under paragraph (b), the commissioner shall provide technical 
  2.36  assistance to a community or planning group to aid in 
  3.1   development of an early childhood care and education plan that 
  3.2   describes strategies to be used to target resources to children 
  3.3   at risk and support achievement of positive outcomes for all 
  3.4   children and families in the community and the method or methods 
  3.5   used to evaluate performance under the community plan. 
  3.6      Subd. 2.  [ACCOUNT.] A consolidated funding account is 
  3.7   established under the control of the commissioner of children, 
  3.8   families, and learning for funds consolidated under subdivision 
  3.9   1, paragraph (a).  The purpose of this account is to clearly 
  3.10  identify and provide accountability for funds previously 
  3.11  distributed to local grantees through the individual categorical 
  3.12  grant programs in subdivision 5.  By direction of the 
  3.13  commissioner, after consultation with the partnership planning 
  3.14  team and, upon a finding that the conditions specified in this 
  3.15  section have been satisfied, funds must be transmitted to this 
  3.16  account and allocated to local grantees by the commissioner. 
  3.17     Subd. 3.  [ELIGIBILITY; ACCOUNTABILITY.] (a) To be eligible 
  3.18  to receive funding for local consolidation, as provided for in 
  3.19  this section subdivision 1, paragraph (a), a grantee must meet 
  3.20  the following requirements:  
  3.21     (1) demonstrate participation by counties and schools in a 
  3.22  local collaborative process as defined in section 124D.23 or in 
  3.23  a similar process of collaboration with other local governments 
  3.24  and community organizations which satisfies the governance and 
  3.25  planning guidelines published by the commissioner as provided 
  3.26  for in this section; 
  3.27     (2) document consultation by counties and schools with 
  3.28  community action agencies and other community groups; 
  3.29     (3) complete and document, according to guidelines 
  3.30  published by the commissioner, a collaborative planning process 
  3.31  which clearly identifies:  
  3.32     (i) allocation of resources in the collaboration annual 
  3.33  funding plan; 
  3.34     (ii) a description of the governance structure for the 
  3.35  execution of the funding plan; 
  3.36     (iii) outcomes consistent with the statewide goals 
  4.1   identified in this chapter and in statutes governing previous 
  4.2   categorical funding included in the collaboration funding plan; 
  4.3   and 
  4.4      (iv) indicators sufficient to measure improvement or 
  4.5   decline in specified outcomes compared to baseline performance; 
  4.6      (4) conduct a public hearing on the funding consolidation 
  4.7   plan under chapter 13D; 
  4.8      (5) agree to periodically report information concerning 
  4.9   progress in addressing outcomes, as provided for in guidelines 
  4.10  to be published by the commissioner; and 
  4.11     (6) execute a written agreement between the commissioner 
  4.12  and the local grantees setting forth responsibilities, 
  4.13  obligations, and conditions consistent with this section.  The 
  4.14  agreement must state that the funds that are being locally 
  4.15  consolidated will be used collectively only to achieve the 
  4.16  objectives of the separate programs being locally consolidated.  
  4.17     (b) To be eligible to receive funding for local 
  4.18  integration, as provided for in subdivision 1, paragraph (b), a 
  4.19  grantee must meet the following requirements: 
  4.20     (1) submit to the commissioner a comprehensive plan for 
  4.21  integration of early childhood care and education funds and 
  4.22  programs on a communitywide basis that identifies: 
  4.23     (i) allocation of resources in the annual early childhood 
  4.24  integrated funding plan; 
  4.25     (ii) a description of the governance structure for the 
  4.26  execution of the funding plan; 
  4.27     (iii) outcomes consistent with the statewide goals 
  4.28  identified in this chapter and in statutes governing previous 
  4.29  categorical funding included in the early childhood integrated 
  4.30  funding plan; and 
  4.31     (iv) indicators sufficient to measure improvement or 
  4.32  decline in specified outcomes compared to baseline performance; 
  4.33     (2) demonstrate participation and agreement on the plan by 
  4.34  counties, schools, child care providers, Early Childhood Family 
  4.35  Education (ECFE), Head Start, and other school or 
  4.36  community-based early childhood care and education programs in a 
  5.1   local collaborative process as defined in section 124D.23 or in 
  5.2   a similar process of collaboration with other local governments 
  5.3   and community organizations that satisfies the governance and 
  5.4   planning guidelines published by the commissioner as provided 
  5.5   for in this section; 
  5.6      (3) agree to periodically report information concerning 
  5.7   progress in addressing outcomes, as provided for in guidelines 
  5.8   to be published by the commissioner; and 
  5.9      (4) execute a written agreement between the commissioner 
  5.10  and the local grantees setting forth responsibilities, 
  5.11  obligations, and conditions consistent with this section.  The 
  5.12  agreement must state that the funds that are being locally 
  5.13  integrated will be used collectively only to achieve the 
  5.14  objectives of the separate programs being locally integrated. 
  5.15     Subd. 4.  [GEOGRAPHIC AREA.] (a) The geographic area for a 
  5.16  local consolidated funding process under subdivision 1, 
  5.17  paragraph (a), must be an entire county, a multicounty area, or, 
  5.18  with the approval of the county board and commissioner, a 
  5.19  subcounty area, if county funds are used.  The process may 
  5.20  provide for coordination of service delivery in jurisdictions 
  5.21  that extend across county boundaries. 
  5.22     (b) The geographic area for a local early childhood 
  5.23  integrated funding process under subdivision 1, paragraph (b), 
  5.24  may be an entire county, school district, group of school 
  5.25  districts, or political subdivision or combination.  The process 
  5.26  may provide for coordination of service delivery in 
  5.27  jurisdictions that extend across county boundaries. 
  5.28     Subd. 5.  [PROGRAMS INCLUDED.] Grant programs transferred 
  5.29  to the department of children, families, and learning in section 
  5.30  119A.04 and programs transferred from the abolished department 
  5.31  of education are eligible for local funding consolidation under 
  5.32  subdivision 1, paragraph (a).  Eligibility of any federally 
  5.33  funded programs for local funding consolidation is conditioned 
  5.34  upon obtaining necessary federal waivers or changes in federal 
  5.35  law. 
  5.36     Subd. 6.  [ENTRY INTO PROGRAM.] Grantees who meet all 
  6.1   requirements of this section may elect to begin using funding 
  6.2   for a local consolidated or integrated funding process beginning 
  6.3   January 1, 1996 2001, or at each six-month interval.  Other 
  6.4   local grantees that meet all requirements of this section may 
  6.5   elect to begin using funding for a local consolidation funding 
  6.6   process beginning July 1, 1996, or at each six-month interval. 
  6.7      Subd. 7.  [SANCTIONS.] If the commissioner finds that a 
  6.8   grantee has failed to comply with this section, the grantee 
  6.9   becomes subject to all requirements of individual grant programs 
  6.10  as specified in statutes and rules. 
  6.11     Sec. 2.  Minnesota Statutes 2000, section 119A.52, is 
  6.12  amended to read: 
  6.13     119A.52 [DISTRIBUTION OF APPROPRIATION.] 
  6.14     (a) The commissioner of children, families, and learning 
  6.15  must distribute money appropriated for that purpose to Head 
  6.16  Start program programs to grantees to expand services and to 
  6.17  serve additional low-income children.  Grantees may use state 
  6.18  funds to provide services to children birth to age five and 
  6.19  their families with incomes up to 120 percent of the federal 
  6.20  poverty guidelines.  Money must be allocated to each project 
  6.21  Head Start grantee in existence on the effective date of Laws 
  6.22  1989, chapter 282.  Migrant and Indian reservation grantees must 
  6.23  be initially allocated money based on the grantees' share of 
  6.24  federal funds.  The remaining money must be initially allocated 
  6.25  to the remaining local agencies based equally on the agencies' 
  6.26  share of federal funds and on the proportion of eligible 
  6.27  children in the agencies' service area who are not currently 
  6.28  being served.  A Head Start grantee must be funded at a per 
  6.29  child rate equal to its contracted, federally funded base level 
  6.30  for program accounts 20, 22, and 25 at the start of the fiscal 
  6.31  year.  In allocating funds under this paragraph, the 
  6.32  commissioner of children, families, and learning must assure 
  6.33  that each Head Start grantee is allocated no less funding in any 
  6.34  fiscal year than was allocated to that grantee in fiscal year 
  6.35  1993 1999.  The commissioner may provide additional funding to 
  6.36  grantees for start-up costs incurred by grantees due to the 
  7.1   increased number of children to be served.  Before paying money 
  7.2   to the grantees, the commissioner must notify each grantee of 
  7.3   its initial allocation, how the money must be used, and the 
  7.4   number of low-income children that must be served with the 
  7.5   allocation.  Each grantee must notify the commissioner of the 
  7.6   number of low-income children it will be able to serve.  For any 
  7.7   grantee that cannot utilize its full allocation, the 
  7.8   commissioner must reduce the allocation proportionately.  Money 
  7.9   available after the initial allocations are reduced must be 
  7.10  redistributed to eligible grantees. 
  7.11     (b) Up to 11 percent of the funds appropriated annually may 
  7.12  be used to provide grants to local Head Start agencies to 
  7.13  provide funds for innovative programs designed either to target 
  7.14  Head Start resources to particular at-risk groups of children or 
  7.15  to provide services in addition to those currently allowable 
  7.16  under federal Head Start regulations.  The commissioner must 
  7.17  award funds for innovative programs under this paragraph on a 
  7.18  competitive basis. 
  7.19     (c) To be eligible for state funds under this section, each 
  7.20  existing grantee or applicant must present a work plan to the 
  7.21  commissioner for approval.  The work plan must include the 
  7.22  estimated number of low-income children and families to be 
  7.23  served, a description of the program design and service delivery 
  7.24  areas which meets the needs of and encourages access by 
  7.25  low-income working families, a program design that ensures fair 
  7.26  and equitable access to services that meet Head Start 
  7.27  regulations and program performance standards for all 
  7.28  populations in the service area, and a plan for coordinating 
  7.29  services to maximize assistance for child care costs available 
  7.30  to families under chapter 119B.  In addition, the work plan must 
  7.31  assure coordinated service delivery with other early childhood 
  7.32  care and education services. 
  7.33     Sec. 3.  Minnesota Statutes 2000, section 119B.011, 
  7.34  subdivision 7, is amended to read: 
  7.35     Subd. 7.  [CHILD CARE SERVICES.] "Child care services" 
  7.36  means child care as defined in subdivision 5, provided in family 
  8.1   day care homes, group day care homes, nursery schools, day 
  8.2   nurseries, child day care centers, head start, and extended day 
  8.3   school age child care programs in or out of the child's home. 
  8.4      Sec. 4.  Minnesota Statutes 2000, section 119B.011, 
  8.5   subdivision 19, is amended to read: 
  8.6      Subd. 19.  [PROVIDER.] "Provider" means a child care 
  8.7   license holder who operates a family child care home, a group 
  8.8   family child care home, a child care center, a nursery school, a 
  8.9   day nursery, a school age care program; a license-exempt school 
  8.10  age care program operating under the auspices of a local school 
  8.11  board or a park or recreation board of a city of the first class 
  8.12  that has adopted school age care guidelines which meet or exceed 
  8.13  guidelines recommended by the department, or a nonlicensed an 
  8.14  individual or child care center or facility either licensed or 
  8.15  unlicensed providing legal child care services as defined under 
  8.16  section 245A.03.  A legally unlicensed registered family child 
  8.17  care provider who is must be at least 18 years of age, and who 
  8.18  is not a member of the MFIP assistance unit or a member of the 
  8.19  family receiving child care assistance under this chapter.  
  8.20     Sec. 5.  Minnesota Statutes 2000, section 119B.011, is 
  8.21  amended by adding a subdivision to read: 
  8.22     Subd. 19a.  [STATE MEDIAN INCOME.] "State median income" 
  8.23  means the state's annual median income for a family of four, 
  8.24  adjusted for family size, developed by the Bureau of Census and 
  8.25  published annually by the United States Department of Health and 
  8.26  Human Services in the Federal Register. 
  8.27     Sec. 6.  Minnesota Statutes 2000, section 119B.011, is 
  8.28  amended by adding a subdivision to read: 
  8.29     Subd. 19b.  [STUDENT.] "Student" means an individual 
  8.30  enrolled in an education program.  A student is a full-time 
  8.31  student if enrolled in an education program a minimum equivalent 
  8.32  of 12 credits or 20 hours of classroom training per week.  A 
  8.33  student is considered a part-time student if enrolled in an 
  8.34  education program up to the minimum of full-time student status. 
  8.35     Sec. 7.  Minnesota Statutes 2000, section 119B.02, 
  8.36  subdivision 1, is amended to read: 
  9.1      Subdivision 1.  [CHILD CARE SERVICES.] The commissioner 
  9.2   shall develop standards for county and human services boards to 
  9.3   provide child care services to enable eligible families to 
  9.4   participate in employment, training, or education programs.  
  9.5   Within the limits of available appropriations, The commissioner 
  9.6   shall distribute money to counties to reduce the costs of child 
  9.7   care for eligible families.  The commissioner shall adopt rules 
  9.8   to govern the program in accordance with this section.  The 
  9.9   rules must establish a sliding schedule of fees for parents 
  9.10  receiving child care services.  The rules shall provide that 
  9.11  funds received as a lump sum payment of child support arrearages 
  9.12  shall not be counted as income to a family in the month received 
  9.13  but shall be prorated over the 12 months following receipt and 
  9.14  added to the family income during those months.  In the rules 
  9.15  adopted under this section, county and human services boards 
  9.16  shall be authorized to establish policies for payment of child 
  9.17  care spaces for absent children, when the payment is required by 
  9.18  the child's regular provider.  The rules shall not set a maximum 
  9.19  number of days for which absence payments can be made, but 
  9.20  instead shall direct the county agency to set limits and pay for 
  9.21  absences according to the prevailing market practice in the 
  9.22  county.  County policies for payment of absences shall be 
  9.23  subject to the approval of the commissioner.  The commissioner 
  9.24  shall maximize the use of federal money under title I and title 
  9.25  IV of Public Law Number 104-193, the Personal Responsibility and 
  9.26  Work Opportunity Reconciliation Act of 1996, and other programs 
  9.27  that provide federal or state reimbursement for child care 
  9.28  services for low-income families who are in education, training, 
  9.29  job search, or other activities allowed under those programs.  
  9.30  Money appropriated under this section must be coordinated with 
  9.31  the programs that provide federal reimbursement for child care 
  9.32  services to accomplish this purpose.  Federal reimbursement 
  9.33  obtained must be allocated to the county that spent money for 
  9.34  child care that is federally reimbursable under programs that 
  9.35  provide federal reimbursement for child care services.  The 
  9.36  counties commissioner shall use the federal money to expand 
 10.1   child care services.  The commissioner may adopt rules under 
 10.2   chapter 14 to implement and coordinate federal program 
 10.3   requirements.  If the November forecast shows biennial 
 10.4   expenditures projected to be above 110 percent of the biennial 
 10.5   appropriation, the commissioner, in conjunction with the 
 10.6   commissioner of finance, shall prepare a plan to bring biennial 
 10.7   program spending to within 110 percent of the consolidated child 
 10.8   care assistance appropriation for that biennium.  The proposal 
 10.9   to control program expenditures will be delivered to the 
 10.10  legislature or legislative advisory commission by January 15 
 10.11  following the November forecast.  The proposal will take effect 
 10.12  ten legislative session days following the release of the 
 10.13  February forecast if the forecast continues to exceed the 110 
 10.14  percent limit unless the legislature enacts an alternative 
 10.15  solution. 
 10.16     Sec. 8.  Minnesota Statutes 2000, section 119B.02, 
 10.17  subdivision 2, is amended to read: 
 10.18     Subd. 2.  [CONTRACTUAL AGREEMENTS WITH TRIBES.] The 
 10.19  commissioner may enter into contractual agreements with a 
 10.20  federally recognized Indian tribe with a reservation in 
 10.21  Minnesota to carry out the responsibilities of county human 
 10.22  service agencies to the extent necessary for the tribe to 
 10.23  operate child care assistance programs for families eligible 
 10.24  under sections 119B.03 119B.09 and 119B.05 119B.10.  An 
 10.25  agreement may allow for the tribe to be reimbursed for child 
 10.26  care assistance services provided under section 119B.05.  The 
 10.27  commissioner shall consult with the affected county or counties 
 10.28  in the contractual agreement negotiations, if the county or 
 10.29  counties wish to be included, in order to avoid the duplication 
 10.30  of county and tribal child care services.  Funding to support 
 10.31  services under section 119B.03 may be transferred to the 
 10.32  federally recognized Indian tribe with a reservation in 
 10.33  Minnesota from allocations available to counties in which 
 10.34  reservation boundaries lie.  When funding is transferred under 
 10.35  section 119B.03, the amount shall be commensurate to estimates 
 10.36  of the proportion of reservation residents with characteristics 
 11.1   identified in section 119B.03, subdivision 6, to the total 
 11.2   population of county residents with those same characteristics.  
 11.3      Sec. 9.  Minnesota Statutes 2000, section 119B.03, 
 11.4   subdivision 3, is amended to read: 
 11.5      Subd. 3.  [ELIGIBLE PARTICIPANTS.] Families that meet the 
 11.6   eligibility requirements under sections 119B.07, 119B.09, and 
 11.7   119B.10, except MFIP participants, work first participants, and 
 11.8   transition year families are eligible for child care 
 11.9   assistance under the basic sliding fee through the child care 
 11.10  assistance program.  Families enrolled in the basic sliding fee 
 11.11  child care assistance program shall be continued until they are 
 11.12  no longer eligible.  Child care assistance provided through the 
 11.13  child care fund is considered assistance to the parent. 
 11.14     Sec. 10.  Minnesota Statutes 2000, section 119B.03, is 
 11.15  amended by adding a subdivision to read: 
 11.16     Subd. 3a.  [ALLOCATION FORMULA.] (a) Funds appropriated for 
 11.17  families who apply for child care assistance with incomes above 
 11.18  50 percent state median income and below 75 percent state median 
 11.19  income shall be allocated on a calendar year basis.  The 
 11.20  following formula shall be used for the first biennium of the 
 11.21  consolidated program.  The commissioner shall propose to the 
 11.22  2003 legislature a new funding formula for funds under this 
 11.23  section based on the history of expenditures since consolidation 
 11.24  of the child care assistance program. 
 11.25     (b) Funds shall be allocated in proportion to each county's 
 11.26  total expenditures for the basic sliding fee child care program 
 11.27  reported during calendar year 2000.  
 11.28     (c) When the amount of funds available under this section 
 11.29  is less than the amount available in the previous year, each 
 11.30  county's previous year allocation shall be reduced in proportion 
 11.31  to the reduction in the statewide funding. 
 11.32     Sec. 11.  Minnesota Statutes 2000, section 119B.03, 
 11.33  subdivision 9, is amended to read: 
 11.34     Subd. 9.  [PORTABILITY POOL FAMILY MOVE; CONTINUED 
 11.35  PARTICIPATION.] (a) The commissioner shall establish a pool of 
 11.36  up to five percent of the annual appropriation for the basic 
 12.1   sliding fee program to provide continuous child care assistance 
 12.2   for eligible families who move between Minnesota counties.  At 
 12.3   the end of each allocation period, any unspent funds in the 
 12.4   portability pool must be used for assistance under the basic 
 12.5   sliding fee program.  If expenditures from the portability pool 
 12.6   exceed the amount of money available, the reallocation pool must 
 12.7   be reduced to cover these shortages. 
 12.8      (b) To be eligible for portable basic sliding fee 
 12.9   assistance, a family that has moved from a county in which it A 
 12.10  family receiving child care assistance under the child care fund 
 12.11  that has moved from a county in which the family was receiving 
 12.12  basic sliding fee child care assistance to a another county 
 12.13  with a waiting list for the basic sliding fee program must be 
 12.14  admitted into the receiving county's child care assistance 
 12.15  program if the family: 
 12.16     (1) meet meets the income and eligibility guidelines for 
 12.17  the basic sliding fee child care assistance program; and 
 12.18     (2) notify notifies the new county of residence within 30 
 12.19  60 days of moving and apply applies for basic sliding fee 
 12.20  child care assistance in the new county of residence. 
 12.21     (c) (b) The receiving county must: 
 12.22     (1) accept administrative responsibility for applicants for 
 12.23  portable basic sliding fee assistance at the end of the two 
 12.24  months of assistance under the Unitary Residency Act;. 
 12.25     (2) continue basic sliding fee assistance for the lesser of 
 12.26  six months or until the family is able to receive assistance 
 12.27  under the county's regular basic sliding program; and 
 12.28     (3) notify the commissioner through the quarterly reporting 
 12.29  process of any family that meets the criteria of the portable 
 12.30  basic sliding fee assistance pool. 
 12.31     Sec. 12.  Minnesota Statutes 2000, section 119B.03, 
 12.32  subdivision 10, is amended to read: 
 12.33     Subd. 10.  [APPLICATION; ENTRY POINTS.] Two or more methods 
 12.34  of applying for the basic sliding fee child care assistance 
 12.35  program under this chapter must be available to applicants in 
 12.36  each county.  To meet the requirements of this subdivision, a 
 13.1   county may provide alternative methods of applying for 
 13.2   assistance, including, but not limited to, a mail application, 
 13.3   or application sites that are located outside of government 
 13.4   offices. 
 13.5      Sec. 13.  Minnesota Statutes 2000, section 119B.05, 
 13.6   subdivision 5, is amended to read: 
 13.7      Subd. 5.  [FEDERAL REIMBURSEMENT.] Counties and the state 
 13.8   shall maximize their federal reimbursement under federal 
 13.9   reimbursement programs for money spent for persons eligible 
 13.10  under this chapter.  The commissioner shall allocate any federal 
 13.11  earnings to the county to be used to expand child care services 
 13.12  under this chapter. 
 13.13     Sec. 14.  Minnesota Statutes 2000, section 119B.061, 
 13.14  subdivision 1, is amended to read: 
 13.15     Subdivision 1.  [ESTABLISHMENT.] A family in which a parent 
 13.16  provides care for the family's infant child may receive a 
 13.17  subsidy in lieu of assistance if the family is eligible for, or 
 13.18  is receiving assistance under the basic sliding fee child care 
 13.19  assistance program.  An eligible family must meet the 
 13.20  eligibility factors under section 119B.09, the income criteria 
 13.21  under section 119B.12, and the requirements of this 
 13.22  section.  Subject to federal match and maintenance of effort 
 13.23  requirements for the child care and development fund, the 
 13.24  commissioner shall establish a pool of up to seven percent of 
 13.25  the annual appropriation for the basic sliding fee program to 
 13.26  provide assistance under the at-home infant child care program.  
 13.27  At the end of a fiscal year, the commissioner may carry forward 
 13.28  any unspent funds under this section to the next fiscal year 
 13.29  within the same biennium for assistance under the basic sliding 
 13.30  fee child care assistance program. 
 13.31     Sec. 15.  Minnesota Statutes 2000, section 119B.061, 
 13.32  subdivision 4, is amended to read: 
 13.33     Subd. 4.  [ASSISTANCE.] (a) A family is limited to a 
 13.34  lifetime total of 12 months of assistance under this 
 13.35  section subdivision 2.  The maximum rate of assistance is equal 
 13.36  to 75 90 percent of the rate established under section 119B.13 
 14.1   for care of infants in licensed family child care in the 
 14.2   applicant's county of residence.  Assistance must be calculated 
 14.3   to reflect the parent fee requirement under section 119B.12 for 
 14.4   the family's actual income level and family size while the 
 14.5   family is participating in the at-home infant child care program 
 14.6   under this section. 
 14.7      (b) A participating family must report income and other 
 14.8   family changes as specified in the county's plan under section 
 14.9   119B.08, subdivision 3.  The family must treat any assistance 
 14.10  received under this section as unearned income. 
 14.11     (c) Persons who are admitted to the at-home infant care 
 14.12  program retain their position in any basic sliding fee child 
 14.13  care assistance program or on any waiting list attained at the 
 14.14  time of admittance.  If they are on the waiting list, they must 
 14.15  advance as if they had not been admitted to the program.  
 14.16  Persons leaving the at-home infant care program re-enter 
 14.17  the basic sliding fee child care assistance program at the 
 14.18  position they would have occupied or the waiting list at the 
 14.19  position to which they would have advanced.  Persons who would 
 14.20  have attained eligibility for the basic sliding fee child care 
 14.21  assistance program must be given assistance or advance to the 
 14.22  top of the waiting list when they leave the at-home infant care 
 14.23  program.  Persons admitted to the at-home infant care program 
 14.24  who are not on a basic sliding fee waiting list may apply to the 
 14.25  basic sliding fee child care assistance program, and if 
 14.26  eligible, be placed on the waiting list. 
 14.27     (d) The time that a family receives assistance under this 
 14.28  section must be deducted from the one-year exemption from work 
 14.29  requirements under the MFIP program. 
 14.30     (e) Assistance under this section does not establish an 
 14.31  employer-employee relationship between any member of the 
 14.32  assisted family and the county or state. 
 14.33     Sec. 16.  Minnesota Statutes 2000, section 119B.08, is 
 14.34  amended to read: 
 14.35     119B.08 [REPORTING AND PAYMENTS.] 
 14.36     Subdivision 1.  [REPORTS.] The commissioner shall specify 
 15.1   requirements for reports under the same authority as provided to 
 15.2   the commissioner of human services in section 256.01, 
 15.3   subdivision 2, paragraph (17).  
 15.4      Subd. 2.  [QUARTERLY PAYMENTS.] The commissioner may make 
 15.5   payments to each county in quarterly installments.  The 
 15.6   commissioner may certify an advance up to 25 percent of the 
 15.7   allocation.  Subsequent Payments shall be made on a 
 15.8   reimbursement basis for reported expenditures and may be 
 15.9   adjusted for anticipated spending patterns.  Payments may be 
 15.10  withheld if quarterly reports are incomplete or untimely. 
 15.11     Subd. 3.  [CHILD CARE FUND PLAN.] The county and designated 
 15.12  administering agency shall submit a child care fund plan to the 
 15.13  commissioner an annual child care fund plan in its biennial 
 15.14  community social services plan.  The commissioner shall 
 15.15  establish the dates by which the county must submit the plans.  
 15.16  The plan shall include: 
 15.17     (1) a narrative of the total program for child care 
 15.18  services, including all policies and procedures that affect 
 15.19  eligible families and are used to administer the child care 
 15.20  funds; 
 15.21     (2) the methods used by the county to inform eligible 
 15.22  families of the availability of child care assistance and 
 15.23  related services; 
 15.24     (3) the provider rates paid for all children with special 
 15.25  needs by provider type; 
 15.26     (4) the county prioritization policy for all eligible 
 15.27  families under the basic sliding fee program; and 
 15.28     (5) other information as requested by the department to 
 15.29  ensure compliance with the child care fund statutes and rules 
 15.30  promulgated by the commissioner. 
 15.31     The commissioner shall notify counties within 60 90 days of 
 15.32  the date the plan is submitted whether the plan is approved or 
 15.33  the corrections or information needed to approve the plan.  The 
 15.34  commissioner shall withhold a county's allocation until it has 
 15.35  an approved plan.  Plans not approved by the end of the second 
 15.36  quarter after the plan is due may result in a 25 percent 
 16.1   reduction in allocation.  Plans not approved by the end of the 
 16.2   third quarter after the plan is due may result in a 100 percent 
 16.3   reduction in the allocation to the county payments to a county 
 16.4   until it has an approved plan.  Counties are to maintain 
 16.5   services despite any reduction in their allocation withholding 
 16.6   of payments due to plans not being approved. 
 16.7      Subd. 3a.  [RESTRICTED INCOME ELIGIBILITY.] If income 
 16.8   eligibility parameters have been restricted, counties may 
 16.9   continue to move families with income above the restricted 
 16.10  eligibility parameters but not to exceed the parameters in 
 16.11  section 119B.09, subdivision 1, paragraph (a), clause (1), into 
 16.12  the program using county funds.  These expenditures must be 
 16.13  reported separately and counties will only be reimbursed for 
 16.14  these expenditures if, at the end of the biennium, total program 
 16.15  expenditures are at or below the most recent forecast.  
 16.16     Subd. 3b.  [WAITING LIST.] Counties that do not move 
 16.17  families into the program with county funds must start a waiting 
 16.18  list if eligibility parameters are restricted and must report 
 16.19  this waiting list to the commissioner with other reports as 
 16.20  specified in subdivision 1.  Counties must determine income, 
 16.21  authorized activities, and family size before placing a family 
 16.22  on the waiting list. 
 16.23     Subd. 3c.  [FAMILY INFORMATION.] Counties that move 
 16.24  families into the program under subdivision 3a or place families 
 16.25  on the waiting list under subdivision 3b must report the number 
 16.26  of families served or placed on the waiting list, the date each 
 16.27  family began to receive service or was placed on the waiting 
 16.28  list, the income of the family and family size when they began 
 16.29  to receive service or were placed on the waiting list, and the 
 16.30  estimated cost of serving each family served under subdivision 
 16.31  3a to the commissioner on a form designated by the commissioner. 
 16.32     Subd. 4.  [TERMINATION OF ALLOCATION.] The commissioner may 
 16.33  withhold, or reduce, or terminate the allocation of any funds 
 16.34  intended to reimburse counties for child care costs under the 
 16.35  child care fund if the county that does not meet the reporting, 
 16.36  planning, or other requirements of this program.  The 
 17.1   commissioner shall reallocate to other counties money so reduced 
 17.2   or terminated withholding or reduction of funds under this 
 17.3   subdivision does not relieve counties of their requirements 
 17.4   under this chapter.  
 17.5      Sec. 17.  Minnesota Statutes 2000, section 119B.09, 
 17.6   subdivision 1, is amended to read: 
 17.7      Subdivision 1.  [GENERAL ELIGIBILITY REQUIREMENTS FOR ALL 
 17.8   APPLICANTS FOR CHILD CARE ASSISTANCE.] (a) Child care services 
 17.9   must be available to families who need child care to find or 
 17.10  keep employment or to obtain the training or education necessary 
 17.11  to find employment as defined in section 119B.10, and who: 
 17.12     (1) meet the requirements of section 119B.05; receive MFIP 
 17.13  assistance; and are participating in employment and training 
 17.14  services under chapter 256J or 256K; 
 17.15     (2) have household income below the eligibility levels for 
 17.16  MFIP; or 
 17.17     (3) have household income within a range established by the 
 17.18  commissioner. of 75 percent of state median income (SMI) or 
 17.19  below at program entry and above 75 percent of SMI at program 
 17.20  exit.  The child care assistance program must be forecasted for 
 17.21  families who enter with incomes up to 50 percent of SMI.  
 17.22  Assistance to families who enter the child care assistance 
 17.23  program with incomes above 50 percent of SMI is subject to a 
 17.24  capped allocation and counties must establish a waiting list 
 17.25  under section 119B.08, subdivision 3b, if families cannot be 
 17.26  served with available funds. 
 17.27     (b) Child care services must be made available as in-kind 
 17.28  services.  
 17.29     (c) All applicants for child care assistance and families 
 17.30  currently receiving child care assistance must be assisted and 
 17.31  required to cooperate in establishment of paternity and 
 17.32  enforcement of child support obligations for all children in the 
 17.33  family as a condition of program eligibility.  For purposes of 
 17.34  this section, a family is considered to meet the requirement for 
 17.35  cooperation when the family complies with the requirements of 
 17.36  section 256.741. 
 18.1      Sec. 18.  Minnesota Statutes 2000, section 119B.09, 
 18.2   subdivision 2, is amended to read: 
 18.3      Subd. 2.  [SLIDING FEE.] Child care services to eligible 
 18.4   families with incomes in the commissioner's established range 
 18.5   must be made available on a sliding fee basis.  The upper limit 
 18.6   of the range eligibility must be neither less than 70 percent 
 18.7   nor more than 90 75 percent of the state median income for a 
 18.8   family of four, adjusted for family size.  
 18.9      Sec. 19.  Minnesota Statutes 2000, section 119B.09, 
 18.10  subdivision 7, is amended to read: 
 18.11     Subd. 7.  [DATE OF ELIGIBILITY FOR ASSISTANCE.] The date of 
 18.12  eligibility for child care assistance under this chapter is the 
 18.13  later of the date the application was signed; or the beginning 
 18.14  date of employment, education, or training; or the date a 
 18.15  determination has been made that the applicant is a participant 
 18.16  in employment and training services under Minnesota Rules, part 
 18.17  3400.0080, subpart 2a, or chapter 256J or 256K.  The date of 
 18.18  eligibility for the basic sliding fee at-home infant child care 
 18.19  program is the later of the date the infant is born or, in a 
 18.20  county with a basic sliding fee waiting list, the date the 
 18.21  family applies for at-home infant child care.  Payment ceases 
 18.22  for a family under the at-home infant child care program when a 
 18.23  family has used a total of 12 months of assistance as specified 
 18.24  under section 119B.061.  Payment of child care assistance for 
 18.25  employed persons on MFIP is effective the date of employment or 
 18.26  the date of MFIP eligibility, whichever is later under section 
 18.27  119B.10.  Payment of child care assistance for MFIP or work 
 18.28  first participants in employment and training services is 
 18.29  effective the date of commencement of the services or the date 
 18.30  of MFIP or work first eligibility, whichever is later.  Payment 
 18.31  of child care assistance for transition year child care must be 
 18.32  made retroactive to the date of eligibility for transition year 
 18.33  child care. 
 18.34     Sec. 20.  Minnesota Statutes 2000, section 119B.10, is 
 18.35  amended to read: 
 18.36     119B.10 [EMPLOYMENT OR TRAINING ELIGIBILITY.] 
 19.1      Subdivision 1.  [ASSISTANCE FOR PERSONS SEEKING AND 
 19.2   RETAINING EMPLOYMENT.] (a) Persons who are seeking employment 
 19.3   and who are eligible for assistance under this section chapter 
 19.4   are eligible to receive up to 240 hours of child care assistance 
 19.5   per calendar year.  
 19.6      (b) Employed persons who work at least an average of 20 
 19.7   hours and full-time students who work at least an average of ten 
 19.8   hours a week and receive at least a minimum wage for all hours 
 19.9   worked are eligible for continued child care assistance for 
 19.10  employment.  For purposes of this section, work-study programs 
 19.11  must be counted as employment.  Child care assistance during 
 19.12  employment must be authorized as provided in paragraphs (c) and 
 19.13  (d). 
 19.14     (c) When the person works for an hourly wage and the hourly 
 19.15  wage is equal to or greater than the applicable minimum wage, 
 19.16  child care assistance shall be provided for the actual hours of 
 19.17  employment, break, and mealtime during the employment and travel 
 19.18  time up to two hours per day. 
 19.19     (d) When the person does not work for an hourly wage, child 
 19.20  care assistance must be provided for the lesser of: 
 19.21     (1) the amount of child care determined by dividing gross 
 19.22  earned income by the applicable minimum wage, up to one hour 
 19.23  every eight hours for meals and break time, plus up to two hours 
 19.24  per day for travel time; or 
 19.25     (2) the amount of child care equal to the actual amount of 
 19.26  child care used during employment, including break and mealtime 
 19.27  during employment, and travel time up to two hours per day. 
 19.28     Subd. 1a.  [ASSISTANCE FOR PERSONS PARTICIPATING IN 
 19.29  EMPLOYMENT PLAN.] The following persons are also eligible for 
 19.30  child care assistance: 
 19.31     (1) persons who are participating in employment orientation 
 19.32  or job search, or other employment or training activities that 
 19.33  are included in an approved employability development plan under 
 19.34  chapter 256K; 
 19.35     (2) persons who are participating in work, job search, job 
 19.36  support, employment, or training activities as required in their 
 20.1   job search support or employment plan, or in appeals, hearings, 
 20.2   assessments, or orientations according to chapter 256J; 
 20.3      (3) persons who are participating in social services 
 20.4   activities under chapter 256J or 256K as required in their 
 20.5   employment plan approved according to chapter 256J or 256K; and 
 20.6      (4) families who are participating in programs as required 
 20.7   in tribal contracts under section 119B.02, subdivision 2, or 
 20.8   256.01, subdivision 2.  
 20.9      Subd. 2.  [FINANCIAL ELIGIBILITY REQUIRED.] Persons 
 20.10  participating in employment programs, training programs, or 
 20.11  education programs are eligible for continued assistance from 
 20.12  the child care fund, if they are financially eligible under the 
 20.13  sliding fee scale set by the commissioner in section 119B.12. 
 20.14     Subd. 3.  [CHILD CARE ASSISTANCE DURING EDUCATION.] The 
 20.15  following persons are eligible for child care assistance for 
 20.16  education or training: 
 20.17     (1) persons who meet the requirements of section 119B.09 
 20.18  who are enrolled in remedial or basic education or English as a 
 20.19  second language, or persons up to the age of 19 who are enrolled 
 20.20  in an educational program to attain a high school diploma or 
 20.21  general equivalency diploma; and 
 20.22     (2) persons who meet the requirements of this section and 
 20.23  section 119B.09 must also receive child care assistance to 
 20.24  reduce the costs of child care for education when employed an 
 20.25  average of at least 20 hours per week under subdivision 1, and 
 20.26  are not receiving MFIP benefits as defined in section 119B.011, 
 20.27  subdivision 17.  
 20.28     Subd. 4.  [SATISFACTORY PROGRESS.] Students enrolled in an 
 20.29  education program under section 119B.011, subdivision 11, must 
 20.30  be making satisfactory progress toward completion of the program 
 20.31  as stipulated in the school's satisfactory progress policy. 
 20.32     Subd. 5.  [LIMITING DURATION OF TRAINING.] Counties may not 
 20.33  limit the duration of child care subsidies for a person in an 
 20.34  employment or educational program except when the person is 
 20.35  found to be ineligible under the child care fund eligibility 
 20.36  standards.  Any limitation must be based on a person's 
 21.1   employment plan in the case of an MFIP participant. 
 21.2      Subd. 6.  [MAXIMUM LENGTH OF TIME FOR TRAINING.] The 
 21.3   maximum length of time a participant is eligible for child care 
 21.4   assistance under the child care fund for education and training 
 21.5   is no more than the maximum time allowed to complete the credit 
 21.6   requirements for an associate or baccalaureate degree as 
 21.7   stipulated in the school's satisfactory progress policy.  This 
 21.8   length of time excludes basic or remedial education programs, 
 21.9   English as a second language, high school, and general 
 21.10  equivalency diploma programs needed to prepare for 
 21.11  post-secondary education or employment. 
 21.12     Subd. 7.  [MFIP STUDENT MOVES TO ANOTHER COUNTY.] If an 
 21.13  MFIP participant who is receiving child care assistance under 
 21.14  this chapter moves to another county, continues to participate 
 21.15  in educational or training programs authorized in the MFIP 
 21.16  participant's employment plans, and continues to be eligible for 
 21.17  child care assistance under this chapter, the MFIP participant 
 21.18  must receive continued child care assistance from the county 
 21.19  responsible for the MFIP participant's current employment plan 
 21.20  under section 256G.07. 
 21.21     Sec. 21.  Minnesota Statutes 2000, section 119B.11, 
 21.22  subdivision 1, is amended to read: 
 21.23     Subdivision 1.  [COUNTY CONTRIBUTIONS REQUIRED.] Beginning 
 21.24  July 1, 1997, (a) In addition to payments from basic sliding fee 
 21.25  child care assistance program participants, each county shall 
 21.26  contribute from county tax or other sources a fixed local match 
 21.27  equal to its calendar year 1996 2000 required county 
 21.28  contribution reduced by the administrative funding loss that 
 21.29  would have occurred in state fiscal year 1996 under section 
 21.30  119B.15.  The commissioner shall recover funds from the county 
 21.31  as necessary to bring county expenditures into compliance with 
 21.32  this subdivision.  The commissioner may accept county 
 21.33  contributions, including contributions above the fixed local 
 21.34  match, in order to make state payments. 
 21.35     (b) The commissioner may accept payments from counties:  (1)
 21.36  to fulfill the county contribution as required under subdivision 
 22.1   1; (2) to pay for services authorized under this chapter beyond 
 22.2   those paid for with federal or state funds or with the required 
 22.3   county contributions; or (3) to pay for child care services not 
 22.4   authorized under this chapter.  The commissioner may keep 
 22.5   accounts as necessary within the state's accounting system.  The 
 22.6   receipts must be deposited in the special revenue fund. 
 22.7      Sec. 22.  Minnesota Statutes 2000, section 119B.12, 
 22.8   subdivision 2, is amended to read: 
 22.9      Subd. 2.  [PARENT FEE.] A family's monthly parent fee must 
 22.10  be a fixed percentage of its annual gross income.  Parent fees 
 22.11  must apply to families eligible for child care assistance 
 22.12  under sections 119B.03 and 119B.05 section 119B.09.  Income must 
 22.13  be as defined in section 119B.011, subdivision 15.  The fixed 
 22.14  percent is based on the relationship of the family's annual 
 22.15  gross income to 100 percent of state median income.  Beginning 
 22.16  January 1, 1998, parent fees must begin at 75 percent of the 
 22.17  poverty level.  The minimum parent fees for families between 75 
 22.18  percent and 100 percent of poverty level must be $5 per month.  
 22.19  Parent fees must be established in rule and must provide for 
 22.20  graduated movement to full payment. 
 22.21     Sec. 23.  Minnesota Statutes 2000, section 119B.13, 
 22.22  subdivision 1, is amended to read: 
 22.23     Subdivision 1.  [SUBSIDY RESTRICTIONS.] The maximum rate 
 22.24  paid for child care assistance under the child care fund may not 
 22.25  exceed the 75th percentile rate for like-care arrangements in 
 22.26  the county as surveyed by the commissioner.  Beginning July 1, 
 22.27  2001, the 75th percentile rate established for a county may not 
 22.28  be less than the 75th percentile rate established for that 
 22.29  county during the previous year.  A rate which includes a 
 22.30  provider bonus paid under subdivision 2 or a special needs rate 
 22.31  paid under subdivision 3 may be in excess of the maximum rate 
 22.32  allowed under this subdivision.  The department shall monitor 
 22.33  the effect of this paragraph on provider rates.  The county 
 22.34  shall pay the provider's full charges for every child in care up 
 22.35  to the maximum established.  The commissioner shall determine 
 22.36  the maximum rate for each type of care, including special needs 
 23.1   and handicapped care.  Not less than once every two years, the 
 23.2   commissioner shall evaluate market practices for payment of 
 23.3   absences and shall establish policies for payment of absent days 
 23.4   that reflect current market practice. 
 23.5      When the provider charge is greater than the maximum 
 23.6   provider rate allowed, the parent is responsible for payment of 
 23.7   the difference in the rates in addition to any family copayment 
 23.8   fee. 
 23.9      Sec. 24.  Minnesota Statutes 2000, section 119B.13, 
 23.10  subdivision 6, is amended to read: 
 23.11     Subd. 6.  [PROVIDER PAYMENTS.] Counties or the state shall 
 23.12  make vendor payments to the child care provider or pay the 
 23.13  parent directly for eligible child care expenses.  If payments 
 23.14  for child care assistance are made to providers, the provider 
 23.15  shall bill the county for services provided within ten days of 
 23.16  the end of the month of service.  If bills are submitted in 
 23.17  accordance with the provisions of this subdivision, a county or 
 23.18  the state shall issue payment to the provider of child care 
 23.19  under the child care fund within 30 days of receiving an invoice 
 23.20  from the provider.  Counties or the state may establish policies 
 23.21  that make payments on a more frequent basis.  A county's payment 
 23.22  policies must be included in the county's child care plan under 
 23.23  section 119B.08, subdivision 3.  If payments are made by the 
 23.24  state, in addition to being in compliance with this subdivision, 
 23.25  the payments must be made in compliance with section 16A.124. 
 23.26     Sec. 25.  Minnesota Statutes 2000, section 119B.15, is 
 23.27  amended to read: 
 23.28     119B.15 [ADMINISTRATIVE EXPENSES.] 
 23.29     The commissioner shall use up to 1/21 of the state and 
 23.30  federal funds available for the basic sliding fee program and 
 23.31  1/21 of the state and federal funds available for the MFIP child 
 23.32  care assistance program for payments to counties for 
 23.33  administrative expenses the administrative costs of the delivery 
 23.34  of direct services. 
 23.35     Sec. 26.  [119B.221] [TEACHER EDUCATION AND COMPENSATION 
 23.36  HELPS PROGRAM.] 
 24.1      Subdivision 1.  [ESTABLISHMENT.] The commissioner shall 
 24.2   establish a teacher education and compensation helps program 
 24.3   (TEACH) to provide tuition scholarships, education incentive 
 24.4   bonuses, and retention bonuses to child care and education 
 24.5   providers and staff.  The commissioner shall transfer funds 
 24.6   provided under this section through a grant to a nonprofit 
 24.7   organization licensed to administer the TEACH program.  The 
 24.8   commissioner shall establish application procedures, eligibility 
 24.9   criteria, terms, and other conditions necessary to administer 
 24.10  the program. 
 24.11     Subd. 2.  [PROGRAM COMPONENTS.] (a) The nonprofit 
 24.12  organization shall distribute funds for: 
 24.13     (1) tuition scholarships up to $2,000 per year for courses 
 24.14  leading to the nationally recognized child development associate 
 24.15  credential or college-level courses leading to the University of 
 24.16  Minnesota competency-based training assessment credential, or 
 24.17  similar credentials recognized by the department or a 
 24.18  certificate, Associate of Arts, Bachelor of Arts, or Master of 
 24.19  Arts in early childhood development and school-age care; and 
 24.20     (2) education incentive bonuses of $300 to $500 to 
 24.21  participants in the tuition scholarship program if they complete 
 24.22  a year of working in the child care and education field. 
 24.23     (b) Applicants for the scholarship must be either employed 
 24.24  by a licensed child care center and working directly with 
 24.25  children, a licensed family child care provider, or an employee 
 24.26  in a school-age program operated under the auspices of a 
 24.27  license-exempt public program.  Scholarship recipients who are 
 24.28  self-employed must contribute five percent of the total 
 24.29  scholarship.  Applicants who are not self-employed must be 
 24.30  sponsored by their employer and the employer must contribute 
 24.31  five percent of the total scholarship. 
 24.32     (c) The organization shall also distribute funds for 
 24.33  retention bonuses of $600 to $3,500 annually to be paid 
 24.34  semiannually to child care and education providers and staff who 
 24.35  have worked in the child care and education field for at least 
 24.36  one year.  The amount of the retention bonus must be based on 
 25.1   the applicant's level of education when they apply for the 
 25.2   bonus.  A provider or staff is eligible for the bonus if: 
 25.3      (1) the provider or staff has worked in the field for at 
 25.4   least one year and has been working at the same location for at 
 25.5   least one year at the time of application; and 
 25.6      (2) is earning an hourly wage that is less than the hourly 
 25.7   wage equivalent of elementary school teachers in the school 
 25.8   district. 
 25.9      The commissioner shall annually adjust the scholarship and 
 25.10  bonus amounts by the rate of inflation as measured by the 
 25.11  Consumer Price Index. 
 25.12     Subd. 3.  [ADVISORY COMMITTEE.] The TEACH program must have 
 25.13  an advisory board composed of five members from early childhood 
 25.14  and school-age care professional associations, three members 
 25.15  from professional associations that represent the cultural 
 25.16  diversity of communities; one member of the business community 
 25.17  working in the human resources field; two parents using child 
 25.18  care; one representative each from a Head Start program and an 
 25.19  early childhood and family education program; one licensed child 
 25.20  care center teacher; one licensed child care center director; 
 25.21  one licensed family child care provider; and one kindergarten 
 25.22  through third grade teacher. 
 25.23     Sec. 27.  Minnesota Statutes 2000, section 119B.24, is 
 25.24  amended to read: 
 25.25     119B.24 [DUTIES OF COMMISSIONER.] 
 25.26     In addition to the powers and duties already conferred by 
 25.27  law, the commissioner of children, families, and learning shall: 
 25.28     (1) administer the child care fund, including the basic 
 25.29  sliding fee program authorized under sections 119B.011 to 
 25.30  119B.16; 
 25.31     (2) monitor the child care resource and referral programs 
 25.32  established under section 119B.19; and 
 25.33     (3) encourage child care providers to participate in a 
 25.34  nationally recognized accreditation system for early 
 25.35  childhood and school-age care programs.  The commissioner shall 
 25.36  reimburse licensed Subject to approval by the commissioner, 
 26.1   family child care providers and early childhood and school-age 
 26.2   care programs shall be reimbursed for one-half of the direct 
 26.3   cost of accreditation fees, upon successful completion of 
 26.4   accreditation. 
 26.5      Sec. 28.  Minnesota Statutes 2000, section 121A.16, is 
 26.6   amended to read: 
 26.7      121A.16 [EARLY CHILDHOOD HEALTH AND DEVELOPMENT SCREENING; 
 26.8   PURPOSE.] 
 26.9      The legislature finds that early detection of children's 
 26.10  health and developmental problems can reduce their later need 
 26.11  for costly care, minimize their physical and educational 
 26.12  handicaps disabilities, and aid in their rehabilitation.  The 
 26.13  purpose of sections 121A.16 to 121A.19 is to assist parents and 
 26.14  communities in improving the health of Minnesota children and in 
 26.15  planning educational and health programs.  To effect this 
 26.16  purpose in the most cost-effective and efficient manner 
 26.17  possible, the commissioners of children, families, and learning 
 26.18  and human services shall identify a plan to maximize the use of 
 26.19  early and periodic screening, diagnosis, and treatment program 
 26.20  funding for the purposes of sections 121A.16 to 121A.19, and 
 26.21  shall report to the legislature by December 1, 2001, their 
 26.22  recommendations for better coordination between the public 
 26.23  funding streams that currently exist for early childhood 
 26.24  screening. 
 26.25     Sec. 29.  Minnesota Statutes 2000, section 121A.17, 
 26.26  subdivision 1, is amended to read: 
 26.27     Subdivision 1.  [EARLY CHILDHOOD DEVELOPMENTAL SCREENING.] 
 26.28  Every school board must provide for a mandatory program of early 
 26.29  childhood developmental screening for children at least once 
 26.30  before school entrance, targeting children who are between 3-1/2 
 26.31  and four years old.  Screening must be accomplished as near as 
 26.32  possible to the child's third birthday but may be as early as 
 26.33  age two at the option of the child's parent or legal guardian.  
 26.34  Children screened between the ages of two and three should be 
 26.35  rescreened at or after age three.  This screening program must 
 26.36  be established either by one board, by two or more boards acting 
 27.1   in cooperation, by service cooperatives, by early childhood 
 27.2   family education programs, or by other existing programs.  This 
 27.3   screening examination is a mandatory requirement for a student 
 27.4   to continue attending kindergarten or first grade in a public 
 27.5   school.  A child need not submit to developmental screening 
 27.6   provided by a board if the child's health records indicate to 
 27.7   the board that the child has received comparable developmental 
 27.8   screening from a public or private health care organization or, 
 27.9   individual health care provider, or Head Start.  Districts are 
 27.10  encouraged to reduce the costs of preschool developmental 
 27.11  screening programs by utilizing volunteers in implementing the 
 27.12  program. 
 27.13     Sec. 30.  Minnesota Statutes 2000, section 121A.17, 
 27.14  subdivision 3, is amended to read: 
 27.15     Subd. 3.  [SCREENING PROGRAM.] (a) A screening program must 
 27.16  include at least the following components:  developmental 
 27.17  assessments, health and developmental history, hearing and 
 27.18  vision screening or referral, immunization review and referral, 
 27.19  the child's height and weight, identification of risk factors 
 27.20  that may influence learning, an interview with the parent about 
 27.21  the child, and referral for assessment, diagnosis, and treatment 
 27.22  when potential needs are identified.  The district and the 
 27.23  person performing or supervising the screening must provide a 
 27.24  parent or guardian with clear written notice that the parent or 
 27.25  guardian may decline to answer questions or provide information 
 27.26  about family circumstances that might affect development and 
 27.27  identification of risk factors that may influence learning.  The 
 27.28  notice must clearly state that declining to answer questions or 
 27.29  provide information does not prevent the child from being 
 27.30  enrolled in kindergarten or first grade if all other screening 
 27.31  components are met.  If a parent or guardian is not able to read 
 27.32  and comprehend the written notice, the district and the person 
 27.33  performing or supervising the screening must convey the 
 27.34  information in another manner.  The notice must also inform the 
 27.35  parent or guardian that a child need not submit to the district 
 27.36  screening program if the child's health records indicate to the 
 28.1   school that the child has received comparable developmental 
 28.2   screening performed within the preceding 365 days by a public or 
 28.3   private health care organization or individual health care 
 28.4   provider.  The notice must be given to a parent or guardian at 
 28.5   the time the district initially provides information to the 
 28.6   parent or guardian about screening and must be given again at 
 28.7   the screening location.  
 28.8      (b) All screening components shall be consistent with the 
 28.9   standards of the state commissioner of health and the 
 28.10  commissioner of children, families, and learning for early 
 28.11  developmental screening programs.  A developmental screening 
 28.12  program must not provide laboratory tests or a physical 
 28.13  examination to any child.  The district must request from the 
 28.14  public or private health care organization or the individual 
 28.15  health care provider the results of any laboratory test or 
 28.16  physical examination within the 12 months preceding a child's 
 28.17  scheduled screening.  
 28.18     (c) If a child is without health coverage, the school 
 28.19  district must refer the child to an appropriate health care 
 28.20  provider, and must provide application materials for 
 28.21  MinnesotaCare if appropriate.  
 28.22     (d) A board may offer additional components such as 
 28.23  nutritional, physical and dental assessments, review of family 
 28.24  circumstances that might affect development, blood pressure, and 
 28.25  laboratory tests, and health history.  
 28.26     (e) If a statement signed by the child's parent or guardian 
 28.27  is submitted to the administrator or other person having general 
 28.28  control and supervision of the school that the child has not 
 28.29  been screened because of conscientiously held beliefs of the 
 28.30  parent or guardian, the screening is not required.  
 28.31     Sec. 31.  Minnesota Statutes 2000, section 121A.17, 
 28.32  subdivision 4, is amended to read: 
 28.33     Subd. 4.  [FOLLOW-UP SCREENING.] If any child's screening 
 28.34  indicates a condition which requires diagnosis or treatment, the 
 28.35  child's parents shall be notified of the condition and the board 
 28.36  shall ensure that an appropriate follow-up and referral process 
 29.1   is available.  Districts must report to the commissioner results 
 29.2   of referrals and subsequent interventions. 
 29.3      Sec. 32.  Minnesota Statutes 2000, section 121A.17, 
 29.4   subdivision 5, is amended to read: 
 29.5      Subd. 5.  [DEVELOPMENTAL SCREENING PROGRAM INFORMATION.] 
 29.6   The board must inform each resident family with a child eligible 
 29.7   to participate in the developmental screening program about the 
 29.8   availability of the program and the state's requirement that a 
 29.9   child receive developmental screening not later than 30 days 
 29.10  after the first day of attending kindergarten in a public school.
 29.11  as near as possible to the child's third birthday.  The board 
 29.12  must also inform families that they may choose to have their 
 29.13  child screened as early as age two and that children screened 
 29.14  between the ages of two and three should be rescreened at or 
 29.15  after age three.  If a child has not been screened prior to 
 29.16  school entrance, families must be notified of the state's 
 29.17  requirement that a child receive developmental screening not 
 29.18  later than 30 days after first attending kindergarten in a 
 29.19  public school. 
 29.20     Sec. 33.  Minnesota Statutes 2000, section 121A.19, is 
 29.21  amended to read: 
 29.22     121A.19 [DEVELOPMENTAL SCREENING AID.] 
 29.23     Subdivision 1.  [AID.] Each school year, the state must pay 
 29.24  a district $40 $50 for each four-year-old child, $65 for each 
 29.25  three-year-old child, and $75 for each two-year-old child 
 29.26  screened according to the requirements of section 121A.17.  Each 
 29.27  school year, the state must pay a district $5 per child for each 
 29.28  follow-up on referrals and subsequent interventions.  If this 
 29.29  amount of aid is insufficient, the district may permanently 
 29.30  transfer from the general fund an amount that, when added to the 
 29.31  aid, is sufficient. 
 29.32     Subd. 2.  [TECHNICAL ASSISTANCE.] Each school year, $55,000 
 29.33  must be available for statewide training, technical assistance, 
 29.34  and outreach. 
 29.35     Sec. 34.  Minnesota Statutes 2000, section 124D.13, is 
 29.36  amended by adding a subdivision to read: 
 30.1      Subd. 2a.  [PROGRAM PLAN REVIEW AND APPROVAL.] A school 
 30.2   district shall biennially by May 15 submit to the commissioner a 
 30.3   program plan describing how the district intends to use program 
 30.4   funds to address the program characteristics under subdivision 
 30.5   2, the coordination requirements under subdivision 8, the 
 30.6   specific needs of young children and their families in the 
 30.7   school district, and other information as required by the 
 30.8   commissioner.  One-half of districts shall submit a plan in the 
 30.9   even-numbered fiscal years and the remaining districts in the 
 30.10  odd-numbered fiscal years as designated by the commissioner.  If 
 30.11  the program is integrated with the district's school readiness 
 30.12  program, the district may request a waiver in advance to submit 
 30.13  only one joint program plan for the two programs.  The 
 30.14  commissioner shall review and make comments or recommendations 
 30.15  within 90 days of receiving the plan. 
 30.16     Sec. 35.  Minnesota Statutes 2000, section 124D.13, 
 30.17  subdivision 8, is amended to read: 
 30.18     Subd. 8.  [COORDINATION.] A district is encouraged to 
 30.19  coordinate the program with its special education and vocational 
 30.20  education programs and with related services provided by other 
 30.21  governmental agencies and nonprofit agencies. must coordinate 
 30.22  the early childhood family education program with existing 
 30.23  community-based programs and service providers including school 
 30.24  readiness, Head Start, child care, and others, and foster 
 30.25  collaboration among agencies and other community-based 
 30.26  organizations and programs that provide flexible, family-focused 
 30.27  services to families with young children.  The district must 
 30.28  actively encourage greater sharing of information, 
 30.29  responsibility, and accountability among service providers and 
 30.30  facilitate the children's transition to kindergarten. 
 30.31     A district is encouraged to coordinate adult basic 
 30.32  education programs provided to parents and early childhood 
 30.33  family education programs provided to children to accomplish the 
 30.34  goals of section 124D.895. 
 30.35     Sec. 36.  Minnesota Statutes 2000, section 124D.13, 
 30.36  subdivision 9, is amended to read: 
 31.1      Subd. 9.  [DISTRICT ADVISORY COUNCILS.] The board must 
 31.2   appoint an advisory council from the area in which the program 
 31.3   is provided.  A majority of the council must be parents 
 31.4   participating in the program.  The council must assist the board 
 31.5   in developing, planning, and monitoring the early childhood 
 31.6   family education program and in integrating service delivery 
 31.7   with other early childhood and family services within the 
 31.8   community.  The council must report to the board and the 
 31.9   community education advisory council.  
 31.10     Sec. 37.  Minnesota Statutes 2000, section 124D.13, is 
 31.11  amended by adding a subdivision to read: 
 31.12     Subd. 13.  [ANNUAL REPORT.] A district is required to 
 31.13  report annual program and participant data as defined by the 
 31.14  commissioner by August 15 for the school year ending June 30 of 
 31.15  the same calendar year.  A district's failure to report the 
 31.16  necessary data may result in the withholding of future program 
 31.17  funds. 
 31.18     Sec. 38.  Minnesota Statutes 2000, section 124D.135, 
 31.19  subdivision 1, is amended to read: 
 31.20     Subdivision 1.  [REVENUE.] The revenue for early childhood 
 31.21  family education programs for a school district equals $113.50 
 31.22  for fiscal years 2000 and 2001 and $120 for fiscal year 2002 and 
 31.23  $125.60 for fiscal year 2003 and later fiscal years times the 
 31.24  greater of: 
 31.25     (1) 150; or 
 31.26     (2) the number of people under five years of age residing 
 31.27  in the district on October 1 of the previous school year. 
 31.28     Sec. 39.  Minnesota Statutes 2000, section 124D.135, 
 31.29  subdivision 3, is amended to read: 
 31.30     Subd. 3.  [EARLY CHILDHOOD FAMILY EDUCATION LEVY.] For 
 31.31  fiscal year 2001 to obtain early childhood family education 
 31.32  revenue, a district may levy an amount equal to the tax rate of 
 31.33  .5282 .5045 percent times the adjusted tax capacity of the 
 31.34  district for the year preceding the year the levy is certified.  
 31.35  Beginning with levies for fiscal year 2002, by September 30 of 
 31.36  each year, the commissioner shall establish a tax rate for early 
 32.1   childhood education revenue that raises $21,027,000 for fiscal 
 32.2   year 2002 and $22,135,000 in fiscal year 2003 and each 
 32.3   subsequent year.  If the amount of the early childhood family 
 32.4   education levy would exceed the early childhood family education 
 32.5   revenue, the early childhood family education levy must equal 
 32.6   the early childhood family education revenue. 
 32.7      Sec. 40.  Minnesota Statutes 2000, section 124D.135, 
 32.8   subdivision 7, is amended to read: 
 32.9      Subd. 7.  [RESERVE ACCOUNT.] (a) Early childhood family 
 32.10  education revenue, which includes aids, levies, fees, grants, 
 32.11  and all other revenues received by the district for early 
 32.12  childhood family education programs, must be maintained in a 
 32.13  reserve account within the community service fund. 
 32.14     (b) This reserve account may not exceed 25 percent of the 
 32.15  district's annual early childhood family education revenue.  If 
 32.16  a district anticipates that the reserve account may exceed 25 
 32.17  percent because of extenuating circumstances, prior approval to 
 32.18  exceed the limit must be obtained in writing from the 
 32.19  commissioner.  
 32.20     (c) If a deficit in the reserve account exists at the end 
 32.21  of a fiscal year and the deficit is not eliminated by revenues 
 32.22  from operations in the next year, then the deficit must be 
 32.23  eliminated by a permanent fund transfer from the district's 
 32.24  general fund at the end of the second year.  
 32.25     (d) Notwithstanding paragraph (c), a district may incur a 
 32.26  deficit in the fund for up to three years without making the 
 32.27  permanent transfer if the district submits to the commissioner 
 32.28  by January 1 of the second fiscal year a plan for eliminating 
 32.29  the deficit at the end of the third fiscal year. 
 32.30     Sec. 41.  Minnesota Statutes 2000, section 124D.135, is 
 32.31  amended by adding a subdivision to read: 
 32.32     Subd. 8.  [ADJUSTMENT FOR UNUSED FUNDS.] A district that 
 32.33  has an early childhood family education reserve fund balance 
 32.34  that exceeds 25 percent of the annual revenue for the program 
 32.35  shall have its future aid and levy authority reduced 
 32.36  accordingly.  This reduction shall be made in the fiscal year 
 33.1   that begins no more than 30 months after the excess occurs in 
 33.2   the reserve account.  The commissioner shall reallocate aid 
 33.3   reduced under this provision to other eligible school districts. 
 33.4      Sec. 42.  Minnesota Statutes 2000, section 124D.15, is 
 33.5   amended to read: 
 33.6      124D.15 [SCHOOL READINESS PROGRAMS.] 
 33.7      Subdivision 1.  [ESTABLISHMENT; PURPOSE.] A district or a 
 33.8   group of districts may establish a school readiness program that 
 33.9   provides a continuum of flexible services for eligible children. 
 33.10  The purpose of a school readiness program is to provide all 
 33.11  eligible children adequate opportunities to participate in child 
 33.12  development programs that enable the children to enter school 
 33.13  with the necessary skills and behavior and family stability and 
 33.14  support to progress and flourish. 
 33.15     Subd. 2.  [CHILD ELIGIBILITY.] (a) A child is eligible 
 33.16  to may participate in a school readiness program offered 
 33.17  by through the resident district or another district if the 
 33.18  child is:  
 33.19     (1) at least 3-1/2 years old but has not entered 
 33.20  kindergarten; and 
 33.21     (2) the child receives developmental screening under 
 33.22  section 121A.17 within 90 days of enrolling in the program or 
 33.23  the child's fourth birthday.; and 
 33.24     (b) (2) a child younger than 3-1/2 years old may 
 33.25  participate in a school readiness program if the district or 
 33.26  group of districts that establishes the program determines that 
 33.27  the program can more effectively accomplish its purpose by 
 33.28  including children younger than 3-1/2 years old or sponsors such 
 33.29  a program. 
 33.30     Subd. 3.  [PROGRAM ELIGIBILITY COMPONENTS.] A school 
 33.31  readiness program must include the following: 
 33.32     (1) a comprehensive plan to anticipate and meet the needs 
 33.33  of participating families by coordinating existing social 
 33.34  services, health care, nutrition, child care, and other 
 33.35  community programs and by fostering collaboration among agencies 
 33.36  or other community-based organizations and programs that provide 
 34.1   a full range of flexible, family-focused services to families 
 34.2   with young children; 
 34.3      (2) a development and learning component to help children 
 34.4   develop appropriate social, cognitive, and physical skills, and 
 34.5   emotional well-being; 
 34.6      (3) health referral or health services to address 
 34.7   children's medical, dental, mental health, and nutritional 
 34.8   needs; 
 34.9      (4) a nutrition component to meet children's daily 
 34.10  nutritional needs; 
 34.11     (5) parents' family involvement and education in meeting 
 34.12  children's educational, health, social service, and other needs; 
 34.13     (6) community outreach to ensure participation by families 
 34.14  who represent the racial, cultural, and economic diversity of 
 34.15  the community; 
 34.16     (7) community-based staff and program resources, including 
 34.17  interpreters, that reflect the racial and ethnic characteristics 
 34.18  of the children participating in the program; and 
 34.19     (8) a literacy component to ensure that the literacy needs 
 34.20  of parents are addressed through referral to and cooperation 
 34.21  with adult basic education programs and other adult literacy 
 34.22  programs. 
 34.23     Subd. 4.  [PROGRAM GOALS.] School readiness programs are 
 34.24  encouraged to: 
 34.25     (1) prepare an individualized service plan to meet each 
 34.26  child's developmental and learning needs; 
 34.27     (2) provide parent education to increase parents' 
 34.28  knowledge, understanding, skills, and experience in child 
 34.29  development and learning; 
 34.30     (3) foster substantial parent involvement that may include 
 34.31  having parents develop curriculum or serve as a paid or 
 34.32  volunteer educator, resource person, or other staff; 
 34.33     (4) identify the needs of families in the content of the 
 34.34  child's school readiness and family literacy; 
 34.35     (5) expand collaboration with public organizations, 
 34.36  businesses, nonprofit organizations, or other private 
 35.1   organizations to develop a coordinated system of flexible, 
 35.2   family-focused services available to anticipate and meet the 
 35.3   full range of needs of all eligible children and their families; 
 35.4      (6) coordinate treatment and follow-up services for 
 35.5   children's identified physical and mental health problems; 
 35.6      (7) offer transportation for eligible children and their 
 35.7   families for whom other forms of transportation are unavailable 
 35.8   or would constitute an excessive financial burden; 
 35.9      (8) make substantial outreach efforts to assure significant 
 35.10  participation by families with the greatest needs, including 
 35.11  those families whose income level does not exceed the most 
 35.12  recent update of the poverty guidelines required by sections 652 
 35.13  and 673(2) of the Omnibus Budget Reconciliation Act of 1981 
 35.14  (Public Law Number 97-35); 
 35.15     (9) use community-based, trained home visitors serving as 
 35.16  paraprofessionals to provide social support, referrals, parent 
 35.17  education, and other services; 
 35.18     (10) create community-based family resource centers and 
 35.19  interdisciplinary teams; and 
 35.20     (11) enhance the quality of family or center-based child 
 35.21  care programs by providing supplementary services and resources, 
 35.22  staff training, and assistance with children with special needs. 
 35.23     (1) expand collaboration with public organizations, 
 35.24  businesses, nonprofit organizations, or other private 
 35.25  organizations to develop a coordinated system of flexible, 
 35.26  family-focused services available to anticipate and meet the 
 35.27  full range of needs of all eligible children and their families; 
 35.28     (2) make substantial outreach efforts to assure significant 
 35.29  participation by families with the greatest needs, including, 
 35.30  but not limited to, those families whose income level does not 
 35.31  exceed the exit level for MFIP participants as identified in 
 35.32  chapter 256; 
 35.33     (3) identify the needs of families in the context of the 
 35.34  child's school readiness and family literacy; 
 35.35     (4) enhance the quality of family or center-based child 
 35.36  care programs by providing outreach, supplementary services and 
 36.1   resources, staff training, and assistance with children with 
 36.2   special needs; 
 36.3      (5) prepare an individualized learning plan to meet each 
 36.4   child's developmental and learning needs to ensure progress 
 36.5   towards school readiness; 
 36.6      (6) foster substantial parent involvement that may include 
 36.7   having parents serve as paid or volunteer educators, resource 
 36.8   persons, or other staff; and 
 36.9      (7) provide parent education to increase parents' 
 36.10  knowledge, understanding, skills, and experience in child 
 36.11  development and learning. 
 36.12     Subd. 4a.  [STRATEGIES FOR ACHIEVING GOALS.] School 
 36.13  readiness programs are encouraged to: 
 36.14     (1) offer transportation for eligible children and their 
 36.15  families for whom other forms of transportation are unavailable 
 36.16  or would constitute an excessive financial burden; 
 36.17     (2) use community-based, trained home visitors serving as 
 36.18  paraprofessionals to provide social support, referrals, parent 
 36.19  education, staff development for child care providers, and other 
 36.20  services; 
 36.21     (3) create community-based family resource centers and 
 36.22  interdisciplinary teams; and 
 36.23     (4) coordinate treatment and follow-up services for 
 36.24  children's identified physical and mental health problems. 
 36.25     Subd. 5.  [SERVICES WITH NEW OR EXISTING PROVIDERS.] A 
 36.26  district is encouraged to may contract with a public, private, 
 36.27  or nonprofit organization to provide eligible children 
 36.28  developmentally appropriate services that meet the program 
 36.29  requirements in subdivision 3.  In the alternative, A district 
 36.30  may provide quality enhancement grants to reach a school 
 36.31  readiness level of quality under subdivision 11.  A district may 
 36.32  pay tuition or fees to place an eligible child in an existing 
 36.33  program.  A district may establish a new program where no 
 36.34  existing, reasonably accessible program meets the program 
 36.35  requirements in subdivision 3.  Services may be provided in a 
 36.36  site-based program or in the home of the child or a combination 
 37.1   of both.  The district may not restrict participation to 
 37.2   district residents.  
 37.3      Subd. 6.  [COORDINATION WITH OTHER PROVIDERS.] (a) The 
 37.4   district must coordinate the school readiness program with 
 37.5   existing community-based social services service providers, Head 
 37.6   Start, child care, and others and foster collaboration among 
 37.7   agencies and other community-based organizations and programs 
 37.8   that provide flexible, family-focused services to families with 
 37.9   children.  The district must actively encourage greater sharing 
 37.10  of information, responsibility, and accountability among service 
 37.11  providers and facilitate children's transition between 
 37.12  programs and to kindergarten.  
 37.13     (b) To the extent possible, resources must follow the 
 37.14  children so that children receive appropriate services in a 
 37.15  stable environment and are not moved from one program location 
 37.16  to another.  Where geographically feasible, the district must 
 37.17  actively promote colocating collaboration and integration of 
 37.18  services for children and their families. 
 37.19     Subd. 7.  [ADVISORY COUNCIL.] Each school readiness program 
 37.20  must have an advisory council composed of members of existing 
 37.21  early education-related boards, parents of participating 
 37.22  children, child care providers, representatives from Head Start 
 37.23  and early childhood and family education, if those programs are 
 37.24  offered in the district, culturally specific service 
 37.25  organizations, the local business community, health services 
 37.26  providers, local resource and referral agencies, and 
 37.27  representatives of early childhood service providers, and the 
 37.28  kindergarten through grade 12 system, and may include other 
 37.29  community-based organizations.  The council must advise the 
 37.30  board in creating and administering the program and must monitor 
 37.31  the progress of the program.  The council must ensure that 
 37.32  children at greatest risk receive appropriate services.  If the 
 37.33  board is unable to appoint to the advisory council members of 
 37.34  existing early education-related boards, it must appoint parents 
 37.35  of children enrolled in the program who represent the racial, 
 37.36  cultural, and economic diversity of the district and 
 38.1   representatives of early childhood service providers as 
 38.2   representatives to an existing advisory council. A majority of 
 38.3   council members must be parents participating in the program.  
 38.4   The council must advise the board in planning, developing, and 
 38.5   monitoring the program and in integrating service delivery with 
 38.6   other early childhood and family services within the community.  
 38.7   The council must assure that children at greatest risk receive 
 38.8   appropriate services.  In lieu of establishing a new or separate 
 38.9   advisory council, a board may appoint parents of children 
 38.10  enrolled in the program who represent the racial, cultural, and 
 38.11  economic diversity of the district and representatives of early 
 38.12  childhood service providers as representatives to an existing 
 38.13  advisory council with comparable purpose and function to fulfill 
 38.14  the responsibilities described in this subdivision. 
 38.15     Subd. 8.  [PRIORITIZING SERVICES.] (a) The district must 
 38.16  give greatest priority to providing services to eligible 
 38.17  children identified, through a means such as the early childhood 
 38.18  screening process, as being developmentally disadvantaged or 
 38.19  experiencing risk factors that could impede their school 
 38.20  readiness. 
 38.21     (b) As available funding increases substantially over the 
 38.22  fiscal year 2000 level, emphasis shall be given to strengthening 
 38.23  services for children birth to age 3-1/2 and the quality of 
 38.24  child care. 
 38.25     Subd. 9.  [CHILD RECORDS.] (a) A record of a child's 
 38.26  performance, progress, and development, and services received 
 38.27  must be maintained in the child's cumulative record while 
 38.28  enrolled in the school readiness program.  The cumulative record 
 38.29  must be used for the purpose of planning activities to suit 
 38.30  individual needs and shall become part of the child's permanent 
 38.31  record.  The cumulative record is private data under chapter 
 38.32  13.  Information in the record may be disseminated to an 
 38.33  educator or service provider only to the extent that that person 
 38.34  has a need to know the information.  
 38.35     (b) An educator or service provider may transmit 
 38.36  information in the child's cumulative record to an educator or 
 39.1   service provider in another program for young children when the 
 39.2   child applies to enroll in that other program including 
 39.3   kindergarten. 
 39.4      Subd. 10.  [SUPERVISION.] A program provided by a board 
 39.5   must be supervised by a licensed early childhood teacher, a 
 39.6   certified early childhood educator, or a licensed parent 
 39.7   educator.  A program provided according to a contract between a 
 39.8   district and a nonprofit organization or another private 
 39.9   organization must be supervised and staffed according to the 
 39.10  terms of the contract.  
 39.11     Subd. 11.  [DISTRICT STANDARDS.] The board of the district 
 39.12  must develop standards for the school readiness program that 
 39.13  reflect the eligibility criteria program components in 
 39.14  subdivision 3.  The board must consider including in the 
 39.15  standards the program characteristics in subdivision 4. 
 39.16     Subd. 12.  [PROGRAM FEES.] A district may adopt a sliding 
 39.17  fee schedule based on a family's income but must waive a fee for 
 39.18  a participant unable to pay.  The fees charged must be designed 
 39.19  to enable eligible children of all socioeconomic levels to 
 39.20  participate in the program. 
 39.21     Subd. 13.  [ADDITIONAL REVENUE.] A district or an 
 39.22  organization contracting with a district may receive money or 
 39.23  in-kind services from a public or private organization. 
 39.24     Subd. 14.  [ANNUAL REPORTING.] A district must report 
 39.25  annual program and participant data as defined by the 
 39.26  commissioner by August 15 for the school year ending June 30 of 
 39.27  the same calendar year.  A district's failure to report the 
 39.28  necessary data may result in withholding of future program funds.
 39.29     Sec. 43.  Minnesota Statutes 2000, section 124D.16, is 
 39.30  amended to read: 
 39.31     124D.16 [SCHOOL READINESS AID.] 
 39.32     Subdivision 1.  [PROGRAM REVIEW AND APPROVAL.] A school 
 39.33  district shall biennially by May 1 submit to the commissioners 
 39.34  of children, families, and learning and health the program plan 
 39.35  required under this subdivision.  As determined by the 
 39.36  commissioners, one-half of the districts shall first submit the 
 40.1   plan by May 1 of the 2000-2001 15 of the 2001-2002 school year 
 40.2   and one-half of the districts shall first submit the plan by May 
 40.3   1 of the 2001-2002 15 of the 2002-2003 school year.  The program 
 40.4   plan must include: 
 40.5      (1) a description of community needs assessment of children 
 40.6   birth to age five; 
 40.7      (2) a description of the services to be provided, including 
 40.8   services for children birth to age 3-1/2; 
 40.9      (2) (3) a plan to ensure children at greatest risk receive 
 40.10  appropriate services; 
 40.11     (3) (4) a description of procedures and methods to be used 
 40.12  to coordinate public and private resources to maximize use of 
 40.13  existing community resources, including school districts, child 
 40.14  care, Head Start, health care facilities services, government 
 40.15  agencies, neighborhood organizations, and other resources 
 40.16  knowledgeable in early childhood development; 
 40.17     (4) (5) comments about the district's proposed program by 
 40.18  the advisory council required by section 124D.15, subdivision 7; 
 40.19  and 
 40.20     (5) (6) agreements with all participating service providers.
 40.21     Each commissioner may review and comment on the program, 
 40.22  and make recommendations to the commissioner of children, 
 40.23  families, and learning, within 30 90 days of receiving the plan. 
 40.24     Subd. 1a.  [EVALUATION.] The commissioner, in consultation 
 40.25  with early childhood teachers, elementary school classroom 
 40.26  teachers, child care providers, Head Start educators, parent 
 40.27  educators, and teacher educators shall develop an evaluation 
 40.28  framework for qualifying school sites to use in documenting 
 40.29  results.  The evaluation must use empirical and qualitative 
 40.30  methods to gather information on the following:  
 40.31     (1) progress toward ensuring that every child entering 
 40.32  kindergarten has the knowledge and skills necessary to succeed 
 40.33  in school; 
 40.34     (2) an assessment of enrolling students by their teacher; 
 40.35  and 
 40.36     (3) measures of parental satisfaction and parental 
 41.1   involvement. 
 41.2   The commissioner shall assist a school site with its evaluation 
 41.3   at the request of the site.  
 41.4      Up to five percent of school readiness program aid may be 
 41.5   used for evaluation. 
 41.6      Subd. 2.  [AMOUNT OF AID.] (a) A district is eligible to 
 41.7   receive school readiness aid if the program plan as required by 
 41.8   subdivision 1 has been approved by the commissioner. 
 41.9      (b) For fiscal year 1998 2002 and thereafter, a district 
 41.10  must receive school readiness aid equal to: 
 41.11     (1) the number of eligible four-year old children in the 
 41.12  district on October 1 for the previous school year times the 
 41.13  ratio of 50 percent of the total school readiness aid for that 
 41.14  year to the total number of eligible four-year old children 
 41.15  reported to the commissioner for that the previous school year; 
 41.16  plus 
 41.17     (2) the number of pupils enrolled in the school district 
 41.18  from families eligible for the free or reduced school lunch 
 41.19  program for the second previous school year times the ratio of 
 41.20  50 percent of the total school readiness aid for that year to 
 41.21  the total number of pupils in the state from families eligible 
 41.22  for the free or reduced school lunch program for the second 
 41.23  previous school year. 
 41.24     Subd. 2a.  [AID GUARANTEE.] Notwithstanding subdivision 2, 
 41.25  for fiscal year 2002, any school readiness program qualifying 
 41.26  for aid under this section that receives less aid than in fiscal 
 41.27  year 2001 must receive additional aid equal to the difference 
 41.28  between the aid paid under section 124D.16, subdivision 2, 
 41.29  paragraph (b), clause (2), for fiscal year 2001 and the amount 
 41.30  of aid it is eligible for in fiscal year 2002 under section 
 41.31  124D.16, subdivision 2, paragraph (b), clause (2).  The aid 
 41.32  guarantee applies only to the aid for the free or reduced school 
 41.33  lunch program in section 124D.16, subdivision 2, paragraph (b), 
 41.34  clause (2).  
 41.35     Subd. 3.  [USE OF AID.] School readiness aid shall be used 
 41.36  only to provide a school readiness program and may be used to 
 42.1   provide transportation.  Aid used for instruction must be 
 42.2   targeted to children identified in section 124D.15, subdivision 
 42.3   8a.  Not more than five percent of the aid may be used for the 
 42.4   cost of administering the program.  Aid must be used to 
 42.5   supplement and not supplant local, state, and federal funding.  
 42.6   Aid may not be used for instruction and services required under 
 42.7   sections 125A.03 to 125A.24 and 125A.65. Aid may not be used to 
 42.8   purchase land or construct buildings, but may be used to lease 
 42.9   or renovate existing buildings. 
 42.10     Subd. 4.  [SEPARATE ACCOUNTS.] The district must deposit 
 42.11  school readiness aid in a separate account within the community 
 42.12  education fund.  
 42.13     Subd. 5.  [RESERVE ACCOUNTS.] (a) School readiness revenue, 
 42.14  which includes aids, fees, grants, and all other revenues 
 42.15  received by the district school readiness programs, must be 
 42.16  maintained in a reserve account within the community service 
 42.17  fund. 
 42.18     (b) The reserve account may not exceed 25 percent of the 
 42.19  annual school readiness revenue.  If a school district 
 42.20  anticipates that the amount in the reserve account may exceed 25 
 42.21  percent of the annual school readiness program revenue, prior 
 42.22  approval to exceed this amount must be obtained in writing from 
 42.23  the commissioner of children, families, and learning.  
 42.24     (c) If a deficit in the reserve account exists at the end 
 42.25  of a fiscal year, and the deficit is not eliminated by revenues 
 42.26  from operations in the next year, then the deficit must be 
 42.27  eliminated by a permanent fund transfer from the district's 
 42.28  general fund at the end of the second year. 
 42.29     (d) Notwithstanding paragraph (c), a district may incur a 
 42.30  deficit in the fund for up to three years without making the 
 42.31  permanent transfer if the district submits to the commissioner 
 42.32  by January 1 of the second fiscal year a plan for eliminating 
 42.33  the deficit at the end of the third fiscal year. 
 42.34     Subd. 6.  [ADJUSTMENT FOR UNUSED FUNDS.] A district that 
 42.35  has a school readiness reserve fund balance that exceeds 25 
 42.36  percent of the annual amount of revenue for the program shall 
 43.1   have the future allocations reduced accordingly.  This reduction 
 43.2   shall be made in the fiscal year that begins no more than 30 
 43.3   months after the excess occurs in the reserve account.  The 
 43.4   commissioner shall reallocate aid reduced under this provision 
 43.5   to other eligible school districts. 
 43.6      Sec. 44.  [INTERAGENCY AUTISM COORDINATING COMMITTEE.] 
 43.7      (a) The commissioner of children, families, and learning 
 43.8   shall establish an interagency committee to coordinate state 
 43.9   efforts related to servicing children with autism.  The 
 43.10  committee shall include representatives of the departments of 
 43.11  children, families, and learning and human services, parents or 
 43.12  guardians of children with autism, pediatricians, local public 
 43.13  health officials, and representatives of private or nonprofit 
 43.14  organizations that advocate on behalf of children with autism. 
 43.15     (b) The interagency autism coordinating committee shall 
 43.16  study and recommend by December 1, 2001, to the committees in 
 43.17  the legislature charged with early childhood through grade 12 
 43.18  education policy and finance matters a plan for improving 
 43.19  efforts at early assessment and identification of autism in 
 43.20  young children.  The plan must consider: 
 43.21     (1) all existing assessment program options; 
 43.22     (2) public and private funding sources, including 
 43.23  programmatic funding for early and periodic screening, 
 43.24  diagnosis, and treatment; and 
 43.25     (3) current research-based best practice models. 
 43.26  The plan must be designed to make optimal use of existing public 
 43.27  resources. 
 43.28     Sec. 45.  [ESTABLISHMENT OF EARLY CHILDHOOD CARE AND 
 43.29  EDUCATION SERVICES DEMONSTRATION PROJECTS.] 
 43.30     Subdivision 1.  [PURPOSE.] The purpose of the demonstration 
 43.31  projects is to implement a coordinated community system that 
 43.32  builds upon existing early childhood care and education services 
 43.33  to provide a full continuum of services for young children and 
 43.34  to collect the data necessary to measure outcomes and to develop 
 43.35  a statewide funding formula for distributing funds to individual 
 43.36  service sites.  The data must include, but is not limited to: 
 44.1      (1) the care and educational needs of children and how 
 44.2   those needs are assessed and measured; 
 44.3      (2) the type of services to provide that will improve 
 44.4   outcomes, including school readiness; and 
 44.5      (3) the most effective way to distribute public funds for 
 44.6   early childhood services. 
 44.7      Subd. 2.  [DEFINITIONS.] (a) "Approval board" means the 
 44.8   group composed of the county human services director, the 
 44.9   superintendent of schools, the public health director, the child 
 44.10  care resources and referral agency, Head Start grantees, or 
 44.11  their representatives. 
 44.12     (b) "Commissioner" means the commissioner of children, 
 44.13  families, and learning. 
 44.14     (c) "Community" means a county, a school district, a group 
 44.15  of school districts, a political subdivision, a service 
 44.16  cooperative, or a combination of any of these entities. 
 44.17     (d) "Early childhood care and education" means the services 
 44.18  available for children from birth to kindergarten coordinated by 
 44.19  local early childhood boards to fulfill the responsibilities 
 44.20  under this section. 
 44.21     (e) "Local early childhood board" means a group organized 
 44.22  under 501(c)(3) of the Internal Revenue Code and composed of one 
 44.23  member of the following groups, if they exist in the community: 
 44.24     (1) other early childhood education-related boards; 
 44.25     (2) three parents of children participating in programs at 
 44.26  qualified sites that represent the economic and ethnic diversity 
 44.27  of the community; 
 44.28     (3) licensed child care providers; 
 44.29     (4) early childhood education providers; 
 44.30     (5) health services providers; 
 44.31     (6) public or private nonprofit agencies serving youth and 
 44.32  families; 
 44.33     (7) the school board; 
 44.34     (8) the local teachers' union; and 
 44.35     (9) a representative from the state interagency committee. 
 44.36     (f) "Qualified site" means a physical location providing 
 45.1   early childhood care and education services that has been 
 45.2   approved by the local early childhood board according to 
 45.3   criteria under subdivision 6. 
 45.4      Subd. 3.  [DUTIES OF COMMISSIONER.] The commissioner shall 
 45.5   supervise the development of an integrated early childhood care 
 45.6   and education system by: 
 45.7      (1) selecting early childhood care and education 
 45.8   demonstration projects that model effective practices under this 
 45.9   section through a competitive process; 
 45.10     (2) defining outcomes and indicators for a local early 
 45.11  childhood care and education system based on current research; 
 45.12     (3) providing technical assistance to local approval boards 
 45.13  and approved demonstration projects; 
 45.14     (4) developing guidelines for community-based planning; 
 45.15     (5) distributing public funds to demonstration projects; 
 45.16     (6) establishing minimum administrative and service 
 45.17  guidelines and standards for local early childhood boards; 
 45.18     (7) collecting data necessary to determine factors 
 45.19  appropriate for formula-based funding of early childhood care 
 45.20  and education services on a statewide basis; 
 45.21     (8) establishing data systems to enable the collection and 
 45.22  analysis of data from a variety of public and private sources 
 45.23  and payments to individual sites on a statewide basis; and 
 45.24     (9) designing and implementing a method of monitoring and 
 45.25  evaluating early childhood care and education criteria and local 
 45.26  plans. 
 45.27     Subd. 4.  [GRANT APPLICATION OF APPROVAL BOARDS.] (a) A 
 45.28  community approval board may apply for a grant to establish a 
 45.29  demonstration project for overseeing the provision of early 
 45.30  childhood care and school readiness opportunities for every 
 45.31  child, birth to age five, in service areas where at least 35 
 45.32  percent of families are eligible for the free or reduced school 
 45.33  lunch program.  The applicant must include: 
 45.34     (1) designation by the approval board of a local early 
 45.35  childhood board that meets the requirements of subdivision 2, 
 45.36  paragraph (e); 
 46.1      (2) a description of how it will oversee the development of 
 46.2   a local early childhood care and education plan; 
 46.3      (3) the process the local early childhood board will use to 
 46.4   qualify a variety of sites that represent diverse delivery 
 46.5   systems within the grantee's available resources; and 
 46.6      (4) a plan to provide and integrate access to the following 
 46.7   services: 
 46.8      (i) child care; 
 46.9      (ii) comprehensive health and dental care for children 
 46.10  birth to age five; 
 46.11     (iii)_developmental assessment of children younger than age 
 46.12  three; 
 46.13     (iv) job opportunities for parents; 
 46.14     (v) decent, safe housing for families; 
 46.15     (vi) home visiting; and 
 46.16     (vii) birth kits for all infants born during the project 
 46.17  time frame. 
 46.18     (b) The commissioner shall consider geographic diversity 
 46.19  and shall give preference to applicants with: 
 46.20     (1) designated early childhood boards that represent 
 46.21  different and identifiable governance structures; 
 46.22     (2) approval boards with the broadest representation of 
 46.23  community partners identified in subdivision 2, paragraph (a); 
 46.24     (3) the capacity to qualify a variety of sites that 
 46.25  represent diverse delivery systems within the grantee's 
 46.26  available resources; 
 46.27     (4) a plan to involve public and private community 
 46.28  resources to strategically invest in early childhood care and 
 46.29  education services at the community level; and 
 46.30     (5) the capacity of the local early childhood board to 
 46.31  measure outcomes. 
 46.32     Subd. 5.  [DUTIES OF LOCAL EARLY CHILDHOOD BOARD.] (a) 
 46.33  Local early childhood boards must: 
 46.34     (1) assess the community's current capacity to address 
 46.35  early childhood care and education needs of children from birth 
 46.36  to kindergarten entrance; 
 47.1      (2) create and implement a program to qualify early 
 47.2   childhood care and education sites in its community according to 
 47.3   the criteria under subdivision 6; 
 47.4      (3) demonstrate the capacity to provide data necessary to 
 47.5   meet the requirements under subdivision 1; 
 47.6      (4) create an ongoing evaluation of each site in relation 
 47.7   to outcomes for children and families; 
 47.8      (5) provide an appropriate public forum in the community to 
 47.9   evaluate whether a qualified early childhood care and education 
 47.10  site continues to meet the criteria under subdivision 6; 
 47.11     (6) revoke the qualification of a site that fails to meet 
 47.12  the criteria under subdivision 6; and 
 47.13     (7) collect data and submit reports related to risk 
 47.14  factors, including, but not limited to: 
 47.15     (i) families and children living in poverty; 
 47.16     (ii) families whose income is 50 percent or less of the 
 47.17  state median income; 
 47.18     (iii) families receiving assistance from the Minnesota 
 47.19  family investment program; 
 47.20     (iv) children who first learned a language other than 
 47.21  English, come from a home where the language usually spoken is 
 47.22  other than English, or usually speak a language other than 
 47.23  English; 
 47.24     (v) families identifying themselves in an ethnic or racial 
 47.25  community other than that which represents the majority of the 
 47.26  state; 
 47.27     (vi) mothers who lack literacy competency as demonstrated 
 47.28  by the absence of a GED or high school diploma; and 
 47.29     (vii) children exhibiting a health or developmental 
 47.30  condition identified as requiring referral and follow-up 
 47.31  services. 
 47.32     (b) Local early childhood boards must report the number of 
 47.33  children or families exhibiting each risk factor who: 
 47.34     (1) are served through the demonstration project; 
 47.35     (2) reside in the area served in the qualifying site; and 
 47.36     (3) reside in the community. 
 48.1      (c) Local early childhood boards must report on types of 
 48.2   overview provided in categories designated by the commissioner 
 48.3   and must take maximum advantage of all other state and federal 
 48.4   funds available for child care. 
 48.5      Subd. 6.  [CRITERIA FOR QUALIFIED SITES.] A qualified site 
 48.6   must meet the following criteria: 
 48.7      (1) the site must be a licensed, nonprofit organization, 
 48.8   except for family child care sites, child care centers, or 
 48.9   school districts; and 
 48.10     (2) the learning environment must be developmentally and 
 48.11  linguistically appropriate, taking into account children's 
 48.12  individual rates of development and interests, temperaments, 
 48.13  cultural backgrounds, and learning styles. 
 48.14     Subd. 7.  [LOCAL PLAN.] The local early childhood board of 
 48.15  each demonstration project shall submit a local early childhood 
 48.16  care and education plan to the commissioner and shall update the 
 48.17  plan annually.  The plan must include: 
 48.18     (1) a description of the services to be provided in the 
 48.19  community and their relationship to the needs of the population; 
 48.20     (2) a description of the strategies to ensure that children 
 48.21  at greatest risk receive appropriate services; 
 48.22     (3) a description of procedures and methods used to 
 48.23  coordinate public and private resources and maximize use of 
 48.24  existing community resources including, but not limited to, 
 48.25  school districts, health care facilities, child care providers, 
 48.26  government agencies, and neighborhood organizations; 
 48.27     (4) a data-set including, but not limited to, the number 
 48.28  and type of qualified sites in the community, the demographic 
 48.29  information of children served at all qualified sites, the 
 48.30  income levels of the families of all children served, the 
 48.31  community of origin of all children served, and the salaries of 
 48.32  all early child care and education providers; and 
 48.33     (5) agreements with all participating service providers. 
 48.34     Subd. 8.  [REPORTING BY QUALIFIED SITES.] Beginning in 
 48.35  calendar year 2003, each qualified site that receives funding 
 48.36  shall submit to the commissioner data required by the 
 49.1   commissioner. 
 49.2      Subd. 9.  [REVIEW OF ADMINISTRATIVE REQUIREMENTS.] The 
 49.3   commissioner shall, as requested by local early childhood 
 49.4   boards, review laws under the jurisdiction of the commissioner.  
 49.5   The commissioner shall also review rule requirements and, with 
 49.6   the approval of the board of government innovation and 
 49.7   cooperation under Minnesota Statutes, section 465.796, may waive 
 49.8   burdensome rule requirements if statutory and rule requirements 
 49.9   can be met in another way and the waiver simplifies or 
 49.10  consolidates program requirements or funding, or emphasizes 
 49.11  outcomes rather than procedures.  In determining the 
 49.12  reasonableness of the requirements, the commissioner shall 
 49.13  consider the needs the service was developed to address and the 
 49.14  adequacy of the federal, state, and local funding available to 
 49.15  provide the service.  The waiver authority under this 
 49.16  subdivision does not permit the commissioner to waive rule 
 49.17  requirements involving:  client protections; due process; 
 49.18  inclusion of clients, parents, cultures, and ethnicity in 
 49.19  decision making; or requirements of federal laws or rules. 
 49.20     Subd. 10.  [DISTRIBUTION OF GRANT FUNDS.] The commissioner 
 49.21  must distribute $150,000 in fiscal year 2003 to each 
 49.22  demonstration project for planning, and collection and analysis 
 49.23  of data necessary to measure outcomes and to develop a funding 
 49.24  formula.  Direct service funds must be distributed to each 
 49.25  project as follows: 
 49.26     (1) a base amount of $100,000 to each project; 
 49.27     (2) 60 percent of the remaining funds must be allocated 
 49.28  based on actual population of children birth to age five; and 
 49.29     (3) 40 percent of the remaining funds must be allocated 
 49.30  based on the percentage of children living in poverty. 
 49.31     The grant agreement with each project must identify 
 49.32  available planning and direct service funds and a local fiscal 
 49.33  agent.  Planning funds must be available at the start of the 
 49.34  grant agreement.  Direct service funds must be available six 
 49.35  months after execution of the grant agreement. 
 49.36     The commissioner may make payments to each demonstration 
 50.1   project in quarterly installments.  The commissioner may certify 
 50.2   an advance up to 25 percent of the allocation.  Subsequent 
 50.3   payments shall be made on a reimbursement basis for reported 
 50.4   expenditures and may be adjusted for anticipated spending 
 50.5   patterns.  
 50.6      Sec. 46.  [STUDY ON IMPLEMENTING AN INTEGRATED EARLY 
 50.7   CHILDHOOD SERVICES SYSTEM.] 
 50.8      Subdivision 1.  [PURPOSE.] The commissioner of children, 
 50.9   families, and learning shall develop a plan to implement an 
 50.10  early childhood care and education services system for children 
 50.11  birth to age five that: 
 50.12     (1) establishes community control and decision making; 
 50.13     (2) eliminates separate funding streams for early childhood 
 50.14  programs; and 
 50.15     (3) bases revenue on the number and type of service hours 
 50.16  delivered and the cost per child of delivering those services.  
 50.17     Subd. 2.  [TASK FORCE.] (a) The commissioner shall convene 
 50.18  a task force to study issues related to this plan with the 
 50.19  following membership: 
 50.20     (1) three members of the Minnesota house of 
 50.21  representatives, appointed by the speaker of the house, with two 
 50.22  from the majority party and one from the largest minority party; 
 50.23     (2) three members of the Minnesota senate, appointed by the 
 50.24  subcommittee on committees of the committee on rules and 
 50.25  administration, with two from the majority party and one from 
 50.26  the largest minority party; 
 50.27     (3) five members appointed by the commissioner; and 
 50.28     (4) five representatives of early childhood interests. 
 50.29     (b) Each appointing authority shall use all possible 
 50.30  efforts to create a geographical balance among the membership in 
 50.31  order to represent all regional interests of the state.  The 
 50.32  task force shall study and make detailed recommendations 
 50.33  regarding: 
 50.34     (1) a local governance structure to oversee delivery of 
 50.35  services; 
 50.36     (2) establishing research-based care and educational 
 51.1   criteria for sites; 
 51.2      (3) methods of distributing funds to service providers and 
 51.3   parents; 
 51.4      (4) integrating early childhood health and development 
 51.5   screening; 
 51.6      (5) methods and types of data collection; 
 51.7      (6) identifying key components of an effective birth to age 
 51.8   five program; 
 51.9      (7) flexible service delivery options, including a 
 51.10  mechanism to allow for consumer feedback; 
 51.11     (8) methods of providing training, technical assistance, 
 51.12  and other support services for local governance structures to 
 51.13  assist in needs assessment, planning, implementing, and 
 51.14  monitoring early childhood services in the communities; 
 51.15     (9) designing a format for ongoing evaluation of early 
 51.16  childhood sites in relation to outcomes for children and 
 51.17  families; and 
 51.18     (10) establishing guidelines for community-based planning. 
 51.19     (c) The task force shall study the issues identified in 
 51.20  paragraph (b), and any other issue requested by the commissioner.
 51.21     Subd. 3.  [REPORT.] The task force shall issue a report on 
 51.22  the issues and recommendations under subdivision 2 by June 30, 
 51.23  2004, to the senate and house committees with jurisdiction over 
 51.24  early childhood education. 
 51.25     Subd. 4.  [EXPIRATION.] This section expires when the task 
 51.26  force submits its final report to the legislature. 
 51.27     Sec. 47.  [ADDITIONAL EARLY CHILDHOOD FAMILY EDUCATION AID; 
 51.28  FISCAL YEAR 2002.] 
 51.29     A district that complies with Minnesota Statutes, section 
 51.30  124D.13, shall receive additional early childhood family 
 51.31  education aid for fiscal year 2002 equal to $5.60 times the 
 51.32  greater of: 
 51.33     (1) 150; or 
 51.34     (2) the number of people under five years of age residing 
 51.35  in the school district on October 1 of the previous school 
 51.36  year.  The additional early childhood family education aid may 
 52.1   be used only for early childhood family education programs. 
 52.2      Sec. 48.  [APPROPRIATIONS.] 
 52.3      Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
 52.4   LEARNING.] The sums indicated in this section are appropriated 
 52.5   from the general fund to the department of children, families, 
 52.6   and learning for the fiscal years designated.  
 52.7      Subd. 2.  [SCHOOL READINESS PROGRAM REVENUE.] For revenue 
 52.8   for school readiness programs according to Minnesota Statutes, 
 52.9   sections 124D.15 and 124D.16: 
 52.10       $12,195,000     .....     2002
 52.11       $12,395,000     .....     2003
 52.12     The 2002 appropriation includes $1,039,000 for 2001 and 
 52.13  $11,156,000 for 2002. 
 52.14     The 2003 appropriation includes $1,240,000 for 2002 and 
 52.15  $11,155,000 for 2003.  
 52.16     Subd. 3.  [EARLY CHILDHOOD FAMILY EDUCATION AID.] For early 
 52.17  childhood family education aid according to Minnesota Statutes, 
 52.18  section 124D.135: 
 52.19       $22,558,000     .....     2002 
 52.20       $22,663,000     .....     2003 
 52.21     The 2002 appropriation includes $2,036,000 for 2001 and 
 52.22  $20,522,000 for 2002.  
 52.23     The 2003 appropriation includes $2,280,000 for 2002 and 
 52.24  $20,383,000 for 2003.  
 52.25     Subd. 4.  [HEALTH AND DEVELOPMENTAL SCREENING AID.] For 
 52.26  health and developmental screening aid according to Minnesota 
 52.27  Statutes, sections 121A.17 and 121A.19: 
 52.28       $2,661,000     .....     2002 
 52.29       $5,368,000     .....     2003 
 52.30     The 2002 appropriation includes $266,000 for 2001 and 
 52.31  $2,395,000 for 2002.  
 52.32     The 2003 appropriation includes $266,000 for 2002 and 
 52.33  $5,102,000 for 2003.  
 52.34     Subd. 5.  [EARLY CHILDHOOD CARE AND EDUCATION SERVICES 
 52.35  DEMONSTRATION PROJECTS.] For demonstration projects under 
 52.36  section 45: 
 53.1          $575,000   .....     2002
 53.2        $1,225,000   .....     2003
 53.3      Each demonstration project must receive $150,000 each year 
 53.4   for planning purposes. 
 53.5      Any balance in the first year does not cancel but is 
 53.6   available in the second year. 
 53.7      Subd. 6.  [HEAD START PROGRAM.] For Head Start programs 
 53.8   according to Minnesota Statutes, section 119A.52: 
 53.9        $20,743,000     .....     2002
 53.10       $21,117,000     .....     2003
 53.11     $2,000,000 each year may be used for full-year programming 
 53.12  for children birth to age three.  Any balance in the first year 
 53.13  does not cancel but is available in the second year. 
 53.14     Subd. 7.  [SCHOOL-AGE CHILD CARE.] For extended day aid 
 53.15  according to Minnesota Statutes, section 124D.22: 
 53.16       $221,000     .....     2002 
 53.17       $133,000     .....     2003
 53.18     The 2002 appropriation includes $30,000 for 2001 and 
 53.19  $191,000 for 2002. 
 53.20     The 2003 appropriation includes $21,000 for 2002 and 
 53.21  $112,000 for 2003. 
 53.22     Subd. 8.  [CONSOLIDATED CHILD CARE ASSISTANCE.] For child 
 53.23  care assistance according to Minnesota Statutes, sections 
 53.24  119B.011 to 119B.16: 
 53.25       $144,296,000     .....     2002 
 53.26       $141,337,000     .....     2003 
 53.27     These appropriations are available to be spent in either 
 53.28  year. 
 53.29     Subd. 9.  [CHILD CARE INTEGRITY.] For the administrative 
 53.30  costs of program integrity and fraud prevention for child care 
 53.31  assistance under chapter 119B: 
 53.32       $25,000     .....     2002 
 53.33       $25,000     .....     2003 
 53.34     Any balance in the first year does not cancel but is 
 53.35  available in the second year. 
 53.36     Subd. 10.  [CHILD CARE SERVICES GRANTS.] For child care 
 54.1   services grants according to Minnesota Statutes, section 119B.21:
 54.2        $2,015,000     .....     2002
 54.3        $2,015,000     .....     2003
 54.4      Any balance in the first year does not cancel but is 
 54.5   available in the second year. 
 54.6      Subd. 11.  [CHILD CARE IMPROVEMENT GRANTS.] For child care 
 54.7   improvement grants according to Minnesota Statutes, section 
 54.8   119B.25: 
 54.9        $500,000     .....     2002
 54.10     Subd. 12.  [CHILD CARE MARKET RATE SURVEYS.] For child care 
 54.11  market rate surveys according to Minnesota Statutes, section 
 54.12  119B.13, subdivision 1: 
 54.13       $3,000     .....     2002
 54.14     Subd. 13.  [TEACH GRANTS.] For TEACH grants according to 
 54.15  Minnesota Statutes, section 119B.221: 
 54.16       $1,000,000     .....     2002
 54.17       $1,000,000     .....     2003
 54.18     This amount must be matched with private funds on a 
 54.19  one-to-one basis. 
 54.20     Subd. 14.  [AT-HOME INFANT CHILD CARE PROGRAM.] For the 
 54.21  at-home infant child care program under Minnesota Statutes, 
 54.22  section 119B.061: 
 54.23       $1,000,000     .....     2002
 54.24       $1,000,000     .....     2003
 54.25     Any amount remaining in fiscal years 2002 and 2003 that is 
 54.26  not needed for the at-home infant child care program must be 
 54.27  used for child care assistance under Minnesota Statutes, section 
 54.28  119B.03, subdivision 3a.  If the commissioner determines that 
 54.29  the department will not be able to meet the child care and 
 54.30  development fund match and maintenance of effort requirements 
 54.31  without the funds appropriated in this subdivision, the 
 54.32  commissioner may move the necessary amount of funds from this 
 54.33  appropriation into the appropriation for the consolidated child 
 54.34  care program. 
 54.35     Sec. 49.  [FEDERAL TANF TRANSFERS.] 
 54.36     Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
 55.1   LEARNING.] The sums indicated in this section are transferred 
 55.2   from the federal TANF fund to the child care and development 
 55.3   fund and appropriated to the department of children, families, 
 55.4   and learning for the fiscal years designated.  The commissioner 
 55.5   shall ensure that all transferred funds are expended in 
 55.6   accordance with the child care and development fund regulations 
 55.7   and that the maximum allowable transferred funds are used for 
 55.8   the programs in this section. 
 55.9      Subd. 2.  [CONSOLIDATED CHILD CARE ASSISTANCE.] For child 
 55.10  care assistance according to Minnesota Statutes, sections 
 55.11  119B.011 to 119B.16:  
 55.12       $21,229,000    .....     2002 
 55.13       $16,737,000    .....     2003 
 55.14     Sec. 50.  [REVISOR INSTRUCTION.] 
 55.15     In the next and subsequent editions of Minnesota Statutes 
 55.16  and Minnesota Rules, the revisor shall renumber Minnesota 
 55.17  Statutes, section 119B.05, subdivisions 4 and 5, as Minnesota 
 55.18  Statutes, section 119B.03, subdivisions 11 and 12, and make 
 55.19  necessary cross-reference changes consistent with the 
 55.20  renumbering. 
 55.21     Sec. 51.  [REPEALER.] 
 55.22     Minnesota Statutes 2000, sections 119B.011, subdivision 20; 
 55.23  119B.03, subdivisions 1, 2, 4, 5, 6, 6a, and 8; 119B.05, 
 55.24  subdivision 1; 119B.07; 119B.09, subdivision 3; and 119B.11, 
 55.25  subdivision 4, are repealed. 
 55.26                             ARTICLE 2 
 55.27                             PREVENTION 
 55.28     Section 1.  Minnesota Statutes 2000, section 119A.12, is 
 55.29  amended by adding a subdivision to read: 
 55.30     Subd. 4.  [AUTHORITY TO DISBURSE FUNDS.] The commissioner 
 55.31  may disburse trust fund money to any public or private nonprofit 
 55.32  agency to fund a child abuse prevention program.  State funds 
 55.33  appropriated for child maltreatment prevention grants may be 
 55.34  transferred to the children's trust fund special revenue account 
 55.35  and are available to carry out this section. 
 55.36     Sec. 2.  Minnesota Statutes 2000, section 119A.12, is 
 56.1   amended by adding a subdivision to read: 
 56.2      Subd. 5.  [PLAN FOR DISBURSEMENT OF FUNDS.] The 
 56.3   commissioner shall develop a plan to disburse money from the 
 56.4   trust fund.  The plan must ensure that all geographic areas of 
 56.5   the state have an equal opportunity to establish prevention 
 56.6   programs and receive trust fund money. 
 56.7      Sec. 3.  Minnesota Statutes 2000, section 119A.12, is 
 56.8   amended by adding a subdivision to read: 
 56.9      Subd. 6.  [OPERATIONAL COSTS.] $120,000 each year is 
 56.10  appropriated from the children's trust fund to the special 
 56.11  revenue fund for administration and indirect costs of the 
 56.12  children's trust fund program. 
 56.13     Sec. 4.  Minnesota Statutes 2000, section 119A.13, 
 56.14  subdivision 4, is amended to read: 
 56.15     Subd. 4.  [RESPONSIBILITIES OF COMMISSIONER.] (a) The 
 56.16  commissioner shall: 
 56.17     (1) provide for the coordination and exchange of 
 56.18  information on the establishment and maintenance of prevention 
 56.19  programs; 
 56.20     (2) develop and publish criteria for receiving trust fund 
 56.21  money by prevention programs; 
 56.22     (3) review, approve, and monitor the spending of trust fund 
 56.23  money by prevention programs; 
 56.24     (4) provide statewide educational and public informational 
 56.25  seminars to develop public awareness on preventing child abuse; 
 56.26  to encourage professional persons and groups to recognize 
 56.27  instances of child abuse and work to prevent them; to make 
 56.28  information on child abuse prevention available to the public 
 56.29  and to organizations and agencies; and to encourage the 
 56.30  development of prevention programs, including programs that 
 56.31  provide support for adolescent parents, fathering education 
 56.32  programs, and other prevention activities designed to prevent 
 56.33  teen pregnancy; 
 56.34     (5) establish a procedure for an annual, internal 
 56.35  evaluation of the functions, responsibilities, and performance 
 56.36  of the commissioner in carrying out Laws 1986, chapter 423; 
 57.1      (6) provide technical assistance to local councils and 
 57.2   agencies working in the area of child abuse prevention; and 
 57.3      (7) accept and review grant applications beginning June 1, 
 57.4   1987. 
 57.5      (b) The commissioner shall recommend to the governor 
 57.6   changes in state programs, statutes, policies, budgets, and 
 57.7   standards that will reduce the problems of child abuse, improve 
 57.8   coordination among state agencies that provide prevention 
 57.9   services, and improve the condition of children, parents, or 
 57.10  guardians in need of prevention program services. 
 57.11     Sec. 5.  Minnesota Statutes 2000, section 119A.21, is 
 57.12  amended to read: 
 57.13     119A.21 [GRANTS TO SERVICE PROVIDER PROGRAMS.] 
 57.14     Subdivision 1.  [GRANTS AWARDED.] The commissioner shall 
 57.15  award grants to programs which that provide abused children 
 57.16  services to abused or neglected children.  Grants shall be 
 57.17  awarded in a manner that ensures that they are equitably 
 57.18  distributed to programs serving metropolitan and nonmetropolitan 
 57.19  populations.  
 57.20     Subd. 2.  [APPLICATIONS.] Any public or private nonprofit 
 57.21  agency may apply to the commissioner for a grant to provide 
 57.22  abused children services.  The application shall be submitted in 
 57.23  on a form approved prescribed by the commissioner after 
 57.24  consultation with the abused children advisory council and shall 
 57.25  include:.  
 57.26     (1) a proposal for the provision of abused children 
 57.27  services to, or on behalf of, abused children, children at risk, 
 57.28  and their families; 
 57.29     (2) a proposed budget; 
 57.30     (3) evidence of ability to represent the interests of 
 57.31  abused children and their families to local law enforcement 
 57.32  agencies and courts, social services, and health agencies; 
 57.33     (4) evidence of ability to do outreach to unserved and 
 57.34  underserved populations and to provide culturally and 
 57.35  linguistically appropriate services; and 
 57.36     (5) any other information the commissioner may require by 
 58.1   policy or by rule adopted under chapter 14, after considering 
 58.2   the recommendations of the abused children advisory council.  
 58.3      Programs which have been approved for grants in prior years 
 58.4   may submit materials which indicate changes in items listed in 
 58.5   clauses (1) to (5), in order to qualify for renewal funding.  
 58.6   Nothing in this subdivision may be construed to require programs 
 58.7   to submit complete applications for each year of funding.  
 58.8      Subd. 3.  [DUTIES.] Every public or private nonprofit 
 58.9   agency which receives a grant under this section to provide 
 58.10  abused children services shall comply with all requirements of 
 58.11  the commissioner related to the administration of the grants.  
 58.12     Subd. 4.  [CLASSIFICATION OF DATA COLLECTED BY GRANTEES.] 
 58.13  Personal history information and other information collected, 
 58.14  used, or maintained by a grantee from which the identity of any 
 58.15  abused child or family members may be determined is private data 
 58.16  on individuals as defined in section 13.02, subdivision 12, and 
 58.17  the grantee shall maintain the data in accordance with 
 58.18  provisions of chapter 13. 
 58.19     Sec. 6.  Minnesota Statutes 2000, section 119A.22, is 
 58.20  amended to read: 
 58.21     119A.22 [DUTIES OF THE COMMISSIONER.] 
 58.22     The commissioner shall:  
 58.23     (1) review applications and award grants to programs 
 58.24  pursuant to section 119A.21 after considering the recommendation 
 58.25  of the abused children advisory council; 
 58.26     (2) appoint members of the abused children advisory council 
 58.27  created under section 119A.23 and provide consultative staff and 
 58.28  other administrative services to the council; 
 58.29     (3) after considering the recommendation of the abused 
 58.30  children advisory council, appoint a program director to perform 
 58.31  the duties set forth in this clause.  In appointing the program 
 58.32  director the commissioner shall give due consideration to the 
 58.33  list of applicants submitted to the commissioner pursuant to 
 58.34  this section.  The program director shall administer the funds 
 58.35  appropriated for sections 119A.20 to 119A.23, consult with and 
 58.36  provide staff to the advisory council and perform other duties 
 59.1   related to abused children's programs as the commissioner may 
 59.2   assign; 
 59.3      (4) design a uniform method of collecting data on abused 
 59.4   children's programs to be used to monitor and assure compliance 
 59.5   of the programs funded under section 119A.21; 
 59.6      (5) (3) provide technical aid assistance to applicants in 
 59.7   the development of grant requests and to programs grantees in 
 59.8   meeting the data collection requirements established by the 
 59.9   commissioner; and 
 59.10     (6) (4) adopt, under chapter 14, all rules necessary to 
 59.11  implement the provisions of sections 119A.20 to 119A.23.  
 59.12     Sec. 7.  [119A.35] [ADVISORY COUNCIL.] 
 59.13     Subdivision 1.  [GENERALLY.] The advisory council is 
 59.14  established under section 15.059 to advise the commissioner on 
 59.15  the implementation and continued operations of sections 119A.10 
 59.16  to 119A.16 and 119A.20 to 119A.22.  The council shall expire 
 59.17  June 30, 2005. 
 59.18     Subd. 2.  [COUNCIL MEMBERSHIP.] The council shall consist 
 59.19  of a total of 22 members.  The governor shall appoint 18 of 
 59.20  these members.  The commissioners of human services and health 
 59.21  shall each appoint one member.  The senate shall appoint one 
 59.22  member from the senate committee with jurisdiction over family 
 59.23  and early childhood education and the house of representatives 
 59.24  shall appoint one member from the house committee with 
 59.25  jurisdiction over family and early childhood education. 
 59.26     Council members shall have knowledge in the areas of child 
 59.27  abuse and neglect prevention, and knowledge of the risk factors 
 59.28  that can lead to child abuse and neglect.  Council members shall 
 59.29  be representative of local government, criminal justice, 
 59.30  parents, consumers of services, health and human services 
 59.31  professionals, faith communities, professional and volunteer 
 59.32  providers of child abuse and neglect prevention services, racial 
 59.33  and ethnic minority communities, and the demographic and 
 59.34  geographic composition of the state.  Ten council members shall 
 59.35  reside in the seven-county metropolitan area and eight shall 
 59.36  reside in nonmetropolitan areas. 
 60.1      Subd. 3.  [RESPONSIBILITIES.] The council shall: 
 60.2      (1) advise the commissioner on planning, policy 
 60.3   development, data collection, rulemaking, funding, and 
 60.4   evaluation of the programs under the sections listed in 
 60.5   subdivision 1; 
 60.6      (2) coordinate and exchange information on the 
 60.7   establishment and ongoing operation of the programs listed in 
 60.8   subdivision 1; 
 60.9      (3) develop and publish criteria and guidelines for 
 60.10  receiving grants relating to child abuse and neglect prevention 
 60.11  and safety and support of child victims, including, but not 
 60.12  limited to, funds dedicated to the children's trust fund and 
 60.13  abused children program; 
 60.14     (4) provide guidance in the development of statewide 
 60.15  education and public information activities that increase public 
 60.16  awareness in the prevention and intervention of child abuse and 
 60.17  neglect and encourage the development of prevention and 
 60.18  intervention programs, which includes the safety of child 
 60.19  victims; 
 60.20     (5) guide, analyze, and disseminate results in the 
 60.21  development of appropriate evaluation procedures for all 
 60.22  programs receiving funds under subdivision 1; and 
 60.23     (6) assist the commissioner in identifying service gaps or 
 60.24  duplication in services, including geographic dispersion of 
 60.25  resources, programs reflecting the cycle of child abuse, and the 
 60.26  availability of culturally appropriate intervention and 
 60.27  prevention services. 
 60.28     Sec. 8.  Minnesota Statutes 2000, section 124D.221, 
 60.29  subdivision 1, is amended to read: 
 60.30     Subdivision 1.  [ESTABLISHMENT.] A competitive statewide 
 60.31  after-school enrichment grant program is established to provide 
 60.32  implementation grants to community or nonprofit organizations, 
 60.33  to political subdivisions, or to school-based programs.  A 
 60.34  community or nonprofit organization must be a charitable 
 60.35  organization under section 501(c)(3) of the Internal Revenue 
 60.36  Code of 1986 and registered with the attorney general's office.  
 61.1   The commissioner shall develop criteria for after-school 
 61.2   enrichment programs. 
 61.3      Sec. 9.  Minnesota Statutes 2000, section 124D.221, 
 61.4   subdivision 2, is amended to read: 
 61.5      Subd. 2.  [PRIORITY NEIGHBORHOODS.] (a) The commissioner 
 61.6   must give priority to applicants who: 
 61.7      (1) demonstrate a match of $1 of nonstate funding for each 
 61.8   $1 of the grant amount awarded for the implementation of an 
 61.9   after-school enrichment program.  For the purposes of this 
 61.10  clause, the nonstate match may include the fair market value of 
 61.11  an in-kind contribution of facility space; and 
 61.12     (2) establish an accountability system that sets measurable 
 61.13  goals and outcomes that support academic achievement, school 
 61.14  attendance, a reduction in suspensions, and assesses 
 61.15  participants' progress on these measures annually. 
 61.16     (b) For grants in Minneapolis and St. Paul, the 
 61.17  commissioner must give first priority to neighborhoods in this 
 61.18  subdivision paragraph and second priority according to paragraph 
 61.19  (a), clause (1).  In Minneapolis, priority neighborhoods are 
 61.20  Near North, Hawthorne, Sumner-Glenwood, Harrison, Jordan, 
 61.21  Powderhorn, Central, Whittier, Cleveland, McKinley, Waite Park, 
 61.22  Sheridan, Holland, Lyndale, Folwell, and Phillips.  In St. Paul, 
 61.23  priority neighborhoods are Summit-University, Thomas-Dale, North 
 61.24  End, Payne-Phalen, Daytons Bluff, and the West Side. 
 61.25     Sec. 10.  [APPROPRIATIONS.] 
 61.26     Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
 61.27  LEARNING.] The sums indicated in this section are appropriated 
 61.28  from the general fund, unless otherwise indicated, to the 
 61.29  department of children, families, and learning for the fiscal 
 61.30  years designated. 
 61.31     Subd. 2.  [FAMILY SERVICES COLLABORATIVES.] For family 
 61.32  services collaboratives according to Laws 1995, First Special 
 61.33  Session chapter 3, article 4, section 29, subdivision 10: 
 61.34       $1,477,000     .....     2002
 61.35         $863,000     .....     2003
 61.36     No new family services collaboratives shall be funded with 
 62.1   this appropriation after June 30, 1999. 
 62.2      Any balance in the first year does not cancel but is 
 62.3   available in the second year. 
 62.4      Subd. 3.  [COMMUNITY EDUCATION AID.] For community 
 62.5   education aid according to Minnesota Statutes, section 124D.20: 
 62.6        $14,209,000    .....     2002 
 62.7        $13,111,000    .....     2003 
 62.8      The 2002 appropriation includes $1,528,000 for 2001 and 
 62.9   $12,681,000 for 2002.  
 62.10     The 2003 appropriation includes $1,409,000 for 2002 and 
 62.11  $11,702,000 for 2003.  
 62.12     Any balance in the first year does not cancel but is 
 62.13  available in the second year. 
 62.14     Subd. 4.  [ADULTS WITH DISABILITIES PROGRAM AID.] For 
 62.15  adults with disabilities programs according to Minnesota 
 62.16  Statutes, section 124D.56: 
 62.17       $710,000       .....     2002 
 62.18       $710,000       .....     2003 
 62.19     Any balance in the first year does not cancel but is 
 62.20  available in the second year. 
 62.21     Subd. 5.  [HEARING-IMPAIRED ADULTS.] For programs for 
 62.22  hearing-impaired adults according to Minnesota Statutes, section 
 62.23  124D.57: 
 62.24       $70,000        .....     2002
 62.25       $70,000        .....     2003
 62.26     Any balance in the first year does not cancel but is 
 62.27  available in the second year. 
 62.28     Subd. 6.  [VIOLENCE PREVENTION EDUCATION GRANTS.] For 
 62.29  violence prevention education grants according to Minnesota 
 62.30  Statutes, section 120B.23: 
 62.31       $1,450,000     .....     2002
 62.32       $1,450,000     .....     2003
 62.33     Any balance in the first year does not cancel but is 
 62.34  available in the second year. 
 62.35     Subd. 7.  [ABUSED CHILDREN.] For abused children programs 
 62.36  according to Minnesota Statutes, section 119A.21: 
 63.1        $945,000       .....     2002 
 63.2        $945,000       .....     2003 
 63.3      Any balance in the first year does not cancel but is 
 63.4   available in the second year. 
 63.5      Subd. 8.  [CHILDREN'S TRUST FUND.] For children's trust 
 63.6   fund according to Minnesota Statutes, sections 119A.12 and 
 63.7   119A.13: 
 63.8        $875,000       .....     2002
 63.9        $875,000       .....     2003
 63.10     Of this amount, $400,000 each year is for the adolescent 
 63.11  parenting program according to Minnesota Statutes, section 
 63.12  124D.331; and $250,000 each year is for male responsibility 
 63.13  grants according to Minnesota Statutes, section 124D.33. 
 63.14     Any balance in the first year does not cancel but is 
 63.15  available in the second year. 
 63.16     Subd. 9.  [FAMILY VISITATION CENTERS.] (a) For family 
 63.17  visitation centers according to Minnesota Statutes, section 
 63.18  119A.37: 
 63.19       $200,000       .....     2002
 63.20       $200,000       .....     2003
 63.21     Any balance in the first year does not cancel but is 
 63.22  available in the second year. 
 63.23     (b) An additional $96,000 in fiscal year 2002 and $96,000 
 63.24  in fiscal year 2003 are appropriated from the special revenue 
 63.25  fund under Minnesota Statutes, section 517.08, subdivision 1c, 
 63.26  for family visitation centers.  Any balance in the first year 
 63.27  does not cancel but is available in the second year. 
 63.28     Subd. 10.  [AFTER SCHOOL ENRICHMENT GRANTS.] For after 
 63.29  school enrichment grants according to Minnesota Statutes, 
 63.30  section 124D.221:  
 63.31       $5,510,000     .....     2002
 63.32       $5,510,000     .....     2003
 63.33     Any balance in the first year does not cancel but is 
 63.34  available in the second year. 
 63.35     Subd. 11.  [CHEMICAL ABUSE PREVENTION GRANTS.] (a) For 
 63.36  grants with funds received under Minnesota Statutes, section 
 64.1   171.29, subdivision 2, paragraph (b), clause (4): 
 64.2        $200,000     .....     2002
 64.3        $200,000     .....     2003
 64.4      (b) These appropriations are from the alcohol-impaired 
 64.5   driver account of the special revenue fund for chemical abuse 
 64.6   prevention grants.  
 64.7      Sec. 11.  [REVISOR INSTRUCTION.] 
 64.8      In the next and subsequent editions of Minnesota Statutes 
 64.9   and Minnesota Rules, the revisor shall renumber Minnesota 
 64.10  Statutes, section 119A.13, subdivision 4, as Minnesota Statutes, 
 64.11  section 119A.12, subdivision 4, and make necessary 
 64.12  cross-reference changes consistent with the renumbering. 
 64.13     Sec. 12.  [REPEALER.] 
 64.14     Minnesota Statutes 2000, sections 119A.13, subdivisions 1, 
 64.15  2, and 3; 119A.14, subdivision 2; 119A.23; 124D.33; and 
 64.16  124D.331, are repealed. 
 64.17                             ARTICLE 3 
 64.18               SELF-SUFFICIENCY AND LIFELONG LEARNING 
 64.19     Section 1.  Minnesota Statutes 2000, section 124D.52, 
 64.20  subdivision 2, is amended to read: 
 64.21     Subd. 2.  [PROGRAM APPROVAL.] (a) To receive aid under this 
 64.22  section, a district, a consortium of districts, the department 
 64.23  of corrections, or a private nonprofit organization must submit 
 64.24  an application by June 1 describing the program, on a form 
 64.25  provided by the department.  The program must be approved by the 
 64.26  commissioner according to the following criteria:  
 64.27     (1) how the needs of different levels of learning will be 
 64.28  met; 
 64.29     (2) for continuing programs, an evaluation of results; 
 64.30     (3) anticipated number and education level of participants; 
 64.31     (4) coordination with other resources and services; 
 64.32     (5) participation in a consortium, if any, and money 
 64.33  available from other participants; 
 64.34     (6) management and program design; 
 64.35     (7) volunteer training and use of volunteers; 
 64.36     (8) staff development services; 
 65.1      (9) program sites and schedules; 
 65.2      (10) program expenditures that qualify for aid; 
 65.3      (11) program ability to provide data related to learner 
 65.4   outcomes as required by law; and 
 65.5      (12) a copy of the memorandum of understanding described in 
 65.6   subdivision 1 submitted to the commissioner.  
 65.7      (b) Adult basic education programs may be approved under 
 65.8   this subdivision for up to five years.  Five-year program 
 65.9   approval must be granted to an applicant who has demonstrated 
 65.10  the capacity to: 
 65.11     (1) offer comprehensive learning opportunities and support 
 65.12  service choices appropriate for and accessible to adults at all 
 65.13  basic skill need levels; 
 65.14     (2) provide a participatory and experiential learning 
 65.15  approach based on the strengths, interests, and needs of each 
 65.16  adult, that enables adults with basic skill needs to: 
 65.17     (i) identify, plan for, and evaluate their own progress 
 65.18  toward achieving their defined educational and occupational 
 65.19  goals; 
 65.20     (ii) master the basic academic reading, writing, and 
 65.21  computational skills, as well as the problem-solving, decision 
 65.22  making, interpersonal effectiveness, and other life and learning 
 65.23  skills they need to function effectively in a changing society; 
 65.24     (iii) locate and be able to use the health, governmental, 
 65.25  and social services and resources they need to improve their own 
 65.26  and their families' lives; and 
 65.27     (iv) continue their education, if they desire, to at least 
 65.28  the level of secondary school completion, with the ability to 
 65.29  secure and benefit from continuing education that will enable 
 65.30  them to become more employable, productive, and responsible 
 65.31  citizens; 
 65.32     (3) plan, coordinate, and develop cooperative agreements 
 65.33  with community resources to address the needs that the adults 
 65.34  have for support services, such as transportation, flexible 
 65.35  course scheduling, convenient class locations, and child care; 
 65.36     (4) collaborate with business, industry, labor unions, and 
 66.1   employment-training agencies, as well as with family and 
 66.2   occupational education providers, to arrange for resources and 
 66.3   services through which adults can attain economic 
 66.4   self-sufficiency; 
 66.5      (5) provide sensitive and well trained adult education 
 66.6   personnel who participate in local, regional, and statewide 
 66.7   adult basic education staff development events to master 
 66.8   effective adult learning and teaching techniques; 
 66.9      (6) participate in regional adult basic education peer 
 66.10  program reviews and evaluations; 
 66.11     (7) submit accurate and timely performance and fiscal 
 66.12  reports; 
 66.13     (8) submit accurate and timely reports related to program 
 66.14  outcomes and learner follow-up information; and 
 66.15     (9) spend adult basic education aid on adult basic 
 66.16  education purposes only, which are specified in sections 
 66.17  124D.518 to 124D.531.  
 66.18     (c) The commissioner shall require each district to provide 
 66.19  notification by February 1, 2001, of its intent to apply for 
 66.20  funds under this section as a single district or as part of an 
 66.21  identified consortium of districts.  A district receiving funds 
 66.22  under this section must notify the commissioner by February 1 of 
 66.23  its intent to change its application status for applications due 
 66.24  the following June 1. 
 66.25     Sec. 2.  Minnesota Statutes 2000, section 124D.522, is 
 66.26  amended to read: 
 66.27     124D.522 [ADULT BASIC EDUCATION SUPPLEMENTAL SERVICE 
 66.28  GRANTS.] 
 66.29     (a) The commissioner, in consultation with the policy 
 66.30  review task force under section 124D.521, may make grants to 
 66.31  nonprofit organizations to provide services that are not offered 
 66.32  by a district adult basic education program or that are 
 66.33  supplemental to either the statewide adult basic education 
 66.34  program, or a district's adult basic education program.  The 
 66.35  commissioner may make grants for:  staff development for adult 
 66.36  basic education teachers and administrators; training for 
 67.1   volunteer tutors; training, services, and materials for serving 
 67.2   disabled students through adult basic education programs; 
 67.3   statewide promotion of adult basic education services and 
 67.4   programs; development and dissemination of instructional and 
 67.5   administrative technology for adult basic education programs; 
 67.6   programs which primarily serve communities of color; adult basic 
 67.7   education distance learning projects, including television 
 67.8   instruction programs; and other supplemental services to support 
 67.9   the mission of adult basic education and innovative delivery of 
 67.10  adult basic education services.  
 67.11     (b) The commissioner must establish eligibility criteria 
 67.12  and grant application procedures.  Grants under this section 
 67.13  must support services throughout the state, focus on educational 
 67.14  results for adult learners, and promote outcome-based 
 67.15  achievement through adult basic education programs.  Beginning 
 67.16  in fiscal year 2002, the commissioner may make grants under this 
 67.17  section from funds specifically appropriated the state total 
 67.18  adult basic education aid set aside for supplemental service 
 67.19  grants under section 124D.531.  Up to one-third one-fourth of 
 67.20  the appropriation for supplemental service grants must be used 
 67.21  for grants for adult basic education programs to encourage and 
 67.22  support innovations in adult basic education instruction and 
 67.23  service delivery.  A grant to a single organization cannot 
 67.24  exceed $100,000.  Nothing in this section prevents an approved 
 67.25  adult basic education program from using state or federal aid to 
 67.26  purchase supplemental services. 
 67.27     <h>[EFFECTIVE DATE.]</h> This section is effective July 1, 2001. 
 67.28     Sec. 3.  Minnesota Statutes 2000, section 124D.531, 
 67.29  subdivision 1, is amended to read: 
 67.30     Subdivision 1.  [STATE TOTAL ADULT BASIC EDUCATION AID.] 
 67.31  (a) The state total adult basic education aid for fiscal year 
 67.32  2001 equals $30,157,000.  The state total adult basic education 
 67.33  aid for later years equals: 
 67.34     (1) the state total adult basic education aid for the 
 67.35  preceding fiscal year; times 
 67.36     (2) the lesser of: 
 68.1      (i) 1.08, or 
 68.2      (ii) the greater of 1.00 or the ratio of the state total 
 68.3   contact hours in the first prior program year to the state total 
 68.4   contact hours in the second prior program year.  Beginning in 
 68.5   fiscal year 2002, two percent of the state total adult basic 
 68.6   education aid must be set aside for adult basic education 
 68.7   supplemental service grants under section 124D.522. 
 68.8      (b) The state total adult basic education aid, excluding 
 68.9   basic population aid, equals the difference between the amount 
 68.10  computed in paragraph (a), and the state total basic population 
 68.11  aid under subdivision 2. 
 68.12     <h>[EFFECTIVE DATE.]</h> This section is effective July 1, 2001. 
 68.13     Sec. 4.  Minnesota Statutes 2000, section 124D.531, 
 68.14  subdivision 3, is amended to read: 
 68.15     Subd. 3.  [PROGRAM REVENUE.] Adult basic education programs 
 68.16  established under section 124D.52 and approved by the 
 68.17  commissioner are eligible for revenue under this subdivision.  
 68.18  For fiscal year 2001 and later, adult basic education revenue 
 68.19  for each approved program equals the sum of: 
 68.20     (1) the basic population aid under subdivision 2 for 
 68.21  districts participating in the program during the current 
 68.22  program year; plus 
 68.23     (2) 84 percent times the amount computed in subdivision 1, 
 68.24  paragraph (b), times the ratio of the contact hours for students 
 68.25  participating in the program during the first prior program year 
 68.26  to the state total contact hours during the first prior program 
 68.27  year; plus 
 68.28     (3) eight percent times the amount computed in subdivision 
 68.29  1, paragraph (b), times the ratio of the enrollment of students 
 68.30  with limited English proficiency during the second prior school 
 68.31  year in districts participating in the program during the 
 68.32  current program year to the state total enrollment of students 
 68.33  with limited English proficiency during the second prior school 
 68.34  year in districts participating in adult basic education 
 68.35  programs during the current program year; plus 
 68.36     (4) eight percent times the amount computed in subdivision 
 69.1   1, paragraph (b), times the ratio of the latest federal census 
 69.2   count of the number of adults aged 20 or older with no diploma 
 69.3   residing in the districts participating in the program during 
 69.4   the current program year to the latest federal census count of 
 69.5   the state total number of adults aged 20 or older with no 
 69.6   diploma residing in the districts participating in adult basic 
 69.7   education programs during the current program year. 
 69.8      Sec. 5.  [APPROPRIATIONS.] 
 69.9      Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
 69.10  LEARNING.] The sums indicated in this section are appropriated 
 69.11  from the general fund to the department of children, families, 
 69.12  and learning for the fiscal years designated. 
 69.13     Subd. 2.  [MINNESOTA ECONOMIC OPPORTUNITY GRANTS.] For 
 69.14  Minnesota economic opportunity grants: 
 69.15       $8,514,000     .....     2002
 69.16       $8,514,000     .....     2003
 69.17     Any balance in the first year does not cancel but is 
 69.18  available in the second year. 
 69.19     Subd. 3.  [ADULT BASIC EDUCATION AID.] For adult basic 
 69.20  education aid according to Minnesota Statutes, section 124D.52 
 69.21  in fiscal year 2002 and Minnesota Statutes, section 124D.531 in 
 69.22  fiscal year 2003:  
 69.23       $32,150,000    .....     2002 
 69.24       $34,731,000    .....     2003 
 69.25     The 2002 appropriation includes $3,019,000 for 2001 and 
 69.26  $29,131,000 for 2002.  
 69.27     The 2003 appropriation includes $3,237,000 for 2002 and 
 69.28  $31,494,000 for 2003.  
 69.29     Subd. 4.  [ADULT GRADUATION AID.] For adult graduation aid 
 69.30  according to Minnesota Statutes, section 124D.54: 
 69.31       $3,195,000     .....     2002
 69.32       $3,356,000     .....     2003
 69.33     The 2002 appropriation includes $305,000 for 2001 and 
 69.34  $2,890,000 for 2002.  
 69.35     The 2003 appropriation includes $321,000 for 2002 and 
 69.36  $3,035,000 for 2003.  
 70.1      Subd. 5.  [GED TESTS.] For payment of 60 percent of the 
 70.2   costs of GED tests according to Laws 1993, chapter 224, article 
 70.3   4, section 44, subdivision 10: 
 70.4        $125,000       .....     2002
 70.5        $125,000       .....     2003
 70.6      Any balance in the first year does not cancel but is 
 70.7   available in the second year. 
 70.8      Subd. 6.  [FOOD BANK PROGRAM.] For foodshelf programs 
 70.9   according to Minnesota Statutes, section 119A.44: 
 70.10       $1,278,000     .....     2002
 70.11       $1,278,000     .....     2003
 70.12     Any balance in the first year does not cancel but is 
 70.13  available in the second year. 
 70.14     Subd. 7.  [FAMILY ASSETS FOR INDEPENDENCE.] For family 
 70.15  assets for independence: 
 70.16       $500,000       .....     2002
 70.17     Any balance in the first year does not cancel but is 
 70.18  available in the second year. 
 70.19     Subd. 8.  [LEAD ABATEMENT.] For lead abatement according to 
 70.20  Minnesota Statutes, section 119A.46: 
 70.21       $500,000       .....     2002
 70.22       $500,000       .....     2003
 70.23     Subd. 9.  [ADULT BASIC EDUCATION ADMINISTRATION.] For adult 
 70.24  basic education administration: 
 70.25       $175,000       .....     2002 
 70.26       $175,000       .....     2003 
 70.27     Sec. 6.  [TANF APPROPRIATIONS.] 
 70.28     Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
 70.29  LEARNING.] The sums indicated in this section are appropriated 
 70.30  to the commissioner of children, families, and learning from the 
 70.31  federal Temporary Assistance for Needy Families (TANF) block 
 70.32  grant for the fiscal years designated.  These amounts are 
 70.33  available for expenditure until June 30, 2003.  Appropriations 
 70.34  under this section are one-time appropriations and are not added 
 70.35  to the base for fiscal years 2004 and 2005. 
 70.36     Subd. 2.  [INTENSIVE ESL.] For intensive English as a 
 71.1   second language (ESL) for eligible MFIP participants under Laws 
 71.2   2000, chapter 489, article 1, section 39: 
 71.3        $1,100,000     .....     2002 
 71.4        $1,100,000     .....     2003