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Key: (1) language to be deleted (2) new language

 

                         Laws of Minnesota 1987 

                          CHAPTER 4-S.F.No. 5 
           An act relating to acts of the 1987 regular session; 
          correcting erroneous, ambiguous, omitted, and obsolete 
          references and text; eliminating certain redundant, 
          conflicting, and superseded provisions; creating an 
          exception to the nursing home moratorium for a 
          facility operated on the Red Lake Indian Reservation; 
          delaying the effective date for phasing out trunk 
          highway funding of tourist information centers; 
          exempting the children's trust fund advisory council 
          from expiration; giving priority to certain applicants 
          for funds; appropriating money; amending Minnesota 
          Statutes 1986, sections 124.574, subdivision 3, as 
          amended; 126.67, subdivision 2b, as added; 126.70, 
          subdivision 2a, as added; 129B.041, subdivisions 1 and 
          3, as amended; 144A.071, subdivision 3, as amended; 
          161.52; 256.736, subdivision 16, as added; 268.91, 
          subdivision 3b, as added; 275.125, subdivision 9, as 
          amended; 299A.23, subdivision 2; and 299A.25, 
          subdivision 3; Laws 1987, chapter 398, article 1, 
          sections 14, subdivision 1; 23, subdivisions 2 and 3; 
          and 26, subdivision 2; article 8, sections 18, 
          subdivision 1; and 33, subdivision 1; repealing 
          Minnesota Statutes 1986, section 299A.25, subdivision 
          6. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 

                               ARTICLE 1 

                             EDUCATION AIDS
    Section 1.  Minnesota Statutes 1986, section 124.574, 
subdivision 3, as amended by Laws 1987, chapter 398, article 3, 
section 24, is amended to read:  
    Subd. 3.  [EQUIPMENT, TRAVEL, AND SUPPLIES.] In addition to 
the provisions of subdivision 2b, the state shall pay for each 
school year: 
    (a) 47 percent of the costs of necessary equipment for 
these secondary vocational education programs for handicapped 
children; 
    (b) 47 percent of the costs of necessary travel between 
instructional sites by secondary vocational education teachers 
of handicapped children, but not including travel to and from 
local, regional, district, state or national vocational student 
organization meetings; and 
    (c) 47 percent of the costs of necessary supplies for these 
secondary vocational education programs for handicapped 
children, but not to exceed an average of $45 $47 in any one 
school year for each handicapped child receiving these services. 
    Sec. 2.  Minnesota Statutes 1986, section 126.67, 
subdivision 2b, as added by Laws 1987, chapter 398, article 8, 
section 24, is amended to read:  
    Subd. 2b.  [DISTRICT ASSESSMENTS.] As part of the PER 
process, each year a district shall, in at least three grades, 
conduct assessments among at least a sample of pupils for each 
subject area in that year of the curriculum review cycle.  The 
district's curriculum review cycle for communication, 
mathematics, science, and social studies shall be more than not 
exceed five years.  Assessments may not be conducted in the same 
curriculum area for two consecutive years.  The district may use 
tests from the assessment item bank, the local assessment 
program developed by the department, or other tests.  As they 
become available, districts shall use state developed measures 
to assure state progress toward the state core curriculum.  
Funds are provided for districts that choose to use the local 
assessment program or the assessment item bank. 
    Sec. 3.  Minnesota Statutes 1986, section 126.70, 
subdivision 2a, as added by Laws 1987, chapter 398, article 8, 
section 28, is amended to read:  
    Subd. 2a.  [PERMITTED USES.] A school board may approve a 
plan for any of the following purposes: 
    (1) to participate in the educational effectiveness program 
according to section 121.609; 
    (2) to provide in-service education for elementary and 
secondary teachers to improve the use of technology in education;
    (3) to provide subject area in-service education 
emphasizing the academic content of curricular areas determined 
by the district to be a priority area; 
    (4) to use experienced teachers, as mentors, to assist in 
the continued development of new teachers; 
    (5) to increase the involvement of parents, business, and 
the community in education; 
    (6) for experimental delivery systems; 
    (7) for in-service education to increase the effectiveness 
of principals and administrators; 
    (8) for in-service education or curriculum development for 
programs for gifted and talented pupils; 
    (9) for in-service education or curriculum development for 
cooperative efforts to increase curriculum offerings, as set 
forth in section 124.272; 
    (10) for improving curriculum, according to the needs 
identified under the planning, evaluation, and reporting process 
set forth in Laws 1987, chapter 398, article 8, section 126.66 
23; 
    (11) for in-service education and curriculum development 
designed to promote sex equity in all aspects of education, with 
emphasis on curricular areas such as mathematics, science, and 
technology programs; 
    (12) for in-service education or curriculum modification 
for handicapped pupils and low-achieving pupils;  
    (13) for short-term contracts as described in section 
126.72; or 
    (14) to employ teachers for an extended year to perform 
duties directly related to improving curriculum or teaching 
skills. 
    Sec. 4.  Minnesota Statutes 1986, section 129B.041, 
subdivision 1, as amended by Laws 1987, chapter 398, article 8, 
section 31, is amended to read:  
    Subdivision 1.  [COPYRIGHT.] Products of projects and 
programs funded pursuant to sections 129B.01 to 129B.05 
developed with a grant or loan from the council on quality 
education, including curriculum and instructional materials, 
computer and telecommunications software, and associated manuals 
and reports, may be copyrighted by the department in the name of 
the state and may be sold.  However, The state shall sell the 
products at prices that do not exceed the cost of reproduction 
and distribution.  Products sold shall be clearly labeled as 
products developed pursuant to a grant or loan from the council 
on quality education.  
    Sec. 5.  Minnesota Statutes 1986, section 275.125, 
subdivision 9, as amended by Laws 1987, chapter 398, article 7, 
section 39, is amended to read:  
    Subd. 9.  [LEVY REDUCTIONS; TACONITE.] (1) Reductions in 
levies pursuant to subdivision 10, and section 273.138, shall be 
made prior to the reductions in clause (2). 
    (2) Notwithstanding any other law to the contrary, 
districts which received payments pursuant to sections 294.21 to 
294.26; 298.23 to 298.28, except an amount distributed under 
section 298.28, subdivision 4, paragraph (c), clause (ii); 
298.34 to 298.39; 298.391 to 298.396; 298.405; 298.51 to 298.67; 
477A.15; and any law imposing a tax upon severed mineral values, 
or under any other law distributing proceeds in lieu of ad 
valorem tax assessments on copper or nickel properties, or 
recognized revenue pursuant to section 477A.15; shall not 
include a portion of these aids in their permissible levies 
pursuant to those sections, but instead shall reduce the 
permissible levies authorized by this section and sections 
124A.03, 124A.06, subdivision 3a, 124A.08, subdivision 3a, 
124A.10, subdivision 3a, 124A.12, subdivision 3a, 124A.14, 
subdivision 5a, and 124A.20, subdivision 2, chapters 124 and 
124A by the greater of the following: 
    (a) an amount equal to 50 percent of the total dollar 
amount of the payments received pursuant to those sections or 
revenue recognized pursuant to section 477A.15 in the previous 
fiscal year; or 
    (b) an amount equal to the total dollar amount of the 
payments received pursuant to those sections or revenue 
recognized pursuant to section 477A.15 in the previous fiscal 
year less the product of the same dollar amount of payments or 
revenue times the ratio of the maximum levy allowed the district 
under Minnesota Statutes 1986, sections 124A.03, subdivision 2, 
124A.06, subdivision 3a, 124A.08, subdivision 3a, 124A.10, 
subdivision 3a, 124A.12, subdivision 3a, and 124A.14, 
subdivision 5a, to the total levy allowed the district under 
this section and Minnesota Statutes 1986, sections 124A.03, 
124A.06, subdivision 3a, 124A.08, subdivision 3a, 124A.10, 
subdivision 3a, 124A.12, subdivision 3a, 124A.14, subdivision 
5a, and 124A.20, subdivision 2, in the year in which the levy is 
for levies certified in 1986. 
    (3) No reduction pursuant to this subdivision shall reduce 
the levy made by the district pursuant to section 124A.03, 
subdivision 1, Laws 1987, chapter 398, article 1, section 12, to 
an amount less than the amount raised by a levy of 12.5 mills 
times the adjusted assessed valuation of that district for the 
preceding year as determined by the equalization aid review 
committee.  The amount of any increased levy authorized by 
referendum pursuant to section 124A.03, subdivision 2 shall not 
be reduced pursuant to this subdivision.  The amount of any levy 
authorized by subdivision 4, to make payments for bonds issued 
and for interest thereon, shall not be reduced pursuant to this 
subdivision.  
    (4) Before computing the reduction pursuant to this 
subdivision of the capital expenditure levy authorized by 
article 6, section 4, subdivision 2, and subdivisions 11c and 
12a, and the community service levy authorized by subdivisions 8 
and 8b, the commissioner shall ascertain from each affected 
school district the amount it proposes to levy for capital 
expenditures pursuant to article 6, section 4, subdivision 2, 
and subdivisions 11c and 12a, and for community services 
pursuant to subdivisions 8 and 8b.  The reduction of the capital 
expenditure levy and the community services levy shall be 
computed on the basis of the amount so ascertained. 
    (5) Notwithstanding any law to the contrary, any amounts 
received by districts in any fiscal year pursuant to sections 
294.21 to 294.26; 298.23 to 298.28; 298.34 to 298.39; 298.391 to 
298.396; 298.405; 298.51 to 298.67; or any law imposing a tax on 
severed mineral values, or under any other law distributing 
proceeds in lieu of ad valorem tax assessments on copper or 
nickel properties; and not deducted from foundation aid pursuant 
to section 124A.035, subdivision 5, clause (2), and not applied 
to reduce levies pursuant to this subdivision shall be paid by 
the district to the St. Louis county auditor in the following 
amount by March 15 of each year except 1986, the amount required 
to be subtracted from the previous fiscal year's foundation aid 
pursuant to section 124A.035, subdivision 5, which is in excess 
of the foundation aid earned for that fiscal year.  The county 
auditor shall deposit any amounts received pursuant to this 
clause in the St. Louis county treasury for purposes of paying 
the taconite homestead credit as provided in section 273.135. 
    Sec. 6.  Laws 1987, chapter 398, article 1, section 14, 
subdivision 1, is amended to read:  
    Subdivision 1.  [1987-1988 REVENUE.] "1987-1988 revenue" 
means the sum of the following categories of revenue for a 
district for the 1987-1988 school year: 
    (1) basic foundation revenue, tier revenue, and declining 
pupil unit revenue, according to chapter 124A, plus any 
reduction to second tier revenue, according to Minnesota 
Statutes 1986, section 124A.08, subdivision 5; 
    (2) teacher retirement and FICA aid, according to Minnesota 
Statutes 1986, sections 124.2162 and 124.2163; 
    (3) chemical dependency aid, according to Minnesota 
Statutes 1986, section 124.246; 
    (4) gifted and talented education aid, according to 
Minnesota Statutes 1986, section 124.247; 
    (5) interdistrict cooperation aid and levy, according to 
Minnesota Statutes 1986, sections 124.272 and 275.125, 
subdivision 8a; 
    (6) arts education aid, according to Minnesota Statutes 
1986, section 124.275; 
    (7) summer program aid and levy, according to Minnesota 
Statutes 1986, sections 124A.03 and 124A.033; 
    (8) programs of excellence grants, according to Minnesota 
Statutes 1986, section 126.60; and 
    (9) liability insurance levy, according to Minnesota 
Statutes 1986, section 466.06. 
    For the purpose of this subdivision, intermediate districts 
and other employing units, as defined in Minnesota Statutes 
1986, section 124.2161, shall allocate the amount of their 
teacher retirement and FICA aid for fiscal year 1988 among their 
member school districts.  
    Sec. 7.  Laws 1987, chapter 398, article 1, section 23, 
subdivision 2, is amended to read:  
    Subd. 2.  [MILL RATE ADJUSTMENT AID.] For the 1988-1989 
school year a district shall receive mill rate adjustment 
additional general education aid equal to one-half of the excess 
foundation mill increase times the 1986 adjusted assessed 
valuation. 
    Sec. 8.  Laws 1987, chapter 398, article 1, section 23, 
subdivision 3, is amended to read:  
    Subd. 3.  [LEVY REDUCTION; MILL RATE ADJUSTMENT AID.] For 
any district that will receive mill rate adjustment aid 
according to subdivision 2, the general education levy 
limitation for the 1988-1989 school year shall be reduced by the 
amount of the mill rate adjustment aid. 
    Sec. 9.  Laws 1987, chapter 398, article 1, section 26, 
subdivision 2, is amended to read:  
    Subd. 2.  [FOUNDATION AID.] For foundation aid there is 
appropriated:  
    $851,283,900 ..... 1988, 
    $126,482,100 $129,073,100 ..... 1989. 
    The appropriation for aid for fiscal year 1988 includes 
$121,712,400 for aid for fiscal year 1987 payable in fiscal year 
1988 and $729,571,500 for aid for fiscal year 1988 payable in 
fiscal year 1989.  
    The appropriation for aid for fiscal year 1989 is for aid 
for fiscal year 1988 payable in fiscal year 1989.  
    Sec. 10.  Laws 1987, chapter 398, article 8, section 18, 
subdivision 1, is amended to read:  
    Subdivision 1.  [APPLICABILITY.] For the purposes of Laws 
1987, chapter 398, article 8, sections 9 18 to 14 23 and 
section 126.67, the following terms have the meanings given them.
    Sec. 11.  Minnesota Statutes 1986, section 129B.041, 
subdivision 3, as amended by Laws 1987, chapter 398, article 8, 
section 32, is amended to read:  
    Subd. 3.  [REVOLVING FUND.] The education product and loan 
repayment revolving account is established in the state 
treasury.  Sale proceeds from the sale of products under this 
section shall be deposited in this account.  All funds money in 
this account are is annually appropriated to the department of 
education and shall be used to reproduce and distribute products 
of projects and programs funded pursuant to Minnesota Statutes 
1986, sections 129B.01 to 129B.05 developed with a grant or loan 
from the council on quality education.  
    Sec. 12.  Laws 1987, chapter 398, article 8, section 33, 
subdivision 1, is amended to read:  
    Subdivision 1.  [PLANS; GRANT AWARDS.] The state board of 
education, with the advice of the state curriculum advisory 
committee and the advisory committee on technology in education 
for projects involving technology, shall make grants to groups 
of school districts to implement plans to improve education.  
The board may award grants to groups of districts which submit 
plans that include at least the following: 
    (1) program and curriculum changes which provide more 
learning opportunities for students;  
    (2) demonstration of a local commitment to the plan and, in 
the case of plans utilizing technology, local financial support 
including public and private partnerships; 
    (3) involvement of school district teaching staff in 
development of the plan; 
    (4) demonstration that the plan is consistent with school 
district goals established under Laws 1987, chapter 398, article 
8, section 126.66 23; and 
    (5) the structural criteria established in subdivision 2. 
    The board may establish additional criteria and shall 
establish time-lines and the grant application procedure for 
making grants. 
    Sec. 13.  [STATUTORY CONSTRUCTION FOR SCHOOL DISTRICT 
LEVIES.] 
    If necessary during fiscal year 1988 to determine levy 
limitations for school districts for the 1988-1989 school year, 
the commissioner of education shall construe terms in Minnesota 
Statutes and Laws 1987, chapter 398, that refer to foundation 
and tier revenue to mean the successor terms within general 
education revenue.  Successor terms are at least the following:  
"foundation and tier revenue" is "general education revenue," 
"foundation aid" is "general education aid," "foundation aid 
formula allowance" is "formula allowance" for basic revenue, and 
"basic maintenance mill rate" is "general education mill rate." 

                                ARTICLE 2

                              MISCELLANEOUS
    Section 1.  Minnesota Statutes 1986, section 144A.071, 
subdivision 3, as amended by Laws 1987, chapter 403, article 4, 
section 3, is amended to read:  
    Subd. 3.  [EXCEPTIONS.] The commissioner of health, in 
coordination with the commissioner of human services, may 
approve the addition of a new certified bed or the addition of a 
new licensed nursing home bed, under the following conditions:  
    (a) to replace a bed decertified after May 23, 1983 or to 
address an extreme hardship situation, in a particular county 
that, together with all contiguous Minnesota counties, has fewer 
nursing home beds per 1,000 elderly than the number that is ten 
percent higher than the national average of nursing home beds 
per 1,000 elderly individuals.  For the purposes of this 
section, the national average of nursing home beds shall be the 
most recent figure that can be supplied by the federal health 
care financing administration and the number of elderly in the 
county or the nation shall be determined by the most recent 
federal census or the most recent estimate of the state 
demographer as of July 1, of each year of persons age 65 and 
older, whichever is the most recent at the time of the request 
for replacement.  In allowing replacement of a decertified bed, 
the commissioners shall ensure that the number of added or 
recertified beds does not exceed the total number of decertified 
beds in the state in that level of care.  An extreme hardship 
situation can only be found after the county documents the 
existence of unmet medical needs that cannot be addressed by any 
other alternatives; 
    (b) to certify a new bed in a facility that commenced 
construction before May 23, 1983.  For the purposes of this 
section, "commenced construction" means that all of the 
following conditions were met:  the final working drawings and 
specifications were approved by the commissioner of health; the 
construction contracts were let; a timely construction schedule 
was developed, stipulating dates for beginning, achieving 
various stages, and completing construction; and all zoning and 
building permits were secured; 
    (c) to certify beds in a new nursing home that is needed in 
order to meet the special dietary needs of its residents, if: 
the nursing home proves to the commissioner's satisfaction that 
the needs of its residents cannot otherwise be met; elements of 
the special diet are not available through most food 
distributors; and proper preparation of the special diet 
requires incurring various operating expenses, including extra 
food preparation or serving items, not incurred to a similar 
extent by most nursing homes; 
    (d) to license a new nursing home bed in a facility that 
meets one of the exceptions contained in clauses (a) to (c); 
    (e) to license nursing home beds in a facility that has 
submitted either a completed licensure application or a written 
request for licensure to the commissioner before March 1, 1985, 
and has either commenced any required construction as defined in 
clause (b) before May 1, 1985, or has, before May 1, 1985, 
received from the commissioner approval of plans for phased-in 
construction and written authorization to begin construction on 
a phased-in basis.  For the purpose of this clause, 
"construction" means any erection, building, alteration, 
reconstruction, modernization, or improvement necessary to 
comply with the nursing home licensure rules; 
    (f) to certify or license new beds in a new facility that 
is to be operated by the commissioner of veterans' affairs or 
when the costs of constructing and operating the new beds are to 
be reimbursed by the commissioner of veterans' affairs or the 
United States Veterans Administration; 
    (g) to license or certify beds in a new facility 
constructed to replace a facility that was destroyed after June 
30, 1987, by fire, lightning, or other hazard provided:  
    (1) destruction was not caused by the intentional act of or 
at the direction of a controlling person of the facility; 
    (2) at the time the facility was destroyed the controlling 
persons of the facility maintained insurance coverage for the 
type of hazard that occurred in an amount that a reasonable 
person would conclude was adequate; 
    (3) the net proceeds from an insurance settlement for the 
damages caused by the hazard are applied to the cost of the new 
facility; 
    (4) the new facility is constructed on the same site as the 
destroyed facility or on another site subject to the 
restrictions in section 4, subdivision 5; and 
    (5) the number of licensed and certified beds in the new 
facility does not exceed the number of licensed and certified 
beds in the destroyed facility; 
    (h) to license or certify beds that are moved from one 
location to another within a nursing home facility, provided the 
total costs of remodeling performed in conjunction with the 
relocation of beds does not exceed ten percent of the appraised 
value of the facility or $200,000, whichever is less, or to 
license or certify beds in a facility for which the total costs 
of remodeling or renovation exceed ten percent of the appraised 
value of the facility or $200,000, whichever is less, if the 
facility makes a written commitment to the commissioner of human 
services that it will not seek to receive an increase in its 
property-related payment rate by reason of the remodeling or 
renovation; 
    (i) to license or certify beds in a facility that has been 
involuntarily delicensed or decertified for participation in the 
medical assistance program, provided that an application for 
relicensure or recertification is submitted to the commissioner 
within 120 days after delicensure or decertification; 
    (j) to license or certify beds in a project recommended for 
approval by the interagency board for quality assurance under 
section 4; 
    (k) to license nursing home beds in a hospital facility 
that are relocated from a different hospital facility under 
common ownership or affiliation, provided: (1) the hospital in 
which the nursing home beds were originally located ceases to 
function as an acute care facility, or necessary support 
services for nursing homes as required for licensure under 
sections 144A.02 to 144A.10, such as dietary service, physical 
plant, housekeeping, physical therapy, occupational therapy, and 
administration, are no longer available from the original 
hospital site; and (2) the nursing home beds are not certified 
for participation in the medical assistance program; 
    (1) to license or certify beds that are moved from one 
location to another within an existing identifiable complex of 
hospital buildings, from a hospital-attached nursing home to the 
hospital building, or from a separate nursing home under common 
ownership with or control of a hospital to the hospital when a 
hospital-attached nursing home is moved simultaneously to the 
hospital.  As a condition of receiving a license or 
certification under this clause, the facility must make a 
written commitment to the commissioner of human services that it 
will not seek to receive an increase in its property-related 
payment rate as a result of the relocation.  At the time of the 
licensure and certification of the nursing home beds, the 
commissioner of health shall delicense the same number of acute 
care beds within the existing complex of hospital buildings or 
building.  When a separate nursing home and a hospital-attached 
nursing home under common ownership or control are 
simultaneously relocated to a hospital building, a combined cost 
report must be submitted for the cost reporting year ending 
September 30, 1987, and the freestanding nursing home limits 
apply.  Relocation of nursing home beds under this clause is 
subject to the limitations in section 4, subdivision 5; 
    (m) to license or certify beds that are moved from an 
existing state nursing home to a different state facility, 
provided there is no net increase in the number of state nursing 
home beds; or 
    (n) to license new nursing home beds in a continuing care 
retirement community affiliated with a national referral center 
engaged in substantial programs of patient care, medical 
research, and medical education meeting state and national needs 
that receives more than 40 percent of its residents from outside 
the state for the purpose of meeting contractual obligations to 
residents of the retirement community, provided the facility 
makes a written commitment to the commissioner of human services 
that it will not seek medical assistance certification for the 
new beds; or 
    (o) to certify or license new beds in a new facility on the 
Red Lake Indian reservation for which payments will be made 
under the Indian Health Care Improvement Act, Public Law Number 
94-437, at the rates specified in United States Code, title 42, 
section 1396d(b). 
    Sec. 2.  Minnesota Statutes 1986, section 161.52, is 
amended to read:  
    161.52 [TOURIST INFORMATION CENTERS.] 
    For the fiscal year ending June 30, 1988, and subsequent 
years, the payment of the cost of staffing and operating tourist 
information centers located on trunk highways, including 
interstate highways, by the commissioner of transportation is 
subject to the following restrictions: 
    (a) For the fiscal year ending June 30, 1988, not more than 
two-thirds five-sixths of the cost may be paid from the trunk 
highway fund. 
    (b) For the fiscal year ending June 30, 1989, not more than 
one-third of the cost may be paid from the trunk highway fund. 
    (c) For the fiscal year ending June 30, 1990, no part of 
the cost may be paid from the trunk highway fund. 
    That portion of the cost not paid from the trunk highway 
fund must be paid either by the commissioner from funds 
appropriated for that purpose from sources other than the trunk 
highway fund, or by local sources of funding. 
    Sec. 3.  [APPROPRIATION.] 
    $75,000 is appropriated from the general fund to the 
commissioner of transportation to pay the cost of staffing and 
operating tourist information centers located on trunk highways, 
including interstate highways, to be available for the fiscal 
year ending June 30, 1988. 
    Sec. 4.  Minnesota Statutes 1986, section 256.736, 
subdivision 16, as added by Laws 1987, chapter 403, article 3, 
section 20, is amended to read: 
    Subd. 16.  [ALLOCATION AND USE OF MONEY.] (a) State money 
appropriated for employment and training services under this 
section must be allocated to counties as follows: 
    (1) Forty percent of the state money must be allocated 
based on the average monthly number of caretakers receiving AFDC 
in the county who are under age 22 21 and the average monthly 
number of AFDC cases open in the county for 24 or more 
consecutive months and residing in the county for the 12-month 
period ending March 31 of the previous fiscal year. 
    (2) Twenty percent of the state money must be allocated 
based on the average monthly number of nonpriority caretakers 
receiving AFDC in the county for the period ending March 31 of 
the previous fiscal year.  Funds may be used to develop 
employability plans for nonpriority caretakers if resources 
allow.  
    (3) Twenty-five percent of the state money must be 
allocated based on the average monthly number of assistance 
units in the county receiving AFDC-UP for the period ending 
March 31 of the previous fiscal year. 
    (4) Fifteen percent of the state money must be allocated at 
the discretion of the commissioner based on participation levels 
for priority group members in each county. 
    (b) No more than 15 percent of the money allocated under 
paragraph (a) may be used for administrative activities. 
    (c) Except as provided in paragraph (d), at least 70 
percent of the money allocated to counties must be used for case 
management services and employment and training services for 
caretakers in the priority groups.  Up to 30 percent of the 
money may be used for employment search activities and 
employment and training services for nonpriority caretakers.  
    (d) A county whose proportion of the statewide average 
monthly AFDC-UP caseload exceeds its proportion of the statewide 
AFDC caseload may, with the approval of the commissioner of 
human services, use up to 40 percent of the money allocated 
under this section for employment search activities and 
employment and training services for nonpriority caretakers. 
    (e) Counties and the department of jobs and training shall 
bill the commissioner of human services for any expenditures 
incurred by the county, the county's employment and training 
service provider, or the department of jobs and training that 
may be reimbursed by federal money.  The commissioner of human 
services shall bill the United States Department of Health and 
Human Services for the reimbursement and appropriate the 
reimbursed money to the county or employment and training 
service provider that submitted the original bill.  The 
reimbursed money must be used to expand employment and training 
services. 
    Sec. 5.  Minnesota Statutes 1986, section 268.91, 
subdivision 3b, as added by Laws 1987, chapter 403, article 3, 
section 63, is amended to read: 
    Subd. 3b.  [SET-ASIDE MONEY FOR AFDC PRIORITY GROUPS.] (a) 
Set-aside money for AFDC priority groups must be allocated among 
the counties based on the average monthly number of caretakers 
receiving AFDC under the age of 22 21 and the average monthly 
number of AFDC cases open 24 or more consecutive months.  For 
each fiscal year the average monthly caseload shall be based on 
the 12-month period ending March 31 of the previous fiscal year. 
The commissioner may reallocate quarterly unexpended or 
unencumbered set-aside money to counties that expend their full 
allocation.  The county shall use the set-aside money for AFDC 
priority groups. 
    (b) The county shall develop cooperative agreements with 
the employment and training service provider for coordination of 
child care funding with employment, training, and education 
programs for aid to families with dependent children priority 
groups.  The cooperative agreement shall specify that 
individuals receiving employment, training, and education 
services under an employability plan from the employment and 
training service provider shall, as resources permit, be 
guaranteed set-aside money for child care assistance from the 
county of their residence.  
    (c) Counties may contract for administration of the program 
or may arrange for or contract for child care funds to be used 
by other appropriate programs, in accordance with this section 
and as permitted by federal law and regulations.  
    (d) If the commissioner finds, on or after January 1 of a 
fiscal year, that set-aside money for AFDC priority groups is 
not being fully utilized, the commissioner may permit counties 
to use set-aside money for other eligible applicants, as long as 
priority for use of the money will continue to be given to the 
AFDC priority groups.  
    (e) A county may claim federal reimbursement under the AFDC 
special needs program for money spent for persons listed in 
subdivision 3a, clause (1).  The commissioner shall allocate any 
federal earnings to the county.  The county shall use the money 
to expand services to AFDC recipients under the child care 
sliding fee program. 
    Sec. 6.  Minnesota Statutes 1986, section 299A.23, 
subdivision 2, is amended to read:  
    Subd. 2.  [ADVISORY COUNCIL.] An advisory council of 15 
members is established under section 15.059.  The commissioners 
of human services, health, education, and corrections shall each 
appoint one member.  The subcommittee on committees of the 
senate and the speaker of the house of representatives shall 
each appoint two members of their respective bodies, one from 
each caucus.  The governor shall appoint an additional seven 
members who shall demonstrate knowledge in the area of child 
abuse and shall represent the demographic and geographic 
composition of the state, and to the extent possible, represent 
the following groups:  local government, parents, racial and 
ethnic minority communities, the religious community, 
professional providers of child abuse prevention and treatment 
services, and volunteers in child abuse prevention and treatment 
services.  The council shall advise and assist the commissioner 
in carrying out Laws 1986, chapter 423 sections 299A.20 to 
299A.26.  The council does not expire as provided by section 
15.059, subdivision 5. 
    Sec. 7.  Minnesota Statutes 1986, section 299A.25, 
subdivision 3, is amended to read:  
    Subd. 3.  [USE OF FUNDS.] Priority must be given to 
applicants whose matching funds must do not consist, in whole or 
in part, of state or federal funds.  Any trust fund money 
received must not be used to compensate for a decrease in 
previously existing funding levels unless that decrease is 
attributable to a decision made by state, federal, or other 
entities not controlled by the applicant and the applicant 
demonstrates that it has made reasonable efforts to retain all 
previously existing funding. 
    Sec. 8.  [APPROPRIATION.] 
    $200,000 is appropriated from the children's trust fund to 
the commissioner of public safety to administer sections 299A.20 
to 299A.26.  $100,000 is for fiscal year 1988 and $100,000 is 
for fiscal year 1989. 
    Sec. 9.  [REPEALER.] 
    Minnesota Statutes 1986, section 299A.25, subdivision 6, is 
repealed. 
    Approved June 25, 1987