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Minnesota Legislature

Office of the Revisor of Statutes

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

                            CHAPTER 162-H.F.No. 2147 
                  An act relating to family and early childhood 
                  education; providing for community and prevention 
                  programs; promoting self-sufficiency; providing for 
                  child care; establishing grant programs; appropriating 
                  money; amending Minnesota Statutes 1996, sections 
                  12.21, subdivision 3; 15.53, subdivision 2; 119A.01, 
                  subdivision 3; 119A.04, subdivision 6, and by adding a 
                  subdivision; 119A.13, subdivisions 2, 3, and 4; 
                  119A.14; 119A.15, subdivisions 2, 5, and by adding a 
                  subdivision; 119A.16; 119A.31, subdivision 1; 119B.01, 
                  subdivisions 8, 9, 12, 15, 16, 17, and by adding 
                  subdivisions; 119B.02; 119B.03, subdivisions 3, 4, 5, 
                  6, 7, 8, and by adding subdivisions; 119B.04; 119B.05, 
                  subdivisions 1, 5, 6, and by adding a subdivision; 
                  119B.07; 119B.08, subdivisions 1 and 3; 119B.09, 
                  subdivisions 1, 2, and by adding subdivisions; 
                  119B.10, subdivision 1; 119B.11, subdivisions 1, 3, 
                  and by adding a subdivision; 119B.12; 119B.13, 
                  subdivision 1, and by adding subdivisions; 119B.15; 
                  119B.16, subdivision 1; 119B.18, by adding a 
                  subdivision; 119B.20, subdivisions 7, 9, and 10; 
                  119B.21, subdivisions 1, 2, 3, 4, 5, 6, 8, 9, 10, and 
                  11; 120.05, subdivision 2; 121.11, by adding a 
                  subdivision; 121.831, subdivisions 3 and 4; 121.8355, 
                  subdivision 1; 121.88, subdivisions 1, 10, and by 
                  adding a subdivision; 121.882, subdivision 2; 124.17, 
                  subdivision 2e; 124.26, subdivision 2; 124.2601, 
                  subdivisions 3, 4, 5, and 6; 124.261, subdivision 1; 
                  124.2615, subdivisions 1 and 2; 124.2711, subdivisions 
                  1 and 2a; 124.2713, subdivisions 6 and 8; 124.2716, 
                  subdivision 3; 268.53, subdivision 5; 268.912; 
                  268.913, subdivisions 2 and 4; 268.914, subdivision 1; 
                  and 517.08, subdivision 1c; Laws 1996, chapter 463, 
                  section 4, subdivision 2, as amended; proposing coding 
                  for new law in Minnesota Statutes, chapters 119A; and 
                  119B; repealing Minnesota Statutes 1996, sections 
                  119B.03, subdivision 7; 119B.05, subdivisions 2 and 3; 
                  119B.11, subdivision 2; 119B.19, subdivision 2; 
                  119B.21, subdivision 7; 121.8355, subdivision 1a; and 
                  268.913, subdivision 5. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
                                   ARTICLE 1
                            EARLY CHILDHOOD PROGRAMS
           Section 1.  Minnesota Statutes 1996, section 12.21, 
        subdivision 3, is amended to read: 
           Subd. 3.  [SPECIFIC AUTHORITY.] In performing duties under 
        this chapter and to effect its policy and purpose, the governor 
        may: 
           (1) make, amend, and rescind the necessary orders and rules 
        to carry out the provisions of this chapter and section 216C.15 
        within the limits of the authority conferred by this section, 
        with due consideration of the plans of the federal government 
        and without complying with sections 14.001 to 14.69, but no 
        order or rule has the effect of law except as provided by 
        section 12.32; 
           (2) ensure that a comprehensive emergency operations plan 
        and emergency management program for this state are developed 
        and maintained, and are integrated into and coordinated with the 
        emergency plans of the federal government and of other states to 
        the fullest possible extent; 
           (3) in accordance with the emergency operations plan and 
        the emergency management program of this state, procure supplies 
        and equipment, institute training programs and public 
        information programs, and take all other preparatory steps, 
        including the partial or full activation of emergency management 
        organizations in advance of actual disaster to ensure the 
        furnishing of adequately trained and equipped forces of 
        emergency management personnel in time of need; 
           (4) make studies and surveys of the industries, resources, 
        and facilities in this state as may be necessary to ascertain 
        the capabilities of the state for emergency management and to 
        plan for the most efficient emergency use of those industries, 
        resources, and facilities; 
           (5) on behalf of this state, enter into mutual aid 
        arrangements or cooperative agreements with other states and 
        with Canadian provinces, and coordinate mutual aid plans between 
        political subdivisions of this state; 
           (6) delegate administrative authority vested in the 
        governor under this chapter, except the power to make rules, and 
        provide for the subdelegation of that authority; 
           (7) cooperate with the president and the heads of the armed 
        forces, the emergency management agency of the United States and 
        other appropriate federal officers and agencies, and with the 
        officers and agencies of other states in matters pertaining to 
        the emergency management of the state and nation, including the 
        direction or control of: 
           (i) emergency preparedness drills and exercises; 
           (ii) warnings and signals for drills or actual emergencies 
        and the mechanical devices to be used in connection with them; 
           (iii) shutting off water mains, gas mains, electric power 
        connections and the suspension of all other utility services; 
           (iv) the conduct of persons in the state and the movement 
        and cessation of movement of pedestrians and vehicular traffic 
        during, prior, and subsequent to drills or actual emergencies; 
           (v) public meetings or gatherings; and 
           (vi) the evacuation, reception, and sheltering of persons; 
           (8) contribute to a political subdivision, within the 
        limits of the appropriation for that purpose, not more than 25 
        percent of the cost of acquiring organizational equipment that 
        meets standards established by the governor; 
           (9) formulate and execute, with the approval of the 
        executive council, plans and rules for the control of traffic in 
        order to provide for the rapid and safe movement over public 
        highways and streets of troops, vehicles of a military nature, 
        materials for national defense and war or for use in any war 
        industry, for the conservation of critical materials or for 
        emergency management purposes, and coordinate the activities of 
        the departments or agencies of the state and its political 
        subdivisions concerned directly or indirectly with public 
        highways and streets, in a manner that will best effectuate 
        those plans; 
           (10) alter or adjust by executive order, without complying 
        with sections 14.01 to 14.69, the working hours, work days and 
        work week of, and annual and sick leave provisions and payroll 
        laws regarding all state employees in the executive branch as 
        the governor deems necessary to minimize the impact of the 
        disaster or emergency, conforming the alterations or adjustments 
        to existing state laws, rules, and collective bargaining 
        agreements to the extent practicable; 
           (11) authorize the commissioner of children, families, and 
        learning to alter school schedules, curtail school activities, 
        or order schools closed without affecting state aid to schools, 
        as defined in section 120.05, and including charter schools 
        under section 120.064.  
           Sec. 2.  Minnesota Statutes 1996, section 120.05, 
        subdivision 2, is amended to read: 
           Subd. 2.  [DEFINITIONS.] (1) Elementary school means any 
        school with building, equipment, courses of study, class 
        schedules, enrollment of pupils ordinarily in grades 1 
        prekindergarten through grade 6 or any portion thereof and staff 
        meeting the standards established by the state board of 
        education. 
           The state board of education shall not close a school or 
        deny any state aids to a district for its elementary schools 
        because of enrollment limitations classified in accordance with 
        the provisions of subdivision 2, clause (1). 
           (2) Middle school means any school other than a secondary 
        school giving an approved course of study in a minimum of three 
        consecutive grades above 4th but below 10th with building, 
        equipment, courses of study, class schedules, enrollment, and 
        staff meeting the standards established by the state board of 
        education. 
           (3) Secondary school means any school with building, 
        equipment, courses of study, class schedules, enrollment of 
        pupils ordinarily in grades 7 through 12 or any portion thereof, 
        and staff meeting the standards established by the state board 
        of education. 
           (4) A vocational center school is one serving a group of 
        secondary schools with approved areas of secondary vocational 
        training and offering vocational secondary and adult programs 
        necessary to meet local needs and meeting standards established 
        by the state board of education. 
           Sec. 3.  Minnesota Statutes 1996, section 121.831, 
        subdivision 3, is amended to read: 
           Subd. 3.  [PROGRAM ELIGIBILITY.] A learning readiness 
        program shall include the following: 
           (1) a comprehensive plan to anticipate and meet the needs 
        of participating families by coordinating existing social 
        services programs and by fostering collaboration among agencies 
        or other community-based organizations and programs that provide 
        a full range of flexible, family-focused services to families 
        with young children; 
           (2) a development and learning component to help children 
        develop appropriate social, cognitive, and physical skills, and 
        emotional well-being; 
           (3) health referral services to address children's medical, 
        dental, mental health, and nutritional needs; 
           (4) a nutrition component to meet children's daily 
        nutritional needs; 
           (5) parents' involvement in meeting children's educational, 
        health, social service, and other needs; 
           (6) community outreach to ensure participation by families 
        who represent the racial, cultural, and economic diversity of 
        the community; and 
           (7) community-based staff and program resources, including 
        interpreters, that reflect the racial and ethnic characteristics 
        of the children participating in the program; and 
           (8) a literacy component to ensure that the literacy needs 
        of parents are addressed through referral to and cooperation 
        with adult basic education programs and other adult literacy 
        programs. 
           Sec. 4.  Minnesota Statutes 1996, section 121.831, 
        subdivision 4, is amended to read: 
           Subd. 4.  [PROGRAM CHARACTERISTICS.] Learning readiness 
        programs are encouraged to: 
           (1) prepare an individualized service plan to meet each 
        child's developmental and learning needs; 
           (2) provide parent education to increase parents' 
        knowledge, understanding, skills, and experience in child 
        development and learning; 
           (3) foster substantial parent involvement that may include 
        having parents develop curriculum or serve as a paid or 
        volunteer educator, resource person, or other staff; 
           (4) identify the needs of families in the content of the 
        child's learning readiness and family literacy; 
           (5) expand collaboration with public organizations, 
        businesses, nonprofit organizations, or other private 
        organizations to develop a coordinated system of flexible, 
        family-focused services available to anticipate and meet the 
        full range of needs of all eligible children and their families; 
           (6) coordinate treatment and follow-up services for 
        children's identified physical and mental health problems; 
           (7) offer transportation for eligible children and their 
        families for whom other forms of transportation are unavailable 
        or would constitute an excessive financial burden; 
           (8) make substantial outreach efforts to assure significant 
        participation by families with the greatest needs, including 
        those families whose income level does not exceed the most 
        recent update of the poverty guidelines required by sections 652 
        and 673(2) of the Omnibus Budget Reconciliation Act of 1981 
        (Public Law Number 97-35); 
           (9) use community-based, trained home visitors serving as 
        paraprofessionals to provide social support, referrals, parent 
        education, and other services; 
           (10) create community-based family resource centers and 
        interdisciplinary teams; and 
           (11) enhance the quality of family or center-based child 
        care programs by providing supplementary services and resources, 
        staff training, and assistance with children with special needs. 
           Sec. 5.  Minnesota Statutes 1996, section 121.882, 
        subdivision 2, is amended to read: 
           Subd. 2.  [PROGRAM CHARACTERISTICS.] Early childhood family 
        education programs are programs for children in the period of 
        life from birth to kindergarten, for the parents of such 
        children, and for expectant parents.  The programs may include 
        the following:  
           (1) programs to educate parents about the physical, mental, 
        and emotional development of children; 
           (2) programs to enhance the skills of parents in providing 
        for their children's learning and development; 
           (3) learning experiences for children and parents that 
        promote children's development; 
           (4) activities designed to detect children's physical, 
        mental, emotional, or behavioral problems that may cause 
        learning problems; 
           (5) activities and materials designed to encourage 
        self-esteem, skills, and behavior that prevent sexual and other 
        interpersonal violence; 
           (6) educational materials which may be borrowed for home 
        use; 
           (7) information on related community resources; 
           (8) programs to prevent child abuse and neglect; or 
           (9) other programs or activities to improve the health, 
        development, and learning readiness of children; or 
           (10) activities designed to maximize development during 
        infancy.  
           The programs shall not include activities for children that 
        do not require substantial involvement of the children's 
        parents.  The programs shall be reviewed periodically to assure 
        the instruction and materials are not racially, culturally, or 
        sexually biased.  The programs shall encourage parents to be 
        aware of practices that may affect equitable development of 
        children. 
           Sec. 6.  Minnesota Statutes 1996, section 124.2711, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [REVENUE.] The revenue for early childhood 
        family education programs for a school district equals $101.25 
        for 1993 1998 and $113.50 for 1999 and later fiscal years times 
        the greater of: 
           (1) 150; or 
           (2) the number of people under five years of age residing 
        in the school district on October 1 of the previous school year. 
           Sec. 7.  Minnesota Statutes 1996, section 124.2711, 
        subdivision 2a, is amended to read: 
           Subd. 2a.  [EARLY CHILDHOOD FAMILY EDUCATION LEVY.] To 
        obtain early childhood family education revenue, a district may 
        levy an amount equal to the tax rate of .609 .653 percent times 
        the adjusted tax capacity of the district for the year preceding 
        the year the levy is certified.  If the amount of the early 
        childhood family education levy would exceed the early childhood 
        family education revenue, the early childhood family education 
        levy shall equal the early childhood family education revenue. 
           Sec. 8.  Minnesota Statutes 1996, section 268.912, is 
        amended to read: 
           268.912 [HEAD START PROGRAM.] 
           The department of economic security children, families, and 
        learning is the state agency responsible for administering the 
        Head Start program.  The commissioner of economic security 
        children, families, and learning may make grants to public or 
        private nonprofit agencies for the purpose of providing 
        supplemental funds for the federal Head Start program. 
           Sec. 9.  Minnesota Statutes 1996, section 268.913, 
        subdivision 2, is amended to read: 
           Subd. 2.  [PROGRAM ACCOUNT 20.] "Program account 20" means 
        the federally designated and funded account limited to for 
        training and technical assistance activities. 
           Sec. 10.  Minnesota Statutes 1996, section 268.913, 
        subdivision 4, is amended to read: 
           Subd. 4.  [PROGRAM ACCOUNT 26 25.] "Program account 26 25" 
        means the federally designated and funded account that can only 
        be used to provide special services to handicapped diagnosed 
        children for parent child centers. 
           Sec. 11.  Minnesota Statutes 1996, section 268.914, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [STATE SUPPLEMENT FOR FEDERAL GRANTEES.] 
        (a) The commissioner of economic security shall children, 
        families, and learning must distribute money appropriated for 
        that purpose to Head Start program grantees to expand 
        services and to serve additional low-income children.  Money 
        must be allocated to each project Head Start grantee in 
        existence on the effective date of Laws 1989, chapter 282.  
        Migrant and Indian reservation grantees must be initially 
        allocated money based on the grantees' share of federal funds.  
        The remaining money must be initially allocated to the remaining 
        local agencies based equally on the agencies' share of federal 
        funds and on the proportion of eligible children in the 
        agencies' service area who are not currently being served.  A 
        Head Start grantee must be funded at a per child rate equal to 
        its contracted, federally funded base level for program accounts 
        20 to 26 20, 22, and 25 at the start of the fiscal year.  In 
        allocating funds under this paragraph, the commissioner of 
        economic security must assure that each Head Start grantee is 
        allocated no less funding in any fiscal year than was allocated 
        to that grantee in fiscal year 1993.  The commissioner may 
        provide additional funding to grantees for start-up costs 
        incurred by grantees due to the increased number of children to 
        be served.  Before paying money to the grantees, the 
        commissioner shall must notify each grantee of its initial 
        allocation, how the money must be used, and the number of 
        low-income children that must be served with the allocation.  
        Each grantee must notify the commissioner of the number 
        of additional low-income children it will be able to serve.  For 
        any grantee that cannot serve additional children to utilize its 
        full allocation, the commissioner shall must reduce the 
        allocation proportionately.  Money available after the initial 
        allocations are reduced must be redistributed to eligible 
        grantees. 
           (b) Up to 11 percent of the funds appropriated annually may 
        be used to provide grants to local Head Start agencies to 
        provide funds for innovative programs designed either to target 
        Head Start resources to particular at-risk groups of children or 
        to provide services in addition to those currently allowable 
        under federal Head Start regulations.  The commissioner shall 
        must award funds for innovative programs under this paragraph on 
        a competitive basis. 
           Sec. 12.  [ADDITIONAL EARLY CHILDHOOD FAMILY EDUCATION AID; 
        FISCAL YEAR 1998.] 
           A district that complies with Minnesota Statutes, section 
        121.882, shall receive additional early childhood family 
        education aid for fiscal year 1998 equal to $10 times the 
        greater of: 
           (1) 150; or 
           (2) the number of people under five years of age residing 
        in the school district on October 1 of the previous school 
        year.  The additional early childhood family education aid may 
        be used only for early childhood family education programs. 
           Sec. 13.  [EARLY CHILDHOOD FAMILY EDUCATION INFANT 
        DEVELOPMENT GRANT AWARDS.] 
           (a) Early childhood family education programs under 
        Minnesota Statutes, section 121.882, may apply to the 
        commissioner of children, families, and learning for a grant to 
        fund a pilot program to increase services for families of 
        infants.  Programming for infants and their families must 
        conform to the service and other requirements of the early 
        childhood family education programs.  The infant program must 
        include learning experiences for parents of infants that focus 
        on methods and information that stimulate and nurture the 
        intellectual and emotional development of infants.  Proposals 
        from programs with service areas where centralized classes are 
        not feasible or optimal, may include home visiting programs 
        under Minnesota Statutes, section 121.882, subdivision 2b. 
           (b) The eligible applicant shall submit an application in 
        the form and manner prescribed by the commissioner.  Grant 
        applicants shall describe the proposed infant and family 
        education approach.  The application must specify the program 
        components, outreach methods, targeted ages, anticipated role of 
        the home visits, if any, and how the program will encourage 
        participation by families with infants. 
           Sec. 14.  [OFFICE OF COMMUNITY SERVICES.] 
           The commissioner of children, families, and learning shall 
        review the accounts and funding for programs administered in the 
        office of community services.  The commissioner shall also 
        review the methods of distributing grants and revenue to 
        communities, programs, districts, and other organizations.  The 
        commissioner shall develop unified application forms for 
        competitive grant programs administered by the office.  The 
        commissioner shall present a proposal to the legislature on ways 
        to streamline applications, and to the extent possible, combine 
        accounts, programs, and funding streams. 
           Sec. 15.  [YEAR 2000 READY.] 
           The commissioner of children, families, and learning shall 
        ensure that any computer software or hardware that is purchased 
        with money appropriated in this act must be year 2000 ready. 
           Sec. 16.  [LINKED SERVICES; LITERACY; EDUCATION.] 
           The commissioner shall ensure that all early childhood, 
        community support, prevention, and family service programs 
        administered by the department of children, families, and 
        learning that receive state aid or state appropriations or are 
        eligible for grants through the department of children, 
        families, and learning must: 
           (1) develop methods to collaborate to encourage family 
        literacy; 
           (2) implement measures to link services with all programs 
        that support families and early childhood development; and 
           (3) ensure that education and educational development are a 
        program goal. 
           Sec. 17.  [REPORT SUNSET.] 
           Beginning September 15, 1997, the requirement to submit the 
        following reports expires: 
           (1) child abuse prevention trust fund disbursement plan 
        under Minnesota Statutes, section 119A.13; 
           (2) child care system report under Minnesota Statutes, 
        section 119B.24; 
           (3) community crime reduction report under Minnesota 
        Statutes, section 119A.31; 
           (4) administrative duties report under Minnesota Statutes, 
        section 119A.31; 
           (5) progress report on male responsibility grants under 
        Minnesota Statutes, section 126.84; 
           (6) school-linked services report under Minnesota Statutes, 
        section 256.995; 
           (7) state drug strategy under Minnesota Statutes, section 
        119A.26; 
           (8) chemical abuse and violence prevention council report 
        under Minnesota Statutes, section 119A.28; 
           (9) violence prevention grant report under Minnesota 
        Statutes, section 126.78; and 
           (10) Head Start report under Minnesota Statutes, section 
        268.917. 
           Sec. 18.  [APPROPRIATIONS.] 
           Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
        LEARNING.] The sums indicated in this section are appropriated 
        from the general fund to the department of children, families, 
        and learning for the fiscal years designated.  
           Subd. 2.  [LEARNING READINESS PROGRAM REVENUE.] For revenue 
        for learning readiness programs according to Minnesota Statutes, 
        sections 121.831 and 124.2615: 
             $10,316,000    .....     1998
             $10,405,000    .....     1999
           The 1998 appropriation includes $949,000 for 1997 and 
        $9,367,000 for 1998. 
           The 1999 appropriation includes $1,040,000 for 1998 and 
        $9,365,000 for 1999.  
           $10,000 each year may be spent for evaluation of learning 
        readiness programs. 
           $50,000 is for a grant to Itasca county for the Greenway 
        Readiness Program.  The program must include a half-day 
        readiness program for four-year olds, an early childhood 
        component, and a resource center. 
           $30,000 is for a grant to independent school district No. 
        544, Fergus Falls, to study ways to combine all early learning 
        programs and to fund those programs. 
           Any balance in the first year does not cancel but is 
        available in the second year. 
           Subd. 3.  [EARLY CHILDHOOD FAMILY EDUCATION AID.] For early 
        childhood family education aid according to Minnesota Statutes, 
        section 124.2711: 
             $15,618,000    .....     1998 
             $14,104,000    .....     1999
           The 1998 appropriation includes $1,361,000 for 1997 and 
        $14,257,000 for 1998.  
           The 1999 appropriation includes $1,585,000 for 1998 and 
        $12,519,000 for 1999.  
           $10,000 each year may be spent for evaluation of early 
        childhood family education programs.  
           $100,000 may be used for pilot technology grants to early 
        childhood education programs to enhance the use of technology.  
        Grants may be used to purchase, repair, or upgrade computer 
        hardware or software, and for training in the use of 
        technology.  To the extent practicable, the department shall 
        solicit donations of refurbished computers for distribution to 
        early childhood education programs. 
           Any balance in the first year does not cancel but is 
        available in the second year. 
           Subd. 4.  [HEALTH AND DEVELOPMENTAL SCREENING AID.] For 
        health and developmental screening aid according to Minnesota 
        Statutes, sections 123.702 and 123.7045: 
             $1,550,000     .....     1998 
             $1,550,000     .....     1999 
           The 1998 appropriation includes $155,000 for 1997 and 
        $1,395,000 for 1998.  
           The 1999 appropriation includes $155,000 for 1998 and 
        $1,395,000 for 1999.  
           Any balance in the first year does not cancel but is 
        available in the second year. 
           Subd. 5.  [WAY TO GROW.] For grants for existing way to 
        grow programs according to Minnesota Statutes, section 121.835:  
             $475,000       .....     1998
             $475,000       .....     1999
           Any balance in the first year does not cancel but is 
        available in the second year. 
           Subd. 6.  [PART H.] For the department of children, 
        families, and learning's share of the state's obligation under 
        Part H according to Minnesota Statutes, section 120.1701: 
             $400,000       .....     1998 
           Any balance in the first year does not cancel but is 
        available in the second year. 
           Subd. 7.  [EARLY CHILDHOOD FAMILY EDUCATION INFANT 
        DEVELOPMENT GRANTS.] For grants to early childhood family 
        education programs under Minnesota Statutes, section 121.882, to 
        fund initiatives under section 13: 
             $2,000,000     .....     1998 
           Any balance in the first year does not cancel but is 
        available in the second year.  This is a one-time appropriation 
        and is not to be added to the permanent base. 
           Of this amount, up to two percent each year may be used to 
        administer the grant program. 
           Subd. 8.  [HEAD START PROGRAM.] For Head Start programs 
        according to Minnesota Statutes, section 268.914: 
             $18,750,000    .....     1998
             $18,750,000    .....     1999
           The commissioner may use up to two percent each year for 
        state operations. 
           Any balance in the first year does not cancel but is 
        available in the second year. 
           $1,000,000 each year must be used for competitive grants to 
        local Head Start agencies for full year programming for children 
        ages 0 to 3.  The programs must comply with applicable federal 
        Head Start performance standards.  Grantees may use state grant 
        funds to provide services in addition to those allowed under 
        federal Head Start regulations. 
           Up to $250,000 is for a matching grant to Little Earth 
        Residents Association for programming in the Neighborhood Early 
        Learning Center. 
           Sec. 19.  [REPEALER.] 
           Minnesota Statutes 1996, sections 119B.03, subdivision 7; 
        119B.05, subdivisions 2 and 3; 119B.11, subdivision 2; 119B.19, 
        subdivision 2; 119B.21, subdivision 7; 121.8355, subdivision 1a; 
        and 268.913, subdivision 5, are repealed. 
           Sec. 20.  [EFFECTIVE DATE.] 
           Sections 1 and 2 apply to the 1997-1998 school year and 
        thereafter. 
           Section 7 (124.2711, subdivision 2a) is effective for 
        revenue for fiscal year 1999. 
                                   ARTICLE 2
                       COMMUNITY PROGRAMS AND PREVENTION 
           Section 1.  Minnesota Statutes 1996, section 15.53, 
        subdivision 2, is amended to read: 
           Subd. 2.  [PERIOD OF ASSIGNMENT.] The period of individual 
        assignment or detail under an interchange program shall not 
        exceed 24 months, nor shall any person be assigned or detailed 
        for more than 24 months during any 36-month period, except when 
        the assignment or detail is made to coincide with an 
        unclassified appointment under section 15.06.  A school 
        district, a county, or a public health entity may make an 
        assignment for a period not to exceed five years if the 
        assignment is made pursuant to section 121.8355, subdivision 6.  
        Details relating to any matter covered in sections 15.51 to 
        15.57 may be the subject of an agreement between the sending and 
        receiving agencies.  Elected officials shall not be assigned 
        from a sending agency nor detailed to a receiving agency. 
           Sec. 2.  [119A.08] [NEIGHBORHOOD-BASED SERVICES FOR 
        CHILDREN AND FAMILIES.] 
           Subdivision 1.  [PILOT PROJECTS AUTHORIZED.] The 
        commissioner may establish a pilot project for family services 
        collaboratives to deliver and broker services through 
        neighborhood-based community organizations. 
           Subd. 2.  [FAMILY SERVICE COLLABORATIVE; PILOT.] (a) A 
        family services collaborative under section 121.8355 may apply 
        to the commissioner to participate in the pilot project in 
        specified geographic areas.  The selected collaborative must 
        implement the program through family service centers and 
        eligible community groups that have strong ties to a local 
        neighborhood and represent the diversity of residents and that 
        have a history of providing services in the neighborhood. 
           (b) An eligible organization must submit an application to 
        the sponsoring family services collaborative with a description 
        of areas to be served, a neighborhood presence, the needs of the 
        area, the services to be provided with associated costs and 
        resources, the intended outcomes, and the proposed methods of 
        delivering service through volunteers, including any 
        reimbursement or incentive not to exceed $200 for any service.  
        Proposed services and amounts must be listed in an 
        outcomes-based format. 
           Subd. 3.  [ELIGIBLE ACTIVITIES.] A participating center or 
        group may deliver, or arrange for the delivery of, needed 
        services listed in the application including assisting family 
        members to achieve the GED requirements; assisting with English 
        as a second language or citizenship classes and tests; assisting 
        with access to early childhood programs, childhood 
        immunizations, suitable child care, and home visits; and 
        assisting in crime prevention through after-school enrichment 
        activities, truancy prevention, and tutoring for academically 
        under-achieving children. 
           A collaborative that receives a grant under this section 
        shall establish procedures to ensure the quality of the services 
        paid for with grant funds and to monitor the delivery of 
        services.  
           Sec. 3.  Minnesota Statutes 1996, section 119A.13, 
        subdivision 2, is amended to read: 
           Subd. 2.  [ADVISORY COUNCIL.] An advisory council of 19 17 
        members is established under section 15.059.  The commissioners 
        of human services, public safety, health, and children, 
        families, and learning, 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 ten members who shall 
        demonstrate knowledge in the area of child abuse prevention 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 
        sections 119A.10 to 119A.16.  The council does not expire as 
        provided by section 15.059, subdivision 5. 
           Sec. 4.  Minnesota Statutes 1996, section 119A.13, 
        subdivision 3, is amended to read: 
           Subd. 3.  [PLAN FOR DISBURSEMENT OF FUNDS.] By June 1, 
        1987, the commissioner, assisted by the advisory council, shall 
        develop a plan to disburse money from the trust fund.  In 
        developing the plan, the commissioner shall review prevention 
        programs.  The plan must ensure that all geographic areas of the 
        state have an equal opportunity to establish prevention programs 
        and receive trust fund money.  Biennially thereafter the 
        commissioner shall send the plan to the legislature and the 
        governor by January 1 of each odd-numbered year.  
           Sec. 5.  Minnesota Statutes 1996, section 119A.13, 
        subdivision 4, is amended to read: 
           Subd. 4.  [RESPONSIBILITIES OF THE COMMISSIONER.] (a) The 
        commissioner shall: 
           (1) provide for the coordination and exchange of 
        information on the establishment and maintenance of prevention 
        programs; 
           (2) develop and publish criteria for receiving trust fund 
        money by prevention programs; 
           (3) review, approve, and monitor the spending of trust fund 
        money by prevention programs; 
           (4) provide statewide educational and public informational 
        seminars to develop public awareness on preventing child abuse; 
        to encourage professional persons and groups to recognize 
        instances of child abuse and work to prevent them; to make 
        information on child abuse prevention available to the public 
        and to organizations and agencies; and to encourage the 
        development of prevention programs; 
           (5) establish a procedure for an annual, internal 
        evaluation of the functions, responsibilities, and performance 
        of the commissioner in carrying out Laws 1986, chapter 423.  In 
        a year in which the state plan is prepared, the evaluation must 
        be coordinated with the preparation of the state plan; 
           (6) provide technical assistance to local councils and 
        agencies working in the area of child abuse prevention; and 
           (7) accept and review grant applications beginning June 1, 
        1987. 
           (b) The commissioner shall recommend to the governor and 
        the legislature changes in state programs, statutes, policies, 
        budgets, and standards that will reduce the problems of child 
        abuse, improve coordination among state agencies that provide 
        prevention services, and improve the condition of children, 
        parents, or guardians in need of prevention program services. 
           Sec. 6.  Minnesota Statutes 1996, section 119A.14, is 
        amended to read: 
           119A.14 [LOCAL CHILD ABUSE PREVENTION COUNCILS.] 
           Subdivision 1.  [ESTABLISHMENT OF COUNCIL.] A child abuse 
        prevention council may be established in any county or group of 
        counties that was eligible to receive funds under Minnesota 
        Statutes 1986, section 145.917 as of January 1, 1986.  A council 
        organized in such a county or group of counties shall be 
        authorized by the commissioner to review programs seeking trust 
        fund money on finding that the council meets the criteria in 
        this subdivision: 
           (a) The council has submitted a plan for the prevention of 
        child abuse that includes a survey rank ordering of needed 
        programs and services, assesses the need for additional programs 
        or services, and demonstrates that standards and procedures have 
        been established to ensure that funds will be distributed and 
        used according to Laws 1986, chapter 423. 
           (b) A single-county council shall consist of: 
           (1) members of a multidisciplinary child protection team 
        which must be established under section 626.558 a minimum of 
        nine members with the majority consisting of members from the 
        community-at-large who do not represent service-providing 
        agencies.  These members shall represent the demographic and 
        geographic composition of the county and, to the extent 
        possible, represent the following groups:  parents, businesses, 
        racial and ethnic minority communities, and the faith 
        communities; and 
           (2) if necessary, enough additional members appointed by 
        the county with knowledge in the area of child abuse prevention 
        so that a majority of the council is composed of members who do 
        not represent public agencies. 
           (c) A multicounty council shall be selected by composed of 
        the combined membership of those multidisciplinary teams which 
        have been established in the counties under section 626.558 and 
        shall consist of: persons in paragraph (b). 
           (1) one representative each from local human services 
        agencies, county attorney offices, county sheriff offices, and 
        health and education agencies, chosen from among the membership 
        of all the teams; 
           (2) one representative from any other public agency group 
        represented among the combined teams; and 
           (3) enough additional members from the public who have 
        knowledge in the area of child abuse so that a majority of the 
        council is composed of members who do not represent public 
        agencies. 
           (d) In any multicounty group eligible to establish a 
        council under this subdivision, at least 50 percent of the 
        counties must have established a multidisciplinary team under 
        section 626.558 before a council may be established. 
           Subd. 2.  [REVIEW BY COUNCIL.] To be eligible to receive a 
        grant from the trust fund, an applicant must have had 
        its program application reviewed by a child abuse prevention 
        council from the applicant's geographic area found by the 
        commissioner to meet the criteria in this section.  In reviewing 
        all such programs applications, the council shall consider the 
        extent to which the applicant meets the criteria and standards 
        in Laws 1986, chapter 423, and the degree to which the program 
        meets the needs of the geographic area.  The council shall 
        provide to the advisory council its comments and recommendations 
        concerning each program application reviewed and shall provide 
        the advisory council with its prioritization by rank ordering of 
        all programs applications reviewed. 
           Sec. 7.  Minnesota Statutes 1996, section 119A.15, 
        subdivision 2, is amended to read: 
           Subd. 2.  [MATCHING AND OTHER REQUIREMENTS.] Trust fund 
        money shall only be distributed to applicants that demonstrate 
        an ability to match at least 40 percent of the amount of trust 
        fund money requested and whose proposals meet the other 
        criteria.  The matching requirement may be met through in-kind 
        donations.  In awarding grants, the commissioner shall consider 
        the extent to which the applicant has demonstrated a willingness 
        and ability to: 
           (1) continue the prevention program or service if trust 
        fund money is eliminated or reduced; and 
           (2) provide prevention program models and consultation to 
        other organizations and communities. 
           Sec. 8.  Minnesota Statutes 1996, section 119A.15, 
        subdivision 5, is amended to read: 
           Subd. 5.  [LOCAL COUNCIL AS RECIPIENT OF FUNDS.] The 
        commissioner may disburse funds to a local council on the same 
        basis as to any other applicant for community education 
        purposes, or as for administrative costs in carrying out Laws 
        1986, chapter 423, if all criteria and standards are met.  Funds 
        disbursed as administrative costs to a local council must not 
        exceed five percent of total funds disbursed to the area served 
        by the local council. 
           Sec. 9.  Minnesota Statutes 1996, section 119A.16, is 
        amended to read: 
           119A.16 [ACCEPTANCE OF FEDERAL FUNDS AND OTHER DONATIONS.] 
           The commissioner may accept federal money and gifts, 
        donations, and bequests for the purposes of Laws 1986, chapter 
        423.  Money so received and proceeds from the sale of 
        promotional items, minus sales promotional costs, must be 
        deposited in the trust fund and must be made available annually 
        to the commissioner. 
           Sec. 10.  Minnesota Statutes 1996, section 119A.31, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [PROGRAMS.] The commissioner shall, in 
        consultation with the chemical abuse and violence prevention 
        council, administer a grant program to fund community-based 
        programs that are designed to enhance the community's sense of 
        personal security and to assist the community in its crime 
        control and prevention efforts.  Examples of qualifying programs 
        include, but are not limited to, the following: 
           (1) community-based programs designed to provide services 
        for children aged 8 to 13 who are juvenile offenders or who are 
        at risk of becoming juvenile offenders.  The programs must give 
        priority to: 
           (i) juvenile restitution; 
           (ii) prearrest or pretrial diversion, including through 
        mediation; 
           (iii) probation innovation; 
           (iv) teen courts, community service; or 
           (v) post incarceration alternatives to assist youth in 
        returning to their communities; 
           (2) community-based programs designed to provide at-risk 
        children and youth aged 8 to 13 with after-school and summer 
        enrichment activities; 
           (3) community-based programs designed to discourage young 
        people from involvement in unlawful drug or street gang 
        activities such as neighborhood youth centers; 
           (4) neighborhood block clubs and innovative community-based 
        crime prevention programs; 
           (5) community- and school-based programs designed to enrich 
        the educational, cultural, or recreational opportunities of 
        at-risk children and youth, including programs designed to keep 
        at-risk youth from dropping out of school and encourage school 
        dropouts to return to school; 
           (6) community-based programs designed to intervene with 
        juvenile offenders who are identified as likely to engage in 
        repeated criminal activity in the future unless intervention is 
        undertaken; 
           (7) community-based collaboratives that coordinate multiple 
        programs and funding sources to address the needs of at-risk 
        children and youth, including, but not limited to, 
        collaboratives that address the continuum of services for 
        juvenile offenders and those who are at risk of becoming 
        juvenile offenders; 
           (8) programs that are proven successful at increasing the 
        rate of school success or the rate of post-secondary education 
        attendance for high-risk students; 
           (9) community-based programs that provide services to 
        homeless youth; 
           (10) programs designed to reduce truancy; and 
           (11) other community- and school-based crime prevention 
        programs that are innovative and encourage substantial 
        involvement by members of the community served by the program; 
           (12) community-based programs that attempt to prevent and 
        ameliorate the effects of teenage prostitution; 
           (13) programs for mentoring at-risk youth, including youth 
        at risk of gang involvement; and 
           (14) programs operated by community violence prevention 
        councils. 
           Sec. 11.  Minnesota Statutes 1996, section 121.11, is 
        amended by adding a subdivision to read: 
           Subd. 7e.  [GENERAL EDUCATION DEVELOPMENT TESTS RULES.] The 
        state board may amend rules to reflect changes in the national 
        minimum standard score for passing the General Education 
        Development (GED) tests. 
           Sec. 12.  Minnesota Statutes 1996, section 121.88, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [AUTHORIZATION.] Each school board may 
        initiate a community education program in its district and 
        provide for the general supervision of the program.  Each board 
        may, as it considers appropriate, employ community education 
        directors and coordinators staff to further the purposes of the 
        community education program.  
           Sec. 13.  Minnesota Statutes 1996, section 121.88, is 
        amended by adding a subdivision to read: 
           Subd. 2a.  [COMMUNITY EDUCATION DIRECTOR.] (a) Except as 
        provided under paragraphs (b) and (c), each board shall employ a 
        licensed community education director.  The board shall submit 
        the name of the person who is serving as director of community 
        education under this section on the district's annual community 
        education report to the commissioner. 
           (b) A board may apply to the commissioner under Minnesota 
        Rules, part 3512.3500, subpart 9, for authority to use an 
        individual who is not licensed as a community education director.
           (c) A board of a district with a total population of 2,000 
        or less may identify an employee who holds a valid Minnesota 
        principal or superintendent license under Minnesota Rules, 
        chapter 3512, to serve as director of community education.  To 
        be eligible for an exception under this paragraph, the board 
        shall certify in writing to the commissioner that the district 
        has not placed a licensed director of community education on 
        unrequested leave. 
           Sec. 14.  Minnesota Statutes 1996, section 121.88, 
        subdivision 10, is amended to read: 
           Subd. 10.  [EXTENDED DAY PROGRAMS.] (a) A school board may 
        offer, as part of a community education program, an extended day 
        program for children from kindergarten through grade 6 for the 
        purpose of expanding students' learning opportunities.  A 
        program must include the following: 
           (1) adult supervised programs while school is not in 
        session; 
           (2) parental involvement in program design and direction; 
           (3) partnerships with the K-12 system, and other public, 
        private, or nonprofit entities; and 
           (4) opportunities for trained secondary school pupils to 
        work with younger children in a supervised setting as part of a 
        community service program. 
           (b) The district may charge a sliding fee based upon family 
        income for extended day programs.  The district may receive 
        money from other public or private sources for the extended day 
        program.  The school board of the district shall develop 
        standards for school age child care programs.  Districts with 
        programs in operation before July 1, 1990, must adopt standards 
        before October 1, 1991.  All other districts must adopt 
        standards within one year after the district first offers 
        services under a program authorized by this subdivision.  The 
        state board of education may not adopt rules for extended day 
        programs. 
           (c) The district shall maintain a separate account within 
        the community services fund for all funds related to the 
        extended day program. 
           Sec. 15.  Minnesota Statutes 1996, section 124.17, 
        subdivision 2e, is amended to read: 
           Subd. 2e.  [AVERAGE DAILY MEMBERSHIP, PUPILS AGE 21 OR 
        OVER.] The average daily membership for pupils age 21 or over, 
        is equal to the ratio of the number of yearly hours that the 
        pupil is in membership to the number of instructional hours in 
        the district's regular school year.  A pupil enrolled in the 
        graduation incentives program under section 126.22, subdivision 
        2, paragraph (b), for more than the number of instructional 
        hours in the district's regular school year may be counted as 
        more than one pupil in average daily membership. 
           Sec. 16.  Minnesota Statutes 1996, section 124.26, 
        subdivision 2, is amended to read: 
           Subd. 2.  [ACCOUNTS; REVENUE; AID.] Each district, group of 
        districts, or private nonprofit organization providing adult 
        basic education programs shall establish and maintain accounts 
        separate from all other district accounts for the receipt and 
        disbursement of all funds related to these programs.  All 
        revenue received pursuant to this section shall be utilized 
        solely for the purposes of adult basic education programs.  In 
        no case shall federal and state aid plus levy equal more than 
        100 percent of the actual cost of providing these programs. 
           Sec. 17.  Minnesota Statutes 1996, section 124.2601, 
        subdivision 3, is amended to read: 
           Subd. 3.  [AID REVENUE.] Adult basic education aid revenue 
        for each approved program equals 65 percent of the general 
        education formula allowance times the number of full-time 
        equivalent students in its adult basic education program. 
           Sec. 18.  Minnesota Statutes 1996, section 124.2601, 
        subdivision 4, is amended to read: 
           Subd. 4.  [LEVY.] To obtain adult basic education revenue, 
        a district with an eligible program may levy an amount not to 
        exceed the amount raised by .12 percent times the adjusted tax 
        capacity of the district for the preceding year. 
           Sec. 19.  Minnesota Statutes 1996, section 124.2601, 
        subdivision 5, is amended to read: 
           Subd. 5.  [REVENUE AID.] Adult basic education revenue aid 
        is equal to the sum of difference between an approved program's 
        adult basic education aid revenue and its adult basic education 
        levy.  If the district does not levy the full amount permitted, 
        the adult education aid must be reduced in proportion to the 
        actual amount levied. 
           Sec. 20.  Minnesota Statutes 1996, section 124.2601, 
        subdivision 6, is amended to read: 
           Subd. 6.  [AID GUARANTEE.] (a) For fiscal year 1994, any 
        adult basic education program that receives less state aid under 
        subdivisions 3 and 7 than from the aid formula for fiscal year 
        1992 shall receive the amount of aid it received in fiscal year 
        1992. 
           (b) For 1995 and later, 1996, and 1997 fiscal years, an 
        adult basic education program that receives aid shall receive at 
        least the amount of aid it received in fiscal year 1992 under 
        subdivisions 3 and 7, plus aid equal to the amount of revenue 
        that would have been raised for taxes payable in 1994 under 
        Minnesota Statutes 1992, section 124.2601, subdivision 4, minus 
        the amount raised under subdivision 4. 
           (c) For fiscal year 1998, any adult basic education program 
        that receives less state aid than in fiscal year 1997 shall 
        receive additional aid equal to 80 percent of the difference 
        between its 1997 aid and the amount of aid under subdivision 5.  
        For fiscal year 1999 and later, additional aid under this 
        paragraph must be reduced by 20 percent each year. 
           Sec. 21.  Minnesota Statutes 1996, section 124.261, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [AID ELIGIBILITY.] For fiscal year years 
        1996 1998 and later, adult high school graduation aid for 
        eligible pupils age 21 or over, equals 65 percent of the general 
        education formula allowance times 1.30 times the average daily 
        membership under section 124.17, subdivision 2e.  For 1997 and 
        later fiscal years, adult high school graduation aid per 
        eligible pupil equals the amount established by the commissioner 
        of children, families, and learning, in consultation with the 
        commissioner of finance, based on the appropriation for this 
        program.  Adult high school graduation aid must be paid in 
        addition to any other aid to the district.  Pupils age 21 or 
        over may not be counted by the district for any purpose other 
        than adult high school graduation aid. 
           Sec. 22.  Minnesota Statutes 1996, section 124.2713, 
        subdivision 6, is amended to read: 
           Subd. 6.  [COMMUNITY EDUCATION LEVY.] To obtain community 
        education revenue, a district may levy the amount raised by a 
        tax rate of 1.1 1.09 percent times the adjusted net tax capacity 
        of the district.  If the amount of the community education levy 
        would exceed the community education revenue, the community 
        education levy shall be determined according to subdivision 6a. 
           Sec. 23.  Minnesota Statutes 1996, section 124.2713, 
        subdivision 8, is amended to read: 
           Subd. 8.  [USES OF GENERAL REVENUE.] (a) General community 
        education revenue may be used for: 
           (1) nonvocational, recreational, and leisure time 
        activities and programs; 
           (2) programs for adults with disabilities, if the programs 
        and budgets are approved by the department of children, 
        families, and learning; 
           (3) adult basic education programs, according to section 
        124.26; 
           (4) summer programs for elementary and secondary pupils; 
           (5) implementation of a youth development plan; 
           (6) implementation of a youth service program; 
           (7) early childhood family education programs, according to 
        section 121.882; and 
           (8) extended day programs, according to section 121.88, 
        subdivision 10. 
           (9) In addition to money from other sources, a district may 
        use up to ten percent of its community education revenue for 
        equipment that is used exclusively in community education 
        programs.  This revenue may be used only for the following 
        purposes:  
           (i) to purchase or lease computers and related materials; 
           (ii) to purchase or lease equipment for instructional 
        programs; and 
           (iii) to purchase textbooks and library books. 
           (b) General community education revenue must not be used to 
        subsidize the direct activity costs for adult enrichment 
        programs.  Direct activity costs include, but are not limited 
        to, the cost of the activity leader or instructor, cost of 
        materials, or transportation costs. 
           Sec. 24.  Minnesota Statutes 1996, section 124.2716, 
        subdivision 3, is amended to read: 
           Subd. 3.  [EXTENDED DAY LEVY.] To obtain extended day 
        revenue, a school district may levy an amount equal to the 
        district's extended day revenue as defined in subdivision 2 
        multiplied by the lesser of one, or the ratio of the quotient 
        derived by dividing the adjusted net tax capacity of the 
        district for the year before the year the levy is certified by 
        the actual pupil units in the district for the school year to 
        which the levy is attributable, to $3,700 $3,767.  
           Sec. 25.  Minnesota Statutes 1996, section 268.53, 
        subdivision 5, is amended to read: 
           Subd. 5.  [FUNCTIONS; POWERS.] A community action agency 
        shall:  
           (a) Plan systematically for an effective community action 
        program; develop information as to the problems and causes of 
        poverty in the community; determine how much and how effectively 
        assistance is being provided to deal with those problems and 
        causes; and establish priorities among projects, activities and 
        areas as needed for the best and most efficient use of 
        resources; 
           (b) Encourage agencies engaged in activities related to the 
        community action program to plan for, secure, and administer 
        assistance available under section 268.52 or from other sources 
        on a common or cooperative basis; provide planning or technical 
        assistance to those agencies; and generally, in cooperation with 
        community agencies and officials, undertake actions to improve 
        existing efforts to reduce poverty, such as improving day-to-day 
        communications, closing service gaps, focusing resources on the 
        most needy, and providing additional opportunities to low-income 
        individuals for regular employment or participation in the 
        programs or activities for which those community agencies and 
        officials are responsible; 
           (c) Initiate and sponsor projects responsive to needs of 
        the poor which are not otherwise being met, with particular 
        emphasis on providing central or common services that can be 
        drawn upon by a variety of related programs, developing new 
        approaches or new types of services that can be incorporated 
        into other programs, and filling gaps pending the expansion or 
        modification of those programs; 
           (d) Establish effective procedures by which the poor and 
        area residents concerned will be enabled to influence the 
        character of programs affecting their interests, provide for 
        their regular participation in the implementation of those 
        programs, and provide technical and other support needed to 
        enable the poor and neighborhood groups to secure on their own 
        behalf available assistance from public and private sources; 
           (e) Join with and encourage business, labor and other 
        private groups and organizations to undertake, together with 
        public officials and agencies, activities in support of the 
        community action program which will result in the additional use 
        of private resources and capabilities, with a view to developing 
        new employment opportunities, stimulating investment that will 
        have a measurable impact on reducing poverty among residents of 
        areas of concentrated poverty, and providing methods by which 
        residents of those areas can work with private groups, firms, 
        and institutions in seeking solutions to problems of common 
        concern.  
           Community action agencies, the Minnesota migrant council, 
        and the Indian reservations, may enter into cooperative 
        purchasing agreements and self-insurance programs with local 
        units of government.  Nothing in this section expands or limits 
        the current private or public nature of a local community action 
        agency. 
           (f) Adopt policies that require the agencies to refer area 
        residents and community action program constituents to education 
        programs that increase literacy, improve parenting skills, and 
        address the needs of children from families in poverty.  These 
        programs include, but are not limited to, early childhood family 
        education programs, adult basic education programs, and other 
        life-long learning opportunities.  The agencies and agency 
        programs, including Head Start, shall collaborate with child 
        care and other early childhood education programs to ensure 
        smooth transitions to work for parents. 
           Sec. 26.  Minnesota Statutes 1996, section 517.08, 
        subdivision 1c, is amended to read: 
           Subd. 1c.  [DISPOSITION OF LICENSE FEE.] Of the marriage 
        license fee collected pursuant to subdivision 1b, the court 
        administrator shall pay $55 to the state treasurer to be 
        deposited as follows: 
           (1) $50 in the general fund; 
           (2) $3 in the special revenue fund to be appropriated to 
        the commissioner of human services children, families, and 
        learning for supervised visitation facilities under section 
        256F.09; and 
           (3) $2 in the special revenue fund to be appropriated to 
        the commissioner of health for developing and implementing the 
        MN ENABL program under section 145.9255. 
           Sec. 27.  Laws 1996, chapter 463, section 4, subdivision 2, 
        as amended by Laws 1997, chapter 3, section 1, is amended to 
        read: 
        Subd. 2.  Youth Initiative Grants                    16,000,000 
        For grants to local government units to 
        design, furnish, equip, acquire, 
        demolish, repair, replace, or construct 
        parks and, recreation buildings and 
        school buildings to provide youth, with 
        preference for youth in grades four 
        through eight, with regular enrichment 
        activities during nonschool hours, 
        including after school, evenings, 
        weekends, and school vacation periods, 
        and that will provide equal access and 
        programming for girls.  The buildings 
        may be leased to nonprofit community 
        organizations, subject to Minnesota 
        Statutes, section 16A.695, for the same 
        purposes.  Enrichment programs include 
        academic enrichment, homework 
        assistance, computer and technology 
        use, arts and cultural activities, 
        clubs, school-to-work and work force 
        development, athletic, and recreational 
        activities.  Grants must be used to 
        expand the number of children 
        participating in enrichment programs or 
        improve the quality or range of program 
        offerings.  The facilities must be 
        fully available for programming 
        sponsored by youth-serving nonprofit 
        and community groups, or school, 
        county, or city programs, for maximum 
        hours after school, evenings, weekends, 
        summers, and other school vacation 
        periods.  Priority must be given to 
        proposals that demonstrate 
        collaboration among private, nonprofit, 
        and public agencies, including regional 
        entities dealing with at-risk youth, 
        and community and parent organizations 
        in arranging for programming, staffing, 
        transportation, and equipment.  All 
        proposals must include an inventory of 
        existing facilities and an assessment 
        of programming needs in the community. 
        (a) Enrichment grants within the
        city of Minneapolis                                   5,000,000
        Of this amount, at least $2,500,000 
        must be used in the neighborhoods of 
        the Near North, Hawthorne, Sumner- 
        Glenwood-Harrison, Powderhorn, Central, 
        Whittier, and Phillips. 
        (b) Enrichment grants within the 
        city of St. Paul                                      5,000,000
        Of this amount, at least $2,500,000 
        must be used in the neighborhoods of 
        Summit-University, Thomas-Dale, North 
        End, Payne-Phalen, Daytons Bluff, and 
        the West Side. 
        The remaining $2,500,000 is available 
        citywide, with priority for some of the 
        remaining amount given to proposals by 
        public/private partnerships currently 
        offering after-school enrichment 
        programs in low-income areas in 
        conjunction with a neighborhood-based 
        organization.  Up to $100,000 of the 
        remaining $2,500,000 may be used to 
        develop urban sports facilities for 
        at-risk inner city youth, including 
        those older than eighth grade. 
        (c) Enrichment grants outside 
        of the cities of Minneapolis 
        and St. Paul                                         6,000,000
        Priority must be given to school 
        attendance areas with high 
        concentrations of children eligible for 
        free or reduced school lunch and to 
        government units demonstrating a 
        commitment to collaborative youth 
        efforts. 
        $500,000 is to the city of Bloomington 
        for after school enrichment activities 
        in the northeast Bloomington study area.
        The commissioner of children, families, 
        and learning must make a grant of at 
        least $1,000,000 to a school district 
        that is a part of a collaborative 
        effort that has at least two other 
        school districts, is multicultural and 
        multijurisdictional, and has previously 
        received a facility planning grant for 
        collaborative purposes. 
        (d) Each grant must be matched by $1 
        from local sources for each $2 of state 
        money.  In-kind contributions of 
        facilities may be used for the local 
        match.  The value of in-kind 
        contributions must be determined by the 
        commissioner of finance.  
        (e) Preference must be given to 
        projects for which at least ten percent 
        of the youth initiative grant is 
        expended using youthbuild under 
        Minnesota Statutes, sections 268.361 to 
        268.367, or other youth employment and 
        training programs, for the labor 
        portion of the construction.  Eligible 
        programs must consult with appropriate 
        labor organizations to deliver 
        education and training. 
           Sec. 28.  [MINNESOTA ADOLESCENT PARENTING GRANT PROGRAM.] 
           Subdivision 1.  [ESTABLISHMENT.] A grant program is 
        established to provide school-based, comprehensive, 
        community-linked programs for ensuring the long-term 
        self-sufficiency of adolescent families and the development and 
        school readiness of their children. 
           Subd. 2.  [DEFINITION.] For purposes of this section, 
        "pregnancy prevention" means preventing pregnancies from 
        occurring and does not include abortion services. 
           Subd. 3.  [GOALS.] The goals of the adolescent parenting 
        grant programs are to: 
           (1) assist pregnant and parenting adolescents to make 
        significant gains in school attendance, attainment of state 
        graduation standards, and acquisition of school-to-career 
        skills; 
           (2) prevent child abuse and neglect by improving the 
        parenting and communication skills of pregnant and parenting 
        adolescents; 
           (3) reduce long-term welfare dependency among adolescent 
        parents; and 
           (4) improve the outcomes for adolescent parents and their 
        children in the number of healthy births; pregnancy prevention; 
        cognitive, social, linguistic, and emotional development; 
        immunization rates; access to primary health care; and school 
        readiness. 
           Subd. 4.  [ELIGIBLE STUDENTS.] The following students are 
        eligible for support services under the adolescent parenting 
        grant program: 
           (1) a student enrolled in a school district with an 
        approved adolescent parenting program who is age 21 or younger 
        and who is an expectant parent, custodial parent, or 
        noncustodial parent; and 
           (2) a child of a student covered by clause (1) who is under 
        the age of five and is not yet enrolled in kindergarten. 
           Subd. 5.  [GRANT APPLICATION.] A school district, group of 
        school districts, alternative learning programs approved by the 
        commissioner, or family service collaboratives may apply for an 
        adolescent parenting program grant to the commissioner of 
        children, families, and learning.  The application must include 
        a detailed description of the program, including a description 
        of the population to be served by the program, a description of 
        the community agency or agencies collaborating with the site to 
        provide support services, an explanation of how each of the 
        program components will contribute to achieving program 
        outcomes, the number of pupils to be served by the pilot 
        program, a detailed budget that demonstrates the capacity to 
        achieve the program's goals, and a comprehensive evaluation plan 
        for measuring progress toward achieving the program's goals. 
           Subd. 6.  [PROGRAM COMPONENTS.] An adolescent parenting 
        program must include: 
           (1) a high quality educational program provided in the 
        least restrictive environment that includes strategies to ensure 
        access to educational services, including flexible attendance 
        policies and class scheduling, and grants academic credit for 
        all work completed; 
           (2) to the extent possible, collaboration with other 
        governmental agencies and community-based organizations to 
        provide on-site support services, including child care; 
           (3) an individualized learning plan for each eligible 
        student that includes career goals; 
           (4) assurance of compliance with requirements of Public Law 
        Number 92-318, title IX, prohibiting discrimination against 
        students due to their pregnant or parenting status; 
           (5) courses in parent education and life skills; 
           (6) accountability measures for student performance linked 
        to graduation standards; 
           (7) professional development opportunities on adolescent 
        pregnancy and parenting issues and strategies to achieve 
        academic success with this student population; 
           (8) a system to document that adolescent parenting and 
        prevention support funds were used to provide support services 
        to eligible students; 
           (9) a comprehensive assessment of the district's adolescent 
        pregnancy prevention programs and recommendations for 
        improvements; 
           (10) a system for collecting and reporting specific student 
        data, including goals and outcome measurements; and 
           (11) a program advisory council, which may consist of an 
        existing local council. 
           Subd. 7.  [PROGRAM EVALUATION AND TESTIMONY.] The 
        commissioner of children, families, and learning shall conduct 
        an evaluation of the adolescent parenting program after one year 
        of implementation.  The commissioner shall evaluate the 
        program's impact on school attendance, academic achievement, 
        graduation rates, parenting skills, health, and other outcomes 
        that may be identified by the commissioner.  The commissioner 
        shall provide testimony on the evaluation results to the 
        children, families, and learning committees of the legislature 
        by January 15, 1999. 
           Sec. 29.  [CITIZENSHIP PROMOTION PROGRAM.] 
           Subdivision 1.  [ESTABLISHMENT.] A statewide citizenship 
        promotion program is established to assist legal immigrants 
        eligible to apply for United States citizenship.  The program 
        must consist of workshops designed to assist with citizenship 
        application procedures, citizenship and English for citizenship 
        classes, video citizenship instruction, and public education and 
        information. 
           Subd. 2.  [GRANTS APPLICATION.] The commissioner of 
        children, families, and learning shall award grants to public or 
        nonprofit organizations to operate the citizenship promotion 
        program.  Grants targeted for ethnic and geographic groups of 
        immigrants must be approximately proportional to the number of 
        immigrants eligible to apply for naturalization in the group and 
        the level of program activities necessary to assist a particular 
        group to attain citizenship.  The organizations may include 
        community-based ethnic or religious groups, school districts, 
        post-secondary institutions, community action agencies, family 
        service collaboratives, workforce development centers, and 
        advocacy groups. 
           (a) To be eligible to receive a grant, an organization must:
           (1) have documented experience in programs specifically 
        designed for immigrant and refugee populations; 
           (2) provide access to legal counseling; 
           (3) provide bilingual teaching for preliterate, vulnerable 
        populations and for those eligible for waiver of the English 
        requirements; 
           (4) have facilities accessible to physically handicapped 
        learners; 
           (5) ensure that no more than five percent of grant funds 
        will be used for administration; and 
           (6) have a system for fiscal accounting and reporting. 
           (b) Grant applications must include: 
           (1) demonstrated organizational experience in English or 
        citizenship instruction; 
           (2) population target goals for attaining citizenship; 
           (3) proposed class sizes and schedules; 
           (4) outreach and recruitment plans; and 
           (5) staff expertise description and training plans. 
           (c) Grants to operate application procedure workshops and 
        to expand citizenship and English for citizenship classes must 
        be awarded by September 15, 1997, with initial funding to target 
        services to legal immigrants who have lost eligibility for 
        federal SSI and Food Stamp programs. 
           Subd. 3.  [PROGRAM COMPONENTS.] The citizenship promotion 
        program must include: 
           (1) a public education program that prepares and 
        distributes information about citizenship eligibility 
        requirements, application procedures, test requirements, and 
        opportunities for assistance; 
           (2) workshops to assist applicants for naturalization with 
        the application process.  Applications must be screened for 
        completeness and legal advice must be available to applicants 
        before applications are submitted to the United States 
        Immigration and Naturalization Service.  Participants in 
        workshops must be screened for English proficiency and, upon 
        request, enrolled in appropriate classes to prepare for the 
        examination; 
           (3) support for existing classes for citizenship and 
        English for citizenship and identification of new providers in 
        underserved areas of the state.  Classes must be supported and 
        offered in native languages for those able to take the 
        citizenship test in their native language.  Within the limits of 
        available funding, transportation, child care, and interpreter 
        services must be provided; and 
           (4) a video instruction series to provide citizenship 
        education throughout the state. 
           Subd. 4.  [ADVISORY TASK FORCE.] The commissioner may 
        create an advisory task force under section 15.014 to advise the 
        commissioner on the citizenship promotion program.  Members of 
        the advisory task force must not participate in grant 
        discussions in which they have a proposal for funding. 
           Subd. 5.  [TESTIMONY.] The commissioner shall present 
        testimony by February 1, 1998, to the family and early childhood 
        education budget division in the senate and the family and early 
        childhood education finance division in the house of 
        representatives that summarizes the program activities, 
        outcomes, and recommendations regarding the need for 
        continuation. 
           Sec. 30.  [COOPERATIVE ENGLISH AS A SECOND LANGUAGE AND 
        ADULT BASIC EDUCATION PROGRAMS.] 
           Subdivision 1.  [NONPROFIT, COMMUNITY-BASED ORGANIZATIONS.] 
        Any school district, or adult basic education consortium that 
        receives revenue under Minnesota Statutes, section 124.2601, 
        must collaborate with community-based organizations and 
        nonprofit organizations within its district or region that have 
        demonstrated the capacity to deliver English as a second 
        language or citizenship programming.  The district or consortium 
        must consider an organization to have demonstrated the capacity 
        to deliver programming if the organization has past experience 
        or meets the criteria in subdivision 2.  No more than eight 
        percent of the total funds provided by a school district or an 
        adult basic education consortium to a nonprofit or 
        community-based organization under this section, may be used for 
        the administrative costs of providing English as a second 
        language, adult basic education, or citizenship programs. 
           Subd. 2.  [ELIGIBILITY CRITERIA.] A community-based 
        organization or nonprofit organization without past experience 
        providing adult basic education services under Minnesota 
        Statutes, section 124.2601, must demonstrate that it has met the 
        following criteria: 
           (1) be legally established as a nonprofit organization; 
           (2) have facilities that are accessible to all learners; 
           (3) have an established system for fiscal accounting and 
        reporting that is consistent with the department of children, 
        families, and learning's ABE completion report; 
           (4) employ a licensed teacher; and 
           (5) require all instructional staff to complete the 
        Minnesota Literacy Council's 12-hour training session. 
           Sec. 31.  [APPROPRIATIONS.] 
           Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
        LEARNING.] The sums indicated in this section are appropriated 
        from the general fund to the department of children, families, 
        and learning for the fiscal years designated. 
           Subd. 2.  [FAMILY COLLABORATIVES.] For family 
        collaboratives according to Laws 1995, First Special Session 
        chapter 3, article 4, section 29, subdivision 10: 
             $7,500,000     .....     1998
             $7,000,000     .....     1999
           Of the appropriation, $150,000 each year is for grants 
        targeted to assist in providing collaborative children's library 
        service programs.  To be eligible, a family collaborative grant 
        recipient must collaborate with at least one public library and 
        one children's or family organization.  The public library must 
        involve the regional public library system and multitype library 
        system to which it belongs in the planning and provide for an 
        evaluation of the program. 
           Of the amount for the family services collaborative in St. 
        Paul, $50,000 may be used for a grant for neighborhood-based 
        services under section 2.  
           No more than 2.5 percent of the appropriation is available 
        to the state to administer and evaluate the grant program. 
           Any balance in the first year does not cancel but is 
        available in the second year. 
           Subd. 3.  [COMMUNITY EDUCATION AID.] For community 
        education aid according to Minnesota Statutes, section 124.2713: 
             $1,828,000     .....     1998 
             $1,619,000     .....     1999
           The 1998 appropriation includes $236,000 for 1997 and 
        $1,592,000 for 1998.  
           The 1999 appropriation includes $175,000 for 1998 and 
        $1,444,000 for 1999.  
           Any balance the first year does not cancel but is available 
        in the second year. 
           Subd. 4.  [ADULTS WITH DISABILITIES PROGRAM AID.] For 
        adults with disabilities programs according to Minnesota 
        Statutes, section 124.2715: 
             $710,000       .....     1998 
             $710,000       .....     1999 
           Any balance in the first year does not cancel but is 
        available in the second year. 
           Of this amount, $40,000 each year may be used for pilot 
        programs in regions of the state that don't currently have 
        programs for adults with disabilities.  These programs may not 
        levy for fiscal year 1999 or later.  This is a one-time 
        appropriation and is not added to the base. 
           Subd. 5.  [HEARING-IMPAIRED ADULTS.] For programs for 
        hearing-impaired adults according to Minnesota Statutes, section 
        121.201: 
             $70,000        .....     1998
             $70,000        .....     1999
           Any balance in the first year does not cancel but is 
        available in the second year. 
           Subd. 6.  [VIOLENCE PREVENTION EDUCATION GRANTS.] For 
        violence prevention education grants according to Minnesota 
        Statutes, section 126.78: 
             $1,500,000     .....     1998
             $1,500,000     .....     1999
           Of the amount each year, $50,000 is for program 
        administration. 
           Any balance in the first year does not cancel but is 
        available in the second year. 
           Subd. 7.  [MALE RESPONSIBILITY.] For male responsibility 
        grants: 
             $250,000       .....     1998
             $250,000       .....     1999
           The commissioner of children, families, and learning may 
        enter into cooperative agreements with the commissioner of human 
        services to access federal money for child support and paternity 
        education programs. 
           Any balance in the first year does not cancel but is 
        available in the second year. 
           Subd. 8.  [ABUSED CHILDREN.] For abused children programs 
        according to Minnesota Statutes, section 119A.21: 
             $1,048,000     .....     1998 
             $1,079,000     .....     1999
           Any balance in the first year does not cancel but is 
        available in the second year. 
           Subd. 9.  [DRUG POLICY AND VIOLENCE PREVENTION PROGRAMS.] 
        For drug policy, violence prevention, and family visitation 
        programs: 
             $3,000,000     .....     1998
             $3,000,000     .....     1999
           Any balance in the first year does not cancel but is 
        available in the second year. 
           Up to $400,000 each year is for grants for mentoring 
        at-risk youth.  Of the fiscal year 1998 appropriation, up to 
        $138,000 and of the fiscal year 1999 appropriation up to 
        $100,000 is for grants under Laws 1995, chapter 226, article 3, 
        section 62.  
           Up to $75,000 each year is for grants to community-based 
        violence prevention councils. 
           Subd. 10.  [CHILDREN'S TRUST FUND.] For children's trust 
        fund according to Minnesota Statutes, sections 119A.12 and 
        119A.13: 
             $247,000       .....     1998
             $247,000       .....     1999
           Any balance in the first year does not cancel but is 
        available in the second year. 
           Subd. 11.  [AFTER SCHOOL ENRICHMENT GRANTS.] For after 
        school enrichment grants according to Laws 1996, chapter 412, 
        article 4, section 30: 
             $4,907,000     .....     1998
             $4,907,000     .....     1999
           The commissioner may use up to three percent of this 
        appropriation to provide technical assistance to community 
        organizations. 
           Any balance in the first year does not cancel but is 
        available in the second year. 
           For fiscal year 1998, the commissioner may award grantees 
        one additional year of funding up to the grant award in fiscal 
        year 1997.  For fiscal year 1999 and beyond, the appropriation 
        must be used to award grants on a competitive basis. 
           Subd. 12.  [ALCOHOL-IMPAIRED DRIVER.] (a) For grants with 
        funds received under Minnesota Statutes, section 171.29, 
        subdivision 2, paragraph (b), clause (4): 
             $200,000       .....     1998
             $200,000       .....     1999
           (b) These appropriations are from the alcohol-impaired 
        driver account of the special revenue fund to the department of 
        children, families, and learning for chemical abuse prevention 
        grants.  
           (c) Up to $200,000 each year may be used for chemical abuse 
        prevention grants to provide a match for at least two community 
        collaborative projects for children and youth developed by a 
        regional organization established under Minnesota Statutes. 
           The regional organization must include a broad 
        cross-section of public and private sector community 
        representatives to address specific community needs of children 
        and youth.  A regional organization that receives a grant must 
        provide a two-to-one match of nonstate dollars. 
           Subd. 13.  [EXTENDED DAY AID.] For extended day aid 
        according to Minnesota Statutes, section 124.2716: 
             $347,000       .....     1998 
             $304,000       .....     1999
           The 1998 appropriation includes $37,000 for 1997 and 
        $310,000 for 1998. 
           The 1999 appropriation includes $34,000 for 1998 and 
        $270,000 for 1999. 
           Any balance in the first year does not cancel but is 
        available in the second year. 
           Subd. 14.  [ADOLESCENT PARENTING GRANTS.] For adolescent 
        parenting grants under section 28: 
             $800,000       .....     1998 
           Any balance the first year does not cancel but is available 
        in the second year.  This money is available for fiscal years 
        1998 and 1999. 
           The commissioner shall make grants under this section to 
        two metropolitan area school districts and two nonmetropolitan 
        adolescent parenting programs. 
           Where applicable, the department shall assure the 
        coordination of male responsibility grants, the Minnesota 
        adolescent parenting program, ENABL, and any federal resources 
        available to serve pregnant or parenting adolescents or programs 
        for the prevention of pregnancy.  Pregnancy prevention means to 
        prevent pregnancies from occurring, and does not include 
        abortion referral or services.  
           This appropriation is available for fiscal years 1998 and 
        1999 only.  Up to 2.5 percent of the appropriation is available 
        for administrative costs. 
           Subd. 15.  [LEAD HAZARD REDUCTION.] For the lead hazard 
        reduction program in Minnesota Statutes, section 268.92: 
             $200,000       .....     1998
           The appropriation is available for the biennium ending June 
        30, 1999.  
           Of this amount, 25 percent is for a grant to the city of St.
        Louis Park to conduct lead testing and cleanup in the 
        residential neighborhoods contaminated by an industrial lead 
        site.  The remaining amount is for a nonprofit organization that 
        is currently operating the CLEARCorps lead hazard reduction 
        project and is willing to expand its geographic service area.  
           Subd. 16.  [CITIZENSHIP PROMOTION PROGRAM.] For the 
        citizenship promotion program under section 29: 
             $1,000,000     .....     1998 
           Of this appropriation, up to 2.5 percent each year may be 
        used for administrative costs.  Any balance in the first year 
        does not cancel but is available the second year. 
           Subd. 17.  [CHILD GUIDE PREVENTION PROGRAM.] For the 
        southwest and west central service cooperative to operate the 
        Willmar child guide prevention program for children in 
        kindergarten through grade 8 in independent school district No. 
        347, Willmar: 
             $250,000       .....     1998
           Any balance in the first year does not cancel but is 
        available in the second year. 
           Subd. 18.  [ADULT BASIC EDUCATION AID.] For adult basic 
        education aid according to Minnesota Statutes, section 124.26 in 
        fiscal year 1998 and Minnesota Statutes, section 124.2601 in 
        fiscal year 1999:  
             $12,474,000    .....    1998
             $12,473,000    .....    1999 
           The 1998 appropriation includes $837,000 for 1997 and 
        $11,637,000 for 1998.  
           The 1999 appropriation includes $1,293,000 for 1998 and 
        $11,180,000 for 1999.  
           $75,000 each year is for the adult basic education 
        technology project to design, implement, and evaluate the use of 
        online technology applications for adult learners.  A working 
        group representing adult basic education programs with 
        demonstrated skills in technology applications must work 
        collaboratively on the technology project.  The project must 
        include an electronic curriculum that is consistent with the 
        Minnesota graduation standards.  The project must also identify 
        and implement methods to transfer the curriculum and online 
        methods to adult basic education providers and provide effective 
        staff development.  Any balance in the first year does not 
        cancel but is available in the second year.  This is a one-time 
        appropriation and is not to be added to the base. 
           $75,000 each year is for a grant to a public television 
        station that serves rural areas of Minnesota to provide GED 
        programming to aid immigrants and others who lack a high school 
        diploma to obtain a GED in order to continue their education.  
        Any balance in the first year does not cancel but is available 
        in the second year.  This is a one-time appropriation and is not 
        to be added to the base. 
           Subd. 19.  [ADULT GRADUATION AID.] For adult graduation aid 
        according to Minnesota Statutes, section 124.261: 
             $2,550,000     .....     1998
             $2,550,000     .....     1999
           The 1998 appropriation includes $224,000 for 1997 and 
        $2,326,000 for 1998.  
           The 1999 appropriation includes $258,000 for 1998 and 
        $2,292,000 for 1999.  
           Subd. 20.  [GED TESTS.] For payment of 60 percent of the 
        costs of GED tests according to Laws 1993, chapter 224, article 
        4, section 44, subdivision 10: 
             $125,000       .....     1998
             $125,000       .....     1999
           Any balance in the first year does not cancel but is 
        available in the second year. 
           Sec. 32. [REPEALER.] 
           Section 29 is repealed June 30, 1999. 
                                   ARTICLE 3
                           SELF-SUFFICIENCY PROGRAMS
           Section 1.  Minnesota Statutes 1996, section 119A.01, 
        subdivision 3, is amended to read: 
           Subd. 3.  [PURPOSE.] The purpose in creating the department 
        is to increase the capacity of Minnesota communities to 
        measurably improve the well-being of children and families by: 
           (1) coordinating and integrating state funded and locally 
        administered family and children programs; 
           (2) improving flexibility in the design, funding, and 
        delivery of programs affecting children and families; 
           (3) providing greater focus on strategies designed to 
        prevent problems affecting the well-being of children and 
        families; 
           (4) enhancing local decision making, collaboration, and the 
        development of new governance models; 
           (5) improving public accountability through the provision 
        of research, information, and the development of measurable 
        program outcomes; 
           (6) increasing the capacity of communities to respond to 
        the whole child by improving the ability of families to gain 
        access to services; 
           (7) encouraging all members of a community to nurture all 
        the children in the community; and 
           (8) supporting parents in their dual roles as breadwinners 
        and parents; and 
           (9) reducing the condition of poverty for families and 
        children through comprehensive, community-based strategies. 
           Sec. 2.  Minnesota Statutes 1996, section 119A.04, 
        subdivision 6, is amended to read: 
           Subd. 6.  [FUNDING FOR TRANSFERRED PROGRAMS.] State 
        appropriations for programs transferred under this section may 
        not be used to replace appropriations for K-12 programs.  State 
        and federal appropriations for programs under subdivision 5a, 
        transferred from the department of economic security, may not be 
        used to replace, supplement, or supplant federal or state 
        appropriations for any other program in the department. 
           Sec. 3.  Minnesota Statutes 1996, section 119A.04, is 
        amended by adding a subdivision to read: 
           Subd. 7.  [GRANTEES OF TRANSFERRED PROGRAMS.] Except as 
        provided in Minnesota Rules, chapter 3350, the commissioner 
        shall not reduce the number of organizations or eliminate 
        specific types of organizations that are eligible to directly 
        apply for grants made by programs transferred from the 
        department of economic security after January 1, 1997. 
           Sec. 4.  Minnesota Statutes 1996, section 119A.15, is 
        amended by adding a subdivision to read: 
           Subd. 5a.  [EXCLUDED PROGRAMS.] Programs transferred to the 
        department of children, families, and learning from the 
        department of economic security may not be included in the 
        consolidated funding account and are ineligible for local 
        consolidation.  The commissioner may not apply for federal 
        waivers to include these programs in funding consolidation 
        initiatives.  The programs include the following: 
           (1) programs for the homeless under sections 268.365, 
        268.38, and 268.39; 
           (2) emergency energy assistance and energy conservation 
        programs under sections 4.071 and 268.371; 
           (3) weatherization programs under section 268.37; 
           (4) foodshelf programs under section 268.55 and the 
        emergency food assistance program; and 
           (5) lead abatement programs under section 268.92. 
           Sec. 5.  [WORKER PARTICIPATION COMMITTEES.] 
           Notwithstanding Minnesota Statutes, section 15.059, 
        subdivision 6, the worker participation committees established 
        under Laws 1995, First Special Session chapter 3, article 16, 
        section 10, subdivision 3, do not expire until June 30, 1999. 
           Sec. 6.  [LOW-INCOME ENERGY ASSISTANCE; REPORT OF 
        FINDINGS.] 
           The commissioner who administers the low-income energy 
        assistance program shall identify potential revenue sources for 
        the low-income energy assistance program.  This must be done, to 
        the extent possible, in cooperation with the commissioner of 
        revenue, the commissioner of public service, the public 
        utilities commission, members representing the industry 
        including the delivered fuel industry, rural electric 
        cooperatives, regulated utilities, municipal utilities, and 
        representatives of low-income energy advocates and other 
        consumer advocates.  By January 31, 1998, the commissioner shall 
        make recommendations to the appropriate legislative committees 
        on potential sources of revenue to provide assistance to 
        low-income energy consumers including, but not limited to: 
           (1) a surcharge on summer delivered fuel fills; 
           (2) all fuels charge; 
           (3) margin over rack programs; 
           (4) revenue-based and Btu-based wires charges; and 
           (5) general revenue funds. 
           Sec. 7.  [EMERGENCY SERVICES GRANTS.] 
           Subdivision 1.  [DEFINITIONS.] (a) The definitions in this 
        subdivision apply to this section. 
           (b) "Commissioner" means the commissioner of children, 
        families, and learning. 
           (c) "Eligible organization" means a local governmental unit 
        or nonprofit organization providing or seeking to provide 
        emergency services for homeless persons. 
           (d) "Emergency services" means: 
           (1) providing emergency shelter for homeless persons; and 
           (2) assisting homeless persons in obtaining essential 
        services, including: 
           (i) access to permanent housing; 
           (ii) medical and psychological help; 
           (iii) employment counseling and job placement; 
           (iv) substance abuse treatment; 
           (v) financial assistance available from other programs; 
           (vi) emergency child care; 
           (vii) transportation; and 
           (viii) other services needed to stabilize housing.  
           Subd. 2.  [PROGRAM ESTABLISHED; PURPOSE.] An emergency 
        services grant program is established to provide homeless 
        persons essential services and emergency shelter in safe, 
        sanitary, and decent facilities.  The grant program is to help 
        eligible organizations improve the quality of existing shelters, 
        make available other emergency housing, meet the operating and 
        maintenance costs of shelters, and provide essential services to 
        homeless persons.  The program shall be administered by the 
        commissioner. 
           Subd. 3.  [DISTRIBUTION OF GRANTS.] The commissioner shall 
        make grants so as to ensure that emergency services are 
        available to meet the needs of homeless persons statewide. 
           Subd. 4.  [MATCHING FUNDS.] The commissioner may require a 
        grantee to match the grant amount with $1 of nonstate funds for 
        every $2 of grant funds.  The match may be in-kind, including 
        the value of volunteer time, or in cash, or a combination of the 
        two. 
           Subd. 5.  [APPLICATIONS.] An eligible organization may 
        apply to the commissioner for a grant to initiate, maintain, or 
        expand a program providing emergency services for homeless 
        persons.  The commissioner shall determine the timing and form 
        of the application for the program. 
           Subd. 6.  [CRITERIA FOR GRANT AWARDS.] The commissioner 
        shall award grants based on the following criteria: 
           (1) that the application is for a grant to provide 
        emergency services; 
           (2) evidence of the applicant's need for state assistance 
        and of the need for the particular emergency services to be 
        funded; and 
           (3) long-range plans for future funding if the need 
        continues to exist for the emergency services. 
           Subd. 7.  [PROGRAM INFORMATION.] In order to collect 
        uniform data to measure better the nature and extent of the need 
        for emergency services, grant recipients shall collect and make 
        available to the commissioner the following information: 
           (1) the number of persons who seek emergency shelter and 
        where they are seeking shelter; 
           (2) the number of persons for whom shelter is provided and 
        where, by age, sex, and whether as an individual or part of a 
        family; 
           (3) the reasons for seeking assistance; 
           (4) the length of stay; 
           (5) the reasons for leaving the shelter; and 
           (6) the demand for essential services. 
           Sec. 8.  [APPROPRIATIONS.] 
           Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
        LEARNING.] The sums indicated in this section are appropriated 
        from the general fund to the department of children, families, 
        and learning for the fiscal years designated. 
           Subd. 2.  [MINNESOTA ECONOMIC OPPORTUNITY GRANTS.] For 
        Minnesota economic opportunity grants: 
             $9,000,000     .....     1998
             $9,000,000     .....     1999
           Of this appropriation, the commissioner may use up to 5.4 
        percent each year for state operations. 
           Any balance in the first year does not cancel but is 
        available in the second year. 
           Subd. 3.  [TRANSITIONAL HOUSING PROGRAMS.] For transitional 
        housing programs according to Minnesota Statutes, section 268.38:
             $1,728,000     .....     1998
             $1,728,000     .....     1999
           Any balance in the first year does not cancel but is 
        available in the second year. 
           Of this appropriation, up to five percent each year may be 
        used for administrative costs.  A portion of this appropriation 
        may be used for the emergency services grant program under 
        section 7. 
           Subd. 4.  [FOOD BANK PROGRAM.] For foodshelf programs 
        according to Minnesota Statutes, section 268.55: 
             $1,250,000     .....     1998
             $1,250,000     .....     1999
           Any balance in the first year does not cancel but is 
        available in the second year. 
           Subd. 5.  [EMERGENCY FOOD ASSISTANCE.] For emergency food 
        assistance according to Laws 1995, chapter 224, section 5, 
        subdivision 3: 
             $97,000        .....     1998 
             $97,000        .....     1999 
           Any balance in the first year does not cancel but is 
        available in the second year. 
           Subd. 6.  [TRANSFERS; WEATHERIZATION; ENERGY 
        ASSISTANCE.] For the biennium ending June 30, 1999, the 
        commissioner shall transfer to the low-income home 
        weatherization program at least five percent of the money 
        received under the low-income home energy assistance block grant 
        in each year of the biennium and shall spend all of the 
        transferred money during the year of the transfer or the year 
        following the transfer.  Up to 1.63 percent of the transferred 
        money may be used by the commissioner for administrative 
        purposes. 
           For the biennium ending June 30, 1999, no more than 1.63 
        percent of money remaining under the low-income home energy 
        assistance program after transfers to the weatherization program 
        may be used by the commissioner for administrative purposes. 
                                   ARTICLE 4 
                                   CHILD CARE 
           Section 1.  Minnesota Statutes 1996, section 119B.01, is 
        amended by adding a subdivision to read: 
           Subd. 7a.  [DEPARTMENT.] "Department" means the department 
        of children, families, and learning. 
           Sec. 2.  Minnesota Statutes 1996, section 119B.01, 
        subdivision 8, is amended to read: 
           Subd. 8.  [EDUCATION PROGRAM.] "Education program" means 
        remedial or basic education or English as a second language 
        instruction, a program leading to a general equivalency or high 
        school diploma, post-secondary programs excluding 
        postbaccalaureate programs, and other education and training 
        needs as documented in an employability employment plan that is 
        developed by an employment and training service provider 
        certified by the commissioner of economic security or an 
        individual designated by the county to provide employment and 
        training services, as defined in subdivision 9.  The 
        employability employment plan must outline education and 
        training needs of a recipient, meet state requirements 
        for employability employment plans, meet the requirements 
        of this chapter, and Minnesota Rules, parts 9565.5000 3400.0010 
        to 9565.5200 3400.0230, and meet the requirements of programs 
        that provide federal reimbursement for child care services.  
           Sec. 3.  Minnesota Statutes 1996, section 119B.01, 
        subdivision 9, is amended to read: 
           Subd. 9.  [EMPLOYMENT PROGRAM PLAN.] "Employment program 
        plan" means employment of recipients financially eligible for 
        child care assistance, preemployment activities, or other work 
        activities approved in an employability development, job search 
        support plan, or employment plan that is developed by the county 
        agency, if it is acting as an employment and training service 
        provider, or by an employment and training service provider 
        certified by the commissioner of economic security or an 
        individual designated by the county to provide employment and 
        training services.  The plans and designation of a service 
        provider must meet the requirements of this chapter and chapter 
        256J or chapter 256K, Minnesota Rules, parts 9565.5000 3400.0010 
        to 9565.5200 3400.0230, and other programs that provide federal 
        reimbursement for child care services. 
           Sec. 4.  Minnesota Statutes 1996, section 119B.01, 
        subdivision 12, is amended to read: 
           Subd. 12.  [INCOME.] "Income" means earned or unearned 
        income received by all family members 16 years or older, 
        including public assistance cash benefits, unless specifically 
        excluded.  The following are excluded from income:  funds used 
        to pay for health insurance premiums for family members, 
        Supplemental Security Income, scholarships, work-study income, 
        and grants that cover costs for tuition, fees, books, and 
        educational supplies; student loans for tuition, fees, books, 
        supplies, and living expenses; earned income tax credits; 
        in-kind income such as food stamps, energy assistance, medical 
        assistance, and housing subsidies; income from summer or 
        part-time employment of 16-, 17-, and 18-year-old full-time 
        secondary school students; earned income of full or part-time 
        secondary school students up to the age of 19, including summer 
        employment; grant awards under the family subsidy program; and 
        nonrecurring lump sum income only to the extent that it is 
        earmarked and used for the purpose for which it is paid; and any 
        income assigned to the public authority according to section 
        256.74 or section 256.741, if enacted. 
           Sec. 5.  Minnesota Statutes 1996, section 119B.01, is 
        amended by adding a subdivision to read: 
           Subd. 12a.  [MFIP-S.] "MFIP-S" means the Minnesota family 
        investment program-statewide, the state's TANF program under 
        Public Law Number 104-193, Title I. 
           Sec. 6.  Minnesota Statutes 1996, section 119B.01, 
        subdivision 15, is amended to read: 
           Subd. 15.  [AFDC.] "AFDC" means the aid to families with 
        dependent children program under sections 256.72 to 256.87; the 
        MFIP program under sections 256.031 to 256.0361 and 256.0475 to 
        256.049; the MFIP-S program under chapter 256J; and the work 
        first program under chapter 256K, whichever program is in effect.
           Sec. 7.  Minnesota Statutes 1996, section 119B.01, 
        subdivision 16, is amended to read: 
           Subd. 16.  [TRANSITION YEAR FAMILIES.] "Transition year 
        families" means families who lose have received AFDC for at 
        least three of the last six months before losing eligibility for 
        AFDC due to increased hours of employment, increased income from 
        employment or child or spousal support, or the loss of income 
        disregards due to time limitations, as provided under Public Law 
        Number 100-485.  
           Sec. 8.  Minnesota Statutes 1996, section 119B.01, 
        subdivision 17, is amended to read: 
           Subd. 17.  [CHILD CARE FUND.] "Child care fund" means a 
        program under this chapter providing:  
           (1) financial assistance for child care to parents engaged 
        in employment or the short-term provision of at-home infant care 
        for their own child or education and training leading to 
        employment; and 
           (2) grants to develop, expand, and improve the access and 
        availability of child care services statewide. 
           Sec. 9.  Minnesota Statutes 1996, section 119B.02, is 
        amended to read: 
           119B.02 [DUTIES OF COMMISSIONER.] 
           The commissioner shall develop standards for county and 
        human services boards to provide child care services to enable 
        eligible families to participate in employment, training, or 
        education programs.  Within the limits of available 
        appropriations, the commissioner shall distribute money to 
        counties to reduce the costs of child care for eligible 
        families.  The commissioner shall adopt rules to govern the 
        program in accordance with this section.  The rules must 
        establish a sliding schedule of fees for parents receiving child 
        care services.  The rules shall provide that funds received as a 
        lump sum payment of child support arrearages shall not be 
        counted as income to a family in the month received but shall be 
        prorated over the 12 months following receipt and added to the 
        family income during those months.  In the rules adopted under 
        this section, county and human services boards shall be 
        authorized to establish policies for payment of child care 
        spaces for absent children, when the payment is required by the 
        child's regular provider.  The rules shall not set a maximum 
        number of days for which absence payments can be made, but 
        instead shall direct the county agency to set limits and pay for 
        absences according to the prevailing market practice in the 
        county.  County policies for payment of absences shall be 
        subject to the approval of the commissioner.  The commissioner 
        shall maximize the use of federal money in section 256.736 and 
        other programs that provide federal or state reimbursement for 
        child care services for recipients of aid to low-income families 
        with dependent children who are in education, training, job 
        search, or other activities allowed under those programs.  Money 
        appropriated under this section must be coordinated with the 
        programs that provide federal reimbursement for child care 
        services to accomplish this purpose.  Federal reimbursement 
        obtained must be allocated to the county that spent money for 
        child care that is federally reimbursable under programs that 
        provide federal reimbursement for child care services.  The 
        counties shall use the federal money to expand child care 
        services.  The commissioner may adopt rules under chapter 14 to 
        implement and coordinate federal program requirements. 
           Sec. 10.  Minnesota Statutes 1996, section 119B.03, 
        subdivision 3, is amended to read: 
           Subd. 3.  [ELIGIBLE RECIPIENTS.] Families that meet the 
        eligibility requirements under sections 119B.09, except AFDC 
        recipients, MFIP recipients, and transition year families, and 
        119B.10 are eligible for child care assistance under the basic 
        sliding fee program.  Families enrolled in the basic sliding fee 
        program as of July 1, 1990, shall be continued until they are no 
        longer eligible.  Counties shall make vendor payments to the 
        child care provider or pay the parent directly for eligible 
        child care expenses on a reimbursement basis.  Child care 
        assistance provided through the child care fund is considered 
        assistance to the parent. 
           Sec. 11.  Minnesota Statutes 1996, section 119B.03, 
        subdivision 4, is amended to read: 
           Subd. 4.  [FUNDING PRIORITY.] (a) First priority for child 
        care assistance under the basic sliding fee program must be 
        given to eligible non-AFDC families who do not have a high 
        school or general equivalency diploma or who need remedial and 
        basic skill courses in order to pursue employment or to pursue 
        education leading to employment.  Within this priority, the 
        following subpriorities must be used: 
           (1) child care needs of minor parents; 
           (2) child care needs of parents under 21 years of age; and 
           (3) child care needs of other parents within the priority 
        group described in this paragraph. 
           (b) Second priority must be given to parents who have 
        completed their AFDC transition year. 
           (c) Third priority must be given to families who are 
        eligible for portable basic sliding fee assistance through the 
        portability pool under section 119B.03, subdivision 9. 
           Sec. 12.  Minnesota Statutes 1996, section 119B.03, 
        subdivision 5, is amended to read: 
           Subd. 5.  [REVIEW OF USE OF FUNDS; REALLOCATION.] (a) After 
        each quarter, the commissioner shall review the use of basic 
        sliding fee program allocations by county.  The commissioner may 
        reallocate unexpended or unencumbered money among those counties 
        who have expended their full allocation or may allow a county to 
        expend up to ten percent of its allocation in the subsequent 
        allocation period.  
           (b) Any unexpended money state and federal appropriations 
        from the first year of the biennium may be carried forward to 
        the second year of the biennium.  
           Sec. 13.  Minnesota Statutes 1996, section 119B.03, 
        subdivision 6, is amended to read: 
           Subd. 6.  [ALLOCATION FORMULA.] Beginning January 1, 
        1996, except as provided in subdivision 7, the basic sliding fee 
        state and federal funds shall be allocated on a calendar year 
        basis.  Funds shall be allocated first in amounts equal to each 
        county's guaranteed floor according to subdivision 8, with any 
        remaining available funds allocated according to the following 
        formula:  
           (a) One-third of the funds shall be allocated in proportion 
        to each county's total expenditures for the basic sliding fee 
        child care program reported during the most recent calendar year 
        completed at the time of the notice of allocation.  
           (b) One-third of the funds shall be allocated based on the 
        number of children under age 13 in each county who are enrolled 
        in general assistance medical care, medical assistance, and 
        MinnesotaCare on December 31 of the most recent calendar year 
        completed at the time of the notice of allocation. 
           (c) One-third of the funds shall be allocated based on the 
        number of children under age 13 who reside in each county, from 
        the most recent estimates of the state demographer. 
           Sec. 14.  Minnesota Statutes 1996, section 119B.03, 
        subdivision 7, is amended to read: 
           Subd. 7.  [SIX-MONTH ALLOCATION EXCEPTION.] For the period 
        from July 1, 1995, to December 31, 1995, every county shall 
        receive an allocation at least equal and proportionate to 
        one-half of its original allocation in state fiscal year 1995.  
        This six-month allocation shall be combined with the calendar 
        year 1996 allocation and be administered as one 18-month 
        allocation. 1997, to December 31, 1998, each county must receive 
        an amount equal to its original calendar year 1997 allocation.  
        The remaining funds must be allocated according to the following 
        formula: 
           (a) Two-thirds of the funds must be allocated in proportion 
        to each county's original calendar year 1997 allocation for the 
        basic sliding fee program. 
           (b) One-third of the funds must be allocated in proportion 
        to each county's most recently reported waiting list as defined 
        in section 119B.03, subdivision 2. 
           When funding increases are implemented within a calendar 
        year, every county must receive an allocation at least equal and 
        proportionate to its original allocation for the same time 
        period.  The remainder of the allocation must be recalculated to 
        reflect the funding increase and according to the formulas 
        identified in subdivision 6 and this subdivision. 
           Sec. 15.  Minnesota Statutes 1996, section 119B.03, 
        subdivision 8, is amended to read: 
           Subd. 8.  [GUARANTEED FLOOR.] (a) Beginning January 1, 
        1996, each county's guaranteed floor shall equal 90 percent of 
        the allocation received in the preceding calendar year.  For the 
        calendar year 1996 allocation, the preceding calendar year shall 
        be considered to be double the six-month allocation as provided 
        for in subdivision 7.  For the period January 1, 1999, to 
        December 31, 1999, each county's guaranteed floor must be equal 
        to its original calendar year 1998 allocation or its actual 
        earnings for calendar year 1998, whichever is less. 
           (b) When the amount of funds available for allocation is 
        less than the amount available in the previous year, each 
        county's previous year allocation shall be reduced in proportion 
        to the reduction in the statewide funding, for the purpose of 
        establishing the guaranteed floor.  
           Sec. 16.  Minnesota Statutes 1996, section 119B.03, is 
        amended by adding a subdivision to read: 
           Subd. 9.  [PORTABILITY POOL.] (a) The commissioner shall 
        establish a pool of up to five percent of the annual 
        appropriation for the basic sliding fee program to provide 
        continuous child care assistance for eligible families who move 
        between Minnesota counties.  At the end of each allocation 
        period, any unspent funds in the portability pool must be added 
        to the funds available for reallocation.  If expenditures from 
        the portability pool exceed the amount of money available, the 
        reallocation pool must be reduced to cover these shortages. 
           (b) To be eligible for portable basic sliding fee 
        assistance, a family that has moved from a county in which it 
        was receiving basic sliding fee assistance to a county with a 
        waiting list for the basic sliding fee program must: 
           (1) meet the income and eligibility guidelines for the 
        basic sliding fee program; and 
           (2) notify the new county of residence within 30 days of 
        moving and apply for basic sliding fee assistance in the new 
        county of residence. 
           (c) The receiving county must: 
           (1) accept administrative responsibility for applicants for 
        portable basic sliding fee assistance at the end of the two 
        months of assistance under the unitary residency act; 
           (2) continue basic sliding fee assistance for the lesser of 
        six months or until the family is able to receive assistance 
        under the county's regular basic sliding program; and 
           (3) notify the commissioner through the quarterly reporting 
        process of any family that meets the criteria of the portable 
        basic sliding fee assistance pool. 
           Sec. 17.  Minnesota Statutes 1996, section 119B.03, is 
        amended by adding a subdivision to read: 
           Subd. 10.  [APPLICATION; ENTRY POINTS.] Two or more methods 
        of applying for the basic sliding fee program must be available 
        to applicants in each county.  To meet the requirements of this 
        subdivision, a county may provide alternative methods of 
        applying for assistance, including, but not limited to, a mail 
        application, or application sites that are located outside of 
        government offices. 
           Sec. 18.  Minnesota Statutes 1996, section 119B.04, is 
        amended to read: 
           119B.04 [FEDERAL AT-RISK CHILD CARE PROGRAM AND DEVELOPMENT 
        FUND.] 
           Subdivision 1.  [COMMISSIONER TO ADMINISTER PROGRAM.] The 
        commissioner of children, families, and learning is authorized 
        and directed to receive, administer, and expend funds available 
        under the at-risk child care program and development fund under 
        Public Law Number 101-508 (1) 104-193, Title I.  
           Subd. 2.  [RULEMAKING AUTHORITY.] The commissioner may 
        adopt rules under chapter 14 to administer the at-risk child 
        care program and development fund.  
           Sec. 19.  Minnesota Statutes 1996, section 119B.05, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [ELIGIBLE RECIPIENTS.] Families eligible 
        for guaranteed child care assistance under the AFDC child care 
        program are: 
           (1) persons receiving services under section 256.736 
        sections 256.031 to 256.04; 
           (2) AFDC recipients who are employed or in job search and 
        meet the requirements of section 119B.10; 
           (3) persons who are members of transition year families 
        under section 119B.01, subdivision 16; 
           (4) members of the control group for the STRIDE evaluation 
        conducted by the Manpower Demonstration Research Corporation; 
        and 
           (5) AFDC caretakers who are participating in the STRIDE and 
        non-STRIDE AFDC child care program; 
           (6) families who are participating in employment 
        orientation or job search, or other employment or training 
        activities that are included in an approved employability 
        development plan under chapter 256K; and 
           (7) MFIP-S families who are participating in work 
        activities as required in their job search support or employment 
        plan, or in appeals, hearings, assessments, or orientations 
        according to chapter 256J.  Child care assistance to support 
        work activities as described in section 256J.49 must be 
        available according to sections 119B.01, subdivision 8, 121.882, 
        256E.08, 268.916, and 611A.32 and titles IVA, IVB, IVE, and XX 
        of the Social Security Act. 
           Sec. 20.  Minnesota Statutes 1996, section 119B.05, 
        subdivision 5, is amended to read: 
           Subd. 5.  [FEDERAL REIMBURSEMENT.] Counties shall maximize 
        their federal reimbursement under Public Law Number 100-485 or 
        other federal reimbursement programs for money spent for persons 
        eligible under this chapter.  The commissioner shall allocate 
        any federal earnings to the county to be used to expand child 
        care services under this chapter. 
           Sec. 21.  Minnesota Statutes 1996, section 119B.05, 
        subdivision 6, is amended to read: 
           Subd. 6.  [ACCESS CHILD CARE PROGRAM.] (a) Starting one 
        month after April 30, 1992, the commissioner shall reimburse 
        eligible expenditures for 2,000 family slots for AFDC caretakers 
        not eligible for services under section 256.736, who are engaged 
        in an authorized educational or job search program.  Each county 
        will receive a number of family slots based on the county's 
        proportion of the AFDC caseload.  A county must receive at least 
        two family slots.  Eligibility and reimbursement are limited to 
        the number of family slots allocated to each county.  County 
        agencies shall authorize an educational plan for each student 
        and may prioritize families eligible for this program in their 
        child care fund plan upon approval of the commissioner.  
           (b) Persons eligible for but unable to participate in the 
        JOBS (STRIDE) program because of a waiting list may be accepted 
        as a new participant, or continue to participate in the ACCESS 
        child care program if a slot is available as long as all other 
        eligibility factors are met.  Child care assistance must 
        continue under the ACCESS child care program until the 
        participant loses eligibility or is enrolled in project STRIDE. 
           (c)(1) Effective July 1, 1995, the commissioner shall 
        reclaim 90 percent of the vacant slots in each county and 
        distribute those slots to counties with waiting lists of persons 
        eligible for the ACCESS child care program.  The slots must be 
        distributed to eligible families based on the July 1, 1995, 
        waiting list placement date, first come, first served basis. 
           (2) ACCESS child care slots remaining after the waiting 
        list under clause (1) has been eliminated must be distributed to 
        eligible families on a first come, first served basis, based on 
        the client's date of request. 
           (3) The county must notify the commissioner when an ACCESS 
        slot in the county becomes available.  Notification by the 
        county must be within five calendar days of the effective date 
        of the termination of the ACCESS child care services.  The 
        resulting vacant slot must be returned to the department of 
        children, families, and learning.  The slot must then be 
        redistributed under clause (2). 
           (4) The commissioner shall consult with the task force on 
        child care and make recommendations to the 1996 legislature for 
        future distribution of the ACCESS slots under this 
        paragraph. Effective July 1, 1997, no new applicants may be 
        accepted in the ACCESS program.  Current ACCESS participants 
        shall continue to receive assistance until July 1, 1998, if all 
        other conditions of eligibility are met. 
           Sec. 22.  [119B.061] [AT-HOME INFANT CHILD CARE PROGRAM.] 
           Subdivision 1.  [ESTABLISHMENT.] Beginning July 1, 1998, a 
        family receiving or eligible to receive assistance under the 
        basic sliding fee program is eligible for assistance for a 
        parent to provide short-term child care for the family's infant 
        child.  An eligible family must meet the eligibility factors 
        under section 119B.09, the income criteria under section 
        119B.12, and the requirements of this section.  The commissioner 
        shall establish a pool of up to seven percent of the annual 
        appropriation for the basic sliding fee program to provide 
        assistance under the at-home infant child care program.  At the 
        end of the fiscal year, any unspent funds must be used for 
        assistance under the basic sliding fee program. 
           Subd. 2.  [ELIGIBLE FAMILIES.] A family with an infant 
        under the age of one year is eligible for assistance if: 
           (1) the family is not receiving MFIP-S, other cash 
        assistance, or other child care assistance; 
           (2) the family has not previously received the one-year 
        exemption from the work requirement for infant care under the 
        MFIP-S program; 
           (3) the family has not previously received a life-long 
        total of 12 months of assistance under this section; and 
           (4) the family is participating in the basic sliding fee 
        program or, for the first child in a family, provides 
        verification of employment at the time of application and meets 
        the program requirements. 
           Subd. 3.  [ELIGIBLE PARENT.] Only one parent, in a 
        two-parent family, is eligible for assistance.  The eligible 
        parent must: 
           (1) be over the age of 18; 
           (2) provide full-time care for the child in the child's 
        home; and 
           (3) provide child care for any other children in the family 
        that are eligible for child care. 
           Subd. 4.  [ASSISTANCE.] (a) A family is limited to a 
        lifetime total of 12 months of assistance under this section.  
        The maximum rate of assistance must be at 75 percent of the rate 
        established under section 119B.13 for care of infants in 
        licensed family day care in the applicant's county of 
        residence.  Assistance must be calculated to reflect the copay 
        requirement and the family's income level. 
           (b) A participating family must continue to report income 
        and other family changes as specified in the county's plan under 
        section 119B.08, subdivision 3.  The family must treat any 
        assistance received under this section as unearned income. 
           (c) Participation in the at-home infant child care program 
        must be considered participation in the basic sliding fee 
        program for purposes of continuing eligibility under section 
        119B.03, subdivision 3. 
           (d) A family that receives assistance under this section is 
        ineligible for the one-year exemption from work requirements 
        under the MFIP-S program. 
           Subd. 5.  [IMPLEMENTATION.] By July 1, 1998, the 
        commissioner shall implement the at-home infant child care 
        program under this section.  The commissioner shall evaluate 
        this program and report the impact to the legislature by January 
        1, 2000.  The evaluation must include data on the number of 
        families participating in the program; the number of families 
        continuing to pursue employment or education while participating 
        in the program; the average income of families prior to, during, 
        and after participation in the program; family size; and single 
        parent and two-parent status. 
           Sec. 23.  Minnesota Statutes 1996, section 119B.05, is 
        amended by adding a subdivision to read: 
           Subd. 7.  [CHILD CARE ASSISTANCE DIVERSION.] A one-year 
        program is established to provide assistance to participants 
        under the working family assistance program established in 
        chapter 256J who are participating in an authorized activity 
        under section 256J.03, subdivision 4, and who are eligible for 
        child care assistance according to chapter 119B as a 
        reimbursement for expenses related to the costs of education, 
        training, or transportation when all of the following conditions 
        exist: 
           (1) child care needs during participation in the authorized 
        activity are being met by a legal child care provider as defined 
        in section 119B.01, subdivision 13; 
           (2) the participant cannot reasonably arrange for the 
        education, training, or transportation costs to be met through 
        alternate arrangements; 
           (3) the child care arrangement provides a transition to a 
        stable child care and employment arrangement and does not 
        disrupt the continuity of care for children; and 
           (4) the arrangement does not exceed two months. 
           The commissioner shall select one county in the 
        seven-county metropolitan area to participate in the program.  
        Assistance must be available only to residents of the selected 
        county.  Assistance granted under this subdivision must not 
        exceed 1/12 of the average annual cost of care as established 
        for the administering county in the previous state fiscal year 
        for each authorized month.  Assistance under this subdivision is 
        available to a recipient on a one-time basis. 
           Sec. 24.  Minnesota Statutes 1996, section 119B.07, is 
        amended to read: 
           119B.07 [USE OF MONEY.] 
           Money for persons listed in sections 119B.03, subdivision 
        3, and 119B.05, subdivision 1, shall be used to reduce the costs 
        of child care for students, including the costs of child care 
        for students while employed if enrolled in an eligible education 
        program at the same time and making satisfactory progress 
        towards completion of the program.  Counties may not limit the 
        duration of child care subsidies for a person in an employment 
        or educational program, except when the person is found to be 
        ineligible under the child care fund eligibility standards.  Any 
        limitation must be based on a person's employability plan in the 
        case of an AFDC recipient, and county policies included in the 
        child care allocation plan.  The maximum length of time a 
        student is eligible for child care assistance under the child 
        care fund for education and training is no more than the time 
        necessary to complete the credit requirements for an associate 
        or baccalaureate degree as determined by the educational 
        institution, excluding basic or remedial education programs 
        needed to prepare for post-secondary education or employment.  
        To be eligible, the student must be in good standing and be 
        making satisfactory progress toward the degree.  Time 
        limitations for child care assistance, as specified in Minnesota 
        Rules, parts 9565.5000 to 9565.5200, do not apply to basic or 
        remedial educational programs needed to prepare for 
        post-secondary education or employment.  These programs 
        include:  high school, general equivalency diploma, and English 
        as a second language.  Programs exempt from this time limit must 
        not run concurrently with a post-secondary program.  High school 
        students who are participating in a post-secondary options 
        program and who receive a high school diploma issued by the 
        school district are exempt from the time limitations while 
        pursuing a high school diploma.  Financially eligible students 
        who have received child care assistance for one academic year 
        shall be provided child care assistance in the following 
        academic year if funds allocated under sections 119B.03 and 
        119B.05 are available.  If an AFDC recipient who is receiving 
        AFDC child care assistance under this chapter moves to another 
        county, continues to participate in educational or training 
        programs authorized in their employability development plans, 
        and continues to be eligible for AFDC child care assistance 
        under this chapter, the AFDC caretaker must receive continued 
        child care assistance from the county responsible for their 
        current employability development plan, without interruption. 
           Sec. 25.  [119B.075] [RESERVE ACCOUNT.] 
           A reserve account must be created within the general fund 
        for all unexpended basic sliding fee child care, TANF child 
        care, or other child care funds under the jurisdiction of the 
        commissioner.  Any funds for those purposes that are unexpended 
        at the end of a biennium must be deposited in this reserve 
        account, and may be appropriated on an ongoing basis by the 
        commissioner for basic sliding fee child care or TANF child care.
           Sec. 26.  Minnesota Statutes 1996, section 119B.08, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [QUARTERLY REPORTS.] The commissioner shall 
        specify requirements for reports, including quarterly fiscal 
        reports, according to under the same authority as provided to 
        the commissioner of human services in section 256.01, 
        subdivision 2, paragraph (17).  Counties shall submit on forms 
        prescribed by the commissioner a quarterly financial and program 
        activity report.  The failure to submit a complete report by the 
        end of the quarter in which the report is due may result in a 
        reduction of child care fund allocations equal to the next 
        quarter's allocation.  The financial and program activity report 
        must include: 
           (1) a detailed accounting of the expenditures and revenues 
        for the program during the preceding quarter by funding source 
        and by eligibility group; 
           (2) a description of activities and concomitant 
        expenditures that are federally reimbursable under federal 
        reimbursement programs; 
           (3) a description of activities and concomitant 
        expenditures of child care money; 
           (4) information on money encumbered at the quarter's end 
        but not yet reimbursable, for use in adjusting allocations as 
        provided in section 119B.03, subdivision 5; and 
           (5) other data the commissioner considers necessary to 
        account for the program or to evaluate its effectiveness in 
        preventing and reducing participants' dependence on public 
        assistance and in providing other benefits, including 
        improvement in the care provided to children.  
           Sec. 27.  Minnesota Statutes 1996, section 119B.08, 
        subdivision 3, is amended to read: 
           Subd. 3.  [CHILD CARE FUND PLAN.] Effective January 1, 
        1992, the county will include the plan required under this 
        subdivision in its biennial community social services plan 
        required in this section, for the group described in section 
        256E.03, subdivision 2, paragraph (h).  For the period July 1, 
        1989, to December 31, 1991, the county shall submit separate 
        child care fund plans required under this subdivision for the 
        periods July 1, 1989, to June 30, 1990; and July 1, 1990, to 
        December 31, 1991.  The commissioner shall establish the dates 
        by which the county must submit these plans.  The county and 
        designated administering agency shall submit to the commissioner 
        an annual child care fund allocation plan.  The plan shall 
        include: 
           (1) a narrative of the total program for child care 
        services, including all policies and procedures that affect 
        eligible families and are used to administer the child care 
        funds; 
           (2) the number of families that requested a child care 
        subsidy in the previous year, the number of families receiving 
        child care assistance, the number of families on a waiting list, 
        and the number of families projected to be served during the 
        fiscal year; 
           (3) the methods used by the county to inform eligible 
        groups of the availability of child care assistance and related 
        services; 
           (4) (3) the provider rates paid for all children by 
        provider type; 
           (5) (4) the county prioritization policy for all eligible 
        groups under the basic sliding fee program and AFDC child care 
        program; and 
           (6) a report of all funds available to be used for child 
        care assistance, including demonstration of compliance with the 
        maintenance of funding effort required under section 119B.11; 
        and 
           (7) (5) other information as requested by the department to 
        ensure compliance with the child care fund statutes and rules 
        promulgated by the commissioner. 
           The commissioner shall notify counties within 60 days of 
        the date the plan is submitted whether the plan is approved or 
        the corrections or information needed to approve the plan.  The 
        commissioner shall withhold a county's allocation until it has 
        an approved plan.  Plans not approved by the end of the second 
        quarter after the plan is due may result in a 25 percent 
        reduction in allocation.  Plans not approved by the end of the 
        third quarter after the plan is due may result in a 100 percent 
        reduction in the allocation to the county.  Counties are to 
        maintain services despite any reduction in their allocation due 
        to plans not being approved. 
           Sec. 28.  Minnesota Statutes 1996, section 119B.09, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [GENERAL ELIGIBILITY FACTORS REQUIREMENTS 
        FOR ALL APPLICANTS FOR CHILD CARE ASSISTANCE.] (a) Child care 
        services must be available to families who need child care to 
        find or keep employment or to obtain the training or education 
        necessary to find employment and who: 
           (a) (1) meet the requirements of section 119B.05; receive 
        aid to families with dependent children, MFIP-S, or work first, 
        whichever is in effect; and are receiving employment and 
        training services under section 256.736 or chapter 256J or 256K; 
           (b) (2) have household income below the eligibility levels 
        for aid to families with dependent children; or 
           (c) (3) have household income within a range established by 
        the commissioner. 
           (d) (b) Child care services for the families receiving aid 
        to families with dependent children must be made available as 
        in-kind services, to cover any difference between the actual 
        cost and the amount disregarded under the aid to families with 
        dependent children program.  Child care services to families 
        whose incomes are below the threshold of eligibility for aid to 
        families with dependent children, but are not AFDC caretakers, 
        must be made available with the minimum same copayment required 
        by federal law of AFDC caretakers or MFIP-S caregivers. 
           (c) All applicants for child care assistance and families 
        currently receiving child care assistance must be assisted and 
        required to cooperate in establishment of paternity and 
        enforcement of child support obligations as a condition of 
        program eligibility.  For purposes of this section, a family is 
        considered to meet the requirement for cooperation when the 
        family complies with the requirements of section 256.741, if 
        enacted. 
           Sec. 29.  Minnesota Statutes 1996, section 119B.09, 
        subdivision 2, is amended to read: 
           Subd. 2.  [SLIDING FEE.] Child care services to families 
        with incomes in the commissioner's established range must be 
        made available on a sliding fee basis.  The lower limit of the 
        sliding fee range must be the eligibility limit for aid to 
        families with dependent children.  The upper limit of the range 
        must be neither less than 70 percent nor more than 90 percent of 
        the state median income for a family of four, adjusted for 
        family size.  
           Sec. 30.  Minnesota Statutes 1996, section 119B.09, is 
        amended by adding a subdivision to read: 
           Subd. 6.  [MAXIMUM CHILD CARE ASSISTANCE.] The maximum 
        amount of child care assistance a local agency may authorize in 
        a two-week period is 120 hours per child. 
           Sec. 31.  Minnesota Statutes 1996, section 119B.09, is 
        amended by adding a subdivision to read: 
           Subd. 7.  [ELIGIBILITY FOR ASSISTANCE.] The date of 
        eligibility for child care assistance under this chapter is the 
        later of the date the application was signed; the beginning date 
        of employment, education, or training; or the date a 
        determination has been made that the applicant is a participant 
        in employment and training services under Minnesota Rules, part 
        3400.0080, subpart 2a, section 256.736, or chapter 256J or 
        256K.  The date of eligibility for the basic sliding fee at-home 
        infant child care program is the later of the date the infant is 
        born or, in a county with a basic sliding fee wait list, the 
        date the family applies for at-home infant child care.  Payment 
        ceases for a family under the at-home infant child care program 
        when a family has used a total of 12 months of assistance as 
        specified under section 119B.061.  Payment of child care 
        assistance for employed persons on AFDC is effective the date of 
        employment or the date of AFDC eligibility, whichever is later.  
        Payment of child care assistance for MFIP-S or work first 
        participants in employment and training services is effective 
        the date of commencement of the services or the date of MFIP-S 
        or work first eligibility, whichever is later.  Payment of child 
        care assistance for transition year child care must be made 
        retroactive to the date of eligibility for transition year child 
        care. 
           Sec. 32.  Minnesota Statutes 1996, section 119B.09, is 
        amended by adding a subdivision to read: 
           Subd. 8.  [NO EMPLOYEE-EMPLOYER RELATIONSHIPS.] Receipt of 
        federal, state, or local funds by a child care provider either 
        directly or through a parent who is a child care assistance 
        recipient does not establish an employee-employer relationship 
        between the child care provider and the county or state. 
           Sec. 33.  Minnesota Statutes 1996, section 119B.10, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [ASSISTANCE FOR PERSONS SEEKING AND 
        RETAINING EMPLOYMENT.] (a) Persons who are seeking employment 
        and who are eligible for assistance under this section are 
        eligible to receive up to 240 hours of child care assistance per 
        calendar year.  
           (b) Employed persons who work at least an average of ten 20 
        hours a week and receive at least a minimum wage for all hours 
        worked are eligible for continued child care assistance.  Child 
        care assistance during employment must be authorized as provided 
        in paragraphs (c) and (d). 
           (c) When the caregiver works for an hourly wage and the 
        hourly wage is equal to or greater than the applicable minimum 
        wage, child care assistance shall be provided for the actual 
        hours of employment, break, and meal time during the employment 
        and travel time up to two hours per day. 
           (d) When the caregiver does not work for an hourly wage, 
        child care assistance must be provided for the lesser of: 
           (1) the amount of child care determined by dividing gross 
        earned income by the applicable minimum wage, up to one hour 
        every eight hours for meals and break time, plus up to two hours 
        per day for travel time; or 
           (2) the amount of child care equal to the actual amount of 
        child care used during employment, including break and meal time 
        during employment, and travel time up to two hours per day. 
           Sec. 34.  Minnesota Statutes 1996, section 119B.11, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [COUNTY CONTRIBUTIONS REQUIRED.] Beginning 
        July 1, 1995 1997, in addition to payments from basic sliding 
        fee child care program participants, counties each county shall 
        contribute from county tax or other sources at the a fixed local 
        match percentage calculated according to subdivision 2 equal to 
        its calendar year 1996 required county contribution reduced by 
        the administrative funding loss that would have occurred in 
        state fiscal year 1996 under section 119B.15.  The commissioner 
        shall recover funds from the county as necessary to bring county 
        expenditures into compliance with this subdivision. 
           Sec. 35.  Minnesota Statutes 1996, section 119B.11, is 
        amended by adding a subdivision to read: 
           Subd. 2a.  [RECOVERY OF OVERPAYMENTS.] An amount of child 
        care assistance paid to a recipient in excess of the payment due 
        is recoverable by the county agency.  The overpayment must be 
        recovered through recoupment as identified in Minnesota Rules, 
        part 9565.5110, subpart 11, items A and B, if the family remains 
        eligible for assistance.  If the family no longer remains 
        eligible for child care assistance, the county may choose to 
        initiate efforts to recover overpayments from the family for 
        overpayment less than $50.  If the overpayment is greater than 
        or equal to $50, the county shall seek voluntary repayment of 
        the overpayment from the family.  If the county is unable to 
        recoup the overpayment through voluntary repayment, the county 
        shall initiate civil court proceedings to recover the 
        overpayment unless the county's costs to recover the overpayment 
        will exceed the amount of the overpayment.  A family with an 
        outstanding debt under this subdivision is not eligible for 
        child care assistance until the debt is paid in full or 
        satisfactory arrangements are made with the county to retire the 
        debt. 
           Sec. 36.  Minnesota Statutes 1996, section 119B.11, 
        subdivision 3, is amended to read: 
           Subd. 3.  [FEDERAL MONEY; STATE RECOVERY.] The commissioner 
        shall recover from counties any state or federal money that was 
        spent for persons found to be ineligible, except if the recovery 
        is made by a county agency using any method other than 
        recoupment, the county may keep 25 percent of the recovery.  If 
        a federal audit exception is taken based on a percentage of 
        federal earnings, all counties shall pay a share proportional to 
        their respective federal earnings during the period in question. 
           Sec. 37.  Minnesota Statutes 1996, section 119B.12, is 
        amended to read: 
           119B.12 [SLIDING FEE SCALE.] 
           Subdivision 1.  [FEE SCHEDULE.] In setting the sliding fee 
        schedule, the commissioner shall exclude from the amount of 
        income used to determine eligibility an amount for federal and 
        state income and social security taxes attributable to that 
        income level according to federal and state standardized tax 
        tables.  The commissioner shall base the parent fee on the 
        ability of the family to pay for child care.  The fee schedule 
        must be designed to use any available tax credits. 
           Subd. 2.  [PARENT FEE.] A family's monthly parent fee must 
        be a fixed percentage of its annual gross income.  Parent fees 
        must apply to families eligible for child care assistance under 
        sections 119B.03 and 119B.05.  Income must be as defined in 
        section 119B.01, subdivision 12.  The fixed percent is based on 
        the relationship of the family's annual gross income to 100 
        percent of state median income.  Beginning January 1, 1998, 
        parent fees must begin at 75 percent of the poverty level.  The 
        minimum parent fees for families between 75 percent and 100 
        percent of poverty level must be $5 per month.  Parent fees for 
        families with incomes at or above the poverty level must not 
        decrease due to the addition of family members after the 
        family's initial eligibility determination.  Parent fees must be 
        established in rule and must provide for graduated movement to 
        full payment. 
           Sec. 38.  Minnesota Statutes 1996, section 119B.13, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [SUBSIDY RESTRICTIONS.] Effective July 1, 
        1991, the maximum rate paid for child care assistance under the 
        child care fund is the maximum rate eligible for federal 
        reimbursement.  The rate may not exceed the 75th percentile rate 
        for like-care arrangements in the county as surveyed by the 
        commissioner.  A rate which includes a provider bonus paid under 
        subdivision 2 or a special needs rate paid under subdivision 3 
        may be in excess of the maximum rate allowed under this 
        subdivision.  The department of children, families, and learning 
        shall monitor the effect of this paragraph on provider rates.  
        The county shall pay the provider's full charges for every child 
        in care up to the maximum established.  The commissioner shall 
        determine the maximum rate for each type of care, including 
        special needs and handicapped care.  Not less than once every 
        two years, the county shall evaluate rates for payment of absent 
        spaces and shall establish policies for payment of absent days 
        that reflect current market practice.  
           When the provider charge is greater than the maximum 
        provider rate allowed, the parent is responsible for payment of 
        the difference in the rates in addition to any family copayment 
        fee. 
           Sec. 39.  Minnesota Statutes 1996, section 119B.13, is 
        amended by adding a subdivision to read: 
           Subd. 5.  [PROVIDER NOTICE.] The county shall inform both 
        the family receiving assistance under chapter 119B and the child 
        care provider of the payment amount and how and when payment 
        will be received.  If the county sends a family a notice that 
        child care assistance will be terminated, the county shall 
        inform the provider that unless the family requests to continue 
        to receive assistance pending an appeal, child care payments 
        will no longer be made.  The notice to the vendor must not 
        contain any private data on the family or information on why 
        payment will no longer be made. 
           Sec. 40.  Minnesota Statutes 1996, section 119B.13, is 
        amended by adding a subdivision to read: 
           Subd. 6.  [PROVIDER PAYMENTS.] Counties shall make vendor 
        payments to the child care provider or pay the parent directly 
        for eligible child care expenses.  If payments for child care 
        assistance are made to providers, the provider shall bill the 
        county for services provided within ten days of the end of the 
        month of service.  If bills are submitted in accordance with the 
        provisions of subdivision 6, a county shall issue payment to the 
        provider of child care under the child care fund within 30 days 
        of receiving an invoice from the provider.  Counties may 
        establish policies that make payments on a more frequent basis.  
        A county's payment policies must be included in the county's 
        child care plan under section 119B.08, subdivision 3. 
           Sec. 41.  Minnesota Statutes 1996, section 119B.15, is 
        amended to read: 
           119B.15 [ADMINISTRATIVE EXPENSES.] 
           The commissioner shall use up to one-eleventh 1/21 of the 
        state and federal funds available for the basic sliding fee 
        program and 1/21 of the state and federal funds available for 
        the AFDC child care program for payments to counties for 
        administrative expenses.  
           Sec. 42.  Minnesota Statutes 1996, section 119B.16, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [FAIR HEARING ALLOWED.] An applicant or 
        recipient adversely affected by a county agency action may 
        request a fair hearing in accordance with section 256.045, 
        subdivision 3. 
           Sec. 43.  Minnesota Statutes 1996, section 119B.18, is 
        amended by adding a subdivision to read: 
           Subd. 3.  [CHILD DEVELOPMENT EDUCATION AND TRAINING LOANS.] 
        The commissioner shall establish a child development education 
        and training loan program to be administered by the regional 
        child care resource and referral programs.  The commissioner 
        shall establish application procedures, eligibility criteria, 
        terms, and other conditions necessary to make educational loans 
        under this section.  A single applicant may not receive more 
        than $1,500 per year under this program.  All or part of the 
        loan may be forgiven if the applicant continues to provide child 
        care services for a period of 12 months following the completion 
        of all courses paid for by the educational loan. 
           Sec. 44.  Minnesota Statutes 1996, section 119B.20, 
        subdivision 7, is amended to read: 
           Subd. 7.  [FACILITY IMPROVEMENT EXPENSES.] "Facility 
        improvement expenses" means funds for building improvements, 
        equipment, appropriate technology and software, toys, and 
        supplies needed to establish, expand, or improve a licensed 
        child care facility or a child care program under the 
        jurisdiction of the state a local board of education. 
           Sec. 45.  Minnesota Statutes 1996, section 119B.20, 
        subdivision 9, is amended to read: 
           Subd. 9.  [MINI-GRANTS TECHNICAL ASSISTANCE 
        AWARDS.] "Mini-grants" "Technical assistance awards" means child 
        care grants to family child care providers for facility 
        improvements that are up to $1,000.  Mini-grants Awards include, 
        but are not limited to, improvements to meet licensing 
        requirements, improvements to expand a child care facility or 
        program, appropriate technology and software, toys and 
        equipment, start-up costs, staff training, and development costs.
           Sec. 46.  Minnesota Statutes 1996, section 119B.20, 
        subdivision 10, is amended to read: 
           Subd. 10.  [RESOURCE AND REFERRAL PROGRAM.] "Resource and 
        referral program" means a program that provides information to 
        parents, including referrals and coordination of community child 
        care resources for parents and public or private providers of 
        care.  It also means the agency with the duties specified in 
        sections 119B.18 and 119B.19.  Services may include parent 
        education, technical assistance for providers, staff development 
        programs, and referrals to social services recruitment of new 
        providers, parent education, training, technical assistance for 
        providers, and referrals to social services. 
           Sec. 47.  Minnesota Statutes 1996, section 119B.21, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [GRANTS ESTABLISHED.] The commissioner 
        shall award grants to develop child care services, including 
        child care service development grants for start-up and facility 
        improvement expenses, interim financing, resource and referral 
        programs, and staff training expenses, and grants for child care 
        resource and referral programs.  Child care services service 
        development grants may include mini-grants family child care 
        technical assistance awards up to $1,000.  The commissioner 
        shall develop a grant application form, inform county social 
        service agencies about the availability of child care services 
        grants, and set a date by which applications must be received by 
        the commissioner. 
           The commissioner may renew grants to existing resource and 
        referral agencies that have met state standards and have been 
        designated as the child care resource and referral service for a 
        particular geographical area.  The recipients of renewal grants 
        are exempt from the proposal review process. 
           Sec. 48.  Minnesota Statutes 1996, section 119B.21, 
        subdivision 2, is amended to read: 
           Subd. 2.  [DISTRIBUTION OF FUNDS.] (a) The commissioner 
        shall allocate grant money appropriated for child care service 
        development among the development regions designated by the 
        governor under section 462.385, as follows considering the 
        following factors for each economic development region: 
           (1) 50 percent of the child care service development grant 
        appropriation shall be allocated to the metropolitan economic 
        development region; and 
           (2) 50 percent of the child care service development grant 
        appropriation shall be allocated to economic development regions 
        other than the metropolitan economic development region. 
           (b) The following formulas shall be used to allocate grant 
        appropriations among the economic development regions:  
           (1) 50 percent of the funds shall be allocated in 
        proportion to the ratio of children under 12 years of age in 
        each economic development region to the total number of children 
        under 12 years of age in all economic development regions; and 
           (2) 50 percent of the funds shall be allocated in 
        proportion to the ratio of children under 12 years of age in 
        each economic development region to the number of licensed child 
        care spaces currently available in each economic development 
        region 
           (1) the number of children under 13 years of age needing 
        child care in the service area; 
           (2) the geographic area served by the agency; 
           (3) the ratio of children under 13 years of age needing 
        child care to the number of licensed spaces in the service area; 
           (4) the number of licensed child care providers and 
        extended day school age child care programs in the service area; 
        and 
           (5) other related factors determined by the commissioner. 
           (c) (b) Out of the amount allocated for each economic 
        development region, the commissioner shall award grants based on 
        the recommendation of the grant review child care regional 
        advisory task force committees.  In addition, the commissioner 
        shall award no more than 75 percent of the money either to child 
        care facilities for the purpose of facility improvement or 
        interim financing or to child care workers for staff training 
        expenses.  
           (d) (c) Any funds unobligated may be used by the 
        commissioner to award grants to proposals that received funding 
        recommendations by the advisory task force regional advisory 
        committees but were not awarded due to insufficient funds.  
           (e) (d) The commissioner may allocate grants under this 
        section for a two-year period and may carry forward funds from 
        the first year as necessary. 
           Sec. 49.  Minnesota Statutes 1996, section 119B.21, 
        subdivision 3, is amended to read: 
           Subd. 3.  [CHILD CARE REGIONAL ADVISORY COMMITTEES.] Child 
        care regional advisory committees shall review and make 
        recommendations to the commissioner on applications for family 
        child care technical assistance awards and service development 
        grants under this section.  The commissioner shall appoint the 
        child care regional advisory committees in each governor's 
        economic development region.  People appointed under this 
        subdivision must represent the following constituent groups:  
        family child care providers, group center providers, parent 
        users, health services, social services, public schools, Head 
        Start, employers, and other citizens with demonstrated interest 
        in child care issues.  Members of the advisory task force with a 
        direct financial interest in a pending grant proposal may not 
        provide a recommendation or participate in the ranking of that 
        grant proposal.  Committee members may be reimbursed for their 
        actual travel, child care, and child care provider substitute 
        expenses for up to six committee meetings per year.  The child 
        care regional advisory committees shall complete their reviews 
        and forward their recommendations to the commissioner by the 
        date specified by the commissioner. 
           Sec. 50.  Minnesota Statutes 1996, section 119B.21, 
        subdivision 4, is amended to read: 
           Subd. 4.  [DISTRIBUTION OF FUNDS FOR CHILD CARE RESOURCE 
        AND REFERRAL PROGRAMS.] (a) The commissioner shall allocate 
        funds appropriated for child care resource and referral services 
        considering the following factors for each economic development 
        region served by the child care resource and referral agency:  
           (1) the number of children under 13 years of age needing 
        child care in the service area; 
           (2) the geographic area served by the agency; 
           (3) the ratio of children under 13 years of age needing 
        care to the number of licensed spaces in the service area; 
           (4) the number of licensed child care providers and 
        extended day school age child care programs in the service area; 
        and 
           (5) other related factors determined by the commissioner.  
           (b) The commissioner may renew grants to existing resource 
        and referral agencies that have met state standards and have 
        been designated as the child care resource and referral service 
        for a particular geographical area.  The recipients of renewal 
        grants are exempt from the proposal review process. 
           Sec. 51.  Minnesota Statutes 1996, section 119B.21, 
        subdivision 5, is amended to read: 
           Subd. 5.  [PURPOSES FOR WHICH A CHILD CARE SERVICES GRANT 
        MAY BE AWARDED.] The commissioner may award grants for any of 
        the following purposes: 
           (1) child care service development grants for the following 
        purposes: 
           (i) for creating new licensed day care facilities and 
        expanding existing facilities, including, but not limited to, 
        supplies, equipment, facility renovation, and remodeling; 
           (2) (ii) for improving licensed day care facility programs, 
        including, but not limited to, staff specialists, staff 
        training, supplies, equipment, and facility renovation and 
        remodeling.  In awarding grants for training, priority must be 
        given to child care workers caring for infants, toddlers, sick 
        children, children in low-income families, and children with 
        special needs; 
           (3) (iii) for supportive child development services 
        including, but not limited to, in-service training, curriculum 
        development, consulting specialist, resource centers, and 
        program and resource materials; 
           (4) (iv) for carrying out programs including, but not 
        limited to, staff, supplies, equipment, facility renovation, and 
        training; 
           (5) (v) for interim financing; and 
           (6) for carrying out the resource and referral program 
        services identified in section 119B.19, subdivision 3 (vi) 
        family child care technical assistance awards; and 
           (vii) for capacity building through the purchase of 
        appropriate technology and software, and staff training to 
        create, enhance, and maintain financial systems for facilities; 
           (2) child care resource and referral program services 
        identified in section 119B.19, subdivision 3; or 
           (3) targeted recruitment initiatives to expand and build 
        capacity of the child care system. 
           Sec. 52.  Minnesota Statutes 1996, section 119B.21, 
        subdivision 6, is amended to read: 
           Subd. 6.  [FUNDING PRIORITIES; FACILITY IMPROVEMENT AND, 
        INTERIM FINANCING, AND TRAINING GRANTS.] In evaluating 
        applications for funding and making recommendations to the 
        commissioner, the grant review advisory task force child care 
        regional advisory committees shall rank and give priority to:  
           (1) new programs or projects, or the expansion or 
        improvement of existing programs or projects in areas where a 
        demonstrated need for child care facilities has been shown, with 
        special emphasis on programs or projects in areas where there is 
        a shortage of licensed child care; 
           (2) new programs and projects, or the expansions or 
        enrichment of existing programs or projects that serve sick 
        children, infants or toddlers, children with special needs, and 
        children from low-income families, or parents needing child care 
        during nonstandard hours; 
           (3) unlicensed providers who wish to become licensed; and 
           (4) improvement of existing programs; 
           (5) child care programs seeking accreditation and child 
        care providers seeking certification; and 
           (6) entities that will use grant money for scholarships for 
        child care workers attending educational or training programs 
        sponsored by the entity. 
           Sec. 53.  Minnesota Statutes 1996, section 119B.21, 
        subdivision 8, is amended to read: 
           Subd. 8.  [ELIGIBLE GRANT RECIPIENTS.] Eligible recipients 
        of child care grants are licensed providers of child care, or 
        those in the process of being licensed, resource and referral 
        programs, or corporations or public agencies, or any combination 
        thereof.  With the exception of mini-grants, priority for child 
        care grants shall be given to grant applicants as follows: 
           (1) public and private nonprofit agencies; 
           (2) employer-based child care centers; 
           (3) for-profit child care centers; and 
           (4) family day care providers. 
           Sec. 54.  Minnesota Statutes 1996, section 119B.21, 
        subdivision 9, is amended to read: 
           Subd. 9.  [GRANT MATCH REQUIREMENTS.] Child care grants for 
        facility improvements, interim financing, resource and referral, 
        and staff training and development require a 25 percent local 
        match by the grant applicant.  A local match is not required for 
        a minigrant family child care technical assistance award. 
           Sec. 55.  Minnesota Statutes 1996, section 119B.21, 
        subdivision 10, is amended to read: 
           Subd. 10.  [CHILD CARE MINI-GRANTS FAMILY CHILD CARE 
        TECHNICAL ASSISTANCE AWARDS.] Mini-grants Technical assistance 
        awards for child care service development must be used by 
        the family child care provider grantee for facility 
        improvements, including, but not limited to, improvements to 
        meet licensing requirements, improvements to expand the 
        facility, toys and equipment, start-up costs, interim financing, 
        or staff training and development.  Priority for child care 
        mini-grants shall be given to grant applicants as follows: 
           (1) family day care providers; 
           (2) public and private nonprofit agencies; 
           (3) employer-based child care centers; and 
           (4) for-profit child care centers. 
           Sec. 56.  Minnesota Statutes 1996, section 119B.21, 
        subdivision 11, is amended to read: 
           Subd. 11.  [ADVISORY TASK FORCE.] The commissioner 
        shall may convene a statewide advisory task force which shall 
        advise the commissioner on grants and or other child care issues.
        The statewide advisory task force shall review and make 
        recommendations to the commissioner on child care resource and 
        referral grants and on statewide service development and child 
        care training grants.  Members of the advisory task force with a 
        direct financial interest in a resource and referral or a 
        statewide training proposal may not provide a recommendation or 
        participate in the ranking of that grant proposal.  The 
        following constituent groups must be represented:  family child 
        care providers, center providers, parent users, health services, 
        social services, Head Start, public schools, employers, and 
        other citizens with demonstrated interest in child care issues.  
        Each regional grant review committee formed under subdivision 3, 
        shall appoint a representative to the advisory task 
        force.  Additional members may be appointed by the commissioner. 
        The commissioner may convene meetings of the task force as 
        needed.  Terms of office and removal from office are governed by 
        the appointing body.  The commissioner may compensate members 
        for their travel, child care, and child care provider substitute 
        expenses for meetings of the task force.  The members of the 
        child care advisory task force shall also meet once with the 
        interagency advisory committee on child care under section 
        256H.25. 
           Sec. 57.  [119B.25] [CHILD CARE IMPROVEMENT GRANTS.] 
           Subdivision 1.  [PURPOSE.] The purpose of this section is 
        to enhance and expand child care sites, to encourage private 
        investment in child care and early childhood education sites, to 
        promote availability of quality, affordable child care 
        throughout Minnesota, and to provide for cooperation between 
        private nonprofit child care organizations, family child care 
        and center providers and the department. 
           Subd. 2.  [GRANTS.] The commissioner shall distribute money 
        provided by this section through a grant to a nonprofit 
        corporation organized to plan, develop, and finance early 
        childhood education and child care sites.  The nonprofit 
        corporation must have demonstrated the ability to analyze 
        financing projects, have knowledge of other sources of public 
        and private financing for child care and early childhood 
        education sites, and have a relationship with the resource and 
        referral programs under section 119B.18.  The board of directors 
        of the nonprofit corporation must include members who are 
        knowledgeable about early childhood education, child care, 
        development and improvement, and financing.  The commissioners 
        of the departments of children, families, and learning and trade 
        and economic development, and the commissioner of the housing 
        finance agency shall advise the board on the loan program.  The 
        grant must be used to make loans to improve child care or early 
        childhood education sites, or loans to plan, design, and 
        construct or expand licensed and legal unlicensed sites to 
        increase the availability of child care or early childhood 
        education.  All loans made by the nonprofit corporation must 
        comply with section 363.03, subdivision 8. 
           Subd. 3.  [FINANCING PROGRAM.] A nonprofit corporation that 
        receives a grant under this section shall use the money to: 
           (1) establish a revolving loan fund to make loans to 
        existing, expanding, and new licensed and legal unlicensed child 
        care and early childhood education sites; 
           (2) establish a fund to guarantee private loans to improve 
        or construct a child care or early childhood education site; 
           (3) establish a fund to provide forgivable loans or grants 
        to match all or part of a loan made under this section; and 
           (4) establish a fund as a reserve against bad debt.  
           The nonprofit corporation shall establish the terms and 
        conditions for loans and loan guarantees including, but not 
        limited to, interest rates, repayment agreements, private match 
        requirements, and conditions for loan forgiveness.  The 
        nonprofit corporation shall establish a minimum interest rate 
        for loans to ensure that necessary loan administration costs are 
        covered.  The nonprofit corporation may use interest earnings 
        for administrative expenses. 
           Subd. 4.  [REPORTING.] A nonprofit corporation that 
        receives a grant under this section shall: 
           (1) annually report by September 30 to the commissioner the 
        purposes for which the money was used in the past fiscal year, 
        including a description of projects supported by the financing, 
        an account of loans made during the calendar year, the financing 
        program's assets and liabilities, and an explanation of 
        administrative expenses; and 
           (2) annually submit to the commissioner a copy of the 
        report of an independent audit performed in accordance with 
        generally accepted accounting practices and auditing standards. 
           Sec. 58.  Minnesota Statutes 1996, section 121.8355, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [ESTABLISHMENT.] (a) In order to qualify as 
        a family services collaborative, a minimum of one school 
        district, one county, one public health entity, one community 
        action agency as defined in section 268.53, and one Head Start 
        grantee if the community action agency is not the designated 
        federal grantee for the Head Start program must agree in writing 
        to provide coordinated family services and commit resources to 
        an integrated fund.  Collaboratives are expected to have broad 
        community representation, which may include other local 
        providers, including additional school districts, counties, and 
        public health entities, other municipalities, public libraries, 
        existing culturally specific community organizations, tribal 
        entities, local health organizations, private and nonprofit 
        service providers, child care providers, local foundations, 
        community-based service groups, businesses, local transit 
        authorities or other transportation providers, community action 
        agencies under section 268.53, senior citizen volunteer 
        organizations, parent organizations, parents, and sectarian 
        organizations that provide nonsectarian services. 
           (b) Community-based collaboratives composed of 
        representatives of schools, local businesses, local units of 
        government, parents, students, clergy, health and social 
        services providers, youth service organizations, and existing 
        culturally specific community organizations may plan and develop 
        services for children and youth.  A community-based 
        collaborative must agree to collaborate with county, school 
        district, community action, and public health entities.  Their 
        services may include opportunities for children or youth to 
        improve child health and development, reduce barriers to 
        adequate school performance, improve family functioning, provide 
        community service, enhance self esteem, and develop general 
        employment skills.  
           (c) Members of the governing bodies of political 
        subdivisions involved in the establishment of a family services 
        collaborative shall select representatives of the 
        nongovernmental entities listed in paragraph (a) to serve on the 
        governing board of a collaborative.  The governing body members 
        of the political subdivisions shall select one or more 
        representatives of the nongovernmental entities within the 
        family service collaborative. 
           Sec. 59.  Minnesota Statutes 1996, section 124.2615, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [PROGRAM REVIEW AND APPROVAL.] By February 
        15, 1992, for the 1991-1992 school year or by January 1 of May 1 
        preceding subsequent school years, a district must submit to the 
        commissioners of children, families, and learning, and health, 
        human services, and economic security:  
           (1) a description of the services to be provided; 
           (2) a plan to ensure children at greatest risk receive 
        appropriate services; 
           (3) a description of procedures and methods to be used to 
        coordinate public and private resources to maximize use of 
        existing community resources, including school districts, health 
        care facilities, government agencies, neighborhood 
        organizations, and other resources knowledgeable in early 
        childhood development; 
           (4) comments about the district's proposed program by the 
        advisory council required by section 121.831, subdivision 7; and 
           (5) agreements with all participating service providers.  
           Each commissioner may review and comment on the program, 
        and make recommendations to the commissioner of children, 
        families, and learning, within 30 days of receiving the plan. 
           Sec. 60.  Minnesota Statutes 1996, section 124.2615, 
        subdivision 2, is amended to read: 
           Subd. 2.  [AMOUNT OF AID.] (a) A district is eligible to 
        receive learning readiness aid if the program plan as required 
        by subdivision 1 has been approved by the commissioner of 
        children, families, and learning.  The aid is equal to: 
           (1) $200 for fiscal year 1992 and $300 for fiscal year 1993 
        times the number of eligible four-year old children residing in 
        the district, as determined according to section 124.2711, 
        subdivision 2; plus 
           (2) $100 for fiscal year 1992 and $300 for fiscal year 1993 
        times the result of; 
           (3) the ratio of the number of pupils enrolled in the 
        school district from families eligible for the free or reduced 
        school lunch program to the total number of pupils enrolled in 
        the school district; times 
           (4) the number of children in clause (1). 
           (b) For fiscal year 1994 1998 and thereafter, a district 
        shall receive learning readiness aid equal to: 
           (1) the number of eligible four-year old children in the 
        district times the ratio of 50 percent of the total learning 
        readiness aid for that year to the total number of eligible 
        four-year old children reported to the commissioner for that 
        year; plus 
           (2) the number of participating eligible children times the 
        ratio of 15 percent of the total learning readiness aid for that 
        year to the total number of participating eligible children for 
        that year; plus 
           (3) the number of pupils enrolled in the school district 
        from families eligible for the free or reduced school lunch 
        program times the ratio of 35 50 percent of the total learning 
        readiness aid for that year to the total number of pupils in the 
        state from families eligible for the free or reduced school 
        lunch program. 
           Sec. 61.  [EARLY CHILDHOOD PROFESSIONAL DEVELOPMENT.] 
           The Minnesota Institute for Early Childhood Professional 
        Development shall make recommendations by January 15, 1998, 
        related to the qualifications for child care center staff and 
        family child care providers to the commissioners of human 
        services and children, families, and learning and the Minnesota 
        state legislature.  Recommendations must be made in the 
        following areas: 
           (1) whether the procedures for licensing individuals should 
        be separated from the licensing of the program and physical 
        plant of child care centers and homes; 
           (2) which entity would be the most appropriate to issue 
        individual licenses; 
           (3) core competencies which are based on the age of the 
        children served and type of provider; and 
           (4) the amount of preservice training, experience, and 
        in-service training for child care providers.  
           Sec. 62.  [UNIVERSAL APPLICATION FORM; BASIC SLIDING FEE 
        PROGRAM.] 
           The commissioner of children, families, and learning shall 
        develop a universal application form for the basic sliding fee 
        program.  The commissioner shall make the form available to all 
        counties.  Counties may use the universal application form to 
        implement a mail application process for the basic sliding fee 
        program. 
           Sec. 63.  [APPROPRIATIONS.] 
           Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
        LEARNING.] The sums indicated in this section are appropriated 
        from the general fund to the department of children, families, 
        and learning for the fiscal years designated.  The commissioner 
        shall encourage the use of child care dollars for the 
        development of collaborative partnerships with Head Start and 
        early childhood family education. 
           Subd. 2.  [BASIC SLIDING FEE CHILD CARE.] For child care 
        assistance according to Minnesota Statutes, section 119B.03: 
             $41,751,000    .....     1998 
             $50,751,000    .....     1999
           Any balance in the first year does not cancel but is 
        available the second year. 
           Of this appropriation, the department shall allocate the 
        amount necessary to administer the at-home child care program 
        under section 22. 
           Subd. 3.  [TANF CHILD CARE.] For child care assistance 
        according to Minnesota Statutes, section 119B.05: 
             $34,331,000    .....     1998 
             $64,838,000    .....     1999
           Up to $500,000 of the fiscal year 1998 appropriation may be 
        used for grants under section 23. 
           Any balance in the first year does not cancel but is 
        available in the second year. 
           Subd. 4.  [CHILD CARE ADMINISTRATION.] For administration 
        of child care assistance programs according to Minnesota 
        Statutes, sections 119B.03 and 119B.05, and development programs 
        according to Minnesota Statutes, section 119B.21: 
               $826,000     .....     1998 
               $232,000     .....     1999
           Any balance in the first year does not cancel but is 
        available in the second year. 
           Of the fiscal year 1998 appropriation, $594,000 is a 
        one-time appropriation and is not to be added to the permanent 
        base. 
           Subd. 5.  [CHILD CARE DEVELOPMENT.] For child care 
        development grants according to Minnesota Statutes, section 
        119B.21: 
             $5,865,000     .....     1998
             $1,865,000     .....     1999
           Of the fiscal year 1998 appropriation, up to $2,000,000 is 
        for the following grants: 
           (1) a grant to the Minnesota licensed family child care 
        association for statewide implementation of the family child 
        care mentorship model developed by the association; 
           (2) a grant to the Minnesota child care apprentice/mentor 
        program to modify the apprentice/mentor program for statewide 
        implementation through the child care careers program of the 
        community/technical college system; 
           (3) a grant to expand project impact, which prepares child 
        care providers and staff who are members of a community of 
        color, as that term is defined in Minnesota Statutes, section 
        257.076, subdivision 3, to meet or exceed the education and 
        experience requirements of assistant teachers, teachers, and 
        family day care providers in licensed child care programs; 
           (4) expansion of the Minnesota child care apprentice/mentor 
        program, which prepares child care center staff to meet or 
        exceed the education and experience requirements of teachers in 
        licensed child care centers; 
           (5) grants to the regional child care resource and referral 
        programs under Minnesota Statutes, section 119B.18, and 
        education and training loans made by the regional child care 
        resource and referral programs under the loan program 
        established in section 119B.18.  No more than 2.5 percent of 
        this appropriation may be used for administration of the loan 
        program; and 
           (6) a grant to a nonprofit corporation under Minnesota 
        Statutes, section 119B.25.  Up to five percent of the grant may 
        be used by the department and the nonprofit corporation to 
        administer the loan program including costs associated with 
        setting up an information system to administer child care and 
        early childhood education facility loans. 
           Presented to the governor May 15, 1997 
           Signed by the governor May 16, 1997, 2:20 p.m.