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Office of the Revisor of Statutes

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

                            CHAPTER 205-H.F.No. 1467 
                  An act relating to education; family and early 
                  childhood education; providing for children and family 
                  support programs, community and systems change, 
                  prevention and intervention, self-sufficiency and 
                  lifelong learning, and resources and referral 
                  programs; appropriating money; amending Minnesota 
                  Statutes 1998, sections 13.46, subdivision 2; 16B.405, 
                  subdivision 2; 119A.45; 119B.01, subdivisions 1, 2, 
                  10, 12, 12a, 13, 16, 17, and by adding subdivisions; 
                  119B.02, subdivision 1, and by adding subdivisions; 
                  119B.03, subdivisions 1, 2, 3, 4, 6, and 9; 119B.04, 
                  subdivision 1; 119B.05, subdivision 1; 119B.06, 
                  subdivision 1; 119B.061; 119B.07; 119B.08, subdivision 
                  3; 119B.09, subdivisions 1, 3, and 7; 119B.10, 
                  subdivision 1; 119B.11, subdivision 2a; 119B.12, 
                  subdivision 2; 119B.13; 119B.14; 119B.15; 119B.18, 
                  subdivision 3; 119B.19, subdivision 1, and by adding 
                  subdivisions; 119B.20, subdivisions 7, 8, 12, and by 
                  adding a subdivision; 119B.21, subdivisions 1, 2, 3, 
                  5, 8, 9, 10, and 11; 119B.23, subdivision 1; 119B.24; 
                  119B.25, subdivision 3; 121A.19; 122A.26, by adding a 
                  subdivision; 124D.13, subdivision 6; 124D.135, 
                  subdivisions 1 and 3; 124D.19, subdivision 11; 
                  124D.20, subdivision 5; 124D.22; 124D.23, by adding a 
                  subdivision; 124D.33, subdivisions 3 and 4; 124D.52, 
                  by adding subdivisions; 124D.53, subdivision 3, and by 
                  adding a subdivision; 124D.54, subdivision 1; 125A.35, 
                  subdivision 5; 171.29, subdivision 2; 256.01, 
                  subdivision 4; 256.045, subdivisions 6, 7, and by 
                  adding a subdivision; 256.046, subdivision 1; 256.741, 
                  subdivision 4; 256.98, subdivisions 1, 7, and 8; 
                  256.983, subdivisions 3 and 4; and 466.01, subdivision 
                  1; Laws 1997, chapter 162, article 2, section 28, 
                  subdivision 6; Laws 1997, First Special Session 
                  chapter 4, article 1, section 61, subdivisions 2 and 
                  3, as amended; Laws 1998, First Special Session 
                  chapter 1, article 1, sections 10, 11, and 12; 
                  proposing coding for new law in Minnesota Statutes, 
                  chapters 119B; and 124D; repealing Minnesota Statutes 
                  1998, sections 119B.01, subdivision 15; 119B.03, 
                  subdivision 7; 119B.05, subdivisions 6 and 7; 
                  119B.075; 119B.17; 119B.18, subdivisions 1 and 2; 
                  119B.19, subdivisions 3, 4, and 5; 119B.20, 
                  subdivisions 1, 2, 3, 4, 5, 6, 9, 10, and 11; 119B.21, 
                  subdivisions 4, 6, and 12; 119B.22; 124D.14; and 
                  124D.53, subdivision 6. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
                                   ARTICLE 1 
                      CHILDREN AND FAMILY SUPPORT PROGRAMS 
           Section 1.  Minnesota Statutes 1998, section 13.46, 
        subdivision 2, is amended to read: 
           Subd. 2.  [GENERAL.] (a) Unless the data is summary data or 
        a statute specifically provides a different classification, data 
        on individuals collected, maintained, used, or disseminated by 
        the welfare system is private data on individuals, and shall not 
        be disclosed except:  
           (1) according to section 13.05; 
           (2) according to court order; 
           (3) according to a statute specifically authorizing access 
        to the private data; 
           (4) to an agent of the welfare system, including a law 
        enforcement person, attorney, or investigator acting for it in 
        the investigation or prosecution of a criminal or civil 
        proceeding relating to the administration of a program; 
           (5) to personnel of the welfare system who require the data 
        to determine eligibility, amount of assistance, and the need to 
        provide services of additional programs to the individual; 
           (6) to administer federal funds or programs; 
           (7) between personnel of the welfare system working in the 
        same program; 
           (8) the amounts of cash public assistance and relief paid 
        to welfare recipients in this state, including their names, 
        social security numbers, income, addresses, and other data as 
        required, upon request by the department of revenue to 
        administer the property tax refund law, supplemental housing 
        allowance, early refund of refundable tax credits, and the 
        income tax.  "Refundable tax credits" means the dependent care 
        credit under section 290.067, the Minnesota working family 
        credit under section 290.0671, the property tax refund under 
        section 290A.04, and, if the required federal waiver or waivers 
        are granted, the federal earned income tax credit under section 
        32 of the Internal Revenue Code; 
           (9) between the department of human services, the 
        department of children, families, and learning, and the 
        Minnesota department of economic security for the purpose of 
        monitoring the eligibility of the data subject for reemployment 
        insurance, for any employment or training program administered, 
        supervised, or certified by that agency, for the purpose of 
        administering any rehabilitation program or child care 
        assistance program, whether alone or in conjunction with the 
        welfare system, or to monitor and evaluate the statewide 
        Minnesota family investment program by exchanging data on 
        recipients and former recipients of food stamps, cash assistance 
        under chapter 256, 256D, 256J, or 256K, child care assistance 
        under chapter 119B, or medical programs under chapter 256B, 
        256D, or 256L; 
           (10) to appropriate parties in connection with an emergency 
        if knowledge of the information is necessary to protect the 
        health or safety of the individual or other individuals or 
        persons; 
           (11) data maintained by residential programs as defined in 
        section 245A.02 may be disclosed to the protection and advocacy 
        system established in this state according to Part C of Public 
        Law Number 98-527 to protect the legal and human rights of 
        persons with mental retardation or other related conditions who 
        live in residential facilities for these persons if the 
        protection and advocacy system receives a complaint by or on 
        behalf of that person and the person does not have a legal 
        guardian or the state or a designee of the state is the legal 
        guardian of the person; 
           (12) to the county medical examiner or the county coroner 
        for identifying or locating relatives or friends of a deceased 
        person; 
           (13) data on a child support obligor who makes payments to 
        the public agency may be disclosed to the higher education 
        services office to the extent necessary to determine eligibility 
        under section 136A.121, subdivision 2, clause (5); 
           (14) participant social security numbers and names 
        collected by the telephone assistance program may be disclosed 
        to the department of revenue to conduct an electronic data match 
        with the property tax refund database to determine eligibility 
        under section 237.70, subdivision 4a; 
           (15) the current address of a recipient of aid to families 
        with dependent children or Minnesota family investment 
        program-statewide program participant may be disclosed to law 
        enforcement officers who provide the name of the recipient 
        participant and notify the agency that: 
           (i) the recipient participant: 
           (A) is a fugitive felon fleeing to avoid prosecution, or 
        custody or confinement after conviction, for a crime or attempt 
        to commit a crime that is a felony under the laws of the 
        jurisdiction from which the individual is fleeing; or 
           (B) is violating a condition of probation or parole imposed 
        under state or federal law; 
           (ii) the location or apprehension of the felon is within 
        the law enforcement officer's official duties; and 
           (iii) the request is made in writing and in the proper 
        exercise of those duties; 
           (16) the current address of a recipient of general 
        assistance or general assistance medical care may be disclosed 
        to probation officers and corrections agents who are supervising 
        the recipient and to law enforcement officers who are 
        investigating the recipient in connection with a felony level 
        offense; 
           (17) information obtained from food stamp applicant or 
        recipient households may be disclosed to local, state, or 
        federal law enforcement officials, upon their written request, 
        for the purpose of investigating an alleged violation of the 
        Food Stamp Act, according to Code of Federal Regulations, title 
        7, section 272.1(c); 
           (18) the address, social security number, and, if 
        available, photograph of any member of a household receiving 
        food stamps shall be made available, on request, to a local, 
        state, or federal law enforcement officer if the officer 
        furnishes the agency with the name of the member and notifies 
        the agency that:  
           (i) the member: 
           (A) is fleeing to avoid prosecution, or custody or 
        confinement after conviction, for a crime or attempt to commit a 
        crime that is a felony in the jurisdiction the member is 
        fleeing; 
           (B) is violating a condition of probation or parole imposed 
        under state or federal law; or 
           (C) has information that is necessary for the officer to 
        conduct an official duty related to conduct described in subitem 
        (A) or (B); 
           (ii) locating or apprehending the member is within the 
        officer's official duties; and 
           (iii) the request is made in writing and in the proper 
        exercise of the officer's official duty; 
           (19) certain information regarding child support obligors 
        who are in arrears may be made public according to section 
        518.575; 
           (20) data on child support payments made by a child support 
        obligor and data on the distribution of those payments excluding 
        identifying information on obligees may be disclosed to all 
        obligees to whom the obligor owes support, and data on the 
        enforcement actions undertaken by the public authority, the 
        status of those actions, and data on the income of the obligor 
        or obligee may be disclosed to the other party; 
           (21) data in the work reporting system may be disclosed 
        under section 256.998, subdivision 7; 
           (22) to the department of children, families, and learning 
        for the purpose of matching department of children, families, 
        and learning student data with public assistance data to 
        determine students eligible for free and reduced price meals, 
        meal supplements, and free milk according to United States Code, 
        title 42, sections 1758, 1761, 1766, 1766a, 1772, and 1773; to 
        produce accurate numbers of students receiving aid to families 
        with dependent children or Minnesota family investment 
        program-statewide program assistance as required by section 
        126C.06; to allocate federal and state funds that are 
        distributed based on income of the student's family; and to 
        verify receipt of energy assistance for the telephone assistance 
        plan; 
           (23) the current address and telephone number of program 
        recipients and emergency contacts may be released to the 
        commissioner of health or a local board of health as defined in 
        section 145A.02, subdivision 2, when the commissioner or local 
        board of health has reason to believe that a program recipient 
        is a disease case, carrier, suspect case, or at risk of illness, 
        and the data are necessary to locate the person; 
           (24) to other state agencies, statewide systems, and 
        political subdivisions of this state, including the attorney 
        general, and agencies of other states, interstate information 
        networks, federal agencies, and other entities as required by 
        federal regulation or law for the administration of the child 
        support enforcement program; 
           (25) to personnel of public assistance programs as defined 
        in section 256.741, for access to the child support system 
        database for the purpose of administration, including monitoring 
        and evaluation of those public assistance programs; or 
           (26) to monitor and evaluate the statewide Minnesota family 
        investment program by exchanging data between the departments of 
        human services and children, families, and learning, on 
        recipients and former recipients of food stamps, cash assistance 
        under chapter 256, 256D, 256J, or 256K, child care assistance 
        under chapter 119B, or medical programs under chapter 256B, 
        256D, or 256L.  
           (b) Information on persons who have been treated for drug 
        or alcohol abuse may only be disclosed according to the 
        requirements of Code of Federal Regulations, title 42, sections 
        2.1 to 2.67. 
           (c) Data provided to law enforcement agencies under 
        paragraph (a), clause (15), (16), (17), or (18), or paragraph 
        (b), are investigative data and are confidential or protected 
        nonpublic while the investigation is active.  The data are 
        private after the investigation becomes inactive under section 
        13.82, subdivision 5, paragraph (a) or (b). 
           (d) Mental health data shall be treated as provided in 
        subdivisions 7, 8, and 9, but is not subject to the access 
        provisions of subdivision 10, paragraph (b). 
           Sec. 2.  Minnesota Statutes 1998, section 119A.45, is 
        amended to read: 
           119A.45 [EARLY CHILDHOOD LEARNING AND CHILD PROTECTION 
        FACILITIES.] 
           The commissioner may make grants to state agencies and 
        political subdivisions to construct or rehabilitate facilities 
        for Head Start, early childhood and family education programs, 
        other early childhood intervention programs, or demonstration 
        family service centers housing multiagency collaboratives early 
        childhood programs, with priority to centers in counties or 
        municipalities with the highest number of children living in 
        poverty.  The commissioner may also make grants to state 
        agencies and political subdivisions to construct or rehabilitate 
        facilities for crisis nurseries or child visitation centers.  
        The facilities must be owned by the state or a political 
        subdivision, but may be leased under section 16A.695 to 
        organizations that operate the programs.  The commissioner must 
        prescribe the terms and conditions of the leases.  A grant for 
        an individual facility must not exceed $200,000 for each program 
        that is housed in the facility, up to a maximum of $500,000 for 
        a facility that houses three programs or more.  Programs include 
        Head Start, early childhood and family education programs, and 
        other early childhood intervention programs.  The commissioner 
        must give priority to grants that involve collaboration among 
        sponsors of programs under this section.  At least 25 percent of 
        the amounts appropriated for these grants must be used in 
        conjunction with the youth employment and training programs 
        operated by the commissioner of economic security.  Eligible 
        programs must consult with appropriate labor organizations to 
        deliver education and training. 
           Sec. 3.  Minnesota Statutes 1998, section 119B.01, 
        subdivision 2, is amended to read: 
           Subd. 2.  [APPLICANT.] "Child care fund applicants" means 
        all parents, stepparents, legal guardians, or eligible 
        relative caretakers caregivers who are members of the family and 
        reside in the household that applies for child care assistance 
        under the child care fund. 
           Sec. 4.  Minnesota Statutes 1998, section 119B.01, is 
        amended by adding a subdivision to read: 
           Subd. 2a.  [APPLICATION.] "Application" means the 
        submission to a county agency, by or on behalf of a family, of a 
        completed, signed, and dated child care assistance universal 
        application form that indicates the family's desire to receive 
        assistance. 
           Sec. 5.  Minnesota Statutes 1998, section 119B.01, 
        subdivision 10, is amended to read: 
           Subd. 10.  [FAMILY.] "Family" means parents, stepparents, 
        guardians and their spouses, or other eligible 
        relative caretakers caregivers and their spouses, and their 
        blood related dependent children and adoptive siblings under the 
        age of 18 years living in the same home including children 
        temporarily absent from the household in settings such as 
        schools, foster care, and residential treatment facilities or 
        parents, stepparents, guardians and their spouses, or other 
        relative caregivers and their spouses temporarily absent from 
        the household in settings such as schools, military service, or 
        rehabilitation programs.  When a minor parent or parents and 
        his, her, or their child or children are living with other 
        relatives, and the minor parent or parents apply for a child 
        care subsidy, "family" means only the minor parent or parents 
        and the their child or children.  An adult may be considered a 
        dependent member of the family unit if 50 percent of the adult's 
        support is being provided by the parents, stepparents, guardians 
        and their spouses, or eligible relative caretakers and their 
        spouses, residing in the same household.  An adult age 18 or 
        older who meets this definition of family and is a full-time 
        high school or post-secondary student and can reasonably be 
        expected to graduate before age 19 may be considered a dependent 
        member of the family unit if 50 percent or more of the adult's 
        support is provided by the parents, stepparents, guardians, and 
        their spouses or eligible relative caregivers and their spouses 
        residing in the same household. 
           Sec. 6.  Minnesota Statutes 1998, section 119B.01, 
        subdivision 12, is amended to read: 
           Subd. 12.  [INCOME.] "Income" means earned or unearned 
        income received by all family members, including public 
        assistance cash benefits and at-home infant care subsidy 
        payments, 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 or 
        reimbursement for tuition, fees, books, and educational 
        supplies; student loans for tuition, fees, books, supplies, and 
        living expenses; state and federal earned income tax credits; 
        in-kind income such as food stamps, energy assistance, foster 
        care assistance, medical assistance, child care assistance, and 
        housing subsidies; earned income of full or part-time secondary 
        school students up to the age of 19, who have not earned a high 
        school diploma or GED high school equivalency diploma 
        including earnings from summer employment; grant awards under 
        the family subsidy program; 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 256.741, if enacted. 
           Sec. 7.  Minnesota Statutes 1998, section 119B.01, 
        subdivision 12a, is amended to read: 
           Subd. 12a.  [MFIP-S MFIP.] "MFIP-S" "MFIP" means the 
        Minnesota family investment program-statewide program, the 
        state's TANF program under Public Law Number 104-193, Title I, 
        and includes the MFIP program under chapter 256J, the work first 
        program under chapter 256K, and tribal contracts under section 
        119B.02, subdivision 2, or 256.01, subdivision 2. 
           Sec. 8.  Minnesota Statutes 1998, section 119B.01, 
        subdivision 13, is amended to read: 
           Subd. 13.  [PROVIDER.] "Provider" means a child care 
        license holder who operates a family day child care home, a 
        group family day child care home, a day child care center, a 
        nursery school, a day nursery, an extended day a school age 
        child care program; a legal nonlicensed extended day 
        license-exempt school age child care program which operates 
        operating under the auspices of a local school board or a park 
        or recreation board of a city of the first class that has 
        adopted school age child care standards guidelines which meet or 
        exceed standards guidelines recommended by the state department 
        of children, families, and learning, or a legal nonlicensed 
        caregiver registered provider who is at least 18 years of age, 
        and who is not a member of the AFDC MFIP assistance unit or a 
        member of the family receiving child care assistance under this 
        chapter.  
           Sec. 9.  Minnesota Statutes 1998, section 119B.01, 
        subdivision 16, is amended to read: 
           Subd. 16.  [TRANSITION YEAR FAMILIES.] "Transition year 
        families" means families who have received AFDC MFIP assistance, 
        or who were eligible to receive AFDC MFIP assistance after 
        choosing to discontinue receipt of the cash portion of MFIP-S 
        MFIP assistance under section 256J.31, subdivision 12, for at 
        least three of the last six months before losing eligibility for 
        AFDC MFIP due to increased hours of employment, or increased 
        income from employment or child or spousal support or families 
        participating in work first under chapter 256K who meet the 
        requirements of section 256K.07.  Transition year child care may 
        be used to support employment or job search. 
           Sec. 10.  Minnesota Statutes 1998, 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, job search, or education and training 
        leading to employment, or an at-home infant care subsidy; and 
           (2) grants to develop, expand, and improve the access and 
        availability of child care services statewide. 
           Sec. 11.  Minnesota Statutes 1998, section 119B.02, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [CHILD CARE SERVICES.] 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 under 
        Public Law Number 104-193, titles I and VI, and other programs 
        that provide federal or state reimbursement for child care 
        services for low-income families 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.  The commissioner shall 
        allocate federal reimbursement obtained must be allocated to the 
        county to counties that spent money for child care that is 
        federally reimbursable under programs that provide federal 
        reimbursement for federally reimbursable 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. 12.  Minnesota Statutes 1998, section 119B.02, is 
        amended by adding a subdivision to read: 
           Subd. 3.  [SUPERVISION OF COUNTIES.] The commissioner shall 
        supervise child care programs administered by the counties 
        through standard-setting, technical assistance to the counties, 
        approval of county child care fund plans, and distribution of 
        public money for services.  The commissioner shall provide 
        training and other support services to assist counties in 
        planning for and implementing child care assistance programs.  
        The commissioner shall adopt rules under chapter 14 that 
        establish minimum administrative standards for the provision of 
        child care services by county boards of commissioners.  
           Sec. 13.  Minnesota Statutes 1998, section 119B.02, is 
        amended by adding a subdivision to read: 
           Subd. 4.  [UNIVERSAL APPLICATION FORM.] The commissioner 
        must develop and make available to all counties a universal 
        application form for child care assistance under this chapter.  
        The application must provide notice of eligibility requirements 
        for assistance and penalties for wrongfully obtaining assistance.
           Sec. 14.  Minnesota Statutes 1998, section 119B.02, is 
        amended by adding a subdivision to read: 
           Subd. 5.  [PROGRAM INTEGRITY.] For child care assistance 
        programs under this chapter, the commissioner shall enforce, in 
        cooperation with the commissioner of human services, the 
        requirements for program integrity and fraud prevention 
        investigations under sections 256.046, 256.98, and 256.983. 
           Sec. 15.  Minnesota Statutes 1998, section 119B.03, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [ALLOCATION PERIOD; NOTICE OF ALLOCATION.] 
        When the commissioner notifies county and human service boards 
        of the forms and instructions they are to follow in the 
        development of their biennial community social services child 
        care fund plans required under section 256E.08 119B.08, 
        subdivision 3, the commissioner shall also notify county and 
        human services boards of their estimated child care fund program 
        allocation for the two years covered by the plan.  By October 1 
        of each year, the commissioner shall notify all counties of 
        their final child care fund program allocation. 
           Sec. 16.  Minnesota Statutes 1998, section 119B.03, 
        subdivision 2, is amended to read: 
           Subd. 2.  [WAITING LIST.] Each county that receives funds 
        under this section must keep a written record and report to the 
        commissioner the number of eligible families who have applied 
        for a child care subsidy or have requested child care 
        assistance.  Counties shall perform a cursory preliminary 
        determination of eligibility when a family requests information 
        about child care assistance.  At a minimum, a county must make a 
        preliminary determination of eligibility based on family size, 
        income, and authorized activity.  A family seeking child care 
        assistance must provide the required information to the county.  
        A family that appears to be eligible must be put on a waiting 
        list if funds are not immediately available.  The waiting list 
        must identify students in need of child care.  When money is 
        available counties shall expedite the processing of student 
        applications during key enrollment periods.  Counties must 
        review and update their waiting list at least every six months. 
           Sec. 17.  Minnesota Statutes 1998, section 119B.03, 
        subdivision 3, is amended to read: 
           Subd. 3.  [ELIGIBLE RECIPIENTS PARTICIPANTS.] Families that 
        meet the eligibility requirements under sections 119B.07, 
        119B.09, and 119B.10, except AFDC recipients, MFIP recipients 
        participants, work first participants, 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 shall be continued until they are no 
        longer eligible.  Child care assistance provided through the 
        child care fund is considered assistance to the parent. 
           Sec. 18.  Minnesota Statutes 1998, 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 non-MFIP 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 MFIP or work first transition year. 
           (c) Third priority must be given to families who are 
        eligible for portable basic sliding fee assistance through the 
        portability pool under subdivision 9. 
           Sec. 19.  Minnesota Statutes 1998, 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 One-fourth 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 fiscal year completed at the time of the notice 
        of allocation.  
           (b) One-third One-fourth 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 families participating in the transition year 
        child care program as reported during the most recent quarter 
        completed at the time of the notice of allocation. 
           (c) One-third One-fourth 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 in proportion to each county's most recently 
        reported first, second, and third priority waiting list as 
        defined in subdivision 2. 
           (d) One-fourth of the funds must be allocated in proportion 
        to each county's most recently reported waiting list as defined 
        in subdivision 2. 
           Sec. 20.  Minnesota Statutes 1998, section 119B.03, 
        subdivision 9, is amended 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 used for assistance 
        under the basic sliding fee program.  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. 21.  Minnesota Statutes 1998, section 119B.04, 
        subdivision 1, is amended to read: 
           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 child care and development fund under Public Law 
        Number 104-193, Title I VI.  
           Sec. 22.  Minnesota Statutes 1998, section 119B.05, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [ELIGIBLE RECIPIENTS PARTICIPANTS.] 
        Families eligible for child care assistance under the AFDC MFIP 
        child care program are: 
           (1) persons receiving services under sections 256.031 to 
        256.0361 and 256.047 to 256.048; 
           (2) AFDC recipients MFIP participants who are employed or 
        in job search and meet the requirements of section 119B.10; 
           (3) (2) 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; 
           (5) AFDC caretakers who are participating in the STRIDE and 
        non-STRIDE AFDC child care program; 
           (6) (3) 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 (4) MFIP 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 119A.54, 119B.01, subdivision 8, 
        124D.13, 256E.08, and 611A.32 and titles IVA, IVB, IVE, and XX 
        of the Social Security Act; and 
           (5) families who are participating in programs as required 
        in tribal contracts under section 119B.02, subdivision 2, or 
        256.01, subdivision 2. 
           Sec. 23.  Minnesota Statutes 1998, section 119B.06, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [COMMISSIONER TO ADMINISTER BLOCK GRANT.] 
        The commissioner of children, families, and learning is 
        authorized and directed to receive, administer, and expend child 
        care funds available under the child care and development block 
        grant authorized under Public Law Number 101-508 (2).  
           Sec. 24.  Minnesota Statutes 1998, section 119B.061, is 
        amended to read: 
           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 in which a parent 
        provides care for the family's infant child may receive a 
        subsidy in lieu of assistance for a parent to provide short-term 
        child care for the family's infant child if the family is 
        eligible for, or is receiving assistance under the basic sliding 
        fee program.  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.  Subject to 
        federal match and maintenance of effort requirements for the 
        child care and development fund, 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 a fiscal year, the commissioner may carry forward any 
        unspent funds must be used under this section to the next fiscal 
        year within the same biennium 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 MFIP, other cash 
        assistance, or other child care assistance; 
           (2) the family has not previously received all of the 
        one-year exemption from the work requirement for infant care 
        under the MFIP-S MFIP 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 participation in an authorized 
        activity at the time of application and meets the program 
        requirements. 
           Subd. 3.  [ELIGIBLE PARENT.] Only A family is eligible for 
        assistance under this section if one parent, in a two-parent 
        family, is eligible for assistance cares for the family's infant 
        child.  The eligible parent must: 
           (1) be over the age of 18; 
           (2) provide care for the infant full-time care for the 
        child in the child's infant's home; and 
           (3) provide child care for any other children in the family 
        that who are eligible for child care assistance under this 
        chapter.  
           For the purposes of this section, "parent" means birth 
        parent, adoptive parent, or stepparent. 
           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 is equal to 75 percent 
        of the rate established under section 119B.13 for care of 
        infants in licensed family day child care in the applicant's 
        county of residence.  Assistance must be calculated to reflect 
        the copay parent fee requirement and under section 119B.12 for 
        the family's income level and family size. 
           (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. Persons who are admitted to the at-home 
        infant care program retain their position in any basic sliding 
        fee program or on any waiting list attained at the time of 
        admittance.  If they are on the waiting list, they must advance 
        as if they had not been admitted to the program.  Persons 
        leaving the at-home infant care program re-enter the basic 
        sliding fee program at the position they would have occupied or 
        the waiting list at the position to which they would have 
        advanced.  Persons who would have attained eligibility for the 
        basic sliding fee program must be given assistance or advance to 
        the top of the waiting list when they leave the at-home infant 
        care program.  Persons admitted to the at-home infant care 
        program who are not on a basic sliding fee waiting list may 
        apply to the basic sliding fee program, and if eligible, be 
        placed on the waiting list. 
           (d) The time that a family that receives assistance under 
        this section is ineligible for must be deducted from the 
        one-year exemption from work requirements under the MFIP-S MFIP 
        program. 
           (e) Assistance under this section does not establish an 
        employer-employee relationship between any member of the 
        assisted family and the county or state. 
           Subd. 5.  [IMPLEMENTATION.] By July 1, 1998, (a) The 
        commissioner shall implement the at-home infant child care 
        program under this section through counties that administer the 
        basic sliding fee program under section 119B.03.  The 
        commissioner must develop and distribute consumer information on 
        the at-home infant care program to assist parents of infants or 
        expectant parents in making informed child care decisions. 
           (b) 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. 25.  Minnesota Statutes 1998, 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 employment 
        plan in the case of an AFDC recipient MFIP participant, and 
        county policies included in the child care allocation fund 
        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 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 MFIP participant 
        who is receiving AFDC MFIP child care assistance under this 
        chapter moves to another county, continues to participate in 
        educational or training programs authorized in 
        their employability development employment plans, and continues 
        to be eligible for AFDC MFIP child care assistance under this 
        chapter, the AFDC caretaker MFIP participant must receive 
        continued child care assistance from the county responsible for 
        their current employability development employment plan, without 
        interruption under section 256G.07. 
           Sec. 26.  [119B.074] [SPECIAL REVENUE ACCOUNT FOR CHILD 
        CARE.] 
           A child support collection account is established in the 
        special revenue fund for the deposit of collections through the 
        assignment of child support under section 256.741, subdivision 
        2.  The commissioner of human services must deposit all 
        collections made under section 256.741, subdivision 2, in the 
        child support collection account.  Money in this account is 
        appropriated to the commissioner for assistance under section 
        119B.03 and is in addition to other state and federal 
        appropriations.  
           Sec. 27.  Minnesota Statutes 1998, 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).  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 in its biennial community social services plan.  The 
        commissioner shall establish the dates by which the county must 
        submit the plans.  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 methods used by the county to inform eligible 
        groups families of the availability of child care assistance and 
        related services; 
           (3) the provider rates paid for all children with special 
        needs by provider type; 
           (4) the county prioritization policy for all eligible 
        groups families under the basic sliding fee program and AFDC 
        child care program; and 
           (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 1998, section 119B.09, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [GENERAL ELIGIBILITY 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: 
           (1) meet the requirements of section 119B.05; receive aid 
        to families with dependent children, MFIP-S, or work first, 
        whichever is in effect MFIP assistance; and are receiving 
        participating in employment and training services under section 
        256.736 or chapter 256J or 256K; 
           (2) have household income below the eligibility levels for 
        aid to families with dependent children MFIP; or 
           (3) have household income within a range established by the 
        commissioner. 
           (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 same copayment required 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 for all children in the 
        family 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 1998, section 119B.09, 
        subdivision 3, is amended to read: 
           Subd. 3.  [PRIORITIES; ALLOCATIONS.] If a county projects 
        that its child care allocation is insufficient to meet the needs 
        of all eligible groups families, it may prioritize among 
        the groups families that remain to be served after the county 
        has complied with the priority requirements of section 119B.03.  
        Counties that have established a priority for non-AFDC families 
        who are not MFIP participants beyond those established under 
        section 119B.03 must submit the policy in the annual allocation 
        child care fund plan. 
           Sec. 30.  Minnesota Statutes 1998, section 119B.09, 
        subdivision 7, is amended to read: 
           Subd. 7.  [DATE OF 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 waiting 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 MFIP is 
        effective the date of employment or the date of AFDC MFIP 
        eligibility, whichever is later.  Payment of child care 
        assistance for MFIP-S MFIP or work first participants in 
        employment and training services is effective the date of 
        commencement of the services or the date of MFIP-S MFIP 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. 31.  Minnesota Statutes 1998, 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 
        20 hours and full-time students who work at least an average of 
        ten hours a week and receive at least a minimum wage for all 
        hours worked are eligible for continued child care 
        assistance for employment.  For purposes of this section, 
        work-study programs must be counted as employment.  Child care 
        assistance during employment must be authorized as provided in 
        paragraphs (c) and (d). 
           (c) When the caregiver person 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 mealtime during the 
        employment and travel time up to two hours per day. 
           (d) When the caregiver person 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 mealtime 
        during employment, and travel time up to two hours per day. 
           Sec. 32.  Minnesota Statutes 1998, section 119B.11, 
        subdivision 2a, is amended 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.  If the family remains 
        eligible for child care assistance, 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 3400.0140, subpart 19.  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:  (1) the debt is paid in full; or 
        (2) satisfactory arrangements are made with the county to retire 
        the debt consistent with the requirements of this chapter and 
        Minnesota Rules, chapter 3400, and the family is in compliance 
        with the arrangements. 
           Sec. 33.  Minnesota Statutes 1998, section 119B.12, 
        subdivision 2, is amended to read: 
           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. 34.  Minnesota Statutes 1998, section 119B.13, is 
        amended to read: 
           119B.13 [CHILD CARE RATES.] 
           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 commissioner shall evaluate rates market 
        practices for payment of absent spaces absences 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. 
           Subd. 2.  [PROVIDER RATE BONUS FOR ACCREDITATION.] 
        Currently accredited child care centers shall be paid a ten 
        percent bonus above the maximum rate established in subdivision 
        1, up to the actual provider rate.  A family day child care 
        provider or child care center shall be paid a ten percent bonus 
        above the maximum rate established in subdivision 1, if the 
        provider or center holds a current early childhood development 
        credential approved by the commissioner, up to the actual 
        provider rate.  For purposes of this subdivision, "accredited" 
        means accredited by the National Association for the Education 
        of Young Children. 
           Subd. 3.  [PROVIDER RATE FOR CARE OF CHILDREN WITH 
        HANDICAPS OR SPECIAL NEEDS.] Counties shall reimburse providers 
        for the care of children with handicaps or special needs, at a 
        special rate to be set approved by the county for care of these 
        children, subject to the approval of the commissioner. 
           Subd. 4.  [RATES CHARGED TO PUBLICLY SUBSIDIZED FAMILIES.] 
        Child care providers receiving reimbursement under this chapter 
        may not charge a rate to clients receiving assistance under this 
        chapter that is higher than the private, full-paying client rate.
           Subd. 5.  [PROVIDER NOTICE.] The county shall inform both 
        the family receiving assistance under this chapter 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 provider must 
        not contain any private data on the family or information on why 
        payment will no longer be made. 
           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 this subdivision, 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. 35.  Minnesota Statutes 1998, section 119B.14, is 
        amended to read: 
           119B.14 [EXTENSION OF EMPLOYMENT OPPORTUNITIES.] 
           The county board shall insure ensure that child care 
        services available to eligible residents are well advertised and 
        that everyone who receives or applies for aid to families with 
        dependent children MFIP assistance is informed of training and 
        employment opportunities and programs, including child care 
        assistance and child care resource and referral services. 
           Sec. 36.  Minnesota Statutes 1998, section 119B.15, is 
        amended to read: 
           119B.15 [ADMINISTRATIVE EXPENSES.] 
           The commissioner shall use up to 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 MFIP 
        child care program for payments to counties for administrative 
        expenses. 
           Sec. 37.  Minnesota Statutes 1998, section 119B.18, 
        subdivision 3, is amended 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 24 months following the 
        completion of all courses paid for by the educational loan. 
           Sec. 38.  Minnesota Statutes 1998, section 119B.24, is 
        amended to read: 
           119B.24 [DUTIES OF COMMISSIONER.] 
           In addition to the powers and duties already conferred by 
        law, the commissioner of children, families, and learning shall: 
           (1) by September 1, 1998, and every five years thereafter, 
        survey and report on all components of the child care system, 
        including, but not limited to, availability of licensed child 
        care slots, the number of children in various kinds of child 
        care settings, staff wages, rate of staff turnover, 
        qualifications of child care workers, cost of child care by type 
        of service and ages of children, and child care availability 
        through school systems; 
           (2) by September 1, 1998, and every five years thereafter, 
        survey and report on the extent to which existing child care 
        services fulfill the need for child care, giving particular 
        attention to the need for part-time care and for care of 
        infants, sick children, children with special needs, low-income 
        children, toddlers, and school-age children; 
           (3) administer the child care fund, including the basic 
        sliding fee program authorized under sections 119B.01 to 
        119B.16; 
           (4) (2) monitor the child care resource and referral 
        programs established under section 119B.19; and 
           (5) (3) encourage child care providers to participate in a 
        nationally recognized accreditation system for early childhood 
        programs.  The commissioner shall reimburse licensed child care 
        providers for one-half of the direct cost of accreditation fees, 
        upon successful completion of accreditation. 
           Sec. 39.  Minnesota Statutes 1998, section 119B.25, 
        subdivision 3, is amended to read: 
           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; and 
           (5) establish a fund to provide business planning 
        assistance for child care providers.  
           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. 
           Sec. 40.  Minnesota Statutes 1998, section 121A.19, is 
        amended to read: 
           121A.19 [DEVELOPMENTAL SCREENING AID.] 
           Each school year, the state must pay a district $25 $40 for 
        each child screened according to the requirements of section 
        121A.17.  If this amount of aid is insufficient, the district 
        may permanently transfer from the general fund an amount that, 
        when added to the aid, is sufficient. 
           Sec. 41.  Minnesota Statutes 1998, section 124D.13, 
        subdivision 6, is amended to read: 
           Subd. 6.  [PARTICIPANTS' FEES.] A district may charge must 
        establish a reasonable sliding fee scale but it shall waive the 
        fee for a participant unable to pay. 
           Sec. 42.  Minnesota Statutes 1998, section 124D.135, 
        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 1998 and $113.50 for 1999 fiscal years 2000 and 2001 and 
        $120 for 2002 and later fiscal years times the greater of: 
           (1) 150; or 
           (2) the number of people under five years of age residing 
        in the district on October 1 of the previous school year. 
           Sec. 43.  Minnesota Statutes 1998, section 124D.135, 
        subdivision 3, is amended to read: 
           Subd. 3.  [EARLY CHILDHOOD FAMILY EDUCATION LEVY.] For 
        fiscal years 2000 and 2001 to obtain early childhood family 
        education revenue, a district may levy an amount equal to the 
        tax rate of .45 .5282 percent times the adjusted tax capacity of 
        the district for the year preceding the year the levy is 
        certified.  Beginning with levies for fiscal year 2002, by 
        September 30 of each year, the commissioner shall establish a 
        tax rate for early childhood education revenue that raises 
        $21,027,000 for fiscal year 2002 and $22,135,000 in fiscal year 
        2003 and each subsequent year.  If the amount of the early 
        childhood family education levy would exceed the early childhood 
        family education revenue, the early childhood family education 
        levy must equal the early childhood family education revenue.  
           Sec. 44.  Minnesota Statutes 1998, section 124D.19, 
        subdivision 11, is amended to read: 
           Subd. 11.  [EXTENDED DAY SCHOOL-AGE CARE PROGRAMS.] (a) A 
        school board may offer, as part of a community education 
        program, an extended day a school-age care program for children 
        from kindergarten through grade 6 for the purpose of expanding 
        students' learning opportunities.  If the school board chooses 
        not to offer a school-age care program, it may allow an 
        appropriate insured community group, for profit entity or 
        nonprofit organization to use available school facilities for 
        the purpose of offering a school-age care program. 
           (b) A school-age care 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 kindergarten through grade 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.; and 
           (5) access to available school facilities, including the 
        gymnasium, sports equipment, computer labs, and media centers, 
        when not otherwise in use as part of the operation of the 
        school.  The school district may establish reasonable rules 
        relating to access to these facilities and may require that: 
           (i) the organization request access to the facilities and 
        prepare and maintain a schedule of proposed use; 
           (ii) the organization provide evidence of adequate 
        insurance to cover the activities to be conducted in the 
        facilities; and 
           (iii) the organization prepare and maintain a plan 
        demonstrating the adequacy and training of staff to supervise 
        the use of the facilities. 
           (b) (c) The district may charge a sliding fee based upon 
        family income for extended day school-age care programs.  The 
        district may receive money from other public or private sources 
        for the extended day school-age care program.  The board of the 
        district must develop standards for school-age child care 
        programs.  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 school-age care programs. 
           (c) (d) The district shall maintain a separate account 
        within the community services fund for all funds related to the 
        extended day school-age care program. 
           (e) A district is encouraged to coordinate the school-age 
        care program with its special education, vocational education, 
        adult basic education, early childhood family education 
        programs, kindergarten through grade 12 instruction and 
        curriculum services, youth development and youth service 
        agencies, and with related services provided by other 
        governmental agencies and nonprofit agencies. 
           Sec. 45.  Minnesota Statutes 1998, section 124D.22, is 
        amended to read: 
           124D.22 [EXTENDED DAY SCHOOL-AGE CARE REVENUE.] 
           Subdivision 1.  [ELIGIBILITY.] A district that offers an 
        extended day a school-age care program according to section 
        124D.19, subdivision 11, is eligible for extended day school-age 
        care revenue for the additional costs of providing services to 
        children with disabilities or to children experiencing family or 
        related problems of a temporary nature who participate in 
        the extended day school-age care program. 
           Subd. 2.  [EXTENDED DAY SCHOOL-AGE CARE REVENUE.] The 
        extended day school-age care revenue for an eligible district 
        equals the approved additional cost of providing services to 
        children with disabilities or children experiencing family or 
        related problems of a temporary nature who participate in 
        the extended day school-age care program.  
           Subd. 3.  [EXTENDED DAY SCHOOL-AGE CARE LEVY.] To obtain 
        extended day school-age care revenue, a school district may levy 
        an amount equal to the district's extended day school-age care 
        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 resident pupil units in 
        the district for the school year to which the levy is 
        attributable, to $3,767 $3,280.  
           Subd. 4.  [EXTENDED DAY SCHOOL-AGE CARE AID.] A district's 
        extended day school-age care aid is the difference between 
        its extended day school-age care revenue and its extended 
        day school-age care levy.  If a district does not levy the 
        entire amount permitted, extended day school-age care aid must 
        be reduced in proportion to the actual amount levied. 
           Sec. 46.  Minnesota Statutes 1998, section 124D.23, is 
        amended by adding a subdivision to read: 
           Subd. 10.  [INSURANCE.] The commissioner of children, 
        families, and learning may designate one collaborative to act as 
        a lead collaborative for purposes of obtaining liability 
        coverage for participating collaboratives. 
           Sec. 47.  Minnesota Statutes 1998, section 125A.35, 
        subdivision 5, is amended to read: 
           Subd. 5.  [INCREASED COSTS.] County boards that have 
        submitted base year 1993 expenditures as required under 
        subdivision 4 are not required to pay any increased cost over 
        the base year 1993 for early intervention services resulting 
        from implementing the early intervention system.  Increased 
        costs to county boards may be paid for with early intervention 
        flow-through service dollars. 
           Sec. 48.  Minnesota Statutes 1998, section 256.01, 
        subdivision 4, is amended to read: 
           Subd. 4.  [DUTIES AS STATE AGENCY.] The state agency shall: 
           (1) supervise the administration of assistance to dependent 
        children under Laws 1937, chapter 438, by the county agencies in 
        an integrated program with other service for dependent children 
        maintained under the direction of the state agency; 
           (2) may subpoena witnesses and administer oaths, make 
        rules, and take such action as may be necessary, or desirable 
        for carrying out the provisions of Laws 1937, chapter 438.  All 
        rules made by the state agency shall be binding on the counties 
        and shall be complied with by the respective county agencies; 
           (3) establish adequate standards for personnel employed by 
        the counties and the state agency in the administration of Laws 
        1937, chapter 438, and make the necessary rules to maintain such 
        standards; 
           (4) prescribe the form of and print and supply to the 
        county agencies blanks for applications, reports, affidavits, 
        and such other forms as it may deem necessary and advisable; 
           (5) cooperate with the federal government and its public 
        welfare agencies in any reasonable manner as may be necessary to 
        qualify for federal aid for aid to dependent children and in 
        conformity with the provisions of Laws 1937, chapter 438, 
        including the making of such reports and such forms and 
        containing such information as the Federal Social Security Board 
        may from time to time require, and comply with such provisions 
        as such board may from time to time find necessary to assure the 
        correctness and verification of such reports; 
           (6) may cooperate with other state agencies in establishing 
        reciprocal agreements in instances where a child receiving aid 
        to dependent children moves or contemplates moving into or out 
        of the state, in order that such child may continue to receive 
        supervised aid from the state moved from until the child shall 
        have resided for one year in the state moved to; 
           (7) on or before October 1 in each even-numbered year make 
        a biennial report to the governor concerning the activities of 
        the agency; and 
           (8) enter into agreements with other departments of the 
        state as necessary to meet all requirements of the federal 
        government; and 
           (9) cooperate with the commissioner of children, families, 
        and learning to enforce the requirements for program integrity 
        and fraud prevention for investigation for child care assistance 
        under chapter 119B. 
           Sec. 49.  Minnesota Statutes 1998, section 256.045, is 
        amended by adding a subdivision to read: 
           Subd. 3c.  [FINAL ORDER IN HEARING UNDER SECTION 
        119B.16.] The state human services referee shall recommend an 
        order to the commissioner of children, families, and learning in 
        an appeal under section 119B.16.  The commissioner shall affirm, 
        reverse, or modify the order.  An order issued under this 
        subdivision is conclusive on the parties unless an appeal is 
        taken under subdivision 7. 
           Sec. 50.  Minnesota Statutes 1998, section 256.045, 
        subdivision 6, is amended to read: 
           Subd. 6.  [ADDITIONAL POWERS OF THE COMMISSIONER; 
        SUBPOENAS.] (a) The commissioner of human services, or the 
        commissioner of health for matters within the commissioner's 
        jurisdiction under subdivision 3b, or the commissioner of 
        children, families, and learning for matters within the 
        commissioner's jurisdiction under subdivision 3c, may initiate a 
        review of any action or decision of a county agency and direct 
        that the matter be presented to a state human services referee 
        for a hearing held under subdivision 3, 3a, 3b, 3c, or 4a.  In 
        all matters dealing with human services committed by law to the 
        discretion of the county agency, the commissioner's judgment may 
        be substituted for that of the county agency.  The commissioner 
        may order an independent examination when appropriate. 
           (b) Any party to a hearing held pursuant to subdivision 3, 
        3a, 3b, 3c, or 4a may request that the commissioner issue a 
        subpoena to compel the attendance of witnesses and the 
        production of records at the hearing.  A local agency may 
        request that the commissioner issue a subpoena to compel the 
        release of information from third parties prior to a request for 
        a hearing under section 256.046 upon a showing of relevance to 
        such a proceeding.  The issuance, service, and enforcement of 
        subpoenas under this subdivision is governed by section 357.22 
        and the Minnesota Rules of Civil Procedure. 
           (c) The commissioner may issue a temporary order staying a 
        proposed demission by a residential facility licensed under 
        chapter 245A while an appeal by a recipient under subdivision 3 
        is pending or for the period of time necessary for the county 
        agency to implement the commissioner's order. 
           Sec. 51.  Minnesota Statutes 1998, section 256.045, 
        subdivision 7, is amended to read: 
           Subd. 7.  [JUDICIAL REVIEW.] Except for a prepaid health 
        plan, any party who is aggrieved by an order of the commissioner 
        of human services, or the commissioner of health in appeals 
        within the commissioner's jurisdiction under subdivision 3b, or 
        the commissioner of children, families, and learning for matters 
        within the commissioner's jurisdiction under subdivision 3c, may 
        appeal the order to the district court of the county responsible 
        for furnishing assistance, or, in appeals under subdivision 3b, 
        the county where the maltreatment occurred, by serving a written 
        copy of a notice of appeal upon the commissioner and any adverse 
        party of record within 30 days after the date the commissioner 
        issued the order, the amended order, or order affirming the 
        original order, and by filing the original notice and proof of 
        service with the court administrator of the district court.  
        Service may be made personally or by mail; service by mail is 
        complete upon mailing; no filing fee shall be required by the 
        court administrator in appeals taken pursuant to this 
        subdivision, with the exception of appeals taken under 
        subdivision 3b.  The commissioner may elect to become a party to 
        the proceedings in the district court.  Except for appeals under 
        subdivision 3b, any party may demand that the commissioner 
        furnish all parties to the proceedings with a copy of the 
        decision, and a transcript of any testimony, evidence, or other 
        supporting papers from the hearing held before the human 
        services referee, by serving a written demand upon the 
        commissioner within 30 days after service of the notice of 
        appeal.  Any party aggrieved by the failure of an adverse party 
        to obey an order issued by the commissioner under subdivision 5 
        may compel performance according to the order in the manner 
        prescribed in sections 586.01 to 586.12. 
           Sec. 52.  Minnesota Statutes 1998, section 256.046, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [HEARING AUTHORITY.] A local agency shall 
        must initiate an administrative fraud disqualification hearing 
        for individuals accused of wrongfully obtaining assistance or 
        intentional program violations, in lieu of a criminal action 
        when it has not been pursued, in the aid to families with 
        dependent children, MFIP-S MFIP, child care assistance programs, 
        general assistance, family general assistance, Minnesota 
        supplemental aid, medical care, or food stamp programs.  The 
        hearing is subject to the requirements of section 256.045 and 
        the requirements in Code of Federal Regulations, title 7, 
        section 273.16, for the food stamp program and title 45, section 
        235.112, as of September 30, 1995, for the cash grant and 
        medical care programs. 
           Sec. 53.  Minnesota Statutes 1998, section 256.741, 
        subdivision 4, is amended to read: 
           Subd. 4.  [EFFECT OF ASSIGNMENT.] Assignments in this 
        section take effect upon a determination that the applicant is 
        eligible for public assistance.  The amount of support assigned 
        under this subdivision may not exceed the total amount of public 
        assistance issued or the total support obligation, whichever is 
        less.  Child care support collections made according to an 
        assignment under subdivision 2, paragraph (c), must be 
        transferred deposited, subject to any limitations of federal 
        law, from by the commissioner of human services in the child 
        support collection account in the special revenue fund and 
        appropriated to the commissioner of children, families, and 
        learning and dedicated to the child care fund under chapter 119B 
        for child care assistance under section 119B.03.  These 
        collections are in addition to state and federal funds 
        appropriated to the child care fund.  
           Sec. 54.  Minnesota Statutes 1998, section 256.98, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [WRONGFULLY OBTAINING ASSISTANCE.] A person 
        who commits any of the following acts or omissions with intent 
        to defeat the purposes of sections 145.891 to 145.897, 256.12, 
        256.031 to 256.361, 256.72 to 256.871, 256.9365, 256.94 to 
        256.966, child care, MFIP-S MFIP, chapter 256B, 256D, 256J, 
        256K, or 256L, child care assistance programs, or all of these 
        sections, is guilty of theft and shall be sentenced under 
        section 609.52, subdivision 3, clauses (1) to (5): 
           (1) obtains or attempts to obtain, or aids or abets any 
        person to obtain by means of a willfully false statement or 
        representation, by intentional concealment of any material fact, 
        or by impersonation or other fraudulent device, assistance or 
        the continued receipt of assistance, to include child 
        care assistance or vouchers produced according to sections 
        145.891 to 145.897 and MinnesotaCare services according to 
        sections 256.9365, 256.94, and 256L.01 to 256L.16, to which the 
        person is not entitled or assistance greater than that to which 
        the person is entitled; 
           (2) knowingly aids or abets in buying or in any way 
        disposing of the property of a recipient or applicant of 
        assistance without the consent of the county agency; or 
           (3) obtains or attempts to obtain, alone or in collusion 
        with others, the receipt of payments to which the individual is 
        not entitled as a provider of subsidized child care, or by 
        furnishing or concurring in a willfully false claim for child 
        care assistance. 
           The continued receipt of assistance to which the person is 
        not entitled or greater than that to which the person is 
        entitled as a result of any of the acts, failure to act, or 
        concealment described in this subdivision shall be deemed to be 
        continuing offenses from the date that the first act or failure 
        to act occurred. 
           Sec. 55.  Minnesota Statutes 1998, section 256.98, 
        subdivision 7, is amended to read: 
           Subd. 7.  [DIVISION OF RECOVERED AMOUNTS.] Except for 
        recoveries under chapter 119B, if the state is responsible for 
        the recovery, the amounts recovered shall be paid to the 
        appropriate units of government as provided under section 
        256.863.  If the recovery is directly attributable to a county, 
        the county may retain one-half of the nonfederal share of any 
        recovery from a recipient or the recipient's estate. 
           This subdivision does not apply to recoveries from medical 
        providers or to recoveries involving the department of human 
        services, surveillance and utilization review division, state 
        hospital collections unit, and the benefit recoveries division. 
           Sec. 56.  Minnesota Statutes 1998, section 256.98, 
        subdivision 8, is amended to read: 
           Subd. 8.  [DISQUALIFICATION FROM PROGRAM.] (a) Any person 
        found to be guilty of wrongfully obtaining assistance by a 
        federal or state court or by an administrative hearing 
        determination, or waiver thereof, through a disqualification 
        consent agreement, or as part of any approved diversion plan 
        under section 401.065, or any court-ordered stay which carries 
        with it any probationary or other conditions, in the aid to 
        families with dependent children program, the Minnesota family 
        assistance program-statewide, the food stamp program, the 
        Minnesota family investment plan, child care program, the 
        general assistance or family general assistance program, or the 
        Minnesota supplemental aid program shall be disqualified from 
        that program.  The needs of that individual shall not be taken 
        into consideration in determining the grant level for that 
        assistance unit:  
           (1) for one year after the first offense; 
           (2) for two years after the second offense; and 
           (3) permanently after the third or subsequent offense.  
           The period of program disqualification shall begin on the 
        date stipulated on the advance notice of disqualification 
        without possibility of postponement for administrative stay or 
        administrative hearing and shall continue through completion 
        unless and until the findings upon which the sanctions were 
        imposed are reversed by a court of competent jurisdiction.  The 
        period for which sanctions are imposed is not subject to 
        review.  The sanctions provided under this subdivision are in 
        addition to, and not in substitution for, any other sanctions 
        that may be provided for by law for the offense involved.  A 
        disqualification established through hearing or waiver shall 
        result in the disqualification period beginning immediately 
        unless the person has become otherwise ineligible for 
        assistance.  If the person is ineligible for assistance, the 
        disqualification period begins when the person again meets the 
        eligibility criteria of the program from which they were 
        disqualified and makes application for that program. 
           (b) A family receiving assistance through child care 
        assistance programs under chapter 119B with a family member who 
        is found to be guilty of wrongfully obtaining child care 
        assistance by a federal court, state court, or an administrative 
        hearing determination or waiver, through a disqualification 
        consent agreement, as part of an approved diversion plan under 
        section 401.065, or a court-ordered stay with probationary or 
        other conditions, is disqualified from child care assistance 
        programs.  The disqualifications must be for periods of three 
        months, six months, and two years for the first, second, and 
        third offenses respectively.  Subsequent violations must result 
        in permanent disqualification.  During the disqualification 
        period, disqualification from any child care program must extend 
        to all child care programs and must be immediately applied. 
           Sec. 57.  Minnesota Statutes 1998, section 256.983, 
        subdivision 3, is amended to read: 
           Subd. 3.  [DEPARTMENT RESPONSIBILITIES.] The commissioner 
        shall establish training programs which shall be attended by all 
        investigative and supervisory staff of the involved county 
        agencies.  The commissioner shall also develop the necessary 
        operational guidelines, forms, and reporting mechanisms, which 
        shall be used by the involved county agencies.  An individual's 
        application or redetermination form shall for public assistance 
        benefits, including child care assistance programs and medical 
        care programs, must include an authorization for release by the 
        individual to obtain documentation for any information on that 
        form which is involved in a fraud prevention investigation.  The 
        authorization for release would be is effective until for six 
        months after public assistance benefits have ceased. 
           Sec. 58.  Minnesota Statutes 1998, section 256.983, 
        subdivision 4, is amended to read: 
           Subd. 4.  [FUNDING.] (a) County agency reimbursement shall 
        be made through the settlement provisions applicable to the aid 
        to families with dependent children program, food stamp program, 
        Minnesota family investment program-statewide, and MFIP, child 
        care assistance programs, the medical assistance program, and 
        other federal and state-funded programs. 
           (b) The commissioner will maintain program compliance if 
        for any three consecutive month period, a county agency fails to 
        comply with fraud prevention investigation program guidelines, 
        or fails to meet the cost-effectiveness standards developed by 
        the commissioner.  This result is contingent on the commissioner 
        providing written notice, including an offer of technical 
        assistance, within 30 days of the end of the third or subsequent 
        month of noncompliance.  The county agency shall be required to 
        submit a corrective action plan to the commissioner within 30 
        days of receipt of a notice of noncompliance.  Failure to submit 
        a corrective action plan or, continued deviation from standards 
        of more than ten percent after submission of a corrective action 
        plan, will result in denial of funding for each subsequent 
        month, or billing the county agency for fraud prevention 
        investigation (FPI) service provided by the commissioner, or 
        reallocation of program grant funds, or investigative resources, 
        or both, to other counties.  The denial of funding shall apply 
        to the general settlement received by the county agency on a 
        quarterly basis and shall not reduce the grant amount applicable 
        to the FPI project. 
           Sec. 59.  Minnesota Statutes 1998, section 466.01, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [MUNICIPALITY.] For the purposes of 
        sections 466.01 to 466.15, "municipality" means any city, 
        whether organized under home rule charter or otherwise, any 
        county, town, public authority, public corporation, nonprofit 
        firefighting corporation that has associated with it a relief 
        association as defined in section 424A.001, subdivision 4, 
        special district, school district, however organized, county 
        agricultural society organized pursuant to chapter 38, joint 
        powers board or organization created under section 471.59 or 
        other statute, public library, regional public library system, 
        multicounty multitype library system, the following local 
        collaboratives whose plans have been approved by the children's 
        cabinet:  family services collaborative collaboratives 
        established under section 124D.23, children's mental health 
        collaboratives established under sections 245.491 to 245.496, or 
        a collaborative established by the merger of a children's mental 
        health collaborative and a family services collaborative, other 
        political subdivision, or community action agency. 
           Sec. 60.  Laws 1997, chapter 162, article 2, section 28, 
        subdivision 6, is amended to read: 
           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; and 
           (12) transportation options for parents and their children, 
        including allowing transportation on district buses along 
        existing routes. 
           Sec. 61.  [PLAN FOR INTEGRATION.] 
           The commissioner of children, families, and learning shall 
        develop a plan for integrating child care and early childhood 
        education programs and services.  The plan must focus on 
        cost-efficient delivery of services and address central location 
        of programs, integration of programs, ease of accessibility to 
        services by families, nontraditional hours of child care, infant 
        care, sick child care, special needs child care, and legislative 
        simplification of programs.  The commissioner shall consult with 
        representatives from a variety of for-profit, nonprofit, and 
        publicly funded child care and early childhood education 
        programs and services in developing the plan.  The plan must 
        contain budget recommendations, proposed legislation in draft 
        form, and recommendations for financial incentives to reward 
        programs that provide cooperative services.  The commissioner 
        must report on the plan by January 15, 2001, to the senate and 
        house committees having jurisdiction over child care and early 
        childhood education programs. 
           Sec. 62.  [PRETAX CHILD CARE ACCOUNTS; ASSISTANCE FOR 
        EMPLOYERS.] 
           The commissioner of children, families, and learning in 
        cooperation with the commissioner of revenue must provide 
        assistance to support parental choice in child care through 
        increased availability of pretax child care accounts.  The 
        commissioner may use a portion of the available Child Care and 
        Development Fund to provide assistance under this section.  The 
        assistance must encourage employers to participate by 
        establishing accounts for their employees.  Assistance may 
        include technical assistance, workshops for employers or 
        employees on the advantages of pretax accounts, and other types 
        of promotional material or assistance.  The commissioner must 
        report to the legislature by February 1, 2000, on progress under 
        this section. 
           Sec. 63.  [PARENT FEE SCHEDULE.] 
           The commissioner of children, families, and learning shall 
        amend the parent fee schedule in Minnesota Rules, chapter 3400, 
        to do the following: 
           (1) parent fees for families with incomes between 101.01 
        percent of the federal poverty guidelines and 35 percent of the 
        state median income must equal 2.20 percent of adjusted gross 
        income for families at 35 percent of the state median income; 
           (2) parent fees for families with incomes between 35.01 
        percent state median income and 42 percent of the state median 
        income must equal 2.70 percent of adjusted gross income for 
        families at 42 percent of the state median income; 
           (3) parent fees for families with incomes between 42.01 
        percent state median income and 75 percent of the state median 
        income must begin at 3.75 percent of adjusted gross income and 
        provide for graduated movement of fee increases; and 
           (4) parent fees for families at 75 percent of state median 
        income must equal 20.0 percent of gross annual income. 
           Sec. 64.  [CHILDHOOD LEARNING MATERIALS; CONTRIBUTIONS.] 
           The commissioner of children, families, and learning shall 
        initiate contacts with businesses and other organizations to 
        encourage them to donate materials designed to help families 
        interact with their children during the first four years of life 
        in ways that will help develop the skills and abilities 
        necessary to succeed in reading and in school.  The goal of this 
        cooperative effort shall be to provide learning materials for 
        children under age five through an alliance of business, 
        nonprofit organizations, and government.  The commissioner shall 
        provide testimony on the status of this project by February 1, 
        2000, to the house and senate committees with jurisdiction over 
        family and early childhood education. 
           Sec. 65.  [ADDITIONAL EARLY CHILDHOOD FAMILY EDUCATION AID; 
        FISCAL YEAR 2000.] 
           A district that complies with Minnesota Statutes, section 
        124D.13, shall receive additional early childhood family 
        education aid for fiscal year 2000 equal to $2.46 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. 66.  [CONSOLIDATION PLAN.] 
           The commissioner of children, families, and learning shall 
        identify potential obstacles to the consolidation of MFIP, 
        transition year, and basic sliding fee child care programs into 
        one child care assistance program and shall study ways to 
        achieve this consolidation during the 2002-2003 biennium.  The 
        commissioner shall testify before relevant house and senate 
        committees on this matter during the year 2000 session. 
           Sec. 67.  [STATE MONEY TO BE USED AS MATCH FOR 
        WELFARE-TO-WORK GRANT MONEY.] 
           The commissioner of finance shall examine all relevant 
        state expenditures authorized for fiscal years 2000 and 2001 to 
        determine whether any expenditures can be used to provide a 
        state match to obtain federal Welfare-to-Work funds.  If the 
        commissioner determines that any state expenditures can be used 
        for this purpose in a manner that does not compromise the 
        state's TANF maintenance-of-effort and is consistent with the 
        state's fiscal policies and practices, the commissioner shall 
        direct the appropriate agencies to take the actions necessary to 
        track, document, and verify the designated state expenditures in 
        order to qualify for and use up to $5,000,000 in state 
        expenditures for use as a match for federal Welfare-to-Work 
        funds. 
           Sec. 68.  [TRANSFER OF PROGRAMS.] 
           The powers and duties of the department of children, 
        families, and learning with respect to drug policy and violence 
        prevention under Minnesota Statutes 1998, sections 119A.25, 
        119A.26, 119A.27, 119A.28, 119A.29, 119A.31, 119A.32, 119A.33, 
        and 119A.34, are transferred to the department of public safety 
        under Minnesota Statutes, section 15.039. 
           Sec. 69.  [INCONSISTENT AMENDMENTS.] 
           The amendments in this article to Minnesota Statutes 1998, 
        sections 119B.01, subdivisions 15 and 16; 119B.03, subdivision 
        4; 119B.05, subdivision 1; 119B.07; 119B.08, subdivision 3; 
        119B.09, subdivisions 1, 3, and 7; 119B.14; and 119B.15 prevail 
        over the amendments to the same provisions of Minnesota Statutes 
        1998 that are contained in the 1999 S. F. No. 1585, if enacted. 
           Sec. 70.  [REVISOR INSTRUCTION.] 
           (a) The revisor of statutes shall change the headnote of 
        Minnesota Statutes, section 119B.05, from "AFDC CHILD CARE 
        PROGRAM" to "MFIP CHILD CARE ASSISTANCE PROGRAM" and the 
        headnote of Minnesota Statutes, section 125A.35, from "EARLY 
        INTERVENTION FLOW-THROUGH DOLLARS" to "EARLY INTERVENTION 
        SERVICE DOLLARS." 
           (b) The revisor of statutes shall change the term "learning 
        readiness" to "school readiness" wherever it appears in 
        Minnesota Statutes and Minnesota Rules in connection with the 
        learning readiness programs regulated under Minnesota Statutes, 
        chapter 124D. 
           Sec. 71.  [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.  [SCHOOL READINESS PROGRAM REVENUE.] For revenue 
        for learning readiness programs according to Minnesota Statutes, 
        sections 124D.15 and 124D.16: 
             $10,395,000    .....     2000
             $10,395,000    .....     2001
           The 2000 appropriation includes $1,040,000 for 1999 and 
        $9,355,000 for 2000. 
           The 2001 appropriation includes $1,040,000 for 2000 and 
        $9,355,000 for 2001.  
           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 124D.135: 
             $20,485,000    .....     2000 
             $19,420,000    .....     2001
           The 2000 appropriation includes $1,390,000 for 1999 and 
        $19,095,000 for 2000.  
           The 2001 appropriation includes $2,122,000 for 2000 and 
        $17,298,000 for 2001.  
           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 121A.17 and 121A.19: 
             $2,450,000     .....     2000 
             $2,650,000     .....     2001 
           The 2000 appropriation includes $155,000 for 1999 and 
        $2,295,000 for 2000.  
           The 2001 appropriation includes $255,000 for 2000 and 
        $2,395,000 for 2001.  
           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 124D.17:  
             $475,000       .....     2000
             $475,000       .....     2001
           Any balance in the first year does not cancel but is 
        available in the second year. 
           Subd. 6.  [HEAD START PROGRAM.] For Head Start programs 
        according to Minnesota Statutes, section 119A.52: 
             $18,375,000    .....     2000
             $18,375,000    .....     2001
           $1,000,000 each year must be used for grants to local Head 
        Start agencies for full-year programming for children ages 0 to 
        3.  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.  In awarding grants, the commissioner must 
        give priority to continue existing programs.  Any additional 
        money must be distributed to local Head Start agencies to expand 
        full-year programming for children ages 0 to 3. 
           Any balance in the first year does not cancel but is 
        available in the second year. 
           Subd. 7.  [SCHOOL AGE CARE AID.] For extended day aid 
        according to Minnesota Statutes, section 124D.22: 
             $274,000       .....     2000 
             $216,000       .....     2001
           The 2000 appropriation includes $30,000 for 1999 and 
        $244,000 for 2000. 
           The 2001 appropriation includes $27,000 for 2000 and 
        $189,000 for 2001. 
           Any balance in the first year does not cancel but is 
        available in the second year. 
           Subd. 8.  [BASIC SLIDING FEE CHILD CARE.] For child care 
        assistance according to Minnesota Statutes, section 119B.03: 
             $21,621,000    .....     2000 
             $22,377,000    .....     2001
           Six months before the end of the biennium, the commissioner 
        must estimate the amount of biennial expenditures from the 
        allocation for assistance under the at-home infant care 
        program.  The commissioner must transfer the amount of any 
        projected surplus allocation to the basic sliding fee program.  
        Of the amount set aside under section 119B.061 for the at-home 
        infant care program, up to $25,000 must be used to develop and 
        provide information under section 119B.061, subdivision 5. 
           Any balance in the first year does not cancel but is 
        available in the second year. 
           The fiscal year 2002 and 2003 base is $62,199,000 each 
        year.  Of this amount, $51,999,000 is from the general fund and 
        $10,200,000 is from the federal TANF block grant. 
           Subd. 9.  [MFIP CHILD CARE.] For child care assistance 
        according to Minnesota Statutes, section 119B.05: 
             $86,318,000    .....     2000 
             $88,443,000    .....     2001
           Any balance in the first year does not cancel but is 
        available in the second year. 
           Subd. 10.  [CHILD CARE DEVELOPMENT.] For child care 
        development grants according to Minnesota Statutes, section 
        119B.21: 
             $1,865,000     .....     2000
             $1,865,000     .....     2001
           Any balance in the first year does not cancel but is 
        available in the second year. 
           Sec. 72.  [FEDERAL TANF TRANSFERS.] 
           Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
        LEARNING.] The sums indicated in this section are transferred 
        from the federal TANF fund to the child care and development 
        fund and appropriated to the department of children, families, 
        and learning for the fiscal years designated.  The commissioner 
        shall ensure that all transferred funds are expended in 
        accordance with the child care and development fund regulations 
        and that the maximum allowable transferred funds are used for 
        the programs in this section.  
           Subd. 2.  [BASIC SLIDING FEE CHILD CARE.] For child care 
        assistance according to Minnesota Statutes, section 119B.03:  
             $37,985,000    .....     2000 
             $37,986,000    .....     2001 
           Any balance the first year does not cancel but is available 
        in the second year.  The fiscal year 2002 and 2003 base is 
        $62,199,000 each year.  Of this amount, $51,999,000 is from the 
        general fund and $10,200,000 is from the federal TANF block 
        grant. 
           Subd. 3.  [TRANSITION YEAR FAMILIES.] To provide 
        uninterrupted assistance under Minnesota Statutes, section 
        119B.03, for families completing transition year child care 
        assistance in fiscal year 2000: 
             $2,500,000     .....     2000 
           This is a one-time appropriation.  Any balance the first 
        year does not cancel but is available in the second year. 
           Subd. 4.  [CHILD CARE DEVELOPMENT.] For child care 
        development activities: 
             $1,130,000     .....     2000
             $__449,000     .....     2001 
           $100,000 of the 2000 appropriation is for a grant to a 
        nonprofit corporation under Minnesota Statutes, section 119B.25, 
        for purposes that are eligible for funding under the Child Care 
        and Development Fund, including improvements to child care 
        facilities, business planning, and development of licensed child 
        care. 
           Up to $20,000 of the fiscal year 2000 appropriation is for 
        assistance to establish pretax child care accounts in section 62.
           These are one-time appropriations.  Any balance in the 
        first year does not cancel but is available in the second year. 
           Subd. 5.  [PROGRAM INTEGRITY.] For administrative costs of 
        program integrity and fraud prevention for child care assistance 
        programs under chapter 119B: 
             $175,000       .....     2000 
             $175,000       .....     2001 
           This must be a base general fund appropriation for fiscal 
        years 2002 and 2003. 
           Sec. 73.  [REPEALER.] 
           (a) Minnesota Statutes 1998, sections 119B.01, subdivision 
        15; 119B.03, subdivision 7; 119B.05, subdivisions 6 and 7; 
        119B.075; 119B.17; and 124D.14, are repealed. 
           (b) Section 63 is repealed on the effective date of the 
        specified rule changes in Minnesota Rules, chapter 3400.  
                                   ARTICLE 2 
                          COMMUNITY AND SYSTEMS CHANGE 
           Section 1.  Minnesota Statutes 1998, section 124D.20, 
        subdivision 5, is amended to read: 
           Subd. 5.  [COMMUNITY EDUCATION LEVY.] To obtain community 
        education revenue, a district may levy the amount raised by a 
        tax rate of .41 .4795 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 6. 
           Sec. 2.  Laws 1997, First Special Session chapter 4, 
        article 1, section 61, subdivision 2, is amended to read: 
           Subd. 2.  [TAX RATE ADJUSTMENT.] For taxes payable in 1998 
        and 1999, the commissioner shall adjust each tax rate 
        established under Minnesota Statutes, chapters 124 and 124A 
        120B, 122A, 123A, 123B, 124D, 125A, 126C, and 127A, by 
        multiplying the rate by the ratio of the statewide tax capacity 
        as calculated using the class rates in effect for assessment 
        year 1996 to the statewide tax capacity using the class rates 
        for that assessment year. 
           Sec. 3.  Laws 1997, First Special Session chapter 4, 
        article 1, section 61, subdivision 3, as amended by Laws 1998, 
        chapter 398, article 1, section 41, is amended to read: 
           Subd. 3.  [EQUALIZING FACTORS.] For taxes payable in 1998 
        and 1999, the commissioner shall adjust each equalizing factor 
        established using adjusted net tax capacity per actual pupil 
        unit under Minnesota Statutes, chapters 124 and 124A 120B, 122A, 
        123A, 123B, 124D, 125A, 126C, and 127A, by dividing the 
        equalizing factor by the ratio of the statewide tax capacity as 
        calculated using the class rates in effect for assessment year 
        1996 to the statewide tax capacity using the class rates for 
        that assessment year. 
           Sec. 4.  [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: 
             $4,777,000     .....     2000
             $2,535,000     .....     2001
           No new family services collaboratives shall be funded with 
        this appropriation after June 30, 1999. 
           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 124D.20: 
             $14,136,000    .....     2000 
             $14,696,000    .....     2001 
           The 2000 appropriation includes $160,000 for 1999 and 
        $13,976,000 for 2000.  
           The 2001 appropriation includes $1,552,000 for 2000 and 
        $13,144,000 for 2001.  
           Any balance in 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 124D.56: 
             $670,000       .....     2000 
             $670,000       .....     2001 
           Any balance in the first year does not cancel but is 
        available in the second year. 
           Subd. 5.  [HEARING-IMPAIRED ADULTS.] For programs for 
        hearing-impaired adults according to Minnesota Statutes, section 
        124D.57: 
             $70,000        .....     2000
             $70,000        .....     2001
           Any balance in the first year does not cancel but is 
        available in the second year. 
           Subd. 6.  [FIRST CALL MINNESOTA.] For a grant to First Call 
        Minnesota to operate a statewide system of information and 
        referral for community services: 
             $  50,000      .....     2000 
           This is a one-time appropriation. 
                                   ARTICLE 3
                          PREVENTION AND INTERVENTION
           Section 1.  [124D.221] [AFTER-SCHOOL ENRICHMENT PROGRAMS.] 
           Subdivision 1.  [ESTABLISHMENT.] A competitive statewide 
        after-school enrichment grant program is established to provide 
        implementation grants to community or nonprofit organizations, 
        to political subdivisions, or to school-based programs.  The 
        commissioner shall develop criteria for after-school enrichment 
        programs. 
           Subd. 2.  [PRIORITY NEIGHBORHOODS.] For grants in 
        Minneapolis and St. Paul, the commissioner must give priority to 
        neighborhoods in this subdivision.  In Minneapolis, priority 
        neighborhoods are Near North, Hawthorne, Sumner-Glenwood, 
        Harrison, Jordan, Powderhorn, Central, Whittier, Cleveland, 
        McKinley, Waite Park, Sheridan, Holland, and Phillips.  In St. 
        Paul, priority neighborhoods are Summit-University, Thomas-Dale, 
        North End, Payne-Phalen, Daytons Bluff, and the West Side.  
           Subd. 3.  [PROGRAM OUTCOMES.] The expected outcomes of the 
        after-school enrichment programs are to: 
           (1) increase the number of children participating in 
        adult-supervised programs in nonschool hours; 
           (2) support academic achievement, including the areas of 
        reading and math; 
           (3) reduce the amount of juvenile crime; 
           (4) increase school attendance and reduce the number of 
        school suspensions; 
           (5) increase the number of youth engaged in community 
        service and other activities designed to support character 
        improvement, strengthen families, and instill community values; 
           (6) increase skills in technology, the arts, sports, and 
        other activities; and 
           (7) increase and support the academic achievement and 
        character development of adolescent parents. 
           Subd. 4.  [PLAN.] An applicant shall develop a plan for an 
        after-school enrichment program for youth.  The plan must 
        include: 
           (1) collaboration with and leverage of existing community 
        resources that have demonstrated effectiveness; 
           (2) creative outreach to children and youth; 
           (3) involvement of local governments, including park and 
        recreation boards or schools, unless no government agency is 
        appropriate; 
           (4) community control over the design of the enrichment 
        program; and 
           (5) identification of the sources of nonpublic funding. 
           Subd. 5.  [PLAN APPROVAL; GRANTS.] An applicant shall 
        submit a plan developed under subdivision 4 to the commissioner 
        for approval.  The commissioner shall award a grant for the 
        implementation of an approved plan. 
           Sec. 2.  Minnesota Statutes 1998, section 124D.33, 
        subdivision 3, is amended to read: 
           Subd. 3.  [EXPECTED OUTCOMES.] Grant recipients must use 
        the funds for programs designed to prevent teen pregnancy and to 
        prevent crime in the long term.  Recipient programs must assist 
        youth to demonstrate the following outcomes: 
           (1) a reduction in the incidence of teen pregnancy; 
           (2) an increase in the establishment of paternity, 
        especially through the recognition of parentage process; 
           (3) an increase in the number of child support orders and 
        collection; 
           (4) an understanding of early childhood development, 
        including the importance of fathers in the lives of children; 
           (1) understand (5) an understanding of the connection 
        between sexual behavior, adolescent pregnancy, and the roles and 
        responsibilities of marriage and parenting; 
           (6) an understanding that abstinence is the only completely 
        safe means of sexual protection; and 
           (2) understand (7) an understanding of the long-term 
        responsibility of fatherhood;. 
           (3) understand the importance of fathers in the lives of 
        children; 
           (4) acquire parenting skills and knowledge of child 
        development; and 
           (5) find community support for their roles as fathers and 
        nurturers of children. 
           Sec. 3.  Minnesota Statutes 1998, section 124D.33, 
        subdivision 4, is amended to read: 
           Subd. 4.  [GRANT APPLICATIONS.] (a) An application for a 
        grant may be submitted by a youth or parenting program whose 
        purpose is to reduce teen pregnancy or teach child development 
        and parenting skills in collaboration with a district.  Each 
        grant application must include a description of the program's 
        structure and components, including collaborative and outreach 
        efforts; an implementation and evaluation plan to measure the 
        program's success; a plan for using males as instructors and 
        mentors; and a cultural diversity plan to ensure that staff or 
        teachers will reflect the cultural backgrounds of the population 
        served and that the program content is culturally sensitive. 
           (b) Grant recipients must, at a minimum, provide education 
        in responsible parenting and child development, responsible 
        decision-making related to marriage and relationships, and the 
        legal implications of paternity.  Grant recipients also must 
        provide public awareness efforts in the collaborating school 
        district.  Grant recipients may offer support groups, health and 
        nutrition education, and mentoring and peer teaching. 
           (c) A grant applicant must establish an advisory committee 
        to assist the applicant in planning and implementation of a 
        grant.  The advisory committee must include student 
        representatives, adult males from the community, representatives 
        of community organizations, teachers, parent educators, and 
        representatives of family social service agencies. 
           (d) A grant applicant must detail in its application how it 
        will evaluate the effectiveness of its program, including how it 
        will collect data to establish whether the expected outcomes 
        have been met.  The applicant must report the data it collects 
        to the commissioner semiannually. 
           Sec. 4.  Minnesota Statutes 1998, section 171.29, 
        subdivision 2, is amended to read: 
           Subd. 2.  [FEES, ALLOCATION.] (a) A person whose driver's 
        license has been revoked as provided in subdivision 1, except 
        under section 169.121 or 169.123, shall pay a $30 fee before the 
        driver's license is reinstated. 
           (b) A person whose driver's license has been revoked as 
        provided in subdivision 1 under section 169.121 or 169.123 shall 
        pay a $250 fee plus a $40 surcharge before the driver's license 
        is reinstated.  The $250 fee is to be credited as follows: 
           (1) Twenty percent shall be credited to the trunk highway 
        fund. 
           (2) Fifty-five percent shall be credited to the general 
        fund. 
           (3) Eight percent shall be credited to a separate account 
        to be known as the bureau of criminal apprehension account.  
        Money in this account may be appropriated to the commissioner of 
        public safety and the appropriated amount shall be apportioned 
        80 percent for laboratory costs and 20 percent for carrying out 
        the provisions of section 299C.065. 
           (4) Twelve percent shall be credited to a separate account 
        to be known as the alcohol-impaired driver education account.  
        Money in the account is appropriated as follows: 
           (i) The first $200,000 in a fiscal year is to the 
        commissioner of children, families, and learning for programs in 
        for elementary and secondary schools school students. 
           (ii) The remainder credited in a fiscal year is 
        appropriated to the commissioner of transportation to be spent 
        as grants to the Minnesota highway safety center at St. Cloud 
        State University for programs relating to alcohol and highway 
        safety education in elementary and secondary schools. 
           (5) Five percent shall be credited to a separate account to 
        be known as the traumatic brain injury and spinal cord injury 
        account.  The money in the account is annually appropriated to 
        the commissioner of health to be used as follows:  35 percent 
        for a contract with a qualified community-based organization to 
        provide information, resources, and support to assist persons 
        with traumatic brain injury and their families to access 
        services, and 65 percent to maintain the traumatic brain injury 
        and spinal cord injury registry created in section 144.662.  For 
        the purposes of this clause, a "qualified community-based 
        organization" is a private, not-for-profit organization of 
        consumers of traumatic brain injury services and their family 
        members.  The organization must be registered with the United 
        States Internal Revenue Service under the provisions of section 
        501(c)(3) as a tax-exempt organization and must have as its 
        purposes:  
           (i) the promotion of public, family, survivor, and 
        professional awareness of the incidence and consequences of 
        traumatic brain injury; 
           (ii) the provision of a network of support for persons with 
        traumatic brain injury, their families, and friends; 
           (iii) the development and support of programs and services 
        to prevent traumatic brain injury; 
           (iv) the establishment of education programs for persons 
        with traumatic brain injury; and 
           (v) the empowerment of persons with traumatic brain injury 
        through participation in its governance. 
           No patient's name, identifying information or identifiable 
        medical data will be disclosed to the organization without the 
        informed voluntary written consent of the patient or patient's 
        guardian, or if the patient is a minor, of the parent or 
        guardian of the patient. 
           (c) The $40 surcharge shall be credited to a separate 
        account to be known as the remote electronic alcohol monitoring 
        program account.  The commissioner shall transfer the balance of 
        this account to the commissioner of finance on a monthly basis 
        for deposit in the general fund. 
           (d) When these fees are collected by a county-operated 
        office of deputy registrar, a handling charge is imposed in the 
        amount specified under section 168.33, subdivision 7.  The 
        handling charge must be deposited in the treasury of the place 
        for which the deputy registrar was appointed and the 
        reinstatement fees and surcharge must be deposited in an 
        approved state depository as directed under section 168.33, 
        subdivision 2. 
           Sec. 5.  [APPROPRIATIONS.] 
           Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
        LEARNING.] The sums indicated in this section are appropriated 
        from the general fund, unless otherwise indicated, to the 
        department of children, families, and learning for the fiscal 
        years designated.  
           Subd. 2.  [VIOLENCE PREVENTION EDUCATION GRANTS.] For 
        violence prevention education grants according to Minnesota 
        Statutes, section 120B.23: 
             $1,450,000     .....     2000
             $1,450,000     .....     2001
           Any balance in the first year does not cancel but is 
        available in the second year. 
           Subd. 3.  [ABUSED CHILDREN.] For abused children programs 
        according to Minnesota Statutes, section 119A.21: 
             $945,000       .....     2000 
             $945,000       .....     2001 
           Any balance in the first year does not cancel but is 
        available in the second year. 
           Subd. 4.  [CHILDREN'S TRUST FUND.] For children's trust 
        fund according to Minnesota Statutes, sections 119A.12 and 
        119A.13: 
             $225,000       .....     2000
             $225,000       .....     2001
           Any balance in the first year does not cancel but is 
        available in the second year. 
           Subd. 5.  [AFTER-SCHOOL ENRICHMENT GRANTS.] For after 
        school enrichment grants according to Laws 1996, chapter 412, 
        article 4, section 30: 
             $5,260,000     .....     2000
             $5,260,000     .....     2001
           Of this amount, $200,000 each year is for programs that 
        make state armories available to communities for youth 
        recreational and enrichment activities. 
           Any balance in the first year does not cancel but is 
        available in the second year. 
           In fiscal year 2002 and 2003, the base for this program is 
        $5,510,000 from the general fund each year. 
           Subd. 6.  [ALCOHOL-IMPAIRED DRIVER.] (a) For grants with 
        funds received under Minnesota Statutes, section 171.29, 
        subdivision 2, paragraph (b), clause (4): 
             $200,000       .....     2000
             $200,000       .....     2001
           (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 $150,000 each year may be used for chemical abuse 
        prevention grants to provide a match for a community 
        collaborative project 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. 
           (d) $50,000 each year is for grants to a nonprofit 
        organization to fund culturally appropriate prevention programs 
        for American Indian youth and families and urban American Indian 
        communities. 
           In addition, $200,000 of the amount of special revenue 
        funds carried forward for fiscal year 2000 may be used in fiscal 
        years 2000 and 2001 for grants under this paragraph. 
           Subd. 7.  [FAMILY VISITATION CENTERS.] (a) For family 
        visitation centers according to Minnesota Statutes, section 
        119A.37: 
             $200,000       .....     2000
             $200,000       .....     2001
           Any balance in the first year does not cancel but is 
        available in the second year. 
           (b) An additional $96,000 in fiscal year 2000 and $96,000 
        in fiscal year 2001 is appropriated from the special revenue 
        fund under Minnesota Statutes, section 517.08, subdivision 1c, 
        for family visitation centers.  Any balance in the first year 
        does not cancel but is available for the second year. 
           Subd. 8.  [ADOLESCENT PARENTING GRANTS.] For grants to 
        reduce long-term welfare dependency and promote self-sufficiency 
        among adolescent parents under Laws 1997, chapter 162, article 
        2, section 28: 
             $1,000,000     .....     2000 
           Any balance in the first year does not cancel but is 
        available in the second year. 
           $200,000 of this appropriation is one time and is not to be 
        added to the base.  
           Subd. 9.  [MALE RESPONSIBILITY AND FATHERING GRANTS.] For 
        grants according to Minnesota Statutes, section 124D.33: 
             $250,000       .....     2000 
             $250,000       .....     2001 
           Any balance in the first year does not cancel but is 
        available in the second year. 
                                   ARTICLE 4 
                     SELF-SUFFICIENCY AND LIFELONG LEARNING 
           Section 1.  Minnesota Statutes 1998, section 16B.405, 
        subdivision 2, is amended to read: 
           Subd. 2.  [SOFTWARE SALE FUND.] (a) Except as provided in 
        paragraph (b) paragraphs (b) and (c), proceeds of the sale or 
        licensing of software products or services by the commissioner 
        must be credited to the intertechnologies revolving fund.  If a 
        state agency other than the department of administration has 
        contributed to the development of software sold or licensed 
        under this section, the commissioner may reimburse the agency by 
        discounting computer services provided to that agency. 
           (b) Proceeds of the sale or licensing of software products 
        or services developed by the pollution control agency, or custom 
        developed by a vendor for the agency, must be credited to the 
        environmental fund. 
           (c) Proceeds of the sale or licensing of software products 
        or services developed by the department of children, families, 
        and learning, or custom developed by a vendor for the agency, to 
        support the achieved savings assessment program, must be 
        appropriated to the commissioner of children, families, and 
        learning and credited to the weatherization program to support 
        weatherization activities. 
           Sec. 2.  Minnesota Statutes 1998, section 122A.26, is 
        amended by adding a subdivision to read: 
           Subd. 3.  [ENGLISH AS A SECOND LANGUAGE.] Notwithstanding 
        subdivision 2, a person who possesses a bachelor's or master's 
        degree in English as a second language, applied linguistics, or 
        bilingual education, or who possesses a related degree as 
        approved by the commissioner, shall be permitted to teach 
        English as a second language in an adult basic education program 
        that receives funding under section 124D.53.  
           Sec. 3.  Minnesota Statutes 1998, section 124D.52, is 
        amended by adding a subdivision to read: 
           Subd. 4.  [ENGLISH AS A SECOND LANGUAGE PROGRAMS.] Persons 
        may teach English as a second language classes conducted at a 
        worksite, if they meet the requirements of section 122A.19, 
        subdivision 1, clause (a), regardless of whether they are 
        licensed teachers.  Persons teaching English as a second 
        language for an approved adult basic education program must 
        possess a bachelor's or master's degree in English as a second 
        language, applied linguistics, or bilingual education, or a 
        related degree as approved by the commissioner. 
           Sec. 4.  Minnesota Statutes 1998, section 124D.52, is 
        amended by adding a subdivision to read: 
           Subd. 5.  [BASIC SERVICE LEVEL.] A district, or a 
        consortium of districts, with a program approved by the 
        commissioner under subdivision 2 must establish, in consultation 
        with the commissioner, a basic level of service for every adult 
        basic education site in the district or consortium.  The basic 
        service level must describe minimum levels of academic 
        instruction and support services to be provided at each site.  
        The program must set a basic service level that promotes 
        effective learning and student achievement with measurable 
        results.  Each district or consortium of districts must submit 
        its basic service level to the commissioner for approval. 
           Sec. 5.  Minnesota Statutes 1998, section 124D.53, 
        subdivision 3, is amended to read: 
           Subd. 3.  [AID.] Adult basic education aid for each 
        approved program equals 65 percent of the general education 
        formula allowance $2,295 for fiscal year 2000 and $2,338 for 
        fiscal year 2001 and later fiscal years times the number of 
        full-time equivalent students in its adult basic education 
        program during the first prior program year. 
           Sec. 6.  Minnesota Statutes 1998, section 124D.53, is 
        amended by adding a subdivision to read: 
           Subd. 7.  [BASIC POPULATION AID.] A district with a 
        population of less than 30,000 is eligible for basic population 
        aid if:  (1) the district levied for adult basic education for 
        revenue in fiscal year 1999; and (2) the district has a basic 
        service level approved by the commissioner under section 
        124D.52, subdivision 5, or is a member of a consortium with an 
        approved basic service level.  Basic population aid is equal to 
        the greater of $4,000 or $1 times the population of the 
        district.  District population is determined according to 
        section 275.14.  Aid under this section is in addition to aid 
        under subdivision 3 and must be used for sites that meet the 
        approved basic service level under section 124D.52, subdivision 
        5. 
           Sec. 7.  Minnesota Statutes 1998, section 124D.54, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [AID ELIGIBILITY.] For fiscal years 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 126C.05, subdivision 12.: 
           (1) for fiscal year 2000:  1.30 multiplied by the average 
        daily membership under section 126C.05, subdivision 12, 
        multiplied by (i) $1,676 or (ii) $3,251,000 divided by the state 
        total weighted average daily membership, not to exceed $2,295; 
           (2) for fiscal year 2001 and later fiscal years:  $2,338 
        multiplied by 1.30 multiplied by the average daily membership 
        under section 126C.05, subdivision 12. 
        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. 8.  Laws 1998, First Special Session chapter 1, 
        article 1, section 10, is amended to read: 
           Sec. 10.  [HOUSEHOLD ELIGIBILITY; PARTICIPATION.] 
           Subdivision 1.  [INITIAL ELIGIBILITY.] To be eligible for 
        state or TANF matching funds in the family assets for 
        independence initiative, a household must have income at or 
        below 200 185 percent of the federal poverty level and assets 
        of $25,000 $15,000 or less.  An individual who is a dependent of 
        another person for federal income tax purposes may not be a 
        separate eligible household for purposes of establishing a 
        family asset account.  An individual who is a debtor for a 
        judgment resulting from nonpayment of a court-ordered child 
        support obligation may not participate in this 
        program.  Households accessing TANF matching funds are subject 
        to the MFIP definition of household under Minnesota Statutes, 
        section 256J.08, subdivision 46.  Income and assets are 
        determined according to eligibility guidelines for the energy 
        assistance program.  
           Subd. 2.  [CONTINUED PARTICIPATION.] A participating 
        household whose income exceeds 200 185 percent of the poverty 
        level may continue to make contributions to the savings 
        account.  The amount of any contributions made during the time 
        when a participating household's income is greater than 200 185 
        percent of the poverty level is not eligible for the match under 
        section 11. 
           Subd. 3.  [FAMILY PARTICIPATION.] Each participating 
        household must sign a family asset agreement that includes the 
        amount of scheduled deposits into its savings account, the 
        proposed use, and the proposed savings goal.  A participating 
        household must agree to complete an economic literacy training 
        program.  
           Participating households may only deposit money that is 
        derived from household earned income or from state and federal 
        income tax credits.  
           Sec. 9.  Laws 1998, First Special Session chapter 1, 
        article 1, section 11, is amended to read: 
           Sec. 11.  [WITHDRAWAL; MATCHING; PERMISSIBLE USES.] 
           Subdivision 1.  [WITHDRAWAL OF FUNDS.] To receive a match, 
        a participating household must transfer funds withdrawn from a 
        family asset account to a fiduciary organization its matching 
        fund custodial account held by the fiscal agent, according to 
        the family asset agreement.  The fiduciary organization must 
        determine if the match request is for a permissible use 
        consistent with the household's family asset agreement. 
           A fiduciary organization The fiscal agent must ensure the 
        household's custodial account contains the applicable matching 
        funds to match the balance in the household's account, including 
        interest, on at least a quarterly basis and at the time of an 
        approved withdrawal.  Matches must be provided as follows: 
           (1) from state grant and TANF funds a matching contribution 
        of $2 $1.50 for every $1 of funds withdrawn from the family 
        asset account equal to the lesser of $720 per year or a $3,000 
        lifetime limit; and 
           (2) from nonstate funds, a matching contribution of no less 
        than $2 $1.50 for every $1 of funds withdrawn from the family 
        asset account equal to the lesser of $720 per year or a $3,000 
        lifetime limit. 
           Subd. 2.  [VENDOR PAYMENT OF WITHDRAWN FUNDS.] Upon receipt 
        of withdrawn transferred custodial account funds, the fiduciary 
        organization must make a direct payment to the vendor of the 
        goods or services for the permissible use. 
           Sec. 10.  Laws 1998, First Special Session chapter 1, 
        article 1, section 12, is amended to read: 
           Sec. 12.  [PROGRAM REPORTING.] 
           The fiscal agent on behalf of each fiduciary organization 
        operating participating in a family assets for independence 
        initiative must annually report quarterly to the commissioner of 
        human services and to the commissioner of children, families, 
        and learning identifying the participants with accounts, the 
        number of accounts, the amount of savings and matches for 
        each participant's account, the uses of the account, and the 
        number of businesses, homes, and educational services paid for 
        with money from the account, as well as other information that 
        may be required for the state to operate commissioner to 
        administer the program effectively and meet federal TANF 
        reporting requirements. 
           Sec. 11.  [ADULT BASIC EDUCATION SERVICE DELIVERY STUDY 
        GROUP.] 
           (a) The commissioner of children, families, and learning 
        shall establish a task force to review, evaluate, and make 
        legislative recommendations by January 15, 2000, on improving 
        the delivery of adult basic education (ABE) services.  The study 
        group must make recommendation on ways to: 
           (1) improve the efficiency and effectiveness of ABE service 
        delivery of over the next five years; and 
           (2) increase the number of adult learners served and the 
        proportion of need for adult education met by ABE programs. 
           (b) The group should, at a minimum, consider the following 
        factors: 
           (1) changes in the need for ABE services due to 
        socioeconomic trends, welfare reform, and labor market factors; 
           (2) evolving instructional technologies, including distance 
        learning and the integration of computers and other technologies 
        into ABE programs; 
           (3) the organization, formation, and functioning of ABE 
        service delivery through regional consortiums and school 
        district programs; 
           (4) accountability in the delivery of ABE services to meet 
        defined learner outcomes; 
           (5) funding to promote and recognize educational outcomes 
        in ABE programs; and 
           (6) defining and maintaining viable ABE program delivery 
        that meets the needs of adult learners throughout Minnesota. 
           (c) Members of the study group must include members of the 
        house and senate committees that fund adult basic education 
        programs; representatives of the department of children, 
        families, and learning; and representatives of ABE programs, 
        including school districts, community education, nonprofit 
        organizations, correctional programs, and other organizations 
        that provide or support ABE education.  The group must include 
        rural, urban, and suburban members. 
           Sec. 12.  [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: 
             $8,514,000    .....     2000
             $8,514,000    .....     2001
           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 
        119A.43: 
             $2,075,000     .....     2000
             $2,075,000     .....     2001
           Of this amount, $50,000 each year is for transitional 
        housing services for homeless veterans and $50,000 each year is 
        for a grant to the Kids Capacity Initiative program in Hennepin 
        county.* (The preceding text beginning "and $50,000 each year" 
        was vetoed by the governor.) 
           Of this amount, $25,000 for the biennium is for a grant to 
        Perspective, Inc. to provide transitional housing services.  One 
        or more nonprofit organizations must provide an equal amount of 
        matching funds.* (The preceding text beginning "Of this amount, 
        $25,000" was vetoed by the governor.) 
           $25,000 each year is for a grant to the city of St. Louis 
        Park for the Meadowbrook Collaborative Housing Project to 
        enhance youth outreach services and to provide educational and 
        recreational programming for at-risk youth.  The collaborative 
        must include a cross section of public and private sector 
        community representatives.* (The preceding text beginning 
        "$25,000" was vetoed by the governor.) 
           Any balance in the first year does not cancel but is 
        available in the second year. 
           Subd. 4.  [FOODSHELF PROGRAMS.] For foodshelf programs 
        according to Minnesota Statutes, section 119A.44: 
             $1,278,000     .....     2000
             $1,278,000     .....     2001
           Any balance in the first year does not cancel but is 
        available in the second year. 
           Subd. 5.  [ADULT BASIC EDUCATION AID.] For adult basic 
        education aid according to Minnesota Statutes, section 124D.52, 
        in fiscal year 2000 and Minnesota Statutes, section 124D.53 in 
        fiscal year 2001:  
             $20,132,000    .....     2000
             $22,477,000    .....     2001 
           The 2000 appropriation includes $1,227,000 for 1999 and 
        $18,905,000 for 2000.  
           The 2001 appropriation includes $2,101,000 for 2000 and 
        $20,376,000 for 2001.  
           Subd. 6.  [ADULT BASIC EDUCATION BASIC POPULATION AID.] For 
        basic population aid for eligible districts under section 7: 
             $1,960,000     .....     2000 
           Notwithstanding Minnesota Statutes, section 127A.45, 
        subdivision 12, 100 percent of this appropriation is for fiscal 
        year 2000. 
           Any balance in the first year does not cancel but is 
        available in the second year.  This is a one-time appropriation. 
           Subd. 7.  [ADULT GRADUATION AID.] For adult graduation aid 
        according to Minnesota Statutes, section 124D.54: 
             $3,184,000     .....     2000
             $4,732,000     .....     2001
           The 2000 appropriation includes $258,000 for 1999 and 
        $2,926,000 for 2000.  
           The 2001 appropriation includes $325,000 for 2000 and 
        $4,407,000 for 2001.  
           Subd. 8.  [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       .....     2000
             $125,000       .....     2001
           Any balance in the first year does not cancel but is 
        available in the second year. 
           Subd. 9.  [FAMILY ASSETS FOR INDEPENDENCE.] For a grant to 
        the Ramsey Action Program to provide matching grants to 
        fiduciary organizations under Laws 1998, First Special Session 
        chapter 1, article 1, sections 6 to 12: 
             $500,000       .....     2000 
           Any balance in the first year does not cancel but is 
        available in the second year. 
           Subd. 10.  [LEAD HAZARD REDUCTION PROJECT.] For a grant to 
        a nonprofit organization currently operating the CLEARCorps lead 
        hazard reduction project: 
             $500,000       .....     2000 
           $300,000 of this is a one-time appropriation.  Any balance 
        in the first year does not cancel but is available in the second 
        year. 
           The grant must be used to continue the lead hazard 
        reduction project and reduce and prevent lead poisoning in 
        Minnesota's children.  The grant may be used as a match for 
        federal funds to reduce lead hazards. 
           Subd. 11.  [GED ON TELEVISION.] For a grant to a public 
        television station that serves rural areas of Minnesota: 
             $75,000        .....     2000 
             $75,000        .....     2001
           The grant must be used to provide GED programming to aid 
        immigrants and others who lack a high school diploma to obtain a 
        GED.  Any balance in the first year does not cancel but is 
        available in the second year.  This is a one-time appropriation.*
        (The preceding subdivision was vetoed by the governor.) 
           Subd. 12.  [EMERGENCY SERVICES.] For emergency services 
        grants according to Laws 1997, chapter 162, article 3, section 7:
             $350,000       .....     2000
             $350,000       .....     2001
           Any balance in the first year does not cancel but is 
        available in the second year.  
           Sec. 13.  [REPEALER.] 
           Minnesota Statutes 1998, section 124D.53, subdivision 6, is 
        repealed. 
                                   ARTICLE 5
                         RESOURCE AND REFERRAL PROGRAMS
           Section 1.  Minnesota Statutes 1998, section 119B.01, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [SCOPE.] For the purposes of sections 
        119B.01 to 119B.19 this chapter, the following terms have the 
        meanings given. 
           Sec. 2.  Minnesota Statutes 1998, section 119B.01, is 
        amended by adding a subdivision to read: 
           Subd. 18.  [LEGAL NONLICENSED CHILD CARE PROVIDER.] "Legal 
        nonlicensed child care provider" means a child care provider who 
        is excluded from licensing requirements under section 245A.03, 
        subdivision 2. 
           Sec. 3.  Minnesota Statutes 1998, section 119B.19, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [AUTHORITY DISTRIBUTION OF FUNDS FOR 
        OPERATION OF CHILD CARE RESOURCE AND REFERRAL PROGRAMS.] The 
        commissioner of children, families, and learning may make grants 
        shall distribute funds to public or private nonprofit 
        agencies organizations for the planning, establishment, 
        expansion, improvement, or operation of child care resource and 
        referral programs and child care services according to the 
        provisions of under this section and may make grants to county 
        boards to carry out the purposes of sections 119B.19 to 
        119B.21.  The commissioner must adopt rules for programs under 
        this section and sections 119B.20 and 119B.21.  The commissioner 
        must develop a process to fund organizations to operate child 
        care resource and referral programs that includes application 
        forms, timelines, and standards for renewal. 
           Sec. 4.  Minnesota Statutes 1998, section 119B.19, is 
        amended by adding a subdivision to read: 
           Subd. 1a.  [DESIGNATION OF ORGANIZATIONS.] The commissioner 
        shall designate an organization to administer a child care 
        resource and referral program to serve a region. 
           Sec. 5.  Minnesota Statutes 1998, section 119B.19, is 
        amended by adding a subdivision to read: 
           Subd. 6.  [BASIS FOR DISTRIBUTING FUNDS.] (a) The 
        commissioner shall distribute funds for the administration of 
        child care resource and referral programs based on the following 
        factors for each region:  
           (1) the region served by the program; 
           (2) the number of children under the age of 13 years 
        needing child care; 
           (3) the ratio of children under the age of 13 years needing 
        child care to the number of licensed spaces; 
           (4) the number of licensed child care providers and 
        school-age care programs; and 
           (5) other related factors determined by the commissioner. 
           (b) The commissioner may provide ongoing funding to a 
        designated organization for a child care resource and referral 
        program that continues to meet state standards. 
           Sec. 6.  Minnesota Statutes 1998, section 119B.19, is 
        amended by adding a subdivision to read: 
           Subd. 6a.  [LOCAL MATCH REQUIREMENT.] A local match of 25 
        percent is required. 
           Sec. 7.  Minnesota Statutes 1998, section 119B.19, is 
        amended by adding a subdivision to read: 
           Subd. 7.  [CHILD CARE RESOURCE AND REFERRAL 
        PROGRAMS.] Within each region, a child care resource and 
        referral program must: 
           (1) maintain one database of all existing child care 
        resources and services and one database of family referrals; 
           (2) provide a child care referral service for families; 
           (3) develop resources to meet the child care service needs 
        of families; 
           (4) increase the capacity to provide culturally responsive 
        child care services; 
           (5) coordinate professional development opportunities for 
        child care and school-age care providers; 
           (6) administer and award child care services grants; 
           (7) administer and provide loans for child development 
        education and training; and 
           (8) cooperate with the Minnesota Child Care Resource and 
        Referral Network and its member programs to develop effective 
        child care services and child care resources. 
           Sec. 8.  Minnesota Statutes 1998, section 119B.20, 
        subdivision 7, is amended to read: 
           Subd. 7.  [FACILITY IMPROVEMENT EXPENSES.] "Facility 
        improvement expenses" means funds for building the cost of 
        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 a local district school board of education. 
           Sec. 9.  Minnesota Statutes 1998, section 119B.20, 
        subdivision 8, is amended to read: 
           Subd. 8.  [INTERIM FINANCING.] "Interim financing" means 
        funds to carry out such funding for up to 18 months: 
           (1) for activities as that are necessary for family day 
        care homes, group family day care homes, and child care centers 
        to receive and maintain state child care licensing,; 
           (2) to expand an existing child care program or to improve 
        program quality,; and 
           (3) to provide operating funds operate for a period of six 
        consecutive months after a family day care home, group family 
        day care home, or child care center facility becomes licensed or 
        satisfies standards of the state board of education.  Interim 
        financing may not exceed a period of 18 months. 
           Sec. 10.  Minnesota Statutes 1998, section 119B.20, 
        subdivision 12, is amended to read: 
           Subd. 12.  [TRAINING PROGRAM.] "Training program" means 
        child development courses offered by an accredited 
        post-secondary institution or similar training approved by a 
        county board or the department of children, families, and 
        learning commissioner.  To qualify as a training program under 
        this section, a course of study must teach A training program 
        must be a course of study that teaches specific skills that to 
        meet licensing requirements or requirements of the state board 
        of education. 
           Sec. 11.  Minnesota Statutes 1998, section 119B.20, is 
        amended by adding a subdivision to read: 
           Subd. 13.  [REGION.] "Region" means a region designated by 
        the governor under section 462.385. 
           Sec. 12.  Minnesota Statutes 1998, section 119B.21, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [GRANTS ESTABLISHED DISTRIBUTION OF GRANT 
        FUNDS.] (a) 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, staff training expenses, and grants for child care 
        resource and referral programs.  Child care service development 
        grants may include family child care technical assistance awards 
        up to $1,000. distribute funds to the child care resource and 
        referral programs designated under section 119B.19, subdivision 
        1a, for child care services grants under subdivision 5 and 
        family child care technical assistance grants under subdivision 
        10. 
           (b) Up to ten percent of funds appropriated for grants 
        under this section may be used by the commissioner for statewide 
        child care development initiatives, training initiatives, 
        collaboration programs, and research and data collection.  The 
        commissioner shall develop eligibility guidelines and 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 process to distribute funds under this paragraph.  
        Child care resource and referral programs may apply for funding 
        under this paragraph.  
           Sec. 13.  Minnesota Statutes 1998, section 119B.21, 
        subdivision 2, is amended to read: 
           Subd. 2.  [DISTRIBUTION OF BASIS FOR DISTRIBUTING GRANT 
        FUNDS.] (a) At least 90 percent of funds appropriated for grants 
        under this section may be distributed by the commissioner shall 
        allocate grant money appropriated to child care resource and 
        referral programs under section 119B.19, subdivision 1a, for 
        child care service development among the development regions 
        designated by the governor under section 462.385, 
        considering services grants and family child care technical 
        assistance grants based on the following factors for each 
        economic development region: 
           (1) the number of children under 13 years of age needing 
        child care in the service area region; 
           (2) the geographic area region served by the agency 
        program; 
           (3) the ratio of children under 13 years of age needing 
        child care to the number of licensed spaces in the service area 
        region; 
           (4) the number of licensed child care providers and 
        extended day school-age child care programs in the service area 
        region; and 
           (5) other related factors determined by the commissioner. 
           (b) Out of the amount allocated for each economic 
        development region, the commissioner shall Child care resource 
        and referral programs must award child care services grants and 
        child care technical assistance grants based on the 
        recommendation of the child care regional advisory proposal 
        review committees under subdivision 3.  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.  
           (c) Any funds unobligated may be used by the commissioner 
        to award grants to proposals that received funding 
        recommendations by the regional advisory committees but were not 
        awarded due to insufficient funds.  
           (d) The commissioner may allocate grants distribute funds 
        under this section for a two-year period and may carry forward 
        funds from the first year as necessary. 
           Sec. 14.  Minnesota Statutes 1998, section 119B.21, 
        subdivision 3, is amended to read: 
           Subd. 3.  [CHILD CARE REGIONAL ADVISORY PROPOSAL REVIEW 
        COMMITTEES.] (a) Child care regional advisory proposal review 
        committees shall must establish regional priorities and review 
        and make recommendations to the commissioner on applications for 
        family child care technical assistance awards grants and service 
        development child care services grants under this section.  The 
        commissioner and make funding recommendations to the child care 
        resource and referral program designated under section 119B.19, 
        subdivision 1a.  Within each region, the committee must allocate 
        available funding between child care services grants and child 
        care technical assistance grants.  The committee must also 
        allocate funding for child care services grants for facility 
        financing purposes and provider training purposes.  The child 
        care regional proposal review committees must complete their 
        reviews and forward their recommendations to the child care 
        resource and referral program by the date specified by the 
        commissioner.  
           (b) A child care resource and referral program shall 
        appoint establish a process to select members of the child care 
        regional advisory committees in each governor's economic 
        development region proposal review committee.  People appointed 
        under this subdivision Members must represent the following 
        constituent groups:  family child care providers, group child 
        care center providers, parent users school-age care providers, 
        parents who use child care services, 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 proposal review committee 
        with a direct financial interest in a pending grant proposal may 
        not provide a recommendation or participate in the ranking of 
        that grant proposal. 
           (c) The child care resource and referral program may 
        reimburse 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.  The program may also pay a 
        stipend to parent representatives for participating in up to six 
        meetings per year. 
           Sec. 15.  Minnesota Statutes 1998, section 119B.21, 
        subdivision 5, is amended to read: 
           Subd. 5.  [PURPOSES FOR WHICH A CHILD CARE SERVICES GRANT 
        MAY BE AWARDED SERVICES GRANTS.] The commissioner A child care 
        resource and referral program designated under section 119B.19, 
        subdivision 1a, may award child care services grants for: 
           (1) child care service development grants for the following 
        purposes: 
           (i) for creating new licensed day child care facilities and 
        expanding existing facilities, including, but not limited to, 
        supplies, equipment, facility renovation, and remodeling; 
           (ii) for (2) improving licensed day child care facility 
        programs, including, but not limited to, staff specialists, 
        staff training, supplies, equipment, and facility renovation and 
        remodeling; 
           (iii) for supportive child (3) staff training and 
        development services including, but not limited to, in-service 
        training, curriculum development, accreditation, certification, 
        consulting specialist, resource centers, and program and 
        resource materials; 
           (iv) for carrying out programs including, but not limited 
        to, staff, supplies, equipment, facility renovation, and 
        training; 
           (v) for (4) interim financing; 
           (vi) family child care technical assistance awards; and 
           (vii) for (5) 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 to create, enhance, and 
        maintain business management systems; 
           (6) emergency assistance for child care programs; 
           (7) new programs or projects for the creation, expansion, 
        or improvement of programs that serve ethnic immigrant and 
        refugee communities; and 
           (8) targeted recruitment initiatives to expand and build 
        the capacity of the child care system and to improve the quality 
        of care provided by legal nonlicensed child care providers. 
           Sec. 16.  Minnesota Statutes 1998, section 119B.21, 
        subdivision 8, is amended to read: 
           Subd. 8.  [ELIGIBLE GRANT RECIPIENTS.] Eligible recipients 
        of A child care resource and referral program designated under 
        section 119B.19, subdivision 1a, may award child care services 
        grants are to: 
           (1) licensed providers of child care, or those; 
           (2) providers in the process of being licensed, resource 
        and referral programs, or; 
           (3) corporations or public agencies, that develop or 
        provide child care services; 
           (4) school-age care programs; or 
           (5) any combination thereof of clauses (1) to (4). 
        Unlicensed providers are only eligible for grants under 
        subdivision 5, clause (7).  
           Sec. 17.  Minnesota Statutes 1998, section 119B.21, 
        subdivision 9, is amended to read: 
           Subd. 9.  [GRANT MATCH REQUIREMENTS.] A recipient of a 
        child care grants services grant for facility improvements, 
        interim financing, resource and referral, and or staff training 
        and development require must provide a 25 percent local match by 
        the grant applicant.  A local match is not required for a family 
        child care technical assistance award. 
           Sec. 18.  Minnesota Statutes 1998, section 119B.21, 
        subdivision 10, is amended to read: 
           Subd. 10.  [FAMILY CHILD CARE TECHNICAL ASSISTANCE 
        AWARDS GRANTS.] (a) A child care resource and referral 
        organization designated under section 119B.19, subdivision 1a, 
        may award technical assistance awards for child care service 
        development must be used by the family child care provider 
        grantee grants of up to $1,000.  These grants may be used for: 
           (1) facility improvements, including, but not limited to, 
        improvements to meet licensing requirements,; 
           (2) improvements to expand the a child care facility, or 
        program; 
           (3) toys and equipment,; 
           (4) technology and software to create, enhance, and 
        maintain business management systems; 
           (5) start-up costs, interim financing, or; 
           (6) staff training and development; and 
           (7) other uses approved by the commissioner.  
           (b) A child care resource and referral program may award 
        family child care technical assistance grants to: 
           (1) licensed family child care providers; or 
           (2) child care providers in the process of becoming 
        licensed. 
           (c) A local match is not required for a family child care 
        technical assistance grant. 
           Sec. 19.  Minnesota Statutes 1998, section 119B.21, 
        subdivision 11, is amended to read: 
           Subd. 11.  [STATEWIDE ADVISORY TASK FORCE.] The 
        commissioner may convene a statewide advisory task force which 
        shall to advise the commissioner on statewide grants or other 
        child care issues.  The following constituent groups must be 
        represented:  family child care providers, child care center 
        programs, school-age care providers, parent users parents who 
        use child care services, 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 attending 
        task force meetings of the task force.  The commissioner may 
        also pay a stipend to parent representatives for participating 
        in task force meetings.  
           Sec. 20.  Minnesota Statutes 1998, section 119B.23, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [AUTHORITY.] In addition to the 
        commissioner's authority to make child care services grants, The 
        county board is authorized to provide child care services, or to 
        make grants from the community social service fund, special tax 
        revenue, or its general fund, or other sources to any 
        municipality, or corporation, or combination thereof, for the 
        cost of providing technical assistance and or child care 
        services.  The county board is also authorized to contract for 
        services with any licensed day child care facility, as the board 
        deems necessary or proper to carry out the purposes of this 
        section. 
           The county board may also make grants to or contract with 
        any municipality, licensed child care facility, or resource and 
        referral program organization designated under section 119B.19, 
        subdivision 1a, or corporation or combination thereof, for any 
        of the following purposes: 
           (1) creating new licensed day child care facilities and 
        expanding existing facilities including, but not limited to, 
        supplies, equipment, and facility renovation and remodeling; 
           (2) improving licensed day child care facility programs, 
        including, but not limited to, staff specialists, staff 
        training, supplies, equipment, and facility renovation and 
        remodeling.  In awarding grants for training, counties must 
        give, with priority to for training grants for child care 
        workers caring for infants, toddlers, sick children, children in 
        low-income families, and children with special needs; 
           (3) providing supportive child development services, 
        including, but not limited to, in-service training, curriculum 
        development, consulting specialists, resource centers, and 
        program and resource materials; 
           (4) carrying out programs, including, but not limited to, 
        staff, supplies, equipment, facility renovation, and training; 
           (5) providing interim financing; and or 
           (6) carrying out the resource and referral program services 
        identified in section 119B.19, subdivision 3 7. 
           Sec. 21.  [REVISOR INSTRUCTION.] 
           The revisor of statutes shall renumber each section of 
        Minnesota Statutes listed in column A with the number listed in 
        column B.  The revisor shall also make necessary cross-reference 
        changes consistent with the renumbering.  
                          A                           B
                   119B.01, subd. 1            119B.011, subd. 1
                   119B.01, subd. 2            119B.011, subd. 3
                   119B.01, subd. 3            119B.011, subd. 7
                   119B.01, subd. 4            119B.011, subd. 4
                   119B.01, subd. 5            119B.011, subd. 8
                   119B.01, subd. 6            119B.011, subd. 5
                   119B.01, subd. 7            119B.011, subd. 9
                   119B.01, subd. 7a           119B.011, subd. 10
                   119B.01, subd. 8            119B.011, subd. 11
                   119B.01, subd. 9            119B.011, subd. 12
                   119B.01, subd. 10           119B.011, subd. 13
                   119B.01, subd. 11           119B.011, subd. 14
                   119B.01, subd. 12           119B.011, subd. 17
                   119B.01, subd. 12a          119B.011, subd. 18
                   119B.01, subd. 13           119B.011, subd. 20
                   119B.01, subd. 14           119B.011, subd. 19
                   119B.01, subd. 15           119B.011, subd. 2
                   119B.01, subd. 16           119B.011, subd. 24
                   119B.01, subd. 17           119B.011, subd. 6
                   119B.01, subd. 18           119B.011, subd. 16
                   119B.18, subd. 3            119B.211
                   119B.20, subd. 7            119B.189, subd. 1
                   119B.20, subd. 8            119B.189, subd. 2
                   119B.20, subd. 12           119B.189, subd. 4
                   119B.20, subd. 13           119B.201, subd. 3
                   119B.21, subd. 2,           119B.21, subd. 1,
                           para. (a)                   para. (c)
                   119B.21, subd. 2,           119B.21, subd. 1,
                           para. (b)                   para. (d)
                   119B.21, subd. 2,           119B.21, subd. 1,
                           para. (d)                   para. (e)
                   119B.21, subd. 5            119B.21, subd. 5,
                                                       para. (a)
                   119B.21, subd. 8            119B.21, subd. 5,
                                                       para. (b)
                   119B.21, subd. 9            119B.21, subd. 5,
                                                       para. (c)
           Sec. 22.  [REPEALER.] 
           Minnesota Statutes 1998, sections 119B.18, subdivisions 1 
        and 2; 119B.19, subdivisions 3, 4, and 5; 119B.20, subdivisions 
        1, 2, 3, 4, 5, 6, 9, 10, and 11; 119B.21, subdivisions 4, 6, and 
        12; and 119B.22, are repealed. 
           Presented to the governor May 21, 1999 
           Signed by the governor May 25, 1999, 3:45 p.m.