1.1                          A bill for an act 
  1.2             relating to family and early childhood education; 
  1.3             modifying school readiness aid; appropriating money; 
  1.4             amending Minnesota Statutes 2000, section 124D.16, 
  1.5             subdivisions 2, 3, and by adding subdivisions; 
  1.6             repealing Minnesota Statutes 2000, section 124D.16, 
  1.7             subdivision 4.  
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9      Section 1.  Minnesota Statutes 2000, section 124D.16, 
  1.10  subdivision 2, is amended to read: 
  1.11     Subd. 2.  [AMOUNT OF AID.] (a) A district is eligible to 
  1.12  receive school readiness aid if the program plan as required by 
  1.13  subdivision 1 has been approved by the commissioner. 
  1.14     (b) For fiscal year ~~1998~~ 2002 and thereafter, a district 
  1.15  must receive school readiness aid equal to: 
  1.16     (1) the number of eligible four-year old children in the 
  1.17  district on October 1 of the prior school year times the ratio 
  1.18  of 50 percent of the total school readiness aid for that year to 
  1.19  the total number of eligible four-year old children reported to 
  1.20  the commissioner for ~~that~~ the prior school year; plus 
  1.21     (2) the number of pupils enrolled in the school district 
  1.22  from families eligible for the free or reduced school lunch 
  1.23  program for the second prior year times the ratio of 50 percent 
  1.24  of the total school readiness aid for that year to the total 
  1.25  number of pupils in the state from families eligible for the 
  1.26  free or reduced school lunch program for the second prior school 
  2.1   year. 
  2.2      Sec. 2.  Minnesota Statutes 2000, section 124D.16, is 
  2.3   amended by adding a subdivision to read: 
  2.4      Subd. 2a.  [AID GUARANTEE.] Notwithstanding subdivision 2, 
  2.5   for fiscal year 2002, any school readiness program qualifying 
  2.6   for aid under this section that receives less aid than in fiscal 
  2.7   year 2001 must receive additional aid equal to the difference 
  2.8   between the aid paid under section 124D.16, subdivision 2, 
  2.9   paragraph (b), clause (2), for fiscal year 2001 and the amount 
  2.10  of aid it is eligible for in fiscal year 2002 under section 
  2.11  124D.16, subdivision 2, paragraph (b), clause (2).  The aid 
  2.12  guarantee applies only to the aid for the free or reduced school 
  2.13  lunch program in section 124D.16, subdivision 2, paragraph (b), 
  2.14  clause (2).  
  2.15     Sec. 3.  Minnesota Statutes 2000, section 124D.16, 
  2.16  subdivision 3, is amended to read: 
  2.17     Subd. 3.  [USE OF AID.] School readiness aid ~~shall~~ must be 
  2.18  used only to provide a school readiness program and may be used 
  2.19  to provide transportation.  Aid used for instruction must be 
  2.20  targeted to children identified under section 124D.15, 
  2.21  subdivision 8.  Not more than five percent of the aid may be 
  2.22  used for the cost of administering the program.  Aid must be 
  2.23  used to supplement and not supplant local, state, and federal 
  2.24  funding.  Aid may not be used for instruction and services 
  2.25  required under sections 125A.03 to 125A.24 and 125A.65. Aid may 
  2.26  not be used to purchase land or construct buildings, but may be 
  2.27  used to lease or renovate existing buildings. 
  2.28     Sec. 4.  Minnesota Statutes 2000, section 124D.16, is 
  2.29  amended by adding a subdivision to read: 
  2.30     Subd. 5.  [RESERVE ACCOUNT.] School readiness revenue, 
  2.31  which includes aids, fees, grants, and all other revenues 
  2.32  received by the district school readiness programs, must be 
  2.33  maintained in a reserve account within the community service 
  2.34  fund.  
  2.35     Sec. 5.  [APPROPRIATION.] 
  2.36     $10,845,000 in fiscal year 2002 and $10,895,000 in fiscal 
  3.1   year 2003 is appropriated from the general fund to the 
  3.2   commissioner of children, families, and learning for the 
  3.3   purposes of school readiness aid under sections 124D.15 and 
  3.4   124D.16.  The 2002 appropriation includes $1,040,000 for 2001 
  3.5   and $9,805,500 for 2002.  The 2003 appropriation includes 
  3.6   $1,089,500 for 2002 and $9,805,500 for 2003. 
  3.7      Sec. 6.  [REPEALER.] 
  3.8      Minnesota Statutes 2000, section 124D.16, subdivision 4, is 
  3.9   repealed. 
  3.10     Sec. 7.  [EFFECTIVE DATE.] 
  3.11     Sections 1 to 5 are effective July 1, 2001.