1.1                          A bill for an act 
  1.2             relating to early childhood and family education; 
  1.3             providing for children and family support, prevention, 
  1.4             and self-sufficiency and lifelong learning programs; 
  1.5             appropriating money and reducing earlier 
  1.6             appropriations; amending Minnesota Statutes 2000, 
  1.7             sections 124D.221, subdivision 2; 124D.52, subdivision 
  1.8             3; 124D.531, subdivision 4; Minnesota Statutes 2001 
  1.9             Supplement, sections 124D.135, subdivision 8; 
  1.10            124D.531, subdivision 1; Laws 2001, First Special 
  1.11            Session chapter 3, article 1, section 17, subdivisions 
  1.12            3, as amended, 8, as amended, 9, as amended, 11, as 
  1.13            amended; Laws 2001, First Special Session chapter 3, 
  1.14            article 1, section 18, as amended; Laws 2001, First 
  1.15            Special Session chapter 3, article 2, section 15, 
  1.16            subdivision 3, as amended, 10; Laws 2001, First 
  1.17            Special Session chapter 3, article 3, section 9, 
  1.18            subdivisions 5, 7. 
  1.19  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.20                             ARTICLE 1 
  1.21                CHILDREN AND FAMILY SUPPORT PROGRAMS 
  1.22     Section 1.  Minnesota Statutes 2001 Supplement, section 
  1.23  124D.135, subdivision 8, is amended to read: 
  1.24     Subd. 8.  [RESERVE ACCOUNT LIMIT.] (a) Under this section, 
  1.25  the average balance, during the most recent three-year period in 
  1.26  a district's early childhood family education reserve account on 
  1.27  June 30 of each year, adjusted for any prior reductions under 
  1.28  this subdivision, must not be greater than the greater of 
  1.29  $18,000 or 25 percent of the district's early childhood family 
  1.30  education annual revenue for the prior year.  If a district's 
  1.31  adjusted average early childhood family education reserve over 
  1.32  the three-year period is in excess of the greater of $18,000 or 
  2.1   25 percent of the prior year annual revenue, the district's 
  2.2   early childhood family education state aid and levy authority 
  2.3   for the current school year must be reduced by the excess 
  2.4   reserve amount.  The aid reduction equals the product of 
  2.5   the lesser of the excess reserve amount or the current year 
  2.6   revenue under subdivision 1 times the ratio of the district's 
  2.7   aid for the prior current year under subdivision 4 to the 
  2.8   district's revenue for the prior current year under subdivision 
  2.9   1.  The levy reduction equals the lesser of the excess reserve 
  2.10  amount or the current year revenue under subdivision 1 minus the 
  2.11  aid reduction.  Beginning in fiscal year 2004, the commissioner 
  2.12  must reallocate aid and levy reduced under this subdivision to 
  2.13  other eligible early childhood family education programs in 
  2.14  proportion to each district's revenue for the prior year under 
  2.15  subdivision 1.  For the purposes of this subdivision, if a 
  2.16  district does not levy the entire amount permitted under 
  2.17  subdivision 4, the revenue under subdivision 1 must be reduced 
  2.18  in direct proportion to the actual amount levied. 
  2.19     (b) Notwithstanding paragraph (a), for fiscal year 2003, 
  2.20  the excess reserve amount shall be computed using the balance in 
  2.21  a district's early childhood family education reserve account on 
  2.22  June 30, 2002.  For fiscal year 2004, the excess reserve amount 
  2.23  shall be computed using the adjusted average balance in a 
  2.24  district's early childhood family education reserve account on 
  2.25  June 30, 2002, and June 30, 2003. 
  2.26     Sec. 2.  Laws 2001, First Special Session chapter 3, 
  2.27  article 1, section 17, subdivision 3, as amended by Laws 2002, 
  2.28  chapter 220, article 2, section 2, is amended to read: 
  2.29     Subd. 3.  [EARLY CHILDHOOD FAMILY EDUCATION AID.] For early 
  2.30  childhood family education aid according to Minnesota Statutes, 
  2.31  section 124D.135: 
  2.32      $20,725,000     .....     2002 
  2.33      $20,624,000 $18,988,000    .....     2003 
  2.34     The 2002 appropriation includes $2,036,000 for 2001 and 
  2.35  $18,689,000 for 2002.  
  2.36     The 2003 appropriation includes $2,076,000 for 2002 and 
  3.1   $18,548,000 $16,912,000 for 2003.  
  3.2      Any balance in the first year does not cancel but is 
  3.3   available in the second year. 
  3.4      <b>[EFFECTIVE DATE.]</b> This section is effective the day 
  3.5   following final enactment. 
  3.6      Sec. 3.  Laws 2001, First Special Session chapter 3, 
  3.7   article 1, section 17, subdivision 8, as amended by Laws 2002, 
  3.8   chapter 220, article 2, section 4, is amended to read: 
  3.9      Subd. 8.  [BASIC SLIDING FEE.] For child care assistance 
  3.10  according to Minnesota Statutes, section 119B.03: 
  3.11       $51,999,000    .....     2002 
  3.12       $48,499,000 $46,999,000    .....     2003 
  3.13     Beginning in fiscal year 2004, the base appropriation is 
  3.14  $48,499,000 $46,999,000. 
  3.15     Any balance in the first year does not cancel but is 
  3.16  available in the second year. 
  3.17     Sec. 4.  Laws 2001, First Special Session chapter 3, 
  3.18  article 1, section 17, subdivision 9, as amended by Laws 2002, 
  3.19  chapter 220, article 2, section 5, is amended to read: 
  3.20     Subd. 9.  [MFIP CHILD CARE.] For child care assistance 
  3.21  according to Minnesota Statutes, section 119B.05: 
  3.22       $69,201,000 $59,956,000   .....     2002 
  3.23       $77,122,000 $68,182,000   .....     2003 
  3.24     Any balance in the first year does not cancel but is 
  3.25  available in the second year. 
  3.26     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
  3.27  following final enactment. 
  3.28     Sec. 5.  Laws 2001, First Special Session chapter 3, 
  3.29  article 1, section 17, subdivision 11, as amended by Laws 2002, 
  3.30  chapter 220, article 2, section 6, is amended to read: 
  3.31     Subd. 11.  [CHILD CARE SERVICE GRANTS.] For child care 
  3.32  development activities under child care service grants according 
  3.33  to Minnesota Statutes, section 119B.21: 
  3.34       $1,865,000      .....     2002
  3.35       $1,365,000 $  865,000    .....     2003 
  3.36     Beginning in fiscal year 2004, the base is 
  4.1   $1,365,000 $865,000 from the general fund. 
  4.2      Any balance in the first year does not cancel but is 
  4.3   available in the second year. 
  4.4      Sec. 6.  Laws 2001, First Special Session chapter 3, 
  4.5   article 1, section 18, as amended by Laws 2002, chapter 220, 
  4.6   article 2, section 7, is amended to read: 
  4.7      Sec. 18.  [SPECIAL REVENUE; CHILD SUPPORT COLLECTIONS.] 
  4.8      Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
  4.9   LEARNING.] Appropriations in this section are from child support 
  4.10  collection payments in the special revenue fund pursuant to 
  4.11  Minnesota Statutes, section 119B.074.  The sums indicated are 
  4.12  appropriated to the department of children, families, and 
  4.13  learning for the fiscal years designated. 
  4.14     Subd. 2.  [CHILD CARE ASSISTANCE.] For child care 
  4.15  assistance according to Minnesota Statutes, section 119B.03: 
  4.16       $2,441,439     .....     2002 
  4.17       $2,840,251 $3,340,251    .....     2003 
  4.18                             ARTICLE 2 
  4.19                             PREVENTION 
  4.20     Section 1.  Minnesota Statutes 2000, section 124D.221, 
  4.21  subdivision 2, is amended to read: 
  4.22     Subd. 2.  [PRIORITY NEIGHBORHOODS.] (a) The commissioner 
  4.23  must give priority to all applicants, except as provided in 
  4.24  paragraph (b), demonstrating a match of 25 cents of nonstate 
  4.25  funding for each $1 of the grant amount awarded for the 
  4.26  implementation of an after-school enrichment program.  
  4.27     (b) For grants in Minneapolis and St. Paul, the 
  4.28  commissioner must first give priority to neighborhoods in 
  4.29  this subdivision paragraph and then priority according to 
  4.30  paragraph (a).  In Minneapolis, priority neighborhoods are Near 
  4.31  North, Hawthorne, Sumner-Glenwood, Harrison, Jordan, Powderhorn, 
  4.32  Central, Whittier, Cleveland, McKinley, Waite Park, Sheridan, 
  4.33  Holland, Lyndale, Folwell, and Phillips.  In St. Paul, priority 
  4.34  neighborhoods are Summit-University, Thomas-Dale, North End, 
  4.35  Payne-Phalen, Daytons Bluff, and the West Side.  
  4.36     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2003. 
  5.1      Sec. 2.  Laws 2001, First Special Session chapter 3, 
  5.2   article 2, section 15, subdivision 3, as amended by Laws 2002, 
  5.3   chapter 220, article 2, section 10, is amended to read: 
  5.4      Subd. 3.  [COMMUNITY EDUCATION AID.] For community 
  5.5   education aid according to Minnesota Statutes, section 124D.20: 
  5.6        $14,190,000 $14,194,000  .....     2002
  5.7        $ 8,186,000 $ 8,191,000  .....     2003
  5.8      The 2002 appropriation includes $1,528,000 for 2001 and 
  5.9   $12,662,000 for 2002.  
  5.10     The 2003 appropriation includes $1,406,000 for 2002 and 
  5.11  $6,780,000 for 2003.  
  5.12     Any balance in the first year does not cancel but is 
  5.13  available in the second year. 
  5.14     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
  5.15  following final enactment. 
  5.16     Sec. 3.  Laws 2001, First Special Session chapter 3, 
  5.17  article 2, section 15, subdivision 10, is amended to read: 
  5.18     Subd. 10.  [AFTER-SCHOOL ENRICHMENT GRANTS.] For 
  5.19  after-school enrichment grants according to Minnesota Statutes, 
  5.20  section 124D.221:  
  5.21       $5,510,000     .....     2002
  5.22       $5,510,000     .....     2003
  5.23     Beginning in fiscal year 2004, the base is $4,133,000 from 
  5.24  the general fund each year. 
  5.25     Any balance in the first year does not cancel but is 
  5.26  available in the second year. 
  5.27                             ARTICLE 3 
  5.28               SELF-SUFFICIENCY AND LIFELONG LEARNING 
  5.29     Section 1.  Minnesota Statutes 2000, section 124D.52, 
  5.30  subdivision 3, is amended to read: 
  5.31     Subd. 3.  [ACCOUNTS; REVENUE; AID.] (a) Each district, 
  5.32  group of districts, or private nonprofit organization providing 
  5.33  adult basic education programs must establish and maintain 
  5.34  accounts separate from all other district accounts for the 
  5.35  receipt and disbursement of all funds related to these 
  5.36  programs.  All revenue received pursuant to this section must be 
  6.1   utilized solely for the purposes of adult basic education 
  6.2   programs.  State aid must not equal more than 100 percent of the 
  6.3   unreimbursed expenses of providing these programs, excluding 
  6.4   in-kind costs.  
  6.5      (b) Notwithstanding section 123A.26 or any other law to the 
  6.6   contrary, an adult basic education consortium providing an 
  6.7   approved adult basic education program, may be its own fiscal 
  6.8   agent and eligible to receive state aid payments directly from 
  6.9   the commissioner. 
  6.10     Sec. 2.  Minnesota Statutes 2001 Supplement, section 
  6.11  124D.531, subdivision 1, is amended to read: 
  6.12     Subdivision 1.  [STATE TOTAL ADULT BASIC EDUCATION AID.] 
  6.13  (a) The state total adult basic education aid for fiscal year 
  6.14  2001 equals $30,157,000.  The state total adult basic education 
  6.15  aid for later years fiscal year 2002 equals: 
  6.16     (1) the state total adult basic education aid for the 
  6.17  preceding fiscal year; times 
  6.18     (2) the lesser of: 
  6.19     (i) 1.08, or 
  6.20     (ii) the greater of 1.00 or the ratio of the state total 
  6.21  contact hours in the first prior program year to the state total 
  6.22  contact hours in the second prior program year.  The state total 
  6.23  adult basic education aid for fiscal year 2003 equals 
  6.24  $32,368,000.  The state total adult basic education aid for 
  6.25  fiscal year 2004 and beyond equals: 
  6.26     (1) the state total adult basic education aid for the 
  6.27  preceding fiscal year; times 
  6.28     (2) the lesser of: 
  6.29     (i) 1.05, or 
  6.30     (ii) the greater of 1.00 or the ratio of the state total 
  6.31  contact hours in the first prior program year to the state total 
  6.32  contact hours in the second prior program year.  
  6.33  Beginning in fiscal year 2002, two percent of the state total 
  6.34  adult basic education aid must be set aside for adult basic 
  6.35  education supplemental service grants under section 124D.522.  
  6.36     (b) The state total adult basic education aid, excluding 
  7.1   basic population aid, equals the difference between the amount 
  7.2   computed in paragraph (a), and the state total basic population 
  7.3   aid under subdivision 2. 
  7.4      Sec. 3.  Minnesota Statutes 2000, section 124D.531, 
  7.5   subdivision 4, is amended to read: 
  7.6      Subd. 4.  [ADULT BASIC EDUCATION PROGRAM AID LIMIT.] (a) 
  7.7   Notwithstanding subdivisions 2 and 3, the total adult basic 
  7.8   education aid for a program per prior year contact hour must not 
  7.9   exceed four times the rate per prior year contact hour computed 
  7.10  under subdivision 3, clause (2). 
  7.11     (b) For fiscal year 2002 and later, the aid for a program 
  7.12  under subdivision 3, clause (2), adjusted for changes in program 
  7.13  membership, must not exceed the aid for that program under 
  7.14  subdivision 3, clause (2), for the first preceding fiscal year 
  7.15  by more than the greater of 17 percent or $20,000.  For fiscal 
  7.16  year 2003 and later, the aid for a program under subdivision 3, 
  7.17  clause (2), adjusted for changes in program membership, must not 
  7.18  exceed the aid for that program under subdivision 3, clause (2), 
  7.19  for the first preceding fiscal year by more than the greater of 
  7.20  ten percent or $10,000. 
  7.21     (c) Adult basic education aid is payable to a program for 
  7.22  unreimbursed costs. 
  7.23     Sec. 4.  Laws 2001, First Special Session chapter 3, 
  7.24  article 3, section 9, subdivision 5, is amended to read: 
  7.25     Subd. 5.  [ADULT BASIC EDUCATION AID.] For adult basic 
  7.26  education aid according to Minnesota Statutes, section 124D.531: 
  7.27       $32,150,000    .....     2002 
  7.28       $34,731,000 $32,368,000   .....     2003
  7.29     The 2002 appropriation includes $3,019,000 for 2001 and 
  7.30  $29,131,000 for 2002.  
  7.31     The 2003 appropriation includes $3,237,000 for 2002 and 
  7.32  $31,494,000 $29,131,000 for 2003.  
  7.33     Sec. 5.  Laws 2001, First Special Session chapter 3, 
  7.34  article 3, section 9, subdivision 7, is amended to read: 
  7.35     Subd. 7.  [ADULT GRADUATION AID.] For adult graduation aid 
  7.36  according to Minnesota Statutes, section 124D.54: 
  8.1        $3,195,000 $2,462,000    .....     2002 
  8.2        $3,356,000 $2,504,000    .....     2003 
  8.3      The 2002 appropriation includes $305,000 $175,000 for 2001 
  8.4   and $2,890,000 $2,287,000 for 2002.  
  8.5      The 2003 appropriation includes $321,000 $254,000 for 2002 
  8.6   and $3,035,000 $2,250,000 for 2003.