1.1                          A bill for an act 
  1.2             relating to children; clarifying certain program 
  1.3             accounts in the Head Start program; appropriating 
  1.4             money; amending Minnesota Statutes 1996, sections 
  1.5             268.912; 268.913, subdivisions 2 and 4; and 268.914, 
  1.6             subdivision 1; repealing Minnesota Statutes 1996, 
  1.7             section 268.913, subdivision 5. 
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9      Section 1.  Minnesota Statutes 1996, section 268.912, is 
  1.10  amended to read: 
  1.11     268.912 [HEAD START PROGRAM.] 
  1.12     The department of ~~economic security~~ children, families, and 
  1.13  learning is the state agency responsible for administering the 
  1.14  Head Start program.  The commissioner of ~~economic security~~ 
  1.15  children, families, and learning may make grants to public or 
  1.16  private nonprofit agencies for the purpose of providing 
  1.17  supplemental funds for the federal Head Start program. 
  1.18     Sec. 2.  Minnesota Statutes 1996, section 268.913, 
  1.19  subdivision 2, is amended to read: 
  1.20     Subd. 2.  [PROGRAM ACCOUNT 20.] "Program account 20" means 
  1.21  the federally designated and funded account ~~limited to~~ for 
  1.22  training and technical assistance activities. 
  1.23     Sec. 3.  Minnesota Statutes 1996, section 268.913, 
  1.24  subdivision 4, is amended to read: 
  1.25     Subd. 4.  [PROGRAM ACCOUNT ~~26~~ 25.] "Program account ~~26~~ 25" 
  1.26  means the federally designated and funded account ~~that can only~~ 
  2.1   ~~be used to provide special services to handicapped diagnosed~~ 
  2.2   ~~children~~ for parent child centers. 
  2.3      Sec. 4.  Minnesota Statutes 1996, section 268.914, 
  2.4   subdivision 1, is amended to read: 
  2.5      Subdivision 1.  [STATE SUPPLEMENT FOR FEDERAL GRANTEES.] 
  2.6   (a) The commissioner of ~~economic security shall~~ children, 
  2.7   families, and learning must distribute money appropriated for 
  2.8   that purpose to Head Start program grantees to expand 
  2.9   services and to serve additional low-income children.  Money 
  2.10  must be allocated to each project Head Start grantee in 
  2.11  existence on the effective date of Laws 1989, chapter 282.  
  2.12  Migrant and Indian reservation grantees must be initially 
  2.13  allocated money based on the grantees' share of federal funds.  
  2.14  The remaining money must be initially allocated to the remaining 
  2.15  local agencies based equally on the agencies' share of federal 
  2.16  funds and on the proportion of eligible children in the 
  2.17  agencies' service area who are not currently being served.  A 
  2.18  Head Start grantee must be funded at a per child rate equal to 
  2.19  its contracted, federally funded base level for program accounts 
  2.20  ~~20 to 26~~ 20, 22, and 25 at the start of the fiscal year.  In 
  2.21  allocating funds under this paragraph, the commissioner ~~of~~ 
  2.22  ~~economic security~~ must assure that each Head Start grantee is 
  2.23  allocated no less funding in any fiscal year than was allocated 
  2.24  to that grantee in fiscal year 1993.  The commissioner may 
  2.25  provide additional funding to grantees for start-up costs 
  2.26  incurred by grantees due to the increased number of children to 
  2.27  be served.  Before paying money to the grantees, the 
  2.28  commissioner ~~shall~~ must notify each grantee of its initial 
  2.29  allocation, how the money must be used, and the number of 
  2.30  low-income children that must be served with the allocation.  
  2.31  Each grantee must notify the commissioner of the number 
  2.32  of ~~additional~~ low-income children it will be able to serve.  For 
  2.33  any grantee that cannot ~~serve additional children to~~ utilize its 
  2.34  full allocation, the commissioner ~~shall~~ must reduce the 
  2.35  allocation proportionately.  Money available after the initial 
  2.36  allocations are reduced must be redistributed to eligible 
  3.1   grantees. 
  3.2      (b) Up to 11 percent of the funds appropriated annually may 
  3.3   be used to provide grants to local Head Start agencies to 
  3.4   provide funds for innovative programs designed either to target 
  3.5   Head Start resources to particular at-risk groups of children or 
  3.6   to provide services in addition to those currently allowable 
  3.7   under federal Head Start regulations.  The commissioner ~~shall~~ 
  3.8   must award funds for innovative programs under this paragraph on 
  3.9   a competitive basis. 
  3.10     Sec. 5.  [APPROPRIATION.] 
  3.11     $38,500,000 for fiscal year 1998 and $38,500,000 for fiscal 
  3.12  year 1999 is appropriated from the general fund to the 
  3.13  commissioner of children, families, and learning for the Head 
  3.14  Start program. 
  3.15     Sec. 6.  [REPEALER.] 
  3.16     Minnesota Statutes 1996, section 268.913, subdivision 5, is 
  3.17  repealed.