1.1                          A bill for an act 
  1.2             relating to young children; proposing an amendment to 
  1.3             the Minnesota Constitution by adding a section to 
  1.4             article XIII; establishing the Mary McEvoy endowment 
  1.5             fund for young children; providing for fees; amending 
  1.6             Minnesota Statutes 2002, section 171.06, subdivision 
  1.7             2; proposing coding for new law as Minnesota Statutes, 
  1.8             chapter 119C. 
  1.9   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.10                             ARTICLE 1 
  1.11                      CONSTITUTIONAL AMENDMENT 
  1.12     Section 1.  [CONSTITUTIONAL AMENDMENT.] 
  1.13     An amendment to the Minnesota Constitution is proposed to 
  1.14  the people.  If the amendment is adopted, a section shall be 
  1.15  added to article XIII to read: 
  1.16     Sec. 13.  The Mary McEvoy endowment fund for young children 
  1.17  is established in the state treasury.  The assets of the Mary 
  1.18  McEvoy endowment fund for young children must enhance the 
  1.19  development and education of young children through age five to 
  1.20  ensure the long-term security of the state's workforce and 
  1.21  economy.  
  1.22     Sec. 2.  [SCHEDULE AND QUESTION.] 
  1.23     The amendment shall be submitted to the people at the 2004 
  1.24  general election.  The question submitted shall be: 
  1.25     "Shall the Minnesota Constitution be amended to create a 
  1.26  permanent endowment fund, entitled the Mary McEvoy endowment 
  1.27  fund for young children, to enhance the development and 
  2.1   education of young children through age five to ensure the 
  2.2   long-term security of the state's workforce and economy? 
  2.3                                      Yes .......
  2.4                                      No ........"
  2.5      Sec. 3.  [FINDINGS.] 
  2.6      The legislature finds that the state's highest priority is 
  2.7   to enhance the development and education of young children 
  2.8   through age five to ensure the long-term security of Minnesota's 
  2.9   workforce and economy.  The economic return realized from the 
  2.10  state's investment in early childhood development will far 
  2.11  exceed the return from its investments in private businesses, in 
  2.12  nonprofit, local, and regional government projects, and in other 
  2.13  conventional types of economic development initiatives.  The 
  2.14  quality of a child's life and the contributions that child makes 
  2.15  to society as an adult are affected by the child's first years 
  2.16  of life.  From birth until about age five, a child experiences 
  2.17  tremendous growth and change.  If a child receives support in 
  2.18  developing cognition, language, motor skills, adaptive skills 
  2.19  and social-emotional functioning during this period, the child 
  2.20  is more likely to succeed in school and later contribute to 
  2.21  society.  However, national and local studies show that without 
  2.22  adequate support during the first five years, a child is more 
  2.23  likely to drop out of school, receive governmental assistance, 
  2.24  and commit crimes.  
  2.25     Children living in poverty in Minnesota often enter 
  2.26  kindergarten without sufficient preparation during these early 
  2.27  years.  Children who lack fundamental reading or language skills 
  2.28  begin at a disadvantage from which they can recover only with 
  2.29  great difficulty.  Research shows a link between insufficient 
  2.30  preparation and low-skill, low-paying jobs.  Many children in 
  2.31  poverty experience trouble in school and with the law, which 
  2.32  generates societal costs born by taxpayers and the community at 
  2.33  large. 
  2.34     Investing in high-quality early childhood development 
  2.35  programs for children living in poverty brings a real 
  2.36  inflation-adjusted high public return.  Research shows that for 
  3.1   every $1 invested in the early years of a child's life, $7 are 
  3.2   saved in the costs of special education, remedial programs, 
  3.3   juvenile justice, and governmental assistance.  
  3.4      While Minnesota and many local communities invest in early 
  3.5   childhood programs such as Head Start, school readiness, and 
  3.6   early childhood and family education, the state is not meeting 
  3.7   the current need for quality early care and education.  The gap 
  3.8   is twofold.  First, most early childhood development programs do 
  3.9   not have the resources to provide the more individualized 
  3.10  approach required to produce the demonstrated return on 
  3.11  investment.  The endowment provides additional resources to 
  3.12  enhance existing early childhood programs by reducing early care 
  3.13  and education professional to student ratios and expanding 
  3.14  resources. 
  3.15     Second, present programs reach only about one-half of all 
  3.16  children from low-income families in Minnesota.  The Mary McEvoy 
  3.17  endowment fund for young children expands present programs and 
  3.18  offers startup funds to provide all eligible children with 
  3.19  universal access to early childhood development programs. 
  3.20     While the Mary McEvoy endowment fund for young children 
  3.21  serves children from families of all income levels through 
  3.22  sliding-scale fees, the Mary McEvoy endowment fund for young 
  3.23  children makes reaching children from low-income families a 
  3.24  priority in order to achieve a high public return.  
  3.25     Mary McEvoy, who the endowment is named after, died in a 
  3.26  tragic plane crash.  McEvoy, who was 49, was a professor of 
  3.27  educational psychology at the University of Minnesota's Twin 
  3.28  Cities campus.  She was a national leader in the education of 
  3.29  young children.  McEvoy worked as the director of the center for 
  3.30  early education and development from 1993 to 1999.  She was also 
  3.31  a faculty legislative liaison to the faculty consultative 
  3.32  committee.  She was a true champion for young children.  
  3.33     Sec. 4.  [EFFECTIVE DATE.] 
  3.34     Section 3 is effective the day after the constitutional 
  3.35  amendment proposed in sections 1 and 2, is adopted. 
  3.36                             ARTICLE 2 
  4.1            MARY MCEVOY ENDOWMENT FUND FOR YOUNG CHILDREN 
  4.2      Section 1.  [119C.01] [DEFINITIONS.] 
  4.3      Subdivision 1.  [APPLICABILITY.] The definitions in this 
  4.4   section apply to sections 119C.01 to 119C.06. 
  4.5      Subd. 2.  [THE MARY MCEVOY ENDOWMENT FUND FOR YOUNG 
  4.6   CHILDREN.] "The Mary McEvoy endowment fund for young children" 
  4.7   means the Mary McEvoy endowment fund for young children 
  4.8   established in the Minnesota Constitution, article XIII, section 
  4.9   13. 
  4.10     Subd. 3.  [YOUNG CHILDREN.] "Young children" means children 
  4.11  through age five. 
  4.12     Sec. 2.  [119C.02] [THE MARY MCEVOY ENDOWMENT FUND FOR 
  4.13  YOUNG CHILDREN NOT TO SUPPLANT EXISTING FUNDING; PUBLIC OR 
  4.14  PRIVATE MATCH REQUIREMENT.] 
  4.15     (a) The Mary McEvoy endowment fund for young children may 
  4.16  not be used as a substitute for traditional funding sources for 
  4.17  activities for young children and their parents, but must be 
  4.18  used to supplement the traditional sources, including sources 
  4.19  used to support activities in section 119C.04. 
  4.20     (b) The Mary McEvoy endowment fund for young children board 
  4.21  under section 134.085 must determine which recipients of the 
  4.22  Mary McEvoy endowment fund for young children must provide 
  4.23  matching public or private funds or in-kind contributions and in 
  4.24  what proportion as a condition of receiving funding.  
  4.25     Sec. 3.  [119C.03] [THE MARY MCEVOY ENDOWMENT FUND FOR 
  4.26  YOUNG CHILDREN ACCOUNT.] 
  4.27     Subdivision 1.  [ESTABLISHMENT OF ACCOUNT AND INVESTMENT.] 
  4.28  The Mary McEvoy endowment fund for young children, under the 
  4.29  Minnesota Constitution, article XIII, section 13, is established 
  4.30  as an account in the state treasury.  The commissioner of 
  4.31  finance shall credit to the Mary McEvoy endowment fund for young 
  4.32  children the amounts authorized under this section and section 
  4.33  119C.05.  The state board of investment shall ensure that the 
  4.34  Mary McEvoy endowment fund for young children money is invested 
  4.35  under section 11A.24.  All money earned by the Mary McEvoy 
  4.36  endowment fund for young children must be credited to the Mary 
  5.1   McEvoy endowment fund for young children.  The principal of the 
  5.2   Mary McEvoy endowment fund for young children and any unexpended 
  5.3   earnings must be invested and reinvested by the state board of 
  5.4   investment.  
  5.5      Subd. 2.  [REVENUE.] Nothing in article 1, section 3, and 
  5.6   sections 119C.01 to 119C.06 limits the source of contributions 
  5.7   to the Mary McEvoy endowment fund for young children. 
  5.8      Subd. 3.  [GIFTS AND DONATIONS.] Individuals, foundations, 
  5.9   corporations, and the federal government may make gifts and 
  5.10  donations to the Mary McEvoy endowment fund for young children.  
  5.11  Noncash gifts and donations must be disposed of for cash as soon 
  5.12  as the board prudently can maximize the value of the gift or 
  5.13  donation.  Gifts and donations of marketable securities may be 
  5.14  held or disposed of for cash at the option of the board.  The 
  5.15  cash receipts of gifts and donations of cash or capital assets 
  5.16  and marketable securities disposed of for cash must be credited 
  5.17  immediately to the principal of the Mary McEvoy endowment fund 
  5.18  for young children.  The value of marketable securities at the 
  5.19  time the gift or donation is made must be credited to the 
  5.20  principal of the Mary McEvoy endowment fund for young children 
  5.21  and any earnings from the marketable securities are earnings of 
  5.22  the Mary McEvoy endowment fund for young children. 
  5.23     Subd. 4.  [AUDITS REQUIRED.] The legislative auditor must 
  5.24  audit the Mary McEvoy endowment fund for young children 
  5.25  expenditures to ensure that money is spent for the purposes 
  5.26  under section 119C.04. 
  5.27     Sec. 4.  [119C.04] [THE MARY MCEVOY ENDOWMENT FUND FOR 
  5.28  YOUNG CHILDREN EXPENDITURES.] 
  5.29     Money in the Mary McEvoy endowment fund for young children 
  5.30  may be spent for: 
  5.31     (1) activities and programs emphasizing results for 
  5.32  children through age five that ensure the long-term security of 
  5.33  Minnesota's workforce and economy; 
  5.34     (2) supplemental funding to those projects and programs 
  5.35  that have demonstrated successful outcomes in improving and 
  5.36  enhancing the development of young children so they begin school 
  6.1   ready to learn; 
  6.2      (3) activities that strengthen families, neighborhoods, and 
  6.3   
  6.4   communities by encouraging partnerships and collaborations on 
  6.5   behalf of young children; 
  6.6      (4) administrative and investment expenses incurred by the 
  6.7   state board of investment in investing deposits to the Mary 
  6.8   McEvoy endowment fund for young children; and 
  6.9      (5) administrative expenses subject to the limits in 
  6.10  section 119C.06. 
  6.11     Activities in clauses (3) to (5) may include pilot projects 
  6.12  or demonstration projects. 
  6.13     Sec. 5.  [119C.05] [ROYALTIES; COPYRIGHTS; PATENTS.] 
  6.14     This section applies to projects supported by the endowment 
  6.15  fund.  The Mary McEvoy endowment fund for young children owns 
  6.16  and takes title to the percentage of a royalty, copyright, or 
  6.17  patent resulting from a project supported by the Mary McEvoy 
  6.18  endowment fund for young children equal to the percentage of the 
  6.19  project's total funding provided by the Mary McEvoy endowment 
  6.20  fund for young children.  Cash receipts resulting from a 
  6.21  royalty, copyright, or patent, or the sale of the endowment 
  6.22  fund's rights to a royalty, copyright, or patent, must be 
  6.23  credited immediately to the principal of the Mary McEvoy 
  6.24  endowment fund for young children.  
  6.25     Sec. 6.  [119C.06] [GOVERNANCE.] 
  6.26     Subdivision 1.  [ESTABLISHMENT; MEMBERSHIP.] The Mary 
  6.27  McEvoy endowment fund for young children board is established 
  6.28  and consists of 12 members appointed by the governor with the 
  6.29  advice and consent of the senate.  One parent member must be 
  6.30  appointed from each congressional district and remaining members 
  6.31  must be appointed at large.  Persons appointed to the board must 
  6.32  have parenting experience or interest in services to young 
  6.33  children.  No more than four board members shall be employed in 
  6.34  the early childhood areas of Head Start, early childhood and 
  6.35  family education, school readiness, child care resource and 
  6.36  referral, or early childhood research during their term of 
  6.37  office.  Board members annually must select from their 
  7.1   membership a chair and may select other officers they deem 
  7.2   necessary. 
  7.3      Subd. 2.  [TERMS; COMPENSATION; REMOVAL; VACANCIES.] (a) 
  7.4   The membership terms, compensation, removal of members, and 
  7.5   filling of vacancies are as provided in section 15.0575, except 
  7.6   initial members whose terms are as provided in paragraph (b). 
  7.7      (b) Four of the initial board members, including one 
  7.8   at-large board member, must be appointed, by lot, to terms that 
  7.9   expire the first Monday in January in each of the years 2006, 
  7.10  2007, and 2008.  The remaining two members must be appointed, by 
  7.11  lot, to terms that expire the first Monday in January 2005. 
  7.12     Subd. 3.  [MEETINGS.] Board members must meet regularly at 
  7.13  the times and places determined by the board.  Meetings must be 
  7.14  called by the chair or at the written request of any eight 
  7.15  members. 
  7.16     Subd. 4.  [THE MARY MCEVOY ENDOWMENT FUND FOR YOUNG 
  7.17  CHILDREN DIRECTOR.] A majority of the board must select a 
  7.18  director for the Mary McEvoy endowment fund for young children, 
  7.19  who serves at the pleasure of the board.  The director of the 
  7.20  Mary McEvoy endowment fund for young children may, upon 
  7.21  designation and instruction by the board, serve as the state 
  7.22  agent to apply for, receive, and disburse funds made available 
  7.23  to the Mary McEvoy endowment fund for young children.  The 
  7.24  director of the Mary McEvoy endowment fund for young children is 
  7.25  the chief administrative officer of the board, performs the 
  7.26  executive duties of the board under this section, and hires 
  7.27  staff as needed.  The director of the Mary McEvoy endowment fund 
  7.28  for young children is not a member of the board.  
  7.29     Subd. 5.  [POWERS AND DUTIES.] The board has the powers and 
  7.30  duties necessary to: 
  7.31     (1) be the leading voice and advocate for young children 
  7.32  through the age of five to enhance and develop their education; 
  7.33     (2) advise the governor, the legislature, state, regional 
  7.34  and local agencies, school boards, and elected officials on 
  7.35  issues related to young children through the age of five; 
  7.36     (3) prepare statewide plans for services to young children 
  8.1   through the age of five, coordinated with regional plans, that 
  8.2   identify and address trends in early childhood services; 
  8.3      (4) facilitate partnerships between services for young 
  8.4   children through the age of five and other state agencies that 
  8.5   result in statewide and regional initiatives and programs; 
  8.6      (5) work cooperatively with all state agencies and early 
  8.7   childhood organizations and agencies, such as Head Start, early 
  8.8   childhood and family education, child care resource and 
  8.9   referral, and NAEYC; and 
  8.10     (6) administer all funding for the Mary McEvoy endowment 
  8.11  fund for young children including setting sliding scale fees and 
  8.12  determining which recipients of the Mary McEvoy endowment fund 
  8.13  for young children must provide matching funds or in-kind 
  8.14  contributions and in what proportion as a condition of receiving 
  8.15  funding.  
  8.16     Sec. 7.  Minnesota Statutes 2002, section 171.06, 
  8.17  subdivision 2, is amended to read: 
  8.18     Subd. 2.  [FEES.] (a) The fees for a license and Minnesota 
  8.19  identification card are as follows: 
  8.20  Classified Driver's License  D-$18.50 C-$22.50 B-$29.50 A-$37.50
  8.21  Classified Under-21 D.L.     D-$18.50 C-$22.50 B-$29.50 A-$17.50
  8.22  Instruction Permit                                        $ 9.50
  8.23  Provisional License                                       $ 9.50
  8.24  Duplicate License or
  8.25   duplicate identification card                            $ 8.00
  8.26  Minnesota identification card or Under-21 Minnesota
  8.27  identification card, other than duplicate,
  8.28  except as otherwise provided in section 171.07,
  8.29  subdivisions 3 and 3a                                     $12.50
  8.30     (b) Notwithstanding paragraph (a), a person who holds a 
  8.31  provisional license and has a driving record free of (1) 
  8.32  convictions for a violation of section 169A.20, 169A.33, 
  8.33  169A.35, or sections 169A.50 to 169A.53, (2) convictions for 
  8.34  crash-related moving violations, and (3) convictions for moving 
  8.35  violations that are not crash related, shall have a $3.50 credit 
  8.36  toward the fee for any classified under-21 driver's license.  
  9.1   "Moving violation" has the meaning given it in section 171.04, 
  9.2   subdivision 1. 
  9.3      (c) In addition to the driver's license fee required under 
  9.4   paragraph (a), the registrar shall collect an additional $4 
  9.5   processing fee from each new applicant or person renewing a 
  9.6   license with a school bus endorsement to cover the costs for 
  9.7   processing an applicant's initial and biennial physical 
  9.8   examination certificate.  The department shall not charge these 
  9.9   applicants any other fee to receive or renew the endorsement, 
  9.10  except as provided under paragraph (d). 
  9.11     (d) In addition to the driver's license fees required under 
  9.12  paragraph (a), the registrar shall collect an additional $1 fee 
  9.13  from each new applicant or person renewing a driver's license.  
  9.14  All proceeds from fees collected under this paragraph must be 
  9.15  deposited in the Mary McEvoy endowment fund for young children 
  9.16  authorized under section 119C.03.  
  9.17     Sec. 8.  [EFFECTIVE DATE.] 
  9.18     Sections 1 to 7, are effective the day after the 
  9.19  constitutional amendment proposed in article 1, sections 1 and 
  9.20  2, is adopted.