1.1 	A bill for an act
1.2 	relating to education; providing flexibility for the use of early childhood family 
1.3 	education (ECFE) revenue and school readiness aid; amending Minnesota 
1.4 	Statutes 2014, sections 124D.135, subdivision 5; 124D.16, subdivision 3.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. Minnesota Statutes 2014, section 124D.135, subdivision 5, is amended to 
1.7 	read:
1.8 		Subd. 5.Use of revenue restricted. (a) Early childhood family education revenue 
1.9 	may be used only for early childhood family education programs or to supplement school 
1.10 	readiness programs.
1.11 	(b) Not more than five percent of early childhood family education revenue, as defined 
1.12 	in subdivision 7, may be used to administer early childhood family education programs.
1.13 	(c) An early childhood family education program may use up to ten percent of its 
1.14 	early childhood family education revenue as defined in subdivision 1, including revenue 
1.15 	from participant fees, for equipment that is used in the early childhood family education 
1.16 	program. This revenue may only be used for the following purposes:
1.17 	(1) to purchase or lease computers and related materials; and
1.18 	(2) to purchase or lease equipment for instruction for participating children and 
1.19 	their families.
1.20 	If a district anticipates an unusual circumstance requiring its early childhood family 
1.21 	education program capital expenditures to exceed the ten percent limitation, prior approval 
1.22 	to exceed the limit must be obtained in writing from the commissioner.

1.23 	Sec. 2. Minnesota Statutes 2014, section 124D.16, subdivision 3, is amended to read:
2.1 		Subd. 3.Use of aid. School readiness aid shall be used only to provide a school 
2.2 	readiness program or to supplement early childhood family education programs and may 
2.3 	be used to provide transportation. Not more than five percent of program revenue, as 
2.4 	defined in subdivision 5, may be used for the cost of administering the program. Aid 
2.5 	must be used to supplement and not supplant local, state, and federal funding. Aid may 
2.6 	not be used for instruction and services required under sections 125A.03 to 125A.24
2.7 	and 125A.65. Aid may not be used to purchase land or construct buildings, but may be 
2.8 	used to lease or renovate existing buildings.