Minnesota Legislature
HF 3800
3rd Engrossment - 81st Legislature (1999 - 2000) Posted on 12/15/2009 12:00am
KEY: stricken = removed, old language.
underscored = added, new language.
1.1 A bill for an act 1.2 relating to education; providing for family and early 1.3 childhood education; making changes to adult basic 1.4 education programs; modifying child care licensing and 1.5 inservice training requirements; transferring energy 1.6 assistance programs; changing eligibility for 1.7 individual development accounts; changing requirements 1.8 for child care assistance; providing for kindergarten 1.9 through grade 12 general education, special programs, 1.10 employment and transitions, facilities and technology, 1.11 educational excellence and other policy, nutrition, 1.12 fund transfers, libraries, and technical, conforming, 1.13 and clarifying amendments; providing for higher 1.14 education; modifying salary and compensation 1.15 procedures for the chancellor and other personnel of 1.16 the Minnesota state colleges and universities; 1.17 requiring board of regents and board of trustees to 1.18 maintain certain data to be eligible for capital 1.19 funding; modifying and making technical changes for 1.20 state designer selection board, student residency, and 1.21 child care grant provisions; increasing aggregate 1.22 principal amount of revenue bonds issued by board of 1.23 trustees; requiring a study and report; requiring 1.24 board of trustees to plan and coordinate programs with 1.25 certain intermediate school districts and to provide 1.26 relief to campuses experiencing increased health care 1.27 costs; transferring certain programs from the higher 1.28 education services office to the department of 1.29 children, families, and learning; appropriating money 1.30 to Minnesota state colleges and universities to fund 1.31 increased enrollment; appropriating money; amending 1.32 Minnesota Statutes 1998, sections 15A.081, subdivision 1.33 7b, and by adding a subdivision; 16B.33, subdivisions 1.34 2 and 3a; 120A.22, subdivision 3; 120A.41; 121A.61, 1.35 subdivision 3; 122A.18, subdivision 2; 122A.31, 1.36 subdivision 4; 123A.485, subdivision 4; 123B.02, by 1.37 adding a subdivision; 123B.51, subdivision 6; 123B.52, 1.38 by adding a subdivision; 123B.53, by adding 1.39 subdivisions; 123B.59, subdivision 6, and by adding 1.40 subdivisions; 123B.71, subdivisions 3 and 10; 123B.75, 1.41 subdivision 5; 123B.79, subdivision 7; 123B.85, 1.42 subdivision 1; 123B.86, subdivision 1; 123B.88, 1.43 subdivision 3; 124D.081, subdivision 6; 124D.111, 1.44 subdivision 1; 124D.128, subdivision 4; 124D.44; 1.45 124D.454, subdivisions 2 and 10; 124D.52, subdivisions 1.46 1, 2, 3, and by adding subdivisions; 124D.86, 2.1 subdivision 6, and by adding subdivisions; 125A.76, 2.2 subdivision 7; 126C.10, by adding a subdivision; 2.3 126C.12, subdivision 2; 126C.40, subdivision 1, and by 2.4 adding a subdivision; 126C.69, subdivision 3; 127A.05, 2.5 subdivision 4; 127A.41, subdivisions 8 and 9; 127A.48, 2.6 subdivision 1; 135A.031, subdivision 2; 136A.125, by 2.7 adding a subdivision; 136D.281, subdivision 4; 2.8 136D.741, subdivision 4; 136D.88, subdivision 4; 2.9 136F.40; 136F.98, subdivision 1; 245A.14, subdivision 2.10 4, and by adding subdivisions; 471.15; and 475.53, 2.11 subdivision 4; Minnesota Statutes 1999 Supplement, 2.12 sections 119B.011, subdivision 20; 122A.09, 2.13 subdivision 4; 123B.53, subdivisions 4 and 6; 123B.54; 2.14 124D.10, subdivisions 3, 4, 6, 8, 11, 14, 15, and 23; 2.15 124D.11, subdivisions 1, 4, and 6; 124D.1155, 2.16 subdivision 2; 124D.128, subdivision 2; 124D.453, 2.17 subdivision 3; 124D.53, subdivision 3; 124D.65, 2.18 subdivision 4; 124D.84, subdivision 1; 124D.86, 2.19 subdivisions 1 and 3; 124D.87; 125A.023, subdivisions 2.20 3 and 5; 125A.08; 125A.76, subdivision 2; 125A.79, 2.21 subdivision 8; 125A.80; 125B.21, subdivision 3; 2.22 126C.052; 126C.10, subdivisions 1, 2, 14, 23, 24, 25, 2.23 and 26; 126C.12, subdivision 1; 126C.17, subdivision 2.24 9; 126C.40, subdivision 6; 126C.44; 126C.63, 2.25 subdivision 8; 126C.69, subdivision 9; 127A.45, 2.26 subdivision 12a; 127A.51; and 181A.04, subdivision 6; 2.27 Laws 1997, First Special Session chapter 4, article 8, 2.28 section 4, as amended; Laws 1998, First Special 2.29 Session chapter 1, article 1, sections 10, subdivision 2.30 1, as amended; 11, subdivision 2, as amended; Laws 2.31 1999, chapter 205, article 1, sections 65; 71, 2.32 subdivisions 3, 7, and 9; article 2, section 4, 2.33 subdivisions 2, 3, and 4; article 3, section 5, 2.34 subdivision 9; article 4, section 12, subdivisions 5, 2.35 6, and 7; chapter 241, article 1, sections 66; 68, 2.36 subdivisions 4 and 5; 69; and 70; article 2, section 2.37 60, subdivisions 7, 9, 12, 13, 14, 17, and 19; article 2.38 3, sections 3, subdivisions 2 and 4; 5; article 4, 2.39 sections 27, subdivisions 2, 3, 4, 5, 7, 10, and 11; 2.40 and 29; article 5, section 18, subdivisions 5 and 6; 2.41 article 6, section 14, subdivisions 2, 3, 4, and 5; 2.42 article 8, section 4, subdivision 5; article 9, 2.43 section 49; article 10, section 6; proposing coding 2.44 for new law in Minnesota Statutes, chapters 16A; 121A; 2.45 122A; 123B; 124D; 125B; 134; repealing Minnesota 2.46 Statutes 1998, sections 123B.59, subdivision 7; 2.47 124D.53; 126C.30; 126C.31; 126C.32; 126C.33; 126C.34; 2.48 126C.35; 126C.36; 136D.281, subdivision 8; 136D.741, 2.49 subdivision 8; and 136D.88, subdivision 8; repealing 2.50 Laws 1998, First Special Session chapter 1, article 1, 2.51 section 10, subdivsion 2, as amended; Laws 1999, 2.52 chapters 216, article 4, section 12; 241, article 1, 2.53 section 64; article 9, sections 35 and 36; article 10, 2.54 section 5; and 245, article 4, section 3; Minnesota 2.55 Rules, parts 3535.9920; and 4830.9005 to 4830.9030. 2.56 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 2.57 ARTICLE 1 2.58 FAMILY AND EARLY CHILDHOOD EDUCATION 2.59 Section 1. Minnesota Statutes 1999 Supplement, section 2.60 119B.011, subdivision 20, is amended to read: 2.61 Subd. 20. [TRANSITION YEAR FAMILIES.] "Transition year 2.62 families" means families who have received MFIP assistance, or 2.63 who were eligible to receive MFIP assistance after choosing to 3.1 discontinue receipt of the cash portion of MFIP assistance under 3.3 section 256J.31, subdivision 12, for at least three of the last 3.4 six months before losing eligibility for MFIPdue to increased3.5income from employment or child or spousal supportor families 3.6 participating in work first under chapter 256K who meet the 3.7 requirements of section 256K.07. Transition year child care may 3.8 be used to support employment or job search. Transition year 3.9 child care is not available to families who have been 3.10 disqualified from MFIP due to fraud. 3.11 Sec. 2. [124D.515] [ADULT BASIC EDUCATION AID 3.12 DEFINITIONS.] 3.13 Subdivision 1. [APPLICABILITY.] The definitions in this 3.14 section apply to sections 124D.52 to 124D.531. 3.15 Subd. 2. [CONTACT HOURS.] "Contact hours" means the number 3.16 of hours during which a student was engaged in learning 3.17 activities provided by an approved adult education program. 3.18 Contact hours excludes homework, but includes interactive 3.19 distance learning. The commissioner may reallocate contact 3.20 hours among programs to adjust for changes in program membership 3.21 between the first prior program year and the current program 3.22 year. For fiscal year 2000, the commissioner may assign contact 3.23 hours to a program providing statewide supplemental services. 3.24 Subd. 3. [FIRST PRIOR PROGRAM YEAR.] "First prior program 3.25 year" means the period from May 1 of the second prior fiscal 3.26 year through April 30 of the first prior fiscal year. 3.27 Subd. 4. [UNREIMBURSED EXPENSES.] "Unreimbursed expenses" 3.28 means allowable adult basic education expenses of a program that 3.29 are not covered by payments from federal or private for-profit 3.30 sources. 3.31 Sec. 3. Minnesota Statutes 1998, section 124D.52, 3.32 subdivision 1, is amended to read: 3.33 Subdivision 1. [PROGRAM REQUIREMENTS.] An adult basic 3.34 education program is a day or evening program offered by a 3.35 district that is for people over 16 years of age who do not 3.36 attend an elementary or secondary school. The program offers 3.37 academic instruction necessary to earn a high school diploma or 4.1 equivalency certificate. Tuition and fees may not be charged to 4.2 a learner for instruction paid under this section, except for a 4.3 security deposit to assure return of materials, supplies, and 4.4 equipment. 4.5 Each approved adult basic education program must develop a 4.6 memorandum of understanding with the local workforce development 4.7 centers located in the approved program's service delivery 4.8 area. The memorandum of understanding must describe how the 4.9 adult basic education program and the workforce development 4.10 centers will cooperate and coordinate services to provide 4.11 unduplicated, efficient, and effective services to clients. 4.12 Sec. 4. Minnesota Statutes 1998, section 124D.52, 4.13 subdivision 2, is amended to read: 4.14 Subd. 2. [PROGRAM APPROVAL.] (a) To receive aid under this 4.15 section, a district, a consortium of districts, or a private 4.16 nonprofit organization must submit an application by June 1 4.17 describing the program, on a form provided by the department. 4.18 The program must be approved by the commissioner according to 4.19 the following criteria: 4.20 (1) how the needs of different levels of learning will be 4.21 met; 4.22 (2) for continuing programs, an evaluation of results; 4.23 (3) anticipated number and education level of participants; 4.24 (4) coordination with other resources and services; 4.25 (5) participation in a consortium, if any, and money 4.26 available from other participants; 4.27 (6) management and program design; 4.28 (7) volunteer training and use of volunteers; 4.29 (8) staff development services; 4.30 (9) program sites and schedules;and4.31 (10) program expenditures that qualify for aid; 4.32 (11) program ability to provide data related to learner 4.33 outcomes as required by law; and 4.34 (12) a copy of the memorandum of understanding described in 4.35 subdivision 1 submitted to the commissioner. 4.36 (b)The commissioner may grant adult basic education funds5.1to a private, nonprofit organization to provide services that5.2are not offered by a district or that are supplemental to a5.3district's program. The program provided under this provision5.4must be approved and funded according to the same criteria used5.5for district programs.5.6(c)Adult basic education programs may be approved under 5.7 this subdivision for up to five years. Five-year program 5.8 approval must be granted to an applicant who has demonstrated 5.9 the capacity to: 5.10 (1) offer comprehensive learning opportunities and support 5.11 service choices appropriate for and accessible to adults at all 5.12 basic skill need levels; 5.13 (2) provide a participatory and experiential learning 5.14 approach based on the strengths, interests, and needs of each 5.15 adult, that enables adults with basic skill needs to: 5.16 (i) identify, plan for, and evaluate their own progress 5.17 toward achieving their defined educational and occupational 5.18 goals; 5.19 (ii) master the basic academic reading, writing, and 5.20 computational skills, as well as the problem-solving, decision 5.21 making, interpersonal effectiveness, and other life and learning 5.22 skills they need to function effectively in a changing society; 5.23 (iii) locate and be able to use the health, governmental, 5.24 and social services and resources they need to improve their own 5.25 and their families' lives; and 5.26 (iv) continue their education, if they desire, to at least 5.27 the level of secondary school completion, with the ability to 5.28 secure and benefit from continuing education that will enable 5.29 them to become more employable, productive, and responsible 5.30 citizens; 5.31 (3) plan, coordinate, and develop cooperative agreements 5.32 with community resources to address the needs that the adults 5.33 have for support services, such as transportation, flexible 5.34 course scheduling, convenient class locations, and child care; 5.35 (4) collaborate with business, industry, labor unions, and 5.36 employment-training agencies, as well as with family and 6.1 occupational education providers, to arrange for resources and 6.2 services through which adults can attain economic 6.3 self-sufficiency; 6.4 (5) provide sensitive and well trained adult education 6.5 personnel who participate in local, regional, and statewide 6.6 adult basic education staff development events to master 6.7 effective adult learning and teaching techniques; 6.8 (6) participate in regional adult basic education peer 6.9 program reviews and evaluations;and6.10 (7) submit accurate and timely performance and fiscal 6.11 reports; and 6.12 (8) submit accurate and timely reports related to program 6.13 outcomes and learner follow-up information. 6.14 (c) The commissioner shall require each district to provide 6.15 notification by February 1, 2001, of its intent to apply for 6.16 funds under this section as a single district or as part of an 6.17 identified consortium of districts. A district receiving funds 6.18 under this section must notify the commissioner by February 1 of 6.19 its intent to change its application status for applications due 6.20 the following June 1. 6.21 Sec. 5. Minnesota Statutes 1998, section 124D.52, 6.22 subdivision 3, is amended to read: 6.23 Subd. 3. [ACCOUNTS; REVENUE; AID.] Each district, group of 6.24 districts, or private nonprofit organization providing adult 6.25 basic education programs must establish and maintain accounts 6.26 separate from all other district accounts for the receipt and 6.27 disbursement of all funds related to these programs. All 6.28 revenue received pursuant to this section must be utilized 6.29 solely for the purposes of adult basic education programs. 6.30Federal andState aidplus levymust not equal more than 100 6.31 percent of theactual costunreimbursed expenses of providing 6.32 these programs, excluding in-kind costs. 6.33 Sec. 6. Minnesota Statutes 1998, section 124D.52, is 6.34 amended by adding a subdivision to read: 6.35 Subd. 6. [COOPERATIVE ENGLISH AS A SECOND LANGUAGE AND 6.36 ADULT BASIC EDUCATION PROGRAMS.] (a) A school district, or adult 7.1 basic education consortium that receives revenue under section 7.2 124D.531 may deliver English as a second language, citizenship, 7.3 or other adult education programming in collaboration with 7.4 community-based and nonprofit organizations located within its 7.5 district or region, and with correctional institutions. The 7.6 organization or correctional institution must have the 7.7 demonstrated capacity to offer education programs for adults. 7.8 Community-based or nonprofit organizations must meet the 7.9 criteria in paragraph (b). A community-based or nonprofit 7.10 organization or a correctional institution may be reimbursed for 7.11 unreimbursed expenses as defined in section 124D.515, 7.12 subdivision 4, for the administration of English as a second 7.13 language or adult basic education programs, not to exceed eight 7.14 percent of the total funds provided by a school district or 7.15 adult basic education consortium. The administrative 7.16 reimbursement for a school district or adult basic education 7.17 consortium that delivers services cooperatively with a 7.18 community-based or nonprofit organization or correctional 7.19 institution is limited to eight percent of the program aid not 7.20 to exceed the unreimbursed expenses of administering programs 7.21 delivered by community-based or nonprofit organizations or 7.22 correctional institutions. 7.23 (b) A community-based organization or nonprofit 7.24 organization that delivers education services under this section 7.25 must demonstrate that it has met the following criteria: 7.26 (1) be legally established as a nonprofit organization; 7.27 (2) have an established system for fiscal accounting and 7.28 reporting that is consistent with the department of children, 7.29 families, and learning's adult basic education completion report 7.30 and reporting requirements under section 124D.531; 7.31 (3) require all instructional staff to complete a training 7.32 course in teaching adult learners; and 7.33 (4) develop a learning plan for each student that 7.34 identifies defined educational and occupational goals with 7.35 measures to evaluate progress. 7.36 Sec. 7. Minnesota Statutes 1998, section 124D.52, is 8.1 amended by adding a subdivision to read: 8.2 Subd. 7. [PERFORMANCE ACCOUNTABILITY SYSTEM.] A 8.3 performance accountability system is created to assess the 8.4 effectiveness of adult basic education programs. The following 8.5 core indicators must be included in the accountability system: 8.6 (1) demonstrated improvements in literacy skill levels in 8.7 reading, writing, and speaking the English language, numeracy, 8.8 problem-solving, English language acquisition, and other 8.9 literacy skills; 8.10 (2) placement in, retention in, or completion of 8.11 post-secondary education, training, unsubsidized employment or 8.12 career advancement; and 8.13 (3) receipt of a secondary school diploma or its recognized 8.14 equivalent. 8.15 A district, group of districts, state agency, or private 8.16 nonprofit organization providing an adult basic education 8.17 program must request each learner to provide the learner's 8.18 social security number. When a learner in such a program is 8.19 requested to provide the learner's social security number, the 8.20 learner must be notified in a form easily understandable to the 8.21 learner that (i) providing the social security number is 8.22 optional, and (ii) if the learner provides the social security 8.23 number it will be used to assess the effectiveness of the 8.24 program by tracking the learner's subsequent career. The 8.25 learner must be notified that the social security number will be 8.26 shared with the department of children, families, and learning 8.27 and the department of economic security in order to accomplish 8.28 this purpose. 8.29 Each quarter, a district, group of districts, state agency, 8.30 or private nonprofit organization providing programs under this 8.31 section must forward social security numbers it receives from 8.32 learners to the department of children, families, and learning. 8.33 For the purposes of longitudinal studies on the employment 8.34 status of former learners under this section, the department of 8.35 children, families, and learning must forward the social 8.36 security numbers to the department of economic security to 9.1 electronically match the social security numbers of former 9.2 learners with wage detail reports filed under section 268.044. 9.3 The results of data matches must, for purposes of this 9.4 section and consistent with the requirements of United States 9.5 Code, title 29, section 2871, of the Workforce Investment Act of 9.6 1998, be compiled in longitudinal form by the department of 9.7 economic security and released to the department of children, 9.8 families, and learning in the form of summary data that does not 9.9 identify the individual learners. The department of children, 9.10 families, and learning may release this summary data. Funding 9.11 for adult basic education programs must not be based on the 9.12 number or percentage of learners who decline to provide their 9.13 social security numbers. 9.14 Sec. 8. [124D.521] [ADULT BASIC EDUCATION POLICY REVIEW 9.15 BOARD.] 9.16 Subdivision 1. [ESTABLISHMENT.] A nine member adult basic 9.17 education policy review board is established to advise the 9.18 commissioner on program and funding policies for adult basic 9.19 education programs that receive aid under section 124D.531. The 9.20 commissioner shall appoint board members to two-year terms 9.21 beginning in October 2000. Members do not receive per diem or 9.22 reimbursement for expenses. At a minimum, the board must hold 9.23 two meetings a year. All other matters of the board's 9.24 operation, except expiration of the board under subdivision 4, 9.25 are governed by section 15.069. 9.26 Subd. 2. [MEMBERSHIP.] Seven members are appointed from a 9.27 list of candidates provided to the commissioner by the Minnesota 9.28 community education association and Literacy Minnesota by August 9.29 15 of the even-numbered years. At a minimum, the list must have 9.30 four recommended candidates from rural adult basic education 9.31 programs, four from suburban adult basic education programs, 9.32 four from urban adult basic education programs, and two 9.33 candidates from nonprofit organizations that provide adult basic 9.34 education services or provide support services to adult basic 9.35 education programs. The commissioner must appoint two members 9.36 of the board from rural programs, two members from suburban 10.1 programs, two members from urban programs, and one member from 10.2 the nonprofit group. The commissioner may appoint one former 10.3 adult basic education learner and one current adult basic 10.4 education learner to the board. Members of the legislature and 10.5 representatives of other concerned groups may be included as ex 10.6 officio members of the board. 10.7 Subd. 3. [DUTIES.] The policy review board must: 10.8 (1) advise the commissioner on a mission statement for a 10.9 statewide system of adult basic education programs that includes 10.10 educational outcomes, services, eligible learners, requirements 10.11 for teacher licensing, expectations for student advancement and 10.12 progress, and recognition of the importance of distance learning 10.13 and other technology-based instruction methods; 10.14 (2) advise the commissioner on adult basic education 10.15 standard policies and procedures; 10.16 (3) advise the commissioner on the adult basic education 10.17 curriculum and course offerings including policies to offer 10.18 computer literacy and other skill-based education through adult 10.19 basic education programs; 10.20 (4) advise the commissioner on outcome-based adult basic 10.21 education funding system that rewards and recognizes student 10.22 progress in attaining educational goals; and 10.23 (5) review statewide grant applications for supplemental 10.24 services under section 124D.522. 10.25 Subd. 4. [EXPIRATION.] The adult basic education policy 10.26 review board expires on September 30, 2003. 10.27 Sec. 9. [124D.522] [ADULT BASIC EDUCATION SUPPLEMENTAL 10.28 SERVICE GRANTS.] 10.29 (a) The commissioner in consultation with the policy review 10.30 board under section 124D.521, may make grants to nonprofit 10.31 organizations to provide services that are not offered by a 10.32 district adult basic education program or that are supplemental 10.33 to either the statewide adult basic education program or a 10.34 district's adult basic education program. The commissioner may 10.35 make grants for: 10.36 (1) staff development for adult basic education teachers 11.1 and administrators; 11.2 (2) training for volunteer tutors; 11.3 (3) training, services, and materials for serving disabled 11.4 students through adult basic education programs; 11.5 (4) statewide promotion of adult basic education services 11.6 and programs; 11.7 (5) development and dissemination of instructional and 11.8 administrative technology for adult basic education programs; 11.9 (6) adult basic education distance learning projects 11.10 including television instruction programs; 11.11 (7) programming at correctional institutions; and 11.12 (8) other supplemental services to support the mission of 11.13 adult basic education and innovative delivery of adult basic 11.14 education services. 11.15 (b) The commissioner must establish eligibility criteria 11.16 and grant application procedures. Grants under this section 11.17 must support services throughout the state, focus on educational 11.18 results for adult learners, and promote outcome-based 11.19 achievement through adult basic education programs. The 11.20 commissioner may make grants under this section from funds 11.21 specifically appropriated for supplemental service grants. A 11.22 grant to a single organization must be for two years or less and 11.23 cannot exceed $200,000 a year. Nothing in this section prevents 11.24 an approved adult basic education program from using state or 11.25 federal aid to purchase supplemental services. Twenty-five 11.26 percent of the appropriation for supplemental service grants 11.27 must be used for grants for adult basic education programs to 11.28 encourage and support innovations in adult basic education 11.29 instruction and service delivery. 11.30 Sec. 10. Minnesota Statutes 1999 Supplement, section 11.31 124D.53, subdivision 3, is amended to read: 11.32 Subd. 3. [AID.] For fiscal year 2000, adult basic 11.33 education aid for each approved program equals$2,295 for fiscal11.34year 2000 and $2,338 for fiscal year 2001 and later fiscal11.35years$1,767 times the number of full-time equivalent students 11.36 in its adult basic education program during the first prior 12.1 program year. 12.2 Sec. 11. [124D.531] [ADULT BASIC EDUCATION AID.] 12.3 Subdivision 1. [STATE TOTAL ADULT BASIC EDUCATION AID.] (a) 12.4 The state total adult basic education aid for fiscal year 2001 12.5 equals $30,047,000. The state total adult basic education aid 12.6 for later years equals: 12.7 (1) the state total adult basic education aid for the 12.8 preceding fiscal year; times 12.9 (2) the lesser of (i) 1.05, or (ii) the greater of 1.00 or 12.10 the ratio of the state total contact hours in the first prior 12.11 program year to the state total contact hours in the second 12.12 prior program year. 12.13 (b) The state total adult basic education aid excluding 12.14 basic population aid equals the difference between the amount 12.15 computed in paragraph (a) and the state total basic population 12.16 aid under subdivision 2. 12.17 Subd. 2. [BASIC POPULATION AID.] A district is eligible 12.18 for basic population aid if the district has a basic service 12.19 level approved by the commissioner under section 124D.52, 12.20 subdivision 5, or is a member of a consortium with an approved 12.21 basic service level. Basic population aid is equal to the 12.22 greater of $4,000 or $1.80 times the population of the district. 12.23 District population is determined according to section 275.14. 12.24 Subd. 3. [PROGRAM REVENUE.] Adult basic education programs 12.25 established under section 124D.52 and approved by the 12.26 commissioner are eligible for revenue under this subdivision. 12.27 For fiscal year 2001 and later, adult basic education revenue 12.28 for each approved program equals the sum of: 12.29 (1) the basic population aid under subdivision 2 for 12.30 districts participating in the program during the current 12.31 program year, plus 12.32 (2) 84 percent times the amount computed in subdivision 1, 12.33 paragraph (b), times the ratio of the contact hours for students 12.34 participating in the program during the first prior program year 12.35 to the state total contact hours during the first prior program 12.36 year, plus 13.1 (3) six percent times the amount computed in subdivision 1, 13.2 paragraph (b), times the ratio of the enrollment of students 13.3 with limited English proficiency during the prior school year in 13.4 districts participating in the program during the current 13.5 program year to the state total enrollment of students with 13.6 limited English proficiency during the prior school year in 13.7 districts participating in adult basic education programs during 13.8 the current program year, plus 13.9 (4) six percent times the amount computed in subdivision 1, 13.10 paragraph (b), times the ratio of the latest federal census 13.11 count of the number of adults aged 20 or above with no diploma 13.12 residing in the districts participating in the program during 13.13 the current program year to the latest federal census count of 13.14 the state total number of adults aged 20 or above with no 13.15 diploma residing in the districts participating in adult basic 13.16 education programs during the current program year, plus 13.17 (5) four percent times the amount computed in subdivision 13.18 1, paragraph (b), times the ratio of the number of high school 13.19 drop outs in the second prior school year from school districts 13.20 participating in the program during the current program year to 13.21 the state total number of high school drop outs in the second 13.22 prior school year from school districts participating in the 13.23 program during the current program year. 13.24 Subd. 4. [ADULT BASIC EDUCATION PROGRAM AID LIMIT.] (a) 13.25 Notwithstanding subdivisions 2 and 3, the total adult basic 13.26 education aid for a program per prior year contact hour must not 13.27 exceed four times the rate per prior year contact hour computed 13.28 under subdivision 3, clause (2), except that, for a program with 13.29 four or more member school districts and fewer than 2,000 13.30 contact hours, the total adult basic education aid per prior 13.31 year contact hour must not exceed ten times the rate per prior 13.32 year contact hour computed under subdivision 3, clause (2). 13.33 (b) For fiscal year 2002 and later, the aid for a program 13.34 under subdivision 3, clause (2), adjusted for changes in program 13.35 membership, must not exceed the aid for that program under 13.36 subdivision 3, clause (2), for the first preceding fiscal year 14.1 by more than the greater of 10 percent or $20,000. 14.2 Subd. 5. [AID GUARANTEE.] Notwithstanding subdivisions 1, 14.3 3, and 4, for fiscal year 2001, any adult basic education 14.4 program qualifying for aid under this section, that receives 14.5 less state aid than in fiscal year 2000 must receive additional 14.6 aid equal to the difference between its fiscal year 2000 aid and 14.7 its fiscal year 2001 aid. 14.8 Subd. 6. [PAYMENT OF AID TO FISCAL AGENT.] (a) Except as 14.9 provided in paragraph (b), adult basic education aid must be 14.10 paid directly to the fiscal agent of each approved program. An 14.11 approved program must have only one fiscal agent. 14.12 (b) A district that is part of a consortium may request 14.13 direct payment of basic population aid under subdivision 2. The 14.14 district must make a written request to the commissioner by June 14.15 15 for aid payments the following fiscal year. The request must 14.16 include certification that: 14.17 (1) the district will deposit direct aid payments in a 14.18 separate adult basic education account; and 14.19 (2) the district will use direct aid payments only for 14.20 adult basic education instruction. 14.21 Subd. 7. [PROGRAM AUDIT.] Programs that receive aid under 14.22 this section must maintain records that support the aid 14.23 payments. The commissioner may audit these records upon request. 14.24 The commissioner must establish procedures for conducting fiscal 14.25 audits of adult basic education programs. Beginning with fiscal 14.26 year 2001, the commissioner must, at a minimum, audit five adult 14.27 education programs each year. The programs must be selected 14.28 from a list of all programs that receive aid under this section 14.29 organized by the number of hours of instruction in the prior 14.30 fiscal year. Each year the audited programs must include one 14.31 program with 100,000 or more hours of instruction, one program 14.32 with 50,000 to 100,000 hours of instruction, and three programs 14.33 with less than 50,000 hours of instruction. The commissioner 14.34 must establish procedures to reconcile any discrepancies between 14.35 aid payments based on information reported to the commissioner 14.36 and aid estimates based on a program audit. 15.1 Subd. 8. [FISCAL REPORTS.] Programs that receive aid under 15.2 this section must submit an annual report to the commissioner 15.3 that includes revenue and expense reports for each district and 15.4 provider in the program including instructional services offered 15.5 in partnership with businesses and nonprofit organizations. 15.6 Sec. 12. Minnesota Statutes 1998, section 245A.14, 15.7 subdivision 4, is amended to read: 15.8 Subd. 4. [SPECIAL FAMILY DAY CARE HOMES.] Nonresidential 15.9 child care programs serving 14 or fewer children that are 15.10 conducted at a location other than the license holder's own 15.11 residence shall be licensed under this section and the rules 15.12 governing family day care or group family day care if: 15.13 (a) the license holder is the primary provider of care and 15.14 the nonresidential child care program is conducted in a dwelling 15.15 that is located on a residential lot;or15.16 (b) the license holder is an employer who may or may not be 15.17 the primary provider of care, and the purpose for the child care 15.18 program is to provide child care services to children of the 15.19 license holder's employees; or 15.20 (c) the license holder is a church or religious 15.21 organization. 15.22 Sec. 13. Minnesota Statutes 1998, section 245A.14, is 15.23 amended by adding a subdivision to read: 15.24 Subd. 8. [EXPERIENCED AIDES; CHILD CARE CENTERS.] (a) An 15.25 individual employed as an aide at a child care center may work 15.26 with children without being directly supervised for up to 25 15.27 percent of the individual's daily work shift if: 15.28 (1) a teacher is in the building; 15.29 (2) the individual has received first aid training within 15.30 the last three years; and 15.31 (3) the individual has at least 4,160 hours of child care 15.32 experience as defined in Minnesota Statutes, section 245A.02, 15.33 subdivision 6b. 15.34 (b) The use of an experienced aide working without direct 15.35 supervision under paragraph (a) is limited to 25 percent of each 15.36 classroom's daily hours of operation. 16.1 (c) A child care center that uses experienced aides under 16.2 this subdivision must notify the commissioner once per year. 16.3 The notification must indicate the approximate number of hours 16.4 per classroom per month that this subdivision is used. Upon 16.5 enrollment and once each year, child care centers must report to 16.6 parents or guardians if they use experienced aides under this 16.7 subdivision. 16.8 (d) This subdivision sunsets June 30, 2003. 16.9 Sec. 14. Minnesota Statutes 1998, section 245A.14, is 16.10 amended by adding a subdivision to read: 16.11 Subd. 9. [INSERVICE TRAINING; CHILD CARE CENTERS.] (a) A 16.12 teacher at a child care center must complete one percent of 16.13 working hours of inservice training annually if the teacher: 16.14 (1) possesses a baccalaureate or masters degree in early 16.15 childhood education, or school age care; 16.16 (2) is licensed in Minnesota as a prekindergarten teacher, 16.17 an early childhood educator, a kindergarten to sixth grade 16.18 teacher with a prekindergarten specialty, an early childhood 16.19 special education teacher, or an elementary teacher with a 16.20 kindergarten endorsement; or 16.21 (3) possesses a baccalaureate degree with a Montessori 16.22 certificate. 16.23 (b) A teacher or assistant teacher at a child care center 16.24 must complete 1-1/2 percent of working hours of inservice 16.25 training annually if the individual is: 16.26 (1) a registered nurse or licensed practical nurse with 16.27 experience working with infants; 16.28 (2) possesses a Montessori certificate, a technical college 16.29 certificate, or a child development associate certificate; or 16.30 (3) possesses an associate of arts degree in early 16.31 childhood education, a baccalaureate degree in child 16.32 development, or a technical college diploma. 16.33 (c) Except as provided in paragraphs (a) and (b), all other 16.34 teachers, assistant teachers, or aides must have two percent of 16.35 working hours of inservice training annually. 16.36 (d) The number of required training hours may be prorated 17.1 for individuals not employed full time or for an entire year. 17.2 This subdivision supersedes Minnesota Rules, part 9503.0035, 17.3 subpart 4, item B, for teachers, assistant teachers, and aides. 17.4 The remainder of Minnesota Rules, part 9503.0035, subpart 4, 17.5 remains in effect unless superseded by other law. 17.6 Sec. 15. Laws 1998, First Special Session chapter 1, 17.7 article 1, section 10, subdivision 1, as amended by Laws 1999, 17.8 chapter 205, article 4, section 8, is amended to read: 17.9 Subdivision 1. [INITIAL ELIGIBILITY.] To be eligible for 17.10 state or TANF matching funds in the family assets for 17.11 independence initiative, a household musthave income at or17.12below 185 percent of the federal poverty level and assets of17.13$15,000 or less. An individual who is a dependent of another17.14person for federal income tax purposes may not be a separate17.15eligible household for purposes of establishing a family asset17.16account. An individual who is a debtor for a judgment resulting17.17from nonpayment of a court-ordered child support obligation may17.18not participate in this program. Households accessing TANF17.19matching funds are subject to the MFIP definition of household17.20under Minnesota Statutes, section 256J.08, subdivision 46.17.21Income and assets are determined according to eligibility17.22guidelines for the energy assistance programmeet the 17.23 eligibility requirements of the federal Assets for Independence 17.24 Act, Public Law Number 105-285, in Title IV, section 408 of that 17.25 act. 17.26 Sec. 16. Laws 1998, First Special Session chapter 1, 17.27 article 1, section 11, subdivision 2, as amended by Laws 1999, 17.28 chapter 205, article 4, section 9, is amended to read: 17.29 Subd. 2. [VENDOR PAYMENT OF WITHDRAWN FUNDS.] Upon receipt 17.30 of transferred custodial account funds, thefiduciary17.31organizationfiscal agent must make a direct payment to the 17.32 vendor of the goods or services for the permissible use. 17.33 Sec. 17. Laws 1999, chapter 205, article 1, section 65, is 17.34 amended to read: 17.35 Sec. 65. [ADDITIONAL EARLY CHILDHOOD FAMILY EDUCATION AID; 17.36 FISCAL YEAR 2000 AND FISCAL YEAR 2001.] 18.1 A district that complies with Minnesota Statutes, section 18.2 124D.13, shall receive additional early childhood family 18.3 education aid for fiscal year 2000 and fiscal year 2001 equal to 18.4 $2.46 times the greater of: 18.5 (1) 150; or 18.6 (2) the number of people under five years of age residing 18.7 in the school district on October 1 of the previous school 18.8 year. The additional early childhood family education aid may 18.9 be used only for early childhood family education programs. 18.10 Sec. 18. Laws 1999, chapter 205, article 1, section 71, 18.11 subdivision 3, is amended to read: 18.12 Subd. 3. [EARLY CHILDHOOD FAMILY EDUCATION AID.] For early 18.13 childhood family education aid according to Minnesota Statutes, 18.14 section 124D.135: 18.15$20,485,000$20,109,000 ..... 2000 18.16$19,420,000$21,107,000 ..... 2001 18.17 The 2000 appropriation includes $1,390,000 for 1999 and 18.18$19,095,000$18,719,000 for 2000. 18.19 The 2001 appropriation includes$2,122,000$2,079,000 for 18.20 2000 and$17,298,000$19,028,000 for 2001. 18.21 Any balance in the first year does not cancel but is 18.22 available in the second year. 18.23 Sec. 19. Laws 1999, chapter 205, article 1, section 71, 18.24 subdivision 7, is amended to read: 18.25 Subd. 7. [SCHOOL AGE CARE AID.] For extended day aid 18.26 according to Minnesota Statutes, section 124D.22: 18.27 $274,000 ..... 2000 18.28$216,000$245,000 ..... 2001 18.29 The 2000 appropriation includes $30,000 for 1999 and 18.30 $244,000 for 2000. 18.31 The 2001 appropriation includes $27,000 for 2000 and 18.32$189,000$218,000 for 2001. 18.33 Any balance in the first year does not cancel but is 18.34 available in the second year. 18.35 Sec. 20. Laws 1999, chapter 205, article 1, section 71, 18.36 subdivision 9, is amended to read: 19.1 Subd. 9. [MFIP CHILD CARE.] For child care assistance 19.2 according to Minnesota Statutes, section 119B.05: 19.3$86,318,000$66,524,000 ..... 2000 19.4$88,443,000$78,606,000 ..... 2001 19.5 Any balance in the first year does not cancel but is 19.6 available in the second year. 19.7 Sec. 21. Laws 1999, chapter 205, article 2, section 4, 19.8 subdivision 2, is amended to read: 19.9 Subd. 2. [FAMILY COLLABORATIVES.] For family 19.10 collaboratives according toLaws 1995, First Special Session19.11chapter 3, article 4, section 29, subdivision 10Minnesota 19.12 Statutes, section 124D.23: 19.13 $4,777,000 ..... 2000 19.14$2,535,000$2,435,000 ..... 2001 19.15 No new family services collaboratives shall be funded with 19.16 this appropriation after June 30, 1999. The general fund base 19.17 appropriation for fiscal year 2002 is $1,852,000 and for fiscal 19.18 year 2003 is $1,245,000. 19.19 Any balance in the first year does not cancel but is 19.20 available in the second year. 19.21 Sec. 22. Laws 1999, chapter 205, article 2, section 4, 19.22 subdivision 3, is amended to read: 19.23 Subd. 3. [COMMUNITY EDUCATION AID.] For community 19.24 education aid according to Minnesota Statutes, section 124D.20: 19.25 $14,136,000 ..... 2000 19.26$14,696,000$15,274,000 ..... 2001 19.27 The 2000 appropriation includes $160,000 for 1999 and 19.28 $13,976,000 for 2000. 19.29 The 2001 appropriation includes $1,552,000 for 2000 and 19.30$13,144,000$13,722,000 for 2001. 19.31 Any balance in the first year does not cancel but is 19.32 available in the second year. 19.33 Sec. 23. Laws 1999, chapter 205, article 2, section 4, 19.34 subdivision 4, is amended to read: 19.35 Subd. 4. [ADULTS WITH DISABILITIES PROGRAM AID.] For 19.36 adults with disabilities programs according to Minnesota 20.1 Statutes, section 124D.56: 20.2 $670,000 ..... 2000 20.3$670,000$702,000 ..... 2001 20.4 Any balance in the first year does not cancel but is 20.5 available in the second year. 20.6 Of the 2001 amount, $32,000 must be used to reinstate 20.7 funding for the adults with disabilities pilot programs that 20.8 were started in fiscal year 1998 or fiscal year 1999. 20.9 Notwithstanding Minnesota Statutes, section 124D.56, subdivision 20.10 3, pilot programs under this section may not levy for the adults 20.11 with disabilities program revenue. The reinstated programs must 20.12 report to the department of children, families, and learning by 20.13 January 15, 2001, with recommendations for expanding this 20.14 program statewide. This is a one-time appropriation and is not 20.15 added to the base. 20.16 Sec. 24. Laws 1999, chapter 205, article 3, section 5, 20.17 subdivision 9, is amended to read: 20.18 Subd. 9. [MALE RESPONSIBILITY AND FATHERING GRANTS.] For 20.19 grants according to Minnesota Statutes, section 124D.33: 20.20 $250,000 ..... 2000 20.21$250,000.....200120.22 Any balance in the first year does not cancel but is 20.23 available in the second year. 20.24 Sec. 25. Laws 1999, chapter 205, article 4, section 12, 20.25 subdivision 5, is amended to read: 20.26 Subd. 5. [ADULT BASIC EDUCATION AID.] For adult basic 20.27 education aid according to Minnesota Statutes, section 124D.52, 20.28 in fiscal year 2000 and Minnesota Statutes, section 124D.53 in 20.29 fiscal year 2001: 20.30 $20,132,000 ..... 2000 20.31$22,477,000$29,063,000 ..... 2001 20.32 The 2000 appropriation includes $1,227,000 for 1999 and 20.33 $18,905,000 for 2000. 20.34 The 2001 appropriation includes $2,101,000 for 2000 and 20.35$20,376,000$26,962,000 for 2001. 20.36 Sec. 26. Laws 1999, chapter 205, article 4, section 12, 21.1 subdivision 6, is amended to read: 21.2 Subd. 6. [ADULT BASIC EDUCATION BASIC POPULATION AID.] For 21.3 basic population aid for eligible districts under section 7: 21.4$1,960,000$1,973,000 ..... 2000 21.5 Notwithstanding Minnesota Statutes, section 127A.45, 21.6 subdivision 12, 100 percent of this appropriation is for fiscal 21.7 year 2000. 21.8 Any balance in the first year does not cancel but is 21.9 available in the second year. This is a one-time appropriation. 21.10 Sec. 27. Laws 1999, chapter 205, article 4, section 12, 21.11 subdivision 7, is amended to read: 21.12 Subd. 7. [ADULT GRADUATION AID.] For adult graduation aid 21.13 according to Minnesota Statutes, section 124D.54: 21.14$3,184,000$2,760,000 ..... 2000 21.15$4,732,000$3,031,000 ..... 2001 21.16 The 2000 appropriation includes$258,000$258,000 for 1999 21.17 and$2,926,000$2,502,000 for 2000. 21.18 The 2001 appropriation includes$325,000$278,000 for 2000 21.19 and$4,407,000$2,753,000 for 2001. 21.20 Sec. 28. [COMPETENCY-BASED ADULT BASIC EDUCATION AND 21.21 ENGLISH AS A SECOND LANGUAGE LICENSE.] 21.22 The board of teaching must convene a task force to develop 21.23 a competency-based license for teachers of adult basic education 21.24 classes and English as a second language classes. The 21.25 competency-based license must be an alternative to the current 21.26 licensing requirements. By January 15, 2002, the board of 21.27 teaching must present their recommendations to the committees of 21.28 the legislature responsible for teacher licensing and funding of 21.29 adult basic education programs including recommendations for 21.30 implementing competency-based licensing for teachers of adult 21.31 learners. 21.32 Sec. 29. [ENERGY ASSISTANCE PROGRAM.] 21.33 (a) The commissioner of economic security shall establish 21.34 policies and procedures to address the findings in the 21.35 department of administration's evaluation of Minnesota's energy 21.36 assistance program published in December 1999. 22.1 (b) The commissioner of economic security shall develop: 22.2 (1) outcome measures, in accordance with federal 22.3 recommendations, by which to evaluate subgrantee performance and 22.4 the program as a whole; 22.5 (2) methods to identify the eligible population for the 22.6 energy assistance program; 22.7 (3) procedures to improve program consistency across the 22.8 state. This shall address program start and end dates, 22.9 eligibility determination, eligibility verification, and 22.10 application and payment processing times; and 22.11 (4) improved internal management practices, including 22.12 program oversight, evaluation and auditing of the service 22.13 delivery agencies, computer software system, and overall 22.14 management. The commissioner shall also include proposals for 22.15 the use of technology to provide for the most cost-effective 22.16 service delivery. 22.17 Sec. 30. [REPORT.] 22.18 The commissioner of economic security shall submit a report 22.19 to the legislature detailing the costs and benefits of operating 22.20 the energy assistance program. The report must be submitted to 22.21 the senate jobs, energy and community development committee, and 22.22 the house jobs and economic development policy committee by 22.23 January 30, 2001. 22.24 Sec. 31. [TRANSFER OF ENERGY ASSISTANCE AND WEATHERIZATION 22.25 RESPONSIBILITIES.] 22.26 Energy assistance and weatherization responsibilities under 22.27 Minnesota Statutes, sections 119A.40, 119A.41, 119A.42, and 22.28 119A.425 are transferred from the department of children, 22.29 families, and learning to the department of economic security. 22.30 EFFECTIVE DATE: This section is effective the day 22.31 following final enactment. 22.32 Sec. 32. [SOCIAL SERVICE CHILD CARE POOL FOR MFIP CHILD 22.33 CARE.] 22.34 (a) The commissioner of children, families, and learning 22.35 shall use funds appropriated under section 40, subdivision 2, to 22.36 establish a MFIP social services child care pool to provide 23.1 child care assistance for eligible MFIP families participating 23.2 in social service activities under paragraph (b) as an approved 23.3 activity. 23.4 Any unspent funds in the MFIP social services child care 23.5 pool must be used for child care assistance under Minnesota 23.6 Statutes, section 119B.03. The commissioner must notify the 23.7 chairs of the family and early childhood finance committees in 23.8 the house and the senate if expenditures from the MFIP social 23.9 services child care pool are expected to exceed the amount of 23.10 money available. 23.11 (b) To be eligible for social service child care 23.12 assistance, an MFIP participant must be participating in 23.13 chemical dependency social services or mental health social 23.14 services as an approved activity in the participant's employment 23.15 plan or job search support plan under Minnesota Statutes, 23.16 section 256J.52 or work first under Minnesota Statutes, chapter 23.17 256K. Child care assistance may be provided to an eligible MFIP 23.18 participant for the amount of time necessary to participate in 23.19 the approved social service plus reasonable travel time. 23.20 (c) The county providing child care assistance must notify 23.21 the commissioner through the regular reporting process of any 23.22 family that meets the criteria of the MFIP social services child 23.23 care assistance pool. 23.24 This section expires on June 30, 2003. 23.25 Sec. 33. [EXPEDITED APPLICATION FOR MINOR STUDENTS.] 23.26 The commissioner of children, families, and learning, as a 23.27 component of the training for counties to administer child care 23.28 assistance under Minnesota Statutes, chapter 119B, must provide 23.29 technical assistance on ways to expedite and streamline the 23.30 application process for minor parents participating in 23.31 school-based child care. The commissioner must make child care 23.32 assistance information and applications available to 23.33 school-based adolescent parenting programs so eligible minor 23.34 parents are able to complete their high school education. 23.35 Sec. 34. [INTENSIVE ESL AND CITIZENSHIP GRANTS.] 23.36 The commissioner of children, families, and learning shall 24.1 establish a reimbursement grant program to fund intensive 24.2 English as a second language (ESL) programs for eligible adults 24.3 who participate in the MFIP program under Minnesota Statutes, 24.4 chapter 256J, with funds appropriated under section 39, 24.5 subdivision 3. Intensive ESL programming must provide intensive 24.6 instruction for MFIP participants who are making inadequate 24.7 literacy progress as measured by a standard assessment test. 24.8 The intensive instruction must be focused on participants' 24.9 gaining sufficient literacy to achieve self-sufficiency through 24.10 employment. Grant recipients may also offer citizenship 24.11 programs for qualified noncitizens under United States Code, 24.12 title 8, section 1611 et. seq. 24.13 Organizations eligible for grants under this section 24.14 include adult basic education programs, school districts, 24.15 post-secondary institutions, and nonprofit or community-based 24.16 organizations or other private organizations with experience in 24.17 providing English language and citizenship instruction to 24.18 non-English speaking immigrants and refugees. Grant 24.19 applications must contain information required by the 24.20 commissioner in the form prescribed by the commissioner. At a 24.21 minimum, the application must document experience in literacy 24.22 and citizenship programs serving immigrants and refugees, 24.23 describe fiscal accounting systems and reporting capacity, 24.24 ensure that administrative expenses are limited to five percent 24.25 of grant funds, and provide a description of the proposed 24.26 instructional services and training plans. Funds must be paid 24.27 to programs on a reimbursement basis. The intensive ESL and 24.28 citizenship grant program expires on June 30, 2003. 24.29 Sec. 35. [INSTITUTIONAL ADULT BASIC EDUCATION PROGRAMS.] 24.30 Based on the fiscal reports under section 11, the 24.31 commissioner shall evaluate the reimbursement for adult basic 24.32 education instruction provided by public nonprofit institutions 24.33 and make recommendations to the legislature. 24.34 Sec. 36. [CHILD AND ADULT CARE FOOD PROGRAM.] 24.35 The commissioner of the department of children, families, 24.36 and learning must request a waiver from the department of 25.1 agriculture so that child care programs that are licensed under 25.2 Minnesota Statutes, section 245A.14, subdivision 4, are allowed 25.3 to participate in the federal child and adult care food program 25.4 under United States Code, title 42, section 1766. 25.5 Sec. 37. [FAMILY PROVIDER PROPORTIONAL PARTICIPATION.] 25.6 The commissioner of the department of children, families, 25.7 and learning must ensure that licensed family child care 25.8 providers have an opportunity to participate in policy 25.9 discussions that impact child care. The commissioner must seek 25.10 proportional participation and input from family providers 25.11 including, but not limited to, participation on task forces. 25.12 Sec. 38. [APPROPRIATIONS.] 25.13 Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND 25.14 LEARNING.] The sums indicated in this section are appropriated 25.15 from the general fund to the department of children, families, 25.16 and learning for the fiscal years designated. 25.17 Subd. 2. [ADULT BASIC EDUCATION SUPPLEMENTAL SERVICE 25.18 GRANTS.] For adult basic education supplemental service grants 25.19 according to Minnesota Statutes, section 124D.522: 25.20 $ 700,000 ..... 2001 25.21 This is a base appropriation for fiscal years 2002 and 2003. 25.22 Subd. 3. [ADULT BASIC EDUCATION ADMINISTRATION.] For 25.23 administration of the state adult basic education program 25.24 including auditing, technical assistance, reporting 25.25 requirements, and other administrative responsibilities under 25.26 this article: 25.27 $100,000 ..... 2001 25.28 This appropriation is added to the fiscal year 2002 and 25.29 2003 base. 25.30 Subd. 4. [HOUSING COLLABORATION.] For a grant to the city 25.31 of St. Louis Park for the Meadowbrook Collaborative Housing 25.32 Project to enhance youth outreach services and to provide 25.33 educational and recreational programming for at-risk youth. The 25.34 collaborative must include a cross section of public and private 25.35 sector community representatives. 25.36 $ 25,000 ..... 2001 26.1 This is a one-time appropriation. 26.2 Subd. 5. [ADMINISTRATION.] For the administrative expenses 26.3 of programs under section 39, including the amount necessary for 26.4 a program under section 39, subdivision 2, to draw down federal 26.5 funds in fiscal year 2001. 26.6 $ 50,000 ..... 2001 26.7 This is a one-time appropriation. 26.8 Sec. 39. [TANF APPROPRIATIONS.] 26.9 Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND 26.10 LEARNING.] The sums indicated in this section for fiscal years 26.11 2001 to 2003 are appropriated to the commissioner of human 26.12 services from the federal Temporary Assistance for Needy 26.13 Families (TANF) block grant funds authorized under United States 26.14 Code, title 42, section 601 et seq., and awarded in federal 26.15 fiscal years 2000 to 2002, and are transferred to the department 26.16 of children, families, and learning for the fiscal years 26.17 indicated for use as provided in this section. Appropriations 26.18 under this section are one-time appropriations and are not added 26.19 to the base. 26.20 Subd. 2. [MALE RESPONSIBILITY AND FATHERING GRANTS.] For 26.21 grants according to Minnesota Statutes, section 124D.33: 26.22 $250,000 ..... 2001 26.23 $250,000 ..... 2002 26.24 $250,000 ..... 2003 26.25 Subd. 3. [INTENSIVE ESL AND CITIZENSHIP GRANTS.] For 26.26 intensive English as a second language (ESL) and citizenship 26.27 grants for eligible MFIP participants under section 34: 26.28 $1,837,000 ..... 2001 26.29 $1,000,000 ..... 2002 26.30 $1,000,000 ..... 2003 26.31 A balance may be carried forward one fiscal year. 26.32 Subd. 4. [TRANSITIONAL HOUSING PROGRAMS.] For 26.33 reimbursement grants to transitional housing programs under 26.34 Minnesota Statutes, section 119A.43: 26.35 $1,000,000 ..... 2001 26.36 $1,078,000 ..... 2002 27.1 Any balance remaining in 2002 may be carried forward one 27.2 fiscal year. 27.3 These appropriations must be used for up to four months of 27.4 transitional housing for families with incomes below 200 percent 27.5 of the federal poverty guidelines. Payment must be made to 27.6 programs on a reimbursement basis. 27.7 Sec. 40. [FEDERAL TANF TRANSFERS.] 27.8 Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND 27.9 LEARNING.] The sums indicated in this section are transferred 27.10 from the federal TANF fund to the child care and development 27.11 fund and appropriated to the department of children, families, 27.12 and learning for the fiscal years designated. The commissioner 27.13 shall ensure that all transferred funds are expended in 27.14 accordance with the child care and development fund regulations 27.15 and that the maximum allowable transferred funds are used for 27.16 the program in this section. Appropriations under this section 27.17 are one-time appropriations and are not added to the base. 27.18 Subd. 2. [SOCIAL SERVICE CHILD CARE POOL FOR MFIP CHILD 27.19 CARE.] For social service child care costs of eligible MFIP 27.20 participants under section 32: 27.21 $3,233,000 ..... 2001 27.22 $3,297,000 ..... 2002 27.23 $2,865,000 ..... 2003 27.24 A balance may be carried forward one fiscal year. Any 27.25 amount remaining in fiscal year 2003 that is not needed for 27.26 social service child care must be used for assistance under 27.27 Minnesota Statutes, section 119B.03. 27.28 Subd. 3. [TRANSITION YEAR FAMILIES.] To provide 27.29 uninterrupted assistance under Minnesota Statutes, section 27.30 119B.03, for families completing transition year child care 27.31 assistance: 27.32 $1,080,000 ..... 2001 27.33 $3,620,000 ..... 2002 27.34 $4,040,000 ..... 2003 27.35 A balance may be carried forward one fiscal year. Any 27.36 amount remaining in fiscal year 2003 that is not needed for 28.1 uninterrupted child care must be used for assistance under 28.2 Minnesota Statutes, section 119B.03. 28.3 Sec. 41. [INSTRUCTION TO REVISOR.] 28.4 The revisor of statutes shall renumber each section of 28.5 Minnesota Statutes listed in column A with the number listed in 28.6 column B. The revisor shall also make necessary cross-reference 28.7 changes consistent with the renumbering. 28.8 Column A Column B 28.9 119A.40 268.985 28.10 119A.41 268.986 28.11 119A.42 268.987 28.12 119A.425 268.989 28.13 Sec. 42. [REPEALER.] 28.14 (a) Minnesota Statutes 1998, section 124D.53, is repealed. 28.15 (b) Laws 1998, First Special Session chapter 1, article 1, 28.16 section 10, subdivision 2, as amended by Laws 1999, chapter 205, 28.17 article 4, section 8, is repealed. 28.18 ARTICLE 2 28.19 KINDERGARTEN THROUGH GRADE 12: GENERAL EDUCATION 28.20 Section 1. Minnesota Statutes 1998, section 123B.75, 28.21 subdivision 5, is amended to read: 28.22 Subd. 5. [LEVY RECOGNITION.] (a) "School district tax 28.23 settlement revenue" means the current, delinquent, and 28.24 manufactured home property tax receipts collected by the county 28.25 and distributed to the school district. 28.26 (b) In June of each year, the school district must 28.27 recognize as revenue, in the fund for which the levy was made, 28.28 the lesser of: 28.29 (1) the May, June, and July school district tax settlement 28.30 revenue received in that calendar year; or 28.31 (2) the sum of: 28.32 (i) 31 percent of the referendum levy certified in the 28.33 prior calendar year according to section 126C.17, subdivision 9; 28.34 plus 28.35 (ii) the entire amount of the levy certified in the prior 28.36 calendar year according to sections 124D.86, subdivision 4, for 29.1 school districts receiving revenue under 124D.86, subdivision 3, 29.2 clauses (1), (2) and (3); 126C.41, subdivisions 1, 2, and 3, 29.3 paragraphs (4), (5), and (6); 126C.43, subdivision 2; and 29.4 126C.48, subdivision 6. 29.5 Sec. 2. Minnesota Statutes 1999 Supplement, section 29.6 124D.11, subdivision 1, is amended to read: 29.7 Subdivision 1. [GENERAL EDUCATION REVENUE.] (a) General 29.8 education revenue must be paid to a charter school as though it 29.9 were a district. The general education revenue for each 29.10 adjusted marginal cost pupil unit is the state average general 29.11 education revenue per pupil unit, plus the referendum 29.12 equalization aid allowance in the pupil's district of residence, 29.13 minus an amount equal to the product of the formula allowance 29.14 according to section 126C.10, subdivision 2, times .0485, 29.15 calculated without basic skills revenue, transportation sparsity 29.16 revenue, and the transportation portion of the transition 29.17 revenue adjustment, plus basic skills revenue as though the 29.18 school were a school district. 29.19 (b) Notwithstanding paragraph (a), for charter schools in 29.20 the first year of operation, general education revenue shall be 29.21 computed using the number of adjusted pupil units in the current 29.22 fiscal year. 29.23 EFFECTIVE DATE: This section is effective the day 29.24 following final enactment. 29.25 Sec. 3. Minnesota Statutes 1999 Supplement, section 29.26 124D.65, subdivision 4, is amended to read: 29.27 Subd. 4. [STATE TOTAL LEP REVENUE.] (a) The state total 29.28 limited English proficiency programs revenue for fiscal year 29.29 2000 equals $27,454,000.The state total limited English29.30proficiency programs revenue for fiscal year 2001 equals29.31$31,752,000.29.32 (b) The state total limited English proficiency programs 29.33 revenue for later fiscal years equals: 29.34 (1) the state total limited English proficiency programs 29.35 revenue for the preceding fiscal year; times 29.36 (2) the program growth factor under section 125A.76 30.1 subdivision 1; times 30.2 (3) the ratio of the state total number of pupils with 30.3 limited English proficiency for the current fiscal year to the 30.4 state total number of pupils with limited English proficiency 30.5 for the preceding fiscal year. 30.6 EFFECTIVE DATE: This section is effective the day 30.7 following final enactment. 30.8 Sec. 4. Minnesota Statutes 1999 Supplement, section 30.9 124D.86, subdivision 1, is amended to read: 30.10 Subdivision 1. [USE OF THE REVENUE.] Integration revenue 30.11 under this section must be used for programs established under a 30.12 desegregation plan filed with the department of children, 30.13 families, and learning according to Minnesota Rules, parts 30.14 3535.0100 to 3535.0180, or under court order, to increase. The 30.15 revenue must be used to create or enhance learning opportunities 30.16and reduce the learning gap between learners living in high30.17concentrations of poverty and their peerswhich are designed to 30.18 provide opportunities for students to have increased interracial 30.19 contacts through classroom experiences, staff initiatives, and 30.20 other educationally related programs. 30.21 Sec. 5. Minnesota Statutes 1998, section 124D.86, is 30.22 amended by adding a subdivision to read: 30.23 Subd. 1a. [BUDGET APPROVAL PROCESS.] Before a district 30.24 receives any revenue under subdivision 3, clause (4), the 30.25 district must submit to the department of children, families, 30.26 and learning, for its review and approval, a budget detailing 30.27 the costs of the desegregation/integration plan filed under 30.28 Minnesota Rules, parts 3535.0100 to 3535.0180. Notwithstanding 30.29 chapter 14, the department may develop criteria for budget 30.30 approval. The criteria developed by the department should 30.31 address, at a minimum, the following: 30.32 (1) budget items that cannot be approved unless they are 30.33 part of any overall desegregation plan approved by the district 30.34 for isolated sites or by the multidistrict collaboration council 30.35 and participating individual members; 30.36 (2) a budget that must indicate how revenue expenditures 31.1 will be used specifically to support increased opportunities for 31.2 interracial contact; 31.3 (3) components of the budget to be considered by the 31.4 department, including staffing, curriculum, transportation, 31.5 facilities, materials, and equipment and reasonable planning 31.6 costs, as determined by the department; and 31.7 (4) if plans are proposed to enhance existing programs, a 31.8 total budget reflecting the appropriation for the program that 31.9 includes the part funded using integration revenue and the part 31.10 funded using other revenues. 31.11 Sec. 6. Minnesota Statutes 1998, section 124D.86, is 31.12 amended by adding a subdivision to read: 31.13 Subd. 1b. [PLAN COMPONENTS.] Plans submitted by each 31.14 district under Minnesota Rules, parts 3535.0160 and 3535.0170, 31.15 must be approved by the district's board before integration 31.16 revenue will be awarded. If a district is applying for revenue 31.17 for a plan that is part of a multidistrict council, the 31.18 individual district shall not receive revenue unless it ratifies 31.19 the plan adopted by its multidistrict council or approves a 31.20 modified plan with a written explanation of any modifications. 31.21 Each plan shall contain: 31.22 (1) an identification of the integration issues at the 31.23 sites or districts covered by Minnesota Rules, parts 3535.0100 31.24 to 3535.0180; 31.25 (2) a description of the community outreach that preceded 31.26 the integration plan, such that the commissioner can determine 31.27 whether the membership of the planning councils complied with 31.28 the requirements of Minnesota Rules, parts 3535.0100 to 31.29 3535.0180; and 31.30 (3) the specific goals of the integration plan. 31.31 By June 30 of the subsequent fiscal year, each district shall 31.32 report to the commissioner in writing about the extent to which 31.33 the integration goals identified in the plan were met. 31.34 Sec. 7. Minnesota Statutes 1999 Supplement, section 31.35 124D.86, subdivision 3, is amended to read: 31.36 Subd. 3. [INTEGRATION REVENUE.] For fiscal year 2000 and 32.1 later fiscal years, integration revenue equals the following 32.2 amounts: 32.3 (1) for independent school district No. 709, Duluth, $207 32.4 times the adjusted pupil units for the school year; 32.5 (2) for independent school district No. 625, St. Paul, $446 32.6 times the adjusted pupil units for the school year; 32.7 (3) for special school district No. 1, Minneapolis, $536 32.8 times the adjusted pupil units for the school year; and 32.9 (4) for a district not listed in clause (1), (2), or (3) 32.10 that is required to implement a plan according to the 32.11 requirements of Minnesota Rules, parts 3535.0100 to 32.12 3535.0180,as proposed in 23 State Register 1344, December 7,32.131998,the lesser of 32.14 (i) the actual cost of implementing the plan during the 32.15 fiscal year minus the aid received under subdivision 6, or 32.16 (ii) $93 times the adjusted pupil units for the school year. 32.17 Any money received by districts in clauses (1) to (3) which 32.18 exceeds the amount received in fiscal year 2000 shall be subject 32.19 to the budget requirements in subdivision 1a. 32.20 Sec. 8. Minnesota Statutes 1998, section 124D.86, 32.21 subdivision 6, is amended to read: 32.22 Subd. 6. [ALTERNATIVE ATTENDANCE PROGRAMS.] (a) The 32.23 integration aid under subdivision 5 must be adjusted for each 32.24 pupil residing in a district eligible for integration revenue 32.25 under subdivision 3, clause (1), (2), or (3), and attending a 32.26 nonresident district under sections 123A.05 to 123A.08, 124D.03, 32.27 124D.06, 124D.07, and 124D.08, that is not eligible for 32.28 integration revenue under subdivision 3, clause (1), (2), or 32.29 (3), and has implemented a plan under Minnesota Rules, parts 32.30 3535.0100 to 3535.0180, if the enrollment of the pupil in the 32.31 nonresident district contributes to desegregation or integration 32.32 purposes. The adjustments must be made according to this 32.33 subdivision. 32.34 (b)Aid paid to the district of the pupil's residence must32.35be reduced by an amount equal to the revenue per resident pupil32.36unit of the resident district times the number of resident pupil33.1units attributable to the pupil for the time the pupil is33.2enrolled in a nonresident district.33.3(c)Aid paid to a district serving nonresidents must be 33.4 increased by an amount equal to theaid reduction to the33.5resident district under paragraphs (b) and (d)revenue per pupil 33.6 unit of the resident district under subdivision 3, clause (1), 33.7 (2), or (3), minus the revenue attributable to the pupil in the 33.8 nonresident district under subdivision 3, clause (4), for the 33.9 time the pupil is enrolled in the nonresident district. 33.10(d) If the amount of the reduction to be made from the aid33.11of a district is greater than the amount of aid otherwise due33.12the district, the excess reduction must be made from other state33.13aids due the district.33.14 EFFECTIVE DATE: This section is effective the day 33.15 following final enactment. 33.16 Sec. 9. Minnesota Statutes 1999 Supplement, section 33.17 124D.87, is amended to read: 33.18 124D.87 [INTERDISTRICT DESEGREGATION OR INTEGRATION 33.19 TRANSPORTATION AID.] 33.20 (a) A district that provides transportation of pupils to 33.21 and from an interdistrict program for desegregation or 33.22 integration purposes is eligible for state aid tocover33.23 reimburse the additional costs of transportation during the 33.24 preceding fiscal year. 33.25 (b) A district in the metropolitan area may apply to the 33.26 commissioner for state aid tocoverreimburse the costs of 33.27 transporting pupils who are enrolled under section 33.28 124D.03 during the preceding fiscal year if the enrollment of 33.29 the student in the nonresident district contributes to 33.30 desegregation or integration purposes. The commissioner shall 33.31 develop the form and manner of applications for state aid, the 33.32 criteria to be used to determine when transportation is for 33.33 desegregation or integration purposes, and the accounting 33.34 procedure to be used to determine excess costs. In determining 33.35 aid amounts, the commissioner shall consider other revenue 33.36 received by the district for transportation for desegregation or 34.1 integration purposes. 34.2(c) Aid must be paid under paragraph (b) only if aid34.3amounts under paragraph (a) have been fully funded.34.4 EFFECTIVE DATE: This section is effective July 1, 2001. 34.5 Sec. 10. Minnesota Statutes 1999 Supplement, section 34.6 126C.052, is amended to read: 34.7 126C.052 [CLASS SIZE, ALL-DAY KINDERGARTEN, AND SPECIAL 34.8 EDUCATION STUDENT-TO-INSTRUCTOR RATIO RESERVE.] 34.9 A district is required to reserve $3 in fiscal year 2000 34.10 and $11 in fiscal year 2001 and later per adjusted marginal cost 34.11 pupil unit for class size reduction, all-day kindergarten, or 34.12 for reducing special education student-to-instructor ratios. 34.13 The school board of each district must pass a resolution stating 34.14 which one of these three programs will be funded with this 34.15 reserve. The reserve amount under this section must be 34.16 allocated to the education site as defined in section 123B.04, 34.17 subdivision 1, according to a plan adopted by the school board. 34.18 EFFECTIVE DATE: This section is effective the day 34.19 following final enactment. 34.20 Sec. 11. Minnesota Statutes 1999 Supplement, section 34.21 126C.10, subdivision 1, is amended to read: 34.22 Subdivision 1. [GENERAL EDUCATION REVENUE.] For fiscal 34.23 year20002001 and thereafter, the general education revenue for 34.24 each district equals the sum of the district's basic revenue, 34.25 basic skills revenue, training and experience revenue, secondary 34.26 sparsity revenue, elementary sparsity revenue, transportation 34.27 sparsity revenue, total operating capital revenue, equity 34.28 revenue, small school enhanced equity revenue, referendum offset 34.29 adjustment, transition revenue, and supplemental revenue. 34.30 EFFECTIVE DATE: This section is effective for revenue for 34.31 fiscal year 2001. 34.32 Sec. 12. Minnesota Statutes 1999 Supplement, section 34.33 126C.10, subdivision 2, is amended to read: 34.34 Subd. 2. [BASIC REVENUE.] The basic revenue for each 34.35 district equals the formula allowance times theresident34.36 adjusted marginal cost pupil units for the school year. The 35.1 formula allowance for fiscal year 1998 is $3,581. The formula 35.2 allowance for fiscal year 1999 is $3,530. The formula allowance 35.3 for fiscal year 2000 is $3,740. The formula allowance for 35.4 fiscal year 2001 and subsequent fiscal years is$3,875$3,925. 35.5 EFFECTIVE DATE: This section is effective the day 35.6 following final enactment. 35.7 Sec. 13. Minnesota Statutes 1999 Supplement, section 35.8 126C.10, subdivision 14, is amended to read: 35.9 Subd. 14. [USES OF TOTAL OPERATING CAPITAL REVENUE.] Total 35.10 operating capital revenue may be used only for the following 35.11 purposes: 35.12 (1) to acquire land for school purposes; 35.13 (2) to acquire or construct buildings for school purposes; 35.14 (3) to rent or lease buildings, including the costs of 35.15 building repair or improvement that are part of a lease 35.16 agreement; 35.17 (4) to improve and repair school sites and buildings, and 35.18 equip or reequip school buildings with permanent attached 35.19 fixtures, including library media centers; 35.20 (5) for a surplus school building that is used 35.21 substantially for a public nonschool purpose; 35.22 (6) to eliminate barriers or increase access to school 35.23 buildings by individuals with a disability; 35.24 (7) to bring school buildings into compliance with the 35.25 Uniform Fire Code adopted according to chapter 299F; 35.26 (8) to remove asbestos from school buildings, encapsulate 35.27 asbestos, or make asbestos-related repairs; 35.28 (9) to clean up and dispose of polychlorinated biphenyls 35.29 found in school buildings; 35.30 (10) to clean up, remove, dispose of, and make repairs 35.31 related to storing heating fuel or transportation fuels such as 35.32 alcohol, gasoline, fuel oil, and special fuel, as defined in 35.33 section 296A.01; 35.34 (11) for energy audits for school buildings and to modify 35.35 buildings if the audit indicates the cost of the modification 35.36 can be recovered within ten years; 36.1 (12) to improve buildings that are leased according to 36.2 section 123B.51, subdivision 4; 36.3 (13) to pay special assessments levied against school 36.4 property but not to pay assessments for service charges; 36.5 (14) to pay principal and interest on state loans for 36.6 energy conservation according to section 216C.37 or loans made 36.7 under the Northeast Minnesota Economic Protection Trust Fund Act 36.8 according to sections 298.292 to 298.298; 36.9 (15) to purchase or lease interactive telecommunications 36.10 equipment; 36.11 (16) by board resolution, to transfer money into the debt 36.12 redemption fund to: (i) pay the amounts needed to meet, when 36.13 due, principal and interest payments on certain obligations 36.14 issued according to chapter 475; or (ii) pay principal and 36.15 interest on debt service loans or capital loans according to 36.16 section 126C.70; 36.17 (17) to pay operating capital-related assessments of any 36.18 entity formed under a cooperative agreement between two or more 36.19 districts; 36.20 (18) to purchase or lease computers and related materials, 36.21 copying machines, telecommunications equipment, and other 36.22 noninstructional equipment; 36.23 (19) to purchase or lease assistive technology or equipment 36.24 for instructional programs; 36.25 (20) to purchase textbooks; 36.26 (21) to purchase new and replacement librarybooksmedia 36.27 resources or technology; 36.28 (22) to purchase vehicles; 36.29 (23) to purchase or lease telecommunications equipment, 36.30 computers, and related equipment for integrated information 36.31 management systems for: 36.32 (i) managing and reporting learner outcome information for 36.33 all students under a results-oriented graduation rule; 36.34 (ii) managing student assessment, services, and achievement 36.35 information required for students with individual education 36.36 plans; and 37.1 (iii) other classroom information management needs; and 37.2 (24) to pay personnel costs directly related to the 37.3 acquisition, operation, and maintenance of telecommunications 37.4 systems, computers, related equipment, and network and 37.5 applications software. 37.6 Sec. 14. Minnesota Statutes 1999 Supplement, section 37.7 126C.10, subdivision 23, is amended to read: 37.8 Subd. 23. [REFERENDUM OFFSET ADJUSTMENT.] A district that 37.9 qualifies for the referendum allowance reduction under section 37.10 126C.17, subdivision 12, and whose referendum allowance under 37.11 section 126C.17, subdivision 1, as adjusted under section 37.12 126C.17, subdivisions 2 and 12, does not exceed the referendum 37.13 allowance limit under section 126C.17, subdivision 2, clause 37.14 (2), shall receive a referendum offset adjustment. In fiscal 37.15 year 2000 and thereafter, the referendum offset adjustment is 37.16 equal to $25 perresidentadjusted marginal cost pupil unit. 37.17 EFFECTIVE DATE: This section is effective the day 37.18 following final enactment. 37.19 Sec. 15. Minnesota Statutes 1999 Supplement, section 37.20 126C.10, subdivision 24, is amended to read: 37.21 Subd. 24. [EQUITY REVENUE.] (a) A school district 37.22 qualifies for equity revenue if the school district's adjusted 37.23 marginal cost pupil unit amount of basic revenue, supplemental 37.24 revenue, transition revenue, and referendum revenue is less than 37.25 the 90th percentile of school districts in its equity region for 37.26 those revenue categories and the school district's 37.27 administrative offices are not located in a city of the first 37.28 class on July 1, 1999. 37.29 (b) Equity revenue for a qualifying districtthat receives37.30referendum revenue under section 126C.17, subdivision 4,equals 37.31 the product of (1) the district's adjusted marginal cost pupil 37.32 units for that year; times (2) the sum of (i) $10, plus (ii) 37.33 $30, times the school district's equity index computed under 37.34 section 126C.10, subdivision627. 37.35(c) Equity revenue for a qualifying district that does not37.36receive referendum revenue under section 126C.17, subdivision 4,38.1equals the product of the district's adjusted marginal cost38.2pupil units for that year times $10.38.3 EFFECTIVE DATE: This section is effective for revenue for 38.4 fiscal year 2001. 38.5 Sec. 16. Minnesota Statutes 1999 Supplement, section 38.6 126C.10, subdivision 25, is amended to read: 38.7 Subd. 25. [REGIONAL EQUITY GAP.] The regional equity gap 38.8 equals the difference between the fifth and the 90th percentile 38.9 of adjusted general revenue per adjusted marginal cost pupil 38.10 unit. 38.11 EFFECTIVE DATE: This section is effective the day 38.12 following final enactment. 38.13 Sec. 17. Minnesota Statutes 1999 Supplement, section 38.14 126C.10, subdivision 26, is amended to read: 38.15 Subd. 26. [DISTRICT EQUITY GAP.] A district's equity gap 38.16 equals the greater of zero or the difference between the 38.17 district's adjusted general revenue and the regional 90th 38.18 percentile of adjusted general revenue per adjusted marginal 38.19 cost pupil unit. 38.20 EFFECTIVE DATE: This section is effective the day 38.21 following final enactment. 38.22 Sec. 18. Minnesota Statutes 1998, section 126C.10, is 38.23 amended by adding a subdivision to read: 38.24 Subd. 29. [SMALL SCHOOL ENHANCED EQUITY REVENUE.] (a) A 38.25 district qualifies for small school enhanced equity revenue if: 38.26 (1) the sum of its transition, supplemental, and referendum 38.27 revenue is less than $800 per adjusted marginal cost pupil unit; 38.28 (2) its total adjusted marginal cost pupil units for that year 38.29 are less than 3,000; and (3) its adjusted marginal cost pupil 38.30 units are fewer in the current year than in the previous year. 38.31 (b) A district's small school enhanced equity revenue 38.32 equals: (1) $75; times (2) the district's adjusted marginal 38.33 cost pupil units for that year; times (3) the lesser of one, or 38.34 the ratio of the percent change in the district's adjusted 38.35 marginal cost pupil units from the previous year to the current 38.36 year to four percent. 39.1 EFFECTIVE DATE: This section is effective for revenue for 39.2 fiscal year 2001. 39.3 Sec. 19. Minnesota Statutes 1999 Supplement, section 39.4 126C.12, subdivision 1, is amended to read: 39.5 Subdivision 1. [REVENUE.] Of a district's general 39.6 education revenue for fiscal year 2000 and thereafter each 39.7 school district shall reserve an amount equal to the formula 39.8 allowance multiplied by the following calculation: 39.9 (1) the sum of adjusted marginal costpupil unitspupils in 39.10 average daily membership, according to section 126C.05, 39.11 subdivision 5, in kindergarten times .057; plus 39.12 (2) the sum of adjusted marginal costpupil unitspupils in 39.13 average daily membership, according to section 126C.05, 39.14 subdivision 5, in grades 1 to 3 times .115; plus 39.15 (3) the sum of adjusted marginal costpupil unitspupils in 39.16 average daily membership, according to section 126C.05, 39.17 subdivision 5, in grades 4 to 6 times .06. 39.18 EFFECTIVE DATE: This section is effective the day 39.19 following final enactment. 39.20 Sec. 20. Minnesota Statutes 1999 Supplement, section 39.21 126C.17, subdivision 9, is amended to read: 39.22 Subd. 9. [REFERENDUM REVENUE.] (a) The revenue authorized 39.23 by section 126C.10, subdivision 1, may be increased in the 39.24 amount approved by the voters of the district at a referendum 39.25 called for the purpose. The referendum may be called by the 39.26 board or shall be called by the board upon written petition of 39.27 qualified voters of the district. The referendum must be 39.28 conducted one or two calendar years before the increased levy 39.29 authority, if approved, first becomes payable. Only one 39.30 election to approve an increase may be held in a calendar year. 39.31 Unless the referendum is conducted by mail under paragraph (g), 39.32 the referendum must be held on the first Tuesday after the first 39.33 Monday in November. The ballot must state the maximum amount of 39.34 the increased revenue per resident marginal cost pupil unit, the 39.35 estimated referendum tax rate as a percentage of referendum 39.36 market value in the first year it is to be levied, and that the 40.1 revenue must be used to finance school operations. The ballot 40.2 may state a schedule, determined by the board, of increased 40.3 revenue per resident marginal cost pupilunitsunit that differs 40.4 from year to year over the number of years for which the 40.5 increased revenue is authorized. If the ballot contains a 40.6 schedule showing different amounts, it must also indicate the 40.7 estimated referendum tax rate as a percent of referendum market 40.8 value for the amount specified for the first year and for the 40.9 maximum amount specified in the schedule. The ballot may state 40.10 that existing referendum levy authority is expiring. In this 40.11 case, the ballot may also compare the proposed levy authority to 40.12 the existing expiring levy authority, and express the proposed 40.13 increase as the amount, if any, over the expiring referendum 40.14 levy authority. The ballot must designate the specific number 40.15 of years, not to exceed ten, for which the referendum 40.16 authorization applies. The notice required under section 275.60 40.17 may be modified to read, in cases of renewing existing levies: 40.18 "BY VOTING "YES" ON THIS BALLOT QUESTION, YOU MAY BE VOTING 40.19 FOR A PROPERTY TAX INCREASE." 40.20 The ballot may contain a textual portion with the 40.21 information required in this subdivision and a question stating 40.22 substantially the following: 40.23 "Shall the increase in the revenue proposed by (petition 40.24 to) the board of ........., School District No. .., be approved?" 40.25 If approved, an amount equal to the approved revenue per 40.26 resident marginal cost pupil unit times the resident marginal 40.27 cost pupil units for the school year beginning in the year after 40.28 the levy is certified shall be authorized for certification for 40.29 the number of years approved, if applicable, or until revoked or 40.30 reduced by the voters of the district at a subsequent referendum. 40.31 (b) The board must prepare and deliver by first class mail 40.32 at least 15 days but no more than 30 days before the day of the 40.33 referendum to each taxpayer a notice of the referendum and the 40.34 proposed revenue increase. The board need not mail more than 40.35 one notice to any taxpayer. For the purpose of giving mailed 40.36 notice under this subdivision, owners must be those shown to be 41.1 owners on the records of the county auditor or, in any county 41.2 where tax statements are mailed by the county treasurer, on the 41.3 records of the county treasurer. Every property owner whose 41.4 name does not appear on the records of the county auditor or the 41.5 county treasurer is deemed to have waived this mailed notice 41.6 unless the owner has requested in writing that the county 41.7 auditor or county treasurer, as the case may be, include the 41.8 name on the records for this purpose. The notice must project 41.9 the anticipated amount of tax increase in annual dollars and 41.10 annual percentage for typical residential homesteads, 41.11 agricultural homesteads, apartments, and commercial-industrial 41.12 property within the school district. 41.13 The notice for a referendum may state that an existing 41.14 referendum levy is expiring and project the anticipated amount 41.15 of increase over the existing referendum levy in the first year, 41.16 if any, in annual dollars and annual percentage for typical 41.17 residential homesteads, agricultural homesteads, apartments, and 41.18 commercial-industrial property within the district. 41.19 The notice must include the following statement: "Passage 41.20 of this referendum will result in an increase in your property 41.21 taxes." However, in cases of renewing existing levies, the 41.22 notice may include the following statement: "Passage of this 41.23 referendum may result in an increase in your property taxes." 41.24 (c) A referendum on the question of revoking or reducing 41.25 the increased revenue amount authorized pursuant to paragraph 41.26 (a) may be called by the board and shall be called by the board 41.27 upon the written petition of qualified voters of the district. 41.28 A referendum to revoke or reduce the levy amount must be based 41.29 upon the dollar amount, local tax rate, or amount per resident 41.30 marginal cost pupil unit, that was stated to be the basis for 41.31 the initial authorization. Revenue approved by the voters of 41.32 the district pursuant to paragraph (a) must be received at least 41.33 once before it is subject to a referendum on its revocation or 41.34 reduction for subsequent years. Only one revocation or 41.35 reduction referendum may be held to revoke or reduce referendum 41.36 revenue for any specific year and for years thereafter. 42.1 (d) A petition authorized by paragraph (a) or (c) is 42.2 effective if signed by a number of qualified voters in excess of 42.3 15 percent of the registered voters of the district on the day 42.4 the petition is filed with the board. A referendum invoked by 42.5 petition must be held on the date specified in paragraph (a). 42.6 (e) The approval of 50 percent plus one of those voting on 42.7 the question is required to pass a referendum authorized by this 42.8 subdivision. 42.9 (f) At least 15 days before the day of the referendum, the 42.10 district must submit a copy of the notice required under 42.11 paragraph (b) to the commissioner and to the county auditor of 42.12 each county in which the district is located. Within 15 days 42.13 after the results of the referendum have been certified by the 42.14 board, or in the case of a recount, the certification of the 42.15 results of the recount by the canvassing board, the district 42.16 must notify the commissioner of the results of the referendum. 42.17 (g) Except for a referendum held under subdivision 11, any 42.18 referendum under this section held on a day other than the first 42.19 Tuesday after the first Monday in November must be conducted by 42.20 mail in accordance with section 204B.46. Notwithstanding 42.21 paragraph (b) to the contrary, in the case of a referendum 42.22 conducted by mail under this paragraph, the notice required by 42.23 paragraph (b) must be prepared and delivered by first class mail 42.24 at least 20 days before the referendum. 42.25 EFFECTIVE DATE: This section is effective the day 42.26 following final enactment. 42.27 Sec. 21. Minnesota Statutes 1999 Supplement, section 42.28 126C.44, is amended to read: 42.29 126C.44 [CRIME-RELATED COSTS LEVY.] 42.30 Each district may make a levy on all taxable property 42.31 located within the district for the purposes specified in this 42.32subdivisionsection. The maximum amount which may be levied for 42.33 all costs under thissubdivisionsection shall be equal to $1.50 42.34 multiplied by the population of the school district. For 42.35 purposes of thissubdivisionsection, "population" of the school 42.36 district means the same as contained in section 275.14. The 43.1 proceeds of the levy must be used for directly funding the 43.2 following purposes or for reimbursing the cities and counties 43.3 who contract with the district for the following purposes: (1) 43.4 to pay the costs incurred for the salaries, benefits, and 43.5 transportation costs of peace officers and sheriffs for liaison 43.6 services in the district's middle and secondary schools; (2) to 43.7 pay the costs for a drug abuse prevention program as defined in 43.8 Minnesota Statutes 1991 Supplement, section 609.101, subdivision 43.9 3, paragraph (f), in the elementary schools; (3) to pay the 43.10 costs for a gang resistance education training curriculum in the 43.11 middle schools;or(4) to pay the costs for security in the 43.12 districts' schools and on school property; or (5) to pay the 43.13 costs for other crime prevention and drug abuse and violence 43.14 prevention measures taken by the school district. The district 43.15 must initially attempt to contract for services to be provided 43.16 by peace officers or sheriffs with the police department of each 43.17 city or the sheriff's department of the county within the 43.18 district containing the school receiving the services. If a 43.19 local police department or a county sheriff's department does 43.20 not wish to provide the necessary services, the district may 43.21 contract for these services with any other police or sheriff's 43.22 department located entirely or partially within the school 43.23 district's boundaries. The levy authorized under 43.24 thissubdivisionsection is not included in determining the 43.25 school district's levy limitations. 43.26 EFFECTIVE DATE: This section is effective for taxes 43.27 payable in 2001. 43.28 Sec. 22. Minnesota Statutes 1999 Supplement, section 43.29 127A.45, subdivision 12a, is amended to read: 43.30 Subd. 12a. [FORWARD SHIFTED AID PAYMENTS.] (a) Nineteen 43.31 percent of the state aid in fiscal year 1999, and 31 percent of 43.32 the state aid in fiscal years 2000 and later received under 43.33 section 124D.86 must be paid by the state to the recipient 43.34 school district on July 15 of that year. The recipient school 43.35 district must recognize this aid in the same fiscal year as the 43.36 levy is recognized. 44.1 (b) One hundred percent of the state aid in fiscal years 44.2 2003 and later received under section 124D.87 must be paid by 44.3 the state to the recipient school district on August 30 of that 44.4 year. The recipient school district must recognize this aid in 44.5 the previous fiscal year. 44.6 Sec. 23. Minnesota Statutes 1998, section 127A.48, 44.7 subdivision 1, is amended to read: 44.8 Subdivision 1. [COMPUTATION.] The department of revenue 44.9 must annually conduct an assessment/sales ratio study of the 44.10 taxable property in each school district in accordance with the 44.11 procedures in subdivisions 2 and 3. Based upon the results of 44.12thisthese assessment/sales ratiostudystudies for the three 44.13 most recent years, the department of revenue must determine an 44.14 aggregate equalized net tax capacity for the various classes of 44.15 taxable property in each district, which tax capacity shall be 44.16 designated as the adjusted net tax capacity. The adjusted net 44.17 tax capacities shall be determined using the net tax capacity 44.18 percentages in effect for the assessment year following the 44.19 assessment year of the study. The department of revenue must 44.20 make whatever estimates are necessary to account for changes in 44.21 the classification system. The department of revenue may incur 44.22 the expense necessary to make the determinations. The 44.23 commissioner of revenue may reimburse any county or governmental 44.24 official for requested services performed in ascertaining the 44.25 adjusted net tax capacity. On or before March 15 annually, the 44.26 department of revenue shall file with the chair of the tax 44.27 committee of the house of representatives and the chair of the 44.28 committee on taxes and tax laws of the senate a report of 44.29 adjusted net tax capacities. On or before June 15 annually, the 44.30 department of revenue shall file its final report on the 44.31 adjusted net tax capacities established by the previous year's 44.32 assessments and the current year's net tax capacity percentages 44.33 with the commissioner of children, families, and learning and 44.34 each county auditor for those districts for which the auditor 44.35 has the responsibility for determination of local tax rates. A 44.36 copy of the report so filed shall be mailed to the clerk of each 45.1 district involved and to the county assessor or supervisor of 45.2 assessments of the county or counties in which each district is 45.3 located. 45.4 EFFECTIVE DATE: This section is effective for taxes 45.5 payable in 2001. 45.6 Sec. 24. Minnesota Statutes 1999 Supplement, section 45.7 127A.51, is amended to read: 45.8 127A.51 [STATEWIDE AVERAGE REVENUE.] 45.9 By October 1 of each year the commissioner must estimate 45.10 the statewide average adjusted general revenue per adjusted 45.11 marginal cost pupil unit and the disparity in adjusted general 45.12 revenue among pupils and districts by computing the ratio of the 45.13 ninety-fifth percentile to the fifth percentile of adjusted 45.14 general revenue. The commissioner must provide that information 45.15 to all districts. 45.16 If the disparity in adjusted general revenue as measured by 45.17 the ratio of the ninety-fifth percentile to the fifth percentile 45.18 increases in any year, the commissioner shall recommend to the 45.19 legislature options for change in the general education formula 45.20 that will limit the disparity in adjusted general revenue to no 45.21 more than the disparity for the previous school year. The 45.22 commissioner must submit the recommended options to the 45.23 education committees of the legislature by January 15. 45.24 For purposes of this section and section 126C.10, adjusted 45.25 general revenue means the sum of basic revenue under section 45.26 126C.10, subdivision 2; supplemental revenue under section 45.27 126C.10, subdivisions 9 and 12; transition revenue under section 45.28 126C.10, subdivision 20; and referendum revenue under section 45.29 126C.17. 45.30 EFFECTIVE DATE: This section is effective the day 45.31 following final enactment. 45.32 Sec. 25. Laws 1999, chapter 241, article 1, section 66, is 45.33 amended to read: 45.34 Sec. 66. [EQUITY REVENUE ADJUSTMENT.] 45.35 For fiscalyearsyear 2000and 2001, a school district that 45.36 does not have an operating referendum is eligible for additional 46.1 equity revenue under section 30 equal to $12 times the 46.2 district's adjusted marginal cost pupil units for that year. 46.3 EFFECTIVE DATE: This section is effective the day 46.4 following final enactment. 46.5 Sec. 26. Laws 1999, chapter 241, article 1, section 68, 46.6 subdivision 4, is amended to read: 46.7 Subd. 4. [TRANSPORTATION AID FOR ENROLLMENT OPTIONS.] For 46.8 transportation of pupils attending post-secondary institutions 46.9 according to Minnesota Statutes, section 124D.09, or for 46.10 transportation of pupils attending nonresident districts 46.11 according to Minnesota Statutes, section 124D.03: 46.12$102,000$70,000 ..... 2000 46.13$102,000$70,000 ..... 2001 46.14 Any balance in the first year does not cancel but is 46.15 available in the second year. 46.16 EFFECTIVE DATE: This section is effective the day 46.17 following final enactment. 46.18 Sec. 27. Laws 1999, chapter 241, article 1, section 68, 46.19 subdivision 5, is amended to read: 46.20 Subd. 5. [DISTRICT COOPERATION REVENUE.] For district 46.21 cooperation revenue aid: 46.22$5,940,000$5,881,000 ..... 2000 46.23$ 563,000$ 556,000 ..... 2001 46.24 The 2000 appropriation includes $869,000 for 1999 and 46.25$5,071,000$5,012,000 for 2000. 46.26 The 2001 appropriation includes$563,000$556,000 for 2000 46.27 and $0 for 2001. 46.28 EFFECTIVE DATE: This section is effective the day 46.29 following final enactment. 46.30 Sec. 28. Laws 1999, chapter 241, article 1, section 70, is 46.31 amended to read: 46.32 Sec. 70. [EFFECTIVE DATES.] 46.33 Sections 13, 14, 26, 30, 37, and 39 are effective for 46.34 revenue for fiscal year 2000 and later. Section 41 is effective 46.35 for revenue for fiscal year 2001 and later. Sections 46, 47, 46.36 and 55 to 60 are effective the day following final enactment. 47.1 Section 61 is effective for taxes payable in 2000 and later. 47.2 EFFECTIVE DATE: This section is effective the day 47.3 following final enactment. 47.4 Sec. 29. [TRANSPORTATION STUDY.] 47.5 The commissioner of children, families, and learning must 47.6 form a pupil transportation working group to analyze the effects 47.7 of increasing labor and fuel costs on school transportation 47.8 needs. The commissioner must include recommendations for 47.9 adequate pupil transportation funding in the redesigned school 47.10 finance formulas presented to the 2001 legislature. 47.11 Sec. 30. [TRAINING AND EXPERIENCE REPLACEMENT REVENUE.] 47.12 (a) For fiscal year 2001 only, a school district's training 47.13 and experience replacement revenue equals the ratio of the 47.14 amount of training and experience revenue the district would 47.15 have received for fiscal year 1999 calculated using the training 47.16 and experience index in Minnesota Statutes 1996, section 47.17 124A.04, to its resident pupil units for that year, times the 47.18 district's adjusted marginal cost pupil units for fiscal year 47.19 2001, times .25. 47.20 (b) This aid is paid entirely in fiscal year 2001. 47.21 Sec. 31. [LEVY RECOGNITION FOR INTEGRATION LEVY 47.22 ADJUSTMENT.] 47.23 Notwithstanding Minnesota Statutes, section 123B.75, 47.24 subdivision 5, the full amount of integration levy for taxes 47.25 payable in 2001, attributable to fiscal year 2001, for school 47.26 districts receiving revenue under 124D.86, subdivision 3, clause 47.27 (4), shall be recognized in fiscal year 2001. 47.28 Sec. 32. [APPROPRIATION.] 47.29 Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND 47.30 LEARNING.] The following sums are appropriated from the general 47.31 fund to the department of children, families, and learning in 47.32 the fiscal years indicated. 47.33 Subd. 2. [GENERAL EDUCATION AID.] 47.34 $ 1,225,000 ..... 2000 47.35 $81,802,000 ..... 2001 47.36 This aid is in addition to any other aid appropriated for 48.1 this purpose. 48.2 Sec. 33. [REPEALER.] 48.3 Subdivision 1. [STATUTES.] Minnesota Statutes 1998, 48.4 sections 126C.30; 126C.31; 126C.32; 126C.33; 126C.34; 126C.35; 48.5 and 126C.36, are repealed. 48.6 Subd. 2. [LAWS.] Laws 1999, chapter 241, article 1, 48.7 section 64, is repealed. 48.8 EFFECTIVE DATE: This section is effective the day 48.9 following final enactment. 48.10 ARTICLE 3 48.11 KINDERGARTEN THROUGH GRADE 12 EDUCATION: SPECIAL PROGRAMS 48.12 Section 1. Minnesota Statutes 1999 Supplement, section 48.13 124D.84, subdivision 1, is amended to read: 48.14 Subdivision 1. [AWARDS.] The commissioner, with the advice 48.15 and counsel of the Minnesota Indian scholarship committee, may 48.16 award scholarships to any Minnesota resident student who is of 48.17 one-fourth or more Indian ancestry, who has applied for other 48.18 existing state and federal scholarship and grant programs, and 48.19 who, in the opinion of the commissioner, has the capabilities to 48.20 benefit from further education. Scholarships must be 48.21 foradvanced or specialized educationaccredited degree programs 48.22 in accredited colleges or universities or for courses in 48.23 accreditedor approved colleges or inbusiness, technical, or 48.24 vocational schools. Scholarships shall be used to defray the 48.25 total cost of education including tuition, incidental fees, 48.26 books, supplies, transportation, other related school costs and 48.27 the cost of board and room and shall be paid directly to the 48.28 college or school concerned. The total cost of education 48.29 includes all tuition and fees for each student enrolling in a 48.30 public institution and the portion of tuition and fees for each 48.31 student enrolling in a private institution that does not exceed 48.32 the tuition and fees at a comparable public institution. Each 48.33 student shall be awarded a scholarship based on the total cost 48.34 of the student's education and a standardized need analysis. 48.35 The amount and type of each scholarship shall be determined 48.36 through the advice and counsel of the Minnesota Indian 49.1 scholarship committee. 49.2 When an Indian student satisfactorily completes the work 49.3 required by a certain college or school in a school year the 49.4 student is eligible for additional scholarships, if additional 49.5 training is necessary to reach the student's educational and 49.6 vocational objective. Scholarships may not be given to any 49.7 Indian student for more than five years of study without special 49.8 approval of the Minnesota Indian scholarship committee. 49.9 Sec. 2. Minnesota Statutes 1999 Supplement, section 49.10 125A.76, subdivision 2, is amended to read: 49.11 Subd. 2. [SPECIAL EDUCATION BASE REVENUE.] (a) The special 49.12 education base revenue equals the sum of the following amounts 49.13 computed using base year data: 49.14 (1) 68 percent of the salary of each essential person 49.15 employed in the district's program for children with a 49.16 disability during the fiscal year, not including the share of 49.17 salaries for personnel providing health-related services counted 49.18 in clause (8), whether the person is employed by one or more 49.19 districts or a Minnesota correctional facility operating on a 49.20 fee-for-service basis; 49.21 (2) for the Minnesota state academy for the deaf or the 49.22 Minnesota state academy for the blind, 68 percent of the salary 49.23 of each instructional aide assigned to a child attending the 49.24 academy, if that aide is required by the child's individual 49.25 education plan; 49.26 (3) for special instruction and services provided to any 49.27 pupil by contracting with public, private, or voluntary agencies 49.28 other than school districts, in place of special instruction and 49.29 services provided by the district, 52 percent of the difference 49.30 between the amount of the contract and the basic revenue of the 49.31 district for that pupil for the fraction of the school day the 49.32 pupil receives services under the contract; 49.33 (4) for special instruction and services provided to any 49.34 pupil by contracting for services with public, private, or 49.35 voluntary agencies other than school districts, that are 49.36 supplementary to a full educational program provided by the 50.1 school district, 52 percent of the amount of the contract for 50.2 that pupil; 50.3 (5) for supplies and equipment purchased or rented for use 50.4 in the instruction of children with a disability, not including 50.5 the portion of the expenses for supplies and equipment used to 50.6 provide health-related services counted in clause (8), an amount 50.7 equal to 47 percent of the sum actually expended by the 50.8 district, or a Minnesota correctional facility operating on a 50.9 fee-for-service basis, but not to exceed an average of $47 in 50.10 any one school year for each child with a disability receiving 50.11 instruction; 50.12 (6) for fiscal years 1997 and later, special education base 50.13 revenue shall include amounts under clauses (1) to (5) for 50.14 special education summer programs provided during the base year 50.15 for that fiscal year; and 50.16 (7) for fiscal years 1999 and later, the cost of providing 50.17 transportation services for children with disabilities under 50.18 section 123B.92, subdivision 1, paragraph (b), clause (4); and50.19(8) for fiscal years 2001 and later, the cost of salaries,50.20supplies and equipment, and other related costs actually50.21expended by the district for the nonfederal share of medical50.22assistance services according to section 256B.0625, subdivision50.2326. 50.24 The department shall establish procedures through the 50.25 uniform financial accounting and reporting system to identify 50.26 and track all revenues generated from third-party billings as 50.27 special education revenue at the school district level; include 50.28 revenue generated from third-party billings as special education 50.29 revenue in the annual cross-subsidy report; and exclude 50.30 third-party revenue from calculation of excess cost aid to the 50.31 districts. 50.32 (b) If requested by a school district operating a special 50.33 education program during the base year for less than the full 50.34 fiscal year, or a school district in which is located a 50.35 Minnesota correctional facility operating on a fee-for-service 50.36 basis for less than the full fiscal year, the commissioner may 51.1 adjust the base revenue to reflect the expenditures that would 51.2 have occurred during the base year had the program been operated 51.3 for the full fiscal year. 51.4 (c) Notwithstanding paragraphs (a) and (b), the portion of 51.5 a school district's base revenue attributable to a Minnesota 51.6 correctional facility operating on a fee-for-service basis 51.7 during the facility's first year of operating on a 51.8 fee-for-service basis shall be computed using current year data. 51.9 Sec. 3. Laws 1999, chapter 241, article 2, section 60, 51.10 subdivision 7, is amended to read: 51.11 Subd. 7. [TRIBAL CONTRACT SCHOOLS.] For tribal contract 51.12 school aid according to Minnesota Statutes, section 124D.83: 51.13$2,706,000$1,671,000 ..... 2000 51.14$2,790,000$1,882,000 ..... 2001 51.15 The 2000 appropriation includes $283,000 for 1999 and 51.16$2,423,000$1,388,000 for 2000. 51.17 The 2001 appropriation includes$269,000$154,000 for 2000 51.18 and$2,521,000$1,728,000 for 2001. 51.19 Sec. 4. Laws 1999, chapter 241, article 2, section 60, 51.20 subdivision 9, is amended to read: 51.21 Subd. 9. [MAGNET SCHOOL GRANTS.] For magnet school and 51.22 program grants under Laws 1994, chapter 647, article 8, section 51.23 38: 51.24 $1,750,000 ..... 2000 51.25 $1,750,000 ..... 2001 51.26 These amounts may be used for magnet school programs 51.27 according to Minnesota Statutes, section 124D.88. The budget 51.28 base for this program for fiscal year 2003 and each year 51.29 thereafter is $1,050,000. 51.30 Sec. 5. Laws 1999, chapter 241, article 2, section 60, 51.31 subdivision 12, is amended to read: 51.32 Subd. 12. [AID FOR CHILDREN WITH A DISABILITY.] For aid 51.33 according to Minnesota Statutes, section 125A.75, subdivision 3, 51.34 for children with a disability placed in residential facilities 51.35 within the district boundaries for whom no district of residence 51.36 can be determined: 52.1$ 443,000$ 433,000 ..... 2000 52.2$1,064,000$4,263,000 ..... 2001 52.3 If the appropriation for either year is insufficient, the 52.4 appropriation for the other year is available. Any balance in 52.5 the first year does not cancel but is available in the second 52.6 year. 52.7 Sec. 6. Laws 1999, chapter 241, article 2, section 60, 52.8 subdivision 13, is amended to read: 52.9 Subd. 13. [TRAVEL FOR HOME-BASED SERVICES.] For aid for 52.10 teacher travel for home-based services according to Minnesota 52.11 Statutes, section 125A.75, subdivision 1: 52.12$133,000$125,000 ..... 2000 52.13$139,000$130,000 ..... 2001 52.14 The 2000 appropriation includes $11,000 for 1999 and 52.15$122,000$114,000 for 2000. 52.16 The 2001 appropriation includes $13,000 for 2000 and 52.17$126,000$117,000 for 2001. 52.18 Sec. 7. Laws 1999, chapter 241, article 2, section 60, 52.19 subdivision 14, is amended to read: 52.20 Subd. 14. [SPECIAL EDUCATION EXCESS COST AID.] For excess 52.21 cost aid: 52.22$60,498,000$66,032,000 ..... 2000 52.23$79,405,000$89,269,000 ..... 2001 52.24 The 2000 appropriation includes $4,693,000 for 1999 and 52.25$55,805,000$61,339,000 for 2000. 52.26 The 2001 appropriation includes$6,200,000$6,815,000 for 52.27 2000 and$73,205,000$82,454,000 for 2001. 52.28 Sec. 8. Laws 1999, chapter 241, article 2, section 60, 52.29 subdivision 17, is amended to read: 52.30 Subd. 17. [INTEGRATION AID.] For integration aid: 52.31$37,182,000$37,610,000 ..... 2000 52.32$43,787,000$55,828,000 ..... 2001 52.33 The 2000 appropriation includes $2,902,000 for 1999 and 52.34$34,280,000$34,708,000 for 2000. 52.35 The 2001 appropriation includes$3,809,000$3,856,000 for 52.36 2000 and$39,978,000$51,972,000 for 2001. 53.1 Sec. 9. Laws 1999, chapter 241, article 2, section 60, 53.2 subdivision 19, is amended to read: 53.3 Subd. 19. [INTERDISTRICT DESEGREGATION OR INTEGRATION 53.4 TRANSPORTATION AID.] (a) For interdistrict desegregation or 53.5 integration transportation aid under Minnesota Statutes, section 53.6 124D.87: 53.7 $970,000 ..... 2000 53.8 $970,000 ..... 2001 53.9 Any balance in the first year does not cancel but is 53.10 available in the second year. 53.11 (b) The budget base for this program for fiscal year 2002 53.12 is $500,000. This amount may be spent for interdistrict 53.13 desegregation or integration transportation aid. For fiscal 53.14 year 2003 and later, the budget base for this program is the 53.15 forecasted cost of fully reimbursing districts according to 53.16 Minnesota Statutes, section 124D.87. 53.17 Sec. 10. [REPEALER.] 53.18 (a) Laws 1999, chapter 216, article 4, section 12, is 53.19 repealed. 53.20 (b) Minnesota Rules, part 3535.9920, is repealed. 53.21 EFFECTIVE DATE: This section is effective the day 53.22 following final enactment. 53.23 ARTICLE 4 53.24 KINDERGARTEN THROUGH GRADE 12 EDUCATION: 53.25 EMPLOYMENT AND TRANSITIONS 53.26 Section 1. Minnesota Statutes 1998, section 124D.44, is 53.27 amended to read: 53.28 124D.44 [MATCH REQUIREMENTS.] 53.29 Youth works grant funds must be used for the living 53.30 allowance, cost of employer taxes under sections 3111 and 3301 53.31 of the Internal Revenue Code of 1986, workers' compensation 53.32 coverage,andhealth benefits for each program participant, and 53.33 administrative expenses, which must not exceed five percent of 53.34 total program costs. Youthworks grant funds may also be used to 53.35 supplement applicant resources to fund postservice benefits for 53.36 program participants. Applicant resources, from sources and in 54.1 a form determined by the commissionand, beginning January 1,54.21997, the council, must be used to provide for all other program 54.3 costs, including the portion of the applicant's obligation for 54.4 postservice benefits that is not covered by state or federal 54.5 grant funds and such costs as supplies, materials, 54.6 transportation, and salaries and benefits of those staff 54.7 directly involved in the operation, internal monitoring, and 54.8 evaluation of the program.Administrative expenses must not54.9exceed five percent of total program costs.54.10 EFFECTIVE DATE: This section is effective the day 54.11 following final enactment. 54.12 Sec. 2. Minnesota Statutes 1999 Supplement, section 54.13 124D.453, subdivision 3, is amended to read: 54.14 Subd. 3. [CAREER AND TECHNICAL AID.] A district's career 54.15 and technical education aid for fiscalyearyears 2000 and 2001 54.16 equals the lesser of: 54.17 (a) $73 times the district's average daily membership in 54.18 grades 10 to 12; or 54.19 (b) 25 percent of approved expenditures for the following: 54.20 (1) salaries paid to essential, licensed personnel 54.21 providing direct instructional services to students in that 54.22 fiscal year for services rendered in the district's approved 54.23 career and technical education programs; 54.24 (2) contracted services provided by a public or private 54.25 agency other than a Minnesota school district or cooperative 54.26 center under subdivision 7; 54.27 (3) necessary travel between instructional sites by 54.28 licensed career and technical education personnel; 54.29 (4) necessary travel by licensed career and technical 54.30 education personnel for vocational student organization 54.31 activities held within the state for instructional purposes; 54.32 (5) curriculum development activities that are part of a 54.33 five-year plan for improvement based on program assessment; 54.34 (6) necessary travel by licensed career and technical 54.35 education personnel for noncollegiate credit bearing 54.36 professional development; and 55.1 (7) specialized vocational instructional supplies. 55.2 (c) Up to ten percent of a district's career and technical 55.3 aid may be spent on equipment purchases. Districts using career 55.4 and technical aid for equipment purchases must report to the 55.5 department on the improved learning opportunities for students 55.6 that result from the investment in equipment. 55.7 Sec. 3. Laws 1999, chapter 241, article 3, section 3, 55.8 subdivision 2, is amended to read: 55.9 Subd. 2. [SECONDARY VOCATIONAL EDUCATION AID.] For 55.10 secondary vocational education aid according to Minnesota 55.11 Statutes, section 124D.453: 55.12$11,335,000$12,413,000 ..... 2000 55.13$1,130,000$12,417,000 ..... 2001 55.14 The 2000 appropriation includes $1,159,000 for 1999 and 55.15$10,176,000$11,254,000 for 2000. The 2001 appropriation 55.16 includes$1,130,000$1,250,000 for 2000 and $11,167,000 for 2001. 55.17 Any balance in the first year does not cancel but is 55.18 available in the second year. 55.19 Sec. 4. Laws 1999, chapter 241, article 3, section 3, 55.20 subdivision 4, is amended to read: 55.21 Subd. 4. [EDUCATION AND EMPLOYMENT TRANSITIONS PROGRAM 55.22 GRANTS.] For education and employment transitions programming 55.23 under Minnesota Statutes, section 124D.46: 55.24 $3,225,000 ..... 2000 55.25$3,225,000$1,425,000 ..... 2001 55.26 $200,000 each year is for the development and 55.27 implementation of the ISEEK Internet-based education and 55.28 employment information system. 55.29 $1,000,000eachin fiscal year 2000 is for an employer 55.30 rebate program for qualifying employers who offer youth 55.31 internships to educators. 55.32 $500,000eachin fiscal year 2000 is for youth 55.33 entrepreneurship grants. 55.34 $750,000 each year is for youth apprenticeship grants. 55.35 $300,000eachin fiscal year 2000 is for grants to programs 55.36 in cities of the first class to expand the number of at-risk 56.1 students participating in school-to-work projects. 56.2 $350,000 each year is for agricultural school-to-work 56.3 grants. 56.4 $125,000 each year is to conduct a high school follow-up 56.5 survey to include first, third, and sixth year graduates of 56.6 Minnesota schools. 56.7 Any balance in the first year does not cancel but is 56.8 available in the second year. 56.9 The budget base for this program for fiscal year 2002 and 56.10 later is $1,075,000. 56.11 Sec. 5. Laws 1999, chapter 241, article 3, section 5, is 56.12 amended to read: 56.13 Sec. 5. [REPEALER.] 56.14 Minnesota Statutes 1998, section 124D.453, is repealed 56.15 effective for revenue for fiscal year20012002. 56.16 EFFECTIVE DATE: This section is effective the day 56.17 following final enactment. 56.18 ARTICLE 5 56.19 KINDERGARTEN THROUGH GRADE 12 EDUCATION: 56.20 FACILITIES AND TECHNOLOGY 56.21 Section 1. Minnesota Statutes 1998, section 123A.485, 56.22 subdivision 4, is amended to read: 56.23 Subd. 4. [NEW DISTRICTS.] If a district consolidates with 56.24 another district that has received aid under section 123A.39, 56.25 subdivision 3, or 123A.485 for a combination or consolidation 56.26 taking effect within six years of the effective date of the new 56.27 consolidation, only the pupil units in the district or districts 56.28 not previously reorganized must be counted for aid purposes 56.29 under subdivision 2. If two or more districts consolidate and 56.30 all districts received aid under subdivision 2 for a 56.31 consolidation taking effect within six years of the effective 56.32 date of the new consolidation, only one quarter of the pupil 56.33 units in the newly created district must be used to determine 56.34 aid under subdivision 2. 56.35 Sec. 2. Minnesota Statutes 1998, section 123B.51, 56.36 subdivision 6, is amended to read: 57.1 Subd. 6. [PROCEEDS OF SALE OR EXCHANGE.] (a) Proceeds of 57.2 the sale or exchange of school buildings or real property of the 57.3 district must be used as provided in this subdivision. 57.4 (b) In districts with outstanding bonds, the proceeds of 57.5 the sale or exchange shall first be deposited in the debt 57.6 retirement fund of the district in an amount sufficient to meet 57.7 when due that percentage of the principal and interest payments 57.8 for outstanding bonds which is ascribable to the payment of 57.9 expenses necessary and incidental to the construction or 57.10 purchase of the particular building or property which is sold. 57.11 (c) After satisfying the requirements of paragraph (b), a 57.12 district with outstanding bonds may deposit proceeds of the sale 57.13 or exchange in itscapital expenditure fundgeneral fund 57.14 reserved for operating capital account if the amount deposited 57.15 is used for the following: 57.16 (1) for expenditures for the cleanup of polychlorinated 57.17 biphenyls, if the method for cleanup is approved by the 57.18 department; 57.19 (2) for capital expenditures for the betterment, as defined 57.20 in section 475.51, subdivision 8, of district-owned school 57.21 buildings; or 57.22 (3) to replace the building or property sold. 57.23 (d) In a district with outstanding bonds, the amount of the 57.24 proceeds of the sale or exchange remaining after the application 57.25 of paragraphs (b) and (c), which is sufficient to meet when due 57.26 that percentage of the principal and interest payments for the 57.27 district's outstanding bonds which is not governed by paragraph 57.28 (b), shall be deposited in the debt retirement fund. 57.29 (e) Any proceeds of the sale or exchange remaining in 57.30 districts with outstanding bonds after the application of 57.31 paragraphs (b), (c), and (d), and all proceeds of the sale or 57.32 exchange in districts without outstanding bonds shall be 57.33 deposited in thecapital expendituregeneral fund reserved for 57.34 operating capital account of the district. 57.35 (f) Notwithstanding paragraphs (c) and (d), a district with 57.36 outstanding bonds may deposit in itscapital expendituregeneral 58.1 fund reserved for operating capital account and use for any 58.2 lawful operating capital expenditure without the reduction of 58.3 any levy limitation the same percentage of the proceeds of the 58.4 sale or exchange of a building or property as the percentage of 58.5 the initial cost of purchasing or constructing the building or 58.6 property which was paid using revenue from thecapital58.7expendituregeneral fund reserved for operating capital account. 58.8 Sec. 3. Minnesota Statutes 1998, section 123B.52, is 58.9 amended by adding a subdivision to read: 58.10 Subd. 6. [DISPOSING OF SURPLUS SCHOOL COMPUTERS.] 58.11 Notwithstanding section 471.345, governing school district 58.12 contracts made upon sealed bid or otherwise complying with the 58.13 requirements for competitive bidding, other provisions of this 58.14 section governing school district contracts, or other law to the 58.15 contrary, a school district under this subdivision may dispose 58.16 of a surplus school computer and related equipment if the 58.17 district disposes of the surplus property by conveying the 58.18 property and title to: 58.19 (1) another school district; 58.20 (2) the state department of corrections; 58.21 (3) the board of trustees of the Minnesota state colleges 58.22 and universities; or 58.23 (4) the family of a student residing in the district whose 58.24 total family income meets the federal definition of poverty. 58.25 EFFECTIVE DATE: This section is effective the day 58.26 following final enactment. 58.27 Sec. 4. Minnesota Statutes 1999 Supplement, section 58.28 123B.53, subdivision 4, is amended to read: 58.29 Subd. 4. [DEBT SERVICE EQUALIZATION REVENUE.] The debt 58.30 service equalization revenue of a district equals the eligible 58.31 debt service revenue minus the amount raised by a levy of 12 58.32 percent times the adjusted net tax capacity of the 58.33 district minus the district's enhanced debt service equalization 58.34 revenue according to subdivision 8. 58.35 EFFECTIVE DATE: This section is effective for revenue for 58.36 fiscal year 2002 and later. 59.1 Sec. 5. Minnesota Statutes 1999 Supplement, section 59.2 123B.53, subdivision 6, is amended to read: 59.3 Subd. 6. [DEBT SERVICE EQUALIZATION AID.] A district's 59.4 debt service equalization aid is the sum of (1) the difference 59.5 between the debt service equalization revenue and the equalized 59.6 debt service levy, and (2) the enhanced debt service 59.7 equalization aid according to subdivision 10. 59.8 EFFECTIVE DATE: This section is effective for revenue for 59.9 fiscal year 2002 and later. 59.10 Sec. 6. Minnesota Statutes 1998, section 123B.53, is 59.11 amended by adding a subdivision to read: 59.12 Subd. 8. [ENHANCED DEBT SERVICE EQUALIZATION REVENUE.] The 59.13 enhanced debt service equalization revenue of a district equals 59.14 the eligible debt service revenue minus the amount raised by a 59.15 levy of 20 percent times the adjusted net tax capacity of the 59.16 district. 59.17 EFFECTIVE DATE: This section is effective for revenue for 59.18 fiscal year 2002 and later. 59.19 Sec. 7. Minnesota Statutes 1998, section 123B.53, is 59.20 amended by adding a subdivision to read: 59.21 Subd. 9. [ENHANCED EQUALIZED DEBT SERVICE LEVY.] To obtain 59.22 enhanced debt service equalization revenue, a district must levy 59.23 an amount not to exceed the district's enhanced debt service 59.24 equalization revenue times the lesser of one or the ratio of: 59.25 (1) the quotient derived by dividing the adjusted net tax 59.26 capacity of the district for the year before the year the levy 59.27 is certified by the adjusted pupil units in the district for the 59.28 school year ending in the year prior to the year the levy is 59.29 certified; to 59.30 (2) $8,000. 59.31 EFFECTIVE DATE: This section is effective for revenue for 59.32 fiscal year 2002 and later. 59.33 Sec. 8. Minnesota Statutes 1998, section 123B.53, is 59.34 amended by adding a subdivision to read: 59.35 Subd. 10. [ENHANCED DEBT SERVICE EQUALIZATION AID.] A 59.36 district's enhanced debt service equalization aid is the 60.1 difference between the enhanced debt service equalization 60.2 revenue and the enhanced equalized debt service levy. 60.3 EFFECTIVE DATE: This section is effective for revenue for 60.4 fiscal year 2002 and later. 60.5 Sec. 9. Minnesota Statutes 1999 Supplement, section 60.6 123B.54, is amended to read: 60.7 123B.54 [DEBT SERVICE APPROPRIATION.] 60.8 (a)$33,165,000$33,141,000 in fiscal year 2000, 60.9$32,057,000$29,400,000 in fiscal year 2001,and60.10$31,280,000$37,134,000 in fiscal year 2002, and $38,940,000 in 60.11 fiscal year 2003 and each year thereafter is appropriated from 60.12 the general fund to the commissioner of children, families, and 60.13 learning for payment of debt service equalization aid under 60.14 section 123B.53. The 2002 appropriation 60.15 includes$3,201,000$2,904,000 for 2001 and 60.16$29,079,000$34,230,000 for 2002. 60.17 (b) The appropriations in paragraph (a) must be reduced by 60.18 the amount of any money specifically appropriated for the same 60.19 purpose in any year from any state fund. 60.20 Sec. 10. Minnesota Statutes 1998, section 123B.59, is 60.21 amended by adding a subdivision to read: 60.22 Subd. 5a. [ALTERNATIVE FACILITIES REVENUE.] A school 60.23 district's alternative facilities revenue equals the amount 60.24 approved under this section. 60.25 EFFECTIVE DATE: This section is effective for revenue for 60.26 fiscal year 2002 and later. 60.27 Sec. 11. Minnesota Statutes 1998, section 123B.59, 60.28 subdivision 6, is amended to read: 60.29 Subd. 6. [ALTERNATIVE FACILITIES AID.] For fiscal year 60.30 2002, a district's alternative facilities aidis the amount60.31equal to the district's annual debt service costs, provided that60.32the amount does not exceed the amount certified to be levied for60.33those purposes for taxes payable in 1997, or for a district that60.34made a levy under subdivision 5, paragraph (b), the lesser of60.35the district's annual levy amount, or one-sixth of the amount of60.36levy that it certified for that purpose for taxes payable in61.11998equals the lesser of the district's annual alternative 61.2 facilities revenue for that year or 45 percent of the amount of 61.3 aid the district received in fiscal year 2001. For fiscal year 61.4 2003 and later, a district's alternative facilities aid equals 61.5 the lesser of the district's annual alternative facilities 61.6 revenue for that year or 25 percent of the amount of aid the 61.7 district received in fiscal year 2001. 61.8 EFFECTIVE DATE: This section is effective for revenue for 61.9 fiscal year 2002 and later. 61.10 Sec. 12. Minnesota Statutes 1998, section 123B.59, is 61.11 amended by adding a subdivision to read: 61.12 Subd. 7a. [ALTERNATIVE FACILITIES APPROPRIATION.] (a) An 61.13 amount not to exceed $9,000,000 in fiscal year 2002, and 61.14 $5,000,000 in fiscal year 2003 and each year thereafter is 61.15 appropriated from the general fund to the commissioner of 61.16 children, families, and learning for payment of alternative 61.17 facilities aid under this section. 61.18 EFFECTIVE DATE: This section is effective for revenue for 61.19 fiscal year 2002 and later. 61.20 Sec. 13. Minnesota Statutes 1998, section 123B.71, 61.21 subdivision 3, is amended to read: 61.22 Subd. 3. [INDOOR AIR QUALITY RESOURCES; COMMISSIONER'S 61.23 ROLE.] As part of the consultation under subdivision 1, the 61.24 commissioner shall provide each school district with: 61.25 (1) information concerning indoor air quality; and 61.26 (2) procedures for monitoring of outdoor airflow and total 61.27 airflow of ventilation systems in new school facilities. 61.28 EFFECTIVE DATE: This section is effective July 1, 2002. 61.29 Sec. 14. Minnesota Statutes 1998, section 123B.71, 61.30 subdivision 10, is amended to read: 61.31 Subd. 10. [INDOOR AIR QUALITY.] A school board seeking a 61.32 review and comment under this section must submit information 61.33 demonstrating to the commissioner's satisfaction that: 61.34 (1) indoor air quality issues have been considered;and61.35 (2) the architects and engineers designing the facility 61.36 will have professional liability insurance; 62.1 (3) the facility's heating, ventilation, and air 62.2 conditioning systems meet or exceed the standards established by 62.3 code; and 62.4 (4) the facility's design will provide the ability for 62.5 monitoring of outdoor airflow and total airflow of ventilation 62.6 systems in new school facilities. 62.7 EFFECTIVE DATE: This section is effective July 1, 2002. 62.8 Sec. 15. [123B.715] [NEW SCHOOL BUILDING CONSTRUCTION 62.9 STANDARDS.] 62.10 Subdivision 1. [APPLICABLE BUILDING PROJECTS.] This 62.11 section applies to school building projects for which a review 62.12 and comment under section 123B.71 is requested on or after July 62.13 1, 2002. 62.14 Subd. 2. [DEFINITIONS.] "ASHRAE" means the American 62.15 Society of Heating, Refrigerating, and Air Conditioning 62.16 Engineers. "MERV" means minimum efficiency reporting value. 62.17 Subd. 3. [AIR HANDLING SYSTEMS.] Any heating, ventilation, 62.18 or air conditioning system that is installed subject to this 62.19 section must provide a filtration system with a MERV rating of 62.20 MERV 11 as defined in ASHRAE standard 52.2. 62.21 EFFECTIVE DATE: This section is effective July 1, 2002. 62.22 Sec. 16. Minnesota Statutes 1998, section 126C.40, 62.23 subdivision 1, is amended to read: 62.24 Subdivision 1. [TO LEASE BUILDING OR LAND.] (a) When a 62.25 district finds it economically advantageous to rent or lease a 62.26 building or land for any instructional purposes or for school 62.27 storage or furniture repair, and it determines that the 62.28 operating capital revenue authorized under section 126C.10, 62.29 subdivision 13, is insufficient for this purpose, it may apply 62.30 to the commissioner for permission to make an additional capital 62.31 expenditure levy for this purpose. An application for 62.32 permission to levy under this subdivision must contain financial 62.33 justification for the proposed levy, the terms and conditions of 62.34 the proposed lease, and a description of the space to be leased 62.35 and its proposed use. 62.36 (b) The criteria for approval of applications to levy under 63.1 this subdivision must include: the reasonableness of the price, 63.2 the appropriateness of the space to the proposed activity, the 63.3 feasibility of transporting pupils to the leased building or 63.4 land, conformity of the lease to the laws and rules of the state 63.5 of Minnesota, and the appropriateness of the proposed lease to 63.6 the space needs and the financial condition of the district. 63.7 The commissioner must not authorize a levy under this 63.8 subdivision in an amount greater than the cost to the district 63.9 of renting or leasing a building or land for approved purposes. 63.10 The proceeds of this levy must not be used for custodial or 63.11 other maintenance services. A district may not levy under this 63.12 subdivision for the purpose of leasing or renting a 63.13 district-owned building or site to itself. 63.14 (c) For agreements finalized after July 1, 1997, a district 63.15 may not levy under this subdivision for the purpose of leasing: 63.16 (1) a newly constructed building used primarily for regular 63.17 kindergarten, elementary, or secondary instruction; or (2) a 63.18 newly constructed building addition or additions used primarily 63.19 for regular kindergarten, elementary, or secondary instruction 63.20 that contains more than 20 percent of the square footage of the 63.21 previously existing building. 63.22 (d) Notwithstanding paragraph (b), a district may levy 63.23 under this subdivision for the purpose of leasing or renting a 63.24 district-owned building or site to itself only if the amount is 63.25 needed by the district to make payments required by a lease 63.26 purchase agreement, installment purchase agreement, or other 63.27 deferred payments agreement authorized by law, and the levy 63.28 meets the requirements of paragraph (c). A levy authorized for 63.29 a district by the commissioner under this paragraph may be in 63.30 the amount needed by the district to make payments required by a 63.31 lease purchase agreement, installment purchase agreement, or 63.32 other deferred payments agreement authorized by law, provided 63.33 that any agreement include a provision giving the school 63.34 districts the right to terminate the agreement annually without 63.35 penalty. 63.36 (e) The total levy under this subdivision for a district 64.1 for any year must not exceed $100 times the resident pupil units 64.2 for the fiscal year to which the levy is attributable. 64.3(e)(f) For agreements for which a review and comment have 64.4 been submitted to the department of children, families, and 64.5 learning after April 1, 1998, the term "instructional purpose" 64.6 as used in this subdivision excludes expenditures on stadiums. 64.7 EFFECTIVE DATE: This section is effective for taxes 64.8 payable in 2001 and later. 64.9 Sec. 17. Minnesota Statutes 1999 Supplement, section 64.10 126C.40, subdivision 6, is amended to read: 64.11 Subd. 6. [LEASE PURCHASE; INSTALLMENT BUYS.] (a) Upon 64.12 application to, and approval by, the commissioner in accordance 64.13 with the procedures and limits in subdivision 1, paragraphs (a) 64.14 and (b), a district, as defined in this subdivision, may: 64.15 (1) purchase real or personal property under an installment 64.16 contract or may lease real or personal property with an option 64.17 to purchase under a lease purchase agreement, by which 64.18 installment contract or lease purchase agreement title is kept 64.19 by the seller or vendor or assigned to a third party as security 64.20 for the purchase price, including interest, if any; and 64.21 (2) annually levy the amounts necessary to pay the 64.22 district's obligations under the installment contract or lease 64.23 purchase agreement. 64.24 (b) The obligation created by the installment contract or 64.25 the lease purchase agreement must not be included in the 64.26 calculation of net debt for purposes of section 475.53, and does 64.27 not constitute debt under other law. An election is not 64.28 required in connection with the execution of the installment 64.29 contract or the lease purchase agreement. 64.30 (c) The proceeds of the levy authorized by this subdivision 64.31 must not be used to acquire a facility to be primarily used for 64.32 athletic or school administration purposes. 64.33 (d) For the purposes of this subdivision, "district" means: 64.34 (1) a school district required to have a comprehensive plan 64.35 for the elimination of segregation whose plan has been 64.36 determined by the commissioner to be in compliance with 65.1 department of children, families, and learning rules relating to 65.2 equality of educational opportunity and school 65.3 desegregation and, for a district eligible for revenue under 65.4 section 124D.86, subdivision 3, clause (4), where the 65.5 acquisition of property under this subdivision is determined by 65.6 the commissioner to contribute to the implementation of the 65.7 desegregation plan; or 65.8 (2) a school district that participates in a joint program 65.9 for interdistrict desegregation with a district defined in 65.10 clause (1) if the facility acquired under this subdivision is to 65.11 be primarily used for the joint program and the commissioner 65.12 determines that the joint programs are being undertaken to 65.13 implement the districts' desegregation plan. 65.14 (e) Notwithstanding subdivision 1, the prohibition against 65.15 a levy by a district to lease or rent a district-owned building 65.16 to itself does not apply to levies otherwise authorized by this 65.17 subdivision. 65.18 (f) For the purposes of this subdivision, any references in 65.19 subdivision 1 to building or land shall include personal 65.20 property. 65.21 EFFECTIVE DATE: This section is effective for taxes 65.22 payable in 2001 and later. 65.23 Sec. 18. Minnesota Statutes 1998, section 126C.40, is 65.24 amended by adding a subdivision to read: 65.25 Subd. 7. [UNEQUALIZED CAPITAL LEVIES.] A school district's 65.26 unequalized capital levy equals the sum of its: 65.27 (1) disabled access levy under section 123B.58; 65.28 (2) technology and building construction down payment levy 65.29 under section 123B.63; 65.30 (3) building lease levies under subdivision 1; 65.31 (4) cooperating district capital levy under subdivision 3; 65.32 and 65.33 (5) energy conservation levy under subdivision 4. 65.34 EFFECTIVE DATE: This section is effective for taxes 65.35 payable in 2001 and later. 65.36 Sec. 19. Minnesota Statutes 1999 Supplement, section 66.1 126C.63, subdivision 8, is amended to read: 66.2 Subd. 8. [MAXIMUM EFFORT DEBT SERVICE LEVY.] "Maximum 66.3 effort debt service levy" means the lesser of: 66.4 (1) a levy in whichever of the following amounts is 66.5 applicable: 66.6 (a) in any district granted a debt service loan for a debt 66.7 service levy payable in 2001 and thereafter, or a capital loan 66.8 granted after June 30, 2000, a levy in a total dollar amount 66.9 computed at a rate of 30 percent of adjusted net tax capacity 66.10 for taxes payable in 2001 and thereafter; 66.11 (b) in any district receiving a debt service loan for a 66.12 debt service levy payable in 1991 and thereafter, or granted a 66.13 capital loanafterbetween January 1, 1990, and June 30, 2000, a 66.14 levy in a total dollar amount computed at a rate of 24 percent 66.15 of adjusted net tax capacity for taxes payable in 1991 and 66.16 thereafter; 66.17(b)(c) in any district granted a debt service loanafter66.18 between July 31, 1981, and December 31, 1989, or granted a 66.19 capital loan which is approvedafterbetween July 31, 1981, and 66.20 December 31, 1989, a levy in a total dollar amount computed as a 66.21 tax rate of 21.92 percent on the adjusted net tax capacity for 66.22 taxes payable in 1991 and thereafter; or 66.23 (2) a levy in any district for which a capital loan was 66.24 approved prior to August 1, 1981, a levy in a total dollar 66.25 amount equal to the sum of the amount of the required debt 66.26 service levy and an amount which when levied annually will in 66.27 the opinion of the commissioner be sufficient to retire the 66.28 remaining interest and principal on any outstanding loans from 66.29 the state within 30 years of the original date when the capital 66.30 loan was granted. 66.31 The board in any district affected by the provisions of 66.32 clause (2) may elect instead to determine the amount of its levy 66.33 according to the provisions of clause (1). If a district's 66.34 capital loan is not paid within 30 years because it elects to 66.35 determine the amount of its levy according to the provisions of 66.36 clause (2), the liability of the district for the amount of the 67.1 difference between the amount it levied under clause (2) and the 67.2 amount it would have levied under clause (1), and for interest 67.3 on the amount of that difference, must not be satisfied and 67.4 discharged pursuant to Minnesota Statutes 1988, or an earlier 67.5 edition of Minnesota Statutes if applicable, section 124.43, 67.6 subdivision 4. 67.7 EFFECTIVE DATE: This section is effective for taxes 67.8 payable in 2001 and later. 67.9 Sec. 20. Minnesota Statutes 1998, section 126C.69, 67.10 subdivision 3, is amended to read: 67.11 Subd. 3. [DISTRICT REQUEST FOR REVIEW AND COMMENT.] A 67.12 district or a joint powers district that intends to apply for a 67.13 capital loan must submit a proposal to the commissioner for 67.14 review and comment according to section 123B.71 by July 1 of an 67.15 odd-numbered year. The commissioner shall prepare a review and 67.16 comment on the proposed facility, regardless of the amount of 67.17 the capital expenditure required to construct the facility. In 67.18 addition to the information provided under section 123B.71, 67.19 subdivision 9, the commissioner shall require that predesign 67.20 packages comparable to those required under section 16B.335 be 67.21 prepared by the applicant school district. The predesign 67.22 packages must be sufficient to define the scope, cost, and 67.23 schedule of the project and must demonstrate that the project 67.24 has been analyzed according to appropriate space needs standards 67.25 and also consider the following criteria in determining whether 67.26 to make a positive review and comment. 67.27 (a) To grant a positive review and comment the commissioner 67.28 shall determine that all of the following conditions are met: 67.29 (1) the facilities are needed for pupils for whom no 67.30 adequate facilities exist or will exist; 67.31 (2) the district will serve, on average, at least8060 67.32 pupils per grade or is eligible for elementary or secondary 67.33 sparsity revenue; 67.34 (3) no form of cooperation with another district would 67.35 provide the necessary facilities; 67.36 (4) the facilities are comparable in size and quality to 68.1 facilities recently constructed in other districts that have 68.2 similar enrollments; 68.3 (5) the facilities are comparable in size and quality to 68.4 facilities recently constructed in other districts that are 68.5 financed without a capital loan; 68.6 (6) the district is projected tomaintain or increase its68.7average daily membership over the next five years or is eligible68.8for elementary or secondary sparsity revenuehave access to 68.9 funds in its general operating budget to support its program; 68.10 (7) the current facility poses a threat to the life, 68.11 health, and safety of pupils, and cannot reasonably be brought 68.12 into compliance with fire, health, or life safety codes; 68.13 (8) the district has made a good faith effort, as evidenced 68.14 by its maintenance expenditures, to adequately maintain the 68.15 existing facility during the previous ten years and to comply 68.16 with fire, health, and life safety codes and state and federal 68.17 requirements for handicapped accessibility; 68.18 (9) the district has made a good faith effort to encourage 68.19 integration of social service programs within the new facility; 68.20and68.21 (10) evaluations by boards of adjacent districts have been 68.22 received; and 68.23 (11) the proposal includes a comprehensive technology plan. 68.24 (b) The commissioner may grant a negative review and 68.25 comment if: 68.26 (1) the state demographer has examined the population of 68.27 the communities to be served by the facility and determined that 68.28 the communities have not grown during the previous five years; 68.29 (2) the state demographer determines that the economic and 68.30 population bases of the communities to be served by the facility 68.31 are not likely to grow or to remain at a level sufficient, 68.32 during the next ten years, to ensure use of the entire facility; 68.33 (3) the need for facilities could be met within the 68.34 district or adjacent districts at a comparable cost by leasing, 68.35 repairing, remodeling, or sharing existing facilities or by 68.36 using temporary facilities; 69.1 (4) the district plans do not include cooperation and 69.2 collaboration with health and human services agencies and other 69.3 political subdivisions; or 69.4 (5) if the application is for new construction, an existing 69.5 facility that would meet the district's needs could be purchased 69.6 at a comparable cost from any other source within the area. 69.7 Sec. 21. Minnesota Statutes 1999 Supplement, section 69.8 126C.69, subdivision 9, is amended to read: 69.9 Subd. 9. [LOAN AMOUNT LIMITS.] (a) A loan must not be 69.10 recommended for approval for a district exceeding an amount 69.11 computed as follows: 69.12 (1) the amount requested by the district under subdivision 69.13 6; 69.14 (2) plus the aggregate principal amount of general 69.15 obligation bonds of the district outstanding on June 30 of the 69.16 year following the year the application was received, not 69.17 exceeding the limitation on net debt of the district in section 69.18 475.53, subdivision 4, or363400 percent of its adjusted net 69.19 tax capacity as most recently determined, whichever is less; 69.20 (3) less the maximum net debt permissible for the district 69.21 on December 1 of the year the application is received, under the 69.22 limitation in section 475.53, subdivision 4, or363400 percent 69.23 of its adjusted net tax capacity as most recently determined, 69.24 whichever is less; 69.25 (4) less any amount by which the amount voted exceeds the 69.26 total cost of the facilities for which the loan is granted. 69.27 (b) The loan may be approved in an amount computed as 69.28 provided in paragraph (a), clauses (1) to (3), subject to later 69.29 reduction according to paragraph (a), clause (4). 69.30 Sec. 22. Minnesota Statutes 1998, section 136D.281, 69.31 subdivision 4, is amended to read: 69.32 Subd. 4. [REVERSE REFERENDUM.] The intermediate school 69.33 boardshall notmay sell and issue bonds for acquisition or 69.34 betterment purposes in an aggregate amount not to exceed 69.35 $2,000,000 if: (1) each member school district board has 69.36 adopted a resolution authorizing the project; (2) the 70.1 intermediate board has prepared and published in a newspaper of 70.2 general circulation in the district a notice of the public 70.3 meeting on the intermediate district's intent to sell bonds; and 70.4 (3) the intermediate board has adopted a resolution authorizing 70.5 the bonds. The resolution becomes final unless within 60 days 70.6 after the meeting where the resolution was adopted a petition 70.7 requesting an election is filed with the board. The petition 70.8 must be signed by a number of qualified voters in excess of five 70.9 percent of the registered voters of the intermediate school 70.10 district who voted in the last general election. If the 70.11 petition is filed, then the board resolution authorizing the 70.12 sale and issuance of bonds has no effect until the question of 70.13 their issuance has been submitted to the voters of the 70.14 intermediate school district at a special election held in and 70.15 for the intermediate district. The date of the election, the 70.16 question to be submitted, and all other necessary conduct of the 70.17 election shall be fixed by the intermediate school board. The 70.18 election shall be conducted and canvassed under the direction of 70.19 the intermediate school board in accordance with chapter 205A, 70.20 insofar as applicable. 70.21 If a majority of the total number of votes cast on the 70.22 question within the intermediate school district is in favor of 70.23 the question, the intermediate school board may proceed with the 70.24 sale and issuance of the bonds. 70.25 The bonds shall be general obligations of the intermediate 70.26 school district; however, each member school district must each 70.27 year certify its proportionate share of the debt service levy on 70.28 the bonds, with the allocation of its share of that levy 70.29 determined in accordance with the resolution authorizing the 70.30 project previously adopted by each member school board. For 70.31 purposes of section 123B.53, the debt service levies certified 70.32 for this purpose by an individual member school district shall 70.33 be considered debt service levies of that school district. By 70.34 July 1 and December 1 of each year, the school board of each 70.35 member school district shall transfer to the intermediate school 70.36 district an amount equal to 50 percent of the debt service levy 71.1 certified by that member school district in the previous fiscal 71.2 year to pay its proportionate share. 71.3 Sec. 23. Minnesota Statutes 1998, section 136D.741, 71.4 subdivision 4, is amended to read: 71.5 Subd. 4. [REVERSE REFERENDUM.] The intermediate school 71.6 boardshall notmay sell and issue bonds for acquisition or 71.7 betterment purposes in an aggregate amount not to exceed 71.8 $8,000,000 if: (1) each member school district board has 71.9 adopted a resolution authorizing the project; (2) the 71.10 intermediate board has prepared and published in a newspaper of 71.11 general circulation in the district a notice of the public 71.12 meeting on the intermediate district's intent to sell bonds; and 71.13 (3) the intermediate board has adopted a resolution authorizing 71.14 the bonds. The resolution becomes final unless within 60 days 71.15 after the meeting where the resolution was adopted a petition 71.16 requesting an election is filed with the board. The petition 71.17 must be signed by a number of qualified voters in excess of five 71.18 percent of the registered voters of the intermediate school 71.19 district who voted in the last general election. If the 71.20 petition is filed, then the board resolution authorizing the 71.21 sale and issuance of bonds has no effect until the question of 71.22 their issuance has been submitted to the voters of the 71.23 intermediate school district at a special election held in and 71.24 for such intermediate district. The date of such election, the 71.25 question to be submitted, and all other necessary conduct of 71.26 such election shall be fixed by the intermediate school board 71.27 and said election shall be conducted and canvassed under the 71.28 direction of the intermediate school board in accordance with 71.29 chapter 205A, insofar as the same may be deemed applicable. 71.30 If a majority of the total number of votes cast on the 71.31 question within the intermediate school district is in favor of 71.32 the question, the intermediate school board may thereupon 71.33 proceed with the sale and the issuance of said bonds. 71.34 The bonds shall be general obligations of the intermediate 71.35 school district; however, each member school district must each 71.36 year certify its proportionate share of the debt service levy on 72.1 the bonds, with the allocation of its share of that levy 72.2 determined in accordance with the resolution authorizing the 72.3 project previously adopted by each member school board. For 72.4 purposes of section 123B.53, the debt service levies certified 72.5 for this purpose by an individual member school district shall 72.6 be considered debt service levies of that school district. By 72.7 July 1 and December 1 of each year, the school board of each 72.8 member school district shall transfer to the intermediate school 72.9 district an amount equal to 50 percent of the debt service levy 72.10 certified by that member school district in the previous fiscal 72.11 year to pay its proportionate share. 72.12 Sec. 24. Minnesota Statutes 1998, section 136D.88, 72.13 subdivision 4, is amended to read: 72.14 Subd. 4. [REVERSE REFERENDUM.] The intermediate school 72.15 boardshall notmay sell and issue bonds for acquisition or 72.16 betterment purposes in an aggregate amount not to exceed 72.17 $8,000,000 if: (1) each member school district board has 72.18 adopted a resolution authorizing the project; (2) the 72.19 intermediate board has prepared and published in a newspaper of 72.20 general circulation in the district a notice of the public 72.21 meeting on the intermediate district's intent to sell bonds; and 72.22 (3) the intermediate board has adopted a resolution authorizing 72.23 the bonds. The resolution becomes final unless within 60 days 72.24 after the meeting where the resolution was adopted a petition 72.25 requesting an election is filed with the board. The petition 72.26 must be signed by a number of qualified voters in excess of five 72.27 percent of the registered voters of the intermediate school 72.28 district who voted in the last general election. If the 72.29 petition is filed, then the board resolution authorizing the 72.30 sale and issuance of bonds has no effect until the question of 72.31 their issuance has been submitted to the voters of the 72.32 intermediate school district at a special election held in and 72.33 for the intermediate district. The date of the election, the 72.34 question to be submitted, and all other necessary conduct of the 72.35 election shall be fixed by the intermediate school board. The 72.36 election shall be conducted and canvassed under the direction of 73.1 the intermediate school board in accordance with chapter 205A, 73.2 insofar as applicable. 73.3 If a majority of the total number of votes cast on the 73.4 question within the intermediate school district is in favor of 73.5 the question, the intermediate school board may thereupon 73.6 proceed with the sale and issuance of the bonds. 73.7 The bonds shall be general obligations of the intermediate 73.8 school district; however, each member school district must each 73.9 year certify its proportionate share of the debt service levy on 73.10 the bonds, with the allocation of its share of that levy 73.11 determined in accordance with the resolution authorizing the 73.12 project previously adopted by each member school board. For 73.13 purposes of section 123B.53, the debt service levies certified 73.14 for this purpose by an individual member school district shall 73.15 be considered debt service levies of that school district. By 73.16 July 1 and December 1 of each year, the school board of each 73.17 member school district shall transfer to the intermediate school 73.18 district an amount equal to 50 percent of the debt service levy 73.19 certified by that member school district in the previous fiscal 73.20 year to pay its proportionate share. 73.21 Sec. 25. Minnesota Statutes 1998, section 475.53, 73.22 subdivision 4, is amended to read: 73.23 Subd. 4. [SCHOOL DISTRICTS.] Except as otherwise provided 73.24 by law, no school district shall be subject to a net debt in 73.25 excess of tenpercent of the actual market value of all taxable73.26property situated within its corporate limits, as computed in73.27accordance with this subdivision. The county auditor of each73.28county containing taxable real or personal property situated73.29within any school district shall certify to the district upon73.30request the market value of all such property. Whenever the73.31commissioner of revenue, in accordance with section 127A.48,73.32subdivisions 1 to 6, has determined that the net tax capacity of73.33any district furnished by county auditors is not based upon the73.34market value of taxable property in the district, the73.35commissioner of revenue shall certify to the district upon73.36request the ratio most recently ascertained to exist between74.1such value and the actual market value of property within the74.2district. The actual market value of property within a74.3district, on which its debt limit under this subdivision is74.4based, is (a) the value certified by the county auditors, or (b)74.5this value divided by the ratio certified by the commissioner of74.6revenue, whichever results in a higher valuetimes the adjusted 74.7 net tax capacity of the district as defined in section 126C.01, 74.8 subdivision 2. 74.9 Sec. 26. Laws 1999, chapter 241, article 4, section 27, 74.10 subdivision 2, is amended to read: 74.11 Subd. 2. [HEALTH AND SAFETY AID.] For health and safety 74.12 aid according to Minnesota Statutes, section 123B.57, 74.13 subdivision 5: 74.14$14,528,000$14,015,000 ..... 2000 74.15$14,957,000$14,450,000 ..... 2001 74.16 The 2000 appropriation includes $1,415,000 for 1999 and 74.17$13,113,000$12,600,000 for 2000. 74.18 The 2001 appropriation includes$1,456,000$1,400,000 for 74.19 2000 and$13,501,000$13,050,000 for 2001. 74.20 EFFECTIVE DATE: This section is effective the day 74.21 following final enactment. 74.22 Sec. 27. Laws 1999, chapter 241, article 4, section 27, 74.23 subdivision 3, is amended to read: 74.24 Subd. 3. [DEBT SERVICE AID.] For debt service aid 74.25 according to Minnesota Statutes, section 123B.53, subdivision 6: 74.26$33,165,000$33,141,000 ..... 2000 74.27$32,084,000$29,400,000 ..... 2001 74.28 The 2000 appropriation includes $3,842,000 for 1999 and 74.29$29,323,000$29,299,000 for 2000. 74.30 The 2001 appropriation includes$3,256,000$3,255,000 for 74.31 2000 and$28,828,000$26,145,000 for 2001. 74.32 EFFECTIVE DATE: This section is effective the day 74.33 following final enactment. 74.34 Sec. 28. Laws 1999, chapter 241, article 4, section 27, 74.35 subdivision 4, is amended to read: 74.36 Subd. 4. [INTERACTIVE TELEVISION (ITV) AID.] For 75.1 interactive television (ITV) aid under Minnesota Statutes, 75.2 section 126C.40, subdivision 4: 75.3$4,197,000$4,194,000 ..... 2000 75.4$2,851,000$2,761,000 ..... 2001 75.5 The 2000 appropriation includes $405,000 for 1999 and 75.6$3,792,000$3,789,000 for 2000. 75.7 The 2001 appropriation includes $421,000 for 2000 and 75.8$2,430,000$2,340,000 for 2001. 75.9 EFFECTIVE DATE: This section is effective the day 75.10 following final enactment. 75.11 Sec. 29. Laws 1999, chapter 241, article 4, section 27, 75.12 subdivision 5, is amended to read: 75.13 Subd. 5. [ALTERNATIVE FACILITIES BONDING AID.] For 75.14 alternative facilities bonding aid, according to Minnesota 75.15 Statutes, section 123B.59: 75.16$19,058,000$18,920,000 ..... 2000 75.17$19,286,000$19,134,000 ..... 2001 75.18 The 2000 appropriation includes $1,700,000 for20001999 75.19 and$17,358,000$17,220,000 for20012000. 75.20 The 2001 appropriation includes$1,928,000$1,913,000 for 75.21 2000 and$17,358,000$17,221,000 for 2001. 75.22 EFFECTIVE DATE: This section is effective the day 75.23 following final enactment. 75.24 Sec. 30. Laws 1999, chapter 241, article 4, section 27, 75.25 subdivision 7, is amended to read: 75.26 Subd. 7. [TELECOMMUNICATION ACCESS GRANTS.] (a) For 75.27 telecommunication access grants according to Minnesota Statutes, 75.28 section 125B.20: 75.29 $ 5,000,000 ..... 2000 75.30 $10,000,000 ..... 2001 75.31 (b) Any balance in the first year does not cancel but is 75.32 available in the second year. This amount shall not be included 75.33 as part of the base for fiscal year 2002-2003. 75.34 Sec. 31. Laws 1999, chapter 241, article 4, section 27, 75.35 subdivision 10, is amended to read: 75.36 Subd. 10. [DECLINING PUPIL AID; ST. PETER.] For a grant to 76.1 independent school district No. 508, St. Peter, to ameliorate 76.2 general fund operating losses associated with the March, 1998 76.3 tornado: 76.4$ 105,000$ 75,000 ..... 2000 76.5$ 278,000$115,000 ..... 2001 76.6 EFFECTIVE DATE: This section is effective the day 76.7 following final enactment. 76.8 Sec. 32. Laws 1999, chapter 241, article 4, section 27, 76.9 subdivision 11, is amended to read: 76.10 Subd. 11. [FLOODS; DECLINING PUPIL AID.] For declining 76.11 pupil aid under section 23: 76.12$2,132,000$2,087,000 ..... 2000 76.13$1,758,000$1,639,000 ..... 2001 76.14 EFFECTIVE DATE: This section is effective the day 76.15 following final enactment. 76.16 Sec. 33. Laws 1999, chapter 241, article 4, section 29, is 76.17 amended to read: 76.18 Sec. 29. [REPEALER.] 76.19 (a) Minnesota Statutes 1998,sections 123A.44; 123A.441;76.20123A.442; 123A.443; 123A.444; 123A.445; 123A.446; 123B.57,76.21subdivisions 4, 5, and 7; 123B.59, subdivision 7; 123B.63,76.22subdivisions 1 and 2;section 123B.66; 123B.67; 123B.68; and76.23123B.69, are, is repealed effective the day following final 76.24 enactment. 76.25 (b)Minnesota Statutes 1998, section 123B.58, is repealed76.26effective July 1, 2004.76.27(c)Minnesota Statutes 1998, section 123B.64, subdivision 76.28 4, is repealed effective for revenue for fiscal year 2000. 76.29(d)(c) Minnesota Statutes 1998, section 123B.64, 76.30 subdivisions 1, 2, and 3, are repealed effective for revenue for 76.31 fiscal year 2001. 76.32(e)(d) Minnesota Rules, parts 3500.3900; 3500.4000; 76.33 3500.4100; 3500.4200; and 3500.4300, are repealed. 76.34 EFFECTIVE DATE: This section is effective the day 76.35 following final enactment. 76.36 Sec. 34. [TECHNOLOGY CAPABILITIES TASK FORCE.] 77.1 The commissioner of children, families, and learning must 77.2 convene a task force to determine the ongoing technology needs 77.3 of Minnesota's school districts including the cost of 77.4 maintenance, support services, and technology upgrades. The 77.5 task force is composed of the commissioner of children, 77.6 families, and learning, or the commissioner's designee, two 77.7 persons appointed by Education Minnesota, two persons appointed 77.8 by the Minnesota school boards association, one person appointed 77.9 by the Minnesota rural education association, one person 77.10 appointed by the service cooperatives, one elementary school 77.11 principal appointed by the Minnesota elementary principals 77.12 association, one secondary school principal appointed by the 77.13 Minnesota association of secondary school principals, one 77.14 superintendent appointed by the Minnesota association of school 77.15 administrators, one school media specialist appointed by the 77.16 Minnesota educational media organization, one teacher aide 77.17 appointed by the commissioner, one assistive technology 77.18 practitioner appointed by the commissioner, one person appointed 77.19 by the Minnesota high technology council, one person from the 77.20 Minnesota Business Partnership, one person from the Minnesota 77.21 Chamber of Commerce, and two people from the Minnesota education 77.22 telecommunications council. The task force must establish 77.23 minimum technology standards for school districts and for school 77.24 sites. The task force must report its minimum standards for 77.25 technology to the education committees of the legislature by 77.26 February 15, 2001. 77.27 Sec. 35. [DECLINING PUPIL UNITS; ST. PETER.] 77.28 For purposes of Laws 1999, chapter 241, article 4, section 77.29 22, the St. Peter school district's marginal cost pupil units 77.30 for the 1996-1997 school year must be calculated using the pupil 77.31 weights in effect for fiscal year 2000. 77.32 Sec. 36. [REPEALER WITHOUT EFFECT.] 77.33 The repeal of Minnesota Statutes 1998, sections 123A.44; 77.34 123A.441; 123A.442; 123A.443; 123A.444; 123A.445; 123A.446; 77.35 123B.57, subdivisions 4, 5, and 7; 123B.59, subdivision 7; 77.36 123B.63, subdivisions 1 and 2; 123B.67; 123B.68; and 123B.69, by 78.1 Laws 1999, chapter 241, article 4, section 29, with an effective 78.2 date of May 26, 1999, is without effect and Minnesota Statutes 78.3 1998, sections 123A.44; 123A.441; 123A.442; 123A.443; 123A.444; 78.4 123A.445; 123A.446; 123B.57, subdivisions 4, 5, and 7; 123B.59, 78.5 subdivision 7; 123B.63, subdivisions 1 and 2; 123B.67; 123B.68; 78.6 and 123B.69, remain in effect after May 25, 1999. 78.7 EFFECTIVE DATE: This section is effective retroactive to 78.8 May 25, 1999. 78.9 Sec. 37. [REPEALER.] 78.10 (a) Minnesota Statutes 1998, sections 136D.281, subdivision 78.11 8; 136D.741, subdivision 8; and 136D.88, subdivision 8, are 78.12 repealed effective July 1, 2000. 78.13 (b) Minnesota Statutes 1998, section 123B.59, subdivision 78.14 7, is repealed effective June 30, 2001. 78.15 ARTICLE 6 78.16 KINDERGARTEN THROUGH GRADE 12 EDUCATION: 78.17 EDUCATIONAL EXCELLENCE AND OTHER POLICY 78.18 Section 1. Minnesota Statutes 1998, section 120A.41, is 78.19 amended to read: 78.20 120A.41 [LENGTH OF SCHOOL YEAR; DAYS OF INSTRUCTION.] 78.21 A school board's annual school calendar must include at 78.22 leastthree additional days of student instruction beyond the78.23number of173 days of student instructionthe board formally78.24adopted as its school calendar at the beginning of the 1996-199778.25school yearand five days of staff development or parent-teacher 78.26 conferences and related activities. 78.27 EFFECTIVE DATE: This section is effective the day 78.28 following final enactment and applies for 2001-2002 and later 78.29 school years. 78.30 Sec. 2. [121A.582] [STUDENT DISCIPLINE; REASONABLE FORCE.] 78.31 Subdivision 1. [REASONABLE FORCE STANDARD.] (a) A teacher, 78.32 in exercising the person's lawful authority, may use reasonable 78.33 force when it is necessary under the circumstances to correct or 78.34 restrain a student or prevent bodily harm or death to another. 78.35 (b) A school employee, school bus driver, or other agent of 78.36 a district, in exercising the person's lawful authority, may use 79.1 reasonable force when it is necessary under the circumstances to 79.2 restrain a student or prevent bodily harm or death to another. 79.3 (c) Paragraphs (a) and (b) do not authorize conduct 79.4 prohibited under sections 121A.58 and 121A.67. 79.5 Subd. 2. [CIVIL LIABILITY.] (a) A teacher who, in the 79.6 exercise of the person's lawful authority, uses reasonable force 79.7 under the standard in subdivision 1, paragraph (a), has a 79.8 defense against a civil action for damages under section 123B.25. 79.9 (b) A school employee, bus driver, or other agent of a 79.10 district who, in the exercise of the person's lawful authority, 79.11 uses reasonable force under the standard in subdivision 1, 79.12 paragraph (b), has a defense against a civil action for damages 79.13 under section 123B.25. 79.14 Subd. 3. [CRIMINAL PROSECUTION.] (a) A teacher who, in the 79.15 exercise of the person's lawful authority, uses reasonable force 79.16 under the standard in subdivision 1, paragraph (a), has a 79.17 defense against a criminal prosecution under section 609.06, 79.18 subdivision 1. 79.19 (b) A school employee, bus driver, or other agent of a 79.20 district who, in the exercise of the person's lawful authority, 79.21 uses reasonable force under the standard in subdivision 1, 79.22 paragraph (b), has a defense against a criminal prosecution 79.23 under section 609.06, subdivision 1. 79.24 Subd. 4. [SUPPLEMENTARY RIGHTS AND DEFENSES.] Any right or 79.25 defense in this section is supplementary to those specified in 79.26 section 121A.58, 121A.67, 123B.25, or 609.06, subdivision 1. 79.27 EFFECTIVE DATE: This section is effective for the 79.28 2000-2001 school year and later. 79.29 Sec. 3. Minnesota Statutes 1998, section 121A.61, 79.30 subdivision 3, is amended to read: 79.31 Subd. 3. [POLICY COMPONENTS.] The policy must include at 79.32 least the following components: 79.33 (a) rules governing student conduct and procedures for 79.34 informing students of the rules; 79.35 (b) the grounds for removal of a student from a class; 79.36 (c) the authority of the classroom teacher to remove 80.1 students from the classroom pursuant to procedures and rules 80.2 established in the district's policy; 80.3 (d) the procedures for removal of a student from a class by 80.4 a teacher, school administrator, or other school district 80.5 employee; 80.6 (e) the period of time for which a student may be removed 80.7 from a class, which may not exceed five class periods for a 80.8 violation of a rule of conduct; 80.9 (f) provisions relating to the responsibility for and 80.10 custody of a student removed from a class; 80.11 (g) the procedures for return of a student to the specified 80.12 class from which the student has been removed; 80.13 (h) the procedures for notifying a student and the 80.14 student's parents or guardian of violations of the rules of 80.15 conduct and of resulting disciplinary actions; 80.16 (i) any procedures determined appropriate for encouraging 80.17 early involvement of parents or guardians in attempts to improve 80.18 a student's behavior; 80.19 (j) any procedures determined appropriate for encouraging 80.20 early detection of behavioral problems; 80.21 (k) any procedures determined appropriate for referring a 80.22 student in need of special education services to those services; 80.23 (1) the procedures for consideration of whether there is a 80.24 need for a further assessment or of whether there is a need for 80.25 a review of the adequacy of a current individual education plan 80.26 of a student with a disability who is removed from class; 80.27 (m) procedures for detecting and addressing chemical abuse 80.28 problems of a student while on the school premises; 80.29 (n) the minimum consequences for violations of the code of 80.30 conduct;and80.31 (o) procedures for immediate and appropriate interventions 80.32 tied to violations of the code; and 80.33 (p) a provision that states that a teacher, school 80.34 employee, school bus driver, or other agent of a district may 80.35 use reasonable force in compliance with section 121A.582 and 80.36 other laws. 81.1 EFFECTIVE DATE: This section is effective for the 81.2 2001-2002 school year and thereafter. 81.3 Sec. 4. Minnesota Statutes 1999 Supplement, section 81.4 122A.09, subdivision 4, is amended to read: 81.5 Subd. 4. [LICENSE AND RULES.] (a) The board must adopt 81.6 rules to license public school teachers and interns subject to 81.7 chapter 14. 81.8 (b) The board must adopt rules requiring a person to 81.9 successfully complete a skills examination in reading, writing, 81.10 and mathematics as a requirement for initial teacher licensure. 81.11 Such rules must require college and universities offering a 81.12 board approved teacher preparation program to provide remedial 81.13 assistance to persons who did not achieve a qualifying score on 81.14 the skills examination, including those for whom English is a 81.15 second language. 81.16 (c) The board must adopt rules to approve teacher 81.17 preparation programs. The board, upon the request of a 81.18 post-secondary student preparing for teacher licensure or a 81.19 licensed graduate of a teacher preparation program, shall assist 81.20 in resolving a dispute between the person and a post-secondary 81.21 institution providing a teacher preparation program when the 81.22 dispute involves an institution's recommendation for licensure 81.23 affecting the person or the person's credentials. At the 81.24 board's discretion, assistance may include the application of 81.25 chapter 14. 81.26 (d) The board must provide the leadership and shall adopt 81.27 rules for the redesign of teacher education programs to 81.28 implement a research based, results-oriented curriculum that 81.29 focuses on the skills teachers need in order to be effective. 81.30 The board shall implement new systems of teacher preparation 81.31 program evaluation to assure program effectiveness based on 81.32 proficiency of graduates in demonstrating attainment of program 81.33 outcomes. 81.34 (e) The board must adopt rules requiring successful 81.35 completion of an examination of general pedagogical knowledge 81.36 and examinations of licensure-specific teaching skills. The 82.1 rules shall be effective on the dates determined by the board, 82.2 but not later than September 1, 2001. 82.3 (f) The board must adopt rules requiring teacher educators 82.4 to work directly with elementary or secondary school teachers in 82.5 elementary or secondary schools to obtain periodic exposure to 82.6 the elementary or secondary teaching environment. 82.7 (g) The board must grant licenses to interns and to 82.8 candidates for initial licenses. 82.9 (h) The board must design and implement an assessment 82.10 system which requires a candidate for an initial license and 82.11 first continuing license to demonstrate the abilities necessary 82.12 to perform selected, representative teaching tasks at 82.13 appropriate levels. 82.14 (i) The board must receive recommendations from local 82.15 committees as established by the board for the renewal of 82.16 teaching licenses. 82.17 (j) The board must grant life licenses to those who qualify 82.18 according to requirements established by the board, and suspend 82.19 or revoke licenses pursuant to sections 122A.20 and 214.10. The 82.20 board must not establish any expiration date for application for 82.21 life licenses. 82.22 (k) The board must adopt rules that require all licensed 82.23 teachers who are renewing their continuing license to include in 82.24 their renewal requirements further preparation in the areas of 82.25 using positive behavior interventions and in accommodating, 82.26 modifying, and adapting curricula, materials, and strategies to 82.27 appropriately meet the needs of individual students and ensure 82.28 adequate progress toward the state's graduation rule. The rules 82.29 adopted under this paragraph apply to teachers who renew their 82.30 licenses in year 2001 and later. 82.31 (l) In adopting rules to license public school teachers who 82.32 provide health-related services for disabled children, the board 82.33 shall adopt rules consistent with license or registration 82.34 requirements of the commissioner of health and the 82.35 health-related boards who license personnel who perform similar 82.36 services outside of the school. 83.1 (m) Notwithstanding any law or rule to the contrary, the 83.2 board of teaching shall issue an alternative two-year license to 83.3 teach in Minnesota if the applicant: 83.4 (1) holds a degree from an out-of-state institution of 83.5 higher education that is comparable in rank and standing to a 83.6 Minnesota state university, the University of Minnesota, or a 83.7 nonpublic state liberal arts college or university, provided the 83.8 applicant received the degree for completing a teacher 83.9 preparation program; 83.10 (2) has successfully completed a basic skills exam in 83.11 reading, writing, and mathematics approved by the board of 83.12 teaching under section 122A.09, subdivision 4, clause (b); 83.13 (3) has undergone a background check under section 122A.18, 83.14 subdivision 8, and, as a result of the background check, is 83.15 eligible to be licensed by the board of teaching; and 83.16 (4) documents that the applicant has experience as a 83.17 licensed teacher of school-age children and provides personal 83.18 references. 83.19 A school district that hires a teacher with an alternative 83.20 two-year license under this subdivision shall name for the 83.21 teacher a mentorship team that includes the school principal or 83.22 other person charged with administering the school site. The 83.23 team shall evaluate the teacher and recommend to the board of 83.24 teaching whether or not the teacher should receive a continuing 83.25 license. If the recommendation is favorable, the board of 83.26 teaching shall issue a continuing license to the teacher. If 83.27 the recommendation is unfavorable, the board of teaching may, at 83.28 its discretion, renew the alternative two-year license under 83.29 this subdivision for an additional two-year period or decline to 83.30 further consider the applicant for a license under this 83.31 subdivision. 83.32 Sec. 5. Minnesota Statutes 1998, section 122A.18, 83.33 subdivision 2, is amended to read: 83.34 Subd. 2. [TEACHER AND SUPPORT PERSONNEL QUALIFICATIONS.] 83.35 (a) The board of teaching must issue licenses under its 83.36 jurisdiction to persons the board finds to be qualified and 84.1 competent for their respective positions. 84.2 (b) The board must require a person to successfully 84.3 complete an examination of skills in reading, writing, and 84.4 mathematics before being granted an initial teaching license to 84.5 provide direct instruction to pupils in prekindergarten, 84.6 elementary, secondary, or special education programs. The board 84.7 must require colleges and universities offering a board approved 84.8 teacher preparation program to provide remedial assistance that 84.9 includes a formal diagnostic component to persons enrolled in 84.10 their institution who did not achieve a qualifying score on the 84.11 skills examination, including those for whom English is a second 84.12 language. The colleges and universities must provide assistance 84.13 in the specific academic areas of deficiency in which the person 84.14 did not achieve a qualifying score. School districts must 84.15 provide similar, appropriate, and timely remedial assistance 84.16 that includes a formal diagnostic component and mentoring to 84.17 those persons employed by the district who completed their 84.18 teacher education program outside the state of Minnesota, 84.19 received a one-year license to teach in Minnesota and did not 84.20 achieve a qualifying score on the skills examination, including 84.21 those persons for whom English is a second language. The board 84.22 of teaching shall report annually to the education committees of 84.23 the legislature on the total number of teacher candidates during 84.24 the most recent school year taking the basic skills examination 84.25 under section 122A.09, subdivision 4, clause (b), the number who 84.26 achieve a qualifying score on the examination, the number who do 84.27 not achieve a qualifying score on the examination, the 84.28 distribution of all candidates' scores, the number of candidates 84.29 who have taken the examination at least once before, and the 84.30 number of candidates who have taken the examination at least 84.31 once before and achieve a qualifying score. The data shall be 84.32 disaggregated to the institutional level. 84.33 (c) A person who has completed an approved teacher 84.34 preparation program and obtained a one-year license to teach, 84.35 but has not successfully completed the skills examination, may 84.36 renew the one-year license for two additional one-year periods. 85.1 Each renewal of the one-year license is contingent upon the 85.2 licensee: 85.3 (1) providing evidence of participating in an approved 85.4 remedial assistance program provided by a school district or 85.5 post-secondary institution that includes a formal diagnostic 85.6 component in the specific areas in which the licensee did not 85.7 obtain qualifying scores; and 85.8 (2) attempting to successfully complete the skills 85.9 examination during the period of each one-year license. 85.10 (d) The board of teaching must grant continuing licenses 85.11 only to those persons who have met board criteria for granting a 85.12 continuing license, which includes successfully completing the 85.13 skills examination in reading, writing, and mathematics. 85.14 (e) All colleges and universities approved by the board of 85.15 teaching to prepare persons for teacher licensure must include 85.16 in their teacher preparation programs a common core of teaching 85.17 knowledge and skills to be acquired by all persons recommended 85.18 for teacher licensure. This common core shall meet the 85.19 standards developed by the interstate new teacher assessment and 85.20 support consortium in its 1992 "model standards for beginning 85.21 teacher licensing and development." Amendments to standards 85.22 adopted under this paragraph are covered by chapter 14. The 85.23 board of teaching shall report annually to the education 85.24 committees of the legislature on the performance of teacher 85.25 candidates on common core assessments of knowledge and skills 85.26 under this paragraph during the most recent school year. 85.27 EFFECTIVE DATE: This section is effective for the 85.28 2000-2001 school year and thereafter. 85.29 Sec. 6. [122A.655] [RECRUITMENT OF EXCELLENT TEACHERS IN 85.30 SCIENCE, MATH, INDUSTRIAL TECHNOLOGY, AND SPECIAL EDUCATION AND 85.31 IN RURAL AREAS; LOAN FORGIVENESS PROGRAM.] 85.32 Subdivision 1. [PROGRAM ESTABLISHED; ACCOUNT CREATED.] (a) 85.33 A loan forgiveness program is established to assist Minnesota 85.34 public schools in recruiting and retaining excellent teachers in 85.35 science, math, industrial technology, and special education and 85.36 in rural areas. A loan forgiveness program account is created 86.1 in the state treasury. The account consists of money 86.2 appropriated by the legislature and repayments and penalties 86.3 collected under subdivision 4. All money in this account is 86.4 annually appropriated to the commissioner and must be used to 86.5 repay loans of qualified licensed teachers who agree to teach in 86.6 high-need areas under subdivision 2. 86.7 (b) A school district that employs a teacher participating 86.8 in this program must provide the teacher with mentoring that: 86.9 (1) offers appropriate intervention, which may include 86.10 assisting with student discipline or classroom management, 86.11 adjustments to the teaching assignment, student motivation, 86.12 lesson planning, accommodations for individual student 86.13 differences, or finding and using effective materials; 86.14 (2) orients the teacher to the school and the community; 86.15 and 86.16 (3) ensures instructional and interpersonal support that 86.17 fosters professional development and the teacher's retention. 86.18 Subd. 2. [ELIGIBILITY; APPLICATION.] (a) To participate in 86.19 this program, a person must: 86.20 (1) have graduated from an approved teacher preparation 86.21 institution within 12 months of submitting an application to the 86.22 commissioner to participate in this program; 86.23 (2) have a 3.0 grade point average or higher in that 86.24 portion of the teacher preparation program affecting licensure 86.25 in the field of math, science, industrial technology, or special 86.26 education, and be licensed to teach in the field of math, 86.27 science, industrial technology, or special education; and 86.28 (3) agree to be employed as a teacher for at least three 86.29 consecutive school years in one Minnesota public school. 86.30 (b) A person who meets the criteria in paragraph (a) and 86.31 agrees to be employed as a teacher in a public school located in 86.32 Minnesota outside the metropolitan area, as defined in section 86.33 473.121, subdivision 2, is eligible to receive an additional 86.34 amount of $1,000 per year under subdivision 3. 86.35 (c) To be eligible to participate in this program, a person 86.36 must submit an application to the commissioner in the form and 87.1 manner the commissioner prescribes. 87.2 (d) The commissioner shall select applicants that qualify 87.3 for this program, notify eligible people about the program, 87.4 develop and disseminate application materials, and carry out 87.5 other activities needed to implement this section. 87.6 Subd. 3. [LOAN FORGIVENESS.] For fiscal year 2001, the 87.7 commissioner may select teacher applicants to participate in 87.8 this program. Program participants are responsible for securing 87.9 their own loans. Program participants who meet the criteria in 87.10 subdivision 2, paragraph (a), may designate for each year of 87.11 post-secondary education leading to a license to teach, up to a 87.12 total of three years, an agreed amount, not to exceed $3,000 per 87.13 year, as a qualified loan. Program participants who meet the 87.14 criteria in subdivision 2, paragraphs (a) and (b), may designate 87.15 for each year of post-secondary education leading to a license 87.16 to teach, up to a total of three years, an agreed amount not to 87.17 exceed $4,000 per year, as a qualified loan. For each year that 87.18 a participant is employed in a school district according to 87.19 subdivision 2, up to a total of three years, the commissioner 87.20 shall annually pay an amount equal to one year of qualified 87.21 loans. 87.22 Subd. 4. [PENALTY.] If a teacher participating in this 87.23 program does not fulfill the required three years of service in 87.24 a qualifying public school for full repayment of all qualified 87.25 loans, then the commissioner must collect from the teacher the 87.26 amount paid under this loan forgiveness program. The 87.27 commissioner shall deposit the money the commissioner collects 87.28 in the loan forgiveness program account under subdivision 1. 87.29 The commissioner may grant a waiver for all or part of the money 87.30 owed as a result of a penalty if, according to criteria 87.31 established by the commissioner, emergency circumstances prevent 87.32 the teacher from fulfilling the teacher's three-year commitment 87.33 to teach. 87.34 Sec. 7. [123B.055] [CONTRACTS FOR COMPUTERS OR RELATED 87.35 EQUIPMENT OR SERVICE.] 87.36 The school board of a school district may not enter into a 88.1 contract or permit a school within the district to enter into a 88.2 contract for the use of a computer or related equipment or 88.3 service that requires advertising to be disseminated to students 88.4 unless the school board: 88.5 (1) enters into the contract at a public hearing of the 88.6 school board; 88.7 (2) makes a finding that the offered electronic product or 88.8 service is an integral component of students' education; 88.9 (3) provides written notice to students' parents that 88.10 advertising will be used in the classroom, media center, 88.11 computer lab, or other areas of learning; 88.12 (4) as part of normal, ongoing district communications with 88.13 parents, allows parents to request in writing that (i) their 88.14 student not be exposed to the program that contains the 88.15 advertising for the current school year, or that (ii) any or all 88.16 directory information relating to the student that is collected 88.17 as a result of this contract is not disclosed; and 88.18 (5) honors parents' request, under clause (4), that their 88.19 student not be exposed to the advertising program or that 88.20 directory information relating to the student is not disclosed 88.21 and allows parents to withdraw their request at any time. 88.22 Advertising under this section does not include the 88.23 identification of the source of the document or information. 88.24 EFFECTIVE DATE: This section is effective the day 88.25 following final enactment. 88.26 Sec. 8. Minnesota Statutes 1998, section 123B.79, 88.27 subdivision 7, is amended to read: 88.28 Subd. 7. [ACCOUNT TRANSFER FOR CERTAIN SEVERANCE PAY.] A 88.29 district may maintain in adesignatedreserve for certain 88.30 severance pay account not more than 50 percent of the amount 88.31 necessary to meet the obligations for the portion of severance 88.32 pay that constitutes compensation for accumulated sick leave to 88.33 be used for payment of premiums for group insurance provided for 88.34 former employees by the district. The amount necessary must be 88.35 calculated according to standards established by theadvisory88.36council on uniform financial accounting and reporting89.1standardsdepartment. 89.2 Sec. 9. Minnesota Statutes 1998, section 123B.86, 89.3 subdivision 1, is amended to read: 89.4 Subdivision 1. [GENERAL PROVISIONS.] A district shall 89.5 provide equal transportation within the district for all school 89.6 children to any school when transportation is deemed necessary 89.7 by the school board because of distance or traffic condition in 89.8 like manner and form as provided in sections 123B.88 and124.22389.9 123B.92, when applicable. 89.10 Sec. 10. Minnesota Statutes 1998, section 123B.88, 89.11 subdivision 3, is amended to read: 89.12 Subd. 3. [TRANSPORTATION SERVICES CONTRACTS.] The board 89.13 may contract for the furnishing of authorized transportation 89.14 underrules established by the commissionersection 123B.52, and 89.15 may purchase gasoline and furnish same to a contract carrier for 89.16 use in the performance of a contract with the school district 89.17 for transportation of school children to and from school. 89.18 Sec. 11. Minnesota Statutes 1998, section 124D.081, 89.19 subdivision 6, is amended to read: 89.20 Subd. 6. [PREPAREDNESS REVENUE.] (a) A qualifying school 89.21 district is eligible for first-grade preparedness revenue equal 89.22 to the basic formula allowance for that year times the number of 89.23 children five years of age or older enrolled in a kindergarten 89.24 program at the site on October 1 of the previous year times .53. 89.25 (b) This revenue must supplement and not replace 89.26 compensatory revenue that the district uses for the same or 89.27 similar purposes under chapters 120B, 123A, 123B, 124D, 126C, 89.28 and 127A. 89.29 (c) A pupil enrolled in the first grade preparedness 89.30 program at a qualifying school site is eligible for 89.31 transportation under section 123B.88, subdivision 1. 89.32 (d) First grade preparedness revenue paid to a charter 89.33 school for which a school district is providing transportation 89.34 according to section 124D.10, subdivision 16, shall be decreased 89.35 by an amount equal to the product of$170the formula allowance 89.36 according to section 126C.10, subdivision 2, times .0485 times 90.1 the pupil units calculated according to paragraph (a). This 90.2 amount shall be paid to the school district for transportation 90.3 costs. 90.4 Sec. 12. Minnesota Statutes 1999 Supplement, section 90.5 124D.10, subdivision 3, is amended to read: 90.6 Subd. 3. [SPONSOR.] A school board,; intermediate school 90.7 district school board,; educationdistrictsdistrict organized 90.8 under sections 123A.15 to 123A.19,; charitable organization 90.9 under section 501(c)(3) of the Internal Revenue Code of 1986 90.10 that is a member of the Minnesota council of nonprofits, 90.11 registered with the attorney general's office, and reports an 90.12 end-of-year fund balance of at least $1,000,000; Minnesota 90.13 private college,that grants two- or four-year degrees and is 90.14 registered with the higher education services office under 90.15 chapter 136A; community college, state university, or technical 90.16 college, governed by the board of trustees of the Minnesota 90.17 state colleges and universities; or the University of Minnesota 90.18 may sponsor one or more charter schools. 90.19 EFFECTIVE DATE: This section is effective the day 90.20 following final enactment. 90.21 Sec. 13. Minnesota Statutes 1999 Supplement, section 90.22 124D.10, subdivision 4, is amended to read: 90.23 Subd. 4. [FORMATION OF SCHOOL.] (a) A sponsor may 90.24 authorize one or more licensed teachers under section 122A.18, 90.25 subdivision 1, to operate a charter school subject to approval 90.26 by the commissioner. A school board or a board or designee of a 90.27 higher education institution must vote on charter school 90.28 application for sponsorship no later than 90 days after 90.29 receiving the application. After 90 days, the applicant may 90.30 apply to the commissioner. If a school board or a board or 90.31 designee of a higher education institution elects not to sponsor 90.32 a charter school, the applicant may appeal theboard'sdecision 90.33 of the school board or higher education institution board or 90.34 designee to the commissioner. If the commissioner authorizes 90.35 the school, the commissioner must sponsor the school according 90.36 to this section. The school must be organized and operated as a 91.1 cooperative under chapter 308A or nonprofit corporation under 91.2 chapter 317A. 91.3 (b) Before the operators may form and operate a school, the 91.4 sponsor must file an affidavit with the commissioner stating its 91.5 intent to authorize a charter school. The affidavit must state 91.6 the terms and conditions under which the sponsor would authorize 91.7 a charter school. The charter school developers must submit the 91.8 charter school proposal and affidavit to the commissioner 91.9 quarterly on dates the commissioner determines and announces in 91.10 advance. The commissioner must approve or disapprove the 91.11 sponsor's proposed authorization within 60 days ofreceipt of91.12 receiving the affidavit. Failure to obtain commissioner 91.13 approval precludes a sponsor from authorizing the charter school 91.14 that was the subject of the affidavit. The commissioner shall 91.15 organize and facilitate an orderly review of charter school 91.16 proposals. The commissioner may appoint a review committee to 91.17 assist in the review process. The committee may review 91.18 applications and participate in interviews with applicants. The 91.19 committee's role shall be solely advisory. The commissioner 91.20 shall complete the review and decide to grant or not grant a new 91.21 charter within 60 days of receiving the application. 91.22 (c) The operators authorized to organize and operate a 91.23 school must hold an election for members of the school's board 91.24 of directors in a timely manner after the school is operating. 91.25 Any staff members who are employed at the school, including 91.26 teachers providing instruction under a contract with a 91.27 cooperative, and all parents of children enrolled in the school 91.28 may participate in the election. Licensed teachers employed at 91.29 the school, including teachers providing instruction under a 91.30 contract with a cooperative, must be a majority of the members 91.31 of the board of directors, unless the commissioner waives the 91.32 requirement for the school. A provisional board may operate 91.33 before the election of the school's board of directors. Board 91.34 of director meetings must comply with section 471.705. 91.35 (d) The granting or renewal of a charter by a sponsoring 91.36 entity must not be conditioned upon the bargaining unit status 92.1 of the employees of the school. 92.2 EFFECTIVE DATE: This section is effective the day 92.3 following final enactment. 92.4 Sec. 14. Minnesota Statutes 1999 Supplement, section 92.5 124D.10, subdivision 6, is amended to read: 92.6 Subd. 6. [CONTRACT.] The sponsor's authorization for a 92.7 charter school must be in the form of a written contract signed 92.8 by the sponsor and the board of directors of the charter 92.9 school. The contract must be completed within 90 days of the 92.10 commissioner's approval of the sponsor's proposed 92.11 authorization. The contract for a charter school must be in 92.12 writing and contain at least the following: 92.13 (1) a description of a program that carries out one or more 92.14 of the purposes in subdivision 1; 92.15 (2) specific outcomes pupils are to achieve under 92.16 subdivision 10; 92.17 (3) admission policies and procedures; 92.18 (4) management and administration of the school; 92.19 (5) requirements and procedures for program and financial 92.20 audits; 92.21 (6) how the school will comply with subdivisions 8, 13, 16, 92.22 and 23; 92.23 (7) assumption of liability by the charter school; 92.24 (8) types and amounts of insurance coverage to be obtained 92.25 by the charter school; 92.26 (9) the term of the contract, which may be up to three 92.27 years for the first term and may be renewed for up to five years 92.28 for subsequent terms if the sponsor determines that the charter 92.29 school board of directors and operators have substantially 92.30 complied with the contract terms; and 92.31 (10) if the board of directors or the operators of the 92.32 charter school provide special instruction and services for 92.33 children with a disability under sections 125A.03 to 125A.24, 92.34 and 125A.65, a description of the financial parameters within 92.35 which the charter school will operate to provide the special 92.36 instruction and services to children with a disability. 93.1 EFFECTIVE DATE: This section is effective the day 93.2 following final enactment. 93.3 Sec. 15. Minnesota Statutes 1999 Supplement, section 93.4 124D.10, subdivision 8, is amended to read: 93.5 Subd. 8. [STATE AND LOCAL REQUIREMENTS.] (a) A charter 93.6 school shall meet all applicable state and local health and 93.7 safety requirements. 93.8 (b) A school sponsored by a school board may be located in 93.9 any district, unless the school board of the district of the 93.10 proposed location disapproves by written resolution. If such a 93.11 board denies a request to locate within its boundaries a charter 93.12 school sponsored by another school board, the sponsoring school 93.13 board may appeal to the commissioner. If the commissioner 93.14 authorizes the school, the commissioner must sponsor the school. 93.15 (c) A charter school must be nonsectarian in its programs, 93.16 admission policies, employment practices, and all other 93.17 operations. A sponsor may not authorize a charter school or 93.18 program that is affiliated with a nonpublic sectarian school or 93.19 a religious institution. 93.20 (d) Charter schools must not be used as a method of 93.21 providing education or generating revenue for students who are 93.22 being home-schooled. 93.23 (e) The primary focus of a charter school must be to 93.24 provide a comprehensive program of instruction for at least one 93.25 grade or age group from five through 18 years of age. 93.26 Instruction may be provided to people younger than five years 93.27 and older than 18 years of age. 93.28 (f) A charter school may not charge tuition. 93.29 (g) A charter school is subject to and must comply with 93.30 chapter 363 and section 121A.04. 93.31 (h) A charter school is subject to and must comply with The 93.32 Pupil Fair Dismissal Act, sections 121A.40 to 121A.56, and the 93.33 Minnesota Public School Fee law, sections 123B.34 to 123B.39. 93.34 (i) A charter school is subject to the same financial 93.35 audits, audit procedures, and audit requirements as a district. 93.36 The audit mustbe consistentcomply with the requirements of 94.1 sections 123B.75 to 123B.83, except to the extent deviations are 94.2 necessary because of the program at the school. The department 94.3 of children, families, and learning, state auditor, or 94.4 legislative auditor may conduct financial, program, or 94.5 compliance audits. A charter school determined to be in 94.6 statutory operating debt under sections 123B.81 to 123B.83 must 94.7 submit a plan under section 123B.81, subdivision 4. 94.8 (j) A charter school is a district for the purposes of tort 94.9 liability under chapter 466. 94.10 EFFECTIVE DATE: This section is effective the day 94.11 following final enactment. 94.12 Sec. 16. Minnesota Statutes 1999 Supplement, section 94.13 124D.10, subdivision 11, is amended to read: 94.14 Subd. 11. [EMPLOYMENT AND OTHER OPERATING MATTERS.] A 94.15 charter school must employ or contract with necessary teachers, 94.16 as defined by section 122A.15, subdivision 1, who hold valid 94.17 licenses to perform the particular service for which they are 94.18 employed in the school. The charter school's state aid may be 94.19 reduced under section 127A.42 if the school employs a teacher 94.20 who does not hold a valid teaching license or permit in a public 94.21 school or is not otherwise approved by the board of teaching. 94.22 The school may employ necessary employees who are not required 94.23 to hold teaching licenses to perform duties other than teaching 94.24 and may contract for other services. The school may discharge 94.25 teachers and nonlicensed employees. A person, without holding a 94.26 valid administrator's license, may perform administrative, 94.27 supervisory, or instructional leadership duties. 94.28 The board of directors also shall decide matters related to 94.29 the operation of the school, including budgeting, curriculum and 94.30 operating procedures. 94.31 EFFECTIVE DATE: This section is effective the day 94.32 following final enactment. 94.33 Sec. 17. Minnesota Statutes 1999 Supplement, section 94.34 124D.10, subdivision 14, is amended to read: 94.35 Subd. 14. [ANNUAL PUBLIC REPORTS.] A charter school must 94.36 report at least annually to its sponsor and the commissioner the 95.1 information required by the sponsoror the commissioner. The 95.2 reports are public data under chapter 13. 95.3 Sec. 18. Minnesota Statutes 1999 Supplement, section 95.4 124D.10, subdivision 15, is amended to read: 95.5 Subd. 15. [REVIEW AND COMMENT.] The department must review 95.6 and comment on the evaluation, by thechartering school district95.7 sponsor, of the performance of a charter school before the 95.8 charter school's contract is renewed. A sponsor shall monitor 95.9 and evaluate the fiscal and student performance of the school, 95.10 and may for this purpose annually assess the school up to $10 95.11 per student up to a maximum of $3,500. The informationfromfor 95.12 the review and comment shall be reported by the sponsor to the 95.13 commissioner of children, families, and learning in a timely 95.14 manner. Periodically, the commissioner shall report trends or 95.15 suggestions based on the evaluation of charter school contracts 95.16 to the education committees of the state legislature. 95.17 EFFECTIVE DATE: This section is effective the day 95.18 following final enactment. 95.19 Sec. 19. Minnesota Statutes 1999 Supplement, section 95.20 124D.10, subdivision 23, is amended to read: 95.21 Subd. 23. [CAUSES FOR NONRENEWAL OR TERMINATION OF CHARTER 95.22 SCHOOL CONTRACT.] (a) The duration of the contract with a 95.23 sponsor must be for the term contained in the contract according 95.24 to subdivision 6. The sponsor may or may not renew a contract 95.25 at the end of the term for any ground listed in paragraph (b). 95.26 A sponsor may unilaterally terminate a contract during the term 95.27 of the contract for any ground listed in paragraph (b). At 95.28 least 60 days before not renewing or terminating a contract, the 95.29 sponsor shall notify the board of directors of the charter 95.30 school of the proposed action in writing. The notice shall 95.31 state the grounds for the proposed action in reasonable detail 95.32 and that the charter school's board of directors may request in 95.33 writing an informal hearing before the sponsor within 14 days of 95.34 receiving notice of nonrenewal or termination of the contract. 95.35 Failure by the board of directors to make a written request for 95.36 a hearing within the 14-day period shall be treated as 96.1 acquiescence to the proposed action. Upon receiving a timely 96.2 written request for a hearing, the sponsor shall give reasonable 96.3 notice to the charter school's board of directors of the hearing 96.4 date. The sponsor shall conduct an informal hearing before 96.5 taking final action. The sponsor shall take final action to 96.6 renew or not renew a contract by the last day of classes in the 96.7 school year. If the sponsor is a local board, the school's 96.8 board of directors may appeal the sponsor's decision to the 96.9 commissioner. 96.10 (b) A contract may be terminated or not renewed upon any of 96.11 the following grounds: 96.12 (1) failure to meet the requirements for pupil performance 96.13 contained in the contract; 96.14 (2) failure to meet generally accepted standards of fiscal 96.15 management; 96.16 (3) violations of law; or 96.17 (4) other good cause shown. 96.18 If a contract is terminated or not renewed, the school must 96.19 be dissolved according to the applicable provisions of chapter 96.20 308A or 317A, except when the commissioner approves the decision 96.21 of a different eligible sponsor to authorize the charter school. 96.22 (c) The commissioner, after providing reasonable notice to 96.23 the board of directors of a charter school and the existing 96.24 sponsor, and after providing an opportunity for a public 96.25 hearing, may terminate the existing sponsorial relationship if 96.26 the charter school has a history of: 96.27 (1) financial mismanagement; or 96.28 (2) repeated violations of the law. 96.29 EFFECTIVE DATE: This section is effective the day 96.30 following final enactment. 96.31 Sec. 20. Minnesota Statutes 1999 Supplement, section 96.32 124D.11, subdivision 4, is amended to read: 96.33 Subd. 4. [BUILDING LEASE AID.]When a charter school finds96.34it economically advantageous to rent or lease a building or land96.35for any instructional purposes and it determines that the total96.36operating capital revenue under section 126C.10, subdivision 13,97.1is insufficient for this purpose, it may apply to the97.2commissioner for building lease aid for this purpose. Criteria97.3for aid approval and revenue uses shall be as defined for the97.4building lease levy in section 126C.40, subdivision 1,97.5paragraphs (a) and (b).A charter school is eligible for 97.6 building lease aid. The criteria for approving lease 97.7 applications under this subdivision must include the: 97.8 (1) reasonableness of the price; and 97.9 (2) conformity of the lease to state laws and rules. 97.10 The proceeds of the lease aid must not be used for custodial or 97.11 other maintenance services. The amount of building lease aid 97.12 per pupil unit served for a charter school for any year shall 97.13 not exceed the lesser of (a) 90 percent of the approved lease 97.14 cost or (b) the product of the pupil units served for the 97.15 current school year times $1,500. Existing charter schools must 97.16 apply by January 15 of the fiscal year in which the lease 97.17 applies to be considered for this program. The application must 97.18 include the cost of the lease and confirmation that a 97.19 certificate of occupancy has been issued for the building. The 97.20 commissioner must act on an application in this section within 97.21 30 calendar days of receiving the application. 97.22 Sec. 21. Minnesota Statutes 1999 Supplement, section 97.23 124D.11, subdivision 6, is amended to read: 97.24 Subd. 6. [OTHER AID, GRANTS, REVENUE.] (a) A charter 97.25 school is eligible to receive other aids, grants, and revenue 97.26 according to chapters 120A to 129C, as though it were a district. 97.27 (b) Notwithstanding paragraph (a), a charter school may not 97.28 receive aid, a grant, or revenue if a levy is required to obtain 97.29 the money, except as otherwise provided in this section. 97.30 (c) Federal aid received by the state must be paid to the 97.31 school, if it qualifies for the aid as though it were a school 97.32 district. 97.33 (d) A charter school may receive money from any source for 97.34 capital facilities needs. In the year-end report to the 97.35 commissioner of children, families, and learning, the charter 97.36 school shall report the total amount of funds received from 98.1 grants and other outside sources. 98.2 (e) Notwithstanding paragraph (a) or (b), a charter school 98.3is eligiblemay apply for a grant to receive the aid portion of 98.4 integration revenue under section 124D.86, subdivision 3, for 98.5 enrolled students who are residents of a district that is 98.6 eligible for integration revenueif the enrollment of the pupil98.7in the charter school contributes to desegregation or98.8integration purposes. The commissioner shall determine grant 98.9 recipients and may adopt application guidelines. The grants 98.10 must be competitively determined and must demonstrate that 98.11 enrolling pupils in the charter school contributes to 98.12 desegregation or integration purposes as determined by the 98.13 commissioner. If the charter school has elected not to provide 98.14 transportation under section 124D.10, subdivision 16, the aid 98.15 shall be reduced by the amount per pupil unit specified for the 98.16 district where the charter school is located under section 98.17 123B.92, subdivision 8. 98.18 EFFECTIVE DATE: This section is effective the day 98.19 following final enactment. 98.20 Sec. 22. Minnesota Statutes 1998, section 124D.128, 98.21 subdivision 4, is amended to read: 98.22 Subd. 4. [TRANSPORTATION.] A district must report data to 98.23 the department as required by the department to account for 98.24 learning year summer transportation expendituresfor this98.25program must be included in nonregular transportation according98.26to sections 124.225, subdivision 8; and 124.226, subdivision 4. 98.27 Sec. 23. [125B.22] [INTERNET ACCESS FOR STUDENTS.] 98.28 (a) Recognizing the difference between school libraries, 98.29 school computer labs, and school media centers, which serve 98.30 unique educational purposes, and public libraries, which are 98.31 designed for public inquiry, all computers at a school site with 98.32 access to the Internet available for student use must be 98.33 equipped, to the maximum extent permitted under law, to 98.34 restrict, including by use of available software filtering 98.35 technology, all student access to material that is reasonably 98.36 believed to be obscene or child pornography or material harmful 99.1 to minors under federal or state law. 99.2 (b) A school site is not required to purchase filtering 99.3 technology if the school site would incur more than incidental 99.4 expense in making the purchase. 99.5 (c) "School site" means an education site as defined in 99.6 section 123B.04, subdivision 1, or charter school under section 99.7 124D.10. 99.8 Sec. 24. [134.77] [INTERNET ACCESS FOR CHILDREN.] 99.9 (a) Recognizing the difference between public libraries, 99.10 which are designed for public inquiry, and school libraries, 99.11 school computer labs, and school media centers, which serve 99.12 unique educational purposes, all public library computers with 99.13 access to the Internet available for use by children under the 99.14 age of 17 must be equipped, to the maximum extent permitted 99.15 under law, to restrict, including by use of available software 99.16 filtering technology, all access by children to material that is 99.17 reasonably believed to be obscene or child pornography or 99.18 material harmful to minors under federal or state law. 99.19 (b) A public library is not required to purchase filtering 99.20 technology if the public library would incur more than 99.21 incidental expense in making the purchase. 99.22 (c) This section does not apply to the libraries of 99.23 post-secondary institutions. 99.24 Sec. 25. Minnesota Statutes 1998, section 471.15, is 99.25 amended to read: 99.26 471.15 [RECREATIONAL FACILITIES BY MUNICIPALITY, VETERANS; 99.27 BONDS.] 99.28 (a) Any home rule charter or statutory city or any town, 99.29 county, school district, or any board thereof, or any 99.30 incorporated post of the American Legion or any other 99.31 incorporated veterans' organization, may expend not to exceed 99.32 $800 in any one year, for the purchase of awards and trophies 99.33 and may operate a program of public recreation and playgrounds; 99.34 acquire, equip, and maintain land, buildings, or other 99.35 recreational facilities, including an outdoor or indoor swimming 99.36 pool; and expend funds for the operation of such program 100.1 pursuant to the provisions of sections 471.15 to 471.19. The 100.2 city, town, county or school district may issue bonds pursuant 100.3 to chapter 475 for the purpose of carrying out the powers 100.4 granted by this section. The city, town, county or school 100.5 district may operate the program and facilities directly or 100.6 establish one or more recreation boards to operate all or 100.7 various parts of them. 100.8 (b) A home rule charter or statutory city, a county, or a 100.9 town may expend funds for the purpose of supporting student 100.10 academic or extracurricular activities sponsored by the local 100.11 school district. 100.12 Sec. 26. Laws 1999, chapter 241, article 5, section 18, 100.13 subdivision 5, is amended to read: 100.14 Subd. 5. [CHARTER SCHOOL BUILDING LEASE AID.] For building 100.15 lease aid according to Minnesota Statutes, section 124D.11, 100.16 subdivision 4: 100.17$2,992,000$ 6,499,000 ..... 2000 100.18$3,616,000$10,864,000 ..... 2001 100.19 The 2000 appropriation includes $194,000 for 1999 and 100.20$2,798,000$6,305,000 for 2000. 100.21 The 2001 appropriation includes$311,000$700,000 for 2000 100.22 and$3,305,000$10,164,000 for 2001. 100.23 EFFECTIVE DATE: This section is effective the day 100.24 following final enactment. 100.25 Sec. 27. Laws 1999, chapter 241, article 5, section 18, 100.26 subdivision 6, is amended to read: 100.27 Subd. 6. [CHARTER SCHOOL START-UP GRANTS.] For charter 100.28 school start-up cost aid under Minnesota Statutes, section 100.29 124D.11: 100.30$1,789,000$1,955,000 ..... 2000 100.31$1,876,000$2,926,000 ..... 2001 100.32 The 2000 appropriation includes $100,000 for 1999 and 100.33$1,689,000$1,855,000 for 2000. 100.34 The 2001 appropriation includes$188,000$206,000 for 100.3519992000 and$1,688,000$2,720,000 for 2001. 100.36 Any balance in the first year does not cancel but is 101.1 available in the second year. This appropriation may also be 101.2 used for grants to convert existing schools into charter schools. 101.3 EFFECTIVE DATE: This section is effective the day 101.4 following final enactment. 101.5 Sec. 28. [RESIDENTIAL ACADEMIES.] 101.6 The commissioner may not withdraw or reallocate funds from 101.7 a recipient who has been awarded a grant under Laws 1998, 101.8 chapter 398, article 5, section 46, and has received approval 101.9 for updated capital and operating budget plans after June 1, 101.10 1999, without the prior consent of the legislature. 101.11 EFFECTIVE DATE: This section is effective the day 101.12 following final enactment. 101.13 Sec. 29. [APPROPRIATION.] 101.14 Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND 101.15 LEARNING.] The sum indicated in this section is appropriated 101.16 from the general fund to the commissioner of children, families, 101.17 and learning for the fiscal year designated. 101.18 Subd. 2. [RECRUITMENT OF EXCELLENT TEACHERS; LOAN 101.19 FORGIVENESS PROGRAM.] For a loan forgiveness program to help 101.20 recruit excellent teachers under Minnesota Statutes, section 101.21 122A.65: 101.22 $500,000 ..... 2001 101.23 Subd. 3. [HEALTH CARE PLAN SUMMARY.] For a study to 101.24 examine health care for prekindergarten through grade 12 public 101.25 school employees: 101.26 $200,000 ..... 2001 101.27 The commissioner of children, families, and learning in 101.28 consultation with the commissioner of employee relations, must 101.29 conduct a study to address issues of adverse selection, cost 101.30 containment, consumer choice, and retiree health care and 101.31 consider options for dealing with other employee concerns. 101.32 ARTICLE 7 101.33 KINDERGARTEN THROUGH GRADE 12 EDUCATION: 101.34 NUTRITION; FUND TRANSFERS 101.35 Section 1. Minnesota Statutes 1998, section 124D.111, 101.36 subdivision 1, is amended to read: 102.1 Subdivision 1. [SCHOOL LUNCH AID COMPUTATION.] Each school 102.2 year, the state must pay districts participating in the national 102.3 school lunch program the amount of6.5eight cents for each full 102.4 paid, reduced, and free student lunch served to students in the 102.5 district. 102.6 Sec. 2. Minnesota Statutes 1999 Supplement, section 102.7 124D.1155, subdivision 2, is amended to read: 102.8 Subd. 2. [ELIGIBILITY.] An applicant for a grant must be a 102.9 public or nonpublic elementary school that participates in the 102.10 federal school breakfast and lunch programs. The commissioner 102.11 must give first priority to schools where at least 33 percent of 102.12 the lunches the school served to children during the second 102.13 preceding school year were provided free or at a reduced price. 102.14 The commissioner must give second priority to all other public 102.15 or nonpublic elementary schools. 102.16 Sec. 3. Laws 1999, chapter 241, article 6, section 14, 102.17 subdivision 2, is amended to read: 102.18 Subd. 2. [ABATEMENT AID.] For abatement aid according to 102.19 Minnesota Statutes, section 127A.49: 102.20$9,110,000$9,577,000 ..... 2000 102.21$8,947,000$8,279,000 ..... 2001 102.22 The 2000 appropriation includes $1,352,000 for 1999 and 102.23$7,758,000$8,225,000 for 2000. 102.24 The 2001 appropriation includes$861,000$914,000 for 2000 102.25 and$8,086,000$7,365,000 for 2001. 102.26 Sec. 4. Laws 1999, chapter 241, article 6, section 14, 102.27 subdivision 3, is amended to read: 102.28 Subd. 3. [NONPUBLIC PUPIL AID.] For nonpublic pupil 102.29 education aid according to Minnesota Statutes, sections 123B.40 102.30 to 123B.48 and 123B.87: 102.31$10,996,000$11,552,000 ..... 2000 102.32$11,878,000$13,448,000 ..... 2001 102.33 The 2000 appropriation includes $970,000 for 1999 and 102.34$10,026,000$10,582,000 for 2000. 102.35 The 2001 appropriation includes$1,114,000$1,175,000 for 102.36 2000 and$10,764,000$12,273,000 for 2001. 103.1 The department shall recompute the maximum allotments 103.2 established on March 1, 1999, for fiscal year 2000 under 103.3 Minnesota Statutes, sections 123B.42, subdivision 3, and 103.4 123B.44, subdivision 6, to reflect the amount appropriated in 103.5 this subdivision for fiscal year 2000. 103.6 Sec. 5. Laws 1999, chapter 241, article 6, section 14, 103.7 subdivision 4, is amended to read: 103.8 Subd. 4. [CONSOLIDATION TRANSITION AID.] For districts 103.9 consolidating under Minnesota Statutes, section 123A.485: 103.10$451,000$563,000 ..... 2000 103.11$375,000$455,000 ..... 2001 103.12 The 2000 appropriation includes $113,000 for 1999 and 103.13$338,000$450,000 for 2000. 103.14 The 2001 appropriation includes$37,000$50,000 for 2000 103.15 and$338,000$405,000 for 2001. 103.16 Any balance in the first year does not cancel but is 103.17 available in the second year. 103.18 Sec. 6. Laws 1999, chapter 241, article 6, section 14, 103.19 subdivision 5, is amended to read: 103.20 Subd. 5. [NONPUBLIC PUPIL TRANSPORTATION.] For nonpublic 103.21 pupil transportation aid under Minnesota Statutes, section 103.22 123B.92, subdivision 9: 103.23$18,586,000$20,358,000 ..... 2000 103.24$20,922,000$21,333,000 ..... 2001 103.25 The 2000 appropriation includes $1,848,000 for20001999 103.26 and$16,738,000$18,510,000 for20012000. 103.27 The 2001 appropriation includes$1,860,000$2,057,000 for 103.28 2000 and$19,062,000$19,276,000 for 2001. 103.29 Sec. 7. [FUND TRANSFERS.] 103.30 Subdivision 1. [LAKEVILLE.] Notwithstanding Minnesota 103.31 Statutes, section 123B.79 or 123B.80, on June 30, 2000, 103.32 independent school district No. 194, Lakeville, may permanently 103.33 transfer up to $1,000,000 from its reserved account for 103.34 operating capital to the unreserved, undesignated general fund. 103.35 Subd. 2. [CHOKIO-ALBERTA.] (a) Notwithstanding Minnesota 103.36 Statutes, section 123B.58, 123B.79, or 123B.80, on June 30, 104.1 2000, upon approval of the commissioner of children, families, 104.2 and learning, independent school district No. 771, 104.3 Chokio-Alberta, may permanently transfer up to $121,000 from its 104.4 reserved account for disabled accessibility to its undesignated 104.5 general fund balance. 104.6 (b) Prior to making the fund transfer, independent school 104.7 district No. 771, Chokio-Alberta, must demonstrate to the 104.8 commissioner's satisfaction that the district's school buildings 104.9 are accessible to students or employees with disabilities. 104.10 Subd. 3. [MAHTOMEDI.] Notwithstanding Minnesota Statutes, 104.11 sections 123B.79, 123B.80, and 475.61, subdivision 4, on June 104.12 30, 2000, independent school district No. 832, Mahtomedi, may 104.13 permanently transfer the balance of its debt redemption fund to 104.14 its capital account in its general fund without making a levy 104.15 reduction to purchase land for a school facility. 104.16 Subd. 4. [NORMAN COUNTY EAST.] Notwithstanding Minnesota 104.17 Statutes, sections 123B.79, 123B.80, and 475.61, subdivision 4, 104.18 on June 30, 2000, independent school district No. 2215, Norman 104.19 County East, may permanently transfer up to $419,000 from its 104.20 building construction fund to the reserved account for operating 104.21 capital in the general fund without making a levy reduction. 104.22 Subd. 5. [BROWERVILLE.] Notwithstanding Minnesota 104.23 Statutes, sections 123B.79, 123B.80, and 475.61, subdivision 4, 104.24 on June 30, 2000, independent school district No. 787, 104.25 Browerville, may permanently transfer up to $110,000 from its 104.26 debt redemption fund to its general fund without making a levy 104.27 reduction. 104.28 Subd. 6. [ST. FRANCIS.] Notwithstanding Minnesota 104.29 Statutes, section 123B.53, on June 30, 2000, independent school 104.30 district No. 15, St. Francis, may permanently transfer $534,000 104.31 from its debt service fund to the general fund to help the 104.32 district out of statutory operating debt without making a levy 104.33 reduction. 104.34 Subd. 7. [STAPLES-MOTLEY.] Notwithstanding Minnesota 104.35 Statutes, sections 123B.79, 123B.80, and 475.61, subdivision 4, 104.36 on May 31, 2000, independent school district No. 2170, 105.1 Staples-Motley, may permanently transfer up to $71,000 from the 105.2 debt service account of the former independent school district 105.3 No. 483, Motley, to the operating capitol fund of independent 105.4 school district No. 2170, Staples-Motley, without making a levy 105.5 reduction. 105.6 Subd. 8. [FERGUS FALLS.] Notwithstanding Minnesota 105.7 Statutes, section 123B.79, 123B.80, or 475.61, subdivision 4, on 105.8 June 30, 2000, independent school district No. 544, Fergus 105.9 Falls, may permanently transfer up to $200,000 from the debt 105.10 redemption fund to the general fund without making a levy 105.11 reduction. 105.12 Subd. 9. [LAKEVIEW.] Notwithstanding any law to the 105.13 contrary, independent school district No. 2167, Lakeview, is 105.14 authorized to retain a cooperative facilities grant awarded in 105.15 fiscal year 1995, and may permanently transfer that amount to 105.16 its undesignated general fund balance, to be used to bring its 105.17 bleachers into compliance with Minnesota Statutes, section 105.18 16B.616. 105.19 Subd. 10. [WINONA.] Notwithstanding Minnesota Statutes, 105.20 section 123B.79, 123B.80, 124D.135, 124D.20, or 126C.10, 105.21 subdivision 14, on June 30, 2000, independent school district 105.22 No. 861, Winona, may permanently transfer up to $300,000 from 105.23 its reserved accounts and undesignated balance in the community 105.24 service fund and up to $2,000,000 from its reserve for operating 105.25 capital account in the general fund to the undesignated balance 105.26 in its general fund. 105.27 Subd. 11. [PARKERS PRAIRIE.] Notwithstanding Minnesota 105.28 Statutes, section 123B.79, 123B.80, or 475.61, subdivision 4, 105.29 independent school district No. 547, Parkers Prairie, on June 105.30 30, 2000, may permanently transfer up to $105,000 from the debt 105.31 redemption fund to the general fund without making a levy 105.32 reduction. 105.33 EFFECTIVE DATE: This section is effective the day 105.34 following final enactment. 105.35 Sec. 8. [LEVY RESTORATION; INDEPENDENT SCHOOL DISTRICT NO. 105.36 2859, GLENCOE-SILVER LAKE.] 106.1 (a) Independent school district No. 2859, Glencoe-Silver 106.2 Lake, may levy up to one-third of the total of the sum from 106.3 paragraph (b) in each of the fiscal years 2002, 2003, and 2004. 106.4 (b) For each of the fiscal years of 1999, 2000, and 2001, 106.5 the amount of the levy is equal to the sum of: 106.6 (1) the difference between the maximum amount of levy 106.7 authorized by law for the fiscal year and the amount of levy 106.8 certified by independent school district No. 2859, 106.9 Glencoe-Silver Lake, under Minnesota Statutes 1996 and 1997 106.10 Supplement, section 124.2725; 106.11 (2) the difference between the maximum amount of levy 106.12 authorized by law for the fiscal year and the amount of levy 106.13 certified by independent school district No. 2859, 106.14 Glencoe-Silver Lake, under Minnesota Statutes, section 126C.42; 106.15 and 106.16 (3) the difference between the maximum amount of levy 106.17 authorized by law for the fiscal year and the amount of levy 106.18 certified by independent school district No. 2859, 106.19 Glencoe-Silver Lake, under Minnesota Statutes, section 126C.22. 106.20 EFFECTIVE DATE: This section is effective for taxes 106.21 payable in 2001. 106.22 ARTICLE 8 106.23 KINDERGARTEN THROUGH GRADE 12 EDUCATION: 106.24 LIBRARIES 106.25 Section 1. Laws 1997, First Special Session chapter 4, 106.26 article 8, section 4, as amended by Laws 1998, chapter 398, 106.27 article 7, section 1, and Laws 1999, chapter 241, article 8, 106.28 section 1, is amended to read: 106.29 Sec. 4. [LIBRARY PROJECT.] 106.30 Subdivision 1. [ESTABLISHMENT.] Notwithstanding law to the 106.31 contrary and subject to approvals in subdivision 2, a public 106.32 library may operate as a library project jointly with the school 106.33 library at Nashwauk-Keewatin high school, located in the city of 106.34 Nashwauk. The public library is established to serve persons 106.35 within the boundaries of independent school district No. 319, 106.36 except the city of Keewatin. 107.1 Subd. 2. [APPROVALS.] Operation of the public library is 107.2 contingent upon the governing bodies of cities, towns, and 107.3 unorganized townships within the geographical boundaries of 107.4 independent school district No. 319, except for the city of 107.5 Keewatin, entering into a joint powers agreement under Minnesota 107.6 Statutes 1998, section 471.59, to accomplish the purpose of this 107.7 section. The joint powers agreement must provide for continuing 107.8 the library project if onepartyor more parties to the 107.9 agreement withdraws from or fails to enter into the agreement. 107.10 For the purposes of this subdivision, the Itasca county board is 107.11 designated as the governing body for the unorganized townships. 107.12 Subd. 3. [BOARD; APPOINTMENTS.] The joint powers agreement 107.13 in subdivision 2 shall provide for a library board of seven 107.14 members as follows: two members appointed by the school board 107.15 of independent school district No. 319, one member appointed by 107.16 each town board located within independent school district No. 107.17 319 boundaries that is a member of the library district, one 107.18 member appointed by the council of the city of Nashwauk, and one 107.19 member appointed by the Itasca county board to represent the 107.20 unorganized towns within the school district territory. 107.21 Subd. 4. [BOARD TERMS; COMPENSATION.] The library board 107.22 members shall serve for the term of the library project. An 107.23 appointing authority may remove for misconduct or neglect any 107.24 member it has appointed to the board and may replace that member 107.25 by appointment. Board members shall receive no compensation for 107.26 their services but may be reimbursed for actual and necessary 107.27 travel expenses incurred in the discharge of library board 107.28 duties and activities. 107.29 Subd. 5. [FUNDING.] For taxes payable in1998, 1999, 2000,107.30 2001, 2002, and 2003 only, and provided that the joint powers 107.31 agreement under subdivision 2 has been executed by September 1 107.32 of the previous calendar year, the library board may levy a tax 107.33 in an amount up to $25,000 annually on property located within 107.34 the boundaries of independent school district No. 319, except 107.35 the city of Keewatin.The Itasca county auditor shall collect107.36the tax and distribute it to the library board.The levy shall 108.1 be assessed against the individual members of the joint powers 108.2 agreement. The money may be used for library staff and for the 108.3 purchase of library materials, including computer software.The108.4levy must also fund the amount necessary to receive bookmobile108.5services from the Arrowhead regional library system.For taxes 108.6 payable in1998, 1999, 2000,2001, 2002, and 2003 only, the 108.7 county may not levy under Minnesota Statutes, section 134.07, 108.8 for the areas described in this section. 108.9 Subd. 6. [BUILDING.] The school district shall provide the 108.10 physical space and costs associated with operating the library 108.11 including, but not limited to, heat, light, telephone service, 108.12 and maintenance. 108.13 Subd. 7. [ORGANIZATION.] Immediately after appointment, 108.14 the library board shall organize by electing one of its number 108.15 as president and one as secretary, and it may appoint other 108.16 officers it finds necessary. 108.17 Subd. 8. [DUTIES.] The library board shall adopt bylaws 108.18 and regulations for the library and for the conduct of its 108.19 business as may be expedient and conformable to law. It shall 108.20 have exclusive control of the expenditure of all money collected 108.21 for it. The library board shall appoint a qualified library 108.22 director and other staff, establish the compensation of 108.23 employees, and remove any of them for cause. The library board 108.24 may contract with the school board, the regional library board, 108.25 or the city in which the library is located to provide 108.26 personnel, fiscal, or administrative services. The contract 108.27 shall state the personnel, fiscal, and administrative services 108.28 and payments to be provided by each party. 108.29 Subd. 9. [CRITERIA.] The library shall meet all 108.30 requirements in statutes and rules applicable to public 108.31 libraries and school media centers. A media supervisor licensed 108.32 by the board of teaching may be the director of the library. 108.33 Public parking, restrooms, drinking water, and other necessities 108.34 shall be easily accessible to library patrons. 108.35 EFFECTIVE DATE: This section is effective the day 108.36 following final enactment. 109.1 Sec. 2. Laws 1999, chapter 241, article 8, section 4, 109.2 subdivision 5, is amended to read: 109.3 Subd. 5. [LIBRARY FOR THE BLIND.] For compact shelving, 109.4 technology, and staffing for the Minnesota library for the blind 109.5 and physically handicapped: 109.6 $212,000 ..... 2000 109.7 This appropriation is available until June 30, 2001. 109.8 EFFECTIVE DATE: This section is effective the day 109.9 following final enactment. 109.10 ARTICLE 9 109.11 KINDERGARTEN THROUGH GRADE 12 EDUCATION: 109.12 STATE AGENCIES 109.13 Section 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND 109.14 LEARNING.] 109.15 (a) The sums indicated in this section are appropriated 109.16 from the general fund unless otherwise indicated to the 109.17 department of children, families, and learning for the fiscal 109.18 years designated. 109.19 $32,316,000 ..... 2000 109.20 $29,785,000 ..... 2001 109.21 (b) Any balance the first year does not cancel but is 109.22 available in the second year. 109.23 (c) $21,000 each year is from the trunk highway fund. 109.24 (d) $673,000 in 2000 and $678,000 in 2001 is for the board 109.25 of teaching. 109.26 (e) Notwithstanding Minnesota Statutes, section 15.53, 109.27 subdivision 2, the commissioner of children, families, and 109.28 learning may contract with a school district for a period no 109.29 longer than five consecutive years to work in the development or 109.30 implementation of the graduation rule. The commissioner may 109.31 contract for services and expertise as necessary. The contracts 109.32 are not subject to Minnesota Statutes, section 16B.06. 109.33 (f) $165,000 in 2000 is for the state board of education. 109.34 Any functions of the state board of education that are not 109.35 specifically transferred to another agency are transferred to 109.36 the department of children, families, and learning under 110.1 Minnesota Statutes, section 15.039. For the position that is 110.2 classified, upon transferring the responsibilities, the current 110.3 incumbent is appointed to the classified position without exam 110.4 or probationary period. 110.5 (g) $2,000,000 in 2000 is for litigation costs and may only 110.6 be used for those purposes. This appropriation is available 110.7 until June 30, 2001. This is a one-time appropriation. 110.8 EFFECTIVE DATE: This section is effective retroactive to 110.9 July 1, 1999. 110.10 Sec. 2. Laws 1999, chapter 241, article 10, section 6, is 110.11 amended to read: 110.12 Sec. 6. [APPROPRIATIONS; LOLA AND RUDY PERPICH MINNESOTA 110.13 CENTER FOR ARTS EDUCATION.] 110.14 The sums indicated in this section are appropriated from 110.15 the general fund to the center for arts education for the fiscal 110.16 years designated: 110.17 $7,239,000 ..... 2000 110.18 $7,400,000 ..... 2001 110.19 Of each year's appropriation, $154,000 is to fund artist 110.20 and arts organization participation in the education residency 110.21 and education technology projects, $75,000 is for school support 110.22 for the residency project, $121,000 is for further development 110.23 of the partners: arts and school for students (PASS) program, 110.24 including pilots, and$220,000$110,000 is to fund the center 110.25 for arts education base for asset preservation and facility 110.26 repair. The guidelines for the education residency project and 110.27 the pass program shall be developed and defined by the center 110.28 for arts education in cooperation with the Minnesota arts 110.29 board. The Minnesota arts board shall participate in the review 110.30 and allocation process. The center for arts education and the 110.31 Minnesota arts board shall cooperate to fund these projects. 110.32 Any balance in the first year does not cancel but is 110.33 available in the second year. 110.34 Sec. 3. [REPEALER.] 110.35 Laws 1999, chapter 241, article 10, section 5, is repealed 110.36 retroactive to July 1, 1999. 111.1 EFFECTIVE DATE: This section is effective retroactive to 111.2 July 1, 1999. 111.3 ARTICLE 10 111.4 KINDERGARTEN THROUGH GRADE 12 EDUCATION: 111.5 TECHNICAL, CONFORMING, AND CLARIFYING AMENDMENTS 111.6 Section 1. Minnesota Statutes 1998, section 120A.22, 111.7 subdivision 3, is amended to read: 111.8 Subd. 3. [PARENT DEFINED; RESIDENCY DETERMINED.] (a) In 111.9 this section and sections 120A.24,and 120A.26,and 120A.41,111.10 "parent" means a parent, guardian, or other person having legal 111.11 custody of a child. 111.12 (b) In sections 125A.03 to 125A.24 and 125A.65, "parent" 111.13 means a parent, guardian, or other person having legal custody 111.14 of a child under age 18. For an unmarried pupil age 18 or over, 111.15 "parent" means the pupil unless a guardian or conservator has 111.16 been appointed, in which case it means the guardian or 111.17 conservator. 111.18 (c) For purposes of sections 125A.03 to 125A.24 and 111.19 125A.65, the school district of residence for an unmarried pupil 111.20 age 18 or over who is a parent under paragraph (b) and who is 111.21 placed in a center for care and treatment, shall be the school 111.22 district in which the pupil's biological or adoptive parent or 111.23 designated guardian resides. 111.24 (d) For a married pupil age 18 or over, the school district 111.25 of residence is the school district in which the married pupil 111.26 resides. 111.27 Sec. 2. Minnesota Statutes 1998, section 122A.31, 111.28 subdivision 4, is amended to read: 111.29 Subd. 4. [REIMBURSEMENT.] For purposes of revenue 111.30 undersections 125A.77 andsection 125A.78, the department of 111.31 children, families, and learning must only reimburse school 111.32 districts for the services of those interpreters/transliterators 111.33 who satisfy the standards of competency under this section. 111.34 Sec. 3. Minnesota Statutes 1998, section 123B.02, is 111.35 amended by adding a subdivision to read: 111.36 Subd. 5a. [TRESPASSES ON SCHOOL PROPERTY.] Trespasses on 112.1 school property shall be governed according to section 609.605, 112.2 subdivision 4. 112.3 Sec. 4. Minnesota Statutes 1998, section 123B.85, 112.4 subdivision 1, is amended to read: 112.5 Subdivision 1. [APPLICATION.] The following words and 112.6 terms in sections 121A.585, 121A.59, 123B.84 to 123B.87,and112.7123B.89 to123B.90, and 123B.91, shall have the following 112.8 meanings ascribed to them. 112.9 Sec. 5. Minnesota Statutes 1999 Supplement, section 112.10 124D.128, subdivision 2, is amended to read: 112.11 Subd. 2. [COMMISSIONER DESIGNATION.] An area learning 112.12 center designated by the state must be a site. To be 112.13 designated, a district or center must demonstrate to the 112.14 commissioner that it will: 112.15 (1) provide a program of instruction that permits pupils to 112.16 receive instruction throughout the entire year; and 112.17 (2) maintain a record system that, for purposes of section 112.18124.17126C.05, permits identification of membership 112.19 attributable to pupils participating in the program. The record 112.20 system and identification must ensure that the program will not 112.21 have the effect of increasing the total number of pupil units 112.22 attributable to an individual pupil as a result of a learning 112.23 year program. 112.24 Sec. 6. Minnesota Statutes 1998, section 124D.454, 112.25 subdivision 2, is amended to read: 112.26 Subd. 2. [DEFINITIONS.] For the purposes of this 112.27 sectionand section 125A.77, the definitions in this subdivision 112.28 apply. 112.29 (a) "Base year" for fiscal year 1996 means fiscal year 1995. 112.30 Base year for later fiscal years means the second fiscal year 112.31 preceding the fiscal year for which aid will be paid. 112.32 (b) "Basic revenue" has the meaning given it in section 112.33 126C.10, subdivision 2. For the purposes of computing basic 112.34 revenue pursuant to this section, each child with a disability 112.35 shall be counted as prescribed in section 126C.05, subdivision 1. 112.36 (c) "Average daily membership" has the meaning given it in 113.1 section 126C.05. 113.2 (d) "Program growth factor" means 1.00 for fiscal year 1998 113.3 and later. 113.4 (e) "Aid percentage factor" means 60 percent for fiscal 113.5 year 1996, 70 percent for fiscal year 1997, 80 percent for 113.6 fiscal year 1998, 90 percent for fiscal year 1999, and 100 113.7 percent for fiscal year 2000 and later. 113.8 Sec. 7. Minnesota Statutes 1998, section 124D.454, 113.9 subdivision 10, is amended to read: 113.10 Subd. 10. [EXCLUSION.] A district shall not receive aid 113.11 pursuant to section 124D.453,or 125A.76, or 125A.77for 113.12 salaries, supplies, travel or equipment for which the district 113.13 receives aid pursuant to this section. 113.14 Sec. 8. Minnesota Statutes 1999 Supplement, section 113.15 125A.023, subdivision 3, is amended to read: 113.16 Subd. 3. [DEFINITIONS.] For purposes of this section and 113.17 section 125A.027, the following terms have the meanings given 113.18 them: 113.19 (a) "Health plan" means: 113.20 (1) a health plan under section 62Q.01, subdivision 3; 113.21 (2) a county-based purchasing plan under section 256B.692; 113.22 (3) a self-insured health plan established by a local 113.23 government under section 471.617; or 113.24 (4) self-insured health coverage provided by the state to 113.25 its employees or retirees. 113.26 (b) For purposes of this section, "health plan company" 113.27 means an entity that issues a health plan as defined in 113.28 paragraph (a). 113.29 (c) "Individual interagency intervention plan" means a 113.30 standardized written plan describing those programs or services 113.31 and the accompanying funding sources available to eligible 113.32 children with disabilities. 113.33 (d) "Interagency intervention service system" means a 113.34 system that coordinates services and programs required in state 113.35 and federal law to meet the needs of eligible children with 113.36 disabilities ages three to 21, including: 114.1 (1) services provided under the following programs or 114.2 initiatives administered by state or local agencies: 114.3 (i) the maternal and child health program under title V of 114.4 the Social Security Act, United States Code, title 42, sections 114.5 701 to 709; 114.6 (ii) the Individuals with Disabilities Education Act under 114.7 United States Code, title 20, chapter 33, subchapter II, 114.8 sections 1411 to 1420; 114.9 (iii) medical assistance under the Social Security Act, 114.10 United States Code, title 42, chapter 7, subchapter XIX, section 114.11 1396, et seq.; 114.12 (iv) the Developmental Disabilities Assistance and Bill of 114.13 Rights Act, United States Code, title 42, chapter 75, subchapter 114.14 II, sections 6021 to 6030, Part B; 114.15 (v) the Head Start Act, United States Code, title 42, 114.16 chapter 105, subchapter II, sections 9831 to 9852; 114.17 (vi) rehabilitation services provided under chapter 268A; 114.18 (vii) Juvenile Court Act services provided under sections 114.19 260.011 to 260.91; 260B.001 to 260B.446; and 260C.001 to 114.20 260C.451; 114.21 (viii) the children's mental health collaboratives under 114.22 section 245.493; 114.23 (ix) the family service collaboratives under section 114.24 124D.23; 114.25 (x) the family community support plan under section 114.26 245.4881, subdivision 4; 114.27 (xi) the MinnesotaCare program under chapter 256L; 114.28 (xii) the community health services grants under chapter 114.29 145; 114.30 (xiii) the Community Social Services Act funding under the 114.31 Social Security Act, United States Code, title 42, sections 1397 114.32 to 1397f; and 114.33 (xiv) the communityinteragencytransition interagency 114.34 committees under section 125A.22; 114.35 (2) services provided under a health plan in conformity 114.36 with an individual family service plan or an individual 115.1 education plan; and 115.2 (3) additional appropriate services that local agencies and 115.3 counties provide on an individual need basis upon determining 115.4 eligibility and receiving a request from the interagency early 115.5 intervention committee and the child's parent. 115.6 (e) "Children with disabilities" has the meaning given in 115.7 section 125A.02. 115.8 (f) A "standardized written plan" means those individual 115.9 services or programs available through the interagency 115.10 intervention service system to an eligible child other than the 115.11 services or programs described in the child's individual 115.12 education plan or the child's individual family service plan. 115.13 Sec. 9. Minnesota Statutes 1999 Supplement, section 115.14 125A.023, subdivision 5, is amended to read: 115.15 Subd. 5. [INTERVENTION DEMONSTRATION PROJECTS.] (a) The 115.16 commissioner of children, families, and learning, based on 115.17 recommendations from the state interagency committee, shall 115.18 issue a request for proposals by January 1, 1999, for grants to 115.19 the governing boards of interagency early intervention 115.20 committees under section 125A.027 or a combination of one or 115.21 more counties and school districts to establish five voluntary 115.22 interagency intervention demonstration projects. One grant 115.23 shall be used to implement a coordinated service system for all 115.24 eligible children with disabilities up to age five who received 115.25 services under sections 125A.26 to 125A.48. One grant shall be 115.26 used to implement a coordinated service system for a population 115.27 of minority children with disabilities from ages 12 to 21, who 115.28 may have behavioral problems and are in need of transitional 115.29 services. Each project must be operational by July 1, 1999. 115.30 The governing boards of the interagency early intervention 115.31 committees and the counties and school districts receiving 115.32 project grants must develop efficient ways to coordinate 115.33 services and funding for children with disabilities ages three 115.34 to 21, consistent with the requirements of this section and 115.35 section 125A.027 and the guidelines developed by the state 115.36 interagency committee under this section. 116.1 (b) The state interagency committee shall evaluate the 116.2 demonstration projects and provide the evaluation results to 116.3 interagency early intervention committees. 116.4 Sec. 10. Minnesota Statutes 1999 Supplement, section 116.5 125A.08, is amended to read: 116.6 125A.08 [SCHOOL DISTRICT OBLIGATIONS.] 116.7 (a) As defined in this section,to the extent required by116.8federal law as of July 1, 2000,every district must ensure the 116.9 following: 116.10 (1) all students with disabilities are provided the special 116.11 instruction and services which are appropriate to their needs. 116.12 Where the individual education plan team has determined 116.13 appropriate goals and objectives based on the student's needs, 116.14 including the extent to which the student can be included in the 116.15 least restrictive environment, and where there are essentially 116.16 equivalent and effective instruction, related services, or 116.17 assistive technology devices available to meet the student's 116.18 needs, cost to the district may be among the factors considered 116.19 by the team in choosing how to provide the appropriate services, 116.20 instruction, or devices that are to be made part of the 116.21 student's individual education plan. The individual education 116.22 plan team shall consider and may authorize services covered by 116.23 medical assistance according to section 256B.0625, subdivision 116.24 26. The student's needs and the special education instruction 116.25 and services to be provided must be agreed upon through the 116.26 development of an individual education plan. The plan must 116.27 address the student's need to develop skills to live and work as 116.28 independently as possible within the community. By grade 9 or 116.29 age 14, the plan must address the student's needs for transition 116.30 from secondary services to post-secondary education and 116.31 training, employment, community participation, recreation, and 116.32 leisure and home living. In developing the plan, districts must 116.33 inform parents of the full range of transitional goals and 116.34 related services that should be considered. The plan must 116.35 include a statement of the needed transition services, including 116.36 a statement of the interagency responsibilities or linkages or 117.1 both before secondary services are concluded; 117.2 (2) children with a disability under age five and their 117.3 families are provided special instruction and services 117.4 appropriate to the child's level of functioning and needs; 117.5 (3) children with a disability and their parents or 117.6 guardians are guaranteed procedural safeguards and the right to 117.7 participate in decisions involving identification, assessment 117.8 including assistive technology assessment, and educational 117.9 placement of children with a disability; 117.10 (4) eligibility and needs of children with a disability are 117.11 determined by an initial assessment or reassessment, which may 117.12 be completed using existing data under United States Code, title 117.13 20, section 33, et seq.; 117.14 (5) to the maximum extent appropriate, children with a 117.15 disability, including those in public or private institutions or 117.16 other care facilities, are educated with children who are not 117.17 disabled, and that special classes, separate schooling, or other 117.18 removal of children with a disability from the regular 117.19 educational environment occurs only when and to the extent that 117.20 the nature or severity of the disability is such that education 117.21 in regular classes with the use of supplementary services cannot 117.22 be achieved satisfactorily; 117.23 (6) in accordance with recognized professional standards, 117.24 testing and evaluation materials, and procedures used for the 117.25 purposes of classification and placement of children with a 117.26 disability are selected and administered so as not to be 117.27 racially or culturally discriminatory; and 117.28 (7) the rights of the child are protected when the parents 117.29 or guardians are not known or not available, or the child is a 117.30 ward of the state. 117.31 (b) For paraprofessionals employed to work in programs for 117.32 students with disabilities, the school board in each district 117.33 shall ensure that: 117.34 (1) before or immediately upon employment, each 117.35 paraprofessional develops sufficient knowledge and skills in 117.36 emergency procedures, building orientation, roles and 118.1 responsibilities, confidentiality, vulnerability, and 118.2 reportability, among other things, to begin meeting the needs of 118.3 the students with whom the paraprofessional works; 118.4 (2) annual training opportunities are available to enable 118.5 the paraprofessional to continue to further develop the 118.6 knowledge and skills that are specific to the students with whom 118.7 the paraprofessional works, including understanding 118.8 disabilities, following lesson plans, and implementing follow-up 118.9 instructional procedures and activities; and 118.10 (3) a districtwide process obligates each paraprofessional 118.11 to work under the ongoing direction of a licensed teacher and, 118.12 where appropriate and possible, the supervision of a school 118.13 nurse. 118.14 Sec. 11. Minnesota Statutes 1998, section 125A.76, 118.15 subdivision 7, is amended to read: 118.16 Subd. 7. [REVENUE ALLOCATION FROM COOPERATIVE CENTERS AND 118.17 INTERMEDIATES.] For the purposes of this sectionand section118.18125A.77, a special education cooperative or an intermediate 118.19 district must allocate its approved expenditures for special 118.20 education programs among participating school districts. 118.21 Sec. 12. Minnesota Statutes 1999 Supplement, section 118.22 125A.79, subdivision 8, is amended to read: 118.23 Subd. 8. [OUT-OF-STATE TUITION.] For children who are 118.24 residents of the state, receive services under section 125A.76, 118.25 subdivisions 1 and 2, and are placed in a care and treatment 118.26 facility by court action in a state that does not have a 118.27 reciprocity agreement with the commissioner under section 118.28125A.115125A.155, the resident school district shall submit the 118.29 balance of the tuition bills, minus the amount of the basic 118.30 revenue, as defined by section 126C.10, subdivision 2, of the 118.31 district for the child and the special education aid, and any 118.32 other aid earned on behalf of the child. 118.33 Sec. 13. Minnesota Statutes 1999 Supplement, section 118.34 125A.80, is amended to read: 118.35 125A.80 [UNIFORM BILLING SYSTEM FOR THE EDUCATION COSTS OF 118.36 OUT-OF-HOME PLACED STUDENTS.] 119.1 The commissioner, in cooperation with the commissioners of 119.2 human services and corrections and with input from appropriate 119.3 billing system users, shall develop and implement a uniform 119.4 billing system for school districts and other agencies, 119.5 including private providers, who provide the educational 119.6 services for students who are placed out of the home. The 119.7 uniform billing system must: 119.8 (1) allow for the proper and timely billing to districts by 119.9 service providers with a minimum amount of district 119.10 administration; 119.11 (2) allow districts to bill the state for certain types of 119.12 special education and regular education services as provided by 119.13 law; 119.14 (3) provide flexibility for the types of services that are 119.15 provided for children placed out of the home, including day 119.16 treatment services; 119.17 (4) allow the commissioner to track the type, cost, and 119.18 quality of services provided for children placed out of the 119.19 home; 119.20 (5) conform existing special education and proposed regular 119.21 education billing procedures; 119.22 (6) provide a uniform reporting standard of per diem rates; 119.23 (7) determine allowable expenses and maximum reimbursement 119.24 rates for the state reimbursement of care and treatment services 119.25according to section 124D.701; and 119.26 (8) provide a process for the district to appeal to the 119.27 commissioner tuition bills submitted to districts and to the 119.28 state. 119.29 Sec. 14. Minnesota Statutes 1999 Supplement, section 119.30 125B.21, subdivision 3, is amended to read: 119.31 Subd. 3. [CRITERIA.] In addition to responsibilities of 119.32 the council under Laws 1993, First Special Session chapter 2, as 119.33 amended, the telecommunications council shall evaluate grant 119.34 applications under section124C.74125B.20 and applications from 119.35 district organizations using the following criteria: 119.36 (1) evidence of cooperative arrangements with other 120.1 post-secondary institutions, school districts, and community and 120.2 regional libraries in the geographic region; 120.3 (2) plans for shared classes and programs; 120.4 (3) avoidance of network duplication; 120.5 (4) evidence of efficiencies to be achieved in delivery of 120.6 instruction due to use of telecommunications; 120.7 (5) a plan for development of a list of all courses 120.8 available in the region for delivery at a distance; 120.9 (6) a plan for coordinating and scheduling courses; and 120.10 (7) a plan for evaluation of costs, access, and outcomes. 120.11 Sec. 15. Minnesota Statutes 1999 Supplement, section 120.12 126C.10, subdivision 24, is amended to read: 120.13 Subd. 24. [EQUITY REVENUE.] (a) A school district 120.14 qualifies for equity revenue if the school district's adjusted 120.15 marginal cost pupil unit amount of basic revenue, supplemental 120.16 revenue, transition revenue, and referendum revenue is less than 120.17 the 90th percentile of school districts in its equity region for 120.18 those revenue categories and the school district's 120.19 administrative offices are not located in a city of the first 120.20 class on July 1, 1999. 120.21 (b) Equity revenue for a qualifying district that receives 120.22 referendum revenue under section 126C.17, subdivision 4, equals 120.23 the product of (1) the district's adjusted marginal cost pupil 120.24 units for that year; times (2) the sum of (i) $10, plus (ii) 120.25 $30, times the school district's equity index computed under 120.26section 126C.10,subdivision627. 120.27 (c) Equity revenue for a qualifying district that does not 120.28 receive referendum revenue under section 126C.17, subdivision 4, 120.29 equals the product of the district's adjusted marginal cost 120.30 pupil units for that year times $10. 120.31 Sec. 16. Minnesota Statutes 1998, section 126C.12, 120.32 subdivision 2, is amended to read: 120.33 Subd. 2. [INSTRUCTOR DEFINED.] Primary instructor means a 120.34 public employee licensed by the board of teaching whose duties 120.35 are full-time instruction, excluding a teacher for whom 120.36 categorical aids are received pursuant tosectionssection 121.1 125A.76and 125A.77. Except as provided in section 122A.68, 121.2 subdivision 6, instructor does not include supervisory and 121.3 support personnel, except school social workers as defined in 121.4 section 122A.15. An instructor whose duties are less than 121.5 full-time instruction must be included as an equivalent only for 121.6 the number of hours of instruction in grades kindergarten 121.7 through 6. 121.8 Sec. 17. Minnesota Statutes 1998, section 127A.05, 121.9 subdivision 4, is amended to read: 121.10 Subd. 4. [ADMINISTRATIVE RULES.] The commissioner may 121.11 adopt new rulesand amend themor amend any existing rules only 121.12 under specific authority and consistent with the requirements of 121.13 chapter 14. The commissioner may repeal any existing 121.14 rules adopted by the commissioner. Notwithstanding the 121.15 provisions of section 14.05, subdivision 4, the commissioner may 121.16 grant a variance to rules adopted by the commissioner upon 121.17 application by a school district for purposes of implementing 121.18 experimental programs in learning or school management. This 121.19 subdivision shall not prohibit the commissioner from making 121.20 technical changes or corrections toadoptedrules adopted by the 121.21 commissioner. 121.22 Sec. 18. Minnesota Statutes 1998, section 127A.41, 121.23 subdivision 8, is amended to read: 121.24 Subd. 8. [APPROPRIATION TRANSFERS.] If a direct 121.25 appropriation from the general fund to the department for any 121.26 education aid or grant authorized in this chapter and chapters 121.27 122A, 123A, 123B, 124D, 126C, and 134, excluding appropriations 121.28 under sections 124D.135,124D.14,124D.16, 124D.20, 124D.21, 121.29 124D.22, 124D.52, 124D.53, 124D.54, 124D.55, and 124D.56, 121.30 exceeds the amount required, the commissioner may transfer the 121.31 excess to any education aid or grant appropriation that is 121.32 insufficient. However, section 126C.20 applies to a deficiency 121.33 in the direct appropriation for general education aid. Excess 121.34 appropriations must be allocated proportionately among aids or 121.35 grants that have insufficient appropriations. The commissioner 121.36 of finance shall make the necessary transfers among 122.1 appropriations according to the determinations of the 122.2 commissioner. If the amount of the direct appropriation for the 122.3 aid or grant plus the amount transferred according to this 122.4 subdivision is insufficient, the commissioner shall prorate the 122.5 available amount among eligible districts. The state is not 122.6 obligated for any additional amounts. 122.7 Sec. 19. Minnesota Statutes 1998, section 127A.41, 122.8 subdivision 9, is amended to read: 122.9 Subd. 9. [APPROPRIATION TRANSFERS FOR COMMUNITY EDUCATION 122.10 PROGRAMS.] If a direct appropriation from the general fund to 122.11 the department of children, families, and learning for an 122.12 education aid or grant authorized under section 122.13 124D.135,124D.14,124D.16, 124D.20, 124D.21, 124D.22, 124D.52, 122.14 124D.53, 124D.54, 124D.55, or 124D.56 exceeds the amount 122.15 required, the commissioner of children, families, and learning 122.16 may transfer the excess to any education aid or grant 122.17 appropriation that is insufficiently funded under these sections. 122.18 Excess appropriations shall be allocated proportionately among 122.19 aids or grants that have insufficient appropriations. The 122.20 commissioner of finance shall make the necessary transfers among 122.21 appropriations according to the determinations of the 122.22 commissioner of children, families, and learning. If the amount 122.23 of the direct appropriation for the aid or grant plus the amount 122.24 transferred according to this subdivision is insufficient, the 122.25 commissioner shall prorate the available amount among eligible 122.26 districts. The state is not obligated for any additional 122.27 amounts. 122.28 Sec. 20. Minnesota Statutes 1999 Supplement, section 122.29 181A.04, subdivision 6, is amended to read: 122.30 Subd. 6. A high school student under the age of 18 must 122.31 not be permitted to work after 11:00 p.m. on an evening before a 122.32 school day or before 5:00 a.m. on a school day, except as 122.33 permitted by section 181A.07, subdivisions 1, 2, 3, and 4. If a 122.34 high school student under the age of 18 has supplied the 122.35 employer with a note signed by the parent or guardian of the 122.36 student, the student may be permitted to work until 11:30 p.m. 123.1 on the evening before a school day and beginning at 4:30 a.m. on 123.2 a school day. 123.3 For the purpose of this subdivision, a high school student 123.4 does not include a student enrolled in an alternative education 123.5 program approved by the commissioner of children, families, and 123.6 learning or an area learning center, including area learning 123.7 centers under sections 123A.05 to 123A.08 or according to 123.8 section122A.164122A.163. 123.9 Sec. 21. Laws 1999, chapter 241, article 1, section 69, is 123.10 amended to read: 123.11 Sec. 69. [REPEALER.] 123.12 (a) Minnesota Statutes 1998, sections 123B.89; and 123B.92, 123.13 subdivisions 2, 4, 6, 7, 8, and 10, are repealed. 123.14 (b) Minnesota Statutes 1998, section 120B.05, is repealed 123.15 effective for revenue for fiscal year 2000. 123.16 (c) Minnesota Statutes 1998, section 124D.65, subdivisions 123.17 1, 2, and 3, are repealed effective for revenue for fiscal year 123.18 2001. 123.19 (d) Minnesota Statutes 1998, sections 124D.67; 126C.05, 123.20 subdivision 4; and 126C.06, are repealed effective the day 123.21 following final enactment. 123.22This appropriation is available until June 30, 2001.123.23 Sec. 22. Laws 1999, chapter 241, article 9, section 49, is 123.24 amended to read: 123.25 Sec. 49. [TRANSITION.] 123.26 Notwithstanding Minnesota Statutes, section 15.0597, the 123.27 terms of persons who are members appointed by the governor 123.28 before the effective date of section837, shall have their term 123.29 end on July 31 of the year following the last year of their 123.30 appointment. 123.31 Sec. 23. [REVISOR INSTRUCTION.] 123.32 In the next and subsequent editions of Minnesota Statutes, 123.33 the revisor shall renumber section 123B.02, subdivision 12, as 123.34 120A.22, subdivision 1a. The revisor shall correct all 123.35 cross-references to be consistent with the renumbering. 123.36 Sec. 24. [REPEALER.] 124.1 Laws 1999, chapter 241, article 9, sections 35 and 36, are 124.2 repealed. Laws 1999, chapter 245, article 4, section 3, is 124.3 repealed. 124.4 ARTICLE 11 124.5 HIGHER EDUCATION 124.6 Section 1. Minnesota Statutes 1998, section 15A.081, 124.7 subdivision 7b, is amended to read: 124.8 Subd. 7b. [HIGHER EDUCATIONOFFICERSSERVICES OFFICE 124.9 DIRECTOR.]The board of trustees of the Minnesota state colleges124.10and universities andThe higher education services council shall 124.11 set the salaryratesrate for, respectively, the chancellor of124.12the Minnesota state colleges and universities andthe director 124.13 of the higher education services office. Theboard or the124.14 council shall submit the proposed salary change to the 124.15 legislative coordinating commission for approval, modification, 124.16 or rejection in the manner provided in section 3.855. 124.17 In deciding whether to recommend a salary increase, the 124.18governing board orcouncil shall consider the performance of the 124.19chancellor ordirector, including thechancellor's ordirector's 124.20 progress toward attaining affirmative action goals. 124.21 EFFECTIVE DATE: This section is effective the day 124.22 following final enactment. 124.23 Sec. 2. Minnesota Statutes 1998, section 15A.081, is 124.24 amended by adding a subdivision to read: 124.25 Subd. 7c. [MINNESOTA STATE COLLEGES AND UNIVERSITIES 124.26 CHANCELLOR.] The board of trustees of the Minnesota state 124.27 colleges and universities shall establish a salary range for the 124.28 position of chancellor of the Minnesota state colleges and 124.29 universities. The board shall submit the proposed salary range 124.30 to the legislative coordinating commission for approval, 124.31 modification, or rejection in the manner provided in section 124.32 3.855. The board shall establish the salary for the chancellor 124.33 within the approved salary range. 124.34 In deciding whether to approve a salary increase, the board 124.35 shall consider the performance of the chancellor, including the 124.36 chancellor's progress toward attaining affirmative action goals. 125.1 EFFECTIVE DATE: This section is effective the day 125.2 following final enactment. 125.3 Sec. 3. [16A.633] [CAPITAL FUNDING CONTINGENT ON 125.4 MAINTAINING DATA.] 125.5 Subdivision 1. [STATE AGENCIES.] Each state agency shall 125.6 provide to the commissioner of administration the data necessary 125.7 for the commissioner to maintain the department's database on 125.8 the location, description, and condition of state-owned 125.9 facilities. The data must be provided by December 15 each 125.10 year. The commissioner of administration must maintain both the 125.11 current inventory data and historical data. A state agency is 125.12 not eligible to receive capital funding unless the agency has 125.13 provided the data required. 125.14 Subd. 2. [MINNESOTA STATE COLLEGES AND UNIVERSITIES.] The 125.15 board of trustees of the Minnesota state colleges and 125.16 universities shall establish and maintain data on the location, 125.17 description, and condition of board-owned facilities that is 125.18 comparable with the database established by the department of 125.19 administration. The data must be updated annually and the board 125.20 must maintain both current inventory data and historical data. 125.21 The board is not eligible to receive capital funding unless the 125.22 board has established and maintains the data required. 125.23 Subd. 3. [UNIVERSITY OF MINNESOTA.] The board of regents 125.24 of the University of Minnesota is requested to establish and 125.25 maintain data on the location, description, and condition of 125.26 university-owned facilities that is comparable with the database 125.27 established by the department of administration. The university 125.28 is requested to update the data annually and maintain both 125.29 current inventory data and historical data. The board of 125.30 regents is not eligible to receive capital funding unless the 125.31 board has established and maintains the data required. 125.32 EFFECTIVE DATE: This section is effective June 30, 2003. 125.33 Sec. 4. Minnesota Statutes 1998, section 16B.33, 125.34 subdivision 2, is amended to read: 125.35 Subd. 2. [ORGANIZATION OF BOARD.] (a) [MEMBERSHIP.] The 125.36 state designer selection board consists offiveseven 126.1 individuals, the majority of whom must be Minnesota residents. 126.2 Each of the followingthreefour organizations shall nominate 126.3 one individual whose name and qualifications shall be submitted 126.4 to the commissioner of administration for consideration: the 126.5 consulting engineers council of Minnesota after consultation 126.6 with other professional engineering societies in the state; 126.7 the AIA Minnesotasociety of architects; the Minnesota chapter 126.8 of the associated general contractors or the associated builders 126.9 and contractors, after consultation with other commercial 126.10 contractor associations in the state; and the Minnesota board of 126.11 the arts. The commissioner may appoint thethreefour named 126.12 individuals to the board but may reject a nominated individual 126.13 and request another nomination. The fifth member shall be a 126.14 representative of the user agency, the University of Minnesota, 126.15 or the Minnesota state colleges and universities, designated by 126.16 the user agency. The remaining two citizen members shall also 126.17 be appointed by the commissioner. 126.18 (b) [NONVOTINGMEMBERSMEMBER.] In addition to thefive126.19 seven members of the board,twoone nonvotingmembersmember 126.20 representing the commissioner shall participate in the 126.21 interviewing and selection of designers pursuant to this 126.22 section.One shall be a representative of the commissioner and126.23shall participate in the interviewing and selection of designers126.24for all projects. The other shall be a representative of the126.25user agency, who shall participate in the interviewing and126.26selection of the designers for the project being undertaken by126.27the user agency. The commissioner shall appoint the126.28representative of the user agency in consultation with the user126.29agency.126.30 (c) [TERMS; COMPENSATION; REMOVAL; VACANCIES.] The 126.31 membership terms, compensation, removal of members, and filling 126.32 of vacancies on the board are as provided in section 15.0575. 126.33 No individual may serve for more than two consecutive terms. 126.34 (d) [OFFICERS, RULES.] At its first meeting, the board 126.35 shall elect a voting member of the board as chair. The board 126.36 shall also elect other officers necessary for the conduct of its 127.1 affairs. The board shall adopt rules governing its operations 127.2 and the conduct of its meetings. The rules shall provide for 127.3 the terms of the chair and other officers. 127.4 (e) [MEETINGS.] The board shall meet as often as is 127.5 necessary, not less than twice annually, in order to act 127.6 expeditiously on requests submitted to it for selection of 127.7 primary designers. 127.8 (f) [OFFICE, STAFF, RECORDS.] The department of 127.9 administration shall provide the board with suitable quarters to 127.10 maintain an office, hold meetings, and keep records. The 127.11 commissioner shall designate an employee of the department of 127.12 administration to serve as executive secretary to the board and 127.13 shall furnish a secretarial staff to the board as necessary for 127.14 the expeditious conduct of the board's duties and 127.15 responsibilities. 127.16 EFFECTIVE DATE: This section is effective the day 127.17 following final enactment. 127.18 Sec. 5. Minnesota Statutes 1998, section 16B.33, 127.19 subdivision 3a, is amended to read: 127.20 Subd. 3a. [HIGHER EDUCATION PROJECTS.] (a) When the 127.21 University of Minnesota or the Minnesota state colleges and 127.22 universities undertakes a project involving construction or 127.23 major remodeling, as defined in section 16B.335, subdivision 1, 127.24 with an estimated cost greater than $2,000,000 or a planning 127.25 project with estimated fees greater than $200,000, the system 127.26 shall submit a written request for a primary designer to the 127.27 commissioner, as provided in subdivision 3. 127.28 (b) When the University of Minnesota or the Minnesota state 127.29 colleges and universities undertakes a project involving 127.30 renovation, repair, replacement, or rehabilitation, the system 127.31 office may submit a written request for a primary designer to 127.32 the commissioner as provided in subdivision 3. 127.33 (c) For projects at the University of Minnesota or the 127.34 state colleges and universities, the board shall select at least 127.35 two primary designers under subdivision 4 for recommendation to 127.36 the board of regents or the board of trustees. Meeting records 128.1 or written evaluations that document the final selection are 128.2 public records. The board of regents or the board of trustees 128.3 shall notify the commissioner of the designer selected from the 128.4 recommendations. 128.5 EFFECTIVE DATE: This section is effective the day 128.6 following final enactment. 128.7 Sec. 6. Minnesota Statutes 1998, section 135A.031, 128.8 subdivision 2, is amended to read: 128.9 Subd. 2. [APPROPRIATIONS FOR CERTAIN ENROLLMENTS.] The 128.10 state share of the estimated expenditures for instruction shall 128.11 vary for some categories of students, as designated in this 128.12 subdivision. 128.13 (a) The state must provide at least 67 percent of the 128.14 estimated expenditures for:128.15(1) students who resided in the state for at least one128.16calendar year prior to applying for admission or dependent128.17students whose parent or legal guardian resides in Minnesota at128.18the time the student applies;128.19(2) Minnesota residents who can demonstrate that they were128.20temporarily absent from the state without establishing residency128.21elsewhere;128.22(3) residents of other states or provinces who are128.23attending a Minnesota institution under a tuition reciprocity128.24agreement; and128.25(4)students who are Minnesota residents or residents of 128.26 other states including students who have been in Minnesota as 128.27 migrant farmworkers, as defined in the Code of Federal 128.28 Regulations, title 20, section 633.104, over a period of at 128.29 least two years immediately before admission or readmission to a 128.30 Minnesota public post-secondary institution, or students who are 128.31 dependents of such migrant farmworkers. 128.32 (b) The definition of full year equivalent for purposes of 128.33 the formula calculations in this chapter is twice the normal 128.34 value for the following enrollments: 128.35 (1) students who are concurrently enrolled in a public 128.36 secondary school and for whom the institution is receiving any 129.1 compensation under the Post-Secondary Enrollment Options Act; 129.2 and 129.3 (2) students enrolled under the student exchange program of 129.4 the Midwest Compact. 129.5 (c) The state may not provide any of the estimated 129.6 expenditures for undergraduate students(1) who do not meet the129.7residency criteria under paragraph (a), or (2)who have 129.8 completed, without receiving a baccalaureate degree, 48 or more 129.9 quarter credits or the equivalent, applicable toward the degree, 129.10 beyond the number required for a baccalaureate in their major. 129.11 Credits for courses in which a student received a grade of "F" 129.12 or "W" shall be counted toward this maximum, as if the credits 129.13 had been earned. 129.14 EFFECTIVE DATE: This section is effective July 1, 2003. 129.15 Sec. 7. Minnesota Statutes 1998, section 136A.125, is 129.16 amended by adding a subdivision to read: 129.17 Subd. 4c. [SURPLUS FUNDS.] Any projected surplus of funds 129.18 in the child care grant program in the first year of the 129.19 biennium shall be used to augment the maximum award in 129.20 subdivision 4 in the second year of the biennium. 129.21 EFFECTIVE DATE: This section is effective the day 129.22 following final enactment. 129.23 Sec. 8. Minnesota Statutes 1998, section 136F.40, is 129.24 amended to read: 129.25 136F.40 [APPOINTMENT OF PERSONNEL.] 129.26 Subdivision 1. [APPOINTMENT PROCEDURE.] The board shall 129.27 appoint all presidents, teachers, and other necessary employees 129.28 and shall prescribe their duties consistent with chapter 43A. 129.29 Salaries and benefits of employees must be determined according 129.30 to chapters 43A and 179A and other applicable provisions. 129.31 Subd. 2. [COMPENSATION.] Notwithstanding any other 129.32 provision to the contrary, when establishing compensation the 129.33 board may provide, through a contract, a liquidated salary 129.34 amount or other compensation if a contract with a chancellor or 129.35 president is terminated by the board prior to its expiration. 129.36 Any benefits shall be excluded in computation of 130.1 retirement, insurance, and other benefits available through or 130.2 from the state. Any benefits or additional compensation must be 130.3 as provided under the plan approved under section 43A.18, 130.4 subdivision 3a. 130.5 EFFECTIVE DATE: This section is effective the day 130.6 following final enactment. 130.7 Sec. 9. Minnesota Statutes 1998, section 136F.98, 130.8 subdivision 1, is amended to read: 130.9 Subdivision 1. [ISSUANCE OF BONDS.] The board of trustees 130.10 of the Minnesota state colleges and universities or a successor 130.11 may issue additional revenue bonds under sections 136F.90 to 130.12 136F.97 in an aggregate principal amount not 130.13 exceeding$40,000,000, subject to the resolutions authorizing130.14its outstanding revenue bonds$100,000,000, and payable from the 130.15 revenue appropriated to the fund established by section 136F.94, 130.16 and use the proceeds together with other public or private money 130.17 that may otherwise become available to acquire land, and to 130.18 acquire, construct, complete, remodel, and equip structures or 130.19 portions thereof to be used for dormitory, residence hall, 130.20 student union, food service, and related parking purposes at the 130.21 state universities. Bonds may be issued to refund previously 130.22 issued bonds, and any such refunding bonds may be issued in 130.23 addition to the bonds otherwise authorized by this subdivision. 130.24 Before issuing the bonds or any part of them, the board shall 130.25 consult with and obtain the advisory recommendations of the 130.26 chairs of the house ways and means committee and the senate 130.27 finance committee about the facilities to be financed by the 130.28 bonds. 130.29 EFFECTIVE DATE: This section is effective the day 130.30 following final enactment. 130.31 Sec. 10. [SCHOOL GUIDANCE COUNSELING INCENTIVES.] 130.32 The higher education services office must recommend 130.33 incentives to increase the number of guidance counselors in 130.34 elementary and secondary schools. 130.35 By January 15, 2001, the higher education services office 130.36 must report to the legislature on the recommended incentives 131.1 with a recommendation for funding. 131.2 Sec. 11. [STUDY OF EDUCATIONAL FOUNDATIONS.] 131.3 Prior to November 15, 2000, the board of trustees of the 131.4 Minnesota state colleges and universities shall study and make 131.5 recommendations on the use of educational foundation support for 131.6 additional compensation and benefits for the position of 131.7 chancellor and campus president. The study must include 131.8 information about the use of foundation money for salary 131.9 compensation at higher educational institutions in other 131.10 states. The study shall be provided to the house higher 131.11 education finance committee, the house ways and means committee, 131.12 the senate higher education finance division, the senate 131.13 education finance committee, and the legislative coordinating 131.14 commission. 131.15 EFFECTIVE DATE: This section is effective the day 131.16 following final enactment. 131.17 Sec. 12. [INTERMEDIATE DISTRICT COORDINATED PLANNING.] 131.18 (a) The board of trustees of the Minnesota state colleges 131.19 and universities must initiate a planning process to plan and 131.20 coordinate programs between the intermediate school districts 131.21 and the Minnesota state college and university system. 131.22 The board of trustees must include planning with 131.23 intermediate school districts No. 287; No. 916; and No. 917. 131.24 (b) The board of trustees and the intermediate school 131.25 districts must study the compatibility of program offerings and 131.26 develop a long-range facilities plan to address intermediate 131.27 school district facility needs. The results of the study must 131.28 be reported to the education committees of the legislature by 131.29 February 15, 2001. 131.30 (c) The board of trustees must not extend or modify the 131.31 joint powers agreements with the intermediate school districts 131.32 for use of technical college facilities until after the study is 131.33 reported to the legislature. 131.34 EFFECTIVE DATE: This section is effective the day 131.35 following final enactment. 131.36 Sec. 13. [ALLOCATION FOR EXCESS HEALTH CARE COSTS.] 132.1 The board of trustees must provide relief to campuses who 132.2 have experienced health care cost increases of greater than 80 132.3 percent above the systemwide average increase since 1996. 132.4 Sec. 14. [TRANSFER OF OUTREACH PROGRAMS.] 132.5 Responsibility for outreach and early intervention programs 132.6 administered by the higher education services office, including 132.7 the Get Ready program, the community service learning grants, 132.8 and the early intervention for college attendance programs is 132.9 transferred to the department of children, families, and 132.10 learning. $897,000 in fiscal year 2001 is transferred from the 132.11 higher education services office to the department of children, 132.12 families, and learning in accordance with Minnesota Statutes, 132.13 section 15.039. 132.14 EFFECTIVE DATE: This section is effective the day 132.15 following final enactment. 132.16 Sec. 15. [MANAGEMENT ANALYSIS OF MINNESOTA STATE COLLEGES 132.17 AND UNIVERSITIES.] 132.18 The management analysis division of the department of 132.19 administration must study the administrative structure of the 132.20 Minnesota state colleges and universities and report to the 132.21 legislature by September 15, 2000, with findings and 132.22 recommendations. The study must evaluate the effectiveness of 132.23 the structure of the board of trustees as currently configured 132.24 under Minnesota Statutes, sections 136F.02 to 136F.07, and make 132.25 recommendations to improve the administration and management of 132.26 the Minnesota state colleges and universities. The study must 132.27 include the: 132.28 (1) size and composition of the board; 132.29 (2) basis for appointing members of the board, including 132.30 selection based on congressional districts, geographic 132.31 alternatives to congressional districts, or other nongeographic 132.32 criteria for selecting and appointing members; 132.33 (3) length of terms of board members and the chair; 132.34 (4) board's scope of control and authority, including its 132.35 authority for contracting, employment responsibilities, and 132.36 hiring and supervisory authority over campus presidents; 133.1 (5) necessity for and the appropriate role of the staff for 133.2 the board of trustees; and 133.3 (6) other issues related to system administration and 133.4 management. 133.5 The board of trustees must contract with the management 133.6 analysis division of the department of administration for the 133.7 study under this section. The contract must provide that the 133.8 study begin as soon as possible after the effective date of this 133.9 section. 133.10 EFFECTIVE DATE: This section is effective the day 133.11 following final enactment. 133.12 Sec. 16. [APPROPRIATION.] 133.13 $5,792,000 in fiscal year 2000 and $5,792,000 in fiscal 133.14 year 2001 is appropriated from the general fund to the board of 133.15 trustees of the Minnesota state colleges and universities as a 133.16 deficiency appropriation to fund increased enrollments. This 133.17 appropriation is in addition to the appropriation in Laws 1999, 133.18 chapter 214, article 1, section 3, subdivision 1. This is a 133.19 one-time appropriation. 133.20 EFFECTIVE DATE: This section is effective the day 133.21 following final enactment. 133.22 Sec. 17. [REPEALER.] 133.23 Minnesota Rules, parts 4830.9005 to 4830.9030, are repealed.