Minnesota Legislature
SF 2359
as introduced - 82nd Legislature (2001 - 2002) 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 early childhood 1.3 through adult education including general education, 1.4 education excellence, special education, facilities 1.5 and technology, fund transfers, nutrition programs, 1.6 early childhood programs, prevention, self-sufficiency 1.7 and lifelong learning, libraries, state agencies, and 1.8 technical amendments; appropriating money; amending 1.9 Minnesota Statutes 2000, sections 93.22; 119A.05; 1.10 119A.12, by adding subdivisions; 119A.13, subdivision 1.11 4; 119A.21; 119A.22; 119A.52; 119B.011, subdivisions 1.12 7, 19, by adding subdivisions; 119B.02, subdivisions 1.13 1, 2; 119B.03, subdivisions 3, 9, 10, by adding a 1.14 subdivision; 119B.05, subdivision 5; 119B.061, 1.15 subdivisions 1, 4; 119B.08; 119B.09, subdivisions 1, 1.16 2, 7; 119B.10; 119B.11, subdivision 1; 119B.12, 1.17 subdivision 2; 119B.13, subdivisions 1, 6; 119B.15; 1.18 119B.24; 120B.07; 120B.30, subdivision 1; 120B.35; 1.19 121A.16; 121A.17, subdivisions 1, 3, 4, 5; 121A.19; 1.20 122A.09, subdivision 4; 122A.162; 122A.163; 122A.18, 1.21 subdivisions 1, 4; 122A.21; 122A.26, subdivision 3; 1.22 122A.60, subdivision 3; 122A.61, subdivision 1; 1.23 123B.36, subdivision 1; 123B.37, subdivision 1; 1.24 123B.42, subdivision 3; 123B.53, subdivisions 2, 4, 5; 1.25 123B.54; 123B.57, subdivision 8; 123B.59, subdivision 1.26 1; 123B.75, subdivision 5; 123B.88, subdivision 1; 1.27 123B.92, subdivision 9; 124D.11, subdivisions 4, 5, by 1.28 adding subdivisions; 124D.128, subdivisions 1, 2, 3, 1.29 6, by adding a subdivision; 124D.13, subdivisions 8, 1.30 9, by adding subdivisions; 124D.135, subdivisions 1, 1.31 3, 7, by adding a subdivision; 124D.15; 124D.16; 1.32 124D.221, subdivisions 1, 2; 124D.453, subdivision 3; 1.33 124D.454, subdivision 11; 124D.52, subdivision 2; 1.34 124D.522; 124D.531, subdivisions 1, 3; 124D.69, 1.35 subdivision 1; 124D.74, subdivisions 1, 2, 3, 4, 6; 1.36 124D.75, subdivision 6; 124D.76; 124D.78, subdivision 1.37 1; 124D.81, subdivisions 1, 3, 5, 6, 7; 125A.17; 1.38 125A.515; 125A.76, subdivisions 1, 4; 125A.79, 1.39 subdivisions 1, 7; 125B.20, subdivision 1; 125B.21; 1.40 125B.25, subdivisions 1, 2, 6, 9; 126C.05, 1.41 subdivisions 1, 15; 126C.10, subdivisions 1, 2, 3, 4, 1.42 5, 7, 8, 13, 18, 24, 28, by adding subdivisions; 1.43 126C.12, subdivisions 1, 2, 3, 4, 5, by adding a 1.44 subdivision; 126C.125; 126C.13, subdivision 1; 1.45 126C.15, subdivision 2; 126C.16, by adding a 1.46 subdivision; 126C.17, subdivisions 1, 2, 5, 6, by 2.1 adding a subdivision; 126C.18, by adding a 2.2 subdivision; 126C.40, subdivision 1; 126C.41, 2.3 subdivision 2; 126C.63, by adding a subdivision; 2.4 126C.69, subdivisions 3, 9, 12; 126C.72, by adding a 2.5 subdivision; 127A.41, subdivisions 8, 9; 127A.45, 2.6 subdivision 12, by adding a subdivision; 127A.51; 2.7 214.01, subdivision 3; 214.04, subdivisions 1, 3; 2.8 214.12, subdivision 1; 298.28, subdivision 4; 475.53, 2.9 subdivision 4; Laws 2000, chapter 489, article 2, 2.10 sections 34, 37; Laws 2000, chapter 489, article 3, 2.11 section 24; Laws 2000, chapter 489, article 5, section 2.12 21; Laws 2000, chapter 489, article 7, section 15, 2.13 subdivision 3; proposing coding for new law in 2.14 Minnesota Statutes, chapters 93; 119A; 119B; 122A; 2.15 124D; 126C; 134; repealing Minnesota Statutes 2000, 2.16 sections 119A.13, subdivisions 1, 2, 3; 119A.14, 2.17 subdivision 2; 119A.23; 119B.011, subdivision 20; 2.18 119B.03, subdivisions 1, 2, 4, 5, 6, 6a, 8; 119B.05, 2.19 subdivision 1; 119B.07; 119B.09, subdivision 3; 2.20 119B.11, subdivision 4; 120A.41; 124D.1155; 124D.128, 2.21 subdivision 7; 124D.33; 124D.331; 124D.85; 125B.20, 2.22 subdivision 3; 126C.10, subdivisions 9, 10, 11, 12, 2.23 19, 20, 21, 22, 23; 126C.11; Laws 1999, chapter 241, 2.24 article 3, section 5, as amended; Laws 2000, chapter 2.25 254, section 30; Laws 2000, chapter 489, article 1, 2.26 section 18. 2.27 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 2.28 ARTICLE 1 2.29 GENERAL EDUCATION 2.30 Section 1. Minnesota Statutes 2000, section 93.22, is 2.31 amended to read: 2.32 93.22 [DISPOSITION OF PAYMENTS.] 2.33 Subdivision 1. [GENERALLY.](a)All payments under 2.34 sections 93.14 to 93.285 shall be made to the department of 2.35 natural resources and shall be creditedas follows:according to 2.36 this section. 2.37(1)(a) If the lands or minerals and mineral rights covered 2.38 by a lease are held by the state by virtue of an act of 2.39 Congress, payments made under the lease shall be credited to the 2.40 permanent fund of the class of land to which the leased premises 2.41 belong;. 2.42(2)(b) If a lease covers the bed of navigable waters, 2.43 payments made under the lease shall be credited to the permanent 2.44 school fund of the state; and. 2.45(3)(c) If the lands or minerals and mineral rights covered 2.46 by a lease are held by the state in trust for the taxing 2.47 districts, payments made under the lease shall be distributed 2.48 annually on the first day of September as follows: 3.1(i)(1) 20 percent to the general fund; and 3.2(ii)(2) 80 percent to the respective counties in which the 3.3 lands lie, to be apportioned among the taxing districts 3.4 interested therein as follows: county, three-ninths; town or 3.5 city, two-ninths; and school district, four-ninths. 3.6(b)(d) Except as provided underparagraph (a)this section 3.7 and except where the disposition of payments may be otherwise 3.8 directed by law, all payments shall be paid into the general 3.9 fund of the state. 3.10 Subd. 2. [TACONITE LEASE REVENUE.] Notwithstanding 3.11 subdivision 1, from July 1, 2001, to June 30, 2006, payments 3.12 made under state taconite leases shall be distributed as follows: 3.13 (1) if the lands or minerals and mineral rights covered by 3.14 a lease are held by the state by virtue of a school, swamp, or 3.15 internal improvement land grant of Congress, payments made under 3.16 the lease shall be distributed annually on September 1 to the 3.17 school fund mineral lease suspense account created under section 3.18 93.223, subdivision 1; and 3.19 (2) if the lands or minerals and mineral rights covered by 3.20 a lease are held by the state by virtue of a university land 3.21 grant of Congress, payments made under the lease shall be 3.22 distributed annually on September 1 to the university mineral 3.23 lease suspense account created under section 93.223, subdivision 3.24 2. 3.25 Sec. 2. [93.223] [MINERAL LEASE SUSPENSE ACCOUNTS.] 3.26 Subdivision 1. [SCHOOL FUND MINERAL LEASE SUSPENSE 3.27 ACCOUNT.] The school fund mineral lease suspense account is 3.28 created as an account in the state treasury for mineral lease 3.29 money deposited according to section 93.22, subdivision 2, 3.30 clause (1). Interest earned on money in the account accrues to 3.31 the account. After money is annually deposited in the account 3.32 under section 93.22, subdivision 2, clause (1), the commissioner 3.33 of finance shall certify 20 percent of the payments made during 3.34 the preceding fiscal year as costs for the administration and 3.35 management of mineral leases on permanent school fund lands. 3.36 The commissioner of finance shall transfer the certified amount 4.1 from the school fund mineral lease suspense account to the 4.2 general fund. The balance remaining in the account after the 4.3 certification is annually transferred to the permanent school 4.4 fund. 4.5 Subd. 2. [UNIVERSITY FUND MINERAL LEASE SUSPENSE ACCOUNT.] 4.6 The university fund mineral lease suspense account is created as 4.7 an account in the state treasury for mineral lease money 4.8 deposited according to section 93.22, subdivision 2, clause (2). 4.9 Interest earned on money in the account accrues to the account. 4.10 After money is annually deposited in the account under section 4.11 93.22, subdivision 2, clause (2), the commissioner of finance 4.12 shall certify 20 percent of the payments made during the 4.13 preceding fiscal year as costs for the administration and 4.14 management of mineral leases on permanent university fund 4.15 lands. The commissioner of finance shall transfer the certified 4.16 amount from the university fund mineral lease account to the 4.17 general fund. The balance remaining in the account is annually 4.18 transferred to the permanent university fund. 4.19 Sec. 3. [93.2235] [TACONITE MINING GRANTS; 4.20 APPROPRIATIONS.] 4.21 Subdivision 1. [COMMISSIONER.] The commissioner shall 4.22 establish a program to award grants to taconite mining companies 4.23 for: 4.24 (1) taconite pellet product improvements; 4.25 (2) value-added production of taconite iron ore; or 4.26 (3) cost-savings production improvements at Minnesota 4.27 taconite plants. 4.28 An amount equal to the sum of money transferred to the 4.29 general fund under section 93.223, subdivision 1, is annually 4.30 appropriated from the general fund to the commissioner for the 4.31 purposes of this section. 4.32 Subd. 2. [COLERAINE LABORATORY.] The director of the 4.33 Coleraine laboratory shall establish a program to award grants 4.34 for the purpose of transferring technology from the Coleraine 4.35 laboratory to taconite mining companies for: 4.36 (1) taconite pellet product improvements; 5.1 (2) value-added production of taconite iron ore; or 5.2 (3) cost-savings production improvements at Minnesota 5.3 taconite plants. 5.4 An amount equal to the sum of money transferred to the 5.5 general fund under section 92.223, subdivision 2, is annually 5.6 appropriated from the general fund to the board of regents of 5.7 the University of Minnesota for the purposes of this section. 5.8 Sec. 4. Minnesota Statutes 2000, section 120B.07, is 5.9 amended to read: 5.10 120B.07 [EARLY GRADUATION.] 5.11 Notwithstanding any law to the contrary, any secondary 5.12 school student who has completed all required courses or 5.13 standards may, with the approval of the student, the student's 5.14 parent or guardian, and local school officials, graduate before 5.15 the completion of the school year. General education revenue 5.16 attributable to the student must be paid as though the student 5.17 was in attendance for the entire year. 5.18 Sec. 5. Minnesota Statutes 2000, section 123B.36, 5.19 subdivision 1, is amended to read: 5.20 Subdivision 1. [SCHOOL BOARDS MAY REQUIRE FEES.] (a) For 5.21 purposes of this subdivision, "home school" means a home school 5.22 as defined in sections 120A.22 and 120A.24 with five or fewer 5.23 students receiving instruction. 5.24 (b) A school board is authorized to require payment of fees 5.25 in the following areas: 5.26 (1) in any program where the resultant product, in excess 5.27 of minimum requirements and at the pupil's option, becomes the 5.28 personal property of the pupil; 5.29 (2) admission fees or charges for extra curricular 5.30 activities, where attendance is optional and where the admission 5.31 fees or charges a student must pay to attend or participate in 5.32 an extracurricular activity is the same for all students, 5.33 regardless of whether the student is enrolled in a public or a 5.34 home school; 5.35 (3) a security deposit for the return of materials, 5.36 supplies, or equipment; 6.1 (4) personal physical education and athletic equipment and 6.2 apparel, although any pupil may personally provide it if it 6.3 meets reasonable requirements and standards relating to health 6.4 and safety established by the board; 6.5 (5) items of personal use or products that a student has an 6.6 option to purchase such as student publications, class rings, 6.7 annuals, and graduation announcements; 6.8 (6) fees specifically permitted by any other statute, 6.9 including but not limited to section 171.05, subdivision 2; 6.10 provided (i) driver education fees do not exceed the actual cost 6.11 to the school and school district of providing driver education, 6.12 and (ii) the driver education courses are open to enrollment to 6.13 persons between the ages of 15 and 18 who reside or attend 6.14 school in the school district; 6.15 (7) field trips considered supplementary to a district 6.16 educational program; 6.17 (8) any authorized voluntary student health and accident 6.18 benefit plan; 6.19 (9) for the use of musical instruments owned or rented by 6.20 the district, a reasonable rental fee not to exceed either the 6.21 rental cost to the district or the annual depreciation plus the 6.22 actual annual maintenance cost for each instrument; 6.23 (10) transportation of pupils to and from extra curricular 6.24 activities conducted at locations other than school, where 6.25 attendance is optional; 6.26 (11) transportation to and from school of pupilsto and6.27 living within two miles from schoolfor which aid for fiscal6.28year 1996 is not authorized under Minnesota Statutes 1994,6.29section 124.223, subdivision 1, and for which levy for fiscal6.30year 1996 is not authorized under Minnesota Statutes 1994,6.31section 124.226, subdivision 5,and all other transportation 6.32 services not required by law. If a districtchargingcharges 6.33 fees for transportation of pupilsestablishes, it must establish 6.34 guidelines for that transportation to ensure that no pupil is 6.35 denied transportation solely because of inability to pay; 6.36 (12) motorcycle classroom education courses conducted 7.1 outside of regular school hours; provided the charge must not 7.2 exceed the actual cost of these courses to the school district; 7.3 (13) transportation to and from post-secondary institutions 7.4 for pupils enrolled under the post-secondary enrollment options 7.5 program under section 123B.88, subdivision 22. Fees collected 7.6 for this service must be reasonable and must be used to reduce 7.7 the cost of operating the route. Families who qualify for 7.8 mileage reimbursement under section 124D.09, subdivision 22, may 7.9 use their state mileage reimbursement to pay this fee. If no 7.10 fee is charged, districts must allocate costs based on the 7.11 number of pupils riding the route. 7.12 Sec. 6. Minnesota Statutes 2000, section 123B.37, 7.13 subdivision 1, is amended to read: 7.14 Subdivision 1. [BOARDS SHALL NOT CHARGE CERTAIN FEES.] (a) 7.15 A board is not authorized to charge fees in the following areas: 7.16 (1) textbooks, workbooks, art materials, laboratory 7.17 supplies, towels; 7.18 (2) supplies necessary for participation in any 7.19 instructional course except as authorized in sections 123B.36 7.20 and 123B.38; 7.21 (3) field trips that are required as a part of a basic 7.22 education program or course; 7.23 (4) graduation caps, gowns, any specific form of dress 7.24 necessary for any educational program, and diplomas; 7.25 (5) instructional costs for necessary school personnel 7.26 employed in any course or educational program required for 7.27 graduation; 7.28 (6) library books required to be utilized for any 7.29 educational course or program; 7.30 (7) admission fees, dues, or fees for any activity the 7.31 pupil is required to attend; 7.32 (8) any admission or examination cost for any required 7.33 educational course or program; 7.34 (9) locker rentals; 7.35 (10) transportation to and from school of pupils(i) for7.36which state transportation aid for fiscal year 1996 is8.1authorized pursuant to Minnesota Statutes 1994, section 124.223,8.2or (ii) for which a levy for fiscal year 1996 is authorized8.3under Minnesota Statutes 1994, section 124.226, subdivision8.45living two miles or more from school. 8.5 (b) Notwithstanding paragraph (a), clauses (1) and (6), a 8.6 board may charge fees for textbooks, workbooks, and library 8.7 books, lost or destroyed by students. The board must annually 8.8 notify parents or guardians and students about its policy to 8.9 charge a fee under this paragraph. 8.10 Sec. 7. Minnesota Statutes 2000, section 123B.42, 8.11 subdivision 3, is amended to read: 8.12 Subd. 3. [COST; LIMITATION.] (a) The cost per pupil of the 8.13 textbooks, individualized instructional or cooperative learning 8.14 materials, and standardized tests provided for in this section 8.15 for each school year must not exceed the statewide average 8.16 expenditure per pupil, adjusted pursuant to clause (b), by the 8.17 Minnesota public elementary and secondary schools for textbooks, 8.18 individualized instructional materials and standardized tests as 8.19 computed and established by the department byMarchFebruary 1 8.20 of the preceding school year from the most recent public school 8.21 year data then available. 8.22 (b) The cost computed in clause (a) shall be increased by 8.23 an inflation adjustment equal to the percent of increase in the 8.24 formula allowance, pursuant to section 126C.10, subdivision 2, 8.25 from the second preceding school year to the current school year. 8.26 Notwithstanding the amount of the formula allowance for fiscal 8.27 years 2003 and 2004 in section 126C.10, subdivision 2, the 8.28 commissioner shall use the amount of the formula allowance for 8.29 the current year minus $942 in determining the inflation 8.30 adjustment for those fiscal years. 8.31 (c) The commissioner shall allot to the districts or 8.32 intermediary service areas the total cost for each school year 8.33 of providing or loaning the textbooks, individualized 8.34 instructional or cooperative learning materials, and 8.35 standardized tests for the pupils in each nonpublic school. The 8.36 allotment shall not exceed the product of the statewide average 9.1 expenditure per pupil, according to clause (a), adjusted 9.2 pursuant to clause (b), multiplied by the number of nonpublic 9.3 school pupils who make requests pursuant to this section and who 9.4 are enrolled as of September 15 of the current school year. 9.5 Sec. 8. Minnesota Statutes 2000, section 123B.75, 9.6 subdivision 5, is amended to read: 9.7 Subd. 5. [LEVY RECOGNITION.] (a) "School district tax 9.8 settlement revenue" means the current, delinquent, and 9.9 manufactured home property tax receipts collected by the county 9.10 and distributed to the school district. 9.11 (b) In June ofeach year2001, the school district must 9.12 recognize as revenue, in the fund for which the levy was made, 9.13 the lesser of: 9.14 (1) the sum of May, June, and July school district tax 9.15 settlement revenue received in that calendar year plus general 9.16 education aid according to section 126C.13, subdivision 4, 9.17 received in July and August of that calendar year; or 9.18 (2) the sum of: 9.19 (i) 31 percent of the referendum levy certified in the 9.20 prior calendar year according to section 126C.17, subdivision 9; 9.21 plus 9.22 (ii) the entire amount of the levy certified in the prior 9.23 calendar year according to sections 124D.86, subdivision 4, for 9.24 school districts receiving revenue under 124D.86, subdivision 3, 9.25 clauses (1), (2), and (3); 126C.41, subdivisions 1, 2, and 3, 9.26 paragraphs (4), (5), and (6); 126C.43, subdivision 2; and 9.27 126C.48, subdivision 6. 9.28 (c) For fiscal year 2002 and later years, in June of each 9.29 year, the school district must recognize as revenue, in the fund 9.30 for which the levy was made, the lesser of: 9.31 (1) the sum of May, June, and July school district tax 9.32 settlement revenue received in that calendar year, plus general 9.33 education aid according to section 126C.13, subdivision 4, 9.34 received in July and August of that calendar year; or 9.35 (2) the sum of: 9.36 (i) 31 percent of the referendum levy certified according 10.1 to section 126C.17, in calendar year 2000; plus 10.2 (ii) the entire amount of the levy certified in the prior 10.3 calendar year according to section 124D.86, subdivision 4, for 10.4 school districts receiving revenue under sections 124D.86, 10.5 subdivision 3, clauses (1), (2), and (3); 126C.41, subdivisions 10.6 1, 2, and 3, paragraphs (4), (5), and (6); 126C.43, subdivision 10.7 2; and 126C.48, subdivision 6. 10.8 [EFFECTIVE DATE.] This section is effective June 30, 2001. 10.9 Sec. 9. Minnesota Statutes 2000, section 123B.88, 10.10 subdivision 1, is amended to read: 10.11 Subdivision 1. [PROVIDING TRANSPORTATION.] The board may 10.12 provide for the transportation of pupils to and from school and 10.13 for any other purpose. The board may also provide for the 10.14 transportation of pupils to schools in other districts for 10.15 grades and departments not maintained in the district, including 10.16 high school, at the expense of the district, when funds are 10.17 available therefor and if agreeable to the district to which it 10.18 is proposed to transport the pupils, for the whole or a part of 10.19 the school year, as it may deem advisable, and subject to its 10.20 rules. In any district, the board must arrange for the 10.21 attendance of all pupils living two miles or more from the 10.22 school, except pupils whose transportation privileges have been 10.23 voluntarily surrendered under subdivision 2, or whose privileges 10.24 have been revoked under section 123B.91, subdivision 1, clause 10.25 (6), or 123B.90, subdivision 2. The district may provide for 10.26 the transportation of or the boarding and rooming of the pupils 10.27 who may be more economically and conveniently provided for by 10.28 that means. Arrangements for attendance may include a 10.29 requirement that parents or guardians request transportation 10.30 before it is provided. The board must provide transportation to 10.31 and from the home of a child with a disability not yet enrolled 10.32 in kindergarten when special instruction and services under 10.33 sections 125A.03 to 125A.24, 125A.26 to 125A.48, and 125A.65 are 10.34 provided in a location other than in the child's home. When 10.35 transportation is provided, scheduling of routes, establishment 10.36 of the location of bus stops, manner and method of 11.1 transportation, control and discipline of school children, the 11.2 determination of fees, and any other matter relating thereto 11.3 must be within the sole discretion, control, and management of 11.4 the board. The district may provide for the transportation of 11.5 pupils or expend a reasonable amount for room and board of 11.6 pupils whose attendance at school can more economically and 11.7 conveniently be provided for by that means or who attend school 11.8 in a building rented or leased by a district within the confines 11.9 of an adjacent district. 11.10 Sec. 10. Minnesota Statutes 2000, section 123B.92, 11.11 subdivision 9, is amended to read: 11.12 Subd. 9. [NONPUBLIC PUPIL TRANSPORTATION AID.] (a) A 11.13 district's nonpublic pupil transportation aid for the 1996-1997 11.14 and later school years for transportation services for nonpublic 11.15 school pupils according to sections 123B.88, 123B.84 to 123B.86, 11.16 and this section, equals the sum of the amounts computed in 11.17 paragraphs (b) and (c). This aid does not limit the obligation 11.18 to transport pupils under sections 123B.84 to 123B.87. 11.19 (b) For regular and excess transportation according to 11.20 subdivision 1, paragraph (b), clauses (1) and (2), an amount 11.21 equal to the product of: 11.22 (1) the district's actual expenditure per pupil transported 11.23 in the regular and excess transportation categories during the 11.24 second preceding school year; times 11.25 (2) the number of nonpublic school pupils residing in the 11.26 district who receive regular or excess transportation service or 11.27 reimbursement for the current school year; times 11.28 (3) the ratio of the formula allowance pursuant to section 11.29 126C.10, subdivision 2, for the current school year to the 11.30 formula allowance pursuant to section 126C.10, subdivision 2, 11.31 for the second preceding school year. 11.32 (c) For nonpublic nonregular transportation according to 11.33 subdivision 1, paragraph (b), clause (5), an amount equal to the 11.34 product of: 11.35 (1) the district's actual expenditure for nonpublic 11.36 nonregular transportation during the second preceding school 12.1 year; times 12.2 (2) the ratio of the formula allowance pursuant to section 12.3 126C.10, subdivision 2, for the current school year to the 12.4 formula allowance pursuant to section 126C.10, subdivision 2, 12.5 for the second preceding school year. 12.6 (d) Notwithstanding the amount of the formula allowance for 12.7 fiscal years 2000, 2001, and 2002 in section 126C.10, 12.8 subdivision 2, the commissioner shall use the amount of the 12.9 formula allowance for the current year plus $87 in determining 12.10 the nonpublic pupil transportation revenue in paragraphs (b) and 12.11 (c) for fiscal year 2000, and the amount of the formula 12.12 allowance less $110 in determining the nonpublic pupil 12.13 transportation revenue in paragraphs (b) and (c) for fiscal 12.14 years 2001 and 2002. 12.15 (e) Notwithstanding the amount of the formula allowance for 12.16 fiscal years 2003 and 2004 in section 126C.10, subdivision 2, 12.17 the commissioner shall use the amount of the formula allowance 12.18 for the current year minus $942 in determining the nonpublic 12.19 pupil transportation revenue in paragraphs (b) and (c) for those 12.20 fiscal years. 12.21 Sec. 11. Minnesota Statutes 2000, section 126C.05, 12.22 subdivision 1, is amended to read: 12.23 Subdivision 1. [PUPIL UNIT.] Pupil units for each 12.24 Minnesota resident pupil in average daily membership enrolled in 12.25 the district of residence, in another district under sections 12.26 123A.05 to 123A.08, 124D.03, 124D.06, 124D.07, 124D.08, or 12.27 124D.68; in a charter school under section 124D.10; or for whom 12.28 the resident district pays tuition under section 123A.18, 12.29 123A.22, 123A.30, 123A.32, 123A.44, 123A.488, 123B.88, 12.30 subdivision 4, 124D.04, 124D.05, 125A.03 to 125A.24, 125A.51, or 12.31 125A.65, shall be counted according to this subdivision. 12.32 (a) A prekindergarten pupil with a disability who is 12.33 enrolled in a program approved by the commissioner and has an 12.34 individual education plan is counted as the ratio of the number 12.35 of hours of assessment and education service to 825 times 1.25 12.36 with a minimum average daily membership of 0.28, but not more 13.1 than 1.25 pupil units. 13.2 (b) A prekindergarten pupil who is assessed but determined 13.3 not to be handicapped is counted as the ratio of the number of 13.4 hours of assessment service to 825 times 1.25. 13.5 (c) A kindergarten pupil with a disability who is enrolled 13.6 in a program approved by the commissioner is counted as the 13.7 ratio of the number of hours of assessment and education 13.8 services required in the fiscal year by the pupil's individual 13.9 education program plan to 875, but not more than one. 13.10 (d) A kindergarten pupil who is not included in paragraph 13.11 (c) is counted as .557 of a pupil unit for fiscal year20002002 13.12 and .5 of a pupil unit for fiscal year 2003 and thereafter. 13.13 (e) A pupil who is in any of grades 1 to 3 is counted as 13.14 1.115 pupil units for fiscal year20002002 and one pupil unit 13.15 for fiscal year 2003 and thereafter. 13.16 (f) A pupil who is any of grades 4 to 6 is counted as 1.06 13.17 pupil units for fiscal year19952002 and one pupil unit for 13.18 fiscal year 2003 and thereafter. 13.19 (g) A pupil who is in any of grades 7 to 12 is counted as 13.20 1.3 pupil units for fiscal year 2002 and 1.15 pupil units for 13.21 fiscal year 2003 and thereafter. 13.22 (h) A pupil who is in the post-secondary enrollment options 13.23 program is counted as 1.3 pupil units for fiscal year 2002 and 13.24 1.15 pupil units for fiscal year 2003 and thereafter. 13.25 Sec. 12. Minnesota Statutes 2000, section 126C.10, 13.26 subdivision 1, is amended to read: 13.27 Subdivision 1. [GENERAL EDUCATION REVENUE.] (a) For fiscal 13.28 year2000 and thereafter2002, the general education revenue for 13.29 each district equals the sum of the district's basic revenue, 13.30 basic skills revenue, training and experience revenue, secondary 13.31 sparsity revenue, elementary sparsity revenue, transportation 13.32 sparsity revenue, total operating capital revenue, equity 13.33 revenue,referendum offset adjustment,transition revenue, and 13.34 supplemental revenue. 13.35 (b) For fiscal year 2003 and later, the general education 13.36 revenue for each district equals the sum of the district's basic 14.1 revenue, basic skills revenue, training and experience revenue, 14.2 secondary sparsity revenue, elementary sparsity revenue, 14.3 transportation sparsity revenue, total operating capital 14.4 revenue, and equity revenue, minus its phased revenue adjustment. 14.5 Sec. 13. Minnesota Statutes 2000, section 126C.10, 14.6 subdivision 2, is amended to read: 14.7 Subd. 2. [BASIC REVENUE.] The basic revenue for each 14.8 district equals the formula allowance times the adjusted 14.9 marginal cost pupil units for the school year.The formula14.10allowance for fiscal year 1998 is $3,581. The formula allowance14.11for fiscal year 1999 is $3,530. The formula allowance for14.12fiscal year 2000 is $3,740.The formula allowance for fiscal 14.13 year 2001and subsequent fiscal yearsis $3,964. The formula 14.14 allowance for fiscal year 2002 is $4,070. The formula allowance 14.15 for fiscal year 2003 and subsequent years is $5,135. 14.16 Sec. 14. Minnesota Statutes 2000, section 126C.10, 14.17 subdivision 3, is amended to read: 14.18 Subd. 3. [COMPENSATORY EDUCATION REVENUE.] For fiscal year 14.19 2002, the compensatory education revenue for each building in 14.20 the district equals the formula allowance times the compensation 14.21 revenue pupil units computed according to section 126C.05, 14.22 subdivision 3. For fiscal year 2003, the compensatory education 14.23 revenue for each building in the district equals the formula 14.24 allowance minus $808 times the compensation revenue pupil units 14.25 computed according to section 126C.05, subdivision 3. For 14.26 fiscal year 2004, the compensatory education revenue for each 14.27 building in the district equals the formula allowance minus $703 14.28 times the compensation revenue pupil units computed according to 14.29 section 126C.05, subdivision 3. For fiscal year 2005, the 14.30 compensatory education revenue for each building in the district 14.31 equals the formula allowance minus $598 times the compensation 14.32 revenue pupil units computed according to section 126C.05, 14.33 subdivision 3. For fiscal year 2006 and later, the compensatory 14.34 education revenue for each building in the district equals the 14.35 formula allowance minus $493 times the compensation revenue 14.36 pupil units computed according to section 126C.05, subdivision 15.1 3. Revenue shall be paid to the district and must be allocated 15.2 according to section 126C.15, subdivision 2. 15.3 Sec. 15. Minnesota Statutes 2000, section 126C.10, 15.4 subdivision 4, is amended to read: 15.5 Subd. 4. [BASIC SKILLS REVENUE.] (a) For fiscal year199915.6and thereafter2002, a school district's basic skills revenue 15.7 equals the sum of: 15.8 (1) compensatory revenue under subdivision 3; plus 15.9 (2) limited English proficiency revenue according to 15.10 section 124D.65, subdivision 5; plus 15.11 (3) $190 times the limited English proficiency pupil units 15.12 according to section 126C.05, subdivision 17; plus 15.13 (4) $22.50 times the number of adjusted marginal cost pupil 15.14 units in kindergarten to grade 8. 15.15 (b) For fiscal year 2003, a school district's basic skills 15.16 revenue equals the sum of: 15.17 (1) compensatory revenue under subdivision 3; plus 15.18 (2) limited English proficiency revenue under section 15.19 124D.65, subdivision 5; plus 15.20 (3) $190 times the limited English proficiency pupil units 15.21 under section 126C.05, subdivision 17. 15.22 Sec. 16. Minnesota Statutes 2000, section 126C.10, 15.23 subdivision 5, is amended to read: 15.24 Subd. 5. [TRAINING AND EXPERIENCE REVENUE.] (a) For fiscal 15.25 year 2002, the training and experience revenue for each district 15.26 equals the greater of zero or the result of the following 15.27 computation: 15.28 (1) subtract .8 from the training and experience index; 15.29 (2) multiply the result in clause (1) by the product of 15.30 $660 times the adjusted marginal cost pupil units for the school 15.31 year. 15.32 (b) For fiscal year 2003, a school district's training and 15.33 experience revenue equals the district's fiscal year 2001 15.34 training and experience revenue per adjusted marginal cost pupil 15.35 unit, times 44.4 percent, times the adjusted marginal cost pupil 15.36 units for the school year. 16.1 (c) For fiscal year 2004, a school district's training and 16.2 experience revenue equals the district's fiscal year 2001 16.3 training and experience revenue per adjusted marginal cost pupil 16.4 unit, times 22.2 percent, times the adjusted marginal cost pupil 16.5 units for the school year. 16.6 (d) For fiscal year 2005 and later, a school district's 16.7 training and experience revenue equals zero. 16.8 Sec. 17. Minnesota Statutes 2000, section 126C.10, 16.9 subdivision 7, is amended to read: 16.10 Subd. 7. [SECONDARY SPARSITY REVENUE.] (a) For fiscal year 16.11 2002, a district's secondary sparsity revenue for a school year 16.12 equals the sum of the results of the following calculation for 16.13 each qualifying high school in the district: 16.14 (1) the formula allowance for the school year, multiplied 16.15 by 16.16 (2) the secondary average daily membership of pupils served 16.17 in the high school, multiplied by 16.18 (3) the quotient obtained by dividing 400 minus the 16.19 secondary average daily membership by 400 plus the secondary 16.20 daily membership, multiplied by 16.21 (4) the lesser of 1.5 or the quotient obtained by dividing 16.22 the isolation index minus 23 by ten. 16.23 (b) For fiscal year 2003, a district's secondary sparsity 16.24 revenue for a school year equals the sum of the results of the 16.25 following calculation for each qualifying high school in the 16.26 district: 16.27 (1) the formula allowance for the school year minus $808, 16.28 multiplied by 16.29 (2) the secondary average daily membership of pupils served 16.30 in the high school, multiplied by 16.31 (3) the quotient obtained by dividing 400 minus the 16.32 secondary average daily membership by 400 plus the secondary 16.33 daily membership, multiplied by 16.34 (4) the lesser of 1.5 or the quotient obtained by dividing 16.35 the isolation index minus 23 by ten. 16.36 (c) For fiscal year 2004, a district's secondary sparsity 17.1 revenue for a school year equals the sum of the results of the 17.2 following calculation for each qualifying high school in the 17.3 district: 17.4 (1) the formula allowance for the school year minus $703, 17.5 multiplied by 17.6 (2) the secondary average daily membership of pupils served 17.7 in the high school, multiplied by 17.8 (3) the quotient obtained by dividing 400 minus the 17.9 secondary average daily membership, multiplied by 17.10 (4) the lesser of 1.5 or the quotient obtained by dividing 17.11 the isolation index minus 23 by ten. 17.12 (d) For fiscal year 2005, a district's secondary sparsity 17.13 revenue for a school year equals the sum of the results of the 17.14 following calculation for each qualifying high school in the 17.15 district: 17.16 (1) the formula allowance for the school year minus $598, 17.17 multiplied by 17.18 (2) the secondary average daily membership of pupils served 17.19 in the high school, multiplied by 17.20 (3) the quotient obtained by dividing 400 minus the 17.21 secondary average daily membership, multiplied by 17.22 (4) the lesser of 1.5 or the quotient obtained by dividing 17.23 the isolation index minus 23 by ten. 17.24 (e) For fiscal year 2006 and later, a district's secondary 17.25 sparsity revenue for a school year equals the sum of the results 17.26 of the following calculation for each qualifying high school in 17.27 the district: 17.28 (1) the formula allowance for the school year minus $493, 17.29 multiplied by 17.30 (2) the secondary average daily membership of pupils served 17.31 in the high school, multiplied by 17.32 (3) the quotient obtained by dividing 400 minus the 17.33 secondary average daily membership, multiplied by 17.34 (4) the lesser of 1.5 or the quotient obtained by dividing 17.35 the isolation index minus 23 by ten. 17.36 (f) A newly formed district that is the result of districts 18.1 combining under the cooperation and combination program or 18.2 consolidating under section 123A.48 must receive secondary 18.3 sparsity revenue equal to the greater of: (1) the amount 18.4 calculated under paragraph (a) for the combined district; or (2) 18.5 the sum of the amounts of secondary sparsity revenue the former 18.6 districts had in the year prior to consolidation, increased for 18.7 any subsequent changes in the secondary sparsity formula. 18.8 Sec. 18. Minnesota Statutes 2000, section 126C.10, 18.9 subdivision 8, is amended to read: 18.10 Subd. 8. [ELEMENTARY SPARSITY REVENUE.] (a) For fiscal 18.11 year 2002, a district's elementary sparsity revenue equals the 18.12 sum of the following amounts for each qualifying elementary 18.13 school in the district: 18.14 (1) the formula allowance for the year, multiplied by 18.15 (2) the elementary average daily membership of pupils 18.16 served in the school, multiplied by 18.17 (3) the quotient obtained by dividing 140 minus the 18.18 elementary average daily membership by 140 plus the average 18.19 daily membership. 18.20 (b) For fiscal year 2003, a district's elementary sparsity 18.21 revenue equals the sum of the following amounts for each 18.22 qualifying elementary school in the district: 18.23 (1) the formula allowance for the year minus $808, 18.24 multiplied by 18.25 (2) the elementary average daily membership of pupils 18.26 served in the school, multiplied by 18.27 (3) the quotient obtained by dividing 140 minus the 18.28 elementary average daily membership by 140 plus the average 18.29 daily membership. 18.30 (c) For fiscal year 2004, a district's elementary sparsity 18.31 revenue equals the sum of the following amounts for each 18.32 qualifying elementary school in the district: 18.33 (1) the formula allowance for the year minus $703, 18.34 multiplied by 18.35 (2) the elementary average daily membership of pupils 18.36 served in the school, multiplied by 19.1 (3) the quotient obtained by dividing 140 minus the 19.2 elementary average daily membership by 140 plus the average 19.3 daily membership. 19.4 (d) For fiscal year 2005, a district's elementary sparsity 19.5 revenue equals the sum of the following amounts for each 19.6 qualifying elementary school in the district: 19.7 (1) the formula allowance for the year minus $598, 19.8 multiplied by 19.9 (2) the elementary average daily membership of pupils 19.10 served in the school, multiplied by 19.11 (3) the quotient obtained by dividing 140 minus the 19.12 elementary average daily membership by 140 plus the average 19.13 daily membership. 19.14 (e) For fiscal year 2006 and later, a district's elementary 19.15 sparsity revenue equals the sum of the following amounts for 19.16 each qualifying elementary school in the district: 19.17 (1) the formula allowance for the year minus $493, 19.18 multiplied by 19.19 (2) the elementary average daily membership of pupils 19.20 served in the school, multiplied by 19.21 (3) the quotient obtained by dividing 140 minus the 19.22 elementary average daily membership by 140 plus the average 19.23 daily membership. 19.24 Sec. 19. Minnesota Statutes 2000, section 126C.10, 19.25 subdivision 13, is amended to read: 19.26 Subd. 13. [TOTAL OPERATING CAPITAL REVENUE.] (a) For 19.27 fiscal year2000 and thereafter2002, total operating capital 19.28 revenue for a district equals the amount determined under 19.29 paragraph (b) or(c)(e), plus $73 times the adjusted marginal 19.30 cost pupil units for the school year. The revenue must be 19.31 placed in a reserved account in the general fund and may only be 19.32 used according to paragraph(d)(f) or subdivision 14. 19.33 (b) For fiscalyears 2000 and lateryear 2002, capital 19.34 revenue for a district equals $100 times the district's 19.35 maintenance cost index times its adjusted marginal cost pupil 19.36 units for the school year. 20.1 (c) For fiscal year 2003 and later, total operating capital 20.2 revenue for a district equals the amount determined under 20.3 paragraph (b) or (e), plus $81 times the adjusted marginal cost 20.4 pupil units for the school year. The revenue must be placed in 20.5 a reserved account in the general fund and may only be used 20.6 according to paragraph (f) or subdivision 14. 20.7 (d) For fiscal year 2003 and later, capital revenue for a 20.8 district equals $111 times the district's maintenance cost index 20.9 times its adjusted marginal cost pupil units for the school year. 20.10 (e) For fiscal years 2000 and later, the revenue for a 20.11 district that operates a program under section 124D.128, is 20.12 increased by an amount equal to $30 times the number of marginal 20.13 cost pupil units served at the site where the program is 20.14 implemented. 20.15(d)(f) For fiscal years 2001and, 2002, and 2003, the 20.16 district must reserve an amount equal to $5 per adjusted 20.17 marginal cost pupil unit for telecommunication access costs. 20.18 Reserve revenue under this paragraph must first be used to pay 20.19 for ongoing or recurring telecommunication access costs, 20.20 including access to datalines,and videolines20.21 connections,orincluding Internet access. Any revenue 20.22 remaining after covering all ongoing or recurring access costs 20.23 may be used for computer hardware or equipment. 20.24 Sec. 20. Minnesota Statutes 2000, section 126C.10, 20.25 subdivision 18, is amended to read: 20.26 Subd. 18. [TRANSPORTATION SPARSITY REVENUE ALLOWANCE.] (a) 20.27 For fiscal year 2002, a district's transportation sparsity 20.28 allowance equals the greater of zero or the result of the 20.29 following computation: 20.30 (i) Multiply the formula allowance according to subdivision 20.31 2, by .1469. 20.32 (ii) Multiply the result in clause (i) by the district's 20.33 sparsity index raised to the 26/100 power. 20.34 (iii) Multiply the result in clause (ii) by the district's 20.35 density index raised to the 13/100 power. 20.36 (iv) Multiply the formula allowance according to 21.1 subdivision 2, by .0485. 21.2 (v) Subtract the result in clause (iv) from the result in 21.3 clause (iii). 21.4 (b) For fiscal year 2003 and later, a district's 21.5 transportation sparsity allowance equals the greater of zero or 21.6 the result of the following computation: 21.7 (i) Multiply the formula allowance according to subdivision 21.8 2, by .14. 21.9 (ii) Multiply the result in clause (i) by the district's 21.10 sparsity index raised to the 28/100 power. 21.11 (iii) Multiply the result in clause (ii) by the district's 21.12 density index raised to the 14/100 power. 21.13 (iv) Multiply the formula allowance according to 21.14 subdivision 2, by .0425. 21.15 (v) Subtract the result in clause (iv) from the result in 21.16 clause (iii). 21.17 (c) Transportation sparsity revenue is equal to the 21.18 transportation sparsity allowance times the adjusted marginal 21.19 cost pupil units. 21.20 Sec. 21. Minnesota Statutes 2000, section 126C.10, 21.21 subdivision 24, is amended to read: 21.22 Subd. 24. [EQUITY REVENUE QUALIFICATION.] (a) For fiscal 21.23 year 2002, a school district qualifies for equity revenue if the 21.24 school district's adjusted marginal cost pupil unit amount of 21.25 basic revenue, supplemental revenue, transition revenue, and 21.26 referendum revenue is less than the value of the school district 21.27 at or immediately above the 90th percentile of school districts 21.28 in its equity region for those revenue categories and the school 21.29 district's administrative offices are not located in a city of 21.30 the first class on July 1, 1999. 21.31 (b)Equity revenue for a qualifying district that receives21.32referendum revenue under section 126C.17, subdivision 4, equals21.33the product of (1) the district's adjusted marginal cost pupil21.34units for that year; times (2) the sum of (i) $10, plus (ii)21.35$30, times the school district's equity index computed under21.36subdivision 27.22.1(c) Equity revenue for a qualifying district that does not22.2receive referendum revenue under section 126C.17, subdivision 4,22.3equals the product of the district's adjusted marginal cost22.4pupil units for that year times $10For fiscal year 2003 and 22.5 thereafter, a school district qualifies for equity revenue if 22.6 the school district's adjusted marginal cost pupil unit amount 22.7 of basic revenue and referendum revenue is less than the value 22.8 of the school district at or immediately above the 90th 22.9 percentile of school districts in its equity region for those 22.10 revenue categories and the school district's administrative 22.11 offices were not located in a city of the first class on July 1, 22.12 1999. 22.13 Sec. 22. Minnesota Statutes 2000, section 126C.10, is 22.14 amended by adding a subdivision to read: 22.15 Subd. 24a. [METRO EQUITY REVENUE.] (a) For fiscal year 22.16 2002, equity revenue for a qualifying district located in the 22.17 metro equity region that receives referendum revenue under 22.18 section 126C.17, subdivision 4, equals the product of: 22.19 (1) the district's adjusted marginal cost pupil units for 22.20 that year; times 22.21 (2) the sum of: 22.22 (i) $20, plus 22.23 (ii) $60, times the school district's equity index computed 22.24 under subdivision 27. 22.25 (b) For fiscal year 2003 and thereafter, equity revenue for 22.26 a qualifying district located in the metro equity region that 22.27 receives referendum revenue under section 126C.17, subdivision 22.28 4, in fiscal year 2002 or has a board-approved referendum under 22.29 section 126C.18, subdivision 5, equals the product of: 22.30 (1) the district's adjusted marginal cost pupil units for 22.31 that year; times 22.32 (2) the sum of: 22.33 (i) $30, plus 22.34 (ii) $90, times the school district's equity index computed 22.35 under subdivision 27. 22.36 (c) For fiscal year 2002, equity revenue for a qualifying 23.1 district located in the metro equity region that does not 23.2 receive referendum revenue under section 126C.17, subdivision 4, 23.3 equals the product of the district's adjusted marginal cost 23.4 pupil units for that year times $20. 23.5 (d) For fiscal year 2003 and thereafter, equity revenue for 23.6 a qualifying district located in the metro equity region that 23.7 did not receive referendum revenue in fiscal year 2002 under 23.8 section 126C.17, subdivision 4, and does not have a 23.9 board-approved referendum under section 126C.18, subdivision 5, 23.10 equals the product of the district's adjusted marginal cost 23.11 pupil units for that year times $30. 23.12 Sec. 23. Minnesota Statutes 2000, section 126C.10, is 23.13 amended by adding a subdivision to read: 23.14 Subd. 24b. [GREATER MINNESOTA EQUITY REVENUE.] (a) For 23.15 fiscal year 2002, equity revenue for a qualifying district 23.16 located in the greater Minnesota equity region that receives 23.17 referendum revenue under section 126C.17, subdivision 4, equals 23.18 the product of: 23.19 (1) the district's adjusted marginal cost pupil units for 23.20 that year; times 23.21 (2) the sum of: 23.22 (i) $13, plus 23.23 (ii) $39, times the school district's equity index computed 23.24 under subdivision 27. 23.25 (b) For fiscal year 2003 and thereafter, equity revenue for 23.26 a qualifying district located in the greater Minnesota equity 23.27 region that receives referendum revenue in fiscal year 2002 23.28 under section 126C.17, subdivision 4, or has a board-approved 23.29 referendum under section 126C.18, subdivision 5, equals the 23.30 product of: 23.31 (1) the district's adjusted marginal cost pupil units for 23.32 that year; times 23.33 (2) the sum of: 23.34 (i) $14, plus 23.35 (ii) $42, times the school district's equity index computed 23.36 under subdivision 27. 24.1 (c) For fiscal year 2002, equity revenue for a qualifying 24.2 district located in the greater Minnesota equity region that 24.3 does not receive referendum revenue under section 126C.17, 24.4 subdivision 4, equals the product of the district's adjusted 24.5 marginal cost pupil units for that year times $13. 24.6 (d) For fiscal year 2003, equity revenue for a qualifying 24.7 district located in the greater Minnesota equity region that did 24.8 not receive referendum revenue in fiscal year 2002 under section 24.9 126C.17, subdivision 4, and does not have a board-approved 24.10 referendum under section 126C.18, subdivision 5, equals the 24.11 product of the district's adjusted marginal cost pupil units for 24.12 that year times $14. 24.13 Sec. 24. Minnesota Statutes 2000, section 126C.10, 24.14 subdivision 28, is amended to read: 24.15 Subd. 28. [EQUITY REGION.] For the purposes of computing 24.16 equity revenue under subdivision 23, a district whose 24.17 administrative offices on July 1, 1999, is located in Anoka, 24.18 Carver, Dakota, Hennepin, Ramsey, Scott, or Washington county is 24.19 part of the metro equity region. Districts whose administrative 24.20 offices on July 1, 1999, are not located in Anoka, Carver, 24.21 Dakota, Hennepin, Ramsey, Scott, or Washington county are part 24.22 of theruralgreater Minnesota equity region. 24.23 Sec. 25. Minnesota Statutes 2000, section 126C.10, is 24.24 amended by adding a subdivision to read: 24.25 Subd. 29. [PHASED REVENUE ALLOWANCE.] (a) If the sum of a 24.26 district's fiscal year 2003 initial referendum allowance plus 24.27 its referendum conversion allowance is less than $461 and the 24.28 district is not part of the metro equity region under 24.29 subdivision 28, the district shall receive a phased revenue 24.30 allowance. 24.31 (b) For fiscal year 2003, a district's phased revenue 24.32 allowance is equal to $461 minus the sum of a district's fiscal 24.33 year 2003 initial referendum allowance, plus its fiscal year 24.34 referendum conversion allowance, times 75 percent. 24.35 (c) For fiscal year 2004, a district's phased revenue 24.36 allowance is equal to $461 minus the sum of a district's fiscal 25.1 year 2003 initial referendum allowance, plus its referendum 25.2 conversion allowance, times 50 percent. 25.3 (d) For fiscal year 2005, a district's phased revenue 25.4 allowance is equal to $461 minus the sum of a district's fiscal 25.5 year 2003 initial referendum allowance, plus its referendum 25.6 conversion allowance, times 25 percent. 25.7 (e) For fiscal year 2006 and later, a district's phased 25.8 revenue allowance is equal to zero. 25.9 [EFFECTIVE DATE.] This section is effective for revenue for 25.10 fiscal year 2003 and later. 25.11 Sec. 26. Minnesota Statutes 2000, section 126C.10, is 25.12 amended by adding a subdivision to read: 25.13 Subd. 30. [PHASED REVENUE ADJUSTMENT.] For fiscal years 25.14 2003, 2004, and 2005, a school district's phased revenue 25.15 adjustment is equal to its phased revenue allowance for that 25.16 year multiplied by its adjusted marginal cost pupil units. 25.17 [EFFECTIVE DATE.] This section is effective for revenue for 25.18 fiscal year 2003 and later. 25.19 Sec. 27. Minnesota Statutes 2000, section 126C.12, 25.20 subdivision 1, is amended to read: 25.21 Subdivision 1. [REVENUE.] (a) Of a district's general 25.22 education revenue for fiscal year2000 and thereafter2002 each 25.23 school district shall reserve an amount equal to the formula 25.24 allowance multiplied by the following calculation: 25.25 (1) the sum of adjusted marginal cost pupils in average 25.26 daily membership, according to section 126C.05, subdivision 5, 25.27 in kindergarten times .057; plus 25.28 (2) the sum of adjusted marginal cost pupils in average 25.29 daily membership, according to section 126C.05, subdivision 5, 25.30 in grades 1 to 3 times .115; plus 25.31 (3) the sum of adjusted marginal cost pupils in average 25.32 daily membership, according to section 126C.05, subdivision 5, 25.33 in grades 4 to 6 times .06. 25.34 (b) Of a district's general education revenue for fiscal 25.35 year 2003 and later, each school district shall reserve an 25.36 amount equal to: 26.1 (1) the product of the formula allowance; times 26.2 (2) six percent; times 26.3 (3) the sum of adjusted marginal cost pupil units according 26.4 to section 126C.05, subdivision 5, in kindergarten through grade 26.5 6. 26.6 Sec. 28. Minnesota Statutes 2000, section 126C.12, 26.7 subdivision 2, is amended to read: 26.8 Subd. 2. [INSTRUCTOR DEFINEDDEFINITIONS.]Primary26.9instructor(a) "Classroom teacher" means, for the purpose of the 26.10 annual report in subdivision 6, for collecting consistent state 26.11 data, and for determining the cost of reducing actual class size 26.12 to a level of 1 to 17, a public employee licensed by the board 26.13 of teaching who is authorized to teach all subjects to children 26.14 in any grade kindergarten through grade 6 and whose duties are 26.15 full-time regular classroom instruction, excluding a teacher for 26.16 whom federal aids are received or for whom categorical aids are 26.17 received pursuant to section 125A.76 or who is an itinerant 26.18 teacher or provides instruction outside of the regular 26.19 classroom. Except as provided in section 122A.68, subdivision 26.20 6,instructorclassroom teacher does not include supervisory and 26.21 support personnel, except school social workers asdefined in 26.22 section 122A.15.An instructorA classroom teacher whose duties 26.23 are less than full-time instruction must be included as an 26.24 equivalent only for the number of hours of instruction ingrades26.25 kindergarten through6grade 3. 26.26 (b) "Class size" means the district wide ratio at each 26.27 grade level of the number of full-time students in kindergarten 26.28 through grade 3 served at least 40 percent of the time in 26.29 regular classrooms to the number of full-time classroom teachers 26.30 in kindergarten through grade 3, determined as of October 1 of 26.31 each school year. 26.32 Sec. 29. Minnesota Statutes 2000, section 126C.12, 26.33 subdivision 3, is amended to read: 26.34 Subd. 3. [INSTRUCTION CONTACT TIME.] Instruction may be 26.35 provided by aprimary instructor,classroom teacher or by a team 26.36 ofinstructorsclassroom teachers, or by a teacher resident 27.1 supervised by aprimary instructorclassroom teacher. The 27.2 district must maximizeinstructorclassroom teacher to learner 27.3 average instructional contact time in the core subjects of 27.4 reading and mathematics. 27.5 Sec. 30. Minnesota Statutes 2000, section 126C.12, 27.6 subdivision 4, is amended to read: 27.7 Subd. 4. [REVENUE USE.] (a)Revenue must be used according27.8to either paragraph (b) or (c).27.9(b)Revenue must be used to reduce and maintain the 27.10 district'sinstructor to learner ratiosaverage class size in 27.11 kindergarten through grade63 to a level of 1 to 17 on 27.12 average.The district must prioritize the use of the revenue to27.13attain this level initially in kindergarten and grade 1 and then27.14through the subsequent grades as revenue is available.27.15(c) The revenue may be used to prepare and use an27.16individualized learning plan for each learner.(b) A district 27.17 must not increase the district wideinstructor-to-learner ratios27.18 class sizes in other grades as a result of 27.19 reducinginstructor-to-learner ratiosclass sizes in 27.20 kindergarten through grade63. Revenue may not be used to 27.21 provide instructor preparationtime. A district may use a 27.22 portion of the revenue reserved under this section to employ up 27.23 to the same number of full-time equivalent education assistants 27.24 or aides as the district employed during the 1992-1993 school 27.25 year under Minnesota Statutes 1992, section 124.331, subdivision 27.26 2 through fiscal year 2002. Beginning in fiscal year 2003, 27.27 class size reduction revenue may only be reserved to employ 27.28 classroom teachers contributing to lower class sizes in 27.29 kindergarten through grade 3. 27.30 Sec. 31. Minnesota Statutes 2000, section 126C.12, 27.31 subdivision 5, is amended to read: 27.32 Subd. 5. [ADDITIONAL REVENUE USE.] If the board of a 27.33 district determines that the district has achieved and is 27.34 maintaining theinstructor-to-learner ratiosclass sizes 27.35 specified in subdivision 4and is using individualized learning27.36plans, the board may use the revenue to reduce class size in 28.1 grades 4, 5, and 6, provide all-day, everyday kindergarten, 28.2 prepare and use individualized learning plans, improve program 28.3 offerings, purchase instructional materialand, services, or 28.4 technology, or provide staff development needed for reduced 28.5instructor-to-learner ratios. If additional revenue remains,28.6the district must use the revenue to improve program offerings,28.7including programs provided through interactive television,28.8throughout the district or other general education28.9purposesclass sizes. 28.10 Sec. 32. Minnesota Statutes 2000, section 126C.12, is 28.11 amended by adding a subdivision to read: 28.12 Subd. 6. [ANNUAL REPORT.] By December 1 of each year, 28.13 districts receiving revenue under subdivision 1 shall make 28.14 available to the public a report on the amount of revenue the 28.15 district has received and the use of the revenue. This report 28.16 shall be in the form and manner determined by the commissioner 28.17 and shall include the district average class sizes in 28.18 kindergarten through grade 6 as of October 1 of the current 28.19 school year and the class sizes for each site serving 28.20 kindergarten through grade 6 students in the district. A copy 28.21 of the report shall be filed with the commissioner by December 28.22 15. 28.23 Sec. 33. Minnesota Statutes 2000, section 126C.125, is 28.24 amended to read: 28.25 126C.125 [CLASS SIZE, ALL-DAY KINDERGARTEN,ANDSPECIAL 28.26 EDUCATION STUDENT-TO-INSTRUCTOR RATIO, AND GIFTED AND TALENTED 28.27 RESERVE.] 28.28 (a) A district is required to reserve $3 in fiscal year 28.29 2000 and $11 in fiscal year 2001 and later per adjusted marginal 28.30 cost pupil unit for class size reduction, all-day kindergarten, 28.31 or for reducing special education student-to-instructor ratios. 28.32 The school board of each district must pass a resolution stating 28.33 which one of these three programs will be funded with this 28.34 reserve. The reserve amount under this section must be 28.35 allocated to the education site as defined in section 123B.04, 28.36 subdivision 1, according to a plan adopted by the school board. 29.1 (b) A district is required to reserve $5 in fiscal year 29.2 2002 and later per adjusted marginal cost pupil unit for gifted 29.3 and talented programs. 29.4 Sec. 34. [126C.126] [REALLOCATING GENERAL EDUCATION 29.5 REVENUE FOR ALL-DAY KINDERGARTEN.] 29.6 (a) In order to provide additional revenue for an optional 29.7 all-day kindergarten program, a district may reallocate general 29.8 education revenue attributable to 12th grade students who have: 29.9 (1) graduated early under section 120B.07; or 29.10 (2) adopted a policy to allow 12th grade students to attend 29.11 school half time. 29.12 (b) General education revenue attributable to the 12th 29.13 grade student either graduating early or attending school half 29.14 time under paragraph (a) must be paid to the district as though 29.15 the student was in attendance for the entire year. 29.16 (c) A school district that has adopted a policy to allow 29.17 12th grade students to attend school half time must notify the 29.18 commissioner by July 15 for the following school year. 29.19 [EFFECTIVE DATE.] This section is effective for fiscal year 29.20 2003 and later. 29.21 Sec. 35. Minnesota Statutes 2000, section 126C.13, 29.22 subdivision 1, is amended to read: 29.23 Subdivision 1. [GENERAL EDUCATION TAX RATE.] The 29.24 commissioner must establish the general education tax rate by 29.25 July 1 of each year for levies payable in the following year. 29.26 The general education tax capacity rate must be a rate, rounded 29.27 up to the nearest hundredth of a percent, that, when applied to 29.28 the adjusted net tax capacity for all districts, raises the 29.29 amount specified in this subdivision. The general education tax 29.30 rate must be the rate that raises $1,330,000,000 for fiscal year 29.31 2001 and fiscal year 2002, and $1,533,000,000 for fiscal year 29.32 2003, and later fiscal years. The general education tax rate 29.33 may not be changed due to changes or corrections made to a 29.34 district's adjusted net tax capacity after the tax rate has been 29.35 established. 29.36 Sec. 36. Minnesota Statutes 2000, section 126C.15, 30.1 subdivision 2, is amended to read: 30.2 Subd. 2. [BUILDING ALLOCATION.] (a) A district must 30.3 allocate its compensatory revenue to each school building in the 30.4 district where the children who have generated the revenue are 30.5 served. 30.6 (b) Notwithstanding paragraph (a), for fiscal years 1999, 30.7 2000,and2001, 2002, and 2003, upon approval by the 30.8 commissioner, a district may allocate up to five percent of the 30.9 amount of compensatory revenue that the district would have 30.10 received under Minnesota Statutes 1996, section 124A.22, 30.11 subdivision 3, for fiscal year 1998, computed using a basic 30.12 formula allowance of $3,581 to school sites according to a plan 30.13 adopted by the school board. 30.14 (c) For the purposes of this section and section 126C.05, 30.15 subdivision 3, "building" means education site as defined in 30.16 section 123B.04, subdivision 1. 30.17 (d) If the pupil is served at a site other than one owned 30.18 and operated by the district, the revenue shall be paid to the 30.19 district and used for services for pupils who generate the 30.20 revenue. 30.21 Sec. 37. Minnesota Statutes 2000, section 126C.16, is 30.22 amended by adding a subdivision to read: 30.23 Subd. 4. [PUPIL WEIGHTING ADJUSTMENT.] (a) The department 30.24 must adjust each district's referendum allowance for referendum 30.25 authority approved before July 1, 2001, for fiscal year 2003 and 30.26 all later years for which the revenue is authorized according to 30.27 this subdivision. The adjusted referendum allowance equals the 30.28 referendum allowance according to subdivision 3 and section 30.29 126C.17, times the ratio of the number of resident marginal cost 30.30 pupil units the district would have counted for fiscal year 2003 30.31 under Minnesota Statutes 2000, section 126C.05, subdivision 6, 30.32 to the district's resident marginal cost pupil units for fiscal 30.33 year 2003. 30.34 (b) For fiscal year 2003 and later, the department must 30.35 adjust the fiscal year 1994 referendum allowance used in 30.36 computing the referendum allowance limit under section 126C.17, 31.1 subdivision 2, according to this subdivision. The adjusted 31.2 fiscal year 1994 referendum allowance for a district equals the 31.3 district's fiscal year 1994 referendum allowance times the ratio 31.4 of the number of resident marginal cost pupil units the district 31.5 would have counted for fiscal year 2003 under Minnesota Statutes 31.6 2000, section 126C.05, subdivision 6, to the district's resident 31.7 marginal cost pupil units for fiscal year 2003. 31.8 Sec. 38. Minnesota Statutes 2000, section 126C.17, 31.9 subdivision 1, is amended to read: 31.10 Subdivision 1. [REFERENDUM ALLOWANCE.] (a) For fiscal year 31.11 2002, a district's referendum revenue allowance equals 31.12 thereferendum revenue authority for that year divided by its31.13resident marginal cost pupil units for that school year.sum of 31.14 the allowance under section 126C.16, subdivision 2, plus any 31.15 additional allowance per resident marginal cost pupil unit 31.16 authorized under subdivision 9 for fiscal year 2002. 31.17 (b) For fiscal year 2003 and later, a district's initial 31.18 referendum revenue allowance equals the sum of the allowance 31.19 under section 126C.16, subdivision 2, plus any additional 31.20 allowance per resident marginal cost pupil unit authorized under 31.21 subdivision 9 before May 1, 2001, for fiscal year 2002 and 31.22 later, plus the referendum conversion allowance approved under 31.23 subdivision 13, minus $461. For districts with more than one 31.24 referendum authority, the reduction must be computed separately 31.25 for each authority. The reduction must be applied first to the 31.26 referendum conversion allowance and next to the authority with 31.27 the earliest expiration date. A district's initial referendum 31.28 revenue allowance may not be less than zero. 31.29 (c) For fiscal year 2003 and later, a district's referendum 31.30 revenue allowance equals the initial referendum allowance plus 31.31 any additional allowance per resident marginal cost pupil unit 31.32 authorized under subdivision 9 after April 30, 2001, for fiscal 31.33 year 2003 and later. 31.34 Sec. 39. Minnesota Statutes 2000, section 126C.17, 31.35 subdivision 2, is amended to read: 31.36 Subd. 2. [REFERENDUM ALLOWANCE LIMIT.] (a) Notwithstanding 32.1 subdivision 1, for fiscal year 2002, a district's referendum 32.2 allowance must not exceed the greater of: 32.3 (1) the district's referendum allowance for fiscal year 32.4 1994; 32.5 (2) 25 percent of the formula allowance; or 32.6 (3) for a newly reorganized district created after July 1, 32.7 1994, the sum of the referendum revenue authority for the 32.8 reorganizing districts for the fiscal year preceding the 32.9 reorganization, divided by the sum of the resident marginal cost 32.10 pupil units of the reorganizing districts for the fiscal year 32.11 preceding the reorganization. 32.12 (b) Notwithstanding subdivision 1, for fiscal year 2003 and 32.13 later fiscal years, a district's referendum allowance must not 32.14 exceed the greater of: 32.15 (1) the sum of a district's referendum allowance for fiscal 32.16 year 1994 plus its referendum conversion allowance for fiscal 32.17 year 2003, minus $461; 32.18 (2) 13.2 percent of the formula allowance; 32.19 (3) for a newly reorganized district created on July 1, 32.20 2002, the referendum revenue authority for each reorganizing 32.21 district in the year preceding reorganization divided by its 32.22 resident marginal cost pupil units for the year preceding 32.23 reorganization, minus $461; or 32.24 (4) for a newly reorganized district created after July 1, 32.25 2002, the referendum revenue authority for each reorganizing 32.26 district in the year preceding reorganization divided by its 32.27 resident marginal cost pupil units for the year preceding 32.28 reorganization. 32.29 Sec. 40. Minnesota Statutes 2000, section 126C.17, 32.30 subdivision 5, is amended to read: 32.31 Subd. 5. [REFERENDUM EQUALIZATION REVENUE.] (a) A 32.32 district's referendum equalization revenue equals the referendum 32.33 equalization allowance times the district's resident marginal 32.34 cost pupil units for that year. 32.35 (b) The referendum equalization allowance equals $350 for 32.36 fiscal year 2000and, $415 for fiscalyearyears 2001 and 33.1 2002, and $150 for fiscal year 2003 and later. 33.2 (c) Referendum equalization revenue must not exceed a 33.3 district's total referendum revenue for that year. 33.4 Sec. 41. Minnesota Statutes 2000, section 126C.17, 33.5 subdivision 6, is amended to read: 33.6 Subd. 6. [REFERENDUM EQUALIZATION LEVY.] (a) A district's 33.7 referendum equalization levy for a referendum levied against the 33.8 referendum market value of all taxable property as defined in 33.9 section 126C.01, subdivision 3, equals the district's referendum 33.10 equalization revenue times the lesser of one or the ratio of the 33.11 district's referendum market value per resident marginal cost 33.12 pupil unit to$476,000$528,000. 33.13 (b) A district's referendum equalization levy for a 33.14 referendum levied against the net tax capacity of all taxable 33.15 property equals the district's referendum equalization revenue 33.16 times the lesser of one or the ratio of the district's adjusted 33.17 net tax capacity per resident marginal cost pupil unit to $8,404. 33.18 Sec. 42. Minnesota Statutes 2000, section 126C.17, is 33.19 amended by adding a subdivision to read: 33.20 Subd. 13. [REFERENDUM CONVERSION ALLOWANCE.] A school 33.21 district that received supplemental or transition revenue in 33.22 fiscal year 2002 may convert its supplemental revenue conversion 33.23 allowance and transition revenue conversion allowance to 33.24 additional referendum allowance under subdivision 1 for fiscal 33.25 year 2003 and thereafter. A majority of the school board must 33.26 approve the conversion at a public meeting before November 1, 33.27 2001. For a district with other referendum authority, the 33.28 referendum conversion allowance approved by the board continues 33.29 until the portion of the district's other referendum authority 33.30 with the earliest expiration date after June 30, 2006, expires. 33.31 For a district with no other referendum authority, the 33.32 referendum conversion allowance approved by the board continues 33.33 until June 30, 2012. 33.34 Sec. 43. Minnesota Statutes 2000, section 126C.18, is 33.35 amended by adding a subdivision to read: 33.36 Subd. 5. [BOARD AUTHORITY.] For a district that does not 34.1 receive referendum revenue under section 126C.17, subdivision 4, 34.2 a board may, by July 1, by a resolution of a majority of its 34.3 board, authorize a referendum allowance according to section 34.4 126C.17, subdivision 1, for fiscal year 2003 and thereafter, of 34.5 at least $50, but no more than $75. The board-approved 34.6 referendum allowance under this subdivision shall be levied and 34.7 paid according to section 126C.17. The board must notify the 34.8 commissioner of any amount authorized by the board. The maximum 34.9 length of the referendum in this subdivision is limited to six 34.10 years. 34.11 [EFFECTIVE DATE.] This section is effective for revenue for 34.12 fiscal year 2003. 34.13 Sec. 44. Minnesota Statutes 2000, section 126C.41, 34.14 subdivision 2, is amended to read: 34.15 Subd. 2. [RETIRED EMPLOYEE HEALTH BENEFITS.] A district 34.16 may levy an amount up to the amount the district is required by 34.17 the collective bargaining agreement in effect on March 30, 1992, 34.18 to pay for health insurance or unreimbursed medical expenses for 34.19 licensed and nonlicensed employees who have terminated services 34.20 in the employing district and withdrawn from active teaching 34.21 service or other active service, as applicable, before July 1, 34.22 1992. The total amount of the levy each year may not 34.23 exceed$300,000$600,000. 34.24 Sec. 45. Minnesota Statutes 2000, section 127A.51, is 34.25 amended to read: 34.26 127A.51 [STATEWIDE AVERAGE REVENUE.] 34.27 By October 1 of each year the commissioner must estimate 34.28 the statewide average adjusted general revenue per adjusted 34.29 marginal cost pupil unit and the disparity in adjusted general 34.30 revenue among pupils and districts by computing the ratio of the 34.31 ninety-fifth percentile to the fifth percentile of adjusted 34.32 general revenue. The commissioner must provide that information 34.33 to all districts. 34.34 If the disparity in adjusted general revenue as measured by 34.35 the ratio of the ninety-fifth percentile to the fifth percentile 34.36 increases in any year, the commissioner shall recommend to the 35.1 legislature options for change in the general education formula 35.2 that will limit the disparity in adjusted general revenue to no 35.3 more than the disparity for the previous school year. The 35.4 commissioner must submit the recommended options to the 35.5 education committees of the legislature by January 15. 35.6 For purposes of this section and section 126C.10, adjusted 35.7 general revenue means: 35.8 (1) for fiscal year 2002, the sum of basic revenue under 35.9 section 126C.10, subdivision 2; supplemental revenue under 35.10 section 126C.10, subdivisions 9 and 12; transition revenue under 35.11 section 126C.10, subdivision 20;andreferendum revenue under 35.12 section 126C.17; and equity revenue under section 126C.10, 35.13 subdivisions 24a and 24b; and 35.14 (2) for fiscal year 2003 and later, the sum of basic 35.15 revenue under section 126C.10, subdivision 2; referendum revenue 35.16 under section 126C.17; and equity revenue under section 126C.10, 35.17 subdivisions 24a and 24b. 35.18 Sec. 46. Minnesota Statutes 2000, section 298.28, 35.19 subdivision 4, is amended to read: 35.20 Subd. 4. [SCHOOL DISTRICTS.] (a) 22.28 cents per taxable 35.21 ton plus the increase provided in paragraph (d) must be 35.22 allocated to qualifying school districts to be distributed, 35.23 based upon the certification of the commissioner of revenue, 35.24 under paragraphs (b) and (c). 35.25 (b) 4.46 cents per taxable ton must be distributed to the 35.26 school districts in which the lands from which taconite was 35.27 mined or quarried were located or within which the concentrate 35.28 was produced. The distribution must be based on the 35.29 apportionment formula prescribed in subdivision 2. 35.30 (c)(i) 17.82 cents per taxable ton, less any amount 35.31 distributed under paragraph (e), shall be distributed to a group 35.32 of school districts comprised of those school districts in which 35.33 the taconite was mined or quarried or the concentrate produced 35.34 or in which there is a qualifying municipality as defined by 35.35 section 273.134 in direct proportion to school district indexes 35.36 as follows: for each school district, its pupil units 36.1 determined under section 126C.05 for the prior school year shall 36.2 be multiplied by the ratio of the average adjusted net tax 36.3 capacity per pupil unit for school districts receiving aid under 36.4 this clause as calculated pursuant to chapters 122A, 126C, and 36.5 127A for the school year ending prior to distribution to the 36.6 adjusted net tax capacity per pupil unit of the district. Each 36.7 district shall receive that portion of the distribution which 36.8 its index bears to the sum of the indices for all school 36.9 districts that receive the distributions. 36.10 (ii) Notwithstanding clause (i), each school district that 36.11 receives a distribution under sections 298.018; 298.23 to 36.12 298.28, exclusive of any amount received under this clause; 36.13 298.34 to 298.39; 298.391 to 298.396; 298.405; or any law 36.14 imposing a tax on severed mineral values that is less than the 36.15 amount of its levy reduction under section 126C.48, subdivision 36.16 8, for the second year prior to the year of the distribution 36.17 shall receive a distribution equal to the difference; the amount 36.18 necessary to make this payment shall be derived from 36.19 proportionate reductions in the initial distribution to other 36.20 school districts under clause (i). 36.21 (d) Any school district described in paragraph (c) where a 36.22 levy increase pursuant to section 126C.17, subdivision 9, is 36.23 authorized by referendum, shall receive a distribution from a 36.24 fund that receives a distribution in 1998 of 21.3 cents per 36.25 ton. On July 15 of 1999, and each year thereafter, the increase 36.26 over the amount established for the prior year shall be 36.27 determined according to the increase in the implicit price 36.28 deflator as provided in section 298.24, subdivision 1. Each 36.29 district shall receive the product of: 36.30 (i) $175 times the pupil units identified in section 36.31 126C.05, subdivision 1, enrolled in the second previous year or 36.32 the 1983-1984 school year, whichever is greater, less the 36.33 product of 1.8 percent times the district's taxable net tax 36.34 capacity in the second previous year; times 36.35 (ii) the lesser of: 36.36 (A) one, or 37.1 (B) the ratio of the sum of the amount certified pursuant 37.2 to section 126C.17, subdivision 6, in the previous year, plus 37.3 the amount certified pursuant to section 126C.17, subdivision 8, 37.4 in the previous year, plus the referendum aid according to 37.5 section 126C.17, subdivision 7, for the current year, plus an 37.6 amount equal to the reduction under section 126C.17, subdivision 37.7 12, to the product of 1.8 percent times the district's taxable 37.8 net tax capacity in the second previous year. 37.9 If the total amount provided by paragraph (d) is 37.10 insufficient to make the payments herein required then the 37.11 entitlement of $175 per pupil unit shall be reduced uniformly so 37.12 as not to exceed the funds available. Any amounts received by a 37.13 qualifying school district in any fiscal year pursuant to 37.14 paragraph (d) shall not be applied to reduce general education 37.15 aid which the district receives pursuant to section 126C.13 or 37.16 the permissible levies of the district. Any amount remaining 37.17 after the payments provided in this paragraph shall be paid to 37.18 the commissioner of iron range resources and rehabilitation who 37.19 shall deposit the same in the taconite environmental protection 37.20 fund and the northeast Minnesota economic protection trust fund 37.21 as provided in subdivision 11. 37.22 Each district receiving money according to this paragraph 37.23 shall reserve $25 times the number of pupil units in the 37.24 district. It may use the money for early childhood programs or 37.25 for outcome-based learning programs that enhance the academic 37.26 quality of the district's curriculum. The outcome-based 37.27 learning programs must be approved by the commissioner of 37.28 children, families, and learning. 37.29 If a school district had a referendum allowance in fiscal 37.30 year 2002 and received revenue under this section, then the 37.31 district shall be held harmless. 37.32 (e) There shall be distributed to any school district the 37.33 amount which the school district was entitled to receive under 37.34 section 298.32 in 1975. 37.35 Sec. 47. Laws 2000, chapter 489, article 2, section 34, is 37.36 amended to read: 38.1 Sec. 34. [TRAINING AND EXPERIENCE REPLACEMENT REVENUE.] 38.2 (a) For fiscal year 2001 only, a school district's training 38.3 and experience replacement revenue equals the sum of the 38.4 following: 38.5 (1) the ratio of the amount of training and experience 38.6 revenue the district would have received for fiscal year 1999 38.7 calculated using the training and experience index in Minnesota 38.8 Statutes 1996, section 124A.04, to its resident pupil units for 38.9 that year, times the district's adjusted marginal cost pupil 38.10 units for fiscal year 2001, times .06; plus 38.11 (2) the difference between .47 times the training and 38.12 experience revenue the district would have received for fiscal 38.13 year 1999, calculated using the training and experience index in 38.14 Minnesota Statutes 1996, section 124A.04, and the amount 38.15 calculated in Minnesota Statutes, section 126C.10, subdivision 38.16 5, for fiscal year 2001, but not less than zero. 38.17 (b) This revenue is paid entirely in fiscal year 2001 based 38.18 on estimated data. 38.19 (c) By January 31, 2002, the department of children, 38.20 families, and learning shall recalculate the revenue for each 38.21 district using actual data, and shall adjust the general 38.22 education aid paid to school districts for fiscal year 2002 by 38.23 the amount of the difference between the estimated revenue and 38.24 the actual revenue. 38.25 Sec. 48. Laws 2000, chapter 489, article 2, section 37, is 38.26 amended to read: 38.27 Sec. 37. [SPARSITY CORRECTION REVENUE.] 38.28 Subdivision 1. [QUALIFICATION FOR REVENUE.] A school 38.29 district qualifies for sparsity correction revenue if it 38.30 qualifies for sparsity revenue, according to Minnesota Statutes, 38.31 section 126C.10, subdivisions 7 and 8, in fiscal year 2000 or 38.32 2001 and the amount of sparsity revenue it received in those 38.33 years is less than the amount it would have received in fiscal 38.34 year 2000 or 2001 prior to the passage of Laws 1999, chapter 38.35 241, article 1, sections 18 and 19. 38.36 Subd. 2. [FISCAL YEAR 2000 CALCULATION.] For fiscal year 39.1 2000, a school district's sparsity correction revenue equals the 39.2 difference between sparsity revenue in fiscal year 2000 39.3 calculated according to Laws 1999, chapter 241, article 1, 39.4 sections 18 and 19, and the sparsity revenue the district would 39.5 have received for fiscal year 2000 had these sections of law not 39.6 been approved. 39.7 Subd. 3. [FISCAL YEAR 2001 CALCULATION.] (a) For fiscal 39.8 year 2001, a school district's sparsity correction revenue 39.9 equals .5 times the difference between sparsity revenue in 39.10 fiscal year 2001 calculated according to Laws 1999, chapter 241, 39.11 article 1, sections 18 and 19, and the sparsity revenue the 39.12 district would have received for fiscal year 2001 had these 39.13 sections of law not been approved. 39.14 (b) This revenue is paid entirely in fiscal year 2001 based 39.15 on estimated data. 39.16 (c) By January 31, 2002, the department of children, 39.17 families, and learning shall recalculate the revenue for each 39.18 district using actual data, and shall adjust the general 39.19 education aid paid to school districts for fiscal year 2002 by 39.20 the amount of the difference between the estimated revenue and 39.21 the actual revenue. 39.22 Sec. 49. [SUPPLEMENTAL REVENUE CONVERSION ALLOWANCE.] 39.23 A district's supplemental revenue conversion allowance is 39.24 equal to the district's total fiscal year 2002 supplemental 39.25 revenue divided by its fiscal year 2002 resident marginal cost 39.26 pupil units. 39.27 Sec. 50. [TRANSITION REVENUE CONVERSION ALLOWANCE.] 39.28 A district's transition revenue conversion allowance is 39.29 equal to the district's total fiscal year 2002 transition 39.30 revenue divided by its fiscal year 2002 resident marginal cost 39.31 pupil units. 39.32 [EFFECTIVE DATE.] This section is effective for revenue for 39.33 fiscal year 2003. 39.34 Sec. 51. [EDUCATION FORMULA ADJUSTMENTS.] 39.35 For fiscal year 2003 and thereafter, the commissioner of 39.36 children, families, and learning shall, in consultation with the 40.1 commissioner of finance, make the adjustments required by this 40.2 section to neutralize the effect of the changes in pupil unit 40.3 weights under Minnesota Statutes, section 126C.05, subdivision 40.4 1, included in this article. Each revenue allowance and 40.5 equalizing factor established under Minnesota Statutes, chapters 40.6 123B, 124D, and 126C, excluding Minnesota Statutes, section 40.7 126C.17, as an amount per pupil unit, shall be increased by 11 40.8 percent. 40.9 Sec. 52. [AID REPAYMENT; LITTLE FALLS.] 40.10 Notwithstanding any law to the contrary, the department of 40.11 children, families, and learning must allow independent school 40.12 district No. 482, Little Falls, to repay over a five-year period 40.13 state aid overpayments for fiscal years 1998 and 1999 resulting 40.14 from the district's miscalculation of pupil units for those 40.15 years. If this aid has already been recaptured, the department 40.16 shall make a positive aid adjustment of $500,000 in the July 15, 40.17 2001, aid payment to the district. The school district must 40.18 repay the aid in equal payments of $100,000 each payable on June 40.19 20. Payments must begin on June 20, 2002. 40.20 Sec. 53. [PUPIL BASE TRANSITION REVENUE.] 40.21 For fiscal year 2003 only, a school district that has 15 40.22 percent fewer adjusted marginal cost pupil units than resident 40.23 marginal cost pupil units is eligible for pupil base transition 40.24 revenue. Pupil base adjustment revenue is equal to $200 times 40.25 the difference between an eligible school district's resident 40.26 marginal cost pupil units and its adjusted marginal cost pupil 40.27 units. 40.28 [EFFECTIVE DATE.] This section is effective for revenue for 40.29 fiscal year 2003 and later. 40.30 Sec. 54. [REFERENDUM TRANSFER ADJUSTMENT.] 40.31 Notwithstanding Minnesota Statutes, section 126C.17, 40.32 subdivision 1, paragraph (b), for fiscal year 2003 and later, 40.33 independent school district No. 709, Duluth's initial referendum 40.34 revenue allowance equals the sum of the allowance under section 40.35 126C.17, subdivision 2, plus any additional allowance per 40.36 resident marginal cost pupil unit authorized under section 41.1 126C.17, subdivision 9, before May 1, 2001, for fiscal year 2002 41.2 and later, plus the revenue conversion allowance approved under 41.3 section 126C.17, subdivision 13, minus $461. If the district 41.4 has more than one referendum authority, the reduction must be 41.5 computed separately for each authority. The reduction must be 41.6 applied first to the referendum authority with the earliest 41.7 date. The reduction must not be applied to the district's 41.8 referendum conversion allowance. The district's initial 41.9 referendum allowance may not be less than zero. 41.10 [EFFECTIVE DATE.] This section is effective for revenue for 41.11 fiscal year 2003 and later. 41.12 Sec. 55. [APPROPRIATIONS.] 41.13 Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND 41.14 LEARNING.] The sums indicated in this section are appropriated 41.15 from the general fund to the department of children, families, 41.16 and learning for the fiscal years designated. 41.17 Subd. 2. [GENERAL AND SUPPLEMENTAL EDUCATION AID.] For 41.18 general and supplemental education aid: 41.19 $3,374,364,000 ..... 2002 41.20 $3,539,876,000 ..... 2003 41.21 The 2002 appropriation includes $318,932,000 for 2001 and 41.22 $3,055,432,000 for 2002. 41.23 The 2003 appropriation includes $339,492,000 for 2002 and 41.24 $3,200,384,000 for 2003. 41.25 Subd. 3. [TRANSPORTATION AID FOR ENROLLMENT OPTIONS.] For 41.26 transportation of pupils attending post-secondary institutions 41.27 according to Minnesota Statutes, section 124D.09, or for 41.28 transportation of pupils attending nonresident districts 41.29 according to Minnesota Statutes, section 124D.03: 41.30 $70,000 ..... 2002 41.31 $80,000 ..... 2003 41.32 Any balance in the first year does not cancel but is 41.33 available in the second year. 41.34 Subd. 4. [RICHFIELD AIRPORT IMPACT AID.] For Richfield 41.35 airport impact aid according to Laws 2000, chapter 489, article 41.36 2, section 36: 42.1 $1,117,000 ..... 2003 42.2 Subd. 5. [ABATEMENT AID.] For abatement aid according to 42.3 Minnesota Statutes, section 127A.49: 42.4 $7,098,000 ..... 2002 42.5 $7,692,000 ..... 2003 42.6 The 2002 appropriation includes $640,000 for 2001 and 42.7 $6,458,000 for 2002. 42.8 The 2003 appropriation includes $717,000 for 2002 and 42.9 $6,975,000 for 2003. 42.10 Subd. 6. [NONPUBLIC PUPIL AID.] For nonpublic pupil 42.11 education aid according to Minnesota Statutes, sections 123.79 42.12 and 123B.40 to 123B.43: 42.13 $14,132,000 ..... 2002 42.14 $15,175,000 ..... 2003 42.15 The 2002 appropriation includes $1,330,000 for 2001 and 42.16 $12,802,000 for 2002. 42.17 The 2003 appropriation includes $1,422,000 for 2002 and 42.18 $13,753,000 for 2003. 42.19 Subd. 7. [NONPUBLIC PUPIL TRANSPORTATION.] For nonpublic 42.20 pupil transportation aid under Minnesota Statutes, section 42.21 123B.92, subdivision 9: 42.22 $20,535,000 ..... 2002 42.23 $22,851,000 ..... 2003 42.24 The 2002 appropriation includes $2,000,000 for 2001 and 42.25 $18,535,000 for 2002. 42.26 The 2003 appropriation includes $2,059,000 for 2002 and 42.27 $20,792,000 for 2003. 42.28 Subd. 8. [CONSOLIDATION TRANSITION AID.] For districts 42.29 consolidating under Minnesota Statutes, section 123A.485: 42.30 $675,000 ..... 2002 42.31 $669,000 ..... 2003 42.32 The 2002 appropriation includes $44,000 for 2001 and 42.33 $631,000 for 2002. 42.34 The 2003 appropriation includes $70,000 for 2002 and 42.35 $599,000 for 2003. 42.36 Any balance in the first year does not cancel but is 43.1 available in the second year. 43.2 Subd. 9. [PUPIL BASE TRANSITION REVENUE.] For pupil base 43.3 transition revenue according to section 53: 43.4 $220,000 ..... 2003 43.5 Subd. 10. [ONE-ROOM SCHOOLHOUSE.] For a grant to 43.6 independent school district No. 690, Warroad, to operate the 43.7 Angle Inlet School: 43.8 $35,000 ..... 2002 43.9 $35,000 ..... 2003 43.10 Sec. 56. [REPEALER.] 43.11 (a) Minnesota Statutes 2000, sections 126C.10, subdivisions 43.12 9, 10, 11, 12, 19, 20, 21, and 22; and 126C.11, are repealed 43.13 effective for revenue for fiscal year 2003. 43.14 (b) Minnesota Statutes 2000, section 126C.10, subdivision 43.15 23, is repealed effective for revenue for fiscal year 2002. 43.16 ARTICLE 2 43.17 EDUCATION EXCELLENCE 43.18 Section 1. Minnesota Statutes 2000, section 120B.30, 43.19 subdivision 1, is amended to read: 43.20 Subdivision 1. [STATEWIDE TESTING.] (a) The commissioner, 43.21 with advice from experts with appropriate technical 43.22 qualifications and experience and stakeholders, shall include in 43.23 the comprehensive assessment system, for each grade level to be 43.24 tested, a test, which shall be aligned with the state's 43.25 graduation standards and administered annually to all students 43.26 in the third, fifth, seventh, and eighth grades. The 43.27 commissioner shall establish one or more months during which 43.28 schools shall administer the tests to students each school 43.29 year. Only Minnesota basic skills tests in reading, 43.30 mathematics, and writing shall fulfill students' basic skills 43.31 testing requirements for a passing state notation. The passing 43.32 scores of the state tests in reading and mathematics are the 43.33 equivalent of: 43.34 (1) 70 percent correct for students entering grade 9 in 43.35 1996; and 43.36 (2) 75 percent correct for students entering grade 9 in 44.1 1997 and thereafter, as based on the first uniform test 44.2 administration of February 1998. 44.3 Notwithstanding Minnesota Rules, part 3501.0050, subpart 2, 44.4 at the written request of a parent or guardian, and with the 44.5 recommendation of the student's teacher, a district may offer 44.6 the test of basic requirements in reading, math, or writing to 44.7 an individual student beginning in grade 5. The student must 44.8 take the same test on the same date as administered to students 44.9 in eighth grade or higher. Thirdand, fifth, and seventh grade 44.10 test results shall be available to districts for diagnostic 44.11 purposes affecting student learning and district instruction and 44.12 curriculum, and for establishing educational accountability. 44.13 The commissioner must disseminate to the public the thirdand, 44.14 fifth, and seventh grade test results upon receiving those 44.15 results. 44.16 (b) In addition, at thesecondaryhigh school level, 44.17 districts shall assess student performance inall required44.18learning areas and selected required standards within each area44.19of the profile of learningmathematics, reading, and writing. 44.20 The testing instruments and testing process shall be determined 44.21 by the commissioner. The results shall be aggregated at the 44.22 site and district level. The testing shall be administered 44.23 beginning in the 1999-2000 school year and thereafter. 44.24 (c) The commissioner shall report school site and school 44.25 district student academic achievement levels of the current and 44.26 two immediately preceding school years. The report shall 44.27 include students' unweighted mean test scores in each tested 44.28 subject, the unweighted mean test scores of only those students 44.29 enrolled in the school byJanuaryOctober 1 of theprevious44.30 current school year, and the unweighted test scores of all 44.31 students except those students receiving limited English 44.32 proficiency instruction. The report also shall record 44.33 separately, in proximity to the reported performance levels, the 44.34 percentage of students of each gender and the percentages of 44.35 students who are eligible to receive a free or reduced price 44.36 school meal, demonstrate limited English proficiency, are 45.1 identified as migrant students, are a member of a major ethnic 45.2 or racial population, or are eligible to receive special 45.3 education services. 45.4 (d) In addition to the testing and reporting requirements 45.5 under paragraphs (a), (b), and (c), the commissioner shall 45.6 include the following components in the statewide public 45.7 reporting system: 45.8 (1) uniform statewide testing of all third, fifth, seventh, 45.9 eighth, and post-eighth grade students that provides exemptions, 45.10 only with parent or guardian approval, for those very few 45.11 students for whom the student's individual education plan team 45.12 under sections 125A.05 and 125A.06, determines that the student 45.13 is incapable of taking a statewide test, or for a limited 45.14 English proficiency student under section 124D.59, subdivision 45.15 2, if the student has been in the United States for fewer than 45.16 12 months and for whom special language barriers exist, such as 45.17 the student's native language does not have a written form or 45.18 the district does not have access to appropriate interpreter 45.19 services for the student's native language; 45.20 (2) educational indicators that can be aggregated and 45.21 compared across school districts and across time on a statewide 45.22 basis, including average daily attendance, high school 45.23 graduation rates, and high school drop-out rates by age and 45.24 grade level; 45.25 (3) students' scores on the American College Test; and 45.26 (4) participation in the National Assessment of Educational 45.27 Progress so that the state can benchmark its performance against 45.28 the nation and other states, and, where possible, against other 45.29 countries, and contribute to the national effort to monitor 45.30 achievement. 45.31 (e) Districts must report exemptions under paragraph (d), 45.32 clause (1), to the commissioner consistent with a format 45.33 provided by the commissioner. 45.34 Sec. 2. Minnesota Statutes 2000, section 120B.35, is 45.35 amended to read: 45.36 120B.35 [STUDENT ACADEMIC ACHIEVEMENT LEVELS.] 46.1 (a) Each school year, a school district must determine if 46.2 the student achievement levels at each school site meet state 46.3 and local expectations. If student achievement levels at a 46.4 school site do not meet state and local expectations and the 46.5 site has not made adequate yearly progress for twoout of three46.6 consecutive school years, beginning with the2000-20012001-2002 46.7 school year, the district must work with the school site to 46.8 adopt a plan to raise student achievement levels to meet state 46.9 and local expectations.The legislature will determine state46.10expectations after receiving a recommendation fromThe 46.11 commissioner of children, families, and learning shall establish 46.12 the student academic achievement levels as described under 46.13 paragraph (b). 46.14 (b) The commissioner shall establish a statewide continuous 46.15 improvement system that includes all of the following components: 46.16 (1) consistent student academic achievement levels for 46.17 every school site and district in the state using scores from 46.18 the Minnesota comprehensive assessments beginning in school year 46.19 2001-2002; 46.20 (2) a minimum average scale score for each Minnesota 46.21 comprehensive assessment that will be established as the state's 46.22 target score for every grade and subject tested. The 46.23 commissioner will determine these scores after receiving advice 46.24 from experts with appropriate technical qualifications and 46.25 experience and affected stakeholders; 46.26 (3) student achievement levels representing challenging 46.27 standards of performance for all children. The average scale 46.28 score established as the state's target score must, at a 46.29 minimum, represent a student performance level indicating 46.30 beginning proficiency in the subject tested; 46.31 (4) a five-year cycle for school sites and districts to 46.32 meet the state's expectations for student achievement levels. 46.33 School sites and districts with an average scale score below the 46.34 target score in any subject must make adequate yearly progress 46.35 toward the state's expected score as defined by the 46.36 commissioner; 47.1 (5) reporting of school sites and districts not making 47.2 adequate yearly progress for two consecutive years. These 47.3 schools shall be identified as "in need of improvement." 47.4 Schools below the state target but making adequate yearly 47.5 progress shall be classified as "making progress." Schools with 47.6 average scale scores above the state target shall be classified 47.7 as "exceeding state expectations." In addition, the department 47.8 shall provide for public access to school performance indicators 47.9 as provided for in paragraph (e); 47.10 (6) continuous improvement plans developed as provided for 47.11 in paragraph (a) and described in paragraph (c). The 47.12 department, at a district's request, must assist the district 47.13 and the school site in developing a plan to improve student 47.14 achievement. The plan must include parental involvement 47.15 components; and 47.16 (7) a system of technical assistance for schools and 47.17 districts not meeting state expectations as provided for in 47.18 paragraph (d). 47.19 (c) School sites identified as "in need of improvement" 47.20 shall develop continuous improvement plans in order to meet 47.21 state and local expectations for student academic achievement. 47.22 Continuous improvement plans must contain all of the following: 47.23 (1) a self-study on eight components of quality education 47.24 including curriculum, instruction, assessment, professional 47.25 development, family and community involvement, leadership, 47.26 governance, and the alignment of resources; 47.27 (2) identification of site-specific goals tied to an 47.28 analysis of need which must be supported by student achievement 47.29 data; and 47.30 (3) an analysis of other site-level data including student 47.31 attendance, dropout rates, and student demographic information 47.32 including gender, major ethnic and racial populations, the 47.33 number of students receiving free and reduced price lunch, the 47.34 number of students identified as limited English proficient, 47.35 migrant status, and the number of students receiving special 47.36 education services. 48.1 (d) The commissioner shall create a continuous improvement 48.2 support system to provide technical assistance to school sites 48.3 and districts identified as needing improvement. The department 48.4 shall establish a team of external reviewers and experts to 48.5 assist schools in the development of continuous improvement 48.6 plans as described in paragraph (c). The department must work 48.7 with the schools in greatest need, such as those schools 48.8 identified as needing improvement in multiple subjects, those 48.9 identified for multiple years, or those furthest away from the 48.10 state's expectations as provided for in paragraph (b). If 48.11 resources remain, the department shall provide assistance to 48.12 sites and districts upon request. 48.13 (e) The commissioner shall establish and maintain a 48.14 continuous improvement Web site designed to make data on every 48.15 school and district available to parents, teachers, 48.16 administrators, community members, and the general public. 48.17 Sec. 3. Minnesota Statutes 2000, section 122A.09, 48.18 subdivision 4, is amended to read: 48.19 Subd. 4. [LICENSE AND RULES.] (a) The board must adopt 48.20 rules to license public school teachers and interns subject to 48.21 chapter 14. 48.22 (b) The board must adopt rules requiring a person to 48.23 successfully complete a skills examination in reading, writing, 48.24 and mathematics as a requirement for initial teacher licensure. 48.25 Such rules must require college and universities offering a 48.26 board approved teacher preparation program to provide remedial 48.27 assistance to persons who did not achieve a qualifying score on 48.28 the skills examination, including those for whom English is a 48.29 second language. 48.30 (c) The board must adopt rules to approve teacher 48.31 preparation programs. The board, upon the request of a 48.32 post-secondary student preparing for teacher licensure or a 48.33 licensed graduate of a teacher preparation program, shall assist 48.34 in resolving a dispute between the person and a post-secondary 48.35 institution providing a teacher preparation program when the 48.36 dispute involves an institution's recommendation for licensure 49.1 affecting the person or the person's credentials. At the 49.2 board's discretion, assistance may include the application of 49.3 chapter 14. 49.4 (d) The board must provide the leadership and shall adopt 49.5 rules for the redesign of teacher education programs to 49.6 implement a research based, results-oriented curriculum that 49.7 focuses on the skills teachers need in order to be effective. 49.8 The board shall implement new systems of teacher preparation 49.9 program evaluation to assure program effectiveness based on 49.10 proficiency of graduates in demonstrating attainment of program 49.11 outcomes. 49.12 (e) The board must adopt rules requiring successful 49.13 completion of an examination of general pedagogical knowledge 49.14 and examinations of licensure-specific teaching skills. The 49.15 rules shall be effective on the dates determined by the board, 49.16 but not later than September 1, 2001. 49.17 (f) The board must adopt rules requiring teacher educators 49.18 to work directly with elementary or secondary school teachers in 49.19 elementary or secondary schools to obtain periodic exposure to 49.20 the elementary or secondary teaching environment. 49.21 (g) The board must grant licenses to interns and to 49.22 candidates for initial licenses. 49.23 (h) The board must design and implement an assessment 49.24 system which requires a candidate for an initial license and 49.25 first continuing license to demonstrate the abilities necessary 49.26 to perform selected, representative teaching tasks at 49.27 appropriate levels. 49.28 (i) The board must receive recommendations from local 49.29 committees as established by the board for the renewal of 49.30 teaching licenses. 49.31 (j) The board must grant life licenses to those who qualify 49.32 according to requirements established by the board, and suspend 49.33 or revoke licenses pursuant to sections 122A.20 and 214.10. The 49.34 board must not establish any expiration date for application for 49.35 life licenses. 49.36 (k) The board must adopt rules that require all licensed 50.1 teachers who are renewing their continuing license to include in 50.2 their renewal requirements further preparation in the areas of 50.3 using positive behavior interventions, applying the effective 50.4 use of technology in the classroom, and in accommodating, 50.5 modifying, and adapting curricula, materials, and strategies to 50.6 appropriately meet the needs of individual students and ensure 50.7 adequate progress toward the state's graduation rule. The rules 50.8 adopted under this paragraph apply to teachers who renew their 50.9 licenses in year 2001 and later. 50.10 (l) In adopting rules to license public school teachers who 50.11 provide health-related services for disabled children, the board 50.12 shall adopt rules consistent with license or registration 50.13 requirements of the commissioner of health and the 50.14 health-related boards who license personnel who perform similar 50.15 services outside of the school. 50.16 Sec. 4. Minnesota Statutes 2000, section 122A.60, 50.17 subdivision 3, is amended to read: 50.18 Subd. 3. [STAFF DEVELOPMENT OUTCOMES.] The advisory staff 50.19 development committee must adopt a staff development plan for 50.20 improving student achievement. The plan must be consistent with 50.21 education outcomes that the school board determines. The plan 50.22 must include ongoing staff development activities that 50.23 contribute toward continuous improvement in achievement of the 50.24 following goals: 50.25 (1) improve student achievement of state and local 50.26 education standards in all areas of the curriculum by using best 50.27 practices methods; 50.28 (2) effectively meet the needs of a diverse student 50.29 population, including at-risk children, children with 50.30 disabilities, and gifted children, within the regular classroom 50.31 and other settings; 50.32 (3) provide an inclusive curriculum for a racially, 50.33 ethnically, and culturally diverse student population that is 50.34 consistent with the state education diversity rule and the 50.35 district's education diversity plan; 50.36 (4) improve staff collaboration and develop mentoring and 51.1 peer coaching programs for teachers new to the school or 51.2 district; 51.3 (5) effectively teach and model violence prevention policy 51.4 and curriculum that address early intervention alternatives, 51.5 issues of harassment, and teach nonviolent alternatives for 51.6 conflict resolution;and51.7 (6) provide teachers and other members of site-based 51.8 management teams with appropriate management and financial 51.9 management skills; and 51.10 (7) provide teachers with training for the effective use of 51.11 technology in the classroom and for the development of 51.12 curriculum resources that are video or electronically based and 51.13 delivered. 51.14 Sec. 5. [122A.73] [TEACHERS FOR THE 21ST CENTURY.] 51.15 Subdivision 1. [ESTABLISHMENT.] A teachers for the 21st 51.16 century initiative is established to attract and retain 51.17 qualified teachers in areas of identified shortages, including 51.18 student counseling, and support new teachers in schools with 51.19 high levels of poverty. The teachers for the 21st century 51.20 initiative consists of a targeted loan forgiveness or tuition 51.21 reimbursement program, an alternative license/teaching academy 51.22 program, an individual certificate account program, and a 51.23 mentoring and induction support program. The commissioner of 51.24 children, families, and learning shall identify areas of teacher 51.25 shortages, develop eligibility criteria for participation in the 51.26 programs, develop and disseminate application materials for the 51.27 programs, select program participants, and carry out other 51.28 activities to implement this section. These programs are 51.29 available only for a person entering a program for teacher or 51.30 school counselor preparation after June 30, 2001. 51.31 Subd. 2. [TARGETED LOAN FORGIVENESS OR TUITION 51.32 REIMBURSEMENT PROGRAM.] The purpose of the teacher loan 51.33 forgiveness or tuition reimbursement program is to repay the 51.34 loans or reimburse tuition costs of qualified licensed teachers 51.35 who teach in areas of identified teacher shortage and school 51.36 counselors. A licensed teacher, who has successfully completed 52.1 an accredited teacher preparation program in a Minnesota 52.2 post-secondary institution in an identified area of teacher 52.3 shortage, or a licensed school counselor may submit an 52.4 application to the commissioner to participate in the targeted 52.5 loan forgiveness or tuition reimbursement program. In addition 52.6 to any other criteria established by the commissioner, the 52.7 applicant must be employed as a school counselor or a teacher in 52.8 a Minnesota public school in an area of identified teacher 52.9 shortage. Program participants, who meet the criteria under 52.10 this subdivision, may designate for each year of post-secondary 52.11 education leading to a license to counsel students or to teach 52.12 in an identified area of teacher shortage, up to a total of four 52.13 years, an agreed amount, not to exceed $2,000 per year, as 52.14 qualified loans or tuition. For each year that a participant is 52.15 employed in a school according to this subdivision, up to a 52.16 total of four years, the commissioner shall annually pay an 52.17 amount equal to one year of qualified loans or tuition. 52.18 Subd. 3. [ALTERNATIVE LICENSE/TEACHING ACADEMY 52.19 PROGRAM.] The purpose of the alternative license/teaching 52.20 academy program is to award grants to school districts or groups 52.21 of school districts to establish teaching academies for persons 52.22 with at least a four-year degree in an identified area of 52.23 teacher shortage from a post-secondary institution to teach in 52.24 the identified area of teacher shortage and work toward being 52.25 granted a teacher license. A school district or group of school 52.26 districts, in conjunction with a post-secondary teacher 52.27 preparation program, may submit an application to the 52.28 commissioner to participate in the alternative license/teaching 52.29 academy program. In addition to any other criteria established 52.30 by the commissioner, a teaching academy must include a program 52.31 of professional development and instruction in the school 52.32 district. A district must assign a mentor/master teacher to 52.33 work closely with a teaching academy candidate for at least one 52.34 year. The post-secondary teacher preparation program shall make 52.35 a recommendation to the board of teaching as to the granting of 52.36 a teacher license to the candidate. The commissioner may award 53.1 grants up to $5,000 per candidate to school districts or groups 53.2 of school districts participating in the alternative 53.3 license/teaching academy program. The grants may be used for 53.4 stipends to mentor/master teachers, professional development 53.5 costs, and administering the program. 53.6 Subd. 4. [INDIVIDUAL CERTIFICATE ACCOUNT PROGRAM.] The 53.7 purpose of the individual certificate account program is to 53.8 establish individual certificate accounts for persons to use for 53.9 tuition to attend an accredited teacher preparation program in a 53.10 Minnesota post-secondary institution in an identified area of 53.11 teacher shortage. In addition to any other criteria established 53.12 by the commissioner, a program applicant must work with teachers 53.13 in an educational setting at least ten hours a week. Eligible 53.14 applicants, who may include high school students, school 53.15 volunteers, or paraprofessionals, may submit applications to the 53.16 commissioner to participate in the individual certificate 53.17 account program. For each year, up to five years, the 53.18 commissioner may deposit a certificate of $2,000 in a 53.19 participant's account. A certificate expires five years after 53.20 its date of issuance. 53.21 Subd. 5. [MENTORING AND INDUCTION SUPPORT PROGRAM.] The 53.22 purpose of the mentoring and induction support program is to 53.23 award grants to school districts for teachers who mentor 53.24 teachers in the first three years of teaching in schools with 53.25 high levels of poverty. A school district may submit an 53.26 application to the commissioner of children, families, and 53.27 learning to participate in the mentoring and induction support 53.28 program. The commissioner may award grants to eligible 53.29 applicants for stipends of up to $500 per year for each mentor 53.30 teacher without National Board Certification and up to $1,000 53.31 for each mentor teacher with National Board Certification. 53.32 Subd. 6. [REPORT.] The commissioner of children, families, 53.33 and learning shall report annually on the teachers for the 21st 53.34 century initiative to the education policy committees of the 53.35 house of representatives and the senate on the number of 53.36 participants receiving grants in each program, the identified 54.1 area of need for each applicant, a qualitative assessment of the 54.2 participants' effectiveness in the classroom, and information on 54.3 the impact of each program and the initiative in recruiting and 54.4 retraining quality teachers. The commissioner may contract for 54.5 this report. 54.6 Subd. 7. [EXPIRATION.] This section expires June 30, 2005. 54.7 Sec. 6. Minnesota Statutes 2000, section 124D.11, 54.8 subdivision 4, is amended to read: 54.9 Subd. 4. [BUILDING LEASE BASE AID.] When a charter school 54.10 finds it economically advantageous to rent or lease a building 54.11 or land for any instructional purposes and it determines that 54.12 the total operating capital revenue under section 126C.10, 54.13 subdivision 13, is insufficient for this purpose, it may apply 54.14 to the commissioner for building lease aid for this purpose. 54.15 Criteria for aid approval and revenue uses shall be as defined 54.16 for the building lease levy in section 126C.40, subdivision 1, 54.17 paragraphs (a) and (b). For leases entered into before April 1, 54.18 2001, the amount of building lease base aid per pupil unit 54.19 served for a charter school for any year shall not exceed the 54.20 lesser of (a) 90 percent of the approved cost or (b) the product 54.21 of the pupil units served for the current school year times 54.22 $1,500. For leases entered into April 1, 2001, and thereafter, 54.23 the amount of building lease base aid per pupil unit served for 54.24 a charter school for any year shall not exceed the lesser of (1) 54.25 90 percent of the approved cost or (2) the product of the pupil 54.26 units served for the current school year times $1,000. 54.27 Sec. 7. Minnesota Statutes 2000, section 124D.11, is 54.28 amended by adding a subdivision to read: 54.29 Subd. 4a. [STATE TOTAL BUILDING LEASE AID.] The state 54.30 total building lease aid for fiscal year 2002 equals $11,734,000. 54.31 The state total building lease aid for fiscal year 2003 equals 54.32 $12,907,000. The state total building lease aid for later 54.33 fiscal years equals the state total building lease aid for the 54.34 preceding fiscal year times 1.1. 54.35 Sec. 8. Minnesota Statutes 2000, section 124D.11, is 54.36 amended by adding a subdivision to read: 55.1 Subd. 4b. [CHARTER SCHOOL BUILDING LEASE AID.] A charter 55.2 school's building lease aid for fiscal year 2002 and later 55.3 equals the state total building lease aid times the ratio of the 55.4 charter school's building lease base aid to the state total 55.5 building lease base aid. 55.6 Sec. 9. Minnesota Statutes 2000, section 124D.128, 55.7 subdivision 1, is amended to read: 55.8 Subdivision 1. [PROGRAM ESTABLISHED.] A learning year 55.9 program provides instruction throughout the year. A pupil may 55.10 participate in the program and accelerate attainment of grade 55.11 level requirements or graduation requirements. A learning year 55.12 program may begin after the close of the regular school year in 55.13 June. The program may be for students in one or more grade 55.14 levels from kindergarten through grade 12. 55.15Students may participate in the program if they reside in:55.16(1) a district that has been designated a learning year55.17site under subdivision 2;55.18(2) a district that is a member of the same education55.19district as a site; or55.20(3) a district that participates in the same area learning55.21center program as a site.55.22 Sec. 10. Minnesota Statutes 2000, section 124D.128, 55.23 subdivision 2, is amended to read: 55.24 Subd. 2. [COMMISSIONER DESIGNATION.] An area learning 55.25 center designated by the state must be a site. To be 55.26 designated, a district or center must demonstrate to the 55.27 commissioner that it will: 55.28 (1) provide a program of instruction that permits pupils to 55.29 receive instruction throughout the entire year; and 55.30 (2) maintain a record system that, for purposes of section 55.31 126C.05, permits identification of membership attributable to 55.32 pupils participating in the program. The record system and 55.33 identification must ensure that the program will not have the 55.34 effect of increasing the total number of pupil units 55.35 attributable to an individual pupil as a result of a learning 55.36 year program. The record system must include the date the pupil 56.1 originally enrolled in a learning year program, the pupil's 56.2 grade level, the date of each grade promotion, the average daily 56.3 membership generated in each grade level, the number of credits 56.4 or standards earned, and the number needed to graduate. 56.5 Sec. 11. Minnesota Statutes 2000, section 124D.128, 56.6 subdivision 3, is amended to read: 56.7 Subd. 3. [STUDENT PLANNING.] A district must inform all 56.8 pupils and their parents about the learning year program and 56.9 that participation in the program is optional. A continual 56.10 learning plan must be developed at least annually for each pupil 56.11 with the participation of the pupil, parent or guardian, 56.12 teachers, and other staff; each participant must sign and date 56.13 the plan. The plan must specify the learning experiences that 56.14 must occureachduring the entire fiscal year and, for secondary 56.15 students, for graduation. The plan must include: 56.16 (1) the pupil's learning objectives and experiences; 56.17 (2) the assessment measurements used to evaluate each 56.18 objective; 56.19 (3) requirements for grade level progression; and 56.20 (4) for pupils generating more than one average daily 56.21 membership in a given grade, an indication of which objectives 56.22 were unmet. 56.23 The plan may be modified to conform to district schedule 56.24 changes. The district may not modify the plan if the 56.25 modification would result in delaying the student's time of 56.26 graduation. 56.27 Sec. 12. Minnesota Statutes 2000, section 124D.128, 56.28 subdivision 6, is amended to read: 56.29 Subd. 6. [REVENUE COMPUTATION AND REPORTING.] Aid and levy 56.30 revenue computations must be based on the total number of hours 56.31 of education programs for pupils in average daily membership for 56.32 each fiscal year.For purposes of section 126C.05,Average 56.33 daily membership shall be computedby dividing the total number56.34of hours of participation for the fiscal year by the minimum56.35number of hours for a year determined for the appropriate grade56.36levelpursuant to section 126C.05, subdivision 15. Hours of 57.1 participation that occur after the close of the regular 57.2 instructional year and before July 1 must be attributed to the 57.3 following fiscal year.Thirty hours may be used for teacher57.4workshops, staff development, or parent-teacher conferences. As57.5part of each pilot program, the department and each district57.6must report and evaluate the changes needed to adjust the dates57.7of the fiscal year for aid and levy computation and fiscal year57.8reporting.For revenue computation purposes, the learning year 57.9 program shall generate revenue based on the formulas for the 57.10 fiscal year in which the services are provided. Dates of grade 57.11 promotion must be reported to the department for all pupils who 57.12 have participated in the program. 57.13State aid and levy revenue computation for the learning57.14year programs begins July 1, 1988, for fiscal year 1989.57.15 Sec. 13. Minnesota Statutes 2000, section 124D.128, is 57.16 amended by adding a subdivision to read: 57.17 Subd. 6a. [PROCESS TO ADDRESS AUDIT FINDINGS.] (a) If, 57.18 during an audit of a district's learning year program, the 57.19 commissioner finds that the district is not meeting program 57.20 requirements, the commissioner must notify the board of that 57.21 district in writing. The notice must specify the findings in 57.22 detail, describe the correction required, set a reasonable time 57.23 during which the findings should be corrected, and advise that 57.24 general education revenue to the district may be reduced. The 57.25 commissioner may extend the time allowed for the correction. 57.26 (b) A board that receives a notice under paragraph (a) may 57.27 decide by majority vote of the entire board to dispute that: 57.28 (1) the specified finding exists; 57.29 (2) the time allowed is reasonable; or 57.30 (3) the commissioner should reduce district general 57.31 education revenue. 57.32 The board must give the commissioner written notice of the 57.33 board's decision within 30 days of receipt of the audit report. 57.34 After making any further investigations the commissioner deems 57.35 necessary, the commissioner must decide whether or not to adhere 57.36 to the commissioner's original notice and must notify the board 58.1 of the commissioner's decision. 58.2 (c) The commissioner may reduce or withhold state general 58.3 education revenues as the result of an audit. The commissioner 58.4 may decide not to reduce or withhold state general education 58.5 revenues if the district corrects the specified finding, or 58.6 after receiving the district's notice disputing the finding, the 58.7 commissioner decides the finding does not exist. 58.8 Sec. 14. Minnesota Statutes 2000, section 124D.453, 58.9 subdivision 3, is amended to read: 58.10 Subd. 3. [CAREER AND TECHNICAL AID.] A district's career 58.11 and technical education aid for fiscal years2000 and 20012002 58.12 and later equals the lesser of: 58.13 (a) $73 times the district's average daily membership in 58.14 grades 10 to 12; or 58.15 (b) 25 percent of approved expenditures for the following: 58.16 (1) salaries paid to essential, licensed personnel 58.17 providing direct instructional services to students in that 58.18 fiscal year for services rendered in the district's approved 58.19 career and technical education programs; 58.20 (2) contracted services provided by a public or private 58.21 agency other than a Minnesota school district or cooperative 58.22 center under subdivision 7; 58.23 (3) necessary travel between instructional sites by 58.24 licensed career and technical education personnel; 58.25 (4) necessary travel by licensed career and technical 58.26 education personnel for vocational student organization 58.27 activities held within the state for instructional purposes; 58.28 (5) curriculum development activities that are part of a 58.29 five-year plan for improvement based on program assessment; 58.30 (6) necessary travel by licensed career and technical 58.31 education personnel for noncollegiate credit bearing 58.32 professional development; and 58.33 (7) specialized vocational instructional supplies. 58.34 (c) Up to ten percent of a district's career and technical 58.35 aid may be spent on equipment purchases. Districts using career 58.36 and technical aid for equipment purchases must report to the 59.1 department on the improved learning opportunities for students 59.2 that result from the investment in equipment. 59.3 (d) Up to ten percent of a district's career and technical 59.4 aid may be spent on salaries paid to licensed school counselors. 59.5 Sec. 15. Minnesota Statutes 2000, section 124D.69, 59.6 subdivision 1, is amended to read: 59.7 Subdivision 1. [AID.] If a pupil enrolls in an alternative 59.8 program, eligible under section 124D.68, subdivision 3, 59.9 paragraph (d), or subdivision 4, operated by a private 59.10 organization that has contracted with a school district to 59.11 provide educational services for eligible pupils under section 59.12 124D.68, subdivision 2, the district contracting with the 59.13 private organization must reimburse the provider an amount equal 59.14 to at least9095 percent of the district's average general 59.15 education less basic skills revenue per pupil unit times the 59.16 number of pupil units for pupils attending the program. Basic 59.17 skills revenue shall be paid according to section 126C.10, 59.18 subdivision 4. Compensatory revenue must be allocated according 59.19 to section 126C.15, subdivision 2. For a pupil attending the 59.20 program part time, the revenue paid to the program must be 59.21 reduced proportionately, according to the amount of time the 59.22 pupil attends the program, and revenue paid to the district 59.23 shall be reduced accordingly. Pupils for whom a district 59.24 provides reimbursement may not be counted by the district for 59.25 any purpose other than computation of general education 59.26 revenue. If payment is made to a district or program for a 59.27 pupil under this section, the department must not make a payment 59.28 for the same pupil under section 124D.68, subdivision 9. 59.29 [EFFECTIVE DATE.] This section is effective for revenue for 59.30 fiscal year 2002 and later. 59.31 Sec. 16. Minnesota Statutes 2000, section 124D.74, 59.32 subdivision 1, is amended to read: 59.33 Subdivision 1. [PROGRAM DESCRIBED.] American Indian 59.34language and cultureeducation programs are programs in public 59.35 elementary and secondary schools, nonsectarian nonpublic, 59.36 community, tribal, or alternative schools enrolling American 60.1 Indian children designed: 60.2 (1) to support post-secondary preparation for pupils; 60.3 (2) to support the academic achievement of American Indian 60.4 students; 60.5 (3) to make the curriculum more relevant to the needs, 60.6 interests, and cultural heritage of American Indian pupils; 60.7(2)(4) to provide positive reinforcement of the self-image 60.8 of American Indian pupils;and60.9(3)(5) to develop intercultural awareness among pupils, 60.10 parents, and staff; and 60.11 (6) to supplement, not supplant, state and federal 60.12 educational and cocurricular programs. 60.13 Program components may include:instruction in American Indian60.14language, literature, history, and culturedevelopment of 60.15 support components for students in the areas of academic 60.16 achievement, retention, and attendance; development of support 60.17 components for staff, including in-service training and 60.18 technical assistance in methods of teaching American Indian 60.19 pupils; research projects, including experimentation with and 60.20 evaluation of methods of relating to American Indian pupils; 60.21 provision of personal and vocational counseling to American 60.22 Indian pupils; modification of curriculum, instructional 60.23 methods, and administrative procedures to meet the needs of 60.24 American Indian pupils; andestablishment of cooperative60.25liaisons with nonsectarian nonpublic, community, tribal or60.26alternative schools offering curricula which reflect American60.27Indian culturesupplemental instruction in American Indian 60.28 language, literature, history, and culture. Districts offering 60.29 programs may make contracts for the provision of program 60.30 components bynonsectarian nonpublic, community, tribal or60.31alternative schoolsestablishing cooperative liaisons with 60.32 tribal programs and American Indian social service agencies. 60.33 These programs may also be provided as components of early 60.34 childhood and family education programs. 60.35 Sec. 17. Minnesota Statutes 2000, section 124D.74, 60.36 subdivision 2, is amended to read: 61.1 Subd. 2. [VOLUNTARY ENROLLMENT.] Enrollment in American 61.2 Indianlanguage and cultureeducation programs must be 61.3 voluntary. School districts and participating schools must make 61.4 affirmative efforts to encourage participation. They shall 61.5 encourage parents to visit classes or come to school for a 61.6 conference explaining the nature of the program and provide 61.7 visits by school staff to parents' homes to explain the nature 61.8 of the program. 61.9 Sec. 18. Minnesota Statutes 2000, section 124D.74, 61.10 subdivision 3, is amended to read: 61.11 Subd. 3. [ENROLLMENT OF OTHER CHILDREN; SHARED TIME 61.12 ENROLLMENT.] To the extent it is economically feasible, a 61.13 district or participating school may make provision for the 61.14 voluntary enrollment of non-American Indian children in the 61.15 instructional components of an American Indianlanguage and61.16cultureeducation program in order that they may acquire an 61.17 understanding of the cultural heritage of the American Indian 61.18 children for whom that particular program is designed. However, 61.19 in determining eligibility to participate in a program, priority 61.20 must be given to American Indian children. American Indian 61.21 children and other children enrolled in an existing nonpublic 61.22 school system may be enrolled on a shared time basis in American 61.23 Indianlanguage and cultureeducation programs. 61.24 Sec. 19. Minnesota Statutes 2000, section 124D.74, 61.25 subdivision 4, is amended to read: 61.26 Subd. 4. [LOCATION OF PROGRAMS.] American Indianlanguage61.27and cultureeducation programs must be located in facilities in 61.28 which regular classes in a variety of subjects are offered on a 61.29 daily basis. Programs may operate on an extended day or 61.30 extended year basis. 61.31 Sec. 20. Minnesota Statutes 2000, section 124D.74, 61.32 subdivision 6, is amended to read: 61.33 Subd. 6. [NONVERBAL COURSES AND EXTRACURRICULAR 61.34 ACTIVITIES.] In predominantly nonverbal subjects, such as art, 61.35 music, and physical education, American Indian children shall 61.36 participate fully and on an equal basis with their 62.1 contemporaries in school classes provided for these subjects. 62.2 Every school district or participating school shall ensure to 62.3 children enrolled in American Indianlanguage and culture62.4 education programs an equal and meaningful opportunity to 62.5 participate fully with other children in all extracurricular 62.6 activities. This subdivision shall not be construed to prohibit 62.7 instruction in nonverbal subjects or extracurricular activities 62.8 which relate to the cultural heritage of the American Indian 62.9 children, or which are otherwise necessary to accomplish the 62.10 objectives described in sections 124D.71 to 124D.82. 62.11 Sec. 21. Minnesota Statutes 2000, section 124D.75, 62.12 subdivision 6, is amended to read: 62.13 Subd. 6. [PERSONS ELIGIBLE FOR EMPLOYMENT; EXEMPTIONS.] 62.14 Any person licensed under this section shall be eligible for 62.15 employment by a school board or a participating school as a 62.16 teacher in an American Indianlanguage and cultureeducation 62.17 program in which the American Indian language or culture in 62.18 which the person is licensed is taught. A school district or 62.19 participating school may prescribe only those additional 62.20 qualifications for teachers licensed under this section as are 62.21 approved by the board of teaching. Any school board or 62.22 participating school upon request may be exempted from the 62.23 licensure requirements of this section in the hiring of one or 62.24 more American Indian language and culture education teachers for 62.25 any school year in which compliance would, in the opinion of the 62.26 commissioner, create a hardship in the securing of the teachers. 62.27 Sec. 22. Minnesota Statutes 2000, section 124D.76, is 62.28 amended to read: 62.29 124D.76 [TEACHERS AIDES; COMMUNITY COORDINATORS.] 62.30 In addition to employing American Indian language and 62.31 culture education teachers, each district or participating 62.32 school providing programs pursuant to sections 124D.71 to 62.33 124D.82 may employ teachers' aides. Teachers' aides must not be 62.34 employed for the purpose of supplanting American Indian language 62.35 and culture education teachers. 62.36 Any district or participating school which conducts 63.1 American Indianlanguage and cultureeducation programs pursuant 63.2 to sections 124D.71 to 124D.82 must employ one or more full-time 63.3 or part-time community coordinators if there are 100 or more 63.4 students enrolled in the program. Community coordinators shall 63.5 promote communication understanding, and cooperation between the 63.6 schools and the community and shall visit the homes of children 63.7 who are to be enrolled in an American Indianlanguage and63.8cultureeducation program in order to convey information about 63.9 the program. 63.10 Sec. 23. Minnesota Statutes 2000, section 124D.78, 63.11 subdivision 1, is amended to read: 63.12 Subdivision 1. [PARENT COMMITTEE.] School boards and 63.13 American Indian schools must provide for the maximum involvement 63.14 of parents of children enrolled in education programs,including63.15language and culture education programs,programs for elementary 63.16 and secondary grades, special education programs, and support 63.17 services. Accordingly, the board of a school district in which 63.18 there are ten or more American Indian children enrolled and each 63.19 American Indian school must establish a parent committee. If a 63.20 committee whose membership consists of a majority of parents of 63.21 American Indian children has been or is established according to 63.22 federal, tribal, or other state law, that committee may serve as 63.23 the committee required by this section and is subject to, at 63.24 least, the requirements of this subdivision and subdivision 2. 63.25 The parent committee must develop its recommendations in 63.26 consultation with the curriculum advisory committee required by 63.27 section 120B.11, subdivision 3. This committee must afford 63.28 parents the necessary information and the opportunity 63.29 effectively to express their views concerning all aspects of 63.30 American Indian education and the educational needs of the 63.31 American Indian children enrolled in the school or program. The 63.32 committee must also address the need for adult education 63.33 programs for American Indian people in the community. The board 63.34 or American Indian school must ensure that programs are planned, 63.35 operated, and evaluated with the involvement of and in 63.36 consultation with parents of children served by the programs. 64.1 Sec. 24. Minnesota Statutes 2000, section 124D.81, 64.2 subdivision 1, is amended to read: 64.3 Subdivision 1. [GRANTS; PROCEDURES.] Each fiscal year the 64.4 commissioner of children, families, and learning must make 64.5 grants to no fewer than six American Indianlanguage and culture64.6 education programs. At least three programs must be in urban 64.7 areas and at least three must be on or near reservations. The 64.8 board of a local district, a participating school or a group of 64.9 boards may develop a proposal for grants in support of American 64.10 Indianlanguage and cultureeducation programs. Proposals may 64.11 provide for contracts for the provision of program components by 64.12 nonsectarian nonpublic, community, tribal, or alternative 64.13 schools. The commissioner shall prescribe the form and manner 64.14 of application for grants, and no grant shall be made for a 64.15 proposal not complying with the requirements of sections 124D.71 64.16 to 124D.82. The commissioner must submit all proposals to the 64.17 state advisorytask forcecommittee on American Indianlanguage64.18and cultureeducation programs for its recommendations 64.19 concerning approval, modification, or disapproval and the 64.20 amounts of grants to approved programs. 64.21 Sec. 25. Minnesota Statutes 2000, section 124D.81, 64.22 subdivision 3, is amended to read: 64.23 Subd. 3. [ADDITIONAL REQUIREMENTS.] Each district 64.24 receiving a grant under this section must each year conduct a 64.25 count of American Indian children in the schools of the 64.26 district; test for achievement; identify the extent of other 64.27 educational needs of the children to be enrolled in the American 64.28 Indianlanguage and cultureeducation program; and classify the 64.29 American Indian children by grade, level of educational 64.30 attainment, age and achievement. Participating schools must 64.31 maintain records concerning the needs and achievements of 64.32 American Indian children served. 64.33 Sec. 26. Minnesota Statutes 2000, section 124D.81, 64.34 subdivision 5, is amended to read: 64.35 Subd. 5. [RECORDS.] Participating schools and districts 64.36 must keep records and afford access to them as the commissioner 65.1 finds necessary to ensure that American Indianlanguage and65.2cultureeducation programs are implemented in conformity with 65.3 sections 124D.71 to 124D.82. Each school district or 65.4 participating school must keep accurate, detailed, and separate 65.5 revenue and expenditure accounts for pilot American Indian 65.6language and cultureeducation programs funded under this 65.7 section. 65.8 Sec. 27. Minnesota Statutes 2000, section 124D.81, 65.9 subdivision 6, is amended to read: 65.10 Subd. 6. [MONEY FROM OTHER SOURCES.] A district or 65.11 participating school providing American Indianlanguage and65.12cultureeducation programs shall be eligible to receive moneys 65.13 for these programs from other government agencies and from 65.14 private sources when the moneys are available. 65.15 Sec. 28. Minnesota Statutes 2000, section 124D.81, 65.16 subdivision 7, is amended to read: 65.17 Subd. 7. [EXCEPTIONS.] Nothing in sections 124D.71 to 65.18 124D.82 shall be construed as prohibiting a district or school 65.19 from implementing an American Indianlanguage and culture65.20 education program which is not in compliance with sections 65.21 124D.71 to 124D.82 if the proposal and plan for that program is 65.22 not funded pursuant to this section. 65.23 Sec. 29. [124D.945] [PERFORMANCE INCENTIVE POOL PROGRAM.] 65.24 Subdivision 1. [ESTABLISHMENT.] A performance incentive 65.25 pool program is established for school districts or school sites 65.26 to create new compensation packages and career paths for 65.27 teachers built around measurable student outcomes and 65.28 improvement of teaching. 65.29 Subd. 2. [ELIGIBILITY; APPLICATION.] (a) To participate in 65.30 this program, a school district or school site must: 65.31 (1) fully implement the graduation standards within a 65.32 specified time period; 65.33 (2) have specific assessment and evaluation tools to 65.34 measure student performance and progress; 65.35 (3) have measures to show improved student attendance and 65.36 completion rates; 66.1 (4) show evidence of professional development that aligns 66.2 curriculum and instruction; 66.3 (5) have measures of student, family, and community 66.4 involvement and satisfaction; 66.5 (6) maintain a data system with information about students 66.6 and their academic progress that provides parents and the public 66.7 with understandable information; 66.8 (7) use a compensation structure that provides professional 66.9 options for teachers whose primary role is to provide student 66.10 instruction and that eliminates pay increases tied to years of 66.11 service; and 66.12 (8) provide other necessary information required by the 66.13 commissioner. 66.14 The commissioner shall consider applications submitted by a 66.15 school district and the exclusive representative of the teachers 66.16 for participation in the incentive pool program. To receive 66.17 funding, the school district and the exclusive representative of 66.18 the teachers must formally adopt a collective bargaining 66.19 agreement, a memorandum of understanding, or a legal document 66.20 that implements a new compensation plan that includes all 66.21 teachers in the school district or school site. 66.22 (b) To be eligible to participate in this program, a school 66.23 district or school site must submit an application to the 66.24 commissioner in the form and manner the commissioner prescribes. 66.25 (c) The commissioner shall select applicants that qualify 66.26 for this program, notify school districts and school sites about 66.27 the program, develop and disseminate application materials, and 66.28 carry out other activities needed to implement this section. 66.29 Subd. 3. [INCENTIVE.] A school district or school site 66.30 shall receive up to $150 per adjusted marginal cost pupil unit 66.31 in addition to any other funding for each school year that the 66.32 district or site participates in the program. 66.33 Subd. 4. [EXPIRATION.] This section expires June 30, 2005. 66.34 Sec. 30. Minnesota Statutes 2000, section 126C.05, 66.35 subdivision 15, is amended to read: 66.36 Subd. 15. [LEARNING YEAR PUPIL UNITS.] (a) When a pupil is 67.1 enrolled in a learning year program under section 124D.128, an 67.2 area learning center under sections 123A.05 and 123A.06, an 67.3 alternative program approved by the commissioner, or a contract 67.4 alternative program under section 124D.68, subdivision 3, 67.5 paragraph (d), or subdivision 3a, for more than 1,020 hours in a 67.6 school year for a secondary student, more than 935 hours in a 67.7 school year for an elementary student, or more than 425 hours in 67.8 a school year for a kindergarten student without a disability, 67.9 that pupil may be counted as more than one pupil in average 67.10 daily membership. The amount in excess of one pupil must be 67.11 determined by the ratio of the number of hours of instruction 67.12 provided to that pupil in excess of: (i) the greater of 1,020 67.13 hours or the number of hours required for a full-time secondary 67.14 pupil in the district to 1,020 for a secondary pupil; (ii) the 67.15 greater of 935 hours or the number of hours required for a 67.16 full-time elementary pupil in the district to 935 for an 67.17 elementary pupil in grades 1 through 6; and (iii) the greater of 67.18 425 hours or the number of hours required for a full-time 67.19 kindergarten student without a disability in the district to 425 67.20 for a kindergarten student without a disability. Hours that 67.21 occur after the close of the instructional year in June shall be 67.22 attributable to the following fiscal year. A kindergarten 67.23 student must not be counted as more than 1.2 pupils in average 67.24 daily membership under this subdivision. 67.25 (b)(i) To receive general education revenue for a pupil in 67.26 an alternative program that has an independent study component, 67.27 a district must meet the requirements in this paragraph. The 67.28 district must develop,withfor the pupil, a continual learning 67.29 planfor the pupil. A district must allow a minor pupil's67.30parent or guardian to participate in developing the plan, if the67.31parent or guardian wants to participate. The plan must identify67.32the learning experiences and expected outcomes needed for67.33satisfactory credit for the year and for graduation. The plan67.34must be updated each yearconsistent with section 124D.128, 67.35 subdivision 3. Each school district that has a state-approved 67.36 public alternative program must reserve revenue in an amount 68.1 equal to at least 90 percent of the district average general 68.2 education revenue per pupil unit less compensatory revenue per 68.3 pupil unit times the number of pupil units generated by students 68.4 attending a state-approved public alternative program. The 68.5 amount of reserved revenue available under this subdivision may 68.6 only be spent for program costs associated with the 68.7 state-approved public alternative program. Compensatory revenue 68.8 must be allocated according to section 126C.15, subdivision 2. 68.9 (ii) General education revenue for a pupil in an approved 68.10 alternative program without an independent study component must 68.11 be prorated for a pupil participating for less than a full year, 68.12 or its equivalent. The district must develop for the pupil, a 68.13 continual learning plan consistent with section 124D.128, 68.14 subdivision 3. Each school district that has a state-approved 68.15 public alternative program must reserve revenue in an amount 68.16 equal to at least 90 percent of the district average general 68.17 education revenue per pupil unit less compensatory revenue per 68.18 pupil unit times the number of pupil units generated by students 68.19 attending a state-approved public alternative program. The 68.20 amount of reserved revenue available under this subdivision may 68.21 only be spent for program costs associated with the 68.22 state-approved public alternative program. Compensatory revenue 68.23 must be allocated according to section 126C.15, subdivision 2. 68.24 (iii) General education revenue for a pupil in an approved 68.25 alternative program that has an independent study component must 68.26 be paid for each hour of teacher contact time and each hour of 68.27 independent study time completed toward a credit or graduation 68.28 standards necessary for graduation. Average daily membership 68.29 for a pupil shall equal the number of hours of teacher contact 68.30 time and independent study time divided by 1,020. 68.31 (iv) For an alternative program having an independent study 68.32 component, the commissioner shall require a description of the 68.33 courses in the program, the kinds of independent study involved, 68.34 the expected learning outcomes of the courses, and the means of 68.35 measuring student performance against the expected outcomes. 68.36 Sec. 31. [INTEGRATION REVENUE REPORT.] 69.1 The department of children, families, and learning must 69.2 report to the education committees of the legislature by January 69.3 15, 2002, on the distribution of integration revenue under 69.4 Minnesota Statutes, section 124D.86. The report must include a 69.5 recommendation for consolidating the four tiers of integration 69.6 revenue under Minnesota Statutes, section 124D.86, subdivision 69.7 3, and funding integration based on factors including, but not 69.8 limited to, numbers of pupils served by the district's 69.9 integration plan, school district participation in an 69.10 integration plan, level of services provided under the plan, 69.11 costs of services provided under the plan, or other factors that 69.12 provide for an equitable distribution on integration revenue. 69.13 In addition, the report should analyze funding under the magnet 69.14 school grants, including whether rural areas of Minnesota should 69.15 be included in the metropolitan magnet program under Minnesota 69.16 Statutes, section 124D.88. 69.17 Sec. 32. [APPROPRIATIONS.] 69.18 Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND 69.19 LEARNING.] The sums indicated in this section are appropriated 69.20 from the general fund, unless otherwise indicated, to the 69.21 department of children, families, and learning for the fiscal 69.22 years designated. 69.23 Subd. 2. [STATEWIDE TESTING AND GRADUATION STANDARDS 69.24 SUPPORT.] For supporting implementation of the graduation 69.25 standards: 69.26 $6,500,000 ..... 2002 69.27 $6,500,000 ..... 2003 69.28 Any balance in the first year does not cancel but is 69.29 available in the second year. 69.30 Subd. 3. [ADVANCED PLACEMENT AND INTERNATIONAL 69.31 BACCALAUREATE PROGRAMS.] For the state advanced placement and 69.32 international baccalaureate programs: 69.33 $1,875,000 ..... 2002 69.34 $1,875,000 ..... 2003 69.35 Notwithstanding Minnesota Statutes, section 120B.13, 69.36 subdivisions 1 and 2, $375,000 each year is for teachers to 70.1 attend subject matter summer training programs and follow-up 70.2 support workshops approved by the advanced placement or 70.3 international baccalaureate programs. The amount of the subsidy 70.4 for each teacher attending an advanced placement or 70.5 international baccalaureate summer training program or workshop 70.6 shall be the same. The commissioner shall determine the payment 70.7 process and the amount of the subsidy. 70.8 Notwithstanding Minnesota Statutes, section 120B.13, 70.9 subdivision 3, in each year to the extent of available 70.10 appropriations, the commissioner shall pay all examination fees 70.11 for all students sitting for an advanced placement examination, 70.12 international baccalaureate examination, or both. If this 70.13 amount is not adequate, the commissioner may pay less than the 70.14 full examination fee. 70.15 Any balance in the first year does not cancel but is 70.16 available in the second year. 70.17 Subd. 4. [CHARTER SCHOOL BUILDING LEASE AID.] For building 70.18 lease aid according to Minnesota Statutes, section 124D.11, 70.19 subdivision 4: 70.20 $11,734,000 ..... 2002 70.21 $12,907,000 ..... 2003 70.22 The 2002 appropriation includes $1,114,000 for 2001 and 70.23 $10,620,000 for 2002. 70.24 The 2003 appropriation includes $1,180,000 for 2002 and 70.25 $11,727,000 for 2003. 70.26 Subd. 5. [CHARTER SCHOOL STARTUP GRANTS.] For charter 70.27 school startup cost aid under Minnesota Statutes, section 70.28 124D.11: 70.29 $2,738,000 ..... 2002 70.30 $3,143,000 ..... 2003 70.31 The 2002 appropriation includes $273,000 for 2001 and 70.32 $2,465,000 for 2002. 70.33 The 2003 appropriation includes $274,000 for 2002 and 70.34 $2,869,000 for 2003. 70.35 Subd. 6. [CHARTER SCHOOL INTEGRATION AID.] For grants to 70.36 charter schools to promote integration and desegregation 71.1 according to Minnesota Statutes, section 124D.11, subdivision 6, 71.2 paragraph (e): 71.3 $50,000 ..... 2002 71.4 $50,000 ..... 2003 71.5 Any balance in the first year does not cancel but is 71.6 available in the second year. 71.7 Subd. 7. [BEST PRACTICES SEMINARS.] For best practices 71.8 graduation rule seminars and other professional development 71.9 capacity building activities that assure proficiency in teaching 71.10 and implementation of graduation rule standards: 71.11 $4,500,000 ..... 2002 71.12 $4,500,000 ..... 2003 71.13 Of this amount, for fiscal year 2002, $1,000,000 is for 71.14 arts via the Internet collaborative project between the Walker 71.15 Art Center and the Minneapolis Institute of Arts; $200,000 in 71.16 fiscal year 2002 is for the Lincoln Learning Center school in 71.17 independent school district No. 347, Willmar, for innovative 71.18 education programs created to prepare children who are 71.19 ill-prepared to learn due to poor oral language development and 71.20 too few prereading experiences; and $250,000 each year is for a 71.21 grant to A Chance to Grow/New Visions for the Minnesota Learning 71.22 Resource Center. 71.23 The commissioner shall consider a curriculum development 71.24 grant, consistent with the graduation rule, to develop curricula 71.25 in the area of natural sciences including botany, horticulture, 71.26 and zoology. The grant shall also be used to provide 71.27 instructional materials on the Internet. The commissioner shall 71.28 consider the Minnesota academic excellence foundation for a best 71.29 practices grant. The commissioner shall consider best practices 71.30 grants to districts for developing gifted and talented services 71.31 that are integrated with the state's graduation standards. 71.32 Subd. 8. [INTEGRATION AID.] For integration aid: 71.33 $59,795,000 ..... 2002 71.34 $59,946,000 ..... 2003 71.35 The 2002 appropriation includes $5,729,000 for 2001 and 71.36 $54,066,000 for 2002. 72.1 The 2003 appropriation includes $6,007,000 for 2002 and 72.2 $53,939,000 for 2003. 72.3 Subd. 9. [INTEGRATION PROGRAMS.] For minority fellowship 72.4 grants according to Laws 1994, chapter 647, article 8, section 72.5 29; minority teacher incentives according to Minnesota Statutes, 72.6 section 122A.65; teachers of color grants according to Minnesota 72.7 Statutes, section 122A.64; and cultural exchange grants 72.8 according to Minnesota Statutes, section 124D.89: 72.9 $1,000,000 ..... 2002 72.10 $1,000,000 ..... 2003 72.11 Any balance in the first year does not cancel but is 72.12 available in the second year. 72.13 In awarding teacher of color grants, priority must be given 72.14 to districts that have students who are currently in the process 72.15 of completing their academic program. 72.16 Subd. 10. [MAGNET SCHOOL GRANTS.] For magnet school and 72.17 program grants Minnesota Statutes, section 124D.871: 72.18 $2,800,000 ..... 2002 72.19 Of this amount, for fiscal year 2002, $239,000 is for 72.20 independent school district No. 199, Inver Grove; $182,000 is 72.21 for independent school district No. 832, Mahtomedi; $536,000 is 72.22 for independent school district No. 834, Stillwater; $549,000 is 72.23 for independent school district No. 284, Wayzata; $534,000 is 72.24 for independent school district No. 624, White Bear Lake; and 72.25 $260,000 is for independent school district No. 347, Willmar. 72.26 Subd. 11. [MAGNET SCHOOL STARTUP AID.] For magnet school 72.27 startup aid under Minnesota Statutes, section 124D.88: 72.28 $482,000 ..... 2002 72.29 $326,000 ..... 2003 72.30 The 2002 appropriation includes $25,000 for 2001 and 72.31 $457,000 for 2002. 72.32 The 2003 appropriation includes $51,000 for 2002 and 72.33 $275,000 for 2003. 72.34 Subd. 12. [INTERDISTRICT DESEGREGATION OR INTEGRATION 72.35 TRANSPORTATION GRANTS.] For interdistrict desegregation or 72.36 integration transportation grants under Minnesota Statutes, 73.1 section 124D.87: 73.2 $2,932,000 ..... 2003 73.3 Subd. 13. [AMERICAN INDIAN LANGUAGE AND CULTURE PROGRAMS.] 73.4 For grants to American Indian language and culture education 73.5 programs according to Minnesota Statutes 2000, section 124D.81, 73.6 subdivision 1: 73.7 $73,000 ..... 2002 73.8 The 2002 appropriation includes $73,000 for 2001 and $0 for 73.9 2002. 73.10 Subd. 14. [AMERICAN INDIAN EDUCATION.] For certain 73.11 American Indian education programs in school districts: 73.12 $17,000 ..... 2002 73.13 The 2002 appropriation includes $17,000 for 2001 and $0 for 73.14 2002. 73.15 Subd. 15. [SUCCESS FOR THE FUTURE.] For American Indian 73.16 success for the future grants according to Minnesota Statutes, 73.17 section 124D.81: 73.18 $2,297,000 ..... 2002 73.19 $2,387,000 ..... 2003 73.20 The 2002 appropriation includes $0 for 2001 and $2,297,000 73.21 for 2002. 73.22 The 2003 appropriation includes $225,000 for 2002 and 73.23 $2,161,000 for 2003. 73.24 Subd. 16. [AMERICAN INDIAN SCHOLARSHIPS.] For American 73.25 Indian scholarships according to Minnesota Statutes, section 73.26 124D.84: 73.27 $1,875,000 ..... 2002 73.28 $1,875,000 ..... 2003 73.29 Any balance in the first year does not cancel but is 73.30 available in the second year. 73.31 Subd. 17. [INDIAN TEACHER PREPARATION GRANTS.] (a) For 73.32 joint grants to assist Indian people to become teachers: 73.33 $190,000 ..... 2002 73.34 $190,000 ..... 2003 73.35 (b) Up to $70,000 each year is for a joint grant to the 73.36 University of Minnesota at Duluth and the Duluth school district. 74.1 (c) Up to $40,000 each year is for a joint grant to each of 74.2 the following: 74.3 (1) Bemidji state university and the Red Lake school 74.4 district; 74.5 (2) Moorhead state university and a school district located 74.6 within the White Earth reservation; and 74.7 (3) Augsburg college, independent school district No. 625, 74.8 St. Paul, and the Minneapolis school district. 74.9 (d) Money not used for students at one location may be 74.10 transferred for use at another location. 74.11 (e) Any balance in the first year does not cancel but is 74.12 available in the second year. 74.13 Subd. 18. [TRIBAL CONTRACT SCHOOLS.] For tribal contract 74.14 school aid according to Minnesota Statutes, section 124D.83: 74.15 $2,520,000 ..... 2002 74.16 $2,767,000 ..... 2003 74.17 The 2002 appropriation includes $192,000 for 2001 and 74.18 $2,328,000 for 2002. 74.19 The 2003 appropriation includes $258,000 for 2002 and 74.20 $2,509,000 for 2003. 74.21 Subd. 19. [EARLY CHILDHOOD PROGRAMS AT TRIBAL 74.22 SCHOOLS.] For early childhood family education programs at 74.23 tribal contract schools: 74.24 $68,000 ..... 2002 74.25 $68,000 ..... 2003 74.26 Subd. 20. [FIRST GRADE PREPAREDNESS.] For first grade 74.27 preparedness grants according to Minnesota Statutes, section 74.28 124D.081: 74.29 $7,500,000 ..... 2002 74.30 $8,000,000 ..... 2003 74.31 Subd. 21. [CAREER AND TECHNICAL EDUCATION AID.] For career 74.32 and technical education aid according to Minnesota Statutes, 74.33 section 124D.453: 74.34 $12,458,000 ..... 2002 74.35 $12,496,000 ..... 2003 74.36 The 2002 appropriation includes $1,242,000 for 2001 and 75.1 $11,216,000 for 2002. 75.2 The 2003 appropriation includes $1,246,000 for 2002 and 75.3 $11,250,000 for 2003. 75.4 Subd. 22. [YOUTHWORKS PROGRAM.] For funding youthworks 75.5 programs according to Minnesota Statutes, sections 124D.37 to 75.6 124D.45: 75.7 $1,938,000 ..... 2002 75.8 $1,938,000 ..... 2003 75.9 A grantee organization may provide health and child care 75.10 coverage to the dependents of each participant enrolled in a 75.11 full-time youth works program to the extent such coverage is not 75.12 otherwise available. Of this amount, $150,000 each year is 75.13 contingent upon the commission on national and community service 75.14 demonstrating to the commissioner that federal matching funds 75.15 are available for the service learning program. 75.16 Any balance in the first year does not cancel but is 75.17 available in the second year. 75.18 Subd. 23. [EDUCATION AND EMPLOYMENT TRANSITIONS PROGRAM 75.19 GRANTS.] For education and employment transitions programming 75.20 under Minnesota Statutes, section 124D.46: 75.21 $1,825,000 ..... 2002 75.22 $1,825,000 ..... 2003 75.23 Of this appropriation, $450,000 each year is for ISEEK. 75.24 $1,075,000 in fiscal year 2002 and $1,125,000 in fiscal 75.25 year 2003 is for youth apprenticeship grants. 75.26 $125,000 each year is to conduct a high school follow-up 75.27 survey to include first, third, and sixth year graduates of 75.28 Minnesota schools. 75.29 $125,000 each year is for grants to school districts for 75.30 the junior achievement program. 75.31 $50,000 in fiscal year 2002 is for the Westbrook-Walnut 75.32 Grove high school student entrepreneurship project. 75.33 Any balance in the first year does not cancel but is 75.34 available in the second year. 75.35 Subd. 24. [LEARN AND EARN GRADUATION ACHIEVEMENT PROGRAM.] 75.36 For the learn and earn graduation achievement program according 76.1 to Minnesota Statutes, section 124D.32: 76.2 $725,000 ..... 2002 76.3 $725,000 ..... 2003 76.4 Any balance in the first year does not cancel but is 76.5 available in the second year. 76.6 Subd. 25. [ADVANCE ACHIEVEMENT AND ACCOUNTABILITY.] For 76.7 the department of children, families, and learning to develop 76.8 statewide assessments and provide assistance to school districts 76.9 that are not making adequate progress on the Minnesota 76.10 comprehensive assessments: 76.11 $3,000,000 ..... 2002 76.12 $3,000,000 ..... 2003 76.13 Subd. 26. [PERFORMANCE INCENTIVE POOL.] For a performance 76.14 incentive pool established under Minnesota Statutes, section 76.15 124D.945: 76.16 $2,500,000 ..... 2002 76.17 $5,000,000 ..... 2003 76.18 If the appropriations under this subdivision are 76.19 insufficient to fund all program participants, the participants 76.20 shall be prioritized by the commissioner by the date of receipt 76.21 of the application. Some participants may receive less than the 76.22 maximum per pupil amount available under Minnesota Statutes, 76.23 section 124D.945, subdivision 3. 76.24 Any balance in the first year does not cancel but is 76.25 available in the second year. 76.26 Subd. 27. [TEACHERS FOR THE 21ST CENTURY.] For the teacher 76.27 shortage initiative established under Minnesota Statutes, 76.28 section 124A.73: 76.29 $2,500,000 ..... 2002 76.30 $2,500,000 ..... 2003 76.31 Of this amount, $50,000 each year is to be used for 76.32 evaluation of this initiative. In the first year, the Minnesota 76.33 new teacher project under Laws 2000, chapter 489, article 6, 76.34 section 42, must be funded from this appropriation. 76.35 Any balance in the first year does not cancel but is 76.36 available in the second year. 77.1 Subd. 28. [COLLABORATIVE URBAN EDUCATOR RECRUITMENT AND 77.2 TRAINING PROGRAMS.] For grants to collaborative urban educator 77.3 recruitment and training programs: 77.4 $1,300,000 ..... 2002 77.5 $1,300,000 ..... 2003 77.6 $500,000 each year is for the Southeast Asian teacher 77.7 program at Concordia University, St. Paul; $400,000 each year is 77.8 for the collaborative urban educator program at the University 77.9 of St. Thomas; and $400,000 each year is for the center for 77.10 excellence in urban teaching at Hamline University. Grant 77.11 recipients must collaborate with urban and nonurban school 77.12 districts. 77.13 Any balance in the first year does not cancel but is 77.14 available in the second year. 77.15 Subd. 29. [MEADOWBROOK COLLABORATIVE HOUSING PROJECT.] For 77.16 a grant to independent school district No. 283, St. Louis Park, 77.17 for the Meadowbrook Collaborative Housing Project to enhance 77.18 youth outreach services and to provide educational and 77.19 recreational programming for at-risk youth through the 77.20 development of formal after school programming and weekend youth 77.21 activities: 77.22 $50,000 ..... 2002 77.23 The collaborative must include a cross-section of public 77.24 and private sector community representatives to develop services 77.25 to address specific community and social needs of children and 77.26 youth. 77.27 The funds may be made available to assist in staffing and 77.28 program development for the Meadowbrook Youth Center. The 77.29 center must focus on reducing truancy, developing assets for 77.30 at-risk youth, providing adult mentoring, and developing 77.31 programs for structured time in order to minimize opportunities 77.32 for adverse activities. 77.33 Subd. 30. [LIMITED ENGLISH PROFICIENCY STUDY.] For a study 77.34 of limited English proficiency programs: 77.35 $20,000 ..... 2002 77.36 The department of children, families, and learning must 78.1 study current practices and program models as well as best 78.2 practice research into effective methodology for instructing 78.3 students with limited English proficiency so that they may 78.4 participate fully in English language classroom content and 78.5 develop appropriate assessments and instruments to determine the 78.6 effectiveness of programs for students with limited English 78.7 proficiency. The instruments must address the effectiveness of 78.8 the curriculum being taught, the instruction being provided, the 78.9 professional development provided, the manner in which student 78.10 progress in acquiring English language proficiency is assessed, 78.11 as well as other factors pertinent to the instruction of 78.12 students with limited English proficiency. The study shall 78.13 include best practice research-based methods of instructing 78.14 students who are not literate in their native language. The 78.15 department shall make the results of the study as well as the 78.16 instruments available to teachers and other educators involved 78.17 in the design and implementation of programs for students with 78.18 limited English proficiency and promote the use of best 78.19 practices described in the study. The department must submit 78.20 its report to the education committees of the legislature by 78.21 February 15, 2002. 78.22 Sec. 33. [REPEALER.] 78.23 (a) Minnesota Statutes 2000, sections 120A.41; 124D.128, 78.24 subdivision 7; and 124D.85, are repealed. 78.25 (b) Laws 1999, chapter 241, article 3, section 5, as 78.26 amended by Laws 2000, chapter 489, article 4, section 9, is 78.27 repealed effective the day following final enactment. 78.28 ARTICLE 3 78.29 SPECIAL EDUCATION 78.30 Section 1. Minnesota Statutes 2000, section 122A.61, 78.31 subdivision 1, is amended to read: 78.32 Subdivision 1. [STAFF DEVELOPMENT REVENUE.] A district is 78.33 required to reserve an amount equal to at least two percent of 78.34 the basic revenue under section 126C.10, subdivision 2, for 78.35 in-service education for programs under section 120B.22, 78.36 subdivision 2, for staff development plans, including plans for 79.1 challenging instructional activities and experiences under 79.2 section 122A.60, and for curriculum development and programs, 79.3 other in-service education, teachers' workshops, teacher 79.4 conferences, the cost of substitute teachers staff development 79.5 purposes, preservice and in-service education for special 79.6 education professionals and paraprofessionals, and other related 79.7 costs for staff development efforts. A district may annually 79.8 waive the requirement to reserve their basic revenue under this 79.9 section if a majority vote of the licensed teachers in the 79.10 district and a majority vote of the school board agree to a 79.11 resolution to waive the requirement. A district in statutory 79.12 operating debt is exempt from reserving basic revenue according 79.13 to this section. Districts may expend an additional amount of 79.14 unreserved revenue for staff development based on their needs. 79.15 With the exception of amounts reserved for staff development 79.16 from revenues allocated directly to school sites, the board must 79.17 initially allocate 50 percent of the reserved revenue to each 79.18 school site in the district on a per teacher basis, which must 79.19 be retained by the school site until used. The board may retain 79.20 25 percent to be used for district wide staff development 79.21 efforts. The remaining 25 percent of the revenue must be used 79.22 to make grants to school sites for best practices methods. A 79.23 grant may be used for any purpose authorized under section 79.24 120B.22, subdivision 2, 122A.60, or for the costs of curriculum 79.25 development and programs, other in-service education, teachers' 79.26 workshops, teacher conferences, substitute teachers for staff 79.27 development purposes, and other staff development efforts, and 79.28 determined by the site professional development team. The site 79.29 professional development team must demonstrate to the school 79.30 board the extent to which staff at the site have met the 79.31 outcomes of the program. The board may withhold a portion of 79.32 initial allocation of revenue if the staff development outcomes 79.33 are not being met. 79.34 [EFFECTIVE DATE.] This section is effective the day 79.35 following final enactment. 79.36 Sec. 2. Minnesota Statutes 2000, section 125A.515, is 80.1 amended to read: 80.2 125A.515 [PLACEMENT OF CHILDREN WITH AND WITHOUT 80.3 DISABILITIES; APPROVAL OF EDUCATION PROGRAM.] 80.4 Subdivision 1. [PROGRAM APPROVAL.] The commissioner shall 80.5 approve education programs in care and treatment facilities for 80.6 placement of children with and without disabilities, including 80.7 detention centers, before being licensed by the department of 80.8 human services or the department of corrections. Education 80.9 programs in these facilities shall conform to state and federal 80.10 education laws, including the Individuals with Disabilities 80.11 Education Act under United States Code, title 20, chapter 33. 80.12 Subd. 2. [DEFINITION OF CARE AND TREATMENT 80.13 PLACEMENT.] Students with or without disabilities placed in the 80.14 following public or private facilities by someone other than the 80.15 district are considered to be placed for care and treatment: 80.16 (1) chemical dependency and other substance abuse treatment 80.17 centers; 80.18 (2) shelter care facilities; 80.19 (3) correctional facilities; 80.20 (4) residential treatment centers; 80.21 (5) group homes; 80.22 (6) mental health programs; and 80.23 (7) detention facilities. 80.24 Subd. 3. [RESPONSIBILITIES FOR PROVIDING EDUCATION.] (a) 80.25 The district in which the facility is located must provide 80.26 regular education, special education, or both, to students with 80.27 or without disabilities placed in a facility for care and 80.28 treatment. 80.29 (b) For those education programs operated by the department 80.30 of corrections, the district shall be the department of 80.31 corrections. The department of corrections may enter into an 80.32 agreement with a school district to share those responsibilities. 80.33 (c) Placement for care and treatment does not of itself 80.34 require special education services. 80.35 (d) The providing district and the care and treatment 80.36 center shall enter into a cooperative agreement for providing 81.1 educational services to students placed within the center. 81.2 Subd. 4. [WHEN EDUCATION IS REQUIRED.] Education services 81.3 must be provided to a student with or without disabilities 81.4 beginning within three days after entrance into the care and 81.5 treatment facility. The first three days may be used to screen 81.6 the student for educational, social, and safety issues. 81.7 Subd. 5. [WHEN DUE PROCESS BEGINS.] The number of school 81.8 days for determining due process procedures shall begin upon 81.9 enrollment in an education program. 81.10 Subd. 6. [SHORT-TERM AND LONG-TERM PLACEMENTS.] A 81.11 placement for care and treatment is a short-term placement if 81.12 the anticipated duration of the placement is less than 31 school 81.13 days. A placement for care and treatment is long term if it is 81.14 anticipated to extend beyond 30 days. 81.15 Subd. 7. [EDUCATION PROGRAMS FOR STUDENTS WITH AND WITHOUT 81.16 DISABILITIES PLACED IN SHORT-TERM AND LONG-TERM PROGRAMS FOR 81.17 CARE AND TREATMENT.] (a) When the student is enrolled in the 81.18 educational program without an educational record or individual 81.19 education program plan, the district's procedures must include 81.20 immediate contact with the resident district to determine 81.21 whether the student has been identified as a student with a 81.22 disability and to request the student's education records. 81.23 (b) If a student placed for care and treatment has been 81.24 identified as disabled and has a current individual education 81.25 program plan: 81.26 (1) the resident district must send a facsimile copy to the 81.27 providing agency within 24 hours of receiving the request; 81.28 (2) the providing agency must conduct an individual 81.29 education program plan meeting to reach an agreement about 81.30 continuing or modifying special education services in accordance 81.31 with the current individual education program plan goals and 81.32 objectives and to determine whether additional evaluations are 81.33 necessary; and 81.34 (3) at least the following people shall receive written 81.35 notice to attend the individual education program plan meeting: 81.36 (i) the person or agency placing the pupil; 82.1 (ii) the resident district; 82.2 (iii) the appropriate teachers and related services staff 82.3 from the providing district; 82.4 (iv) the parents; and 82.5 (v) when appropriate, the pupil. 82.6 This meeting may be held in conjunction with a meeting 82.7 called by a placing agency. 82.8 (c) For a student who has not been identified as a student 82.9 with a disability: 82.10 (1) a screening must be conducted to determine the 82.11 student's need for further education, social, emotional, and 82.12 behavioral evaluation. The screening must include a review of 82.13 the student's educational records; and 82.14 (2) based on the documented results of the screening, a 82.15 decision shall be made about the need for prereferral 82.16 interventions, the need for an appropriate evaluation to 82.17 determine special education eligibility, and whether an 82.18 evaluation can be completed before the student is transferred 82.19 out of the facility. When it is determined the evaluation 82.20 cannot be completed due to the student's limited length of stay, 82.21 the student's need for an evaluation shall be documented and 82.22 communicated to the responsible agency where the student is 82.23 transferred. 82.24 Subd. 8. [EDUCATION PROGRAMS FOR STUDENTS WITHOUT 82.25 DISABILITIES PLACED IN LONG-TERM PROGRAMS FOR CARE AND 82.26 TREATMENT.] (a) If the student does not meet the eligibility 82.27 criteria for special education, regular education services must 82.28 be provided in accordance with a personal education plan. 82.29 (b) A personal education plan shall include current 82.30 educational data, individual education goals, and an educational 82.31 transition plan for transition from the facility. 82.32 Subd. 9. [WHEN A STUDENT WITH OR WITHOUT DISABILITIES 82.33 LEAVES THE FACILITY.] If a student with or without disabilities 82.34 has been in a care and treatment facility for 15 or more days, 82.35 the providing district must prepare an exit report summarizing 82.36 the regular education, special education, evaluation, progress 83.1 on education goals, and service information and must send the 83.2 report to the resident district, the receiving facility, the 83.3 parent, and any appropriate social service agency. For students 83.4 with disabilities, this report must include a summary of current 83.5 levels of performance, progress, and any modifications made in 83.6 the pupil's individual education program plan or services. 83.7 Subd. 10. [MINIMUM EDUCATIONAL SERVICES REQUIRED.] At a 83.8 minimum, the district must provide: 83.9 (1) the education necessary, including summer school 83.10 services, for the student with or without disabilities to 83.11 progress in the appropriate grade level for the successful 83.12 completion of the courses, programs, or classes in which the 83.13 student or pupil would have been enrolled if the student or 83.14 pupil were not placed for care and treatment; and 83.15 (2) a school day, of the same length as the school day of 83.16 the district in which the facility is located, unless the unique 83.17 needs of the student, as documented through the individual 83.18 education program plan or personal education plan, in 83.19 consultation with treatment providers, requires an alteration in 83.20 the length of the school day. 83.21 Subd. 11. [PLACEMENT, SERVICES, AND DUE PROCESS 83.22 REQUIREMENTS FOR STUDENTS WITH AND WITHOUT DISABILITIES.] (a) 83.23 When a pupil's treatment and educational needs allow, education 83.24 shall be provided in a regular educational setting. The 83.25 determination of the amount and site of integrated services must 83.26 be a joint decision between parents, the treatment and education 83.27 staff, and, when possible, final educational placement decisions 83.28 must be made by the individual education program plan team of 83.29 the providing educational agency. Educational services shall be 83.30 provided in conformance with the least restrictive environment 83.31 principle of the Individuals with Disabilities Education Act 83.32 under United States Code, title 20, chapter 33. 83.33 (b) Districts shall develop alternative procedures for 83.34 implementing the legal requirements for observing the student in 83.35 a regular classroom and document previous interventions that 83.36 have been tried before the student placed for care and treatment 84.1 is identified as having a specific learning disability or an 84.2 emotional or behavioral disorder. These alternative procedures 84.3 must be included in the district's entrance criteria for special 84.4 education. The district and facility shall cooperatively 84.5 develop procedures to be used in emergency situations that 84.6 comply with the Minnesota Pupil Fair Dismissal Act under 84.7 sections 121A.40 to 121A.56, and other relevant state and 84.8 federal laws. 84.9 Subd. 12. [REIMBURSEMENT FOR EDUCATION SERVICES.] (a) 84.10 Education services provided to pupils and regular education 84.11 students who have been placed for care and treatment are 84.12 reimbursable in accordance with special education and general 84.13 education statutes. 84.14 (b) The special education services provided to pupils in 84.15 accordance with an individual education program plan are 84.16 reimbursable with special education revenue. 84.17 (c) The indirect or consultative services provided in 84.18 conjunction with regular education prereferral interventions and 84.19 assessment provided to regular education students suspected of 84.20 being disabled and who have demonstrated learning or behavioral 84.21 problems in a screening are reimbursable with special education 84.22 revenue. 84.23 (d) Regular education, including screening, provided to 84.24 students with or without disabilities is not reimbursable with 84.25 special education revenue. 84.26 Subd. 13. [STUDENTS UNABLE TO ATTEND SCHOOL BUT NOT PLACED 84.27 IN CARE AND TREATMENT FACILITIES.] Students with or without 84.28 disabilities who are absent from or predicted to be absent from 84.29 school for 15 consecutive or intermittent days, at home or in 84.30 facilities not licensed by the departments of corrections or 84.31 human services, are not students placed for care and treatment. 84.32 These students include students with and without disabilities 84.33 who are home due to accident or illness, in a hospital or other 84.34 medical facility, or in a day treatment center. These students 84.35 are entitled to education services through their district of 84.36 residence. 85.1 Sec. 3. Minnesota Statutes 2000, section 125A.76, 85.2 subdivision 1, is amended to read: 85.3 Subdivision 1. [DEFINITIONS.] For the purposes of this 85.4 section, the definitions in this subdivision apply. 85.5 (a) "Base year" for fiscal year 1998 and later fiscal years 85.6 means the second fiscal year preceding the fiscal year for which 85.7 aid will be paid. 85.8 (b) "Basic revenue" has the meaning given it in section 85.9 126C.10, subdivision 2. For the purposes of computing basic 85.10 revenue pursuant to this section, each child with a disability 85.11 shall be counted as prescribed in section 126C.05, subdivision 1. 85.12 (c) "Essential personnel" means teachers, related services, 85.13andsupport services staff providing direct services to 85.14 students, and support services staff carrying out due process 85.15 clerical work. 85.16 (d) "Average daily membership" has the meaning given it in 85.17 section 126C.05. 85.18 (e) "Program growth factor" means 1.08 for fiscal year 85.19 2002,and1.046 for fiscal year 2003, and 1.07 for fiscal year 85.20 2004 and later. 85.21 (f) "Cross-subsidy reduction factor" means 1.0 for fiscal 85.22 years 2002 and 2003, 1.022 for fiscal years 2004 and 2005, and 85.23 1.0 for fiscal year 2006 and later. 85.24 Sec. 4. Minnesota Statutes 2000, section 125A.76, 85.25 subdivision 4, is amended to read: 85.26 Subd. 4. [STATE TOTAL SPECIAL EDUCATION AID.] The state 85.27 total special education aid for fiscal year 2000 equals 85.28 $463,000,000. The state total special education aid for fiscal 85.29 year 2001 equals $474,000,000. The state total special 85.30 education aid for later fiscal years equals: 85.31 (1) the state total special education aid for the preceding 85.32 fiscal year; times 85.33 (2) the program growth factor; times 85.34 (3) the cross-subsidy reduction factor; times 85.35 (4) the ratio of the state total average daily membership 85.36 for the current fiscal year to the state total average daily 86.1 membership for the preceding fiscal year. 86.2 Sec. 5. Minnesota Statutes 2000, section 125A.79, 86.3 subdivision 1, is amended to read: 86.4 Subdivision 1. [DEFINITIONS.] For the purposes of this 86.5 section, the definitions in this subdivision apply. 86.6 (a) "Unreimbursed special education cost" means the sum of 86.7 the following: 86.8 (1) expenditures for teachers' salaries, contracted 86.9 services, supplies, equipment, and transportation services 86.10 eligible for revenue under section 125A.76; plus 86.11 (2) expenditures for tuition bills received under sections 86.12 125A.03 to 125A.24 and 125A.65 for services eligible for revenue 86.13 under section 125A.76, subdivision 2; minus 86.14 (3) revenue for teachers' salaries, contracted services, 86.15 supplies, and equipment under section 125A.76; minus 86.16 (4) tuition receipts under sections 125A.03 to 125A.24 and 86.17 125A.65 for services eligible for revenue under section 125A.76, 86.18 subdivision 2. 86.19 (b) "General revenue" means for fiscal year 1996, the sum 86.20 of the general education revenue according to section 126C.10, 86.21 subdivision 1, as adjusted according to section 127A.47, 86.22 subdivision 7, plus the total referendum revenue according to 86.23 section 126C.17, subdivision 4. For fiscal years 1997 and 86.24 later, "general revenue" means the sum of the general education 86.25 revenue according to section 126C.10, subdivision 1, as adjusted 86.26 according to section 127A.47, subdivisions 7 and 8, plus the 86.27 total referendum revenue minus transportation sparsity revenue 86.28 minus total operating capital revenue. 86.29 (c) "Average daily membership" has the meaning given it in 86.30 section 126C.05. 86.31 (d) "Program growth factor" means 1.044 for fiscal year 86.32 2002and, 1.02 for fiscal year 2003, and 1.06 for fiscal year 86.33 2004 and later. 86.34 Sec. 6. Minnesota Statutes 2000, section 125A.79, 86.35 subdivision 7, is amended to read: 86.36 Subd. 7. [DISTRICT SPECIAL EDUCATION EXCESS COST AID.] (a) 87.1 A district's special education excess cost aid for fiscal year 87.2 2002 and later equals the state total special education excess 87.3 cost aid times the ratio of the district's initial excess cost 87.4 aid to the state total initial excess cost aid. 87.5 (b) In order to be eligible for aid under this subdivision, 87.6 a district must document and bill third-party revenue sources 87.7 for health-related services on a child's individual education 87.8 plan, individual interagency intervention plan, or 87.9 individualized family service plan. 87.10 [EFFECTIVE DATE.] This section is effective July 1, 2002. 87.11 Sec. 7. Laws 2000, chapter 489, article 3, section 24, is 87.12 amended to read: 87.13 Sec. 24. [SPECIAL EDUCATION CROSS-SUBSIDY REVENUE.] 87.14 (a) For fiscal year 2000, a school district shall receive 87.15 an amount of revenue equal to $8.15 times the district's 87.16 adjusted marginal cost pupil units. 87.17 (b) For fiscal year 2001, a school district shall receive 87.18 an amount of revenue equal to $19 times the district's adjusted 87.19 marginal cost pupil units. Special education cross-subsidy 87.20 revenue must be used to pay for a district's unfunded special 87.21 education costs that are currently cross-subsidized by a 87.22 district's general education revenue. 87.23 (c) The fiscal year 2001 revenue is paid entirely in fiscal 87.24 year 2001 based on estimated data. By January 31, 2002, the 87.25 department of children, families, and learning shall recalculate 87.26 the revenue for each district using actual data, and shall 87.27 adjust the general education aid paid to school districts for 87.28 fiscal year 2002 by the amount of the difference between the 87.29 estimated revenue and the actual revenue. 87.30 Sec. 8. [IDENTIFY REVENUE OPTIONS FOR COORDINATION OF 87.31 SERVICES.] By July 1, 2002, the commissioner of children, 87.32 families, and learning shall, in conjunction with the 87.33 commissioner of human services, develop a plan to identify 87.34 possible revenue options from medical assistance funds, 87.35 including targeted case management, and other appropriate 87.36 federal funds and develop a recommended procedure for use at the 88.1 local level for the purpose of coordination of services needed 88.2 to implement the individual interagency intervention plan 88.3 required in Minnesota Statutes, section 125A.023, subdivision 4, 88.4 paragraph (b), clause (4). 88.5 Sec. 9. [STATE BILLING PROCESS REPORT AND PLAN.] 88.6 The commissioner of children, families, and learning, in 88.7 consultation with the commissioner of human services, shall 88.8 develop a central statewide billing process for school districts 88.9 to use to process third-party bills, including medical 88.10 assistance. The commissioner of children, families, and 88.11 learning shall report to the education committees of the 88.12 legislature by February 1, 2002, on recommendations for a 88.13 statewide billing system to be implemented by January 1, 2003. 88.14 Sec. 10. [BOARD OF TEACHING.] 88.15 The board of teaching must review and report to the 88.16 education committees of the 2002 legislature on rules that would 88.17 require board-approved teacher preparation programs to include 88.18 in their teacher preparation programs information on special 88.19 education laws, teaching strategies, and positive behavior 88.20 interventions. 88.21 Sec. 11. [APPROPRIATIONS.] 88.22 Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND 88.23 LEARNING.] The sums indicated in this section are appropriated 88.24 from the general fund to the department of children, families, 88.25 and learning for the fiscal years designated. 88.26 Subd. 2. [SPECIAL EDUCATION AID.] For special education 88.27 aid according to Minnesota Statutes, section 125A.75: 88.28 $507,448,000 ..... 2002 88.29 $531,481,000 ..... 2003 88.30 The 2002 appropriation includes $47,400,000 for 2001 and 88.31 $460,048,000 for 2002. 88.32 The 2003 appropriation includes $51,116,000 for 2002 and 88.33 $480,365,000 for 2003. 88.34 Subd. 3. [AID FOR CHILDREN WITH A DISABILITY.] For aid 88.35 according to Minnesota Statutes, section 125A.75, subdivision 3, 88.36 for children with a disability placed in residential facilities 89.1 within the district boundaries for whom no district of residence 89.2 can be determined: 89.3 $1,877,000 ..... 2002 89.4 $2,033,000 ..... 2003 89.5 If the appropriation for either year is insufficient, the 89.6 appropriation for the other year is available. Any balance in 89.7 the first year does not cancel but is available in the second 89.8 year. 89.9 Subd. 4. [TRAVEL FOR HOME-BASED SERVICES.] For aid for 89.10 teacher travel for home-based services according to Minnesota 89.11 Statutes, section 125A.75, subdivision 1: 89.12 $135,000 ..... 2002 89.13 $138,000 ..... 2003 89.14 The 2002 appropriation includes $13,000 for 2001 and 89.15 $122,000 for 2002. 89.16 The 2003 appropriation includes $13,000 for 2002 and 89.17 $125,000 for 2003. 89.18 Subd. 5. [SPECIAL EDUCATION EXCESS COST AID.] For excess 89.19 cost aid: 89.20 $102,665,000 ..... 2002 89.21 $104,773,000 ..... 2003 89.22 The 2002 appropriation includes $9,889,000 for 2001 and 89.23 $92,776,000 for 2002. 89.24 The 2003 appropriation includes $10,308,000 for 2002 and 89.25 $94,465,000 for 2003. 89.26 Subd. 6. [LITIGATION COSTS.] For paying the costs a 89.27 district incurs under Minnesota Statutes, section 125A.75, 89.28 subdivision 8: 89.29 $375,000 ..... 2002 89.30 $375,000 ..... 2003 89.31 Subd. 7. [TRANSITION PROGRAMS; STUDENTS WITH 89.32 DISABILITIES.] For aid for transition programs for pupils with 89.33 disabilities according to Minnesota Statutes, section 124D.454: 89.34 $8,954,000 ..... 2002 89.35 $8,939,000 ..... 2003 89.36 The 2002 appropriation includes $896,000 for 2001 and 90.1 $8,058,000 for 2002. 90.2 The 2003 appropriation includes $895,000 for 2002 and 90.3 $8,044,000 for 2003. 90.4 Subd. 8. [COURT-PLACED SPECIAL EDUCATION REVENUE.] For 90.5 reimbursing serving school districts for unreimbursed eligible 90.6 expenditures attributable to children placed in the serving 90.7 school district by court action under Minnesota Statutes, 90.8 section 125A.79, subdivision 4: 90.9 $350,000 ..... 2002 90.10 $350,000 ..... 2003 90.11 Subd. 9. [OUT-OF-STATE TUITION SPECIAL EDUCATION.] For 90.12 special education out-of-state tuition according to Minnesota 90.13 Statutes, section 125A.79, subdivision 8: 90.14 $250,000 ..... 2002 90.15 $250,000 ..... 2003 90.16 Subd. 10. [WEB-BASED, INDIVIDUAL INTERAGENCY INTERVENTION 90.17 PLAN.] For ongoing development, administration, and interagency 90.18 training costs associated with a statewide, Web-based 90.19 application for the individual interagency intervention plan 90.20 required in Minnesota Statutes, section 125A.023: 90.21 $500,000 ..... 2002 90.22 $500,000 ..... 2003 90.23 Subd. 11. [HIV/STI EDUCATION.] For regional training sites 90.24 for HIV/STI education in schools established under Laws 1997, 90.25 First Special Session chapter 4, article 6, section 18: 90.26 $550,000 ..... 2002 90.27 This appropriation shall be added to the agency's base 90.28 budget. Of this amount, $500,000 must be used for continued 90.29 development of the existing sites and $50,000 for department of 90.30 children, families, and learning technical assistance and 90.31 contract management services. This appropriation is available 90.32 until June 30, 2003. 90.33 ARTICLE 4 90.34 FACILITIES AND TECHNOLOGY; FUND TRANSFERS 90.35 Section 1. Minnesota Statutes 2000, section 123B.53, 90.36 subdivision 2, is amended to read: 91.1 Subd. 2. [ELIGIBILITY.] (a) The following portions of a 91.2 district's debt service levy qualify for debt service 91.3 equalization: 91.4 (1) debt service for repayment of principal and interest on 91.5 bonds issued before July 2, 1992; 91.6 (2) debt service for bonds refinanced after July 1, 1992, 91.7 if the bond schedule has been approved by the commissioner and, 91.8 if necessary, adjusted to reflect a 20-year maturity schedule; 91.9 and 91.10 (3) debt service for bonds issued after July 1, 1992, for 91.11 construction projects that have received a positive review and 91.12 comment according to section 123B.71, if the commissioner has 91.13 determined that the district has met the criteria under section 91.14 126C.69, subdivision 3,except section 126C.69, subdivision 3,91.15paragraph (a), clause (2),and if the bond schedule has been 91.16 approved by the commissioner and, if necessary, adjusted to 91.17 reflect a 20-year maturity schedule. 91.18 (b) The criterion described in section 126C.69, subdivision 91.19 3, paragraph (a), clause (9), does not apply to bonds authorized 91.20 by elections held before July 1, 1992. 91.21 (c) For the purpose of this subdivision the department 91.22 shall determine the eligibility for sparsity at the location of 91.23 the new facility, or the site of the new facility closest to the 91.24 nearest operating school if there is more than one new facility. 91.25 (d) Notwithstanding paragraphs (a) to (c), debt service for 91.26 repayment of principal and interest on bonds issued after July 91.27 1, 1997, does not qualify for debt service equalization aid 91.28 unless the primary purpose of the facility is to serve students 91.29 in kindergarten through grade 12. 91.30 Sec. 2. Minnesota Statutes 2000, section 123B.53, 91.31 subdivision 4, is amended to read: 91.32 Subd. 4. [DEBT SERVICE EQUALIZATION REVENUE.] (a) The debt 91.33 service equalization revenue of a district equals the sum of the 91.34 first tier debt service equalization revenue and the second tier 91.35 debt service equalization revenue. 91.36 (b) The first tier debt service equalization revenue of a 92.1 district equals the greater of zero or the eligible debt service 92.2 revenue minus the amount raised by a levy of1214 percent times 92.3 the adjusted net tax capacity of the district minus the second 92.4 tier debt service equalization revenue of the district. 92.5 (c) The second tier debt service equalization revenue of a 92.6 district equals the greater of zero or the eligible debt service 92.7 revenue minus the amount raised by a levy of 24 percent times 92.8 the adjusted net tax capacity of the district. 92.9 Sec. 3. Minnesota Statutes 2000, section 123B.53, 92.10 subdivision 5, is amended to read: 92.11 Subd. 5. [EQUALIZED DEBT SERVICE LEVY.]To obtain debt92.12service equalization revenue, a district must levy an amount not92.13to exceed the district's debt service equalization revenue(a) 92.14 The equalized debt service levy of a district equals the sum of 92.15 the first tier equalized debt service levy and the second tier 92.16 equalized debt service levy. 92.17 (b) A district's first tier equalized debt service levy 92.18 equals the district's first tier debt service equalization 92.19 revenue times the lesser of one or the ratio of: 92.20 (1) the quotient derived by dividing the adjusted net tax 92.21 capacity of the district for the year before the year the levy 92.22 is certified by the adjusted pupil units in the district for the 92.23 school year ending in the year prior to the year the levy is 92.24 certified; to 92.25 (2)$4,000$........ 92.26 (c) A district's second tier equalized debt service levy 92.27 equals the district's second tier debt service equalization 92.28 revenue times the lesser of one or the ratio of: 92.29 (1) the quotient derived by dividing the adjusted net tax 92.30 capacity of the district for the year before the year the levy 92.31 is certified by the adjusted pupil units in the district for the 92.32 school year ending in the year prior to the year the levy is 92.33 certified; to 92.34 (2) $....... 92.35 Sec. 4. Minnesota Statutes 2000, section 123B.54, is 92.36 amended to read: 93.1 123B.54 [DEBT SERVICE APPROPRIATION.] 93.2 (a)$33,141,000 in fiscal year 2000, $29,400,000 in fiscal93.3year 2001, $26,934,000$....... in fiscal year2002,2004 93.4 and$24,540,000$....... in fiscal year20032005 and each year 93.5 thereafter is appropriated from the general fund to the 93.6 commissioner of children, families, and learning for payment of 93.7 debt service equalization aid under section 123B.53. 93.8 (b) The appropriations in paragraph (a) must be reduced by 93.9 the amount of any money specifically appropriated for the same 93.10 purpose in any year from any state fund. 93.11 Sec. 5. Minnesota Statutes 2000, section 123B.57, 93.12 subdivision 8, is amended to read: 93.13 Subd. 8. [HEALTH, SAFETY, AND ENVIRONMENTAL MANAGEMENT 93.14 COST.] (a) A district's cost for health, safety, and 93.15 environmental management is limited to the lesser of: 93.16 (1) actual cost to implement their plan; or 93.17 (2) an amount determined by the commissioner, based on 93.18 enrollment, building age, and size. 93.19 (b) The department may contract with regional service 93.20 organizations, private contractors, Minnesota safety council, or 93.21 state agencies to provide management assistance to school 93.22 districts for health and safety capital projects. Management 93.23 assistance is the development of written programs for the 93.24 identification, recognition and control of hazards, and 93.25 prioritization and scheduling of district health and safety 93.26 capital projects. The department shall not exclude private 93.27 contractors from the opportunity to provide any health and 93.28 safety services to school districts. 93.29 (c) Notwithstanding paragraph (b), the department may 93.30 approve revenue, up to the limit defined in paragraph (a) for 93.31 districts having an approved health, safety, and environmental 93.32 management plan that uses district staff to accomplish 93.33 coordination and provided services. 93.34 Sec. 6. Minnesota Statutes 2000, section 123B.59, 93.35 subdivision 1, is amended to read: 93.36 Subdivision 1. [TO QUALIFY.] An independent or special 94.1 school district qualifies to participate in the alternative 94.2 facilities bonding and levy program if the district has: 94.3 (1) more than 66 students per grade; 94.4 (2) over 1,850,000 square feet of space;94.5(3)and the average age of building space is 15 years or 94.6 older or over 1,500,000 square feet and the average age of 94.7 building space is 35 years or older; 94.8(4)(3) insufficient funds from projected health and safety 94.9 revenue and capital facilities revenue to meet the requirements 94.10 for deferred maintenance, to make accessibility improvements, or 94.11 to make fire, safety, or health repairs; and 94.12(5)(4) a ten-year facility plan approved by the 94.13 commissioner according to subdivision 2. 94.14 [EFFECTIVE DATE.] This section is effective for revenue for 94.15 fiscal year 2004 and later. 94.16 Sec. 7. Minnesota Statutes 2000, section 125B.21, is 94.17 amended to read: 94.18 125B.21 [MINNESOTA EDUCATION TELECOMMUNICATIONS COUNCIL.] 94.19 Subdivision 1. [STATE COUNCIL MEMBERSHIP.] The membership 94.20 of the Minnesota education telecommunications council 94.21 established in Laws 1993, First Special Session chapter 2, is 94.22 expanded to include representatives of elementary and secondary 94.23 education. The membership shall consist of three 94.24 representatives from the University of Minnesota; three 94.25 representatives of the board of trustees for Minnesota state 94.26 colleges and universities; one representative of the higher 94.27 education services offices; one representative appointed by the 94.28 private college council; one representative selected by the 94.29 commissioner of administration; eight representatives selected 94.30 by the commissioner of children, families, and learning, at 94.31 least one of which must come from each of the six higher 94.32 education telecommunication regions; a representative from the 94.33 office of technology; two members each from the senate and the 94.34 house of representatives selected by the subcommittee on 94.35 committees of the committee on rules and administration of the 94.36 senate and the speaker of the house, one member from each body 95.1 must be a member of the minority party; and three 95.2 representatives of libraries, one representing regional public 95.3 libraries, one representing multitype libraries, and one 95.4 representing community libraries, selected by the governor; and 95.5 two members, one selected from and representing the higher 95.6 education regional coordinators and one selected from and 95.7 representing the kindergarten through grade 12 cluster regions. 95.8 The council shall serve as a forum to establish and advocate for 95.9 a statewide vision and plans for the use of distance learning 95.10 technologies, including: 95.11 (1)develop a statewide vision and plans for the use of95.12distance learning technologies and provide leadership in95.13implementing the use of such technologiesthe coordination and 95.14 collaboration of distance learning opportunities; 95.15 (2)recommend educational policy relating to95.16telecommunicationsthe implementation of the use of distance 95.17 learning technologies; 95.18 (3)determine priorities for usethe collaboration of 95.19 distance learning users; 95.20 (4)oversee coordination of networks for post-secondary95.21campuses, kindergarten through grade 12 education, and regional95.22and community librariesthe implementation of educational policy 95.23 relating to telecommunications; 95.24 (5)review application for telecommunications access grants95.25under Minnesota Statutes, section 125B.20, and recommend to the95.26department grants for fundingthe exchange of ideas; 95.27 (6)determine priorities for grant funding proposalsthe 95.28 communications with state government and related agencies and 95.29 entities;and95.30 (7)work with the information policy office to ensure95.31consistency of the operation of the learning network with95.32standards of an open system architecturethe coordination of 95.33 networks for post-secondary campuses, kindergarten through grade 95.34 12 education, and regional and community libraries; and 95.35 (8) the promotion of consistency of the operation of the 95.36 learning network with standards of an open system architecture. 96.1The council shall consult with representatives of the96.2telecommunication industry in implementing this section.96.3Subd. 2. [DISTRICT COUNCIL MEMBERSHIP.] District96.4organizations that coordinate applications for telecommunication96.5access grants are encouraged to become members of the regional96.6higher education telecommunication council in their area.96.7Subd. 3. [CRITERIA.] In addition to responsibilities of96.8the council under Laws 1993, First Special Session chapter 2, as96.9amended, the telecommunications council shall evaluate grant96.10applications under section 125B.20 and applications from96.11district organizations using the following criteria:96.12(1) evidence of cooperative arrangements with other96.13post-secondary institutions, school districts, and community and96.14regional libraries in the geographic region;96.15(2) plans for shared classes and programs;96.16(3) avoidance of network duplication;96.17(4) evidence of efficiencies to be achieved in delivery of96.18instruction due to use of telecommunications;96.19(5) a plan for development of a list of all courses96.20available in the region for delivery at a distance;96.21(6) a plan for coordinating and scheduling courses; and96.22(7) a plan for evaluation of costs, access, and outcomes.96.23 Sec. 8. Minnesota Statutes 2000, section 125B.25, 96.24 subdivision 1, is amended to read: 96.25 Subdivision 1. [COSTS TO BE SUBMITTED.] A district shall 96.26 submit its outstanding ongoing or recurring telecommunications 96.27 access costs associated with datalinesand videolinks96.28 connections to the department of children, families, and 96.29 learning. Costs of telecommunications hardware or equipment 96.30 must not be included in the costs submitted by districts to the 96.31 department. A district may include installation charges 96.32 associated with new lines or upgraded lines, but may not include 96.33 costs of hardware or equipment. 96.34 Sec. 9. Minnesota Statutes 2000, section 125B.25, 96.35 subdivision 2, is amended to read: 96.36 Subd. 2. [GUARANTEED MINIMUM ACCESS.] (a) The ongoing or 97.1 recurring telecommunications access costs submitted to the 97.2 department by each district under this section are limited to 97.3 the operation costs equal to the greater of: 97.4 (1) one datalineor videolinkconnection that relies on a 97.5 transport medium that operates at a minimum speed of 1.544 97.6 megabytes per second for each elementary school, middle school, 97.7 or high school under section 120A.05, subdivisions 9, 11, and 97.8 13; or 97.9 (2) one datalineor videolinkconnection that relies on a 97.10 transport medium that operates at a minimum speed of 1.544 97.11 megabytes per second for each district. 97.12 (b) A district may include costs associated with 97.13 cooperative arrangements with other post-secondary institutions, 97.14 school districts, and community and regional libraries in its 97.15 geographic region. A district may continue to purchase its 97.16 ongoing or recurring telecommunications access services through 97.17 existing contracts. 97.18 Sec. 10. Minnesota Statutes 2000, section 125B.25, 97.19 subdivision 6, is amended to read: 97.20 Subd. 6. [REVENUE FOR CHARTER SCHOOLS.] (a) Each charter 97.21 school shall receive revenue equal to the greater of: 97.22 (1) the per marginal cost pupil unit amount for the 97.23 district in which the charter school is located as determined by 97.24 the commissioner according to subdivision 4; or 97.25 (2) $5; 97.26 times the adjusted marginal cost pupil units for that year, 97.27 times 65 percent. 97.28 (b) A charter school's revenue under this subdivision must 97.29 be used to pay for ongoing or recurring telecommunication access 97.30 costs, including access to datalines,and videolines97.31 connections,orincluding Internet access. 97.32 Sec. 11. Minnesota Statutes 2000, section 125B.25, 97.33 subdivision 9, is amended to read: 97.34 Subd. 9. [EXPIRATION.] This section expires on July 1, 97.3520022003. 97.36 [EFFECTIVE DATE.] This section is effective the day 98.1 following final enactment. 98.2 Sec. 12. Minnesota Statutes 2000, section 126C.40, 98.3 subdivision 1, is amended to read: 98.4 Subdivision 1. [TO LEASE BUILDING OR LAND.] (a) When a 98.5 district finds it economically advantageous to rent or lease a 98.6 building or land for any instructional purposes or for school 98.7 storage or furniture repair, and it determines that the 98.8 operating capital revenue authorized under section 126C.10, 98.9 subdivision 13, is insufficient for this purpose, it may apply 98.10 to the commissioner for permission to make an additional capital 98.11 expenditure levy for this purpose. An application for 98.12 permission to levy under this subdivision must contain financial 98.13 justification for the proposed levy, the terms and conditions of 98.14 the proposed lease, and a description of the space to be leased 98.15 and its proposed use. 98.16 (b) The criteria for approval of applications to levy under 98.17 this subdivision must include: the reasonableness of the price, 98.18 the appropriateness of the space to the proposed activity, the 98.19 feasibility of transporting pupils to the leased building or 98.20 land, conformity of the lease to the laws and rules of the state 98.21 of Minnesota, and the appropriateness of the proposed lease to 98.22 the space needs and the financial condition of the district. 98.23 The commissioner must not authorize a levy under this 98.24 subdivision in an amount greater than the cost to the district 98.25 of renting or leasing a building or land for approved purposes. 98.26 The proceeds of this levy must not be used for custodial or 98.27 other maintenance services. A district may not levy under this 98.28 subdivision for the purpose of leasing or renting a 98.29 district-owned building or site to itself. 98.30 (c) For agreements finalized after July 1, 1997, a district 98.31 may not levy under this subdivision for the purpose of leasing: 98.32 (1) a newly constructed building used primarily for regular 98.33 kindergarten, elementary, or secondary instruction; or (2) a 98.34 newly constructed building addition or additions used primarily 98.35 for regular kindergarten, elementary, or secondary instruction 98.36 that contains more than 20 percent of the square footage of the 99.1 previously existing building. 99.2 (d) Notwithstanding paragraph (b), a district may levy 99.3 under this subdivision for the purpose of leasing or renting a 99.4 district-owned building or site to itself only if the amount is 99.5 needed by the district to make payments required by a lease 99.6 purchase agreement, installment purchase agreement, or other 99.7 deferred payments agreement authorized by law, and the levy 99.8 meets the requirements of paragraph (c). A levy authorized for 99.9 a district by the commissioner under this paragraph may be in 99.10 the amount needed by the district to make payments required by a 99.11 lease purchase agreement, installment purchase agreement, or 99.12 other deferred payments agreement authorized by law, provided 99.13 that any agreement include a provision giving the school 99.14 districts the right to terminate the agreement annually without 99.15 penalty. 99.16 (e) The total levy under this subdivision for a district 99.17 for any year must not exceed $100 times the resident pupil units 99.18 for the fiscal year to which the levy is attributable. 99.19 (f) For agreements for which a review and comment have been 99.20 submitted to the department of children, families, and learning 99.21 after April 1, 1998, the term "instructional purpose" as used in 99.22 this subdivision excludes expenditures on stadiums. 99.23 (g) The commissioner of children, families, and learning 99.24 may authorize a school district to exceed the limit in paragraph 99.25 (e) if the school district petitions the commissioner for 99.26 approval. The commissioner shall grant approval to a school 99.27 district to exceed the limit in paragraph (e) for not more than 99.28 five years if the district meets the following criteria: 99.29 (1) the school district has been experiencing pupil 99.30 enrollment growth in the preceding five years; 99.31 (2) the purpose of the increased levy is in the long-term 99.32 public interest; 99.33 (3) the purpose of the increased levy promotes colocation 99.34 of government services; and 99.35 (4) the purpose of the increased levy is in the long-term 99.36 interest of the district by avoiding over construction of school 100.1 facilities. 100.2 (h) For agreements for which a review and comment have been 100.3 submitted to the department of children, families, and learning 100.4 after April 1, 2001, the term "instructional purpose" as used in 100.5 this subdivision excludes expenditures on arenas. 100.6 Sec. 13. Minnesota Statutes 2000, section 126C.63, is 100.7 amended by adding a subdivision to read: 100.8 Subd. 8a. [MAXIMUM EFFORT DEBT SERVICE LEVY.] Districts 100.9 granted a capital loan after January 1, 2001, must make an 100.10 additional general fund levy equal to the amount determined for 100.11 the next fiscal year according to the amortization schedule 100.12 certified under section 126C.72, subdivision 5. The levy is 100.13 eligible for debt service equalization aid according to section 100.14 123B.53. The district's general education aid for the next 100.15 fiscal year must be reduced by the amount of the net levy 100.16 remaining after the debt service equalization aid is subtracted. 100.17 Sec. 14. Minnesota Statutes 2000, section 126C.69, 100.18 subdivision 3, is amended to read: 100.19 Subd. 3. [DISTRICT REQUEST FOR REVIEW AND COMMENT.] A 100.20 district or a joint powers district that intends to apply for a 100.21 capital loan must submit a proposal to the commissioner for 100.22 review and comment according to section 123B.71 by July 1 of an 100.23 odd-numbered year. The commissioner shall prepare a review and 100.24 comment on the proposed facility, regardless of the amount of 100.25 the capital expenditure required to construct the facility. In 100.26 addition to the information provided under section 123B.71, 100.27 subdivision 9, the commissioner shall require that predesign 100.28 packages comparable to those required under section 16B.335 be 100.29 prepared by the applicant school district. The predesign 100.30 packages must be sufficient to define the scope, cost, and 100.31 schedule of the project and must demonstrate that the project 100.32 has been analyzed according to appropriate space needs standards 100.33 and also consider the following criteria in determining whether 100.34 to make a positive review and comment. 100.35 (a) To grant a positive review and comment the commissioner 100.36 shall determine that all of the following conditions are met: 101.1 (1) the facilities are needed for pupils for whom no 101.2 adequate facilities exist or will exist; 101.3 (2)the district will serve, on average, at least 80 pupils101.4per grade or is eligible for elementary or secondary sparsity101.5revenuethere is evidence to indicate that the facilities will 101.6 have a useful public purpose for at least the term of the bonds; 101.7 (3) no form of cooperation with another district would 101.8 provide the necessary facilities; 101.9 (4) the facilities are comparable in size and quality to 101.10 facilities recently constructed in other districts that have 101.11 similar enrollments; 101.12 (5) the facilities are comparable in size and quality to 101.13 facilities recently constructed in other districts that are 101.14 financed without a capital loan; 101.15 (6) the district is projected tomaintain or increase its101.16average daily membership over the next five years or is eligible101.17for elementary or secondary sparsity revenuehave adequate funds 101.18 in its general operating budget to support a quality education 101.19 for its students for at least the next five years; 101.20 (7) the current facility poses a threat to the life, 101.21 health, and safety of pupils, and cannot reasonably be brought 101.22 into compliance with fire, health, or life safety codes; 101.23 (8) the district has made a good faith effort, as evidenced 101.24 by its maintenance expenditures, to adequately maintain the 101.25 existing facility during the previous ten years and to comply 101.26 with fire, health, and life safety codes and state and federal 101.27 requirements for handicapped accessibility; 101.28 (9) the district has made a good faith effort to encourage 101.29 integration of social service programs within the new facility; 101.30and101.31 (10) evaluations by boards of adjacent districts have been 101.32 received; and 101.33 (11) the proposal includes a comprehensive technology plan 101.34 that assures information access for the students, parents, and 101.35 community. 101.36 (b) The commissioner may grant a negative review and 102.1 comment if: 102.2 (1) the state demographer has examined the population of 102.3 the communities to be served by the facility and determined that 102.4 the communities have not grown during the previous five years; 102.5 (2) the state demographer determines that the economic and 102.6 population bases of the communities to be served by the facility 102.7 are not likely to grow or to remain at a level sufficient, 102.8 during the next ten years, to ensure use of the entire facility; 102.9 (3) the need for facilities could be met within the 102.10 district or adjacent districts at a comparable cost by leasing, 102.11 repairing, remodeling, or sharing existing facilities or by 102.12 using temporary facilities; 102.13 (4) the district plans do not include cooperation and 102.14 collaboration with health and human services agencies and other 102.15 political subdivisions; or 102.16 (5) if the application is for new construction, an existing 102.17 facility that would meet the district's needs could be purchased 102.18 at a comparable cost from any other source within the area. 102.19 Sec. 15. Minnesota Statutes 2000, section 126C.69, 102.20 subdivision 9, is amended to read: 102.21 Subd. 9. [LOAN AMOUNT LIMITS.] (a) A loan must not be 102.22 recommended for approval for a district exceeding an amount 102.23 computed as follows: 102.24 (1) the amount requested by the district under subdivision 102.25 6; 102.26 (2) plus the aggregate principal amount of general 102.27 obligation bonds of the district outstanding on June 30 of the 102.28 year following the year the application was received, not 102.29 exceeding the limitation on net debt of the districtinon 102.30 December 1 of the year the application is received under section 102.31 475.53, subdivision 4, or 363 percent of its adjusted net tax102.32capacity as most recently determined, whichever is less; 102.33 (3) less the maximum net debt permissible for the district 102.34 on December 1 of the year the application is received, under the 102.35 limitation in section 475.53, subdivision 4, or 363 percent of102.36its adjusted net tax capacity as most recently determined,103.1whichever is less; 103.2 (4) less any amount by which the amount voted exceeds the 103.3 total cost of the facilities for which the loan is granted. 103.4 (b) The loan may be approved in an amount computed as 103.5 provided in paragraph (a), clauses (1) to (3), subject to later 103.6 reduction according to paragraph (a), clause (4). 103.7 Sec. 16. Minnesota Statutes 2000, section 126C.69, 103.8 subdivision 12, is amended to read: 103.9 Subd. 12. [CONTRACT.] (a) Each capital loan must be 103.10 evidenced by a contract between the district and the state 103.11 acting through the commissioner. The contract must obligate the 103.12 state to reimburse the district, from the maximum effort school 103.13 loan fund, for eligible capital expenses for construction of the 103.14 facility for which the loan is granted, an amount computed as 103.15 provided in subdivision 9. The commissioner must receive from 103.16 the district a certified resolution of the board estimating the 103.17 costs of construction and reciting that contracts for 103.18 construction of the facilities for which the loan is granted 103.19 have been awarded and that bonds of the district have been 103.20 issued and sold in the amount necessary to pay all estimated 103.21 costs of construction in excess of the amount of the loan. The 103.22 contract must obligate the district to repay the loan out of the 103.23 excesses of its maximum effort debt service levy over its 103.24 required debt service levy, including interest at a rate equal 103.25 to the weighted average annual rate payable on Minnesota state 103.26 school loan bonds issued for the project and disbursed to the 103.27 districts on a reimbursement basis, but in no event less than 103.28 3-1/2 percent per year on the principal amount from time to time 103.29 unpaid. 103.30 (b) The district must each year, as long as it is indebted 103.31 to the state, levy for debt service (i) the amount of its 103.32 maximum effort debt service levy or (ii) the amount of its 103.33 required debt service levy, whichever is greater, except as the 103.34 required debt service levy may be reduced by a loan under 103.35 section 126C.68. The district shall remit payments to the 103.36 commissioner according to section 126C.71. 104.1 (c) The commissioner shall supervise the collection of 104.2 outstanding accounts due the fund and may, by notice to the 104.3 proper county auditor, require the maximum levy to be made as 104.4 required in this subdivision. Interest on capital loans must be 104.5 paid on December 15 of the year after the year the loan is 104.6 granted and annually in later years. By September 30, the 104.7 commissioner shall notify the county auditor of each county 104.8 containing taxable property situated within the district of the 104.9 amount of the maximum effort debt service levy of the district 104.10 for that year. The county auditor or auditors shall extend upon 104.11 the tax rolls an ad valorem tax upon all taxable property within 104.12 the district in the aggregate amount so certified. 104.13 (d) For districts granted a capital loan after January 1, 104.14 2001, the capital loan contract shall obligate the district to 104.15 certify an additional general fund levy for 20 years as 104.16 specified in section 126C.63, subdivision 8a. 104.17 Sec. 17. Minnesota Statutes 2000, section 126C.72, is 104.18 amended by adding a subdivision to read: 104.19 Subd. 5. [CAPITAL LOAN OBLIGATION.] (a) For districts 104.20 granted a capital loan after January 1, 2001, the commissioner 104.21 of finance shall establish a 20-year amortization schedule to 104.22 retire the state bonds issued to finance the capital loan. The 104.23 commissioner of finance shall adjust the amortization schedule 104.24 for any refunding and for the actual interest rates for bonds 104.25 issued to fund the capital loan. The amortization schedule and 104.26 any adjusted schedules shall be supplied to the school district, 104.27 county auditor, and commissioner of children, families, and 104.28 learning. 104.29 (b) Notwithstanding section 123B.53, the amount of debt 104.30 service equalization aid attributable to the additional general 104.31 fund levy under section 126C.63, subdivision 8a, shall not be 104.32 paid to the school district, but shall be transferred from the 104.33 debt service equalization aid appropriation to the state bond 104.34 fund each fiscal year. In addition, an amount equal to the 104.35 general education aid reduction according to section 126C.63, 104.36 subdivision 8a, shall be transferred from the general education 105.1 aid appropriation to the state bond fund each fiscal year. 105.2 Sec. 18. Minnesota Statutes 2000, section 475.53, 105.3 subdivision 4, is amended to read: 105.4 Subd. 4. [SCHOOL DISTRICTS.] Except as otherwise provided 105.5 by law, no school district shall be subject to a net debt in 105.6 excess often percent of the actual market value of all taxable105.7property situated within its corporate limits, as computed in105.8accordance with this subdivision. The county auditor of each105.9county containing taxable real or personal property situated105.10within any school district shall certify to the district upon105.11request the market value of all such property. Whenever the105.12commissioner of revenue, in accordance with section 127A.48,105.13subdivisions 1 to 6, has determined that the net tax capacity of105.14any district furnished by county auditors is not based upon the105.15market value of taxable property in the district, the105.16commissioner of revenue shall certify to the district upon105.17request the ratio most recently ascertained to exist between105.18such value and the actual market value of property within the105.19district. The actual market value of property within a105.20district, on which its debt limit under this subdivision is105.21based, is (a) the value certified by the county auditors, or (b)105.22this value divided by the ratio certified by the commissioner of105.23revenue, whichever results in a higher value.. times the most 105.24 recent adjusted net tax capacity of the district. 105.25 Sec. 19. Laws 2000, chapter 489, article 5, section 21, is 105.26 amended to read: 105.27 Sec. 21. [ONE-TIME DEFERRED MAINTENANCE AID.] 105.28 (a) For fiscal year 2001 only, a district's one-time 105.29 deferred maintenance aid is equal to: 105.30 (1) $10 times the adjusted marginal cost pupil units for 105.31 the school year; plus 105.32 (2) $21.90 times the adjusted marginal cost pupil units for 105.33 the school year for a district that does not qualify for 105.34 alternative facilities bonding under Minnesota Statutes, section 105.35 123B.59, or under Laws 1999, chapter 241, article 4, section 25. 105.36 (b) Aid received under this section must be used for 106.1 deferred maintenance, to make accessibility improvements, or to 106.2 make fire, safety, or health repairs. 106.3 (c) This aid is paid entirely in fiscal year 2001 based on 106.4 estimated data. By January 31, 2002, the department of 106.5 children, families, and learning shall recalculate the aid for 106.6 each district using actual data, and shall adjust the general 106.7 education aid paid to school districts for fiscal year 2002 by 106.8 the amount of the difference between the estimated aid and the 106.9 actual aid. 106.10 Sec. 20. [OPERATING CAPITAL ACCOUNT DEFICIT; EXCEPTION.] 106.11 Notwithstanding Minnesota Statutes, section 123B.78, 106.12 subdivision 5, the commissioner of children, families, and 106.13 learning may allow independent school district No. 492, Austin, 106.14 to incur a deficit of up to $4,200,000 in its reserve for 106.15 capital operating account for the Westcott Field improvement 106.16 project. The deficit must be eliminated by June 30, 2011. Any 106.17 donations or contributions received by the district for the 106.18 Westcott Field improvement project must be deposited in the 106.19 reserve for capital operating account to repay the deficit. The 106.20 commissioner of children, families, and learning must certify 106.21 the financial viability of the Westcott Field improvement 106.22 project prior to approving authority under this section. 106.23 [EFFECTIVE DATE.] This section is effective the day 106.24 following final enactment. 106.25 Sec. 21. [BONDING AUTHORIZATION.] 106.26 To provide funds for the acquisition or betterment of 106.27 school facilities, independent school district No. 625, St. 106.28 Paul, may by two-thirds majority vote of all the members of the 106.29 board of directors issue general obligation bonds in one or more 106.30 series in calendar years 2003 to 2008, both inclusive, as 106.31 provided in this section. The aggregate principal amount of any 106.32 bonds issued under this section for each calendar year must not 106.33 exceed $15,000,000. Issuance of the bonds is not subject to 106.34 Minnesota Statutes, section 475.58 or 475.59. The bonds must 106.35 otherwise be issued as provided in Minnesota Statutes, chapter 106.36 475. The authority to issue bonds under this section is in 107.1 addition to any bonding authority authorized by Minnesota 107.2 Statutes, chapter 123B, or other law. The amount of bonding 107.3 authority authorized under this section must be disregarded in 107.4 calculating the bonding limit of Minnesota Statutes, chapter 107.5 123B, or any other law other than Minnesota Statutes, section 107.6 475.53, subdivision 4. 107.7 Sec. 22. [TAX LEVY FOR DEBT SERVICE.] 107.8 To pay the principal of and interest on bonds issued under 107.9 section 21, independent school district No. 625, St. Paul, must 107.10 levy a tax annually in an amount sufficient under Minnesota 107.11 Statutes, section 475.61, subdivisions 1 and 3, to pay the 107.12 principal of and interest on the bonds. The tax authorized 107.13 under this section is in addition to the taxes authorized to be 107.14 levied under Minnesota Statutes, chapter 123B, 124D, or 126C, or 107.15 other law. 107.16 Sec. 23. [DEPARTMENT OF CHILDREN, FAMILIES, AND LEARNING; 107.17 ON-LINE LEARNING REPORT.] 107.18 By February 1, 2002, the commissioner of children, 107.19 families, and learning shall report to the education committees 107.20 of the legislature recommendations regarding on-line learning. 107.21 The report shall include: 107.22 (1) a review of Minnesota laws that affect on-line 107.23 learning, including funding laws and teacher licensure laws; 107.24 (2) an analysis of the feasibility and desirability of 107.25 establishing a virtual high school based on the state graduation 107.26 standards; 107.27 (3) recommendations for commissioner review and approval of 107.28 on-line learning programs; and 107.29 (4) other recommendations that foster quality 107.30 implementation of on-line learning in Minnesota schools. 107.31 Sec. 24. [INTERACTIVE WEB-BASED PROGRAM.] 107.32 General education revenue for a pupil in an approved 107.33 interactive Web-based program offered by a school district or a 107.34 charter school under the supervision of a teacher with a 107.35 Minnesota license must be paid for each hour of completed 107.36 coursework needed for grade progression, credit, or alignment 108.1 with state graduation standards. The course of study must be 108.2 approved by the commissioner of children, families, and learning 108.3 for alignment with the state graduation standards and compliance 108.4 with Minnesota Statutes, chapter 125A. Average daily membership 108.5 for a pupil shall equal the number of hours of coursework 108.6 completed divided by the number of hours required for a 108.7 full-time student in the district. Programs must report under a 108.8 separate site number. A school district or charter school is 108.9 not required to provide a pupil enrolled in the program with 108.10 access to a computer or to the Internet. 108.11 [EFFECTIVE DATE.] This section is effective for revenue for 108.12 fiscal year 2002 only. 108.13 Sec. 25. [ELECTRONIC DELIVERY OF COURSES.] 108.14 (a) The commissioner of children, families, and learning 108.15 shall award grants to school districts to establish, develop, or 108.16 make available: 108.17 (1) curriculum resources which are video or electronically 108.18 based and delivered; 108.19 (2) demonstration and prototype implementation of new 108.20 technology, including the transition of digital instructional 108.21 video sites to video over the Internet; 108.22 (3) an open learning network for agricultural and natural 108.23 resources education; and 108.24 (4) on-line courses for teachers to become certified to 108.25 teach English as a second language to children or adults. 108.26 (b) The commissioner, in cooperation with the Minnesota 108.27 education telecommunication council, shall develop the form, 108.28 procedures, timelines, and standards for grants under this 108.29 section. 108.30 Sec. 26. [DECLINING PUPIL UNIT AID; YELLOW MEDICINE EAST.] 108.31 Subdivision 1. [FISCAL YEAR 2002.] For fiscal year 2002, 108.32 independent school district No. 2190, Yellow Medicine East, is 108.33 eligible for tornado impact declining enrollment aid equal to 108.34 $156,000. 108.35 Subd. 2. [FISCAL YEAR 2003.] For fiscal year 2003, 108.36 independent school district No. 2190, Yellow Medicine East, is 109.1 eligible for tornado impact declining enrollment aid equal to 75 109.2 percent of the fiscal year 2002 appropriation in subdivision 1. 109.3 Subd. 3. [FISCAL YEAR 2004.] For fiscal year 2004, 109.4 independent school district No. 2190, Yellow Medicine East, is 109.5 eligible for tornado impact declining enrollment aid equal to 50 109.6 percent of the fiscal year 2002 appropriation in subdivision 1. 109.7 Subd. 4. [FISCAL YEAR 2005.] For fiscal year 2005, 109.8 independent school district No. 2190, Yellow Medicine East, is 109.9 eligible for tornado impact declining enrollment aid equal to 25 109.10 percent of the fiscal year 2002 appropriation in subdivision 1. 109.11 Sec. 27. [FUND TRANSFERS.] 109.12 Subdivision 1. [LAC QUI PARLE VALLEY.] Notwithstanding 109.13 Minnesota Statutes, sections 123B.58, 123B.79, or 123B.80, on 109.14 June 30, 2001, independent school district No. 2853, Lac qui 109.15 Parle Valley, may permanently transfer up to $....... from its 109.16 reserved account for disabled accessibility to its reserved 109.17 account for operating capital in the general fund. This 109.18 transfer is contingent upon the school district demonstrating to 109.19 the commissioner's satisfaction that the district's school 109.20 buildings are accessible to students or employees with 109.21 disabilities. 109.22 Subd. 2. [CLEVELAND.] Notwithstanding Minnesota Statutes, 109.23 sections 123B.79 or 123B.80, on June 30, 2001, independent 109.24 school district No. 391, Cleveland, may permanently transfer up 109.25 to $107,000 from its reserved operating capital account in its 109.26 general fund to the undesignated fund balance. 109.27 Subd. 3. [LAPORTE.] Notwithstanding Minnesota Statutes, 109.28 sections 123B.79 and 123B.80, on June 30, 2001, independent 109.29 school district No. 306, LaPorte, may permanently transfer up to 109.30 $141,000 from the bus purchase account in its transportation 109.31 fund to its capital expenditure fund. 109.32 Subd. 4. [RUSSELL.] Notwithstanding Minnesota Statutes, 109.33 section 123B.79 or 123B.80, on June 30, 2001, independent school 109.34 district No. 418, Russell, may permanently transfer up to 109.35 $160,000 from its reserved operating capital account in its 109.36 general fund to the undesignated fund balance. 110.1 Subd. 5. [ISLE.] (a) Notwithstanding Minnesota Statutes, 110.2 section 123B.79 or 123B.80, on June 30, 2001, upon approval of 110.3 the commissioner of children, families, and learning, 110.4 independent school district No. 473, Isle, may permanently 110.5 transfer up to $175,000 from its reserved account for disability 110.6 access to its undesignated general fund balance. 110.7 (b) Prior to making the fund transfer, independent school 110.8 district No. 473, Isle, must demonstrate to the commissioner's 110.9 satisfaction that the district's school buildings are accessible 110.10 to students or employees with disabilities. 110.11 Subd. 6. [MOUNTAIN LAKE.] Notwithstanding Minnesota 110.12 Statutes, section 123B.79 or 123B.80, on June 30, 2001, 110.13 independent school district No. 173, Mountain Lake, may 110.14 permanently transfer up to $300,000 from its reserved capital 110.15 accounts in its general fund to the undesignated fund balance. 110.16 [EFFECTIVE DATE.] This section is effective the day 110.17 following final enactment. 110.18 Sec. 28. [LEVY AUTHORITY; INDEPENDENT SCHOOL DISTRICT NO. 110.19 696, ELY.] 110.20 Independent school district No. 696, Ely, is authorized to 110.21 levy up to $100,000 in fiscal year 2003 for additional 110.22 transportation capital costs associated with the annexation of 110.23 Fall Lake township. The district is authorized to levy the 110.24 amount in this section only if the annexation of the portions of 110.25 Fall Lake township listed below by the Ely school district is 110.26 completed. Notwithstanding Minnesota Statutes, section 123A.45, 110.27 subdivisions 1, 2, 3, 4, and 5, the detachment and annexation is 110.28 effective July 1, 2001, if approved by the Ely school board and 110.29 by the school board of independent school district No. 381, Lake 110.30 Superior. Minnesota Statutes, section 123A.25, subdivision 6, 110.31 shall apply to taxable property involved in the detachment and 110.32 annexation. 110.33 The portions of Fall Lake township annexed by the Ely 110.34 school district are townships 62 through 66, range 11; townships 110.35 63 through 65, range 10; townships 63 through 65, range 9; and 110.36 townships 63 through 65, range 8. 111.1 Sec. 29. [APPROPRIATIONS.] 111.2 Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND 111.3 LEARNING.] The sums indicated in this section are appropriated 111.4 from the general fund to the department of children, families, 111.5 and learning for the fiscal years designated. 111.6 Subd. 2. [HEALTH AND SAFETY AID.] For health and safety 111.7 aid according to Minnesota Statutes, section 123B.57, 111.8 subdivision 5: 111.9 $14,980,000 ..... 2002 111.10 $14,550,000 ..... 2003 111.11 The 2002 appropriation includes $1,480,000 for 2001 and 111.12 $13,500,000 for 2002. 111.13 The 2003 appropriation includes $1,500,000 for 2002 and 111.14 $13,050,000 for 2003. 111.15 Subd. 3. [DEBT SERVICE AID.] For debt service aid 111.16 according to Minnesota Statutes, section 123B.53, subdivision 6: 111.17 $25,989,000 ..... 2002 111.18 $23,716,000 ..... 2003 111.19 The 2002 appropriation includes $2,890,000 for 2001 and 111.20 $23,099,000 for 2002. 111.21 The 2003 appropriation includes $2,562,000 for 2002 and 111.22 $21,249,000 for 2003. 111.23 Subd. 4. [INTERACTIVE TELEVISION (ITV) AID.] For 111.24 interactive television (ITV) aid under Minnesota Statutes, 111.25 section 126C.40, subdivision 4: 111.26 $1,418,000 ..... 2002 111.27 $ 129,000 ..... 2003 111.28 The 2002 appropriation includes $260,000 for 2001 and 111.29 $1,158,000 for 2002. 111.30 The 2003 appropriation includes $129,000 for 2002 and -$0- 111.31 for 2003. 111.32 Subd. 5. [ALTERNATIVE FACILITIES BONDING AID.] For 111.33 alternative facilities bonding aid, according to Minnesota 111.34 Statutes, section 123B.59, subdivision 1: 111.35 $19,279,000 ..... 2002 111.36 $19,287,000 ..... 2003 112.1 The 2002 appropriation includes $1,921,000 for 2001 and 112.2 $17,358,000 for 2002. 112.3 The 2003 appropriation includes $1,929,000 for 2002 and 112.4 $17,358,000 for 2003. 112.5 Subd. 6. [TELECOMMUNICATION ACCESS REVENUE.] For 112.6 telecommunication access cost revenue under Minnesota Statutes, 112.7 section 125B.25: 112.8 $12,971,000 ..... 2002 112.9 $12,968,000 ..... 2003 112.10 The 2002 appropriation includes $1,300,000 for 2001 and 112.11 $11,671,000 for 2002. 112.12 The 2003 appropriation includes $1,297,000 for 2002 and 112.13 $11,671,000 for 2003. 112.14 If the appropriation amount is insufficient, the 112.15 commissioner shall reduce the reimbursement rate in Minnesota 112.16 Statutes, section 125B.25, subdivisions 5 and 6, and the revenue 112.17 for the 2001-2002 school year shall be prorated. The 112.18 reimbursement rate shall not exceed 67 percent. 112.19 Subd. 7. [DECLINING PUPIL AID; ST. PETER.] For a grant to 112.20 independent school district No. 508, St. Peter, to ameliorate 112.21 general fund operating losses associated with the March 1998 112.22 tornado: 112.23 $461,000 ..... 2002 112.24 Subd. 8. [FLOODS; DECLINING PUPIL AID.] For declining 112.25 pupil aid under Laws 2000, chapter 489, article 5, section 23: 112.26 $921,000 ..... 2002 112.27 Subd. 9. [DECLINING PUPIL AID; YELLOW MEDICINE EAST.] For 112.28 declining pupil aid for independent school district No. 2190, 112.29 Yellow Medicine East, for tornado impact declining enrollment: 112.30 $156,000 ..... 2002 112.31 $117,000 ..... 2003 112.32 Subd. 10. [GRANTS FOR THE ELECTRONIC DELIVERY OF ACADEMIC 112.33 COURSES.] For grants for the electronic delivery of academic 112.34 courses: 112.35 $1,000,000 ..... 2002 112.36 The commissioner shall consider grants to independent 113.1 school district No. 2752, Fairmont area schools, for the 113.2 development, maintenance, and lease costs of an interactive 113.3 video system for instructional purposes; to independent school 113.4 district No. 199, Inver Grove, for the design and development of 113.5 a library of on-line courses; and $100,000 is for developing an 113.6 electronic curriculum that focuses on limited English 113.7 proficiency services, reading basics, and gifted and talented 113.8 instruction to be used in all-day kindergarten classes. 113.9 The commissioner shall consider grants for on-line courses 113.10 for Greater Minnesota teachers to become licensed to teach 113.11 English as a second language to adults that provide a match of 113.12 one dollar of state grant money with one dollar of private 113.13 funding. 113.14 This appropriation is available until June 30, 2003. 113.15 Subd. 11. [EDUCATION PROGRAM PLANNING GRANTS.] For 113.16 education program planning grants: 113.17 $155,000 ..... 2002 113.18 $50,000 is for independent school district No. 13, Columbia 113.19 Heights, for a education program planning grant to develop a 113.20 north metropolitan global technology magnet school that has a 113.21 focus on foreign language communications that will serve a 113.22 diverse student population with a technology intensive education 113.23 program. 113.24 $105,000 is for independent school district No. 281, 113.25 Robbinsdale, for an education program planning grant to address 113.26 student demographic changes. 113.27 This appropriation is available until June 30, 2003. 113.28 Subd. 12. [ELECTRONIC LIBRARY FOR MINNESOTA.] For 113.29 statewide licenses to on-line databases selected in cooperation 113.30 with the higher education services office for school media 113.31 centers, public libraries, state government agency libraries, 113.32 and public or private college or university libraries: 113.33 $400,000 ..... 2002 113.34 $400,000 ..... 2003 113.35 Any balance in the first year does not cancel but is 113.36 available in the second year. 114.1 ARTICLE 5 114.2 NUTRITION PROGRAMS 114.3 Section 1. [124D.1156] [FAST BREAK TO LEARNING BREAKFAST 114.4 PROGRAM.] 114.5 Subdivision 1. [ELIGIBILITY.] The commissioner shall 114.6 provide funding to the 41 targeted breakfast program grant 114.7 recipients under Laws 1997, First Special Session chapter 4, 114.8 article 6, section 19, and then to public or nonpublic 114.9 elementary schools that participate in the federal School 114.10 Breakfast and Lunch Programs where at least 33 percent of the 114.11 lunches served to children during the second preceding school 114.12 year were provided free or at a reduced price. Schools shall 114.13 not charge student households for fast break to learning meals. 114.14 Schools shall encourage all children to eat a nutritious 114.15 breakfast, either at home or at school, and shall work to 114.16 eliminate barriers to participation at school such as inadequate 114.17 facilities and transportation. 114.18 Subd. 2. [PROGRAM.] The fast break to learning school 114.19 breakfast program enables schools participating in the federal 114.20 School Breakfast and Lunch Programs to cover the costs for 114.21 school breakfast without charging student households. 114.22 Subd. 3. [PROGRAM REIMBURSEMENT.] State funds are provided 114.23 to reimburse fast break to learning school breakfasts. Each 114.24 school year, the state must reimburse schools for the difference 114.25 between the per meal federal rate of reimbursement and the per 114.26 meal state average cost. Meals that are reimbursed at a federal 114.27 rate that is equal to or higher than the state average cost do 114.28 not qualify for fast break to learning funds. Schools must use 114.29 the funds to provide school breakfast to school children every 114.30 day school is in session. 114.31 Sec. 2. [124D.1195] [COMMODITY DONATED FOOD REVOLVING 114.32 FUND.] 114.33 A revolving fund is established for the purpose of 114.34 depositing cash received for commodity donated foods that have 114.35 been lost, damaged, recalled, or diverted for processing. The 114.36 state shall use the fund to issue payments for the value of the 115.1 lost, damaged, recalled, or diverted commodity donated foods and 115.2 related costs. 115.3 Sec. 3. Minnesota Statutes 2000, section 127A.45, 115.4 subdivision 12, is amended to read: 115.5 Subd. 12. [PAYMENT PERCENTAGE FOR CERTAIN AIDS.] One 115.6 hundred percent of the aid for the current fiscal year must be 115.7 paid for the following aids: reimbursement for transportation 115.8 to post-secondary institutions, according to section 124D.09, 115.9 subdivision 22; aid for the program for adults with 115.10 disabilities, according to section 124D.56, subdivision 2; 115.11school lunch aid, according to section 124D.111;hearing 115.12 impaired support services aid, according to section 124D.57; 115.13 Indian post-secondary preparation grants according to section 115.14 124D.85; integration grants according to Laws 1989, chapter 329, 115.15 article 8, section 14, subdivision 3; and debt service aid 115.16 according to section 123B.53, subdivision 6. 115.17 Sec. 4. Minnesota Statutes 2000, section 127A.45, is 115.18 amended by adding a subdivision to read: 115.19 Subd. 14a. [STATE NUTRITION PROGRAMS.] Notwithstanding 115.20 subdivision 3, the state shall pay 100 percent of the aid for 115.21 the current year according to sections 124D.111, 124D.115, and 115.22 124D.118 and 90 percent of the aid for the current year 115.23 according to section 124D.1156 based on submitted monthly 115.24 vouchers showing meals and milk served. The remaining ten 115.25 percent according to section 124D.1156 shall be paid by October 115.26 30 of the following fiscal year. 115.27 Sec. 5. [IDENTIFICATION OF CHILDREN ELIGIBLE FOR FREE AND 115.28 REDUCED-PRICE SCHOOL MEALS.] 115.29 (a) Notwithstanding other law to the contrary, the 115.30 commissioner of revenue may match tax return information to 115.31 student data supplied by the commissioner of children, families, 115.32 and learning and disclose the results to the commissioner of 115.33 children, families, and learning for the purpose of a pilot 115.34 program to evaluate the feasibility of the data match for 115.35 identifying children who are eligible for free and reduced-price 115.36 school meals and verifying the eligibility of school meal 116.1 applicants. The commissioner of revenue shall disclose or 116.2 confirm only the eligibility status of children for free or 116.3 reduced-price school meals and shall not disclose income data. 116.4 The commissioner of children, families, and learning shall not 116.5 disclose the results of the data match to schools. The pilot 116.6 program shall end December 31, 2002. 116.7 (b) Notwithstanding other law to the contrary, essential 116.8 data on pupils under Minnesota Statutes, section 125B.07, 116.9 subdivision 6, may be disclosed to the department of revenue 116.10 until December 31, 2002, for the purposes of paragraph (a). 116.11 (c) The commissioner of children, families, and learning 116.12 shall prepare a report on the feasibility of using the data 116.13 match for the purposes of identifying children eligible for free 116.14 and reduced-price meals and verifying self-reported income of 116.15 school meal applicants. 116.16 Sec. 6. [APPROPRIATIONS.] 116.17 Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND 116.18 LEARNING.] The sums indicated in this section are appropriated 116.19 from the general fund to the department of children, families, 116.20 and learning for the fiscal years designated. 116.21 Subd. 2. [SCHOOL LUNCH.] (a) For school lunch aid 116.22 according to Minnesota Statutes, section 124D.111, and Code of 116.23 Federal Regulations, title 7, section 210.17, and for school 116.24 milk aid according to Minnesota Statutes, section 124D.118: 116.25 $8,710,000 ..... 2002 116.26 $8,950,000 ..... 2003 116.27 (b) Not more than $800,000 of the amount appropriated each 116.28 year may be used for school milk aid. 116.29 Subd. 3. [SCHOOL BREAKFAST.] For school breakfast aid 116.30 under Minnesota Statutes, section 124D.115: 116.31 $640,000 ..... 2002 116.32 $700,000 ..... 2003 116.33 Subd. 4. [SUMMER FOOD SERVICE REPLACEMENT AID.] For summer 116.34 food service replacement aid under Minnesota Statutes, section 116.35 124D.119: 116.36 $150,000 ..... 2002 117.1 $150,000 ..... 2003 117.2 Subd. 5. [FAST BREAK TO LEARNING GRANTS.] For fast break 117.3 to learning grants under Minnesota Statutes, section 124D.1156: 117.4 $2,446,000 ..... 2002 117.5 $2,839,000 ..... 2003 117.6 The 2002 appropriation includes $0 for 2001 and $2,446,000 117.7 for 2002. 117.8 The 2003 appropriation includes $272,000 for 2002 and 117.9 $2,567,000 for 2003. 117.10 Sec. 7. [REPEALER.] 117.11 Minnesota Statutes 2000, section 124D.1155, is repealed. 117.12 ARTICLE 6 117.13 EARLY CHILDHOOD PROGRAMS 117.14 Section 1. Minnesota Statutes 2000, section 119A.05, is 117.15 amended to read: 117.16 119A.05 [FUNDING CONSOLIDATION.] 117.17 Subdivision 1. [AUTHORITY FOR FUNDING CONSOLIDATION AND 117.18 INTEGRATION.] (a) Notwithstanding existing law governing 117.19 allocation of funds by local grantees, mode of service delivery, 117.20 grantee planning and reporting requirements, and other 117.21 procedural requirements for the grant programs identified in 117.22 this section, a local grantee may elect to consolidate all or a 117.23 portion of funding received from the programs under subdivision 117.24 5 in a collaboration funding plan, if all conditions specified 117.25 in this section are satisfied. County boards, school boards, or 117.26 governing boards of other grantees may elect not to consolidate 117.27 funding for a program. 117.28 (b) Funding for services provided to a community under 117.29 sections 119A.52, 119B.189 to 119B.26, 124D.13, and 124D.15 must 117.30 be determined according to the funding formulas and distributed 117.31 as identified in applicable program laws and rules. 117.32 Notwithstanding existing law governing allocation of funds to 117.33 local programs, mode of service delivery, program planning, 117.34 traditional geographic boundaries, and other procedural 117.35 requirements for early childhood care and education programs 117.36 under the jurisdiction of the commissioner, a community early 118.1 childhood council may elect to integrate all or a portion of 118.2 funding available through these programs under an integrated 118.3 funding and service plan, if all requirements under this section 118.4 are met. 118.5 (c) For grantees electing consolidation or integration, the 118.6 commissioner may, with the approval of the board of government 118.7 innovation and cooperation, waive all provisions of rules 118.8 inconsistent with the intent of this section. This waiver 118.9 authority does not apply to rules governing client protections, 118.10 due process, or inclusion of clients, parents, cultures, and 118.11 ethnicities in decision making. Funding to a local grantee must 118.12 be determined according to the funding formulas or allocation 118.13 rules governing the individual programs listed in section 118.14 119A.04. 118.15 (d) For communities consolidating or integrating funds 118.16 under paragraph (b), the commissioner shall provide technical 118.17 assistance to a community or planning group to aid in 118.18 development of an early childhood care and education plan that 118.19 describes strategies to be used to target resources to children 118.20 at risk and support achievement of positive outcomes for all 118.21 children and families in the community and the method or methods 118.22 used to evaluate performance under the community plan. 118.23 Subd. 2. [ACCOUNT.] A consolidated funding account is 118.24 established under the control of the commissioner of children, 118.25 families, and learning for funds consolidated under subdivision 118.26 1, paragraph (a). The purpose of this account is to clearly 118.27 identify and provide accountability for funds previously 118.28 distributed to local grantees through the individual categorical 118.29 grant programs in subdivision 5. By direction of the 118.30 commissioner, after consultation with the partnership planning 118.31 team and, upon a finding that the conditions specified in this 118.32 section have been satisfied, funds must be transmitted to this 118.33 account and allocated to local grantees by the commissioner. 118.34 Subd. 3. [ELIGIBILITY; ACCOUNTABILITY.] (a) To be eligible 118.35 to receive funding for local consolidation, as provided for in 118.36this sectionsubdivision 1, paragraph (a), a grantee must meet 119.1 the following requirements: 119.2 (1) demonstrate participation by counties and schools in a 119.3 local collaborative process as defined in section 124D.23 or in 119.4 a similar process of collaboration with other local governments 119.5 and community organizations which satisfies the governance and 119.6 planning guidelines published by the commissioner as provided 119.7 for in this section; 119.8 (2) document consultation by counties and schools with 119.9 community action agencies and other community groups; 119.10 (3) complete and document, according to guidelines 119.11 published by the commissioner, a collaborative planning process 119.12 which clearly identifies: 119.13 (i) allocation of resources in the collaboration annual 119.14 funding plan; 119.15 (ii) a description of the governance structure for the 119.16 execution of the funding plan; 119.17 (iii) outcomes consistent with the statewide goals 119.18 identified in this chapter and in statutes governing previous 119.19 categorical funding included in the collaboration funding plan; 119.20 and 119.21 (iv) indicators sufficient to measure improvement or 119.22 decline in specified outcomes compared to baseline performance; 119.23 (4) conduct a public hearing on the funding consolidation 119.24 plan under chapter 13D; 119.25 (5) agree to periodically report information concerning 119.26 progress in addressing outcomes, as provided for in guidelines 119.27 to be published by the commissioner; and 119.28 (6) execute a written agreement between the commissioner 119.29 and the local grantees setting forth responsibilities, 119.30 obligations, and conditions consistent with this section. The 119.31 agreement must state that the funds that are being locally 119.32 consolidated will be used collectively only to achieve the 119.33 objectives of the separate programs being locally consolidated. 119.34 (b) To be eligible to receive funding for local 119.35 integration, as provided for in subdivision 1, paragraph (b), a 119.36 grantee must meet the following requirements: 120.1 (1) submit to the commissioner a comprehensive plan for 120.2 integration of early childhood care and education funds and 120.3 programs on a communitywide basis that identifies: 120.4 (i) allocation of resources in the annual early childhood 120.5 integrated funding plan; 120.6 (ii) a description of the governance structure for the 120.7 execution of the funding plan; 120.8 (iii) outcomes consistent with the statewide goals 120.9 identified in this chapter and in statutes governing previous 120.10 categorical funding included in the early childhood integrated 120.11 funding plan; and 120.12 (iv) indicators sufficient to measure improvement or 120.13 decline in specified outcomes compared to baseline performance; 120.14 (2) demonstrate participation and agreement on the plan by 120.15 counties, schools, child care providers, Early Childhood Family 120.16 Education (ECFE), Head Start, and other school or 120.17 community-based early childhood care and education programs in a 120.18 local collaborative process as defined in section 124D.23 or in 120.19 a similar process of collaboration with other local governments 120.20 and community organizations that satisfies the governance and 120.21 planning guidelines published by the commissioner as provided 120.22 for in this section; 120.23 (3) agree to periodically report information concerning 120.24 progress in addressing outcomes, as provided for in guidelines 120.25 to be published by the commissioner; and 120.26 (4) execute a written agreement between the commissioner 120.27 and the local grantees setting forth responsibilities, 120.28 obligations, and conditions consistent with this section. The 120.29 agreement must state that the funds that are being locally 120.30 integrated will be used collectively only to achieve the 120.31 objectives of the separate programs being locally integrated. 120.32 Subd. 4. [GEOGRAPHIC AREA.] (a) The geographic area for a 120.33 local consolidated funding process under subdivision 1, 120.34 paragraph (a), must be an entire county, a multicounty area, or, 120.35 with the approval of the county board and commissioner, a 120.36 subcounty area, if county funds are used. The process may 121.1 provide for coordination of service delivery in jurisdictions 121.2 that extend across county boundaries. 121.3 (b) The geographic area for a local early childhood 121.4 integrated funding process under subdivision 1, paragraph (b), 121.5 may be an entire county, school district, group of school 121.6 districts, or political subdivision or combination. The process 121.7 may provide for coordination of service delivery in 121.8 jurisdictions that extend across county boundaries. 121.9 Subd. 5. [PROGRAMS INCLUDED.] Grant programs transferred 121.10 to the department of children, families, and learning in section 121.11 119A.04 and programs transferred from the abolished department 121.12 of education are eligible for local funding consolidation under 121.13 subdivision 1, paragraph (a). Eligibility of any federally 121.14 funded programs for local funding consolidation is conditioned 121.15 upon obtaining necessary federal waivers or changes in federal 121.16 law. 121.17 Subd. 6. [ENTRY INTO PROGRAM.] Grantees who meet all 121.18 requirements of this section may elect to begin using funding 121.19 for a local consolidated or integrated funding process beginning 121.20 January 1,19962001, or at each six-month interval.Other121.21local grantees that meet all requirements of this section may121.22elect to begin using funding for a local consolidation funding121.23process beginning July 1, 1996, or at each six-month interval.121.24 Subd. 7. [SANCTIONS.] If the commissioner finds that a 121.25 grantee has failed to comply with this section, the grantee 121.26 becomes subject to all requirements of individual grant programs 121.27 as specified in statutes and rules. 121.28 Sec. 2. Minnesota Statutes 2000, section 119A.52, is 121.29 amended to read: 121.30 119A.52 [DISTRIBUTION OF APPROPRIATION.] 121.31 (a) The commissionerof children, families, and learning121.32 must distribute money appropriated forthat purpose toHead 121.33 Startprogramprograms to grantees to expand services and to 121.34 serve additional low-income children. Grantees may use state 121.35 funds to provide services to children birth to age five and 121.36 their families with incomes up to 120 percent of the federal 122.1 poverty guidelines. Money must be allocated to each project 122.2 Head Start grantee in existence on the effective date of Laws 122.3 1989, chapter 282. Migrant and Indian reservation grantees must 122.4 be initially allocated money based on the grantees' share of 122.5 federal funds. The remaining money must be initially allocated 122.6 to the remaining local agencies based equally on the agencies' 122.7 share of federal funds and on the proportion of eligible 122.8 children in the agencies' service area who are not currently 122.9 being served.A Head Start grantee must be funded at a per122.10child rate equal to its contracted, federally funded base level122.11for program accounts 20, 22, and 25 at the start of the fiscal122.12year.In allocating funds under this paragraph, the 122.13 commissioner of children, families, and learning must assure 122.14 that each Head Start grantee is allocated no less funding in any 122.15 fiscal year than was allocated to that grantee in fiscal year 122.1619931999. The commissioner may provide additional funding to 122.17 grantees for start-up costs incurred by grantees due to the 122.18 increased number of children to be served.Before paying money122.19to the grantees, the commissioner must notify each grantee of122.20its initial allocation, how the money must be used, and the122.21number of low-income children that must be served with the122.22allocation.Each grantee must notify the commissioner of the 122.23 number of low-income children it will be able to serve. For any 122.24 grantee that cannot utilize its full allocation, the 122.25 commissioner must reduce the allocation proportionately. Money 122.26 available after the initial allocations are reduced must be 122.27 redistributed to eligible grantees. 122.28 (b) Up to 11 percent of the funds appropriated annually may 122.29 be used to provide grants to local Head Start agenciesto122.30provide fundsfor innovative programs designed either to target 122.31 Head Start resources to particular at-risk groups of children or 122.32 to provide services in addition to those currently allowable 122.33 under federal Head Start regulations. The commissioner must 122.34 award funds for innovative programs under this paragraph on a 122.35 competitive basis. 122.36 (c) To be eligible for state funds under this section, each 123.1 existing grantee or applicant must present a work plan to the 123.2 commissioner for approval. The work plan must include the 123.3 estimated number of low-income children and families to be 123.4 served, a description of the program design and service delivery 123.5 areas which meets the needs of and encourages access by 123.6 low-income working families, a program design that ensures fair 123.7 and equitable access to services that meet Head Start 123.8 regulations and program performance standards for all 123.9 populations in the service area, and a plan for coordinating 123.10 services to maximize assistance for child care costs available 123.11 to families under chapter 119B. In addition, the work plan must 123.12 assure coordinated service delivery with other early childhood 123.13 care and education services. 123.14 Sec. 3. Minnesota Statutes 2000, section 119B.011, 123.15 subdivision 7, is amended to read: 123.16 Subd. 7. [CHILD CARE SERVICES.] "Child care services" 123.17 means child care as defined in subdivision 5, providedin family123.18day care homes, group day care homes, nursery schools, day123.19nurseries, child day care centers, head start, and extended day123.20school age child care programsin or out of the child's home. 123.21 Sec. 4. Minnesota Statutes 2000, section 119B.011, 123.22 subdivision 19, is amended to read: 123.23 Subd. 19. [PROVIDER.] "Provider" meansa child care123.24license holder who operates a family child care home, a group123.25family child care home, a child care center, a nursery school, a123.26day nursery, a school age care program; a license-exempt school123.27age care program operating under the auspices of a local school123.28board or a park or recreation board of a city of the first class123.29that has adopted school age care guidelines which meet or exceed123.30guidelines recommended by the department, or a nonlicensedan 123.31 individual or child care center or facility either licensed or 123.32 unlicensed providing legal child care services as defined under 123.33 section 245A.03. A legally unlicensed registered family child 123.34 care providerwho ismust be at least 18 years of age, andwho123.35isnot a member of the MFIP assistance unit or a member of the 123.36 family receiving child care assistance under this chapter. 124.1 Sec. 5. Minnesota Statutes 2000, section 119B.011, is 124.2 amended by adding a subdivision to read: 124.3 Subd. 19a. [STATE MEDIAN INCOME.] "State median income" 124.4 means the state's annual median income for a family of four, 124.5 adjusted for family size, developed by the Bureau of Census and 124.6 published annually by the United States Department of Health and 124.7 Human Services in the Federal Register. 124.8 Sec. 6. Minnesota Statutes 2000, section 119B.011, is 124.9 amended by adding a subdivision to read: 124.10 Subd. 19b. [STUDENT.] "Student" means an individual 124.11 enrolled in an education program. A student is a full-time 124.12 student if enrolled in an education program a minimum equivalent 124.13 of 12 credits or 20 hours of classroom training per week. A 124.14 student is considered a part-time student if enrolled in an 124.15 education program up to the minimum of full-time student status. 124.16 Sec. 7. Minnesota Statutes 2000, section 119B.02, 124.17 subdivision 1, is amended to read: 124.18 Subdivision 1. [CHILD CARE SERVICES.] The commissioner 124.19 shall develop standards for county and human services boards to 124.20 provide child care services to enable eligible families to 124.21 participate in employment, training, or education programs. 124.22Within the limits of available appropriations,The commissioner 124.23 shall distribute money to counties to reduce the costs of child 124.24 care for eligible families. The commissioner shall adopt rules 124.25 to govern the program in accordance with this section. The 124.26 rules must establish a sliding schedule of fees for parents 124.27 receiving child care services. The rules shall provide that 124.28 funds received as a lump sum payment of child support arrearages 124.29 shall not be counted as income to a family in the month received 124.30 but shall be prorated over the 12 months following receipt and 124.31 added to the family income during those months.In the rules124.32adopted under this section, county and human services boards124.33shall be authorized to establish policies for payment of child124.34care spaces for absent children, when the payment is required by124.35the child's regular provider. The rules shall not set a maximum124.36number of days for which absence payments can be made, but125.1instead shall direct the county agency to set limits and pay for125.2absences according to the prevailing market practice in the125.3county. County policies for payment of absences shall be125.4subject to the approval of the commissioner.The commissioner 125.5 shall maximize the use of federal money under title I and title 125.6 IV of Public Law Number 104-193, the Personal Responsibility and 125.7 Work Opportunity Reconciliation Act of 1996, and other programs 125.8 that provide federal or state reimbursement for child care 125.9 services for low-income families who are in education, training, 125.10 job search, or other activities allowed under those programs. 125.11 Money appropriated under this section must be coordinated with 125.12 the programs that provide federal reimbursement for child care 125.13 services to accomplish this purpose.Federal reimbursement125.14obtained must be allocated to the county that spent money for125.15child care that is federally reimbursable under programs that125.16provide federal reimbursement for child care services.The 125.17countiescommissioner shall use the federal money to expand 125.18 child care services. The commissioner may adopt rules under 125.19 chapter 14 to implement and coordinate federal program 125.20 requirements. If the November forecast shows biennial 125.21 expenditures projected to be above 110 percent of the biennial 125.22 appropriation, the commissioner, in conjunction with the 125.23 commissioner of finance, shall prepare a plan to bring biennial 125.24 program spending to within 110 percent of the consolidated child 125.25 care assistance appropriation for that biennium. The proposal 125.26 to control program expenditures will be delivered to the 125.27 legislature or legislative advisory commission by January 15 125.28 following the November forecast. The proposal will take effect 125.29 ten legislative session days following the release of the 125.30 February forecast if the forecast continues to exceed the 110 125.31 percent limit unless the legislature enacts an alternative 125.32 solution. 125.33 Sec. 8. Minnesota Statutes 2000, section 119B.02, 125.34 subdivision 2, is amended to read: 125.35 Subd. 2. [CONTRACTUAL AGREEMENTS WITH TRIBES.] The 125.36 commissioner may enter into contractual agreements with a 126.1 federally recognized Indian tribe with a reservation in 126.2 Minnesota to carry out the responsibilities of county human 126.3 service agencies to the extent necessary for the tribe to 126.4 operate child care assistance programs for families eligible 126.5 under sections119B.03119B.09 and119B.05119B.10. An 126.6 agreement may allow for the tribe to be reimbursed for child 126.7 care assistance services provided under section 119B.05. The 126.8 commissioner shall consult with the affected county or counties 126.9 in the contractual agreement negotiations, if the county or 126.10 counties wish to be included, in order to avoid the duplication 126.11 of county and tribal child care services.Funding to support126.12services under section 119B.03 may be transferred to the126.13federally recognized Indian tribe with a reservation in126.14Minnesota from allocations available to counties in which126.15reservation boundaries lie. When funding is transferred under126.16section 119B.03, the amount shall be commensurate to estimates126.17of the proportion of reservation residents with characteristics126.18identified in section 119B.03, subdivision 6, to the total126.19population of county residents with those same characteristics.126.20 Sec. 9. Minnesota Statutes 2000, section 119B.03, 126.21 subdivision 3, is amended to read: 126.22 Subd. 3. [ELIGIBLE PARTICIPANTS.] Families that meet the 126.23 eligibility requirements under sections119B.07,119B.09,and 126.24 119B.10, except MFIP participants, work first participants, and126.25transition year familiesare eligible for child care 126.26 assistanceunder the basic sliding feethrough the child care 126.27 assistance program. Families enrolled in thebasic sliding fee126.28 child care assistance program shall be continued until they are 126.29 no longer eligible. Child care assistance provided through the 126.30 child care fund is considered assistance to the parent. 126.31 Sec. 10. Minnesota Statutes 2000, section 119B.03, is 126.32 amended by adding a subdivision to read: 126.33 Subd. 3a. [ALLOCATION FORMULA.] (a) Funds appropriated for 126.34 families who apply for child care assistance with incomes above 126.35 50 percent state median income and below 75 percent state median 126.36 income shall be allocated on a calendar year basis. The 127.1 following formula shall be used for the first biennium of the 127.2 consolidated program. The commissioner shall propose to the 127.3 2003 legislature a new funding formula for funds under this 127.4 section based on the history of expenditures since consolidation 127.5 of the child care assistance program. 127.6 (b) Funds shall be allocated in proportion to each county's 127.7 total expenditures for the basic sliding fee child care program 127.8 reported during calendar year 2000. 127.9 (c) When the amount of funds available under this section 127.10 is less than the amount available in the previous year, each 127.11 county's previous year allocation shall be reduced in proportion 127.12 to the reduction in the statewide funding. 127.13 Sec. 11. Minnesota Statutes 2000, section 119B.03, 127.14 subdivision 9, is amended to read: 127.15 Subd. 9. [PORTABILITY POOLFAMILY MOVE; CONTINUED 127.16 PARTICIPATION.] (a)The commissioner shall establish a pool of127.17up to five percent of the annual appropriation for the basic127.18sliding fee program to provide continuous child care assistance127.19for eligible families who move between Minnesota counties. At127.20the end of each allocation period, any unspent funds in the127.21portability pool must be used for assistance under the basic127.22sliding fee program. If expenditures from the portability pool127.23exceed the amount of money available, the reallocation pool must127.24be reduced to cover these shortages.127.25(b) To be eligible for portable basic sliding fee127.26assistance, a family that has moved from a county in which itA 127.27 family receiving child care assistance under the child care fund 127.28 that has moved from a county in which the family was receiving 127.29basic sliding feechild care assistance toaanother county 127.30with a waiting list for the basic sliding fee programmust be 127.31 admitted into the receiving county's child care assistance 127.32 program if the family: 127.33 (1)meetmeets the income and eligibility guidelines for 127.34 thebasic sliding feechild care assistance program; and 127.35 (2)notifynotifies the new county of residence within30127.36 60 days of moving andapplyapplies forbasic sliding fee128.1 child care assistance in the new county of residence. 128.2(c)(b) The receiving county must:128.3(1)accept administrative responsibilityfor applicants for128.4portable basic sliding fee assistanceat the end of the two 128.5 months of assistance under the Unitary Residency Act;. 128.6(2) continue basic sliding fee assistance for the lesser of128.7six months or until the family is able to receive assistance128.8under the county's regular basic sliding program; and128.9(3) notify the commissioner through the quarterly reporting128.10process of any family that meets the criteria of the portable128.11basic sliding fee assistance pool.128.12 Sec. 12. Minnesota Statutes 2000, section 119B.03, 128.13 subdivision 10, is amended to read: 128.14 Subd. 10. [APPLICATION; ENTRY POINTS.] Two or more methods 128.15 of applying for thebasic sliding feechild care assistance 128.16 program under this chapter must be available to applicants in 128.17 each county. To meet the requirements of this subdivision, a 128.18 county may provide alternative methods of applying for 128.19 assistance, including, but not limited to, a mail application, 128.20 or application sites that are located outside of government 128.21 offices. 128.22 Sec. 13. Minnesota Statutes 2000, section 119B.05, 128.23 subdivision 5, is amended to read: 128.24 Subd. 5. [FEDERAL REIMBURSEMENT.] Counties and the state 128.25 shall maximize their federal reimbursement under federal 128.26 reimbursement programs for money spent for persons eligible 128.27 under this chapter. The commissioner shall allocate any federal 128.28 earnings to the county to be used to expand child care services 128.29 under this chapter. 128.30 Sec. 14. Minnesota Statutes 2000, section 119B.061, 128.31 subdivision 1, is amended to read: 128.32 Subdivision 1. [ESTABLISHMENT.] A family in which a parent 128.33 provides care for the family's infant child may receive a 128.34 subsidy in lieu of assistance if the family is eligible for, or 128.35 is receiving assistance under thebasic sliding feechild care 128.36 assistance program. An eligible family must meet the 129.1 eligibility factors under section 119B.09, the income criteria 129.2 under section 119B.12, and the requirements of this 129.3 section.Subject to federal match and maintenance of effort129.4requirements for the child care and development fund, the129.5commissioner shall establish a pool of up to seven percent of129.6the annual appropriation for the basic sliding fee program to129.7provide assistance under the at-home infant child care program.129.8 At the end of a fiscal year, the commissioner may carry forward 129.9 any unspent funds under this section to the next fiscal year 129.10 within the same biennium for assistance under thebasic sliding129.11feechild care assistance program. 129.12 Sec. 15. Minnesota Statutes 2000, section 119B.061, 129.13 subdivision 4, is amended to read: 129.14 Subd. 4. [ASSISTANCE.] (a) A family is limited to a 129.15 lifetime total of 12 months of assistance underthis129.16sectionsubdivision 2. The maximum rate of assistance is equal 129.17 to7590 percent of the rate established under section 119B.13 129.18 for care of infants in licensed family child care in the 129.19 applicant's county of residence. Assistance must be calculated 129.20 to reflect the parent fee requirement under section 119B.12 for 129.21 the family's actual income level and family size while the 129.22 family is participating in the at-home infant child care program 129.23 under this section. 129.24 (b) A participating family must report income and other 129.25 family changes as specified in the county's plan under section 129.26 119B.08, subdivision 3.The family must treat any assistance129.27received under this section as unearned income.129.28 (c) Persons who are admitted to the at-home infant care 129.29 program retain their position in anybasic sliding feechild 129.30 care assistance program or on any waiting list attained at the 129.31 time of admittance. If they are on the waiting list, they must 129.32 advance as if they had not been admitted to the program. 129.33 Persons leaving the at-home infant care program re-enter 129.34 thebasic sliding feechild care assistance program at the 129.35 position they would have occupied or the waiting list at the 129.36 position to which they would have advanced. Persons who would 130.1 have attained eligibility for thebasic sliding feechild care 130.2 assistance program must be given assistance or advance to the 130.3 top of the waiting list when they leave the at-home infant care 130.4 program. Persons admitted to the at-home infant care program 130.5 who are not on abasic sliding feewaiting list may apply to the 130.6basic sliding feechild care assistance program, and if 130.7 eligible, be placed on the waiting list. 130.8 (d) The time that a family receives assistance under this 130.9 section must be deducted from the one-year exemption from work 130.10 requirements under the MFIP program. 130.11 (e) Assistance under this section does not establish an 130.12 employer-employee relationship between any member of the 130.13 assisted family and the county or state. 130.14 Sec. 16. Minnesota Statutes 2000, section 119B.08, is 130.15 amended to read: 130.16 119B.08 [REPORTING AND PAYMENTS.] 130.17 Subdivision 1. [REPORTS.] The commissioner shall specify 130.18 requirements for reports under the same authority as provided to 130.19 the commissioner of human services in section 256.01, 130.20 subdivision 2, paragraph (17). 130.21 Subd. 2. [QUARTERLY PAYMENTS.] The commissioner may make 130.22 payments to each county in quarterly installments.The130.23commissioner may certify an advance up to 25 percent of the130.24allocation. SubsequentPayments shall be made on a 130.25 reimbursement basis for reported expenditures and may be 130.26 adjusted for anticipated spending patterns. Payments may be 130.27 withheld if quarterly reports are incomplete or untimely. 130.28 Subd. 3. [CHILD CARE FUND PLAN.] The county and designated 130.29 administering agency shall submit a child care fund plan to the 130.30 commissioneran annual child care fund plan in its biennial130.31community social services plan. The commissioner shall 130.32 establish the dates by which the county must submit the plans. 130.33 The plan shall include:130.34(1) a narrative of the total program for child care130.35services, including all policies and procedures that affect130.36eligible families and are used to administer the child care131.1funds;131.2(2) the methods used by the county to inform eligible131.3families of the availability of child care assistance and131.4related services;131.5(3) the provider rates paid for all children with special131.6needs by provider type;131.7(4) the county prioritization policy for all eligible131.8families under the basic sliding fee program; and131.9(5) otherinformation as requested by the department to 131.10 ensure compliance with the child care fund statutes and rules 131.11 promulgated by the commissioner. 131.12 The commissioner shall notify counties within6090 days of 131.13 the date the plan is submitted whether the plan is approved or 131.14 the corrections or information needed to approve the plan. The 131.15 commissioner shall withholda county's allocation until it has131.16an approved plan. Plans not approved by the end of the second131.17quarter after the plan is due may result in a 25 percent131.18reduction in allocation. Plans not approved by the end of the131.19third quarter after the plan is due may result in a 100 percent131.20reduction in the allocation to the countypayments to a county 131.21 until it has an approved plan. Counties are to maintain 131.22 services despite anyreduction in their allocationwithholding 131.23 of payments due to plans not being approved. 131.24 Subd. 3a. [RESTRICTED INCOME ELIGIBILITY.] If income 131.25 eligibility parameters have been restricted, counties may 131.26 continue to move families with income above the restricted 131.27 eligibility parameters but not to exceed the parameters in 131.28 section 119B.09, subdivision 1, paragraph (a), clause (1), into 131.29 the program using county funds. These expenditures must be 131.30 reported separately and counties will only be reimbursed for 131.31 these expenditures if, at the end of the biennium, total program 131.32 expenditures are at or below the most recent forecast. 131.33 Subd. 3b. [WAITING LIST.] Counties that do not move 131.34 families into the program with county funds must start a waiting 131.35 list if eligibility parameters are restricted and must report 131.36 this waiting list to the commissioner with other reports as 132.1 specified in subdivision 1. Counties must determine income, 132.2 authorized activities, and family size before placing a family 132.3 on the waiting list. 132.4 Subd. 3c. [FAMILY INFORMATION.] Counties that move 132.5 families into the program under subdivision 3a or place families 132.6 on the waiting list under subdivision 3b must report the number 132.7 of families served or placed on the waiting list, the date each 132.8 family began to receive service or was placed on the waiting 132.9 list, the income of the family and family size when they began 132.10 to receive service or were placed on the waiting list, and the 132.11 estimated cost of serving each family served under subdivision 132.12 3a to the commissioner on a form designated by the commissioner. 132.13 Subd. 4. [TERMINATION OF ALLOCATION.] The commissioner may 132.14 withhold,or reduce, or terminate the allocation of anyfunds 132.15 intended to reimburse counties for child care costs under the 132.16 child care fund if the countythatdoes not meet the reporting, 132.17 planning, or other requirements of this program. The 132.18commissioner shall reallocate to other counties money so reduced132.19or terminatedwithholding or reduction of funds under this 132.20 subdivision does not relieve counties of their requirements 132.21 under this chapter. 132.22 Sec. 17. Minnesota Statutes 2000, section 119B.09, 132.23 subdivision 1, is amended to read: 132.24 Subdivision 1. [GENERAL ELIGIBILITY REQUIREMENTS FOR ALL 132.25 APPLICANTS FOR CHILD CARE ASSISTANCE.] (a) Child care services 132.26 must be available to families who need child care to find or 132.27 keep employment or to obtain the training or education necessary 132.28 to find employment as defined in section 119B.10, and who:132.29(1) meet the requirements of section 119B.05; receive MFIP132.30assistance; and are participating in employment and training132.31services under chapter 256J or 256K;132.32(2) have household income below the eligibility levels for132.33MFIP; or132.34(3)have household income within a rangeestablished by the132.35commissioner.of 75 percent of state median income (SMI) or 132.36 below at program entry and above 75 percent of SMI at program 133.1 exit. The child care assistance program must be forecasted for 133.2 families who enter with incomes up to 50 percent of SMI. 133.3 Assistance to families who enter the child care assistance 133.4 program with incomes above 50 percent of SMI is subject to a 133.5 capped allocation and counties must establish a waiting list 133.6 under section 119B.08, subdivision 3b, if families cannot be 133.7 served with available funds. 133.8 (b) Child care services must be made available as in-kind 133.9 services. 133.10 (c) All applicants for child care assistance and families 133.11 currently receiving child care assistance must be assisted and 133.12 required to cooperate in establishment of paternity and 133.13 enforcement of child support obligations for all children in the 133.14 family as a condition of program eligibility. For purposes of 133.15 this section, a family is considered to meet the requirement for 133.16 cooperation when the family complies with the requirements of 133.17 section 256.741. 133.18 Sec. 18. Minnesota Statutes 2000, section 119B.09, 133.19 subdivision 2, is amended to read: 133.20 Subd. 2. [SLIDING FEE.] Child care services to eligible 133.21 familieswith incomes in the commissioner's established range133.22 must be made available on a sliding fee basis. The upper limit 133.23 ofthe rangeeligibility must beneither less than 70 percent133.24nor more than 9075 percent of the state median incomefor a133.25family of four, adjusted for family size. 133.26 Sec. 19. Minnesota Statutes 2000, section 119B.09, 133.27 subdivision 7, is amended to read: 133.28 Subd. 7. [DATE OF ELIGIBILITY FOR ASSISTANCE.] The date of 133.29 eligibility for child care assistance under this chapter is the 133.30 later of the date the application was signed;or the beginning 133.31 date of employment, education, or training; or the date a 133.32 determination has been made that the applicant is a participant 133.33 in employment and training services underMinnesota Rules, part133.343400.0080, subpart 2a, orchapter 256J or 256K. The date of 133.35 eligibility for thebasic sliding feeat-home infant child care 133.36 program is the later of the date the infant is born or, in a 134.1 county with abasic sliding feewaiting list, the date the 134.2 family applies for at-home infant child care. Payment ceases 134.3 for a family under the at-home infant child care program when a 134.4 family has used a total of 12 months of assistance as specified 134.5 under section 119B.061. Payment of child care assistance for 134.6 employed persons on MFIP is effective the date of employment or 134.7 the date of MFIP eligibility, whichever is later under section 134.8 119B.10. Payment of child care assistance for MFIP or work 134.9 first participants in employment and training services is 134.10 effective the date of commencement of the services or the date 134.11 of MFIP or work first eligibility, whichever is later.Payment134.12of child care assistance for transition year child care must be134.13made retroactive to the date of eligibility for transition year134.14child care.134.15 Sec. 20. Minnesota Statutes 2000, section 119B.10, is 134.16 amended to read: 134.17 119B.10 [EMPLOYMENT OR TRAINING ELIGIBILITY.] 134.18 Subdivision 1. [ASSISTANCE FOR PERSONS SEEKING AND 134.19 RETAINING EMPLOYMENT.] (a) Persons who are seeking employment 134.20 and who are eligible for assistance under thissectionchapter 134.21 are eligible to receive up to 240 hours of child care assistance 134.22 per calendar year. 134.23 (b) Employed persons who work at least an average of 20 134.24 hours andfull-time students who work at least an average of ten134.25hours a week andreceive at least a minimum wage for all hours 134.26 worked are eligible for continued child care assistance for 134.27 employment. For purposes of this section, work-study programs 134.28 must be counted as employment. Child care assistance during 134.29 employment must be authorized as provided in paragraphs (c) and 134.30 (d). 134.31 (c) When the person works for an hourly wage and the hourly 134.32 wage is equal to or greater than the applicable minimum wage, 134.33 child care assistance shall be provided for the actual hours of 134.34 employment, break, and mealtime during the employment and travel 134.35 time up to two hours per day. 134.36 (d) When the person does not work for an hourly wage, child 135.1 care assistance must be provided for the lesser of: 135.2 (1) the amount of child care determined by dividing gross 135.3 earned income by the applicable minimum wage, up to one hour 135.4 every eight hours for meals and break time, plus up to two hours 135.5 per day for travel time; or 135.6 (2) the amount of child care equal to the actual amount of 135.7 child care used during employment, including break and mealtime 135.8 during employment, and travel time up to two hours per day. 135.9 Subd. 1a. [ASSISTANCE FOR PERSONS PARTICIPATING IN 135.10 EMPLOYMENT PLAN.] The following persons are also eligible for 135.11 child care assistance: 135.12 (1) persons who are participating in employment orientation 135.13 or job search, or other employment or training activities that 135.14 are included in an approved employability development plan under 135.15 chapter 256K; 135.16 (2) persons who are participating in work, job search, job 135.17 support, employment, or training activities as required in their 135.18 job search support or employment plan, or in appeals, hearings, 135.19 assessments, or orientations according to chapter 256J; 135.20 (3) persons who are participating in social services 135.21 activities under chapter 256J or 256K as required in their 135.22 employment plan approved according to chapter 256J or 256K; and 135.23 (4) families who are participating in programs as required 135.24 in tribal contracts under section 119B.02, subdivision 2, or 135.25 256.01, subdivision 2. 135.26 Subd. 2. [FINANCIAL ELIGIBILITY REQUIRED.] Persons 135.27 participating in employment programs, training programs, or 135.28 education programs are eligible for continued assistance from 135.29 the child care fund, if they are financially eligible under the 135.30 sliding fee scale set by the commissioner in section 119B.12. 135.31 Subd. 3. [CHILD CARE ASSISTANCE DURING EDUCATION.] The 135.32 following persons are eligible for child care assistance for 135.33 education or training: 135.34 (1) persons who meet the requirements of section 119B.09 135.35 who are enrolled in remedial or basic education or English as a 135.36 second language, or persons up to the age of 19 who are enrolled 136.1 in an educational program to attain a high school diploma or 136.2 general equivalency diploma; and 136.3 (2) persons who meet the requirements of this section and 136.4 section 119B.09 must also receive child care assistance to 136.5 reduce the costs of child care for education when employed an 136.6 average of at least 20 hours per week under subdivision 1, and 136.7 are not receiving MFIP benefits as defined in section 119B.011, 136.8 subdivision 17. 136.9 Subd. 4. [SATISFACTORY PROGRESS.] Students enrolled in an 136.10 education program under section 119B.011, subdivision 11, must 136.11 be making satisfactory progress toward completion of the program 136.12 as stipulated in the school's satisfactory progress policy. 136.13 Subd. 5. [LIMITING DURATION OF TRAINING.] Counties may not 136.14 limit the duration of child care subsidies for a person in an 136.15 employment or educational program except when the person is 136.16 found to be ineligible under the child care fund eligibility 136.17 standards. Any limitation must be based on a person's 136.18 employment plan in the case of an MFIP participant. 136.19 Subd. 6. [MAXIMUM LENGTH OF TIME FOR TRAINING.] The 136.20 maximum length of time a participant is eligible for child care 136.21 assistance under the child care fund for education and training 136.22 is no more than the maximum time allowed to complete the credit 136.23 requirements for an associate or baccalaureate degree as 136.24 stipulated in the school's satisfactory progress policy. This 136.25 length of time excludes basic or remedial education programs, 136.26 English as a second language, high school, and general 136.27 equivalency diploma programs needed to prepare for 136.28 post-secondary education or employment. 136.29 Subd. 7. [MFIP STUDENT MOVES TO ANOTHER COUNTY.] If an 136.30 MFIP participant who is receiving child care assistance under 136.31 this chapter moves to another county, continues to participate 136.32 in educational or training programs authorized in the MFIP 136.33 participant's employment plans, and continues to be eligible for 136.34 child care assistance under this chapter, the MFIP participant 136.35 must receive continued child care assistance from the county 136.36 responsible for the MFIP participant's current employment plan 137.1 under section 256G.07. 137.2 Sec. 21. Minnesota Statutes 2000, section 119B.11, 137.3 subdivision 1, is amended to read: 137.4 Subdivision 1. [COUNTY CONTRIBUTIONS REQUIRED.]Beginning137.5July 1, 1997,(a) In addition to payments frombasic sliding fee137.6 child care assistance program participants, each county shall 137.7 contribute from county tax or other sources a fixed local match 137.8 equal to its calendar year19962000 required county 137.9 contributionreduced by the administrative funding loss that137.10would have occurred in state fiscal year 1996 under section137.11119B.15. The commissioner shall recover funds from the county 137.12 as necessary to bring county expenditures into compliance with 137.13 this subdivision. The commissioner may accept county 137.14 contributions, including contributions above the fixed local 137.15 match, in order to make state payments. 137.16 (b) The commissioner may accept payments from counties: (1) 137.17 to fulfill the county contribution as required under subdivision 137.18 1; (2) to pay for services authorized under this chapter beyond 137.19 those paid for with federal or state funds or with the required 137.20 county contributions; or (3) to pay for child care services not 137.21 authorized under this chapter. The commissioner may keep 137.22 accounts as necessary within the state's accounting system. The 137.23 receipts must be deposited in the special revenue fund. 137.24 Sec. 22. Minnesota Statutes 2000, section 119B.12, 137.25 subdivision 2, is amended to read: 137.26 Subd. 2. [PARENT FEE.] A family's monthly parent fee must 137.27 be a fixed percentage of its annual gross income. Parent fees 137.28 must apply to families eligible for child care assistance 137.29 undersections 119B.03 and 119B.05section 119B.09. Income must 137.30 be as defined in section 119B.011, subdivision 15. The fixed 137.31 percent is based on the relationship of the family's annual 137.32 gross income to 100 percent of state median income. Beginning 137.33 January 1, 1998, parent fees must begin at 75 percent of the 137.34 poverty level. The minimum parent fees for families between 75 137.35 percent and 100 percent of poverty level must be $5 per month. 137.36 Parent fees must be established in rule and must provide for 138.1 graduated movement to full payment. 138.2 Sec. 23. Minnesota Statutes 2000, section 119B.13, 138.3 subdivision 1, is amended to read: 138.4 Subdivision 1. [SUBSIDY RESTRICTIONS.] The maximum rate 138.5 paid for child care assistance under the child care fund may not 138.6 exceed the 75th percentile rate for like-care arrangements in 138.7 the county as surveyed by the commissioner. Beginning July 1, 138.8 2001, the 75th percentile rate established for a county may not 138.9 be less than the 75th percentile rate established for that 138.10 county during the previous year. A rate which includes a 138.11 provider bonus paid under subdivision 2 or a special needs rate 138.12 paid under subdivision 3 may be in excess of the maximum rate 138.13 allowed under this subdivision.The department shall monitor138.14the effect of this paragraph on provider rates.The county 138.15 shall pay the provider's full charges for every child in care up 138.16 to the maximum established.The commissioner shall determine138.17the maximum rate for each type of care, including special needs138.18and handicapped care.Not less than once every two years, the 138.19 commissioner shall evaluate market practices for payment of 138.20 absences and shall establish policies for payment of absent days 138.21 that reflect current market practice. 138.22 When the provider charge is greater than the maximum 138.23 provider rate allowed, the parent is responsible for payment of 138.24 the difference in the rates in addition to any family copayment 138.25 fee. 138.26 Sec. 24. Minnesota Statutes 2000, section 119B.13, 138.27 subdivision 6, is amended to read: 138.28 Subd. 6. [PROVIDER PAYMENTS.] Counties or the state shall 138.29 make vendor payments to the child care provider or pay the 138.30 parent directly for eligible child care expenses. If payments 138.31 for child care assistance are made to providers, the provider 138.32 shall bill the county for services provided within ten days of 138.33 the end of the month of service. If bills are submitted in 138.34 accordance with the provisions of this subdivision, a county or 138.35 the state shall issue payment to the provider of child care 138.36 under the child care fund within 30 days of receiving an invoice 139.1 from the provider. Counties or the state may establish policies 139.2 that make payments on a more frequent basis. A county's payment 139.3 policies must be included in the county's child care plan under 139.4 section 119B.08, subdivision 3. If payments are made by the 139.5 state, in addition to being in compliance with this subdivision, 139.6 the payments must be made in compliance with section 16A.124. 139.7 Sec. 25. Minnesota Statutes 2000, section 119B.15, is 139.8 amended to read: 139.9 119B.15 [ADMINISTRATIVE EXPENSES.] 139.10 The commissioner shall use up to 1/21 of the state and 139.11 federal funds availablefor the basic sliding fee program and139.121/21 of the state and federal funds availablefor theMFIPchild 139.13 care assistance program forpayments to counties for139.14administrative expensesthe administrative costs of the delivery 139.15 of direct services. 139.16 Sec. 26. [119B.221] [TEACHER EDUCATION AND COMPENSATION 139.17 HELPS PROGRAM.] 139.18 Subdivision 1. [ESTABLISHMENT.] The commissioner shall 139.19 establish a teacher education and compensation helps program 139.20 (TEACH) to provide tuition scholarships, education incentive 139.21 bonuses, and retention bonuses to child care and education 139.22 providers and staff. The commissioner shall transfer funds 139.23 provided under this section through a grant to a nonprofit 139.24 organization licensed to administer the TEACH program. The 139.25 commissioner shall establish application procedures, eligibility 139.26 criteria, terms, and other conditions necessary to administer 139.27 the program. 139.28 Subd. 2. [PROGRAM COMPONENTS.] (a) The nonprofit 139.29 organization shall distribute funds for: 139.30 (1) tuition scholarships up to $2,000 per year for courses 139.31 leading to the nationally recognized child development associate 139.32 credential or college-level courses leading to the University of 139.33 Minnesota competency-based training assessment credential, or 139.34 similar credentials recognized by the department or a 139.35 certificate, Associate of Arts, Bachelor of Arts, or Master of 139.36 Arts in early childhood development and school-age care; and 140.1 (2) education incentive bonuses of $300 to $500 to 140.2 participants in the tuition scholarship program if they complete 140.3 a year of working in the child care and education field. 140.4 (b) Applicants for the scholarship must be either employed 140.5 by a licensed child care center and working directly with 140.6 children, a licensed family child care provider, or an employee 140.7 in a school-age program operated under the auspices of a 140.8 license-exempt public program. Scholarship recipients who are 140.9 self-employed must contribute five percent of the total 140.10 scholarship. Applicants who are not self-employed must be 140.11 sponsored by their employer and the employer must contribute 140.12 five percent of the total scholarship. 140.13 (c) The organization shall also distribute funds for 140.14 retention bonuses of $600 to $3,500 annually to be paid 140.15 semiannually to child care and education providers and staff who 140.16 have worked in the child care and education field for at least 140.17 one year. The amount of the retention bonus must be based on 140.18 the applicant's level of education when they apply for the 140.19 bonus. A provider or staff is eligible for the bonus if: 140.20 (1) the provider or staff has worked in the field for at 140.21 least one year and has been working at the same location for at 140.22 least one year at the time of application; and 140.23 (2) is earning an hourly wage that is less than the hourly 140.24 wage equivalent of elementary school teachers in the school 140.25 district. 140.26 The commissioner shall annually adjust the scholarship and 140.27 bonus amounts by the rate of inflation as measured by the 140.28 Consumer Price Index. 140.29 Subd. 3. [ADVISORY COMMITTEE.] The TEACH program must have 140.30 an advisory board composed of five members from early childhood 140.31 and school-age care professional associations, three members 140.32 from professional associations that represent the cultural 140.33 diversity of communities; one member of the business community 140.34 working in the human resources field; two parents using child 140.35 care; one representative each from a Head Start program and an 140.36 early childhood and family education program; one licensed child 141.1 care center teacher; one licensed child care center director; 141.2 one licensed family child care provider; and one kindergarten 141.3 through third grade teacher. 141.4 Sec. 27. Minnesota Statutes 2000, section 119B.24, is 141.5 amended to read: 141.6 119B.24 [DUTIES OF COMMISSIONER.] 141.7 In addition to the powers and duties already conferred by 141.8 law, the commissioner of children, families, and learning shall: 141.9 (1) administer the child care fund, including the basic 141.10 sliding fee program authorized under sections 119B.011 to 141.11 119B.16; 141.12 (2) monitor the child care resource and referral programs 141.13 established under section 119B.19; and 141.14 (3) encourage child care providers to participate in a 141.15 nationally recognized accreditation system for early 141.16 childhood and school-age care programs.The commissioner shall141.17reimburse licensedSubject to approval by the commissioner, 141.18 family child care providers and early childhood and school-age 141.19 care programs shall be reimbursed for one-half of the direct 141.20 cost of accreditation fees, upon successful completion of 141.21 accreditation. 141.22 Sec. 28. Minnesota Statutes 2000, section 121A.16, is 141.23 amended to read: 141.24 121A.16 [EARLY CHILDHOOD HEALTH AND DEVELOPMENT SCREENING; 141.25 PURPOSE.] 141.26 The legislature finds that early detection of children's 141.27 health and developmental problems can reduce their later need 141.28 for costly care, minimize their physical and educational 141.29handicapsdisabilities, and aid in their rehabilitation. The 141.30 purpose of sections 121A.16 to 121A.19 is to assist parents and 141.31 communities in improving the health of Minnesota children and in 141.32 planning educational and health programs. To effect this 141.33 purpose in the most cost-effective and efficient manner 141.34 possible, the commissioners of children, families, and learning 141.35 and human services shall identify a plan to maximize the use of 141.36 early and periodic screening, diagnosis, and treatment program 142.1 funding for the purposes of sections 121A.16 to 121A.19, and 142.2 shall report to the legislature by December 1, 2001, their 142.3 recommendations for better coordination between the public 142.4 funding streams that currently exist for early childhood 142.5 screening. 142.6 Sec. 29. Minnesota Statutes 2000, section 121A.17, 142.7 subdivision 1, is amended to read: 142.8 Subdivision 1. [EARLY CHILDHOOD DEVELOPMENTAL SCREENING.] 142.9 Every school board must provide for a mandatory program of early 142.10 childhood developmental screening for children at least once 142.11 before school entrance, targeting children who are between 3-1/2142.12and four years old. Screening must be accomplished as near as 142.13 possible to the child's third birthday but may be as early as 142.14 age two at the option of the child's parent or legal guardian. 142.15 Children screened between the ages of two and three should be 142.16 rescreened at or after age three. This screening program must 142.17 be established either by one board, by two or more boards acting 142.18 in cooperation, by service cooperatives, by early childhood 142.19 family education programs, or by other existing programs. This 142.20 screening examination is a mandatory requirement for a student 142.21 to continue attending kindergarten or first grade in a public 142.22 school. A child need not submit to developmental screening 142.23 provided by a board if the child's health records indicate to 142.24 the board that the child has received comparable developmental 142.25 screening from a public or private health care organizationor, 142.26 individual health care provider, or Head Start. Districts are 142.27 encouraged to reduce the costs of preschool developmental 142.28 screening programs by utilizing volunteers in implementing the 142.29 program. 142.30 Sec. 30. Minnesota Statutes 2000, section 121A.17, 142.31 subdivision 3, is amended to read: 142.32 Subd. 3. [SCREENING PROGRAM.] (a) A screening program must 142.33 include at least the following components: developmental 142.34 assessments, health and developmental history, hearing and 142.35 vision screening or referral, immunization review and referral, 142.36 the child's height and weight, identification of risk factors 143.1 that may influence learning, an interview with the parent about 143.2 the child, and referral for assessment, diagnosis, and treatment 143.3 when potential needs are identified. The district and the 143.4 person performing or supervising the screening must provide a 143.5 parent or guardian with clear written notice that the parent or 143.6 guardian may decline to answer questions or provide information 143.7 about family circumstances that might affect development and 143.8 identification of risk factors that may influence learning. The 143.9 notice must clearly state that declining to answer questions or 143.10 provide information does not prevent the child from being 143.11 enrolled in kindergarten or first grade if all other screening 143.12 components are met. If a parent or guardian is not able to read 143.13 and comprehend the written notice, the district and the person 143.14 performing or supervising the screening must convey the 143.15 information in another manner. The notice must also inform the 143.16 parent or guardian that a child need not submit to the district 143.17 screening program if the child's health records indicate to the 143.18 school that the child has received comparable developmental 143.19 screening performed within the preceding 365 days by a public or 143.20 private health care organization or individual health care 143.21 provider. The notice must be given to a parent or guardian at 143.22 the time the district initially provides information to the 143.23 parent or guardian about screening and must be given again at 143.24 the screening location. 143.25 (b) All screening components shall be consistent with the 143.26 standards of the state commissioner of health and the 143.27 commissioner of children, families, and learning for early 143.28 developmental screening programs. A developmental screening 143.29 program must not provide laboratory tests or a physical 143.30 examination to any child. The district must request from the 143.31 public or private health care organization or the individual 143.32 health care provider the results of any laboratory test or 143.33 physical examination within the 12 months preceding a child's 143.34 scheduled screening. 143.35 (c) If a child is without health coverage, the school 143.36 district must refer the child to an appropriate health care 144.1 provider, and must provide application materials for 144.2 MinnesotaCare if appropriate. 144.3 (d) A board may offer additional components such as 144.4 nutritional, physical and dental assessments, review of family 144.5 circumstances that might affect development, blood pressure, and 144.6 laboratory tests, and health history. 144.7 (e) If a statement signed by the child's parent or guardian 144.8 is submitted to the administrator or other person having general 144.9 control and supervision of the school that the child has not 144.10 been screened because of conscientiously held beliefs of the 144.11 parent or guardian, the screening is not required. 144.12 Sec. 31. Minnesota Statutes 2000, section 121A.17, 144.13 subdivision 4, is amended to read: 144.14 Subd. 4. [FOLLOW-UP SCREENING.] If any child's screening 144.15 indicates a condition which requires diagnosis or treatment, the 144.16 child's parents shall be notified of the condition and the board 144.17 shall ensure that an appropriate follow-up and referral process 144.18 is available. Districts must report to the commissioner results 144.19 of referrals and subsequent interventions. 144.20 Sec. 32. Minnesota Statutes 2000, section 121A.17, 144.21 subdivision 5, is amended to read: 144.22 Subd. 5. [DEVELOPMENTAL SCREENING PROGRAM INFORMATION.] 144.23 The board must inform each resident family with a child eligible 144.24 to participate in the developmental screening program about the 144.25 availability of the program and the state's requirement that a 144.26 child receive developmental screeningnot later than 30 days144.27after the first day of attending kindergarten in a public school.144.28 as near as possible to the child's third birthday. The board 144.29 must also inform families that they may choose to have their 144.30 child screened as early as age two and that children screened 144.31 between the ages of two and three should be rescreened at or 144.32 after age three. If a child has not been screened prior to 144.33 school entrance, families must be notified of the state's 144.34 requirement that a child receive developmental screening not 144.35 later than 30 days after first attending kindergarten in a 144.36 public school. 145.1 Sec. 33. Minnesota Statutes 2000, section 121A.19, is 145.2 amended to read: 145.3 121A.19 [DEVELOPMENTAL SCREENING AID.] 145.4 Subdivision 1. [AID.] Each school year, the state must pay 145.5 a district$40$50 for each four-year-old child, $65 for each 145.6 three-year-old child, and $75 for each two-year-old child 145.7 screened according to the requirements of section 121A.17. Each 145.8 school year, the state must pay a district $5 per child for each 145.9 follow-up on referrals and subsequent interventions. If this 145.10 amount of aid is insufficient, the district may permanently 145.11 transfer from the general fund an amount that, when added to the 145.12 aid, is sufficient. 145.13 Subd. 2. [TECHNICAL ASSISTANCE.] Each school year, $55,000 145.14 must be available for statewide training, technical assistance, 145.15 and outreach. 145.16 Sec. 34. Minnesota Statutes 2000, section 124D.13, is 145.17 amended by adding a subdivision to read: 145.18 Subd. 2a. [PROGRAM PLAN REVIEW AND APPROVAL.] A school 145.19 district shall biennially by May 15 submit to the commissioner a 145.20 program plan describing how the district intends to use program 145.21 funds to address the program characteristics under subdivision 145.22 2, the coordination requirements under subdivision 8, the 145.23 specific needs of young children and their families in the 145.24 school district, and other information as required by the 145.25 commissioner. One-half of districts shall submit a plan in the 145.26 even-numbered fiscal years and the remaining districts in the 145.27 odd-numbered fiscal years as designated by the commissioner. If 145.28 the program is integrated with the district's school readiness 145.29 program, the district may request a waiver in advance to submit 145.30 only one joint program plan for the two programs. The 145.31 commissioner shall review and make comments or recommendations 145.32 within 90 days of receiving the plan. 145.33 Sec. 35. Minnesota Statutes 2000, section 124D.13, 145.34 subdivision 8, is amended to read: 145.35 Subd. 8. [COORDINATION.] A districtis encouraged to145.36coordinate the program with its special education and vocational146.1education programs and with related services provided by other146.2governmental agencies and nonprofit agencies.must coordinate 146.3 the early childhood family education program with existing 146.4 community-based programs and service providers including school 146.5 readiness, Head Start, child care, and others, and foster 146.6 collaboration among agencies and other community-based 146.7 organizations and programs that provide flexible, family-focused 146.8 services to families with young children. The district must 146.9 actively encourage greater sharing of information, 146.10 responsibility, and accountability among service providers and 146.11 facilitate the children's transition to kindergarten. 146.12 A district is encouraged to coordinate adult basic 146.13 education programs provided to parents and early childhood 146.14 family education programs provided to children to accomplish the 146.15 goals of section 124D.895. 146.16 Sec. 36. Minnesota Statutes 2000, section 124D.13, 146.17 subdivision 9, is amended to read: 146.18 Subd. 9. [DISTRICT ADVISORY COUNCILS.] The board must 146.19 appoint an advisory council from the area in which the program 146.20 is provided. A majority of the council must be parents 146.21 participating in the program. The council must assist the board 146.22 in developing, planning, and monitoring the early childhood 146.23 family education program and in integrating service delivery 146.24 with other early childhood and family services within the 146.25 community. The council must report to the board and the 146.26 community education advisory council. 146.27 Sec. 37. Minnesota Statutes 2000, section 124D.13, is 146.28 amended by adding a subdivision to read: 146.29 Subd. 13. [ANNUAL REPORT.] A district is required to 146.30 report annual program and participant data as defined by the 146.31 commissioner by August 15 for the school year ending June 30 of 146.32 the same calendar year. A district's failure to report the 146.33 necessary data may result in the withholding of future program 146.34 funds. 146.35 Sec. 38. Minnesota Statutes 2000, section 124D.135, 146.36 subdivision 1, is amended to read: 147.1 Subdivision 1. [REVENUE.] The revenue for early childhood 147.2 family education programs for a school district equals$113.50147.3for fiscal years 2000 and 2001 and$120 for fiscal year 2002 and 147.4 $125.60 for fiscal year 2003 and later fiscal years times the 147.5 greater of: 147.6 (1) 150; or 147.7 (2) the number of people under five years of age residing 147.8 in the district on October 1 of the previous school year. 147.9 Sec. 39. Minnesota Statutes 2000, section 124D.135, 147.10 subdivision 3, is amended to read: 147.11 Subd. 3. [EARLY CHILDHOOD FAMILY EDUCATION LEVY.] For 147.12 fiscal year 2001 to obtain early childhood family education 147.13 revenue, a district may levy an amount equal to the tax rate of 147.14.5282.5045 percent times the adjusted tax capacity of the 147.15 district for the year preceding the year the levy is certified. 147.16 Beginning with levies for fiscal year 2002, by September 30 of 147.17 each year, the commissioner shall establish a tax rate for early 147.18 childhood education revenue that raises $21,027,000 for fiscal 147.19 year 2002 and $22,135,000 in fiscal year 2003 and each 147.20 subsequent year. If the amount of the early childhood family 147.21 education levy would exceed the early childhood family education 147.22 revenue, the early childhood family education levy must equal 147.23 the early childhood family education revenue. 147.24 Sec. 40. Minnesota Statutes 2000, section 124D.135, 147.25 subdivision 7, is amended to read: 147.26 Subd. 7. [RESERVE ACCOUNT.] (a) Early childhood family 147.27 education revenue, which includes aids, levies, fees, grants, 147.28 and all other revenues received by the district for early 147.29 childhood family education programs, must be maintained in a 147.30 reserve account within the community service fund. 147.31 (b) This reserve account may not exceed 25 percent of the 147.32 district's annual early childhood family education revenue. If 147.33 a district anticipates that the reserve account may exceed 25 147.34 percent because of extenuating circumstances, prior approval to 147.35 exceed the limit must be obtained in writing from the 147.36 commissioner. 148.1 (c) If a deficit in the reserve account exists at the end 148.2 of a fiscal year and the deficit is not eliminated by revenues 148.3 from operations in the next year, then the deficit must be 148.4 eliminated by a permanent fund transfer from the district's 148.5 general fund at the end of the second year. 148.6 (d) Notwithstanding paragraph (c), a district may incur a 148.7 deficit in the fund for up to three years without making the 148.8 permanent transfer if the district submits to the commissioner 148.9 by January 1 of the second fiscal year a plan for eliminating 148.10 the deficit at the end of the third fiscal year. 148.11 Sec. 41. Minnesota Statutes 2000, section 124D.135, is 148.12 amended by adding a subdivision to read: 148.13 Subd. 8. [ADJUSTMENT FOR UNUSED FUNDS.] A district that 148.14 has an early childhood family education reserve fund balance 148.15 that exceeds 25 percent of the annual revenue for the program 148.16 shall have its future aid and levy authority reduced 148.17 accordingly. This reduction shall be made in the fiscal year 148.18 that begins no more than 30 months after the excess occurs in 148.19 the reserve account. The commissioner shall reallocate aid 148.20 reduced under this provision to other eligible school districts. 148.21 Sec. 42. Minnesota Statutes 2000, section 124D.15, is 148.22 amended to read: 148.23 124D.15 [SCHOOL READINESS PROGRAMS.] 148.24 Subdivision 1. [ESTABLISHMENT; PURPOSE.] A district or a 148.25 group of districts may establish a school readiness program that 148.26 provides a continuum of flexible services for eligible children. 148.27 The purpose of a school readiness program is to provide all 148.28 eligible children adequate opportunities to participate in child 148.29 development programs that enable the children to enter school 148.30 with the necessary skills and behavior and family stability and 148.31 support to progress and flourish. 148.32 Subd. 2. [CHILD ELIGIBILITY.] (a) A childis eligible148.33tomay participate in a school readiness program offered 148.34bythrough the resident district or another district if the 148.35 child is: 148.36 (1) at least 3-1/2 years old but has not entered 149.1 kindergarten;and 149.2(2)the child receives developmental screening under 149.3 section 121A.17 within 90 days of enrolling in the programor149.4the child's fourth birthday.; and 149.5(b)(2)a childyounger than 3-1/2 years oldmay149.6participate in a school readiness programif the district or 149.7 group of districtsthatestablishesthe program determines that149.8the program can more effectively accomplish its purpose by149.9including children younger than 3-1/2 years oldor sponsors such 149.10 a program. 149.11 Subd. 3. [PROGRAM ELIGIBILITY COMPONENTS.] A school 149.12 readiness program must include the following: 149.13 (1) a comprehensive plan to anticipate and meet the needs 149.14 of participating families by coordinating existing social 149.15 services, health care, nutrition, child care, and other 149.16 community programs and by fostering collaboration among agencies 149.17 or other community-based organizations and programs that provide 149.18 a full range of flexible, family-focused services to families 149.19 with young children; 149.20 (2) a development and learning component to help children 149.21 develop appropriate social, cognitive, and physical skills, and 149.22 emotional well-being; 149.23 (3) health referral or health services to address 149.24 children's medical, dental, mental health, and nutritional 149.25 needs; 149.26 (4) a nutrition component to meet children's daily 149.27 nutritional needs; 149.28 (5)parents'family involvement and education in meeting 149.29 children's educational, health, social service, and other needs; 149.30 (6) community outreach to ensure participation by families 149.31 who represent the racial, cultural, and economic diversity of 149.32 the community; 149.33 (7) community-based staff and program resources, including 149.34 interpreters, that reflect the racial and ethnic characteristics 149.35 of the children participating in the program; and 149.36 (8) a literacy component to ensure that the literacy needs 150.1 of parents are addressed through referral to and cooperation 150.2 with adult basic education programs and other adult literacy 150.3 programs. 150.4 Subd. 4. [PROGRAM GOALS.] School readiness programs are 150.5 encouraged to: 150.6(1) prepare an individualized service plan to meet each150.7child's developmental and learning needs;150.8(2) provide parent education to increase parents'150.9knowledge, understanding, skills, and experience in child150.10development and learning;150.11(3) foster substantial parent involvement that may include150.12having parents develop curriculum or serve as a paid or150.13volunteer educator, resource person, or other staff;150.14(4) identify the needs of families in the content of the150.15child's school readiness and family literacy;150.16(5) expand collaboration with public organizations,150.17businesses, nonprofit organizations, or other private150.18organizations to develop a coordinated system of flexible,150.19family-focused services available to anticipate and meet the150.20full range of needs of all eligible children and their families;150.21(6) coordinate treatment and follow-up services for150.22children's identified physical and mental health problems;150.23(7) offer transportation for eligible children and their150.24families for whom other forms of transportation are unavailable150.25or would constitute an excessive financial burden;150.26(8) make substantial outreach efforts to assure significant150.27participation by families with the greatest needs, including150.28those families whose income level does not exceed the most150.29recent update of the poverty guidelines required by sections 652150.30and 673(2) of the Omnibus Budget Reconciliation Act of 1981150.31(Public Law Number 97-35);150.32(9) use community-based, trained home visitors serving as150.33paraprofessionals to provide social support, referrals, parent150.34education, and other services;150.35(10) create community-based family resource centers and150.36interdisciplinary teams; and151.1(11) enhance the quality of family or center-based child151.2care programs by providing supplementary services and resources,151.3staff training, and assistance with children with special needs.151.4 (1) expand collaboration with public organizations, 151.5 businesses, nonprofit organizations, or other private 151.6 organizations to develop a coordinated system of flexible, 151.7 family-focused services available to anticipate and meet the 151.8 full range of needs of all eligible children and their families; 151.9 (2) make substantial outreach efforts to assure significant 151.10 participation by families with the greatest needs, including, 151.11 but not limited to, those families whose income level does not 151.12 exceed the exit level for MFIP participants as identified in 151.13 chapter 256; 151.14 (3) identify the needs of families in the context of the 151.15 child's school readiness and family literacy; 151.16 (4) enhance the quality of family or center-based child 151.17 care programs by providing outreach, supplementary services and 151.18 resources, staff training, and assistance with children with 151.19 special needs; 151.20 (5) prepare an individualized learning plan to meet each 151.21 child's developmental and learning needs to ensure progress 151.22 towards school readiness; 151.23 (6) foster substantial parent involvement that may include 151.24 having parents serve as paid or volunteer educators, resource 151.25 persons, or other staff; and 151.26 (7) provide parent education to increase parents' 151.27 knowledge, understanding, skills, and experience in child 151.28 development and learning. 151.29 Subd. 4a. [STRATEGIES FOR ACHIEVING GOALS.] School 151.30 readiness programs are encouraged to: 151.31 (1) offer transportation for eligible children and their 151.32 families for whom other forms of transportation are unavailable 151.33 or would constitute an excessive financial burden; 151.34 (2) use community-based, trained home visitors serving as 151.35 paraprofessionals to provide social support, referrals, parent 151.36 education, staff development for child care providers, and other 152.1 services; 152.2 (3) create community-based family resource centers and 152.3 interdisciplinary teams; and 152.4 (4) coordinate treatment and follow-up services for 152.5 children's identified physical and mental health problems. 152.6 Subd. 5. [SERVICES WITH NEW OR EXISTING PROVIDERS.] A 152.7 districtis encouraged tomay contract with a public, private, 152.8 or nonprofit organization to provide eligible children 152.9 developmentally appropriate services that meet the program 152.10 requirements in subdivision 3.In the alternative,A district 152.11 may provide quality enhancement grants to reach a school 152.12 readiness level of quality under subdivision 11. A district may 152.13 pay tuition or fees to place an eligible child in an existing 152.14 program. A district may establish a new program where no 152.15 existing, reasonably accessible program meets the program 152.16 requirements in subdivision 3. Services may be provided in a 152.17 site-based program or in the home of the child or a combination 152.18 of both. The district may not restrict participation to 152.19 district residents. 152.20 Subd. 6. [COORDINATION WITH OTHER PROVIDERS.] (a) The 152.21 district must coordinate the school readiness program with 152.22 existing community-basedsocial servicesservice providers, Head 152.23 Start, child care, and others and foster collaboration among 152.24 agencies and other community-based organizations and programs 152.25 that provide flexible, family-focused services to families with 152.26 children. The district must actively encourage greater sharing 152.27 of information, responsibility, and accountability among service 152.28 providers and facilitate children's transition between 152.29 programs and to kindergarten. 152.30 (b) To the extent possible, resources must follow the 152.31 children so that children receive appropriate services in a 152.32 stable environment and are not moved from one program location 152.33 to another. Where geographically feasible, the district must 152.34 actively promotecolocatingcollaboration and integration of 152.35 services for children and their families. 152.36 Subd. 7. [ADVISORY COUNCIL.] Each school readiness program 153.1 must have an advisory council composed of members of existing 153.2 early education-related boards, parents of participating 153.3 children, child care providers, representatives from Head Start 153.4 and early childhood and family education, if those programs are 153.5 offered in the district, culturally specific service 153.6 organizations, the local business community, health services 153.7 providers, local resource and referral agencies,and153.8representatives ofearly childhood service providers, and the 153.9 kindergarten through grade 12 system, and may include other 153.10 community-based organizations.The council must advise the153.11board in creating and administering the program and must monitor153.12the progress of the program. The council must ensure that153.13children at greatest risk receive appropriate services. If the153.14board is unable to appoint to the advisory council members of153.15existing early education-related boards, it must appoint parents153.16of children enrolled in the program who represent the racial,153.17cultural, and economic diversity of the district and153.18representatives of early childhood service providers as153.19representatives to an existing advisory council.A majority of 153.20 council members must be parents participating in the program. 153.21 The council must advise the board in planning, developing, and 153.22 monitoring the program and in integrating service delivery with 153.23 other early childhood and family services within the community. 153.24 The council must assure that children at greatest risk receive 153.25 appropriate services. In lieu of establishing a new or separate 153.26 advisory council, a board may appoint parents of children 153.27 enrolled in the program who represent the racial, cultural, and 153.28 economic diversity of the district and representatives of early 153.29 childhood service providers as representatives to an existing 153.30 advisory council with comparable purpose and function to fulfill 153.31 the responsibilities described in this subdivision. 153.32 Subd. 8. [PRIORITIZING SERVICES.] (a) The district must 153.33 give greatest priority to providing services to eligible 153.34 children identified, through a means such as the early childhood 153.35 screening process, as being developmentally disadvantaged or 153.36 experiencing risk factors that could impede their school 154.1 readiness. 154.2 (b) As available funding increases substantially over the 154.3 fiscal year 2000 level, emphasis shall be given to strengthening 154.4 services for children birth to age 3-1/2 and the quality of 154.5 child care. 154.6 Subd. 9. [CHILD RECORDS.] (a) A record of a child's 154.7 performance, progress,anddevelopment, and services received 154.8 must be maintained in the child's cumulative record while 154.9 enrolled in the school readiness program. The cumulative record 154.10 must be used for the purpose of planning activities to suit 154.11 individual needs and shall become part of the child's permanent 154.12 record. The cumulative record is private data under chapter 154.13 13. Information in the record may be disseminated to an 154.14 educator or service provider only to the extent that that person 154.15 has a need to know the information. 154.16 (b) An educator or service provider may transmit 154.17 information in the child's cumulative record to an educator or 154.18 service provider in another program for young children when the 154.19 child applies to enroll in that other program including 154.20 kindergarten. 154.21 Subd. 10. [SUPERVISION.] A program provided by a board 154.22 must be supervised by a licensed early childhood teacher, a 154.23 certified early childhood educator, or a licensed parent 154.24 educator. A program provided according to a contract between a 154.25 district and a nonprofit organization or another private 154.26 organization must be supervised and staffed according to the 154.27 terms of the contract. 154.28 Subd. 11. [DISTRICT STANDARDS.] The board of the district 154.29 must develop standards for the school readiness program that 154.30 reflect theeligibility criteriaprogram components in 154.31 subdivision 3. The board must consider including in the 154.32 standards the program characteristics in subdivision 4. 154.33 Subd. 12. [PROGRAM FEES.] A district may adopt a sliding 154.34 fee schedule based on a family's income but must waive a fee for 154.35 a participant unable to pay. The fees charged must be designed 154.36 to enable eligible children of all socioeconomic levels to 155.1 participate in the program. 155.2 Subd. 13. [ADDITIONAL REVENUE.] A district or an 155.3 organization contracting with a district may receive money or 155.4 in-kind services from a public or private organization. 155.5 Subd. 14. [ANNUAL REPORTING.] A district must report 155.6 annual program and participant data as defined by the 155.7 commissioner by August 15 for the school year ending June 30 of 155.8 the same calendar year. A district's failure to report the 155.9 necessary data may result in withholding of future program funds. 155.10 Sec. 43. Minnesota Statutes 2000, section 124D.16, is 155.11 amended to read: 155.12 124D.16 [SCHOOL READINESS AID.] 155.13 Subdivision 1. [PROGRAM REVIEW AND APPROVAL.] A school 155.14 district shall biennially by May 1 submit to the commissioners 155.15 of children, families, and learning and health the program plan 155.16 required under this subdivision. As determined by the 155.17 commissioners, one-half of the districts shall first submit the 155.18 plan by May1 of the 2000-200115 of the 2001-2002 school year 155.19 and one-half of the districts shall first submit the plan by May 155.201 of the 2001-200215 of the 2002-2003 school year. The program 155.21 plan must include: 155.22 (1) adescription ofcommunity needs assessment of children 155.23 birth to age five; 155.24 (2) a description of the services to be provided, including 155.25 services for children birth to age 3-1/2; 155.26(2)(3) a plan to ensure children at greatest risk receive 155.27 appropriate services; 155.28(3)(4) a description of procedures and methods to be used 155.29 to coordinate public and private resources to maximize use of 155.30 existing community resources, including school districts, child 155.31 care, Head Start, health carefacilitiesservices, government 155.32 agencies, neighborhood organizations, and other resources 155.33 knowledgeable in early childhood development; 155.34(4)(5) comments about the district's proposed program by 155.35 the advisory council required by section 124D.15, subdivision 7; 155.36 and 156.1(5)(6) agreements with all participating service providers. 156.2 Each commissioner may review and comment on the program, 156.3 and make recommendations to the commissionerof children,156.4families, and learning,within3090 days of receiving the plan. 156.5 Subd. 1a. [EVALUATION.] The commissioner, in consultation 156.6 with early childhood teachers, elementary school classroom 156.7 teachers, child care providers, Head Start educators, parent 156.8 educators, and teacher educators shall develop an evaluation 156.9 framework for qualifying school sites to use in documenting 156.10 results. The evaluation must use empirical and qualitative 156.11 methods to gather information on the following: 156.12 (1) progress toward ensuring that every child entering 156.13 kindergarten has the knowledge and skills necessary to succeed 156.14 in school; 156.15 (2) an assessment of enrolling students by their teacher; 156.16 and 156.17 (3) measures of parental satisfaction and parental 156.18 involvement. 156.19 The commissioner shall assist a school site with its evaluation 156.20 at the request of the site. 156.21 Up to five percent of school readiness program aid may be 156.22 used for evaluation. 156.23 Subd. 2. [AMOUNT OF AID.] (a) A district is eligible to 156.24 receive school readiness aid if the program planasrequired by 156.25 subdivision 1 has been approved by the commissioner. 156.26 (b) For fiscal year19982002 and thereafter, a district 156.27 must receive school readiness aid equal to: 156.28 (1) the number of eligible four-year old children in the 156.29 district on October 1 for the previous school year times the 156.30 ratio of 50 percent of the total school readiness aid for that 156.31 year to the total number of eligible four-year old children 156.32 reported to the commissioner forthatthe previous school year; 156.33 plus 156.34 (2) the number of pupils enrolled in the school district 156.35 from families eligible for the free or reduced school lunch 156.36 program for the second previous school year times the ratio of 157.1 50 percent of the total school readiness aid for that year to 157.2 the total number of pupils in the state from families eligible 157.3 for the free or reduced school lunch program for the second 157.4 previous school year. 157.5 Subd. 2a. [AID GUARANTEE.] Notwithstanding subdivision 2, 157.6 for fiscal year 2002, any school readiness program qualifying 157.7 for aid under this section that receives less aid than in fiscal 157.8 year 2001 must receive additional aid equal to the difference 157.9 between the aid paid under section 124D.16, subdivision 2, 157.10 paragraph (b), clause (2), for fiscal year 2001 and the amount 157.11 of aid it is eligible for in fiscal year 2002 under section 157.12 124D.16, subdivision 2, paragraph (b), clause (2). The aid 157.13 guarantee applies only to the aid for the free or reduced school 157.14 lunch program in section 124D.16, subdivision 2, paragraph (b), 157.15 clause (2). 157.16 Subd. 3. [USE OF AID.] School readiness aid shall be used 157.17 only to provide a school readiness program and may be used to 157.18 provide transportation. Aid used for instruction must be 157.19 targeted to children identified in section 124D.15, subdivision 157.20 8a. Not more than five percent of the aid may be used for the 157.21 cost of administering the program. Aid must be used to 157.22 supplement and not supplant local, state, and federal funding. 157.23 Aid may not be used for instruction and services required under 157.24 sections 125A.03 to 125A.24 and 125A.65. Aid may not be used to 157.25 purchase land or construct buildings, but may be used to lease 157.26 or renovate existing buildings. 157.27 Subd. 4. [SEPARATE ACCOUNTS.] The district must deposit 157.28 school readiness aid in a separate account within the community 157.29 education fund. 157.30 Subd. 5. [RESERVE ACCOUNTS.] (a) School readiness revenue, 157.31 which includes aids, fees, grants, and all other revenues 157.32 received by the district school readiness programs, must be 157.33 maintained in a reserve account within the community service 157.34 fund. 157.35 (b) The reserve account may not exceed 25 percent of the 157.36 annual school readiness revenue. If a school district 158.1 anticipates that the amount in the reserve account may exceed 25 158.2 percent of the annual school readiness program revenue, prior 158.3 approval to exceed this amount must be obtained in writing from 158.4 the commissioner of children, families, and learning. 158.5 (c) If a deficit in the reserve account exists at the end 158.6 of a fiscal year, and the deficit is not eliminated by revenues 158.7 from operations in the next year, then the deficit must be 158.8 eliminated by a permanent fund transfer from the district's 158.9 general fund at the end of the second year. 158.10 (d) Notwithstanding paragraph (c), a district may incur a 158.11 deficit in the fund for up to three years without making the 158.12 permanent transfer if the district submits to the commissioner 158.13 by January 1 of the second fiscal year a plan for eliminating 158.14 the deficit at the end of the third fiscal year. 158.15 Subd. 6. [ADJUSTMENT FOR UNUSED FUNDS.] A district that 158.16 has a school readiness reserve fund balance that exceeds 25 158.17 percent of the annual amount of revenue for the program shall 158.18 have the future allocations reduced accordingly. This reduction 158.19 shall be made in the fiscal year that begins no more than 30 158.20 months after the excess occurs in the reserve account. The 158.21 commissioner shall reallocate aid reduced under this provision 158.22 to other eligible school districts. 158.23 Sec. 44. [INTERAGENCY AUTISM COORDINATING COMMITTEE.] 158.24 (a) The commissioner of children, families, and learning 158.25 shall establish an interagency committee to coordinate state 158.26 efforts related to servicing children with autism. The 158.27 committee shall include representatives of the departments of 158.28 children, families, and learning and human services, parents or 158.29 guardians of children with autism, pediatricians, local public 158.30 health officials, and representatives of private or nonprofit 158.31 organizations that advocate on behalf of children with autism. 158.32 (b) The interagency autism coordinating committee shall 158.33 study and recommend by December 1, 2001, to the committees in 158.34 the legislature charged with early childhood through grade 12 158.35 education policy and finance matters a plan for improving 158.36 efforts at early assessment and identification of autism in 159.1 young children. The plan must consider: 159.2 (1) all existing assessment program options; 159.3 (2) public and private funding sources, including 159.4 programmatic funding for early and periodic screening, 159.5 diagnosis, and treatment; and 159.6 (3) current research-based best practice models. 159.7 The plan must be designed to make optimal use of existing public 159.8 resources. 159.9 Sec. 45. [ESTABLISHMENT OF EARLY CHILDHOOD CARE AND 159.10 EDUCATION SERVICES DEMONSTRATION PROJECTS.] 159.11 Subdivision 1. [PURPOSE.] The purpose of the demonstration 159.12 projects is to coordinate a community system that builds upon 159.13 existing early childhood care and education services to ensure a 159.14 full continuum of services are available to promote positive 159.15 outcomes for young children and to collect the data necessary to 159.16 develop a statewide funding formula for distributing funds to 159.17 individual service sites. The data must include, but is not 159.18 limited to: 159.19 (1) the care and educational needs of children and how 159.20 those needs are assessed and measured; 159.21 (2) the type of services to provide that will improve 159.22 outcomes; and 159.23 (3) the most effective way to distribute public funds for 159.24 early childhood services. 159.25 Subdivisions 2 to 10 describe the structure and 159.26 requirements of one demonstration project model and subdivisions 159.27 11 and 12 describe the structure and requirements of a second 159.28 demonstration project model. 159.29 Subd. 2. [DEFINITIONS.] (a) "Approval board" means the 159.30 group composed of the county human services director, the 159.31 superintendent of schools, the public health director, the child 159.32 care resources and referral agency, Head Start grantees, or 159.33 their representatives. 159.34 (b) "Commissioner" means the commissioner of children, 159.35 families, and learning. 159.36 (c) "Community" means a county, a school district, a group 160.1 of school districts, a political subdivision, a service 160.2 cooperative, or a combination of any of these entities. 160.3 (d) "Early childhood care and education" means the services 160.4 available for children from birth to kindergarten coordinated by 160.5 local early childhood boards to fulfill the responsibilities 160.6 under this section. 160.7 (e) "Local early childhood board" means a group organized 160.8 under 501(c)(3) of the Internal Revenue Code and composed of one 160.9 member of the following groups, if they exist in the community: 160.10 (1) other early childhood education-related boards; 160.11 (2) three parents of children participating in programs at 160.12 qualified sites that represent the economic and ethnic diversity 160.13 of the community; 160.14 (3) licensed child care providers; 160.15 (4) early childhood education providers; 160.16 (5) health services providers; 160.17 (6) public or private nonprofit agencies serving youth and 160.18 families; 160.19 (7) the school board; 160.20 (8) the local teachers' union; 160.21 (9) local child care resource and referral programs; 160.22 (10) Head Start; and 160.23 (11) a representative from the state interagency committee. 160.24 (f) "Qualified site" means a physical location providing 160.25 early childhood care and education services that has been 160.26 approved by the local early childhood board according to 160.27 criteria under subdivision 6. 160.28 Subd. 3. [DUTIES OF COMMISSIONER.] The commissioner shall 160.29 supervise the development of an integrated early childhood care 160.30 and education system by: 160.31 (1) selecting early childhood care and education 160.32 demonstration projects that model effective practices under this 160.33 section through a competitive process; 160.34 (2) defining outcomes and indicators for a local early 160.35 childhood care and education system based on current research; 160.36 (3) providing technical assistance to local approval boards 161.1 and approved demonstration projects; 161.2 (4) developing guidelines for community-based planning; 161.3 (5) distributing public funds to demonstration projects; 161.4 (6) establishing minimum administrative and service 161.5 guidelines and standards for local early childhood boards; 161.6 (7) collecting data necessary to determine factors 161.7 appropriate for formula-based funding of early childhood care 161.8 and education services on a statewide basis; 161.9 (8) establishing data systems to enable the collection and 161.10 analysis of data from a variety of public and private sources 161.11 and payments to individual sites on a statewide basis; and 161.12 (9) designing and implementing a method of monitoring and 161.13 evaluating early childhood care and education criteria and local 161.14 plans. 161.15 Subd. 4. [GRANT APPLICATION OF APPROVAL BOARDS.] (a) A 161.16 community approval board may apply for a grant to establish a 161.17 demonstration project. The applicant must include: 161.18 (1) designation by the approval board of a local early 161.19 childhood board that meets the requirements of subdivision 2, 161.20 paragraph (d); 161.21 (2) a description of how it will oversee the development of 161.22 a local early childhood care and education plan; and 161.23 (3) the process the local early childhood board will use to 161.24 qualify a variety of sites that represent diverse delivery 161.25 systems within the grantee's available resources. 161.26 (b) The commissioner must give preference to applicants 161.27 with: 161.28 (1) designated early childhood boards that represent 161.29 different and identifiable governance structures; 161.30 (2) approval boards with the broadest representation of 161.31 community partners identified in subdivision 2, paragraph (a); 161.32 (3) the capacity to qualify a variety of sites that 161.33 represent diverse delivery systems within the grantee's 161.34 available resources; 161.35 (4) a plan to involve public and private community 161.36 resources to strategically invest in early childhood care and 162.1 education services at the community level; and 162.2 (5) the capacity of the local early childhood board to 162.3 measure outcomes. 162.4 Subd. 5. [DUTIES OF LOCAL EARLY CHILDHOOD BOARD.] (a) 162.5 Local early childhood boards must: 162.6 (1) assess the community's current capacity to address 162.7 early childhood care and education needs of children from birth 162.8 to kindergarten entrance; 162.9 (2) create and implement a program to qualify early 162.10 childhood care and education sites in its community according to 162.11 the criteria under subdivision 6; 162.12 (3) demonstrate the capacity to provide data necessary to 162.13 meet the requirements under subdivision 1; 162.14 (4) create an ongoing evaluation of each site in relation 162.15 to outcomes for children and families; 162.16 (5) provide an appropriate public forum in the community to 162.17 evaluate whether a qualified early childhood care and education 162.18 site continues to meet the criteria under subdivision 6; 162.19 (6) revoke the qualification of a site that fails to meet 162.20 the criteria under subdivision 6; and 162.21 (7) collect data and submit reports related to risk 162.22 factors, including, but not limited to: 162.23 (i) families and children living in poverty; 162.24 (ii) families whose income is 50 percent or less of the 162.25 state median income; 162.26 (iii) families receiving assistance from the Minnesota 162.27 family investment program; 162.28 (iv) children who first learned a language other than 162.29 English, come from a home where the language usually spoken is 162.30 other than English, or usually speak a language other than 162.31 English; 162.32 (v) families identifying themselves in an ethnic or racial 162.33 community other than that which represents the majority of the 162.34 state; 162.35 (vi) mothers who lack literacy competency as demonstrated 162.36 by the absence of a GED or high school diploma; and 163.1 (vii) children exhibiting a health or developmental 163.2 condition identified as requiring referral and follow-up 163.3 services. 163.4 (b) Local early childhood boards must report the number of 163.5 children or families exhibiting each risk factor who: 163.6 (1) are served through the demonstration project; 163.7 (2) reside in the area served in the qualifying site; and 163.8 (3) reside in the community. 163.9 (c) Local early childhood boards must report on types of 163.10 overview provided in categories designated by the commissioner. 163.11 Subd. 6. [CRITERIA FOR QUALIFIED SITES.] A qualified site 163.12 must meet the following criteria: 163.13 (1) the site must be a licensed, nonprofit organization, 163.14 except for family child care sites, child care centers, or 163.15 school districts; and 163.16 (2) the learning environment must be developmentally and 163.17 linguistically appropriate, taking into account children's 163.18 individual rates of development and interests, temperaments, 163.19 cultural backgrounds, and learning styles. 163.20 Subd. 7. [LOCAL PLAN.] The local early childhood board of 163.21 each demonstration project shall submit a local early childhood 163.22 care and education plan to the commissioner and shall update the 163.23 plan annually. The plan must include: 163.24 (1) a description of the services to be provided in the 163.25 community and their relationship to the needs of the population; 163.26 (2) a description of the strategies to ensure that children 163.27 at greatest risk receive appropriate services; 163.28 (3) a description of procedures and methods used to 163.29 coordinate public and private resources and maximize use of 163.30 existing community resources including, but not limited to, 163.31 school districts, health care facilities, child care providers, 163.32 government agencies, and neighborhood organizations; 163.33 (4) a data-set including, but not limited to, the number 163.34 and type of qualified sites in the community, the demographic 163.35 information of children served at all qualified sites, the 163.36 income levels of the families of all children served, the 164.1 community of origin of all children served, and the salaries of 164.2 all early child care and education providers; and 164.3 (5) agreements with all participating service providers. 164.4 Subd. 8. [REPORTING BY QUALIFIED SITES.] Beginning in 164.5 calendar year 2003, each qualified site that receives funding 164.6 shall submit to the commissioner data required by the 164.7 commissioner. 164.8 Subd. 9. [REVIEW OF ADMINISTRATIVE REQUIREMENTS.] The 164.9 commissioner shall, as requested by local early childhood 164.10 boards, review laws under the jurisdiction of the commissioner. 164.11 The commissioner shall also review rule requirements and, with 164.12 the approval of the board of government innovation and 164.13 cooperation under Minnesota Statutes, section 465.796, may waive 164.14 burdensome rule requirements if statutory and rule requirements 164.15 can be met in another way and the waiver simplifies or 164.16 consolidates program requirements or funding, or emphasizes 164.17 outcomes rather than procedures. In determining the 164.18 reasonableness of the requirements, the commissioner shall 164.19 consider the needs the service was developed to address and the 164.20 adequacy of the federal, state, and local funding available to 164.21 provide the service. The waiver authority under this 164.22 subdivision does not permit the commissioner to waive rule 164.23 requirements involving: client protections; due process; 164.24 inclusion of clients, parents, cultures, and ethnicity in 164.25 decision making; or requirements of federal laws or rules. 164.26 Subd. 10. [DISTRIBUTION OF GRANT FUNDS.] The commissioner 164.27 must distribute $150,000 each year of the biennium to each 164.28 demonstration project for planning purposes. Direct service 164.29 funds must be distributed to each project as follows: 164.30 (1) a base amount of $100,000 to each project; 164.31 (2) 60 percent of the remaining funds must be allocated 164.32 based on actual population of children birth to age five; and 164.33 (3) 40 percent of the remaining funds must be allocated 164.34 based on the percentage of children living in poverty. 164.35 The grant agreement with each project must identify 164.36 available planning and direct service funds and a local fiscal 165.1 agent. Planning funds must be available at the start of the 165.2 grant agreement. Direct service funds must be available six 165.3 months after execution of the grant agreement. 165.4 The commissioner may make payments to each demonstration 165.5 project in quarterly installments. The commissioner may certify 165.6 an advance up to 25 percent of the allocation. Subsequent 165.7 payments shall be made on a reimbursement basis for reported 165.8 expenditures and may be adjusted for anticipated spending 165.9 patterns. 165.10 Subd. 11. [GRANT APPLICATION.] (a) A community-based 165.11 organization, a local unit of government, or a private 165.12 foundation may apply to the commissioner for a grant to 165.13 establish a pilot project to provide early childhood care and 165.14 school readiness opportunities for every child, birth to age 165.15 five, in service areas where over 70 percent of families are 165.16 eligible for the free or reduced school lunch program. The 165.17 contiguous geographic area of each service area must include at 165.18 least 200 children, birth to age five. The commissioner shall 165.19 give consideration to geographic diversity when awarding grants 165.20 for pilot projects. The applicant must describe how it will 165.21 coordinate and provide the following services including the 165.22 intended outcomes and proposed methods of measuring outcomes: 165.23 (1) existing licensed child care providers; 165.24 (2) comprehensive health and dental care for children birth 165.25 to age five; 165.26 (3) developmental assessment of children younger than age 165.27 three; 165.28 (4) private nongovernmental support; 165.29 (5) a sliding fee schedule based on a family's income, 165.30 including waivers for participants unable to pay; 165.31 (6) support and opportunities for providers to improve the 165.32 quality of early child care services; 165.33 (7) job opportunities for parents; 165.34 (8) decent, safe housing for families; 165.35 (9) home visiting; and 165.36 (10) birth kits for all infants born during the project 166.1 time frame. 166.2 (b) The community-based organization must take maximum 166.3 advantage of all other state and federal funds available for 166.4 child care. The community-based organization shall establish 166.5 procedures to ensure the quality of the services paid for with 166.6 grant funds and to monitor the delivery of services. 166.7 Subd. 12. [EVALUATION.] The commissioner shall review the 166.8 outcomes of the pilot projects after two years of implementation 166.9 and provide testimony to the senate and house committees with 166.10 jurisdiction over early childhood care and education. 166.11 Sec. 46. [STUDY ON IMPLEMENTING AN INTEGRATED EARLY 166.12 CHILDHOOD SERVICES SYSTEM.] 166.13 Subdivision 1. [PURPOSE.] The commissioner of children, 166.14 families, and learning shall develop a plan to implement an 166.15 early childhood care and education services system for children 166.16 birth to age five that: 166.17 (1) establishes community control and decision making; 166.18 (2) eliminates separate funding streams for early childhood 166.19 programs; and 166.20 (3) bases revenue on the number and type of service hours 166.21 delivered and the cost per child of delivering those services. 166.22 Subd. 2. [TASK FORCE.] (a) The commissioner shall convene 166.23 a task force to study issues related to this plan with the 166.24 following membership: 166.25 (1) three members of the Minnesota house of 166.26 representatives, appointed by the speaker of the house, with two 166.27 from the majority party and one from the largest minority party; 166.28 (2) three members of the Minnesota senate, appointed by the 166.29 subcommittee on committees of the committee on rules and 166.30 administration, with two from the majority party and one from 166.31 the largest minority party; 166.32 (3) five members appointed by the commissioner; and 166.33 (4) five representatives of early childhood interests. 166.34 (b) Each appointing authority shall use all possible 166.35 efforts to create a geographical balance among the membership in 166.36 order to represent all regional interests of the state. The 167.1 task force shall study and make detailed recommendations 167.2 regarding: 167.3 (1) a local governance structure to oversee delivery of 167.4 services; 167.5 (2) establishing research-based care and educational 167.6 criteria for sites; 167.7 (3) methods of distributing funds to service providers and 167.8 parents; 167.9 (4) integrating early childhood health and development 167.10 screening; 167.11 (5) methods and types of data collection; 167.12 (6) identifying key components of an effective birth to age 167.13 five program; 167.14 (7) flexible service delivery options, including a 167.15 mechanism to allow for consumer feedback; 167.16 (8) methods of providing training, technical assistance, 167.17 and other support services for local governance structures to 167.18 assist in needs assessment, planning, implementing, and 167.19 monitoring early childhood services in the communities; 167.20 (9) designing a format for ongoing evaluation of early 167.21 childhood sites in relation to outcomes for children and 167.22 families; and 167.23 (10) establishing guidelines for community-based planning. 167.24 (c) The task force shall study the issues identified in 167.25 paragraph (b), and any other issue requested by the commissioner. 167.26 Subd. 3. [REPORT.] The task force shall issue a report on 167.27 the issues and recommendations under subdivision 2 by June 30, 167.28 2004, to the senate and house committees with jurisdiction over 167.29 early childhood education. 167.30 Subd. 4. [EXPIRATION.] This section expires when the task 167.31 force submits its final report to the legislature. 167.32 Sec. 47. [ADDITIONAL EARLY CHILDHOOD FAMILY EDUCATION AID; 167.33 FISCAL YEAR 2002.] 167.34 A district that complies with Minnesota Statutes, section 167.35 124D.13, shall receive additional early childhood family 167.36 education aid for fiscal year 2002 equal to $5.60 times the 168.1 greater of: 168.2 (1) 150; or 168.3 (2) the number of people under five years of age residing 168.4 in the school district on October 1 of the previous school 168.5 year. The additional early childhood family education aid may 168.6 be used only for early childhood family education programs. 168.7 Sec. 48. [APPROPRIATIONS.] 168.8 Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND 168.9 LEARNING.] The sums indicated in this section are appropriated 168.10 from the general fund to the department of children, families, 168.11 and learning for the fiscal years designated. 168.12 Subd. 2. [SCHOOL READINESS PROGRAM REVENUE.] For revenue 168.13 for school readiness programs according to Minnesota Statutes, 168.14 sections 124D.15 and 124D.16: 168.15 $12,195,000 ..... 2002 168.16 $12,395,000 ..... 2003 168.17 The 2002 appropriation includes $1,039,000 for 2001 and 168.18 $11,156,000 for 2002. 168.19 The 2003 appropriation includes $1,240,000 for 2002 and 168.20 $11,155,000 for 2003. 168.21 Subd. 3. [EARLY CHILDHOOD FAMILY EDUCATION AID.] For early 168.22 childhood family education aid according to Minnesota Statutes, 168.23 section 124D.135: 168.24 $22,558,000 ..... 2002 168.25 $22,663,000 ..... 2003 168.26 The 2002 appropriation includes $2,036,000 for 2001 and 168.27 $20,522,000 for 2002. 168.28 The 2003 appropriation includes $2,280,000 for 2002 and 168.29 $20,383,000 for 2003. 168.30 Subd. 4. [HEALTH AND DEVELOPMENTAL SCREENING AID.] For 168.31 health and developmental screening aid according to Minnesota 168.32 Statutes, sections 121A.17 and 121A.19: 168.33 $2,661,000 ..... 2002 168.34 $5,368,000 ..... 2003 168.35 The 2002 appropriation includes $266,000 for 2001 and 168.36 $2,395,000 for 2002. 169.1 The 2003 appropriation includes $266,000 for 2002 and 169.2 $5,102,000 for 2003. 169.3 Subd. 5. [EARLY CHILDHOOD CARE AND EDUCATION SERVICES 169.4 DEMONSTRATION PROJECTS.] For demonstration projects under 169.5 section 45: 169.6 $575,000 ..... 2002 169.7 $1,225,000 ..... 2003 169.8 The commissioner shall fund both demonstration project 169.9 models under section 45. Each demonstration project must 169.10 receive $150,000 each year for planning purposes. 169.11 Any balance in the first year does not cancel but is 169.12 available in the second year. 169.13 Subd. 6. [HEAD START PROGRAM.] For Head Start programs 169.14 according to Minnesota Statutes, section 119A.52: 169.15 $20,743,000 ..... 2002 169.16 $21,117,000 ..... 2003 169.17 $2,000,000 each year may be used for full-year programming 169.18 for children birth to age three. Any balance in the first year 169.19 does not cancel but is available in the second year. 169.20 Subd. 7. [SCHOOL-AGE CHILD CARE.] For extended day aid 169.21 according to Minnesota Statutes, section 124D.22: 169.22 $221,000 ..... 2002 169.23 $133,000 ..... 2003 169.24 The 2002 appropriation includes $30,000 for 2001 and 169.25 $191,000 for 2002. 169.26 The 2003 appropriation includes $21,000 for 2002 and 169.27 $112,000 for 2003. 169.28 Subd. 8. [CONSOLIDATED CHILD CARE ASSISTANCE.] For child 169.29 care assistance according to Minnesota Statutes, sections 169.30 119B.011 to 119B.16: 169.31 $144,296,000 ..... 2002 169.32 $141,337,000 ..... 2003 169.33 These appropriations are available to be spent in either 169.34 year. 169.35 Subd. 9. [CHILD CARE INTEGRITY.] For the administrative 169.36 costs of program integrity and fraud prevention for child care 170.1 assistance under chapter 119B: 170.2 $25,000 ..... 2002 170.3 $25,000 ..... 2003 170.4 Any balance in the first year does not cancel but is 170.5 available in the second year. 170.6 Subd. 10. [CHILD CARE SERVICES GRANTS.] For child care 170.7 services grants according to Minnesota Statutes, section 119B.21: 170.8 $2,015,000 ..... 2002 170.9 $2,015,000 ..... 2003 170.10 Any balance in the first year does not cancel but is 170.11 available in the second year. 170.12 Subd. 11. [CHILD CARE IMPROVEMENT GRANTS.] For child care 170.13 improvement grants according to Minnesota Statutes, section 170.14 119B.25: 170.15 $500,000 ..... 2002 170.16 Subd. 12. [CHILD CARE MARKET RATE SURVEYS.] For child care 170.17 market rate surveys according to Minnesota Statutes, section 170.18 119B.13, subdivision 1: 170.19 $3,000 ..... 2002 170.20 Subd. 13. [TEACH GRANTS.] For TEACH grants according to 170.21 Minnesota Statutes, section 119B.221: 170.22 $1,000,000 ..... 2002 170.23 $1,000,000 ..... 2003 170.24 This amount must be matched with private funds on a 170.25 one-to-one basis. 170.26 Subd. 14. [AT-HOME INFANT CHILD CARE PROGRAM.] For the 170.27 at-home infant child care program under Minnesota Statutes, 170.28 section 119B.061: 170.29 $1,000,000 ..... 2002 170.30 $1,000,000 ..... 2003 170.31 Any amount remaining in fiscal years 2002 and 2003 that is 170.32 not needed for the at-home infant child care program must be 170.33 used for child care assistance under Minnesota Statutes, section 170.34 119B.03, subdivision 3a. If the commissioner determines that 170.35 the department will not be able to meet the child care and 170.36 development fund match and maintenance of effort requirements 171.1 without the funds appropriated in this subdivision, the 171.2 commissioner may move the necessary amount of funds from this 171.3 appropriation into the appropriation for the consolidated child 171.4 care program. 171.5 Sec. 49. [FEDERAL TANF TRANSFERS.] 171.6 Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND 171.7 LEARNING.] The sums indicated in this section are transferred 171.8 from the federal TANF fund to the child care and development 171.9 fund and appropriated to the department of children, families, 171.10 and learning for the fiscal years designated. The commissioner 171.11 shall ensure that all transferred funds are expended in 171.12 accordance with the child care and development fund regulations 171.13 and that the maximum allowable transferred funds are used for 171.14 the programs in this section. 171.15 Subd. 2. [CONSOLIDATED CHILD CARE ASSISTANCE.] For child 171.16 care assistance according to Minnesota Statutes, sections 171.17 119B.011 to 119B.16: 171.18 $21,229,000 ..... 2002 171.19 $16,737,000 ..... 2003 171.20 Sec. 50. [REVISOR INSTRUCTION.] 171.21 In the next and subsequent editions of Minnesota Statutes 171.22 and Minnesota Rules, the revisor shall renumber Minnesota 171.23 Statutes, section 119B.05, subdivisions 4 and 5, as Minnesota 171.24 Statutes, section 119B.03, subdivisions 11 and 12, and make 171.25 necessary cross-reference changes consistent with the 171.26 renumbering. 171.27 Sec. 51. [REPEALER.] 171.28 Minnesota Statutes 2000, sections 119B.011, subdivision 20; 171.29 119B.03, subdivisions 1, 2, 4, 5, 6, 6a, and 8; 119B.05, 171.30 subdivision 1; 119B.07; 119B.09, subdivision 3; and 119B.11, 171.31 subdivision 4, are repealed. 171.32 ARTICLE 7 171.33 PREVENTION 171.34 Section 1. Minnesota Statutes 2000, section 119A.12, is 171.35 amended by adding a subdivision to read: 171.36 Subd. 4. [AUTHORITY TO DISBURSE FUNDS.] The commissioner 172.1 may disburse trust fund money to any public or private nonprofit 172.2 agency to fund a child abuse prevention program. State funds 172.3 appropriated for child maltreatment prevention grants may be 172.4 transferred to the children's trust fund special revenue account 172.5 and are available to carry out this section. 172.6 Sec. 2. Minnesota Statutes 2000, section 119A.12, is 172.7 amended by adding a subdivision to read: 172.8 Subd. 5. [PLAN FOR DISBURSEMENT OF FUNDS.] The 172.9 commissioner shall develop a plan to disburse money from the 172.10 trust fund. The plan must ensure that all geographic areas of 172.11 the state have an equal opportunity to establish prevention 172.12 programs and receive trust fund money. 172.13 Sec. 3. Minnesota Statutes 2000, section 119A.12, is 172.14 amended by adding a subdivision to read: 172.15 Subd. 6. [OPERATIONAL COSTS.] $120,000 each year is 172.16 appropriated from the children's trust fund to the special 172.17 revenue fund for administration and indirect costs of the 172.18 children's trust fund program. 172.19 Sec. 4. Minnesota Statutes 2000, section 119A.13, 172.20 subdivision 4, is amended to read: 172.21 Subd. 4. [RESPONSIBILITIES OF COMMISSIONER.] (a) The 172.22 commissioner shall: 172.23 (1) provide for the coordination and exchange of 172.24 information on the establishment and maintenance of prevention 172.25 programs; 172.26 (2) develop and publish criteria for receiving trust fund 172.27 money by prevention programs; 172.28 (3) review, approve, and monitor the spending of trust fund 172.29 money by prevention programs; 172.30 (4) provide statewide educational and public informational 172.31 seminars to develop public awareness on preventing child abuse; 172.32 to encourage professional persons and groups to recognize 172.33 instances of child abuse and work to prevent them; to make 172.34 information on child abuse prevention available to the public 172.35 and to organizations and agencies; and to encourage the 172.36 development of prevention programs, including programs that 173.1 provide support for adolescent parents, fathering education 173.2 programs, and other prevention activities designed to prevent 173.3 teen pregnancy; 173.4 (5) establish a procedure for an annual, internal 173.5 evaluation of the functions, responsibilities, and performance 173.6 of the commissioner in carrying out Laws 1986, chapter 423; 173.7 (6) provide technical assistance to local councils and 173.8 agencies working in the area of child abuse prevention; and 173.9 (7) accept and review grant applications beginning June 1, 173.10 1987. 173.11 (b) The commissioner shall recommend to the governor 173.12 changes in state programs, statutes, policies, budgets, and 173.13 standards that will reduce the problems of child abuse, improve 173.14 coordination among state agencies that provide prevention 173.15 services, and improve the condition of children, parents, or 173.16 guardians in need of prevention program services. 173.17 Sec. 5. Minnesota Statutes 2000, section 119A.21, is 173.18 amended to read: 173.19 119A.21 [GRANTS TO SERVICE PROVIDER PROGRAMS.] 173.20 Subdivision 1. [GRANTS AWARDED.] The commissioner shall 173.21 award grants to programswhichthat provideabused children173.22 services to abused or neglected children. Grants shall be 173.23 awarded in a manner that ensures that they are equitably 173.24 distributed to programs serving metropolitan and nonmetropolitan 173.25 populations. 173.26 Subd. 2. [APPLICATIONS.] Any public or private nonprofit 173.27 agency may apply to the commissioner for a grantto provide173.28abused children services. The application shall be submittedin173.29 on a formapprovedprescribed by the commissionerafter173.30consultation with the abused children advisory council and shall173.31include:. 173.32(1) a proposal for the provision of abused children173.33services to, or on behalf of, abused children, children at risk,173.34and their families;173.35(2) a proposed budget;173.36(3) evidence of ability to represent the interests of174.1abused children and their families to local law enforcement174.2agencies and courts, social services, and health agencies;174.3(4) evidence of ability to do outreach to unserved and174.4underserved populations and to provide culturally and174.5linguistically appropriate services; and174.6(5) any other information the commissioner may require by174.7policy or by rule adopted under chapter 14, after considering174.8the recommendations of the abused children advisory council.174.9Programs which have been approved for grants in prior years174.10may submit materials which indicate changes in items listed in174.11clauses (1) to (5), in order to qualify for renewal funding.174.12Nothing in this subdivision may be construed to require programs174.13to submit complete applications for each year of funding.174.14 Subd. 3. [DUTIES.] Every public or private nonprofit 174.15 agency which receives a grant under this sectionto provide174.16abused children servicesshall comply with all requirements of 174.17 the commissioner related to the administration of the grants. 174.18 Subd. 4. [CLASSIFICATION OF DATA COLLECTED BY GRANTEES.] 174.19 Personal history information and other information collected, 174.20 used, or maintained by a grantee from which the identity of any 174.21 abused child or family members may be determined is private data 174.22 on individuals as defined in section 13.02, subdivision 12, and 174.23 the grantee shall maintain the data in accordance with 174.24 provisions of chapter 13. 174.25 Sec. 6. Minnesota Statutes 2000, section 119A.22, is 174.26 amended to read: 174.27 119A.22 [DUTIES OF THE COMMISSIONER.] 174.28 The commissioner shall: 174.29 (1) review applications and award grants to programs 174.30 pursuant to section 119A.21after considering the recommendation174.31of the abused children advisory council; 174.32 (2)appoint members of the abused children advisory council174.33created under section 119A.23 and provide consultative staff and174.34other administrative services to the council;174.35(3) after considering the recommendation of the abused174.36children advisory council, appoint a program director to perform175.1the duties set forth in this clause. In appointing the program175.2director the commissioner shall give due consideration to the175.3list of applicants submitted to the commissioner pursuant to175.4this section. The program director shall administer the funds175.5appropriated for sections 119A.20 to 119A.23, consult with and175.6provide staff to the advisory council and perform other duties175.7related to abused children's programs as the commissioner may175.8assign;175.9(4)design a uniform method of collecting dataon abused175.10children's programsto be used to monitor and assure compliance 175.11 of the programs funded under section 119A.21; 175.12(5)(3) provide technicalaidassistance to applicants in 175.13 the development of grant requests and toprogramsgrantees in 175.14 meeting the data collection requirements established by the 175.15 commissioner; and 175.16(6)(4) adopt, under chapter 14, all rules necessary to 175.17 implement the provisions of sections 119A.20 to 119A.23. 175.18 Sec. 7. [119A.35] [ADVISORY COUNCIL.] 175.19 Subdivision 1. [GENERALLY.] The advisory council is 175.20 established under section 15.059 to advise the commissioner on 175.21 the implementation and continued operations of sections 119A.10 175.22 to 119A.16 and 119A.20 to 119A.22. The council shall expire 175.23 June 30, 2005. 175.24 Subd. 2. [COUNCIL MEMBERSHIP.] The council shall consist 175.25 of a total of 22 members. The governor shall appoint 18 of 175.26 these members. The commissioners of human services and health 175.27 shall each appoint one member. The senate shall appoint one 175.28 member from the senate committee with jurisdiction over family 175.29 and early childhood education and the house of representatives 175.30 shall appoint one member from the house committee with 175.31 jurisdiction over family and early childhood education. 175.32 Council members shall have knowledge in the areas of child 175.33 abuse and neglect prevention, and knowledge of the risk factors 175.34 that can lead to child abuse and neglect. Council members shall 175.35 be representative of local government, criminal justice, 175.36 parents, consumers of services, health and human services 176.1 professionals, faith communities, professional and volunteer 176.2 providers of child abuse and neglect prevention services, racial 176.3 and ethnic minority communities, and the demographic and 176.4 geographic composition of the state. Ten council members shall 176.5 reside in the seven-county metropolitan area and eight shall 176.6 reside in nonmetropolitan areas. 176.7 Subd. 3. [RESPONSIBILITIES.] The council shall: 176.8 (1) advise the commissioner on planning, policy 176.9 development, data collection, rulemaking, funding, and 176.10 evaluation of the programs under the sections listed in 176.11 subdivision 1; 176.12 (2) coordinate and exchange information on the 176.13 establishment and ongoing operation of the programs listed in 176.14 subdivision 1; 176.15 (3) develop and publish criteria and guidelines for 176.16 receiving grants relating to child abuse and neglect prevention 176.17 and safety and support of child victims, including, but not 176.18 limited to, funds dedicated to the children's trust fund and 176.19 abused children program; 176.20 (4) provide guidance in the development of statewide 176.21 education and public information activities that increase public 176.22 awareness in the prevention and intervention of child abuse and 176.23 neglect and encourage the development of prevention and 176.24 intervention programs, which includes the safety of child 176.25 victims; 176.26 (5) guide, analyze, and disseminate results in the 176.27 development of appropriate evaluation procedures for all 176.28 programs receiving funds under subdivision 1; and 176.29 (6) assist the commissioner in identifying service gaps or 176.30 duplication in services, including geographic dispersion of 176.31 resources, programs reflecting the cycle of child abuse, and the 176.32 availability of culturally appropriate intervention and 176.33 prevention services. 176.34 Sec. 8. Minnesota Statutes 2000, section 124D.221, 176.35 subdivision 1, is amended to read: 176.36 Subdivision 1. [ESTABLISHMENT.] A competitive statewide 177.1 after-school enrichment grant program is established to provide 177.2 implementation grants to community or nonprofit organizations, 177.3 to political subdivisions, or to school-based programs. A 177.4 community or nonprofit organization must be a charitable 177.5 organization under section 501(c)(3) of the Internal Revenue 177.6 Code of 1986 and registered with the attorney general's office. 177.7 The commissioner shall develop criteria for after-school 177.8 enrichment programs. 177.9 Sec. 9. Minnesota Statutes 2000, section 124D.221, 177.10 subdivision 2, is amended to read: 177.11 Subd. 2. [PRIORITYNEIGHBORHOODS.] (a) The commissioner 177.12 must give priority to applicants who: 177.13 (1) demonstrate a match of $1 of nonstate funding for each 177.14 $1 of the grant amount awarded for the implementation of an 177.15 after-school enrichment program. For the purposes of this 177.16 clause, the nonstate match may include the fair market value of 177.17 an in-kind contribution of facility space; and 177.18 (2) establish an accountability system that sets measurable 177.19 goals and outcomes that support academic achievement, school 177.20 attendance, a reduction in suspensions, and assesses 177.21 participants' progress on these measures annually. 177.22 (b) For grants in Minneapolis and St. Paul, the 177.23 commissioner must give first priority to neighborhoods in this 177.24subdivisionparagraph and second priority according to paragraph 177.25 (a), clause (1). In Minneapolis, priority neighborhoods are 177.26 Near North, Hawthorne, Sumner-Glenwood, Harrison, Jordan, 177.27 Powderhorn, Central, Whittier, Cleveland, McKinley, Waite Park, 177.28 Sheridan, Holland, Lyndale, Folwell, and Phillips. In St. Paul, 177.29 priority neighborhoods are Summit-University, Thomas-Dale, North 177.30 End, Payne-Phalen, Daytons Bluff, and the West Side. 177.31 Sec. 10. [APPROPRIATIONS.] 177.32 Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND 177.33 LEARNING.] The sums indicated in this section are appropriated 177.34 from the general fund, unless otherwise indicated, to the 177.35 department of children, families, and learning for the fiscal 177.36 years designated. 178.1 Subd. 2. [FAMILY SERVICES COLLABORATIVES.] For family 178.2 services collaboratives according to Laws 1995, First Special 178.3 Session chapter 3, article 4, section 29, subdivision 10: 178.4 $1,477,000 ..... 2002 178.5 $863,000 ..... 2003 178.6 No new family services collaboratives shall be funded with 178.7 this appropriation after June 30, 1999. 178.8 Any balance in the first year does not cancel but is 178.9 available in the second year. 178.10 Subd. 3. [COMMUNITY EDUCATION AID.] For community 178.11 education aid according to Minnesota Statutes, section 124D.20: 178.12 $14,209,000 ..... 2002 178.13 $13,111,000 ..... 2003 178.14 The 2002 appropriation includes $1,528,000 for 2001 and 178.15 $12,681,000 for 2002. 178.16 The 2003 appropriation includes $1,409,000 for 2002 and 178.17 $11,702,000 for 2003. 178.18 Any balance in the first year does not cancel but is 178.19 available in the second year. 178.20 Subd. 4. [ADULTS WITH DISABILITIES PROGRAM AID.] For 178.21 adults with disabilities programs according to Minnesota 178.22 Statutes, section 124D.56: 178.23 $710,000 ..... 2002 178.24 $710,000 ..... 2003 178.25 Any balance in the first year does not cancel but is 178.26 available in the second year. 178.27 Subd. 5. [HEARING-IMPAIRED ADULTS.] For programs for 178.28 hearing-impaired adults according to Minnesota Statutes, section 178.29 124D.57: 178.30 $70,000 ..... 2002 178.31 $70,000 ..... 2003 178.32 Any balance in the first year does not cancel but is 178.33 available in the second year. 178.34 Subd. 6. [VIOLENCE PREVENTION EDUCATION GRANTS.] For 178.35 violence prevention education grants according to Minnesota 178.36 Statutes, section 120B.23: 179.1 $1,450,000 ..... 2002 179.2 $1,450,000 ..... 2003 179.3 Any balance in the first year does not cancel but is 179.4 available in the second year. 179.5 Subd. 7. [ABUSED CHILDREN.] For abused children programs 179.6 according to Minnesota Statutes, section 119A.21: 179.7 $945,000 ..... 2002 179.8 $945,000 ..... 2003 179.9 Any balance in the first year does not cancel but is 179.10 available in the second year. 179.11 Subd. 8. [CHILDREN'S TRUST FUND.] For children's trust 179.12 fund according to Minnesota Statutes, sections 119A.12 and 179.13 119A.13: 179.14 $875,000 ..... 2002 179.15 $875,000 ..... 2003 179.16 Any balance in the first year does not cancel but is 179.17 available in the second year. 179.18 Subd. 9. [FAMILY VISITATION CENTERS.] (a) For family 179.19 visitation centers according to Minnesota Statutes, section 179.20 119A.37: 179.21 $200,000 ..... 2002 179.22 $200,000 ..... 2003 179.23 Any balance in the first year does not cancel but is 179.24 available in the second year. 179.25 (b) An additional $..,000 in fiscal year 2002 and $..,000 179.26 in fiscal year 2003 are appropriated from the special revenue 179.27 fund under Minnesota Statutes, section 517.08, subdivision 1c, 179.28 for family visitation centers. Any balance in the first year 179.29 does not cancel but is available in the second year. 179.30 Subd. 10. [AFTER SCHOOL ENRICHMENT GRANTS.] For after 179.31 school enrichment grants according to Minnesota Statutes, 179.32 section 124D.221: 179.33 $5,510,000 ..... 2002 179.34 $5,510,000 ..... 2003 179.35 Any balance in the first year does not cancel but is 179.36 available in the second year. 180.1 Subd. 11. [CHEMICAL ABUSE PREVENTION GRANTS.] (a) For 180.2 grants with funds received under Minnesota Statutes, section 180.3 171.29, subdivision 2, paragraph (b), clause (4): 180.4 $200,000 ..... 2002 180.5 $200,000 ..... 2003 180.6 (b) These appropriations are from the alcohol-impaired 180.7 driver account of the special revenue fund for chemical abuse 180.8 prevention grants. 180.9 Sec. 11. [REVISOR INSTRUCTION.] 180.10 In the next and subsequent editions of Minnesota Statutes 180.11 and Minnesota Rules, the revisor shall renumber Minnesota 180.12 Statutes, section 119A.13, subdivision 4, as Minnesota Statutes, 180.13 section 119A.12, subdivision 4, and make necessary 180.14 cross-reference changes consistent with the renumbering. 180.15 Sec. 12. [REPEALER.] 180.16 Minnesota Statutes 2000, sections 119A.13, subdivisions 1, 180.17 2, and 3; 119A.14, subdivision 2; 119A.23; 124D.33; and 180.18 124D.331, are repealed. 180.19 ARTICLE 8 180.20 SELF-SUFFICIENCY AND LIFELONG LEARNING 180.21 Section 1. Minnesota Statutes 2000, section 124D.52, 180.22 subdivision 2, is amended to read: 180.23 Subd. 2. [PROGRAM APPROVAL.] (a) To receive aid under this 180.24 section, a district, a consortium of districts, the department 180.25 of corrections, or a private nonprofit organization must submit 180.26 an application by June 1 describing the program, on a form 180.27 provided by the department. The program must be approved by the 180.28 commissioner according to the following criteria: 180.29 (1) how the needs of different levels of learning will be 180.30 met; 180.31 (2) for continuing programs, an evaluation of results; 180.32 (3) anticipated number and education level of participants; 180.33 (4) coordination with other resources and services; 180.34 (5) participation in a consortium, if any, and money 180.35 available from other participants; 180.36 (6) management and program design; 181.1 (7) volunteer training and use of volunteers; 181.2 (8) staff development services; 181.3 (9) program sites and schedules; 181.4 (10) program expenditures that qualify for aid; 181.5 (11) program ability to provide data related to learner 181.6 outcomes as required by law; and 181.7 (12) a copy of the memorandum of understanding described in 181.8 subdivision 1 submitted to the commissioner. 181.9 (b) Adult basic education programs may be approved under 181.10 this subdivision for up to five years. Five-year program 181.11 approval must be granted to an applicant who has demonstrated 181.12 the capacity to: 181.13 (1) offer comprehensive learning opportunities and support 181.14 service choices appropriate for and accessible to adults at all 181.15 basic skill need levels; 181.16 (2) provide a participatory and experiential learning 181.17 approach based on the strengths, interests, and needs of each 181.18 adult, that enables adults with basic skill needs to: 181.19 (i) identify, plan for, and evaluate their own progress 181.20 toward achieving their defined educational and occupational 181.21 goals; 181.22 (ii) master the basic academic reading, writing, and 181.23 computational skills, as well as the problem-solving, decision 181.24 making, interpersonal effectiveness, and other life and learning 181.25 skills they need to function effectively in a changing society; 181.26 (iii) locate and be able to use the health, governmental, 181.27 and social services and resources they need to improve their own 181.28 and their families' lives; and 181.29 (iv) continue their education, if they desire, to at least 181.30 the level of secondary school completion, with the ability to 181.31 secure and benefit from continuing education that will enable 181.32 them to become more employable, productive, and responsible 181.33 citizens; 181.34 (3) plan, coordinate, and develop cooperative agreements 181.35 with community resources to address the needs that the adults 181.36 have for support services, such as transportation, flexible 182.1 course scheduling, convenient class locations, and child care; 182.2 (4) collaborate with business, industry, labor unions, and 182.3 employment-training agencies, as well as with family and 182.4 occupational education providers, to arrange for resources and 182.5 services through which adults can attain economic 182.6 self-sufficiency; 182.7 (5) provide sensitive and well trained adult education 182.8 personnel who participate in local, regional, and statewide 182.9 adult basic education staff development events to master 182.10 effective adult learning and teaching techniques; 182.11 (6) participate in regional adult basic education peer 182.12 program reviews and evaluations; 182.13 (7) submit accurate and timely performance and fiscal 182.14 reports; 182.15 (8) submit accurate and timely reports related to program 182.16 outcomes and learner follow-up information; and 182.17 (9) spend adult basic education aid on adult basic 182.18 education purposes only, which are specified in sections 182.19 124D.518 to 124D.531. 182.20 (c) The commissioner shall require each district to provide 182.21 notification by February 1, 2001, of its intent to apply for 182.22 funds under this section as a single district or as part of an 182.23 identified consortium of districts. A district receiving funds 182.24 under this section must notify the commissioner by February 1 of 182.25 its intent to change its application status for applications due 182.26 the following June 1. 182.27 Sec. 2. Minnesota Statutes 2000, section 124D.522, is 182.28 amended to read: 182.29 124D.522 [ADULT BASIC EDUCATION SUPPLEMENTAL SERVICE 182.30 GRANTS.] 182.31 (a) The commissioner, in consultation with the policy 182.32 review task force under section 124D.521, may make grants to 182.33 nonprofit organizations to provide services that are not offered 182.34 by a district adult basic education program or that are 182.35 supplemental to either the statewide adult basic education 182.36 program, or a district's adult basic education program. The 183.1 commissioner may make grants for: staff development for adult 183.2 basic education teachers and administrators; training for 183.3 volunteer tutors; training, services, and materials for serving 183.4 disabled students through adult basic education programs; 183.5 statewide promotion of adult basic education services and 183.6 programs; development and dissemination of instructional and 183.7 administrative technology for adult basic education programs; 183.8 programs which primarily serve communities of color; adult basic 183.9 education distance learning projects, including television 183.10 instruction programs; and other supplemental services to support 183.11 the mission of adult basic education and innovative delivery of 183.12 adult basic education services. 183.13 (b) The commissioner must establish eligibility criteria 183.14 and grant application procedures. Grants under this section 183.15 must support services throughout the state, focus on educational 183.16 results for adult learners, and promote outcome-based 183.17 achievement through adult basic education programs. Beginning 183.18 in fiscal year 2002, the commissioner may make grants under this 183.19 section fromfunds specifically appropriatedthe state total 183.20 adult basic education aid set aside for supplemental service 183.21 grants under section 124D.531. Up toone-thirdone-fourth of 183.22 the appropriation for supplemental service grants must be used 183.23 for grants for adult basic education programs to encourage and 183.24 support innovations in adult basic education instruction and 183.25 service delivery. A grant to a single organization cannot 183.26 exceed $100,000. Nothing in this section prevents an approved 183.27 adult basic education program from using state or federal aid to 183.28 purchase supplemental services. 183.29 [EFFECTIVE DATE.] This section is effective July 1, 2001. 183.30 Sec. 3. Minnesota Statutes 2000, section 124D.531, 183.31 subdivision 1, is amended to read: 183.32 Subdivision 1. [STATE TOTAL ADULT BASIC EDUCATION AID.] 183.33 (a) The state total adult basic education aid for fiscal year 183.34 2001 equals $30,157,000. The state total adult basic education 183.35 aid for later years equals: 183.36 (1) the state total adult basic education aid for the 184.1 preceding fiscal year; times 184.2 (2) the lesser of: 184.3 (i) 1.08, or 184.4 (ii) the greater of 1.00 or the ratio of the state total 184.5 contact hours in the first prior program year to the state total 184.6 contact hours in the second prior program year. Beginning in 184.7 fiscal year 2002, two percent of the state total adult basic 184.8 education aid must be set aside for adult basic education 184.9 supplemental service grants under section 124D.522. 184.10 (b) The state total adult basic education aid, excluding 184.11 basic population aid, equals the difference between the amount 184.12 computed in paragraph (a), and the state total basic population 184.13 aid under subdivision 2. 184.14 [EFFECTIVE DATE.] This section is effective July 1, 2001. 184.15 Sec. 4. Minnesota Statutes 2000, section 124D.531, 184.16 subdivision 3, is amended to read: 184.17 Subd. 3. [PROGRAM REVENUE.] Adult basic education programs 184.18 established under section 124D.52 and approved by the 184.19 commissioner are eligible for revenue under this subdivision. 184.20 For fiscal year 2001 and later, adult basic education revenue 184.21 for each approved program equals the sum of: 184.22 (1) the basic population aid under subdivision 2 for 184.23 districts participating in the program during the current 184.24 program year; plus 184.25 (2) 84 percent times the amount computed in subdivision 1, 184.26 paragraph (b), times the ratio of the contact hours for students 184.27 participating in the program during the first prior program year 184.28 to the state total contact hours during the first prior program 184.29 year; plus 184.30 (3) eight percent times the amount computed in subdivision 184.31 1, paragraph (b), times the ratio of the enrollment of students 184.32 with limited English proficiency during the second prior school 184.33 year in districts participating in the program during the 184.34 current program year to the state total enrollment of students 184.35 with limited English proficiency during the second prior school 184.36 year in districts participating in adult basic education 185.1 programs during the current program year; plus 185.2 (4) eight percent times the amount computed in subdivision 185.3 1, paragraph (b), times the ratio of the latest federal census 185.4 count of the number of adults aged 20 or older with no diploma 185.5 residing in the districts participating in the program during 185.6 the current program year to the latest federal census count of 185.7 the state total number of adults aged 20 or older with no 185.8 diploma residing in the districts participating in adult basic 185.9 education programs during the current program year. 185.10 Sec. 5. [APPROPRIATIONS.] 185.11 Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND 185.12 LEARNING.] The sums indicated in this section are appropriated 185.13 from the general fund to the department of children, families, 185.14 and learning for the fiscal years designated. 185.15 Subd. 2. [MINNESOTA ECONOMIC OPPORTUNITY GRANTS.] For 185.16 Minnesota economic opportunity grants: 185.17 $8,514,000 ..... 2002 185.18 $8,514,000 ..... 2003 185.19 Any balance in the first year does not cancel but is 185.20 available in the second year. 185.21 Subd. 3. [TRANSITIONAL HOUSING PROGRAMS.] For transitional 185.22 housing programs according to Minnesota Statutes, section 185.23 119A.43: 185.24 $1,988,000 ..... 2002 185.25 $1,988,000 ..... 2003 185.26 Any balance in the first year does not cancel but is 185.27 available in the second year. 185.28 Subd. 4. [EMERGENCY SERVICES.] For emergency services 185.29 according to Minnesota Statutes, section 119A.43: 185.30 $350,000 ..... 2002 185.31 $350,000 ..... 2003 185.32 Any balance in the first year does not cancel but is 185.33 available in the second year. 185.34 Subd. 5. [ADULT BASIC EDUCATION AID.] For adult basic 185.35 education aid according to Minnesota Statutes, section 124D.52 185.36 in fiscal year 2002 and Minnesota Statutes, section 124D.531 in 186.1 fiscal year 2003: 186.2 $32,150,000 ..... 2002 186.3 $34,731,000 ..... 2003 186.4 The 2002 appropriation includes $3,019,000 for 2001 and 186.5 $29,131,000 for 2002. 186.6 The 2003 appropriation includes $3,237,000 for 2002 and 186.7 $31,494,000 for 2003. 186.8 Subd. 6. [ADULT GRADUATION AID.] For adult graduation aid 186.9 according to Minnesota Statutes, section 124D.54: 186.10 $3,195,000 ..... 2002 186.11 $3,356,000 ..... 2003 186.12 The 2002 appropriation includes $305,000 for 2001 and 186.13 $2,890,000 for 2002. 186.14 The 2003 appropriation includes $321,000 for 2002 and 186.15 $3,035,000 for 2003. 186.16 Subd. 7. [GED TESTS.] For payment of 60 percent of the 186.17 costs of GED tests according to Laws 1993, chapter 224, article 186.18 4, section 44, subdivision 10: 186.19 $125,000 ..... 2002 186.20 $125,000 ..... 2003 186.21 Any balance in the first year does not cancel but is 186.22 available in the second year. 186.23 Subd. 8. [FOOD BANK PROGRAM.] For foodshelf programs 186.24 according to Minnesota Statutes, section 119A.44: 186.25 $1,278,000 ..... 2002 186.26 $1,278,000 ..... 2003 186.27 Any balance in the first year does not cancel but is 186.28 available in the second year. 186.29 Subd. 9. [FAMILY ASSETS FOR INDEPENDENCE.] For family 186.30 assets for independence: 186.31 $500,000 ..... 2002 186.32 Any balance in the first year does not cancel but is 186.33 available in the second year. 186.34 Subd. 10. [LEAD ABATEMENT.] For lead abatement according 186.35 to Minnesota Statutes, section 119A.46: 186.36 $500,000 ..... 2002 187.1 $500,000 ..... 2003 187.2 Subd. 11. [ADULT BASIC EDUCATION ADMINISTRATION.] For 187.3 adult basic education administration: 187.4 $175,000 ..... 2002 187.5 $175,000 ..... 2003 187.6 Sec. 6. [TANF APPROPRIATIONS.] 187.7 Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND 187.8 LEARNING.] The sums indicated in this section are appropriated 187.9 to the commissioner of children, families, and learning from the 187.10 federal Temporary Assistance for Needy Families (TANF) block 187.11 grant for the fiscal years designated. These amounts are 187.12 available for expenditure until June 30, 2003. Appropriations 187.13 under this section are one-time appropriations and are not added 187.14 to the base for fiscal years 2004 and 2005. 187.15 Subd. 2. [INTENSIVE ESL.] For intensive English as a 187.16 second language (ESL) for eligible MFIP participants under Laws 187.17 2000, chapter 489, article 1, section 39: 187.18 $1,100,000 ..... 2002 187.19 $1,100,000 ..... 2003 187.20 Subd. 3. [TRANSITIONAL HOUSING.] For reimbursement grants 187.21 to transitional housing programs under Minnesota Statutes, 187.22 section 119A.43: 187.23 $1,900,000 ..... 2002 187.24 $1,950,000 ..... 2003 187.25 These appropriations must be used for up to four months of 187.26 transitional housing for families with incomes below 200 percent 187.27 of the federal poverty guidelines. Payment must be made to 187.28 programs on a reimbursement basis. 187.29 ARTICLE 9 187.30 LIBRARIES 187.31 Section 1. Minnesota Statutes 2000, section 125B.20, 187.32 subdivision 1, is amended to read: 187.33 Subdivision 1. [ESTABLISHMENT; PURPOSE.] The purpose of 187.34 developing a statewide school district telecommunications 187.35 network is to expand the availability of a broad range of 187.36 courses and degrees to students throughout the state, to share 188.1 information resources to improve access, quality, and 188.2 efficiency, to improve learning, and distance cooperative 188.3 learning opportunities, and to promote the exchange of ideas 188.4 among students, parents, teachers, media generalists, 188.5 librarians, and the public. In addition, through the 188.6 development of this statewide telecommunications network 188.7 emphasizing cost-effective, competitive connections, all 188.8 Minnesotans will benefit by enhancing access to 188.9 telecommunications technology throughout the state. Network 188.10 connections for school districts and public libraries are 188.11 coordinated and fully integrated into the existing state 188.12 telecommunications and interactive television networks to 188.13 achieve comprehensive and efficient interconnectivity of school 188.14 districts and libraries to higher education institutions, state 188.15 agencies, other governmental units, agencies, and institutions 188.16 throughout Minnesota. A school district may apply to the 188.17 commissioner for a grant under subdivision 2, and a regional188.18public library may apply under subdivision 3. The Minnesota 188.19 education telecommunications council established in Laws 1995, 188.20 First Special Session chapter 3, article 12, section 7, shall 188.21 establish priorities for awarding grants, making grant awards, 188.22 and being responsible for the coordination of networks. 188.23 Sec. 2. [134.47] [REGIONAL LIBRARY TELECOMMUNICATIONS 188.24 AID.] 188.25 Subdivision 1. [ELIGIBILITY.] (a) A regional public 188.26 library system may apply for regional library telecommunications 188.27 aid. The aid must be used for data and video access costs and 188.28 other related costs to improve or maintain electronic access and 188.29 connect the library system with the state information 188.30 infrastructure administered by the department of administration 188.31 under section 16B.465. Priority shall be given to public 188.32 libraries that have not received access. To be eligible, a 188.33 regional public library system must be officially designated by 188.34 the commissioner of children, families, and learning as a 188.35 regional public library system as defined in section 134.34, 188.36 subdivision 3, and each of its participating cities and counties 189.1 must meet local support levels defined in section 134.34, 189.2 subdivision 1. A public library building that receives aid 189.3 under this section must be open a minimum of 20 hours per week. 189.4 (b) Aid received under this section may not be used to 189.5 substitute for any existing local funds allocated to provide 189.6 electronic access, equipment for library staff or the public, or 189.7 local funds dedicated to other library operations. 189.8 (c) An application for regional library telecommunications 189.9 aid must, at a minimum, contain information to document the 189.10 following: 189.11 (1) the connections are adequate and employ an open network 189.12 architecture that will ensure interconnectivity and 189.13 interoperability with school districts, post-secondary 189.14 education, or other governmental agencies; 189.15 (2) that the connection is established through the most 189.16 cost-effective means and that the regional library has explored 189.17 and coordinated connections through school districts, 189.18 post-secondary education, or other governmental agencies; 189.19 (3) that the regional library system has filed an e-rate 189.20 application; and 189.21 (4) other information, as determined by the commissioner of 189.22 children, families, and learning, to ensure that connections are 189.23 coordinated, efficient, and cost-effective, take advantage of 189.24 discounts, and meet applicable state standards. 189.25 The library system may include costs associated with 189.26 cooperative arrangements with post-secondary institutions, 189.27 school districts, and other governmental agencies. 189.28 Subd. 2. [AWARD OF FUNDS.] The commissioner of children, 189.29 families, and learning shall develop an application and a 189.30 reporting form and procedures for regional library 189.31 telecommunications aid. Aid shall be based on actual costs of 189.32 connections and funds available for this purpose. The 189.33 commissioner shall make payments directly to the regional public 189.34 library system. 189.35 Sec. 3. [APPROPRIATIONS.] 189.36 Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND 190.1 LEARNING.] The sums indicated in this section are appropriated 190.2 from the general fund to the department of children, families, 190.3 and learning for the fiscal years designated. 190.4 Subd. 2. [BASIC SUPPORT GRANTS.] For basic support grants 190.5 according to Minnesota Statutes, sections 134.32 to 134.35: 190.6 $8,570,000 ..... 2002 190.7 $8,570,000 ..... 2003 190.8 The 2002 appropriation includes $857,000 for 2001 and 190.9 $7,713,000 for 2002. 190.10 The 2003 appropriation includes $857,000 for 2002 and 190.11 $7,713,000 for 2003. 190.12 Subd. 3. [MULTICOUNTY, MULTITYPE LIBRARY SYSTEMS.] For 190.13 grants according to Minnesota Statutes, sections 134.353 and 190.14 134.354, to multicounty, multitype library systems: 190.15 $903,000 ..... 2002 190.16 $903,000 ..... 2003 190.17 The 2002 appropriation includes $90,000 for 2001 and 190.18 $813,000 for 2002. 190.19 The 2003 appropriation includes $90,000 for 2002 and 190.20 $813,000 for 2003. 190.21 Subd. 4. [REGIONAL LIBRARY TELECOMMUNICATIONS AID.] For 190.22 aid to regional public library systems under Minnesota Statutes, 190.23 section 134.47: 190.24 $1,500,000 ..... 2002 190.25 $1,500,000 ..... 2003 190.26 Any balance in the first year does not cancel but is 190.27 available in the second year. 190.28 Subd. 5. [STATE AGENCY LIBRARIES.] For maintaining and 190.29 upgrading the on-line computer-based library catalogue system in 190.30 state agency libraries: 190.31 $123,000 ..... 2002 190.32 $123,000 ..... 2003 190.33 Any balance in the first year does not cancel but is 190.34 available in the second year. These appropriation amounts are 190.35 added to amounts included in the appropriation for the 190.36 department of children, families, and learning budget that are 191.1 for the same purpose. 191.2 Subd. 6. [LIBRARY FOR THE BLIND.] For the library for the 191.3 blind to replace a computer system, install a T1 191.4 telecommunications line, and fund the ongoing operational costs 191.5 of the computer system and T1 telecommunications line and two 191.6 permanent staff positions related to these functions: 191.7 $238,000 ..... 2002 191.8 $194,000 ..... 2003 191.9 Of these appropriations, the amount in fiscal year 2002 is 191.10 one-time funding only. 191.11 Sec. 4. [REPEALER.] 191.12 Minnesota Statutes 2000, section 125B.20, subdivision 3, is 191.13 repealed. 191.14 ARTICLE 10 191.15 STATE AGENCIES 191.16 Section 1. Minnesota Statutes 2000, section 122A.162, is 191.17 amended to read: 191.18 122A.162 [LICENSURE RULES.] 191.19 The commissioner may make rules relating to licensure of 191.20 school personnel not licensed by the board of teaching or the 191.21 board of education leadership. 191.22 Sec. 2. Minnesota Statutes 2000, section 122A.163, is 191.23 amended to read: 191.24 122A.163 [TEACHER RULE VARIANCES; COMMISSIONER.] 191.25 Notwithstanding any law to the contrary, and only upon 191.26 receiving the agreement of the state board of teaching or board 191.27 of education leadership, whichever has jurisdiction over the 191.28 teachers' licensure, the commissioner of children, families, and 191.29 learning may grant a variance to rules governing licensure of 191.30 teachers for those teachers licensed by the board of teaching or 191.31 board of education leadership, whichever has jurisdiction. The 191.32 commissioner may grant a variance, without the agreement of the 191.33 board of teaching or board of education leadership, to rules 191.34 adopted by the commissioner governing licensure of teachers for 191.35 those teachers the commissioner licenses. 191.36 Sec. 3. Minnesota Statutes 2000, section 122A.18, 192.1 subdivision 1, is amended to read: 192.2 Subdivision 1. [AUTHORITY TO LICENSE.] (a) The board of 192.3 teaching must license teachers, as defined in section 122A.15, 192.4 subdivision 1, except for supervisory personnel, as defined in 192.5 section 122A.15, subdivision 2. 192.6 (b) Thecommissioner of children, families, and learning192.7 board of education leadership must license supervisory personnel 192.8 as defined in section 122A.15, subdivision 2, except for 192.9 athletic coaches. 192.10 (c) Licenses under the jurisdiction of the board of 192.11 teaching, the board of education leadership, and the 192.12 commissioner of children, families, and learning must be issued 192.13 through the licensing section of the department. 192.14 Sec. 4. Minnesota Statutes 2000, section 122A.18, 192.15 subdivision 4, is amended to read: 192.16 Subd. 4. [EXPIRATION AND RENEWAL.] (a) Each license the 192.17 department of children, families, and learning issues through 192.18 its licensing section must bear the date of issue. Licenses 192.19 must expire and be renewed according to the respective rules the 192.20 board of teaching, the board of education leadership, or the 192.21 commissioner of children, families, and learning adopts. 192.22 Requirements for renewing a license must include showing 192.23 satisfactory evidence of successful teaching experience for at 192.24 least one school year during the period covered by the license 192.25 in grades or subjects for which the license is valid or 192.26 completing such additional preparation as the board of teaching 192.27 prescribes. Thecommissioner of children, families, and192.28learningboard of education leadership shall establish 192.29 requirements for renewing the licenses of supervisory personnel, 192.30 except athletic coaches. 192.31 (b) The board of teaching shall offer alternative 192.32 continuing relicensure options for teachers who are accepted 192.33 into and complete the national board for professional teaching 192.34 standards certification process, and offer additional continuing 192.35 relicensure options for teachers who earn national board for 192.36 professional teaching standards certification. Continuing 193.1 relicensure requirements for teachers who do not maintain 193.2 national board for professional teaching standards certification 193.3 are those the board prescribes. 193.4 Sec. 5. [122A.191] [DEFINITIONS.] 193.5 Subdivision 1. [SCOPE.] For the purposes of sections 193.6 122A.191 to 122A.193, the terms in this section have the 193.7 meanings given them, unless another meaning is clearly indicated. 193.8 Subd. 2. [BOARD.] "Board" means board of education 193.9 leadership. 193.10 Subd. 3. [SUPERVISORY PERSONNEL.] "Supervisory personnel" 193.11 means supervisory personnel as defined in section 122A.15, 193.12 subdivision 2, excluding athletic coaches. 193.13 Sec. 6. [122A.192] [BOARD OF EDUCATION LEADERSHIP.] 193.14 Subdivision 1. [MEMBERSHIP.] A board of education 193.15 leadership is established and must consist of nine members 193.16 appointed by the governor with the advice and consent of the 193.17 senate, including at least: 193.18 (1) one elementary school principal; 193.19 (2) one secondary school principal; 193.20 (3) one higher education faculty member in an educational 193.21 administration program approved by the board; 193.22 (4) one higher education administrator for an educational 193.23 administration program approved by the board; 193.24 (5) one school superintendent; 193.25 (6) one classroom teacher; 193.26 (7) one community education director or a special education 193.27 director; and 193.28 (8) two members of the public, one of whom must be a 193.29 present or former member of a school board. 193.30 In making appointments, the governor shall solicit 193.31 recommendations from groups representing persons in clauses (1) 193.32 to (8). 193.33 Subd. 2. [TERMS; COMPENSATION; REMOVAL; 193.34 ADMINISTRATION.] Membership terms, removal of members, and the 193.35 filling of membership vacancies are as provided in section 193.36 214.09. The terms of the initial board members must be 194.1 determined by lot as follows: 194.2 (1) three members must be appointed for terms that expire 194.3 August 1, 2002; 194.4 (2) three members must be appointed for terms that expire 194.5 August 1, 2003; and 194.6 (3) three members must be appointed for terms that expire 194.7 August 1, 2004. 194.8 Members shall not receive the daily payment under section 194.9 214.09, subdivision 3. The employer of a member shall not 194.10 reduce the member's compensation or benefits for the member's 194.11 absence from employment when engaging in the business of the 194.12 board. The provision of staff, administrative services, and 194.13 office space; the review and processing of complaints; the 194.14 setting of fees; the selection and duties of an executive 194.15 secretary to serve the board; and other provisions relating to 194.16 board operations are as provided in chapter 214. Fiscal year 194.17 and reporting requirements are as provided in sections 214.07 194.18 and 214.08. 194.19 Subd. 3. [VACANT POSITION.] The position of a member is 194.20 deemed vacant if the member leaves Minnesota or the member's 194.21 employment status changes to a category different from that for 194.22 which the member was appointed. 194.23 Subd. 4. [MEETINGS.] The board must meet regularly at the 194.24 times and places determined by the board. The board must 194.25 nominate and elect a chair and other officers from its 194.26 membership. 194.27 Subd. 5. [EXECUTIVE SECRETARY.] The board may have an 194.28 executive secretary who is in the unclassified civil service and 194.29 who is not a member of the board. 194.30 Subd. 6. [COMMISSIONER'S ASSISTANCE; BOARD MONEY.] The 194.31 commissioner shall provide all necessary materials and 194.32 assistance for the transaction of business of the board under 194.33 section 122A.18 and all money received by the board shall be 194.34 paid into the state treasury as provided by law. The expenses 194.35 of administering sections 122A.15, 122A.16, 122A.162 to 122A.18, 194.36 122A.191 to 122A.23, and 122A.27 that are incurred by the board 195.1 of education leadership must be paid for from appropriations 195.2 made to the board of education leadership. 195.3 Sec. 7. [122A.193] [DUTIES OF THE BOARD OF EDUCATION 195.4 LEADERSHIP.] 195.5 Subdivision 1. [LICENSING; RULEMAKING; PREPARATION 195.6 PROGRAMS.] The board must establish standards and procedures, 195.7 that are supported by current research and best practices, for 195.8 preparing supervisory personnel for licensure, licensing, and 195.9 the renewal of licenses of supervisory personnel. The board 195.10 must adopt administrative rules, in accordance with chapter 14, 195.11 for implementing the supervisory personnel licensure process, 195.12 including approving supervisory personnel preparation programs 195.13 and allowing public and private organizations to offer 195.14 alternative preparation programs leading to licensure of 195.15 supervisory personnel. 195.16 Subd. 2. [ACCOUNTABILITY.] The board must develop 195.17 accountability measures for programs preparing students for 195.18 licensure and report the progress of the programs to the 195.19 legislature by January 15 of every other year beginning with the 195.20 2003 legislature. 195.21 Subd. 3. [REGISTER OF PERSONS LICENSED.] The executive 195.22 secretary of the board shall keep a record of the proceedings of 195.23 the board and a register of all persons licensed under this 195.24 section. The register must show the name, address, license 195.25 number, and the renewal of the license. The board must, on July 195.26 1 of each year or as soon thereafter as possible, compile a list 195.27 of licensed supervisory personnel and send a copy of the list to 195.28 the board. A copy of the register must be available during 195.29 business hours at the office of the board to any interested 195.30 person. 195.31 Subd. 4. [RULES FOR CONTINUING EDUCATION REQUIREMENTS.] 195.32 The board shall adopt rules establishing continuing education 195.33 requirements which promote continuous improvement and 195.34 acquisition of new and relevant skills by school administrators. 195.35 Subd. 5. [CODE OF ETHICS.] The board shall adopt by rule a 195.36 code of ethics covering standards of professional practice, 196.1 including ethical conduct, professional performance, and methods 196.2 of enforcement, and advise school administrators in interpreting 196.3 the code of ethics. 196.4 Sec. 8. Minnesota Statutes 2000, section 122A.21, is 196.5 amended to read: 196.6 122A.21 [TEACHERS' AND ADMINISTRATORS' LICENSES; FEES.] 196.7 (a) Each application for the issuance, renewal, or 196.8 extension of a license to teach and each application for the 196.9 issuance, renewal, or extension of a license as supervisory 196.10 personnel must be accompanied by a processing fee in an amount 196.11 set by the board of teaching or the board of education 196.12 leadership, whichever has jurisdiction over the license, by 196.13 rule. The processing fee for a teacher's license and for the 196.14 licenses of supervisory personnel must be paid to the executive 196.15 secretary of the board of teaching or the board of education 196.16 leadership, whichever has jurisdiction over the license. The 196.17 executivesecretarysecretaries of the board of teaching and the 196.18 board of education leadership shall deposit the fees with the 196.19 state treasurer, as provided by law, and report each month to 196.20 the commissioner of finance the amount of fees collected. The 196.21 fees as set by the board of teaching and the board of education 196.22 leadership are nonrefundable for applicants not qualifying for a 196.23 license. However, a fee must be refunded by the state treasurer 196.24 in any case in which the applicant already holds a valid 196.25 unexpired license. The board of teaching and the board of 196.26 education leadership may waive or reduce fees for applicants who 196.27 apply at the same time for more than one license. 196.28 (b) The processing fee for administrators' licenses must be 196.29 at least $75, beginning July 1, 2001. For fiscal year 2003 and 196.30 later, the board of education leadership must set a fee, by 196.31 rule, in an amount that generates enough revenue to cover all 196.32 board costs and expenses. 196.33 Sec. 9. Minnesota Statutes 2000, section 214.01, 196.34 subdivision 3, is amended to read: 196.35 Subd. 3. [NON-HEALTH-RELATED LICENSING BOARD.] 196.36 "Non-health-related licensing board" means the board of teaching 197.1 established pursuant to section 122A.07, the board of education 197.2 leadership established under section 122A.192, the board of 197.3 barber examiners established pursuant to section 154.22, the 197.4 board of assessors established pursuant to section 270.41, the 197.5 board of architecture, engineering, land surveying, landscape 197.6 architecture, geoscience, and interior design established 197.7 pursuant to section 326.04, the board of accountancy established 197.8 pursuant to section 326.17, the board of electricity established 197.9 pursuant to section 326.241, the private detective and 197.10 protective agent licensing board established pursuant to section 197.11 326.33, the board of boxing established pursuant to section 197.12 341.01, and the peace officer standards and training board 197.13 established pursuant to section 626.841. 197.14 Sec. 10. Minnesota Statutes 2000, section 214.04, 197.15 subdivision 1, is amended to read: 197.16 Subdivision 1. [SERVICES PROVIDED.] The commissioner of 197.17 administration with respect to the board of electricity, the 197.18 commissioner of children, families, and learning with respect to 197.19 the board of teaching and the board of education leadership, the 197.20 commissioner of public safety with respect to the board of 197.21 private detective and protective agent services, and the board 197.22 of peace officer standards and training, and the commissioner of 197.23 revenue with respect to the board of assessors, shall provide 197.24 suitable offices and other space, joint conference and hearing 197.25 facilities, examination rooms, and the following administrative 197.26 support services: purchasing service, accounting service, 197.27 advisory personnel services, consulting services relating to 197.28 evaluation procedures and techniques, data processing, 197.29 duplicating, mailing services, automated printing of license 197.30 renewals, and such other similar services of a housekeeping 197.31 nature as are generally available to other agencies of state 197.32 government. Investigative services shall be provided the boards 197.33 by employees of the office of attorney general. The 197.34 commissioner of health with respect to the health-related 197.35 licensing boards shall provide mailing and office supply 197.36 services and may provide other facilities and services listed in 198.1 this subdivision at a central location upon request of the 198.2 health-related licensing boards. The commissioner of commerce 198.3 with respect to the remaining non-health-related licensing 198.4 boards shall provide the above facilities and services at a 198.5 central location for the remaining non-health-related licensing 198.6 boards. The legal and investigative services for the boards 198.7 shall be provided by employees of the attorney general assigned 198.8 to the departments servicing the boards. Notwithstanding the 198.9 foregoing, the attorney general shall not be precluded by this 198.10 section from assigning other attorneys to service a board if 198.11 necessary in order to insure competent and consistent legal 198.12 representation. Persons providing legal and investigative 198.13 services shall to the extent practicable provide the services on 198.14 a regular basis to the same board or boards. 198.15 Sec. 11. Minnesota Statutes 2000, section 214.04, 198.16 subdivision 3, is amended to read: 198.17 Subd. 3. [OFFICERS; STAFF.] The executive director of each 198.18 health-related board and the executive secretary of each 198.19 non-health-related board shall be the chief administrative 198.20 officer for the board but shall not be a member of the board. 198.21 The executive director or executive secretary shall maintain the 198.22 records of the board, account for all fees received by it, 198.23 supervise and direct employees servicing the board, and perform 198.24 other services as directed by the board. The executive 198.25 directors, executive secretaries, and other employees of the 198.26 following boards shall be hired by the board, and the executive 198.27 directors or executive secretaries shall be in the unclassified 198.28 civil service, except as provided in this subdivision: 198.29 (1) dentistry; 198.30 (2) medical practice; 198.31 (3) nursing; 198.32 (4) pharmacy; 198.33 (5) accountancy; 198.34 (6) architecture, engineering, land surveying, landscape 198.35 architecture, geoscience, and interior design; 198.36 (7) barber examiners; 199.1 (8) cosmetology; 199.2 (9) electricity; 199.3 (10) teaching; 199.4 (11) peace officer standards and training; 199.5 (12) social work; 199.6 (13) marriage and family therapy;and199.7 (14) dietetics and nutrition practice; and 199.8 (15) education leadership. 199.9 The executive directors or executive secretaries serving 199.10 the boards are hired by those boards and are in the unclassified 199.11 civil service, except for part-time executive directors or 199.12 executive secretaries, who are not required to be in the 199.13 unclassified service. Boards not requiring full-time executive 199.14 directors or executive secretaries may employ them on a 199.15 part-time basis. To the extent practicable, the sharing of 199.16 part-time executive directors or executive secretaries by boards 199.17 being serviced by the same department is encouraged. Persons 199.18 providing services to those boards not listed in this 199.19 subdivision, except executive directors or executive secretaries 199.20 of the boards and employees of the attorney general, are 199.21 classified civil service employees of the department servicing 199.22 the board. To the extent practicable, the commissioner shall 199.23 ensure that staff services are shared by the boards being 199.24 serviced by the department. If necessary, a board may hire 199.25 part-time, temporary employees to administer and grade 199.26 examinations. 199.27 Sec. 12. Minnesota Statutes 2000, section 214.12, 199.28 subdivision 1, is amended to read: 199.29 Subdivision 1. [REQUIREMENTS.] The health-related and 199.30 non-health-related licensing boards may promulgate by rule 199.31 requirements for renewal of licenses designed to promote the 199.32 continuing professional competence of licensees. These 199.33 requirements of continuing professional education or training 199.34 shall be designed solely to improve professional skills and 199.35 shall not exceed an average attendance requirement of 50 clock 199.36 hours per year. All requirements promulgated by the boards 200.1 shall be effective commencing January 1, 1977, or at a later 200.2 date as the board may determine. The 50 clock hour limitation 200.3 shall not apply to the board of teaching and board of education 200.4 leadership. 200.5 Sec. 13. [TRANSFER OF POWERS AND DUTIES; RULES.] 200.6 Except as otherwise provided in this section and in 200.7 Minnesota Statutes, section 122A.18, the powers, duties, and 200.8 responsibilities of the commissioner of children, families, and 200.9 learning with respect to supervisory personnel as defined in 200.10 Minnesota Statutes, section 122A.15, subdivision 2, except for 200.11 athletic coaches, are transferred to the board of education 200.12 leadership. 200.13 Sec. 14. [DIVISION OF GIFTED AND TALENTED SERVICES.] 200.14 The commissioner of children, families, and learning shall 200.15 establish a division of gifted and talented services within the 200.16 department of children, families, and learning beginning in 200.17 fiscal year 2002. Any head or staff of this division must have 200.18 extensive training and experience in gifted education. The 200.19 division shall: 200.20 (1) provide general oversight to the gifted and talented 200.21 revenue program; 200.22 (2) provide support and start-up assistance for districts 200.23 that do not have gifted and talented programs; 200.24 (3) develop a set of criteria for best practice gifted and 200.25 talented instruction and assist districts in providing 200.26 professional development in gifted and talented instruction; 200.27 (4) assist districts in developing processes for 200.28 identifying and assessing students for placement in appropriate 200.29 gifted and talented services; 200.30 (5) assist districts in developing gifted and talented 200.31 services that are integrated with the state's graduation 200.32 standards; 200.33 (6) by July 1, 2002, develop a state accountability system 200.34 with district outcomes for gifted and talented programs; and 200.35 (7) by July 1, 2002, develop a uniform system of reporting 200.36 program expenses and results to the state and to the local 201.1 school board. 201.2 Sec. 15. [CONTRACTS AND GRANTS UNIT; INTERNAL AUDITS 201.3 OFFICE.] 201.4 (a) The commissioner of children, families, and learning 201.5 shall establish a contracts and grants unit within the 201.6 department to manage the contracting process for the 201.7 department. The unit must be separate from individual program 201.8 functions. The duties of the unit include: 201.9 (1) supporting the fiscal management of contracts and 201.10 grants; 201.11 (2) technical assistance to program areas in setting up and 201.12 monitoring grants; 201.13 (3) legal review of contracts for compliance with state law 201.14 and requirements of private grants; 201.15 (4) training and advising program areas on how the 201.16 contracting process should be handled; 201.17 (5) reviewing requests for proposals for compliance with 201.18 legal requirements; 201.19 (6) drafting and maintaining a contracts manual for use by 201.20 program areas; and 201.21 (7) approving all contracts entered into by program areas. 201.22 (b) The commissioner of children, families, and learning 201.23 shall establish an internal audits office. Any significant 201.24 audit violations must be reported to the commissioner in 201.25 writing. The office must report at least annually to the 201.26 commissioner on contract policies, procedures, and controls. 201.27 Duties of the internal audits office include: 201.28 (1) serving as an independent appraisal function to examine 201.29 and evaluate the department's activities; 201.30 (2) measuring and evaluating the effectiveness of 201.31 accounting, financial and operating policies, procedures, and 201.32 controls on a department basis; and 201.33 (3) examining contracts and grants for compliance with 201.34 federal and state law. 201.35 Sec. 16. [APPROPRIATIONS; DEPARTMENT OF CHILDREN, 201.36 FAMILIES, AND LEARNING.] 202.1 Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND 202.2 LEARNING.] The sums indicated in this section are appropriated 202.3 from the general fund unless otherwise indicated to the 202.4 department of children, families, and learning for the fiscal 202.5 years designated. 202.6 Subd. 2. [TEACHING AND LEARNING PROGRAM.] For the teaching 202.7 and learning program: 202.8 $8,092,000 ..... 2002 202.9 $8,206,000 ..... 2003 202.10 Of this amount, $20,000 each year is for the foreign 202.11 teacher exchange program. 202.12 Any balance in the first year does not cancel but is 202.13 available in the second year. 202.14 Subd. 3. [AFFILIATED ORGANIZATIONS.] (a) For affiliated 202.15 organizations: 202.16 $2,674,000 ..... 2002 202.17 $2,642,000 ..... 2003 202.18 Any balance in the first year does not cancel but is 202.19 available in the second year. 202.20 (b) Of this amount, $260,000 each year is for the Minnesota 202.21 Children's Museum; $50,000 in fiscal year 2002 is for the Duluth 202.22 Children's Museum; $625,000 each year is for the Minnesota 202.23 Foundation for student organizations; and $1,000,000 each year 202.24 is for the board of teaching. 202.25 (c) The expenditures of federal grants and aids as shown in 202.26 the biennial budget document and its supplement are approved and 202.27 appropriated and shall be spent as indicated. 202.28 Subd. 4. [MANAGEMENT SERVICES PROGRAM.] For the management 202.29 services program: 202.30 $14,792,000 ..... 2002 202.31 $15,028,000 ..... 2003 202.32 Any balance in the first year does not cancel but is 202.33 available in the second year. 202.34 Subd. 5. [COMMUNITY SERVICES PROGRAM.] For the community 202.35 services program: 202.36 $3,008,000 ..... 2002 203.1 $3,078,000 ..... 2003 203.2 Any balance in the first year does not cancel but is 203.3 available the second year. 203.4 Subd. 6. [POLICY DEVELOPMENT.] For the policy development 203.5 program: 203.6 $3,103,000 ..... 2002 203.7 $3,183,000 ..... 2003 203.8 Any balance in the first year does not cancel but is 203.9 available in the second year. 203.10 Sec. 17. [APPROPRIATIONS; BOARD OF EDUCATION LEADERSHIP.] 203.11 The sums indicated in this section are appropriated from 203.12 the general fund to the board of education leadership for the 203.13 fiscal years designated: 203.14 $165,000 ..... 2002 203.15 $165,000 ..... 2003 203.16 Any balance in the first year does not cancel but is 203.17 available in the second year. 203.18 Sec. 18. [APPROPRIATIONS; PERPICH CENTER FOR ARTS 203.19 EDUCATION.] 203.20 The sums indicated in this section are appropriated from 203.21 the general fund to the Perpich center for arts education for 203.22 the fiscal years designated: 203.23 $7,781,000 ..... 2002 203.24 $7,916,000 ..... 2003 203.25 Of each year's appropriation, $175,000 is to extend the 203.26 partnership network to up to five new partnership sites and 203.27 $75,000 is for developing whole-school, arts-based teaching and 203.28 learning curriculum at new sites. 203.29 Any balance in the first year does not cancel but is 203.30 available in the second year. 203.31 Sec. 19. [APPROPRIATIONS; FARIBAULT ACADEMIES.] 203.32 The sums indicated in this section are appropriated from 203.33 the general fund to the Faribault academies for the deaf and the 203.34 blind for the fiscal years designated: 203.35 $10,761,000 ..... 2002 203.36 $10,966,000 ..... 2003 204.1 Any balance in the first year does not cancel but is 204.2 available in the second year. 204.3 Sec. 20. [INSTRUCTION TO REVISOR.] 204.4 In the next and subsequent editions of Minnesota Statutes, 204.5 the revisor of statutes shall substitute the term "board of 204.6 education leadership" for the term "commissioner" or 204.7 "commissioner of children, families, and learning" in the 204.8 following sections of Minnesota Statutes: 122A.18, subdivisions 204.9 3, 6, and 8; 122A.20, subdivision 1; 122A.23, subdivision 1; 204.10 122A.27, subdivisions 1, 4, and 5; 123A.21; 123B.03, subdivision 204.11 1; and 125A.67, subdivision 2. 204.12 ARTICLE 11 204.13 TECHNICAL AMENDMENTS 204.14 Section 1. Minnesota Statutes 2000, section 122A.26, 204.15 subdivision 3, is amended to read: 204.16 Subd. 3. [ENGLISH AS A SECOND LANGUAGE.] Notwithstanding 204.17 subdivision 2, a person who possesses a bachelor's or master's 204.18 degree in English as a second language, applied linguistics, or 204.19 bilingual education, or who possesses a related degree as 204.20 approved by the commissioner, shall be permitted to teach 204.21 English as a second language in an adult basic education program 204.22 that receives funding under section124D.53124D.531. 204.23 Sec. 2. Minnesota Statutes 2000, section 124D.11, 204.24 subdivision 5, is amended to read: 204.25 Subd. 5. [SPECIAL EDUCATION AID.] Except as provided in 204.26 subdivision 2, special education aid must be paid to a charter 204.27 school according to section 125A.76, as though it were a school 204.28 district. The charter school may charge tuition to the district 204.29 of residence as provided in section 125A.11.The charter school204.30shall allocate its special education levy equalization revenue204.31to the resident districts of the pupils attending the charter204.32school. The districts of residence shall levy as though they204.33were participating in a cooperative, as provided in section204.34125A.77, subdivision 3.204.35 Sec. 3. Minnesota Statutes 2000, section 124D.454, 204.36 subdivision 11, is amended to read: 205.1 Subd. 11. [REVENUE ALLOCATION FROM COOPERATIVE CENTERS AND 205.2 INTERMEDIATE DISTRICTS.] For purposes of this sectionand205.3section 125A.77, a cooperative center or an intermediate 205.4 district must allocate its approved expenditures for transition 205.5 programs for children with a disability among participating 205.6 school districts. Aid for transition programs for children with 205.7 a disability for services provided by a cooperative or 205.8 intermediate district shall be paid to the participating 205.9 districts. 205.10 Sec. 4. Minnesota Statutes 2000, section 125A.17, is 205.11 amended to read: 205.12 125A.17 [LEGAL RESIDENCE OF A CHILD WITH A DISABILITY 205.13 PLACED IN A FOSTER FACILITY.] 205.14 The legal residence of a child with a disability placed in 205.15 a foster facility for care and treatment is the district in 205.16 which the child resides when: 205.17 (1) parental rights have been terminated by court order; 205.18 (2) the parent or guardian is not living within the state; 205.19 (3) no other district residence can be established; or 205.20 (4) the parent or guardian having legal custody of the 205.21 child is an inmate of a Minnesota correctional facility or is a 205.22 resident of a halfway house under the supervision of the 205.23 commissioner of corrections;205.24is the district in which the child resides. The school board of 205.25 the district of residence must provide the same educational 205.26 program for the child as it provides for all resident children 205.27 with a disability in the district. 205.28 Sec. 5. Minnesota Statutes 2000, section 126C.17, 205.29 subdivision 6, is amended to read: 205.30 Subd. 6. [REFERENDUM EQUALIZATION LEVY.](a)A district's 205.31 referendum equalization levy for a referendum levied against the 205.32 referendum market value of all taxable property as defined in 205.33 section 126C.01, subdivision 3, equals the district's referendum 205.34 equalization revenue times the lesser of one or the ratio of the 205.35 district's referendum market value per resident marginal cost 205.36 pupil unit to $476,000. 206.1(b) A district's referendum equalization levy for a206.2referendum levied against the net tax capacity of all taxable206.3property equals the district's referendum equalization revenue206.4times the lesser of one or the ratio of the district's adjusted206.5net tax capacity per resident marginal cost pupil unit to $8,404.206.6 Sec. 6. Minnesota Statutes 2000, section 127A.41, 206.7 subdivision 8, is amended to read: 206.8 Subd. 8. [APPROPRIATION TRANSFERS.] If a direct 206.9 appropriation from the general fund to the department for any 206.10 education aid or grant authorized in this chapter and chapters 206.11 122A, 123A, 123B, 124D, 126C, and 134, excluding appropriations 206.12 under sections 124D.135, 124D.16, 124D.20, 124D.21, 124D.22, 206.13 124D.52,124D.53124D.531, 124D.54, 124D.55, and 124D.56, 206.14 exceeds the amount required, the commissioner may transfer the 206.15 excess to any education aid or grant appropriation that is 206.16 insufficient. However, section 126C.20 applies to a deficiency 206.17 in the direct appropriation for general education aid. Excess 206.18 appropriations must be allocated proportionately among aids or 206.19 grants that have insufficient appropriations. The commissioner 206.20 of finance shall make the necessary transfers among 206.21 appropriations according to the determinations of the 206.22 commissioner. If the amount of the direct appropriation for the 206.23 aid or grant plus the amount transferred according to this 206.24 subdivision is insufficient, the commissioner shall prorate the 206.25 available amount among eligible districts. The state is not 206.26 obligated for any additional amounts. 206.27 Sec. 7. Minnesota Statutes 2000, section 127A.41, 206.28 subdivision 9, is amended to read: 206.29 Subd. 9. [APPROPRIATION TRANSFERS FOR COMMUNITY EDUCATION 206.30 PROGRAMS.] If a direct appropriation from the general fund to 206.31 the department of children, families, and learning for an 206.32 education aid or grant authorized under section 124D.135, 206.33 124D.16, 124D.20, 124D.21, 124D.22, 124D.52,124D.53124D.531, 206.34 124D.54, 124D.55, or 124D.56 exceeds the amount required, the 206.35 commissioner of children, families, and learning may transfer 206.36 the excess to any education aid or grant appropriation that is 207.1 insufficiently funded under these sections. Excess 207.2 appropriations shall be allocated proportionately among aids or 207.3 grants that have insufficient appropriations. The commissioner 207.4 of finance shall make the necessary transfers among 207.5 appropriations according to the determinations of the 207.6 commissioner of children, families, and learning. If the amount 207.7 of the direct appropriation for the aid or grant plus the amount 207.8 transferred according to this subdivision is insufficient, the 207.9 commissioner shall prorate the available amount among eligible 207.10 districts. The state is not obligated for any additional 207.11 amounts. 207.12 Sec. 8. Laws 2000, chapter 489, article 7, section 15, 207.13 subdivision 3, is amended to read: 207.14 Subd. 3. [COOPERATIVE SECONDARY FACILITY; PLANNING AND 207.15 EXPENSES.] For a grant and administrative expenses to facilitate 207.16 planning for a cooperative secondary facility under a joint 207.17 powers agreement for school district Nos. 411, Balaton, 402, 207.18 Hendricks, 403, Ivanhoe, 404, Lake Benton, 418, Russell, 584, 207.19 Ruthton, and 409, Tyler: 207.20 $100,000 ..... 2001 207.21 This is a one-time appropriation. 207.22 Sec. 9. [REPEALER.] 207.23 Laws 2000, chapter 254, section 30; and Laws 2000, chapter 207.24 489, article 1, section 18, are repealed.