1.1                          A bill for an act 
  1.2             relating to education; kindergarten through grade 12; 
  1.3             providing for general education; special programs; 
  1.4             employment and transitions; facilities and technology; 
  1.5             educational excellence and other policy; nutrition; 
  1.6             fund transfers; libraries; state agencies; and 
  1.7             technical, conforming, and clarifying amendments; 
  1.8             appropriating money; amending Minnesota Statutes 1998, 
  1.9             sections 120A.22, subdivision 3; 120A.41; 121A.61, 
  1.10            subdivision 3; 122A.18, subdivision 2; 122A.31, 
  1.11            subdivision 4; 123A.485, subdivision 4; 123B.02, by 
  1.12            adding a subdivision; 123B.51, subdivision 6; 123B.52, 
  1.13            by adding a subdivision; 123B.53, by adding 
  1.14            subdivisions; 123B.59, subdivision 6, and by adding 
  1.15            subdivisions; 123B.71, subdivisions 3 and 10; 123B.79, 
  1.16            subdivision 7; 123B.85, subdivision 1; 123B.86, 
  1.17            subdivision 1; 123B.88, subdivision 3; 124D.081, 
  1.18            subdivision 6; 124D.111, subdivision 1; 124D.128, 
  1.19            subdivision 4; 124D.44; 124D.454, subdivisions 2 and 
  1.20            10; 124D.86, subdivision 6, and by adding 
  1.21            subdivisions; 125A.76, subdivision 7; 126C.10, by 
  1.22            adding a subdivision; 126C.12, subdivision 2; 126C.40, 
  1.23            subdivision 1, and by adding a subdivision; 126C.69, 
  1.24            subdivision 3; 127A.05, subdivision 4; 127A.41, 
  1.25            subdivisions 8 and 9; 127A.48, subdivision 1; 
  1.26            136D.281, subdivision 4; 136D.741, subdivision 4; 
  1.27            136D.88, subdivision 4; 471.15; 475.53, subdivision 4; 
  1.28            Minnesota Statutes 1999 Supplement, sections 122A.09, 
  1.29            subdivision 4; 123B.53, subdivisions 4 and 6; 123B.54; 
  1.30            124D.10, subdivisions 3, 4, 6, 8, 11, 14, 15, and 23; 
  1.31            124D.11, subdivisions 1, 4, and 6; 124D.1155, 
  1.32            subdivision 2; 124D.128, subdivision 2; 124D.453, 
  1.33            subdivision 3; 124D.65, subdivision 4; 124D.84, 
  1.34            subdivision 1; 124D.86, subdivisions 1 and 3; 124D.87; 
  1.35            125A.023, subdivisions 3 and 5; 125A.08; 125A.76, 
  1.36            subdivision 2; 125A.79, subdivision 8; 125A.80; 
  1.37            125B.21, subdivision 3; 126C.052; 126C.10, 
  1.38            subdivisions 1, 2, 14, 23, 24, 25, and 26; 126C.12, 
  1.39            subdivision 1; 126C.17, subdivision 9; 126C.40, 
  1.40            subdivision 6; 126C.44; 126C.63, subdivision 8; 
  1.41            126C.69, subdivision 9; 127A.45, subdivision 12a; 
  1.42            127A.51; and 181A.04, subdivision 6; Laws 1997, First 
  1.43            Special Session chapter 4, article 8, section 4, as 
  1.44            amended; Laws 1999, chapter 241, article 1, sections 
  1.45            66; 68, subdivisions 4 and 5; 69; and 70; article 2, 
  1.46            section 60, subdivisions 7, 9, 12, 13, 14, 17, and 19; 
  2.1             article 3, sections 3, subdivisions 2 and 4; and 5; 
  2.2             article 4, sections 27, subdivisions 2, 3, 4, 5, 7, 
  2.3             10, and 11; and 29; article 5, section 18, 
  2.4             subdivisions 5 and 6; article 6, section 14, 
  2.5             subdivisions 2, 3, 4, and 5; article 8, section 4, 
  2.6             subdivision 5; article 9, section 49; article 10, 
  2.7             section 6; proposing coding for new law in Minnesota 
  2.8             Statutes, chapters 121A; 122A; 123B; 125B; and 134; 
  2.9             repealing Minnesota Statutes 1998, sections 123B.59, 
  2.10            subdivision 7; 126C.30; 126C.31; 126C.32; 126C.33; 
  2.11            126C.34; 126C.35; 126C.36; 136D.281, subdivision 8; 
  2.12            136D.741, subdivision 8; 136D.88, subdivision 8; Laws 
  2.13            1999, chapter 216, article 4, section 12; chapter 241, 
  2.14            articles 1, section 64; 9, sections 35 and 36; and 10, 
  2.15            section 5; chapter 245, article 4, section 3; 
  2.16            Minnesota Rules, part 3535.9920. 
  2.17  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  2.18                             ARTICLE 1 
  2.19                         GENERAL EDUCATION 
  2.20     Section 1.  Minnesota Statutes 1999 Supplement, section 
  2.21  124D.11, subdivision 1, is amended to read: 
  2.22     Subdivision 1.  [GENERAL EDUCATION REVENUE.] (a) General 
  2.23  education revenue must be paid to a charter school as though it 
  2.24  were a district.  The general education revenue for each 
  2.25  adjusted marginal cost pupil unit is the state average general 
  2.26  education revenue per pupil unit, plus the referendum 
  2.27  equalization aid allowance in the pupil's district of residence, 
  2.28  minus an amount equal to the product of the formula allowance 
  2.29  according to section 126C.10, subdivision 2, times .0485, 
  2.30  calculated without basic skills revenue, transportation sparsity 
  2.31  revenue, and the transportation portion of the transition 
  2.32  revenue adjustment, plus basic skills revenue as though the 
  2.33  school were a school district. 
  2.34     (b) Notwithstanding paragraph (a), for charter schools in 
  2.35  the first year of operation, general education revenue shall be 
  2.36  computed using the number of adjusted pupil units in the current 
  2.37  fiscal year.  
  2.38     <b>EFFECTIVE DATE:</b>  This section is effective the day 
  2.39  following final enactment. 
  2.40     Sec. 2.  Minnesota Statutes 1999 Supplement, section 
  2.41  124D.65, subdivision 4, is amended to read: 
  2.42     Subd. 4.  [STATE TOTAL LEP REVENUE.] (a) The state total 
  2.43  limited English proficiency programs revenue for fiscal year 
  3.1   2000 equals $27,454,000.  The state total limited English 
  3.2   proficiency programs revenue for fiscal year 2001 equals 
  3.3   $31,752,000.  
  3.4      (b) The state total limited English proficiency programs 
  3.5   revenue for later fiscal years equals: 
  3.6      (1) the state total limited English proficiency programs 
  3.7   revenue for the preceding fiscal year; times 
  3.8      (2) the program growth factor under section 125A.76 
  3.9   subdivision 1; times 
  3.10     (3) the ratio of the state total number of pupils with 
  3.11  limited English proficiency for the current fiscal year to the 
  3.12  state total number of pupils with limited English proficiency 
  3.13  for the preceding fiscal year. 
  3.14     <b>EFFECTIVE DATE:</b>  This section is effective the day 
  3.15  following final enactment. 
  3.16     Sec. 3.  Minnesota Statutes 1999 Supplement, section 
  3.17  124D.86, subdivision 1, is amended to read: 
  3.18     Subdivision 1.  [USE OF THE REVENUE.] Integration revenue 
  3.19  under this section must be used for programs established under a 
  3.20  desegregation plan filed with the department of children, 
  3.21  families, and learning according to Minnesota Rules, parts 
  3.22  3535.0100 to 3535.0180, or under court order, to increase.  The 
  3.23  revenue must be used to create or enhance learning opportunities 
  3.24  and reduce the learning gap between learners living in high 
  3.25  concentrations of poverty and their peers which are designed to 
  3.26  provide opportunities for students to have increased interracial 
  3.27  contacts through classroom experiences, staff initiatives, and 
  3.28  other educationally related programs. 
  3.29     Sec. 4.  Minnesota Statutes 1998, section 124D.86, is 
  3.30  amended by adding a subdivision to read: 
  3.31     Subd. 1a.  [BUDGET APPROVAL PROCESS.] Before a district 
  3.32  receives any revenue under subdivision 3, clause (4), the 
  3.33  district must submit to the department of children, families, 
  3.34  and learning, for its review and approval, a budget detailing 
  3.35  the costs of the desegregation/integration plan filed under 
  3.36  Minnesota Rules, parts 3535.0100 to 3535.0180.  Notwithstanding 
  4.1   chapter 14, the department may develop criteria for budget 
  4.2   approval.  The criteria developed by the department should 
  4.3   address, at a minimum, the following: 
  4.4      (1) budget items that cannot be approved unless they are 
  4.5   part of any overall desegregation plan approved by the district 
  4.6   for isolated sites or by the multidistrict collaboration council 
  4.7   and participating individual members; 
  4.8      (2) a budget that must indicate how revenue expenditures 
  4.9   will be used specifically to support increased opportunities for 
  4.10  interracial contact; 
  4.11     (3) components of the budget to be considered by the 
  4.12  department, including staffing, curriculum, transportation, 
  4.13  facilities, materials, and equipment and reasonable planning 
  4.14  costs, as determined by the department; and 
  4.15     (4) if plans are proposed to enhance existing programs, a 
  4.16  total budget reflecting the appropriation for the program that 
  4.17  includes the part funded using integration revenue and the part 
  4.18  funded using other revenues. 
  4.19     Sec. 5.  Minnesota Statutes 1998, section 124D.86, is 
  4.20  amended by adding a subdivision to read: 
  4.21     Subd. 1b.  [PLAN COMPONENTS.] Plans submitted by each 
  4.22  district under Minnesota Rules, parts 3535.0160 and 3535.0170, 
  4.23  must be approved by the district's board before integration 
  4.24  revenue will be awarded.  If a district is applying for revenue 
  4.25  for a plan that is part of a multidistrict council, the 
  4.26  individual district shall not receive revenue unless it ratifies 
  4.27  the plan adopted by its multidistrict council or approves a 
  4.28  modified plan with a written explanation of any modifications.  
  4.29  Each plan shall contain: 
  4.30     (1) an identification of the integration issues at the 
  4.31  sites or districts covered by Minnesota Rules, parts 3535.0100 
  4.32  to 3535.0180; 
  4.33     (2) a description of the community outreach that preceded 
  4.34  the integration plan, such that the commissioner can determine 
  4.35  whether the membership of the planning councils complied with 
  4.36  the requirements of Minnesota Rules, parts 3535.0100 to 
  5.1   3535.0180; and 
  5.2      (3) the specific goals of the integration plan. 
  5.3   By June 30 of the subsequent fiscal year, each district shall 
  5.4   report to the commissioner in writing about the extent to which 
  5.5   the integration goals identified in the plan were met. 
  5.6      Sec. 6.  Minnesota Statutes 1999 Supplement, section 
  5.7   124D.86, subdivision 3, is amended to read: 
  5.8      Subd. 3.  [INTEGRATION REVENUE.] For fiscal year 2000 and 
  5.9   later fiscal years, integration revenue equals the following 
  5.10  amounts: 
  5.11     (1) for independent school district No. 709, Duluth, $207 
  5.12  times the adjusted pupil units for the school year; 
  5.13     (2) for independent school district No. 625, St. Paul, $446 
  5.14  times the adjusted pupil units for the school year; 
  5.15     (3) for special school district No. 1, Minneapolis, $536 
  5.16  times the adjusted pupil units for the school year; and 
  5.17     (4) for a district not listed in clause (1), (2), or (3) 
  5.18  that is required to implement a plan according to the 
  5.19  requirements of Minnesota Rules, parts 3535.0100 to 
  5.20  3535.0180, as proposed in 23 State Register 1344, December 7, 
  5.21  1998, the lesser of 
  5.22     (i) the actual cost of implementing the plan during the 
  5.23  fiscal year minus the aid received under subdivision 6, or 
  5.24     (ii) $93 times the adjusted pupil units for the school year.
  5.25     Any money received by districts in clauses (1) to (3) which 
  5.26  exceeds the amount received in fiscal year 2000 shall be subject 
  5.27  to the budget requirements in subdivision 1a. 
  5.28     Sec. 7.  Minnesota Statutes 1998, section 124D.86, 
  5.29  subdivision 6, is amended to read: 
  5.30     Subd. 6.  [ALTERNATIVE ATTENDANCE PROGRAMS.] (a) The 
  5.31  integration aid under subdivision 5 must be adjusted for each 
  5.32  pupil residing in a district eligible for integration revenue 
  5.33  under subdivision 3, clause (1), (2), or (3), and attending a 
  5.34  nonresident district under sections 123A.05 to 123A.08, 124D.03, 
  5.35  124D.06, 124D.07, and 124D.08, that is not eligible for 
  5.36  integration revenue under subdivision 3, clause (1), (2), or 
  6.1   (3), and has implemented a plan under Minnesota Rules, parts 
  6.2   3535.0100 to 3535.0180, if the enrollment of the pupil in the 
  6.3   nonresident district contributes to desegregation or integration 
  6.4   purposes.  The adjustments must be made according to this 
  6.5   subdivision.  
  6.6      (b) Aid paid to the district of the pupil's residence must 
  6.7   be reduced by an amount equal to the revenue per resident pupil 
  6.8   unit of the resident district times the number of resident pupil 
  6.9   units attributable to the pupil for the time the pupil is 
  6.10  enrolled in a nonresident district. 
  6.11     (c) Aid paid to a district serving nonresidents must be 
  6.12  increased by an amount equal to the aid reduction to the 
  6.13  resident district under paragraphs (b) and (d) revenue per pupil 
  6.14  unit of the resident district under subdivision 3, clause (1), 
  6.15  (2), or (3), minus the revenue attributable to the pupil in the 
  6.16  nonresident district under subdivision 3, clause (4), for the 
  6.17  time the pupil is enrolled in the nonresident district.  
  6.18     (d) If the amount of the reduction to be made from the aid 
  6.19  of a district is greater than the amount of aid otherwise due 
  6.20  the district, the excess reduction must be made from other state 
  6.21  aids due the district. 
  6.22     <b>EFFECTIVE DATE:</b>  This section is effective the day 
  6.23  following final enactment. 
  6.24     Sec. 8.  Minnesota Statutes 1999 Supplement, section 
  6.25  124D.87, is amended to read: 
  6.26     124D.87 [INTERDISTRICT DESEGREGATION OR INTEGRATION 
  6.27  TRANSPORTATION AID.] 
  6.28     (a) A district that provides transportation of pupils to 
  6.29  and from an interdistrict program for desegregation or 
  6.30  integration purposes is eligible for state aid to cover 
  6.31  reimburse the additional costs of transportation during the 
  6.32  preceding fiscal year.  
  6.33     (b) A district in the metropolitan area may apply to the 
  6.34  commissioner for state aid to cover reimburse the costs of 
  6.35  transporting pupils who are enrolled under section 
  6.36  124D.03 during the preceding fiscal year if the enrollment of 
  7.1   the student in the nonresident district contributes to 
  7.2   desegregation or integration purposes.  The commissioner shall 
  7.3   develop the form and manner of applications for state aid, the 
  7.4   criteria to be used to determine when transportation is for 
  7.5   desegregation or integration purposes, and the accounting 
  7.6   procedure to be used to determine excess costs.  In determining 
  7.7   aid amounts, the commissioner shall consider other revenue 
  7.8   received by the district for transportation for desegregation or 
  7.9   integration purposes. 
  7.10     (c) Aid must be paid under paragraph (b) only if aid 
  7.11  amounts under paragraph (a) have been fully funded. 
  7.12     <b>EFFECTIVE DATE:</b>  This section is effective July 1, 2001. 
  7.13     Sec. 9.  Minnesota Statutes 1999 Supplement, section 
  7.14  126C.052, is amended to read: 
  7.15     126C.052 [CLASS SIZE, ALL-DAY KINDERGARTEN, AND SPECIAL 
  7.16  EDUCATION STUDENT-TO-INSTRUCTOR RATIO RESERVE.] 
  7.17     A district is required to reserve $3 in fiscal year 2000 
  7.18  and $11 in fiscal year 2001 and later per adjusted marginal cost 
  7.19  pupil unit for class size reduction, all-day kindergarten, or 
  7.20  for reducing special education student-to-instructor ratios.  
  7.21  The school board of each district must pass a resolution stating 
  7.22  which one of these three programs will be funded with this 
  7.23  reserve.  The reserve amount under this section must be 
  7.24  allocated to the education site as defined in section 123B.04, 
  7.25  subdivision 1, according to a plan adopted by the school board. 
  7.26     <b>EFFECTIVE DATE:</b>  This section is effective the day 
  7.27  following final enactment. 
  7.28     Sec. 10.  Minnesota Statutes 1999 Supplement, section 
  7.29  126C.10, subdivision 1, is amended to read: 
  7.30     Subdivision 1.  [GENERAL EDUCATION REVENUE.] For fiscal 
  7.31  year 2000 2001 and thereafter, the general education revenue for 
  7.32  each district equals the sum of the district's basic revenue, 
  7.33  basic skills revenue, training and experience revenue, secondary 
  7.34  sparsity revenue, elementary sparsity revenue, transportation 
  7.35  sparsity revenue, total operating capital revenue, equity 
  7.36  revenue, small school enhanced equity revenue, referendum offset 
  8.1   adjustment, transition revenue, and supplemental revenue. 
  8.2      <b>EFFECTIVE DATE:</b>  This section is effective for revenue for 
  8.3   fiscal year 2001. 
  8.4      Sec. 11.  Minnesota Statutes 1999 Supplement, section 
  8.5   126C.10, subdivision 2, is amended to read: 
  8.6      Subd. 2.  [BASIC REVENUE.] The basic revenue for each 
  8.7   district equals the formula allowance times the resident 
  8.8   adjusted marginal cost pupil units for the school year.  The 
  8.9   formula allowance for fiscal year 1998 is $3,581.  The formula 
  8.10  allowance for fiscal year 1999 is $3,530.  The formula allowance 
  8.11  for fiscal year 2000 is $3,740.  The formula allowance for 
  8.12  fiscal year 2001 and subsequent fiscal years is $3,875 $3,925. 
  8.13     <b>EFFECTIVE DATE:</b>  This section is effective the day 
  8.14  following final enactment. 
  8.15     Sec. 12.  Minnesota Statutes 1999 Supplement, section 
  8.16  126C.10, subdivision 14, is amended to read: 
  8.17     Subd. 14.  [USES OF TOTAL OPERATING CAPITAL REVENUE.] Total 
  8.18  operating capital revenue may be used only for the following 
  8.19  purposes: 
  8.20     (1) to acquire land for school purposes; 
  8.21     (2) to acquire or construct buildings for school purposes; 
  8.22     (3) to rent or lease buildings, including the costs of 
  8.23  building repair or improvement that are part of a lease 
  8.24  agreement; 
  8.25     (4) to improve and repair school sites and buildings, and 
  8.26  equip or reequip school buildings with permanent attached 
  8.27  fixtures, including library media centers; 
  8.28     (5) for a surplus school building that is used 
  8.29  substantially for a public nonschool purpose; 
  8.30     (6) to eliminate barriers or increase access to school 
  8.31  buildings by individuals with a disability; 
  8.32     (7) to bring school buildings into compliance with the 
  8.33  Uniform Fire Code adopted according to chapter 299F; 
  8.34     (8) to remove asbestos from school buildings, encapsulate 
  8.35  asbestos, or make asbestos-related repairs; 
  8.36     (9) to clean up and dispose of polychlorinated biphenyls 
  9.1   found in school buildings; 
  9.2      (10) to clean up, remove, dispose of, and make repairs 
  9.3   related to storing heating fuel or transportation fuels such as 
  9.4   alcohol, gasoline, fuel oil, and special fuel, as defined in 
  9.5   section 296A.01; 
  9.6      (11) for energy audits for school buildings and to modify 
  9.7   buildings if the audit indicates the cost of the modification 
  9.8   can be recovered within ten years; 
  9.9      (12) to improve buildings that are leased according to 
  9.10  section 123B.51, subdivision 4; 
  9.11     (13) to pay special assessments levied against school 
  9.12  property but not to pay assessments for service charges; 
  9.13     (14) to pay principal and interest on state loans for 
  9.14  energy conservation according to section 216C.37 or loans made 
  9.15  under the Northeast Minnesota Economic Protection Trust Fund Act 
  9.16  according to sections 298.292 to 298.298; 
  9.17     (15) to purchase or lease interactive telecommunications 
  9.18  equipment; 
  9.19     (16) by board resolution, to transfer money into the debt 
  9.20  redemption fund to:  (i) pay the amounts needed to meet, when 
  9.21  due, principal and interest payments on certain obligations 
  9.22  issued according to chapter 475; or (ii) pay principal and 
  9.23  interest on debt service loans or capital loans according to 
  9.24  section 126C.70; 
  9.25     (17) to pay operating capital-related assessments of any 
  9.26  entity formed under a cooperative agreement between two or more 
  9.27  districts; 
  9.28     (18) to purchase or lease computers and related materials, 
  9.29  copying machines, telecommunications equipment, and other 
  9.30  noninstructional equipment; 
  9.31     (19) to purchase or lease assistive technology or equipment 
  9.32  for instructional programs; 
  9.33     (20) to purchase textbooks; 
  9.34     (21) to purchase new and replacement library books media 
  9.35  resources or technology; 
  9.36     (22) to purchase vehicles; 
 10.1      (23) to purchase or lease telecommunications equipment, 
 10.2   computers, and related equipment for integrated information 
 10.3   management systems for: 
 10.4      (i) managing and reporting learner outcome information for 
 10.5   all students under a results-oriented graduation rule; 
 10.6      (ii) managing student assessment, services, and achievement 
 10.7   information required for students with individual education 
 10.8   plans; and 
 10.9      (iii) other classroom information management needs; and 
 10.10     (24) to pay personnel costs directly related to the 
 10.11  acquisition, operation, and maintenance of telecommunications 
 10.12  systems, computers, related equipment, and network and 
 10.13  applications software. 
 10.14     Sec. 13.  Minnesota Statutes 1999 Supplement, section 
 10.15  126C.10, subdivision 23, is amended to read: 
 10.16     Subd. 23.  [REFERENDUM OFFSET ADJUSTMENT.] A district that 
 10.17  qualifies for the referendum allowance reduction under section 
 10.18  126C.17, subdivision 12, and whose referendum allowance under 
 10.19  section 126C.17, subdivision 1, as adjusted under section 
 10.20  126C.17, subdivisions 2 and 12, does not exceed the referendum 
 10.21  allowance limit under section 126C.17, subdivision 2, clause 
 10.22  (2), shall receive a referendum offset adjustment.  In fiscal 
 10.23  year 2000 and thereafter, the referendum offset adjustment is 
 10.24  equal to $25 per resident adjusted marginal cost pupil unit. 
 10.25     <b>EFFECTIVE DATE:</b>  This section is effective the day 
 10.26  following final enactment. 
 10.27     Sec. 14.  Minnesota Statutes 1999 Supplement, section 
 10.28  126C.10, subdivision 24, is amended to read: 
 10.29     Subd. 24.  [EQUITY REVENUE.] (a) A school district 
 10.30  qualifies for equity revenue if the school district's adjusted 
 10.31  marginal cost pupil unit amount of basic revenue, supplemental 
 10.32  revenue, transition revenue, and referendum revenue is less than 
 10.33  the 90th percentile of school districts in its equity region for 
 10.34  those revenue categories and the school district's 
 10.35  administrative offices are not located in a city of the first 
 10.36  class on July 1, 1999. 
 11.1      (b) Equity revenue for a qualifying district that receives 
 11.2   referendum revenue under section 126C.17, subdivision 4, equals 
 11.3   the product of (1) the district's adjusted marginal cost pupil 
 11.4   units for that year; times (2) the sum of (i) $10, plus (ii) 
 11.5   $30, times the school district's equity index computed under 
 11.6   section 126C.10, subdivision 6 27. 
 11.7      (c) Equity revenue for a qualifying district that does not 
 11.8   receive referendum revenue under section 126C.17, subdivision 4, 
 11.9   equals the product of the district's adjusted marginal cost 
 11.10  pupil units for that year times $10. 
 11.11     <b>EFFECTIVE DATE:</b>  This section is effective for revenue for 
 11.12  fiscal year 2001. 
 11.13     Sec. 15.  Minnesota Statutes 1999 Supplement, section 
 11.14  126C.10, subdivision 25, is amended to read: 
 11.15     Subd. 25.  [REGIONAL EQUITY GAP.] The regional equity gap 
 11.16  equals the difference between the fifth and the 90th percentile 
 11.17  of adjusted general revenue per adjusted marginal cost pupil 
 11.18  unit. 
 11.19     <b>EFFECTIVE DATE:</b>  This section is effective the day 
 11.20  following final enactment. 
 11.21     Sec. 16.  Minnesota Statutes 1999 Supplement, section 
 11.22  126C.10, subdivision 26, is amended to read: 
 11.23     Subd. 26.  [DISTRICT EQUITY GAP.] A district's equity gap 
 11.24  equals the greater of zero or the difference between the 
 11.25  district's adjusted general revenue and the regional 90th 
 11.26  percentile of adjusted general revenue per adjusted marginal 
 11.27  cost pupil unit. 
 11.28     <b>EFFECTIVE DATE:</b>  This section is effective the day 
 11.29  following final enactment. 
 11.30     Sec. 17.  Minnesota Statutes 1998, section 126C.10, is 
 11.31  amended by adding a subdivision to read: 
 11.32     Subd. 29.  [SMALL SCHOOL ENHANCED EQUITY REVENUE.] (a) A 
 11.33  district qualifies for small school enhanced equity revenue if:  
 11.34  (1) the sum of its transition, supplemental, and referendum 
 11.35  revenue is less than $800 per adjusted marginal cost pupil unit; 
 11.36  (2) its total adjusted marginal cost pupil units for that year 
 12.1   are less than 3,000; and (3) its adjusted marginal cost pupil 
 12.2   units are fewer in the current year than in the previous year. 
 12.3      (b) A district's small school enhanced equity revenue 
 12.4   equals:  (1) $70; times (2) the district's adjusted marginal 
 12.5   cost pupil units for that year; times (3) the lesser of one, or 
 12.6   the ratio of the percent change in the district's adjusted 
 12.7   marginal cost pupil units from the previous year to the current 
 12.8   year to four percent. 
 12.9      <b>EFFECTIVE DATE:</b>  This section is effective for revenue for 
 12.10  fiscal year 2001. 
 12.11     Sec. 18.  Minnesota Statutes 1999 Supplement, section 
 12.12  126C.12, subdivision 1, is amended to read: 
 12.13     Subdivision 1.  [REVENUE.] Of a district's general 
 12.14  education revenue for fiscal year 2000 and thereafter each 
 12.15  school district shall reserve an amount equal to the formula 
 12.16  allowance multiplied by the following calculation: 
 12.17     (1) the sum of adjusted marginal cost pupil units pupils in 
 12.18  average daily membership, according to section 126C.05, 
 12.19  subdivision 5, in kindergarten times .057; plus 
 12.20     (2) the sum of adjusted marginal cost pupil units pupils in 
 12.21  average daily membership, according to section 126C.05, 
 12.22  subdivision 5, in grades 1 to 3 times .115; plus 
 12.23     (3) the sum of adjusted marginal cost pupil units pupils in 
 12.24  average daily membership, according to section 126C.05, 
 12.25  subdivision 5, in grades 4 to 6 times .06. 
 12.26     <b>EFFECTIVE DATE:</b>  This section is effective the day 
 12.27  following final enactment. 
 12.28     Sec. 19.  Minnesota Statutes 1999 Supplement, section 
 12.29  126C.17, subdivision 9, is amended to read: 
 12.30     Subd. 9.  [REFERENDUM REVENUE.] (a) The revenue authorized 
 12.31  by section 126C.10, subdivision 1, may be increased in the 
 12.32  amount approved by the voters of the district at a referendum 
 12.33  called for the purpose.  The referendum may be called by the 
 12.34  board or shall be called by the board upon written petition of 
 12.35  qualified voters of the district.  The referendum must be 
 12.36  conducted one or two calendar years before the increased levy 
 13.1   authority, if approved, first becomes payable.  Only one 
 13.2   election to approve an increase may be held in a calendar year.  
 13.3   Unless the referendum is conducted by mail under paragraph (g), 
 13.4   the referendum must be held on the first Tuesday after the first 
 13.5   Monday in November.  The ballot must state the maximum amount of 
 13.6   the increased revenue per resident marginal cost pupil unit, the 
 13.7   estimated referendum tax rate as a percentage of referendum 
 13.8   market value in the first year it is to be levied, and that the 
 13.9   revenue must be used to finance school operations.  The ballot 
 13.10  may state a schedule, determined by the board, of increased 
 13.11  revenue per resident marginal cost pupil units unit that differs 
 13.12  from year to year over the number of years for which the 
 13.13  increased revenue is authorized.  If the ballot contains a 
 13.14  schedule showing different amounts, it must also indicate the 
 13.15  estimated referendum tax rate as a percent of referendum market 
 13.16  value for the amount specified for the first year and for the 
 13.17  maximum amount specified in the schedule.  The ballot may state 
 13.18  that existing referendum levy authority is expiring.  In this 
 13.19  case, the ballot may also compare the proposed levy authority to 
 13.20  the existing expiring levy authority, and express the proposed 
 13.21  increase as the amount, if any, over the expiring referendum 
 13.22  levy authority.  The ballot must designate the specific number 
 13.23  of years, not to exceed ten, for which the referendum 
 13.24  authorization applies.  The notice required under section 275.60 
 13.25  may be modified to read, in cases of renewing existing levies: 
 13.26     "BY VOTING "YES" ON THIS BALLOT QUESTION, YOU MAY BE VOTING 
 13.27     FOR A PROPERTY TAX INCREASE." 
 13.28     The ballot may contain a textual portion with the 
 13.29  information required in this subdivision and a question stating 
 13.30  substantially the following:  
 13.31     "Shall the increase in the revenue proposed by (petition 
 13.32  to) the board of ........., School District No. .., be approved?"
 13.33     If approved, an amount equal to the approved revenue per 
 13.34  resident marginal cost pupil unit times the resident marginal 
 13.35  cost pupil units for the school year beginning in the year after 
 13.36  the levy is certified shall be authorized for certification for 
 14.1   the number of years approved, if applicable, or until revoked or 
 14.2   reduced by the voters of the district at a subsequent referendum.
 14.3      (b) The board must prepare and deliver by first class mail 
 14.4   at least 15 days but no more than 30 days before the day of the 
 14.5   referendum to each taxpayer a notice of the referendum and the 
 14.6   proposed revenue increase.  The board need not mail more than 
 14.7   one notice to any taxpayer.  For the purpose of giving mailed 
 14.8   notice under this subdivision, owners must be those shown to be 
 14.9   owners on the records of the county auditor or, in any county 
 14.10  where tax statements are mailed by the county treasurer, on the 
 14.11  records of the county treasurer.  Every property owner whose 
 14.12  name does not appear on the records of the county auditor or the 
 14.13  county treasurer is deemed to have waived this mailed notice 
 14.14  unless the owner has requested in writing that the county 
 14.15  auditor or county treasurer, as the case may be, include the 
 14.16  name on the records for this purpose.  The notice must project 
 14.17  the anticipated amount of tax increase in annual dollars and 
 14.18  annual percentage for typical residential homesteads, 
 14.19  agricultural homesteads, apartments, and commercial-industrial 
 14.20  property within the school district. 
 14.21     The notice for a referendum may state that an existing 
 14.22  referendum levy is expiring and project the anticipated amount 
 14.23  of increase over the existing referendum levy in the first year, 
 14.24  if any, in annual dollars and annual percentage for typical 
 14.25  residential homesteads, agricultural homesteads, apartments, and 
 14.26  commercial-industrial property within the district. 
 14.27     The notice must include the following statement:  "Passage 
 14.28  of this referendum will result in an increase in your property 
 14.29  taxes."  However, in cases of renewing existing levies, the 
 14.30  notice may include the following statement:  "Passage of this 
 14.31  referendum may result in an increase in your property taxes." 
 14.32     (c) A referendum on the question of revoking or reducing 
 14.33  the increased revenue amount authorized pursuant to paragraph 
 14.34  (a) may be called by the board and shall be called by the board 
 14.35  upon the written petition of qualified voters of the district.  
 14.36  A referendum to revoke or reduce the levy amount must be based 
 15.1   upon the dollar amount, local tax rate, or amount per resident 
 15.2   marginal cost pupil unit, that was stated to be the basis for 
 15.3   the initial authorization.  Revenue approved by the voters of 
 15.4   the district pursuant to paragraph (a) must be received at least 
 15.5   once before it is subject to a referendum on its revocation or 
 15.6   reduction for subsequent years.  Only one revocation or 
 15.7   reduction referendum may be held to revoke or reduce referendum 
 15.8   revenue for any specific year and for years thereafter. 
 15.9      (d) A petition authorized by paragraph (a) or (c) is 
 15.10  effective if signed by a number of qualified voters in excess of 
 15.11  15 percent of the registered voters of the district on the day 
 15.12  the petition is filed with the board.  A referendum invoked by 
 15.13  petition must be held on the date specified in paragraph (a). 
 15.14     (e) The approval of 50 percent plus one of those voting on 
 15.15  the question is required to pass a referendum authorized by this 
 15.16  subdivision. 
 15.17     (f) At least 15 days before the day of the referendum, the 
 15.18  district must submit a copy of the notice required under 
 15.19  paragraph (b) to the commissioner and to the county auditor of 
 15.20  each county in which the district is located.  Within 15 days 
 15.21  after the results of the referendum have been certified by the 
 15.22  board, or in the case of a recount, the certification of the 
 15.23  results of the recount by the canvassing board, the district 
 15.24  must notify the commissioner of the results of the referendum. 
 15.25     (g) Except for a referendum held under subdivision 11, any 
 15.26  referendum under this section held on a day other than the first 
 15.27  Tuesday after the first Monday in November must be conducted by 
 15.28  mail in accordance with section 204B.46.  Notwithstanding 
 15.29  paragraph (b) to the contrary, in the case of a referendum 
 15.30  conducted by mail under this paragraph, the notice required by 
 15.31  paragraph (b) must be prepared and delivered by first class mail 
 15.32  at least 20 days before the referendum. 
 15.33     <b>EFFECTIVE DATE:</b>  This section is effective the day 
 15.34  following final enactment. 
 15.35     Sec. 20.  Minnesota Statutes 1999 Supplement, section 
 15.36  126C.44, is amended to read: 
 16.1      126C.44 [CRIME-RELATED COSTS LEVY.] 
 16.2      Each district may make a levy on all taxable property 
 16.3   located within the district for the purposes specified in this 
 16.4   subdivision section.  The maximum amount which may be levied for 
 16.5   all costs under this subdivision section shall be equal to $1.50 
 16.6   multiplied by the population of the school district.  For 
 16.7   purposes of this subdivision section, "population" of the school 
 16.8   district means the same as contained in section 275.14.  The 
 16.9   proceeds of the levy must be used for directly funding the 
 16.10  following purposes or for reimbursing the cities and counties 
 16.11  who contract with the district for the following purposes:  (1) 
 16.12  to pay the costs incurred for the salaries, benefits, and 
 16.13  transportation costs of peace officers and sheriffs for liaison 
 16.14  services in the district's middle and secondary schools; (2) to 
 16.15  pay the costs for a drug abuse prevention program as defined in 
 16.16  Minnesota Statutes 1991 Supplement, section 609.101, subdivision 
 16.17  3, paragraph (f), in the elementary schools; (3) to pay the 
 16.18  costs for a gang resistance education training curriculum in the 
 16.19  middle schools; or (4) to pay the costs for security in the 
 16.20  districts' schools and on school property; or (5) to pay the 
 16.21  costs for other crime prevention and drug abuse and violence 
 16.22  prevention measures taken by the school district.  The district 
 16.23  must initially attempt to contract for services to be provided 
 16.24  by peace officers or sheriffs with the police department of each 
 16.25  city or the sheriff's department of the county within the 
 16.26  district containing the school receiving the services.  If a 
 16.27  local police department or a county sheriff's department does 
 16.28  not wish to provide the necessary services, the district may 
 16.29  contract for these services with any other police or sheriff's 
 16.30  department located entirely or partially within the school 
 16.31  district's boundaries.  The levy authorized under 
 16.32  this subdivision section is not included in determining the 
 16.33  school district's levy limitations. 
 16.34     <b>EFFECTIVE DATE:</b>  This section is effective for taxes 
 16.35  payable in 2001. 
 16.36     Sec. 21.  Minnesota Statutes 1999 Supplement, section 
 17.1   127A.45, subdivision 12a, is amended to read: 
 17.2      Subd. 12a.  [FORWARD SHIFTED AID PAYMENTS.] (a) Nineteen 
 17.3   percent of the state aid in fiscal year 1999, and 31 percent of 
 17.4   the state aid in fiscal years 2000 and later received under 
 17.5   section 124D.86 must be paid by the state to the recipient 
 17.6   school district on July 15 of that year.  The recipient school 
 17.7   district must recognize this aid in the same fiscal year as the 
 17.8   levy is recognized. 
 17.9      (b) One hundred percent of the state aid in fiscal years 
 17.10  2003 and later received under section 124D.87 must be paid by 
 17.11  the state to the recipient school district on August 30 of that 
 17.12  year.  The recipient school district must recognize this aid in 
 17.13  the previous fiscal year. 
 17.14     Sec. 22.  Minnesota Statutes 1998, section 127A.48, 
 17.15  subdivision 1, is amended to read: 
 17.16     Subdivision 1.  [COMPUTATION.] The department of revenue 
 17.17  must annually conduct an assessment/sales ratio study of the 
 17.18  taxable property in each school district in accordance with the 
 17.19  procedures in subdivisions 2 and 3.  Based upon the results of 
 17.20  this these assessment/sales ratio study studies for the three 
 17.21  most recent years, the department of revenue must determine an 
 17.22  aggregate equalized net tax capacity for the various classes of 
 17.23  taxable property in each district, which tax capacity shall be 
 17.24  designated as the adjusted net tax capacity.  The adjusted net 
 17.25  tax capacities shall be determined using the net tax capacity 
 17.26  percentages in effect for the assessment year following the 
 17.27  assessment year of the study.  The department of revenue must 
 17.28  make whatever estimates are necessary to account for changes in 
 17.29  the classification system.  The department of revenue may incur 
 17.30  the expense necessary to make the determinations.  The 
 17.31  commissioner of revenue may reimburse any county or governmental 
 17.32  official for requested services performed in ascertaining the 
 17.33  adjusted net tax capacity.  On or before March 15 annually, the 
 17.34  department of revenue shall file with the chair of the tax 
 17.35  committee of the house of representatives and the chair of the 
 17.36  committee on taxes and tax laws of the senate a report of 
 18.1   adjusted net tax capacities.  On or before June 15 annually, the 
 18.2   department of revenue shall file its final report on the 
 18.3   adjusted net tax capacities established by the previous year's 
 18.4   assessments and the current year's net tax capacity percentages 
 18.5   with the commissioner of children, families, and learning and 
 18.6   each county auditor for those districts for which the auditor 
 18.7   has the responsibility for determination of local tax rates.  A 
 18.8   copy of the report so filed shall be mailed to the clerk of each 
 18.9   district involved and to the county assessor or supervisor of 
 18.10  assessments of the county or counties in which each district is 
 18.11  located. 
 18.12     <b>EFFECTIVE DATE:</b>  This section is effective for taxes 
 18.13  payable in 2001. 
 18.14     Sec. 23.  Minnesota Statutes 1999 Supplement, section 
 18.15  127A.51, is amended to read: 
 18.16     127A.51 [STATEWIDE AVERAGE REVENUE.] 
 18.17     By October 1 of each year the commissioner must estimate 
 18.18  the statewide average adjusted general revenue per adjusted 
 18.19  marginal cost pupil unit and the disparity in adjusted general 
 18.20  revenue among pupils and districts by computing the ratio of the 
 18.21  ninety-fifth percentile to the fifth percentile of adjusted 
 18.22  general revenue.  The commissioner must provide that information 
 18.23  to all districts. 
 18.24     If the disparity in adjusted general revenue as measured by 
 18.25  the ratio of the ninety-fifth percentile to the fifth percentile 
 18.26  increases in any year, the commissioner shall recommend to the 
 18.27  legislature options for change in the general education formula 
 18.28  that will limit the disparity in adjusted general revenue to no 
 18.29  more than the disparity for the previous school year.  The 
 18.30  commissioner must submit the recommended options to the 
 18.31  education committees of the legislature by January 15. 
 18.32     For purposes of this section and section 126C.10, adjusted 
 18.33  general revenue means the sum of basic revenue under section 
 18.34  126C.10, subdivision 2; supplemental revenue under section 
 18.35  126C.10, subdivisions 9 and 12; transition revenue under section 
 18.36  126C.10, subdivision 20; and referendum revenue under section 
 19.1   126C.17. 
 19.2      <b>EFFECTIVE DATE:</b>  This section is effective the day 
 19.3   following final enactment. 
 19.4      Sec. 24.  Laws 1999, chapter 241, article 1, section 66, is 
 19.5   amended to read: 
 19.6      Sec. 66.  [EQUITY REVENUE ADJUSTMENT.] 
 19.7      For fiscal years year 2000 and 2001, a school district that 
 19.8   does not have an operating referendum is eligible for additional 
 19.9   equity revenue under section 30 equal to $12 times the 
 19.10  district's adjusted marginal cost pupil units for that year. 
 19.11     <b>EFFECTIVE DATE:</b>  This section is effective the day 
 19.12  following final enactment. 
 19.13     Sec. 25.  Laws 1999, chapter 241, article 1, section 68, 
 19.14  subdivision 4, is amended to read: 
 19.15     Subd. 4.  [TRANSPORTATION AID FOR ENROLLMENT OPTIONS.] For 
 19.16  transportation of pupils attending post-secondary institutions 
 19.17  according to Minnesota Statutes, section 124D.09, or for 
 19.18  transportation of pupils attending nonresident districts 
 19.19  according to Minnesota Statutes, section 124D.03: 
 19.20       $102,000 $70,000      .....     2000
 19.21       $102,000 $70,000      .....     2001
 19.22     Any balance in the first year does not cancel but is 
 19.23  available in the second year. 
 19.24     <b>EFFECTIVE DATE:</b>  This section is effective the day 
 19.25  following final enactment. 
 19.26     Sec. 26.  Laws 1999, chapter 241, article 1, section 68, 
 19.27  subdivision 5, is amended to read: 
 19.28     Subd. 5.  [DISTRICT COOPERATION REVENUE.] For district 
 19.29  cooperation revenue aid: 
 19.30       $5,940,000 $5,881,000    .....     2000
 19.31       $  563,000 $  556,000    .....     2001
 19.32     The 2000 appropriation includes $869,000 for 1999 and 
 19.33  $5,071,000 $5,012,000 for 2000. 
 19.34     The 2001 appropriation includes $563,000 $556,000 for 2000 
 19.35  and $0 for 2001. 
 19.36     <b>EFFECTIVE DATE:</b>  This section is effective the day 
 20.1   following final enactment. 
 20.2      Sec. 27.  Laws 1999, chapter 241, article 1, section 70, is 
 20.3   amended to read: 
 20.4      Sec. 70.  [EFFECTIVE DATES.] 
 20.5      Sections 13, 14, 26, 30, 37, and 39 are effective for 
 20.6   revenue for fiscal year 2000 and later.  Section 41 is effective 
 20.7   for revenue for fiscal year 2001 and later.  Sections 46, 47, 
 20.8   and 55 to 60 are effective the day following final enactment.  
 20.9   Section 61 is effective for taxes payable in 2000 and later. 
 20.10     <b>EFFECTIVE DATE:</b>  This section is effective the day 
 20.11  following final enactment. 
 20.12     Sec. 28.  [APPROPRIATION.] 
 20.13     Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
 20.14  LEARNING.] The following sums are appropriated from the general 
 20.15  fund to the department of children, families, and learning in 
 20.16  the fiscal years indicated. 
 20.17     Subd. 2.  [GENERAL EDUCATION AID.] 
 20.18       $ 1,225,000     .....     2000 
 20.19       $50,903,000     .....     2001
 20.20     This aid is in addition to any other aid appropriated for 
 20.21  this purpose. 
 20.22     Sec. 29.  [TRANSPORTATION STUDY.] 
 20.23     The commissioner of children, families, and learning must 
 20.24  form a pupil transportation working group to analyze the effects 
 20.25  of increasing labor and fuel costs on school transportation 
 20.26  needs.  The commissioner must include recommendations for 
 20.27  adequate pupil transportation funding in the redesigned school 
 20.28  finance formulas presented to the 2001 legislature. 
 20.29     Sec. 30.  [REPEALER.] 
 20.30     Subdivision 1.  [STATUTES.] Minnesota Statutes 1998, 
 20.31  sections 126C.30; 126C.31; 126C.32; 126C.33; 126C.34; 126C.35; 
 20.32  and 126C.36, are repealed. 
 20.33     Subd. 2.  [LAWS.] Laws 1999, chapter 241, article 1, 
 20.34  section 64, is repealed. 
 20.35     <b>EFFECTIVE DATE:</b>  This section is effective the day 
 20.36  following final enactment. 
 21.1                              ARTICLE 2 
 21.2                           SPECIAL PROGRAMS 
 21.3      Section 1.  Minnesota Statutes 1999 Supplement, section 
 21.4   124D.84, subdivision 1, is amended to read: 
 21.5      Subdivision 1.  [AWARDS.] The commissioner, with the advice 
 21.6   and counsel of the Minnesota Indian scholarship committee, may 
 21.7   award scholarships to any Minnesota resident student who is of 
 21.8   one-fourth or more Indian ancestry, who has applied for other 
 21.9   existing state and federal scholarship and grant programs, and 
 21.10  who, in the opinion of the commissioner, has the capabilities to 
 21.11  benefit from further education.  Scholarships must be 
 21.12  for advanced or specialized education accredited degree programs 
 21.13  in accredited colleges or universities or for courses in 
 21.14  accredited or approved colleges or in business, technical, or 
 21.15  vocational schools.  Scholarships shall be used to defray the 
 21.16  total cost of education including tuition, incidental fees, 
 21.17  books, supplies, transportation, other related school costs and 
 21.18  the cost of board and room and shall be paid directly to the 
 21.19  college or school concerned.  The total cost of education 
 21.20  includes all tuition and fees for each student enrolling in a 
 21.21  public institution and the portion of tuition and fees for each 
 21.22  student enrolling in a private institution that does not exceed 
 21.23  the tuition and fees at a comparable public institution.  Each 
 21.24  student shall be awarded a scholarship based on the total cost 
 21.25  of the student's education and a standardized need analysis.  
 21.26  The amount and type of each scholarship shall be determined 
 21.27  through the advice and counsel of the Minnesota Indian 
 21.28  scholarship committee.  
 21.29     When an Indian student satisfactorily completes the work 
 21.30  required by a certain college or school in a school year the 
 21.31  student is eligible for additional scholarships, if additional 
 21.32  training is necessary to reach the student's educational and 
 21.33  vocational objective.  Scholarships may not be given to any 
 21.34  Indian student for more than five years of study without special 
 21.35  approval of the Minnesota Indian scholarship committee.  
 21.36     Sec. 2.  Minnesota Statutes 1999 Supplement, section 
 22.1   125A.76, subdivision 2, is amended to read: 
 22.2      Subd. 2.  [SPECIAL EDUCATION BASE REVENUE.] (a) The special 
 22.3   education base revenue equals the sum of the following amounts 
 22.4   computed using base year data: 
 22.5      (1) 68 percent of the salary of each essential person 
 22.6   employed in the district's program for children with a 
 22.7   disability during the fiscal year, not including the share of 
 22.8   salaries for personnel providing health-related services counted 
 22.9   in clause (8), whether the person is employed by one or more 
 22.10  districts or a Minnesota correctional facility operating on a 
 22.11  fee-for-service basis; 
 22.12     (2) for the Minnesota state academy for the deaf or the 
 22.13  Minnesota state academy for the blind, 68 percent of the salary 
 22.14  of each instructional aide assigned to a child attending the 
 22.15  academy, if that aide is required by the child's individual 
 22.16  education plan; 
 22.17     (3) for special instruction and services provided to any 
 22.18  pupil by contracting with public, private, or voluntary agencies 
 22.19  other than school districts, in place of special instruction and 
 22.20  services provided by the district, 52 percent of the difference 
 22.21  between the amount of the contract and the basic revenue of the 
 22.22  district for that pupil for the fraction of the school day the 
 22.23  pupil receives services under the contract; 
 22.24     (4) for special instruction and services provided to any 
 22.25  pupil by contracting for services with public, private, or 
 22.26  voluntary agencies other than school districts, that are 
 22.27  supplementary to a full educational program provided by the 
 22.28  school district, 52 percent of the amount of the contract for 
 22.29  that pupil; 
 22.30     (5) for supplies and equipment purchased or rented for use 
 22.31  in the instruction of children with a disability, not including 
 22.32  the portion of the expenses for supplies and equipment used to 
 22.33  provide health-related services counted in clause (8), an amount 
 22.34  equal to 47 percent of the sum actually expended by the 
 22.35  district, or a Minnesota correctional facility operating on a 
 22.36  fee-for-service basis, but not to exceed an average of $47 in 
 23.1   any one school year for each child with a disability receiving 
 23.2   instruction; 
 23.3      (6) for fiscal years 1997 and later, special education base 
 23.4   revenue shall include amounts under clauses (1) to (5) for 
 23.5   special education summer programs provided during the base year 
 23.6   for that fiscal year; and 
 23.7      (7) for fiscal years 1999 and later, the cost of providing 
 23.8   transportation services for children with disabilities under 
 23.9   section 123B.92, subdivision 1, paragraph (b), clause (4); and 
 23.10     (8) for fiscal years 2001 and later, the cost of salaries, 
 23.11  supplies and equipment, and other related costs actually 
 23.12  expended by the district for the nonfederal share of medical 
 23.13  assistance services according to section 256B.0625, subdivision 
 23.14  26. 
 23.15     The department shall establish procedures through the 
 23.16  uniform financial accounting and reporting system to identify 
 23.17  and track all revenues generated from third-party billings as 
 23.18  special education revenue at the school district level; include 
 23.19  revenue generated from third-party billings as special education 
 23.20  revenue in the annual cross-subsidy report; and exclude 
 23.21  third-party revenue from calculation of excess cost aid to the 
 23.22  districts. 
 23.23     (b) If requested by a school district operating a special 
 23.24  education program during the base year for less than the full 
 23.25  fiscal year, or a school district in which is located a 
 23.26  Minnesota correctional facility operating on a fee-for-service 
 23.27  basis for less than the full fiscal year, the commissioner may 
 23.28  adjust the base revenue to reflect the expenditures that would 
 23.29  have occurred during the base year had the program been operated 
 23.30  for the full fiscal year. 
 23.31     (c) Notwithstanding paragraphs (a) and (b), the portion of 
 23.32  a school district's base revenue attributable to a Minnesota 
 23.33  correctional facility operating on a fee-for-service basis 
 23.34  during the facility's first year of operating on a 
 23.35  fee-for-service basis shall be computed using current year data. 
 23.36     Sec. 3.  Laws 1999, chapter 241, article 2, section 60, 
 24.1   subdivision 7, is amended to read: 
 24.2      Subd. 7.  [TRIBAL CONTRACT SCHOOLS.] For tribal contract 
 24.3   school aid according to Minnesota Statutes, section 124D.83: 
 24.4        $2,706,000 $1,671,000  .....     2000
 24.5        $2,790,000 $1,882,000  .....     2001
 24.6      The 2000 appropriation includes $283,000 for 1999 and 
 24.7   $2,423,000 $1,388,000 for 2000. 
 24.8      The 2001 appropriation includes $269,000 $154,000 for 2000 
 24.9   and $2,521,000 $1,728,000 for 2001. 
 24.10     Sec. 4.  Laws 1999, chapter 241, article 2, section 60, 
 24.11  subdivision 9, is amended to read: 
 24.12     Subd. 9.  [MAGNET SCHOOL GRANTS.] For magnet school and 
 24.13  program grants under Laws 1994, chapter 647, article 8, section 
 24.14  38: 
 24.15       $1,750,000     .....     2000 
 24.16       $1,750,000     .....     2001 
 24.17     These amounts may be used for magnet school programs 
 24.18  according to Minnesota Statutes, section 124D.88.  The budget 
 24.19  base for this program for fiscal year 2003 and each year 
 24.20  thereafter is $1,050,000. 
 24.21     Sec. 5.  Laws 1999, chapter 241, article 2, section 60, 
 24.22  subdivision 12, is amended to read: 
 24.23     Subd. 12.  [AID FOR CHILDREN WITH A DISABILITY.] For aid 
 24.24  according to Minnesota Statutes, section 125A.75, subdivision 3, 
 24.25  for children with a disability placed in residential facilities 
 24.26  within the district boundaries for whom no district of residence 
 24.27  can be determined: 
 24.28       $  443,000 $  433,000  .....     2000 
 24.29       $1,064,000 $4,263,000  .....     2001 
 24.30     If the appropriation for either year is insufficient, the 
 24.31  appropriation for the other year is available.  Any balance in 
 24.32  the first year does not cancel but is available in the second 
 24.33  year. 
 24.34     Sec. 6.  Laws 1999, chapter 241, article 2, section 60, 
 24.35  subdivision 13, is amended to read: 
 24.36     Subd. 13.  [TRAVEL FOR HOME-BASED SERVICES.] For aid for 
 25.1   teacher travel for home-based services according to Minnesota 
 25.2   Statutes, section 125A.75, subdivision 1: 
 25.3        $133,000 $125,000    .....     2000 
 25.4        $139,000 $130,000    .....     2001 
 25.5      The 2000 appropriation includes $11,000 for 1999 and 
 25.6   $122,000 $114,000 for 2000.  
 25.7      The 2001 appropriation includes $13,000 for 2000 and 
 25.8   $126,000 $117,000 for 2001.  
 25.9      Sec. 7.  Laws 1999, chapter 241, article 2, section 60, 
 25.10  subdivision 14, is amended to read: 
 25.11     Subd. 14.  [SPECIAL EDUCATION EXCESS COST AID.] For excess 
 25.12  cost aid: 
 25.13       $60,498,000 $66,032,000   .....     2000 
 25.14       $79,405,000 $89,269,000   .....     2001 
 25.15     The 2000 appropriation includes $4,693,000 for 1999 and 
 25.16  $55,805,000 $61,339,000 for 2000.  
 25.17     The 2001 appropriation includes $6,200,000 $6,815,000 for 
 25.18  2000 and $73,205,000 $82,454,000 for 2001. 
 25.19     Sec. 8.  Laws 1999, chapter 241, article 2, section 60, 
 25.20  subdivision 17, is amended to read: 
 25.21     Subd. 17.  [INTEGRATION AID.] For integration aid: 
 25.22       $37,182,000 $37,610,000  .....     2000 
 25.23       $43,787,000 $55,828,000  .....     2001 
 25.24     The 2000 appropriation includes $2,902,000 for 1999 and 
 25.25  $34,280,000 $34,708,000 for 2000. 
 25.26     The 2001 appropriation includes $3,809,000 $3,856,000 for 
 25.27  2000 and $39,978,000 $51,972,000 for 2001.  
 25.28     Sec. 9.  Laws 1999, chapter 241, article 2, section 60, 
 25.29  subdivision 19, is amended to read: 
 25.30     Subd. 19.  [INTERDISTRICT DESEGREGATION OR INTEGRATION 
 25.31  TRANSPORTATION AID.] (a) For interdistrict desegregation or 
 25.32  integration transportation aid under Minnesota Statutes, section 
 25.33  124D.87: 
 25.34       $970,000       .....     2000
 25.35       $970,000       .....     2001
 25.36     Any balance in the first year does not cancel but is 
 26.1   available in the second year.  
 26.2      (b) The budget base for this program for fiscal year 2002 
 26.3   is $500,000.  This amount may be spent for interdistrict 
 26.4   desegregation or integration transportation aid.  For fiscal 
 26.5   year 2003 and later, the budget base for this program is the 
 26.6   forecasted cost of fully reimbursing districts according to 
 26.7   Minnesota Statutes, section 124D.87.  
 26.8      Sec. 10.  [REPEALER.] 
 26.9      (a) Laws 1999, chapter 216, article 4, section 12, is 
 26.10  repealed. 
 26.11     (b) Minnesota Rules, part 3535.9920, is repealed. 
 26.12     <b>EFFECTIVE DATE:</b>  This section is effective the day 
 26.13  following final enactment. 
 26.14                             ARTICLE 3 
 26.15                     EMPLOYMENT AND TRANSITIONS 
 26.16     Section 1.  Minnesota Statutes 1998, section 124D.44, is 
 26.17  amended to read: 
 26.18     124D.44 [MATCH REQUIREMENTS.] 
 26.19     Youth works grant funds must be used for the living 
 26.20  allowance, cost of employer taxes under sections 3111 and 3301 
 26.21  of the Internal Revenue Code of 1986, workers' compensation 
 26.22  coverage, and health benefits for each program participant, and 
 26.23  administrative expenses, which must not exceed five percent of 
 26.24  total program costs.  Youthworks grant funds may also be used to 
 26.25  supplement applicant resources to fund postservice benefits for 
 26.26  program participants.  Applicant resources, from sources and in 
 26.27  a form determined by the commission and, beginning January 1, 
 26.28  1997, the council, must be used to provide for all other program 
 26.29  costs, including the portion of the applicant's obligation for 
 26.30  postservice benefits that is not covered by state or federal 
 26.31  grant funds and such costs as supplies, materials, 
 26.32  transportation, and salaries and benefits of those staff 
 26.33  directly involved in the operation, internal monitoring, and 
 26.34  evaluation of the program.  Administrative expenses must not 
 26.35  exceed five percent of total program costs.  
 26.36     <b>EFFECTIVE DATE:</b>  This section is effective the day 
 27.1   following final enactment. 
 27.2      Sec. 2.  Minnesota Statutes 1999 Supplement, section 
 27.3   124D.453, subdivision 3, is amended to read: 
 27.4      Subd. 3.  [CAREER AND TECHNICAL AID.] A district's career 
 27.5   and technical education aid for fiscal year years 2000 and 2001 
 27.6   equals the lesser of: 
 27.7      (a) $73 times the district's average daily membership in 
 27.8   grades 10 to 12; or 
 27.9      (b) 25 percent of approved expenditures for the following: 
 27.10     (1) salaries paid to essential, licensed personnel 
 27.11  providing direct instructional services to students in that 
 27.12  fiscal year for services rendered in the district's approved 
 27.13  career and technical education programs; 
 27.14     (2) contracted services provided by a public or private 
 27.15  agency other than a Minnesota school district or cooperative 
 27.16  center under subdivision 7; 
 27.17     (3) necessary travel between instructional sites by 
 27.18  licensed career and technical education personnel; 
 27.19     (4) necessary travel by licensed career and technical 
 27.20  education personnel for vocational student organization 
 27.21  activities held within the state for instructional purposes; 
 27.22     (5) curriculum development activities that are part of a 
 27.23  five-year plan for improvement based on program assessment; 
 27.24     (6) necessary travel by licensed career and technical 
 27.25  education personnel for noncollegiate credit bearing 
 27.26  professional development; and 
 27.27     (7) specialized vocational instructional supplies. 
 27.28     (c) Up to ten percent of a district's career and technical 
 27.29  aid may be spent on equipment purchases.  Districts using career 
 27.30  and technical aid for equipment purchases must report to the 
 27.31  department on the improved learning opportunities for students 
 27.32  that result from the investment in equipment.  
 27.33     Sec. 3.  Laws 1999, chapter 241, article 3, section 3, 
 27.34  subdivision 2, is amended to read: 
 27.35     Subd. 2.  [SECONDARY VOCATIONAL EDUCATION AID.] For 
 27.36  secondary vocational education aid according to Minnesota 
 28.1   Statutes, section 124D.453: 
 28.2        $11,335,000 $12,413,000    .....     2000 
 28.3        $1,130,000  $12,417,000    .....     2001 
 28.4      The 2000 appropriation includes $1,159,000 for 1999 and 
 28.5   $10,176,000 $11,254,000 for 2000.  The 2001 appropriation 
 28.6   includes $1,130,000 $1,250,000 for 2000 and $11,167,000 for 2001.
 28.7      Any balance in the first year does not cancel but is 
 28.8   available in the second year. 
 28.9      Sec. 4.  Laws 1999, chapter 241, article 3, section 3, 
 28.10  subdivision 4, is amended to read: 
 28.11     Subd. 4.  [EDUCATION AND EMPLOYMENT TRANSITIONS PROGRAM 
 28.12  GRANTS.] For education and employment transitions programming 
 28.13  under Minnesota Statutes, section 124D.46: 
 28.14       $3,225,000     .....     2000 
 28.15       $3,225,000 $1,075,000    .....     2001 
 28.16     $200,000 each year is for the development and 
 28.17  implementation of the ISEEK Internet-based education and 
 28.18  employment information system. 
 28.19     $1,000,000 each in fiscal year 2000 is for an employer 
 28.20  rebate program for qualifying employers who offer youth 
 28.21  internships to educators. 
 28.22     $500,000 each in fiscal year 2000 is for youth 
 28.23  entrepreneurship grants.  
 28.24     $750,000 each year is for youth apprenticeship grants. 
 28.25     $300,000 each in fiscal year 2000 is for grants to programs 
 28.26  in cities of the first class to expand the number of at-risk 
 28.27  students participating in school-to-work projects. 
 28.28     $350,000 each in fiscal year 2000 is for agricultural 
 28.29  school-to-work grants. 
 28.30     $125,000 each year is to conduct a high school follow-up 
 28.31  survey to include first, third, and sixth year graduates of 
 28.32  Minnesota schools. 
 28.33     Any balance in the first year does not cancel but is 
 28.34  available in the second year. 
 28.35     Sec. 5.  Laws 1999, chapter 241, article 3, section 5, is 
 28.36  amended to read: 
 29.1      Sec. 5.  [REPEALER.] 
 29.2      Minnesota Statutes 1998, section 124D.453, is repealed 
 29.3   effective for revenue for fiscal year 2001 2002. 
 29.4      <b>EFFECTIVE DATE:</b>  This section is effective the day 
 29.5   following final enactment. 
 29.6                              ARTICLE 4 
 29.7                      FACILITIES AND TECHNOLOGY 
 29.8      Section 1.  Minnesota Statutes 1998, section 123A.485, 
 29.9   subdivision 4, is amended to read: 
 29.10     Subd. 4.  [NEW DISTRICTS.] If a district consolidates with 
 29.11  another district that has received aid under section 123A.39, 
 29.12  subdivision 3, or 123A.485 for a combination or consolidation 
 29.13  taking effect within six years of the effective date of the new 
 29.14  consolidation, only the pupil units in the district or districts 
 29.15  not previously reorganized must be counted for aid purposes 
 29.16  under subdivision 2.  If two or more districts consolidate and 
 29.17  all districts received aid under subdivision 2 for a 
 29.18  consolidation taking effect within six years of the effective 
 29.19  date of the new consolidation, only one quarter of the pupil 
 29.20  units in the newly created district must be used to determine 
 29.21  aid under subdivision 2. 
 29.22     Sec. 2.  Minnesota Statutes 1998, section 123B.51, 
 29.23  subdivision 6, is amended to read: 
 29.24     Subd. 6.  [PROCEEDS OF SALE OR EXCHANGE.] (a) Proceeds of 
 29.25  the sale or exchange of school buildings or real property of the 
 29.26  district must be used as provided in this subdivision. 
 29.27     (b) In districts with outstanding bonds, the proceeds of 
 29.28  the sale or exchange shall first be deposited in the debt 
 29.29  retirement fund of the district in an amount sufficient to meet 
 29.30  when due that percentage of the principal and interest payments 
 29.31  for outstanding bonds which is ascribable to the payment of 
 29.32  expenses necessary and incidental to the construction or 
 29.33  purchase of the particular building or property which is sold.  
 29.34     (c) After satisfying the requirements of paragraph (b), a 
 29.35  district with outstanding bonds may deposit proceeds of the sale 
 29.36  or exchange in its capital expenditure fund general fund 
 30.1   reserved for operating capital account if the amount deposited 
 30.2   is used for the following:  
 30.3      (1) for expenditures for the cleanup of polychlorinated 
 30.4   biphenyls, if the method for cleanup is approved by the 
 30.5   department; 
 30.6      (2) for capital expenditures for the betterment, as defined 
 30.7   in section 475.51, subdivision 8, of district-owned school 
 30.8   buildings; or 
 30.9      (3) to replace the building or property sold.  
 30.10     (d) In a district with outstanding bonds, the amount of the 
 30.11  proceeds of the sale or exchange remaining after the application 
 30.12  of paragraphs (b) and (c), which is sufficient to meet when due 
 30.13  that percentage of the principal and interest payments for the 
 30.14  district's outstanding bonds which is not governed by paragraph 
 30.15  (b), shall be deposited in the debt retirement fund.  
 30.16     (e) Any proceeds of the sale or exchange remaining in 
 30.17  districts with outstanding bonds after the application of 
 30.18  paragraphs (b), (c), and (d), and all proceeds of the sale or 
 30.19  exchange in districts without outstanding bonds shall be 
 30.20  deposited in the capital expenditure general fund reserved for 
 30.21  operating capital account of the district. 
 30.22     (f) Notwithstanding paragraphs (c) and (d), a district with 
 30.23  outstanding bonds may deposit in its capital expenditure general 
 30.24  fund reserved for operating capital account and use for any 
 30.25  lawful operating capital expenditure without the reduction of 
 30.26  any levy limitation the same percentage of the proceeds of the 
 30.27  sale or exchange of a building or property as the percentage of 
 30.28  the initial cost of purchasing or constructing the building or 
 30.29  property which was paid using revenue from the capital 
 30.30  expenditure general fund reserved for operating capital account. 
 30.31     Sec. 3.  Minnesota Statutes 1998, section 123B.52, is 
 30.32  amended by adding a subdivision to read: 
 30.33     Subd. 6.  [DISPOSING OF SURPLUS SCHOOL COMPUTERS.] 
 30.34  Notwithstanding section 471.345, governing school district 
 30.35  contracts made upon sealed bid or otherwise complying with the 
 30.36  requirements for competitive bidding, other provisions of this 
 31.1   section governing school district contracts, or other law to the 
 31.2   contrary, a school district under this subdivision may dispose 
 31.3   of a surplus school computer and related equipment if the 
 31.4   district disposes of the surplus property by conveying the 
 31.5   property and title to: 
 31.6      (1) another school district; 
 31.7      (2) the state department of corrections; 
 31.8      (3) the board of trustees of the Minnesota state colleges 
 31.9   and universities; or 
 31.10     (4) the family of a student residing in the district whose 
 31.11  total family income meets the federal definition of poverty. 
 31.12     <b>EFFECTIVE DATE:</b>  This section is effective the day 
 31.13  following final enactment. 
 31.14     Sec. 4.  Minnesota Statutes 1999 Supplement, section 
 31.15  123B.53, subdivision 4, is amended to read: 
 31.16     Subd. 4.  [DEBT SERVICE EQUALIZATION REVENUE.] The debt 
 31.17  service equalization revenue of a district equals the eligible 
 31.18  debt service revenue minus the amount raised by a levy of 12 
 31.19  percent times the adjusted net tax capacity of the 
 31.20  district minus the district's enhanced debt service equalization 
 31.21  revenue according to subdivision 8. 
 31.22     <b>EFFECTIVE DATE:</b>  This section is effective for revenue for 
 31.23  fiscal year 2002 and later. 
 31.24     Sec. 5.  Minnesota Statutes 1999 Supplement, section 
 31.25  123B.53, subdivision 6, is amended to read: 
 31.26     Subd. 6.  [DEBT SERVICE EQUALIZATION AID.] A district's 
 31.27  debt service equalization aid is the sum of (1) the difference 
 31.28  between the debt service equalization revenue and the equalized 
 31.29  debt service levy, and (2) the enhanced debt service 
 31.30  equalization aid according to subdivision 10. 
 31.31     <b>EFFECTIVE DATE:</b>  This section is effective for revenue for 
 31.32  fiscal year 2002 and later. 
 31.33     Sec. 6.  Minnesota Statutes 1998, section 123B.53, is 
 31.34  amended by adding a subdivision to read: 
 31.35     Subd. 8.  [ENHANCED DEBT SERVICE EQUALIZATION REVENUE.] The 
 31.36  enhanced debt service equalization revenue of a district equals 
 32.1   the eligible debt service revenue minus the amount raised by a 
 32.2   levy of 20 percent times the adjusted net tax capacity of the 
 32.3   district. 
 32.4      <b>EFFECTIVE DATE:</b>  This section is effective for revenue for 
 32.5   fiscal year 2002 and later. 
 32.6      Sec. 7.  Minnesota Statutes 1998, section 123B.53, is 
 32.7   amended by adding a subdivision to read: 
 32.8      Subd. 9.  [ENHANCED EQUALIZED DEBT SERVICE LEVY.] To obtain 
 32.9   enhanced debt service equalization revenue, a district must levy 
 32.10  an amount not to exceed the district's enhanced debt service 
 32.11  equalization revenue times the lesser of one or the ratio of: 
 32.12     (1) the quotient derived by dividing the adjusted net tax 
 32.13  capacity of the district for the year before the year the levy 
 32.14  is certified by the adjusted pupil units in the district for the 
 32.15  school year ending in the year prior to the year the levy is 
 32.16  certified; to 
 32.17     (2) $8,000. 
 32.18     <b>EFFECTIVE DATE:</b>  This section is effective for revenue for 
 32.19  fiscal year 2002 and later. 
 32.20     Sec. 8.  Minnesota Statutes 1998, section 123B.53, is 
 32.21  amended by adding a subdivision to read: 
 32.22     Subd. 10.  [ENHANCED DEBT SERVICE EQUALIZATION AID.] A 
 32.23  district's enhanced debt service equalization aid is the 
 32.24  difference between the enhanced debt service equalization 
 32.25  revenue and the enhanced equalized debt service levy. 
 32.26     <b>EFFECTIVE DATE:</b>  This section is effective for revenue for 
 32.27  fiscal year 2002 and later. 
 32.28     Sec. 9.  Minnesota Statutes 1999 Supplement, section 
 32.29  123B.54, is amended to read: 
 32.30     123B.54 [DEBT SERVICE APPROPRIATION.] 
 32.31     (a) $33,165,000 $33,141,000 in fiscal year 2000, 
 32.32  $32,057,000 $29,400,000 in fiscal year 2001, and 
 32.33  $31,280,000 $37,134,000 in fiscal year 2002, and $38,940,000 in 
 32.34  fiscal year 2003 and each year thereafter is appropriated from 
 32.35  the general fund to the commissioner of children, families, and 
 32.36  learning for payment of debt service equalization aid under 
 33.1   section 123B.53.  The 2002 appropriation 
 33.2   includes $3,201,000 $2,904,000 for 2001 and 
 33.3   $29,079,000 $34,230,000 for 2002. 
 33.4      (b) The appropriations in paragraph (a) must be reduced by 
 33.5   the amount of any money specifically appropriated for the same 
 33.6   purpose in any year from any state fund. 
 33.7      Sec. 10.  Minnesota Statutes 1998, section 123B.59, is 
 33.8   amended by adding a subdivision to read: 
 33.9      Subd. 5a.  [ALTERNATIVE FACILITIES REVENUE.] A school 
 33.10  district's alternative facilities revenue equals the amount 
 33.11  approved under this section. 
 33.12     <b>EFFECTIVE DATE:</b>  This section is effective for revenue for 
 33.13  fiscal year 2002 and later.  
 33.14     Sec. 11.  Minnesota Statutes 1998, section 123B.59, 
 33.15  subdivision 6, is amended to read: 
 33.16     Subd. 6.  [ALTERNATIVE FACILITIES AID.] For fiscal year 
 33.17  2002, a district's alternative facilities aid is the amount 
 33.18  equal to the district's annual debt service costs, provided that 
 33.19  the amount does not exceed the amount certified to be levied for 
 33.20  those purposes for taxes payable in 1997, or for a district that 
 33.21  made a levy under subdivision 5, paragraph (b), the lesser of 
 33.22  the district's annual levy amount, or one-sixth of the amount of 
 33.23  levy that it certified for that purpose for taxes payable in 
 33.24  1998 equals the lesser of the district's annual alternative 
 33.25  facilities revenue for that year or 45 percent of the amount of 
 33.26  aid the district received in fiscal year 2001.  For fiscal year 
 33.27  2003 and later, a district's alternative facilities aid equals 
 33.28  the lesser of the district's annual alternative facilities 
 33.29  revenue for that year or 25 percent of the amount of aid the 
 33.30  district received in fiscal year 2001. 
 33.31     <b>EFFECTIVE DATE:</b>  This section is effective for revenue for 
 33.32  fiscal year 2002 and later.  
 33.33     Sec. 12.  Minnesota Statutes 1998, section 123B.59, is 
 33.34  amended by adding a subdivision to read: 
 33.35     Subd. 7a.  [ALTERNATIVE FACILITIES APPROPRIATION.] (a) An 
 33.36  amount not to exceed $9,000,000 in fiscal year 2002, and 
 34.1   $5,000,000 in fiscal year 2003 and each year thereafter is 
 34.2   appropriated from the general fund to the commissioner of 
 34.3   children, families, and learning for payment of alternative 
 34.4   facilities aid under this section. 
 34.5      <b>EFFECTIVE DATE:</b>  This section is effective for revenue for 
 34.6   fiscal year 2002 and later.  
 34.7      Sec. 13.  Minnesota Statutes 1998, section 123B.71, 
 34.8   subdivision 3, is amended to read: 
 34.9      Subd. 3.  [INDOOR AIR QUALITY RESOURCES; COMMISSIONER'S 
 34.10  ROLE.] As part of the consultation under subdivision 1, the 
 34.11  commissioner shall provide each school district with: 
 34.12     (1) information concerning indoor air quality; and 
 34.13     (2) procedures for monitoring of outdoor airflow and total 
 34.14  airflow of ventilation systems in new school facilities. 
 34.15     Sec. 14.  Minnesota Statutes 1998, section 123B.71, 
 34.16  subdivision 10, is amended to read: 
 34.17     Subd. 10.  [INDOOR AIR QUALITY.] A school board seeking a 
 34.18  review and comment under this section must submit information 
 34.19  demonstrating to the commissioner's satisfaction that: 
 34.20     (1) indoor air quality issues have been considered; and 
 34.21     (2) the architects and engineers designing the facility 
 34.22  will have professional liability insurance; 
 34.23     (3) the facility's heating, ventilation, and air 
 34.24  conditioning systems meet or exceed the standards established by 
 34.25  code; and 
 34.26     (4) the facility's design will provide the ability for 
 34.27  monitoring of outdoor airflow and total airflow of ventilation 
 34.28  systems in new school facilities. 
 34.29     Sec. 15.  [123B.715] [NEW SCHOOL BUILDING CONSTRUCTION 
 34.30  STANDARDS.] 
 34.31     Subdivision 1.  [APPLICABLE BUILDING PROJECTS.] This 
 34.32  section applies to school building projects for which a review 
 34.33  and comment under section 123B.71 is requested on or after July 
 34.34  1, 2002. 
 34.35     Subd. 2.  [DEFINITIONS.] "ASHRAE" means the American 
 34.36  Society of Heating, Refrigerating, and Air Conditioning 
 35.1   Engineers.  "MERV" means minimum efficiency reporting value.  
 35.2      Subd. 3.  [AIR HANDLING SYSTEMS.] Any heating, ventilation, 
 35.3   or air conditioning system that is installed subject to this 
 35.4   section must provide a filtration system with a MERV rating of 
 35.5   MERV 11 as defined in ASHRAE standard 52.2. 
 35.6      Sec. 16.  Minnesota Statutes 1998, section 126C.40, 
 35.7   subdivision 1, is amended to read: 
 35.8      Subdivision 1.  [TO LEASE BUILDING OR LAND.] (a) When a 
 35.9   district finds it economically advantageous to rent or lease a 
 35.10  building or land for any instructional purposes or for school 
 35.11  storage or furniture repair, and it determines that the 
 35.12  operating capital revenue authorized under section 126C.10, 
 35.13  subdivision 13, is insufficient for this purpose, it may apply 
 35.14  to the commissioner for permission to make an additional capital 
 35.15  expenditure levy for this purpose.  An application for 
 35.16  permission to levy under this subdivision must contain financial 
 35.17  justification for the proposed levy, the terms and conditions of 
 35.18  the proposed lease, and a description of the space to be leased 
 35.19  and its proposed use.  
 35.20     (b) The criteria for approval of applications to levy under 
 35.21  this subdivision must include:  the reasonableness of the price, 
 35.22  the appropriateness of the space to the proposed activity, the 
 35.23  feasibility of transporting pupils to the leased building or 
 35.24  land, conformity of the lease to the laws and rules of the state 
 35.25  of Minnesota, and the appropriateness of the proposed lease to 
 35.26  the space needs and the financial condition of the district.  
 35.27  The commissioner must not authorize a levy under this 
 35.28  subdivision in an amount greater than the cost to the district 
 35.29  of renting or leasing a building or land for approved purposes.  
 35.30  The proceeds of this levy must not be used for custodial or 
 35.31  other maintenance services.  A district may not levy under this 
 35.32  subdivision for the purpose of leasing or renting a 
 35.33  district-owned building or site to itself. 
 35.34     (c) For agreements finalized after July 1, 1997, a district 
 35.35  may not levy under this subdivision for the purpose of leasing:  
 35.36  (1) a newly constructed building used primarily for regular 
 36.1   kindergarten, elementary, or secondary instruction; or (2) a 
 36.2   newly constructed building addition or additions used primarily 
 36.3   for regular kindergarten, elementary, or secondary instruction 
 36.4   that contains more than 20 percent of the square footage of the 
 36.5   previously existing building. 
 36.6      (d) Notwithstanding paragraph (b), a district may levy 
 36.7   under this subdivision for the purpose of leasing or renting a 
 36.8   district-owned building or site to itself only if the amount is 
 36.9   needed by the district to make payments required by a lease 
 36.10  purchase agreement, installment purchase agreement, or other 
 36.11  deferred payments agreement authorized by law, and the levy 
 36.12  meets the requirements of paragraph (c).  A levy authorized for 
 36.13  a district by the commissioner under this paragraph may be in 
 36.14  the amount needed by the district to make payments required by a 
 36.15  lease purchase agreement, installment purchase agreement, or 
 36.16  other deferred payments agreement authorized by law, provided 
 36.17  that any agreement include a provision giving the school 
 36.18  districts the right to terminate the agreement annually without 
 36.19  penalty. 
 36.20     (e) The total levy under this subdivision for a district 
 36.21  for any year must not exceed $100 times the resident pupil units 
 36.22  for the fiscal year to which the levy is attributable. 
 36.23     (e) (f) For agreements for which a review and comment have 
 36.24  been submitted to the department of children, families, and 
 36.25  learning after April 1, 1998, the term "instructional purpose" 
 36.26  as used in this subdivision excludes expenditures on stadiums. 
 36.27     (g) For purposes of this subdivision, any reference to 
 36.28  building or land includes personal property. 
 36.29     <b>EFFECTIVE DATE:</b>  This section is effective for taxes 
 36.30  payable in 2001 and later.  
 36.31     Sec. 17.  Minnesota Statutes 1999 Supplement, section 
 36.32  126C.40, subdivision 6, is amended to read: 
 36.33     Subd. 6.  [LEASE PURCHASE; INSTALLMENT BUYS.] (a) Upon 
 36.34  application to, and approval by, the commissioner in accordance 
 36.35  with the procedures and limits in subdivision 1, paragraphs (a) 
 36.36  and (b), a district, as defined in this subdivision, may: 
 37.1      (1) purchase real or personal property under an installment 
 37.2   contract or may lease real or personal property with an option 
 37.3   to purchase under a lease purchase agreement, by which 
 37.4   installment contract or lease purchase agreement title is kept 
 37.5   by the seller or vendor or assigned to a third party as security 
 37.6   for the purchase price, including interest, if any; and 
 37.7      (2) annually levy the amounts necessary to pay the 
 37.8   district's obligations under the installment contract or lease 
 37.9   purchase agreement. 
 37.10     (b) The obligation created by the installment contract or 
 37.11  the lease purchase agreement must not be included in the 
 37.12  calculation of net debt for purposes of section 475.53, and does 
 37.13  not constitute debt under other law.  An election is not 
 37.14  required in connection with the execution of the installment 
 37.15  contract or the lease purchase agreement. 
 37.16     (c) The proceeds of the levy authorized by this subdivision 
 37.17  must not be used to acquire a facility to be primarily used for 
 37.18  athletic or school administration purposes. 
 37.19     (d) For the purposes of this subdivision, "district" means: 
 37.20     (1) a school district required to have a comprehensive plan 
 37.21  for the elimination of segregation whose plan has been 
 37.22  determined by the commissioner to be in compliance with 
 37.23  department of children, families, and learning rules relating to 
 37.24  equality of educational opportunity and school 
 37.25  desegregation and, for a district eligible for revenue under 
 37.26  section 124D.86, subdivision 3, clause (4), where the 
 37.27  acquisition of property under this subdivision is determined by 
 37.28  the commissioner to contribute to the implementation of the 
 37.29  desegregation plan; or 
 37.30     (2) a school district that participates in a joint program 
 37.31  for interdistrict desegregation with a district defined in 
 37.32  clause (1) if the facility acquired under this subdivision is to 
 37.33  be primarily used for the joint program and the commissioner 
 37.34  determines that the joint programs are being undertaken to 
 37.35  implement the districts' desegregation plan. 
 37.36     (e) Notwithstanding subdivision 1, the prohibition against 
 38.1   a levy by a district to lease or rent a district-owned building 
 38.2   to itself does not apply to levies otherwise authorized by this 
 38.3   subdivision. 
 38.4      (f) For the purposes of this subdivision, any references in 
 38.5   subdivision 1 to building or land shall include personal 
 38.6   property. 
 38.7      <b>EFFECTIVE DATE:</b>  This section is effective for taxes 
 38.8   payable in 2001 and later.  
 38.9      Sec. 18.  Minnesota Statutes 1998, section 126C.40, is 
 38.10  amended by adding a subdivision to read: 
 38.11     Subd. 7.  [UNEQUALIZED CAPITAL LEVIES.] A school district's 
 38.12  unequalized capital levy equals the sum of its: 
 38.13     (1) disabled access levy under section 123B.58; 
 38.14     (2) technology and building construction down payment levy 
 38.15  under section 123B.63; 
 38.16     (3) building lease levies under subdivision 1; 
 38.17     (4) cooperating district capital levy under subdivision 3; 
 38.18  and 
 38.19     (5) energy conservation levy under subdivision 4. 
 38.20     <b>EFFECTIVE DATE:</b>  This section is effective for taxes 
 38.21  payable in 2001 and later.  
 38.22     Sec. 19.  Minnesota Statutes 1999 Supplement, section 
 38.23  126C.63, subdivision 8, is amended to read: 
 38.24     Subd. 8.  [MAXIMUM EFFORT DEBT SERVICE LEVY.] "Maximum 
 38.25  effort debt service levy" means the lesser of: 
 38.26     (1) a levy in whichever of the following amounts is 
 38.27  applicable: 
 38.28     (a) in any district granted a debt service loan for a debt 
 38.29  service levy payable in 2001 and thereafter, or a capital loan 
 38.30  granted after June 30, 2000, a levy in a total dollar amount 
 38.31  computed at a rate of 30 percent of adjusted net tax capacity 
 38.32  for taxes payable in 2001 and thereafter; 
 38.33     (b) in any district receiving a debt service loan for a 
 38.34  debt service levy payable in 1991 and thereafter, or granted a 
 38.35  capital loan after between January 1, 1990, and June 30, 2000, a 
 38.36  levy in a total dollar amount computed at a rate of 24 percent 
 39.1   of adjusted net tax capacity for taxes payable in 1991 and 
 39.2   thereafter; 
 39.3      (b) (c) in any district granted a debt service loan after 
 39.4   between July 31, 1981, and December 31, 1989, or granted a 
 39.5   capital loan which is approved after between July 31, 1981, and 
 39.6   December 31, 1989, a levy in a total dollar amount computed as a 
 39.7   tax rate of 21.92 percent on the adjusted net tax capacity for 
 39.8   taxes payable in 1991 and thereafter; or 
 39.9      (2) a levy in any district for which a capital loan was 
 39.10  approved prior to August 1, 1981, a levy in a total dollar 
 39.11  amount equal to the sum of the amount of the required debt 
 39.12  service levy and an amount which when levied annually will in 
 39.13  the opinion of the commissioner be sufficient to retire the 
 39.14  remaining interest and principal on any outstanding loans from 
 39.15  the state within 30 years of the original date when the capital 
 39.16  loan was granted.  
 39.17     The board in any district affected by the provisions of 
 39.18  clause (2) may elect instead to determine the amount of its levy 
 39.19  according to the provisions of clause (1).  If a district's 
 39.20  capital loan is not paid within 30 years because it elects to 
 39.21  determine the amount of its levy according to the provisions of 
 39.22  clause (2), the liability of the district for the amount of the 
 39.23  difference between the amount it levied under clause (2) and the 
 39.24  amount it would have levied under clause (1), and for interest 
 39.25  on the amount of that difference, must not be satisfied and 
 39.26  discharged pursuant to Minnesota Statutes 1988, or an earlier 
 39.27  edition of Minnesota Statutes if applicable, section 124.43, 
 39.28  subdivision 4. 
 39.29     <b>EFFECTIVE DATE:</b>  This section is effective for taxes 
 39.30  payable in 2001 and later.  
 39.31     Sec. 20.  Minnesota Statutes 1998, section 126C.69, 
 39.32  subdivision 3, is amended to read: 
 39.33     Subd. 3.  [DISTRICT REQUEST FOR REVIEW AND COMMENT.] A 
 39.34  district or a joint powers district that intends to apply for a 
 39.35  capital loan must submit a proposal to the commissioner for 
 39.36  review and comment according to section 123B.71 by July 1 of an 
 40.1   odd-numbered year.  The commissioner shall prepare a review and 
 40.2   comment on the proposed facility, regardless of the amount of 
 40.3   the capital expenditure required to construct the facility.  In 
 40.4   addition to the information provided under section 123B.71, 
 40.5   subdivision 9, the commissioner shall require that predesign 
 40.6   packages comparable to those required under section 16B.335 be 
 40.7   prepared by the applicant school district.  The predesign 
 40.8   packages must be sufficient to define the scope, cost, and 
 40.9   schedule of the project and must demonstrate that the project 
 40.10  has been analyzed according to appropriate space needs standards 
 40.11  and also consider the following criteria in determining whether 
 40.12  to make a positive review and comment.  
 40.13     (a) To grant a positive review and comment the commissioner 
 40.14  shall determine that all of the following conditions are met: 
 40.15     (1) the facilities are needed for pupils for whom no 
 40.16  adequate facilities exist or will exist; 
 40.17     (2) the district will serve, on average, at least 80 60 
 40.18  pupils per grade or is eligible for elementary or secondary 
 40.19  sparsity revenue; 
 40.20     (3) no form of cooperation with another district would 
 40.21  provide the necessary facilities; 
 40.22     (4) the facilities are comparable in size and quality to 
 40.23  facilities recently constructed in other districts that have 
 40.24  similar enrollments; 
 40.25     (5) the facilities are comparable in size and quality to 
 40.26  facilities recently constructed in other districts that are 
 40.27  financed without a capital loan; 
 40.28     (6) the district is projected to maintain or increase its 
 40.29  average daily membership over the next five years or is eligible 
 40.30  for elementary or secondary sparsity revenue have access to 
 40.31  funds in its general operating budget to support its program; 
 40.32     (7) the current facility poses a threat to the life, 
 40.33  health, and safety of pupils, and cannot reasonably be brought 
 40.34  into compliance with fire, health, or life safety codes; 
 40.35     (8) the district has made a good faith effort, as evidenced 
 40.36  by its maintenance expenditures, to adequately maintain the 
 41.1   existing facility during the previous ten years and to comply 
 41.2   with fire, health, and life safety codes and state and federal 
 41.3   requirements for handicapped accessibility; 
 41.4      (9) the district has made a good faith effort to encourage 
 41.5   integration of social service programs within the new facility; 
 41.6   and 
 41.7      (10) evaluations by boards of adjacent districts have been 
 41.8   received; and 
 41.9      (11) the proposal includes a comprehensive technology plan. 
 41.10     (b) The commissioner may grant a negative review and 
 41.11  comment if: 
 41.12     (1) the state demographer has examined the population of 
 41.13  the communities to be served by the facility and determined that 
 41.14  the communities have not grown during the previous five years; 
 41.15     (2) the state demographer determines that the economic and 
 41.16  population bases of the communities to be served by the facility 
 41.17  are not likely to grow or to remain at a level sufficient, 
 41.18  during the next ten years, to ensure use of the entire facility; 
 41.19     (3) the need for facilities could be met within the 
 41.20  district or adjacent districts at a comparable cost by leasing, 
 41.21  repairing, remodeling, or sharing existing facilities or by 
 41.22  using temporary facilities; 
 41.23     (4) the district plans do not include cooperation and 
 41.24  collaboration with health and human services agencies and other 
 41.25  political subdivisions; or 
 41.26     (5) if the application is for new construction, an existing 
 41.27  facility that would meet the district's needs could be purchased 
 41.28  at a comparable cost from any other source within the area. 
 41.29     Sec. 21.  Minnesota Statutes 1999 Supplement, section 
 41.30  126C.69, subdivision 9, is amended to read: 
 41.31     Subd. 9.  [LOAN AMOUNT LIMITS.] (a) A loan must not be 
 41.32  recommended for approval for a district exceeding an amount 
 41.33  computed as follows: 
 41.34     (1) the amount requested by the district under subdivision 
 41.35  6; 
 41.36     (2) plus the aggregate principal amount of general 
 42.1   obligation bonds of the district outstanding on June 30 of the 
 42.2   year following the year the application was received, not 
 42.3   exceeding the limitation on net debt of the district in section 
 42.4   475.53, subdivision 4, or 363 400 percent of its adjusted net 
 42.5   tax capacity as most recently determined, whichever is less; 
 42.6      (3) less the maximum net debt permissible for the district 
 42.7   on December 1 of the year the application is received, under the 
 42.8   limitation in section 475.53, subdivision 4, or 363 400 percent 
 42.9   of its adjusted net tax capacity as most recently determined, 
 42.10  whichever is less; 
 42.11     (4) less any amount by which the amount voted exceeds the 
 42.12  total cost of the facilities for which the loan is granted.  
 42.13     (b) The loan may be approved in an amount computed as 
 42.14  provided in paragraph (a), clauses (1) to (3), subject to later 
 42.15  reduction according to paragraph (a), clause (4). 
 42.16     Sec. 22.  Minnesota Statutes 1998, section 136D.281, 
 42.17  subdivision 4, is amended to read: 
 42.18     Subd. 4.  [REVERSE REFERENDUM.] The intermediate school 
 42.19  board shall not may sell and issue bonds for acquisition or 
 42.20  betterment purposes if:  (1) each member school district board 
 42.21  has adopted a resolution authorizing the project; (2) the 
 42.22  intermediate board has prepared and published in a newspaper of 
 42.23  general circulation in the district a notice of the public 
 42.24  meeting on the intermediate district's intent to sell bonds; and 
 42.25  (3) the intermediate board has adopted a resolution authorizing 
 42.26  the bonds.  The resolution becomes final unless within 30 days 
 42.27  after the meeting where the resolution was adopted a petition 
 42.28  requesting an election is filed with the board.  The petition 
 42.29  must be signed by a number of qualified voters in excess of five 
 42.30  percent of the registered voters of the intermediate school 
 42.31  district on the day the petition is filed with the board.  If 
 42.32  the petition is filed, then the board resolution authorizing the 
 42.33  sale and issuance of bonds has no effect until the question of 
 42.34  their issuance has been submitted to the voters of the 
 42.35  intermediate school district at a special election held in and 
 42.36  for the intermediate district.  The date of the election, the 
 43.1   question to be submitted, and all other necessary conduct of the 
 43.2   election shall be fixed by the intermediate school board.  The 
 43.3   election shall be conducted and canvassed under the direction of 
 43.4   the intermediate school board in accordance with chapter 205A, 
 43.5   insofar as applicable. 
 43.6      If a majority of the total number of votes cast on the 
 43.7   question within the intermediate school district is in favor of 
 43.8   the question, the intermediate school board may proceed with the 
 43.9   sale and issuance of the bonds. 
 43.10     The bonds shall be general obligations of the intermediate 
 43.11  school district; however, each member school district must each 
 43.12  year certify its proportionate share of the debt service levy on 
 43.13  the bonds, with the allocation of its share of that levy 
 43.14  determined in accordance with the resolution authorizing the 
 43.15  project previously adopted by each member school board.  For 
 43.16  purposes of section 123B.53, the debt service levies certified 
 43.17  for this purpose by an individual member school district shall 
 43.18  be considered debt service levies of that school district.  By 
 43.19  July 1 and December 1 of each year, the school board of each 
 43.20  member school district shall transfer to the intermediate school 
 43.21  district an amount equal to 50 percent of the debt service levy 
 43.22  certified by that member school district in the previous fiscal 
 43.23  year to pay its proportionate share. 
 43.24     Sec. 23.  Minnesota Statutes 1998, section 136D.741, 
 43.25  subdivision 4, is amended to read: 
 43.26     Subd. 4.  [REVERSE REFERENDUM.] The intermediate school 
 43.27  board shall not may sell and issue bonds for acquisition or 
 43.28  betterment purposes if:  (1) each member school district board 
 43.29  has adopted a resolution authorizing the project; (2) the 
 43.30  intermediate board has prepared and published in a newspaper of 
 43.31  general circulation in the district a notice of the public 
 43.32  meeting on the intermediate district's intent to sell bonds; and 
 43.33  (3) the intermediate board has adopted a resolution authorizing 
 43.34  the bonds.  The resolution becomes final unless within 30 days 
 43.35  after the meeting where the resolution was adopted a petition 
 43.36  requesting an election is filed with the board.  The petition 
 44.1   must be signed by a number of qualified voters in excess of five 
 44.2   percent of the registered voters of the intermediate school 
 44.3   district on the day the petition is filed with the board.  If 
 44.4   the petition is filed, then the board resolution authorizing the 
 44.5   sale and issuance of bonds has no effect until the question of 
 44.6   their issuance has been submitted to the voters of the 
 44.7   intermediate school district at a special election held in and 
 44.8   for such intermediate district.  The date of such election, the 
 44.9   question to be submitted, and all other necessary conduct of 
 44.10  such election shall be fixed by the intermediate school board 
 44.11  and said election shall be conducted and canvassed under the 
 44.12  direction of the intermediate school board in accordance with 
 44.13  chapter 205A, insofar as the same may be deemed applicable. 
 44.14     If a majority of the total number of votes cast on the 
 44.15  question within the intermediate school district is in favor of 
 44.16  the question, the intermediate school board may thereupon 
 44.17  proceed with the sale and the issuance of said bonds. 
 44.18     The bonds shall be general obligations of the intermediate 
 44.19  school district; however, each member school district must each 
 44.20  year certify its proportionate share of the debt service levy on 
 44.21  the bonds, with the allocation of its share of that levy 
 44.22  determined in accordance with the resolution authorizing the 
 44.23  project previously adopted by each member school board.  For 
 44.24  purposes of section 123B.53, the debt service levies certified 
 44.25  for this purpose by an individual member school district shall 
 44.26  be considered debt service levies of that school district.  By 
 44.27  July 1 and December 1 of each year, the school board of each 
 44.28  member school district shall transfer to the intermediate school 
 44.29  district an amount equal to 50 percent of the debt service levy 
 44.30  certified by that member school district in the previous fiscal 
 44.31  year to pay its proportionate share. 
 44.32     Sec. 24.  Minnesota Statutes 1998, section 136D.88, 
 44.33  subdivision 4, is amended to read: 
 44.34     Subd. 4.  [REVERSE REFERENDUM.] The intermediate school 
 44.35  board shall not may sell and issue bonds for acquisition or 
 44.36  betterment purposes if:  (1) each member school district board 
 45.1   has adopted a resolution authorizing the project; (2) the 
 45.2   intermediate board has prepared and published in a newspaper of 
 45.3   general circulation in the district a notice of the public 
 45.4   meeting on the intermediate district's intent to sell bonds; and 
 45.5   (3) the intermediate board has adopted a resolution authorizing 
 45.6   the bonds.  The resolution becomes final unless within 30 days 
 45.7   after the meeting where the resolution was adopted a petition 
 45.8   requesting an election is filed with the board.  The petition 
 45.9   must be signed by a number of qualified voters in excess of five 
 45.10  percent of the registered voters of the intermediate school 
 45.11  district on the day the petition is filed with the board.  If 
 45.12  the petition is filed, then the board resolution authorizing the 
 45.13  sale and issuance of bonds has no effect until the question of 
 45.14  their issuance has been submitted to the voters of the 
 45.15  intermediate school district at a special election held in and 
 45.16  for the intermediate district.  The date of the election, the 
 45.17  question to be submitted, and all other necessary conduct of the 
 45.18  election shall be fixed by the intermediate school board.  The 
 45.19  election shall be conducted and canvassed under the direction of 
 45.20  the intermediate school board in accordance with chapter 205A, 
 45.21  insofar as applicable. 
 45.22     If a majority of the total number of votes cast on the 
 45.23  question within the intermediate school district is in favor of 
 45.24  the question, the intermediate school board may thereupon 
 45.25  proceed with the sale and issuance of the bonds. 
 45.26     The bonds shall be general obligations of the intermediate 
 45.27  school district; however, each member school district must each 
 45.28  year certify its proportionate share of the debt service levy on 
 45.29  the bonds, with the allocation of its share of that levy 
 45.30  determined in accordance with the resolution authorizing the 
 45.31  project previously adopted by each member school board.  For 
 45.32  purposes of section 123B.53, the debt service levies certified 
 45.33  for this purpose by an individual member school district shall 
 45.34  be considered debt service levies of that school district.  By 
 45.35  July 1 and December 1 of each year, the school board of each 
 45.36  member school district shall transfer to the intermediate school 
 46.1   district an amount equal to 50 percent of the debt service levy 
 46.2   certified by that member school district in the previous fiscal 
 46.3   year to pay its proportionate share. 
 46.4      Sec. 25.  Minnesota Statutes 1998, section 475.53, 
 46.5   subdivision 4, is amended to read: 
 46.6      Subd. 4.  [SCHOOL DISTRICTS.] Except as otherwise provided 
 46.7   by law, no school district shall be subject to a net debt in 
 46.8   excess of ten percent of the actual market value of all taxable 
 46.9   property situated within its corporate limits, as computed in 
 46.10  accordance with this subdivision.  The county auditor of each 
 46.11  county containing taxable real or personal property situated 
 46.12  within any school district shall certify to the district upon 
 46.13  request the market value of all such property.  Whenever the 
 46.14  commissioner of revenue, in accordance with section 127A.48, 
 46.15  subdivisions 1 to 6, has determined that the net tax capacity of 
 46.16  any district furnished by county auditors is not based upon the 
 46.17  market value of taxable property in the district, the 
 46.18  commissioner of revenue shall certify to the district upon 
 46.19  request the ratio most recently ascertained to exist between 
 46.20  such value and the actual market value of property within the 
 46.21  district.  The actual market value of property within a 
 46.22  district, on which its debt limit under this subdivision is 
 46.23  based, is (a) the value certified by the county auditors, or (b) 
 46.24  this value divided by the ratio certified by the commissioner of 
 46.25  revenue, whichever results in a higher value times the adjusted 
 46.26  net tax capacity of the district as defined in section 126C.01, 
 46.27  subdivision 2. 
 46.28     Sec. 26.  Laws 1999, chapter 241, article 4, section 27, 
 46.29  subdivision 2, is amended to read: 
 46.30     Subd. 2.  [HEALTH AND SAFETY AID.] For health and safety 
 46.31  aid according to Minnesota Statutes, section 123B.57, 
 46.32  subdivision 5: 
 46.33       $14,528,000 $14,015,000   .....     2000 
 46.34       $14,957,000 $14,450,000   .....     2001 
 46.35     The 2000 appropriation includes $1,415,000 for 1999 and 
 46.36  $13,113,000 $12,600,000 for 2000.  
 47.1      The 2001 appropriation includes $1,456,000 $1,400,000 for 
 47.2   2000 and $13,501,000 $13,050,000 for 2001.  
 47.3      <b>EFFECTIVE DATE:</b>  This section is effective the day 
 47.4   following final enactment.  
 47.5      Sec. 27.  Laws 1999, chapter 241, article 4, section 27, 
 47.6   subdivision 3, is amended to read: 
 47.7      Subd. 3.  [DEBT SERVICE AID.] For debt service aid 
 47.8   according to Minnesota Statutes, section 123B.53, subdivision 6: 
 47.9        $33,165,000 $33,141,000   .....     2000
 47.10       $32,084,000 $29,400,000   .....     2001
 47.11     The 2000 appropriation includes $3,842,000 for 1999 and 
 47.12  $29,323,000 $29,299,000 for 2000. 
 47.13     The 2001 appropriation includes $3,256,000 $3,255,000 for 
 47.14  2000 and $28,828,000 $26,145,000 for 2001. 
 47.15     <b>EFFECTIVE DATE:</b>  This section is effective the day 
 47.16  following final enactment.  
 47.17     Sec. 28.  Laws 1999, chapter 241, article 4, section 27, 
 47.18  subdivision 4, is amended to read: 
 47.19     Subd. 4.  [INTERACTIVE TELEVISION (ITV) AID.] For 
 47.20  interactive television (ITV) aid under Minnesota Statutes, 
 47.21  section 126C.40, subdivision 4: 
 47.22       $4,197,000 $4,194,000    .....     2000
 47.23       $2,851,000 $2,761,000    .....     2001
 47.24     The 2000 appropriation includes $405,000 for 1999 and 
 47.25  $3,792,000 $3,789,000 for 2000. 
 47.26     The 2001 appropriation includes $421,000 for 2000 and 
 47.27  $2,430,000 $2,340,000 for 2001. 
 47.28     <b>EFFECTIVE DATE:</b>  This section is effective the day 
 47.29  following final enactment.  
 47.30     Sec. 29.  Laws 1999, chapter 241, article 4, section 27, 
 47.31  subdivision 5, is amended to read: 
 47.32     Subd. 5.  [ALTERNATIVE FACILITIES BONDING AID.] For 
 47.33  alternative facilities bonding aid, according to Minnesota 
 47.34  Statutes, section 123B.59: 
 47.35       $19,058,000 $18,920,000   .....     2000 
 47.36       $19,286,000 $19,134,000   .....     2001 
 48.1      The 2000 appropriation includes $1,700,000 for 2000 1999 
 48.2   and $17,358,000 $17,220,000 for 2001 2000. 
 48.3      The 2001 appropriation includes $1,928,000 $1,913,000 for 
 48.4   2000 and $17,358,000 $17,221,000 for 2001. 
 48.5      <b>EFFECTIVE DATE:</b>  This section is effective the day 
 48.6   following final enactment.  
 48.7      Sec. 30.  Laws 1999, chapter 241, article 4, section 27, 
 48.8   subdivision 7, is amended to read: 
 48.9      Subd. 7.  [TELECOMMUNICATION ACCESS GRANTS.] (a) For 
 48.10  telecommunication access grants according to Minnesota Statutes, 
 48.11  section 125B.20: 
 48.12      $ 5,000,000     .....     2000 
 48.13      $10,000,000     .....     2001
 48.14     (b) Any balance in the first year does not cancel but is 
 48.15  available in the second year.  This amount shall not be included 
 48.16  as part of the base for fiscal year 2002-2003. 
 48.17     Sec. 31.  Laws 1999, chapter 241, article 4, section 27, 
 48.18  subdivision 10, is amended to read: 
 48.19     Subd. 10.  [DECLINING PUPIL AID; ST. PETER.] For a grant to 
 48.20  independent school district No. 508, St. Peter, to ameliorate 
 48.21  general fund operating losses associated with the March, 1998 
 48.22  tornado: 
 48.23       $  105,000 $ 75,000    .....     2000 
 48.24       $  278,000 $115,000    .....     2001 
 48.25     <b>EFFECTIVE DATE:</b>  This section is effective the day 
 48.26  following final enactment. 
 48.27     Sec. 32.  Laws 1999, chapter 241, article 4, section 27, 
 48.28  subdivision 11, is amended to read: 
 48.29     Subd. 11.  [FLOODS; DECLINING PUPIL AID.] For declining 
 48.30  pupil aid under section 23: 
 48.31       $2,132,000 $2,087,000    .....     2000 
 48.32       $1,758,000 $1,639,000    .....     2001 
 48.33     <b>EFFECTIVE DATE:</b>  This section is effective the day 
 48.34  following final enactment. 
 48.35     Sec. 33.  Laws 1999, chapter 241, article 4, section 29, is 
 48.36  amended to read: 
 49.1      Sec. 29.  [REPEALER.] 
 49.2      (a) Minnesota Statutes 1998, sections 123A.44; 123A.441; 
 49.3   123A.442; 123A.443; 123A.444; 123A.445; 123A.446; 123B.57, 
 49.4   subdivisions 4, 5, and 7; 123B.59, subdivision 7; 123B.63, 
 49.5   subdivisions 1 and 2; section 123B.66; 123B.67; 123B.68; and 
 49.6   123B.69, are, is repealed effective the day following final 
 49.7   enactment. 
 49.8      (b) Minnesota Statutes 1998, section 123B.58, is repealed 
 49.9   effective July 1, 2004. 
 49.10     (c) Minnesota Statutes 1998, section 123B.64, subdivision 
 49.11  4, is repealed effective for revenue for fiscal year 2000. 
 49.12     (d) (c) Minnesota Statutes 1998, section 123B.64, 
 49.13  subdivisions 1, 2, and 3, are repealed effective for revenue for 
 49.14  fiscal year 2001. 
 49.15     (e) (d) Minnesota Rules, parts 3500.3900; 3500.4000; 
 49.16  3500.4100; 3500.4200; and 3500.4300, are repealed. 
 49.17     <b>EFFECTIVE DATE:</b>  This section is effective the day 
 49.18  following final enactment.  
 49.19     Sec. 34.  [TECHNOLOGY CAPABILITIES TASK FORCE.] 
 49.20     The commissioner of children, families, and learning must 
 49.21  convene a task force to determine the ongoing technology needs 
 49.22  of Minnesota's school districts including the cost of 
 49.23  maintenance, support services, and technology upgrades.  The 
 49.24  task force is composed of the commissioner of children, 
 49.25  families, and learning, or the commissioner's designee, two 
 49.26  persons appointed by Education Minnesota, two persons appointed 
 49.27  by the Minnesota school boards association, one person appointed 
 49.28  by the Minnesota rural education association, one person 
 49.29  appointed by the service cooperatives, one elementary school 
 49.30  principal appointed by the Minnesota elementary principals 
 49.31  association, one secondary school principal appointed by the 
 49.32  Minnesota association of secondary school principals, one 
 49.33  superintendent appointed by the Minnesota association of school 
 49.34  administrators, one school media specialist appointed by the 
 49.35  Minnesota educational media organization, one teacher aide 
 49.36  appointed by the commissioner, one assistive technology 
 50.1   practitioner appointed by the commissioner, one person appointed 
 50.2   by the Minnesota high technology council, one person from the 
 50.3   Minnesota Business Partnership, one person from the Minnesota 
 50.4   Chamber of Commerce, and two people from the Minnesota education 
 50.5   telecommunications council.  The task force must establish 
 50.6   minimum technology standards for school districts and for school 
 50.7   sites.  The task force must report its minimum standards for 
 50.8   technology to the education committees of the legislature by 
 50.9   February 15, 2001. 
 50.10     Sec. 35.  [REPEALER WITHOUT EFFECT.] 
 50.11     The repeal of Minnesota Statutes 1998, sections 123A.44; 
 50.12  123A.441; 123A.442; 123A.443; 123A.444; 123A.445; 123A.446; 
 50.13  123B.57, subdivisions 4, 5, and 7; 123B.59, subdivision 7; 
 50.14  123B.63, subdivisions 1 and 2; 123B.67; 123B.68; and 123B.69, by 
 50.15  Laws 1999, chapter 241, article 4, section 29, with an effective 
 50.16  date of May 26, 1999, is without effect and Minnesota Statutes 
 50.17  1998, sections 123A.44; 123A.441; 123A.442; 123A.443; 123A.444; 
 50.18  123A.445; 123A.446; 123B.57, subdivisions 4, 5, and 7; 123B.59, 
 50.19  subdivision 7; 123B.63, subdivisions 1 and 2; 123B.67; 123B.68; 
 50.20  and 123B.69, remain in effect after May 25, 1999. 
 50.21     <b>EFFECTIVE DATE:</b>  This section is effective retroactive to 
 50.22  May 25, 1999. 
 50.23     Sec. 36.  [REPEALER.] 
 50.24     (a) Minnesota Statutes 1998, sections 136D.281, subdivision 
 50.25  8; 136D.741, subdivision 8; and 136D.88, subdivision 8, are 
 50.26  repealed effective July 1, 2000. 
 50.27     (b) Minnesota Statutes 1998, section 123B.59, subdivision 
 50.28  7, is repealed effective June 30, 2001. 
 50.29                             ARTICLE 5 
 50.30              EDUCATIONAL EXCELLENCE AND OTHER POLICY 
 50.31     Section 1.  Minnesota Statutes 1998, section 120A.41, is 
 50.32  amended to read: 
 50.33     120A.41 [LENGTH OF SCHOOL YEAR; DAYS OF INSTRUCTION.] 
 50.34     A school board's annual school calendar must include at 
 50.35  least three additional days of student instruction beyond the 
 50.36  number of 173 days of student instruction the board formally 
 51.1   adopted as its school calendar at the beginning of the 1996-1997 
 51.2   school year and five days of staff development or parent-teacher 
 51.3   conferences and related activities. 
 51.4      <b>EFFECTIVE DATE:</b>  This section is effective the day 
 51.5   following final enactment and applies for 2001-2002 and later 
 51.6   school years. 
 51.7      Sec. 2.  [121A.582] [STUDENT DISCIPLINE; REASONABLE FORCE.] 
 51.8      Subdivision 1.  [REASONABLE FORCE STANDARD.] (a) A teacher, 
 51.9   in exercising the person's lawful authority, may use reasonable 
 51.10  force when it is necessary under the circumstances to correct or 
 51.11  restrain a student or prevent bodily harm or death to another. 
 51.12     (b) A school employee, school bus driver, or other agent of 
 51.13  a district, in exercising the person's lawful authority, may use 
 51.14  reasonable force when it is necessary under the circumstances to 
 51.15  restrain a student or prevent bodily harm or death to another. 
 51.16     (c) Paragraphs (a) and (b) do not authorize conduct 
 51.17  prohibited under sections 121A.58 and 121A.67. 
 51.18     Subd. 2.  [CIVIL LIABILITY.] (a) A teacher who, in the 
 51.19  exercise of the person's lawful authority, uses reasonable force 
 51.20  under the standard in subdivision 1, paragraph (a), has a 
 51.21  defense against a civil action for damages under section 123B.25.
 51.22     (b) A school employee, bus driver, or other agent of a 
 51.23  district who, in the exercise of the person's lawful authority, 
 51.24  uses reasonable force under the standard in subdivision 1, 
 51.25  paragraph (b), has a defense against a civil action for damages 
 51.26  under section 123B.25. 
 51.27     Subd. 3.  [CRIMINAL PROSECUTION.] (a) A teacher who, in the 
 51.28  exercise of the person's lawful authority, uses reasonable force 
 51.29  under the standard in subdivision 1, paragraph (a), has a 
 51.30  defense against a criminal prosecution under section 609.06, 
 51.31  subdivision 1. 
 51.32     (b) A school employee, bus driver, or other agent of a 
 51.33  district who, in the exercise of the person's lawful authority, 
 51.34  uses reasonable force under the standard in subdivision 1, 
 51.35  paragraph (b), has a defense against a criminal prosecution 
 51.36  under section 609.06, subdivision 1. 
 52.1      Subd. 4.  [SUPPLEMENTARY RIGHTS AND DEFENSES.] Any right or 
 52.2   defense in this section is supplementary to those specified in 
 52.3   section 121A.58, 121A.67, 123B.25, or 609.06, subdivision 1. 
 52.4      <b>EFFECTIVE DATE:</b>  This section is effective for the 
 52.5   2000-2001 school year and later. 
 52.6      Sec. 3.  Minnesota Statutes 1998, section 121A.61, 
 52.7   subdivision 3, is amended to read: 
 52.8      Subd. 3.  [POLICY COMPONENTS.] The policy must include at 
 52.9   least the following components:  
 52.10     (a) rules governing student conduct and procedures for 
 52.11  informing students of the rules; 
 52.12     (b) the grounds for removal of a student from a class; 
 52.13     (c) the authority of the classroom teacher to remove 
 52.14  students from the classroom pursuant to procedures and rules 
 52.15  established in the district's policy; 
 52.16     (d) the procedures for removal of a student from a class by 
 52.17  a teacher, school administrator, or other school district 
 52.18  employee; 
 52.19     (e) the period of time for which a student may be removed 
 52.20  from a class, which may not exceed five class periods for a 
 52.21  violation of a rule of conduct; 
 52.22     (f) provisions relating to the responsibility for and 
 52.23  custody of a student removed from a class; 
 52.24     (g) the procedures for return of a student to the specified 
 52.25  class from which the student has been removed; 
 52.26     (h) the procedures for notifying a student and the 
 52.27  student's parents or guardian of violations of the rules of 
 52.28  conduct and of resulting disciplinary actions; 
 52.29     (i) any procedures determined appropriate for encouraging 
 52.30  early involvement of parents or guardians in attempts to improve 
 52.31  a student's behavior; 
 52.32     (j) any procedures determined appropriate for encouraging 
 52.33  early detection of behavioral problems; 
 52.34     (k) any procedures determined appropriate for referring a 
 52.35  student in need of special education services to those services; 
 52.36     (1) the procedures for consideration of whether there is a 
 53.1   need for a further assessment or of whether there is a need for 
 53.2   a review of the adequacy of a current individual education plan 
 53.3   of a student with a disability who is removed from class; 
 53.4      (m) procedures for detecting and addressing chemical abuse 
 53.5   problems of a student while on the school premises; 
 53.6      (n) the minimum consequences for violations of the code of 
 53.7   conduct; and 
 53.8      (o) procedures for immediate and appropriate interventions 
 53.9   tied to violations of the code; and 
 53.10     (p) a provision that states that a teacher, school 
 53.11  employee, school bus driver, or other agent of a district may 
 53.12  use reasonable force in compliance with section 121A.582 and 
 53.13  other laws.  
 53.14     <b>EFFECTIVE DATE:</b>  This section is effective for the 
 53.15  2001-2002 school year and thereafter. 
 53.16     Sec. 4.  Minnesota Statutes 1999 Supplement, section 
 53.17  122A.09, subdivision 4, is amended to read: 
 53.18     Subd. 4.  [LICENSE AND RULES.] (a) The board must adopt 
 53.19  rules to license public school teachers and interns subject to 
 53.20  chapter 14. 
 53.21     (b) The board must adopt rules requiring a person to 
 53.22  successfully complete a skills examination in reading, writing, 
 53.23  and mathematics as a requirement for initial teacher licensure.  
 53.24  Such rules must require college and universities offering a 
 53.25  board approved teacher preparation program to provide remedial 
 53.26  assistance to persons who did not achieve a qualifying score on 
 53.27  the skills examination, including those for whom English is a 
 53.28  second language. 
 53.29     (c) The board must adopt rules to approve teacher 
 53.30  preparation programs.  The board, upon the request of a 
 53.31  post-secondary student preparing for teacher licensure or a 
 53.32  licensed graduate of a teacher preparation program, shall assist 
 53.33  in resolving a dispute between the person and a post-secondary 
 53.34  institution providing a teacher preparation program when the 
 53.35  dispute involves an institution's recommendation for licensure 
 53.36  affecting the person or the person's credentials.  At the 
 54.1   board's discretion, assistance may include the application of 
 54.2   chapter 14. 
 54.3      (d) The board must provide the leadership and shall adopt 
 54.4   rules for the redesign of teacher education programs to 
 54.5   implement a research based, results-oriented curriculum that 
 54.6   focuses on the skills teachers need in order to be effective.  
 54.7   The board shall implement new systems of teacher preparation 
 54.8   program evaluation to assure program effectiveness based on 
 54.9   proficiency of graduates in demonstrating attainment of program 
 54.10  outcomes. 
 54.11     (e) The board must adopt rules requiring successful 
 54.12  completion of an examination of general pedagogical knowledge 
 54.13  and examinations of licensure-specific teaching skills.  The 
 54.14  rules shall be effective on the dates determined by the board, 
 54.15  but not later than September 1, 2001. 
 54.16     (f) The board must adopt rules requiring teacher educators 
 54.17  to work directly with elementary or secondary school teachers in 
 54.18  elementary or secondary schools to obtain periodic exposure to 
 54.19  the elementary or secondary teaching environment. 
 54.20     (g) The board must grant licenses to interns and to 
 54.21  candidates for initial licenses. 
 54.22     (h) The board must design and implement an assessment 
 54.23  system which requires a candidate for an initial license and 
 54.24  first continuing license to demonstrate the abilities necessary 
 54.25  to perform selected, representative teaching tasks at 
 54.26  appropriate levels. 
 54.27     (i) The board must receive recommendations from local 
 54.28  committees as established by the board for the renewal of 
 54.29  teaching licenses. 
 54.30     (j) The board must grant life licenses to those who qualify 
 54.31  according to requirements established by the board, and suspend 
 54.32  or revoke licenses pursuant to sections 122A.20 and 214.10.  The 
 54.33  board must not establish any expiration date for application for 
 54.34  life licenses.  
 54.35     (k) The board must adopt rules that require all licensed 
 54.36  teachers who are renewing their continuing license to include in 
 55.1   their renewal requirements further preparation in the areas of 
 55.2   using positive behavior interventions and in accommodating, 
 55.3   modifying, and adapting curricula, materials, and strategies to 
 55.4   appropriately meet the needs of individual students and ensure 
 55.5   adequate progress toward the state's graduation rule.  The rules 
 55.6   adopted under this paragraph apply to teachers who renew their 
 55.7   licenses in year 2001 and later. 
 55.8      (l) In adopting rules to license public school teachers who 
 55.9   provide health-related services for disabled children, the board 
 55.10  shall adopt rules consistent with license or registration 
 55.11  requirements of the commissioner of health and the 
 55.12  health-related boards who license personnel who perform similar 
 55.13  services outside of the school. 
 55.14     (m) Notwithstanding any law or rule to the contrary, the 
 55.15  board of teaching shall issue an alternative two-year license to 
 55.16  teach in Minnesota if the applicant: 
 55.17     (1) holds a degree from an out-of-state institution of 
 55.18  higher education that is comparable in rank and standing to a 
 55.19  Minnesota state university, the University of Minnesota, or a 
 55.20  nonpublic state liberal arts college or university, provided the 
 55.21  applicant received the degree for completing a teacher 
 55.22  preparation program; 
 55.23     (2) has successfully completed a basic skills exam in 
 55.24  reading, writing, and mathematics approved by the board of 
 55.25  teaching under section 122A.09, subdivision 4, clause (b); 
 55.26     (3) has undergone a background check under section 122A.18, 
 55.27  subdivision 8, and, as a result of the background check, is 
 55.28  eligible to be licensed by the board of teaching; and 
 55.29     (4) documents that the applicant has experience as a 
 55.30  licensed teacher of school-age children and provides personal 
 55.31  references. 
 55.32     A school district that hires a teacher with an alternative 
 55.33  two-year license under this subdivision shall name for the 
 55.34  teacher a mentorship team that includes the school principal or 
 55.35  other person charged with administering the school site.  The 
 55.36  team shall evaluate the teacher and recommend to the board of 
 56.1   teaching whether or not the teacher should receive a continuing 
 56.2   license.  If the recommendation is favorable, the board of 
 56.3   teaching shall issue a continuing license to the teacher.  If 
 56.4   the recommendation is unfavorable, the board of teaching may, at 
 56.5   its discretion, renew the alternative two-year license under 
 56.6   this subdivision for an additional two-year period or decline to 
 56.7   further consider the applicant for a license under this 
 56.8   subdivision. 
 56.9      Sec. 5.  Minnesota Statutes 1998, section 122A.18, 
 56.10  subdivision 2, is amended to read: 
 56.11     Subd. 2.  [TEACHER AND SUPPORT PERSONNEL QUALIFICATIONS.] 
 56.12  (a) The board of teaching must issue licenses under its 
 56.13  jurisdiction to persons the board finds to be qualified and 
 56.14  competent for their respective positions. 
 56.15     (b) The board must require a person to successfully 
 56.16  complete an examination of skills in reading, writing, and 
 56.17  mathematics before being granted an initial teaching license to 
 56.18  provide direct instruction to pupils in prekindergarten, 
 56.19  elementary, secondary, or special education programs.  The board 
 56.20  must require colleges and universities offering a board approved 
 56.21  teacher preparation program to provide remedial assistance that 
 56.22  includes a formal diagnostic component to persons enrolled in 
 56.23  their institution who did not achieve a qualifying score on the 
 56.24  skills examination, including those for whom English is a second 
 56.25  language.  The colleges and universities must provide assistance 
 56.26  in the specific academic areas of deficiency in which the person 
 56.27  did not achieve a qualifying score.  School districts must 
 56.28  provide similar, appropriate, and timely remedial assistance 
 56.29  that includes a formal diagnostic component and mentoring to 
 56.30  those persons employed by the district who completed their 
 56.31  teacher education program outside the state of Minnesota, 
 56.32  received a one-year license to teach in Minnesota and did not 
 56.33  achieve a qualifying score on the skills examination, including 
 56.34  those persons for whom English is a second language.  The board 
 56.35  of teaching shall report annually to the education committees of 
 56.36  the legislature on the total number of teacher candidates during 
 57.1   the most recent school year taking the basic skills examination 
 57.2   under section 122A.09, subdivision 4, clause (b), the number who 
 57.3   achieve a qualifying score on the examination, the number who do 
 57.4   not achieve a qualifying score on the examination, the 
 57.5   distribution of all candidates' scores, the number of candidates 
 57.6   who have taken the examination at least once before, and the 
 57.7   number of candidates who have taken the examination at least 
 57.8   once before and achieve a qualifying score.  The data shall be 
 57.9   disaggregated to the institutional level.  
 57.10     (c) A person who has completed an approved teacher 
 57.11  preparation program and obtained a one-year license to teach, 
 57.12  but has not successfully completed the skills examination, may 
 57.13  renew the one-year license for two additional one-year periods.  
 57.14  Each renewal of the one-year license is contingent upon the 
 57.15  licensee: 
 57.16     (1) providing evidence of participating in an approved 
 57.17  remedial assistance program provided by a school district or 
 57.18  post-secondary institution that includes a formal diagnostic 
 57.19  component in the specific areas in which the licensee did not 
 57.20  obtain qualifying scores; and 
 57.21     (2) attempting to successfully complete the skills 
 57.22  examination during the period of each one-year license. 
 57.23     (d) The board of teaching must grant continuing licenses 
 57.24  only to those persons who have met board criteria for granting a 
 57.25  continuing license, which includes successfully completing the 
 57.26  skills examination in reading, writing, and mathematics. 
 57.27     (e) All colleges and universities approved by the board of 
 57.28  teaching to prepare persons for teacher licensure must include 
 57.29  in their teacher preparation programs a common core of teaching 
 57.30  knowledge and skills to be acquired by all persons recommended 
 57.31  for teacher licensure.  This common core shall meet the 
 57.32  standards developed by the interstate new teacher assessment and 
 57.33  support consortium in its 1992 "model standards for beginning 
 57.34  teacher licensing and development."  Amendments to standards 
 57.35  adopted under this paragraph are covered by chapter 14.  The 
 57.36  board of teaching shall report annually to the education 
 58.1   committees of the legislature on the performance of teacher 
 58.2   candidates on common core assessments of knowledge and skills 
 58.3   under this paragraph during the most recent school year. 
 58.4      <b>EFFECTIVE DATE:</b>  This section is effective for the 
 58.5   2000-2001 school year and thereafter. 
 58.6      Sec. 6.  [122A.655] [RECRUITMENT OF EXCELLENT TEACHERS IN 
 58.7   SCIENCE, MATH, INDUSTRIAL TECHNOLOGY, AND SPECIAL EDUCATION AND 
 58.8   IN RURAL AREAS; LOAN FORGIVENESS PROGRAM.] 
 58.9      Subdivision 1.  [PROGRAM ESTABLISHED; ACCOUNT CREATED.] (a) 
 58.10  A loan forgiveness program is established to assist Minnesota 
 58.11  public schools in recruiting and retaining excellent teachers in 
 58.12  science, math, industrial technology, and special education and 
 58.13  in rural areas.  A loan forgiveness program account is created 
 58.14  in the state treasury.  The account consists of money 
 58.15  appropriated by the legislature and repayments and penalties 
 58.16  collected under subdivision 4.  All money in this account is 
 58.17  annually appropriated to the commissioner and must be used to 
 58.18  repay loans of qualified licensed teachers who agree to teach in 
 58.19  high-need areas under subdivision 2. 
 58.20     (b) A school district that employs a teacher participating 
 58.21  in this program must provide the teacher with mentoring that: 
 58.22     (1) offers appropriate intervention, which may include 
 58.23  assisting with student discipline or classroom management, 
 58.24  adjustments to the teaching assignment, student motivation, 
 58.25  lesson planning, accommodations for individual student 
 58.26  differences, or finding and using effective materials; 
 58.27     (2) orients the teacher to the school and the community; 
 58.28  and 
 58.29     (3) ensures instructional and interpersonal support that 
 58.30  fosters professional development and the teacher's retention. 
 58.31     Subd. 2.  [ELIGIBILITY; APPLICATION.] (a) To participate in 
 58.32  this program, a person must: 
 58.33     (1) have graduated from an approved teacher preparation 
 58.34  institution within 12 months of submitting an application to the 
 58.35  commissioner to participate in this program; 
 58.36     (2) have a 3.0 grade point average or higher in that 
 59.1   portion of the teacher preparation program affecting licensure 
 59.2   in the field of math, science, industrial technology, or special 
 59.3   education, and be licensed to teach in the field of math, 
 59.4   science, industrial technology, or special education; and 
 59.5      (3) agree to be employed as a teacher for at least three 
 59.6   consecutive school years in one Minnesota public school.  
 59.7      (b) A person who meets the criteria in paragraph (a) and 
 59.8   agrees to be employed as a teacher in a public school located in 
 59.9   Minnesota outside the metropolitan area, as defined in section 
 59.10  473.121, subdivision 2, is eligible to receive an additional 
 59.11  amount of $1,000 per year under subdivision 3. 
 59.12     (c) To be eligible to participate in this program, a person 
 59.13  must submit an application to the commissioner in the form and 
 59.14  manner the commissioner prescribes. 
 59.15     (d) The commissioner shall select applicants that qualify 
 59.16  for this program, notify eligible people about the program, 
 59.17  develop and disseminate application materials, and carry out 
 59.18  other activities needed to implement this section. 
 59.19     Subd. 3.  [LOAN FORGIVENESS.] For fiscal year 2001, the 
 59.20  commissioner may select teacher applicants to participate in 
 59.21  this program.  Program participants are responsible for securing 
 59.22  their own loans.  Program participants who meet the criteria in 
 59.23  subdivision 2, paragraph (a), may designate for each year of 
 59.24  post-secondary education leading to a license to teach, up to a 
 59.25  total of three years, an agreed amount, not to exceed $3,000 per 
 59.26  year, as a qualified loan.  Program participants who meet the 
 59.27  criteria in subdivision 2, paragraphs (a) and (b), may designate 
 59.28  for each year of post-secondary education leading to a license 
 59.29  to teach, up to a total of three years, an agreed amount not to 
 59.30  exceed $4,000 per year, as a qualified loan.  For each year that 
 59.31  a participant is employed in a school district according to 
 59.32  subdivision 2, up to a total of three years, the commissioner 
 59.33  shall annually pay an amount equal to one year of qualified 
 59.34  loans.  
 59.35     Subd. 4.  [PENALTY.] If a teacher participating in this 
 59.36  program does not fulfill the required three years of service in 
 60.1   a qualifying public school for full repayment of all qualified 
 60.2   loans, then the commissioner must collect from the teacher the 
 60.3   amount paid under this loan forgiveness program.  The 
 60.4   commissioner shall deposit the money the commissioner collects 
 60.5   in the loan forgiveness program account under subdivision 1.  
 60.6   The commissioner may grant a waiver for all or part of the money 
 60.7   owed as a result of a penalty if, according to criteria 
 60.8   established by the commissioner, emergency circumstances prevent 
 60.9   the teacher from fulfilling the teacher's three-year commitment 
 60.10  to teach. 
 60.11     Sec. 7.  [123B.055] [CONTRACTS FOR COMPUTERS OR RELATED 
 60.12  EQUIPMENT OR SERVICE.] 
 60.13     The school board of a school district may not enter into a 
 60.14  contract or permit a school within the district to enter into a 
 60.15  contract for the use of a computer or related equipment or 
 60.16  service that requires advertising to be disseminated to students 
 60.17  unless the school board: 
 60.18     (1) enters into the contract at a public hearing of the 
 60.19  school board; 
 60.20     (2) makes a finding that the offered electronic product or 
 60.21  service is an integral component of students' education; 
 60.22     (3) provides written notice to students' parents that 
 60.23  advertising will be used in the classroom, media center, 
 60.24  computer lab, or other areas of learning; 
 60.25     (4) as part of normal, ongoing district communications with 
 60.26  parents, allows parents to request in writing that (i) their 
 60.27  student not be exposed to the program that contains the 
 60.28  advertising for the current school year, or that (ii) any or all 
 60.29  directory information relating to the student that is collected 
 60.30  as a result of this contract is not disclosed; and 
 60.31     (5) honors parents' request, under clause (4), that their 
 60.32  student not be exposed to the advertising program or that 
 60.33  directory information relating to the student is not disclosed 
 60.34  and allows parents to withdraw their request at any time. 
 60.35     <b>EFFECTIVE DATE:</b>  This section is effective the day 
 60.36  following final enactment. 
 61.1      Sec. 8.  Minnesota Statutes 1998, section 123B.79, 
 61.2   subdivision 7, is amended to read: 
 61.3      Subd. 7.  [ACCOUNT TRANSFER FOR CERTAIN SEVERANCE PAY.] A 
 61.4   district may maintain in a designated reserve for certain 
 61.5   severance pay account not more than 50 percent of the amount 
 61.6   necessary to meet the obligations for the portion of severance 
 61.7   pay that constitutes compensation for accumulated sick leave to 
 61.8   be used for payment of premiums for group insurance provided for 
 61.9   former employees by the district.  The amount necessary must be 
 61.10  calculated according to standards established by the advisory 
 61.11  council on uniform financial accounting and reporting 
 61.12  standards department. 
 61.13     Sec. 9.  Minnesota Statutes 1998, section 123B.86, 
 61.14  subdivision 1, is amended to read: 
 61.15     Subdivision 1.  [GENERAL PROVISIONS.] A district shall 
 61.16  provide equal transportation within the district for all school 
 61.17  children to any school when transportation is deemed necessary 
 61.18  by the school board because of distance or traffic condition in 
 61.19  like manner and form as provided in sections 123B.88 and 124.223 
 61.20  123B.92, when applicable. 
 61.21     Sec. 10.  Minnesota Statutes 1998, section 123B.88, 
 61.22  subdivision 3, is amended to read: 
 61.23     Subd. 3.  [TRANSPORTATION SERVICES CONTRACTS.] The board 
 61.24  may contract for the furnishing of authorized transportation 
 61.25  under rules established by the commissioner section 123B.52, and 
 61.26  may purchase gasoline and furnish same to a contract carrier for 
 61.27  use in the performance of a contract with the school district 
 61.28  for transportation of school children to and from school. 
 61.29     Sec. 11.  Minnesota Statutes 1998, section 124D.081, 
 61.30  subdivision 6, is amended to read: 
 61.31     Subd. 6.  [PREPAREDNESS REVENUE.] (a) A qualifying school 
 61.32  district is eligible for first-grade preparedness revenue equal 
 61.33  to the basic formula allowance for that year times the number of 
 61.34  children five years of age or older enrolled in a kindergarten 
 61.35  program at the site on October 1 of the previous year times .53. 
 61.36     (b) This revenue must supplement and not replace 
 62.1   compensatory revenue that the district uses for the same or 
 62.2   similar purposes under chapters 120B, 123A, 123B, 124D, 126C, 
 62.3   and 127A. 
 62.4      (c) A pupil enrolled in the first grade preparedness 
 62.5   program at a qualifying school site is eligible for 
 62.6   transportation under section 123B.88, subdivision 1.  
 62.7      (d) First grade preparedness revenue paid to a charter 
 62.8   school for which a school district is providing transportation 
 62.9   according to section 124D.10, subdivision 16, shall be decreased 
 62.10  by an amount equal to the product of $170 the formula allowance 
 62.11  according to section 126C.10, subdivision 2, times .0485 times 
 62.12  the pupil units calculated according to paragraph (a).  This 
 62.13  amount shall be paid to the school district for transportation 
 62.14  costs.  
 62.15     Sec. 12.  Minnesota Statutes 1999 Supplement, section 
 62.16  124D.10, subdivision 3, is amended to read: 
 62.17     Subd. 3.  [SPONSOR.] A school board,; intermediate school 
 62.18  district school board,; education districts district organized 
 62.19  under sections 123A.15 to 123A.19,; charitable organization 
 62.20  under section 501(c)(3) of the Internal Revenue Code of 1986 
 62.21  that is a member of the Minnesota council of nonprofits, 
 62.22  registered with the attorney general's office, and reports an 
 62.23  end-of-year fund balance of at least $1,000,000; Minnesota 
 62.24  private college, that grants two- or four-year degrees and is 
 62.25  registered with the higher education services office under 
 62.26  chapter 136A; community college, state university, or technical 
 62.27  college, governed by the board of trustees of the Minnesota 
 62.28  state colleges and universities; or the University of Minnesota 
 62.29  may sponsor one or more charter schools. 
 62.30     <b>EFFECTIVE DATE:</b>  This section is effective the day 
 62.31  following final enactment. 
 62.32     Sec. 13.  Minnesota Statutes 1999 Supplement, section 
 62.33  124D.10, subdivision 4, is amended to read: 
 62.34     Subd. 4.  [FORMATION OF SCHOOL.] (a) A sponsor may 
 62.35  authorize one or more licensed teachers under section 122A.18, 
 62.36  subdivision 1, to operate a charter school subject to approval 
 63.1   by the commissioner.  A school board or a board or designee of a 
 63.2   higher education institution must vote on charter school 
 63.3   application for sponsorship no later than 90 days after 
 63.4   receiving the application.  After 90 days, the applicant may 
 63.5   apply to the commissioner.  If a school board or a board or 
 63.6   designee of a higher education institution elects not to sponsor 
 63.7   a charter school, the applicant may appeal the board's decision 
 63.8   of the school board or higher education institution board or 
 63.9   designee to the commissioner.  If the commissioner authorizes 
 63.10  the school, the commissioner must sponsor the school according 
 63.11  to this section.  The school must be organized and operated as a 
 63.12  cooperative under chapter 308A or nonprofit corporation under 
 63.13  chapter 317A.  
 63.14     (b) Before the operators may form and operate a school, the 
 63.15  sponsor must file an affidavit with the commissioner stating its 
 63.16  intent to authorize a charter school.  The affidavit must state 
 63.17  the terms and conditions under which the sponsor would authorize 
 63.18  a charter school.  The charter school developers must submit the 
 63.19  charter school proposal and affidavit to the commissioner 
 63.20  quarterly on dates the commissioner determines and announces in 
 63.21  advance.  The commissioner must approve or disapprove the 
 63.22  sponsor's proposed authorization within 60 days of receipt of 
 63.23  receiving the affidavit.  Failure to obtain commissioner 
 63.24  approval precludes a sponsor from authorizing the charter school 
 63.25  that was the subject of the affidavit.  The commissioner shall 
 63.26  organize and facilitate an orderly review of charter school 
 63.27  proposals.  The commissioner may appoint a review committee to 
 63.28  assist in the review process.  The committee may review 
 63.29  applications and participate in interviews with applicants.  The 
 63.30  committee's role shall be solely advisory.  The commissioner 
 63.31  shall complete the review and decide to grant or not grant a new 
 63.32  charter within 60 days of receiving the application.  
 63.33     (c) The operators authorized to organize and operate a 
 63.34  school must hold an election for members of the school's board 
 63.35  of directors in a timely manner after the school is operating.  
 63.36  Any staff members who are employed at the school, including 
 64.1   teachers providing instruction under a contract with a 
 64.2   cooperative, and all parents of children enrolled in the school 
 64.3   may participate in the election.  Licensed teachers employed at 
 64.4   the school, including teachers providing instruction under a 
 64.5   contract with a cooperative, must be a majority of the members 
 64.6   of the board of directors, unless the commissioner waives the 
 64.7   requirement for the school.  A provisional board may operate 
 64.8   before the election of the school's board of directors.  Board 
 64.9   of director meetings must comply with section 471.705. 
 64.10     (d) The granting or renewal of a charter by a sponsoring 
 64.11  entity must not be conditioned upon the bargaining unit status 
 64.12  of the employees of the school.  
 64.13     <b>EFFECTIVE DATE:</b>  This section is effective the day 
 64.14  following final enactment. 
 64.15     Sec. 14.  Minnesota Statutes 1999 Supplement, section 
 64.16  124D.10, subdivision 6, is amended to read: 
 64.17     Subd. 6.  [CONTRACT.] The sponsor's authorization for a 
 64.18  charter school must be in the form of a written contract signed 
 64.19  by the sponsor and the board of directors of the charter 
 64.20  school.  The contract must be completed within 90 days of the 
 64.21  commissioner's approval of the sponsor's proposed 
 64.22  authorization.  The contract for a charter school must be in 
 64.23  writing and contain at least the following: 
 64.24     (1) a description of a program that carries out one or more 
 64.25  of the purposes in subdivision 1; 
 64.26     (2) specific outcomes pupils are to achieve under 
 64.27  subdivision 10; 
 64.28     (3) admission policies and procedures; 
 64.29     (4) management and administration of the school; 
 64.30     (5) requirements and procedures for program and financial 
 64.31  audits; 
 64.32     (6) how the school will comply with subdivisions 8, 13, 16, 
 64.33  and 23; 
 64.34     (7) assumption of liability by the charter school; 
 64.35     (8) types and amounts of insurance coverage to be obtained 
 64.36  by the charter school; 
 65.1      (9) the term of the contract, which may be up to three 
 65.2   years for the first term and may be renewed for up to five years 
 65.3   for subsequent terms if the sponsor determines that the charter 
 65.4   school board of directors and operators have substantially 
 65.5   complied with the contract terms; and 
 65.6      (10) if the board of directors or the operators of the 
 65.7   charter school provide special instruction and services for 
 65.8   children with a disability under sections 125A.03 to 125A.24, 
 65.9   and 125A.65, a description of the financial parameters within 
 65.10  which the charter school will operate to provide the special 
 65.11  instruction and services to children with a disability. 
 65.12     <b>EFFECTIVE DATE:</b>  This section is effective the day 
 65.13  following final enactment. 
 65.14     Sec. 15.  Minnesota Statutes 1999 Supplement, section 
 65.15  124D.10, subdivision 8, is amended to read: 
 65.16     Subd. 8.  [STATE AND LOCAL REQUIREMENTS.] (a) A charter 
 65.17  school shall meet all applicable state and local health and 
 65.18  safety requirements. 
 65.19     (b) A school sponsored by a school board may be located in 
 65.20  any district, unless the school board of the district of the 
 65.21  proposed location disapproves by written resolution.  If such a 
 65.22  board denies a request to locate within its boundaries a charter 
 65.23  school sponsored by another school board, the sponsoring school 
 65.24  board may appeal to the commissioner.  If the commissioner 
 65.25  authorizes the school, the commissioner must sponsor the school. 
 65.26     (c) A charter school must be nonsectarian in its programs, 
 65.27  admission policies, employment practices, and all other 
 65.28  operations.  A sponsor may not authorize a charter school or 
 65.29  program that is affiliated with a nonpublic sectarian school or 
 65.30  a religious institution. 
 65.31     (d) Charter schools must not be used as a method of 
 65.32  providing education or generating revenue for students who are 
 65.33  being home-schooled. 
 65.34     (e) The primary focus of a charter school must be to 
 65.35  provide a comprehensive program of instruction for at least one 
 65.36  grade or age group from five through 18 years of age.  
 66.1   Instruction may be provided to people younger than five years 
 66.2   and older than 18 years of age. 
 66.3      (f) A charter school may not charge tuition. 
 66.4      (g) A charter school is subject to and must comply with 
 66.5   chapter 363 and section 121A.04. 
 66.6      (h) A charter school is subject to and must comply with The 
 66.7   Pupil Fair Dismissal Act, sections 121A.40 to 121A.56, and the 
 66.8   Minnesota Public School Fee law, sections 123B.34 to 123B.39. 
 66.9      (i) A charter school is subject to the same financial 
 66.10  audits, audit procedures, and audit requirements as a district.  
 66.11  The audit must be consistent comply with the requirements of 
 66.12  sections 123B.75 to 123B.83, except to the extent deviations are 
 66.13  necessary because of the program at the school.  The department 
 66.14  of children, families, and learning, state auditor, or 
 66.15  legislative auditor may conduct financial, program, or 
 66.16  compliance audits.  A charter school determined to be in 
 66.17  statutory operating debt under sections 123B.81 to 123B.83 must 
 66.18  submit a plan under section 123B.81, subdivision 4. 
 66.19     (j) A charter school is a district for the purposes of tort 
 66.20  liability under chapter 466. 
 66.21     <b>EFFECTIVE DATE:</b>  This section is effective the day 
 66.22  following final enactment. 
 66.23     Sec. 16.  Minnesota Statutes 1999 Supplement, section 
 66.24  124D.10, subdivision 11, is amended to read: 
 66.25     Subd. 11.  [EMPLOYMENT AND OTHER OPERATING MATTERS.] A 
 66.26  charter school must employ or contract with necessary teachers, 
 66.27  as defined by section 122A.15, subdivision 1, who hold valid 
 66.28  licenses to perform the particular service for which they are 
 66.29  employed in the school.  The charter school's state aid may be 
 66.30  reduced under section 127A.42 if the school employs a teacher 
 66.31  who does not hold a valid teaching license or permit in a public 
 66.32  school or is not otherwise approved by the board of teaching.  
 66.33  The school may employ necessary employees who are not required 
 66.34  to hold teaching licenses to perform duties other than teaching 
 66.35  and may contract for other services.  The school may discharge 
 66.36  teachers and nonlicensed employees.  A person, without holding a 
 67.1   valid administrator's license, may perform administrative, 
 67.2   supervisory, or instructional leadership duties. 
 67.3      The board of directors also shall decide matters related to 
 67.4   the operation of the school, including budgeting, curriculum and 
 67.5   operating procedures.  
 67.6      <b>EFFECTIVE DATE:</b>  This section is effective the day 
 67.7   following final enactment. 
 67.8      Sec. 17.  Minnesota Statutes 1999 Supplement, section 
 67.9   124D.10, subdivision 14, is amended to read: 
 67.10     Subd. 14.  [ANNUAL PUBLIC REPORTS.] A charter school must 
 67.11  report at least annually to its sponsor and the commissioner the 
 67.12  information required by the sponsor or the commissioner.  The 
 67.13  reports are public data under chapter 13.  
 67.14     Sec. 18.  Minnesota Statutes 1999 Supplement, section 
 67.15  124D.10, subdivision 15, is amended to read: 
 67.16     Subd. 15.  [REVIEW AND COMMENT.] The department must review 
 67.17  and comment on the evaluation, by the chartering school district 
 67.18  sponsor, of the performance of a charter school before the 
 67.19  charter school's contract is renewed.  A sponsor shall monitor 
 67.20  and evaluate the fiscal and student performance of the school, 
 67.21  and may for this purpose annually assess the school up to $10 
 67.22  per student up to a maximum of $3,500.  The information from for 
 67.23  the review and comment shall be reported by the sponsor to the 
 67.24  commissioner of children, families, and learning in a timely 
 67.25  manner.  Periodically, the commissioner shall report trends or 
 67.26  suggestions based on the evaluation of charter school contracts 
 67.27  to the education committees of the state legislature.  
 67.28     <b>EFFECTIVE DATE:</b>  This section is effective the day 
 67.29  following final enactment. 
 67.30     Sec. 19.  Minnesota Statutes 1999 Supplement, section 
 67.31  124D.10, subdivision 23, is amended to read: 
 67.32     Subd. 23.  [CAUSES FOR NONRENEWAL OR TERMINATION OF CHARTER 
 67.33  SCHOOL CONTRACT.] (a) The duration of the contract with a 
 67.34  sponsor must be for the term contained in the contract according 
 67.35  to subdivision 6.  The sponsor may or may not renew a contract 
 67.36  at the end of the term for any ground listed in paragraph (b).  
 68.1   A sponsor may unilaterally terminate a contract during the term 
 68.2   of the contract for any ground listed in paragraph (b).  At 
 68.3   least 60 days before not renewing or terminating a contract, the 
 68.4   sponsor shall notify the board of directors of the charter 
 68.5   school of the proposed action in writing.  The notice shall 
 68.6   state the grounds for the proposed action in reasonable detail 
 68.7   and that the charter school's board of directors may request in 
 68.8   writing an informal hearing before the sponsor within 14 days of 
 68.9   receiving notice of nonrenewal or termination of the contract.  
 68.10  Failure by the board of directors to make a written request for 
 68.11  a hearing within the 14-day period shall be treated as 
 68.12  acquiescence to the proposed action.  Upon receiving a timely 
 68.13  written request for a hearing, the sponsor shall give reasonable 
 68.14  notice to the charter school's board of directors of the hearing 
 68.15  date.  The sponsor shall conduct an informal hearing before 
 68.16  taking final action.  The sponsor shall take final action to 
 68.17  renew or not renew a contract by the last day of classes in the 
 68.18  school year.  If the sponsor is a local board, the school's 
 68.19  board of directors may appeal the sponsor's decision to the 
 68.20  commissioner. 
 68.21     (b) A contract may be terminated or not renewed upon any of 
 68.22  the following grounds: 
 68.23     (1) failure to meet the requirements for pupil performance 
 68.24  contained in the contract; 
 68.25     (2) failure to meet generally accepted standards of fiscal 
 68.26  management; 
 68.27     (3) violations of law; or 
 68.28     (4) other good cause shown. 
 68.29     If a contract is terminated or not renewed, the school must 
 68.30  be dissolved according to the applicable provisions of chapter 
 68.31  308A or 317A, except when the commissioner approves the decision 
 68.32  of a different eligible sponsor to authorize the charter school. 
 68.33     (c) The commissioner, after providing reasonable notice to 
 68.34  the board of directors of a charter school and the existing 
 68.35  sponsor, and after providing an opportunity for a public 
 68.36  hearing, may terminate the existing sponsorial relationship if 
 69.1   the charter school has a history of: 
 69.2      (1) financial mismanagement; or 
 69.3      (2) repeated violations of the law. 
 69.4      <b>EFFECTIVE DATE:</b>  This section is effective the day 
 69.5   following final enactment. 
 69.6      Sec. 20.  Minnesota Statutes 1999 Supplement, section 
 69.7   124D.11, subdivision 4, is amended to read: 
 69.8      Subd. 4.  [BUILDING LEASE AID.] When a charter school finds 
 69.9   it economically advantageous to rent or lease a building or land 
 69.10  for any instructional purposes and it determines that the total 
 69.11  operating capital revenue under section 126C.10, subdivision 13, 
 69.12  is insufficient for this purpose, it may apply to the 
 69.13  commissioner for building lease aid for this purpose.  Criteria 
 69.14  for aid approval and revenue uses shall be as defined for the 
 69.15  building lease levy in section 126C.40, subdivision 1, 
 69.16  paragraphs (a) and (b).  A charter school is eligible for 
 69.17  building lease aid.  The criteria for approving lease 
 69.18  applications under this subdivision must include the: 
 69.19     (1) reasonableness of the price; and 
 69.20     (2) conformity of the lease to state laws and rules. 
 69.21  The proceeds of the lease aid must not be used for custodial or 
 69.22  other maintenance services.  The amount of building lease aid 
 69.23  per pupil unit served for a charter school for any year shall 
 69.24  not exceed the lesser of (a) 90 percent of the approved lease 
 69.25  cost or (b) the product of the pupil units served for the 
 69.26  current school year times $1,500.  Existing charter schools must 
 69.27  apply by January 15 of the fiscal year in which the lease 
 69.28  applies to be considered for this program.  The application must 
 69.29  include the cost of the lease and confirmation that a 
 69.30  certificate of occupancy has been issued for the building.  The 
 69.31  commissioner must act on an application in this section within 
 69.32  30 calendar days of receiving the application. 
 69.33     Sec. 21.  Minnesota Statutes 1999 Supplement, section 
 69.34  124D.11, subdivision 6, is amended to read: 
 69.35     Subd. 6.  [OTHER AID, GRANTS, REVENUE.] (a) A charter 
 69.36  school is eligible to receive other aids, grants, and revenue 
 70.1   according to chapters 120A to 129C, as though it were a district.
 70.2      (b) Notwithstanding paragraph (a), a charter school may not 
 70.3   receive aid, a grant, or revenue if a levy is required to obtain 
 70.4   the money, except as otherwise provided in this section.  
 70.5      (c) Federal aid received by the state must be paid to the 
 70.6   school, if it qualifies for the aid as though it were a school 
 70.7   district. 
 70.8      (d) A charter school may receive money from any source for 
 70.9   capital facilities needs.  In the year-end report to the 
 70.10  commissioner of children, families, and learning, the charter 
 70.11  school shall report the total amount of funds received from 
 70.12  grants and other outside sources. 
 70.13     (e) Notwithstanding paragraph (a) or (b), a charter school 
 70.14  is eligible may apply for a grant to receive the aid portion of 
 70.15  integration revenue under section 124D.86, subdivision 3, for 
 70.16  enrolled students who are residents of a district that is 
 70.17  eligible for integration revenue if the enrollment of the pupil 
 70.18  in the charter school contributes to desegregation or 
 70.19  integration purposes.  The commissioner shall determine grant 
 70.20  recipients and may adopt application guidelines.  The grants 
 70.21  must be competitively determined and must demonstrate that 
 70.22  enrolling pupils in the charter school contributes to 
 70.23  desegregation or integration purposes as determined by the 
 70.24  commissioner.  If the charter school has elected not to provide 
 70.25  transportation under section 124D.10, subdivision 16, the aid 
 70.26  shall be reduced by the amount per pupil unit specified for the 
 70.27  district where the charter school is located under section 
 70.28  123B.92, subdivision 8. 
 70.29     <b>EFFECTIVE DATE:</b>  This section is effective the day 
 70.30  following final enactment. 
 70.31     Sec. 22.  Minnesota Statutes 1998, section 124D.128, 
 70.32  subdivision 4, is amended to read: 
 70.33     Subd. 4.  [TRANSPORTATION.] A district must report data to 
 70.34  the department as required by the department to account for 
 70.35  learning year summer transportation expenditures for this 
 70.36  program must be included in nonregular transportation according 
 71.1   to sections 124.225, subdivision 8; and 124.226, subdivision 4.  
 71.2      Sec. 23.  [125B.22] [INTERNET ACCESS FOR STUDENTS.] 
 71.3      (a) Recognizing the difference between school libraries, 
 71.4   school computer labs, and school media centers, which serve 
 71.5   unique educational purposes, and public libraries, which are 
 71.6   designed for public inquiry, all school computers with access to 
 71.7   the Internet available for student use must be equipped, to the 
 71.8   maximum extent permitted under law, to restrict, including by 
 71.9   use of available software filtering technology, all student 
 71.10  access to material that is reasonably believed to be obscene or 
 71.11  child pornography or material harmful to minors under federal or 
 71.12  state law. 
 71.13     (b) A school is not required to purchase filtering 
 71.14  technology if the school would incur more than incidental 
 71.15  expense in making the purchase. 
 71.16     Sec. 24.  [134.77] [INTERNET ACCESS FOR CHILDREN.] 
 71.17     (a) Recognizing the difference between public libraries, 
 71.18  which are designed for public inquiry, and school libraries, 
 71.19  school computer labs, and school media centers, which serve 
 71.20  unique educational purposes, all public library computers with 
 71.21  access to the Internet available for use by children under the 
 71.22  age of 17 must be equipped, to the maximum extent permitted 
 71.23  under law, to restrict, including by use of available software 
 71.24  filtering technology, all access by children to material that is 
 71.25  reasonably believed to be obscene or child pornography or 
 71.26  material harmful to minors under federal or state law. 
 71.27     (b) A public library is not required to purchase filtering 
 71.28  technology if the public library would incur more than 
 71.29  incidental expense in making the purchase. 
 71.30     Sec. 25.  Minnesota Statutes 1998, section 471.15, is 
 71.31  amended to read: 
 71.32     471.15 [RECREATIONAL FACILITIES BY MUNICIPALITY, VETERANS; 
 71.33  BONDS.] 
 71.34     (a) Any home rule charter or statutory city or any town, 
 71.35  county, school district, or any board thereof, or any 
 71.36  incorporated post of the American Legion or any other 
 72.1   incorporated veterans' organization, may expend not to exceed 
 72.2   $800 in any one year, for the purchase of awards and trophies 
 72.3   and may operate a program of public recreation and playgrounds; 
 72.4   acquire, equip, and maintain land, buildings, or other 
 72.5   recreational facilities, including an outdoor or indoor swimming 
 72.6   pool; and expend funds for the operation of such program 
 72.7   pursuant to the provisions of sections 471.15 to 471.19.  The 
 72.8   city, town, county or school district may issue bonds pursuant 
 72.9   to chapter 475 for the purpose of carrying out the powers 
 72.10  granted by this section.  The city, town, county or school 
 72.11  district may operate the program and facilities directly or 
 72.12  establish one or more recreation boards to operate all or 
 72.13  various parts of them. 
 72.14     (b) A home rule charter or statutory city, a county, or a 
 72.15  town may expend funds for the purpose of supporting student 
 72.16  academic or extracurricular activities sponsored by the local 
 72.17  school district. 
 72.18     Sec. 26.  Laws 1999, chapter 241, article 5, section 18, 
 72.19  subdivision 5, is amended to read: 
 72.20     Subd. 5.  [CHARTER SCHOOL BUILDING LEASE AID.] For building 
 72.21  lease aid according to Minnesota Statutes, section 124D.11, 
 72.22  subdivision 4: 
 72.23       $2,992,000 $ 5,981,000     .....     2000 
 72.24       $3,616,000 $10,807,000     .....     2001 
 72.25     The 2000 appropriation includes $194,000 for 1999 and 
 72.26  $2,798,000 $5,787,000 for 2000. 
 72.27     The 2001 appropriation includes $311,000 $643,000 for 2000 
 72.28  and $3,305,000 $10,164,000 for 2001.  
 72.29     <b>EFFECTIVE DATE:</b>  This section is effective the day 
 72.30  following final enactment. 
 72.31     Sec. 27.  Laws 1999, chapter 241, article 5, section 18, 
 72.32  subdivision 6, is amended to read: 
 72.33     Subd. 6.  [CHARTER SCHOOL START-UP GRANTS.] For charter 
 72.34  school start-up cost aid under Minnesota Statutes, section 
 72.35  124D.11: 
 72.36       $1,789,000 $1,955,000   .....     2000 
 73.1        $1,876,000 $2,926,000   .....     2001 
 73.2      The 2000 appropriation includes $100,000 for 1999 and 
 73.3   $1,689,000 $1,855,000 for 2000.  
 73.4      The 2001 appropriation includes $188,000 $206,000 for 
 73.5   1999 2000 and $1,688,000 $2,720,000 for 2001. 
 73.6      Any balance in the first year does not cancel but is 
 73.7   available in the second year.  This appropriation may also be 
 73.8   used for grants to convert existing schools into charter schools.
 73.9      <b>EFFECTIVE DATE:</b>  This section is effective the day 
 73.10  following final enactment. 
 73.11     Sec. 28.  [RESIDENTIAL ACADEMIES.] 
 73.12     The commissioner may not withdraw or reallocate funds from 
 73.13  a recipient who has been awarded a grant under Laws 1998, 
 73.14  chapter 398, article 5, section 46, and has received approval 
 73.15  for updated capital and operating budget plans after June 1, 
 73.16  1999, without the prior consent of the legislature. 
 73.17     <b>EFFECTIVE DATE:</b>  This section is effective the day 
 73.18  following final enactment. 
 73.19     Sec. 29.  [APPROPRIATION.] 
 73.20     Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
 73.21  LEARNING.] The sum indicated in this section is appropriated 
 73.22  from the general fund to the commissioner of children, families, 
 73.23  and learning for the fiscal year designated. 
 73.24     Subd. 2.  [RECRUITMENT OF EXCELLENT TEACHERS; LOAN 
 73.25  FORGIVENESS PROGRAM.] For a loan forgiveness program to help 
 73.26  recruit excellent teachers under Minnesota Statutes, section 
 73.27  122A.65: 
 73.28       $500,000     .....     2001
 73.29                             ARTICLE 6 
 73.30                     NUTRITION; FUND TRANSFERS 
 73.31     Section 1.  Minnesota Statutes 1998, section 124D.111, 
 73.32  subdivision 1, is amended to read: 
 73.33     Subdivision 1.  [SCHOOL LUNCH AID COMPUTATION.] Each school 
 73.34  year, the state must pay districts participating in the national 
 73.35  school lunch program the amount of 6.5 eight cents for each full 
 73.36  paid, reduced, and free student lunch served to students in the 
 74.1   district. 
 74.2      Sec. 2.  Minnesota Statutes 1999 Supplement, section 
 74.3   124D.1155, subdivision 2, is amended to read: 
 74.4      Subd. 2.  [ELIGIBILITY.] An applicant for a grant must be a 
 74.5   public or nonpublic elementary school that participates in the 
 74.6   federal school breakfast and lunch programs.  The commissioner 
 74.7   must give first priority to schools where at least 33 percent of 
 74.8   the lunches the school served to children during the second 
 74.9   preceding school year were provided free or at a reduced price.  
 74.10  The commissioner must give second priority to all other public 
 74.11  or nonpublic elementary schools. 
 74.12     Sec. 3.  Laws 1999, chapter 241, article 6, section 14, 
 74.13  subdivision 2, is amended to read: 
 74.14     Subd. 2.  [ABATEMENT AID.] For abatement aid according to 
 74.15  Minnesota Statutes, section 127A.49:  
 74.16        $9,110,000 $9,577,000   .....     2000 
 74.17        $8,947,000 $8,279,000   .....     2001 
 74.18     The 2000 appropriation includes $1,352,000 for 1999 and 
 74.19  $7,758,000 $8,225,000 for 2000.  
 74.20     The 2001 appropriation includes $861,000 $914,000 for 2000 
 74.21  and $8,086,000 $7,365,000 for 2001.  
 74.22     Sec. 4.  Laws 1999, chapter 241, article 6, section 14, 
 74.23  subdivision 3, is amended to read: 
 74.24     Subd. 3.  [NONPUBLIC PUPIL AID.] For nonpublic pupil 
 74.25  education aid according to Minnesota Statutes, sections 123B.40 
 74.26  to 123B.48 and 123B.87: 
 74.27       $10,996,000 $11,552,000   .....      2000 
 74.28       $11,878,000 $12,757,000   .....      2001 
 74.29     The 2000 appropriation includes $970,000 for 1999 and 
 74.30  $10,026,000 $10,582,000 for 2000. 
 74.31     The 2001 appropriation includes $1,114,000 $1,175,000 for 
 74.32  2000 and $10,764,000 $11,582,000 for 2001.  
 74.33     The department shall recompute the maximum allotments 
 74.34  established on March 1, 1999, for fiscal year 2000 under 
 74.35  Minnesota Statutes, sections 123B.42, subdivision 3, and 
 74.36  123B.44, subdivision 6, to reflect the amount appropriated in 
 75.1   this subdivision for fiscal year 2000. 
 75.2      Sec. 5.  Laws 1999, chapter 241, article 6, section 14, 
 75.3   subdivision 4, is amended to read: 
 75.4      Subd. 4.  [CONSOLIDATION TRANSITION AID.] For districts 
 75.5   consolidating under Minnesota Statutes, section 123A.485: 
 75.6        $451,000 $563,000      .....     2000
 75.7        $375,000 $455,000      .....     2001
 75.8      The 2000 appropriation includes $113,000 for 1999 and 
 75.9   $338,000 $450,000 for 2000. 
 75.10     The 2001 appropriation includes $37,000 $50,000 for 2000 
 75.11  and $338,000 $405,000 for 2001. 
 75.12     Any balance in the first year does not cancel but is 
 75.13  available in the second year. 
 75.14     Sec. 6.  Laws 1999, chapter 241, article 6, section 14, 
 75.15  subdivision 5, is amended to read: 
 75.16     Subd. 5.  [NONPUBLIC PUPIL TRANSPORTATION.] For nonpublic 
 75.17  pupil transportation aid under Minnesota Statutes, section 
 75.18  123B.92, subdivision 9: 
 75.19       $18,586,000 $20,358,000   .....     2000 
 75.20       $20,922,000 $21,333,000   .....     2001 
 75.21     The 2000 appropriation includes $1,848,000 for 2000 1999 
 75.22  and $16,738,000 $18,510,000 for 2001 2000. 
 75.23     The 2001 appropriation includes $1,860,000 $2,057,000 for 
 75.24  2000 and $19,062,000 $19,276,000 for 2001. 
 75.25     Sec. 7.  [FUND TRANSFERS.] 
 75.26     Subdivision 1.  [LAKEVILLE.] Notwithstanding Minnesota 
 75.27  Statutes, section 123B.79 or 123B.80, on June 30, 2000, 
 75.28  independent school district No. 194, Lakeville, may permanently 
 75.29  transfer up to $1,000,000 from its reserved account for 
 75.30  operating capital to the unreserved, undesignated general fund. 
 75.31     Subd. 2.  [CHOKIO-ALBERTA.] (a) Notwithstanding Minnesota 
 75.32  Statutes, section 123B.58, 123B.79, or 123B.80, on June 30, 
 75.33  2000, upon approval of the commissioner of children, families, 
 75.34  and learning, independent school district No. 771, 
 75.35  Chokio-Alberta, may permanently transfer up to $121,000 from its 
 75.36  reserved account for disabled accessibility to its undesignated 
 76.1   general fund balance. 
 76.2      (b) Prior to making the fund transfer, independent school 
 76.3   district No. 771, Chokio-Alberta, must demonstrate to the 
 76.4   commissioner's satisfaction that the district's school buildings 
 76.5   are accessible to students or employees with disabilities. 
 76.6      Subd. 3.  [MAHTOMEDI.] Notwithstanding Minnesota Statutes, 
 76.7   sections 123B.79, 123B.80, and 475.61, subdivision 4, on June 
 76.8   30, 2000, independent school district No. 832, Mahtomedi, may 
 76.9   permanently transfer the balance of its debt redemption fund to 
 76.10  its capital account in its general fund without making a levy 
 76.11  reduction to purchase land for a school facility. 
 76.12     Subd. 4.  [NORMAN COUNTY EAST.] Notwithstanding Minnesota 
 76.13  Statutes, sections 123B.79, 123B.80, and 475.61, subdivision 4, 
 76.14  on June 30, 2000, independent school district No. 2215, Norman 
 76.15  County East, may permanently transfer up to $419,000 from its 
 76.16  building construction fund to the reserved account for operating 
 76.17  capital in the general fund without making a levy reduction. 
 76.18     Subd. 5.  [BROWERVILLE.] Notwithstanding Minnesota 
 76.19  Statutes, sections 123B.79, 123B.80, and 475.61, subdivision 4, 
 76.20  on June 30, 2000, independent school district No. 787, 
 76.21  Browerville, may permanently transfer up to $110,000 from its 
 76.22  debt redemption fund to its general fund without making a levy 
 76.23  reduction. 
 76.24     Subd. 6.  [ST. FRANCIS.] Notwithstanding Minnesota 
 76.25  Statutes, section 123B.53, on June 30, 2000, independent school 
 76.26  district No. 15, St. Francis, may permanently transfer $534,000 
 76.27  from its debt service fund to the general fund to help the 
 76.28  district out of statutory operating debt without making a levy 
 76.29  reduction. 
 76.30     Subd. 7.  [STAPLES-MOTLEY.] Notwithstanding Minnesota 
 76.31  Statutes, sections 123B.79, 123B.80, and 475.61, subdivision 4, 
 76.32  on May 31, 2000, independent school district No. 2170, 
 76.33  Staples-Motley, may permanently transfer up to $71,000 from the 
 76.34  debt service account of the former independent school district 
 76.35  No. 483, Motley, to the operating capitol fund of independent 
 76.36  school district No. 2170, Staples-Motley, without making a levy 
 77.1   reduction. 
 77.2      Subd. 8.  [FERGUS FALLS.] Notwithstanding Minnesota 
 77.3   Statutes, section 123B.79, 123B.80, or 475.61, subdivision 4, on 
 77.4   June 30, 2000, independent school district No. 544, Fergus 
 77.5   Falls, may permanently transfer up to $200,000 from the debt 
 77.6   redemption fund to the general fund without making a levy 
 77.7   reduction. 
 77.8      Subd. 9.  [LAKEVIEW.] Notwithstanding any law to the 
 77.9   contrary, independent school district No. 2167, Lakeview, is 
 77.10  authorized to retain a cooperative facilities grant awarded in 
 77.11  fiscal year 1995, and may permanently transfer that amount to 
 77.12  its undesignated general fund balance, to be used to bring its 
 77.13  bleachers into compliance with Minnesota Statutes, section 
 77.14  16B.616. 
 77.15     Subd. 10.  [WINONA.] 
 77.16     Notwithstanding Minnesota Statutes, section 123B.79, 
 77.17  123B.80, 124D.135, 124D.20, or 126C.10, subdivision 14, on June 
 77.18  30, 2000, independent school district No. 861, Winona, may 
 77.19  permanently transfer up to $300,000 from its reserved accounts 
 77.20  and undesignated balance in the community service fund and up to 
 77.21  $2,000,000 from its reserve for operating capital account in the 
 77.22  general fund to the undesignated balance in its general fund. 
 77.23     <b>EFFECTIVE DATE:</b>  This section is effective the day 
 77.24  following final enactment. 
 77.25     Sec. 8.  [LEVY RESTORATION; INDEPENDENT SCHOOL DISTRICT NO. 
 77.26  2859, GLENCOE-SILVER LAKE.] 
 77.27     (a) Independent school district No. 2859, Glencoe-Silver 
 77.28  Lake, may levy up to one-third of the total of the sum from 
 77.29  paragraph (b) in each of the fiscal years 2002, 2003, and 2004. 
 77.30     (b) For each of the fiscal years of 1999, 2000, and 2001, 
 77.31  the amount of the levy is equal to the sum of: 
 77.32     (1) the difference between the maximum amount of levy 
 77.33  authorized by law for the fiscal year and the amount of levy 
 77.34  certified by independent school district No. 2859, 
 77.35  Glencoe-Silver Lake, under Minnesota Statutes 1996 and 1997 
 77.36  Supplement, section 124.2725; 
 78.1      (2) the difference between the maximum amount of levy 
 78.2   authorized by law for the fiscal year and the amount of levy 
 78.3   certified by independent school district No. 2859, 
 78.4   Glencoe-Silver Lake, under Minnesota Statutes, section 126C.42; 
 78.5   and 
 78.6      (3) the difference between the maximum amount of levy 
 78.7   authorized by law for the fiscal year and the amount of levy 
 78.8   certified by independent school district No. 2859, 
 78.9   Glencoe-Silver Lake, under Minnesota Statutes, section 126C.22. 
 78.10     <b>EFFECTIVE DATE:</b>  This section is effective for taxes 
 78.11  payable in 2001. 
 78.12                             ARTICLE 7 
 78.13                             LIBRARIES 
 78.14     Section 1.  Laws 1997, First Special Session chapter 4, 
 78.15  article 8, section 4, as amended by Laws 1998, chapter 398, 
 78.16  article 7, section 1, and Laws 1999, chapter 241, article 8, 
 78.17  section 1, is amended to read: 
 78.18     Sec. 4.  [LIBRARY PROJECT.] 
 78.19     Subdivision 1.  [ESTABLISHMENT.] Notwithstanding law to the 
 78.20  contrary and subject to approvals in subdivision 2, a public 
 78.21  library may operate as a library project jointly with the school 
 78.22  library at Nashwauk-Keewatin high school, located in the city of 
 78.23  Nashwauk.  The public library is established to serve persons 
 78.24  within the boundaries of independent school district No. 319, 
 78.25  except the city of Keewatin. 
 78.26     Subd. 2.  [APPROVALS.] Operation of the public library is 
 78.27  contingent upon the governing bodies of cities, towns, and 
 78.28  unorganized townships within the geographical boundaries of 
 78.29  independent school district No. 319, except for the city of 
 78.30  Keewatin, entering into a joint powers agreement under Minnesota 
 78.31  Statutes 1998, section 471.59, to accomplish the purpose of this 
 78.32  section.  The joint powers agreement must provide for continuing 
 78.33  the library project if one party or more parties to the 
 78.34  agreement withdraws from or fails to enter into the agreement.  
 78.35  For the purposes of this subdivision, the Itasca county board is 
 78.36  designated as the governing body for the unorganized townships. 
 79.1      Subd. 3.  [BOARD; APPOINTMENTS.] The joint powers agreement 
 79.2   in subdivision 2 shall provide for a library board of seven 
 79.3   members as follows:  two members appointed by the school board 
 79.4   of independent school district No. 319, one member appointed by 
 79.5   each town board located within independent school district No. 
 79.6   319 boundaries that is a member of the library district, one 
 79.7   member appointed by the council of the city of Nashwauk, and one 
 79.8   member appointed by the Itasca county board to represent the 
 79.9   unorganized towns within the school district territory. 
 79.10     Subd. 4.  [BOARD TERMS; COMPENSATION.] The library board 
 79.11  members shall serve for the term of the library project.  An 
 79.12  appointing authority may remove for misconduct or neglect any 
 79.13  member it has appointed to the board and may replace that member 
 79.14  by appointment.  Board members shall receive no compensation for 
 79.15  their services but may be reimbursed for actual and necessary 
 79.16  travel expenses incurred in the discharge of library board 
 79.17  duties and activities. 
 79.18     Subd. 5.  [FUNDING.] For taxes payable in 1998, 1999, 2000, 
 79.19  2001, 2002, and 2003 only, and provided that the joint powers 
 79.20  agreement under subdivision 2 has been executed by September 1 
 79.21  of the previous calendar year, the library board may levy a tax 
 79.22  in an amount up to $25,000 annually on property located within 
 79.23  the boundaries of independent school district No. 319, except 
 79.24  the city of Keewatin.  The Itasca county auditor shall collect 
 79.25  the tax and distribute it to the library board.  The levy shall 
 79.26  be assessed against the individual members of the joint powers 
 79.27  agreement.  The money may be used for library staff and for the 
 79.28  purchase of library materials, including computer software.  The 
 79.29  levy must also fund the amount necessary to receive bookmobile 
 79.30  services from the Arrowhead regional library system.  For taxes 
 79.31  payable in 1998, 1999, 2000, 2001, 2002, and 2003 only, the 
 79.32  county may not levy under Minnesota Statutes, section 134.07, 
 79.33  for the areas described in this section. 
 79.34     Subd. 6.  [BUILDING.] The school district shall provide the 
 79.35  physical space and costs associated with operating the library 
 79.36  including, but not limited to, heat, light, telephone service, 
 80.1   and maintenance. 
 80.2      Subd. 7.  [ORGANIZATION.] Immediately after appointment, 
 80.3   the library board shall organize by electing one of its number 
 80.4   as president and one as secretary, and it may appoint other 
 80.5   officers it finds necessary. 
 80.6      Subd. 8.  [DUTIES.] The library board shall adopt bylaws 
 80.7   and regulations for the library and for the conduct of its 
 80.8   business as may be expedient and conformable to law.  It shall 
 80.9   have exclusive control of the expenditure of all money collected 
 80.10  for it.  The library board shall appoint a qualified library 
 80.11  director and other staff, establish the compensation of 
 80.12  employees, and remove any of them for cause.  The library board 
 80.13  may contract with the school board, the regional library board, 
 80.14  or the city in which the library is located to provide 
 80.15  personnel, fiscal, or administrative services.  The contract 
 80.16  shall state the personnel, fiscal, and administrative services 
 80.17  and payments to be provided by each party. 
 80.18     Subd. 9.  [CRITERIA.] The library shall meet all 
 80.19  requirements in statutes and rules applicable to public 
 80.20  libraries and school media centers.  A media supervisor licensed 
 80.21  by the board of teaching may be the director of the library.  
 80.22  Public parking, restrooms, drinking water, and other necessities 
 80.23  shall be easily accessible to library patrons. 
 80.24     <b>EFFECTIVE DATE:</b>  This section is effective the day 
 80.25  following final enactment. 
 80.26     Sec. 2.  Laws 1999, chapter 241, article 8, section 4, 
 80.27  subdivision 5, is amended to read: 
 80.28     Subd. 5.  [LIBRARY FOR THE BLIND.] For compact shelving, 
 80.29  technology, and staffing for the Minnesota library for the blind 
 80.30  and physically handicapped: 
 80.31       $212,000     .....     2000 
 80.32     This appropriation is available until June 30, 2001. 
 80.33     <b>EFFECTIVE DATE:</b>  This section is effective the day 
 80.34  following final enactment. 
 80.35                             ARTICLE 8 
 80.36                           STATE AGENCIES 
 81.1      Section 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
 81.2   LEARNING.] 
 81.3      (a) The sums indicated in this section are appropriated 
 81.4   from the general fund unless otherwise indicated to the 
 81.5   department of children, families, and learning for the fiscal 
 81.6   years designated. 
 81.7        $32,316,000     .....     2000 
 81.8        $29,785,000     .....     2001 
 81.9      (b) Any balance the first year does not cancel but is 
 81.10  available in the second year. 
 81.11     (c) $21,000 each year is from the trunk highway fund. 
 81.12     (d) $673,000 in 2000 and $678,000 in 2001 is for the board 
 81.13  of teaching. 
 81.14     (e) Notwithstanding Minnesota Statutes, section 15.53, 
 81.15  subdivision 2, the commissioner of children, families, and 
 81.16  learning may contract with a school district for a period no 
 81.17  longer than five consecutive years to work in the development or 
 81.18  implementation of the graduation rule.  The commissioner may 
 81.19  contract for services and expertise as necessary.  The contracts 
 81.20  are not subject to Minnesota Statutes, section 16B.06. 
 81.21     (f) $165,000 in 2000 is for the state board of education.  
 81.22  Any functions of the state board of education that are not 
 81.23  specifically transferred to another agency are transferred to 
 81.24  the department of children, families, and learning under 
 81.25  Minnesota Statutes, section 15.039.  For the position that is 
 81.26  classified, upon transferring the responsibilities, the current 
 81.27  incumbent is appointed to the classified position without exam 
 81.28  or probationary period. 
 81.29     (g) $2,000,000 in 2000 is for litigation costs and may only 
 81.30  be used for those purposes.  This appropriation is available 
 81.31  until June 30, 2001.  This is a one-time appropriation. 
 81.32     <b>EFFECTIVE DATE:</b>  This section is effective retroactive to 
 81.33  July 1, 1999. 
 81.34     Sec. 2.  Laws 1999, chapter 241, article 10, section 6, is 
 81.35  amended to read: 
 81.36     Sec. 6.  [APPROPRIATIONS; LOLA AND RUDY PERPICH MINNESOTA 
 82.1   CENTER FOR ARTS EDUCATION.] 
 82.2      The sums indicated in this section are appropriated from 
 82.3   the general fund to the center for arts education for the fiscal 
 82.4   years designated: 
 82.5        $7,239,000     .....     2000
 82.6        $7,400,000     .....     2001
 82.7      Of each year's appropriation, $154,000 is to fund artist 
 82.8   and arts organization participation in the education residency 
 82.9   and education technology projects, $75,000 is for school support 
 82.10  for the residency project, $121,000 is for further development 
 82.11  of the partners:  arts and school for students (PASS) program, 
 82.12  including pilots, and $220,000 $110,000 is to fund the center 
 82.13  for arts education base for asset preservation and facility 
 82.14  repair.  The guidelines for the education residency project and 
 82.15  the pass program shall be developed and defined by the center 
 82.16  for arts education in cooperation with the Minnesota arts 
 82.17  board.  The Minnesota arts board shall participate in the review 
 82.18  and allocation process.  The center for arts education and the 
 82.19  Minnesota arts board shall cooperate to fund these projects. 
 82.20     Any balance in the first year does not cancel but is 
 82.21  available in the second year. 
 82.22     Sec. 3.  [REPEALER.] 
 82.23     Laws 1999, chapter 241, article 10, section 5, is repealed 
 82.24  retroactive to July 1, 1999. 
 82.25     <b>EFFECTIVE DATE:</b>  This section is effective retroactive to 
 82.26  July 1, 1999. 
 82.27                             ARTICLE 9 
 82.28          TECHNICAL, CONFORMING, AND CLARIFYING AMENDMENTS
 82.29     Section 1.  Minnesota Statutes 1998, section 120A.22, 
 82.30  subdivision 3, is amended to read: 
 82.31     Subd. 3.  [PARENT DEFINED; RESIDENCY DETERMINED.] (a) In 
 82.32  this section and sections 120A.24, and 120A.26, and 120A.41, 
 82.33  "parent" means a parent, guardian, or other person having legal 
 82.34  custody of a child.  
 82.35     (b) In sections 125A.03 to 125A.24 and 125A.65, "parent" 
 82.36  means a parent, guardian, or other person having legal custody 
 83.1   of a child under age 18.  For an unmarried pupil age 18 or over, 
 83.2   "parent" means the pupil unless a guardian or conservator has 
 83.3   been appointed, in which case it means the guardian or 
 83.4   conservator. 
 83.5      (c) For purposes of sections 125A.03 to 125A.24 and 
 83.6   125A.65, the school district of residence for an unmarried pupil 
 83.7   age 18 or over who is a parent under paragraph (b) and who is 
 83.8   placed in a center for care and treatment, shall be the school 
 83.9   district in which the pupil's biological or adoptive parent or 
 83.10  designated guardian resides. 
 83.11     (d) For a married pupil age 18 or over, the school district 
 83.12  of residence is the school district in which the married pupil 
 83.13  resides. 
 83.14     Sec. 2.  Minnesota Statutes 1998, section 122A.31, 
 83.15  subdivision 4, is amended to read: 
 83.16     Subd. 4.  [REIMBURSEMENT.] For purposes of revenue 
 83.17  under sections 125A.77 and section 125A.78, the department of 
 83.18  children, families, and learning must only reimburse school 
 83.19  districts for the services of those interpreters/transliterators 
 83.20  who satisfy the standards of competency under this section.  
 83.21     Sec. 3.  Minnesota Statutes 1998, section 123B.02, is 
 83.22  amended by adding a subdivision to read: 
 83.23     Subd. 5a.  [TRESPASSES ON SCHOOL PROPERTY.] Trespasses on 
 83.24  school property shall be governed according to section 609.605, 
 83.25  subdivision 4. 
 83.26     Sec. 4.  Minnesota Statutes 1998, section 123B.85, 
 83.27  subdivision 1, is amended to read: 
 83.28     Subdivision 1.  [APPLICATION.] The following words and 
 83.29  terms in sections 121A.585, 121A.59, 123B.84 to 123B.87, and 
 83.30  123B.89 to 123B.90, and 123B.91, shall have the following 
 83.31  meanings ascribed to them. 
 83.32     Sec. 5.  Minnesota Statutes 1999 Supplement, section 
 83.33  124D.128, subdivision 2, is amended to read: 
 83.34     Subd. 2.  [COMMISSIONER DESIGNATION.] An area learning 
 83.35  center designated by the state must be a site.  To be 
 83.36  designated, a district or center must demonstrate to the 
 84.1   commissioner that it will: 
 84.2      (1) provide a program of instruction that permits pupils to 
 84.3   receive instruction throughout the entire year; and 
 84.4      (2) maintain a record system that, for purposes of section 
 84.5   124.17 126C.05, permits identification of membership 
 84.6   attributable to pupils participating in the program.  The record 
 84.7   system and identification must ensure that the program will not 
 84.8   have the effect of increasing the total number of pupil units 
 84.9   attributable to an individual pupil as a result of a learning 
 84.10  year program. 
 84.11     Sec. 6.  Minnesota Statutes 1998, section 124D.454, 
 84.12  subdivision 2, is amended to read: 
 84.13     Subd. 2.  [DEFINITIONS.] For the purposes of this 
 84.14  section and section 125A.77, the definitions in this subdivision 
 84.15  apply. 
 84.16     (a) "Base year" for fiscal year 1996 means fiscal year 1995.
 84.17  Base year for later fiscal years means the second fiscal year 
 84.18  preceding the fiscal year for which aid will be paid. 
 84.19     (b) "Basic revenue" has the meaning given it in section 
 84.20  126C.10, subdivision 2.  For the purposes of computing basic 
 84.21  revenue pursuant to this section, each child with a disability 
 84.22  shall be counted as prescribed in section 126C.05, subdivision 1.
 84.23     (c) "Average daily membership" has the meaning given it in 
 84.24  section 126C.05. 
 84.25     (d) "Program growth factor" means 1.00 for fiscal year 1998 
 84.26  and later. 
 84.27     (e) "Aid percentage factor" means 60 percent for fiscal 
 84.28  year 1996, 70 percent for fiscal year 1997, 80 percent for 
 84.29  fiscal year 1998, 90 percent for fiscal year 1999, and 100 
 84.30  percent for fiscal year 2000 and later. 
 84.31     Sec. 7.  Minnesota Statutes 1998, section 124D.454, 
 84.32  subdivision 10, is amended to read: 
 84.33     Subd. 10.  [EXCLUSION.] A district shall not receive aid 
 84.34  pursuant to section 124D.453, or 125A.76, or 125A.77 for 
 84.35  salaries, supplies, travel or equipment for which the district 
 84.36  receives aid pursuant to this section. 
 85.1      Sec. 8.  Minnesota Statutes 1999 Supplement, section 
 85.2   125A.023, subdivision 3, is amended to read: 
 85.3      Subd. 3.  [DEFINITIONS.] For purposes of this section and 
 85.4   section 125A.027, the following terms have the meanings given 
 85.5   them: 
 85.6      (a) "Health plan" means: 
 85.7      (1) a health plan under section 62Q.01, subdivision 3; 
 85.8      (2) a county-based purchasing plan under section 256B.692; 
 85.9      (3) a self-insured health plan established by a local 
 85.10  government under section 471.617; or 
 85.11     (4) self-insured health coverage provided by the state to 
 85.12  its employees or retirees. 
 85.13     (b) For purposes of this section, "health plan company" 
 85.14  means an entity that issues a health plan as defined in 
 85.15  paragraph (a). 
 85.16     (c) "Individual interagency intervention plan" means a 
 85.17  standardized written plan describing those programs or services 
 85.18  and the accompanying funding sources available to eligible 
 85.19  children with disabilities. 
 85.20     (d) "Interagency intervention service system" means a 
 85.21  system that coordinates services and programs required in state 
 85.22  and federal law to meet the needs of eligible children with 
 85.23  disabilities ages three to 21, including: 
 85.24     (1) services provided under the following programs or 
 85.25  initiatives administered by state or local agencies: 
 85.26     (i) the maternal and child health program under title V of 
 85.27  the Social Security Act, United States Code, title 42, sections 
 85.28  701 to 709; 
 85.29     (ii) the Individuals with Disabilities Education Act under 
 85.30  United States Code, title 20, chapter 33, subchapter II, 
 85.31  sections 1411 to 1420; 
 85.32     (iii) medical assistance under the Social Security Act, 
 85.33  United States Code, title 42, chapter 7, subchapter XIX, section 
 85.34  1396, et seq.; 
 85.35     (iv) the Developmental Disabilities Assistance and Bill of 
 85.36  Rights Act, United States Code, title 42, chapter 75, subchapter 
 86.1   II, sections 6021 to 6030, Part B; 
 86.2      (v) the Head Start Act, United States Code, title 42, 
 86.3   chapter 105, subchapter II, sections 9831 to 9852; 
 86.4      (vi) rehabilitation services provided under chapter 268A; 
 86.5      (vii) Juvenile Court Act services provided under sections 
 86.6   260.011 to 260.91; 260B.001 to 260B.446; and 260C.001 to 
 86.7   260C.451; 
 86.8      (viii) the children's mental health collaboratives under 
 86.9   section 245.493; 
 86.10     (ix) the family service collaboratives under section 
 86.11  124D.23; 
 86.12     (x) the family community support plan under section 
 86.13  245.4881, subdivision 4; 
 86.14     (xi) the MinnesotaCare program under chapter 256L; 
 86.15     (xii) the community health services grants under chapter 
 86.16  145; 
 86.17     (xiii) the Community Social Services Act funding under the 
 86.18  Social Security Act, United States Code, title 42, sections 1397 
 86.19  to 1397f; and 
 86.20     (xiv) the community interagency transition interagency 
 86.21  committees under section 125A.22; 
 86.22     (2) services provided under a health plan in conformity 
 86.23  with an individual family service plan or an individual 
 86.24  education plan; and 
 86.25     (3) additional appropriate services that local agencies and 
 86.26  counties provide on an individual need basis upon determining 
 86.27  eligibility and receiving a request from the interagency early 
 86.28  intervention committee and the child's parent. 
 86.29     (e) "Children with disabilities" has the meaning given in 
 86.30  section 125A.02. 
 86.31     (f) A "standardized written plan" means those individual 
 86.32  services or programs available through the interagency 
 86.33  intervention service system to an eligible child other than the 
 86.34  services or programs described in the child's individual 
 86.35  education plan or the child's individual family service plan. 
 86.36     Sec. 9.  Minnesota Statutes 1999 Supplement, section 
 87.1   125A.023, subdivision 5, is amended to read: 
 87.2      Subd. 5.  [INTERVENTION DEMONSTRATION PROJECTS.] (a) The 
 87.3   commissioner of children, families, and learning, based on 
 87.4   recommendations from the state interagency committee, shall 
 87.5   issue a request for proposals by January 1, 1999, for grants to 
 87.6   the governing boards of interagency early intervention 
 87.7   committees under section 125A.027 or a combination of one or 
 87.8   more counties and school districts to establish five voluntary 
 87.9   interagency intervention demonstration projects.  One grant 
 87.10  shall be used to implement a coordinated service system for all 
 87.11  eligible children with disabilities up to age five who received 
 87.12  services under sections 125A.26 to 125A.48.  One grant shall be 
 87.13  used to implement a coordinated service system for a population 
 87.14  of minority children with disabilities from ages 12 to 21, who 
 87.15  may have behavioral problems and are in need of transitional 
 87.16  services.  Each project must be operational by July 1, 1999.  
 87.17  The governing boards of the interagency early intervention 
 87.18  committees and the counties and school districts receiving 
 87.19  project grants must develop efficient ways to coordinate 
 87.20  services and funding for children with disabilities ages three 
 87.21  to 21, consistent with the requirements of this section and 
 87.22  section 125A.027 and the guidelines developed by the state 
 87.23  interagency committee under this section. 
 87.24     (b) The state interagency committee shall evaluate the 
 87.25  demonstration projects and provide the evaluation results to 
 87.26  interagency early intervention committees. 
 87.27     Sec. 10.  Minnesota Statutes 1999 Supplement, section 
 87.28  125A.08, is amended to read: 
 87.29     125A.08 [SCHOOL DISTRICT OBLIGATIONS.] 
 87.30     (a) As defined in this section, to the extent required by 
 87.31  federal law as of July 1, 2000, every district must ensure the 
 87.32  following: 
 87.33     (1) all students with disabilities are provided the special 
 87.34  instruction and services which are appropriate to their needs.  
 87.35  Where the individual education plan team has determined 
 87.36  appropriate goals and objectives based on the student's needs, 
 88.1   including the extent to which the student can be included in the 
 88.2   least restrictive environment, and where there are essentially 
 88.3   equivalent and effective instruction, related services, or 
 88.4   assistive technology devices available to meet the student's 
 88.5   needs, cost to the district may be among the factors considered 
 88.6   by the team in choosing how to provide the appropriate services, 
 88.7   instruction, or devices that are to be made part of the 
 88.8   student's individual education plan.  The individual education 
 88.9   plan team shall consider and may authorize services covered by 
 88.10  medical assistance according to section 256B.0625, subdivision 
 88.11  26.  The student's needs and the special education instruction 
 88.12  and services to be provided must be agreed upon through the 
 88.13  development of an individual education plan.  The plan must 
 88.14  address the student's need to develop skills to live and work as 
 88.15  independently as possible within the community.  By grade 9 or 
 88.16  age 14, the plan must address the student's needs for transition 
 88.17  from secondary services to post-secondary education and 
 88.18  training, employment, community participation, recreation, and 
 88.19  leisure and home living.  In developing the plan, districts must 
 88.20  inform parents of the full range of transitional goals and 
 88.21  related services that should be considered.  The plan must 
 88.22  include a statement of the needed transition services, including 
 88.23  a statement of the interagency responsibilities or linkages or 
 88.24  both before secondary services are concluded; 
 88.25     (2) children with a disability under age five and their 
 88.26  families are provided special instruction and services 
 88.27  appropriate to the child's level of functioning and needs; 
 88.28     (3) children with a disability and their parents or 
 88.29  guardians are guaranteed procedural safeguards and the right to 
 88.30  participate in decisions involving identification, assessment 
 88.31  including assistive technology assessment, and educational 
 88.32  placement of children with a disability; 
 88.33     (4) eligibility and needs of children with a disability are 
 88.34  determined by an initial assessment or reassessment, which may 
 88.35  be completed using existing data under United States Code, title 
 88.36  20, section 33, et seq.; 
 89.1      (5) to the maximum extent appropriate, children with a 
 89.2   disability, including those in public or private institutions or 
 89.3   other care facilities, are educated with children who are not 
 89.4   disabled, and that special classes, separate schooling, or other 
 89.5   removal of children with a disability from the regular 
 89.6   educational environment occurs only when and to the extent that 
 89.7   the nature or severity of the disability is such that education 
 89.8   in regular classes with the use of supplementary services cannot 
 89.9   be achieved satisfactorily; 
 89.10     (6) in accordance with recognized professional standards, 
 89.11  testing and evaluation materials, and procedures used for the 
 89.12  purposes of classification and placement of children with a 
 89.13  disability are selected and administered so as not to be 
 89.14  racially or culturally discriminatory; and 
 89.15     (7) the rights of the child are protected when the parents 
 89.16  or guardians are not known or not available, or the child is a 
 89.17  ward of the state. 
 89.18     (b) For paraprofessionals employed to work in programs for 
 89.19  students with disabilities, the school board in each district 
 89.20  shall ensure that: 
 89.21     (1) before or immediately upon employment, each 
 89.22  paraprofessional develops sufficient knowledge and skills in 
 89.23  emergency procedures, building orientation, roles and 
 89.24  responsibilities, confidentiality, vulnerability, and 
 89.25  reportability, among other things, to begin meeting the needs of 
 89.26  the students with whom the paraprofessional works; 
 89.27     (2) annual training opportunities are available to enable 
 89.28  the paraprofessional to continue to further develop the 
 89.29  knowledge and skills that are specific to the students with whom 
 89.30  the paraprofessional works, including understanding 
 89.31  disabilities, following lesson plans, and implementing follow-up 
 89.32  instructional procedures and activities; and 
 89.33     (3) a districtwide process obligates each paraprofessional 
 89.34  to work under the ongoing direction of a licensed teacher and, 
 89.35  where appropriate and possible, the supervision of a school 
 89.36  nurse. 
 90.1      Sec. 11.  Minnesota Statutes 1998, section 125A.76, 
 90.2   subdivision 7, is amended to read: 
 90.3      Subd. 7.  [REVENUE ALLOCATION FROM COOPERATIVE CENTERS AND 
 90.4   INTERMEDIATES.] For the purposes of this section and section 
 90.5   125A.77, a special education cooperative or an intermediate 
 90.6   district must allocate its approved expenditures for special 
 90.7   education programs among participating school districts. 
 90.8      Sec. 12.  Minnesota Statutes 1999 Supplement, section 
 90.9   125A.79, subdivision 8, is amended to read: 
 90.10     Subd. 8.  [OUT-OF-STATE TUITION.] For children who are 
 90.11  residents of the state, receive services under section 125A.76, 
 90.12  subdivisions 1 and 2, and are placed in a care and treatment 
 90.13  facility by court action in a state that does not have a 
 90.14  reciprocity agreement with the commissioner under section 
 90.15  125A.115 125A.155, the resident school district shall submit the 
 90.16  balance of the tuition bills, minus the amount of the basic 
 90.17  revenue, as defined by section 126C.10, subdivision 2, of the 
 90.18  district for the child and the special education aid, and any 
 90.19  other aid earned on behalf of the child. 
 90.20     Sec. 13.  Minnesota Statutes 1999 Supplement, section 
 90.21  125A.80, is amended to read: 
 90.22     125A.80 [UNIFORM BILLING SYSTEM FOR THE EDUCATION COSTS OF 
 90.23  OUT-OF-HOME PLACED STUDENTS.] 
 90.24     The commissioner, in cooperation with the commissioners of 
 90.25  human services and corrections and with input from appropriate 
 90.26  billing system users, shall develop and implement a uniform 
 90.27  billing system for school districts and other agencies, 
 90.28  including private providers, who provide the educational 
 90.29  services for students who are placed out of the home.  The 
 90.30  uniform billing system must: 
 90.31     (1) allow for the proper and timely billing to districts by 
 90.32  service providers with a minimum amount of district 
 90.33  administration; 
 90.34     (2) allow districts to bill the state for certain types of 
 90.35  special education and regular education services as provided by 
 90.36  law; 
 91.1      (3) provide flexibility for the types of services that are 
 91.2   provided for children placed out of the home, including day 
 91.3   treatment services; 
 91.4      (4) allow the commissioner to track the type, cost, and 
 91.5   quality of services provided for children placed out of the 
 91.6   home; 
 91.7      (5) conform existing special education and proposed regular 
 91.8   education billing procedures; 
 91.9      (6) provide a uniform reporting standard of per diem rates; 
 91.10     (7) determine allowable expenses and maximum reimbursement 
 91.11  rates for the state reimbursement of care and treatment services 
 91.12  according to section 124D.701; and 
 91.13     (8) provide a process for the district to appeal to the 
 91.14  commissioner tuition bills submitted to districts and to the 
 91.15  state. 
 91.16     Sec. 14.  Minnesota Statutes 1999 Supplement, section 
 91.17  125B.21, subdivision 3, is amended to read: 
 91.18     Subd. 3.  [CRITERIA.] In addition to responsibilities of 
 91.19  the council under Laws 1993, First Special Session chapter 2, as 
 91.20  amended, the telecommunications council shall evaluate grant 
 91.21  applications under section 124C.74 125B.20 and applications from 
 91.22  district organizations using the following criteria: 
 91.23     (1) evidence of cooperative arrangements with other 
 91.24  post-secondary institutions, school districts, and community and 
 91.25  regional libraries in the geographic region; 
 91.26     (2) plans for shared classes and programs; 
 91.27     (3) avoidance of network duplication; 
 91.28     (4) evidence of efficiencies to be achieved in delivery of 
 91.29  instruction due to use of telecommunications; 
 91.30     (5) a plan for development of a list of all courses 
 91.31  available in the region for delivery at a distance; 
 91.32     (6) a plan for coordinating and scheduling courses; and 
 91.33     (7) a plan for evaluation of costs, access, and outcomes. 
 91.34     Sec. 15.  Minnesota Statutes 1999 Supplement, section 
 91.35  126C.10, subdivision 24, is amended to read: 
 91.36     Subd. 24.  [EQUITY REVENUE.] (a) A school district 
 92.1   qualifies for equity revenue if the school district's adjusted 
 92.2   marginal cost pupil unit amount of basic revenue, supplemental 
 92.3   revenue, transition revenue, and referendum revenue is less than 
 92.4   the 90th percentile of school districts in its equity region for 
 92.5   those revenue categories and the school district's 
 92.6   administrative offices are not located in a city of the first 
 92.7   class on July 1, 1999. 
 92.8      (b) Equity revenue for a qualifying district that receives 
 92.9   referendum revenue under section 126C.17, subdivision 4, equals 
 92.10  the product of (1) the district's adjusted marginal cost pupil 
 92.11  units for that year; times (2) the sum of (i) $10, plus (ii) 
 92.12  $30, times the school district's equity index computed under 
 92.13  section 126C.10, subdivision 6 27. 
 92.14     (c) Equity revenue for a qualifying district that does not 
 92.15  receive referendum revenue under section 126C.17, subdivision 4, 
 92.16  equals the product of the district's adjusted marginal cost 
 92.17  pupil units for that year times $10. 
 92.18     Sec. 16.  Minnesota Statutes 1998, section 126C.12, 
 92.19  subdivision 2, is amended to read: 
 92.20     Subd. 2.  [INSTRUCTOR DEFINED.] Primary instructor means a 
 92.21  public employee licensed by the board of teaching whose duties 
 92.22  are full-time instruction, excluding a teacher for whom 
 92.23  categorical aids are received pursuant to sections section 
 92.24  125A.76 and 125A.77.  Except as provided in section 122A.68, 
 92.25  subdivision 6, instructor does not include supervisory and 
 92.26  support personnel, except school social workers as defined in 
 92.27  section 122A.15.  An instructor whose duties are less than 
 92.28  full-time instruction must be included as an equivalent only for 
 92.29  the number of hours of instruction in grades kindergarten 
 92.30  through 6. 
 92.31     Sec. 17.  Minnesota Statutes 1998, section 127A.05, 
 92.32  subdivision 4, is amended to read: 
 92.33     Subd. 4.  [ADMINISTRATIVE RULES.] The commissioner may 
 92.34  adopt new rules and amend them or amend any existing rules only 
 92.35  under specific authority and consistent with the requirements of 
 92.36  chapter 14.  The commissioner may repeal any existing 
 93.1   rules adopted by the commissioner.  Notwithstanding the 
 93.2   provisions of section 14.05, subdivision 4, the commissioner may 
 93.3   grant a variance to rules adopted by the commissioner upon 
 93.4   application by a school district for purposes of implementing 
 93.5   experimental programs in learning or school management.  This 
 93.6   subdivision shall not prohibit the commissioner from making 
 93.7   technical changes or corrections to adopted rules adopted by the 
 93.8   commissioner. 
 93.9      Sec. 18.  Minnesota Statutes 1998, section 127A.41, 
 93.10  subdivision 8, is amended to read: 
 93.11     Subd. 8.  [APPROPRIATION TRANSFERS.] If a direct 
 93.12  appropriation from the general fund to the department for any 
 93.13  education aid or grant authorized in this chapter and chapters 
 93.14  122A, 123A, 123B, 124D, 126C, and 134, excluding appropriations 
 93.15  under sections 124D.135, 124D.14, 124D.16, 124D.20, 124D.21, 
 93.16  124D.22, 124D.52, 124D.53, 124D.54, 124D.55, and 124D.56, 
 93.17  exceeds the amount required, the commissioner may transfer the 
 93.18  excess to any education aid or grant appropriation that is 
 93.19  insufficient.  However, section 126C.20 applies to a deficiency 
 93.20  in the direct appropriation for general education aid.  Excess 
 93.21  appropriations must be allocated proportionately among aids or 
 93.22  grants that have insufficient appropriations.  The commissioner 
 93.23  of finance shall make the necessary transfers among 
 93.24  appropriations according to the determinations of the 
 93.25  commissioner.  If the amount of the direct appropriation for the 
 93.26  aid or grant plus the amount transferred according to this 
 93.27  subdivision is insufficient, the commissioner shall prorate the 
 93.28  available amount among eligible districts.  The state is not 
 93.29  obligated for any additional amounts.  
 93.30     Sec. 19.  Minnesota Statutes 1998, section 127A.41, 
 93.31  subdivision 9, is amended to read: 
 93.32     Subd. 9.  [APPROPRIATION TRANSFERS FOR COMMUNITY EDUCATION 
 93.33  PROGRAMS.] If a direct appropriation from the general fund to 
 93.34  the department of children, families, and learning for an 
 93.35  education aid or grant authorized under section 
 93.36  124D.135, 124D.14, 124D.16, 124D.20, 124D.21, 124D.22, 124D.52, 
 94.1   124D.53, 124D.54, 124D.55, or 124D.56 exceeds the amount 
 94.2   required, the commissioner of children, families, and learning 
 94.3   may transfer the excess to any education aid or grant 
 94.4   appropriation that is insufficiently funded under these sections.
 94.5   Excess appropriations shall be allocated proportionately among 
 94.6   aids or grants that have insufficient appropriations.  The 
 94.7   commissioner of finance shall make the necessary transfers among 
 94.8   appropriations according to the determinations of the 
 94.9   commissioner of children, families, and learning.  If the amount 
 94.10  of the direct appropriation for the aid or grant plus the amount 
 94.11  transferred according to this subdivision is insufficient, the 
 94.12  commissioner shall prorate the available amount among eligible 
 94.13  districts.  The state is not obligated for any additional 
 94.14  amounts. 
 94.15     Sec. 20.  Minnesota Statutes 1999 Supplement, section 
 94.16  181A.04, subdivision 6, is amended to read: 
 94.17     Subd. 6.  A high school student under the age of 18 must 
 94.18  not be permitted to work after 11:00 p.m. on an evening before a 
 94.19  school day or before 5:00 a.m. on a school day, except as 
 94.20  permitted by section 181A.07, subdivisions 1, 2, 3, and 4.  If a 
 94.21  high school student under the age of 18 has supplied the 
 94.22  employer with a note signed by the parent or guardian of the 
 94.23  student, the student may be permitted to work until 11:30 p.m. 
 94.24  on the evening before a school day and beginning at 4:30 a.m. on 
 94.25  a school day. 
 94.26     For the purpose of this subdivision, a high school student 
 94.27  does not include a student enrolled in an alternative education 
 94.28  program approved by the commissioner of children, families, and 
 94.29  learning or an area learning center, including area learning 
 94.30  centers under sections 123A.05 to 123A.08 or according to 
 94.31  section 122A.164 122A.163. 
 94.32     Sec. 21.  Laws 1999, chapter 241, article 1, section 69, is 
 94.33  amended to read: 
 94.34     Sec. 69.  [REPEALER.] 
 94.35     (a) Minnesota Statutes 1998, sections 123B.89; and 123B.92, 
 94.36  subdivisions 2, 4, 6, 7, 8, and 10, are repealed. 
 95.1      (b) Minnesota Statutes 1998, section 120B.05, is repealed 
 95.2   effective for revenue for fiscal year 2000. 
 95.3      (c) Minnesota Statutes 1998, section 124D.65, subdivisions 
 95.4   1, 2, and 3, are repealed effective for revenue for fiscal year 
 95.5   2001. 
 95.6      (d) Minnesota Statutes 1998, sections 124D.67; 126C.05, 
 95.7   subdivision 4; and 126C.06, are repealed effective the day 
 95.8   following final enactment. 
 95.9      This appropriation is available until June 30, 2001. 
 95.10     Sec. 22.  Laws 1999, chapter 241, article 4, section 27, 
 95.11  subdivision 5, is amended to read: 
 95.12     Subd. 5.  [ALTERNATIVE FACILITIES BONDING AID.] For 
 95.13  alternative facilities bonding aid, according to Minnesota 
 95.14  Statutes, section 123B.59: 
 95.15       $19,058,000    .....     2000 
 95.16       $19,286,000    .....     2001 
 95.17     The 2000 appropriation includes $1,700,000 for 2000 1999 
 95.18  and $17,358,000 for 2001 2000. 
 95.19     The 2001 appropriation includes $1,928,000 for 2000 and 
 95.20  $17,358,000 for 2001. 
 95.21     <b>EFFECTIVE DATE:</b>  This section is effective the day 
 95.22  following final enactment. 
 95.23     Sec. 23.  Laws 1999, chapter 241, article 6, section 14, 
 95.24  subdivision 5, is amended to read: 
 95.25     Subd. 5.  [NONPUBLIC PUPIL TRANSPORTATION.] For nonpublic 
 95.26  pupil transportation aid under Minnesota Statutes, section 
 95.27  123B.92, subdivision 9: 
 95.28       $18,586,000    .....     2000 
 95.29       $20,922,000    .....     2001 
 95.30     The 2000 appropriation includes $1,848,000 for 2000 1999 
 95.31  and $16,738,000 for 2001 2000. 
 95.32     The 2001 appropriation includes $1,860,000 for 2000 and 
 95.33  $19,062,000 for 2001. 
 95.34     <b>EFFECTIVE DATE:</b>  This section is effective the day 
 95.35  following final enactment. 
 95.36     Sec. 24.  Laws 1999, chapter 241, article 9, section 49, is 
 96.1   amended to read: 
 96.2      Sec. 49.  [TRANSITION.] 
 96.3      Notwithstanding Minnesota Statutes, section 15.0597, the 
 96.4   terms of persons who are members appointed by the governor 
 96.5   before the effective date of section 8 37, shall have their term 
 96.6   end on July 31 of the year following the last year of their 
 96.7   appointment. 
 96.8      Sec. 25.  [REVISOR INSTRUCTION.] 
 96.9      In the next and subsequent editions of Minnesota Statutes, 
 96.10  the revisor shall renumber section 123B.02, subdivision 12, as 
 96.11  120A.22, subdivision 1a.  The revisor shall correct all 
 96.12  cross-references to be consistent with the renumbering. 
 96.13     Sec. 26.  [REPEALER.] 
 96.14     Laws 1999, chapter 241, article 9, sections 35 and 36, are 
 96.15  repealed.  Laws 1999, chapter 245, article 4, section 3, is 
 96.16  repealed.