1.1                          A bill for an act 
  1.2             relating to education; providing for family and early 
  1.3             childhood education; making changes to adult basic 
  1.4             education programs; modifying child care licensing and 
  1.5             inservice training requirements; transferring energy 
  1.6             assistance programs; changing eligibility for 
  1.7             individual development accounts; changing requirements 
  1.8             for child care assistance; providing for kindergarten 
  1.9             through grade 12 general education, special programs, 
  1.10            employment and transitions, facilities and technology, 
  1.11            educational excellence and other policy, nutrition, 
  1.12            fund transfers, libraries, and technical, conforming, 
  1.13            and clarifying amendments; providing for higher 
  1.14            education; modifying salary and compensation 
  1.15            procedures for the chancellor and other personnel of 
  1.16            the Minnesota state colleges and universities; 
  1.17            requiring board of regents and board of trustees to 
  1.18            maintain certain data to be eligible for capital 
  1.19            funding; modifying and making technical changes for 
  1.20            state designer selection board, student residency, and 
  1.21            child care grant provisions; increasing aggregate 
  1.22            principal amount of revenue bonds issued by board of 
  1.23            trustees; requiring a study and report; modifying 
  1.24            state graduation requirements; providing for the North 
  1.25            Star Standard alternative to the profile of learning; 
  1.26            requiring board of trustees to plan and coordinate 
  1.27            programs with certain intermediate school districts 
  1.28            and to provide relief to campuses experiencing 
  1.29            increased health care costs; transferring certain 
  1.30            programs from the higher education services office to 
  1.31            the department of children, families, and learning; 
  1.32            appropriating money to Minnesota state colleges and 
  1.33            universities to fund increased enrollment; 
  1.34            appropriating money; amending Minnesota Statutes 1998, 
  1.35            sections 15A.081, subdivision 7b, and by adding a 
  1.36            subdivision; 16B.33, subdivisions 2 and 3a; 120A.22, 
  1.37            subdivision 3; 120A.41; 120B.03, subdivisions 1 and 3; 
  1.38            121A.61, subdivision 3; 122A.18, subdivision 2; 
  1.39            122A.31, subdivision 4; 123A.06, by adding a 
  1.40            subdivision; 123A.485, subdivision 4; 123B.02, by 
  1.41            adding a subdivision; 123B.51, subdivision 6; 123B.52, 
  1.42            by adding a subdivision; 123B.53, by adding 
  1.43            subdivisions; 123B.59, subdivision 6, and by adding 
  1.44            subdivisions; 123B.71, subdivisions 3 and 10; 123B.75, 
  1.45            subdivision 5; 123B.79, subdivision 7; 123B.85, 
  1.46            subdivision 1; 123B.86, subdivision 1; 123B.88, 
  2.1             subdivision 3; 124D.081, subdivision 6; 124D.111, 
  2.2             subdivision 1; 124D.128, subdivision 4; 124D.44; 
  2.3             124D.454, subdivisions 2 and 10; 124D.52, subdivisions 
  2.4             1, 2, 3, and by adding subdivisions; 124D.86, 
  2.5             subdivision 6, and by adding subdivisions; 125A.76, 
  2.6             subdivision 7; 126C.10, by adding a subdivision; 
  2.7             126C.12, subdivision 2; 126C.40, subdivision 1, and by 
  2.8             adding a subdivision; 126C.69, subdivision 3; 127A.05, 
  2.9             subdivision 4; 127A.41, subdivisions 8 and 9; 127A.48, 
  2.10            subdivision 1; 135A.031, subdivision 2; 136A.125, by 
  2.11            adding a subdivision; 136D.281, subdivision 4; 
  2.12            136D.741, subdivision 4; 136D.88, subdivision 4; 
  2.13            136F.40; 136F.98, subdivision 1; 245A.14, subdivision 
  2.14            4, and by adding subdivisions; 471.15; and 475.53, 
  2.15            subdivision 4; Minnesota Statutes 1999 Supplement, 
  2.16            sections 119B.011, subdivision 20; 120B.02; 120B.30, 
  2.17            subdivision 1; 122A.09, subdivision 4; 123B.53, 
  2.18            subdivisions 4, 6, and by adding subdivisions; 
  2.19            123B.54; 123B.59, subdivision 6, and by adding 
  2.20            subdivisions; 124D.10, subdivisions 3, 4, 6, 8, 10, 
  2.21            11, 14, 15, and 23; 124D.11, subdivisions 1, 4, and 6; 
  2.22            124D.1155, subdivision 2; 124D.128, subdivision 2; 
  2.23            124D.453, subdivision 3; 124D.53, subdivision 3; 
  2.24            124D.84, subdivision 1; 124D.86, subdivisions 1 and 3; 
  2.25            124D.87; 125A.023, subdivisions 3 and 5; 125A.08; 
  2.26            125A.15; 125A.76, subdivision 2; 125A.79, subdivision 
  2.27            8; 125A.80; 125B.21, subdivision 3; 126C.052; 126C.10, 
  2.28            subdivisions 1, 2, 14, 23, 24, 25, and 26; 126C.12, 
  2.29            subdivision 1; 126C.17, subdivision 9; 126C.40, 
  2.30            subdivision 6; 126C.44; 126C.63, subdivision 8; 
  2.31            126C.69, subdivision 9; 127A.45, subdivision 12a; 
  2.32            127A.51; 181A.04, subdivision 6; 260C.143, subdivision 
  2.33            4; and 290.0674, subdivision 1; Laws 1997, First 
  2.34            Special Session chapter 4, article 8, section 4, as 
  2.35            amended; Laws 1998, First Special Session chapter 1, 
  2.36            article 1, sections 10, subdivision 1, as amended; 11, 
  2.37            subdivision 2, as amended; Laws 1999, chapter 205, 
  2.38            article 1, sections 65; 71, subdivisions 3, 7, and 9; 
  2.39            article 2, section 4, subdivisions 2, 3, and 4; 
  2.40            article 3, section 5, subdivision 9; article 4, 
  2.41            section 12, subdivisions 5, 6, and 7; chapter 241, 
  2.42            article 1, sections 66; 68, subdivisions 4 and 5; 69; 
  2.43            and 70; article 2, section 60, subdivisions 7, 9, 12, 
  2.44            13, 14, 17, and 19; article 3, sections 3, 
  2.45            subdivisions 2 and 4; 5; article 4, sections 27, 
  2.46            subdivisions 2, 3, 4, 5, 7, 10, and 11; and 29; 
  2.47            article 5, section 18, subdivisions 5 and 6; article 
  2.48            6, section 14, subdivisions 2, 3, 4, and 5; article 8, 
  2.49            section 4, subdivision 5; article 9, section 49; 
  2.50            article 10, section 6; proposing coding for new law in 
  2.51            Minnesota Statutes, chapters 16A; 120B; 121A; 122A; 
  2.52            123B; 124D; 125B; 134; repealing Minnesota Statutes 
  2.53            1998, sections 120B.03, subdivision 2; 120B.04; 
  2.54            123B.59, subdivision 7; 124D.453; 124D.53; 126C.30; 
  2.55            126C.31; 126C.32; 126C.33; 126C.34; 126C.35; 126C.36; 
  2.56            136D.281, subdivision 8; 136D.741, subdivision 8; and 
  2.57            136D.88, subdivision 8; Laws 1998, First Special 
  2.58            Session chapter 1, article 1, section 10, subdivision 
  2.59            2, as amended; Laws 1999, chapters 216, article 4, 
  2.60            section 12; 241, article 1, section 64; article 9, 
  2.61            sections 35 and 36; article 10, section 5; and 245, 
  2.62            article 4, section 3; Minnesota Rules, parts 
  2.63            3501.0300; 3501.0310; 3501.0320, subpart 2, items E 
  2.64            and F; 3501.0330; 3501.0340; 3501.0350; 3501.0360; 
  2.65            3501.0370; 3501.0380; 3501.0390; 3501.0400; 3501.0410; 
  2.66            3501.0420; 3501.0430, items A to D; 3501.0440; 
  2.67            3501.0441; 3501.0442; 3501.0443; 3501.0444; 3501.0445; 
  2.68            3501.0446; 3501.0447; 3501.0448; 3501.0449; 3501.0450; 
  2.69            3501.0460; 3501.0461; 3501.0462; 3501.0463; 3501.0464; 
  2.70            3501.0465; 3501.0466; 3501.0467; 3501.0468; 3501.0469; 
  2.71            3535.9920; and 4830.9005 to 4830.9030. 
  3.1   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  3.2                              ARTICLE 1 
  3.3                 FAMILY AND EARLY CHILDHOOD EDUCATION 
  3.4      Section 1.  Minnesota Statutes 1999 Supplement, section 
  3.5   119B.011, subdivision 20, is amended to read: 
  3.6      Subd. 20.  [TRANSITION YEAR FAMILIES.] "Transition year 
  3.7   families" means families who have received MFIP assistance, or 
  3.8   who were eligible to receive MFIP assistance after choosing to 
  3.9   discontinue receipt of the cash portion of MFIP assistance under 
  3.10  section 256J.31, subdivision 12, for at least three of the last 
  3.11  six months before losing eligibility for MFIP due to increased 
  3.12  income from employment or child or spousal support or families 
  3.13  participating in work first under chapter 256K who meet the 
  3.14  requirements of section 256K.07.  Transition year child care may 
  3.15  be used to support employment or job search.  Transition year 
  3.16  child care is not available to families who have been 
  3.17  disqualified from MFIP due to fraud.  
  3.18     Sec. 2.  [124D.515] [ADULT BASIC EDUCATION AID 
  3.19  DEFINITIONS.] 
  3.20     Subdivision 1.  [APPLICABILITY.] The definitions in this 
  3.21  section apply to sections 124D.52 to 124D.531.  
  3.22     Subd. 2.  [CONTACT HOURS.] "Contact hours" means the number 
  3.23  of hours during which a student was engaged in learning 
  3.24  activities provided by an approved adult education program.  
  3.25  Contact hours excludes homework, but includes interactive 
  3.26  distance learning.  The commissioner may reallocate contact 
  3.27  hours among programs to adjust for changes in program membership 
  3.28  between the first prior program year and the current program 
  3.29  year.  For fiscal year 2000, the commissioner may assign contact 
  3.30  hours to a program providing statewide supplemental services. 
  3.31     Subd. 3.  [FIRST PRIOR PROGRAM YEAR.] "First prior program 
  3.32  year" means the period from May 1 of the second prior fiscal 
  3.33  year through April 30 of the first prior fiscal year. 
  3.34     Subd. 4.  [UNREIMBURSED EXPENSES.] "Unreimbursed expenses" 
  3.35  means allowable adult basic education expenses of a program that 
  3.36  are not covered by payments from federal or private for-profit 
  4.1   sources. 
  4.2      Sec. 3.  Minnesota Statutes 1998, section 124D.52, 
  4.3   subdivision 1, is amended to read: 
  4.4      Subdivision 1.  [PROGRAM REQUIREMENTS.] An adult basic 
  4.5   education program is a day or evening program offered by a 
  4.6   district that is for people over 16 years of age who do not 
  4.7   attend an elementary or secondary school.  The program offers 
  4.8   academic instruction necessary to earn a high school diploma or 
  4.9   equivalency certificate.  Tuition and fees may not be charged to 
  4.10  a learner for instruction paid under this section, except for a 
  4.11  security deposit to assure return of materials, supplies, and 
  4.12  equipment. 
  4.13     Each approved adult basic education program must develop a 
  4.14  memorandum of understanding with the local workforce development 
  4.15  centers located in the approved program's service delivery 
  4.16  area.  The memorandum of understanding must describe how the 
  4.17  adult basic education program and the workforce development 
  4.18  centers will cooperate and coordinate services to provide 
  4.19  unduplicated, efficient, and effective services to clients.  
  4.20     Sec. 4.  Minnesota Statutes 1998, section 124D.52, 
  4.21  subdivision 2, is amended to read: 
  4.22     Subd. 2.  [PROGRAM APPROVAL.] (a) To receive aid under this 
  4.23  section, a district, a consortium of districts, or a private 
  4.24  nonprofit organization must submit an application by June 1 
  4.25  describing the program, on a form provided by the department.  
  4.26  The program must be approved by the commissioner according to 
  4.27  the following criteria:  
  4.28     (1) how the needs of different levels of learning will be 
  4.29  met; 
  4.30     (2) for continuing programs, an evaluation of results; 
  4.31     (3) anticipated number and education level of participants; 
  4.32     (4) coordination with other resources and services; 
  4.33     (5) participation in a consortium, if any, and money 
  4.34  available from other participants; 
  4.35     (6) management and program design; 
  4.36     (7) volunteer training and use of volunteers; 
  5.1      (8) staff development services; 
  5.2      (9) program sites and schedules; and 
  5.3      (10) program expenditures that qualify for aid; 
  5.4      (11) program ability to provide data related to learner 
  5.5   outcomes as required by law; and 
  5.6      (12) a copy of the memorandum of understanding described in 
  5.7   subdivision 1 submitted to the commissioner.  
  5.8      (b) The commissioner may grant adult basic education funds 
  5.9   to a private, nonprofit organization to provide services that 
  5.10  are not offered by a district or that are supplemental to a 
  5.11  district's program.  The program provided under this provision 
  5.12  must be approved and funded according to the same criteria used 
  5.13  for district programs. 
  5.14     (c) Adult basic education programs may be approved under 
  5.15  this subdivision for up to five years.  Five-year program 
  5.16  approval must be granted to an applicant who has demonstrated 
  5.17  the capacity to: 
  5.18     (1) offer comprehensive learning opportunities and support 
  5.19  service choices appropriate for and accessible to adults at all 
  5.20  basic skill need levels; 
  5.21     (2) provide a participatory and experiential learning 
  5.22  approach based on the strengths, interests, and needs of each 
  5.23  adult, that enables adults with basic skill needs to: 
  5.24     (i) identify, plan for, and evaluate their own progress 
  5.25  toward achieving their defined educational and occupational 
  5.26  goals; 
  5.27     (ii) master the basic academic reading, writing, and 
  5.28  computational skills, as well as the problem-solving, decision 
  5.29  making, interpersonal effectiveness, and other life and learning 
  5.30  skills they need to function effectively in a changing society; 
  5.31     (iii) locate and be able to use the health, governmental, 
  5.32  and social services and resources they need to improve their own 
  5.33  and their families' lives; and 
  5.34     (iv) continue their education, if they desire, to at least 
  5.35  the level of secondary school completion, with the ability to 
  5.36  secure and benefit from continuing education that will enable 
  6.1   them to become more employable, productive, and responsible 
  6.2   citizens; 
  6.3      (3) plan, coordinate, and develop cooperative agreements 
  6.4   with community resources to address the needs that the adults 
  6.5   have for support services, such as transportation, flexible 
  6.6   course scheduling, convenient class locations, and child care; 
  6.7      (4) collaborate with business, industry, labor unions, and 
  6.8   employment-training agencies, as well as with family and 
  6.9   occupational education providers, to arrange for resources and 
  6.10  services through which adults can attain economic 
  6.11  self-sufficiency; 
  6.12     (5) provide sensitive and well trained adult education 
  6.13  personnel who participate in local, regional, and statewide 
  6.14  adult basic education staff development events to master 
  6.15  effective adult learning and teaching techniques; 
  6.16     (6) participate in regional adult basic education peer 
  6.17  program reviews and evaluations; and 
  6.18     (7) submit accurate and timely performance and fiscal 
  6.19  reports; and 
  6.20     (8) submit accurate and timely reports related to program 
  6.21  outcomes and learner follow-up information.  
  6.22     (c) The commissioner shall require each district to provide 
  6.23  notification by February 1, 2001, of its intent to apply for 
  6.24  funds under this section as a single district or as part of an 
  6.25  identified consortium of districts.  A district receiving funds 
  6.26  under this section must notify the commissioner by February 1 of 
  6.27  its intent to change its application status for applications due 
  6.28  the following June 1. 
  6.29     Sec. 5.  Minnesota Statutes 1998, section 124D.52, 
  6.30  subdivision 3, is amended to read: 
  6.31     Subd. 3.  [ACCOUNTS; REVENUE; AID.] Each district, group of 
  6.32  districts, or private nonprofit organization providing adult 
  6.33  basic education programs must establish and maintain accounts 
  6.34  separate from all other district accounts for the receipt and 
  6.35  disbursement of all funds related to these programs.  All 
  6.36  revenue received pursuant to this section must be utilized 
  7.1   solely for the purposes of adult basic education programs.  
  7.2   Federal and State aid plus levy must not equal more than 100 
  7.3   percent of the actual cost unreimbursed expenses of providing 
  7.4   these programs, excluding in-kind costs.  
  7.5      Sec. 6.  Minnesota Statutes 1998, section 124D.52, is 
  7.6   amended by adding a subdivision to read: 
  7.7      Subd. 6.  [COOPERATIVE ENGLISH AS A SECOND LANGUAGE AND 
  7.8   ADULT BASIC EDUCATION PROGRAMS.] (a) A school district, or adult 
  7.9   basic education consortium that receives revenue under section 
  7.10  124D.531 may deliver English as a second language, citizenship, 
  7.11  or other adult education programming in collaboration with 
  7.12  community-based and nonprofit organizations located within its 
  7.13  district or region, and with correctional institutions.  The 
  7.14  organization or correctional institution must have the 
  7.15  demonstrated capacity to offer education programs for adults.  
  7.16  Community-based or nonprofit organizations must meet the 
  7.17  criteria in paragraph (b).  A community-based or nonprofit 
  7.18  organization or a correctional institution may be reimbursed for 
  7.19  unreimbursed expenses as defined in section 124D.515, 
  7.20  subdivision 4, for the administration of English as a second 
  7.21  language or adult basic education programs, not to exceed eight 
  7.22  percent of the total funds provided by a school district or 
  7.23  adult basic education consortium.  The administrative 
  7.24  reimbursement for a school district or adult basic education 
  7.25  consortium that delivers services cooperatively with a 
  7.26  community-based or nonprofit organization or correctional 
  7.27  institution is limited to eight percent of the program aid not 
  7.28  to exceed the unreimbursed expenses of administering programs 
  7.29  delivered by community-based or nonprofit organizations or 
  7.30  correctional institutions.  
  7.31     (b) A community-based organization or nonprofit 
  7.32  organization that delivers education services under this section 
  7.33  must demonstrate that it has met the following criteria: 
  7.34     (1) be legally established as a nonprofit organization; 
  7.35     (2) have an established system for fiscal accounting and 
  7.36  reporting that is consistent with the department of children, 
  8.1   families, and learning's adult basic education completion report 
  8.2   and reporting requirements under section 124D.531; 
  8.3      (3) require all instructional staff to complete a training 
  8.4   course in teaching adult learners; and 
  8.5      (4) develop a learning plan for each student that 
  8.6   identifies defined educational and occupational goals with 
  8.7   measures to evaluate progress.  
  8.8      Sec. 7.  Minnesota Statutes 1998, section 124D.52, is 
  8.9   amended by adding a subdivision to read: 
  8.10     Subd. 7.  [PERFORMANCE ACCOUNTABILITY SYSTEM.] A 
  8.11  performance accountability system is created to assess the 
  8.12  effectiveness of adult basic education programs.  The following 
  8.13  core indicators must be included in the accountability system: 
  8.14     (1) demonstrated improvements in literacy skill levels in 
  8.15  reading, writing, and speaking the English language, numeracy, 
  8.16  problem-solving, English language acquisition, and other 
  8.17  literacy skills; 
  8.18     (2) placement in, retention in, or completion of 
  8.19  post-secondary education, training, unsubsidized employment or 
  8.20  career advancement; and 
  8.21     (3) receipt of a secondary school diploma or its recognized 
  8.22  equivalent.  
  8.23     A district, group of districts, state agency, or private 
  8.24  nonprofit organization providing an adult basic education 
  8.25  program must request each learner to provide the learner's 
  8.26  social security number.  When a learner in such a program is 
  8.27  requested to provide the learner's social security number, the 
  8.28  learner must be notified in a form easily understandable to the 
  8.29  learner that (i) providing the social security number is 
  8.30  optional, and (ii) if the learner provides the social security 
  8.31  number it will be used to assess the effectiveness of the 
  8.32  program by tracking the learner's subsequent career.  The 
  8.33  learner must be notified that the social security number will be 
  8.34  shared with the department of children, families, and learning 
  8.35  and the department of economic security in order to accomplish 
  8.36  this purpose. 
  9.1      Each quarter, a district, group of districts, state agency, 
  9.2   or private nonprofit organization providing programs under this 
  9.3   section must forward social security numbers it receives from 
  9.4   learners to the department of children, families, and learning.  
  9.5   For the purposes of longitudinal studies on the employment 
  9.6   status of former learners under this section, the department of 
  9.7   children, families, and learning must forward the social 
  9.8   security numbers to the department of economic security to 
  9.9   electronically match the social security numbers of former 
  9.10  learners with wage detail reports filed under section 268.044. 
  9.11     The results of data matches must, for purposes of this 
  9.12  section and consistent with the requirements of United States 
  9.13  Code, title 29, section 2871, of the Workforce Investment Act of 
  9.14  1998, be compiled in longitudinal form by the department of 
  9.15  economic security and released to the department of children, 
  9.16  families, and learning in the form of summary data that does not 
  9.17  identify the individual learners.  The department of children, 
  9.18  families, and learning may release this summary data.  Funding 
  9.19  for adult basic education programs must not be based on the 
  9.20  number or percentage of learners who decline to provide their 
  9.21  social security numbers. 
  9.22     Sec. 8.  [124D.521] [ADULT BASIC EDUCATION POLICY REVIEW 
  9.23  BOARD.] 
  9.24     Subdivision 1.  [ESTABLISHMENT.] A nine member adult basic 
  9.25  education policy review board is established to advise the 
  9.26  commissioner on program and funding policies for adult basic 
  9.27  education programs that receive aid under section 124D.531.  The 
  9.28  commissioner shall appoint board members to two-year terms 
  9.29  beginning in October 2000.  Members do not receive per diem or 
  9.30  reimbursement for expenses.  At a minimum, the board must hold 
  9.31  two meetings a year.  All other matters of the board's 
  9.32  operation, except expiration of the board under subdivision 4, 
  9.33  are governed by section 15.069. 
  9.34     Subd. 2.  [MEMBERSHIP.] Seven members are appointed from a 
  9.35  list of candidates provided to the commissioner by the Minnesota 
  9.36  community education association and Literacy Minnesota by August 
 10.1   15 of the even-numbered years.  At a minimum, the list must have 
 10.2   four recommended candidates from rural adult basic education 
 10.3   programs, four from suburban adult basic education programs, 
 10.4   four from urban adult basic education programs, and two 
 10.5   candidates from nonprofit organizations that provide adult basic 
 10.6   education services or provide support services to adult basic 
 10.7   education programs.  The commissioner must appoint two members 
 10.8   of the board from rural programs, two members from suburban 
 10.9   programs, two members from urban programs, and one member from 
 10.10  the nonprofit group.  The commissioner may appoint one former 
 10.11  adult basic education learner and one current adult basic 
 10.12  education learner to the board.  Members of the legislature and 
 10.13  representatives of other concerned groups may be included as ex 
 10.14  officio members of the board.  
 10.15     Subd. 3.  [DUTIES.] The policy review board must: 
 10.16     (1) advise the commissioner on a mission statement for a 
 10.17  statewide system of adult basic education programs that includes 
 10.18  educational outcomes, services, eligible learners, requirements 
 10.19  for teacher licensing, expectations for student advancement and 
 10.20  progress, and recognition of the importance of distance learning 
 10.21  and other technology-based instruction methods; 
 10.22     (2) advise the commissioner on adult basic education 
 10.23  standard policies and procedures; 
 10.24     (3) advise the commissioner on the adult basic education 
 10.25  curriculum and course offerings including policies to offer 
 10.26  computer literacy and other skill-based education through adult 
 10.27  basic education programs; 
 10.28     (4) advise the commissioner on outcome-based adult basic 
 10.29  education funding system that rewards and recognizes student 
 10.30  progress in attaining educational goals; and 
 10.31     (5) review statewide grant applications for supplemental 
 10.32  services under section 124D.522. 
 10.33     Subd. 4.  [EXPIRATION.] The adult basic education policy 
 10.34  review board expires on September 30, 2003. 
 10.35     Sec. 9.  [124D.522] [ADULT BASIC EDUCATION SUPPLEMENTAL 
 10.36  SERVICE GRANTS.] 
 11.1      (a) The commissioner in consultation with the policy review 
 11.2   board under section 124D.521, may make grants to nonprofit 
 11.3   organizations to provide services that are not offered by a 
 11.4   district adult basic education program or that are supplemental 
 11.5   to either the statewide adult basic education program or a 
 11.6   district's adult basic education program.  The commissioner may 
 11.7   make grants for:  
 11.8      (1) staff development for adult basic education teachers 
 11.9   and administrators; 
 11.10     (2) training for volunteer tutors; 
 11.11     (3) training, services, and materials for serving disabled 
 11.12  students through adult basic education programs; 
 11.13     (4) statewide promotion of adult basic education services 
 11.14  and programs; 
 11.15     (5) development and dissemination of instructional and 
 11.16  administrative technology for adult basic education programs; 
 11.17     (6) adult basic education distance learning projects 
 11.18  including television instruction programs; 
 11.19     (7) programming at correctional institutions; and 
 11.20     (8) other supplemental services to support the mission of 
 11.21  adult basic education and innovative delivery of adult basic 
 11.22  education services.  
 11.23     (b) The commissioner must establish eligibility criteria 
 11.24  and grant application procedures.  Grants under this section 
 11.25  must support services throughout the state, focus on educational 
 11.26  results for adult learners, and promote outcome-based 
 11.27  achievement through adult basic education programs.  The 
 11.28  commissioner may make grants under this section from funds 
 11.29  specifically appropriated for supplemental service grants.  A 
 11.30  grant to a single organization must be for two years or less and 
 11.31  cannot exceed $200,000 a year.  Nothing in this section prevents 
 11.32  an approved adult basic education program from using state or 
 11.33  federal aid to purchase supplemental services.  Twenty-five 
 11.34  percent of the appropriation for supplemental service grants 
 11.35  must be used for grants for adult basic education programs to 
 11.36  encourage and support innovations in adult basic education 
 12.1   instruction and service delivery.  
 12.2      Sec. 10.  Minnesota Statutes 1999 Supplement, section 
 12.3   124D.53, subdivision 3, is amended to read: 
 12.4      Subd. 3.  [AID.] For fiscal year 2000, adult basic 
 12.5   education aid for each approved program equals $2,295 for fiscal 
 12.6   year 2000 and $2,338 for fiscal year 2001 and later fiscal 
 12.7   years $1,767 times the number of full-time equivalent students 
 12.8   in its adult basic education program during the first prior 
 12.9   program year.  
 12.10     Sec. 11.  [124D.531] [ADULT BASIC EDUCATION AID.] 
 12.11     Subdivision 1.  [STATE TOTAL ADULT BASIC EDUCATION AID.] (a)
 12.12  The state total adult basic education aid for fiscal year 2001 
 12.13  equals $30,047,000.  The state total adult basic education aid 
 12.14  for later years equals: 
 12.15     (1) the state total adult basic education aid for the 
 12.16  preceding fiscal year; times 
 12.17     (2) the lesser of (i) 1.05, or (ii) the greater of 1.00 or 
 12.18  the ratio of the state total contact hours in the first prior 
 12.19  program year to the state total contact hours in the second 
 12.20  prior program year. 
 12.21     (b) The state total adult basic education aid excluding 
 12.22  basic population aid equals the difference between the amount 
 12.23  computed in paragraph (a) and the state total basic population 
 12.24  aid under subdivision 2. 
 12.25     Subd. 2.  [BASIC POPULATION AID.] A district is eligible 
 12.26  for basic population aid if the district has a basic service 
 12.27  level approved by the commissioner under section 124D.52, 
 12.28  subdivision 5, or is a member of a consortium with an approved 
 12.29  basic service level.  Basic population aid is equal to the 
 12.30  greater of $4,000 or $1.80 times the population of the district. 
 12.31  District population is determined according to section 275.14. 
 12.32     Subd. 3.  [PROGRAM REVENUE.] Adult basic education programs 
 12.33  established under section 124D.52 and approved by the 
 12.34  commissioner are eligible for revenue under this subdivision.  
 12.35  For fiscal year 2001 and later, adult basic education revenue 
 12.36  for each approved program equals the sum of: 
 13.1      (1) the basic population aid under subdivision 2 for 
 13.2   districts participating in the program during the current 
 13.3   program year, plus 
 13.4      (2) 84 percent times the amount computed in subdivision 1, 
 13.5   paragraph (b), times the ratio of the contact hours for students 
 13.6   participating in the program during the first prior program year 
 13.7   to the state total contact hours during the first prior program 
 13.8   year, plus 
 13.9      (3) six percent times the amount computed in subdivision 1, 
 13.10  paragraph (b), times the ratio of the enrollment of students 
 13.11  with limited English proficiency during the prior school year in 
 13.12  districts participating in the program during the current 
 13.13  program year to the state total enrollment of students with 
 13.14  limited English proficiency during the prior school year in 
 13.15  districts participating in adult basic education programs during 
 13.16  the current program year, plus 
 13.17     (4) six percent times the amount computed in subdivision 1, 
 13.18  paragraph (b), times the ratio of the latest federal census 
 13.19  count of the number of adults aged 20 or above with no diploma 
 13.20  residing in the districts participating in the program during 
 13.21  the current program year to the latest federal census count of 
 13.22  the state total number of adults aged 20 or above with no 
 13.23  diploma residing in the districts participating in adult basic 
 13.24  education programs during the current program year, plus 
 13.25     (5) four percent times the amount computed in subdivision 
 13.26  1, paragraph (b), times the ratio of the number of high school 
 13.27  drop outs in the second prior school year from school districts 
 13.28  participating in the program during the current program year to 
 13.29  the state total number of high school drop outs in the second 
 13.30  prior school year from school districts participating in the 
 13.31  program during the current program year. 
 13.32     Subd. 4.  [ADULT BASIC EDUCATION PROGRAM AID LIMIT.] (a) 
 13.33  Notwithstanding subdivisions 2 and 3, the total adult basic 
 13.34  education aid for a program per prior year contact hour must not 
 13.35  exceed four times the rate per prior year contact hour computed 
 13.36  under subdivision 3, clause (2), except that, for a program with 
 14.1   four or more member school districts and fewer than 2,000 
 14.2   contact hours, the total adult basic education aid per prior 
 14.3   year contact hour must not exceed ten times the rate per prior 
 14.4   year contact hour computed under subdivision 3, clause (2). 
 14.5      (b) For fiscal year 2002 and later, the aid for a program 
 14.6   under subdivision 3, clause (2), adjusted for changes in program 
 14.7   membership, must not exceed the aid for that program under 
 14.8   subdivision 3, clause (2), for the first preceding fiscal year 
 14.9   by more than the greater of 10 percent or $20,000. 
 14.10     Subd. 5.  [AID GUARANTEE.] Notwithstanding subdivisions 1, 
 14.11  3, and 4, for fiscal year 2001, any adult basic education 
 14.12  program qualifying for aid under this section, that receives 
 14.13  less state aid than in fiscal year 2000 must receive additional 
 14.14  aid equal to the difference between its fiscal year 2000 aid and 
 14.15  its fiscal year 2001 aid. 
 14.16     Subd. 6.  [PAYMENT OF AID TO FISCAL AGENT.] (a) Except as 
 14.17  provided in paragraph (b), adult basic education aid must be 
 14.18  paid directly to the fiscal agent of each approved program.  An 
 14.19  approved program must have only one fiscal agent. 
 14.20     (b) A district that is part of a consortium may request 
 14.21  direct payment of basic population aid under subdivision 2.  The 
 14.22  district must make a written request to the commissioner by June 
 14.23  15 for aid payments the following fiscal year.  The request must 
 14.24  include certification that: 
 14.25     (1) the district will deposit direct aid payments in a 
 14.26  separate adult basic education account; and 
 14.27     (2) the district will use direct aid payments only for 
 14.28  adult basic education instruction. 
 14.29     Subd. 7.  [PROGRAM AUDIT.] Programs that receive aid under 
 14.30  this section must maintain records that support the aid 
 14.31  payments.  The commissioner may audit these records upon request.
 14.32  The commissioner must establish procedures for conducting fiscal 
 14.33  audits of adult basic education programs.  Beginning with fiscal 
 14.34  year 2001, the commissioner must, at a minimum, audit five adult 
 14.35  education programs each year.  The programs must be selected 
 14.36  from a list of all programs that receive aid under this section 
 15.1   organized by the number of hours of instruction in the prior 
 15.2   fiscal year.  Each year the audited programs must include one 
 15.3   program with 100,000 or more hours of instruction, one program 
 15.4   with 50,000 to 100,000 hours of instruction, and three programs 
 15.5   with less than 50,000 hours of instruction.  The commissioner 
 15.6   must establish procedures to reconcile any discrepancies between 
 15.7   aid payments based on information reported to the commissioner 
 15.8   and aid estimates based on a program audit. 
 15.9      Subd. 8.  [FISCAL REPORTS.] Programs that receive aid under 
 15.10  this section must submit an annual report to the commissioner 
 15.11  that includes revenue and expense reports for each district and 
 15.12  provider in the program including instructional services offered 
 15.13  in partnership with businesses and nonprofit organizations. 
 15.14     Sec. 12.  Minnesota Statutes 1998, section 245A.14, 
 15.15  subdivision 4, is amended to read: 
 15.16     Subd. 4.  [SPECIAL FAMILY DAY CARE HOMES.] Nonresidential 
 15.17  child care programs serving 14 or fewer children that are 
 15.18  conducted at a location other than the license holder's own 
 15.19  residence shall be licensed under this section and the rules 
 15.20  governing family day care or group family day care if:  
 15.21     (a) the license holder is the primary provider of care and 
 15.22  the nonresidential child care program is conducted in a dwelling 
 15.23  that is located on a residential lot; or 
 15.24     (b) the license holder is an employer who may or may not be 
 15.25  the primary provider of care, and the purpose for the child care 
 15.26  program is to provide child care services to children of the 
 15.27  license holder's employees; or 
 15.28     (c) the license holder is a church or religious 
 15.29  organization. 
 15.30     Sec. 13.  Minnesota Statutes 1998, section 245A.14, is 
 15.31  amended by adding a subdivision to read: 
 15.32     Subd. 8.  [EXPERIENCED AIDES; CHILD CARE CENTERS.] (a) An 
 15.33  individual employed as an aide at a child care center may work 
 15.34  with children without being directly supervised for up to 25 
 15.35  percent of the individual's daily work shift if: 
 15.36     (1) a teacher is in the building; 
 16.1      (2) the individual has received first aid training within 
 16.2   the last three years; and 
 16.3      (3) the individual has at least 4,160 hours of child care 
 16.4   experience as defined in Minnesota Statutes, section 245A.02, 
 16.5   subdivision 6b. 
 16.6      (b) The use of an experienced aide working without direct 
 16.7   supervision under paragraph (a) is limited to 25 percent of each 
 16.8   classroom's daily hours of operation. 
 16.9      (c) A child care center that uses experienced aides under 
 16.10  this subdivision must notify the commissioner once per year.  
 16.11  The notification must indicate the approximate number of hours 
 16.12  per classroom per month that this subdivision is used.  Upon 
 16.13  enrollment and once each year, child care centers must report to 
 16.14  parents or guardians if they use experienced aides under this 
 16.15  subdivision. 
 16.16     (d) This subdivision sunsets June 30, 2003. 
 16.17     Sec. 14.  Minnesota Statutes 1998, section 245A.14, is 
 16.18  amended by adding a subdivision to read: 
 16.19     Subd. 9.  [INSERVICE TRAINING; CHILD CARE CENTERS.] (a) A 
 16.20  teacher at a child care center must complete one percent of 
 16.21  working hours of inservice training annually if the teacher: 
 16.22     (1) possesses a baccalaureate or masters degree in early 
 16.23  childhood education, or school age care; 
 16.24     (2) is licensed in Minnesota as a prekindergarten teacher, 
 16.25  an early childhood educator, a kindergarten to sixth grade 
 16.26  teacher with a prekindergarten specialty, an early childhood 
 16.27  special education teacher, or an elementary teacher with a 
 16.28  kindergarten endorsement; or 
 16.29     (3) possesses a baccalaureate degree with a Montessori 
 16.30  certificate. 
 16.31     (b) A teacher or assistant teacher at a child care center 
 16.32  must complete 1-1/2 percent of working hours of inservice 
 16.33  training annually if the individual is: 
 16.34     (1) a registered nurse or licensed practical nurse with 
 16.35  experience working with infants; 
 16.36     (2) possesses a Montessori certificate, a technical college 
 17.1   certificate, or a child development associate certificate; or 
 17.2      (3) possesses an associate of arts degree in early 
 17.3   childhood education, a baccalaureate degree in child 
 17.4   development, or a technical college diploma. 
 17.5      (c) Except as provided in paragraphs (a) and (b), all other 
 17.6   teachers, assistant teachers, or aides must have two percent of 
 17.7   working hours of inservice training annually. 
 17.8      (d) The number of required training hours may be prorated 
 17.9   for individuals not employed full time or for an entire year.  
 17.10  This subdivision supersedes Minnesota Rules, part 9503.0035, 
 17.11  subpart 4, item B, for teachers, assistant teachers, and aides.  
 17.12  The remainder of Minnesota Rules, part 9503.0035, subpart 4, 
 17.13  remains in effect unless superseded by other law.  
 17.14     Sec. 15.  Laws 1998, First Special Session chapter 1, 
 17.15  article 1, section 10, subdivision 1, as amended by Laws 1999, 
 17.16  chapter 205, article 4, section 8, is amended to read: 
 17.17     Subdivision 1.  [INITIAL ELIGIBILITY.] To be eligible for 
 17.18  state or TANF matching funds in the family assets for 
 17.19  independence initiative, a household must have income at or 
 17.20  below 185 percent of the federal poverty level and assets of 
 17.21  $15,000 or less.  An individual who is a dependent of another 
 17.22  person for federal income tax purposes may not be a separate 
 17.23  eligible household for purposes of establishing a family asset 
 17.24  account.  An individual who is a debtor for a judgment resulting 
 17.25  from nonpayment of a court-ordered child support obligation may 
 17.26  not participate in this program.  Households accessing TANF 
 17.27  matching funds are subject to the MFIP definition of household 
 17.28  under Minnesota Statutes, section 256J.08, subdivision 46.  
 17.29  Income and assets are determined according to eligibility 
 17.30  guidelines for the energy assistance program meet the 
 17.31  eligibility requirements of the federal Assets for Independence 
 17.32  Act, Public Law Number 105-285, in Title IV, section 408 of that 
 17.33  act.  
 17.34     Sec. 16.  Laws 1998, First Special Session chapter 1, 
 17.35  article 1, section 11, subdivision 2, as amended by Laws 1999, 
 17.36  chapter 205, article 4, section 9, is amended to read: 
 18.1      Subd. 2.  [VENDOR PAYMENT OF WITHDRAWN FUNDS.] Upon receipt 
 18.2   of transferred custodial account funds, the fiduciary 
 18.3   organization fiscal agent must make a direct payment to the 
 18.4   vendor of the goods or services for the permissible use.  
 18.5      Sec. 17.  Laws 1999, chapter 205, article 1, section 65, is 
 18.6   amended to read: 
 18.7      Sec. 65.  [ADDITIONAL EARLY CHILDHOOD FAMILY EDUCATION AID; 
 18.8   FISCAL YEAR 2000 AND FISCAL YEAR 2001.] 
 18.9      A district that complies with Minnesota Statutes, section 
 18.10  124D.13, shall receive additional early childhood family 
 18.11  education aid for fiscal year 2000 and fiscal year 2001 equal to 
 18.12  $2.46 times the greater of: 
 18.13     (1) 150; or 
 18.14     (2) the number of people under five years of age residing 
 18.15  in the school district on October 1 of the previous school 
 18.16  year.  The additional early childhood family education aid may 
 18.17  be used only for early childhood family education programs. 
 18.18     Sec. 18.  Laws 1999, chapter 205, article 1, section 71, 
 18.19  subdivision 3, is amended to read: 
 18.20     Subd. 3.  [EARLY CHILDHOOD FAMILY EDUCATION AID.] For early 
 18.21  childhood family education aid according to Minnesota Statutes, 
 18.22  section 124D.135: 
 18.23       $20,485,000 $20,109,000   .....     2000 
 18.24       $19,420,000 $21,107,000   .....     2001
 18.25     The 2000 appropriation includes $1,390,000 for 1999 and 
 18.26  $19,095,000 $18,719,000 for 2000.  
 18.27     The 2001 appropriation includes $2,122,000 $2,079,000 for 
 18.28  2000 and $17,298,000 $19,028,000 for 2001.  
 18.29     Any balance in the first year does not cancel but is 
 18.30  available in the second year. 
 18.31     Sec. 19.  Laws 1999, chapter 205, article 1, section 71, 
 18.32  subdivision 7, is amended to read: 
 18.33     Subd. 7.  [SCHOOL AGE CARE AID.] For extended day aid 
 18.34  according to Minnesota Statutes, section 124D.22: 
 18.35       $274,000       .....     2000 
 18.36       $216,000 $245,000       .....     2001
 19.1      The 2000 appropriation includes $30,000 for 1999 and 
 19.2   $244,000 for 2000. 
 19.3      The 2001 appropriation includes $27,000 for 2000 and 
 19.4   $189,000 $218,000 for 2001. 
 19.5      Any balance in the first year does not cancel but is 
 19.6   available in the second year. 
 19.7      Sec. 20.  Laws 1999, chapter 205, article 1, section 71, 
 19.8   subdivision 9, is amended to read: 
 19.9      Subd. 9.  [MFIP CHILD CARE.] For child care assistance 
 19.10  according to Minnesota Statutes, section 119B.05: 
 19.11       $86,318,000 $66,524,000    .....     2000 
 19.12       $88,443,000 $78,606,000    .....     2001
 19.13     Any balance in the first year does not cancel but is 
 19.14  available in the second year. 
 19.15     Sec. 21.  Laws 1999, chapter 205, article 2, section 4, 
 19.16  subdivision 2, is amended to read: 
 19.17     Subd. 2.  [FAMILY COLLABORATIVES.] For family 
 19.18  collaboratives according to Laws 1995, First Special Session 
 19.19  chapter 3, article 4, section 29, subdivision 10 Minnesota 
 19.20  Statutes, section 124D.23: 
 19.21       $4,777,000     .....     2000
 19.22       $2,535,000 $2,435,000    .....     2001
 19.23     No new family services collaboratives shall be funded with 
 19.24  this appropriation after June 30, 1999.  The general fund base 
 19.25  appropriation for fiscal year 2002 is $1,852,000 and for fiscal 
 19.26  year 2003 is $1,245,000. 
 19.27     Any balance in the first year does not cancel but is 
 19.28  available in the second year. 
 19.29     Sec. 22.  Laws 1999, chapter 205, article 2, section 4, 
 19.30  subdivision 3, is amended to read: 
 19.31     Subd. 3.  [COMMUNITY EDUCATION AID.] For community 
 19.32  education aid according to Minnesota Statutes, section 124D.20: 
 19.33       $14,136,000    .....     2000 
 19.34       $14,696,000 $15,274,000    .....     2001 
 19.35     The 2000 appropriation includes $160,000 for 1999 and 
 19.36  $13,976,000 for 2000.  
 20.1      The 2001 appropriation includes $1,552,000 for 2000 and 
 20.2   $13,144,000 $13,722,000 for 2001.  
 20.3      Any balance in the first year does not cancel but is 
 20.4   available in the second year. 
 20.5      Sec. 23.  Laws 1999, chapter 205, article 2, section 4, 
 20.6   subdivision 4, is amended to read: 
 20.7      Subd. 4.  [ADULTS WITH DISABILITIES PROGRAM AID.] For 
 20.8   adults with disabilities programs according to Minnesota 
 20.9   Statutes, section 124D.56: 
 20.10       $670,000       .....     2000 
 20.11       $670,000 $702,000      .....     2001 
 20.12     Any balance in the first year does not cancel but is 
 20.13  available in the second year. 
 20.14     Of the 2001 amount, $32,000 must be used to reinstate 
 20.15  funding for the adults with disabilities pilot programs that 
 20.16  were started in fiscal year 1998 or fiscal year 1999.  
 20.17  Notwithstanding Minnesota Statutes, section 124D.56, subdivision 
 20.18  3, pilot programs under this section may not levy for the adults 
 20.19  with disabilities program revenue.  The reinstated programs must 
 20.20  report to the department of children, families, and learning by 
 20.21  January 15, 2001, with recommendations for expanding this 
 20.22  program statewide.  This is a one-time appropriation and is not 
 20.23  added to the base. 
 20.24     Sec. 24.  Laws 1999, chapter 205, article 3, section 5, 
 20.25  subdivision 9, is amended to read: 
 20.26     Subd. 9.  [MALE RESPONSIBILITY AND FATHERING GRANTS.] For 
 20.27  grants according to Minnesota Statutes, section 124D.33: 
 20.28       $250,000       .....     2000 
 20.29       $250,000       .....     2001
 20.30     Any balance in the first year does not cancel but is 
 20.31  available in the second year.  
 20.32     Sec. 25.  Laws 1999, chapter 205, article 4, section 12, 
 20.33  subdivision 5, is amended to read: 
 20.34     Subd. 5.  [ADULT BASIC EDUCATION AID.] For adult basic 
 20.35  education aid according to Minnesota Statutes, section 124D.52, 
 20.36  in fiscal year 2000 and Minnesota Statutes, section 124D.53 in 
 21.1   fiscal year 2001:  
 21.2        $20,132,000    .....     2000
 21.3        $22,477,000 $29,063,000   .....     2001 
 21.4      The 2000 appropriation includes $1,227,000 for 1999 and 
 21.5   $18,905,000 for 2000.  
 21.6      The 2001 appropriation includes $2,101,000 for 2000 and 
 21.7   $20,376,000 $26,962,000 for 2001.  
 21.8      Sec. 26.  Laws 1999, chapter 205, article 4, section 12, 
 21.9   subdivision 6, is amended to read: 
 21.10     Subd. 6.  [ADULT BASIC EDUCATION BASIC POPULATION AID.] For 
 21.11  basic population aid for eligible districts under section 7: 
 21.12       $1,960,000 $1,973,000     .....     2000 
 21.13     Notwithstanding Minnesota Statutes, section 127A.45, 
 21.14  subdivision 12, 100 percent of this appropriation is for fiscal 
 21.15  year 2000. 
 21.16     Any balance in the first year does not cancel but is 
 21.17  available in the second year.  This is a one-time appropriation. 
 21.18     Sec. 27.  Laws 1999, chapter 205, article 4, section 12, 
 21.19  subdivision 7, is amended to read: 
 21.20     Subd. 7.  [ADULT GRADUATION AID.] For adult graduation aid 
 21.21  according to Minnesota Statutes, section 124D.54: 
 21.22       $3,184,000 $2,760,000     .....     2000
 21.23       $4,732,000 $3,031,000     .....     2001
 21.24     The 2000 appropriation includes $258,000 $258,000 for 1999 
 21.25  and $2,926,000 $2,502,000 for 2000.  
 21.26     The 2001 appropriation includes $325,000 $278,000 for 2000 
 21.27  and $4,407,000 $2,753,000 for 2001. 
 21.28     Sec. 28.  [COMPETENCY-BASED ADULT BASIC EDUCATION AND 
 21.29  ENGLISH AS A SECOND LANGUAGE LICENSE.] 
 21.30     The board of teaching must convene a task force to develop 
 21.31  a competency-based license for teachers of adult basic education 
 21.32  classes and English as a second language classes.  The 
 21.33  competency-based license must be an alternative to the current 
 21.34  licensing requirements.  By January 15, 2002, the board of 
 21.35  teaching must present their recommendations to the committees of 
 21.36  the legislature responsible for teacher licensing and funding of 
 22.1   adult basic education programs including recommendations for 
 22.2   implementing competency-based licensing for teachers of adult 
 22.3   learners. 
 22.4      Sec. 29.  [ENERGY ASSISTANCE PROGRAM.] 
 22.5      (a) The commissioner of economic security shall establish 
 22.6   policies and procedures to address the findings in the 
 22.7   department of administration's evaluation of Minnesota's energy 
 22.8   assistance program published in December 1999. 
 22.9      (b) The commissioner of economic security shall develop: 
 22.10     (1) outcome measures, in accordance with federal 
 22.11  recommendations, by which to evaluate subgrantee performance and 
 22.12  the program as a whole; 
 22.13     (2) methods to identify the eligible population for the 
 22.14  energy assistance program; 
 22.15     (3) procedures to improve program consistency across the 
 22.16  state.  This shall address program start and end dates, 
 22.17  eligibility determination, eligibility verification, and 
 22.18  application and payment processing times; and 
 22.19     (4) improved internal management practices, including 
 22.20  program oversight, evaluation and auditing of the service 
 22.21  delivery agencies, computer software system, and overall 
 22.22  management.  The commissioner shall also include proposals for 
 22.23  the use of technology to provide for the most cost-effective 
 22.24  service delivery. 
 22.25     Sec. 30.  [REPORT.] 
 22.26     The commissioner of economic security shall submit a report 
 22.27  to the legislature detailing the costs and benefits of operating 
 22.28  the energy assistance program.  The report must be submitted to 
 22.29  the senate jobs, energy and community development committee, and 
 22.30  the house jobs and economic development policy committee by 
 22.31  January 30, 2001. 
 22.32     Sec. 31.  [TRANSFER OF ENERGY ASSISTANCE AND WEATHERIZATION 
 22.33  RESPONSIBILITIES.] 
 22.34     Energy assistance and weatherization responsibilities under 
 22.35  Minnesota Statutes, sections 119A.40, 119A.41, 119A.42, and 
 22.36  119A.425 are transferred from the department of children, 
 23.1   families, and learning to the department of economic security.  
 23.2      <b>EFFECTIVE DATE:</b>  This section is effective the day 
 23.3   following final enactment. 
 23.4      Sec. 32.  [SOCIAL SERVICE CHILD CARE POOL FOR MFIP CHILD 
 23.5   CARE.] 
 23.6      (a) The commissioner of children, families, and learning 
 23.7   shall use funds appropriated under section 40, subdivision 2, to 
 23.8   establish a MFIP social services child care pool to provide 
 23.9   child care assistance for eligible MFIP families participating 
 23.10  in social service activities under paragraph (b) as an approved 
 23.11  activity. 
 23.12     Any unspent funds in the MFIP social services child care 
 23.13  pool must be used for child care assistance under Minnesota 
 23.14  Statutes, section 119B.03.  The commissioner must notify the 
 23.15  chairs of the family and early childhood finance committees in 
 23.16  the house and the senate if expenditures from the MFIP social 
 23.17  services child care pool are expected to exceed the amount of 
 23.18  money available. 
 23.19     (b) To be eligible for social service child care 
 23.20  assistance, an MFIP participant must be participating in 
 23.21  chemical dependency social services or mental health social 
 23.22  services as an approved activity in the participant's employment 
 23.23  plan or job search support plan under Minnesota Statutes, 
 23.24  section 256J.52 or work first under Minnesota Statutes, chapter 
 23.25  256K.  Child care assistance may be provided to an eligible MFIP 
 23.26  participant for the amount of time necessary to participate in 
 23.27  the approved social service plus reasonable travel time. 
 23.28     (c) The county providing child care assistance must notify 
 23.29  the commissioner through the regular reporting process of any 
 23.30  family that meets the criteria of the MFIP social services child 
 23.31  care assistance pool. 
 23.32     This section expires on June 30, 2003. 
 23.33     Sec. 33.  [EXPEDITED APPLICATION FOR MINOR STUDENTS.] 
 23.34     The commissioner of children, families, and learning, as a 
 23.35  component of the training for counties to administer child care 
 23.36  assistance under Minnesota Statutes, chapter 119B, must provide 
 24.1   technical assistance on ways to expedite and streamline the 
 24.2   application process for minor parents participating in 
 24.3   school-based child care.  The commissioner must make child care 
 24.4   assistance information and applications available to 
 24.5   school-based adolescent parenting programs so eligible minor 
 24.6   parents are able to complete their high school education.  
 24.7      Sec. 34.  [INTENSIVE ESL AND CITIZENSHIP GRANTS.] 
 24.8      The commissioner of children, families, and learning shall 
 24.9   establish a reimbursement grant program to fund intensive 
 24.10  English as a second language (ESL) programs for eligible adults 
 24.11  who participate in the MFIP program under Minnesota Statutes, 
 24.12  chapter 256J, with funds appropriated under section 39, 
 24.13  subdivision 3.  Intensive ESL programming must provide intensive 
 24.14  instruction for MFIP participants who are making inadequate 
 24.15  literacy progress as measured by a standard assessment test.  
 24.16  The intensive instruction must be focused on participants' 
 24.17  gaining sufficient literacy to achieve self-sufficiency through 
 24.18  employment.  Grant recipients may also offer citizenship 
 24.19  programs for qualified noncitizens under United States Code, 
 24.20  title 8, section 1611 et. seq.  
 24.21     Organizations eligible for grants under this section 
 24.22  include adult basic education programs, school districts, 
 24.23  post-secondary institutions, and nonprofit or community-based 
 24.24  organizations or other private organizations with experience in 
 24.25  providing English language and citizenship instruction to 
 24.26  non-English speaking immigrants and refugees.  Grant 
 24.27  applications must contain information required by the 
 24.28  commissioner in the form prescribed by the commissioner.  At a 
 24.29  minimum, the application must document experience in literacy 
 24.30  and citizenship programs serving immigrants and refugees, 
 24.31  describe fiscal accounting systems and reporting capacity, 
 24.32  ensure that administrative expenses are limited to five percent 
 24.33  of grant funds, and provide a description of the proposed 
 24.34  instructional services and training plans.  Funds must be paid 
 24.35  to programs on a reimbursement basis.  The intensive ESL and 
 24.36  citizenship grant program expires on June 30, 2003. 
 25.1      Sec. 35.  [INSTITUTIONAL ADULT BASIC EDUCATION PROGRAMS.] 
 25.2      Based on the fiscal reports under section 11, the 
 25.3   commissioner shall evaluate the reimbursement for adult basic 
 25.4   education instruction provided by public nonprofit institutions 
 25.5   and make recommendations to the legislature.  
 25.6      Sec. 36.  [CHILD AND ADULT CARE FOOD PROGRAM.] 
 25.7      The commissioner of the department of children, families, 
 25.8   and learning must request a waiver from the department of 
 25.9   agriculture so that child care programs that are licensed under 
 25.10  Minnesota Statutes, section 245A.14, subdivision 4, are allowed 
 25.11  to participate in the federal child and adult care food program 
 25.12  under United States Code, title 42, section 1766. 
 25.13     Sec. 37.  [FAMILY PROVIDER PROPORTIONAL PARTICIPATION.] 
 25.14     The commissioner of the department of children, families, 
 25.15  and learning must ensure that licensed family child care 
 25.16  providers have an opportunity to participate in policy 
 25.17  discussions that impact child care.  The commissioner must seek 
 25.18  proportional participation and input from family providers 
 25.19  including, but not limited to, participation on task forces.  
 25.20     Sec. 38.  [APPROPRIATIONS.] 
 25.21     Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
 25.22  LEARNING.] The sums indicated in this section are appropriated 
 25.23  from the general fund to the department of children, families, 
 25.24  and learning for the fiscal years designated. 
 25.25     Subd. 2.  [ADULT BASIC EDUCATION SUPPLEMENTAL SERVICE 
 25.26  GRANTS.] For adult basic education supplemental service grants 
 25.27  according to Minnesota Statutes, section 124D.522: 
 25.28       $  700,000     .....     2001 
 25.29     This is a base appropriation for fiscal years 2002 and 2003.
 25.30     Subd. 3.  [ADULT BASIC EDUCATION ADMINISTRATION.] For 
 25.31  administration of the state adult basic education program 
 25.32  including auditing, technical assistance, reporting 
 25.33  requirements, and other administrative responsibilities under 
 25.34  this article: 
 25.35       $100,000     .....     2001 
 25.36     This appropriation is added to the fiscal year 2002 and 
 26.1   2003 base. 
 26.2      Subd. 4.  [HOUSING COLLABORATION.] For a grant to the city 
 26.3   of St. Louis Park for the Meadowbrook Collaborative Housing 
 26.4   Project to enhance youth outreach services and to provide 
 26.5   educational and recreational programming for at-risk youth.  The 
 26.6   collaborative must include a cross section of public and private 
 26.7   sector community representatives.  
 26.8        $   25,000     .....     2001 
 26.9      This is a one-time appropriation. 
 26.10     Subd. 5.  [ADMINISTRATION.] For the administrative expenses 
 26.11  of programs under section 39, including the amount necessary for 
 26.12  a program under section 39, subdivision 2, to draw down federal 
 26.13  funds in fiscal year 2001. 
 26.14       $   50,000     .....     2001 
 26.15     This is a one-time appropriation. 
 26.16     Sec. 39.  [TANF APPROPRIATIONS.] 
 26.17     Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
 26.18  LEARNING.] The sums indicated in this section for fiscal years 
 26.19  2001 to 2003 are appropriated to the commissioner of human 
 26.20  services from the federal Temporary Assistance for Needy 
 26.21  Families (TANF) block grant funds authorized under United States 
 26.22  Code, title 42, section 601 et seq., and awarded in federal 
 26.23  fiscal years 2000 to 2002, and are transferred to the department 
 26.24  of children, families, and learning for the fiscal years 
 26.25  indicated for use as provided in this section.  Appropriations 
 26.26  under this section are one-time appropriations and are not added 
 26.27  to the base.  
 26.28     Subd. 2.  [MALE RESPONSIBILITY AND FATHERING GRANTS.] For 
 26.29  grants according to Minnesota Statutes, section 124D.33: 
 26.30       $250,000       .....     2001 
 26.31       $250,000       .....     2002 
 26.32       $250,000       .....     2003 
 26.33     Subd. 3.  [INTENSIVE ESL AND CITIZENSHIP GRANTS.] For 
 26.34  intensive English as a second language (ESL) and citizenship 
 26.35  grants for eligible MFIP participants under section 34: 
 26.36       $1,837,000     .....     2001
 27.1        $1,000,000     .....     2002
 27.2        $1,000,000     .....     2003
 27.3      A balance may be carried forward one fiscal year. 
 27.4      Subd. 4.  [TRANSITIONAL HOUSING PROGRAMS.] For 
 27.5   reimbursement grants to transitional housing programs under 
 27.6   Minnesota Statutes, section 119A.43: 
 27.7        $1,000,000     .....     2001 
 27.8        $1,078,000     .....     2002 
 27.9      Any balance remaining in 2002 may be carried forward one 
 27.10  fiscal year. 
 27.11     These appropriations must be used for up to four months of 
 27.12  transitional housing for families with incomes below 200 percent 
 27.13  of the federal poverty guidelines.  Payment must be made to 
 27.14  programs on a reimbursement basis. 
 27.15     Sec. 40.  [FEDERAL TANF TRANSFERS.] 
 27.16     Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
 27.17  LEARNING.] The sums indicated in this section are transferred 
 27.18  from the federal TANF fund to the child care and development 
 27.19  fund and appropriated to the department of children, families, 
 27.20  and learning for the fiscal years designated.  The commissioner 
 27.21  shall ensure that all transferred funds are expended in 
 27.22  accordance with the child care and development fund regulations 
 27.23  and that the maximum allowable transferred funds are used for 
 27.24  the program in this section.  Appropriations under this section 
 27.25  are one-time appropriations and are not added to the base.  
 27.26     Subd. 2.  [SOCIAL SERVICE CHILD CARE POOL FOR MFIP CHILD 
 27.27  CARE.] For social service child care costs of eligible MFIP 
 27.28  participants under section 32: 
 27.29       $3,233,000     .....     2001
 27.30       $3,297,000     .....     2002
 27.31       $2,865,000     .....     2003
 27.32     A balance may be carried forward one fiscal year.  Any 
 27.33  amount remaining in fiscal year 2003 that is not needed for 
 27.34  social service child care must be used for assistance under 
 27.35  Minnesota Statutes, section 119B.03. 
 27.36     Subd. 3.  [TRANSITION YEAR FAMILIES.] To provide 
 28.1   uninterrupted assistance under Minnesota Statutes, section 
 28.2   119B.03, for families completing transition year child care 
 28.3   assistance: 
 28.4        $1,080,000     .....     2001
 28.5        $3,620,000     .....     2002
 28.6        $4,040,000     .....     2003
 28.7      A balance may be carried forward one fiscal year.  Any 
 28.8   amount remaining in fiscal year 2003 that is not needed for 
 28.9   uninterrupted child care must be used for assistance under 
 28.10  Minnesota Statutes, section 119B.03. 
 28.11     Sec. 41.  [INSTRUCTION TO REVISOR.] 
 28.12     The revisor of statutes shall renumber each section of 
 28.13  Minnesota Statutes listed in column A with the number listed in 
 28.14  column B.  The revisor shall also make necessary cross-reference 
 28.15  changes consistent with the renumbering. 
 28.16            Column A        Column B 
 28.17            119A.40         268.985 
 28.18            119A.41         268.986 
 28.19            119A.42         268.987 
 28.20            119A.425        268.989 
 28.21     Sec. 42.  [REPEALER.] 
 28.22     (a) Minnesota Statutes 1998, section 124D.53, is repealed. 
 28.23     (b) Laws 1998, First Special Session chapter 1, article 1, 
 28.24  section 10, subdivision 2, as amended by Laws 1999, chapter 205, 
 28.25  article 4, section 8, is repealed. 
 28.26                             ARTICLE 2 
 28.27         KINDERGARTEN THROUGH GRADE 12:  GENERAL EDUCATION 
 28.28     Section 1.  [121A.24] [RESTRICTION ON DISTRIBUTION OF 
 28.29  CONTRACEPTIVES.] 
 28.30     A public school may not distribute or allow to be 
 28.31  distributed on school property contraceptives or a voucher or 
 28.32  prescription for contraceptives to a student without the written 
 28.33  permission of a minor student's parent or guardian. 
 28.34     Sec. 2.  [121A.245] [PROHIBITION AGAINST PROGRAMS 
 28.35  ADVOCATING SEXUAL ACTIVITY BY MINORS.] 
 28.36     A public elementary, middle, or secondary school, or state 
 29.1   agency shall not implement or carry out a program, activity, or 
 29.2   curriculum that has the purpose or demonstrable effect of 
 29.3   encouraging sexual activity by minors. 
 29.4      Sec. 3.  Minnesota Statutes 1998, section 123B.75, 
 29.5   subdivision 5, is amended to read: 
 29.6      Subd. 5.  [LEVY RECOGNITION.] (a) "School district tax 
 29.7   settlement revenue" means the current, delinquent, and 
 29.8   manufactured home property tax receipts collected by the county 
 29.9   and distributed to the school district. 
 29.10     (b) In June of each year, the school district must 
 29.11  recognize as revenue, in the fund for which the levy was made, 
 29.12  the lesser of:  
 29.13     (1) the May, June, and July school district tax settlement 
 29.14  revenue received in that calendar year; or 
 29.15     (2) the sum of: 
 29.16     (i) 31 percent of the referendum levy certified in the 
 29.17  prior calendar year according to section 126C.17, subdivision 9; 
 29.18  plus 
 29.19     (ii) the entire amount of the levy certified in the prior 
 29.20  calendar year according to sections 124D.86, subdivision 4, for 
 29.21  school districts receiving revenue under 124D.86, subdivision 3, 
 29.22  clauses (1), (2) and (3); 126C.41, subdivisions 1, 2, and 3, 
 29.23  paragraphs (4), (5), and (6); 126C.43, subdivision 2; and 
 29.24  126C.48, subdivision 6. 
 29.25     Sec. 4.  Minnesota Statutes 1999 Supplement, section 
 29.26  124D.11, subdivision 1, is amended to read: 
 29.27     Subdivision 1.  [GENERAL EDUCATION REVENUE.] (a) General 
 29.28  education revenue must be paid to a charter school as though it 
 29.29  were a district.  The general education revenue for each 
 29.30  adjusted marginal cost pupil unit is the state average general 
 29.31  education revenue per pupil unit, plus the referendum 
 29.32  equalization aid allowance in the pupil's district of residence, 
 29.33  minus an amount equal to the product of the formula allowance 
 29.34  according to section 126C.10, subdivision 2, times .0485, 
 29.35  calculated without basic skills revenue, transportation sparsity 
 29.36  revenue, and the transportation portion of the transition 
 30.1   revenue adjustment, plus basic skills revenue as though the 
 30.2   school were a school district. 
 30.3      (b) Notwithstanding paragraph (a), for charter schools in 
 30.4   the first year of operation, general education revenue shall be 
 30.5   computed using the number of adjusted pupil units in the current 
 30.6   fiscal year.  
 30.7      <b>EFFECTIVE DATE:</b>  This section is effective the day 
 30.8   following final enactment. 
 30.9      Sec. 5.  Minnesota Statutes 1999 Supplement, section 
 30.10  124D.65, subdivision 4, is amended to read: 
 30.11     Subd. 4.  [STATE TOTAL LEP REVENUE.] (a) The state total 
 30.12  limited English proficiency programs revenue for fiscal year 
 30.13  2000 equals $27,454,000.  The state total limited English 
 30.14  proficiency programs revenue for fiscal year 2001 equals 
 30.15  $31,752,000.  
 30.16     (b) The state total limited English proficiency programs 
 30.17  revenue for later fiscal years equals: 
 30.18     (1) the state total limited English proficiency programs 
 30.19  revenue for the preceding fiscal year; times 
 30.20     (2) the program growth factor under section 125A.76 
 30.21  subdivision 1; times 
 30.22     (3) the ratio of the state total number of pupils with 
 30.23  limited English proficiency for the current fiscal year to the 
 30.24  state total number of pupils with limited English proficiency 
 30.25  for the preceding fiscal year. 
 30.26     <b>EFFECTIVE DATE:</b>  This section is effective the day 
 30.27  following final enactment. 
 30.28     Sec. 6.  Minnesota Statutes 1999 Supplement, section 
 30.29  124D.86, subdivision 1, is amended to read: 
 30.30     Subdivision 1.  [USE OF THE REVENUE.] Integration revenue 
 30.31  under this section must be used for programs established under a 
 30.32  desegregation plan filed with the department of children, 
 30.33  families, and learning according to Minnesota Rules, parts 
 30.34  3535.0100 to 3535.0180, or under court order, to increase.  The 
 30.35  revenue must be used to create or enhance learning opportunities 
 30.36  and reduce the learning gap between learners living in high 
 31.1   concentrations of poverty and their peers which are designed to 
 31.2   provide opportunities for students to have increased interracial 
 31.3   contacts through classroom experiences, staff initiatives, and 
 31.4   other educationally related programs. 
 31.5      Sec. 7.  Minnesota Statutes 1998, section 124D.86, is 
 31.6   amended by adding a subdivision to read: 
 31.7      Subd. 1a.  [BUDGET APPROVAL PROCESS.] Before a district 
 31.8   receives any revenue under subdivision 3, clause (4), the 
 31.9   district must submit to the department of children, families, 
 31.10  and learning, for its review and approval, a budget detailing 
 31.11  the costs of the desegregation/integration plan filed under 
 31.12  Minnesota Rules, parts 3535.0100 to 3535.0180.  Notwithstanding 
 31.13  chapter 14, the department may develop criteria for budget 
 31.14  approval.  The criteria developed by the department should 
 31.15  address, at a minimum, the following: 
 31.16     (1) budget items that cannot be approved unless they are 
 31.17  part of any overall desegregation plan approved by the district 
 31.18  for isolated sites or by the multidistrict collaboration council 
 31.19  and participating individual members; 
 31.20     (2) a budget that must indicate how revenue expenditures 
 31.21  will be used specifically to support increased opportunities for 
 31.22  interracial contact; 
 31.23     (3) components of the budget to be considered by the 
 31.24  department, including staffing, curriculum, transportation, 
 31.25  facilities, materials, and equipment and reasonable planning 
 31.26  costs, as determined by the department; and 
 31.27     (4) if plans are proposed to enhance existing programs, a 
 31.28  total budget reflecting the appropriation for the program that 
 31.29  includes the part funded using integration revenue and the part 
 31.30  funded using other revenues. 
 31.31     Sec. 8.  Minnesota Statutes 1998, section 124D.86, is 
 31.32  amended by adding a subdivision to read: 
 31.33     Subd. 1b.  [PLAN COMPONENTS.] Plans submitted by each 
 31.34  district under Minnesota Rules, parts 3535.0160 and 3535.0170, 
 31.35  must be approved by the district's board before integration 
 31.36  revenue will be awarded.  If a district is applying for revenue 
 32.1   for a plan that is part of a multidistrict council, the 
 32.2   individual district shall not receive revenue unless it ratifies 
 32.3   the plan adopted by its multidistrict council or approves a 
 32.4   modified plan with a written explanation of any modifications.  
 32.5   Each plan shall contain: 
 32.6      (1) an identification of the integration issues at the 
 32.7   sites or districts covered by Minnesota Rules, parts 3535.0100 
 32.8   to 3535.0180; 
 32.9      (2) a description of the community outreach that preceded 
 32.10  the integration plan, such that the commissioner can determine 
 32.11  whether the membership of the planning councils complied with 
 32.12  the requirements of Minnesota Rules, parts 3535.0100 to 
 32.13  3535.0180; and 
 32.14     (3) the specific goals of the integration plan. 
 32.15  By June 30 of the subsequent fiscal year, each district shall 
 32.16  report to the commissioner in writing about the extent to which 
 32.17  the integration goals identified in the plan were met. 
 32.18     Sec. 9.  Minnesota Statutes 1999 Supplement, section 
 32.19  124D.86, subdivision 3, is amended to read: 
 32.20     Subd. 3.  [INTEGRATION REVENUE.] For fiscal year 2000 and 
 32.21  later fiscal years, integration revenue equals the following 
 32.22  amounts: 
 32.23     (1) for independent school district No. 709, Duluth, $207 
 32.24  times the adjusted pupil units for the school year; 
 32.25     (2) for independent school district No. 625, St. Paul, $446 
 32.26  times the adjusted pupil units for the school year; 
 32.27     (3) for special school district No. 1, Minneapolis, $536 
 32.28  times the adjusted pupil units for the school year; and 
 32.29     (4) for a district not listed in clause (1), (2), or (3) 
 32.30  that is required to implement a plan according to the 
 32.31  requirements of Minnesota Rules, parts 3535.0100 to 
 32.32  3535.0180, as proposed in 23 State Register 1344, December 7, 
 32.33  1998, the lesser of 
 32.34     (i) the actual cost of implementing the plan during the 
 32.35  fiscal year minus the aid received under subdivision 6, or 
 32.36     (ii) $93 times the adjusted pupil units for the school year.
 33.1      Any money received by districts in clauses (1) to (3) which 
 33.2   exceeds the amount received in fiscal year 2000 shall be subject 
 33.3   to the budget requirements in subdivision 1a. 
 33.4      Sec. 10.  Minnesota Statutes 1998, section 124D.86, 
 33.5   subdivision 6, is amended to read: 
 33.6      Subd. 6.  [ALTERNATIVE ATTENDANCE PROGRAMS.] (a) The 
 33.7   integration aid under subdivision 5 must be adjusted for each 
 33.8   pupil residing in a district eligible for integration revenue 
 33.9   under subdivision 3, clause (1), (2), or (3), and attending a 
 33.10  nonresident district under sections 123A.05 to 123A.08, 124D.03, 
 33.11  124D.06, 124D.07, and 124D.08, that is not eligible for 
 33.12  integration revenue under subdivision 3, clause (1), (2), or 
 33.13  (3), and has implemented a plan under Minnesota Rules, parts 
 33.14  3535.0100 to 3535.0180, if the enrollment of the pupil in the 
 33.15  nonresident district contributes to desegregation or integration 
 33.16  purposes.  The adjustments must be made according to this 
 33.17  subdivision.  
 33.18     (b) Aid paid to the district of the pupil's residence must 
 33.19  be reduced by an amount equal to the revenue per resident pupil 
 33.20  unit of the resident district times the number of resident pupil 
 33.21  units attributable to the pupil for the time the pupil is 
 33.22  enrolled in a nonresident district. 
 33.23     (c) Aid paid to a district serving nonresidents must be 
 33.24  increased by an amount equal to the aid reduction to the 
 33.25  resident district under paragraphs (b) and (d) revenue per pupil 
 33.26  unit of the resident district under subdivision 3, clause (1), 
 33.27  (2), or (3), minus the revenue attributable to the pupil in the 
 33.28  nonresident district under subdivision 3, clause (4), for the 
 33.29  time the pupil is enrolled in the nonresident district.  
 33.30     (d) If the amount of the reduction to be made from the aid 
 33.31  of a district is greater than the amount of aid otherwise due 
 33.32  the district, the excess reduction must be made from other state 
 33.33  aids due the district. 
 33.34     <b>EFFECTIVE DATE:</b>  This section is effective the day 
 33.35  following final enactment. 
 33.36     Sec. 11.  Minnesota Statutes 1999 Supplement, section 
 34.1   124D.87, is amended to read: 
 34.2      124D.87 [INTERDISTRICT DESEGREGATION OR INTEGRATION 
 34.3   TRANSPORTATION AID.] 
 34.4      (a) A district that provides transportation of pupils to 
 34.5   and from an interdistrict program for desegregation or 
 34.6   integration purposes is eligible for state aid to cover 
 34.7   reimburse the additional costs of transportation during the 
 34.8   preceding fiscal year.  
 34.9      (b) A district in the metropolitan area may apply to the 
 34.10  commissioner for state aid to cover reimburse the costs of 
 34.11  transporting pupils who are enrolled under section 
 34.12  124D.03 during the preceding fiscal year if the enrollment of 
 34.13  the student in the nonresident district contributes to 
 34.14  desegregation or integration purposes.  The commissioner shall 
 34.15  develop the form and manner of applications for state aid, the 
 34.16  criteria to be used to determine when transportation is for 
 34.17  desegregation or integration purposes, and the accounting 
 34.18  procedure to be used to determine excess costs.  In determining 
 34.19  aid amounts, the commissioner shall consider other revenue 
 34.20  received by the district for transportation for desegregation or 
 34.21  integration purposes. 
 34.22     (c) Aid must be paid under paragraph (b) only if aid 
 34.23  amounts under paragraph (a) have been fully funded. 
 34.24     <b>EFFECTIVE DATE:</b>  This section is effective July 1, 2001. 
 34.25     Sec. 12.  Minnesota Statutes 1999 Supplement, section 
 34.26  126C.052, is amended to read: 
 34.27     126C.052 [CLASS SIZE, ALL-DAY KINDERGARTEN, AND SPECIAL 
 34.28  EDUCATION STUDENT-TO-INSTRUCTOR RATIO RESERVE.] 
 34.29     A district is required to reserve $3 in fiscal year 2000 
 34.30  and $11 in fiscal year 2001 and later per adjusted marginal cost 
 34.31  pupil unit for class size reduction, all-day kindergarten, or 
 34.32  for reducing special education student-to-instructor ratios.  
 34.33  The school board of each district must pass a resolution stating 
 34.34  which one of these three programs will be funded with this 
 34.35  reserve.  The reserve amount under this section must be 
 34.36  allocated to the education site as defined in section 123B.04, 
 35.1   subdivision 1, according to a plan adopted by the school board. 
 35.2      <b>EFFECTIVE DATE:</b>  This section is effective the day 
 35.3   following final enactment. 
 35.4      Sec. 13.  Minnesota Statutes 1999 Supplement, section 
 35.5   126C.10, subdivision 1, is amended to read: 
 35.6      Subdivision 1.  [GENERAL EDUCATION REVENUE.] For fiscal 
 35.7   year 2000 2001 and thereafter, the general education revenue for 
 35.8   each district equals the sum of the district's basic revenue, 
 35.9   basic skills revenue, training and experience revenue, secondary 
 35.10  sparsity revenue, elementary sparsity revenue, transportation 
 35.11  sparsity revenue, total operating capital revenue, equity 
 35.12  revenue, small school enhanced equity revenue, referendum offset 
 35.13  adjustment, transition revenue, and supplemental revenue. 
 35.14     <b>EFFECTIVE DATE:</b>  This section is effective for revenue for 
 35.15  fiscal year 2001. 
 35.16     Sec. 14.  Minnesota Statutes 1999 Supplement, section 
 35.17  126C.10, subdivision 2, is amended to read: 
 35.18     Subd. 2.  [BASIC REVENUE.] The basic revenue for each 
 35.19  district equals the formula allowance times the resident 
 35.20  adjusted marginal cost pupil units for the school year.  The 
 35.21  formula allowance for fiscal year 1998 is $3,581.  The formula 
 35.22  allowance for fiscal year 1999 is $3,530.  The formula allowance 
 35.23  for fiscal year 2000 is $3,740.  The formula allowance for 
 35.24  fiscal year 2001 and subsequent fiscal years is $3,875 $3,925. 
 35.25     <b>EFFECTIVE DATE:</b>  This section is effective the day 
 35.26  following final enactment. 
 35.27     Sec. 15.  Minnesota Statutes 1999 Supplement, section 
 35.28  126C.10, subdivision 14, is amended to read: 
 35.29     Subd. 14.  [USES OF TOTAL OPERATING CAPITAL REVENUE.] Total 
 35.30  operating capital revenue may be used only for the following 
 35.31  purposes: 
 35.32     (1) to acquire land for school purposes; 
 35.33     (2) to acquire or construct buildings for school purposes; 
 35.34     (3) to rent or lease buildings, including the costs of 
 35.35  building repair or improvement that are part of a lease 
 35.36  agreement; 
 36.1      (4) to improve and repair school sites and buildings, and 
 36.2   equip or reequip school buildings with permanent attached 
 36.3   fixtures, including library media centers; 
 36.4      (5) for a surplus school building that is used 
 36.5   substantially for a public nonschool purpose; 
 36.6      (6) to eliminate barriers or increase access to school 
 36.7   buildings by individuals with a disability; 
 36.8      (7) to bring school buildings into compliance with the 
 36.9   Uniform Fire Code adopted according to chapter 299F; 
 36.10     (8) to remove asbestos from school buildings, encapsulate 
 36.11  asbestos, or make asbestos-related repairs; 
 36.12     (9) to clean up and dispose of polychlorinated biphenyls 
 36.13  found in school buildings; 
 36.14     (10) to clean up, remove, dispose of, and make repairs 
 36.15  related to storing heating fuel or transportation fuels such as 
 36.16  alcohol, gasoline, fuel oil, and special fuel, as defined in 
 36.17  section 296A.01; 
 36.18     (11) for energy audits for school buildings and to modify 
 36.19  buildings if the audit indicates the cost of the modification 
 36.20  can be recovered within ten years; 
 36.21     (12) to improve buildings that are leased according to 
 36.22  section 123B.51, subdivision 4; 
 36.23     (13) to pay special assessments levied against school 
 36.24  property but not to pay assessments for service charges; 
 36.25     (14) to pay principal and interest on state loans for 
 36.26  energy conservation according to section 216C.37 or loans made 
 36.27  under the Northeast Minnesota Economic Protection Trust Fund Act 
 36.28  according to sections 298.292 to 298.298; 
 36.29     (15) to purchase or lease interactive telecommunications 
 36.30  equipment; 
 36.31     (16) by board resolution, to transfer money into the debt 
 36.32  redemption fund to:  (i) pay the amounts needed to meet, when 
 36.33  due, principal and interest payments on certain obligations 
 36.34  issued according to chapter 475; or (ii) pay principal and 
 36.35  interest on debt service loans or capital loans according to 
 36.36  section 126C.70; 
 37.1      (17) to pay operating capital-related assessments of any 
 37.2   entity formed under a cooperative agreement between two or more 
 37.3   districts; 
 37.4      (18) to purchase or lease computers and related materials, 
 37.5   copying machines, telecommunications equipment, and other 
 37.6   noninstructional equipment; 
 37.7      (19) to purchase or lease assistive technology or equipment 
 37.8   for instructional programs; 
 37.9      (20) to purchase textbooks; 
 37.10     (21) to purchase new and replacement library books media 
 37.11  resources or technology; 
 37.12     (22) to purchase vehicles; 
 37.13     (23) to purchase or lease telecommunications equipment, 
 37.14  computers, and related equipment for integrated information 
 37.15  management systems for: 
 37.16     (i) managing and reporting learner outcome information for 
 37.17  all students under a results-oriented graduation rule; 
 37.18     (ii) managing student assessment, services, and achievement 
 37.19  information required for students with individual education 
 37.20  plans; and 
 37.21     (iii) other classroom information management needs; and 
 37.22     (24) to pay personnel costs directly related to the 
 37.23  acquisition, operation, and maintenance of telecommunications 
 37.24  systems, computers, related equipment, and network and 
 37.25  applications software. 
 37.26     Sec. 16.  Minnesota Statutes 1999 Supplement, section 
 37.27  126C.10, subdivision 23, is amended to read: 
 37.28     Subd. 23.  [REFERENDUM OFFSET ADJUSTMENT.] A district that 
 37.29  qualifies for the referendum allowance reduction under section 
 37.30  126C.17, subdivision 12, and whose referendum allowance under 
 37.31  section 126C.17, subdivision 1, as adjusted under section 
 37.32  126C.17, subdivisions 2 and 12, does not exceed the referendum 
 37.33  allowance limit under section 126C.17, subdivision 2, clause 
 37.34  (2), shall receive a referendum offset adjustment.  In fiscal 
 37.35  year 2000 and thereafter, the referendum offset adjustment is 
 37.36  equal to $25 per resident adjusted marginal cost pupil unit. 
 38.1      <b>EFFECTIVE DATE:</b>  This section is effective the day 
 38.2   following final enactment. 
 38.3      Sec. 17.  Minnesota Statutes 1999 Supplement, section 
 38.4   126C.10, subdivision 24, is amended to read: 
 38.5      Subd. 24.  [EQUITY REVENUE.] (a) A school district 
 38.6   qualifies for equity revenue if the school district's adjusted 
 38.7   marginal cost pupil unit amount of basic revenue, supplemental 
 38.8   revenue, transition revenue, and referendum revenue is less than 
 38.9   the 90th percentile of school districts in its equity region for 
 38.10  those revenue categories and the school district's 
 38.11  administrative offices are not located in a city of the first 
 38.12  class on July 1, 1999. 
 38.13     (b) Equity revenue for a qualifying district that receives 
 38.14  referendum revenue under section 126C.17, subdivision 4, equals 
 38.15  the product of (1) the district's adjusted marginal cost pupil 
 38.16  units for that year; times (2) the sum of (i) $10, plus (ii) 
 38.17  $30, times the school district's equity index computed under 
 38.18  section 126C.10, subdivision 6 27. 
 38.19     (c) Equity revenue for a qualifying district that does not 
 38.20  receive referendum revenue under section 126C.17, subdivision 4, 
 38.21  equals the product of the district's adjusted marginal cost 
 38.22  pupil units for that year times $10. 
 38.23     <b>EFFECTIVE DATE:</b>  This section is effective for revenue for 
 38.24  fiscal year 2001. 
 38.25     Sec. 18.  Minnesota Statutes 1999 Supplement, section 
 38.26  126C.10, subdivision 25, is amended to read: 
 38.27     Subd. 25.  [REGIONAL EQUITY GAP.] The regional equity gap 
 38.28  equals the difference between the fifth and the 90th percentile 
 38.29  of adjusted general revenue per adjusted marginal cost pupil 
 38.30  unit. 
 38.31     <b>EFFECTIVE DATE:</b>  This section is effective the day 
 38.32  following final enactment. 
 38.33     Sec. 19.  Minnesota Statutes 1999 Supplement, section 
 38.34  126C.10, subdivision 26, is amended to read: 
 38.35     Subd. 26.  [DISTRICT EQUITY GAP.] A district's equity gap 
 38.36  equals the greater of zero or the difference between the 
 39.1   district's adjusted general revenue and the regional 90th 
 39.2   percentile of adjusted general revenue per adjusted marginal 
 39.3   cost pupil unit. 
 39.4      <b>EFFECTIVE DATE:</b>  This section is effective the day 
 39.5   following final enactment. 
 39.6      Sec. 20.  Minnesota Statutes 1998, section 126C.10, is 
 39.7   amended by adding a subdivision to read: 
 39.8      Subd. 29.  [SMALL SCHOOL ENHANCED EQUITY REVENUE.] (a) A 
 39.9   district qualifies for small school enhanced equity revenue if:  
 39.10  (1) the sum of its transition, supplemental, and referendum 
 39.11  revenue is less than $800 per adjusted marginal cost pupil unit; 
 39.12  (2) its total adjusted marginal cost pupil units for that year 
 39.13  are less than 3,000; and (3) its adjusted marginal cost pupil 
 39.14  units are fewer in the current year than in the previous year. 
 39.15     (b) A district's small school enhanced equity revenue 
 39.16  equals:  (1) $75; times (2) the district's adjusted marginal 
 39.17  cost pupil units for that year; times (3) the lesser of one, or 
 39.18  the ratio of the percent change in the district's adjusted 
 39.19  marginal cost pupil units from the previous year to the current 
 39.20  year to four percent. 
 39.21     <b>EFFECTIVE DATE:</b>  This section is effective for revenue for 
 39.22  fiscal year 2001. 
 39.23     Sec. 21.  Minnesota Statutes 1999 Supplement, section 
 39.24  126C.12, subdivision 1, is amended to read: 
 39.25     Subdivision 1.  [REVENUE.] Of a district's general 
 39.26  education revenue for fiscal year 2000 and thereafter each 
 39.27  school district shall reserve an amount equal to the formula 
 39.28  allowance multiplied by the following calculation: 
 39.29     (1) the sum of adjusted marginal cost pupil units pupils in 
 39.30  average daily membership, according to section 126C.05, 
 39.31  subdivision 5, in kindergarten times .057; plus 
 39.32     (2) the sum of adjusted marginal cost pupil units pupils in 
 39.33  average daily membership, according to section 126C.05, 
 39.34  subdivision 5, in grades 1 to 3 times .115; plus 
 39.35     (3) the sum of adjusted marginal cost pupil units pupils in 
 39.36  average daily membership, according to section 126C.05, 
 40.1   subdivision 5, in grades 4 to 6 times .06. 
 40.2      <b>EFFECTIVE DATE:</b>  This section is effective the day 
 40.3   following final enactment. 
 40.4      Sec. 22.  Minnesota Statutes 1999 Supplement, section 
 40.5   126C.17, subdivision 9, is amended to read: 
 40.6      Subd. 9.  [REFERENDUM REVENUE.] (a) The revenue authorized 
 40.7   by section 126C.10, subdivision 1, may be increased in the 
 40.8   amount approved by the voters of the district at a referendum 
 40.9   called for the purpose.  The referendum may be called by the 
 40.10  board or shall be called by the board upon written petition of 
 40.11  qualified voters of the district.  The referendum must be 
 40.12  conducted one or two calendar years before the increased levy 
 40.13  authority, if approved, first becomes payable.  Only one 
 40.14  election to approve an increase may be held in a calendar year.  
 40.15  Unless the referendum is conducted by mail under paragraph (g), 
 40.16  the referendum must be held on the first Tuesday after the first 
 40.17  Monday in November.  The ballot must state the maximum amount of 
 40.18  the increased revenue per resident marginal cost pupil unit, the 
 40.19  estimated referendum tax rate as a percentage of referendum 
 40.20  market value in the first year it is to be levied, and that the 
 40.21  revenue must be used to finance school operations.  The ballot 
 40.22  may state a schedule, determined by the board, of increased 
 40.23  revenue per resident marginal cost pupil units unit that differs 
 40.24  from year to year over the number of years for which the 
 40.25  increased revenue is authorized.  If the ballot contains a 
 40.26  schedule showing different amounts, it must also indicate the 
 40.27  estimated referendum tax rate as a percent of referendum market 
 40.28  value for the amount specified for the first year and for the 
 40.29  maximum amount specified in the schedule.  The ballot may state 
 40.30  that existing referendum levy authority is expiring.  In this 
 40.31  case, the ballot may also compare the proposed levy authority to 
 40.32  the existing expiring levy authority, and express the proposed 
 40.33  increase as the amount, if any, over the expiring referendum 
 40.34  levy authority.  The ballot must designate the specific number 
 40.35  of years, not to exceed ten, for which the referendum 
 40.36  authorization applies.  The notice required under section 275.60 
 41.1   may be modified to read, in cases of renewing existing levies: 
 41.2      "BY VOTING "YES" ON THIS BALLOT QUESTION, YOU MAY BE VOTING 
 41.3      FOR A PROPERTY TAX INCREASE." 
 41.4      The ballot may contain a textual portion with the 
 41.5   information required in this subdivision and a question stating 
 41.6   substantially the following:  
 41.7      "Shall the increase in the revenue proposed by (petition 
 41.8   to) the board of ........., School District No. .., be approved?"
 41.9      If approved, an amount equal to the approved revenue per 
 41.10  resident marginal cost pupil unit times the resident marginal 
 41.11  cost pupil units for the school year beginning in the year after 
 41.12  the levy is certified shall be authorized for certification for 
 41.13  the number of years approved, if applicable, or until revoked or 
 41.14  reduced by the voters of the district at a subsequent referendum.
 41.15     (b) The board must prepare and deliver by first class mail 
 41.16  at least 15 days but no more than 30 days before the day of the 
 41.17  referendum to each taxpayer a notice of the referendum and the 
 41.18  proposed revenue increase.  The board need not mail more than 
 41.19  one notice to any taxpayer.  For the purpose of giving mailed 
 41.20  notice under this subdivision, owners must be those shown to be 
 41.21  owners on the records of the county auditor or, in any county 
 41.22  where tax statements are mailed by the county treasurer, on the 
 41.23  records of the county treasurer.  Every property owner whose 
 41.24  name does not appear on the records of the county auditor or the 
 41.25  county treasurer is deemed to have waived this mailed notice 
 41.26  unless the owner has requested in writing that the county 
 41.27  auditor or county treasurer, as the case may be, include the 
 41.28  name on the records for this purpose.  The notice must project 
 41.29  the anticipated amount of tax increase in annual dollars and 
 41.30  annual percentage for typical residential homesteads, 
 41.31  agricultural homesteads, apartments, and commercial-industrial 
 41.32  property within the school district. 
 41.33     The notice for a referendum may state that an existing 
 41.34  referendum levy is expiring and project the anticipated amount 
 41.35  of increase over the existing referendum levy in the first year, 
 41.36  if any, in annual dollars and annual percentage for typical 
 42.1   residential homesteads, agricultural homesteads, apartments, and 
 42.2   commercial-industrial property within the district. 
 42.3      The notice must include the following statement:  "Passage 
 42.4   of this referendum will result in an increase in your property 
 42.5   taxes."  However, in cases of renewing existing levies, the 
 42.6   notice may include the following statement:  "Passage of this 
 42.7   referendum may result in an increase in your property taxes." 
 42.8      (c) A referendum on the question of revoking or reducing 
 42.9   the increased revenue amount authorized pursuant to paragraph 
 42.10  (a) may be called by the board and shall be called by the board 
 42.11  upon the written petition of qualified voters of the district.  
 42.12  A referendum to revoke or reduce the levy amount must be based 
 42.13  upon the dollar amount, local tax rate, or amount per resident 
 42.14  marginal cost pupil unit, that was stated to be the basis for 
 42.15  the initial authorization.  Revenue approved by the voters of 
 42.16  the district pursuant to paragraph (a) must be received at least 
 42.17  once before it is subject to a referendum on its revocation or 
 42.18  reduction for subsequent years.  Only one revocation or 
 42.19  reduction referendum may be held to revoke or reduce referendum 
 42.20  revenue for any specific year and for years thereafter. 
 42.21     (d) A petition authorized by paragraph (a) or (c) is 
 42.22  effective if signed by a number of qualified voters in excess of 
 42.23  15 percent of the registered voters of the district on the day 
 42.24  the petition is filed with the board.  A referendum invoked by 
 42.25  petition must be held on the date specified in paragraph (a). 
 42.26     (e) The approval of 50 percent plus one of those voting on 
 42.27  the question is required to pass a referendum authorized by this 
 42.28  subdivision. 
 42.29     (f) At least 15 days before the day of the referendum, the 
 42.30  district must submit a copy of the notice required under 
 42.31  paragraph (b) to the commissioner and to the county auditor of 
 42.32  each county in which the district is located.  Within 15 days 
 42.33  after the results of the referendum have been certified by the 
 42.34  board, or in the case of a recount, the certification of the 
 42.35  results of the recount by the canvassing board, the district 
 42.36  must notify the commissioner of the results of the referendum. 
 43.1      (g) Except for a referendum held under subdivision 11, any 
 43.2   referendum under this section held on a day other than the first 
 43.3   Tuesday after the first Monday in November must be conducted by 
 43.4   mail in accordance with section 204B.46.  Notwithstanding 
 43.5   paragraph (b) to the contrary, in the case of a referendum 
 43.6   conducted by mail under this paragraph, the notice required by 
 43.7   paragraph (b) must be prepared and delivered by first class mail 
 43.8   at least 20 days before the referendum. 
 43.9      <b>EFFECTIVE DATE:</b>  This section is effective the day 
 43.10  following final enactment. 
 43.11     Sec. 23.  Minnesota Statutes 1999 Supplement, section 
 43.12  126C.44, is amended to read: 
 43.13     126C.44 [CRIME-RELATED COSTS LEVY.] 
 43.14     Each district may make a levy on all taxable property 
 43.15  located within the district for the purposes specified in this 
 43.16  subdivision section.  The maximum amount which may be levied for 
 43.17  all costs under this subdivision section shall be equal to $1.50 
 43.18  multiplied by the population of the school district.  For 
 43.19  purposes of this subdivision section, "population" of the school 
 43.20  district means the same as contained in section 275.14.  The 
 43.21  proceeds of the levy must be used for directly funding the 
 43.22  following purposes or for reimbursing the cities and counties 
 43.23  who contract with the district for the following purposes:  (1) 
 43.24  to pay the costs incurred for the salaries, benefits, and 
 43.25  transportation costs of peace officers and sheriffs for liaison 
 43.26  services in the district's middle and secondary schools; (2) to 
 43.27  pay the costs for a drug abuse prevention program as defined in 
 43.28  Minnesota Statutes 1991 Supplement, section 609.101, subdivision 
 43.29  3, paragraph (f), in the elementary schools; (3) to pay the 
 43.30  costs for a gang resistance education training curriculum in the 
 43.31  middle schools; or (4) to pay the costs for security in the 
 43.32  districts' schools and on school property; or (5) to pay the 
 43.33  costs for other crime prevention and drug abuse and violence 
 43.34  prevention measures taken by the school district.  The district 
 43.35  must initially attempt to contract for services to be provided 
 43.36  by peace officers or sheriffs with the police department of each 
 44.1   city or the sheriff's department of the county within the 
 44.2   district containing the school receiving the services.  If a 
 44.3   local police department or a county sheriff's department does 
 44.4   not wish to provide the necessary services, the district may 
 44.5   contract for these services with any other police or sheriff's 
 44.6   department located entirely or partially within the school 
 44.7   district's boundaries.  The levy authorized under 
 44.8   this subdivision section is not included in determining the 
 44.9   school district's levy limitations. 
 44.10     <b>EFFECTIVE DATE:</b>  This section is effective for taxes 
 44.11  payable in 2001. 
 44.12     Sec. 24.  Minnesota Statutes 1999 Supplement, section 
 44.13  127A.45, subdivision 12a, is amended to read: 
 44.14     Subd. 12a.  [FORWARD SHIFTED AID PAYMENTS.] (a) Nineteen 
 44.15  percent of the state aid in fiscal year 1999, and 31 percent of 
 44.16  the state aid in fiscal years 2000 and later received under 
 44.17  section 124D.86 must be paid by the state to the recipient 
 44.18  school district on July 15 of that year.  The recipient school 
 44.19  district must recognize this aid in the same fiscal year as the 
 44.20  levy is recognized. 
 44.21     (b) One hundred percent of the state aid in fiscal years 
 44.22  2003 and later received under section 124D.87 must be paid by 
 44.23  the state to the recipient school district on August 30 of that 
 44.24  year.  The recipient school district must recognize this aid in 
 44.25  the previous fiscal year. 
 44.26     Sec. 25.  Minnesota Statutes 1998, section 127A.48, 
 44.27  subdivision 1, is amended to read: 
 44.28     Subdivision 1.  [COMPUTATION.] The department of revenue 
 44.29  must annually conduct an assessment/sales ratio study of the 
 44.30  taxable property in each school district in accordance with the 
 44.31  procedures in subdivisions 2 and 3.  Based upon the results of 
 44.32  this these assessment/sales ratio study studies for the three 
 44.33  most recent years, the department of revenue must determine an 
 44.34  aggregate equalized net tax capacity for the various classes of 
 44.35  taxable property in each district, which tax capacity shall be 
 44.36  designated as the adjusted net tax capacity.  The adjusted net 
 45.1   tax capacities shall be determined using the net tax capacity 
 45.2   percentages in effect for the assessment year following the 
 45.3   assessment year of the study.  The department of revenue must 
 45.4   make whatever estimates are necessary to account for changes in 
 45.5   the classification system.  The department of revenue may incur 
 45.6   the expense necessary to make the determinations.  The 
 45.7   commissioner of revenue may reimburse any county or governmental 
 45.8   official for requested services performed in ascertaining the 
 45.9   adjusted net tax capacity.  On or before March 15 annually, the 
 45.10  department of revenue shall file with the chair of the tax 
 45.11  committee of the house of representatives and the chair of the 
 45.12  committee on taxes and tax laws of the senate a report of 
 45.13  adjusted net tax capacities.  On or before June 15 annually, the 
 45.14  department of revenue shall file its final report on the 
 45.15  adjusted net tax capacities established by the previous year's 
 45.16  assessments and the current year's net tax capacity percentages 
 45.17  with the commissioner of children, families, and learning and 
 45.18  each county auditor for those districts for which the auditor 
 45.19  has the responsibility for determination of local tax rates.  A 
 45.20  copy of the report so filed shall be mailed to the clerk of each 
 45.21  district involved and to the county assessor or supervisor of 
 45.22  assessments of the county or counties in which each district is 
 45.23  located. 
 45.24     <b>EFFECTIVE DATE:</b>  This section is effective for taxes 
 45.25  payable in 2001. 
 45.26     Sec. 26.  Minnesota Statutes 1999 Supplement, section 
 45.27  127A.51, is amended to read: 
 45.28     127A.51 [STATEWIDE AVERAGE REVENUE.] 
 45.29     By October 1 of each year the commissioner must estimate 
 45.30  the statewide average adjusted general revenue per adjusted 
 45.31  marginal cost pupil unit and the disparity in adjusted general 
 45.32  revenue among pupils and districts by computing the ratio of the 
 45.33  ninety-fifth percentile to the fifth percentile of adjusted 
 45.34  general revenue.  The commissioner must provide that information 
 45.35  to all districts. 
 45.36     If the disparity in adjusted general revenue as measured by 
 46.1   the ratio of the ninety-fifth percentile to the fifth percentile 
 46.2   increases in any year, the commissioner shall recommend to the 
 46.3   legislature options for change in the general education formula 
 46.4   that will limit the disparity in adjusted general revenue to no 
 46.5   more than the disparity for the previous school year.  The 
 46.6   commissioner must submit the recommended options to the 
 46.7   education committees of the legislature by January 15. 
 46.8      For purposes of this section and section 126C.10, adjusted 
 46.9   general revenue means the sum of basic revenue under section 
 46.10  126C.10, subdivision 2; supplemental revenue under section 
 46.11  126C.10, subdivisions 9 and 12; transition revenue under section 
 46.12  126C.10, subdivision 20; and referendum revenue under section 
 46.13  126C.17. 
 46.14     <b>EFFECTIVE DATE:</b>  This section is effective the day 
 46.15  following final enactment. 
 46.16     Sec. 27.  Laws 1999, chapter 241, article 1, section 66, is 
 46.17  amended to read: 
 46.18     Sec. 66.  [EQUITY REVENUE ADJUSTMENT.] 
 46.19     For fiscal years year 2000 and 2001, a school district that 
 46.20  does not have an operating referendum is eligible for additional 
 46.21  equity revenue under section 30 equal to $12 times the 
 46.22  district's adjusted marginal cost pupil units for that year. 
 46.23     <b>EFFECTIVE DATE:</b>  This section is effective the day 
 46.24  following final enactment. 
 46.25     Sec. 28.  Laws 1999, chapter 241, article 1, section 68, 
 46.26  subdivision 4, is amended to read: 
 46.27     Subd. 4.  [TRANSPORTATION AID FOR ENROLLMENT OPTIONS.] For 
 46.28  transportation of pupils attending post-secondary institutions 
 46.29  according to Minnesota Statutes, section 124D.09, or for 
 46.30  transportation of pupils attending nonresident districts 
 46.31  according to Minnesota Statutes, section 124D.03: 
 46.32       $102,000 $70,000      .....     2000
 46.33       $102,000 $70,000      .....     2001
 46.34     Any balance in the first year does not cancel but is 
 46.35  available in the second year. 
 46.36     <b>EFFECTIVE DATE:</b>  This section is effective the day 
 47.1   following final enactment. 
 47.2      Sec. 29.  Laws 1999, chapter 241, article 1, section 68, 
 47.3   subdivision 5, is amended to read: 
 47.4      Subd. 5.  [DISTRICT COOPERATION REVENUE.] For district 
 47.5   cooperation revenue aid: 
 47.6        $5,940,000 $5,881,000    .....     2000
 47.7        $  563,000 $  556,000    .....     2001
 47.8      The 2000 appropriation includes $869,000 for 1999 and 
 47.9   $5,071,000 $5,012,000 for 2000. 
 47.10     The 2001 appropriation includes $563,000 $556,000 for 2000 
 47.11  and $0 for 2001. 
 47.12     <b>EFFECTIVE DATE:</b>  This section is effective the day 
 47.13  following final enactment. 
 47.14     Sec. 30.  Laws 1999, chapter 241, article 1, section 70, is 
 47.15  amended to read: 
 47.16     Sec. 70.  [EFFECTIVE DATES.] 
 47.17     Sections 13, 14, 26, 30, 37, and 39 are effective for 
 47.18  revenue for fiscal year 2000 and later.  Section 41 is effective 
 47.19  for revenue for fiscal year 2001 and later.  Sections 46, 47, 
 47.20  and 55 to 60 are effective the day following final enactment.  
 47.21  Section 61 is effective for taxes payable in 2000 and later. 
 47.22     <b>EFFECTIVE DATE:</b>  This section is effective the day 
 47.23  following final enactment. 
 47.24     Sec. 31.  [TRANSPORTATION STUDY.] 
 47.25     The commissioner of children, families, and learning must 
 47.26  form a pupil transportation working group to analyze the effects 
 47.27  of increasing labor and fuel costs on school transportation 
 47.28  needs.  The commissioner must include recommendations for 
 47.29  adequate pupil transportation funding in the redesigned school 
 47.30  finance formulas presented to the 2001 legislature. 
 47.31     Sec. 32.  [TRAINING AND EXPERIENCE REPLACEMENT REVENUE.] 
 47.32     (a) For fiscal year 2001 only, a school district's training 
 47.33  and experience replacement revenue equals the ratio of the 
 47.34  amount of training and experience revenue the district would 
 47.35  have received for fiscal year 1999 calculated using the training 
 47.36  and experience index in Minnesota Statutes 1996, section 
 48.1   124A.04, to its resident pupil units for that year, times the 
 48.2   district's adjusted marginal cost pupil units for fiscal year 
 48.3   2001, times .25. 
 48.4      (b) This aid is paid entirely in fiscal year 2001. 
 48.5      Sec. 33.  [LEVY RECOGNITION FOR INTEGRATION LEVY 
 48.6   ADJUSTMENT.] 
 48.7      Notwithstanding Minnesota Statutes, section 123B.75, 
 48.8   subdivision 5, the full amount of integration levy for taxes 
 48.9   payable in 2001, attributable to fiscal year 2001, for school 
 48.10  districts receiving revenue under 124D.86, subdivision 3, clause 
 48.11  (4), shall be recognized in fiscal year 2001. 
 48.12     Sec. 34.  [APPROPRIATION.] 
 48.13     Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
 48.14  LEARNING.] The following sums are appropriated from the general 
 48.15  fund to the department of children, families, and learning in 
 48.16  the fiscal years indicated. 
 48.17     Subd. 2.  [GENERAL EDUCATION AID.] 
 48.18       $ 1,225,000     .....     2000 
 48.19       $81,802,000     .....     2001 
 48.20     This aid is in addition to any other aid appropriated for 
 48.21  this purpose and includes the amounts necessary for aid under 
 48.22  section 32. 
 48.23     Sec. 35.  [REPEALER.] 
 48.24     Subdivision 1.  [STATUTES.] Minnesota Statutes 1998, 
 48.25  sections 126C.30; 126C.31; 126C.32; 126C.33; 126C.34; 126C.35; 
 48.26  and 126C.36, are repealed. 
 48.27     Subd. 2.  [LAWS.] Laws 1999, chapter 241, article 1, 
 48.28  section 64, is repealed. 
 48.29     <b>EFFECTIVE DATE:</b>  This section is effective the day 
 48.30  following final enactment. 
 48.31                             ARTICLE 3 
 48.32     KINDERGARTEN THROUGH GRADE 12 EDUCATION:  SPECIAL PROGRAMS 
 48.33     Section 1.  Minnesota Statutes 1999 Supplement, section 
 48.34  124D.84, subdivision 1, is amended to read: 
 48.35     Subdivision 1.  [AWARDS.] The commissioner, with the advice 
 48.36  and counsel of the Minnesota Indian scholarship committee, may 
 49.1   award scholarships to any Minnesota resident student who is of 
 49.2   one-fourth or more Indian ancestry, who has applied for other 
 49.3   existing state and federal scholarship and grant programs, and 
 49.4   who, in the opinion of the commissioner, has the capabilities to 
 49.5   benefit from further education.  Scholarships must be 
 49.6   for advanced or specialized education accredited degree programs 
 49.7   in accredited colleges or universities or for courses in 
 49.8   accredited or approved colleges or in business, technical, or 
 49.9   vocational schools.  Scholarships shall be used to defray the 
 49.10  total cost of education including tuition, incidental fees, 
 49.11  books, supplies, transportation, other related school costs and 
 49.12  the cost of board and room and shall be paid directly to the 
 49.13  college or school concerned.  The total cost of education 
 49.14  includes all tuition and fees for each student enrolling in a 
 49.15  public institution and the portion of tuition and fees for each 
 49.16  student enrolling in a private institution that does not exceed 
 49.17  the tuition and fees at a comparable public institution.  Each 
 49.18  student shall be awarded a scholarship based on the total cost 
 49.19  of the student's education and a standardized need analysis.  
 49.20  The amount and type of each scholarship shall be determined 
 49.21  through the advice and counsel of the Minnesota Indian 
 49.22  scholarship committee.  
 49.23     When an Indian student satisfactorily completes the work 
 49.24  required by a certain college or school in a school year the 
 49.25  student is eligible for additional scholarships, if additional 
 49.26  training is necessary to reach the student's educational and 
 49.27  vocational objective.  Scholarships may not be given to any 
 49.28  Indian student for more than five years of study without special 
 49.29  approval of the Minnesota Indian scholarship committee.  
 49.30     Sec. 2.  Minnesota Statutes 1999 Supplement, section 
 49.31  125A.15, is amended to read: 
 49.32     125A.15 [PLACEMENT IN ANOTHER DISTRICT; RESPONSIBILITY.] 
 49.33     The responsibility for special instruction and services for 
 49.34  a child with a disability temporarily placed in another district 
 49.35  for care and treatment shall be determined in the following 
 49.36  manner: 
 50.1      (a) The district of residence of a child shall be the 
 50.2   district in which the child's parent resides, if living, or the 
 50.3   child's guardian, or the district designated by the commissioner 
 50.4   if neither parent nor guardian is living within the state. 
 50.5      (b) When a child is temporarily placed for care and 
 50.6   treatment in a day program located in another district and the 
 50.7   child continues to live within the district of residence during 
 50.8   the care and treatment, the district of residence is responsible 
 50.9   for providing transportation to and from the care and treatment 
 50.10  facility and an appropriate educational program for the child.  
 50.11  Transportation shall only be provided by the district during 
 50.12  regular operating hours of the district.  The district may 
 50.13  provide the educational program at a school within the district 
 50.14  of residence, at the child's residence, or in the district in 
 50.15  which the day treatment center is located by paying tuition to 
 50.16  that district. 
 50.17     (c) When a child is temporarily placed in a residential 
 50.18  program for care and treatment, the nonresident district in 
 50.19  which the child is placed is responsible for providing an 
 50.20  appropriate educational program for the child and necessary 
 50.21  transportation while the child is attending the educational 
 50.22  program; and must bill the district of the child's residence for 
 50.23  the actual cost of providing the program, as outlined in section 
 50.24  125A.11, except as provided in paragraph (d).  However, the 
 50.25  board, lodging, and treatment costs incurred in behalf of a 
 50.26  child with a disability placed outside of the school district of 
 50.27  residence by the commissioner of human services or the 
 50.28  commissioner of corrections or their agents, for reasons other 
 50.29  than providing for the child's special educational needs must 
 50.30  not become the responsibility of either the district providing 
 50.31  the instruction or the district of the child's residence.  For 
 50.32  the purposes of this section, the state correctional facilities 
 50.33  operated on a fee-for-service basis are considered to be 
 50.34  residential programs for care and treatment. 
 50.35     (d) A privately owned and operated residential facility may 
 50.36  enter into a contract to obtain appropriate educational programs 
 51.1   for special education children and services with a joint powers 
 51.2   entity.  The entity with which the private facility contracts 
 51.3   for special education services shall be the district responsible 
 51.4   for providing students placed in that facility an appropriate 
 51.5   educational program in place of the district in which the 
 51.6   facility is located.  If a privately owned and operated 
 51.7   residential facility does not enter into a contract under this 
 51.8   paragraph, then paragraph (c) applies. 
 51.9      (e) The district of residence shall pay tuition and other 
 51.10  program costs, not including transportation costs, to the 
 51.11  district providing the instruction and services.  The district 
 51.12  of residence may claim general education aid for the child as 
 51.13  provided by law.  Transportation costs must be paid by the 
 51.14  district responsible for providing the transportation and the 
 51.15  state must pay transportation aid to that district. 
 51.16     Sec. 3.  Minnesota Statutes 1999 Supplement, section 
 51.17  125A.76, subdivision 2, is amended to read: 
 51.18     Subd. 2.  [SPECIAL EDUCATION BASE REVENUE.] (a) The special 
 51.19  education base revenue equals the sum of the following amounts 
 51.20  computed using base year data: 
 51.21     (1) 68 percent of the salary of each essential person 
 51.22  employed in the district's program for children with a 
 51.23  disability during the fiscal year, not including the share of 
 51.24  salaries for personnel providing health-related services counted 
 51.25  in clause (8), whether the person is employed by one or more 
 51.26  districts or a Minnesota correctional facility operating on a 
 51.27  fee-for-service basis; 
 51.28     (2) for the Minnesota state academy for the deaf or the 
 51.29  Minnesota state academy for the blind, 68 percent of the salary 
 51.30  of each instructional aide assigned to a child attending the 
 51.31  academy, if that aide is required by the child's individual 
 51.32  education plan; 
 51.33     (3) for special instruction and services provided to any 
 51.34  pupil by contracting with public, private, or voluntary agencies 
 51.35  other than school districts, in place of special instruction and 
 51.36  services provided by the district, 52 percent of the difference 
 52.1   between the amount of the contract and the basic revenue of the 
 52.2   district for that pupil for the fraction of the school day the 
 52.3   pupil receives services under the contract; 
 52.4      (4) for special instruction and services provided to any 
 52.5   pupil by contracting for services with public, private, or 
 52.6   voluntary agencies other than school districts, that are 
 52.7   supplementary to a full educational program provided by the 
 52.8   school district, 52 percent of the amount of the contract for 
 52.9   that pupil; 
 52.10     (5) for supplies and equipment purchased or rented for use 
 52.11  in the instruction of children with a disability, not including 
 52.12  the portion of the expenses for supplies and equipment used to 
 52.13  provide health-related services counted in clause (8), an amount 
 52.14  equal to 47 percent of the sum actually expended by the 
 52.15  district, or a Minnesota correctional facility operating on a 
 52.16  fee-for-service basis, but not to exceed an average of $47 in 
 52.17  any one school year for each child with a disability receiving 
 52.18  instruction; 
 52.19     (6) for fiscal years 1997 and later, special education base 
 52.20  revenue shall include amounts under clauses (1) to (5) for 
 52.21  special education summer programs provided during the base year 
 52.22  for that fiscal year; and 
 52.23     (7) for fiscal years 1999 and later, the cost of providing 
 52.24  transportation services for children with disabilities under 
 52.25  section 123B.92, subdivision 1, paragraph (b), clause (4); and 
 52.26     (8) for fiscal years 2001 and later, the cost of salaries, 
 52.27  supplies and equipment, and other related costs actually 
 52.28  expended by the district for the nonfederal share of medical 
 52.29  assistance services according to section 256B.0625, subdivision 
 52.30  26. 
 52.31     The department shall establish procedures through the 
 52.32  uniform financial accounting and reporting system to identify 
 52.33  and track all revenues generated from third-party billings as 
 52.34  special education revenue at the school district level; include 
 52.35  revenue generated from third-party billings as special education 
 52.36  revenue in the annual cross-subsidy report; and exclude 
 53.1   third-party revenue from calculation of excess cost aid to the 
 53.2   districts. 
 53.3      (b) If requested by a school district operating a special 
 53.4   education program during the base year for less than the full 
 53.5   fiscal year, or a school district in which is located a 
 53.6   Minnesota correctional facility operating on a fee-for-service 
 53.7   basis for less than the full fiscal year, the commissioner may 
 53.8   adjust the base revenue to reflect the expenditures that would 
 53.9   have occurred during the base year had the program been operated 
 53.10  for the full fiscal year. 
 53.11     (c) Notwithstanding paragraphs (a) and (b), the portion of 
 53.12  a school district's base revenue attributable to a Minnesota 
 53.13  correctional facility operating on a fee-for-service basis 
 53.14  during the facility's first year of operating on a 
 53.15  fee-for-service basis shall be computed using current year data. 
 53.16     Sec. 4.  Laws 1999, chapter 241, article 2, section 60, 
 53.17  subdivision 7, is amended to read: 
 53.18     Subd. 7.  [TRIBAL CONTRACT SCHOOLS.] For tribal contract 
 53.19  school aid according to Minnesota Statutes, section 124D.83: 
 53.20       $2,706,000 $1,671,000  .....     2000
 53.21       $2,790,000 $1,882,000  .....     2001
 53.22     The 2000 appropriation includes $283,000 for 1999 and 
 53.23  $2,423,000 $1,388,000 for 2000. 
 53.24     The 2001 appropriation includes $269,000 $154,000 for 2000 
 53.25  and $2,521,000 $1,728,000 for 2001. 
 53.26     Sec. 5.  Laws 1999, chapter 241, article 2, section 60, 
 53.27  subdivision 9, is amended to read: 
 53.28     Subd. 9.  [MAGNET SCHOOL GRANTS.] For magnet school and 
 53.29  program grants under Laws 1994, chapter 647, article 8, section 
 53.30  38: 
 53.31       $1,750,000     .....     2000 
 53.32       $1,750,000     .....     2001 
 53.33     These amounts may be used for magnet school programs 
 53.34  according to Minnesota Statutes, section 124D.88.  The budget 
 53.35  base for this program for fiscal year 2003 and each year 
 53.36  thereafter is $1,050,000. 
 54.1      Sec. 6.  Laws 1999, chapter 241, article 2, section 60, 
 54.2   subdivision 12, is amended to read: 
 54.3      Subd. 12.  [AID FOR CHILDREN WITH A DISABILITY.] For aid 
 54.4   according to Minnesota Statutes, section 125A.75, subdivision 3, 
 54.5   for children with a disability placed in residential facilities 
 54.6   within the district boundaries for whom no district of residence 
 54.7   can be determined: 
 54.8        $  443,000 $  433,000  .....     2000 
 54.9        $1,064,000 $4,263,000  .....     2001 
 54.10     If the appropriation for either year is insufficient, the 
 54.11  appropriation for the other year is available.  Any balance in 
 54.12  the first year does not cancel but is available in the second 
 54.13  year. 
 54.14     Sec. 7.  Laws 1999, chapter 241, article 2, section 60, 
 54.15  subdivision 13, is amended to read: 
 54.16     Subd. 13.  [TRAVEL FOR HOME-BASED SERVICES.] For aid for 
 54.17  teacher travel for home-based services according to Minnesota 
 54.18  Statutes, section 125A.75, subdivision 1: 
 54.19       $133,000 $125,000    .....     2000 
 54.20       $139,000 $130,000    .....     2001 
 54.21     The 2000 appropriation includes $11,000 for 1999 and 
 54.22  $122,000 $114,000 for 2000.  
 54.23     The 2001 appropriation includes $13,000 for 2000 and 
 54.24  $126,000 $117,000 for 2001.  
 54.25     Sec. 8.  Laws 1999, chapter 241, article 2, section 60, 
 54.26  subdivision 14, is amended to read: 
 54.27     Subd. 14.  [SPECIAL EDUCATION EXCESS COST AID.] For excess 
 54.28  cost aid: 
 54.29       $60,498,000 $66,032,000   .....     2000 
 54.30       $79,405,000 $89,269,000   .....     2001 
 54.31     The 2000 appropriation includes $4,693,000 for 1999 and 
 54.32  $55,805,000 $61,339,000 for 2000.  
 54.33     The 2001 appropriation includes $6,200,000 $6,815,000 for 
 54.34  2000 and $73,205,000 $82,454,000 for 2001. 
 54.35     Sec. 9.  Laws 1999, chapter 241, article 2, section 60, 
 54.36  subdivision 17, is amended to read: 
 55.1      Subd. 17.  [INTEGRATION AID.] For integration aid: 
 55.2        $37,182,000 $37,610,000  .....     2000 
 55.3        $43,787,000 $55,828,000  .....     2001 
 55.4      The 2000 appropriation includes $2,902,000 for 1999 and 
 55.5   $34,280,000 $34,708,000 for 2000. 
 55.6      The 2001 appropriation includes $3,809,000 $3,856,000 for 
 55.7   2000 and $39,978,000 $51,972,000 for 2001.  
 55.8      Sec. 10.  Laws 1999, chapter 241, article 2, section 60, 
 55.9   subdivision 19, is amended to read: 
 55.10     Subd. 19.  [INTERDISTRICT DESEGREGATION OR INTEGRATION 
 55.11  TRANSPORTATION AID.] (a) For interdistrict desegregation or 
 55.12  integration transportation aid under Minnesota Statutes, section 
 55.13  124D.87: 
 55.14       $970,000       .....     2000
 55.15       $970,000       .....     2001
 55.16     Any balance in the first year does not cancel but is 
 55.17  available in the second year.  
 55.18     (b) The budget base for this program for fiscal year 2002 
 55.19  is $500,000.  This amount may be spent for interdistrict 
 55.20  desegregation or integration transportation aid.  For fiscal 
 55.21  year 2003 and later, the budget base for this program is the 
 55.22  forecasted cost of fully reimbursing districts according to 
 55.23  Minnesota Statutes, section 124D.87.  
 55.24     Sec. 11.  [EFFECT.] 
 55.25     If the department of children, families, and learning; the 
 55.26  state attorney general; or the federal government determines 
 55.27  that Minnesota Statutes, section 125A.15, paragraph (d), 
 55.28  violates state or federal special education law, then Minnesota 
 55.29  Statutes, section 125A.15, paragraph (d), is not effective. 
 55.30     Sec. 12.  [REPEALER.] 
 55.31     (a) Laws 1999, chapter 216, article 4, section 12, is 
 55.32  repealed. 
 55.33     (b) Minnesota Rules, part 3535.9920, is repealed. 
 55.34     <b>EFFECTIVE DATE:</b>  This section is effective the day 
 55.35  following final enactment. 
 55.36                             ARTICLE 4 
 56.1               KINDERGARTEN THROUGH GRADE 12 EDUCATION:
 56.2                      EMPLOYMENT AND TRANSITIONS 
 56.3      Section 1.  Minnesota Statutes 1998, section 124D.44, is 
 56.4   amended to read: 
 56.5      124D.44 [MATCH REQUIREMENTS.] 
 56.6      Youth works grant funds must be used for the living 
 56.7   allowance, cost of employer taxes under sections 3111 and 3301 
 56.8   of the Internal Revenue Code of 1986, workers' compensation 
 56.9   coverage, and health benefits for each program participant, and 
 56.10  administrative expenses, which must not exceed five percent of 
 56.11  total program costs.  Youthworks grant funds may also be used to 
 56.12  supplement applicant resources to fund postservice benefits for 
 56.13  program participants.  Applicant resources, from sources and in 
 56.14  a form determined by the commission and, beginning January 1, 
 56.15  1997, the council, must be used to provide for all other program 
 56.16  costs, including the portion of the applicant's obligation for 
 56.17  postservice benefits that is not covered by state or federal 
 56.18  grant funds and such costs as supplies, materials, 
 56.19  transportation, and salaries and benefits of those staff 
 56.20  directly involved in the operation, internal monitoring, and 
 56.21  evaluation of the program.  Administrative expenses must not 
 56.22  exceed five percent of total program costs.  
 56.23     <b>EFFECTIVE DATE:</b>  This section is effective the day 
 56.24  following final enactment. 
 56.25     Sec. 2.  Minnesota Statutes 1999 Supplement, section 
 56.26  124D.453, subdivision 3, is amended to read: 
 56.27     Subd. 3.  [CAREER AND TECHNICAL AID.] A district's career 
 56.28  and technical education aid for fiscal year years 2000 and 2001 
 56.29  equals the lesser of: 
 56.30     (a) $73 times the district's average daily membership in 
 56.31  grades 10 to 12; or 
 56.32     (b) 25 percent of approved expenditures for the following: 
 56.33     (1) salaries paid to essential, licensed personnel 
 56.34  providing direct instructional services to students in that 
 56.35  fiscal year for services rendered in the district's approved 
 56.36  career and technical education programs; 
 57.1      (2) contracted services provided by a public or private 
 57.2   agency other than a Minnesota school district or cooperative 
 57.3   center under subdivision 7; 
 57.4      (3) necessary travel between instructional sites by 
 57.5   licensed career and technical education personnel; 
 57.6      (4) necessary travel by licensed career and technical 
 57.7   education personnel for vocational student organization 
 57.8   activities held within the state for instructional purposes; 
 57.9      (5) curriculum development activities that are part of a 
 57.10  five-year plan for improvement based on program assessment; 
 57.11     (6) necessary travel by licensed career and technical 
 57.12  education personnel for noncollegiate credit bearing 
 57.13  professional development; and 
 57.14     (7) specialized vocational instructional supplies. 
 57.15     (c) Up to ten percent of a district's career and technical 
 57.16  aid may be spent on equipment purchases.  Districts using career 
 57.17  and technical aid for equipment purchases must report to the 
 57.18  department on the improved learning opportunities for students 
 57.19  that result from the investment in equipment.  
 57.20     Sec. 3.  Laws 1999, chapter 241, article 3, section 3, 
 57.21  subdivision 2, is amended to read: 
 57.22     Subd. 2.  [SECONDARY VOCATIONAL EDUCATION AID.] For 
 57.23  secondary vocational education aid according to Minnesota 
 57.24  Statutes, section 124D.453: 
 57.25       $11,335,000 $12,413,000    .....     2000 
 57.26       $1,130,000  $12,417,000    .....     2001 
 57.27     The 2000 appropriation includes $1,159,000 for 1999 and 
 57.28  $10,176,000 $11,254,000 for 2000.  The 2001 appropriation 
 57.29  includes $1,130,000 $1,250,000 for 2000 and $11,167,000 for 2001.
 57.30     Any balance in the first year does not cancel but is 
 57.31  available in the second year. 
 57.32     Sec. 4.  Laws 1999, chapter 241, article 3, section 3, 
 57.33  subdivision 4, is amended to read: 
 57.34     Subd. 4.  [EDUCATION AND EMPLOYMENT TRANSITIONS PROGRAM 
 57.35  GRANTS.] For education and employment transitions programming 
 57.36  under Minnesota Statutes, section 124D.46: 
 58.1        $3,225,000     .....     2000 
 58.2        $3,225,000 $1,425,000     .....     2001
 58.3      $200,000 each year is for the development and 
 58.4   implementation of the ISEEK Internet-based education and 
 58.5   employment information system. 
 58.6      $1,000,000 each in fiscal year 2000 is for an employer 
 58.7   rebate program for qualifying employers who offer youth 
 58.8   internships to educators. 
 58.9      $500,000 each in fiscal year 2000 is for youth 
 58.10  entrepreneurship grants.  
 58.11     $750,000 each year is for youth apprenticeship grants. 
 58.12     $300,000 each in fiscal year 2000 is for grants to programs 
 58.13  in cities of the first class to expand the number of at-risk 
 58.14  students participating in school-to-work projects. 
 58.15     $350,000 each year is for agricultural school-to-work 
 58.16  grants. 
 58.17     $125,000 each year is to conduct a high school follow-up 
 58.18  survey to include first, third, and sixth year graduates of 
 58.19  Minnesota schools. 
 58.20     Any balance in the first year does not cancel but is 
 58.21  available in the second year. 
 58.22     The budget base for this program for fiscal year 2002 and 
 58.23  later is $1,075,000. 
 58.24     Sec. 5.  Laws 1999, chapter 241, article 3, section 5, is 
 58.25  amended to read: 
 58.26     Sec. 5.  [REPEALER.] 
 58.27     Minnesota Statutes 1998, section 124D.453, is repealed 
 58.28  effective for revenue for fiscal year 2001 2002. 
 58.29     <b>EFFECTIVE DATE:</b>  This section is effective the day 
 58.30  following final enactment. 
 58.31                             ARTICLE 5 
 58.32              KINDERGARTEN THROUGH GRADE 12 EDUCATION:
 58.33                     FACILITIES AND TECHNOLOGY 
 58.34     Section 1.  Minnesota Statutes 1998, section 123A.485, 
 58.35  subdivision 4, is amended to read: 
 58.36     Subd. 4.  [NEW DISTRICTS.] If a district consolidates with 
 59.1   another district that has received aid under section 123A.39, 
 59.2   subdivision 3, or 123A.485 for a combination or consolidation 
 59.3   taking effect within six years of the effective date of the new 
 59.4   consolidation, only the pupil units in the district or districts 
 59.5   not previously reorganized must be counted for aid purposes 
 59.6   under subdivision 2.  If two or more districts consolidate and 
 59.7   all districts received aid under subdivision 2 for a 
 59.8   consolidation taking effect within six years of the effective 
 59.9   date of the new consolidation, only one quarter of the pupil 
 59.10  units in the newly created district must be used to determine 
 59.11  aid under subdivision 2. 
 59.12     Sec. 2.  Minnesota Statutes 1998, section 123B.51, 
 59.13  subdivision 6, is amended to read: 
 59.14     Subd. 6.  [PROCEEDS OF SALE OR EXCHANGE.] (a) Proceeds of 
 59.15  the sale or exchange of school buildings or real property of the 
 59.16  district must be used as provided in this subdivision. 
 59.17     (b) In districts with outstanding bonds, the proceeds of 
 59.18  the sale or exchange shall first be deposited in the debt 
 59.19  retirement fund of the district in an amount sufficient to meet 
 59.20  when due that percentage of the principal and interest payments 
 59.21  for outstanding bonds which is ascribable to the payment of 
 59.22  expenses necessary and incidental to the construction or 
 59.23  purchase of the particular building or property which is sold.  
 59.24     (c) After satisfying the requirements of paragraph (b), a 
 59.25  district with outstanding bonds may deposit proceeds of the sale 
 59.26  or exchange in its capital expenditure fund general fund 
 59.27  reserved for operating capital account if the amount deposited 
 59.28  is used for the following:  
 59.29     (1) for expenditures for the cleanup of polychlorinated 
 59.30  biphenyls, if the method for cleanup is approved by the 
 59.31  department; 
 59.32     (2) for capital expenditures for the betterment, as defined 
 59.33  in section 475.51, subdivision 8, of district-owned school 
 59.34  buildings; or 
 59.35     (3) to replace the building or property sold.  
 59.36     (d) In a district with outstanding bonds, the amount of the 
 60.1   proceeds of the sale or exchange remaining after the application 
 60.2   of paragraphs (b) and (c), which is sufficient to meet when due 
 60.3   that percentage of the principal and interest payments for the 
 60.4   district's outstanding bonds which is not governed by paragraph 
 60.5   (b), shall be deposited in the debt retirement fund.  
 60.6      (e) Any proceeds of the sale or exchange remaining in 
 60.7   districts with outstanding bonds after the application of 
 60.8   paragraphs (b), (c), and (d), and all proceeds of the sale or 
 60.9   exchange in districts without outstanding bonds shall be 
 60.10  deposited in the capital expenditure general fund reserved for 
 60.11  operating capital account of the district. 
 60.12     (f) Notwithstanding paragraphs (c) and (d), a district with 
 60.13  outstanding bonds may deposit in its capital expenditure general 
 60.14  fund reserved for operating capital account and use for any 
 60.15  lawful operating capital expenditure without the reduction of 
 60.16  any levy limitation the same percentage of the proceeds of the 
 60.17  sale or exchange of a building or property as the percentage of 
 60.18  the initial cost of purchasing or constructing the building or 
 60.19  property which was paid using revenue from the capital 
 60.20  expenditure general fund reserved for operating capital account. 
 60.21     Sec. 3.  Minnesota Statutes 1998, section 123B.52, is 
 60.22  amended by adding a subdivision to read: 
 60.23     Subd. 6.  [DISPOSING OF SURPLUS SCHOOL COMPUTERS.] 
 60.24  Notwithstanding section 471.345, governing school district 
 60.25  contracts made upon sealed bid or otherwise complying with the 
 60.26  requirements for competitive bidding, other provisions of this 
 60.27  section governing school district contracts, or other law to the 
 60.28  contrary, a school district under this subdivision may dispose 
 60.29  of a surplus school computer and related equipment if the 
 60.30  district disposes of the surplus property by conveying the 
 60.31  property and title to: 
 60.32     (1) another school district; 
 60.33     (2) the state department of corrections; 
 60.34     (3) the board of trustees of the Minnesota state colleges 
 60.35  and universities; or 
 60.36     (4) the family of a student residing in the district whose 
 61.1   total family income meets the federal definition of poverty. 
 61.2      <b>EFFECTIVE DATE:</b>  This section is effective the day 
 61.3   following final enactment. 
 61.4      Sec. 4.  Minnesota Statutes 1999 Supplement, section 
 61.5   123B.53, subdivision 4, is amended to read: 
 61.6      Subd. 4.  [DEBT SERVICE EQUALIZATION REVENUE.] The debt 
 61.7   service equalization revenue of a district equals the eligible 
 61.8   debt service revenue minus the amount raised by a levy of 12 
 61.9   percent times the adjusted net tax capacity of the 
 61.10  district minus the district's enhanced debt service equalization 
 61.11  revenue according to subdivision 8. 
 61.12     <b>EFFECTIVE DATE:</b>  This section is effective for revenue for 
 61.13  fiscal year 2002 and later. 
 61.14     Sec. 5.  Minnesota Statutes 1999 Supplement, section 
 61.15  123B.53, subdivision 6, is amended to read: 
 61.16     Subd. 6.  [DEBT SERVICE EQUALIZATION AID.] A district's 
 61.17  debt service equalization aid is the sum of (1) the difference 
 61.18  between the debt service equalization revenue and the equalized 
 61.19  debt service levy, and (2) the enhanced debt service 
 61.20  equalization aid according to subdivision 10. 
 61.21     <b>EFFECTIVE DATE:</b>  This section is effective for revenue for 
 61.22  fiscal year 2002 and later. 
 61.23     Sec. 6.  Minnesota Statutes 1998, section 123B.53, is 
 61.24  amended by adding a subdivision to read: 
 61.25     Subd. 8.  [ENHANCED DEBT SERVICE EQUALIZATION REVENUE.] The 
 61.26  enhanced debt service equalization revenue of a district equals 
 61.27  the eligible debt service revenue minus the amount raised by a 
 61.28  levy of 20 percent times the adjusted net tax capacity of the 
 61.29  district. 
 61.30     <b>EFFECTIVE DATE:</b>  This section is effective for revenue for 
 61.31  fiscal year 2002 and later. 
 61.32     Sec. 7.  Minnesota Statutes 1998, section 123B.53, is 
 61.33  amended by adding a subdivision to read: 
 61.34     Subd. 9.  [ENHANCED EQUALIZED DEBT SERVICE LEVY.] To obtain 
 61.35  enhanced debt service equalization revenue, a district must levy 
 61.36  an amount not to exceed the district's enhanced debt service 
 62.1   equalization revenue times the lesser of one or the ratio of: 
 62.2      (1) the quotient derived by dividing the adjusted net tax 
 62.3   capacity of the district for the year before the year the levy 
 62.4   is certified by the adjusted pupil units in the district for the 
 62.5   school year ending in the year prior to the year the levy is 
 62.6   certified; to 
 62.7      (2) $8,000. 
 62.8      <b>EFFECTIVE DATE:</b>  This section is effective for revenue for 
 62.9   fiscal year 2002 and later. 
 62.10     Sec. 8.  Minnesota Statutes 1998, section 123B.53, is 
 62.11  amended by adding a subdivision to read: 
 62.12     Subd. 10.  [ENHANCED DEBT SERVICE EQUALIZATION AID.] A 
 62.13  district's enhanced debt service equalization aid is the 
 62.14  difference between the enhanced debt service equalization 
 62.15  revenue and the enhanced equalized debt service levy. 
 62.16     <b>EFFECTIVE DATE:</b>  This section is effective for revenue for 
 62.17  fiscal year 2002 and later. 
 62.18     Sec. 9.  Minnesota Statutes 1999 Supplement, section 
 62.19  123B.54, is amended to read: 
 62.20     123B.54 [DEBT SERVICE APPROPRIATION.] 
 62.21     (a) $33,165,000 $33,141,000 in fiscal year 2000, 
 62.22  $32,057,000 $29,400,000 in fiscal year 2001, and 
 62.23  $31,280,000 $37,134,000 in fiscal year 2002, and $38,940,000 in 
 62.24  fiscal year 2003 and each year thereafter is appropriated from 
 62.25  the general fund to the commissioner of children, families, and 
 62.26  learning for payment of debt service equalization aid under 
 62.27  section 123B.53.  The 2002 appropriation 
 62.28  includes $3,201,000 $2,904,000 for 2001 and 
 62.29  $29,079,000 $34,230,000 for 2002. 
 62.30     (b) The appropriations in paragraph (a) must be reduced by 
 62.31  the amount of any money specifically appropriated for the same 
 62.32  purpose in any year from any state fund. 
 62.33     Sec. 10.  Minnesota Statutes 1998, section 123B.59, is 
 62.34  amended by adding a subdivision to read: 
 62.35     Subd. 5a.  [ALTERNATIVE FACILITIES REVENUE.] A school 
 62.36  district's alternative facilities revenue equals the amount 
 63.1   approved under this section. 
 63.2      <b>EFFECTIVE DATE:</b>  This section is effective for revenue for 
 63.3   fiscal year 2002 and later.  
 63.4      Sec. 11.  Minnesota Statutes 1998, section 123B.59, 
 63.5   subdivision 6, is amended to read: 
 63.6      Subd. 6.  [ALTERNATIVE FACILITIES AID.] For fiscal year 
 63.7   2002, a district's alternative facilities aid is the amount 
 63.8   equal to the district's annual debt service costs, provided that 
 63.9   the amount does not exceed the amount certified to be levied for 
 63.10  those purposes for taxes payable in 1997, or for a district that 
 63.11  made a levy under subdivision 5, paragraph (b), the lesser of 
 63.12  the district's annual levy amount, or one-sixth of the amount of 
 63.13  levy that it certified for that purpose for taxes payable in 
 63.14  1998 equals the lesser of the district's annual alternative 
 63.15  facilities revenue for that year or 45 percent of the amount of 
 63.16  aid the district received in fiscal year 2001.  For fiscal year 
 63.17  2003 and later, a district's alternative facilities aid equals 
 63.18  the lesser of the district's annual alternative facilities 
 63.19  revenue for that year or 25 percent of the amount of aid the 
 63.20  district received in fiscal year 2001. 
 63.21     <b>EFFECTIVE DATE:</b>  This section is effective for revenue for 
 63.22  fiscal year 2002 and later.  
 63.23     Sec. 12.  Minnesota Statutes 1998, section 123B.59, is 
 63.24  amended by adding a subdivision to read: 
 63.25     Subd. 7a.  [ALTERNATIVE FACILITIES APPROPRIATION.] (a) An 
 63.26  amount not to exceed $9,000,000 in fiscal year 2002, and 
 63.27  $5,000,000 in fiscal year 2003 and each year thereafter is 
 63.28  appropriated from the general fund to the commissioner of 
 63.29  children, families, and learning for payment of alternative 
 63.30  facilities aid under this section. 
 63.31     <b>EFFECTIVE DATE:</b>  This section is effective for revenue for 
 63.32  fiscal year 2002 and later.  
 63.33     Sec. 13.  Minnesota Statutes 1998, section 123B.71, 
 63.34  subdivision 3, is amended to read: 
 63.35     Subd. 3.  [INDOOR AIR QUALITY RESOURCES; COMMISSIONER'S 
 63.36  ROLE.] As part of the consultation under subdivision 1, the 
 64.1   commissioner shall provide each school district with: 
 64.2      (1) information concerning indoor air quality; and 
 64.3      (2) procedures for monitoring of outdoor airflow and total 
 64.4   airflow of ventilation systems in new school facilities. 
 64.5      <b>EFFECTIVE DATE:</b>  This section is effective July 1, 2002. 
 64.6      Sec. 14.  Minnesota Statutes 1998, section 123B.71, 
 64.7   subdivision 10, is amended to read: 
 64.8      Subd. 10.  [INDOOR AIR QUALITY.] A school board seeking a 
 64.9   review and comment under this section must submit information 
 64.10  demonstrating to the commissioner's satisfaction that: 
 64.11     (1) indoor air quality issues have been considered; and 
 64.12     (2) the architects and engineers designing the facility 
 64.13  will have professional liability insurance; 
 64.14     (3) the facility's heating, ventilation, and air 
 64.15  conditioning systems meet or exceed the standards established by 
 64.16  code; and 
 64.17     (4) the facility's design will provide the ability for 
 64.18  monitoring of outdoor airflow and total airflow of ventilation 
 64.19  systems in new school facilities. 
 64.20     <b>EFFECTIVE DATE:</b>  This section is effective July 1, 2002. 
 64.21     Sec. 15.  [123B.715] [NEW SCHOOL BUILDING CONSTRUCTION 
 64.22  STANDARDS.] 
 64.23     Subdivision 1.  [APPLICABLE BUILDING PROJECTS.] This 
 64.24  section applies to school building projects for which a review 
 64.25  and comment under section 123B.71 is requested on or after July 
 64.26  1, 2002. 
 64.27     Subd. 2.  [DEFINITIONS.] "ASHRAE" means the American 
 64.28  Society of Heating, Refrigerating, and Air Conditioning 
 64.29  Engineers.  "MERV" means minimum efficiency reporting value.  
 64.30     Subd. 3.  [AIR HANDLING SYSTEMS.] Any heating, ventilation, 
 64.31  or air conditioning system that is installed subject to this 
 64.32  section must provide a filtration system with a MERV rating of 
 64.33  MERV 11 as defined in ASHRAE standard 52.2. 
 64.34     <b>EFFECTIVE DATE:</b>  This section is effective July 1, 2002. 
 64.35     Sec. 16.  Minnesota Statutes 1998, section 126C.40, 
 64.36  subdivision 1, is amended to read: 
 65.1      Subdivision 1.  [TO LEASE BUILDING OR LAND.] (a) When a 
 65.2   district finds it economically advantageous to rent or lease a 
 65.3   building or land for any instructional purposes or for school 
 65.4   storage or furniture repair, and it determines that the 
 65.5   operating capital revenue authorized under section 126C.10, 
 65.6   subdivision 13, is insufficient for this purpose, it may apply 
 65.7   to the commissioner for permission to make an additional capital 
 65.8   expenditure levy for this purpose.  An application for 
 65.9   permission to levy under this subdivision must contain financial 
 65.10  justification for the proposed levy, the terms and conditions of 
 65.11  the proposed lease, and a description of the space to be leased 
 65.12  and its proposed use.  
 65.13     (b) The criteria for approval of applications to levy under 
 65.14  this subdivision must include:  the reasonableness of the price, 
 65.15  the appropriateness of the space to the proposed activity, the 
 65.16  feasibility of transporting pupils to the leased building or 
 65.17  land, conformity of the lease to the laws and rules of the state 
 65.18  of Minnesota, and the appropriateness of the proposed lease to 
 65.19  the space needs and the financial condition of the district.  
 65.20  The commissioner must not authorize a levy under this 
 65.21  subdivision in an amount greater than the cost to the district 
 65.22  of renting or leasing a building or land for approved purposes.  
 65.23  The proceeds of this levy must not be used for custodial or 
 65.24  other maintenance services.  A district may not levy under this 
 65.25  subdivision for the purpose of leasing or renting a 
 65.26  district-owned building or site to itself. 
 65.27     (c) For agreements finalized after July 1, 1997, a district 
 65.28  may not levy under this subdivision for the purpose of leasing:  
 65.29  (1) a newly constructed building used primarily for regular 
 65.30  kindergarten, elementary, or secondary instruction; or (2) a 
 65.31  newly constructed building addition or additions used primarily 
 65.32  for regular kindergarten, elementary, or secondary instruction 
 65.33  that contains more than 20 percent of the square footage of the 
 65.34  previously existing building. 
 65.35     (d) Notwithstanding paragraph (b), a district may levy 
 65.36  under this subdivision for the purpose of leasing or renting a 
 66.1   district-owned building or site to itself only if the amount is 
 66.2   needed by the district to make payments required by a lease 
 66.3   purchase agreement, installment purchase agreement, or other 
 66.4   deferred payments agreement authorized by law, and the levy 
 66.5   meets the requirements of paragraph (c).  A levy authorized for 
 66.6   a district by the commissioner under this paragraph may be in 
 66.7   the amount needed by the district to make payments required by a 
 66.8   lease purchase agreement, installment purchase agreement, or 
 66.9   other deferred payments agreement authorized by law, provided 
 66.10  that any agreement include a provision giving the school 
 66.11  districts the right to terminate the agreement annually without 
 66.12  penalty. 
 66.13     (e) The total levy under this subdivision for a district 
 66.14  for any year must not exceed $100 times the resident pupil units 
 66.15  for the fiscal year to which the levy is attributable. 
 66.16     (e) (f) For agreements for which a review and comment have 
 66.17  been submitted to the department of children, families, and 
 66.18  learning after April 1, 1998, the term "instructional purpose" 
 66.19  as used in this subdivision excludes expenditures on stadiums. 
 66.20     <b>EFFECTIVE DATE:</b>  This section is effective for taxes 
 66.21  payable in 2001 and later.  
 66.22     Sec. 17.  Minnesota Statutes 1999 Supplement, section 
 66.23  126C.40, subdivision 6, is amended to read: 
 66.24     Subd. 6.  [LEASE PURCHASE; INSTALLMENT BUYS.] (a) Upon 
 66.25  application to, and approval by, the commissioner in accordance 
 66.26  with the procedures and limits in subdivision 1, paragraphs (a) 
 66.27  and (b), a district, as defined in this subdivision, may: 
 66.28     (1) purchase real or personal property under an installment 
 66.29  contract or may lease real or personal property with an option 
 66.30  to purchase under a lease purchase agreement, by which 
 66.31  installment contract or lease purchase agreement title is kept 
 66.32  by the seller or vendor or assigned to a third party as security 
 66.33  for the purchase price, including interest, if any; and 
 66.34     (2) annually levy the amounts necessary to pay the 
 66.35  district's obligations under the installment contract or lease 
 66.36  purchase agreement. 
 67.1      (b) The obligation created by the installment contract or 
 67.2   the lease purchase agreement must not be included in the 
 67.3   calculation of net debt for purposes of section 475.53, and does 
 67.4   not constitute debt under other law.  An election is not 
 67.5   required in connection with the execution of the installment 
 67.6   contract or the lease purchase agreement. 
 67.7      (c) The proceeds of the levy authorized by this subdivision 
 67.8   must not be used to acquire a facility to be primarily used for 
 67.9   athletic or school administration purposes. 
 67.10     (d) For the purposes of this subdivision, "district" means: 
 67.11     (1) a school district required to have a comprehensive plan 
 67.12  for the elimination of segregation whose plan has been 
 67.13  determined by the commissioner to be in compliance with 
 67.14  department of children, families, and learning rules relating to 
 67.15  equality of educational opportunity and school 
 67.16  desegregation and, for a district eligible for revenue under 
 67.17  section 124D.86, subdivision 3, clause (4), where the 
 67.18  acquisition of property under this subdivision is determined by 
 67.19  the commissioner to contribute to the implementation of the 
 67.20  desegregation plan; or 
 67.21     (2) a school district that participates in a joint program 
 67.22  for interdistrict desegregation with a district defined in 
 67.23  clause (1) if the facility acquired under this subdivision is to 
 67.24  be primarily used for the joint program and the commissioner 
 67.25  determines that the joint programs are being undertaken to 
 67.26  implement the districts' desegregation plan. 
 67.27     (e) Notwithstanding subdivision 1, the prohibition against 
 67.28  a levy by a district to lease or rent a district-owned building 
 67.29  to itself does not apply to levies otherwise authorized by this 
 67.30  subdivision. 
 67.31     (f) For the purposes of this subdivision, any references in 
 67.32  subdivision 1 to building or land shall include personal 
 67.33  property. 
 67.34     <b>EFFECTIVE DATE:</b>  This section is effective for taxes 
 67.35  payable in 2001 and later.  
 67.36     Sec. 18.  Minnesota Statutes 1998, section 126C.40, is 
 68.1   amended by adding a subdivision to read: 
 68.2      Subd. 7.  [UNEQUALIZED CAPITAL LEVIES.] A school district's 
 68.3   unequalized capital levy equals the sum of its: 
 68.4      (1) disabled access levy under section 123B.58; 
 68.5      (2) technology and building construction down payment levy 
 68.6   under section 123B.63; 
 68.7      (3) building lease levies under subdivision 1; 
 68.8      (4) cooperating district capital levy under subdivision 3; 
 68.9   and 
 68.10     (5) energy conservation levy under subdivision 4. 
 68.11     <b>EFFECTIVE DATE:</b>  This section is effective for taxes 
 68.12  payable in 2001 and later.  
 68.13     Sec. 19.  Minnesota Statutes 1999 Supplement, section 
 68.14  126C.63, subdivision 8, is amended to read: 
 68.15     Subd. 8.  [MAXIMUM EFFORT DEBT SERVICE LEVY.] "Maximum 
 68.16  effort debt service levy" means the lesser of: 
 68.17     (1) a levy in whichever of the following amounts is 
 68.18  applicable: 
 68.19     (a) in any district granted a debt service loan for a debt 
 68.20  service levy payable in 2001 and thereafter, or a capital loan 
 68.21  granted after June 30, 2000, a levy in a total dollar amount 
 68.22  computed at a rate of 30 percent of adjusted net tax capacity 
 68.23  for taxes payable in 2001 and thereafter; 
 68.24     (b) in any district receiving a debt service loan for a 
 68.25  debt service levy payable in 1991 and thereafter, or granted a 
 68.26  capital loan after between January 1, 1990, and June 30, 2000, a 
 68.27  levy in a total dollar amount computed at a rate of 24 percent 
 68.28  of adjusted net tax capacity for taxes payable in 1991 and 
 68.29  thereafter; 
 68.30     (b) (c) in any district granted a debt service loan after 
 68.31  between July 31, 1981, and December 31, 1989, or granted a 
 68.32  capital loan which is approved after between July 31, 1981, and 
 68.33  December 31, 1989, a levy in a total dollar amount computed as a 
 68.34  tax rate of 21.92 percent on the adjusted net tax capacity for 
 68.35  taxes payable in 1991 and thereafter; or 
 68.36     (2) a levy in any district for which a capital loan was 
 69.1   approved prior to August 1, 1981, a levy in a total dollar 
 69.2   amount equal to the sum of the amount of the required debt 
 69.3   service levy and an amount which when levied annually will in 
 69.4   the opinion of the commissioner be sufficient to retire the 
 69.5   remaining interest and principal on any outstanding loans from 
 69.6   the state within 30 years of the original date when the capital 
 69.7   loan was granted.  
 69.8      The board in any district affected by the provisions of 
 69.9   clause (2) may elect instead to determine the amount of its levy 
 69.10  according to the provisions of clause (1).  If a district's 
 69.11  capital loan is not paid within 30 years because it elects to 
 69.12  determine the amount of its levy according to the provisions of 
 69.13  clause (2), the liability of the district for the amount of the 
 69.14  difference between the amount it levied under clause (2) and the 
 69.15  amount it would have levied under clause (1), and for interest 
 69.16  on the amount of that difference, must not be satisfied and 
 69.17  discharged pursuant to Minnesota Statutes 1988, or an earlier 
 69.18  edition of Minnesota Statutes if applicable, section 124.43, 
 69.19  subdivision 4. 
 69.20     <b>EFFECTIVE DATE:</b>  This section is effective for taxes 
 69.21  payable in 2001 and later.  
 69.22     Sec. 20.  Minnesota Statutes 1998, section 126C.69, 
 69.23  subdivision 3, is amended to read: 
 69.24     Subd. 3.  [DISTRICT REQUEST FOR REVIEW AND COMMENT.] A 
 69.25  district or a joint powers district that intends to apply for a 
 69.26  capital loan must submit a proposal to the commissioner for 
 69.27  review and comment according to section 123B.71 by July 1 of an 
 69.28  odd-numbered year.  The commissioner shall prepare a review and 
 69.29  comment on the proposed facility, regardless of the amount of 
 69.30  the capital expenditure required to construct the facility.  In 
 69.31  addition to the information provided under section 123B.71, 
 69.32  subdivision 9, the commissioner shall require that predesign 
 69.33  packages comparable to those required under section 16B.335 be 
 69.34  prepared by the applicant school district.  The predesign 
 69.35  packages must be sufficient to define the scope, cost, and 
 69.36  schedule of the project and must demonstrate that the project 
 70.1   has been analyzed according to appropriate space needs standards 
 70.2   and also consider the following criteria in determining whether 
 70.3   to make a positive review and comment.  
 70.4      (a) To grant a positive review and comment the commissioner 
 70.5   shall determine that all of the following conditions are met: 
 70.6      (1) the facilities are needed for pupils for whom no 
 70.7   adequate facilities exist or will exist; 
 70.8      (2) the district will serve, on average, at least 80 60 
 70.9   pupils per grade or is eligible for elementary or secondary 
 70.10  sparsity revenue; 
 70.11     (3) no form of cooperation with another district would 
 70.12  provide the necessary facilities; 
 70.13     (4) the facilities are comparable in size and quality to 
 70.14  facilities recently constructed in other districts that have 
 70.15  similar enrollments; 
 70.16     (5) the facilities are comparable in size and quality to 
 70.17  facilities recently constructed in other districts that are 
 70.18  financed without a capital loan; 
 70.19     (6) the district is projected to maintain or increase its 
 70.20  average daily membership over the next five years or is eligible 
 70.21  for elementary or secondary sparsity revenue have access to 
 70.22  funds in its general operating budget to support its program; 
 70.23     (7) the current facility poses a threat to the life, 
 70.24  health, and safety of pupils, and cannot reasonably be brought 
 70.25  into compliance with fire, health, or life safety codes; 
 70.26     (8) the district has made a good faith effort, as evidenced 
 70.27  by its maintenance expenditures, to adequately maintain the 
 70.28  existing facility during the previous ten years and to comply 
 70.29  with fire, health, and life safety codes and state and federal 
 70.30  requirements for handicapped accessibility; 
 70.31     (9) the district has made a good faith effort to encourage 
 70.32  integration of social service programs within the new facility; 
 70.33  and 
 70.34     (10) evaluations by boards of adjacent districts have been 
 70.35  received; and 
 70.36     (11) the proposal includes a comprehensive technology plan. 
 71.1      (b) The commissioner may grant a negative review and 
 71.2   comment if: 
 71.3      (1) the state demographer has examined the population of 
 71.4   the communities to be served by the facility and determined that 
 71.5   the communities have not grown during the previous five years; 
 71.6      (2) the state demographer determines that the economic and 
 71.7   population bases of the communities to be served by the facility 
 71.8   are not likely to grow or to remain at a level sufficient, 
 71.9   during the next ten years, to ensure use of the entire facility; 
 71.10     (3) the need for facilities could be met within the 
 71.11  district or adjacent districts at a comparable cost by leasing, 
 71.12  repairing, remodeling, or sharing existing facilities or by 
 71.13  using temporary facilities; 
 71.14     (4) the district plans do not include cooperation and 
 71.15  collaboration with health and human services agencies and other 
 71.16  political subdivisions; or 
 71.17     (5) if the application is for new construction, an existing 
 71.18  facility that would meet the district's needs could be purchased 
 71.19  at a comparable cost from any other source within the area. 
 71.20     Sec. 21.  Minnesota Statutes 1999 Supplement, section 
 71.21  126C.69, subdivision 9, is amended to read: 
 71.22     Subd. 9.  [LOAN AMOUNT LIMITS.] (a) A loan must not be 
 71.23  recommended for approval for a district exceeding an amount 
 71.24  computed as follows: 
 71.25     (1) the amount requested by the district under subdivision 
 71.26  6; 
 71.27     (2) plus the aggregate principal amount of general 
 71.28  obligation bonds of the district outstanding on June 30 of the 
 71.29  year following the year the application was received, not 
 71.30  exceeding the limitation on net debt of the district in section 
 71.31  475.53, subdivision 4, or 363 400 percent of its adjusted net 
 71.32  tax capacity as most recently determined, whichever is less; 
 71.33     (3) less the maximum net debt permissible for the district 
 71.34  on December 1 of the year the application is received, under the 
 71.35  limitation in section 475.53, subdivision 4, or 363 400 percent 
 71.36  of its adjusted net tax capacity as most recently determined, 
 72.1   whichever is less; 
 72.2      (4) less any amount by which the amount voted exceeds the 
 72.3   total cost of the facilities for which the loan is granted.  
 72.4      (b) The loan may be approved in an amount computed as 
 72.5   provided in paragraph (a), clauses (1) to (3), subject to later 
 72.6   reduction according to paragraph (a), clause (4). 
 72.7      Sec. 22.  Minnesota Statutes 1998, section 136D.281, 
 72.8   subdivision 4, is amended to read: 
 72.9      Subd. 4.  [REVERSE REFERENDUM.] The intermediate school 
 72.10  board shall not may sell and issue bonds for acquisition or 
 72.11  betterment purposes in an aggregate amount not to exceed 
 72.12  $2,000,000 if:  (1) each member school district board has 
 72.13  adopted a resolution authorizing the project; (2) the 
 72.14  intermediate board has prepared and published in a newspaper of 
 72.15  general circulation in the district a notice of the public 
 72.16  meeting on the intermediate district's intent to sell bonds; and 
 72.17  (3) the intermediate board has adopted a resolution authorizing 
 72.18  the bonds.  The resolution becomes final unless within 60 days 
 72.19  after the meeting where the resolution was adopted a petition 
 72.20  requesting an election is filed with the board.  The petition 
 72.21  must be signed by a number of qualified voters in excess of five 
 72.22  percent of the registered voters of the intermediate school 
 72.23  district who voted in the last general election.  If the 
 72.24  petition is filed, then the board resolution authorizing the 
 72.25  sale and issuance of bonds has no effect until the question of 
 72.26  their issuance has been submitted to the voters of the 
 72.27  intermediate school district at a special election held in and 
 72.28  for the intermediate district.  The date of the election, the 
 72.29  question to be submitted, and all other necessary conduct of the 
 72.30  election shall be fixed by the intermediate school board.  The 
 72.31  election shall be conducted and canvassed under the direction of 
 72.32  the intermediate school board in accordance with chapter 205A, 
 72.33  insofar as applicable. 
 72.34     If a majority of the total number of votes cast on the 
 72.35  question within the intermediate school district is in favor of 
 72.36  the question, the intermediate school board may proceed with the 
 73.1   sale and issuance of the bonds. 
 73.2      The bonds shall be general obligations of the intermediate 
 73.3   school district; however, each member school district must each 
 73.4   year certify its proportionate share of the debt service levy on 
 73.5   the bonds, with the allocation of its share of that levy 
 73.6   determined in accordance with the resolution authorizing the 
 73.7   project previously adopted by each member school board.  For 
 73.8   purposes of section 123B.53, the debt service levies certified 
 73.9   for this purpose by an individual member school district shall 
 73.10  be considered debt service levies of that school district.  By 
 73.11  July 1 and December 1 of each year, the school board of each 
 73.12  member school district shall transfer to the intermediate school 
 73.13  district an amount equal to 50 percent of the debt service levy 
 73.14  certified by that member school district in the previous fiscal 
 73.15  year to pay its proportionate share. 
 73.16     Sec. 23.  Minnesota Statutes 1998, section 136D.741, 
 73.17  subdivision 4, is amended to read: 
 73.18     Subd. 4.  [REVERSE REFERENDUM.] The intermediate school 
 73.19  board shall not may sell and issue bonds for acquisition or 
 73.20  betterment purposes in an aggregate amount not to exceed 
 73.21  $8,000,000 if:  (1) each member school district board has 
 73.22  adopted a resolution authorizing the project; (2) the 
 73.23  intermediate board has prepared and published in a newspaper of 
 73.24  general circulation in the district a notice of the public 
 73.25  meeting on the intermediate district's intent to sell bonds; and 
 73.26  (3) the intermediate board has adopted a resolution authorizing 
 73.27  the bonds.  The resolution becomes final unless within 60 days 
 73.28  after the meeting where the resolution was adopted a petition 
 73.29  requesting an election is filed with the board.  The petition 
 73.30  must be signed by a number of qualified voters in excess of five 
 73.31  percent of the registered voters of the intermediate school 
 73.32  district who voted in the last general election.  If the 
 73.33  petition is filed, then the board resolution authorizing the 
 73.34  sale and issuance of bonds has no effect until the question of 
 73.35  their issuance has been submitted to the voters of the 
 73.36  intermediate school district at a special election held in and 
 74.1   for such intermediate district.  The date of such election, the 
 74.2   question to be submitted, and all other necessary conduct of 
 74.3   such election shall be fixed by the intermediate school board 
 74.4   and said election shall be conducted and canvassed under the 
 74.5   direction of the intermediate school board in accordance with 
 74.6   chapter 205A, insofar as the same may be deemed applicable. 
 74.7      If a majority of the total number of votes cast on the 
 74.8   question within the intermediate school district is in favor of 
 74.9   the question, the intermediate school board may thereupon 
 74.10  proceed with the sale and the issuance of said bonds. 
 74.11     The bonds shall be general obligations of the intermediate 
 74.12  school district; however, each member school district must each 
 74.13  year certify its proportionate share of the debt service levy on 
 74.14  the bonds, with the allocation of its share of that levy 
 74.15  determined in accordance with the resolution authorizing the 
 74.16  project previously adopted by each member school board.  For 
 74.17  purposes of section 123B.53, the debt service levies certified 
 74.18  for this purpose by an individual member school district shall 
 74.19  be considered debt service levies of that school district.  By 
 74.20  July 1 and December 1 of each year, the school board of each 
 74.21  member school district shall transfer to the intermediate school 
 74.22  district an amount equal to 50 percent of the debt service levy 
 74.23  certified by that member school district in the previous fiscal 
 74.24  year to pay its proportionate share. 
 74.25     Sec. 24.  Minnesota Statutes 1998, section 136D.88, 
 74.26  subdivision 4, is amended to read: 
 74.27     Subd. 4.  [REVERSE REFERENDUM.] The intermediate school 
 74.28  board shall not may sell and issue bonds for acquisition or 
 74.29  betterment purposes in an aggregate amount not to exceed 
 74.30  $8,000,000 if:  (1) each member school district board has 
 74.31  adopted a resolution authorizing the project; (2) the 
 74.32  intermediate board has prepared and published in a newspaper of 
 74.33  general circulation in the district a notice of the public 
 74.34  meeting on the intermediate district's intent to sell bonds; and 
 74.35  (3) the intermediate board has adopted a resolution authorizing 
 74.36  the bonds.  The resolution becomes final unless within 60 days 
 75.1   after the meeting where the resolution was adopted a petition 
 75.2   requesting an election is filed with the board.  The petition 
 75.3   must be signed by a number of qualified voters in excess of five 
 75.4   percent of the registered voters of the intermediate school 
 75.5   district who voted in the last general election.  If the 
 75.6   petition is filed, then the board resolution authorizing the 
 75.7   sale and issuance of bonds has no effect until the question of 
 75.8   their issuance has been submitted to the voters of the 
 75.9   intermediate school district at a special election held in and 
 75.10  for the intermediate district.  The date of the election, the 
 75.11  question to be submitted, and all other necessary conduct of the 
 75.12  election shall be fixed by the intermediate school board.  The 
 75.13  election shall be conducted and canvassed under the direction of 
 75.14  the intermediate school board in accordance with chapter 205A, 
 75.15  insofar as applicable. 
 75.16     If a majority of the total number of votes cast on the 
 75.17  question within the intermediate school district is in favor of 
 75.18  the question, the intermediate school board may thereupon 
 75.19  proceed with the sale and issuance of the bonds. 
 75.20     The bonds shall be general obligations of the intermediate 
 75.21  school district; however, each member school district must each 
 75.22  year certify its proportionate share of the debt service levy on 
 75.23  the bonds, with the allocation of its share of that levy 
 75.24  determined in accordance with the resolution authorizing the 
 75.25  project previously adopted by each member school board.  For 
 75.26  purposes of section 123B.53, the debt service levies certified 
 75.27  for this purpose by an individual member school district shall 
 75.28  be considered debt service levies of that school district.  By 
 75.29  July 1 and December 1 of each year, the school board of each 
 75.30  member school district shall transfer to the intermediate school 
 75.31  district an amount equal to 50 percent of the debt service levy 
 75.32  certified by that member school district in the previous fiscal 
 75.33  year to pay its proportionate share. 
 75.34     Sec. 25.  Minnesota Statutes 1998, section 475.53, 
 75.35  subdivision 4, is amended to read: 
 75.36     Subd. 4.  [SCHOOL DISTRICTS.] Except as otherwise provided 
 76.1   by law, no school district shall be subject to a net debt in 
 76.2   excess of ten percent of the actual market value of all taxable 
 76.3   property situated within its corporate limits, as computed in 
 76.4   accordance with this subdivision.  The county auditor of each 
 76.5   county containing taxable real or personal property situated 
 76.6   within any school district shall certify to the district upon 
 76.7   request the market value of all such property.  Whenever the 
 76.8   commissioner of revenue, in accordance with section 127A.48, 
 76.9   subdivisions 1 to 6, has determined that the net tax capacity of 
 76.10  any district furnished by county auditors is not based upon the 
 76.11  market value of taxable property in the district, the 
 76.12  commissioner of revenue shall certify to the district upon 
 76.13  request the ratio most recently ascertained to exist between 
 76.14  such value and the actual market value of property within the 
 76.15  district.  The actual market value of property within a 
 76.16  district, on which its debt limit under this subdivision is 
 76.17  based, is (a) the value certified by the county auditors, or (b) 
 76.18  this value divided by the ratio certified by the commissioner of 
 76.19  revenue, whichever results in a higher value times the adjusted 
 76.20  net tax capacity of the district as defined in section 126C.01, 
 76.21  subdivision 2. 
 76.22     Sec. 26.  Laws 1999, chapter 241, article 4, section 27, 
 76.23  subdivision 2, is amended to read: 
 76.24     Subd. 2.  [HEALTH AND SAFETY AID.] For health and safety 
 76.25  aid according to Minnesota Statutes, section 123B.57, 
 76.26  subdivision 5: 
 76.27       $14,528,000 $14,015,000   .....     2000 
 76.28       $14,957,000 $14,450,000   .....     2001 
 76.29     The 2000 appropriation includes $1,415,000 for 1999 and 
 76.30  $13,113,000 $12,600,000 for 2000.  
 76.31     The 2001 appropriation includes $1,456,000 $1,400,000 for 
 76.32  2000 and $13,501,000 $13,050,000 for 2001.  
 76.33     <b>EFFECTIVE DATE:</b>  This section is effective the day 
 76.34  following final enactment.  
 76.35     Sec. 27.  Laws 1999, chapter 241, article 4, section 27, 
 76.36  subdivision 3, is amended to read: 
 77.1      Subd. 3.  [DEBT SERVICE AID.] For debt service aid 
 77.2   according to Minnesota Statutes, section 123B.53, subdivision 6: 
 77.3        $33,165,000 $33,141,000   .....     2000
 77.4        $32,084,000 $29,400,000   .....     2001
 77.5      The 2000 appropriation includes $3,842,000 for 1999 and 
 77.6   $29,323,000 $29,299,000 for 2000. 
 77.7      The 2001 appropriation includes $3,256,000 $3,255,000 for 
 77.8   2000 and $28,828,000 $26,145,000 for 2001. 
 77.9      <b>EFFECTIVE DATE:</b>  This section is effective the day 
 77.10  following final enactment.  
 77.11     Sec. 28.  Laws 1999, chapter 241, article 4, section 27, 
 77.12  subdivision 4, is amended to read: 
 77.13     Subd. 4.  [INTERACTIVE TELEVISION (ITV) AID.] For 
 77.14  interactive television (ITV) aid under Minnesota Statutes, 
 77.15  section 126C.40, subdivision 4: 
 77.16       $4,197,000 $4,194,000    .....     2000
 77.17       $2,851,000 $2,761,000    .....     2001
 77.18     The 2000 appropriation includes $405,000 for 1999 and 
 77.19  $3,792,000 $3,789,000 for 2000. 
 77.20     The 2001 appropriation includes $421,000 for 2000 and 
 77.21  $2,430,000 $2,340,000 for 2001. 
 77.22     <b>EFFECTIVE DATE:</b>  This section is effective the day 
 77.23  following final enactment.  
 77.24     Sec. 29.  Laws 1999, chapter 241, article 4, section 27, 
 77.25  subdivision 5, is amended to read: 
 77.26     Subd. 5.  [ALTERNATIVE FACILITIES BONDING AID.] For 
 77.27  alternative facilities bonding aid, according to Minnesota 
 77.28  Statutes, section 123B.59: 
 77.29       $19,058,000 $18,920,000   .....     2000 
 77.30       $19,286,000 $19,134,000   .....     2001 
 77.31     The 2000 appropriation includes $1,700,000 for 2000 1999 
 77.32  and $17,358,000 $17,220,000 for 2001 2000. 
 77.33     The 2001 appropriation includes $1,928,000 $1,913,000 for 
 77.34  2000 and $17,358,000 $17,221,000 for 2001. 
 77.35     <b>EFFECTIVE DATE:</b>  This section is effective the day 
 77.36  following final enactment.  
 78.1      Sec. 30.  Laws 1999, chapter 241, article 4, section 27, 
 78.2   subdivision 7, is amended to read: 
 78.3      Subd. 7.  [TELECOMMUNICATION ACCESS GRANTS.] (a) For 
 78.4   telecommunication access grants according to Minnesota Statutes, 
 78.5   section 125B.20: 
 78.6       $ 5,000,000     .....     2000 
 78.7       $10,000,000     .....     2001
 78.8      (b) Any balance in the first year does not cancel but is 
 78.9   available in the second year.  This amount shall not be included 
 78.10  as part of the base for fiscal year 2002-2003. 
 78.11     Sec. 31.  Laws 1999, chapter 241, article 4, section 27, 
 78.12  subdivision 10, is amended to read: 
 78.13     Subd. 10.  [DECLINING PUPIL AID; ST. PETER.] For a grant to 
 78.14  independent school district No. 508, St. Peter, to ameliorate 
 78.15  general fund operating losses associated with the March, 1998 
 78.16  tornado: 
 78.17       $  105,000 $ 75,000    .....     2000 
 78.18       $  278,000 $115,000    .....     2001 
 78.19     <b>EFFECTIVE DATE:</b>  This section is effective the day 
 78.20  following final enactment. 
 78.21     Sec. 32.  Laws 1999, chapter 241, article 4, section 27, 
 78.22  subdivision 11, is amended to read: 
 78.23     Subd. 11.  [FLOODS; DECLINING PUPIL AID.] For declining 
 78.24  pupil aid under section 23: 
 78.25       $2,132,000 $2,087,000    .....     2000 
 78.26       $1,758,000 $1,639,000    .....     2001 
 78.27     <b>EFFECTIVE DATE:</b>  This section is effective the day 
 78.28  following final enactment. 
 78.29     Sec. 33.  Laws 1999, chapter 241, article 4, section 29, is 
 78.30  amended to read: 
 78.31     Sec. 29.  [REPEALER.] 
 78.32     (a) Minnesota Statutes 1998, sections 123A.44; 123A.441; 
 78.33  123A.442; 123A.443; 123A.444; 123A.445; 123A.446; 123B.57, 
 78.34  subdivisions 4, 5, and 7; 123B.59, subdivision 7; 123B.63, 
 78.35  subdivisions 1 and 2; section 123B.66; 123B.67; 123B.68; and 
 78.36  123B.69, are, is repealed effective the day following final 
 79.1   enactment. 
 79.2      (b) Minnesota Statutes 1998, section 123B.58, is repealed 
 79.3   effective July 1, 2004. 
 79.4      (c) Minnesota Statutes 1998, section 123B.64, subdivision 
 79.5   4, is repealed effective for revenue for fiscal year 2000. 
 79.6      (d) (c) Minnesota Statutes 1998, section 123B.64, 
 79.7   subdivisions 1, 2, and 3, are repealed effective for revenue for 
 79.8   fiscal year 2001. 
 79.9      (e) (d) Minnesota Rules, parts 3500.3900; 3500.4000; 
 79.10  3500.4100; 3500.4200; and 3500.4300, are repealed. 
 79.11     <b>EFFECTIVE DATE:</b>  This section is effective the day 
 79.12  following final enactment.  
 79.13     Sec. 34.  [TECHNOLOGY CAPABILITIES TASK FORCE.] 
 79.14     The commissioner of children, families, and learning must 
 79.15  convene a task force to determine the ongoing technology needs 
 79.16  of Minnesota's school districts including the cost of 
 79.17  maintenance, support services, and technology upgrades.  The 
 79.18  task force is composed of the commissioner of children, 
 79.19  families, and learning, or the commissioner's designee, two 
 79.20  persons appointed by Education Minnesota, two persons appointed 
 79.21  by the Minnesota school boards association, one person appointed 
 79.22  by the Minnesota rural education association, one person 
 79.23  appointed by the service cooperatives, one elementary school 
 79.24  principal appointed by the Minnesota elementary principals 
 79.25  association, one secondary school principal appointed by the 
 79.26  Minnesota association of secondary school principals, one 
 79.27  superintendent appointed by the Minnesota association of school 
 79.28  administrators, one school media specialist appointed by the 
 79.29  Minnesota educational media organization, one teacher aide 
 79.30  appointed by the commissioner, one assistive technology 
 79.31  practitioner appointed by the commissioner, one person appointed 
 79.32  by the Minnesota high technology council, one person from the 
 79.33  Minnesota Business Partnership, one person from the Minnesota 
 79.34  Chamber of Commerce, and two people from the Minnesota education 
 79.35  telecommunications council.  The task force must establish 
 79.36  minimum technology standards for school districts and for school 
 80.1   sites.  The task force must report its minimum standards for 
 80.2   technology to the education committees of the legislature by 
 80.3   February 15, 2001. 
 80.4      Sec. 35.  [DECLINING PUPIL UNITS; ST. PETER.] 
 80.5      For purposes of Laws 1999, chapter 241, article 4, section 
 80.6   22, the St. Peter school district's marginal cost pupil units 
 80.7   for the 1996-1997 school year must be calculated using the pupil 
 80.8   weights in effect for fiscal year 2000. 
 80.9      Sec. 36.  [REPEALER WITHOUT EFFECT.] 
 80.10     The repeal of Minnesota Statutes 1998, sections 123A.44; 
 80.11  123A.441; 123A.442; 123A.443; 123A.444; 123A.445; 123A.446; 
 80.12  123B.57, subdivisions 4, 5, and 7; 123B.59, subdivision 7; 
 80.13  123B.63, subdivisions 1 and 2; 123B.67; 123B.68; and 123B.69, by 
 80.14  Laws 1999, chapter 241, article 4, section 29, with an effective 
 80.15  date of May 26, 1999, is without effect and Minnesota Statutes 
 80.16  1998, sections 123A.44; 123A.441; 123A.442; 123A.443; 123A.444; 
 80.17  123A.445; 123A.446; 123B.57, subdivisions 4, 5, and 7; 123B.59, 
 80.18  subdivision 7; 123B.63, subdivisions 1 and 2; 123B.67; 123B.68; 
 80.19  and 123B.69, remain in effect after May 25, 1999. 
 80.20     <b>EFFECTIVE DATE:</b>  This section is effective retroactive to 
 80.21  May 25, 1999. 
 80.22     Sec. 37.  [REPEALER.] 
 80.23     (a) Minnesota Statutes 1998, sections 136D.281, subdivision 
 80.24  8; 136D.741, subdivision 8; and 136D.88, subdivision 8, are 
 80.25  repealed effective July 1, 2000. 
 80.26     (b) Minnesota Statutes 1998, section 123B.59, subdivision 
 80.27  7, is repealed effective June 30, 2001. 
 80.28                             ARTICLE 6 
 80.29              KINDERGARTEN THROUGH GRADE 12 EDUCATION:
 80.30              EDUCATIONAL EXCELLENCE AND OTHER POLICY 
 80.31     Section 1.  Minnesota Statutes 1998, section 120A.41, is 
 80.32  amended to read: 
 80.33     120A.41 [LENGTH OF SCHOOL YEAR; DAYS OF INSTRUCTION.] 
 80.34     A school board's annual school calendar must include at 
 80.35  least three additional days of student instruction beyond the 
 80.36  number of 173 days of student instruction the board formally 
 81.1   adopted as its school calendar at the beginning of the 1996-1997 
 81.2   school year and five days of staff development or parent-teacher 
 81.3   conferences and related activities. 
 81.4      <b>EFFECTIVE DATE:</b>  This section is effective the day 
 81.5   following final enactment and applies for 2001-2002 and later 
 81.6   school years. 
 81.7      Sec. 2.  [121A.582] [STUDENT DISCIPLINE; REASONABLE FORCE.] 
 81.8      Subdivision 1.  [REASONABLE FORCE STANDARD.] (a) A teacher, 
 81.9   in exercising the person's lawful authority, may use reasonable 
 81.10  force when it is necessary under the circumstances to correct or 
 81.11  restrain a student or prevent bodily harm or death to another. 
 81.12     (b) A school employee, school bus driver, or other agent of 
 81.13  a district, in exercising the person's lawful authority, may use 
 81.14  reasonable force when it is necessary under the circumstances to 
 81.15  restrain a student or prevent bodily harm or death to another. 
 81.16     (c) Paragraphs (a) and (b) do not authorize conduct 
 81.17  prohibited under sections 121A.58 and 121A.67. 
 81.18     Subd. 2.  [CIVIL LIABILITY.] (a) A teacher who, in the 
 81.19  exercise of the person's lawful authority, uses reasonable force 
 81.20  under the standard in subdivision 1, paragraph (a), has a 
 81.21  defense against a civil action for damages under section 123B.25.
 81.22     (b) A school employee, bus driver, or other agent of a 
 81.23  district who, in the exercise of the person's lawful authority, 
 81.24  uses reasonable force under the standard in subdivision 1, 
 81.25  paragraph (b), has a defense against a civil action for damages 
 81.26  under section 123B.25. 
 81.27     Subd. 3.  [CRIMINAL PROSECUTION.] (a) A teacher who, in the 
 81.28  exercise of the person's lawful authority, uses reasonable force 
 81.29  under the standard in subdivision 1, paragraph (a), has a 
 81.30  defense against a criminal prosecution under section 609.06, 
 81.31  subdivision 1. 
 81.32     (b) A school employee, bus driver, or other agent of a 
 81.33  district who, in the exercise of the person's lawful authority, 
 81.34  uses reasonable force under the standard in subdivision 1, 
 81.35  paragraph (b), has a defense against a criminal prosecution 
 81.36  under section 609.06, subdivision 1. 
 82.1      Subd. 4.  [SUPPLEMENTARY RIGHTS AND DEFENSES.] Any right or 
 82.2   defense in this section is supplementary to those specified in 
 82.3   section 121A.58, 121A.67, 123B.25, or 609.06, subdivision 1. 
 82.4      <b>EFFECTIVE DATE:</b>  This section is effective for the 
 82.5   2000-2001 school year and later. 
 82.6      Sec. 3.  Minnesota Statutes 1998, section 121A.61, 
 82.7   subdivision 3, is amended to read: 
 82.8      Subd. 3.  [POLICY COMPONENTS.] The policy must include at 
 82.9   least the following components:  
 82.10     (a) rules governing student conduct and procedures for 
 82.11  informing students of the rules; 
 82.12     (b) the grounds for removal of a student from a class; 
 82.13     (c) the authority of the classroom teacher to remove 
 82.14  students from the classroom pursuant to procedures and rules 
 82.15  established in the district's policy; 
 82.16     (d) the procedures for removal of a student from a class by 
 82.17  a teacher, school administrator, or other school district 
 82.18  employee; 
 82.19     (e) the period of time for which a student may be removed 
 82.20  from a class, which may not exceed five class periods for a 
 82.21  violation of a rule of conduct; 
 82.22     (f) provisions relating to the responsibility for and 
 82.23  custody of a student removed from a class; 
 82.24     (g) the procedures for return of a student to the specified 
 82.25  class from which the student has been removed; 
 82.26     (h) the procedures for notifying a student and the 
 82.27  student's parents or guardian of violations of the rules of 
 82.28  conduct and of resulting disciplinary actions; 
 82.29     (i) any procedures determined appropriate for encouraging 
 82.30  early involvement of parents or guardians in attempts to improve 
 82.31  a student's behavior; 
 82.32     (j) any procedures determined appropriate for encouraging 
 82.33  early detection of behavioral problems; 
 82.34     (k) any procedures determined appropriate for referring a 
 82.35  student in need of special education services to those services; 
 82.36     (1) the procedures for consideration of whether there is a 
 83.1   need for a further assessment or of whether there is a need for 
 83.2   a review of the adequacy of a current individual education plan 
 83.3   of a student with a disability who is removed from class; 
 83.4      (m) procedures for detecting and addressing chemical abuse 
 83.5   problems of a student while on the school premises; 
 83.6      (n) the minimum consequences for violations of the code of 
 83.7   conduct; and 
 83.8      (o) procedures for immediate and appropriate interventions 
 83.9   tied to violations of the code; and 
 83.10     (p) a provision that states that a teacher, school 
 83.11  employee, school bus driver, or other agent of a district may 
 83.12  use reasonable force in compliance with section 121A.582 and 
 83.13  other laws.  
 83.14     <b>EFFECTIVE DATE:</b>  This section is effective for the 
 83.15  2001-2002 school year and thereafter. 
 83.16     Sec. 4.  Minnesota Statutes 1999 Supplement, section 
 83.17  122A.09, subdivision 4, is amended to read: 
 83.18     Subd. 4.  [LICENSE AND RULES.] (a) The board must adopt 
 83.19  rules to license public school teachers and interns subject to 
 83.20  chapter 14. 
 83.21     (b) The board must adopt rules requiring a person to 
 83.22  successfully complete a skills examination in reading, writing, 
 83.23  and mathematics as a requirement for initial teacher licensure.  
 83.24  Such rules must require college and universities offering a 
 83.25  board approved teacher preparation program to provide remedial 
 83.26  assistance to persons who did not achieve a qualifying score on 
 83.27  the skills examination, including those for whom English is a 
 83.28  second language. 
 83.29     (c) The board must adopt rules to approve teacher 
 83.30  preparation programs.  The board, upon the request of a 
 83.31  post-secondary student preparing for teacher licensure or a 
 83.32  licensed graduate of a teacher preparation program, shall assist 
 83.33  in resolving a dispute between the person and a post-secondary 
 83.34  institution providing a teacher preparation program when the 
 83.35  dispute involves an institution's recommendation for licensure 
 83.36  affecting the person or the person's credentials.  At the 
 84.1   board's discretion, assistance may include the application of 
 84.2   chapter 14. 
 84.3      (d) The board must provide the leadership and shall adopt 
 84.4   rules for the redesign of teacher education programs to 
 84.5   implement a research based, results-oriented curriculum that 
 84.6   focuses on the skills teachers need in order to be effective.  
 84.7   The board shall implement new systems of teacher preparation 
 84.8   program evaluation to assure program effectiveness based on 
 84.9   proficiency of graduates in demonstrating attainment of program 
 84.10  outcomes. 
 84.11     (e) The board must adopt rules requiring successful 
 84.12  completion of an examination of general pedagogical knowledge 
 84.13  and examinations of licensure-specific teaching skills.  The 
 84.14  rules shall be effective on the dates determined by the board, 
 84.15  but not later than September 1, 2001. 
 84.16     (f) The board must adopt rules requiring teacher educators 
 84.17  to work directly with elementary or secondary school teachers in 
 84.18  elementary or secondary schools to obtain periodic exposure to 
 84.19  the elementary or secondary teaching environment. 
 84.20     (g) The board must grant licenses to interns and to 
 84.21  candidates for initial licenses. 
 84.22     (h) The board must design and implement an assessment 
 84.23  system which requires a candidate for an initial license and 
 84.24  first continuing license to demonstrate the abilities necessary 
 84.25  to perform selected, representative teaching tasks at 
 84.26  appropriate levels. 
 84.27     (i) The board must receive recommendations from local 
 84.28  committees as established by the board for the renewal of 
 84.29  teaching licenses. 
 84.30     (j) The board must grant life licenses to those who qualify 
 84.31  according to requirements established by the board, and suspend 
 84.32  or revoke licenses pursuant to sections 122A.20 and 214.10.  The 
 84.33  board must not establish any expiration date for application for 
 84.34  life licenses.  
 84.35     (k) The board must adopt rules that require all licensed 
 84.36  teachers who are renewing their continuing license to include in 
 85.1   their renewal requirements further preparation in the areas of 
 85.2   using positive behavior interventions and in accommodating, 
 85.3   modifying, and adapting curricula, materials, and strategies to 
 85.4   appropriately meet the needs of individual students and ensure 
 85.5   adequate progress toward the state's graduation rule.  The rules 
 85.6   adopted under this paragraph apply to teachers who renew their 
 85.7   licenses in year 2001 and later. 
 85.8      (l) In adopting rules to license public school teachers who 
 85.9   provide health-related services for disabled children, the board 
 85.10  shall adopt rules consistent with license or registration 
 85.11  requirements of the commissioner of health and the 
 85.12  health-related boards who license personnel who perform similar 
 85.13  services outside of the school. 
 85.14     (m) Notwithstanding any law or rule to the contrary, the 
 85.15  board of teaching shall issue an alternative two-year license to 
 85.16  teach in Minnesota if the applicant: 
 85.17     (1) holds a degree from an out-of-state institution of 
 85.18  higher education that is comparable in rank and standing to a 
 85.19  Minnesota state university, the University of Minnesota, or a 
 85.20  nonpublic state liberal arts college or university, provided the 
 85.21  applicant received the degree for completing a teacher 
 85.22  preparation program; 
 85.23     (2) has successfully completed a basic skills exam in 
 85.24  reading, writing, and mathematics approved by the board of 
 85.25  teaching under section 122A.09, subdivision 4, clause (b); 
 85.26     (3) has undergone a background check under section 122A.18, 
 85.27  subdivision 8, and, as a result of the background check, is 
 85.28  eligible to be licensed by the board of teaching; and 
 85.29     (4) documents that the applicant has experience as a 
 85.30  licensed teacher of school-age children and provides personal 
 85.31  references. 
 85.32     A school district that hires a teacher with an alternative 
 85.33  two-year license under this subdivision shall name for the 
 85.34  teacher a mentorship team that includes the school principal or 
 85.35  other person charged with administering the school site.  The 
 85.36  team shall evaluate the teacher and recommend to the board of 
 86.1   teaching whether or not the teacher should receive a continuing 
 86.2   license.  If the recommendation is favorable, the board of 
 86.3   teaching shall issue a continuing license to the teacher.  If 
 86.4   the recommendation is unfavorable, the board of teaching may, at 
 86.5   its discretion, renew the alternative two-year license under 
 86.6   this subdivision for an additional two-year period or decline to 
 86.7   further consider the applicant for a license under this 
 86.8   subdivision. 
 86.9      Sec. 5.  Minnesota Statutes 1998, section 122A.18, 
 86.10  subdivision 2, is amended to read: 
 86.11     Subd. 2.  [TEACHER AND SUPPORT PERSONNEL QUALIFICATIONS.] 
 86.12  (a) The board of teaching must issue licenses under its 
 86.13  jurisdiction to persons the board finds to be qualified and 
 86.14  competent for their respective positions. 
 86.15     (b) The board must require a person to successfully 
 86.16  complete an examination of skills in reading, writing, and 
 86.17  mathematics before being granted an initial teaching license to 
 86.18  provide direct instruction to pupils in prekindergarten, 
 86.19  elementary, secondary, or special education programs.  The board 
 86.20  must require colleges and universities offering a board approved 
 86.21  teacher preparation program to provide remedial assistance that 
 86.22  includes a formal diagnostic component to persons enrolled in 
 86.23  their institution who did not achieve a qualifying score on the 
 86.24  skills examination, including those for whom English is a second 
 86.25  language.  The colleges and universities must provide assistance 
 86.26  in the specific academic areas of deficiency in which the person 
 86.27  did not achieve a qualifying score.  School districts must 
 86.28  provide similar, appropriate, and timely remedial assistance 
 86.29  that includes a formal diagnostic component and mentoring to 
 86.30  those persons employed by the district who completed their 
 86.31  teacher education program outside the state of Minnesota, 
 86.32  received a one-year license to teach in Minnesota and did not 
 86.33  achieve a qualifying score on the skills examination, including 
 86.34  those persons for whom English is a second language.  The board 
 86.35  of teaching shall report annually to the education committees of 
 86.36  the legislature on the total number of teacher candidates during 
 87.1   the most recent school year taking the basic skills examination 
 87.2   under section 122A.09, subdivision 4, clause (b), the number who 
 87.3   achieve a qualifying score on the examination, the number who do 
 87.4   not achieve a qualifying score on the examination, the 
 87.5   distribution of all candidates' scores, the number of candidates 
 87.6   who have taken the examination at least once before, and the 
 87.7   number of candidates who have taken the examination at least 
 87.8   once before and achieve a qualifying score.  The data shall be 
 87.9   disaggregated to the institutional level.  
 87.10     (c) A person who has completed an approved teacher 
 87.11  preparation program and obtained a one-year license to teach, 
 87.12  but has not successfully completed the skills examination, may 
 87.13  renew the one-year license for two additional one-year periods.  
 87.14  Each renewal of the one-year license is contingent upon the 
 87.15  licensee: 
 87.16     (1) providing evidence of participating in an approved 
 87.17  remedial assistance program provided by a school district or 
 87.18  post-secondary institution that includes a formal diagnostic 
 87.19  component in the specific areas in which the licensee did not 
 87.20  obtain qualifying scores; and 
 87.21     (2) attempting to successfully complete the skills 
 87.22  examination during the period of each one-year license. 
 87.23     (d) The board of teaching must grant continuing licenses 
 87.24  only to those persons who have met board criteria for granting a 
 87.25  continuing license, which includes successfully completing the 
 87.26  skills examination in reading, writing, and mathematics. 
 87.27     (e) All colleges and universities approved by the board of 
 87.28  teaching to prepare persons for teacher licensure must include 
 87.29  in their teacher preparation programs a common core of teaching 
 87.30  knowledge and skills to be acquired by all persons recommended 
 87.31  for teacher licensure.  This common core shall meet the 
 87.32  standards developed by the interstate new teacher assessment and 
 87.33  support consortium in its 1992 "model standards for beginning 
 87.34  teacher licensing and development."  Amendments to standards 
 87.35  adopted under this paragraph are covered by chapter 14.  The 
 87.36  board of teaching shall report annually to the education 
 88.1   committees of the legislature on the performance of teacher 
 88.2   candidates on common core assessments of knowledge and skills 
 88.3   under this paragraph during the most recent school year. 
 88.4      <b>EFFECTIVE DATE:</b>  This section is effective for the 
 88.5   2000-2001 school year and thereafter. 
 88.6      Sec. 6.  [122A.655] [RECRUITMENT OF EXCELLENT TEACHERS IN 
 88.7   SCIENCE, MATH, INDUSTRIAL TECHNOLOGY, AND SPECIAL EDUCATION AND 
 88.8   IN RURAL AREAS; LOAN FORGIVENESS PROGRAM.] 
 88.9      Subdivision 1.  [PROGRAM ESTABLISHED; ACCOUNT CREATED.] (a) 
 88.10  A loan forgiveness program is established to assist Minnesota 
 88.11  public schools in recruiting and retaining excellent teachers in 
 88.12  science, math, industrial technology, and special education and 
 88.13  in rural areas.  A loan forgiveness program account is created 
 88.14  in the state treasury.  The account consists of money 
 88.15  appropriated by the legislature and repayments and penalties 
 88.16  collected under subdivision 4.  All money in this account is 
 88.17  annually appropriated to the commissioner and must be used to 
 88.18  repay loans of qualified licensed teachers who agree to teach in 
 88.19  high-need areas under subdivision 2. 
 88.20     (b) A school district that employs a teacher participating 
 88.21  in this program must provide the teacher with mentoring that: 
 88.22     (1) offers appropriate intervention, which may include 
 88.23  assisting with student discipline or classroom management, 
 88.24  adjustments to the teaching assignment, student motivation, 
 88.25  lesson planning, accommodations for individual student 
 88.26  differences, or finding and using effective materials; 
 88.27     (2) orients the teacher to the school and the community; 
 88.28  and 
 88.29     (3) ensures instructional and interpersonal support that 
 88.30  fosters professional development and the teacher's retention. 
 88.31     Subd. 2.  [ELIGIBILITY; APPLICATION.] (a) To participate in 
 88.32  this program, a person must: 
 88.33     (1) have graduated from an approved teacher preparation 
 88.34  institution within 12 months of submitting an application to the 
 88.35  commissioner to participate in this program; 
 88.36     (2) have a 3.0 grade point average or higher in that 
 89.1   portion of the teacher preparation program affecting licensure 
 89.2   in the field of math, science, industrial technology, or special 
 89.3   education, and be licensed to teach in the field of math, 
 89.4   science, industrial technology, or special education; and 
 89.5      (3) agree to be employed as a teacher for at least three 
 89.6   consecutive school years in one Minnesota public school.  
 89.7      (b) A person who meets the criteria in paragraph (a) and 
 89.8   agrees to be employed as a teacher in a public school located in 
 89.9   Minnesota outside the metropolitan area, as defined in section 
 89.10  473.121, subdivision 2, is eligible to receive an additional 
 89.11  amount of $1,000 per year under subdivision 3. 
 89.12     (c) To be eligible to participate in this program, a person 
 89.13  must submit an application to the commissioner in the form and 
 89.14  manner the commissioner prescribes. 
 89.15     (d) The commissioner shall select applicants that qualify 
 89.16  for this program, notify eligible people about the program, 
 89.17  develop and disseminate application materials, and carry out 
 89.18  other activities needed to implement this section. 
 89.19     Subd. 3.  [LOAN FORGIVENESS.] For fiscal year 2001, the 
 89.20  commissioner may select teacher applicants to participate in 
 89.21  this program.  Program participants are responsible for securing 
 89.22  their own loans.  Program participants who meet the criteria in 
 89.23  subdivision 2, paragraph (a), may designate for each year of 
 89.24  post-secondary education leading to a license to teach, up to a 
 89.25  total of three years, an agreed amount, not to exceed $3,000 per 
 89.26  year, as a qualified loan.  Program participants who meet the 
 89.27  criteria in subdivision 2, paragraphs (a) and (b), may designate 
 89.28  for each year of post-secondary education leading to a license 
 89.29  to teach, up to a total of three years, an agreed amount not to 
 89.30  exceed $4,000 per year, as a qualified loan.  For each year that 
 89.31  a participant is employed in a school district according to 
 89.32  subdivision 2, up to a total of three years, the commissioner 
 89.33  shall annually pay an amount equal to one year of qualified 
 89.34  loans.  
 89.35     Subd. 4.  [PENALTY.] If a teacher participating in this 
 89.36  program does not fulfill the required three years of service in 
 90.1   a qualifying public school for full repayment of all qualified 
 90.2   loans, then the commissioner must collect from the teacher the 
 90.3   amount paid under this loan forgiveness program.  The 
 90.4   commissioner shall deposit the money the commissioner collects 
 90.5   in the loan forgiveness program account under subdivision 1.  
 90.6   The commissioner may grant a waiver for all or part of the money 
 90.7   owed as a result of a penalty if, according to criteria 
 90.8   established by the commissioner, emergency circumstances prevent 
 90.9   the teacher from fulfilling the teacher's three-year commitment 
 90.10  to teach. 
 90.11     Sec. 7.  [123B.055] [CONTRACTS FOR COMPUTERS OR RELATED 
 90.12  EQUIPMENT OR SERVICE.] 
 90.13     The school board of a school district may not enter into a 
 90.14  contract or permit a school within the district to enter into a 
 90.15  contract for the use of a computer or related equipment or 
 90.16  service that requires advertising to be disseminated to students 
 90.17  unless the school board: 
 90.18     (1) enters into the contract at a public hearing of the 
 90.19  school board; 
 90.20     (2) makes a finding that the offered electronic product or 
 90.21  service is an integral component of students' education; 
 90.22     (3) provides written notice to students' parents that 
 90.23  advertising will be used in the classroom, media center, 
 90.24  computer lab, or other areas of learning; 
 90.25     (4) as part of normal, ongoing district communications with 
 90.26  parents, allows parents to request in writing that (i) their 
 90.27  student not be exposed to the program that contains the 
 90.28  advertising for the current school year, or that (ii) any or all 
 90.29  directory information relating to the student that is collected 
 90.30  as a result of this contract is not disclosed; and 
 90.31     (5) honors parents' request, under clause (4), that their 
 90.32  student not be exposed to the advertising program or that 
 90.33  directory information relating to the student is not disclosed 
 90.34  and allows parents to withdraw their request at any time. 
 90.35     Advertising under this section does not include the 
 90.36  identification of the source of the document or information. 
 91.1      <b>EFFECTIVE DATE:</b>  This section is effective the day 
 91.2   following final enactment. 
 91.3      Sec. 8.  Minnesota Statutes 1998, section 123B.79, 
 91.4   subdivision 7, is amended to read: 
 91.5      Subd. 7.  [ACCOUNT TRANSFER FOR CERTAIN SEVERANCE PAY.] A 
 91.6   district may maintain in a designated reserve for certain 
 91.7   severance pay account not more than 50 percent of the amount 
 91.8   necessary to meet the obligations for the portion of severance 
 91.9   pay that constitutes compensation for accumulated sick leave to 
 91.10  be used for payment of premiums for group insurance provided for 
 91.11  former employees by the district.  The amount necessary must be 
 91.12  calculated according to standards established by the advisory 
 91.13  council on uniform financial accounting and reporting 
 91.14  standards department. 
 91.15     Sec. 9.  Minnesota Statutes 1998, section 123B.86, 
 91.16  subdivision 1, is amended to read: 
 91.17     Subdivision 1.  [GENERAL PROVISIONS.] A district shall 
 91.18  provide equal transportation within the district for all school 
 91.19  children to any school when transportation is deemed necessary 
 91.20  by the school board because of distance or traffic condition in 
 91.21  like manner and form as provided in sections 123B.88 and 124.223 
 91.22  123B.92, when applicable. 
 91.23     Sec. 10.  Minnesota Statutes 1998, section 123B.88, 
 91.24  subdivision 3, is amended to read: 
 91.25     Subd. 3.  [TRANSPORTATION SERVICES CONTRACTS.] The board 
 91.26  may contract for the furnishing of authorized transportation 
 91.27  under rules established by the commissioner section 123B.52, and 
 91.28  may purchase gasoline and furnish same to a contract carrier for 
 91.29  use in the performance of a contract with the school district 
 91.30  for transportation of school children to and from school. 
 91.31     Sec. 11.  Minnesota Statutes 1998, section 124D.081, 
 91.32  subdivision 6, is amended to read: 
 91.33     Subd. 6.  [PREPAREDNESS REVENUE.] (a) A qualifying school 
 91.34  district is eligible for first-grade preparedness revenue equal 
 91.35  to the basic formula allowance for that year times the number of 
 91.36  children five years of age or older enrolled in a kindergarten 
 92.1   program at the site on October 1 of the previous year times .53. 
 92.2      (b) This revenue must supplement and not replace 
 92.3   compensatory revenue that the district uses for the same or 
 92.4   similar purposes under chapters 120B, 123A, 123B, 124D, 126C, 
 92.5   and 127A. 
 92.6      (c) A pupil enrolled in the first grade preparedness 
 92.7   program at a qualifying school site is eligible for 
 92.8   transportation under section 123B.88, subdivision 1.  
 92.9      (d) First grade preparedness revenue paid to a charter 
 92.10  school for which a school district is providing transportation 
 92.11  according to section 124D.10, subdivision 16, shall be decreased 
 92.12  by an amount equal to the product of $170 the formula allowance 
 92.13  according to section 126C.10, subdivision 2, times .0485 times 
 92.14  the pupil units calculated according to paragraph (a).  This 
 92.15  amount shall be paid to the school district for transportation 
 92.16  costs.  
 92.17     Sec. 12.  Minnesota Statutes 1999 Supplement, section 
 92.18  124D.10, subdivision 3, is amended to read: 
 92.19     Subd. 3.  [SPONSOR.] A school board,; intermediate school 
 92.20  district school board,; education districts district organized 
 92.21  under sections 123A.15 to 123A.19,; charitable organization 
 92.22  under section 501(c)(3) of the Internal Revenue Code of 1986 
 92.23  that is a member of the Minnesota council of nonprofits, 
 92.24  registered with the attorney general's office, and reports an 
 92.25  end-of-year fund balance of at least $1,000,000; Minnesota 
 92.26  private college, that grants two- or four-year degrees and is 
 92.27  registered with the higher education services office under 
 92.28  chapter 136A; community college, state university, or technical 
 92.29  college, governed by the board of trustees of the Minnesota 
 92.30  state colleges and universities; or the University of Minnesota 
 92.31  may sponsor one or more charter schools. 
 92.32     <b>EFFECTIVE DATE:</b>  This section is effective the day 
 92.33  following final enactment. 
 92.34     Sec. 13.  Minnesota Statutes 1999 Supplement, section 
 92.35  124D.10, subdivision 4, is amended to read: 
 92.36     Subd. 4.  [FORMATION OF SCHOOL.] (a) A sponsor may 
 93.1   authorize one or more licensed teachers under section 122A.18, 
 93.2   subdivision 1, to operate a charter school subject to approval 
 93.3   by the commissioner.  A school board or a board or designee of a 
 93.4   higher education institution must vote on charter school 
 93.5   application for sponsorship no later than 90 days after 
 93.6   receiving the application.  After 90 days, the applicant may 
 93.7   apply to the commissioner.  If a school board or a board or 
 93.8   designee of a higher education institution elects not to sponsor 
 93.9   a charter school, the applicant may appeal the board's decision 
 93.10  of the school board or higher education institution board or 
 93.11  designee to the commissioner.  If the commissioner authorizes 
 93.12  the school, the commissioner must sponsor the school according 
 93.13  to this section.  The school must be organized and operated as a 
 93.14  cooperative under chapter 308A or nonprofit corporation under 
 93.15  chapter 317A.  
 93.16     (b) Before the operators may form and operate a school, the 
 93.17  sponsor must file an affidavit with the commissioner stating its 
 93.18  intent to authorize a charter school.  The affidavit must state 
 93.19  the terms and conditions under which the sponsor would authorize 
 93.20  a charter school.  The charter school developers must submit the 
 93.21  charter school proposal and affidavit to the commissioner 
 93.22  quarterly on dates the commissioner determines and announces in 
 93.23  advance.  The commissioner must approve or disapprove the 
 93.24  sponsor's proposed authorization within 60 days of receipt of 
 93.25  receiving the affidavit.  Failure to obtain commissioner 
 93.26  approval precludes a sponsor from authorizing the charter school 
 93.27  that was the subject of the affidavit.  The commissioner shall 
 93.28  organize and facilitate an orderly review of charter school 
 93.29  proposals.  The commissioner may appoint a review committee to 
 93.30  assist in the review process.  The committee may review 
 93.31  applications and participate in interviews with applicants.  The 
 93.32  committee's role shall be solely advisory.  The commissioner 
 93.33  shall complete the review and decide to grant or not grant a new 
 93.34  charter within 60 days of receiving the application.  
 93.35     (c) The operators authorized to organize and operate a 
 93.36  school must hold an election for members of the school's board 
 94.1   of directors in a timely manner after the school is operating.  
 94.2   Any staff members who are employed at the school, including 
 94.3   teachers providing instruction under a contract with a 
 94.4   cooperative, and all parents of children enrolled in the school 
 94.5   may participate in the election.  Licensed teachers employed at 
 94.6   the school, including teachers providing instruction under a 
 94.7   contract with a cooperative, must be a majority of the members 
 94.8   of the board of directors, unless the commissioner waives the 
 94.9   requirement for the school.  A provisional board may operate 
 94.10  before the election of the school's board of directors.  Board 
 94.11  of director meetings must comply with section 471.705. 
 94.12     (d) The granting or renewal of a charter by a sponsoring 
 94.13  entity must not be conditioned upon the bargaining unit status 
 94.14  of the employees of the school.  
 94.15     <b>EFFECTIVE DATE:</b>  This section is effective the day 
 94.16  following final enactment. 
 94.17     Sec. 14.  Minnesota Statutes 1999 Supplement, section 
 94.18  124D.10, subdivision 6, is amended to read: 
 94.19     Subd. 6.  [CONTRACT.] The sponsor's authorization for a 
 94.20  charter school must be in the form of a written contract signed 
 94.21  by the sponsor and the board of directors of the charter 
 94.22  school.  The contract must be completed within 90 days of the 
 94.23  commissioner's approval of the sponsor's proposed 
 94.24  authorization.  The contract for a charter school must be in 
 94.25  writing and contain at least the following: 
 94.26     (1) a description of a program that carries out one or more 
 94.27  of the purposes in subdivision 1; 
 94.28     (2) specific outcomes pupils are to achieve under 
 94.29  subdivision 10; 
 94.30     (3) admission policies and procedures; 
 94.31     (4) management and administration of the school; 
 94.32     (5) requirements and procedures for program and financial 
 94.33  audits; 
 94.34     (6) how the school will comply with subdivisions 8, 13, 16, 
 94.35  and 23; 
 94.36     (7) assumption of liability by the charter school; 
 95.1      (8) types and amounts of insurance coverage to be obtained 
 95.2   by the charter school; 
 95.3      (9) the term of the contract, which may be up to three 
 95.4   years for the first term and may be renewed for up to five years 
 95.5   for subsequent terms if the sponsor determines that the charter 
 95.6   school board of directors and operators have substantially 
 95.7   complied with the contract terms; and 
 95.8      (10) if the board of directors or the operators of the 
 95.9   charter school provide special instruction and services for 
 95.10  children with a disability under sections 125A.03 to 125A.24, 
 95.11  and 125A.65, a description of the financial parameters within 
 95.12  which the charter school will operate to provide the special 
 95.13  instruction and services to children with a disability. 
 95.14     <b>EFFECTIVE DATE:</b>  This section is effective the day 
 95.15  following final enactment. 
 95.16     Sec. 15.  Minnesota Statutes 1999 Supplement, section 
 95.17  124D.10, subdivision 8, is amended to read: 
 95.18     Subd. 8.  [STATE AND LOCAL REQUIREMENTS.] (a) A charter 
 95.19  school shall meet all applicable state and local health and 
 95.20  safety requirements. 
 95.21     (b) A school sponsored by a school board may be located in 
 95.22  any district, unless the school board of the district of the 
 95.23  proposed location disapproves by written resolution.  If such a 
 95.24  board denies a request to locate within its boundaries a charter 
 95.25  school sponsored by another school board, the sponsoring school 
 95.26  board may appeal to the commissioner.  If the commissioner 
 95.27  authorizes the school, the commissioner must sponsor the school. 
 95.28     (c) A charter school must be nonsectarian in its programs, 
 95.29  admission policies, employment practices, and all other 
 95.30  operations.  A sponsor may not authorize a charter school or 
 95.31  program that is affiliated with a nonpublic sectarian school or 
 95.32  a religious institution. 
 95.33     (d) Charter schools must not be used as a method of 
 95.34  providing education or generating revenue for students who are 
 95.35  being home-schooled. 
 95.36     (e) The primary focus of a charter school must be to 
 96.1   provide a comprehensive program of instruction for at least one 
 96.2   grade or age group from five through 18 years of age.  
 96.3   Instruction may be provided to people younger than five years 
 96.4   and older than 18 years of age. 
 96.5      (f) A charter school may not charge tuition. 
 96.6      (g) A charter school is subject to and must comply with 
 96.7   chapter 363 and section 121A.04. 
 96.8      (h) A charter school is subject to and must comply with The 
 96.9   Pupil Fair Dismissal Act, sections 121A.40 to 121A.56, and the 
 96.10  Minnesota Public School Fee law, sections 123B.34 to 123B.39. 
 96.11     (i) A charter school is subject to the same financial 
 96.12  audits, audit procedures, and audit requirements as a district.  
 96.13  The audit must be consistent comply with the requirements of 
 96.14  sections 123B.75 to 123B.83, except to the extent deviations are 
 96.15  necessary because of the program at the school.  The department 
 96.16  of children, families, and learning, state auditor, or 
 96.17  legislative auditor may conduct financial, program, or 
 96.18  compliance audits.  A charter school determined to be in 
 96.19  statutory operating debt under sections 123B.81 to 123B.83 must 
 96.20  submit a plan under section 123B.81, subdivision 4. 
 96.21     (j) A charter school is a district for the purposes of tort 
 96.22  liability under chapter 466. 
 96.23     <b>EFFECTIVE DATE:</b>  This section is effective the day 
 96.24  following final enactment. 
 96.25     Sec. 16.  Minnesota Statutes 1999 Supplement, section 
 96.26  124D.10, subdivision 11, is amended to read: 
 96.27     Subd. 11.  [EMPLOYMENT AND OTHER OPERATING MATTERS.] A 
 96.28  charter school must employ or contract with necessary teachers, 
 96.29  as defined by section 122A.15, subdivision 1, who hold valid 
 96.30  licenses to perform the particular service for which they are 
 96.31  employed in the school.  The charter school's state aid may be 
 96.32  reduced under section 127A.42 if the school employs a teacher 
 96.33  who does not hold a valid teaching license or permit in a public 
 96.34  school or is not otherwise approved by the board of teaching.  
 96.35  The school may employ necessary employees who are not required 
 96.36  to hold teaching licenses to perform duties other than teaching 
 97.1   and may contract for other services.  The school may discharge 
 97.2   teachers and nonlicensed employees.  A person, without holding a 
 97.3   valid administrator's license, may perform administrative, 
 97.4   supervisory, or instructional leadership duties. 
 97.5      The board of directors also shall decide matters related to 
 97.6   the operation of the school, including budgeting, curriculum and 
 97.7   operating procedures.  
 97.8      <b>EFFECTIVE DATE:</b>  This section is effective the day 
 97.9   following final enactment. 
 97.10     Sec. 17.  Minnesota Statutes 1999 Supplement, section 
 97.11  124D.10, subdivision 14, is amended to read: 
 97.12     Subd. 14.  [ANNUAL PUBLIC REPORTS.] A charter school must 
 97.13  report at least annually to its sponsor and the commissioner the 
 97.14  information required by the sponsor or the commissioner.  The 
 97.15  reports are public data under chapter 13.  
 97.16     Sec. 18.  Minnesota Statutes 1999 Supplement, section 
 97.17  124D.10, subdivision 15, is amended to read: 
 97.18     Subd. 15.  [REVIEW AND COMMENT.] The department must review 
 97.19  and comment on the evaluation, by the chartering school district 
 97.20  sponsor, of the performance of a charter school before the 
 97.21  charter school's contract is renewed.  A sponsor shall monitor 
 97.22  and evaluate the fiscal and student performance of the school, 
 97.23  and may for this purpose annually assess the school up to $10 
 97.24  per student up to a maximum of $3,500.  The information from for 
 97.25  the review and comment shall be reported by the sponsor to the 
 97.26  commissioner of children, families, and learning in a timely 
 97.27  manner.  Periodically, the commissioner shall report trends or 
 97.28  suggestions based on the evaluation of charter school contracts 
 97.29  to the education committees of the state legislature.  
 97.30     <b>EFFECTIVE DATE:</b>  This section is effective the day 
 97.31  following final enactment. 
 97.32     Sec. 19.  Minnesota Statutes 1999 Supplement, section 
 97.33  124D.10, subdivision 23, is amended to read: 
 97.34     Subd. 23.  [CAUSES FOR NONRENEWAL OR TERMINATION OF CHARTER 
 97.35  SCHOOL CONTRACT.] (a) The duration of the contract with a 
 97.36  sponsor must be for the term contained in the contract according 
 98.1   to subdivision 6.  The sponsor may or may not renew a contract 
 98.2   at the end of the term for any ground listed in paragraph (b).  
 98.3   A sponsor may unilaterally terminate a contract during the term 
 98.4   of the contract for any ground listed in paragraph (b).  At 
 98.5   least 60 days before not renewing or terminating a contract, the 
 98.6   sponsor shall notify the board of directors of the charter 
 98.7   school of the proposed action in writing.  The notice shall 
 98.8   state the grounds for the proposed action in reasonable detail 
 98.9   and that the charter school's board of directors may request in 
 98.10  writing an informal hearing before the sponsor within 14 days of 
 98.11  receiving notice of nonrenewal or termination of the contract.  
 98.12  Failure by the board of directors to make a written request for 
 98.13  a hearing within the 14-day period shall be treated as 
 98.14  acquiescence to the proposed action.  Upon receiving a timely 
 98.15  written request for a hearing, the sponsor shall give reasonable 
 98.16  notice to the charter school's board of directors of the hearing 
 98.17  date.  The sponsor shall conduct an informal hearing before 
 98.18  taking final action.  The sponsor shall take final action to 
 98.19  renew or not renew a contract by the last day of classes in the 
 98.20  school year.  If the sponsor is a local board, the school's 
 98.21  board of directors may appeal the sponsor's decision to the 
 98.22  commissioner. 
 98.23     (b) A contract may be terminated or not renewed upon any of 
 98.24  the following grounds: 
 98.25     (1) failure to meet the requirements for pupil performance 
 98.26  contained in the contract; 
 98.27     (2) failure to meet generally accepted standards of fiscal 
 98.28  management; 
 98.29     (3) violations of law; or 
 98.30     (4) other good cause shown. 
 98.31     If a contract is terminated or not renewed, the school must 
 98.32  be dissolved according to the applicable provisions of chapter 
 98.33  308A or 317A, except when the commissioner approves the decision 
 98.34  of a different eligible sponsor to authorize the charter school. 
 98.35     (c) The commissioner, after providing reasonable notice to 
 98.36  the board of directors of a charter school and the existing 
 99.1   sponsor, and after providing an opportunity for a public 
 99.2   hearing, may terminate the existing sponsorial relationship if 
 99.3   the charter school has a history of: 
 99.4      (1) financial mismanagement; or 
 99.5      (2) repeated violations of the law. 
 99.6      <b>EFFECTIVE DATE:</b>  This section is effective the day 
 99.7   following final enactment. 
 99.8      Sec. 20.  Minnesota Statutes 1999 Supplement, section 
 99.9   124D.11, subdivision 4, is amended to read: 
 99.10     Subd. 4.  [BUILDING LEASE AID.] When a charter school finds 
 99.11  it economically advantageous to rent or lease a building or land 
 99.12  for any instructional purposes and it determines that the total 
 99.13  operating capital revenue under section 126C.10, subdivision 13, 
 99.14  is insufficient for this purpose, it may apply to the 
 99.15  commissioner for building lease aid for this purpose.  Criteria 
 99.16  for aid approval and revenue uses shall be as defined for the 
 99.17  building lease levy in section 126C.40, subdivision 1, 
 99.18  paragraphs (a) and (b).  A charter school is eligible for 
 99.19  building lease aid.  The criteria for approving lease 
 99.20  applications under this subdivision must include the: 
 99.21     (1) reasonableness of the price; and 
 99.22     (2) conformity of the lease to state laws and rules. 
 99.23  The proceeds of the lease aid must not be used for custodial or 
 99.24  other maintenance services.  The amount of building lease aid 
 99.25  per pupil unit served for a charter school for any year shall 
 99.26  not exceed the lesser of (a) 90 percent of the approved lease 
 99.27  cost or (b) the product of the pupil units served for the 
 99.28  current school year times $1,500.  Existing charter schools must 
 99.29  apply by January 15 of the fiscal year in which the lease 
 99.30  applies to be considered for this program.  The application must 
 99.31  include the cost of the lease and confirmation that a 
 99.32  certificate of occupancy has been issued for the building.  The 
 99.33  commissioner must act on an application in this section within 
 99.34  30 calendar days of receiving the application. 
 99.35     Sec. 21.  Minnesota Statutes 1999 Supplement, section 
 99.36  124D.11, subdivision 6, is amended to read: 
100.1      Subd. 6.  [OTHER AID, GRANTS, REVENUE.] (a) A charter 
100.2   school is eligible to receive other aids, grants, and revenue 
100.3   according to chapters 120A to 129C, as though it were a district.
100.4      (b) Notwithstanding paragraph (a), a charter school may not 
100.5   receive aid, a grant, or revenue if a levy is required to obtain 
100.6   the money, except as otherwise provided in this section.  
100.7      (c) Federal aid received by the state must be paid to the 
100.8   school, if it qualifies for the aid as though it were a school 
100.9   district. 
100.10     (d) A charter school may receive money from any source for 
100.11  capital facilities needs.  In the year-end report to the 
100.12  commissioner of children, families, and learning, the charter 
100.13  school shall report the total amount of funds received from 
100.14  grants and other outside sources. 
100.15     (e) Notwithstanding paragraph (a) or (b), a charter school 
100.16  is eligible may apply for a grant to receive the aid portion of 
100.17  integration revenue under section 124D.86, subdivision 3, for 
100.18  enrolled students who are residents of a district that is 
100.19  eligible for integration revenue if the enrollment of the pupil 
100.20  in the charter school contributes to desegregation or 
100.21  integration purposes.  The commissioner shall determine grant 
100.22  recipients and may adopt application guidelines.  The grants 
100.23  must be competitively determined and must demonstrate that 
100.24  enrolling pupils in the charter school contributes to 
100.25  desegregation or integration purposes as determined by the 
100.26  commissioner.  If the charter school has elected not to provide 
100.27  transportation under section 124D.10, subdivision 16, the aid 
100.28  shall be reduced by the amount per pupil unit specified for the 
100.29  district where the charter school is located under section 
100.30  123B.92, subdivision 8. 
100.31     <b>EFFECTIVE DATE:</b>  This section is effective the day 
100.32  following final enactment. 
100.33     Sec. 22.  Minnesota Statutes 1998, section 124D.128, 
100.34  subdivision 4, is amended to read: 
100.35     Subd. 4.  [TRANSPORTATION.] A district must report data to 
100.36  the department as required by the department to account for 
101.1   learning year summer transportation expenditures for this 
101.2   program must be included in nonregular transportation according 
101.3   to sections 124.225, subdivision 8; and 124.226, subdivision 4.  
101.4      Sec. 23.  [125B.22] [INTERNET ACCESS FOR STUDENTS.] 
101.5      (a) Recognizing the difference between school libraries, 
101.6   school computer labs, and school media centers, which serve 
101.7   unique educational purposes, and public libraries, which are 
101.8   designed for public inquiry, all computers at a school site with 
101.9   access to the Internet available for student use must be 
101.10  equipped, to the maximum extent permitted under law, to 
101.11  restrict, including by use of available software filtering 
101.12  technology, all student access to material that is reasonably 
101.13  believed to be obscene or child pornography or material harmful 
101.14  to minors under federal or state law. 
101.15     (b) A school site is not required to purchase filtering 
101.16  technology if the school site would incur more than incidental 
101.17  expense in making the purchase. 
101.18     (c) "School site" means an education site as defined in 
101.19  section 123B.04, subdivision 1, or charter school under section 
101.20  124D.10. 
101.21     Sec. 24.  [134.77] [INTERNET ACCESS FOR CHILDREN.] 
101.22     (a) Recognizing the difference between public libraries, 
101.23  which are designed for public inquiry, and school libraries, 
101.24  school computer labs, and school media centers, which serve 
101.25  unique educational purposes, all public library computers with 
101.26  access to the Internet available for use by children under the 
101.27  age of 17 must be equipped, to the maximum extent permitted 
101.28  under law, to restrict, including by use of available software 
101.29  filtering technology, all access by children to material that is 
101.30  reasonably believed to be obscene or child pornography or 
101.31  material harmful to minors under federal or state law. 
101.32     (b) A public library is not required to purchase filtering 
101.33  technology if the public library would incur more than 
101.34  incidental expense in making the purchase. 
101.35     (c) This section does not apply to the libraries of 
101.36  post-secondary institutions. 
102.1      Sec. 25.  Minnesota Statutes 1999 Supplement, section 
102.2   260C.143, subdivision 4, is amended to read: 
102.3      Subd. 4.  [TRUANT.] When a peace officer or probation 
102.4   officer has probable cause to believe that a child is currently 
102.5   under age 16 and absent from school without lawful excuse, 
102.6   consistent with section 120A.22, subdivisions 5 and 8, the 
102.7   officer may: 
102.8      (1) transport the child to the child's home and deliver the 
102.9   child to the custody of the child's parent or guardian,; 
102.10     (2) transport the child to the child's school of enrollment 
102.11  and deliver the child to the custody of a school superintendent 
102.12  or teacher or; 
102.13     (3) transport the child to a truancy service center under 
102.14  section 260A.04, subdivision 3; or 
102.15     (4) transport the child from the child's home to the 
102.16  child's school of enrollment or to a truancy service center. 
102.17     Sec. 26.  Minnesota Statutes 1998, section 471.15, is 
102.18  amended to read: 
102.19     471.15 [RECREATIONAL FACILITIES BY MUNICIPALITY, VETERANS; 
102.20  BONDS.] 
102.21     (a) Any home rule charter or statutory city or any town, 
102.22  county, school district, or any board thereof, or any 
102.23  incorporated post of the American Legion or any other 
102.24  incorporated veterans' organization, may expend not to exceed 
102.25  $800 in any one year, for the purchase of awards and trophies 
102.26  and may operate a program of public recreation and playgrounds; 
102.27  acquire, equip, and maintain land, buildings, or other 
102.28  recreational facilities, including an outdoor or indoor swimming 
102.29  pool; and expend funds for the operation of such program 
102.30  pursuant to the provisions of sections 471.15 to 471.19.  The 
102.31  city, town, county or school district may issue bonds pursuant 
102.32  to chapter 475 for the purpose of carrying out the powers 
102.33  granted by this section.  The city, town, county or school 
102.34  district may operate the program and facilities directly or 
102.35  establish one or more recreation boards to operate all or 
102.36  various parts of them. 
103.1      (b) A home rule charter or statutory city, a county, or a 
103.2   town may expend funds for the purpose of supporting student 
103.3   academic or extracurricular activities sponsored by the local 
103.4   school district. 
103.5      Sec. 27.  Laws 1999, chapter 241, article 5, section 18, 
103.6   subdivision 5, is amended to read: 
103.7      Subd. 5.  [CHARTER SCHOOL BUILDING LEASE AID.] For building 
103.8   lease aid according to Minnesota Statutes, section 124D.11, 
103.9   subdivision 4: 
103.10       $2,992,000 $ 6,499,000     .....     2000
103.11       $3,616,000 $10,864,000     .....     2001
103.12     The 2000 appropriation includes $194,000 for 1999 and 
103.13  $2,798,000 $6,305,000 for 2000. 
103.14     The 2001 appropriation includes $311,000 $700,000 for 2000 
103.15  and $3,305,000 $10,164,000 for 2001.  
103.16     <b>EFFECTIVE DATE:</b>  This section is effective the day 
103.17  following final enactment. 
103.18     Sec. 28.  Laws 1999, chapter 241, article 5, section 18, 
103.19  subdivision 6, is amended to read: 
103.20     Subd. 6.  [CHARTER SCHOOL START-UP GRANTS.] For charter 
103.21  school start-up cost aid under Minnesota Statutes, section 
103.22  124D.11: 
103.23       $1,789,000 $1,955,000   .....     2000 
103.24       $1,876,000 $2,926,000   .....     2001 
103.25     The 2000 appropriation includes $100,000 for 1999 and 
103.26  $1,689,000 $1,855,000 for 2000.  
103.27     The 2001 appropriation includes $188,000 $206,000 for 
103.28  1999 2000 and $1,688,000 $2,720,000 for 2001. 
103.29     Any balance in the first year does not cancel but is 
103.30  available in the second year.  This appropriation may also be 
103.31  used for grants to convert existing schools into charter schools.
103.32     <b>EFFECTIVE DATE:</b>  This section is effective the day 
103.33  following final enactment. 
103.34     Sec. 29.  [RESIDENTIAL ACADEMIES.] 
103.35     The commissioner may not withdraw or reallocate funds from 
103.36  a recipient who has been awarded a grant under Laws 1998, 
104.1   chapter 398, article 5, section 46, and has received approval 
104.2   for updated capital and operating budget plans after June 1, 
104.3   1999, without the prior consent of the legislature. 
104.4      <b>EFFECTIVE DATE:</b>  This section is effective the day 
104.5   following final enactment. 
104.6      Sec. 30.  [TEACHER PREPARATION PROGRAMS.] 
104.7      (a) The legislature intends that the implementation and 
104.8   enforcement of board of teaching rules relating to institution 
104.9   and teacher preparation program approval respect the rights of 
104.10  post-secondary faculty to teach in a manner the faculty deems 
104.11  most appropriate for student achievement, and that the program 
104.12  approval process involve the least amount of time and paperwork 
104.13  necessary to meet these rules. 
104.14     (b) The state board of teaching must consult with 
104.15  representatives of faculty and administrators from Minnesota 
104.16  post-secondary institutions that have teacher preparation 
104.17  programs.  The state board of teaching must report to the 
104.18  government operations and education committees of the 
104.19  legislature by January 15, 2001, on these institutions' opinions 
104.20  on the rules implemented or enforced under paragraph (a). 
104.21     Sec. 31.  [APPROPRIATION.] 
104.22     Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
104.23  LEARNING.] The sum indicated in this section is appropriated 
104.24  from the general fund to the commissioner of children, families, 
104.25  and learning for the fiscal year designated. 
104.26     Subd. 2.  [RECRUITMENT OF EXCELLENT TEACHERS; LOAN 
104.27  FORGIVENESS PROGRAM.] For a loan forgiveness program to help 
104.28  recruit excellent teachers under Minnesota Statutes, section 
104.29  122A.65: 
104.30       $500,000     .....     2001
104.31     Subd. 3.  [HEALTH CARE PLAN SUMMARY.] For a study to 
104.32  examine health care for prekindergarten through grade 12 public 
104.33  school employees: 
104.34       $200,000     .....     2001  
104.35     The commissioner of children, families, and learning in 
104.36  consultation with the commissioner of employee relations, must 
105.1   conduct a study to address issues of adverse selection, cost 
105.2   containment, consumer choice, and retiree health care and 
105.3   consider options for dealing with other employee concerns. 
105.4                              ARTICLE 7 
105.5     KINDERGARTEN THROUGH GRADE 12 EDUCATION: PROFILE OF LEARNING
105.6               PART 1:  HIGH STANDARDS FOR ALL STUDENTS 
105.7      Section 1.  [120B.015] [HIGH STANDARDS FOR ALL STUDENTS.] 
105.8      All school districts must implement high standards for all 
105.9   students according to part 2, sections 3 to 24, the profile of 
105.10  learning, or part 3, sections 25 to 62, the North Star Standard, 
105.11  or section 120A.22. 
105.12     Sec. 2.  [EFFECTIVE DATE.] 
105.13     Section 1 is effective the day following final enactment. 
105.14                    PART 2:  PROFILE OF LEARNING
105.15     Sec. 3.  [MORATORIUM; MORATORIUM REPEAL.] 
105.16     (a) Minnesota Statutes, sections 120B.02 and 120B.03, and 
105.17  other law and rules governing the state's profile of learning, 
105.18  including preparatory content standards and state high school 
105.19  graduation standards related to the profile of learning, are not 
105.20  mandated by the state for kindergarten through grade 12 students.
105.21     (b) Paragraph (a) shall remain in effect until: 
105.22     (1) the commissioner certifies to the legislature that, 
105.23  under section 4, the recommendations in the commissioner's plan 
105.24  have been addressed and districts' technology needs for 
105.25  reporting have been fully met; and 
105.26     (2) after the legislature receives the certification under 
105.27  clause (1), a law is enacted specifically repealing paragraph 
105.28  (a). 
105.29     (c) During the period of the moratorium, school districts 
105.30  may develop and implement a system of high academic standards 
105.31  for students.  Districts may disseminate to the commissioner 
105.32  information about the district's system of high academic 
105.33  standards for students.  The commissioner, at the request of a 
105.34  school district, must disseminate to that district the 
105.35  information the commissioner receives about districts' systems 
105.36  of high academic standards for students that are developed and 
106.1   implemented under this paragraph. 
106.2      Sec. 4.  [REPORT; IMPLEMENTATION PLAN; TECHNOLOGY NEEDS; 
106.3   CERTIFICATION.] 
106.4      Subdivision 1.  [REPORT ON CONTRACTORS' RECOMMENDATIONS; 
106.5   IMPLEMENTATION PLAN.] After two nationally recognized 
106.6   independent organizations under contract, including the American 
106.7   Federation of Teachers, conduct an external review of the 
106.8   state's standards and related procedures, policies, assessments, 
106.9   and the department of children, families, and learning's 
106.10  implementation plan consistent with section 5, the commissioner 
106.11  must analyze the contractors' recommendations and report to the 
106.12  legislature by December 15, 2000.  The report must contain the 
106.13  contractors' recommendations, the commissioner's analysis of the 
106.14  contractors' recommendations, and a plan the commissioner 
106.15  develops in response to those recommendations for implementing 
106.16  the recommendations the commissioner considers appropriate.  The 
106.17  plan must indicate how the commissioner proposes to alter 
106.18  graduation standards under the profile of learning to meet the 
106.19  educational needs of all students.  The plan must separately 
106.20  indicate which of the contractors' recommendations that the 
106.21  commissioner considers appropriate: 
106.22     (1) can be effected through administrative actions; 
106.23     (2) require changes in rule; and 
106.24     (3) require changes in law. 
106.25  The commissioner may implement the recommendations under clause 
106.26  (1), but must not begin to adopt rules to implement the 
106.27  recommendations under clause (2) until specifically authorized 
106.28  by law.  The commissioner is prohibited from implementing the 
106.29  recommendations under clause (3). 
106.30     Subd. 2.  [TECHNOLOGY NEEDS.] The commissioner must work 
106.31  with school districts to ensure that all districts have 
106.32  sufficient ongoing access to computers and needed software at 
106.33  minimal cost, and staff training and support to permit: 
106.34     (1) efficient daily classroom recordkeeping; 
106.35     (2) consistent communications between schools and between 
106.36  school districts; and 
107.1      (3) compatible local and state accountability reporting. 
107.2      Subd. 3.  [ANNUAL REPORTS.] The commissioner annually by 
107.3   December 15 must report to the legislature on the progress made 
107.4   in implementing the commissioner's plan under subdivision 1 and 
107.5   meeting districts' technology needs for reporting under 
107.6   subdivision 2.  The commissioner must continue to present an 
107.7   annual progress report until the conditions under section 3, 
107.8   paragraph (b), are met. 
107.9      Sec. 5.  [CONTENT OF EXTERNAL REVIEW.] 
107.10     (a) The contractors under section 4 must examine and report 
107.11  on the quality of the state's standards and assessments as an 
107.12  integrated educational system. 
107.13     (b) The contractors' report must include: 
107.14     (1) an analysis of the link between the state's standards 
107.15  and assessments intended to hold schools accountable for 
107.16  educational achievement; 
107.17     (2) meaningful comparisons and specific recommendations for 
107.18  revision by benchmarking the state's standards and assessments 
107.19  against the best existing models; and 
107.20     (3) diagnostic information, including the strengths and 
107.21  weaknesses of the state's academic standards. 
107.22     (c) For benchmarking purposes, the contractors must 
107.23  indicate: 
107.24     (1) whether the standards are clear, specific, and 
107.25  measurable, and whether they are easily understood by teachers, 
107.26  parents, and students; 
107.27     (2) how Minnesota's standards in English, mathematics, 
107.28  science, and social studies compare to objective exemplary 
107.29  standards; what important elements found in the objective 
107.30  exemplary standards are not found in Minnesota's standards; and 
107.31  what is most important for students to learn; 
107.32     (3) how well state assessments measure the standards, 
107.33  whether the assessments measure the core academic standards and, 
107.34  if they do not, which standards are not adequately measured; 
107.35     (4) whether the state assessments are challenging, or more 
107.36  demanding or less demanding than the standards imply, and 
108.1   whether the assessments are set at an appropriate level of 
108.2   difficulty for a particular grade level; and 
108.3      (5) how proficiency is defined on the state's assessments, 
108.4   whether this definition is comparable to the definition of 
108.5   proficiency, and what changes can strengthen the quality and 
108.6   alignment of the state's standards and assessments. 
108.7      Sec. 6.  Minnesota Statutes 1998, section 120A.41, is 
108.8   amended to read: 
108.9      120A.41 [LENGTH OF SCHOOL YEAR; DAYS OF INSTRUCTION.] 
108.10     A school board's annual school calendar must include at 
108.11  least three additional days of student instruction or staff 
108.12  development training related to implementing section 18 beyond 
108.13  the number of days of student instruction the board formally 
108.14  adopted as its school calendar at the beginning of the 1996-1997 
108.15  school year. 
108.16     Sec. 7.  Minnesota Statutes 1999 Supplement, section 
108.17  120B.02, is amended to read: 
108.18     120B.02 [RESULTS-ORIENTED GRADUATION RULE; BASIC SKILLS 
108.19  REQUIREMENTS; PROFILE OF LEARNING.] 
108.20     (a) The legislature is committed to establishing a 
108.21  rigorous, results-oriented graduation rule for Minnesota's 
108.22  public school students.  To that end, the commissioner shall use 
108.23  its rulemaking authority under section 127A.05, subdivision 4, 
108.24  to adopt a statewide, results-oriented graduation rule to be 
108.25  implemented starting with students beginning ninth grade in the 
108.26  1996-1997 school year.  The commissioner shall not prescribe in 
108.27  rule or otherwise the delivery system or form of instruction 
108.28  that local sites must use to meet the requirements contained in 
108.29  this rule. 
108.30     (b) To successfully accomplish paragraph (a), the 
108.31  commissioner shall set in rule high academic standards for all 
108.32  students.  The standards must contain the foundational skills in 
108.33  the three core curricular areas of reading, writing, and 
108.34  mathematics while meeting requirements for high school 
108.35  graduation.  The standards must also provide an opportunity for 
108.36  students to excel by meeting higher academic standards through a 
109.1   profile of learning that uses curricular requirements to allow 
109.2   students to expand their knowledge and skills beyond the 
109.3   foundational skills.  All commissioner actions regarding the 
109.4   rule must be premised on the following:  
109.5      (1) the rule is intended to raise academic expectations for 
109.6   students, teachers, and schools; 
109.7      (2) any state action regarding the rule must evidence 
109.8   consideration of school district autonomy; and 
109.9      (3) the department of children, families, and learning, 
109.10  with the assistance of school districts, must make available 
109.11  information about all state initiatives related to the rule to 
109.12  students and parents, teachers, and the general public in a 
109.13  timely format that is appropriate, comprehensive, and readily 
109.14  understandable.; 
109.15     (4)(i) student work completed in the six required learning 
109.16  areas of learning area 1, English language and grammar; learning 
109.17  area 2, composition and speech; learning area 3, mathematics; 
109.18  learning area 4, science; learning area 5, social studies; and 
109.19  learning area 6, literature and the arts; means high school 
109.20  students in grades 9 to 12 must at least complete 12 content 
109.21  standards that include six state-required content standards and 
109.22  six elective content standards, (ii) middle school students in 
109.23  grades 6 to 8 must at least complete one content standard in 
109.24  each of the six required learning areas, (iii) intermediate 
109.25  school students in grades 4 and 5 must complete a content 
109.26  standard in learning areas 1, 2, and 3 and two elective content 
109.27  standards, and (iv) primary school students in kindergarten to 
109.28  grade 3 must focus on learning areas 1, 2, and 3 but are not 
109.29  required to complete content standards in any learning areas; 
109.30     (5) districts, at their election, may offer students a 
109.31  seventh learning area of world language from which students may 
109.32  satisfy an elective content standard requirement; and 
109.33     (6) a student who is participating in a rigorous course of 
109.34  study, including an advanced placement or international 
109.35  baccalaureate program, talented youth mathematics project, a 
109.36  concurrent enrollment course where a student takes a college 
110.1   course in a secondary school setting, or a post-secondary 
110.2   enrollment options course or program under section 124D.09, is 
110.3   not required to complete other requirements of any content 
110.4   standards corresponding to the student's rigorous course of 
110.5   study. 
110.6      (c) Districts must ensure that: 
110.7      (1) district curriculum and corresponding instruction 
110.8   incorporate content standards in courses offered to students; 
110.9      (2) assessment of student academic achievement on a content 
110.10  standard is integrated into the grade the student receives for 
110.11  the quality of work a student completes for a course or program; 
110.12  and 
110.13     (3) all required and elective content standards contain 
110.14  elements of decision making and inquiry. 
110.15     (d) For purposes of adopting the rule, the commissioner, in 
110.16  consultation with the department, recognized psychometric 
110.17  experts in assessment, and other interested and knowledgeable 
110.18  educators, using the most current version of professional 
110.19  standards for educational testing, shall evaluate the 
110.20  alternative approaches to assessment.  
110.21     (d) (e) The content of the graduation rule must 
110.22  differentiate between minimum competencies reflected in the 
110.23  basic requirements assessment and rigorous profile of learning 
110.24  standards.  When fully implemented, the requirements for high 
110.25  school graduation in Minnesota must include both basic 
110.26  requirements and the required profile of learning.  The profile 
110.27  of learning must measure student performance academic 
110.28  achievement using performance-based assessments based on student 
110.29  academic achievement compiled over time that integrate higher 
110.30  academic standards, higher order thinking skills, and 
110.31  application of knowledge from a variety of content areas.  The 
110.32  profile of learning shall include a broad range of academic 
110.33  experience and accomplishment necessary to achieve the goal of 
110.34  preparing students to function effectively as purposeful 
110.35  thinkers, effective communicators, self-directed learners, 
110.36  productive group participants, and responsible citizens.  The 
111.1   commissioner shall develop and disseminate to school districts a 
111.2   uniform method for reporting student performance academic 
111.3   achievement on the profile of learning.  Districts may use 
111.4   outstanding work from each grade level as exemplars for 
111.5   measuring student work in that grade. 
111.6      (e) (f) The commissioner shall periodically review and 
111.7   report on the assessment process and student achievement with 
111.8   the expectation of raising the standards and expanding high 
111.9   school graduation requirements. 
111.10     (f) (g) The commissioner shall report in writing to the 
111.11  legislature annually by January 15 on its progress in developing 
111.12  and implementing the graduation requirements according to the 
111.13  requirements of this subdivision and section 120B.10 until such 
111.14  time as all the graduation requirements are implemented. 
111.15     (h) Basic skills and profile of learning requirements must 
111.16  be developed and implemented independently of any national 
111.17  education goals established under the 1994 Goals 2000:  Educate 
111.18  America Act. 
111.19     Sec. 8.  [120B.0215] [VARIATIONS FOR STUDENTS WITH 
111.20  INDIVIDUAL EDUCATION PLANS OR SECTION 504 ACCOMMODATION PLANS.] 
111.21     Subdivision 1.  [DETERMINATION OF REQUIREMENTS.] (a) A 
111.22  student in kindergarten through grade 8 with an individual 
111.23  education plan or section 504 accommodation plan shall have all 
111.24  content standards considered by the student's individual 
111.25  education plan team or section 504 accommodation plan team for 
111.26  inclusion in the student's individual education plan or section 
111.27  504 accommodation plan under subdivision 2. 
111.28     (b) A student's individual education plan team or section 
111.29  504 accommodation plan team must consider the state's graduation 
111.30  requirements for inclusion in the student's individual education 
111.31  plan or section 504 accommodation plan when a student with a 
111.32  disability is 14 years old or registers for grade 9, whichever 
111.33  is first.  An individual education plan team also must consider 
111.34  the student's transition plan when determining which of the 
111.35  required and elective content standards to include in the 
111.36  student's individual education plan. 
112.1      Subd. 2.  [INDIVIDUALIZED PLANS.] (a) For a student in 
112.2   kindergarten through grade 8 with an individual education plan 
112.3   or section 504 accommodation plan, the student's individual 
112.4   education plan team or section 504 accommodation plan team may 
112.5   modify preparatory content standards for the student in the 
112.6   individual education plan or section 504 accommodation plan.  
112.7   The team must determine the specifications of a content standard 
112.8   the student will pursue under the selected modification.  If the 
112.9   team determines that the student is exempt from one or more of 
112.10  the content standards, it must explain the exemption in the 
112.11  student's individual education plan or section 504 accommodation 
112.12  plan.  When the team adopts an exempt status for a content 
112.13  standard, it must determine whether or not a different standard 
112.14  or individual education plan goal specific to the learning area 
112.15  is appropriate and include that goal in the student's plan. 
112.16     (b) For a high school student with an individual education 
112.17  plan or section 504 accommodation plan, the student's individual 
112.18  education plan team or section 504 accommodation plan team must: 
112.19     (1) determine whether the student will pursue the content 
112.20  standards without modification; 
112.21     (2) determine whether one or more of the required content 
112.22  standards will be modified to an individual level; 
112.23     (3) define the elective content standards that the student 
112.24  also will pursue and whether, for each elective, the student 
112.25  will pursue the content standard without modification or have 
112.26  the content standard modified to an individual level; or 
112.27     (4) determine whether the student is exempt from one or 
112.28  more of the state's graduation requirements. 
112.29  When the team adopts exempt status for a content standard, it 
112.30  must determine whether or not a different standard or individual 
112.31  education plan goal specific to the learning area is appropriate 
112.32  and include that goal in the student's plan. 
112.33     (c) A student's individual education plan team or section 
112.34  504 accommodation plan team must determine the specifications of 
112.35  a preparatory or high school content standard the student will 
112.36  pursue when the team modifies a content standard.  When a 
113.1   content standard is modified, the student's individual education 
113.2   plan team or section 504 accommodation plan team must determine 
113.3   the appropriate assessment of the modified content standard. 
113.4      Sec. 9.  [120B.0216] [ENGLISH PROFICIENCY; INDIVIDUAL 
113.5   GRADUATION PLANS.] 
113.6      A district must establish and maintain procedures giving 
113.7   students the opportunity to complete both preparatory courses 
113.8   and high school content standards.  Graduation requirements for 
113.9   a student must not be modified unless section 120B.0215 applies 
113.10  or unless modified in an individual graduation plan developed 
113.11  for a student with limited English proficiency and annually 
113.12  reviewed by a team that includes school advisory staff 
113.13  designated by the district, the student's teachers, the 
113.14  student's parent or guardian, and the student.  A district must 
113.15  not modify specifications for standards in learning areas one to 
113.16  six to permit a student to complete a standard in a language 
113.17  other than English. 
113.18     Sec. 10.  [120B.0217] [TESTING AND ASSESSMENT; MEASURING 
113.19  STUDENT PERFORMANCE.] 
113.20     Subdivision 1.  [DISTRICT CRITERION-REFERENCED TESTING AND 
113.21  ASSESSMENT REQUIREMENTS.] (a) The commissioner must develop a 
113.22  state model for local criterion-referenced testing and 
113.23  assessment consistent with this section. 
113.24     (b) A district must: 
113.25     (1) test and assess student performance in preparatory and 
113.26  high school content standards; 
113.27     (2) establish processes by which to transfer as completed 
113.28  (i) those content standards that other Minnesota public school 
113.29  districts verify on transcripts as completed, (ii) the work that 
113.30  post-secondary educational institutions or educational 
113.31  institutions outside the state accept for completing the 
113.32  equivalent of content standards and verify on transcripts as 
113.33  completed, and (iii) a student's opportunities to complete high 
113.34  school content standards through learning the student acquires 
113.35  outside the district's curriculum; and 
113.36     (3) use grading criteria under subdivision 2. 
114.1      Subd. 2.  [GRADING.] The assessment of student achievement 
114.2   under the profile of learning must align with the district's 
114.3   grading system and must be included as part of the student's 
114.4   grade for a subject or course.  
114.5      Sec. 11.  [120B.0218] [NOTICE TO PARENTS AND STUDENTS.] 
114.6      In addition to other applicable notice requirements, the 
114.7   district must notify parents and students in writing about: 
114.8      (1) the content standards taught and assessed in the school 
114.9   curriculum; 
114.10     (2) the procedures for advising the student and the 
114.11  student's parent or guardian about graduation requirements and 
114.12  for accessing these procedures; 
114.13     (3) the procedures by which students may meet graduation 
114.14  requirements with the equivalent of content standards completed 
114.15  outside the district's curriculum; and 
114.16     (4) the district's individual student progress and 
114.17  achievement reporting schedule. 
114.18     Sec. 12.  Minnesota Statutes 1998, section 120B.03, 
114.19  subdivision 1, is amended to read: 
114.20     Subdivision 1.  [DISTRICT IMPLEMENTATION OF THE PROFILE OF 
114.21  LEARNING.] (a) A school district shall implement the profile of 
114.22  learning of the graduation rule under paragraph (b), or (c), or 
114.23  (d). 
114.24     A district may implement the profile of learning under 
114.25  paragraph (c) or (d) only after the commissioner approves the 
114.26  district's request for a waiver and approves the local plan for 
114.27  full implementation. 
114.28     (b) A school district shall implement the profile of 
114.29  learning for the 1998-1999 school year and later.  
114.30     (c) (b) A school district shall implement the profile of 
114.31  learning as follows: 
114.32     (1) for the 1998-1999 first school year after which the 
114.33  moratorium under section 3 is repealed and later, the district 
114.34  shall implement all the required standards in learning areas at 
114.35  the preparatory level and (i) must implement for ninth grade 
114.36  students a minimum of six at least two learning areas under the 
115.1   profile of learning with three from the areas of read, listen, 
115.2   and view English language and grammar; write and speak 
115.3   composition and speech; mathematical 
115.4   applications mathematics; scientific applications and science; 
115.5   and people and cultures; (ii) in addition, may implement for 
115.6   ninth grade students the learning areas of social studies and 
115.7   three from the areas of literature and the arts; inquiry; 
115.8   decision making; resource management; and world language; 
115.9      (2) for the 1999-2000 second school year after which the 
115.10  moratorium under section 3 is repealed and later, the district 
115.11  shall implement for ninth and tenth grade students two other 
115.12  learning areas under clause (1)(i) in addition to those 
115.13  implemented under clause (1) if four learning areas were not 
115.14  completed under clause (1)(i).  The district shall complete the 
115.15  four learning areas of read, listen, and view; write and speak; 
115.16  mathematical applications; scientific applications; and people 
115.17  and cultures if the four areas were not completed in clause 
115.18  (1);, in addition, may implement the learning areas of social 
115.19  studies and the remainder from the areas of literature and the 
115.20  arts; inquiry; decision making; resource management; and world 
115.21  language if the learning areas were not completed under clause 
115.22  (1)(ii); and 
115.23     (3) for the 2000-2001 third school year after which the 
115.24  moratorium under section 3 is repealed and later, the district 
115.25  shall implement for ninth, tenth, and eleventh grade students 
115.26  the two learning areas in the profile of learning that were not 
115.27  implemented under clauses (1) and (2), if applicable, with the 
115.28  expectation that students graduating in the fourth school year 
115.29  after which the moratorium under section 3 is repealed must 
115.30  successfully complete all profile of learning requirements under 
115.31  section 120B.02 in order to graduate. 
115.32     (d) (c) A district shall develop a local plan to implement 
115.33  the profile of learning and have all ten six learning areas 
115.34  fully implemented by the 2001-2002 start of the third school 
115.35  year after which the moratorium under section 3 is repealed with 
115.36  the expectation that students graduating in the fourth school 
116.1   year after which the moratorium under section 3 is repealed must 
116.2   successfully complete all profile of learning requirements under 
116.3   section 120B.02 in order to graduate. 
116.4      (e) (d) A district shall notify the commissioner by July 1, 
116.5   1998 of the first school year preceding the school year in which 
116.6   districts' obligation to begin implementing the profile of 
116.7   learning under paragraph (b), clause (1), arises, as to whether 
116.8   the district will implement the profile of learning under 
116.9   paragraph (b), or (c), or (d). 
116.10     (f) An advisory committee of 11 members is established to 
116.11  advise the governor and commissioner on the implementation of 
116.12  the graduation rule under this section.  The commissioner shall 
116.13  appoint 11 members with representatives from education 
116.14  organizations, business, higher education, parents, and 
116.15  organizations representing communities of color. 
116.16     The committee shall review the implementation of the basic 
116.17  requirements and the profile of learning standards. 
116.18     The commissioner shall provide technical and other 
116.19  assistance to the advisory committee.  The committee expires on 
116.20  December 1, 1998. 
116.21     (e) Consistent with the requirements under section 4, 
116.22  subdivision 2, the commissioner shall convene an advisory group 
116.23  composed of qualified experts and interested stakeholders to 
116.24  recommend recordkeeping practices under the profile of 
116.25  learning.  After reviewing advisory group recommendations, the 
116.26  commissioner must evaluate the software available to implement 
116.27  recordkeeping practices under the profile of learning and 
116.28  certify to all districts and the legislature that the software 
116.29  needed to record and report student academic achievement levels 
116.30  is readily available to all districts at minimal cost by July 1 
116.31  of the first school year preceding the school year in which 
116.32  districts' obligation to begin implementing the profile of 
116.33  learning under paragraph (b), clause (1), arises.  
116.34     (f) To meet the educational accountability and reporting 
116.35  standards under this chapter, and consistent with the 
116.36  requirements under section 4, subdivision 2, the commissioner 
117.1   shall work with school districts to develop and implement a 
117.2   uniform system of measuring and reporting student academic 
117.3   achievement completed as requirements under the profile of 
117.4   learning.  
117.5      Sec. 13.  Minnesota Statutes 1998, section 120B.03, 
117.6   subdivision 3, is amended to read: 
117.7      Subd. 3.  [WAIVER LOCAL PLAN.] In order to receive a 
117.8   waiver, A district must document why the waiver is necessary, 
117.9   how the local plan under subdivision 1, paragraph (c), improves 
117.10  student achievement, and how the profile of learning will be 
117.11  fully implemented for the 2001-2002 students graduating in the 
117.12  fourth school year after which the moratorium is repealed under 
117.13  section 3. 
117.14     Sec. 14.  Minnesota Statutes 1999 Supplement, section 
117.15  120B.30, subdivision 1, is amended to read: 
117.16     Subdivision 1.  [STATEWIDE TESTING AND REPORTING.] (a) The 
117.17  commissioner, with advice from experts with appropriate 
117.18  technical qualifications and experience and stakeholders, shall 
117.19  include in the comprehensive assessment system, for each grade 
117.20  level to be tested, a single statewide norm-referenced or 
117.21  criterion-referenced test, or a combination of a norm-referenced 
117.22  and a criterion-referenced test, which shall be highly 
117.23  correlated aligned with the state's graduation standards and 
117.24  administered annually to all students in the third, fifth, and 
117.25  eighth grades.  The reading and math tests administered to third 
117.26  and fifth grade students and the writing test administered to 
117.27  fifth grade students must be sufficiently rigorous, valid, and 
117.28  reliable for districts to use the test results for diagnostic 
117.29  purposes affecting student learning and district instruction and 
117.30  curriculum, and for establishing educational accountability.  
117.31  The commissioner shall establish one or more months during which 
117.32  schools shall administer the tests to students each school 
117.33  year.  Only Minnesota basic skills tests in reading, 
117.34  mathematics, and writing shall fulfill students' basic skills 
117.35  testing requirements for a passing state notation.  
117.36     (b) In addition, at the secondary level, districts shall 
118.1   assess student performance in all required learning areas and 
118.2   selected required standards within each area of the profile of 
118.3   learning.  The testing instruments and testing process shall be 
118.4   determined by the commissioner.  The results shall be aggregated 
118.5   at the site and district level.  The testing shall be 
118.6   administered beginning in the 1999-2000 school year and 
118.7   thereafter. 
118.8      (c) The comprehensive assessment system shall include an 
118.9   evaluation of commissioner shall report school site and school 
118.10  district performance student academic achievement levels during 
118.11  the 1997-1998 school year and thereafter using an established 
118.12  performance baseline developed from students' test scores under 
118.13  this section that records, at a minimum, of the current and two 
118.14  immediately preceding school years.  The report shall include 
118.15  students' unweighted mean test scores in each tested subject, a 
118.16  second performance baseline that reports, at a minimum, the same 
118.17  unweighted mean test scores of only those students enrolled in 
118.18  the school by January 1 of the previous school year, and a third 
118.19  performance baseline that reports the same unweighted test 
118.20  scores of all students except those students receiving limited 
118.21  English proficiency instruction.  The evaluation report also 
118.22  shall record separately, in proximity to the reported 
118.23  performance baselines levels, the percentages of students who 
118.24  are eligible to receive a free or reduced price school meal, 
118.25  demonstrate limited English proficiency, or are eligible to 
118.26  receive special education services. 
118.27     (d) In addition to the testing and reporting requirements 
118.28  under paragraphs (a), (b), and (c), the commissioner shall 
118.29  include the following components in the statewide educational 
118.30  accountability and public reporting system: 
118.31     (1) uniform statewide testing of all third, fifth, eighth, 
118.32  and post-eighth grade students with that provides testing 
118.33  exemptions, only with parent or guardian approval, from the 
118.34  testing requirement only for those very few students for whom 
118.35  the student's individual education plan team under sections 
118.36  125A.05 and 125A.06, determines that the student is incapable of 
119.1   taking a statewide test, or for a limited English proficiency 
119.2   student under section 124D.59, subdivision 2, if the student has 
119.3   been in the United States for fewer than 12 months and for whom 
119.4   special language barriers exist, such as the student's native 
119.5   language does not have a written form or the district does not 
119.6   have access to appropriate interpreter services for the 
119.7   student's native language; 
119.8      (2) educational indicators that can be aggregated and 
119.9   compared across school districts and across time on a statewide 
119.10  basis including average daily attendance, high school graduation 
119.11  rates, and high school drop-out rates by grade level; and 
119.12     (3) students' scores on the American College Test; 
119.13     (4) participation in the National Assessment of Educational 
119.14  Progress so that the state can benchmark its performance against 
119.15  the nation and other states, and, where possible, against other 
119.16  countries, and contribute to the national effort to monitor 
119.17  achievement; and 
119.18     (5) basic skills and advanced competencies connecting 
119.19  teaching and learning to high academic standards, assessment, 
119.20  and transitions to citizenship and employment. 
119.21     (e) Districts must report exemptions under paragraph (d), 
119.22  clause (1), to the commissioner consistent with a format 
119.23  provided by the commissioner. 
119.24     Sec. 15.  Minnesota Statutes 1999 Supplement, section 
119.25  120B.35, is amended to read: 
119.26     120B.35 [STUDENT ACADEMIC ACHIEVEMENT LEVELS.] 
119.27     (a) Each school year, a school district must determine if 
119.28  the student achievement levels at each school site meet 
119.29  state and local expectations.  If student achievement levels at 
119.30  a school site do not meet state and local expectations for two 
119.31  out of three consecutive school years, beginning with 
119.32  the 2000-2001 first school year after which the moratorium under 
119.33  section 3 is repealed, the district must work with the school 
119.34  site to adopt a plan to raise student achievement levels to meet 
119.35  state and local expectations.  The legislature will determine 
119.36  state expectations after receiving a recommendation from the 
120.1   commissioner of children, families, and learning.  The 
120.2   commissioner must submit recommendations to the legislature by 
120.3   January 15, 2000.  
120.4      (b) A district, with timely and adequate technical support 
120.5   from the department at the district's request, must assist 
120.6   school sites in developing recommendations for rigorous, valid, 
120.7   and reliable assessment methods to determine student achievement 
120.8   of content standards required for graduation.  The methods of 
120.9   assessment may be different for different content standards, but 
120.10  must indicate a clearly defined minimum level of student 
120.11  achievement in each content standard required for graduation.  A 
120.12  district must make timely information about its assessment 
120.13  methods and levels of student achievement readily available in a 
120.14  useful format to interested members of the public and the 
120.15  department, consistent with the requirements of section 13.32.  
120.16  The district also must publish an annual report containing 
120.17  district information about student achievement on the state's 
120.18  basic reading, math, and writing tests, the content standards 
120.19  that students must complete under the profile of learning in 
120.20  order to graduate, sample assessment methods the district uses 
120.21  to determine student achievement, and planned and implemented 
120.22  district efforts to improve student learning and district 
120.23  instruction and curriculum, which it must disseminate to 
120.24  district residents and transmit to the department in a useful 
120.25  and timely manner.  The commissioner must review the performance 
120.26  of a school site or district demonstrating a pattern of low 
120.27  student achievement on the state's third and fifth grade reading 
120.28  and math tests and fifth grade writing test and on the eighth 
120.29  grade basic reading and math skills tests and tenth grade 
120.30  writing skills test, and may review the performance of other 
120.31  districts at the request of the district or at the discretion of 
120.32  the commissioner.  The commissioner must pay the costs of these 
120.33  reviews. 
120.34     (c) The department, at a district's request, must assist 
120.35  the district and the school site in developing a plan to improve 
120.36  student achievement.  The plan must include parental involvement 
121.1   components. 
121.2      Sec. 16.  Minnesota Statutes 1998, section 123A.06, is 
121.3   amended by adding a subdivision to read: 
121.4      Subd. 3a.  [GRADUATION REQUIREMENT ALTERNATIVE.] The 
121.5   profile of learning high school graduation requirement under 
121.6   section 120B.02 does not apply to students enrolled in an area 
121.7   learning center if the center has: 
121.8      (1) adopted a resolution to use alternative graduation 
121.9   requirements that are specified and detailed; and 
121.10     (2) informed the parent or guardian of students who are 
121.11  enrolled or applying to enroll of this resolution. 
121.12     Sec. 17.  Minnesota Statutes 1999 Supplement, section 
121.13  124D.10, subdivision 10, is amended to read: 
121.14     Subd. 10.  [PUPIL PERFORMANCE.] A charter school must 
121.15  design its programs to at least meet the outcomes adopted by the 
121.16  commissioner for public school students.  In the absence of the 
121.17  commissioner's requirements, the school must meet the outcomes 
121.18  contained in the contract with the sponsor.  The achievement 
121.19  levels of the outcomes contained in the contract may exceed the 
121.20  achievement levels of any outcomes adopted by the commissioner 
121.21  for public school students.  The profile of learning high school 
121.22  graduation requirement under section 120B.02 does not apply to 
121.23  students enrolled in a charter school if the board has: 
121.24     (1) adopted a resolution to use alternative graduation 
121.25  requirements that are specified and detailed; and 
121.26     (2) informed the parent or guardian of students who are 
121.27  enrolled or applying to enroll of this resolution. 
121.28     Sec. 18.  [CURRICULUM; INSTRUCTIONAL PRACTICES FOR 
121.29  TEACHERS; ALTERNATIVE ASSESSMENTS.] 
121.30     To fully implement standards and assessments, districts 
121.31  must work to improve: 
121.32     (1) the scope and sequence of curriculum, especially in 
121.33  language arts, mathematics, science, and social studies at all 
121.34  instruction levels; 
121.35     (2) research-based instructional skills of teachers and 
121.36  other district staff who work with students; and 
122.1      (3) alternative assessments of student achievement. 
122.2      Sec. 19.  [CONTRACTORS TO COMPARE PROPOSALS.] 
122.3      The commissioner separately must contract with each of the 
122.4   two nationally recognized independent organizations under 
122.5   contract in section 4 to conduct an external review and analysis 
122.6   of the learning areas and content standards proposed in part 3, 
122.7   sections 25 to 62.  This review and analysis must incorporate 
122.8   the review content listed in section 5 and must compare the 
122.9   state's standards and related procedures, policies, and 
122.10  assessments with the proposals in part 3, sections 25 to 62.  
122.11  The contractors must report their findings by December 15, 2000, 
122.12  to the commissioner and the education committees of the 
122.13  legislature. 
122.14     Sec. 20.  [DISSEMINATING INFORMATION.] 
122.15     The commissioner, in a timely fashion using readily 
122.16  accessible formats, must disseminate clear information to all 
122.17  school districts about the changes made in this article. 
122.18     Sec. 21.  [EFFECT ON PROFILE OF LEARNING RULES.] 
122.19     The rules of the department of children, families, and 
122.20  learning are void to the extent they are inconsistent with this 
122.21  article. 
122.22     Sec. 22.  [DEPARTMENT COSTS.] 
122.23     The department of children, families, and learning is 
122.24  responsible for any costs resulting from the implementing of 
122.25  this article. 
122.26     Sec. 23.  [REPEALER.] 
122.27     (a) Minnesota Statutes 1998, sections 120B.03, subdivision 
122.28  2; and 120B.04, are repealed. 
122.29     (b) Minnesota Rules, parts 3501.0320, subpart 2, items E 
122.30  and F; 3501.0360; 3501.0370; 3501.0400; and 3501.0430, items A 
122.31  to D, are repealed. 
122.32     Sec. 24.  [EFFECTIVE DATE.] 
122.33     Sections 3 to 23 are effective the day following final 
122.34  enactment. 
122.35                    PART 3:  NORTH STAR STANDARD 
122.36     Sec. 25.  Minnesota Statutes 1999 Supplement, section 
123.1   120B.02, is amended to read: 
123.2      120B.02 [RESULTS-ORIENTED GRADUATION RULE; NORTH STAR 
123.3   STANDARD FOR GENUINE ACADEMIC EXCELLENCE AND BASIC SKILLS 
123.4   REQUIREMENTS; PROFILE OF LEARNING.] 
123.5      (a) The legislature is committed to establishing a 
123.6   rigorous, results-oriented graduation rule the North Star 
123.7   Standard for genuine academic excellence for Minnesota's public 
123.8   school students.  To that end, the commissioner shall use its 
123.9   rulemaking authority under section 127A.05, subdivision 4, to 
123.10  adopt a statewide, results-oriented graduation rule to be 
123.11  implemented starting with students beginning ninth grade in the 
123.12  1996-1997 school year.  The commissioner shall not prescribe in 
123.13  rule or otherwise the delivery system or form of instruction 
123.14  that local sites must use to meet the requirements contained in 
123.15  this rule.  
123.16     (b) To successfully accomplish paragraph (a), the 
123.17  commissioner shall set in rule high academic standards for all 
123.18  students.  The standards must contain the foundational skills in 
123.19  the three core curricular areas of reading, writing, and 
123.20  mathematics while meeting requirements for high school 
123.21  graduation.  The standards must also provide an opportunity for 
123.22  students to excel by meeting higher academic standards through a 
123.23  profile of learning that uses curricular requirements to allow 
123.24  students to expand their knowledge and skills beyond the 
123.25  foundational skills.  All commissioner actions regarding the 
123.26  rule must be The North Star Standard is premised on the 
123.27  following:  
123.28     (1) the rule North Star Standard is intended to raise 
123.29  academic expectations progressively throughout the Kindergarten 
123.30  through grade 12 experience for students, teachers, and schools; 
123.31     (2) it is essential that, as much as possible, all students 
123.32  reach a level of minimum competency, but the goal must be that 
123.33  all students be expected and encouraged to reach their greatest 
123.34  potential.  The standard is the pursuit of academic excellence; 
123.35  and 
123.36     (3) any state action regarding the rule North Star Standard 
124.1   must evidence consideration of parent, student, teacher, and 
124.2   school district autonomy; and.  The delivery system or form of 
124.3   instruction that local sites must use to meet the standard must 
124.4   not be prescribed.  
124.5      (3) the department of children, families, and learning, 
124.6   with the assistance of school districts, must make available 
124.7   information about all state initiatives related to the rule to 
124.8   students and parents, teachers, and the general public in a 
124.9   timely format that is appropriate, comprehensive, and readily 
124.10  understandable. 
124.11     (c) (b) For purposes of adopting the rule, the 
124.12  commissioner, in consultation with the department, 
124.13  recognized local implementation of the North Star Standard, 
124.14  school districts shall consult with psychometric experts in 
124.15  assessment, and or other interested and knowledgeable educators 
124.16  for proven curriculum, testing, assessment, methods, using the 
124.17  most current version of professional standards for educational 
124.18  testing, shall evaluate the alternative approaches to assessment 
124.19  and practices.  
124.20     (d) The content of the graduation rule must differentiate 
124.21  between minimum competencies reflected in the basic requirements 
124.22  assessment and rigorous profile of learning standards.  When 
124.23  fully implemented, the requirements for high school graduation 
124.24  in Minnesota must include both basic requirements and the 
124.25  required profile of learning.  The profile of learning must 
124.26  measure student performance using performance-based assessments 
124.27  compiled over time that integrate higher academic standards, 
124.28  higher order thinking skills, and application of knowledge from 
124.29  a variety of content areas.  The profile of learning shall 
124.30  include a broad range of academic experience and accomplishment 
124.31  necessary to achieve the goal of preparing students to function 
124.32  effectively as purposeful thinkers, effective communicators, 
124.33  self-directed learners, productive group participants, and 
124.34  responsible citizens.  The commissioner shall develop and 
124.35  disseminate to school districts a uniform method for reporting 
124.36  student performance on the profile of learning. 
125.1      (e) The commissioner shall periodically review and report 
125.2   on the assessment process and student achievement with the 
125.3   expectation of raising the standards and expanding high school 
125.4   graduation requirements. 
125.5      (f) The commissioner shall report in writing to the 
125.6   legislature annually by January 15 on its progress in developing 
125.7   and implementing the graduation requirements according to the 
125.8   requirements of this subdivision and section 120B.10 until such 
125.9   time as all the graduation requirements are implemented. 
125.10     Sec. 26.  [120B.021] [CITATION.] 
125.11     Sections 120B.01 to 120B.0242 may be cited as the "North 
125.12  Star Standard for genuine academic excellence." 
125.13     Sec. 27.  [120B.0211] [GOAL.] 
125.14     Sections 120B.01 to 120B.0242 establish the educational and 
125.15  academic requirements that students must meet to be eligible to 
125.16  receive a high school diploma. 
125.17     Sec. 28.  [120B.0212] [SCOPE.] 
125.18     Sections 120B.01 to 120B.0242 govern the minimum 
125.19  requirements that public school districts must establish for 
125.20  students to earn a high school diploma. 
125.21     Sec. 29.  [120B.0213] [DEFINITIONS.] 
125.22     Subdivision 1.  [APPLICABILITY.] As used in sections 
125.23  120B.01 to 120B.0242, the terms defined in this section have the 
125.24  meanings given them. 
125.25     Subd. 2.  [GRADE SPECIFIC COURSE AND HIGH SCHOOL COURSE 
125.26  CREDIT.] (a) "Grade specific" means the grade appropriate course 
125.27  content established by the school district.  Grade specific 
125.28  course content is not required to be age dependent.  
125.29     (b) "Course" means a set of school district curriculum 
125.30  specifications in a learning area for one school year.  
125.31     (c) "High school course credit" is the equivalent of one 
125.32  hour per school day during one school year of study in a 
125.33  learning area for grades 9 to 12.  
125.34     Subd. 3.  [LEARNING AREA.] (a) "Learning area" means one of 
125.35  the eight categories into which all preparatory courses, and one 
125.36  of the ten categories into which all high school course credits 
126.1   are organized. 
126.2      (b) The high school learning areas include: 
126.3      (1) English language and grammar; 
126.4      (2) literature and composition; 
126.5      (3) mathematics; 
126.6      (4) science; 
126.7      (5) history and government/citizenship; 
126.8      (6) personal fitness and health; 
126.9      (7) the arts, an elective learning area; 
126.10     (8) personal management, an elective learning area; 
126.11     (9) foreign languages, an elective learning area; and 
126.12     (10) vocational education, an elective learning area. 
126.13     (c) The preparatory learning areas include: 
126.14     (1) English language and grammar; 
126.15     (2) literature and composition; 
126.16     (3) mathematics; 
126.17     (4) science; 
126.18     (5) history, geography, and government; 
126.19     (6) personal fitness and health; 
126.20     (7) arts; and 
126.21     (8) personal management. 
126.22     Subd. 4.  [COURSE PLAN.] "Course plan" means a grade 
126.23  specific written set of district curriculum specifications in a 
126.24  learning area and must include:  (1) the teacher's name; (2) the 
126.25  grade level; (3) course sequence; (4) class teaching syllabus; 
126.26  (5) the number of course credits students may earn; (6) the 
126.27  instructional materials used for the class; (7) homework and 
126.28  parental support expectations; (8) the testing requirements, 
126.29  quizzes, or other evaluations; (9) grading credit or methods 
126.30  used; and (10) the requirements that students are expected to 
126.31  successfully complete in the course.  
126.32     Subd. 5.  [PARENTAL ACCESS AND PUBLIC ACCOUNTABILITY.] The 
126.33  course plan must be available in the nearest public/school 
126.34  library and must include: 
126.35     (1) a grade level, course-specific remediation plan 
126.36  prepared by the school district, which must be used concurrently 
127.1   during the course and may include summer school and criteria for 
127.2   repeating a grade or course; and 
127.3      (2) a school district grading process that determines when 
127.4   a student's course plan is successfully completed, and assigns a 
127.5   grade to the student's work according to the grading criteria. 
127.6      Subd. 6.  [GRADUATION REQUIREMENTS.] "Graduation 
127.7   requirements" means the number and distribution of high school 
127.8   course credits that a district must offer and a student must 
127.9   successfully complete to be eligible for a high school diploma.  
127.10     Subd. 7.  [EXEMPTION.] "Exemption" means that a student 
127.11  with an individual education plan or section 504 accommodation 
127.12  plan is not required to complete a particular course credit. 
127.13     Subd. 8.  [MODIFICATION.] "Modification" means an 
127.14  adjustment of a test that changes the course credit for a 
127.15  student with an individual education plan or section 504 
127.16  accommodation plan. 
127.17     Sec. 30.  [120B.0214] [GRADUATION REQUIREMENTS.] 
127.18     Subdivision 1.  [NORTH STAR STANDARD.] School district 
127.19  course credits are contained in sections 120B.0222 to 
127.20  120B.0242.  The preparatory courses are contained in sections 
127.21  120B.0233 to 120B.0242.  High school course credits are 
127.22  contained in sections 120B.0222 to 120B.0232.  High school 
127.23  graduation requirements are contained in subdivisions 3 to 5. 
127.24     Subd. 2.  [DISTRICTS AND STUDENTS.] (a) A district must 
127.25  provide learning opportunities for all students in all 
127.26  preparatory courses in learning areas one to eight, and learning 
127.27  opportunities sufficient for students to complete high school 
127.28  course credits in ten learning areas and meet school district 
127.29  graduation requirements. 
127.30     (b) Students are encouraged to exceed the specifications 
127.31  for all preparatory and high school standards contained in 
127.32  sections 120B.0222 to 120B.0242. 
127.33     (c) A student must successfully complete at least 21 course 
127.34  credits for graduation.  A student may select electives from any 
127.35  course credit in learning areas one to ten under subdivision 3. 
127.36     Subd. 3.  [DISTRIBUTION REQUIREMENTS FOR HIGH SCHOOL 
128.1   GRADUATION.] A student must successfully complete all 
128.2   specifications of at least 21 high school course credits to be 
128.3   eligible for high school graduation.  The student must complete 
128.4   15 of the 21 high school course credits as follows: 
128.5      (1) two course credits from learning area one, English 
128.6   language and grammar; 
128.7      (2) two course credits from learning area two, literature 
128.8   and composition; 
128.9      (3) three course credits from learning area three, 
128.10  mathematics; 
128.11     (4) two course credits from learning area four, science; 
128.12     (5) four course credits from learning area five, history, 
128.13  and government/citizenship; 
128.14     (6) two course credits from learning area six, personal 
128.15  fitness and health; 
128.16     (7) no course credits from learning area seven, the arts, 
128.17  which is an elective; 
128.18     (8) no course credits from learning area eight, personal 
128.19  management, which is an elective; 
128.20     (9) no course credits from learning area nine, foreign 
128.21  languages; and 
128.22     (10) no course credits from learning area ten, vocational 
128.23  education, which is an elective. 
128.24     Subd. 4.  [ELECTIVE REQUIREMENTS.] In addition to the 
128.25  distribution requirements under subdivision 3, students also 
128.26  must complete six additional course credits of the student's 
128.27  choice from the high school course credits listed in sections 
128.28  120B.0222 to 120B.0232. 
128.29     Subd. 5.  [ADDITIONAL REQUIREMENTS.] (a) A student must 
128.30  complete one application of technology in each of the following 
128.31  three learning areas: 
128.32     (1) area two, literature and composition; 
128.33     (2) area three, mathematics; and 
128.34     (3) area four, science. 
128.35     (b) A district may establish additional requirements. 
128.36     Subd. 6.  [VARIATIONS.] A student must successfully 
129.1   complete the requirements in subdivisions 1 to 5 unless the 
129.2   district specifically establishes variations for the student.  
129.3   Variations for a student from the requirements in subdivisions 1 
129.4   to 5 are permitted only under section 120B.0215 or 120B.0216. 
129.5      Sec. 31.  [120B.0215] [VARIATIONS FOR STUDENTS WITH 
129.6   INDIVIDUAL EDUCATION PLANS OR SECTION 504 ACCOMMODATION PLANS.] 
129.7      Subdivision 1.  [DETERMINATION OF REQUIREMENTS.] (a) A 
129.8   student in kindergarten through grade 8 with an individual 
129.9   education plan or section 504 accommodation plan shall have all 
129.10  courses considered by the student's individual education plan 
129.11  team or section 504 accommodation plan team for inclusion in the 
129.12  student's individual education plan or section 504 accommodation 
129.13  plan under subdivision 2. 
129.14     (b) A student's individual education plan team or section 
129.15  504 accommodation plan team must consider the graduation 
129.16  requirements under section 120B.0214 for inclusion in the 
129.17  student's individual education plan or section 504 accommodation 
129.18  plan when a student with a disability is 14 years old or 
129.19  registers for grade 9, whichever is first.  An individual 
129.20  education plan team also must consider the student's transition 
129.21  plan when determining which of the required and elective courses 
129.22  to include in the student's individual education plan. 
129.23     Subd. 2.  [INDIVIDUALIZED PLANS.] (a) For a student in 
129.24  kindergarten through grade 8 with an individual education plan 
129.25  or section 504 accommodation plan, the student's individual 
129.26  education plan team or section 504 accommodation plan team may 
129.27  modify preparatory courses for the student in the individual 
129.28  education plan or section 504 accommodation plan.  The team must 
129.29  determine the specifications of a course the student will pursue 
129.30  under the selected modification.  If the team determines that 
129.31  the student is exempt from one or more of the courses, it must 
129.32  explain the exemption in the student's individual education plan 
129.33  or section 504 accommodation plan.  When the team adopts an 
129.34  exempt status for a course, it must determine whether or not a 
129.35  different standard or individual education plan goal specific to 
129.36  the learning area is appropriate and include that goal in the 
130.1   student's plan. 
130.2      (b) For a high school student with an individual education 
130.3   plan or section 504 accommodation plan, the student's individual 
130.4   education plan team or section 504 accommodation plan team must: 
130.5      (1) determine whether the student will pursue the course 
130.6   credits without modification; 
130.7      (2) determine whether one or more of the 21 required course 
130.8   credits will be modified to an individual level; 
130.9      (3) define the elective course credits that the student 
130.10  also will pursue and whether, for each elective, the student 
130.11  will pursue the course credit without modification or have the 
130.12  course credit modified to an individual level; or 
130.13     (4) determine whether the student is exempt from one or 
130.14  more of the graduation requirements under section 120B.0214, 
130.15  subdivisions 3 to 5. 
130.16  When the team adopts exempt status for a course credit, it must 
130.17  determine whether or not a different standard or individual 
130.18  education plan goal specific to the learning area is appropriate 
130.19  and include that goal in the student's plan. 
130.20     (c) A student's individual education plan team or section 
130.21  504 accommodation plan team must determine the specifications of 
130.22  a preparatory or high school course credit the student will 
130.23  pursue when the team modifies a course credit.  When a course 
130.24  credit is modified, the student's individual education plan team 
130.25  or section 504 accommodation plan team must determine the 
130.26  appropriate assessment of the modified course credit. 
130.27     Sec. 32.  [120B.0216] [ENGLISH PROFICIENCY; INDIVIDUAL 
130.28  GRADUATION PLANS.] 
130.29     A district must establish and maintain procedures giving 
130.30  students the opportunity to complete both preparatory courses 
130.31  and high school course credits.  Graduation requirements for a 
130.32  student must be as specified in section 120B.0214, subdivisions 
130.33  3 to 5, unless section 120B.0215 applies or unless modified in 
130.34  an individual graduation plan developed and annually reviewed by 
130.35  a team that includes school advisory staff designated by the 
130.36  district, the student's teachers, the student's parent or 
131.1   guardian, and the student.  A district must not modify 
131.2   specifications for standards in learning areas one to ten to 
131.3   permit a student to complete a standard in a language other than 
131.4   English. 
131.5      Sec. 33.  [120B.0217] [TESTING AND SCORING STUDENT 
131.6   ACHIEVEMENT.] 
131.7      Subdivision 1.  [DISTRICT CRITERION REFERENCED TESTING 
131.8   REQUIREMENTS.] (a) Districts shall develop local 
131.9   criterion-referenced testing consistent with this section. 
131.10     (b) A district must: 
131.11     (1) test student performance in preparatory courses and 
131.12  high school course credits; and 
131.13     (2) establish processes by which to transfer as completed 
131.14  (i) those course credits that other Minnesota public school 
131.15  districts verify on transcripts as completed, (ii) the work that 
131.16  post-secondary educational institutions or educational 
131.17  institutions outside the state accept for completion of course 
131.18  credits and verify on transcripts as completed, and (iii) a 
131.19  student's opportunities to complete high school course credits 
131.20  through learning the student acquires outside the district's 
131.21  curriculum. 
131.22     Subd. 2.  [SCORING.] The district must establish a letter 
131.23  grade between A and F for teacher grading of students who 
131.24  complete a course assignment or course.  Assessments may include 
131.25  grade point averages when tests that measure specifics are 
131.26  used.  Incomplete student work on the course receives a grade of 
131.27  I and does not complete a grade level or course credit.  
131.28     Sec. 34.  [120B.0218] [HIGH SCHOOL STUDENT TRANSCRIPT 
131.29  DATA.] 
131.30     Subdivision 1.  [TRANSCRIPT INFORMATION.] A district must 
131.31  include on a high school student's transcript the following 
131.32  information: 
131.33     (1) the high school course credits the student successfully 
131.34  completed; 
131.35     (2) the grade or sequence level the student achieved on 
131.36  each high school course credit, or a notation that the course 
132.1   credit has been certified as completed through the district's 
132.2   process for transferring credit under section 120B.0217, 
132.3   subdivision 1, paragraph (b), clause (2); and 
132.4      (3) the date the student successfully completed each high 
132.5   school course credit. 
132.6      Subd. 2.  [TRANSCRIPT FORMAT.] A district must format a 
132.7   high school student transcript according to generally accepted 
132.8   academic and vocational specifications. 
132.9      Sec. 35.  [120B.0219] [NOTICE TO PARENTS AND STUDENTS.] 
132.10     In addition to other applicable notice requirements, the 
132.11  district must notify parents and students in writing about: 
132.12     (1) the course credit taught and assessed in the school 
132.13  curriculum; 
132.14     (2) the procedures for advising the student and the 
132.15  student's parent or guardian about graduation requirements and 
132.16  for accessing these procedures; 
132.17     (3) the procedures by which students may meet graduation 
132.18  requirements with course credits successfully completed outside 
132.19  the district's curriculum; and 
132.20     (4) the district's individual student progress and 
132.21  achievement reporting schedule. 
132.22     Sec. 36.  [120B.0220] [IMPLEMENTATION REPORTING.] 
132.23     A school annually must submit to the local school board a 
132.24  report containing the policies and procedures for: 
132.25     (1) ensuring that all high school students have access to 
132.26  comprehensive academic school curriculum that integrates 
132.27  technology and provides instruction and tests for assessing 
132.28  course content from all ten learning areas under sections 
132.29  120B.0222 to 120B.0232 sufficient to meet graduation 
132.30  requirements; 
132.31     (2) testing and assessing a student's understanding and 
132.32  demonstration of the course content; 
132.33     (3) staff development designed to continuously improve 
132.34  curriculum, instruction, and tests and assessments; 
132.35     (4) allowing a student to meet a graduation requirement for 
132.36  a course credit, whether the district offers the course content 
133.1   in its school curriculum or the student accomplishes the work in 
133.2   another learning environment, including a process for 
133.3   transferring credits completed in another Minnesota school 
133.4   district, recognizing work completed in other schools and 
133.5   post-secondary institutions, and awarding credit for 
133.6   achievements in extracurricular activities, activities outside 
133.7   of the school, previous learning, and community and work 
133.8   experiences; 
133.9      (5) periodically advising a student and the student's 
133.10  parent or guardian of the student's progress and achievement and 
133.11  of the choices and opportunities available to the student for 
133.12  learning, graduating, and achieving the student's post-secondary 
133.13  educational and career goals; 
133.14     (6) recordkeeping and reporting student achievement; and 
133.15     (7) allowing the student and the student's parent or 
133.16  guardian to appeal district policies and procedures. 
133.17     Sec. 37.  [120B.0221] [OTHER DISTRICT RESPONSIBILITIES.] 
133.18     A district must maintain records of the following, which it 
133.19  must submit for audit at the state's request, to allow the 
133.20  periodic review of district graduation standards, opportunities, 
133.21  and requirements: 
133.22     (1) course plans used to test and assess students' 
133.23  completion of preparatory courses and high school course 
133.24  credits; 
133.25     (2) aggregated records of students' completion of each high 
133.26  school course credit; and 
133.27     (3) aggregated data on each year's high school graduates, 
133.28  including average number of high school course credits 
133.29  completed, and the number of each grade earned on each course 
133.30  credit. 
133.31     Sec. 38.  [120B.0222] [CONTENT STANDARDS; HIGH SCHOOL 
133.32  LEVEL.] 
133.33     The specifications of the high school course credits are at 
133.34  least those in sections 120B.0223 to 120B.0232, which districts 
133.35  may supplement at their election. 
133.36     Sec. 39.  [120B.0223] [LEARNING AREA ONE; ENGLISH LANGUAGE 
134.1   AND GRAMMAR.] 
134.2      Subdivision 1.  [HIGH SCHOOL COURSE CREDIT FOR LEARNING 
134.3   AREA ONE.] The specifications for high school course credits in 
134.4   learning area one are at least those described in this section. 
134.5      Subd. 2.  [ENGLISH LANGUAGE AND GRAMMAR.] A student should 
134.6   be able to demonstrate the ability to comprehend and evaluate 
134.7   complex information in fiction or nonfiction by reading, 
134.8   listening, and viewing varied English language selections 
134.9   containing complex information. 
134.10     Subd. 3.  [ENGLISH LANGUAGE AND GRAMMAR; TECHNICAL 
134.11  INFORMATION.] A student should be able to demonstrate the 
134.12  ability to read and apply technical information from varied 
134.13  English language documents. 
134.14     Sec. 40.  [120B.0224] [LEARNING AREA TWO; LITERATURE AND 
134.15  COMPOSITION.] 
134.16     Subdivision 1.  [HIGH SCHOOL COURSE CREDITS FOR LEARNING 
134.17  AREA TWO.] Specifications for high school course credits in 
134.18  learning area two are at least those described in this section. 
134.19     Subd. 2.  [LITERATURE.] A student should be able to 
134.20  demonstrate the ability to interpret and evaluate complex works 
134.21  of famous American and World literature, including works of 
134.22  prose, poetry, and theater, by: 
134.23     (1) describing the elements of literature for intent, form, 
134.24  and context to historical, cultural, and social background of 
134.25  selected works; and 
134.26     (2) demonstrating the ability to communicate an informed 
134.27  interpretation of any selection of literary works. 
134.28     Subd. 3.  [COMPOSITION.] A student should be able to 
134.29  demonstrate the ability to write original compositions for a 
134.30  variety of academic purposes and situations using correct 
134.31  grammar, language mechanics, and other conventions of standard 
134.32  written English.  The student must also correct the grammatical 
134.33  and other writing errors made to appear in a recognized work of 
134.34  fiction or nonfiction appropriate for this purpose. 
134.35     Subd. 4.  [TECHNICAL WRITING.] A student should be able to 
134.36  demonstrate the ability to write in the English language for a 
135.1   variety of technical purposes, situations, and audiences by 
135.2   writing original technical compositions that include a set of 
135.3   procedures or directions, a report or proposal, and 
135.4   informational correspondence describing a complex process, 
135.5   procedure, or device for a particular audience. 
135.6      Subd. 5.  [PUBLIC SPEAKING.] A student should be able to 
135.7   demonstrate the ability to construct and deliver speeches for a 
135.8   variety of purposes, situations, and audiences using English 
135.9   language conventions. 
135.10     Subd. 6.  [INTERPERSONAL COMMUNICATION.] A student should 
135.11  be able to demonstrate understanding of interpersonal 
135.12  communication strategies, the components of the interpersonal 
135.13  communication process, and how various factors affect patterns 
135.14  of communication, interaction, and problem solving. 
135.15     Sec. 41.  [120B.0225] [LEARNING AREA THREE; MATHEMATICS.] 
135.16     Subdivision 1.  [HIGH SCHOOL COURSE CREDITS FOR LEARNING 
135.17  AREA THREE.] Specifications for high school content standards in 
135.18  learning area three are at least those under subdivisions 2 to 5.
135.19     Subd. 2.  [MATHEMATICS.] A student should be able to 
135.20  demonstrate a knowledge of mathematical relationships and solve 
135.21  problems. 
135.22     Subd. 3.  [DATA ANALYSIS.] A student should be able to 
135.23  demonstrate understanding of: 
135.24     (1) the statistical concepts of measures of center, 
135.25  variability, and rank; 
135.26     (2) differences between correlation and causation; 
135.27     (3) sampling procedures; 
135.28     (4) line or curve of best fit; and 
135.29     (5) concepts related to uncertainty of randomness, 
135.30  permutations, combinations, and theoretical and experimental 
135.31  probabilities. 
135.32     Subd. 4.  [ALGEBRA.] A student should be able to understand:
135.33     (1) rates of change in different models of linear 
135.34  relationships and characteristics of polynomial, exponential, 
135.35  and periodic functions and relations; 
135.36     (2) functional notation; and 
136.1      (3) terminology using properties of algebra to justify 
136.2   reasoning through a logical argument. 
136.3      Subd. 5.  [GEOMETRY.] A student should be able to 
136.4   understand: 
136.5      (1) the characteristics of geometric figures in both two 
136.6   and three dimensions, including reflections, rotations, and 
136.7   translations; 
136.8      (2) congruence and similarity; 
136.9      (3) perimeter, area, and volume; 
136.10     (4) distance; 
136.11     (5) scaling; and 
136.12     (6) symmetry. 
136.13     Sec. 42.  [120B.0226] [LEARNING AREA FOUR; SCIENCE.] 
136.14     Subdivision 1.  [HIGH SCHOOL CONTENT STANDARDS FOR LEARNING 
136.15  AREA FOUR.] Specifications for high school content standards in 
136.16  learning area four are at least those described in this section. 
136.17     Subd. 2.  [BIOLOGY.] A student should be able to 
136.18  demonstrate understanding of biological concepts, theories, and 
136.19  principles including cell theory, mechanisms of heredity, 
136.20  biological change over time, the interdependence of organisms, 
136.21  material cycles and energy flow in living systems, the behavior 
136.22  of organisms, and the historical significance of major 
136.23  scientific advances through the investigation and analysis of 
136.24  cells, organisms, and ecosystems. 
136.25     Subd. 3.  [CHEMISTRY.] A student should be able to 
136.26  demonstrate understanding of concepts, theories, and principles 
136.27  in chemistry by investigating and analyzing: 
136.28     (1) atomic theory; 
136.29     (2) relationships between the structure and properties of 
136.30  matter including organic and inorganic bonding, periodicity, and 
136.31  solutions chemistry; 
136.32     (3) chemical reactions; 
136.33     (4) interactions of energy and matter; and 
136.34     (5) the historical significance of major scientific 
136.35  advances. 
136.36     Subd. 4.  [PHYSICS.] A student should be able to 
137.1   demonstrate understanding of matter, forces, and energy by 
137.2   investigating and analyzing the concepts of motion, force, laws 
137.3   of conservation, electricity, magnetism, waves, energy, and 
137.4   work, and the historical significance of major scientific 
137.5   advances. 
137.6      Sec. 43.  [120B.0227] [LEARNING AREA FIVE; HISTORY, AND 
137.7   GOVERNMENT/CITIZENSHIP.] 
137.8      Subdivision 1.  [HIGH SCHOOL COURSE CREDITS FOR LEARNING 
137.9   AREA FIVE.] Specifications for high school course credits in 
137.10  learning area five are at least those described in this section. 
137.11     Subd. 2.  [THEMES OF MINNESOTA, UNITED STATES, AND WORLD 
137.12  HISTORY.] A student should be able to demonstrate understanding 
137.13  of the Declaration of Independence, the United States 
137.14  Constitution, Northwest Ordinance, and founding principles, 
137.15  truths, and themes related to key events, concepts, and people 
137.16  in the historical development of the United States.  A student 
137.17  must demonstrate knowledge of historical events and 
137.18  contributions of key people from different time periods through 
137.19  reading and constructing time lines of key events and the 
137.20  actions of important people, the contributions of key historical 
137.21  people, and cause and effect relationships of events over an 
137.22  extended period of time, including: 
137.23     (1) the convergence of people, colonization, settlement, 
137.24  and the American Revolution; 
137.25     (2) expansion, the Civil War, and the Reconstruction; 
137.26     (3) the relationship between American Indian tribal 
137.27  governments and federal and state government; 
137.28     (4) industrialization, the emergence of modern America, and 
137.29  the Great Depression; 
137.30     (5) World War II; 
137.31     (6) postwar United States to the present; and 
137.32     (7) Minnesota and World History. 
137.33     Subd. 3.  [UNITED STATES GOVERNMENT/CITIZENSHIP.] A student 
137.34  should be able to demonstrate understanding of the foundations, 
137.35  rights, and responsibilities of United States citizenship 
137.36  including: 
138.1      (1) how the United States, as established by the 
138.2   Declaration of Independence, Constitution, and Northwest 
138.3   Ordinance, embodies the principles and ideals of a 
138.4   constitutional representative republic and individual 
138.5   self-governance; 
138.6      (2) the rights and responsibilities of United States 
138.7   citizens, noncitizens, and dual citizens; and 
138.8      (3) the formal and informal structures within which 
138.9   interest groups exercise power. 
138.10     Sec. 44.  [120B.0228] [LEARNING AREA SIX; PERSONAL FITNESS 
138.11  AND LIFESTYLE.] 
138.12     Subdivision 1.  [HIGH SCHOOL COURSE CREDITS FOR LEARNING 
138.13  AREA SIX.] Specifications for high school course credits in 
138.14  learning area six are at least those described in this section. 
138.15     Subd. 2.  [INDIVIDUAL AND COMMUNITY HEALTH.] A student 
138.16  should be able to demonstrate an understanding of 
138.17  decision-making processes and community health practices that 
138.18  promote healthful nutrition and dietary practices, and physical 
138.19  fitness, and that reduce and prevent tobacco use, drug and 
138.20  alcohol use, intended and unintended injuries. 
138.21     Subd. 3.  [PHYSICAL EDUCATION AND FITNESS.] A student 
138.22  should be able to use decision-making processes to select 
138.23  appropriate physical activities to achieve fitness and 
138.24  demonstrate understanding of the training needed to improve 
138.25  fitness and the rules and skills associated with physical 
138.26  activities. 
138.27     Sec. 45.  [120B.0229] [LEARNING AREA SEVEN; THE ARTS; AN 
138.28  ELECTIVE.] 
138.29     Subdivision 1.  [HIGH SCHOOL CONTENT STANDARDS FOR LEARNING 
138.30  AREA SEVEN.] Specifications for high school course credits in 
138.31  learning area seven are at least those described in this section.
138.32     Subd. 2.  [ARTS CREATION AND PERFORMANCE.] In music, dance, 
138.33  theater, visual arts, creative writing, or media arts, a student 
138.34  should be able to demonstrate understanding of the elements, 
138.35  techniques, and processes of the selected art form and how works 
138.36  of the art form are structured.  Also, using the art form, the 
139.1   student must create or perform, or both, an original artistic 
139.2   presentation that includes a single complex work or multiple 
139.3   works. 
139.4      Sec. 46.  [120B.0230] [LEARNING AREA EIGHT; PERSONAL 
139.5   MANAGEMENT; AN ELECTIVE.] 
139.6      Subdivision 1.  [HIGH SCHOOL COURSE CREDITS FOR LEARNING 
139.7   AREA EIGHT.] Specifications for high school course credits in 
139.8   learning area eight are at least those specified in this section.
139.9      Subd. 2.  [ECONOMIC SYSTEMS.] By using the fundamental 
139.10  concepts of economics, a student should be able to demonstrate 
139.11  understanding of the interactive nature of local, national, and 
139.12  global economic systems, and how consumer choices and government 
139.13  decisions impact those systems. 
139.14     Subd. 3.  [PERSONAL AND FAMILY RESOURCE MANAGEMENT.] A 
139.15  student should be able to apply principles of personal and 
139.16  family resource management and informed decision making. 
139.17     Subd. 4.  [BUSINESS MANAGEMENT.] A student should be able 
139.18  to use fundamentals of informed decision making and business 
139.19  management, including: 
139.20     (1) personnel management procedures; 
139.21     (2) customer, employee, and management practices; 
139.22     (3) use of banking services; 
139.23     (4) forms of business organization; and 
139.24     (5) current labor-related laws. 
139.25     Sec. 47.  [120B.0231] [LEARNING AREA NINE; WORLD LANGUAGE; 
139.26  AN ELECTIVE.] 
139.27     Subdivision 1.  [HIGH SCHOOL COURSE CREDIT IN WORLD 
139.28  LANGUAGE.] Specifications for the high school course credit in 
139.29  learning area nine are at least those described in this section. 
139.30     Subd. 2.  [WORLD LANGUAGE.] A student should be able to 
139.31  demonstrate understanding of a foreign, domestic, technical, or 
139.32  symbolic language other than English and communicate in a second 
139.33  language. 
139.34     Sec. 48.  [120B.0232] [LEARNING AREA TEN; VOCATIONAL 
139.35  EDUCATION; AN ELECTIVE.] 
139.36     Subdivision 1.  [HIGH SCHOOL CONTENT STANDARDS FOR LEARNING 
140.1   AREA TEN.] Specifications for high school course credits in 
140.2   learning area ten are at least those described in this section. 
140.3      Subd. 2.  [VOCATIONAL OPTIONS.] School districts must 
140.4   determine the scope and sequence of these vocational electives 
140.5   which must reflect the educational needs and diversity of the 
140.6   district and the vocational education interests of students 
140.7   enrolled in the district and community residents. 
140.8      Sec. 49.  [120B.0233] [PREPARATORY COURSES IN LEARNING AREA 
140.9   ONE; ENGLISH LANGUAGE AND GRAMMAR.] 
140.10     A student should be able to demonstrate comprehension of 
140.11  English and grammar that is appropriate for the student's grade 
140.12  level by reading, listening, and viewing nonfiction and fiction 
140.13  selections to identify main ideas and support details, retell 
140.14  main events or ideas in sequence, pronounce new words using 
140.15  phonics, demonstrate techniques of improving and expanding 
140.16  vocabulary, and demonstrate a grade-level-appropriate reading 
140.17  rate. 
140.18     Sec. 50.  [120B.0234] [PREPARATORY COURSES IN LEARNING AREA 
140.19  TWO; LITERATURE AND COMPOSITION.] 
140.20     Subdivision 1.  [READING AND WRITING.] A student should be 
140.21  able to demonstrate the ability to read, write, and use correct 
140.22  spelling and grammar for a variety of academic purposes, 
140.23  situations, and audiences for the student's grade level. 
140.24     Subd. 2.  [PUBLIC SPEAKING.] A student should be able to 
140.25  demonstrate the ability to speak to an audience. 
140.26     Sec. 51.  [120B.0235] [PREPARATORY COURSES IN LEARNING AREA 
140.27  THREE; MATHEMATICS.] 
140.28     Subdivision 1.  [NUMBER RELATIONSHIPS.] A student should be 
140.29  able to: 
140.30     (1) use number relationships to represent information and 
140.31  solve problems; 
140.32     (2) describe and analyze two- and three-dimensional shapes 
140.33  and spaces using appropriate whole and partial units, including 
140.34  metric, to measure length, time, weight, volume, temperature, 
140.35  angle, and area, and names and properties of common two- and 
140.36  three-dimensional shapes; 
141.1      (3) describe and compare two- and three-dimensional 
141.2   geometric figures existing in the physical world; and 
141.3      (4) measure, including identifying the type of measurement 
141.4   required, selecting the appropriate tools and units of 
141.5   measurement, and measuring accurately. 
141.6      Subd. 2.  [NUMBER OPERATIONS.] A student should be able to 
141.7   demonstrate understanding of: 
141.8      (1) concepts of place value, variables, and equations; 
141.9      (2) when and how to use number operations; 
141.10     (3) addition, subtraction, and multiplication of 
141.11  single-digit multiples of powers of ten; and 
141.12     (4) when and how to use a variety of estimation strategies. 
141.13     Subd. 3.  [BASIC CONCEPTS OF COORDINATE.] A student should 
141.14  be able to: 
141.15     (1) demonstrate understanding of basic concepts of 
141.16  coordinate, by knowing precise mathematical names and properties 
141.17  of two- and three-dimensional shapes, converting common 
141.18  measurement units within the metric system and customary 
141.19  systems, and understanding how properties of shapes affect 
141.20  stability and rigidity of objects; and 
141.21     (2) recognize and describe shape, size, and position of 
141.22  two- and three-dimensional objects and the images of the objects 
141.23  under transformations. 
141.24     Subd. 4.  [NUMBER CONCEPTS.] A student should be able to 
141.25  demonstrate understanding of: 
141.26     (1) number concepts including place value, exponents, prime 
141.27  and composite numbers, multiples, and factors; 
141.28     (2) fractions, decimals, percents, integers, and numbers in 
141.29  scientific notation that translate among equivalent forms; and 
141.30     (3) how to compare and order numbers within a set. 
141.31     Subd. 5.  [CONCEPTS OF ALGEBRA.] A student should be able 
141.32  to: 
141.33     (1) analyze patterns and use concepts of algebra to 
141.34  represent mathematical relationships, including demonstrating 
141.35  understanding of the concepts of variables, expressions, and 
141.36  equations; and 
142.1      (2) use properties of mathematics to informally justify 
142.2   reasoning. 
142.3      Subd. 6.  [GRADE LEVEL KNOWLEDGE; USE OF 
142.4   CALCULATORS.] Knowledge of the concepts under this section must 
142.5   by appropriate for the student's grade level.  Districts are 
142.6   encouraged not to use calculators for kindergarten through grade 
142.7   5. 
142.8      Sec. 52.  [120B.0236] [PREPARATORY COURSES IN LEARNING AREA 
142.9   FOUR; SCIENCE.] 
142.10     Subdivision 1.  [PHYSICAL AND LIFE SCIENCE.] A student 
142.11  should be able to demonstrate knowledge of basic science 
142.12  concepts of physical science and life science that is 
142.13  appropriate for the student's grade level. 
142.14     Subd. 2.  [BIOLOGY.] A student should be able to 
142.15  demonstrate an understanding of: 
142.16     (1) characteristics of organisms including plants, animals, 
142.17  and microorganisms; 
142.18     (2) basic structures and functions of the human body; and 
142.19     (3) cycles and patterns in living organisms and physical 
142.20  systems. 
142.21     Sec. 53.  [120B.0237] [PREPARATORY COURSES IN LEARNING AREA 
142.22  FIVE; HISTORY, GEOGRAPHY, AND GOVERNMENT/CITIZENSHIP.] 
142.23     Subdivision 1.  [HISTORY.] A student should be able to 
142.24  demonstrate grade-level understanding of the Declaration of 
142.25  Independence, the United States Constitution, Northwest 
142.26  Ordinance, and founding principles, truths, and themes related 
142.27  to key events, concepts, and people in the historical 
142.28  development of the United States, including: 
142.29     (1) the convergence of people, colonization, settlement, 
142.30  and the American Revolution; 
142.31     (2) expansion, the Civil War, and the Reconstruction; 
142.32     (3) the relationship between American Indian tribal 
142.33  governments and federal and state government; 
142.34     (4) industrialization, the emergence of modern America, and 
142.35  the Great Depression; 
142.36     (5) World War II; 
143.1      (6) postwar United States to the present; and 
143.2      (7) Minnesota and World History. 
143.3      A student should be able to demonstrate knowledge of 
143.4   historical events and contributions of key people from different 
143.5   time periods through reading and constructing time lines of key 
143.6   events and the actions of important people, the contributions of 
143.7   key historical people, and cause and effect relationships of 
143.8   events over an extended period of time. 
143.9      Subd. 2.  [GEOGRAPHY.] A student should be able to 
143.10  demonstrate a grade level understanding of the physical world 
143.11  including the United States capitals, continents, oceans, land 
143.12  forms, rocks, minerals, solids, waters of the earth, weather, 
143.13  climate, natural animal life, and natural plant life.  A student 
143.14  must demonstrate a grade level ability to locate specific places 
143.15  or parts of the earth's surface or physical environment. 
143.16     Subd. 3.  [GOVERNMENT/CITIZENSHIP.] A student should be 
143.17  able to demonstrate grade level understanding of the 
143.18  foundations, rights, and responsibilities of United States 
143.19  citizenship including: 
143.20     (1) how the United States, as established by the 
143.21  Declaration of Independence, Constitution, and Northwest 
143.22  Ordinance, embodies the principles and ideals of a 
143.23  constitutional representative republic and individual 
143.24  self-governance; 
143.25     (2) the rights and responsibilities of United States 
143.26  citizens, noncitizens, and dual citizens; and 
143.27     (3) the formal and informal structures within which 
143.28  interest groups exercise power.  
143.29     Sec. 54.  [120B.0238] [PREPARATORY COURSES IN LEARNING AREA 
143.30  SIX; THE ARTS.] 
143.31     Subdivision 1.  [ART FORMS.] (a) A student should be able 
143.32  to describe at least three of the art forms in this section 
143.33  using the vocabulary of the art form and identify similarities 
143.34  and differences between different art forms in: 
143.35     (1) visual art; 
143.36     (2) music; 
144.1      (3) theater; and 
144.2      (4) dance. 
144.3      (b) Expectations regarding student work under this section 
144.4   must be appropriate for the student's grade level. 
144.5      Subd. 2.  [ARTISTIC CREATIVITY AND PERFORMANCE; ARTISTIC 
144.6   INTERPRETATION.] (a) A student should be able to: 
144.7      (1) know the expressive and technical elements of an art 
144.8   form; and 
144.9      (2) perform or present in each art form, including using 
144.10  principles and elements of the art form and creating original 
144.11  works in a variety of contexts. 
144.12     (b) A student should be able to interpret and evaluate a 
144.13  variety of art works, performances, or presentations by 
144.14  analyzing art works using the elements, principles, and styles 
144.15  of the art form and evaluating works of art. 
144.16     Sec. 55.  [120B.0239] [PREPARATORY CONTENT STANDARDS IN 
144.17  LEARNING AREA SEVEN; PERSONAL FITNESS AND HEALTH.] 
144.18     (a) A student should be able to demonstrate a grade level 
144.19  understanding of activities that promote personal fitness, 
144.20  health, nutrition, and safety. 
144.21     (b) A student should be able to demonstrate a grade level 
144.22  understanding of: 
144.23     (1) the consequences of using drugs, alcohol, and tobacco; 
144.24     (2) the strategies to prevent the spread of communicable 
144.25  diseases; 
144.26     (3) the strategies for preventing accidents; and 
144.27     (4) age-appropriate nutritional recommendations. 
144.28     (c) A student should be able to demonstrate a grade level 
144.29  understanding of motor skills and physical fitness and 
144.30  participate in physical activities that develop motor skills and 
144.31  physical fitness. 
144.32     Sec. 56.  [120B.0240] [PREPARATORY COURSES IN LEARNING AREA 
144.33  EIGHT; SECOND LANGUAGES.] 
144.34     A student should be able to demonstrate the ability to 
144.35  communicate in another language on age-appropriate topics, 
144.36  including knowing and understanding language features needed for 
145.1   communication. 
145.2      Sec. 57.  [120B.36] [ASSESSMENT OF PERFORMANCE IN PUBLIC 
145.3   SCHOOLS.] 
145.4      (a) Public schools shall annually assess the performance of 
145.5   every child enrolled in public school using a nationally 
145.6   norm-referenced standardized achievement examination.  The local 
145.7   school board annually shall select the examination for each 
145.8   grade level.  The board must notify the parent or guardian of 
145.9   every child of the name and date of the test at least 14 
145.10  calendar days before the test is given.  Parents who object to 
145.11  the test must notify the school of their objection in writing 
145.12  and name an alternative nationally norm-referenced standardized 
145.13  achievement examination for their child to take.  The school 
145.14  must give the child the alternative examination within a 
145.15  reasonable period of time of when the test selected by the board 
145.16  is given.  School officials shall place children's test results 
145.17  in their education records. 
145.18     (b) Each local school board shall establish a written 
145.19  policy indicating what assistance the school district will make 
145.20  available to children and their parents when a child's total 
145.21  battery score on an achievement examination is at or below the 
145.22  30th percentile. 
145.23     (c) No state or local unit of government may enter into an 
145.24  exclusive agreement with a testing company to provide only a 
145.25  single form of an examination to the state or a local school 
145.26  district. 
145.27     Sec. 58.  Minnesota Statutes 1999 Supplement, section 
145.28  122A.09, subdivision 4, is amended to read: 
145.29     Subd. 4.  [LICENSE AND RULES.] (a) The board must adopt 
145.30  rules to license public school teachers and interns subject to 
145.31  chapter 14. 
145.32     (b) The board must adopt rules requiring a person to 
145.33  successfully complete a skills examination in reading, writing, 
145.34  and mathematics as a requirement for initial teacher licensure.  
145.35  Such rules must require college and universities offering a 
145.36  board approved teacher preparation program to provide remedial 
146.1   assistance to persons who did not achieve a qualifying score on 
146.2   the skills examination, including those for whom English is a 
146.3   second language. 
146.4      (c) The board must adopt rules to approve teacher 
146.5   preparation programs.  The board, upon the request of a 
146.6   post-secondary student preparing for teacher licensure or a 
146.7   licensed graduate of a teacher preparation program, shall assist 
146.8   in resolving a dispute between the person and a post-secondary 
146.9   institution providing a teacher preparation program when the 
146.10  dispute involves an institution's recommendation for licensure 
146.11  affecting the person or the person's credentials.  At the 
146.12  board's discretion, assistance may include the application of 
146.13  chapter 14. 
146.14     (d) The board must provide the leadership and shall adopt 
146.15  rules for the redesign of teacher education programs to 
146.16  implement a research based, results-oriented curriculum that 
146.17  focuses on the skills teachers need in order to be effective.  
146.18  The board shall implement new systems of teacher preparation 
146.19  program evaluation to assure program effectiveness based on 
146.20  proficiency of graduates in demonstrating attainment of program 
146.21  outcomes. 
146.22     (e) The board must adopt rules requiring successful 
146.23  completion of an examination of general pedagogical knowledge 
146.24  and examinations of licensure-specific teaching skills.  The 
146.25  rules shall be effective on the dates determined by the board, 
146.26  but not later than September 1, 2001. 
146.27     (f) The board must adopt rules requiring teacher educators 
146.28  to work directly with elementary or secondary school teachers in 
146.29  elementary or secondary schools to obtain periodic exposure to 
146.30  the elementary or secondary teaching environment. 
146.31     (g) The board must grant licenses to interns and to 
146.32  candidates for initial licenses. 
146.33     (h) The board must design and implement an assessment 
146.34  system which requires a candidate for an initial license and 
146.35  first continuing license to demonstrate the abilities necessary 
146.36  to perform selected, representative teaching tasks at 
147.1   appropriate levels. 
147.2      (i) The board must receive recommendations from local 
147.3   committees as established by the board for the renewal of 
147.4   teaching licenses. 
147.5      (j) The board must grant life licenses to those who qualify 
147.6   according to requirements established by the board, and suspend 
147.7   or revoke licenses pursuant to sections 122A.20 and 214.10.  The 
147.8   board must not establish any expiration date for application for 
147.9   life licenses.  
147.10     (k) The board must adopt rules that require all licensed 
147.11  teachers who are renewing their continuing license to include in 
147.12  their renewal requirements further preparation in the areas of 
147.13  using positive behavior interventions and in accommodating, 
147.14  modifying, and adapting curricula, materials, and strategies to 
147.15  appropriately meet the needs of individual students and ensure 
147.16  adequate progress toward the state's graduation rule North Star 
147.17  Standard.  The rules adopted under this paragraph apply to 
147.18  teachers who renew their licenses in year 2001 and later. 
147.19     (l) In adopting rules to license public school teachers who 
147.20  provide health-related services for disabled children, the board 
147.21  shall adopt rules consistent with license or registration 
147.22  requirements of the commissioner of health and the 
147.23  health-related boards who license personnel who perform similar 
147.24  services outside of the school. 
147.25     Sec. 59.  Minnesota Statutes 1999 Supplement, section 
147.26  126C.10, subdivision 14, is amended to read: 
147.27     Subd. 14.  [USES OF TOTAL OPERATING CAPITAL REVENUE.] Total 
147.28  operating capital revenue may be used only for the following 
147.29  purposes: 
147.30     (1) to acquire land for school purposes; 
147.31     (2) to acquire or construct buildings for school purposes; 
147.32     (3) to rent or lease buildings, including the costs of 
147.33  building repair or improvement that are part of a lease 
147.34  agreement; 
147.35     (4) to improve and repair school sites and buildings, and 
147.36  equip or reequip school buildings with permanent attached 
148.1   fixtures; 
148.2      (5) for a surplus school building that is used 
148.3   substantially for a public nonschool purpose; 
148.4      (6) to eliminate barriers or increase access to school 
148.5   buildings by individuals with a disability; 
148.6      (7) to bring school buildings into compliance with the 
148.7   Uniform Fire Code adopted according to chapter 299F; 
148.8      (8) to remove asbestos from school buildings, encapsulate 
148.9   asbestos, or make asbestos-related repairs; 
148.10     (9) to clean up and dispose of polychlorinated biphenyls 
148.11  found in school buildings; 
148.12     (10) to clean up, remove, dispose of, and make repairs 
148.13  related to storing heating fuel or transportation fuels such as 
148.14  alcohol, gasoline, fuel oil, and special fuel, as defined in 
148.15  section 296A.01; 
148.16     (11) for energy audits for school buildings and to modify 
148.17  buildings if the audit indicates the cost of the modification 
148.18  can be recovered within ten years; 
148.19     (12) to improve buildings that are leased according to 
148.20  section 123B.51, subdivision 4; 
148.21     (13) to pay special assessments levied against school 
148.22  property but not to pay assessments for service charges; 
148.23     (14) to pay principal and interest on state loans for 
148.24  energy conservation according to section 216C.37 or loans made 
148.25  under the Northeast Minnesota Economic Protection Trust Fund Act 
148.26  according to sections 298.292 to 298.298; 
148.27     (15) to purchase or lease interactive telecommunications 
148.28  equipment; 
148.29     (16) by board resolution, to transfer money into the debt 
148.30  redemption fund to:  (i) pay the amounts needed to meet, when 
148.31  due, principal and interest payments on certain obligations 
148.32  issued according to chapter 475; or (ii) pay principal and 
148.33  interest on debt service loans or capital loans according to 
148.34  section 126C.70; 
148.35     (17) to pay operating capital-related assessments of any 
148.36  entity formed under a cooperative agreement between two or more 
149.1   districts; 
149.2      (18) to purchase or lease computers and related materials, 
149.3   copying machines, telecommunications equipment, and other 
149.4   noninstructional equipment; 
149.5      (19) to purchase or lease assistive technology or equipment 
149.6   for instructional programs; 
149.7      (20) to purchase textbooks; 
149.8      (21) to purchase new and replacement library books or 
149.9   technology; 
149.10     (22) to purchase vehicles; 
149.11     (23) to purchase or lease telecommunications equipment, 
149.12  computers, and related equipment for integrated information 
149.13  management systems for: 
149.14     (i) managing and reporting learner outcome information for 
149.15  all students under a results-oriented graduation rule the 
149.16  state's North Star Standard of genuine academic excellence; 
149.17     (ii) managing student assessment, services, and achievement 
149.18  information required for students with individual education 
149.19  plans; and 
149.20     (iii) other classroom information management needs; and 
149.21     (24) to pay personnel costs directly related to the 
149.22  acquisition, operation, and maintenance of telecommunications 
149.23  systems, computers, related equipment, and network and 
149.24  applications software. 
149.25     Sec. 60.  Minnesota Statutes 1999 Supplement, section 
149.26  290.0674, subdivision 1, is amended to read: 
149.27     Subdivision 1.  [CREDIT ALLOWED.] An individual is allowed 
149.28  a credit against the tax imposed by this chapter in an amount 
149.29  equal to the amount paid for education-related expenses for a 
149.30  qualifying child in kindergarten through grade 12.  For purposes 
149.31  of this section, "education-related expenses" means: 
149.32     (1) fees or tuition for instruction by an instructor under 
149.33  section 120A.22, subdivision 10, clause (1), (2), (3), (4), or 
149.34  (5), or by a member of the Minnesota music teachers association, 
149.35  for instruction outside the regular school day or school year, 
149.36  including tutoring, driver's education offered as part of school 
150.1   curriculum, regardless of whether it is taken from a public or 
150.2   private entity or summer camps, in grade or age appropriate 
150.3   curricula that supplement curricula and instruction available 
150.4   during the regular school year, that assists a dependent to 
150.5   improve knowledge of core curriculum areas or to expand 
150.6   knowledge and skills under the graduation rule North Star 
150.7   Standard under section 120B.02 and that do not include the 
150.8   teaching of religious tenets, doctrines, or worship, the purpose 
150.9   of which is to instill such tenets, doctrines, or worship; 
150.10     (2) expenses for textbooks, including books and other 
150.11  instructional materials and equipment used in elementary and 
150.12  secondary schools in teaching only those subjects legally and 
150.13  commonly taught in public elementary and secondary schools in 
150.14  this state.  "Textbooks" does not include instructional books 
150.15  and materials used in the teaching of religious tenets, 
150.16  doctrines, or worship, the purpose of which is to instill such 
150.17  tenets, doctrines, or worship, nor does it include books or 
150.18  materials for extracurricular activities including sporting 
150.19  events, musical or dramatic events, speech activities, driver's 
150.20  education, or similar programs; 
150.21     (3) a maximum expense of $200 per family for personal 
150.22  computer hardware, excluding single purpose processors, and 
150.23  educational software that assists a dependent to improve 
150.24  knowledge of core curriculum areas or to expand knowledge and 
150.25  skills under the graduation rule North Star Standard under 
150.26  section 120B.02 purchased for use in the taxpayer's home and not 
150.27  used in a trade or business regardless of whether the computer 
150.28  is required by the dependent's school; and 
150.29     (4) the amount paid to others for transportation of a 
150.30  qualifying child attending an elementary or secondary school 
150.31  situated in Minnesota, North Dakota, South Dakota, Iowa, or 
150.32  Wisconsin, wherein a resident of this state may legally fulfill 
150.33  the state's compulsory attendance laws, which is not operated 
150.34  for profit, and which adheres to the provisions of the Civil 
150.35  Rights Act of 1964 and chapter 363. 
150.36     For purposes of this section, "qualifying child" has the 
151.1   meaning given in section 32(c)(3) of the Internal Revenue Code. 
151.2      Sec. 61.  [REPEALER.] 
151.3      (a) Minnesota Statutes 1998, section 120B.03, subdivision 
151.4   1, is repealed. 
151.5      (b) Minnesota Rules, parts 3501.0300; 3501.0310; 3501.0320; 
151.6   3501.0330; 3501.0340; 3501.0350; 3501.0360; 3501.0370; 
151.7   3501.0380; 3501.0390; 3501.0400; 3501.0410; 3501.0420; 
151.8   3501.0430; 3501.0440; 3501.0441; 3501.0442; 3501.0443; 
151.9   3501.0444; 3501.0445; 3501.0446; 3501.0447; 3501.0448; 
151.10  3501.0449; 3501.0450; 3501.0460; 3501.0461; 3501.0462; 
151.11  3501.0463; 3501.0464; 3501.0465; 3501.0466; 3501.0467; 
151.12  3501.0468; and 3501.0469, are repealed. 
151.13     Sec. 62.  [EFFECTIVE DATE.] 
151.14     Sections 25 to 61 are effective for the 2000-2001 school 
151.15  year and following. 
151.16                             ARTICLE 8 
151.17              KINDERGARTEN THROUGH GRADE 12 EDUCATION:
151.18                     NUTRITION; FUND TRANSFERS 
151.19     Section 1.  Minnesota Statutes 1998, section 124D.111, 
151.20  subdivision 1, is amended to read: 
151.21     Subdivision 1.  [SCHOOL LUNCH AID COMPUTATION.] Each school 
151.22  year, the state must pay districts participating in the national 
151.23  school lunch program the amount of 6.5 eight cents for each full 
151.24  paid, reduced, and free student lunch served to students in the 
151.25  district. 
151.26     Sec. 2.  Minnesota Statutes 1999 Supplement, section 
151.27  124D.1155, subdivision 2, is amended to read: 
151.28     Subd. 2.  [ELIGIBILITY.] An applicant for a grant must be a 
151.29  public or nonpublic elementary school that participates in the 
151.30  federal school breakfast and lunch programs.  The commissioner 
151.31  must give first priority to schools where at least 33 percent of 
151.32  the lunches the school served to children during the second 
151.33  preceding school year were provided free or at a reduced price.  
151.34  The commissioner must give second priority to all other public 
151.35  or nonpublic elementary schools. 
151.36     Sec. 3.  Laws 1999, chapter 241, article 6, section 14, 
152.1   subdivision 2, is amended to read: 
152.2      Subd. 2.  [ABATEMENT AID.] For abatement aid according to 
152.3   Minnesota Statutes, section 127A.49:  
152.4         $9,110,000 $9,577,000   .....     2000 
152.5         $8,947,000 $8,279,000   .....     2001 
152.6      The 2000 appropriation includes $1,352,000 for 1999 and 
152.7   $7,758,000 $8,225,000 for 2000.  
152.8      The 2001 appropriation includes $861,000 $914,000 for 2000 
152.9   and $8,086,000 $7,365,000 for 2001.  
152.10     Sec. 4.  Laws 1999, chapter 241, article 6, section 14, 
152.11  subdivision 3, is amended to read: 
152.12     Subd. 3.  [NONPUBLIC PUPIL AID.] For nonpublic pupil 
152.13  education aid according to Minnesota Statutes, sections 123B.40 
152.14  to 123B.48 and 123B.87: 
152.15       $10,996,000 $11,552,000   .....      2000 
152.16       $11,878,000 $13,448,000   .....      2001
152.17     The 2000 appropriation includes $970,000 for 1999 and 
152.18  $10,026,000 $10,582,000 for 2000. 
152.19     The 2001 appropriation includes $1,114,000 $1,175,000 for 
152.20  2000 and $10,764,000 $12,273,000 for 2001.  
152.21     The department shall recompute the maximum allotments 
152.22  established on March 1, 1999, for fiscal year 2000 under 
152.23  Minnesota Statutes, sections 123B.42, subdivision 3, and 
152.24  123B.44, subdivision 6, to reflect the amount appropriated in 
152.25  this subdivision for fiscal year 2000. 
152.26     Sec. 5.  Laws 1999, chapter 241, article 6, section 14, 
152.27  subdivision 4, is amended to read: 
152.28     Subd. 4.  [CONSOLIDATION TRANSITION AID.] For districts 
152.29  consolidating under Minnesota Statutes, section 123A.485: 
152.30       $451,000 $563,000      .....     2000
152.31       $375,000 $455,000      .....     2001
152.32     The 2000 appropriation includes $113,000 for 1999 and 
152.33  $338,000 $450,000 for 2000. 
152.34     The 2001 appropriation includes $37,000 $50,000 for 2000 
152.35  and $338,000 $405,000 for 2001. 
152.36     Any balance in the first year does not cancel but is 
153.1   available in the second year. 
153.2      Sec. 6.  Laws 1999, chapter 241, article 6, section 14, 
153.3   subdivision 5, is amended to read: 
153.4      Subd. 5.  [NONPUBLIC PUPIL TRANSPORTATION.] For nonpublic 
153.5   pupil transportation aid under Minnesota Statutes, section 
153.6   123B.92, subdivision 9: 
153.7        $18,586,000 $20,358,000   .....     2000 
153.8        $20,922,000 $21,333,000   .....     2001 
153.9      The 2000 appropriation includes $1,848,000 for 2000 1999 
153.10  and $16,738,000 $18,510,000 for 2001 2000. 
153.11     The 2001 appropriation includes $1,860,000 $2,057,000 for 
153.12  2000 and $19,062,000 $19,276,000 for 2001. 
153.13     Sec. 7.  [FUND TRANSFERS.] 
153.14     Subdivision 1.  [LAKEVILLE.] Notwithstanding Minnesota 
153.15  Statutes, section 123B.79 or 123B.80, on June 30, 2000, 
153.16  independent school district No. 194, Lakeville, may permanently 
153.17  transfer up to $1,000,000 from its reserved account for 
153.18  operating capital to the unreserved, undesignated general fund. 
153.19     Subd. 2.  [CHOKIO-ALBERTA.] (a) Notwithstanding Minnesota 
153.20  Statutes, section 123B.58, 123B.79, or 123B.80, on June 30, 
153.21  2000, upon approval of the commissioner of children, families, 
153.22  and learning, independent school district No. 771, 
153.23  Chokio-Alberta, may permanently transfer up to $121,000 from its 
153.24  reserved account for disabled accessibility to its undesignated 
153.25  general fund balance. 
153.26     (b) Prior to making the fund transfer, independent school 
153.27  district No. 771, Chokio-Alberta, must demonstrate to the 
153.28  commissioner's satisfaction that the district's school buildings 
153.29  are accessible to students or employees with disabilities. 
153.30     Subd. 3.  [MAHTOMEDI.] Notwithstanding Minnesota Statutes, 
153.31  sections 123B.79, 123B.80, and 475.61, subdivision 4, on June 
153.32  30, 2000, independent school district No. 832, Mahtomedi, may 
153.33  permanently transfer the balance of its debt redemption fund to 
153.34  its capital account in its general fund without making a levy 
153.35  reduction to purchase land for a school facility. 
153.36     Subd. 4.  [NORMAN COUNTY EAST.] Notwithstanding Minnesota 
154.1   Statutes, sections 123B.79, 123B.80, and 475.61, subdivision 4, 
154.2   on June 30, 2000, independent school district No. 2215, Norman 
154.3   County East, may permanently transfer up to $419,000 from its 
154.4   building construction fund to the reserved account for operating 
154.5   capital in the general fund without making a levy reduction. 
154.6      Subd. 5.  [BROWERVILLE.] Notwithstanding Minnesota 
154.7   Statutes, sections 123B.79, 123B.80, and 475.61, subdivision 4, 
154.8   on June 30, 2000, independent school district No. 787, 
154.9   Browerville, may permanently transfer up to $110,000 from its 
154.10  debt redemption fund to its general fund without making a levy 
154.11  reduction. 
154.12     Subd. 6.  [ST. FRANCIS.] Notwithstanding Minnesota 
154.13  Statutes, section 123B.53, on June 30, 2000, independent school 
154.14  district No. 15, St. Francis, may permanently transfer $534,000 
154.15  from its debt service fund to the general fund to help the 
154.16  district out of statutory operating debt without making a levy 
154.17  reduction. 
154.18     Subd. 7.  [STAPLES-MOTLEY.] Notwithstanding Minnesota 
154.19  Statutes, sections 123B.79, 123B.80, and 475.61, subdivision 4, 
154.20  on May 31, 2000, independent school district No. 2170, 
154.21  Staples-Motley, may permanently transfer up to $71,000 from the 
154.22  debt service account of the former independent school district 
154.23  No. 483, Motley, to the operating capitol fund of independent 
154.24  school district No. 2170, Staples-Motley, without making a levy 
154.25  reduction. 
154.26     Subd. 8.  [FERGUS FALLS.] Notwithstanding Minnesota 
154.27  Statutes, section 123B.79, 123B.80, or 475.61, subdivision 4, on 
154.28  June 30, 2000, independent school district No. 544, Fergus 
154.29  Falls, may permanently transfer up to $200,000 from the debt 
154.30  redemption fund to the general fund without making a levy 
154.31  reduction. 
154.32     Subd. 9.  [LAKEVIEW.] Notwithstanding any law to the 
154.33  contrary, independent school district No. 2167, Lakeview, is 
154.34  authorized to retain a cooperative facilities grant awarded in 
154.35  fiscal year 1995, and may permanently transfer that amount to 
154.36  its undesignated general fund balance, to be used to bring its 
155.1   bleachers into compliance with Minnesota Statutes, section 
155.2   16B.616. 
155.3      Subd. 10.  [WINONA.] Notwithstanding Minnesota Statutes, 
155.4   section 123B.79, 123B.80, 124D.135, 124D.20, or 126C.10, 
155.5   subdivision 14, on June 30, 2000, independent school district 
155.6   No. 861, Winona, may permanently transfer up to $300,000 from 
155.7   its reserved accounts and undesignated balance in the community 
155.8   service fund and up to $2,000,000 from its reserve for operating 
155.9   capital account in the general fund to the undesignated balance 
155.10  in its general fund. 
155.11     Subd. 11.  [PARKERS PRAIRIE.] Notwithstanding Minnesota 
155.12  Statutes, section 123B.79, 123B.80, or 475.61, subdivision 4, 
155.13  independent school district No. 547, Parkers Prairie, on June 
155.14  30, 2000, may permanently transfer up to $105,000 from the debt 
155.15  redemption fund to the general fund without making a levy 
155.16  reduction. 
155.17     <b>EFFECTIVE DATE:</b>  This section is effective the day 
155.18  following final enactment. 
155.19     Sec. 8.  [LEVY RESTORATION; INDEPENDENT SCHOOL DISTRICT NO. 
155.20  2859, GLENCOE-SILVER LAKE.] 
155.21     (a) Independent school district No. 2859, Glencoe-Silver 
155.22  Lake, may levy up to one-third of the total of the sum from 
155.23  paragraph (b) in each of the fiscal years 2002, 2003, and 2004. 
155.24     (b) For each of the fiscal years of 1999, 2000, and 2001, 
155.25  the amount of the levy is equal to the sum of: 
155.26     (1) the difference between the maximum amount of levy 
155.27  authorized by law for the fiscal year and the amount of levy 
155.28  certified by independent school district No. 2859, 
155.29  Glencoe-Silver Lake, under Minnesota Statutes 1996 and 1997 
155.30  Supplement, section 124.2725; 
155.31     (2) the difference between the maximum amount of levy 
155.32  authorized by law for the fiscal year and the amount of levy 
155.33  certified by independent school district No. 2859, 
155.34  Glencoe-Silver Lake, under Minnesota Statutes, section 126C.42; 
155.35  and 
155.36     (3) the difference between the maximum amount of levy 
156.1   authorized by law for the fiscal year and the amount of levy 
156.2   certified by independent school district No. 2859, 
156.3   Glencoe-Silver Lake, under Minnesota Statutes, section 126C.22. 
156.4      <b>EFFECTIVE DATE:</b>  This section is effective for taxes 
156.5   payable in 2001. 
156.6                              ARTICLE 9 
156.7               KINDERGARTEN THROUGH GRADE 12 EDUCATION:
156.8                              LIBRARIES 
156.9      Section 1.  Laws 1997, First Special Session chapter 4, 
156.10  article 8, section 4, as amended by Laws 1998, chapter 398, 
156.11  article 7, section 1, and Laws 1999, chapter 241, article 8, 
156.12  section 1, is amended to read: 
156.13     Sec. 4.  [LIBRARY PROJECT.] 
156.14     Subdivision 1.  [ESTABLISHMENT.] Notwithstanding law to the 
156.15  contrary and subject to approvals in subdivision 2, a public 
156.16  library may operate as a library project jointly with the school 
156.17  library at Nashwauk-Keewatin high school, located in the city of 
156.18  Nashwauk.  The public library is established to serve persons 
156.19  within the boundaries of independent school district No. 319, 
156.20  except the city of Keewatin. 
156.21     Subd. 2.  [APPROVALS.] Operation of the public library is 
156.22  contingent upon the governing bodies of cities, towns, and 
156.23  unorganized townships within the geographical boundaries of 
156.24  independent school district No. 319, except for the city of 
156.25  Keewatin, entering into a joint powers agreement under Minnesota 
156.26  Statutes 1998, section 471.59, to accomplish the purpose of this 
156.27  section.  The joint powers agreement must provide for continuing 
156.28  the library project if one party or more parties to the 
156.29  agreement withdraws from or fails to enter into the agreement.  
156.30  For the purposes of this subdivision, the Itasca county board is 
156.31  designated as the governing body for the unorganized townships. 
156.32     Subd. 3.  [BOARD; APPOINTMENTS.] The joint powers agreement 
156.33  in subdivision 2 shall provide for a library board of seven 
156.34  members as follows:  two members appointed by the school board 
156.35  of independent school district No. 319, one member appointed by 
156.36  each town board located within independent school district No. 
157.1   319 boundaries that is a member of the library district, one 
157.2   member appointed by the council of the city of Nashwauk, and one 
157.3   member appointed by the Itasca county board to represent the 
157.4   unorganized towns within the school district territory. 
157.5      Subd. 4.  [BOARD TERMS; COMPENSATION.] The library board 
157.6   members shall serve for the term of the library project.  An 
157.7   appointing authority may remove for misconduct or neglect any 
157.8   member it has appointed to the board and may replace that member 
157.9   by appointment.  Board members shall receive no compensation for 
157.10  their services but may be reimbursed for actual and necessary 
157.11  travel expenses incurred in the discharge of library board 
157.12  duties and activities. 
157.13     Subd. 5.  [FUNDING.] For taxes payable in 1998, 1999, 2000, 
157.14  2001, 2002, and 2003 only, and provided that the joint powers 
157.15  agreement under subdivision 2 has been executed by September 1 
157.16  of the previous calendar year, the library board may levy a tax 
157.17  in an amount up to $25,000 annually on property located within 
157.18  the boundaries of independent school district No. 319, except 
157.19  the city of Keewatin.  The Itasca county auditor shall collect 
157.20  the tax and distribute it to the library board.  The levy shall 
157.21  be assessed against the individual members of the joint powers 
157.22  agreement.  The money may be used for library staff and for the 
157.23  purchase of library materials, including computer software.  The 
157.24  levy must also fund the amount necessary to receive bookmobile 
157.25  services from the Arrowhead regional library system.  For taxes 
157.26  payable in 1998, 1999, 2000, 2001, 2002, and 2003 only, the 
157.27  county may not levy under Minnesota Statutes, section 134.07, 
157.28  for the areas described in this section. 
157.29     Subd. 6.  [BUILDING.] The school district shall provide the 
157.30  physical space and costs associated with operating the library 
157.31  including, but not limited to, heat, light, telephone service, 
157.32  and maintenance. 
157.33     Subd. 7.  [ORGANIZATION.] Immediately after appointment, 
157.34  the library board shall organize by electing one of its number 
157.35  as president and one as secretary, and it may appoint other 
157.36  officers it finds necessary. 
158.1      Subd. 8.  [DUTIES.] The library board shall adopt bylaws 
158.2   and regulations for the library and for the conduct of its 
158.3   business as may be expedient and conformable to law.  It shall 
158.4   have exclusive control of the expenditure of all money collected 
158.5   for it.  The library board shall appoint a qualified library 
158.6   director and other staff, establish the compensation of 
158.7   employees, and remove any of them for cause.  The library board 
158.8   may contract with the school board, the regional library board, 
158.9   or the city in which the library is located to provide 
158.10  personnel, fiscal, or administrative services.  The contract 
158.11  shall state the personnel, fiscal, and administrative services 
158.12  and payments to be provided by each party. 
158.13     Subd. 9.  [CRITERIA.] The library shall meet all 
158.14  requirements in statutes and rules applicable to public 
158.15  libraries and school media centers.  A media supervisor licensed 
158.16  by the board of teaching may be the director of the library.  
158.17  Public parking, restrooms, drinking water, and other necessities 
158.18  shall be easily accessible to library patrons. 
158.19     <b>EFFECTIVE DATE:</b>  This section is effective the day 
158.20  following final enactment. 
158.21     Sec. 2.  Laws 1999, chapter 241, article 8, section 4, 
158.22  subdivision 5, is amended to read: 
158.23     Subd. 5.  [LIBRARY FOR THE BLIND.] For compact shelving, 
158.24  technology, and staffing for the Minnesota library for the blind 
158.25  and physically handicapped: 
158.26       $212,000     .....     2000 
158.27     This appropriation is available until June 30, 2001. 
158.28     <b>EFFECTIVE DATE:</b>  This section is effective the day 
158.29  following final enactment. 
158.30                             ARTICLE 10 
158.31              KINDERGARTEN THROUGH GRADE 12 EDUCATION:
158.32                           STATE AGENCIES 
158.33     Section 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
158.34  LEARNING.] 
158.35     (a) The sums indicated in this section are appropriated 
158.36  from the general fund unless otherwise indicated to the 
159.1   department of children, families, and learning for the fiscal 
159.2   years designated. 
159.3        $32,316,000     .....     2000 
159.4        $29,785,000     .....     2001 
159.5      (b) Any balance the first year does not cancel but is 
159.6   available in the second year. 
159.7      (c) $21,000 each year is from the trunk highway fund. 
159.8      (d) $673,000 in 2000 and $678,000 in 2001 is for the board 
159.9   of teaching. 
159.10     (e) Notwithstanding Minnesota Statutes, section 15.53, 
159.11  subdivision 2, the commissioner of children, families, and 
159.12  learning may contract with a school district for a period no 
159.13  longer than five consecutive years to work in the development or 
159.14  implementation of the graduation rule.  The commissioner may 
159.15  contract for services and expertise as necessary.  The contracts 
159.16  are not subject to Minnesota Statutes, section 16B.06. 
159.17     (f) $165,000 in 2000 is for the state board of education.  
159.18  Any functions of the state board of education that are not 
159.19  specifically transferred to another agency are transferred to 
159.20  the department of children, families, and learning under 
159.21  Minnesota Statutes, section 15.039.  For the position that is 
159.22  classified, upon transferring the responsibilities, the current 
159.23  incumbent is appointed to the classified position without exam 
159.24  or probationary period. 
159.25     (g) $2,000,000 in 2000 is for litigation costs and may only 
159.26  be used for those purposes.  This appropriation is available 
159.27  until June 30, 2001.  This is a one-time appropriation. 
159.28     <b>EFFECTIVE DATE:</b>  This section is effective retroactive to 
159.29  July 1, 1999. 
159.30     Sec. 2.  Laws 1999, chapter 241, article 10, section 6, is 
159.31  amended to read: 
159.32     Sec. 6.  [APPROPRIATIONS; LOLA AND RUDY PERPICH MINNESOTA 
159.33  CENTER FOR ARTS EDUCATION.] 
159.34     The sums indicated in this section are appropriated from 
159.35  the general fund to the center for arts education for the fiscal 
159.36  years designated: 
160.1        $7,239,000     .....     2000
160.2        $7,400,000     .....     2001
160.3      Of each year's appropriation, $154,000 is to fund artist 
160.4   and arts organization participation in the education residency 
160.5   and education technology projects, $75,000 is for school support 
160.6   for the residency project, $121,000 is for further development 
160.7   of the partners:  arts and school for students (PASS) program, 
160.8   including pilots, and $220,000 $110,000 is to fund the center 
160.9   for arts education base for asset preservation and facility 
160.10  repair.  The guidelines for the education residency project and 
160.11  the pass program shall be developed and defined by the center 
160.12  for arts education in cooperation with the Minnesota arts 
160.13  board.  The Minnesota arts board shall participate in the review 
160.14  and allocation process.  The center for arts education and the 
160.15  Minnesota arts board shall cooperate to fund these projects. 
160.16     Any balance in the first year does not cancel but is 
160.17  available in the second year. 
160.18     Sec. 3.  [REPEALER.] 
160.19     Laws 1999, chapter 241, article 10, section 5, is repealed 
160.20  retroactive to July 1, 1999. 
160.21     <b>EFFECTIVE DATE:</b>  This section is effective retroactive to 
160.22  July 1, 1999. 
160.23                             ARTICLE 11 
160.24              KINDERGARTEN THROUGH GRADE 12 EDUCATION:
160.25          TECHNICAL, CONFORMING, AND CLARIFYING AMENDMENTS
160.26     Section 1.  Minnesota Statutes 1998, section 120A.22, 
160.27  subdivision 3, is amended to read: 
160.28     Subd. 3.  [PARENT DEFINED; RESIDENCY DETERMINED.] (a) In 
160.29  this section and sections 120A.24, and 120A.26, and 120A.41, 
160.30  "parent" means a parent, guardian, or other person having legal 
160.31  custody of a child.  
160.32     (b) In sections 125A.03 to 125A.24 and 125A.65, "parent" 
160.33  means a parent, guardian, or other person having legal custody 
160.34  of a child under age 18.  For an unmarried pupil age 18 or over, 
160.35  "parent" means the pupil unless a guardian or conservator has 
160.36  been appointed, in which case it means the guardian or 
161.1   conservator. 
161.2      (c) For purposes of sections 125A.03 to 125A.24 and 
161.3   125A.65, the school district of residence for an unmarried pupil 
161.4   age 18 or over who is a parent under paragraph (b) and who is 
161.5   placed in a center for care and treatment, shall be the school 
161.6   district in which the pupil's biological or adoptive parent or 
161.7   designated guardian resides. 
161.8      (d) For a married pupil age 18 or over, the school district 
161.9   of residence is the school district in which the married pupil 
161.10  resides. 
161.11     Sec. 2.  Minnesota Statutes 1998, section 122A.31, 
161.12  subdivision 4, is amended to read: 
161.13     Subd. 4.  [REIMBURSEMENT.] For purposes of revenue 
161.14  under sections 125A.77 and section 125A.78, the department of 
161.15  children, families, and learning must only reimburse school 
161.16  districts for the services of those interpreters/transliterators 
161.17  who satisfy the standards of competency under this section.  
161.18     Sec. 3.  Minnesota Statutes 1998, section 123B.02, is 
161.19  amended by adding a subdivision to read: 
161.20     Subd. 5a.  [TRESPASSES ON SCHOOL PROPERTY.] Trespasses on 
161.21  school property shall be governed according to section 609.605, 
161.22  subdivision 4. 
161.23     Sec. 4.  Minnesota Statutes 1998, section 123B.85, 
161.24  subdivision 1, is amended to read: 
161.25     Subdivision 1.  [APPLICATION.] The following words and 
161.26  terms in sections 121A.585, 121A.59, 123B.84 to 123B.87, and 
161.27  123B.89 to 123B.90, and 123B.91, shall have the following 
161.28  meanings ascribed to them. 
161.29     Sec. 5.  Minnesota Statutes 1999 Supplement, section 
161.30  124D.128, subdivision 2, is amended to read: 
161.31     Subd. 2.  [COMMISSIONER DESIGNATION.] An area learning 
161.32  center designated by the state must be a site.  To be 
161.33  designated, a district or center must demonstrate to the 
161.34  commissioner that it will: 
161.35     (1) provide a program of instruction that permits pupils to 
161.36  receive instruction throughout the entire year; and 
162.1      (2) maintain a record system that, for purposes of section 
162.2   124.17 126C.05, permits identification of membership 
162.3   attributable to pupils participating in the program.  The record 
162.4   system and identification must ensure that the program will not 
162.5   have the effect of increasing the total number of pupil units 
162.6   attributable to an individual pupil as a result of a learning 
162.7   year program. 
162.8      Sec. 6.  Minnesota Statutes 1998, section 124D.454, 
162.9   subdivision 2, is amended to read: 
162.10     Subd. 2.  [DEFINITIONS.] For the purposes of this 
162.11  section and section 125A.77, the definitions in this subdivision 
162.12  apply. 
162.13     (a) "Base year" for fiscal year 1996 means fiscal year 1995.
162.14  Base year for later fiscal years means the second fiscal year 
162.15  preceding the fiscal year for which aid will be paid. 
162.16     (b) "Basic revenue" has the meaning given it in section 
162.17  126C.10, subdivision 2.  For the purposes of computing basic 
162.18  revenue pursuant to this section, each child with a disability 
162.19  shall be counted as prescribed in section 126C.05, subdivision 1.
162.20     (c) "Average daily membership" has the meaning given it in 
162.21  section 126C.05. 
162.22     (d) "Program growth factor" means 1.00 for fiscal year 1998 
162.23  and later. 
162.24     (e) "Aid percentage factor" means 60 percent for fiscal 
162.25  year 1996, 70 percent for fiscal year 1997, 80 percent for 
162.26  fiscal year 1998, 90 percent for fiscal year 1999, and 100 
162.27  percent for fiscal year 2000 and later. 
162.28     Sec. 7.  Minnesota Statutes 1998, section 124D.454, 
162.29  subdivision 10, is amended to read: 
162.30     Subd. 10.  [EXCLUSION.] A district shall not receive aid 
162.31  pursuant to section 124D.453, or 125A.76, or 125A.77 for 
162.32  salaries, supplies, travel or equipment for which the district 
162.33  receives aid pursuant to this section. 
162.34     Sec. 8.  Minnesota Statutes 1999 Supplement, section 
162.35  125A.023, subdivision 3, is amended to read: 
162.36     Subd. 3.  [DEFINITIONS.] For purposes of this section and 
163.1   section 125A.027, the following terms have the meanings given 
163.2   them: 
163.3      (a) "Health plan" means: 
163.4      (1) a health plan under section 62Q.01, subdivision 3; 
163.5      (2) a county-based purchasing plan under section 256B.692; 
163.6      (3) a self-insured health plan established by a local 
163.7   government under section 471.617; or 
163.8      (4) self-insured health coverage provided by the state to 
163.9   its employees or retirees. 
163.10     (b) For purposes of this section, "health plan company" 
163.11  means an entity that issues a health plan as defined in 
163.12  paragraph (a). 
163.13     (c) "Individual interagency intervention plan" means a 
163.14  standardized written plan describing those programs or services 
163.15  and the accompanying funding sources available to eligible 
163.16  children with disabilities. 
163.17     (d) "Interagency intervention service system" means a 
163.18  system that coordinates services and programs required in state 
163.19  and federal law to meet the needs of eligible children with 
163.20  disabilities ages three to 21, including: 
163.21     (1) services provided under the following programs or 
163.22  initiatives administered by state or local agencies: 
163.23     (i) the maternal and child health program under title V of 
163.24  the Social Security Act, United States Code, title 42, sections 
163.25  701 to 709; 
163.26     (ii) the Individuals with Disabilities Education Act under 
163.27  United States Code, title 20, chapter 33, subchapter II, 
163.28  sections 1411 to 1420; 
163.29     (iii) medical assistance under the Social Security Act, 
163.30  United States Code, title 42, chapter 7, subchapter XIX, section 
163.31  1396, et seq.; 
163.32     (iv) the Developmental Disabilities Assistance and Bill of 
163.33  Rights Act, United States Code, title 42, chapter 75, subchapter 
163.34  II, sections 6021 to 6030, Part B; 
163.35     (v) the Head Start Act, United States Code, title 42, 
163.36  chapter 105, subchapter II, sections 9831 to 9852; 
164.1      (vi) rehabilitation services provided under chapter 268A; 
164.2      (vii) Juvenile Court Act services provided under sections 
164.3   260.011 to 260.91; 260B.001 to 260B.446; and 260C.001 to 
164.4   260C.451; 
164.5      (viii) the children's mental health collaboratives under 
164.6   section 245.493; 
164.7      (ix) the family service collaboratives under section 
164.8   124D.23; 
164.9      (x) the family community support plan under section 
164.10  245.4881, subdivision 4; 
164.11     (xi) the MinnesotaCare program under chapter 256L; 
164.12     (xii) the community health services grants under chapter 
164.13  145; 
164.14     (xiii) the Community Social Services Act funding under the 
164.15  Social Security Act, United States Code, title 42, sections 1397 
164.16  to 1397f; and 
164.17     (xiv) the community interagency transition interagency 
164.18  committees under section 125A.22; 
164.19     (2) services provided under a health plan in conformity 
164.20  with an individual family service plan or an individual 
164.21  education plan; and 
164.22     (3) additional appropriate services that local agencies and 
164.23  counties provide on an individual need basis upon determining 
164.24  eligibility and receiving a request from the interagency early 
164.25  intervention committee and the child's parent. 
164.26     (e) "Children with disabilities" has the meaning given in 
164.27  section 125A.02. 
164.28     (f) A "standardized written plan" means those individual 
164.29  services or programs available through the interagency 
164.30  intervention service system to an eligible child other than the 
164.31  services or programs described in the child's individual 
164.32  education plan or the child's individual family service plan. 
164.33     Sec. 9.  Minnesota Statutes 1999 Supplement, section 
164.34  125A.023, subdivision 5, is amended to read: 
164.35     Subd. 5.  [INTERVENTION DEMONSTRATION PROJECTS.] (a) The 
164.36  commissioner of children, families, and learning, based on 
165.1   recommendations from the state interagency committee, shall 
165.2   issue a request for proposals by January 1, 1999, for grants to 
165.3   the governing boards of interagency early intervention 
165.4   committees under section 125A.027 or a combination of one or 
165.5   more counties and school districts to establish five voluntary 
165.6   interagency intervention demonstration projects.  One grant 
165.7   shall be used to implement a coordinated service system for all 
165.8   eligible children with disabilities up to age five who received 
165.9   services under sections 125A.26 to 125A.48.  One grant shall be 
165.10  used to implement a coordinated service system for a population 
165.11  of minority children with disabilities from ages 12 to 21, who 
165.12  may have behavioral problems and are in need of transitional 
165.13  services.  Each project must be operational by July 1, 1999.  
165.14  The governing boards of the interagency early intervention 
165.15  committees and the counties and school districts receiving 
165.16  project grants must develop efficient ways to coordinate 
165.17  services and funding for children with disabilities ages three 
165.18  to 21, consistent with the requirements of this section and 
165.19  section 125A.027 and the guidelines developed by the state 
165.20  interagency committee under this section. 
165.21     (b) The state interagency committee shall evaluate the 
165.22  demonstration projects and provide the evaluation results to 
165.23  interagency early intervention committees. 
165.24     Sec. 10.  Minnesota Statutes 1999 Supplement, section 
165.25  125A.08, is amended to read: 
165.26     125A.08 [SCHOOL DISTRICT OBLIGATIONS.] 
165.27     (a) As defined in this section, to the extent required by 
165.28  federal law as of July 1, 2000, every district must ensure the 
165.29  following: 
165.30     (1) all students with disabilities are provided the special 
165.31  instruction and services which are appropriate to their needs.  
165.32  Where the individual education plan team has determined 
165.33  appropriate goals and objectives based on the student's needs, 
165.34  including the extent to which the student can be included in the 
165.35  least restrictive environment, and where there are essentially 
165.36  equivalent and effective instruction, related services, or 
166.1   assistive technology devices available to meet the student's 
166.2   needs, cost to the district may be among the factors considered 
166.3   by the team in choosing how to provide the appropriate services, 
166.4   instruction, or devices that are to be made part of the 
166.5   student's individual education plan.  The individual education 
166.6   plan team shall consider and may authorize services covered by 
166.7   medical assistance according to section 256B.0625, subdivision 
166.8   26.  The student's needs and the special education instruction 
166.9   and services to be provided must be agreed upon through the 
166.10  development of an individual education plan.  The plan must 
166.11  address the student's need to develop skills to live and work as 
166.12  independently as possible within the community.  By grade 9 or 
166.13  age 14, the plan must address the student's needs for transition 
166.14  from secondary services to post-secondary education and 
166.15  training, employment, community participation, recreation, and 
166.16  leisure and home living.  In developing the plan, districts must 
166.17  inform parents of the full range of transitional goals and 
166.18  related services that should be considered.  The plan must 
166.19  include a statement of the needed transition services, including 
166.20  a statement of the interagency responsibilities or linkages or 
166.21  both before secondary services are concluded; 
166.22     (2) children with a disability under age five and their 
166.23  families are provided special instruction and services 
166.24  appropriate to the child's level of functioning and needs; 
166.25     (3) children with a disability and their parents or 
166.26  guardians are guaranteed procedural safeguards and the right to 
166.27  participate in decisions involving identification, assessment 
166.28  including assistive technology assessment, and educational 
166.29  placement of children with a disability; 
166.30     (4) eligibility and needs of children with a disability are 
166.31  determined by an initial assessment or reassessment, which may 
166.32  be completed using existing data under United States Code, title 
166.33  20, section 33, et seq.; 
166.34     (5) to the maximum extent appropriate, children with a 
166.35  disability, including those in public or private institutions or 
166.36  other care facilities, are educated with children who are not 
167.1   disabled, and that special classes, separate schooling, or other 
167.2   removal of children with a disability from the regular 
167.3   educational environment occurs only when and to the extent that 
167.4   the nature or severity of the disability is such that education 
167.5   in regular classes with the use of supplementary services cannot 
167.6   be achieved satisfactorily; 
167.7      (6) in accordance with recognized professional standards, 
167.8   testing and evaluation materials, and procedures used for the 
167.9   purposes of classification and placement of children with a 
167.10  disability are selected and administered so as not to be 
167.11  racially or culturally discriminatory; and 
167.12     (7) the rights of the child are protected when the parents 
167.13  or guardians are not known or not available, or the child is a 
167.14  ward of the state. 
167.15     (b) For paraprofessionals employed to work in programs for 
167.16  students with disabilities, the school board in each district 
167.17  shall ensure that: 
167.18     (1) before or immediately upon employment, each 
167.19  paraprofessional develops sufficient knowledge and skills in 
167.20  emergency procedures, building orientation, roles and 
167.21  responsibilities, confidentiality, vulnerability, and 
167.22  reportability, among other things, to begin meeting the needs of 
167.23  the students with whom the paraprofessional works; 
167.24     (2) annual training opportunities are available to enable 
167.25  the paraprofessional to continue to further develop the 
167.26  knowledge and skills that are specific to the students with whom 
167.27  the paraprofessional works, including understanding 
167.28  disabilities, following lesson plans, and implementing follow-up 
167.29  instructional procedures and activities; and 
167.30     (3) a districtwide process obligates each paraprofessional 
167.31  to work under the ongoing direction of a licensed teacher and, 
167.32  where appropriate and possible, the supervision of a school 
167.33  nurse. 
167.34     Sec. 11.  Minnesota Statutes 1998, section 125A.76, 
167.35  subdivision 7, is amended to read: 
167.36     Subd. 7.  [REVENUE ALLOCATION FROM COOPERATIVE CENTERS AND 
168.1   INTERMEDIATES.] For the purposes of this section and section 
168.2   125A.77, a special education cooperative or an intermediate 
168.3   district must allocate its approved expenditures for special 
168.4   education programs among participating school districts. 
168.5      Sec. 12.  Minnesota Statutes 1999 Supplement, section 
168.6   125A.79, subdivision 8, is amended to read: 
168.7      Subd. 8.  [OUT-OF-STATE TUITION.] For children who are 
168.8   residents of the state, receive services under section 125A.76, 
168.9   subdivisions 1 and 2, and are placed in a care and treatment 
168.10  facility by court action in a state that does not have a 
168.11  reciprocity agreement with the commissioner under section 
168.12  125A.115 125A.155, the resident school district shall submit the 
168.13  balance of the tuition bills, minus the amount of the basic 
168.14  revenue, as defined by section 126C.10, subdivision 2, of the 
168.15  district for the child and the special education aid, and any 
168.16  other aid earned on behalf of the child. 
168.17     Sec. 13.  Minnesota Statutes 1999 Supplement, section 
168.18  125A.80, is amended to read: 
168.19     125A.80 [UNIFORM BILLING SYSTEM FOR THE EDUCATION COSTS OF 
168.20  OUT-OF-HOME PLACED STUDENTS.] 
168.21     The commissioner, in cooperation with the commissioners of 
168.22  human services and corrections and with input from appropriate 
168.23  billing system users, shall develop and implement a uniform 
168.24  billing system for school districts and other agencies, 
168.25  including private providers, who provide the educational 
168.26  services for students who are placed out of the home.  The 
168.27  uniform billing system must: 
168.28     (1) allow for the proper and timely billing to districts by 
168.29  service providers with a minimum amount of district 
168.30  administration; 
168.31     (2) allow districts to bill the state for certain types of 
168.32  special education and regular education services as provided by 
168.33  law; 
168.34     (3) provide flexibility for the types of services that are 
168.35  provided for children placed out of the home, including day 
168.36  treatment services; 
169.1      (4) allow the commissioner to track the type, cost, and 
169.2   quality of services provided for children placed out of the 
169.3   home; 
169.4      (5) conform existing special education and proposed regular 
169.5   education billing procedures; 
169.6      (6) provide a uniform reporting standard of per diem rates; 
169.7      (7) determine allowable expenses and maximum reimbursement 
169.8   rates for the state reimbursement of care and treatment services 
169.9   according to section 124D.701; and 
169.10     (8) provide a process for the district to appeal to the 
169.11  commissioner tuition bills submitted to districts and to the 
169.12  state. 
169.13     Sec. 14.  Minnesota Statutes 1999 Supplement, section 
169.14  125B.21, subdivision 3, is amended to read: 
169.15     Subd. 3.  [CRITERIA.] In addition to responsibilities of 
169.16  the council under Laws 1993, First Special Session chapter 2, as 
169.17  amended, the telecommunications council shall evaluate grant 
169.18  applications under section 124C.74 125B.20 and applications from 
169.19  district organizations using the following criteria: 
169.20     (1) evidence of cooperative arrangements with other 
169.21  post-secondary institutions, school districts, and community and 
169.22  regional libraries in the geographic region; 
169.23     (2) plans for shared classes and programs; 
169.24     (3) avoidance of network duplication; 
169.25     (4) evidence of efficiencies to be achieved in delivery of 
169.26  instruction due to use of telecommunications; 
169.27     (5) a plan for development of a list of all courses 
169.28  available in the region for delivery at a distance; 
169.29     (6) a plan for coordinating and scheduling courses; and 
169.30     (7) a plan for evaluation of costs, access, and outcomes. 
169.31     Sec. 15.  Minnesota Statutes 1998, section 126C.12, 
169.32  subdivision 2, is amended to read: 
169.33     Subd. 2.  [INSTRUCTOR DEFINED.] Primary instructor means a 
169.34  public employee licensed by the board of teaching whose duties 
169.35  are full-time instruction, excluding a teacher for whom 
169.36  categorical aids are received pursuant to sections section 
170.1   125A.76 and 125A.77.  Except as provided in section 122A.68, 
170.2   subdivision 6, instructor does not include supervisory and 
170.3   support personnel, except school social workers as defined in 
170.4   section 122A.15.  An instructor whose duties are less than 
170.5   full-time instruction must be included as an equivalent only for 
170.6   the number of hours of instruction in grades kindergarten 
170.7   through 6. 
170.8      Sec. 16.  Minnesota Statutes 1998, section 127A.05, 
170.9   subdivision 4, is amended to read: 
170.10     Subd. 4.  [ADMINISTRATIVE RULES.] The commissioner may 
170.11  adopt new rules and amend them or amend any existing rules only 
170.12  under specific authority and consistent with the requirements of 
170.13  chapter 14.  The commissioner may repeal any existing 
170.14  rules adopted by the commissioner.  Notwithstanding the 
170.15  provisions of section 14.05, subdivision 4, the commissioner may 
170.16  grant a variance to rules adopted by the commissioner upon 
170.17  application by a school district for purposes of implementing 
170.18  experimental programs in learning or school management.  This 
170.19  subdivision shall not prohibit the commissioner from making 
170.20  technical changes or corrections to adopted rules adopted by the 
170.21  commissioner. 
170.22     Sec. 17.  Minnesota Statutes 1998, section 127A.41, 
170.23  subdivision 8, is amended to read: 
170.24     Subd. 8.  [APPROPRIATION TRANSFERS.] If a direct 
170.25  appropriation from the general fund to the department for any 
170.26  education aid or grant authorized in this chapter and chapters 
170.27  122A, 123A, 123B, 124D, 126C, and 134, excluding appropriations 
170.28  under sections 124D.135, 124D.14, 124D.16, 124D.20, 124D.21, 
170.29  124D.22, 124D.52, 124D.53, 124D.54, 124D.55, and 124D.56, 
170.30  exceeds the amount required, the commissioner may transfer the 
170.31  excess to any education aid or grant appropriation that is 
170.32  insufficient.  However, section 126C.20 applies to a deficiency 
170.33  in the direct appropriation for general education aid.  Excess 
170.34  appropriations must be allocated proportionately among aids or 
170.35  grants that have insufficient appropriations.  The commissioner 
170.36  of finance shall make the necessary transfers among 
171.1   appropriations according to the determinations of the 
171.2   commissioner.  If the amount of the direct appropriation for the 
171.3   aid or grant plus the amount transferred according to this 
171.4   subdivision is insufficient, the commissioner shall prorate the 
171.5   available amount among eligible districts.  The state is not 
171.6   obligated for any additional amounts.  
171.7      Sec. 18.  Minnesota Statutes 1998, section 127A.41, 
171.8   subdivision 9, is amended to read: 
171.9      Subd. 9.  [APPROPRIATION TRANSFERS FOR COMMUNITY EDUCATION 
171.10  PROGRAMS.] If a direct appropriation from the general fund to 
171.11  the department of children, families, and learning for an 
171.12  education aid or grant authorized under section 
171.13  124D.135, 124D.14, 124D.16, 124D.20, 124D.21, 124D.22, 124D.52, 
171.14  124D.53, 124D.54, 124D.55, or 124D.56 exceeds the amount 
171.15  required, the commissioner of children, families, and learning 
171.16  may transfer the excess to any education aid or grant 
171.17  appropriation that is insufficiently funded under these sections.
171.18  Excess appropriations shall be allocated proportionately among 
171.19  aids or grants that have insufficient appropriations.  The 
171.20  commissioner of finance shall make the necessary transfers among 
171.21  appropriations according to the determinations of the 
171.22  commissioner of children, families, and learning.  If the amount 
171.23  of the direct appropriation for the aid or grant plus the amount 
171.24  transferred according to this subdivision is insufficient, the 
171.25  commissioner shall prorate the available amount among eligible 
171.26  districts.  The state is not obligated for any additional 
171.27  amounts. 
171.28     Sec. 19.  Minnesota Statutes 1999 Supplement, section 
171.29  181A.04, subdivision 6, is amended to read: 
171.30     Subd. 6.  A high school student under the age of 18 must 
171.31  not be permitted to work after 11:00 p.m. on an evening before a 
171.32  school day or before 5:00 a.m. on a school day, except as 
171.33  permitted by section 181A.07, subdivisions 1, 2, 3, and 4.  If a 
171.34  high school student under the age of 18 has supplied the 
171.35  employer with a note signed by the parent or guardian of the 
171.36  student, the student may be permitted to work until 11:30 p.m. 
172.1   on the evening before a school day and beginning at 4:30 a.m. on 
172.2   a school day. 
172.3      For the purpose of this subdivision, a high school student 
172.4   does not include a student enrolled in an alternative education 
172.5   program approved by the commissioner of children, families, and 
172.6   learning or an area learning center, including area learning 
172.7   centers under sections 123A.05 to 123A.08 or according to 
172.8   section 122A.164 122A.163. 
172.9      Sec. 20.  Laws 1999, chapter 241, article 1, section 69, is 
172.10  amended to read: 
172.11     Sec. 69.  [REPEALER.] 
172.12     (a) Minnesota Statutes 1998, sections 123B.89; and 123B.92, 
172.13  subdivisions 2, 4, 6, 7, 8, and 10, are repealed. 
172.14     (b) Minnesota Statutes 1998, section 120B.05, is repealed 
172.15  effective for revenue for fiscal year 2000. 
172.16     (c) Minnesota Statutes 1998, section 124D.65, subdivisions 
172.17  1, 2, and 3, are repealed effective for revenue for fiscal year 
172.18  2001. 
172.19     (d) Minnesota Statutes 1998, sections 124D.67; 126C.05, 
172.20  subdivision 4; and 126C.06, are repealed effective the day 
172.21  following final enactment. 
172.22     This appropriation is available until June 30, 2001. 
172.23     Sec. 21.  Laws 1999, chapter 241, article 9, section 49, is 
172.24  amended to read: 
172.25     Sec. 49.  [TRANSITION.] 
172.26     Notwithstanding Minnesota Statutes, section 15.0597, the 
172.27  terms of persons who are members appointed by the governor 
172.28  before the effective date of section 8 37, shall have their term 
172.29  end on July 31 of the year following the last year of their 
172.30  appointment. 
172.31     Sec. 22.  [REVISOR INSTRUCTION.] 
172.32     In the next and subsequent editions of Minnesota Statutes, 
172.33  the revisor shall renumber section 123B.02, subdivision 12, as 
172.34  120A.22, subdivision 1a.  The revisor shall correct all 
172.35  cross-references to be consistent with the renumbering. 
172.36     Sec. 23.  [REPEALER.] 
173.1      Laws 1999, chapter 241, article 9, sections 35 and 36, are 
173.2   repealed.  Laws 1999, chapter 245, article 4, section 3, is 
173.3   repealed. 
173.4                              ARTICLE 12 
173.5                           HIGHER EDUCATION 
173.6      Section 1.  Minnesota Statutes 1998, section 15A.081, 
173.7   subdivision 7b, is amended to read: 
173.8      Subd. 7b.  [HIGHER EDUCATION OFFICERS SERVICES OFFICE 
173.9   DIRECTOR.] The board of trustees of the Minnesota state colleges 
173.10  and universities and The higher education services council shall 
173.11  set the salary rates rate for, respectively, the chancellor of 
173.12  the Minnesota state colleges and universities and the director 
173.13  of the higher education services office.  The board or the 
173.14  council shall submit the proposed salary change to the 
173.15  legislative coordinating commission for approval, modification, 
173.16  or rejection in the manner provided in section 3.855.  
173.17     In deciding whether to recommend a salary increase, the 
173.18  governing board or council shall consider the performance of the 
173.19  chancellor or director, including the chancellor's or director's 
173.20  progress toward attaining affirmative action goals. 
173.21     <b>EFFECTIVE DATE:</b>  This section is effective the day 
173.22  following final enactment. 
173.23     Sec. 2.  Minnesota Statutes 1998, section 15A.081, is 
173.24  amended by adding a subdivision to read: 
173.25     Subd. 7c.  [MINNESOTA STATE COLLEGES AND UNIVERSITIES 
173.26  CHANCELLOR.] The board of trustees of the Minnesota state 
173.27  colleges and universities shall establish a salary range for the 
173.28  position of chancellor of the Minnesota state colleges and 
173.29  universities.  The board shall submit the proposed salary range 
173.30  to the legislative coordinating commission for approval, 
173.31  modification, or rejection in the manner provided in section 
173.32  3.855.  The board shall establish the salary for the chancellor 
173.33  within the approved salary range. 
173.34     In deciding whether to approve a salary increase, the board 
173.35  shall consider the performance of the chancellor, including the 
173.36  chancellor's progress toward attaining affirmative action goals. 
174.1      <b>EFFECTIVE DATE:</b>  This section is effective the day 
174.2   following final enactment. 
174.3      Sec. 3.  [16A.633] [CAPITAL FUNDING CONTINGENT ON 
174.4   MAINTAINING DATA.] 
174.5      Subdivision 1.  [STATE AGENCIES.] Each state agency shall 
174.6   provide to the commissioner of administration the data necessary 
174.7   for the commissioner to maintain the department's database on 
174.8   the location, description, and condition of state-owned 
174.9   facilities.  The data must be provided by December 15 each 
174.10  year.  The commissioner of administration must maintain both the 
174.11  current inventory data and historical data.  A state agency is 
174.12  not eligible to receive capital funding unless the agency has 
174.13  provided the data required. 
174.14     Subd. 2.  [MINNESOTA STATE COLLEGES AND UNIVERSITIES.] The 
174.15  board of trustees of the Minnesota state colleges and 
174.16  universities shall establish and maintain data on the location, 
174.17  description, and condition of board-owned facilities that is 
174.18  comparable with the database established by the department of 
174.19  administration.  The data must be updated annually and the board 
174.20  must maintain both current inventory data and historical data.  
174.21  The board is not eligible to receive capital funding unless the 
174.22  board has established and maintains the data required. 
174.23     Subd. 3.  [UNIVERSITY OF MINNESOTA.] The board of regents 
174.24  of the University of Minnesota is requested to establish and 
174.25  maintain data on the location, description, and condition of 
174.26  university-owned facilities that is comparable with the database 
174.27  established by the department of administration.  The university 
174.28  is requested to update the data annually and maintain both 
174.29  current inventory data and historical data.  The board of 
174.30  regents is not eligible to receive capital funding unless the 
174.31  board has established and maintains the data required. 
174.32     <b>EFFECTIVE DATE:</b>  This section is effective June 30, 2001. 
174.33     Sec. 4.  Minnesota Statutes 1998, section 16B.33, 
174.34  subdivision 2, is amended to read: 
174.35     Subd. 2.  [ORGANIZATION OF BOARD.] (a) [MEMBERSHIP.] The 
174.36  state designer selection board consists of five seven 
175.1   individuals, the majority of whom must be Minnesota residents.  
175.2   Each of the following three four organizations shall nominate 
175.3   one individual whose name and qualifications shall be submitted 
175.4   to the commissioner of administration for consideration:  the 
175.5   consulting engineers council of Minnesota after consultation 
175.6   with other professional engineering societies in the state; 
175.7   the AIA Minnesota society of architects; the Minnesota chapter 
175.8   of the associated general contractors or the associated builders 
175.9   and contractors, after consultation with other commercial 
175.10  contractor associations in the state; and the Minnesota board of 
175.11  the arts.  The commissioner may appoint the three four named 
175.12  individuals to the board but may reject a nominated individual 
175.13  and request another nomination.  The fifth member shall be a 
175.14  representative of the user agency, the University of Minnesota, 
175.15  or the Minnesota state colleges and universities, designated by 
175.16  the user agency.  The remaining two citizen members shall also 
175.17  be appointed by the commissioner.  
175.18     (b) [NONVOTING MEMBERS MEMBER.] In addition to the five 
175.19  seven members of the board, two one nonvoting members member 
175.20  representing the commissioner shall participate in the 
175.21  interviewing and selection of designers pursuant to this 
175.22  section.  One shall be a representative of the commissioner and 
175.23  shall participate in the interviewing and selection of designers 
175.24  for all projects.  The other shall be a representative of the 
175.25  user agency, who shall participate in the interviewing and 
175.26  selection of the designers for the project being undertaken by 
175.27  the user agency.  The commissioner shall appoint the 
175.28  representative of the user agency in consultation with the user 
175.29  agency.  
175.30     (c) [TERMS; COMPENSATION; REMOVAL; VACANCIES.] The 
175.31  membership terms, compensation, removal of members, and filling 
175.32  of vacancies on the board are as provided in section 15.0575.  
175.33  No individual may serve for more than two consecutive terms.  
175.34     (d) [OFFICERS, RULES.] At its first meeting, the board 
175.35  shall elect a voting member of the board as chair.  The board 
175.36  shall also elect other officers necessary for the conduct of its 
176.1   affairs.  The board shall adopt rules governing its operations 
176.2   and the conduct of its meetings.  The rules shall provide for 
176.3   the terms of the chair and other officers.  
176.4      (e) [MEETINGS.] The board shall meet as often as is 
176.5   necessary, not less than twice annually, in order to act 
176.6   expeditiously on requests submitted to it for selection of 
176.7   primary designers.  
176.8      (f) [OFFICE, STAFF, RECORDS.] The department of 
176.9   administration shall provide the board with suitable quarters to 
176.10  maintain an office, hold meetings, and keep records.  The 
176.11  commissioner shall designate an employee of the department of 
176.12  administration to serve as executive secretary to the board and 
176.13  shall furnish a secretarial staff to the board as necessary for 
176.14  the expeditious conduct of the board's duties and 
176.15  responsibilities.  
176.16     <b>EFFECTIVE DATE:</b>  This section is effective the day 
176.17  following final enactment. 
176.18     Sec. 5.  Minnesota Statutes 1998, section 16B.33, 
176.19  subdivision 3a, is amended to read: 
176.20     Subd. 3a.  [HIGHER EDUCATION PROJECTS.] (a) When the 
176.21  University of Minnesota or the Minnesota state colleges and 
176.22  universities undertakes a project involving construction or 
176.23  major remodeling, as defined in section 16B.335, subdivision 1, 
176.24  with an estimated cost greater than $2,000,000 or a planning 
176.25  project with estimated fees greater than $200,000, the system 
176.26  shall submit a written request for a primary designer to the 
176.27  commissioner, as provided in subdivision 3. 
176.28     (b) When the University of Minnesota or the Minnesota state 
176.29  colleges and universities undertakes a project involving 
176.30  renovation, repair, replacement, or rehabilitation, the system 
176.31  office may submit a written request for a primary designer to 
176.32  the commissioner as provided in subdivision 3. 
176.33     (c) For projects at the University of Minnesota or the 
176.34  state colleges and universities, the board shall select at least 
176.35  two primary designers under subdivision 4 for recommendation to 
176.36  the board of regents or the board of trustees.  Meeting records 
177.1   or written evaluations that document the final selection are 
177.2   public records.  The board of regents or the board of trustees 
177.3   shall notify the commissioner of the designer selected from the 
177.4   recommendations. 
177.5      <b>EFFECTIVE DATE:</b>  This section is effective the day 
177.6   following final enactment. 
177.7      Sec. 6.  Minnesota Statutes 1998, section 135A.031, 
177.8   subdivision 2, is amended to read: 
177.9      Subd. 2.  [APPROPRIATIONS FOR CERTAIN ENROLLMENTS.] The 
177.10  state share of the estimated expenditures for instruction shall 
177.11  vary for some categories of students, as designated in this 
177.12  subdivision. 
177.13     (a) The state must provide at least 67 percent of the 
177.14  estimated expenditures for: 
177.15     (1) students who resided in the state for at least one 
177.16  calendar year prior to applying for admission or dependent 
177.17  students whose parent or legal guardian resides in Minnesota at 
177.18  the time the student applies; 
177.19     (2) Minnesota residents who can demonstrate that they were 
177.20  temporarily absent from the state without establishing residency 
177.21  elsewhere; 
177.22     (3) residents of other states or provinces who are 
177.23  attending a Minnesota institution under a tuition reciprocity 
177.24  agreement; and 
177.25     (4) students who are Minnesota residents or residents of 
177.26  other states including students who have been in Minnesota as 
177.27  migrant farmworkers, as defined in the Code of Federal 
177.28  Regulations, title 20, section 633.104, over a period of at 
177.29  least two years immediately before admission or readmission to a 
177.30  Minnesota public post-secondary institution, or students who are 
177.31  dependents of such migrant farmworkers. 
177.32     (b) The definition of full year equivalent for purposes of 
177.33  the formula calculations in this chapter is twice the normal 
177.34  value for the following enrollments: 
177.35     (1) students who are concurrently enrolled in a public 
177.36  secondary school and for whom the institution is receiving any 
178.1   compensation under the Post-Secondary Enrollment Options Act; 
178.2   and 
178.3      (2) students enrolled under the student exchange program of 
178.4   the Midwest Compact. 
178.5      (c) The state may not provide any of the estimated 
178.6   expenditures for undergraduate students (1) who do not meet the 
178.7   residency criteria under paragraph (a), or (2) who have 
178.8   completed, without receiving a baccalaureate degree, 48 or more 
178.9   quarter credits or the equivalent, applicable toward the degree, 
178.10  beyond the number required for a baccalaureate in their major. 
178.11  Credits for courses in which a student received a grade of "F" 
178.12  or "W" shall be counted toward this maximum, as if the credits 
178.13  had been earned. 
178.14     <b>EFFECTIVE DATE:</b>  This section is effective July 1, 2003. 
178.15     Sec. 7.  Minnesota Statutes 1998, section 136A.125, is 
178.16  amended by adding a subdivision to read: 
178.17     Subd. 4c.  [SURPLUS FUNDS.] Any projected surplus of funds 
178.18  in the child care grant program in the first year of the 
178.19  biennium shall be used to augment the maximum award in 
178.20  subdivision 4 in the second year of the biennium. 
178.21     <b>EFFECTIVE DATE:</b>  This section is effective the day 
178.22  following final enactment. 
178.23     Sec. 8.  Minnesota Statutes 1998, section 136F.40, is 
178.24  amended to read: 
178.25     136F.40 [APPOINTMENT OF PERSONNEL.] 
178.26     Subdivision 1.  [APPOINTMENT PROCEDURE.] The board shall 
178.27  appoint all presidents, teachers, and other necessary employees 
178.28  and shall prescribe their duties consistent with chapter 43A.  
178.29  Salaries and benefits of employees must be determined according 
178.30  to chapters 43A and 179A and other applicable provisions.  
178.31     Subd. 2.  [COMPENSATION.] Notwithstanding any other 
178.32  provision to the contrary, when establishing compensation the 
178.33  board may provide, through a contract, a liquidated salary 
178.34  amount or other compensation if a contract with a chancellor or 
178.35  president is terminated by the board prior to its expiration. 
178.36     Any benefits shall be excluded in computation of 
179.1   retirement, insurance, and other benefits available through or 
179.2   from the state.  Any benefits or additional compensation must be 
179.3   as provided under the plan approved under section 43A.18, 
179.4   subdivision 3a. 
179.5      <b>EFFECTIVE DATE:</b>  This section is effective the day 
179.6   following final enactment. 
179.7      Sec. 9.  Minnesota Statutes 1998, section 136F.98, 
179.8   subdivision 1, is amended to read: 
179.9      Subdivision 1.  [ISSUANCE OF BONDS.] The board of trustees 
179.10  of the Minnesota state colleges and universities or a successor 
179.11  may issue additional revenue bonds under sections 136F.90 to 
179.12  136F.97 in an aggregate principal amount not 
179.13  exceeding $40,000,000, subject to the resolutions authorizing 
179.14  its outstanding revenue bonds $100,000,000, and payable from the 
179.15  revenue appropriated to the fund established by section 136F.94, 
179.16  and use the proceeds together with other public or private money 
179.17  that may otherwise become available to acquire land, and to 
179.18  acquire, construct, complete, remodel, and equip structures or 
179.19  portions thereof to be used for dormitory, residence hall, 
179.20  student union, food service, and related parking purposes at the 
179.21  state universities.  Bonds may be issued to refund previously 
179.22  issued bonds, and any such refunding bonds may be issued in 
179.23  addition to the bonds otherwise authorized by this subdivision.  
179.24  Before issuing the bonds or any part of them, the board shall 
179.25  consult with and obtain the advisory recommendations of the 
179.26  chairs of the house ways and means committee and the senate 
179.27  finance committee about the facilities to be financed by the 
179.28  bonds. 
179.29     <b>EFFECTIVE DATE:</b>  This section is effective the day 
179.30  following final enactment. 
179.31     Sec. 10.  [SCHOOL GUIDANCE COUNSELING INCENTIVES.] 
179.32     The higher education services office must recommend 
179.33  incentives to increase the number of guidance counselors in 
179.34  elementary and secondary schools.  
179.35     By January 15, 2001, the higher education services office 
179.36  must report to the legislature on the recommended incentives 
180.1   with a recommendation for funding. 
180.2      Sec. 11.  [STUDY OF EDUCATIONAL FOUNDATIONS.] 
180.3      Prior to November 15, 2000, the board of trustees of the 
180.4   Minnesota state colleges and universities shall study and make 
180.5   recommendations on the use of educational foundation support for 
180.6   additional compensation and benefits for the position of 
180.7   chancellor and campus president.  The study must include 
180.8   information about the use of foundation money for salary 
180.9   compensation at higher educational institutions in other 
180.10  states.  The study shall be provided to the house higher 
180.11  education finance committee, the house ways and means committee, 
180.12  the senate higher education finance division, the senate 
180.13  education finance committee, and the legislative coordinating 
180.14  commission.  
180.15     <b>EFFECTIVE DATE:</b>  This section is effective the day 
180.16  following final enactment. 
180.17     Sec. 12.  [INTERMEDIATE DISTRICT COORDINATED PLANNING.] 
180.18     (a) The board of trustees of the Minnesota state colleges 
180.19  and universities must initiate a planning process to plan and 
180.20  coordinate programs between the intermediate school districts 
180.21  and the Minnesota state college and university system. 
180.22     The board of trustees must include planning with 
180.23  intermediate school districts No. 287; No. 916; and No. 917. 
180.24     (b) The board of trustees and the intermediate school 
180.25  districts must study the compatibility of program offerings and 
180.26  develop a long-range facilities plan to address intermediate 
180.27  school district facility needs.  The results of the study must 
180.28  be reported to the education committees of the legislature by 
180.29  February 15, 2001. 
180.30     (c) The board of trustees must not extend or modify the 
180.31  joint powers agreements with the intermediate school districts 
180.32  for use of technical college facilities until after the study is 
180.33  reported to the legislature. 
180.34     <b>EFFECTIVE DATE:</b>  This section is effective the day 
180.35  following final enactment. 
180.36     Sec. 13.  [ALLOCATION FOR EXCESS HEALTH CARE COSTS.] 
181.1      The board of trustees must provide relief to campuses who 
181.2   have experienced health care cost increases of greater than 80 
181.3   percent above the systemwide average increase since 1996. 
181.4      Sec. 14.  [TRANSFER OF OUTREACH PROGRAMS.] 
181.5      Responsibility for outreach and early intervention programs 
181.6   administered by the higher education services office, including 
181.7   the Get Ready program, the community service learning grants, 
181.8   and the early intervention for college attendance programs is 
181.9   transferred to the department of children, families, and 
181.10  learning.  $897,000 in fiscal year 2001 is transferred from the 
181.11  higher education services office to the department of children, 
181.12  families, and learning in accordance with Minnesota Statutes, 
181.13  section 15.039. 
181.14     <b>EFFECTIVE DATE:</b>  This section is effective the day 
181.15  following final enactment. 
181.16     Sec. 15.  [MANAGEMENT ANALYSIS OF MINNESOTA STATE COLLEGES 
181.17  AND UNIVERSITIES.] 
181.18     The management analysis division of the department of 
181.19  administration must study the administrative structure of the 
181.20  Minnesota state colleges and universities and report to the 
181.21  legislature by September 15, 2000, with findings and 
181.22  recommendations.  The study must evaluate the effectiveness of 
181.23  the structure of the board of trustees as currently configured 
181.24  under Minnesota Statutes, sections 136F.02 to 136F.07, and make 
181.25  recommendations to improve the administration and management of 
181.26  the Minnesota state colleges and universities.  The study must 
181.27  include the: 
181.28     (1) size and composition of the board; 
181.29     (2) basis for appointing members of the board, including 
181.30  selection based on congressional districts, geographic 
181.31  alternatives to congressional districts, or other nongeographic 
181.32  criteria for selecting and appointing members; 
181.33     (3) length of terms of board members and the chair; 
181.34     (4) board's scope of control and authority, including its 
181.35  authority for contracting, employment responsibilities, and 
181.36  hiring and supervisory authority over campus presidents; 
182.1      (5) necessity for and the appropriate role of the staff for 
182.2   the board of trustees; and 
182.3      (6) other issues related to system administration and 
182.4   management. 
182.5      The board of trustees must contract with the management 
182.6   analysis division of the department of administration for the 
182.7   study under this section.  The contract must provide that the 
182.8   study begin as soon as possible after the effective date of this 
182.9   section. 
182.10     <b>EFFECTIVE DATE:</b>  This section is effective the day 
182.11  following final enactment.  
182.12     Sec. 16.  [APPROPRIATION.] 
182.13     $5,792,000 in fiscal year 2000 and $5,792,000 in fiscal 
182.14  year 2001 is appropriated from the general fund to the board of 
182.15  trustees of the Minnesota state colleges and universities as a 
182.16  deficiency appropriation to fund increased enrollments.  This 
182.17  appropriation is in addition to the appropriation in Laws 1999, 
182.18  chapter 214, article 1, section 3, subdivision 1.  This is a 
182.19  one-time appropriation.  
182.20     <b>EFFECTIVE DATE:</b>  This section is effective the day 
182.21  following final enactment. 
182.22     Sec. 17.  [REPEALER.] 
182.23     Minnesota Rules, parts 4830.9005 to 4830.9030, are repealed.