1.1                          A bill for an act 
  1.2             relating to education; providing for family and early 
  1.3             childhood education; providing for disclosure of data; 
  1.4             changing requirements for child care assistance and 
  1.5             child care programs; making changes to adult basic 
  1.6             education programs; modifying child care licensing and 
  1.7             inservice training requirements; changing eligibility 
  1.8             for individual development accounts; creating task 
  1.9             forces; authorizing commissioner of children, 
  1.10            families, and learning to make certain grants; 
  1.11            providing for kindergarten through grade 12 general 
  1.12            education, special programs, employment and 
  1.13            transitions, facilities and technology, educational 
  1.14            excellence and other policy, nutrition and other 
  1.15            programs, fund transfers, libraries, and technical, 
  1.16            conforming, and clarifying amendments; providing for 
  1.17            higher education; requiring a study and report; 
  1.18            providing relief to campuses experiencing increased 
  1.19            health care costs; appropriating money to Minnesota 
  1.20            state colleges and universities to fund increased 
  1.21            enrollment; appropriating money; amending Minnesota 
  1.22            Statutes 1998, sections 119B.03, by adding a 
  1.23            subdivision; 120A.22, subdivision 3; 120B.13, 
  1.24            subdivision 4; 121A.61, subdivision 3; 122A.31, 
  1.25            subdivision 4; 122A.68, subdivision 4; 123A.485, 
  1.26            subdivision 4; 123B.02, by adding a subdivision; 
  1.27            123B.04, subdivision 2; 123B.143, subdivision 1; 
  1.28            123B.51, subdivision 6; 123B.52, by adding a 
  1.29            subdivision; 123B.57, subdivision 1; 123B.71, 
  1.30            subdivision 10; 123B.72, subdivision 3; 123B.75, 
  1.31            subdivision 5; 123B.77, subdivision 3; 123B.79, 
  1.32            subdivision 7; 123B.85, subdivision 1; 123B.88, 
  1.33            subdivision 3; 123B.90, subdivision 1; 124D.03, 
  1.34            subdivision 1; 124D.081, subdivision 6; 124D.10, 
  1.35            subdivision 9; 124D.111, subdivision 1; 124D.16, 
  1.36            subdivision 1; 124D.44; 124D.454, subdivisions 2, 4, 
  1.37            6, 7, and 10; 124D.52, subdivisions 1, 2, 3, and by 
  1.38            adding subdivisions; 124D.86, subdivision 6, and by 
  1.39            adding subdivisions; 124D.88, by adding a subdivision; 
  1.40            124D.892, subdivision 3; 125A.76, subdivision 7; 
  1.41            126C.12, subdivision 2; 126C.16, subdivision 3; 
  1.42            126C.40, subdivision 1; 126C.69, subdivision 15; 
  1.43            127A.05, subdivision 4; 127A.41, subdivisions 8 and 9; 
  1.44            128D.11, subdivision 3; 136A.125, by adding a 
  1.45            subdivision; 169.447, by adding a subdivision; 
  1.46            169.448, subdivision 3; 171.06, subdivision 2; 
  2.1             171.321, subdivisions 2, 3, 4, and 5; 245A.14, 
  2.2             subdivision 4, and by adding subdivisions; and 471.15; 
  2.3             Minnesota Statutes 1999 Supplement, sections 13.32, 
  2.4             subdivision 3; 119B.011, subdivisions 12, 15, as 
  2.5             amended, and 20; 119B.03, subdivision 4; 119B.05, 
  2.6             subdivision 1; 120B.30, subdivision 1; 122A.23; 
  2.7             122A.31, subdivision 1; 122A.61, subdivision 1; 
  2.8             123B.54; 123B.83, subdivision 4; 123B.90, subdivision 
  2.9             2; 123B.91, subdivision 1; 124D.10, subdivisions 3, 8, 
  2.10            11, 15, and 23; 124D.11, subdivisions 1 and 6; 
  2.11            124D.1155, subdivision 2; 124D.128, subdivision 2; 
  2.12            124D.221, subdivision 2; 124D.453, subdivision 3; 
  2.13            124D.53, subdivision 3; 124D.65, subdivision 4; 
  2.14            124D.68, subdivision 9; 124D.84, subdivision 1; 
  2.15            124D.86, subdivisions 1 and 3; 124D.87; 124D.88, 
  2.16            subdivision 3; 125A.023, subdivisions 3 and 5; 
  2.17            125A.027, subdivision 3; 125A.08; 125A.15; 125A.51; 
  2.18            125A.76, subdivisions 1 and 2; 125A.79, subdivisions 
  2.19            2, 5, and 8; 125A.80; 125B.21, subdivision 3; 126C.05, 
  2.20            subdivisions 5 and 6; 126C.052; 126C.10, subdivisions 
  2.21            2, 13, 14, 23, 24, 25, and 26; 126C.12, subdivision 1; 
  2.22            126C.17, subdivision 9; 126C.40, subdivision 6; 
  2.23            126C.44, as amended; 127A.05, subdivision 6; 127A.42, 
  2.24            subdivision 3; 127A.45, subdivision 12a; 127A.51; 
  2.25            169.974, subdivision 2; 171.05, subdivision 2; 
  2.26            181A.04, subdivision 6; and 260C.143, subdivision 4; 
  2.27            Laws 1992, chapter 499, article 7, sections 31, as 
  2.28            amended; and 32; Laws 1997, chapter 157, section 71, 
  2.29            as amended; Laws 1997, First Special Session chapter 
  2.30            4, article 8, section 4, as amended; Laws 1998, First 
  2.31            Special Session chapter 1, article 1, sections 10, 
  2.32            subdivision 1, as amended; and 11, subdivisions 1 and 
  2.33            2, as amended; Laws 1999, chapter 205, article 1, 
  2.34            sections 65 and 71, subdivisions 3, 7, and 9; article 
  2.35            2, section 4, subdivisions 2 and 3; article 4, section 
  2.36            12, subdivisions 5, 6, and 7; chapter 214, article 1, 
  2.37            section 4, subdivision 2; 216, article 4, section 12; 
  2.38            chapter 241, article 1, sections 68, subdivisions 2, 
  2.39            4, and 5; 69; and 70; article 2, section 60, 
  2.40            subdivisions 7, 9, 12, 13, 14, 17, and 19; article 3, 
  2.41            sections 3, subdivisions 3 and 4; and 5; article 4, 
  2.42            sections 27, subdivisions 2, 3, 4, 5, 10, and 11; and 
  2.43            29; article 5, section 18, subdivisions 5 and 6; 
  2.44            article 6, section 14, subdivisions 2, 3, 4, and 5; 
  2.45            article 7, section 2, subdivisions 2 and 5; article 8, 
  2.46            section 4, subdivisions 4 and 5; article 9, section 
  2.47            49; and article 10, section 6; proposing coding for 
  2.48            new law in Minnesota Statutes, chapters 121A; 123B; 
  2.49            124D; 125B; and 134; repealing Minnesota Statutes 
  2.50            1998, section 124D.53; Minnesota Statutes 1999 
  2.51            Supplement, sections 124D.1155, subdivision 5; Laws 
  2.52            1998, First Special Session chapter 1, article 1, 
  2.53            section 10, subdivision 2, as amended; Laws 1999, 
  2.54            chapter 241, article 9, sections 35 and 36; article 
  2.55            10, section 5; chapter 245, article 4, section 3; 
  2.56            Minnesota Rules, parts 3535.9920; 4830.9005; 
  2.57            4830.9010; 4830.9015; 4830.9020; and 4830.9030. 
  2.58  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  2.59                             ARTICLE 1 
  2.60                FAMILY AND EARLY CHILDHOOD EDUCATION 
  2.61     Section 1.  Minnesota Statutes 1999 Supplement, section 
  2.62  13.32, subdivision 3, is amended to read: 
  2.63     Subd. 3.  [PRIVATE DATA; WHEN DISCLOSURE IS PERMITTED.] 
  2.64  Except as provided in subdivision 5, educational data is private 
  3.1   data on individuals and shall not be disclosed except as follows:
  3.2      (a) Pursuant to section 13.05; 
  3.3      (b) Pursuant to a valid court order; 
  3.4      (c) Pursuant to a statute specifically authorizing access 
  3.5   to the private data; 
  3.6      (d) To disclose information in health and safety 
  3.7   emergencies pursuant to the provisions of United States Code, 
  3.8   title 20, section 1232g(b)(1)(I) and Code of Federal 
  3.9   Regulations, title 34, section 99.36; 
  3.10     (e) Pursuant to the provisions of United States Code, title 
  3.11  20, sections 1232g(b)(1), (b)(4)(A), (b)(4)(B), (b)(1)(B), 
  3.12  (b)(3) and Code of Federal Regulations, title 34, sections 
  3.13  99.31, 99.32, 99.33, 99.34, and 99.35; 
  3.14     (f) To appropriate health authorities to the extent 
  3.15  necessary to administer immunization programs and for bona fide 
  3.16  epidemiologic investigations which the commissioner of health 
  3.17  determines are necessary to prevent disease or disability to 
  3.18  individuals in the public educational agency or institution in 
  3.19  which the investigation is being conducted; 
  3.20     (g) When disclosure is required for institutions that 
  3.21  participate in a program under title IV of the Higher Education 
  3.22  Act, United States Code, title 20, chapter 1092; 
  3.23     (h) To the appropriate school district officials to the 
  3.24  extent necessary under subdivision 6, annually to indicate the 
  3.25  extent and content of remedial instruction, including the 
  3.26  results of assessment testing and academic performance at a 
  3.27  post-secondary institution during the previous academic year by 
  3.28  a student who graduated from a Minnesota school district within 
  3.29  two years before receiving the remedial instruction; 
  3.30     (i) To appropriate authorities as provided in United States 
  3.31  Code, title 20, section 1232g(b)(1)(E)(ii), if the data concern 
  3.32  the juvenile justice system and the ability of the system to 
  3.33  effectively serve, prior to adjudication, the student whose 
  3.34  records are released; provided that the authorities to whom the 
  3.35  data are released submit a written request for the data that 
  3.36  certifies that the data will not be disclosed to any other 
  4.1   person except as authorized by law without the written consent 
  4.2   of the parent of the student and the request and a record of the 
  4.3   release are maintained in the student's file; 
  4.4      (j) To volunteers who are determined to have a legitimate 
  4.5   educational interest in the data and who are conducting 
  4.6   activities and events sponsored by or endorsed by the 
  4.7   educational agency or institution for students or former 
  4.8   students; 
  4.9      (k) To provide student recruiting information, from 
  4.10  educational data held by colleges and universities, as required 
  4.11  by and subject to Code of Federal Regulations, title 32, section 
  4.12  216; or 
  4.13     (l) To the juvenile justice system if information about the 
  4.14  behavior of a student who poses a risk of harm is reasonably 
  4.15  necessary to protect the health or safety of the student or 
  4.16  other individuals; or 
  4.17     (m) With respect to social security numbers of students in 
  4.18  the adult basic education system, to Minnesota state colleges 
  4.19  and universities and the department of economic security for the 
  4.20  purpose and in the manner described in section 124D.52, 
  4.21  subdivision 7. 
  4.22     Sec. 2.  Minnesota Statutes 1999 Supplement, section 
  4.23  119B.011, subdivision 12, is amended to read: 
  4.24     Subd. 12.  [EMPLOYMENT PLAN.] "Employment plan" means 
  4.25  employment of recipients financially eligible for child care 
  4.26  assistance, or other work activities defined under section 
  4.27  256J.49, approved in an employability development, job search 
  4.28  support plan, or employment plan that is developed by the county 
  4.29  agency, if it is acting as an employment and training service 
  4.30  provider, or by an employment and training service provider 
  4.31  certified by the commissioner of economic security or an 
  4.32  individual designated by the county to provide employment and 
  4.33  training services.  The plans and designation of a service 
  4.34  provider must meet the requirements of this chapter and chapter 
  4.35  256J or chapter 256K, Minnesota Rules, parts 3400.0010 to 
  4.36  3400.0230, and other programs that provide federal reimbursement 
  5.1   for child care services. 
  5.2      Sec. 3.  Minnesota Statutes 1999 Supplement, section 
  5.3   119B.011, subdivision 15, as amended by Laws 2000, chapter 260, 
  5.4   section 19, is amended to read: 
  5.5      Subd. 15.  [INCOME.] "Income" means earned or unearned 
  5.6   income received by all family members, including public 
  5.7   assistance cash benefits and at-home infant care subsidy 
  5.8   payments, unless specifically excluded.  The following are 
  5.9   excluded from income:  funds used to pay for health insurance 
  5.10  premiums for family members, Supplemental Security Income, 
  5.11  scholarships, work-study income, and grants that cover costs or 
  5.12  reimbursement for tuition, fees, books, and educational 
  5.13  supplies; student loans for tuition, fees, books, supplies, and 
  5.14  living expenses; state and federal earned income tax credits; 
  5.15  in-kind income such as food stamps, energy assistance, foster 
  5.16  care assistance, medical assistance, child care assistance, and 
  5.17  housing subsidies; earned income of full full-time or part-time 
  5.18  students up to the age of 19, who have not earned a high school 
  5.19  diploma or GED high school equivalency diploma including 
  5.20  earnings from summer employment; grant awards under the family 
  5.21  subsidy program; nonrecurring lump sum income only to the extent 
  5.22  that it is earmarked and used for the purpose for which it is 
  5.23  paid; and any income assigned to the public authority according 
  5.24  to section 256.741. 
  5.25     Sec. 4.  Minnesota Statutes 1999 Supplement, section 
  5.26  119B.011, subdivision 20, is amended to read: 
  5.27     Subd. 20.  [TRANSITION YEAR FAMILIES.] "Transition year 
  5.28  families" means families who have received MFIP assistance, or 
  5.29  who were eligible to receive MFIP assistance after choosing to 
  5.30  discontinue receipt of the cash portion of MFIP assistance under 
  5.31  section 256J.31, subdivision 12, for at least three of the last 
  5.32  six months before losing eligibility for MFIP due to increased 
  5.33  income from employment or child or spousal support or families 
  5.34  participating in work first under chapter 256K who meet the 
  5.35  requirements of section 256K.07.  Transition year child care may 
  5.36  be used to support employment or job search.  Transition year 
  6.1   child care is not available to families who have been 
  6.2   disqualified from MFIP due to fraud.  
  6.3      Sec. 5.  Minnesota Statutes 1999 Supplement, section 
  6.4   119B.03, subdivision 4, is amended to read: 
  6.5      Subd. 4.  [FUNDING PRIORITY.] (a) First priority for child 
  6.6   care assistance under the basic sliding fee program must be 
  6.7   given to eligible non-MFIP families who do not have a high 
  6.8   school or general equivalency diploma or who need remedial and 
  6.9   basic skill courses in order to pursue employment or to pursue 
  6.10  education leading to employment and who need child care 
  6.11  assistance to participate in the education program.  Within this 
  6.12  priority, the following subpriorities must be used: 
  6.13     (1) child care needs of minor parents; 
  6.14     (2) child care needs of parents under 21 years of age; and 
  6.15     (3) child care needs of other parents within the priority 
  6.16  group described in this paragraph. 
  6.17     (b) Second priority must be given to parents who have 
  6.18  completed their MFIP or work first transition year. 
  6.19     (c) Third priority must be given to families who are 
  6.20  eligible for portable basic sliding fee assistance through the 
  6.21  portability pool under subdivision 9. 
  6.22     Sec. 6.  Minnesota Statutes 1998, section 119B.03, is 
  6.23  amended by adding a subdivision to read: 
  6.24     Subd. 6a.  [ALLOCATION DUE TO INCREASED FUNDING.] When 
  6.25  funding increases are implemented within a calendar year, every 
  6.26  county must receive an allocation at least equal and 
  6.27  proportionate to its original allocation for the same time 
  6.28  period.  The remainder of the allocation must be recalculated to 
  6.29  reflect the funding increase, according to formulas identified 
  6.30  in subdivision 6. 
  6.31     Sec. 7.  Minnesota Statutes 1999 Supplement, section 
  6.32  119B.05, subdivision 1, is amended to read: 
  6.33     Subdivision 1.  [ELIGIBLE PARTICIPANTS.] Families eligible 
  6.34  for child care assistance under the MFIP child care program are: 
  6.35     (1) MFIP participants who are employed or in job search and 
  6.36  meet the requirements of section 119B.10; 
  7.1      (2) persons who are members of transition year families 
  7.2   under section 119B.011, subdivision 20; 
  7.3      (3) families who are participating in employment 
  7.4   orientation or job search, or other employment or training 
  7.5   activities that are included in an approved employability 
  7.6   development plan under chapter 256K; 
  7.7      (4) MFIP families who are participating in work job search, 
  7.8   job support, employment, or training activities as required in 
  7.9   their job search support or employment plan, or in appeals, 
  7.10  hearings, assessments, or orientations according to chapter 
  7.11  256J.  Child care assistance to support work activities as 
  7.12  described in section 256J.49 must be available according to 
  7.13  sections 119B.011, subdivision 11, 124D.13, 256E.08, and 611A.32 
  7.14  and titles IVA, IVB, IVE, and XX of the Social Security Act; and 
  7.15     (5) MFIP families who are participating in social services 
  7.16  activities under chapter 256J or 256K as required in their 
  7.17  employment plan approved according to chapter 256J or 256K; and 
  7.18     (6) families who are participating in programs as required 
  7.19  in tribal contracts under section 119B.02, subdivision 2, or 
  7.20  256.01, subdivision 2. 
  7.21     Sec. 8.  Minnesota Statutes 1998, section 124D.16, 
  7.22  subdivision 1, is amended to read: 
  7.23     Subdivision 1.  [PROGRAM REVIEW AND APPROVAL.] By February 
  7.24  15, 1992, for the 1991-1992 school year or by May 1 preceding 
  7.25  subsequent school years, a district must submit to the 
  7.26  commissioners of children, families, and learning, and health A 
  7.27  school district shall biennially by May 1 submit to the 
  7.28  commissioners of children, families, and learning and health the 
  7.29  program plan required under this subdivision.  As determined by 
  7.30  the commissioners, one-half of the districts shall first submit 
  7.31  the plan by May 1 of the 2000-2001 school year and one-half of 
  7.32  the districts shall first submit the plan by May 1 of the 
  7.33  2001-2002 school year.  The program plan must include: 
  7.34     (1) a description of the services to be provided; 
  7.35     (2) a plan to ensure children at greatest risk receive 
  7.36  appropriate services; 
  8.1      (3) a description of procedures and methods to be used to 
  8.2   coordinate public and private resources to maximize use of 
  8.3   existing community resources, including school districts, health 
  8.4   care facilities, government agencies, neighborhood 
  8.5   organizations, and other resources knowledgeable in early 
  8.6   childhood development; 
  8.7      (4) comments about the district's proposed program by the 
  8.8   advisory council required by section 124D.15, subdivision 7; and 
  8.9      (5) agreements with all participating service providers.  
  8.10     Each commissioner may review and comment on the program, 
  8.11  and make recommendations to the commissioner of children, 
  8.12  families, and learning, within 30 days of receiving the plan. 
  8.13     Sec. 9.  Minnesota Statutes 1999 Supplement, section 
  8.14  124D.221, subdivision 2, is amended to read: 
  8.15     Subd. 2.  [PRIORITY NEIGHBORHOODS.] For grants in 
  8.16  Minneapolis and St. Paul, the commissioner must give priority to 
  8.17  neighborhoods in this subdivision.  In Minneapolis, priority 
  8.18  neighborhoods are Near North, Hawthorne, Sumner-Glenwood, 
  8.19  Harrison, Jordan, Powderhorn, Central, Whittier, Cleveland, 
  8.20  McKinley, Waite Park, Sheridan, Holland, Lyndale, Folwell, and 
  8.21  Phillips.  In St. Paul, priority neighborhoods are 
  8.22  Summit-University, Thomas-Dale, North End, Payne-Phalen, Daytons 
  8.23  Bluff, and the West Side.  
  8.24     Sec. 10.  [124D.515] [ADULT BASIC EDUCATION AID 
  8.25  DEFINITIONS.] 
  8.26     Subdivision 1.  [APPLICABILITY.] The definitions in this 
  8.27  section apply to sections 124D.52 to 124D.531.  
  8.28     Subd. 2.  [ADULT BASIC EDUCATION CONSORTIUM.] "Adult basic 
  8.29  education consortium" means a voluntary association of school 
  8.30  districts, public agencies, or nonprofit organizations that work 
  8.31  together to provide coordinated adult basic education services 
  8.32  in a designated geographic area, and that act as a fiscal entity 
  8.33  providing adult basic education services. 
  8.34     Subd. 3.  [CONTACT HOURS.] (a) "Contact hours" means the 
  8.35  number of hours during which a student was engaged in learning 
  8.36  activities provided by an approved adult education program.  
  9.1   Contact hours excludes homework, but includes interactive 
  9.2   distance learning.  The commissioner may only reallocate contact 
  9.3   hours among programs to adjust for changes in program membership 
  9.4   between the first prior program year and the current program 
  9.5   year based on the actual contact hours reported for the first 
  9.6   prior program year. 
  9.7      (b) For revenue beginning in fiscal year 2002, contact 
  9.8   hours for a provider of adult basic education services funded in 
  9.9   fiscal year 2000, but not eligible for basic population aid in 
  9.10  fiscal year 2001, is computed by multiplying the provider's 
  9.11  contact hours by 1.03. 
  9.12     (c) For aid in fiscal year 2001, contact hours in fiscal 
  9.13  year 2000 equals the number of full-time equivalent learners 
  9.14  times the contact hours.  A level one full-time equivalent 
  9.15  learner is equal to 240 contact hours and a level two full-time 
  9.16  learner is equal to 408 contact hours. 
  9.17     Subd. 4.  [FIRST PRIOR PROGRAM YEAR.] "First prior program 
  9.18  year" means the period from May 1 of the second prior fiscal 
  9.19  year through April 30 of the first prior fiscal year. 
  9.20     Subd. 5.  [UNREIMBURSED EXPENSES.] "Unreimbursed expenses" 
  9.21  means allowable adult basic education expenses of a program that 
  9.22  are not covered by payments from federal or private for-profit 
  9.23  sources. 
  9.24     Sec. 11.  Minnesota Statutes 1998, section 124D.52, 
  9.25  subdivision 1, is amended to read: 
  9.26     Subdivision 1.  [PROGRAM REQUIREMENTS.] An adult basic 
  9.27  education program is a day or evening program offered by a 
  9.28  district that is for people over 16 years of age who do not 
  9.29  attend an elementary or secondary school.  The program offers 
  9.30  academic instruction necessary to earn a high school diploma or 
  9.31  equivalency certificate.  Tuition and fees may not be charged to 
  9.32  a learner for instruction paid under this section, except for a 
  9.33  security deposit to assure return of materials, supplies, and 
  9.34  equipment. 
  9.35     Each approved adult basic education program must develop a 
  9.36  memorandum of understanding with the local workforce development 
 10.1   centers located in the approved program's service delivery 
 10.2   area.  The memorandum of understanding must describe how the 
 10.3   adult basic education program and the workforce development 
 10.4   centers will cooperate and coordinate services to provide 
 10.5   unduplicated, efficient, and effective services to clients.  
 10.6      Adult basic education aid must be spent for adult basic 
 10.7   education purposes as specified in sections 124D.515 to 124D.531.
 10.8      Sec. 12.  Minnesota Statutes 1998, section 124D.52, 
 10.9   subdivision 2, is amended to read: 
 10.10     Subd. 2.  [PROGRAM APPROVAL.] (a) To receive aid under this 
 10.11  section, a district, a consortium of districts, or a private 
 10.12  nonprofit organization must submit an application by June 1 
 10.13  describing the program, on a form provided by the department.  
 10.14  The program must be approved by the commissioner according to 
 10.15  the following criteria:  
 10.16     (1) how the needs of different levels of learning will be 
 10.17  met; 
 10.18     (2) for continuing programs, an evaluation of results; 
 10.19     (3) anticipated number and education level of participants; 
 10.20     (4) coordination with other resources and services; 
 10.21     (5) participation in a consortium, if any, and money 
 10.22  available from other participants; 
 10.23     (6) management and program design; 
 10.24     (7) volunteer training and use of volunteers; 
 10.25     (8) staff development services; 
 10.26     (9) program sites and schedules; and 
 10.27     (10) program expenditures that qualify for aid; 
 10.28     (11) program ability to provide data related to learner 
 10.29  outcomes as required by law; and 
 10.30     (12) a copy of the memorandum of understanding described in 
 10.31  subdivision 1 submitted to the commissioner.  
 10.32     (b) The commissioner may grant adult basic education funds 
 10.33  to a private, nonprofit organization to provide services that 
 10.34  are not offered by a district or that are supplemental to a 
 10.35  district's program.  The program provided under this provision 
 10.36  must be approved and funded according to the same criteria used 
 11.1   for district programs. 
 11.2      (c) Adult basic education programs may be approved under 
 11.3   this subdivision for up to five years.  Five-year program 
 11.4   approval must be granted to an applicant who has demonstrated 
 11.5   the capacity to: 
 11.6      (1) offer comprehensive learning opportunities and support 
 11.7   service choices appropriate for and accessible to adults at all 
 11.8   basic skill need levels; 
 11.9      (2) provide a participatory and experiential learning 
 11.10  approach based on the strengths, interests, and needs of each 
 11.11  adult, that enables adults with basic skill needs to: 
 11.12     (i) identify, plan for, and evaluate their own progress 
 11.13  toward achieving their defined educational and occupational 
 11.14  goals; 
 11.15     (ii) master the basic academic reading, writing, and 
 11.16  computational skills, as well as the problem-solving, decision 
 11.17  making, interpersonal effectiveness, and other life and learning 
 11.18  skills they need to function effectively in a changing society; 
 11.19     (iii) locate and be able to use the health, governmental, 
 11.20  and social services and resources they need to improve their own 
 11.21  and their families' lives; and 
 11.22     (iv) continue their education, if they desire, to at least 
 11.23  the level of secondary school completion, with the ability to 
 11.24  secure and benefit from continuing education that will enable 
 11.25  them to become more employable, productive, and responsible 
 11.26  citizens; 
 11.27     (3) plan, coordinate, and develop cooperative agreements 
 11.28  with community resources to address the needs that the adults 
 11.29  have for support services, such as transportation, flexible 
 11.30  course scheduling, convenient class locations, and child care; 
 11.31     (4) collaborate with business, industry, labor unions, and 
 11.32  employment-training agencies, as well as with family and 
 11.33  occupational education providers, to arrange for resources and 
 11.34  services through which adults can attain economic 
 11.35  self-sufficiency; 
 11.36     (5) provide sensitive and well trained adult education 
 12.1   personnel who participate in local, regional, and statewide 
 12.2   adult basic education staff development events to master 
 12.3   effective adult learning and teaching techniques; 
 12.4      (6) participate in regional adult basic education peer 
 12.5   program reviews and evaluations; and 
 12.6      (7) submit accurate and timely performance and fiscal 
 12.7   reports; 
 12.8      (8) submit accurate and timely reports related to program 
 12.9   outcomes and learner follow-up information; and 
 12.10     (9) spend adult basic education aid on adult basic 
 12.11  education purposes only, which are specified in sections 
 12.12  124D.515 to 124D.531.  
 12.13     (c) The commissioner shall require each district to provide 
 12.14  notification by February 1, 2001, of its intent to apply for 
 12.15  funds under this section as a single district or as part of an 
 12.16  identified consortium of districts.  A district receiving funds 
 12.17  under this section must notify the commissioner by February 1 of 
 12.18  its intent to change its application status for applications due 
 12.19  the following June 1. 
 12.20     Sec. 13.  Minnesota Statutes 1998, section 124D.52, 
 12.21  subdivision 3, is amended to read: 
 12.22     Subd. 3.  [ACCOUNTS; REVENUE; AID.] Each district, group of 
 12.23  districts, or private nonprofit organization providing adult 
 12.24  basic education programs must establish and maintain accounts 
 12.25  separate from all other district accounts for the receipt and 
 12.26  disbursement of all funds related to these programs.  All 
 12.27  revenue received pursuant to this section must be utilized 
 12.28  solely for the purposes of adult basic education programs.  
 12.29  Federal and State aid plus levy must not equal more than 100 
 12.30  percent of the actual cost unreimbursed expenses of providing 
 12.31  these programs, excluding in-kind costs.  
 12.32     Sec. 14.  Minnesota Statutes 1998, section 124D.52, is 
 12.33  amended by adding a subdivision to read: 
 12.34     Subd. 6.  [COOPERATIVE ENGLISH AS A SECOND LANGUAGE AND 
 12.35  ADULT BASIC EDUCATION PROGRAMS.] (a) A school district, or adult 
 12.36  basic education consortium that receives revenue under section 
 13.1   124D.531, may deliver English as a second language, citizenship, 
 13.2   or other adult education programming in collaboration with 
 13.3   community-based and nonprofit organizations located within its 
 13.4   district or region, and with correctional institutions.  The 
 13.5   organization or correctional institution must have the 
 13.6   demonstrated capacity to offer education programs for adults.  
 13.7   Community-based or nonprofit organizations must meet the 
 13.8   criteria in paragraph (b), or have prior experience.  A 
 13.9   community-based or nonprofit organization or a correctional 
 13.10  institution may be reimbursed for unreimbursed expenses as 
 13.11  defined in section 124D.515, subdivision 5, for the 
 13.12  administration of English as a second language or adult basic 
 13.13  education programs, not to exceed eight percent of the total 
 13.14  funds provided by a school district or adult basic education 
 13.15  consortium.  The administrative reimbursement for a school 
 13.16  district or adult basic education consortium that delivers 
 13.17  services cooperatively with a community-based or nonprofit 
 13.18  organization or correctional institution is limited to five 
 13.19  percent of the program aid, not to exceed the unreimbursed 
 13.20  expenses of administering programs delivered by community-based 
 13.21  or nonprofit organizations or correctional institutions.  
 13.22     (b) A community-based organization or nonprofit 
 13.23  organization that delivers education services under this section 
 13.24  must demonstrate that it has met the following criteria: 
 13.25     (1) be legally established as a nonprofit organization; 
 13.26     (2) have an established system for fiscal accounting and 
 13.27  reporting that is consistent with the department of children, 
 13.28  families, and learning's adult basic education completion report 
 13.29  and reporting requirements under section 124D.531; 
 13.30     (3) require all instructional staff to complete a training 
 13.31  course in teaching adult learners; and 
 13.32     (4) develop a learning plan for each student that 
 13.33  identifies defined educational and occupational goals with 
 13.34  measures to evaluate progress.  
 13.35     Sec. 15.  Minnesota Statutes 1998, section 124D.52, is 
 13.36  amended by adding a subdivision to read: 
 14.1      Subd. 7.  [PERFORMANCE TRACKING SYSTEM.] (a) By July 1, 
 14.2   2000, each approved adult basic education program must develop 
 14.3   and implement a performance tracking system to provide 
 14.4   information necessary to comply with federal law and serve as 
 14.5   one means of assessing the effectiveness of adult basic 
 14.6   education programs.  The tracking system must be designed to 
 14.7   collect data on the following core outcomes for learners who 
 14.8   have completed participation in the adult basic education 
 14.9   program: 
 14.10     (1) demonstrated improvements in literacy skill levels in 
 14.11  reading, writing, speaking the English language, numeracy, 
 14.12  problem solving, English language acquisition, and other 
 14.13  literacy skills; 
 14.14     (2) placement in, retention in, or completion of 
 14.15  post-secondary education, training, unsubsidized employment, or 
 14.16  career advancement; and 
 14.17     (3) receipt of a secondary school diploma or its recognized 
 14.18  equivalent. 
 14.19     (b) A district, group of districts, state agency, or 
 14.20  private nonprofit organization providing an adult basic 
 14.21  education program may meet this requirement by developing a 
 14.22  tracking system based on either or both of the following 
 14.23  methodologies: 
 14.24     (1) conducting a reliable follow-up survey; or 
 14.25     (2) submitting student information, including social 
 14.26  security numbers for data matching. 
 14.27     Data related to obtaining employment must be collected in 
 14.28  the first quarter following program completion or can be 
 14.29  collected while the student is enrolled, if known.  Data related 
 14.30  to employment retention must be collected in the third quarter 
 14.31  following program exit.  Data related to any other specified 
 14.32  outcome may be collected at any time during a program year. 
 14.33     (c) When a student in a program is requested to provide the 
 14.34  student's social security number, the student must be notified 
 14.35  in a written form easily understandable to the student that: 
 14.36     (1) providing the social security number is optional and no 
 15.1   adverse action may be taken against the student if the student 
 15.2   chooses not to provide the social security number; 
 15.3      (2) the request is made under section 124D.52, subdivision 
 15.4   7; 
 15.5      (3) if the student provides the social security number, it 
 15.6   will be used to assess the effectiveness of the program by 
 15.7   tracking the student's subsequent career; and 
 15.8      (4) the social security number will be shared with the 
 15.9   department of children, families, and learning; Minnesota state 
 15.10  colleges and universities; and the department of economic 
 15.11  security in order to accomplish the purposes of this section and 
 15.12  will not be used for any other purpose or reported to any other 
 15.13  governmental entities. 
 15.14     (d) Annually a district, group of districts, state agency, 
 15.15  or private nonprofit organization providing programs under this 
 15.16  section must forward the tracking data collected to the 
 15.17  department of children, families, and learning.  For the 
 15.18  purposes of longitudinal studies on the employment status of 
 15.19  former students under this section, the department of children, 
 15.20  families, and learning must forward the social security numbers 
 15.21  to the department of economic security to electronically match 
 15.22  the social security numbers of former students with wage detail 
 15.23  reports filed under section 268.044.  The results of data 
 15.24  matches must, for purposes of this section and consistent with 
 15.25  the requirements of the United States Code, title 29, section 
 15.26  2871, of the Workforce Investment Act of 1998, be compiled in a 
 15.27  longitudinal form by the department of economic security and 
 15.28  released to the department of children, families, and learning 
 15.29  in the form of summary data that does not identify the 
 15.30  individual students.  The department of children, families, and 
 15.31  learning may release this summary data.  State funding for adult 
 15.32  basic education programs must not be based on the number or 
 15.33  percentage of students who decline to provide their social 
 15.34  security numbers or on whether the program is evaluated by means 
 15.35  of a follow-up survey instead of data matching. 
 15.36     Sec. 16.  [124D.521] [CONSORTIUM REQUIREMENTS.] 
 16.1      Each consortium, as defined under section 124D.515, 
 16.2   subdivision 1, must meet at least twice per year to develop and 
 16.3   amend as necessary an annual consortium agreement signed by all 
 16.4   members and filed with the department of children, families, and 
 16.5   learning that at a minimum includes:  
 16.6      (1) a description of the members and fiscal agent of the 
 16.7   consortium; 
 16.8      (2) a description of the contributions of each member of 
 16.9   the consortium and the process for distributing state aid among 
 16.10  the members; and 
 16.11     (3) the state adult basic education assurances from the 
 16.12  annual adult basic education program application. 
 16.13     As a condition of membership in a consortium, each member 
 16.14  must make a documented contribution toward the cost of adult 
 16.15  basic education programming, either as a direct financial 
 16.16  contribution, or an in-kind contribution. 
 16.17     Each consortium's designated fiscal agent must: 
 16.18     (1) collect data from consortium members; 
 16.19     (2) submit required performance reports and fiscal reports 
 16.20  to the state; 
 16.21     (3) receive state adult basic education aid under section 
 16.22  124D.531 for adult basic education programming delivered by the 
 16.23  consortium; and 
 16.24     (4) distribute state adult basic education aid to members 
 16.25  of the consortium according to the consortium agreement. 
 16.26     Sec. 17.  [124D.522] [ADULT BASIC EDUCATION SUPPLEMENTAL 
 16.27  SERVICE GRANTS.] 
 16.28     (a) The commissioner, in consultation with the policy 
 16.29  review task force under section 124D.521, may make grants to 
 16.30  nonprofit organizations to provide services that are not offered 
 16.31  by a district adult basic education program or that are 
 16.32  supplemental to either the statewide adult basic education 
 16.33  program, or a district's adult basic education program.  The 
 16.34  commissioner may make grants for:  staff development for adult 
 16.35  basic education teachers and administrators; training for 
 16.36  volunteer tutors; training, services, and materials for serving 
 17.1   disabled students through adult basic education programs; 
 17.2   statewide promotion of adult basic education services and 
 17.3   programs; development and dissemination of instructional and 
 17.4   administrative technology for adult basic education programs; 
 17.5   programs which primarily serve communities of color; adult basic 
 17.6   education distance learning projects, including television 
 17.7   instruction programs; and other supplemental services to support 
 17.8   the mission of adult basic education and innovative delivery of 
 17.9   adult basic education services.  
 17.10     (b) The commissioner must establish eligibility criteria 
 17.11  and grant application procedures.  Grants under this section 
 17.12  must support services throughout the state, focus on educational 
 17.13  results for adult learners, and promote outcome-based 
 17.14  achievement through adult basic education programs.  The 
 17.15  commissioner may make grants under this section from funds 
 17.16  specifically appropriated for supplemental service grants.  Up 
 17.17  to one-third of the appropriation for supplemental service 
 17.18  grants must be used for grants for adult basic education 
 17.19  programs to encourage and support innovations in adult basic 
 17.20  education instruction and service delivery.  A grant to a single 
 17.21  organization cannot exceed $100,000.  Nothing in this section 
 17.22  prevents an approved adult basic education program from using 
 17.23  state or federal aid to purchase supplemental services. 
 17.24     Sec. 18.  Minnesota Statutes 1999 Supplement, section 
 17.25  124D.53, subdivision 3, is amended to read: 
 17.26     Subd. 3.  [AID.] For fiscal year 2000, adult basic 
 17.27  education aid for each approved program equals $2,295 for fiscal 
 17.28  year 2000 and $2,338 for fiscal year 2001 and later fiscal 
 17.29  years $1,767 times the number of full-time equivalent students 
 17.30  in its adult basic education program during the first prior 
 17.31  program year.  
 17.32     Sec. 19.  [124D.531] [ADULT BASIC EDUCATION AID.] 
 17.33     Subdivision 1.  [STATE TOTAL ADULT BASIC EDUCATION AID.] (a)
 17.34  The state total adult basic education aid for fiscal year 2001 
 17.35  equals $30,157,000.  The state total adult basic education aid 
 17.36  for later years equals: 
 18.1      (1) the state total adult basic education aid for the 
 18.2   preceding fiscal year; times 
 18.3      (2) the lesser of: 
 18.4      (i) 1.08, or 
 18.5      (ii) the greater of 1.00 or the ratio of the state total 
 18.6   contact hours in the first prior program year to the state total 
 18.7   contact hours in the second prior program year. 
 18.8      (b) The state total adult basic education aid, excluding 
 18.9   basic population aid, equals the difference between the amount 
 18.10  computed in paragraph (a), and the state total basic population 
 18.11  aid under subdivision 2. 
 18.12     Subd. 2.  [BASIC POPULATION AID.] A district is eligible 
 18.13  for basic population aid if the district has a basic service 
 18.14  level approved by the commissioner under section 124D.52, 
 18.15  subdivision 5, or is a member of a consortium with an approved 
 18.16  basic service level.  Basic population aid is equal to the 
 18.17  greater of $4,000 or $1.80 times the population of the district. 
 18.18  District population is determined according to section 275.14. 
 18.19     Subd. 3.  [PROGRAM REVENUE.] Adult basic education programs 
 18.20  established under section 124D.52 and approved by the 
 18.21  commissioner are eligible for revenue under this subdivision.  
 18.22  For fiscal year 2001 and later, adult basic education revenue 
 18.23  for each approved program equals the sum of: 
 18.24     (1) the basic population aid under subdivision 2 for 
 18.25  districts participating in the program during the current 
 18.26  program year; plus 
 18.27     (2) 84 percent times the amount computed in subdivision 1, 
 18.28  paragraph (b), times the ratio of the contact hours for students 
 18.29  participating in the program during the first prior program year 
 18.30  to the state total contact hours during the first prior program 
 18.31  year; plus 
 18.32     (3) eight percent times the amount computed in subdivision 
 18.33  1, paragraph (b), times the ratio of the enrollment of students 
 18.34  with limited English proficiency during the prior school year in 
 18.35  districts participating in the program during the current 
 18.36  program year to the state total enrollment of students with 
 19.1   limited English proficiency during the prior school year in 
 19.2   districts participating in adult basic education programs during 
 19.3   the current program year; plus 
 19.4      (4) eight percent times the amount computed in subdivision 
 19.5   1, paragraph (b), times the ratio of the latest federal census 
 19.6   count of the number of adults aged 20 or older with no diploma 
 19.7   residing in the districts participating in the program during 
 19.8   the current program year to the latest federal census count of 
 19.9   the state total number of adults aged 20 or older with no 
 19.10  diploma residing in the districts participating in adult basic 
 19.11  education programs during the current program year. 
 19.12     Subd. 4.  [ADULT BASIC EDUCATION PROGRAM AID LIMIT.] (a) 
 19.13  Notwithstanding subdivisions 2 and 3, the total adult basic 
 19.14  education aid for a program per prior year contact hour must not 
 19.15  exceed four times the rate per prior year contact hour computed 
 19.16  under subdivision 3, clause (2). 
 19.17     (b) For fiscal year 2002 and later, the aid for a program 
 19.18  under subdivision 3, clause (2), adjusted for changes in program 
 19.19  membership, must not exceed the aid for that program under 
 19.20  subdivision 3, clause (2), for the first preceding fiscal year 
 19.21  by more than the greater of 17 percent or $20,000. 
 19.22     (c) Adult basic education aid is payable to a program for 
 19.23  unreimbursed costs. 
 19.24     Subd. 5.  [AID GUARANTEE.] Notwithstanding subdivisions 1, 
 19.25  3, and 4, for fiscal year 2001, any adult basic education 
 19.26  program qualifying for aid under this section, that receives 
 19.27  less state aid than in fiscal year 2000 must receive additional 
 19.28  aid equal to the difference between its fiscal year 2000 aid and 
 19.29  its fiscal year 2001 aid. 
 19.30     Subd. 6.  [PAYMENT OF AID TO FISCAL AGENT.] (a) Except as 
 19.31  provided in paragraph (b), adult basic education aid must be 
 19.32  paid directly to the fiscal agent of each approved program.  An 
 19.33  approved program must have only one fiscal agent. 
 19.34     (b) A district that is part of a consortium may request 
 19.35  direct payment of basic population aid under subdivision 2.  The 
 19.36  district must make a written request to the commissioner by June 
 20.1   15 for aid payments the following fiscal year.  The request must 
 20.2   include certification that: 
 20.3      (1) the district will deposit direct aid payments in a 
 20.4   separate adult basic education account; and 
 20.5      (2) the district will use direct aid payments only for 
 20.6   adult basic education instruction. 
 20.7      Subd. 7.  [PROGRAM AUDITS.] Programs that receive aid under 
 20.8   this section must maintain records that support the aid 
 20.9   payments.  The commissioner may audit these records upon 
 20.10  request.  The commissioner must establish procedures for 
 20.11  conducting fiscal audits of adult basic education programs 
 20.12  according to the schedule in this subdivision.  In calendar year 
 20.13  2002, the commissioner must audit one-half of approved adult 
 20.14  basic education programs that received aid for fiscal year 2001, 
 20.15  and in calendar year 2003, the commissioner must audit the 
 20.16  remaining unaudited programs for aid received in fiscal year 
 20.17  2002.  Beginning with fiscal year 2004, the commissioner must, 
 20.18  at a minimum, audit each adult basic education program once 
 20.19  every five years.  The commissioner must establish procedures to 
 20.20  reconcile any discrepancies between aid payments based on 
 20.21  information reported to the commissioner and aid estimates based 
 20.22  on a program audit. 
 20.23     Subd. 8.  [ADMINISTRATIVE CAP.] A consortium or district 
 20.24  shall not spend more than five percent of the consortium or 
 20.25  district's total adult basic education aid on administrative 
 20.26  costs. 
 20.27     Subd. 9.  [FISCAL REPORTS.] Programs that receive aid under 
 20.28  this section must submit an annual report to the commissioner 
 20.29  that includes revenue and expense reports for each district and 
 20.30  program, including instructional services offered in partnership 
 20.31  with businesses and nonprofit organizations. 
 20.32     <b>EFFECTIVE DATE:</b>  This section is effective for revenue for 
 20.33  fiscal years beginning with 2001. 
 20.34     Sec. 20.  Minnesota Statutes 1998, section 245A.14, 
 20.35  subdivision 4, is amended to read: 
 20.36     Subd. 4.  [SPECIAL FAMILY DAY CARE HOMES.] Nonresidential 
 21.1   child care programs serving 14 or fewer children that are 
 21.2   conducted at a location other than the license holder's own 
 21.3   residence shall be licensed under this section and the rules 
 21.4   governing family day care or group family day care if:  
 21.5      (a) the license holder is the primary provider of care and 
 21.6   the nonresidential child care program is conducted in a dwelling 
 21.7   that is located on a residential lot; or 
 21.8      (b) the license holder is an employer who may or may not be 
 21.9   the primary provider of care, and the purpose for the child care 
 21.10  program is to provide child care services to children of the 
 21.11  license holder's employees; or 
 21.12     (c) the license holder is a church or religious 
 21.13  organization. 
 21.14     Sec. 21.  Minnesota Statutes 1998, section 245A.14, is 
 21.15  amended by adding a subdivision to read: 
 21.16     Subd. 8.  [EXPERIENCED AIDES; CHILD CARE CENTERS.] (a) An 
 21.17  individual employed as an aide at a child care center may work 
 21.18  with children without being directly supervised for up to 25 
 21.19  percent of the individual's daily work shift if: 
 21.20     (1) a teacher is in the building; 
 21.21     (2) the individual has received first aid training within 
 21.22  the last three years; and 
 21.23     (3) the individual is at least 20 years old and has at 
 21.24  least 4,160 hours of child care experience as defined in section 
 21.25  245A.02, subdivision 6b. 
 21.26     (b) The use of an experienced aide working without direct 
 21.27  supervision under paragraph (a) is limited to 25 percent of each 
 21.28  classroom's daily hours of operation. 
 21.29     (c) A child care center that uses experienced aides under 
 21.30  this subdivision must notify the commissioner once per year.  
 21.31  The notification must indicate the approximate number of hours 
 21.32  per classroom per month that this subdivision is used.  Upon 
 21.33  enrollment and once each year, child care centers must report to 
 21.34  parents or guardians if they use experienced aides under this 
 21.35  subdivision. 
 21.36     (d) This subdivision sunsets June 30, 2003. 
 22.1      Sec. 22.  Minnesota Statutes 1998, section 245A.14, is 
 22.2   amended by adding a subdivision to read: 
 22.3      Subd. 9.  [INSERVICE TRAINING; CHILD CARE CENTERS.] (a) A 
 22.4   teacher at a child care center must complete one percent of 
 22.5   working hours of inservice training annually if the teacher: 
 22.6      (1) possesses a baccalaureate or masters degree in early 
 22.7   childhood education, or school age care; 
 22.8      (2) is licensed in Minnesota as a prekindergarten teacher, 
 22.9   an early childhood educator, a kindergarten to sixth grade 
 22.10  teacher with a prekindergarten specialty, an early childhood 
 22.11  special education teacher, or an elementary teacher with a 
 22.12  kindergarten endorsement; or 
 22.13     (3) possesses a baccalaureate degree with a Montessori 
 22.14  certificate. 
 22.15     (b) A teacher or assistant teacher at a child care center 
 22.16  must complete 1-1/2 percent of working hours of inservice 
 22.17  training annually if the individual is: 
 22.18     (1) a registered nurse or licensed practical nurse with 
 22.19  experience working with infants; 
 22.20     (2) possesses a Montessori certificate, a technical college 
 22.21  certificate in early childhood development, or a child 
 22.22  development associate certificate; or 
 22.23     (3) possesses an associate of arts degree in early 
 22.24  childhood education, a baccalaureate degree in child 
 22.25  development, or a technical college diploma in early childhood 
 22.26  development. 
 22.27     (c) Except as provided in paragraphs (a) and (b), all other 
 22.28  teachers, assistant teachers, or aides must have two percent of 
 22.29  working hours of inservice training annually. 
 22.30     (d) The number of required training hours may be prorated 
 22.31  for individuals not employed full time or for an entire year.  
 22.32  This subdivision supersedes Minnesota Rules, part 9503.0035, 
 22.33  subpart 4, item B, for teachers, assistant teachers, and aides.  
 22.34  The remainder of Minnesota Rules, part 9503.0035, subpart 4, 
 22.35  remains in effect unless superseded by other law. 
 22.36     Sec. 23.  Laws 1998, First Special Session chapter 1, 
 23.1   article 1, section 10, subdivision 1, as amended by Laws 1999, 
 23.2   chapter 205, article 4, section 8, is amended to read: 
 23.3      Subdivision 1.  [INITIAL ELIGIBILITY.] To be eligible for 
 23.4   state or TANF matching funds in the family assets for 
 23.5   independence initiative, a household must have income at or 
 23.6   below 185 percent of the federal poverty level and assets of 
 23.7   $15,000 or less.  An individual who is a dependent of another 
 23.8   person for federal income tax purposes may not be a separate 
 23.9   eligible household for purposes of establishing a family asset 
 23.10  account.  An individual who is a debtor for a judgment resulting 
 23.11  from nonpayment of a court-ordered child support obligation may 
 23.12  not participate in this program.  Households accessing TANF 
 23.13  matching funds are subject to the MFIP definition of household 
 23.14  under Minnesota Statutes, section 256J.08, subdivision 46.  
 23.15  Income and assets are determined according to eligibility 
 23.16  guidelines for the energy assistance program meet the 
 23.17  eligibility requirements of the federal Assets for Independence 
 23.18  Act, Public Law Number 105-285, in Title IV, section 408 of that 
 23.19  act.  
 23.20     Sec. 24.  Laws 1998, First Special Session chapter 1, 
 23.21  article 1, section 11, subdivision 1, is amended to read: 
 23.22     Subdivision 1.  [WITHDRAWAL OF FUNDS.] To receive a match, 
 23.23  a participating household must transfer funds withdrawn from a 
 23.24  family asset account to its matching fund custodial account held 
 23.25  by the fiscal agent, according to the family asset agreement.  
 23.26  The fiduciary organization fiscal agent must determine if the 
 23.27  match request is for a permissible use consistent with the 
 23.28  household's family asset agreement. 
 23.29     The fiscal agent must ensure the household's custodial 
 23.30  account contains the applicable matching funds to match the 
 23.31  balance in the household's account, including interest, on at 
 23.32  least a quarterly basis and at the time of an approved 
 23.33  withdrawal.  Matches must be provided as follows: 
 23.34     (1) from state grant and TANF funds a matching contribution 
 23.35  of $1.50 for every $1 of funds withdrawn from the family asset 
 23.36  account equal to the lesser of $720 per year or a $3,000 
 24.1   lifetime limit; and 
 24.2      (2) from nonstate funds, a matching contribution of no less 
 24.3   than $1.50 for every $1 of funds withdrawn from the family asset 
 24.4   account equal to the lesser of $720 per year or a $3,000 
 24.5   lifetime limit. 
 24.6      Sec. 25.  Laws 1998, First Special Session chapter 1, 
 24.7   article 1, section 11, subdivision 2, as amended by Laws 1999, 
 24.8   chapter 205, article 4, section 9, is amended to read: 
 24.9      Subd. 2.  [VENDOR PAYMENT OF WITHDRAWN FUNDS.] Upon receipt 
 24.10  of transferred custodial account funds, the fiduciary 
 24.11  organization fiscal agent must make a direct payment to the 
 24.12  vendor of the goods or services for the permissible use.  
 24.13     Sec. 26.  Laws 1999, chapter 205, article 1, section 65, is 
 24.14  amended to read: 
 24.15     Sec. 65.  [ADDITIONAL EARLY CHILDHOOD FAMILY EDUCATION AID; 
 24.16  FISCAL YEAR 2000 AND FISCAL YEAR 2001.] 
 24.17     A district that complies with Minnesota Statutes, section 
 24.18  124D.13, shall receive additional early childhood family 
 24.19  education aid for fiscal year 2000 and fiscal year 2001 equal to 
 24.20  $2.46 times the greater of: 
 24.21     (1) 150; or 
 24.22     (2) the number of people under five years of age residing 
 24.23  in the school district on October 1 of the previous school 
 24.24  year.  The additional early childhood family education aid may 
 24.25  be used only for early childhood family education programs. 
 24.26     Sec. 27.  Laws 1999, chapter 205, article 1, section 71, 
 24.27  subdivision 3, is amended to read: 
 24.28     Subd. 3.  [EARLY CHILDHOOD FAMILY EDUCATION AID.] For early 
 24.29  childhood family education aid according to Minnesota Statutes, 
 24.30  section 124D.135: 
 24.31       $20,485,000 $20,109,000   .....     2000 
 24.32       $19,420,000 $21,107,000   .....     2001
 24.33     The 2000 appropriation includes $1,390,000 for 1999 and 
 24.34  $19,095,000 $18,719,000 for 2000.  
 24.35     The 2001 appropriation includes $2,122,000 $2,079,000 for 
 24.36  2000 and $17,298,000 $19,028,000 for 2001.  
 25.1      Any balance in the first year does not cancel but is 
 25.2   available in the second year. 
 25.3      Sec. 28.  Laws 1999, chapter 205, article 1, section 71, 
 25.4   subdivision 7, is amended to read: 
 25.5      Subd. 7.  [SCHOOL AGE CARE AID.] For extended day aid 
 25.6   according to Minnesota Statutes, section 124D.22: 
 25.7        $274,000       .....     2000 
 25.8        $216,000 $245,000       .....     2001
 25.9      The 2000 appropriation includes $30,000 for 1999 and 
 25.10  $244,000 for 2000. 
 25.11     The 2001 appropriation includes $27,000 for 2000 and 
 25.12  $189,000 $218,000 for 2001. 
 25.13     Any balance in the first year does not cancel but is 
 25.14  available in the second year. 
 25.15     Sec. 29.  Laws 1999, chapter 205, article 1, section 71, 
 25.16  subdivision 9, is amended to read: 
 25.17     Subd. 9.  [MFIP CHILD CARE.] For child care assistance 
 25.18  according to Minnesota Statutes, section 119B.05: 
 25.19       $86,318,000 $66,524,000    .....     2000 
 25.20       $88,443,000 $78,606,000    .....     2001
 25.21     Any balance in the first year does not cancel but is 
 25.22  available in the second year. 
 25.23     Sec. 30.  Laws 1999, chapter 205, article 2, section 4, 
 25.24  subdivision 2, is amended to read: 
 25.25     Subd. 2.  [FAMILY COLLABORATIVES.] For family 
 25.26  collaboratives according to Laws 1995, First Special Session 
 25.27  chapter 3, article 4, section 29, subdivision 10 Minnesota 
 25.28  Statutes, section 124D.23: 
 25.29       $4,777,000     .....     2000
 25.30       $2,535,000 $2,435,000    .....     2001
 25.31     No new family services collaboratives shall be funded with 
 25.32  this appropriation after June 30, 1999.  
 25.33     Any balance in the first year does not cancel but is 
 25.34  available in the second year. 
 25.35     Sec. 31.  Laws 1999, chapter 205, article 2, section 4, 
 25.36  subdivision 3, is amended to read: 
 26.1      Subd. 3.  [COMMUNITY EDUCATION AID.] For community 
 26.2   education aid according to Minnesota Statutes, section 124D.20: 
 26.3        $14,136,000    .....     2000 
 26.4        $14,696,000 $15,274,000    .....     2001 
 26.5      The 2000 appropriation includes $160,000 for 1999 and 
 26.6   $13,976,000 for 2000.  
 26.7      The 2001 appropriation includes $1,552,000 for 2000 and 
 26.8   $13,144,000 $13,722,000 for 2001.  
 26.9      Any balance in the first year does not cancel but is 
 26.10  available in the second year. 
 26.11     Sec. 32.  Laws 1999, chapter 205, article 4, section 12, 
 26.12  subdivision 5, is amended to read: 
 26.13     Subd. 5.  [ADULT BASIC EDUCATION AID.] For adult basic 
 26.14  education aid according to Minnesota Statutes, section 124D.52, 
 26.15  in fiscal year 2000 and Minnesota Statutes, section 124D.53 in 
 26.16  fiscal year 2001:  
 26.17       $20,132,000    .....     2000
 26.18       $22,477,000 $29,168,000   .....     2001 
 26.19     The 2000 appropriation includes $1,227,000 for 1999 and 
 26.20  $18,905,000 for 2000.  
 26.21     The 2001 appropriation includes $2,101,000 for 2000 and 
 26.22  $20,376,000 $27,067,000 for 2001.  
 26.23     Sec. 33.  Laws 1999, chapter 205, article 4, section 12, 
 26.24  subdivision 6, is amended to read: 
 26.25     Subd. 6.  [ADULT BASIC EDUCATION BASIC POPULATION AID.] For 
 26.26  basic population aid for eligible districts under section 7: 
 26.27       $1,960,000 $1,974,000     .....     2000 
 26.28     Notwithstanding Minnesota Statutes, section 127A.45, 
 26.29  subdivision 12, 100 percent of this appropriation is for fiscal 
 26.30  year 2000. 
 26.31     Any balance in the first year does not cancel but is 
 26.32  available in the second year.  This is a one-time appropriation. 
 26.33     Sec. 34.  Laws 1999, chapter 205, article 4, section 12, 
 26.34  subdivision 7, is amended to read: 
 26.35     Subd. 7.  [ADULT GRADUATION AID.] For adult graduation aid 
 26.36  according to Minnesota Statutes, section 124D.54: 
 27.1        $3,184,000 $2,760,000     .....     2000
 27.2        $4,732,000 $3,031,000     .....     2001
 27.3      The 2000 appropriation includes $258,000 $258,000 for 1999 
 27.4   and $2,926,000 $2,502,000 for 2000.  
 27.5      The 2001 appropriation includes $325,000 $278,000 for 2000 
 27.6   and $4,407,000 $2,753,000 for 2001. 
 27.7      Sec. 35.  [COMPETENCY-BASED ADULT BASIC EDUCATION AND 
 27.8   ENGLISH AS A SECOND LANGUAGE LICENSE.] 
 27.9      The board of teaching must convene a task force to develop 
 27.10  a competency-based license for teachers of adult basic education 
 27.11  classes and English as a second language classes.  The 
 27.12  competency-based license must be an alternative to the current 
 27.13  licensing requirements.  By January 15, 2002, the board of 
 27.14  teaching must present their recommendations to the committees of 
 27.15  the legislature responsible for teacher licensing and funding of 
 27.16  adult basic education programs including recommendations for 
 27.17  implementing competency-based licensing for teachers of adult 
 27.18  learners. 
 27.19     Sec. 36.  [MFIP SOCIAL SERVICES CHILD CARE SUNSET AND 
 27.20  REPORT.] 
 27.21     Minnesota Statutes, section 119B.05, subdivision 1, clause 
 27.22  (5), expires on June 30, 2003.  MFIP social services child care 
 27.23  must be paid for with the appropriations under section 45, 
 27.24  subdivision 3.  Priority must be given to mental health services 
 27.25  and chemical dependency services.  Any amount that is not needed 
 27.26  for MFIP social services child care must be used for child care 
 27.27  assistance under Minnesota Statutes, section 119B.03.  The 
 27.28  commissioner of children, families, and learning must notify the 
 27.29  chairs of the family and early childhood committees in the house 
 27.30  and the senate if expenditures for MFIP social services child 
 27.31  care are expected to exceed appropriations under section 45, 
 27.32  subdivision 3.  The commissioner shall report to the legislature 
 27.33  by January 15, 2003, on the use of MFIP social services child 
 27.34  care with recommendations on the need for social services child 
 27.35  care and its effectiveness in promoting self-sufficiency. 
 27.36     Sec. 37.  [EXPEDITED APPLICATION FOR MINOR STUDENTS.] 
 28.1      The commissioner of children, families, and learning, as a 
 28.2   component of the training for counties to administer child care 
 28.3   assistance under Minnesota Statutes, chapter 119B, must provide 
 28.4   technical assistance on ways to expedite and streamline the 
 28.5   application process for minor parents participating in 
 28.6   school-based child care.  The commissioner must make child care 
 28.7   assistance information and applications available to 
 28.8   school-based adolescent parenting programs so eligible minor 
 28.9   parents are able to complete their high school education.  
 28.10     Sec. 38.  [COOPERATIVE LANGUAGE INSTRUCTION.] 
 28.11     The commissioner of children, families, and learning shall 
 28.12  create an application process to make grants for the 
 28.13  establishment of cooperative programs to teach English as a 
 28.14  second language to adults and their children.  Instruction shall 
 28.15  be provided through prekindergarten programs, elementary and 
 28.16  secondary schools, and the adult basic education program.  At 
 28.17  least two grants in the seven-county metropolitan area and one 
 28.18  grant outside the seven-county metropolitan area shall be made.  
 28.19     Sec. 39.  [INTENSIVE ESL GRANTS.] 
 28.20     The commissioner of children, families, and learning shall 
 28.21  establish a reimbursement grant program to fund intensive 
 28.22  English as a second language (ESL) programs for TANF eligible 
 28.23  adults who participate in the MFIP program under Minnesota 
 28.24  Statutes, chapter 256J, with funds appropriated under Minnesota 
 28.25  Statutes, section 44, subdivision 2.  Intensive ESL programming 
 28.26  must provide intensive instruction for MFIP participants who are 
 28.27  making inadequate literacy progress as measured by a standard 
 28.28  assessment test.  The intensive instruction must be focused on 
 28.29  participants' gaining sufficient literacy to achieve 
 28.30  self-sufficiency through employment.  
 28.31     Organizations eligible for grants under this section 
 28.32  include adult basic education programs, school districts, 
 28.33  post-secondary institutions, and nonprofit or community-based 
 28.34  organizations or other private organizations with experience in 
 28.35  providing English language instruction to non-English speaking 
 28.36  immigrants and refugees.  Grant applications must contain 
 29.1   information required by the commissioner in the form prescribed 
 29.2   by the commissioner.  At a minimum, the application must 
 29.3   document experience in literacy programs serving immigrants and 
 29.4   refugees, describe fiscal accounting systems and reporting 
 29.5   capacity, ensure that administrative expenses are limited to 
 29.6   five percent of grant funds, and provide a description of the 
 29.7   proposed instructional services and training plans.  Funds must 
 29.8   be paid to programs on a reimbursement basis.  The intensive ESL 
 29.9   program expires on June 30, 2003. 
 29.10     Sec. 40.  [CHILD AND ADULT CARE FOOD PROGRAM.] 
 29.11     The commissioner of the department of children, families, 
 29.12  and learning must request a waiver from the department of 
 29.13  agriculture so that child care programs that are licensed under 
 29.14  Minnesota Statutes, section 245A.14, subdivision 4, are allowed 
 29.15  to participate in the federal child and adult care food program 
 29.16  under United States Code, title 42, section 1766. 
 29.17     Sec. 41.  [FAMILY PROVIDER PARTICIPATION.] 
 29.18     The commissioner of the department of children, families, 
 29.19  and learning must ensure that licensed family child care 
 29.20  providers have an opportunity to participate in policy 
 29.21  discussions that impact child care.  The commissioner must seek 
 29.22  participation and input from family providers including, but not 
 29.23  limited to, participation on task forces. 
 29.24     Sec. 42.  [ADULT BASIC EDUCATION POLICY TASK FORCE.] 
 29.25     Subdivision 1.  [ESTABLISHMENT.] A nine-member adult basic 
 29.26  education policy task force is established to make 
 29.27  recommendations to the legislature on program and funding 
 29.28  policies for adult basic education programs that receive aid 
 29.29  under Minnesota Statutes, section 124D.531.  Members do not 
 29.30  receive per diem or reimbursement for expenses.  At a minimum, 
 29.31  the task force must hold two meetings a year.  All other matters 
 29.32  of the task force's operation, except expiration of the task 
 29.33  force under subdivision 4, are governed by Minnesota Statutes, 
 29.34  section 15.069. 
 29.35     Subd. 2.  [MEMBERSHIP.] The commissioner shall appoint nine 
 29.36  members to the task force.  Four members are appointed from a 
 30.1   list of candidates provided to the commissioner by the Minnesota 
 30.2   community education association and Literacy Minnesota.  The 
 30.3   commissioner must appoint two members of the task force from 
 30.4   rural programs, two members from suburban programs, two members 
 30.5   from urban programs, and one member from the nonprofit group.  
 30.6   The commissioner shall appoint one former adult basic education 
 30.7   learner and one current adult basic education learner to the 
 30.8   task force.  The composition of the task force must allow for 
 30.9   equal representation from adult basic education learners, 
 30.10  instructors, and administrators. 
 30.11     Subd. 3.  [DUTIES.] The task force must: 
 30.12     (1) recommend to the legislature and the commissioner a 
 30.13  mission statement for a statewide system of adult basic 
 30.14  education programs that includes educational outcomes, services, 
 30.15  eligible learners, requirements for teacher licensing, 
 30.16  expectations for student advancement and progress, and 
 30.17  recognition of the importance of distance learning and other 
 30.18  technology-based instruction methods; 
 30.19     (2) recommend to the legislature adult basic education 
 30.20  standard policies and procedures; 
 30.21     (3) recommend to the legislature the adult basic education 
 30.22  curriculum and course offerings including policies to offer 
 30.23  computer literacy and other skill-based education through adult 
 30.24  basic education programs; 
 30.25     (4) recommend to the legislature the minimum number of 
 30.26  contact hours that are necessary in order for a program to 
 30.27  continue; 
 30.28     (5) recommend to the legislature an adequate and reasonable 
 30.29  hourly rate for smaller programs; 
 30.30     (6) recommend to the legislature a reasonable range for the 
 30.31  number of instructional hours or a reasonable cap on the number 
 30.32  of hours individuals may spend in adult basic education 
 30.33  instruction; 
 30.34     (7) recommend to the legislature an outcome-based adult 
 30.35  basic education funding system that rewards and recognizes 
 30.36  student progress in attaining educational goals; 
 31.1      (8) recommend to the legislature an appropriate weight for 
 31.2   contact hours for nonschool district programs based on an 
 31.3   evaluation of costs, revenues, and the impact of weighted 
 31.4   contact hours on consortium stability; and 
 31.5      (9) review statewide grant applications for supplemental 
 31.6   services under Minnesota Statutes, section 124D.522. 
 31.7      Subd. 4.  [EXPIRATION.] The adult basic education policy 
 31.8   task force expires on December 1, 2002. 
 31.9      Sec. 43.  [GENERAL FUND APPROPRIATIONS.] 
 31.10     Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
 31.11  LEARNING.] The sums indicated in this section are appropriated 
 31.12  from the general fund to the commissioner of children, families, 
 31.13  and learning for the fiscal years designated.  
 31.14     Subd. 2.  [ADULT BASIC EDUCATION SUPPLEMENTAL SERVICE 
 31.15  GRANTS.] For adult basic education supplemental service grants 
 31.16  according to Minnesota Statutes, section 124D.522: 
 31.17       $700,000     .....     2001 
 31.18     This is a one-time appropriation and is not to be added to 
 31.19  the base for 2002 and 2003. 
 31.20     Subd. 3.  [ADULT BASIC EDUCATION ADMINISTRATION.] For 
 31.21  administration of the state adult basic education program 
 31.22  including auditing, technical assistance, and reporting 
 31.23  requirements under this act: 
 31.24       $100,000     .....     2001 
 31.25     This appropriation is added to the fiscal year 2002 and 
 31.26  2003 base at a level of $175,000 each year to finance adult 
 31.27  basic education audits.  Any balance in the first year does not 
 31.28  cancel, but is available in the second year. 
 31.29     Subd. 4.  [HOUSING COLLABORATION.] For a grant to the city 
 31.30  of St. Louis Park for the Meadowbrook Collaborative Housing 
 31.31  Project to enhance youth outreach services and to provide 
 31.32  educational and recreational programming for at-risk youth.  The 
 31.33  collaborative must include a cross section of public and private 
 31.34  sector community representatives.  
 31.35       $25,000     .....     2001 
 31.36     This is a one-time appropriation. 
 32.1      Subd. 5.  [EMERGENCY SERVICES.] For emergency services 
 32.2   grants according to Laws 1997, chapter 162, article 3, section 7:
 32.3        $622,000     .....     2001
 32.4      This is a one-time appropriation. 
 32.5      Subd. 6.  [COOPERATIVE LANGUAGE INSTRUCTION.] For 
 32.6   cooperative language instruction grants under section 38: 
 32.7        $250,000     .....     2001
 32.8      This is a one-time appropriation. 
 32.9      Subd. 7.  [ADULTS WITH DISABILITIES.] For purposes of the 
 32.10  adults with disabilities pilot programs under Laws 1997, chapter 
 32.11  162, article 2, section 31, subdivision 4: 
 32.12       $40,000     .....     2001
 32.13     Sec. 44.  [TANF APPROPRIATIONS.] 
 32.14     Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
 32.15  LEARNING.] The sums indicated in this section for fiscal years 
 32.16  2001 to 2003 are appropriated to the commissioner of human 
 32.17  services from the federal Temporary Assistance for Needy 
 32.18  Families (TANF) block grant funds authorized under United States 
 32.19  Code, title 42, section 601 et seq., and awarded in federal 
 32.20  fiscal years 2000 to 2002, and are transferred to the department 
 32.21  of children, families, and learning for the fiscal years 
 32.22  indicated for use as provided in this section.  These amounts 
 32.23  are available for expenditure until June 30, 2003.  
 32.24  Appropriations under this section are one-time appropriations 
 32.25  and are not added to the base for fiscal years 2004 and 2005.  
 32.26     Subd. 2.  [INTENSIVE ESL.] For intensive English as a 
 32.27  second language (ESL) for eligible MFIP participants under 
 32.28  section 39: 
 32.29       $1,100,000     .....     2001
 32.30       $1,100,000     .....     2002
 32.31       $1,100,000     .....     2003
 32.32     Subd. 3.  [TRANSITIONAL HOUSING PROGRAMS.] For 
 32.33  reimbursement grants to transitional housing programs under 
 32.34  Minnesota Statutes, section 119A.43: 
 32.35       $1,900,000     .....     2001 
 32.36       $1,900,000     .....     2002 
 33.1        $1,950,000     .....     2003 
 33.2      These appropriations must be used for up to four months of 
 33.3   transitional housing for families with incomes below 200 percent 
 33.4   of the federal poverty guidelines.  Payment must be made to 
 33.5   programs on a reimbursement basis. 
 33.6      Sec. 45.  [FEDERAL TANF TRANSFERS.] 
 33.7      Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
 33.8   LEARNING.] The sums indicated in this section are transferred 
 33.9   from the federal TANF fund to the child care and development 
 33.10  fund and appropriated to the department of children, families, 
 33.11  and learning for the fiscal years designated.  The commissioner 
 33.12  shall ensure that all transferred funds are expended in 
 33.13  accordance with the child care and development fund regulations 
 33.14  and that the maximum allowable transferred funds are used for 
 33.15  the program in this section.  Appropriations under this section 
 33.16  are one-time appropriations and are not added to the base.  
 33.17     Subd. 2.  [BASIC SLIDING FEE CHILD CARE.] For child care 
 33.18  assistance according to Minnesota Statutes, section 119B.03: 
 33.19       $2,539,000     .....     2001
 33.20       $2,138,000     .....     2002
 33.21       $1,738,000     .....     2003
 33.22     Subd. 3.  [MFIP SOCIAL SERVICES CHILD CARE.] For social 
 33.23  services child care costs of eligible MFIP participants under 
 33.24  section 36: 
 33.25       $3,233,000     .....     2001
 33.26       $3,297,000     .....     2002
 33.27       $2,865,000     .....     2003
 33.28     Any amount remaining in fiscal year 2003 that is not needed 
 33.29  for social service child care must be used for assistance under 
 33.30  Minnesota Statutes, section 119B.03. 
 33.31     Subd. 4.  [TRANSITION YEAR FAMILIES.] To provide 
 33.32  uninterrupted assistance under Minnesota Statutes, section 
 33.33  119B.03, for families completing transition year child care 
 33.34  assistance: 
 33.35       $1,080,000     .....     2001
 33.36       $3,620,000     .....     2002
 34.1        $4,040,000     .....     2003
 34.2      Any amount remaining in fiscal year 2003 that is not needed 
 34.3   for uninterrupted child care must be used for assistance under 
 34.4   Minnesota Statutes, section 119B.03. 
 34.5      Sec. 46.  [REPEALER.] 
 34.6      (a) Minnesota Statutes 1998, section 124D.53, is repealed.  
 34.7      (b) Laws 1998, First Special Session chapter 1, article 1, 
 34.8   section 10, subdivision 2, as amended by Laws 1999, chapter 205, 
 34.9   article 4, section 8, is repealed. 
 34.10     <b>EFFECTIVE DATE:</b>  Paragraph (a) is effective for revenue for 
 34.11  fiscal year 2001 and later. 
 34.12                             ARTICLE 2 
 34.13                   KINDERGARTEN THROUGH GRADE 12 
 34.14                         GENERAL EDUCATION 
 34.15     Section 1.  Minnesota Statutes 1999 Supplement, section 
 34.16  122A.61, subdivision 1, is amended to read: 
 34.17     Subdivision 1.  [STAFF DEVELOPMENT REVENUE.] A district is 
 34.18  required to reserve an amount equal to at least one two percent 
 34.19  of the basic revenue under section 126C.10, subdivision 2, for 
 34.20  in-service education for programs under section 120B.22, 
 34.21  subdivision 2, for staff development plans, including plans for 
 34.22  challenging instructional activities and experiences under 
 34.23  section 122A.60, and for curriculum development and programs, 
 34.24  other in-service education, teachers' workshops, teacher 
 34.25  conferences, the cost of substitute teachers staff development 
 34.26  purposes, and other related costs for staff development 
 34.27  efforts.  A district may annually waive the requirement to 
 34.28  reserve their basic revenue under this section if a majority 
 34.29  vote of the licensed teachers in the district and a majority 
 34.30  vote of the school board agree to a resolution to waive the 
 34.31  requirement.  A district in statutory operating debt is exempt 
 34.32  from reserving basic revenue according to this section.  
 34.33  Districts may expend an additional amount of unreserved revenue 
 34.34  for staff development based on their needs.  With the exception 
 34.35  of amounts reserved for staff development from revenues 
 34.36  allocated directly to school sites, the board must initially 
 35.1   allocate 50 percent of the reserved revenue to each school site 
 35.2   in the district on a per teacher basis, which must be retained 
 35.3   by the school site until used.  The board may retain 25 percent 
 35.4   to be used for district wide staff development efforts.  The 
 35.5   remaining 25 percent of the revenue must be used to make grants 
 35.6   to school sites for best practices methods.  A grant may be used 
 35.7   for any purpose authorized under section 120B.22, subdivision 2, 
 35.8   122A.60, or for the costs of curriculum development and 
 35.9   programs, other in-service education, teachers' workshops, 
 35.10  teacher conferences, substitute teachers for staff development 
 35.11  purposes, and other staff development efforts, and determined by 
 35.12  the site professional development team.  The site professional 
 35.13  development team must demonstrate to the school board the extent 
 35.14  to which staff at the site have met the outcomes of the 
 35.15  program.  The board may withhold a portion of initial allocation 
 35.16  of revenue if the staff development outcomes are not being met. 
 35.17     Sec. 2.  Minnesota Statutes 1998, section 122A.68, 
 35.18  subdivision 4, is amended to read: 
 35.19     Subd. 4.  [EMPLOYMENT CONDITIONS.] A school district must 
 35.20  pay a teaching resident a salary equal to 75 90 percent of the 
 35.21  salary of a first-year teacher with a bachelor's degree in the 
 35.22  district.  The resident shall be a member of the local 
 35.23  bargaining unit and shall be covered under the terms of the 
 35.24  contract, except for salary and benefits, unless otherwise 
 35.25  provided in this subdivision.  The school district must provide 
 35.26  health insurance coverage for the resident if the district 
 35.27  provides it for teachers, and may provide other benefits upon 
 35.28  negotiated agreement. 
 35.29     Sec. 3.  Minnesota Statutes 1998, section 123B.75, 
 35.30  subdivision 5, is amended to read: 
 35.31     Subd. 5.  [LEVY RECOGNITION.] (a) "School district tax 
 35.32  settlement revenue" means the current, delinquent, and 
 35.33  manufactured home property tax receipts collected by the county 
 35.34  and distributed to the school district. 
 35.35     (b) In June of each year, the school district must 
 35.36  recognize as revenue, in the fund for which the levy was made, 
 36.1   the lesser of:  
 36.2      (1) the May, June, and July school district tax settlement 
 36.3   revenue received in that calendar year; or 
 36.4      (2) the sum of: 
 36.5      (i) 31 percent of the referendum levy certified in the 
 36.6   prior calendar year according to section 126C.17, subdivision 9; 
 36.7   plus 
 36.8      (ii) the entire amount of the levy certified in the prior 
 36.9   calendar year according to sections 124D.86, subdivision 4, for 
 36.10  school districts receiving revenue under 124D.86, subdivision 3, 
 36.11  clauses (1), (2) and (3); 126C.41, subdivisions 1, 2, and 3, 
 36.12  paragraphs (4), (5), and (6); 126C.43, subdivision 2; and 
 36.13  126C.48, subdivision 6. 
 36.14     Sec. 4.  Minnesota Statutes 1999 Supplement, section 
 36.15  124D.11, subdivision 1, is amended to read: 
 36.16     Subdivision 1.  [GENERAL EDUCATION REVENUE.] (a) General 
 36.17  education revenue must be paid to a charter school as though it 
 36.18  were a district.  The general education revenue for each 
 36.19  adjusted marginal cost pupil unit is the state average general 
 36.20  education revenue per pupil unit, plus the referendum 
 36.21  equalization aid allowance in the pupil's district of residence, 
 36.22  minus an amount equal to the product of the formula allowance 
 36.23  according to section 126C.10, subdivision 2, times .0485, 
 36.24  calculated without basic skills revenue, transportation sparsity 
 36.25  revenue, and the transportation portion of the transition 
 36.26  revenue adjustment, plus basic skills revenue as though the 
 36.27  school were a school district. 
 36.28     (b) Notwithstanding paragraph (a), for charter schools in 
 36.29  the first year of operation, general education revenue shall be 
 36.30  computed using the number of adjusted pupil units in the current 
 36.31  fiscal year.  
 36.32     <b>EFFECTIVE DATE:</b>  This section is effective the day 
 36.33  following final enactment. 
 36.34     Sec. 5.  Minnesota Statutes 1999 Supplement, section 
 36.35  124D.65, subdivision 4, is amended to read: 
 36.36     Subd. 4.  [STATE TOTAL LEP REVENUE.] (a) The state total 
 37.1   limited English proficiency programs revenue for fiscal year 
 37.2   2000 equals $27,454,000.  The state total limited English 
 37.3   proficiency programs revenue for fiscal year 2001 equals 
 37.4   $31,752,000.  
 37.5      (b) The state total limited English proficiency programs 
 37.6   revenue for later fiscal years equals: 
 37.7      (1) the state total limited English proficiency programs 
 37.8   revenue for the preceding fiscal year; times 
 37.9      (2) the program growth factor under section 125A.76 
 37.10  subdivision 1; times 
 37.11     (3) the ratio of the state total number of pupils with 
 37.12  limited English proficiency for the current fiscal year to the 
 37.13  state total number of pupils with limited English proficiency 
 37.14  for the preceding fiscal year. 
 37.15     <b>EFFECTIVE DATE:</b>  This section is effective the day 
 37.16  following final enactment. 
 37.17     Sec. 6.  Minnesota Statutes 1999 Supplement, section 
 37.18  124D.86, subdivision 1, is amended to read: 
 37.19     Subdivision 1.  [USE OF THE REVENUE.] Integration revenue 
 37.20  under this section must be used for programs established under a 
 37.21  desegregation plan filed with the department of children, 
 37.22  families, and learning according to Minnesota Rules, parts 
 37.23  3535.0100 to 3535.0180, or under court order, to increase.  The 
 37.24  revenue must be used to create or enhance learning opportunities 
 37.25  and reduce the learning gap between learners living in high 
 37.26  concentrations of poverty and their peers which are designed to 
 37.27  provide opportunities for students to have increased interracial 
 37.28  contacts through classroom experiences, staff initiatives, and 
 37.29  other educationally related programs. 
 37.30     Sec. 7.  Minnesota Statutes 1998, section 124D.86, is 
 37.31  amended by adding a subdivision to read: 
 37.32     Subd. 1a.  [BUDGET APPROVAL PROCESS.] Each year before a 
 37.33  district receives any revenue under subdivision 3, clause (4), 
 37.34  the district must submit to the department of children, 
 37.35  families, and learning, for its review and approval a budget 
 37.36  detailing the costs of the desegregation/integration plan filed 
 38.1   under Minnesota Rules, parts 3535.0100 to 3535.0180.  
 38.2   Notwithstanding chapter 14, the department may develop criteria 
 38.3   for budget approval.  The department shall consult with the 
 38.4   desegregation advisory board in developing these criteria.  The 
 38.5   criteria developed by the department should address, at a 
 38.6   minimum, the following: 
 38.7      (1) budget items cannot be approved unless they are part of 
 38.8   any overall desegregation plan approved by the district for 
 38.9   isolated sites or by the multidistrict collaboration council and 
 38.10  participation individual members; 
 38.11     (2) the budget must indicate how revenue expenditures will 
 38.12  be used specifically to support increased opportunities for 
 38.13  interracial contact; 
 38.14     (3) components of the budget to be considered by the 
 38.15  department, including staffing, curriculum, transportation, 
 38.16  facilities, materials, and equipment and reasonable planning 
 38.17  costs, as determined by the department; and 
 38.18     (4) if plans are proposed to enhance existing programs, the 
 38.19  total budget being appropriated to the program must be included, 
 38.20  indicating what part is to be funded using integration revenue 
 38.21  and what part is to be funded using other revenues.  
 38.22     Sec. 8.  Minnesota Statutes 1998, section 124D.86, is 
 38.23  amended by adding a subdivision to read: 
 38.24     Subd. 1b.  [PLAN COMPONENTS.] Plans submitted by each 
 38.25  district under Minnesota Rules, parts 3535.0160 and 3535.0170, 
 38.26  must be approved by the district's board each year before 
 38.27  integration revenue will be awarded.  If a district is applying 
 38.28  for revenue for a plan that is part of a multidistrict council, 
 38.29  the individual district shall not receive revenue unless it 
 38.30  ratifies the plan adopted by its multidistrict council or 
 38.31  approves a modified plan with a written explanation of any 
 38.32  modifications.  Each plan shall contain: 
 38.33     (1) an identification of the integration issues at the 
 38.34  sites or districts covered by Minnesota Rules, parts 3535.0100 
 38.35  to 3535.0180; 
 38.36     (2) a description of the community outreach that preceded 
 39.1   the integration plan, such that the commissioner can determine 
 39.2   whether the membership of the planning councils complied with 
 39.3   the requirements of Minnesota Rules, parts 3535.0100 to 
 39.4   3535.0180; and 
 39.5      (3) the specific goals of the integration plan. 
 39.6   By June 30 of the subsequent fiscal year, each district shall 
 39.7   report to the commissioner in writing about the extent to which 
 39.8   the integration goals identified in the plan were met. 
 39.9      Sec. 9.  Minnesota Statutes 1999 Supplement, section 
 39.10  124D.86, subdivision 3, is amended to read: 
 39.11     Subd. 3.  [INTEGRATION REVENUE.] For fiscal year 2000 and 
 39.12  later fiscal years, integration revenue equals the following 
 39.13  amounts: 
 39.14     (1) for independent school district No. 709, Duluth, $207 
 39.15  times the adjusted pupil units for the school year; 
 39.16     (2) for independent school district No. 625, St. Paul, $446 
 39.17  times the adjusted pupil units for the school year; 
 39.18     (3) for special school district No. 1, Minneapolis, $536 
 39.19  times the adjusted pupil units for the school year; and 
 39.20     (4) for a district not listed in clause (1), (2), or (3) 
 39.21  that is required to implement a plan according to the 
 39.22  requirements of Minnesota Rules, parts 3535.0100 to 
 39.23  3535.0180, as proposed in 23 State Register 1344, December 7, 
 39.24  1998, the lesser of 
 39.25     (i) the actual cost of implementing the plan during the 
 39.26  fiscal year minus the aid received under subdivision 6, or 
 39.27     (ii) $93 times the adjusted pupil units for the school year.
 39.28     Any money received by districts in clauses (1) to (3) which 
 39.29  exceeds the amount received in fiscal year 2000 shall be subject 
 39.30  to the budget requirements in subdivision 1a. 
 39.31     Sec. 10.  Minnesota Statutes 1998, section 124D.86, 
 39.32  subdivision 6, is amended to read: 
 39.33     Subd. 6.  [ALTERNATIVE ATTENDANCE PROGRAMS.] (a) The 
 39.34  integration aid under subdivision 5 must be adjusted for each 
 39.35  pupil residing in a district eligible for integration revenue 
 39.36  under subdivision 3, clause (1), (2), or (3), and attending a 
 40.1   nonresident district under sections 123A.05 to 123A.08, 124D.03, 
 40.2   124D.06, 124D.07, and 124D.08, that is not eligible for 
 40.3   integration revenue under subdivision 3, clause (1), (2), or 
 40.4   (3), and has implemented a plan under Minnesota Rules, parts 
 40.5   3535.0100 to 3535.0180, if the enrollment of the pupil in the 
 40.6   nonresident district contributes to desegregation or integration 
 40.7   purposes.  The adjustments must be made according to this 
 40.8   subdivision.  
 40.9      (b) Aid paid to the district of the pupil's residence must 
 40.10  be reduced by an amount equal to the revenue per resident pupil 
 40.11  unit of the resident district times the number of resident pupil 
 40.12  units attributable to the pupil for the time the pupil is 
 40.13  enrolled in a nonresident district. 
 40.14     (c) Aid paid to a district serving nonresidents must be 
 40.15  increased by an amount equal to the aid reduction to the 
 40.16  resident district under paragraphs (b) and (d) revenue per pupil 
 40.17  unit of the resident district under subdivision 3, clause (1), 
 40.18  (2), or (3), minus the revenue attributable to the pupil in the 
 40.19  nonresident district under subdivision 3, clause (4), for the 
 40.20  time the pupil is enrolled in the nonresident district.  
 40.21     (d) If the amount of the reduction to be made from the aid 
 40.22  of a district is greater than the amount of aid otherwise due 
 40.23  the district, the excess reduction must be made from other state 
 40.24  aids due the district. 
 40.25     <b>EFFECTIVE DATE:</b>  This section is effective the day 
 40.26  following final enactment. 
 40.27     Sec. 11.  Minnesota Statutes 1999 Supplement, section 
 40.28  124D.87, is amended to read: 
 40.29     124D.87 [INTERDISTRICT DESEGREGATION OR INTEGRATION 
 40.30  TRANSPORTATION AID.] 
 40.31     (a) A district that provides transportation of pupils to 
 40.32  and from an interdistrict program for desegregation or 
 40.33  integration purposes is eligible for state aid to cover 
 40.34  reimburse the additional costs of transportation during the 
 40.35  preceding fiscal year.  
 40.36     (b) A district in the metropolitan area may apply to the 
 41.1   commissioner for state aid to cover reimburse the costs of 
 41.2   transporting pupils who are enrolled under section 
 41.3   124D.03 during the preceding fiscal year if the enrollment of 
 41.4   the student in the nonresident district contributes to 
 41.5   desegregation or integration purposes.  The commissioner shall 
 41.6   develop the form and manner of applications for state aid, the 
 41.7   criteria to be used to determine when transportation is for 
 41.8   desegregation or integration purposes, and the accounting 
 41.9   procedure to be used to determine excess costs.  In determining 
 41.10  aid amounts, the commissioner shall consider other revenue 
 41.11  received by the district for transportation for desegregation or 
 41.12  integration purposes. 
 41.13     (c) Aid must be paid under paragraph (b) only if aid 
 41.14  amounts under paragraph (a) have been fully funded. 
 41.15     <b>EFFECTIVE DATE:</b>  This section is effective July 1, 2001. 
 41.16     Sec. 12.  Minnesota Statutes 1999 Supplement, section 
 41.17  126C.05, subdivision 5, is amended to read: 
 41.18     Subd. 5.  [ADJUSTED PUPIL UNITS.] (a) Adjusted pupil units 
 41.19  for a district or charter school means the sum of: 
 41.20     (1) the number of pupil units served, according to 
 41.21  subdivision 7, plus 
 41.22     (2) pupil units according to subdivision 1 for whom the 
 41.23  district or charter school pays tuition under section 123A.18, 
 41.24  123A.22, 123A.30, 123A.32, 123A.44, 123A.488, 123B.88, 
 41.25  subdivision 4, 124D.04, 124D.05, 125A.03 to 125A.24, 125A.51, or 
 41.26  125A.65, minus 
 41.27     (3) pupil units according to subdivision 1 for whom the 
 41.28  district or charter school receives tuition under section 
 41.29  123A.18, 123A.22, 123A.30, 123A.32, 123A.44, 123A.488, 123B.88, 
 41.30  subdivision 4, 124D.04, 124D.05, 125A.03 to 125A.24, 125A.51, or 
 41.31  125A.65. 
 41.32     (b) Adjusted marginal cost pupil units means the greater of:
 41.33     (1) the sum of .9 .77 times the pupil units defined in 
 41.34  paragraph (a) for the current school year and .1 .23 times the 
 41.35  pupil units defined in paragraph (a) for the previous school 
 41.36  year; or 
 42.1      (2) the number of adjusted pupil units defined in paragraph 
 42.2   (a) for the current school year. 
 42.3      Sec. 13.  Minnesota Statutes 1999 Supplement, section 
 42.4   126C.05, subdivision 6, is amended to read: 
 42.5      Subd. 6.  [RESIDENT PUPIL UNITS.] (a) Resident pupil units 
 42.6   for a district means the number of pupil units according to 
 42.7   subdivision 1 residing in the district. 
 42.8      (b) Resident marginal cost pupil units means the greater of:
 42.9      (1) the sum of .9 .77 times the pupil units defined in 
 42.10  paragraph (a) for the current year and .1 .23 times the pupil 
 42.11  units defined in paragraph (a) for the previous school year; or 
 42.12     (2) the number of resident pupil units defined in paragraph 
 42.13  (a) for the current school year. 
 42.14     Sec. 14.  Minnesota Statutes 1999 Supplement, section 
 42.15  126C.052, is amended to read: 
 42.16     126C.052 [CLASS SIZE, ALL-DAY KINDERGARTEN, AND SPECIAL 
 42.17  EDUCATION STUDENT-TO-INSTRUCTOR RATIO RESERVE.] 
 42.18     A district is required to reserve $3 in fiscal year 2000 
 42.19  and $11 in fiscal year 2001 and later per adjusted marginal cost 
 42.20  pupil unit for class size reduction, all-day kindergarten, or 
 42.21  for reducing special education student-to-instructor ratios.  
 42.22  The school board of each district must pass a resolution stating 
 42.23  which one of these three programs will be funded with this 
 42.24  reserve.  The reserve amount under this section must be 
 42.25  allocated to the education site as defined in section 123B.04, 
 42.26  subdivision 1, according to a plan adopted by the school board. 
 42.27     <b>EFFECTIVE DATE:</b>  This section is effective the day 
 42.28  following final enactment. 
 42.29     Sec. 15.  Minnesota Statutes 1999 Supplement, section 
 42.30  126C.10, subdivision 2, is amended to read: 
 42.31     Subd. 2.  [BASIC REVENUE.] The basic revenue for each 
 42.32  district equals the formula allowance times the resident 
 42.33  adjusted marginal cost pupil units for the school year.  The 
 42.34  formula allowance for fiscal year 1998 is $3,581.  The formula 
 42.35  allowance for fiscal year 1999 is $3,530.  The formula allowance 
 42.36  for fiscal year 2000 is $3,740.  The formula allowance for 
 43.1   fiscal year 2001 and subsequent fiscal years is $3,875 $3,964. 
 43.2      <b>EFFECTIVE DATE:</b>  This section is effective the day 
 43.3   following final enactment. 
 43.4      Sec. 16.  Minnesota Statutes 1999 Supplement, section 
 43.5   126C.10, subdivision 14, is amended to read: 
 43.6      Subd. 14.  [USES OF TOTAL OPERATING CAPITAL REVENUE.] Total 
 43.7   operating capital revenue may be used only for the following 
 43.8   purposes: 
 43.9      (1) to acquire land for school purposes; 
 43.10     (2) to acquire or construct buildings for school purposes; 
 43.11     (3) to rent or lease buildings, including the costs of 
 43.12  building repair or improvement that are part of a lease 
 43.13  agreement; 
 43.14     (4) to improve and repair school sites and buildings, and 
 43.15  equip or reequip school buildings with permanent attached 
 43.16  fixtures, including library media centers; 
 43.17     (5) for a surplus school building that is used 
 43.18  substantially for a public nonschool purpose; 
 43.19     (6) to eliminate barriers or increase access to school 
 43.20  buildings by individuals with a disability; 
 43.21     (7) to bring school buildings into compliance with the 
 43.22  Uniform Fire Code adopted according to chapter 299F; 
 43.23     (8) to remove asbestos from school buildings, encapsulate 
 43.24  asbestos, or make asbestos-related repairs; 
 43.25     (9) to clean up and dispose of polychlorinated biphenyls 
 43.26  found in school buildings; 
 43.27     (10) to clean up, remove, dispose of, and make repairs 
 43.28  related to storing heating fuel or transportation fuels such as 
 43.29  alcohol, gasoline, fuel oil, and special fuel, as defined in 
 43.30  section 296A.01; 
 43.31     (11) for energy audits for school buildings and to modify 
 43.32  buildings if the audit indicates the cost of the modification 
 43.33  can be recovered within ten years; 
 43.34     (12) to improve buildings that are leased according to 
 43.35  section 123B.51, subdivision 4; 
 43.36     (13) to pay special assessments levied against school 
 44.1   property but not to pay assessments for service charges; 
 44.2      (14) to pay principal and interest on state loans for 
 44.3   energy conservation according to section 216C.37 or loans made 
 44.4   under the Northeast Minnesota Economic Protection Trust Fund Act 
 44.5   according to sections 298.292 to 298.298; 
 44.6      (15) to purchase or lease interactive telecommunications 
 44.7   equipment; 
 44.8      (16) by board resolution, to transfer money into the debt 
 44.9   redemption fund to:  (i) pay the amounts needed to meet, when 
 44.10  due, principal and interest payments on certain obligations 
 44.11  issued according to chapter 475; or (ii) pay principal and 
 44.12  interest on debt service loans or capital loans according to 
 44.13  section 126C.70; 
 44.14     (17) to pay operating capital-related assessments of any 
 44.15  entity formed under a cooperative agreement between two or more 
 44.16  districts; 
 44.17     (18) to purchase or lease computers and related materials, 
 44.18  copying machines, telecommunications equipment, and other 
 44.19  noninstructional equipment; 
 44.20     (19) to purchase or lease assistive technology or equipment 
 44.21  for instructional programs; 
 44.22     (20) to purchase textbooks; 
 44.23     (21) to purchase new and replacement library books media 
 44.24  resources or technology; 
 44.25     (22) to purchase vehicles; 
 44.26     (23) to purchase or lease telecommunications equipment, 
 44.27  computers, and related equipment for integrated information 
 44.28  management systems for: 
 44.29     (i) managing and reporting learner outcome information for 
 44.30  all students under a results-oriented graduation rule; 
 44.31     (ii) managing student assessment, services, and achievement 
 44.32  information required for students with individual education 
 44.33  plans; and 
 44.34     (iii) other classroom information management needs; and 
 44.35     (24) to pay personnel costs directly related to the 
 44.36  acquisition, operation, and maintenance of telecommunications 
 45.1   systems, computers, related equipment, and network and 
 45.2   applications software. 
 45.3      <b>EFFECTIVE DATE:</b>  This section is effective for the 
 45.4   2000-2001 and later school years. 
 45.5      Sec. 17.  Minnesota Statutes 1999 Supplement, section 
 45.6   126C.10, subdivision 23, is amended to read: 
 45.7      Subd. 23.  [REFERENDUM OFFSET ADJUSTMENT.] A district that 
 45.8   qualifies for the referendum allowance reduction under section 
 45.9   126C.17, subdivision 12, and whose referendum allowance under 
 45.10  section 126C.17, subdivision 1, as adjusted under section 
 45.11  126C.17, subdivisions 2 and 12, does not exceed the referendum 
 45.12  allowance limit under section 126C.17, subdivision 2, clause 
 45.13  (2), shall receive a referendum offset adjustment.  In fiscal 
 45.14  year 2000 and thereafter, the referendum offset adjustment is 
 45.15  equal to $25 per resident adjusted marginal cost pupil unit. 
 45.16     <b>EFFECTIVE DATE:</b>  This section is effective the day 
 45.17  following final enactment. 
 45.18     Sec. 18.  Minnesota Statutes 1999 Supplement, section 
 45.19  126C.10, subdivision 24, is amended to read: 
 45.20     Subd. 24.  [EQUITY REVENUE.] (a) A school district 
 45.21  qualifies for equity revenue if the school district's adjusted 
 45.22  marginal cost pupil unit amount of basic revenue, supplemental 
 45.23  revenue, transition revenue, and referendum revenue is less than 
 45.24  the value of the school district at or immediately above the 
 45.25  90th percentile of school districts in its equity region for 
 45.26  those revenue categories and the school district's 
 45.27  administrative offices are not located in a city of the first 
 45.28  class on July 1, 1999. 
 45.29     (b) Equity revenue for a qualifying district that receives 
 45.30  referendum revenue under section 126C.17, subdivision 4, equals 
 45.31  the product of (1) the district's adjusted marginal cost pupil 
 45.32  units for that year; times (2) the sum of (i) $10, plus (ii) 
 45.33  $30, times the school district's equity index computed under 
 45.34  section 126C.10, subdivision 6 27. 
 45.35     (c) Equity revenue for a qualifying district that does not 
 45.36  receive referendum revenue under section 126C.17, subdivision 4, 
 46.1   equals the product of the district's adjusted marginal cost 
 46.2   pupil units for that year times $10. 
 46.3      <b>EFFECTIVE DATE:</b>  This section is effective for revenue in 
 46.4   fiscal year 2000. 
 46.5      Sec. 19.  Minnesota Statutes 1999 Supplement, section 
 46.6   126C.10, subdivision 25, is amended to read: 
 46.7      Subd. 25.  [REGIONAL EQUITY GAP.] The regional equity gap 
 46.8   equals the difference between the value of the school district 
 46.9   at or immediately above the fifth percentile of adjusted general 
 46.10  revenue per adjusted marginal cost pupil unit and the value of 
 46.11  the school district at or immediately above the 90th percentile 
 46.12  of adjusted general revenue per adjusted marginal cost pupil 
 46.13  unit. 
 46.14     <b>EFFECTIVE DATE:</b>  This section is effective for revenue in 
 46.15  fiscal year 2000. 
 46.16     Sec. 20.  Minnesota Statutes 1999 Supplement, section 
 46.17  126C.10, subdivision 26, is amended to read: 
 46.18     Subd. 26.  [DISTRICT EQUITY GAP.] A district's equity gap 
 46.19  equals the greater of zero or the difference between the 
 46.20  district's adjusted general revenue and the value of the school 
 46.21  district at or immediately above the regional 90th percentile of 
 46.22  adjusted general revenue per adjusted marginal cost pupil unit. 
 46.23     <b>EFFECTIVE DATE:</b>  This section is effective for revenue in 
 46.24  fiscal year 2000. 
 46.25     Sec. 21.  Minnesota Statutes 1999 Supplement, section 
 46.26  126C.12, subdivision 1, is amended to read: 
 46.27     Subdivision 1.  [REVENUE.] Of a district's general 
 46.28  education revenue for fiscal year 2000 and thereafter each 
 46.29  school district shall reserve an amount equal to the formula 
 46.30  allowance multiplied by the following calculation: 
 46.31     (1) the sum of adjusted marginal cost pupil units pupils in 
 46.32  average daily membership, according to section 126C.05, 
 46.33  subdivision 5, in kindergarten times .057; plus 
 46.34     (2) the sum of adjusted marginal cost pupil units pupils in 
 46.35  average daily membership, according to section 126C.05, 
 46.36  subdivision 5, in grades 1 to 3 times .115; plus 
 47.1      (3) the sum of adjusted marginal cost pupil units pupils in 
 47.2   average daily membership, according to section 126C.05, 
 47.3   subdivision 5, in grades 4 to 6 times .06. 
 47.4      <b>EFFECTIVE DATE:</b>  This section is effective the day 
 47.5   following final enactment. 
 47.6      Sec. 22.  Minnesota Statutes 1998, section 126C.16, 
 47.7   subdivision 3, is amended to read: 
 47.8      Subd. 3.  [PER PUPIL REVENUE CONVERSION.] (a) The 
 47.9   department must convert each district's referendum revenue 
 47.10  authority for fiscal year 2002 and later years to an allowance 
 47.11  per pupil unit as follows:  the revenue allowance equals the 
 47.12  amount determined by dividing the district's maximum revenue 
 47.13  under section 126C.17, for fiscal year 2001 by the district's 
 47.14  2000-2001 resident marginal cost pupil units.  A district's 
 47.15  maximum revenue for all later years for which the revenue is 
 47.16  authorized equals the revenue allowance times the district's 
 47.17  resident marginal cost pupil units for that year.  
 47.18     (b) The referendum allowance reduction must be applied 
 47.19  first to the authority with the earliest expiration date. 
 47.20     Sec. 23.  Minnesota Statutes 1999 Supplement, section 
 47.21  126C.17, subdivision 9, is amended to read: 
 47.22     Subd. 9.  [REFERENDUM REVENUE.] (a) The revenue authorized 
 47.23  by section 126C.10, subdivision 1, may be increased in the 
 47.24  amount approved by the voters of the district at a referendum 
 47.25  called for the purpose.  The referendum may be called by the 
 47.26  board or shall be called by the board upon written petition of 
 47.27  qualified voters of the district.  The referendum must be 
 47.28  conducted one or two calendar years before the increased levy 
 47.29  authority, if approved, first becomes payable.  Only one 
 47.30  election to approve an increase may be held in a calendar year.  
 47.31  Unless the referendum is conducted by mail under paragraph (g), 
 47.32  the referendum must be held on the first Tuesday after the first 
 47.33  Monday in November.  The ballot must state the maximum amount of 
 47.34  the increased revenue per resident marginal cost pupil unit, the 
 47.35  estimated referendum tax rate as a percentage of referendum 
 47.36  market value in the first year it is to be levied, and that the 
 48.1   revenue must be used to finance school operations.  The ballot 
 48.2   may state a schedule, determined by the board, of increased 
 48.3   revenue per resident marginal cost pupil units unit that differs 
 48.4   from year to year over the number of years for which the 
 48.5   increased revenue is authorized.  If the ballot contains a 
 48.6   schedule showing different amounts, it must also indicate the 
 48.7   estimated referendum tax rate as a percent of referendum market 
 48.8   value for the amount specified for the first year and for the 
 48.9   maximum amount specified in the schedule.  The ballot may state 
 48.10  that existing referendum levy authority is expiring.  In this 
 48.11  case, the ballot may also compare the proposed levy authority to 
 48.12  the existing expiring levy authority, and express the proposed 
 48.13  increase as the amount, if any, over the expiring referendum 
 48.14  levy authority.  The ballot must designate the specific number 
 48.15  of years, not to exceed ten, for which the referendum 
 48.16  authorization applies.  The notice required under section 275.60 
 48.17  may be modified to read, in cases of renewing existing levies: 
 48.18     "BY VOTING "YES" ON THIS BALLOT QUESTION, YOU MAY BE VOTING 
 48.19     FOR A PROPERTY TAX INCREASE." 
 48.20     The ballot may contain a textual portion with the 
 48.21  information required in this subdivision and a question stating 
 48.22  substantially the following:  
 48.23     "Shall the increase in the revenue proposed by (petition 
 48.24  to) the board of ........., School District No. .., be approved?"
 48.25     If approved, an amount equal to the approved revenue per 
 48.26  resident marginal cost pupil unit times the resident marginal 
 48.27  cost pupil units for the school year beginning in the year after 
 48.28  the levy is certified shall be authorized for certification for 
 48.29  the number of years approved, if applicable, or until revoked or 
 48.30  reduced by the voters of the district at a subsequent referendum.
 48.31     (b) The board must prepare and deliver by first class mail 
 48.32  at least 15 days but no more than 30 days before the day of the 
 48.33  referendum to each taxpayer a notice of the referendum and the 
 48.34  proposed revenue increase.  The board need not mail more than 
 48.35  one notice to any taxpayer.  For the purpose of giving mailed 
 48.36  notice under this subdivision, owners must be those shown to be 
 49.1   owners on the records of the county auditor or, in any county 
 49.2   where tax statements are mailed by the county treasurer, on the 
 49.3   records of the county treasurer.  Every property owner whose 
 49.4   name does not appear on the records of the county auditor or the 
 49.5   county treasurer is deemed to have waived this mailed notice 
 49.6   unless the owner has requested in writing that the county 
 49.7   auditor or county treasurer, as the case may be, include the 
 49.8   name on the records for this purpose.  The notice must project 
 49.9   the anticipated amount of tax increase in annual dollars and 
 49.10  annual percentage for typical residential homesteads, 
 49.11  agricultural homesteads, apartments, and commercial-industrial 
 49.12  property within the school district. 
 49.13     The notice for a referendum may state that an existing 
 49.14  referendum levy is expiring and project the anticipated amount 
 49.15  of increase over the existing referendum levy in the first year, 
 49.16  if any, in annual dollars and annual percentage for typical 
 49.17  residential homesteads, agricultural homesteads, apartments, and 
 49.18  commercial-industrial property within the district. 
 49.19     The notice must include the following statement:  "Passage 
 49.20  of this referendum will result in an increase in your property 
 49.21  taxes."  However, in cases of renewing existing levies, the 
 49.22  notice may include the following statement:  "Passage of this 
 49.23  referendum may result in an increase in your property taxes." 
 49.24     (c) A referendum on the question of revoking or reducing 
 49.25  the increased revenue amount authorized pursuant to paragraph 
 49.26  (a) may be called by the board and shall be called by the board 
 49.27  upon the written petition of qualified voters of the district.  
 49.28  A referendum to revoke or reduce the levy amount must be based 
 49.29  upon the dollar amount, local tax rate, or amount per resident 
 49.30  marginal cost pupil unit, that was stated to be the basis for 
 49.31  the initial authorization.  Revenue approved by the voters of 
 49.32  the district pursuant to paragraph (a) must be received at least 
 49.33  once before it is subject to a referendum on its revocation or 
 49.34  reduction for subsequent years.  Only one revocation or 
 49.35  reduction referendum may be held to revoke or reduce referendum 
 49.36  revenue for any specific year and for years thereafter. 
 50.1      (d) A petition authorized by paragraph (a) or (c) is 
 50.2   effective if signed by a number of qualified voters in excess of 
 50.3   15 percent of the registered voters of the district on the day 
 50.4   the petition is filed with the board.  A referendum invoked by 
 50.5   petition must be held on the date specified in paragraph (a). 
 50.6      (e) The approval of 50 percent plus one of those voting on 
 50.7   the question is required to pass a referendum authorized by this 
 50.8   subdivision. 
 50.9      (f) At least 15 days before the day of the referendum, the 
 50.10  district must submit a copy of the notice required under 
 50.11  paragraph (b) to the commissioner and to the county auditor of 
 50.12  each county in which the district is located.  Within 15 days 
 50.13  after the results of the referendum have been certified by the 
 50.14  board, or in the case of a recount, the certification of the 
 50.15  results of the recount by the canvassing board, the district 
 50.16  must notify the commissioner of the results of the referendum. 
 50.17     (g) Except for a referendum held under subdivision 11, any 
 50.18  referendum under this section held on a day other than the first 
 50.19  Tuesday after the first Monday in November must be conducted by 
 50.20  mail in accordance with section 204B.46.  Notwithstanding 
 50.21  paragraph (b) to the contrary, in the case of a referendum 
 50.22  conducted by mail under this paragraph, the notice required by 
 50.23  paragraph (b) must be prepared and delivered by first class mail 
 50.24  at least 20 days before the referendum. 
 50.25     <b>EFFECTIVE DATE:</b>  This section is effective the day 
 50.26  following final enactment. 
 50.27     Sec. 24.  Minnesota Statutes 1999 Supplement, section 
 50.28  126C.44, as amended by Laws 2000, chapter 254, section 44, is 
 50.29  amended to read: 
 50.30     126C.44 [CRIME-RELATED COSTS LEVY.] 
 50.31     Each district may make a levy on all taxable property 
 50.32  located within the district for the purposes specified in this 
 50.33  subdivision section.  The maximum amount which may be levied for 
 50.34  all costs under this subdivision section shall be equal to 
 50.35  $1.50 $11.00 multiplied by the population of the school district 
 50.36  district's adjusted marginal cost pupil units for the school 
 51.1   year.  For purposes of this subdivision, "population" of the 
 51.2   school district means the same as contained in section 275.14.  
 51.3   The proceeds of the levy must be used for directly funding the 
 51.4   following purposes or for reimbursing the cities and counties 
 51.5   who contract with the district for the following purposes:  (1) 
 51.6   to pay the costs incurred for the salaries, benefits, and 
 51.7   transportation costs of peace officers and sheriffs for 
 51.8   liaison in services in the district's middle and secondary 
 51.9   schools; (2) to pay the costs for a drug abuse prevention 
 51.10  program as defined in section 609.101, subdivision 3, paragraph 
 51.11  (e), in the elementary schools; (3) to pay the costs for a gang 
 51.12  resistance education training curriculum in the middle 
 51.13  district's schools; or (4) to pay the costs for security in the 
 51.14  districts' schools and on school property; or (5) to pay the 
 51.15  costs for other crime prevention and, drug abuse, student and 
 51.16  staff safety, and violence prevention measures taken by the 
 51.17  school district.  The district must initially attempt to 
 51.18  contract for services to be provided by peace officers or 
 51.19  sheriffs with the police department of each city or the 
 51.20  sheriff's department of the county within the district 
 51.21  containing the school receiving the services.  If a local police 
 51.22  department or a county sheriff's department does not wish to 
 51.23  provide the necessary services, the district may contract for 
 51.24  these services with any other police or sheriff's department 
 51.25  located entirely or partially within the school district's 
 51.26  boundaries.  The levy authorized under this subdivision section 
 51.27  is not included in determining the school district's levy 
 51.28  limitations. 
 51.29     <b>EFFECTIVE DATE:</b>  This section is effective July 1, 2000, 
 51.30  for levies for taxes payable in 2001 and later. 
 51.31     Sec. 25.  Minnesota Statutes 1999 Supplement, section 
 51.32  127A.45, subdivision 12a, is amended to read: 
 51.33     Subd. 12a.  [FORWARD SHIFTED AID PAYMENTS.] (a) Nineteen 
 51.34  percent of the state aid in fiscal year 1999, and 31 percent of 
 51.35  the state aid in fiscal years 2000 and later received under 
 51.36  section 124D.86 must be paid by the state to the recipient 
 52.1   school district on July 15 of that year.  The recipient school 
 52.2   district must recognize this aid in the same fiscal year as the 
 52.3   levy is recognized. 
 52.4      (b) One hundred percent of the state aid in fiscal years 
 52.5   2003 and later received under section 124D.87 must be paid by 
 52.6   the state to the recipient school district on August 30 of that 
 52.7   year.  The recipient school district must recognize this aid in 
 52.8   the previous fiscal year. 
 52.9      Sec. 26.  Minnesota Statutes 1999 Supplement, section 
 52.10  127A.51, is amended to read: 
 52.11     127A.51 [STATEWIDE AVERAGE REVENUE.] 
 52.12     By October 1 of each year the commissioner must estimate 
 52.13  the statewide average adjusted general revenue per adjusted 
 52.14  marginal cost pupil unit and the disparity in adjusted general 
 52.15  revenue among pupils and districts by computing the ratio of the 
 52.16  ninety-fifth percentile to the fifth percentile of adjusted 
 52.17  general revenue.  The commissioner must provide that information 
 52.18  to all districts. 
 52.19     If the disparity in adjusted general revenue as measured by 
 52.20  the ratio of the ninety-fifth percentile to the fifth percentile 
 52.21  increases in any year, the commissioner shall recommend to the 
 52.22  legislature options for change in the general education formula 
 52.23  that will limit the disparity in adjusted general revenue to no 
 52.24  more than the disparity for the previous school year.  The 
 52.25  commissioner must submit the recommended options to the 
 52.26  education committees of the legislature by January 15. 
 52.27     For purposes of this section and section 126C.10, adjusted 
 52.28  general revenue means the sum of basic revenue under section 
 52.29  126C.10, subdivision 2; supplemental revenue under section 
 52.30  126C.10, subdivisions 9 and 12; transition revenue under section 
 52.31  126C.10, subdivision 20; and referendum revenue under section 
 52.32  126C.17. 
 52.33     <b>EFFECTIVE DATE:</b>  This section is effective the day 
 52.34  following final enactment. 
 52.35     Sec. 27.  Minnesota Statutes 1998, section 128D.11, 
 52.36  subdivision 3, is amended to read: 
 53.1      Subd. 3.  [NO ELECTION.] Subject to the provisions of 
 53.2   subdivisions 7 to 10, the school district may also by a 
 53.3   two-thirds majority vote of all the members of its board of 
 53.4   education and without any election by the voters of the 
 53.5   district, issue and sell in each calendar year general 
 53.6   obligation bonds of the district in an amount not to exceed 
 53.7   5-1/10 per cent of the net tax capacity of the taxable property 
 53.8   in the district (plus, for calendar years 1990 to 2003, an 
 53.9   amount not to exceed $7,500,000, and for calendar years 2004 to 
 53.10  2008 an amount not to exceed $15,000,000; with an additional 
 53.11  provision that any amount of bonds so authorized for sale in a 
 53.12  specific year and not sold can be carried forward and sold in 
 53.13  the year immediately following).  
 53.14     Sec. 28.  Laws 1992, chapter 499, article 7, section 31, as 
 53.15  amended by Laws 1998, chapter 398, article 1, section 39, and 
 53.16  Laws 1999, chapter 241, article 1, section 31, is amended to 
 53.17  read: 
 53.18     Sec. 31.  [REPEALER.] 
 53.19     Minnesota Statutes 1990, sections 124A.02, subdivision 24; 
 53.20  124A.23, subdivisions 2 and 3; 124A.26, subdivisions 2 and 3; 
 53.21  124A.27; 124A.28; and 124A.29, subdivision 2; and Minnesota 
 53.22  Statutes 1991 Supplement, sections 124A.02, subdivisions 16 and 
 53.23  23; 124A.03, subdivisions 1b, 1c, 1d, 1e, 1f, 1g, 1h, and 1i; 
 53.24  124A.04; 124A.22, subdivisions 2, 3, 4, 4a, 4b, 8, and 9; 
 53.25  124A.23, subdivisions 1, 4, and 5; 124A.24; 124A.26, subdivision 
 53.26  1; and 124A.29, subdivision 1, are repealed effective June 30, 
 53.27  2001 2004; Laws 1991, chapter 265, article 7, section 35, is 
 53.28  repealed. 
 53.29     Sec. 29.  Laws 1992, chapter 499, article 7, section 32, is 
 53.30  amended to read: 
 53.31     Sec. 32.  [EFFECTIVE DATE.] 
 53.32     Sections 1, 9, 14, 18, 19, 20, 21, 22, 23, and 30 are 
 53.33  effective the day following final enactment.  Sections 4 to 8 
 53.34  are effective for revenue for fiscal year 2000 2002. 
 53.35     Sec. 30.  Laws 1999, chapter 241, article 1, section 68, 
 53.36  subdivision 2, is amended to read: 
 54.1      Subd. 2.  [GENERAL AND SUPPLEMENTAL EDUCATION AID.] For 
 54.2   general and supplemental education aid:  
 54.3    $3,062,321,000 $3,066,166,000    .....     2000
 54.4    $3,160,518,000 $3,247,635,000    .....     2001
 54.5      The 2000 appropriation includes $272,186,000 for 1999 and 
 54.6   $2,790,135,000 $2,793,980,000 for 2000.  
 54.7      The 2001 appropriation includes $310,015,000 $310,442,000 
 54.8   for 2000 and $2,850,503,000 $2,937,193,000 for 2001.  
 54.9      Sec. 31.  Laws 1999, chapter 241, article 1, section 68, 
 54.10  subdivision 4, is amended to read: 
 54.11     Subd. 4.  [TRANSPORTATION AID FOR ENROLLMENT OPTIONS.] For 
 54.12  transportation of pupils attending post-secondary institutions 
 54.13  according to Minnesota Statutes, section 124D.09, or for 
 54.14  transportation of pupils attending nonresident districts 
 54.15  according to Minnesota Statutes, section 124D.03: 
 54.16       $102,000 $70,000      .....     2000
 54.17       $102,000 $70,000      .....     2001
 54.18     Any balance in the first year does not cancel but is 
 54.19  available in the second year. 
 54.20     <b>EFFECTIVE DATE:</b>  This section is effective the day 
 54.21  following final enactment. 
 54.22     Sec. 32.  Laws 1999, chapter 241, article 1, section 68, 
 54.23  subdivision 5, is amended to read: 
 54.24     Subd. 5.  [DISTRICT COOPERATION REVENUE.] For district 
 54.25  cooperation revenue aid: 
 54.26       $5,940,000 $5,881,000    .....     2000
 54.27       $  563,000 $  556,000    .....     2001
 54.28     The 2000 appropriation includes $869,000 for 1999 and 
 54.29  $5,071,000 $5,012,000 for 2000. 
 54.30     The 2001 appropriation includes $563,000 $556,000 for 2000 
 54.31  and $0 for 2001. 
 54.32     <b>EFFECTIVE DATE:</b>  This section is effective the day 
 54.33  following final enactment. 
 54.34     Sec. 33.  Laws 1999, chapter 241, article 1, section 70, is 
 54.35  amended to read: 
 54.36     Sec. 70.  [EFFECTIVE DATES.] 
 55.1      Sections 13, 14, 26, 30, 37, and 39 are effective for 
 55.2   revenue for fiscal year 2000 and later.  Section 41 is effective 
 55.3   for revenue for fiscal year 2001 and later.  Sections 46, 47, 
 55.4   and 55 to 60 are effective the day following final enactment.  
 55.5   Section 61 is effective for taxes payable in 2000 and later. 
 55.6      <b>EFFECTIVE DATE:</b>  This section is effective the day 
 55.7   following final enactment. 
 55.8      Sec. 34.  [TRAINING AND EXPERIENCE REPLACEMENT REVENUE.] 
 55.9      (a) For fiscal year 2001 only, a school district's training 
 55.10  and experience replacement revenue equals the sum of the 
 55.11  following: 
 55.12     (1) the ratio of the amount of training and experience 
 55.13  revenue the district would have received for fiscal year 1999 
 55.14  calculated using the training and experience index in Minnesota 
 55.15  Statutes 1996, section 124A.04, to its resident pupil units for 
 55.16  that year, times the district's adjusted marginal cost pupil 
 55.17  units for fiscal year 2001, times .06; plus 
 55.18     (2) the difference between .47 times the training and 
 55.19  experience revenue the district would have received for fiscal 
 55.20  year 1999, calculated using the training and experience index in 
 55.21  Minnesota Statutes 1996, section 124A.04, and the amount 
 55.22  calculated in Minnesota Statutes, section 126C.10, subdivision 
 55.23  5, for fiscal year 2001, but not less than zero. 
 55.24     (b) This revenue is paid entirely in fiscal year 2001. 
 55.25     Sec. 35.  [LEVY RECOGNITION FOR INTEGRATION LEVY 
 55.26  ADJUSTMENT.] 
 55.27     Notwithstanding Minnesota Statutes, section 123B.75, 
 55.28  subdivision 5, the full amount of integration levy for taxes 
 55.29  payable in 2001, attributable to fiscal year 2001, for school 
 55.30  districts receiving revenue under Minnesota Statutes, section 
 55.31  124D.86, subdivision 3, clause (4), shall be recognized in 
 55.32  fiscal year 2001. 
 55.33     Sec. 36.  [FISCAL YEARS 2003 TO 2007 AIRPORT RUNWAY IMPACT 
 55.34  PUPIL UNIT AID; RICHFIELD.] 
 55.35     Subdivision 1.  [AIRPORT IMPACT ZONE PUPIL UNITS, 
 55.36  DEFINITION.] For the purposes of this section, "airport impact 
 56.1   zone pupil units" means the number of pupil units, according to 
 56.2   Minnesota Statutes 1999 Supplement, section 126C.05, subdivision 
 56.3   1, in school year 1998-1999 that were attributable to the 
 56.4   airport impact zone, as defined in Laws 1999, chapter 243, 
 56.5   article 16, section 35, subdivision 1. 
 56.6      Subd. 2.  [FISCAL YEAR 2003.] For fiscal year 2003 only, 
 56.7   independent school district No. 280, Richfield, is eligible for 
 56.8   declining pupil unit aid equal to the product of 70 percent of 
 56.9   the airport impact zone pupil units times the general education 
 56.10  formula allowance for fiscal year 2003. 
 56.11     Subd. 3.  [FISCAL YEAR 2004.] For fiscal year 2004 only, 
 56.12  independent school district No. 280, Richfield, is eligible for 
 56.13  declining pupil unit aid equal to the product of 70 percent of 
 56.14  the airport impact zone pupil units times the general education 
 56.15  formula allowance for fiscal year 2004. 
 56.16     Subd. 4.  [FISCAL YEAR 2005.] For fiscal year 2005 only, 
 56.17  independent school district No. 280, Richfield, is eligible for 
 56.18  declining pupil unit aid equal to the product of 52.5 percent of 
 56.19  the airport impact zone pupil units times the general education 
 56.20  formula allowance for fiscal year 2005. 
 56.21     Subd. 5.  [FISCAL YEAR 2006.] For fiscal year 2006 only, 
 56.22  independent school district No. 280, Richfield, is eligible for 
 56.23  declining pupil unit aid equal to the product of 35 percent of 
 56.24  the airport impact zone pupil units times the general education 
 56.25  formula allowance for fiscal year 2006. 
 56.26     Subd. 6.  [FISCAL YEAR 2007.] For fiscal year 2007 only, 
 56.27  independent school district No. 280, Richfield, is eligible for 
 56.28  declining pupil unit aid equal to the product of 17.5 percent of 
 56.29  the airport impact zone pupil units times the general education 
 56.30  formula allowance for fiscal year 2007. 
 56.31     <b>EFFECTIVE DATE:</b>  This section is effective the day 
 56.32  following final enactment. 
 56.33     Sec. 37.  [SPARSITY CORRECTION REVENUE.] 
 56.34     Subdivision 1.  [QUALIFICATION FOR REVENUE.] A school 
 56.35  district qualifies for sparsity correction revenue if it 
 56.36  qualifies for sparsity revenue, according to Minnesota Statutes, 
 57.1   section 126C.10, subdivisions 7 and 8, in fiscal year 2000 or 
 57.2   2001 and the amount of sparsity revenue it received in those 
 57.3   years is less than the amount it would have received in fiscal 
 57.4   year 2000 or 2001 prior to the passage of Laws 1999, chapter 
 57.5   241, article 1, sections 18 and 19. 
 57.6      Subd. 2.  [FISCAL YEAR 2000 CALCULATION.] For fiscal year 
 57.7   2000, a school district's sparsity correction revenue equals the 
 57.8   difference between sparsity revenue in fiscal year 2000 
 57.9   calculated according to Laws 1999, chapter 241, article 1, 
 57.10  sections 18 and 19, and the sparsity revenue the district would 
 57.11  have received for fiscal year 2000 had these sections of law not 
 57.12  been approved. 
 57.13     Subd. 3.  [FISCAL YEAR 2001 CALCULATION.] For fiscal year 
 57.14  2001, a school district's sparsity correction revenue equals .5 
 57.15  times the difference between sparsity revenue in fiscal year 
 57.16  2001 calculated according to Laws 1999, chapter 241, article 1, 
 57.17  sections 18 and 19, and the sparsity revenue the district would 
 57.18  have received for fiscal year 2001 had these sections of law not 
 57.19  been approved. 
 57.20     Sec. 38.  [SEVERANCE LEVY; MESABI EAST.] 
 57.21     Independent school district No. 2711, Mesabi East, may levy 
 57.22  an amount up to $250,000 each year for a period of five years 
 57.23  for severance and early retirement incentives for licensed 
 57.24  employees who have retired early as a result of the district's 
 57.25  combination that was effective July 1, 1991. 
 57.26     <b>EFFECTIVE DATE:</b>  This section is effective for taxes 
 57.27  payable in 2001 and later years. 
 57.28     Sec. 39.  [APPROPRIATIONS.] 
 57.29     Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
 57.30  LEARNING.] The sums indicated in this section are appropriated 
 57.31  from the general fund to the department of children, families, 
 57.32  and learning for the fiscal years designated. 
 57.33     Subd. 2.  [SPARSITY CORRECTION REVENUE.] For sparsity 
 57.34  correction revenue: 
 57.35       $1,030,000     .....     2000
 57.36       $  515,000     .....     2001
 58.1      Subd. 3.  [TRAINING AND EXPERIENCE REPLACEMENT 
 58.2   REVENUE.] For training and experience replacement revenue: 
 58.3        $30,794,000    .....     2001 
 58.4      <b>EFFECTIVE DATE:</b>  This section is effective the day 
 58.5   following final enactment. 
 58.6                              ARTICLE 3 
 58.7               KINDERGARTEN THROUGH GRADE 12 EDUCATION 
 58.8                           SPECIAL PROGRAMS 
 58.9      Section 1.  Minnesota Statutes 1999 Supplement, section 
 58.10  122A.31, subdivision 1, is amended to read: 
 58.11     Subdivision 1.  [REQUIREMENTS FOR AMERICAN SIGN 
 58.12  LANGUAGE/ENGLISH INTERPRETERS.] (a) In addition to any other 
 58.13  requirements that a school district establishes, any person 
 58.14  employed to provide American sign language/English interpreting 
 58.15  or sign transliterating services on a full-time or part-time 
 58.16  basis for a school district after July 1, 2000, must: 
 58.17     (1) hold current interpreter and transliterator 
 58.18  certificates awarded by the Registry of Interpreters for the 
 58.19  Deaf (RID), or the general level interpreter proficiency 
 58.20  certificate awarded by the National Association of the 
 58.21  Deaf (NAD), or a comparable state certification from the 
 58.22  commissioner of children, families, and learning; and 
 58.23     (2) satisfactorily complete an interpreter/transliterator 
 58.24  training program affiliated with an accredited educational 
 58.25  institution. 
 58.26     (b) To provide American sign language/English interpreting 
 58.27  or transliterating services on a full-time or part-time basis, a 
 58.28  person employed in a school district during the 1999-2000 school 
 58.29  year must only comply with paragraph (a), clause (1).  The 
 58.30  commissioner shall grant a nonrenewable, one-year provisional 
 58.31  certificate to individuals who have not attained a current 
 58.32  applicable transliterator certificate pursuant to paragraph (a), 
 58.33  clause (1).  During the one-year provisional period, the 
 58.34  interpreter/transliterator must develop and implement an 
 58.35  education plan in collaboration with a mentor under paragraph 
 58.36  (d).  This paragraph shall expire on June 30, 2001. 
 59.1      (c) Graduates of an interpreter/transliterator program 
 59.2   affiliated with an accredited education institution shall be 
 59.3   granted a two-year provisional certificate by the commissioner.  
 59.4   During the two-year provisional period, the 
 59.5   interpreter/transliterator must develop and implement an 
 59.6   education plan in collaboration with a mentor under paragraph 
 59.7   (d).  This paragraph applies to spring semester 2000 graduates 
 59.8   and thereafter. 
 59.9      (d) A mentor of a provisionally certified 
 59.10  interpreter/transliterator must be an interpreter/transliterator 
 59.11  who has either NAD level IV or V certification or RID certified 
 59.12  interpreter and certified transliterator certification and have 
 59.13  at least three years interpreting/transliterating experience in 
 59.14  any educational setting.  The mentor, in collaboration with the 
 59.15  provisionally certified interpreter/transliterator, shall 
 59.16  develop and implement an educational plan designed to meet the 
 59.17  requirements of paragraph (a), clause (1), and include a weekly 
 59.18  on-site mentoring process. 
 59.19     (e) A school district may not employ an 
 59.20  interpreter/transliterator who has not been certified under 
 59.21  paragraphs (a), (b), or (c). 
 59.22     Sec. 2.  Minnesota Statutes 1998, section 122A.31, 
 59.23  subdivision 4, is amended to read: 
 59.24     Subd. 4.  [REIMBURSEMENT.] (a) For purposes of revenue 
 59.25  under sections 125A.77 and section 125A.78, the department of 
 59.26  children, families, and learning must only reimburse school 
 59.27  districts for the services of those interpreters/transliterators 
 59.28  who satisfy the standards of competency under this section.  
 59.29     (b) Notwithstanding paragraph (a), a district shall be 
 59.30  reimbursed for the services of interpreters with a nonrenewable 
 59.31  provisional certificate and interpreters/transliterators 
 59.32  employed to mentor the provisional certified interpreters. 
 59.33     Sec. 3.  Minnesota Statutes 1999 Supplement, section 
 59.34  124D.68, subdivision 9, is amended to read: 
 59.35     Subd. 9.  [ENROLLMENT VERIFICATION.] (a) For a pupil 
 59.36  attending an eligible program full time under subdivision 3, 
 60.1   paragraph (d), the department must pay 90 percent of the 
 60.2   district's average general education revenue less basic skills 
 60.3   revenue to the eligible program and ten percent of the 
 60.4   district's average general education revenue less basic skills 
 60.5   revenue to the resident contracting district within 30 days 
 60.6   after the eligible program verifies enrollment using the form 
 60.7   provided by the department.  For a pupil attending an eligible 
 60.8   program part time, revenue shall be reduced proportionately, 
 60.9   according to the amount of time the pupil attends the program, 
 60.10  and the payments to the eligible program and the resident 
 60.11  contracting district shall be reduced accordingly.  A pupil for 
 60.12  whom payment is made according to this section may not be 
 60.13  counted by any district for any purpose other than computation 
 60.14  of general education revenue.  If payment is made for a pupil 
 60.15  under this subdivision, a district shall not reimburse a program 
 60.16  under section 124D.69 for the same pupil.  Basic skills revenue 
 60.17  shall be paid according to section 126C.10, subdivision 4. 
 60.18     (b) The department must pay up to 100 percent of the 
 60.19  revenue to the eligible program if there is an agreement to that 
 60.20  effect between the school district and the eligible program. 
 60.21     (c) Notwithstanding paragraphs (a) and (b), for an eligible 
 60.22  program that provides chemical treatment services to students, 
 60.23  the department must pay 100 percent of the revenue to the 
 60.24  eligible program. 
 60.25     <b>EFFECTIVE DATE:</b>  This section is effective the day 
 60.26  following final enactment. 
 60.27     Sec. 4.  Minnesota Statutes 1999 Supplement, section 
 60.28  124D.84, subdivision 1, is amended to read: 
 60.29     Subdivision 1.  [AWARDS.] The commissioner, with the advice 
 60.30  and counsel of the Minnesota Indian scholarship committee, may 
 60.31  award scholarships to any Minnesota resident student who is of 
 60.32  one-fourth or more Indian ancestry, who has applied for other 
 60.33  existing state and federal scholarship and grant programs, and 
 60.34  who, in the opinion of the commissioner, has the capabilities to 
 60.35  benefit from further education.  Scholarships must be 
 60.36  for advanced or specialized education accredited degree programs 
 61.1   in accredited colleges or universities or for courses in 
 61.2   accredited or approved colleges or in business, technical, or 
 61.3   vocational schools.  Scholarships shall be used to defray the 
 61.4   total cost of education including tuition, incidental fees, 
 61.5   books, supplies, transportation, other related school costs and 
 61.6   the cost of board and room and shall be paid directly to the 
 61.7   college or school concerned.  The total cost of education 
 61.8   includes all tuition and fees for each student enrolling in a 
 61.9   public institution and the portion of tuition and fees for each 
 61.10  student enrolling in a private institution that does not exceed 
 61.11  the tuition and fees at a comparable public institution.  Each 
 61.12  student shall be awarded a scholarship based on the total cost 
 61.13  of the student's education and a standardized need analysis.  
 61.14  The amount and type of each scholarship shall be determined 
 61.15  through the advice and counsel of the Minnesota Indian 
 61.16  scholarship committee.  
 61.17     When an Indian student satisfactorily completes the work 
 61.18  required by a certain college or school in a school year the 
 61.19  student is eligible for additional scholarships, if additional 
 61.20  training is necessary to reach the student's educational and 
 61.21  vocational objective.  Scholarships may not be given to any 
 61.22  Indian student for more than five years of study without special 
 61.23  approval of the Minnesota Indian scholarship committee.  
 61.24     Sec. 5.  Minnesota Statutes 1999 Supplement, section 
 61.25  124D.88, subdivision 3, is amended to read: 
 61.26     Subd. 3.  [GRANT APPLICATION PROCESS.] (a) Any group of 
 61.27  school districts that meets the criteria required under 
 61.28  paragraph (b)(1) may apply for a magnet school grant in an 
 61.29  amount not to exceed $20,800,000 for the approved costs or 
 61.30  expansion of a magnet school facility. 
 61.31     (b)(1) Any group of districts that submits an application 
 61.32  for a grant shall submit a proposal to the commissioner for 
 61.33  review and comment under section 123B.71, and the commissioner 
 61.34  shall prepare a review and comment on the proposed magnet school 
 61.35  facility, regardless of the amount of the capital expenditure 
 61.36  required to design, acquire, construct, remodel, improve, 
 62.1   furnish, or equip the facility.  The commissioner must not 
 62.2   approve an application for a magnet school grant for any 
 62.3   facility unless the facility receives a favorable review and 
 62.4   comment under section 123B.71 and the participating districts: 
 62.5      (i) establish a joint powers board under section 471.59 to 
 62.6   represent all participating districts and govern the magnet 
 62.7   school facility; 
 62.8      (ii) design the planned magnet school facility to meet the 
 62.9   applicable requirements contained in Minnesota Rules, chapter 
 62.10  3535; 
 62.11     (iii) submit a statement of need, including reasons why the 
 62.12  magnet school will facilitate integration and improve learning; 
 62.13     (iv) prepare an educational plan that includes input from 
 62.14  both community and professional staff; and 
 62.15     (v) develop an education program that will improve learning 
 62.16  opportunities for students attending the magnet school. 
 62.17     (2) The districts may develop a plan that permits social 
 62.18  service, health, and other programs serving students and 
 62.19  community residents to be located within the magnet school 
 62.20  facility.  The commissioner shall consider this plan when 
 62.21  preparing a review and comment on the proposed facility.  
 62.22     (c) When two or more districts enter into an agreement 
 62.23  establishing a joint powers board to govern the magnet school 
 62.24  facility, all member districts shall have the same powers.  
 62.25     (d) A joint powers board of participating school districts 
 62.26  established under paragraphs (b) and (c) that intends to apply 
 62.27  for a grant must adopt a resolution stating the costs of the 
 62.28  proposed project, the purpose for which the debt is to be 
 62.29  incurred, and an estimate of the dates when the contracts for 
 62.30  the proposed project will be completed.  A copy of the 
 62.31  resolution must accompany any application for a state grant 
 62.32  under this section. 
 62.33     (e)(1) The commissioner shall examine and consider all 
 62.34  grant applications.  If the commissioner finds that any joint 
 62.35  powers district is not a qualified grant applicant, the 
 62.36  commissioner shall promptly notify that joint powers board.  The 
 63.1   commissioner shall make awards to no more than two qualified 
 63.2   applicants whose applications have been on file with the 
 63.3   commissioner more than 30 days.  
 63.4      (2) A grant award is subject to verification by the joint 
 63.5   powers board under paragraph (f).  A grant award must not be 
 63.6   made until the participating districts determine the site of the 
 63.7   magnet school facility.  If the total amount of the approved 
 63.8   applications exceeds the amount of grant funding that is or can 
 63.9   be made available, the commissioner shall allot the available 
 63.10  amount equally between the approved applicant districts.  The 
 63.11  commissioner shall promptly certify to each qualified joint 
 63.12  powers board the amount, if any, of the grant awarded to it. 
 63.13     (f) Each grant must be evidenced by a contract between the 
 63.14  joint powers board and the state acting through the 
 63.15  commissioner.  The contract obligates the state to pay to the 
 63.16  joint powers board an amount computed according to paragraph 
 63.17  (e)(2) and a schedule, and terms and conditions acceptable to 
 63.18  the commissioner of finance. 
 63.19     (g) Notwithstanding the provisions of section 123B.02, 
 63.20  subdivision 3, the joint powers and its individual members may 
 63.21  enter into long-term lease agreements as part of the magnet 
 63.22  school program.  
 63.23     <b>EFFECTIVE DATE:</b>  This section is effective the day 
 63.24  following final enactment. 
 63.25     Sec. 6.  Minnesota Statutes 1998, section 124D.88, is 
 63.26  amended by adding a subdivision to read: 
 63.27     Subd. 4.  [START-UP COSTS.] During the first two years of a 
 63.28  metropolitan magnet school's operation, the school is eligible 
 63.29  for aid to pay for start-up costs and additional operating 
 63.30  costs.  Start-up cost aid equals $500 times the magnet school's 
 63.31  pupil units served for that year. 
 63.32     Sec. 7.  Minnesota Statutes 1998, section 124D.892, 
 63.33  subdivision 3, is amended to read: 
 63.34     Subd. 3.  [ADVISORY BOARD.] The commissioner shall 
 63.35  establish an advisory board composed of: 
 63.36     (1) eight nine superintendents, each of whom eight shall be 
 64.1   selected by the superintendents of the school districts located 
 64.2   in whole or in part within each of the eight metropolitan 
 64.3   districts established under section 473.123, subdivision 3c, and 
 64.4   one superintendent of a district outside the seven-county 
 64.5   metropolitan area and is from a district that is considered 
 64.6   racially isolated or has a racially isolated school site 
 64.7   according to Minnesota Rules, part 3535.0110; and 
 64.8      (2) one person each selected by the Indian affairs council, 
 64.9   the council on Asian-Pacific Minnesotans, the council on Black 
 64.10  Minnesotans, and the council on affairs of Chicano/Latino 
 64.11  people; and 
 64.12     (3) the superintendent of independent school district No. 
 64.13  709, Duluth. 
 64.14     The advisory board shall advise the office on complying 
 64.15  with the requirements under subdivision 1.  The advisory board 
 64.16  may solicit comments from teachers, parents, students, and 
 64.17  interested community organizations and others. 
 64.18     Sec. 8.  Minnesota Statutes 1999 Supplement, section 
 64.19  125A.027, subdivision 3, is amended to read: 
 64.20     Subd. 3.  [IMPLEMENTATION TIMELINE.] By July 1, 2000, the 
 64.21  individual interagency intervention plan must be available and 
 64.22  by January 1, 2001, all governing boards of interagency early 
 64.23  intervention committees statewide must implement a coordinated 
 64.24  service system for children up to age five with disabilities 
 64.25  consistent with the requirements of this section and section 
 64.26  125A.023 and the evaluation results from the demonstration 
 64.27  projects under section 125A.023, subdivision 5.  Children with 
 64.28  disabilities up to the age of 21 shall be eligible for 
 64.29  coordinated services and their eligibility to receive such 
 64.30  services under this section shall be phased in over a four-year 
 64.31  period as follows: 
 64.32     (1) July 1, 2001, children up to age nine become eligible; 
 64.33     (2) July 1, 2002, children up to age 14 become eligible; 
 64.34  and 
 64.35     (3) July 1, 2003, children up to age 21 become eligible. 
 64.36     Sec. 9.  Minnesota Statutes 1999 Supplement, section 
 65.1   125A.15, is amended to read: 
 65.2      125A.15 [PLACEMENT IN ANOTHER DISTRICT; RESPONSIBILITY.] 
 65.3      The responsibility for special instruction and services for 
 65.4   a child with a disability temporarily placed in another district 
 65.5   for care and treatment shall be determined in the following 
 65.6   manner: 
 65.7      (a) The district of residence of a child shall be the 
 65.8   district in which the child's parent resides, if living, or the 
 65.9   child's guardian, or the district designated by the commissioner 
 65.10  if neither parent nor guardian is living within the state. 
 65.11     (b) When a child is temporarily placed for care and 
 65.12  treatment in a day program located in another district and the 
 65.13  child continues to live within the district of residence during 
 65.14  the care and treatment, the district of residence is responsible 
 65.15  for providing transportation to and from the care and treatment 
 65.16  facility and an appropriate educational program for the child.  
 65.17  Transportation shall only be provided by the district during 
 65.18  regular operating hours of the district.  The district may 
 65.19  provide the educational program at a school within the district 
 65.20  of residence, at the child's residence, or in the district in 
 65.21  which the day treatment center is located by paying tuition to 
 65.22  that district. 
 65.23     (c) When a child is temporarily placed in a residential 
 65.24  program for care and treatment, the nonresident district in 
 65.25  which the child is placed is responsible for providing an 
 65.26  appropriate educational program for the child and necessary 
 65.27  transportation while the child is attending the educational 
 65.28  program; and must bill the district of the child's residence for 
 65.29  the actual cost of providing the program, as outlined in section 
 65.30  125A.11, except as provided in paragraph (d).  However, the 
 65.31  board, lodging, and treatment costs incurred in behalf of a 
 65.32  child with a disability placed outside of the school district of 
 65.33  residence by the commissioner of human services or the 
 65.34  commissioner of corrections or their agents, for reasons other 
 65.35  than providing for the child's special educational needs must 
 65.36  not become the responsibility of either the district providing 
 66.1   the instruction or the district of the child's residence.  For 
 66.2   the purposes of this section, the state correctional facilities 
 66.3   operated on a fee-for-service basis are considered to be 
 66.4   residential programs for care and treatment. 
 66.5      (d) A privately owned and operated residential facility may 
 66.6   enter into a contract to obtain appropriate educational programs 
 66.7   for special education children and services with a joint powers 
 66.8   entity.  The entity with which the private facility contracts 
 66.9   for special education services shall be the district responsible 
 66.10  for providing students placed in that facility an appropriate 
 66.11  educational program in place of the district in which the 
 66.12  facility is located.  If a privately owned and operated 
 66.13  residential facility does not enter into a contract under this 
 66.14  paragraph, then paragraph (c) applies. 
 66.15     (e) The district of residence shall pay tuition and other 
 66.16  program costs, not including transportation costs, to the 
 66.17  district providing the instruction and services.  The district 
 66.18  of residence may claim general education aid for the child as 
 66.19  provided by law.  Transportation costs must be paid by the 
 66.20  district responsible for providing the transportation and the 
 66.21  state must pay transportation aid to that district. 
 66.22     Sec. 10.  Minnesota Statutes 1999 Supplement, section 
 66.23  125A.51, is amended to read: 
 66.24     125A.51 [PLACEMENT OF CHILDREN WITHOUT DISABILITIES; 
 66.25  EDUCATION AND TRANSPORTATION.] 
 66.26     The responsibility for providing instruction and 
 66.27  transportation for a pupil without a disability who has a 
 66.28  short-term or temporary physical or emotional illness or 
 66.29  disability, as determined by the standards of the commissioner, 
 66.30  and who is temporarily placed for care and treatment for that 
 66.31  illness or disability, must be determined as provided in this 
 66.32  section.  
 66.33     (a) The school district of residence of the pupil is the 
 66.34  district in which the pupil's parent or guardian resides. 
 66.35     (b) When parental rights have been terminated by court 
 66.36  order, the legal residence of a child placed in a residential or 
 67.1   foster facility for care and treatment is the district in which 
 67.2   the child resides when parental rights have been terminated. 
 67.3      (c) Before the placement of a pupil for care and treatment, 
 67.4   the district of residence must be notified and provided an 
 67.5   opportunity to participate in the placement decision.  When an 
 67.6   immediate emergency placement is necessary and time does not 
 67.7   permit resident district participation in the placement 
 67.8   decision, the district in which the pupil is temporarily placed, 
 67.9   if different from the district of residence, must notify the 
 67.10  district of residence of the emergency placement within 15 days 
 67.11  of the placement.  
 67.12     (d) When a pupil without a disability is temporarily placed 
 67.13  for care and treatment in a day program and the pupil continues 
 67.14  to live within the district of residence during the care and 
 67.15  treatment, the district of residence must provide instruction 
 67.16  and necessary transportation to and from the treatment facility 
 67.17  for the pupil.  Transportation shall only be provided by the 
 67.18  district during regular operating hours of the district.  The 
 67.19  district may provide the instruction at a school within the 
 67.20  district of residence, at the pupil's residence, or in the case 
 67.21  of a placement outside of the resident district, in the district 
 67.22  in which the day treatment program is located by paying tuition 
 67.23  to that district.  The district of placement may contract with a 
 67.24  facility to provide instruction by teachers licensed by the 
 67.25  state board of teaching.  
 67.26     (e) When a pupil without a disability is temporarily placed 
 67.27  in a residential program for care and treatment, the district in 
 67.28  which the pupil is placed must provide instruction for the pupil 
 67.29  and necessary transportation while the pupil is receiving 
 67.30  instruction, and in the case of a placement outside of the 
 67.31  district of residence, the nonresident district must bill the 
 67.32  district of residence for the actual cost of providing the 
 67.33  instruction for the regular school year and for summer school, 
 67.34  excluding transportation costs.  When a pupil without a 
 67.35  disability is temporarily placed in a residential program 
 67.36  outside the district of residence, the administrator of the 
 68.1   court placing the pupil must send timely written notice of the 
 68.2   placement to the district of residence.  The district of 
 68.3   placement may contract with a residential facility to provide 
 68.4   instruction by teachers licensed by the state board of teaching. 
 68.5   For purposes of this section, the state correctional facilities 
 68.6   operated on a fee-for-service basis are considered to be 
 68.7   residential programs for care and treatment. 
 68.8      (f) The district of residence must include the pupil in its 
 68.9   residence count of pupil units and pay tuition as provided in 
 68.10  section 123A.488 to the district providing the instruction.  
 68.11  Transportation costs must be paid by the district providing the 
 68.12  transportation and the state must pay transportation aid to that 
 68.13  district.  For purposes of computing state transportation aid, 
 68.14  pupils governed by this subdivision must be included in the 
 68.15  disabled transportation category.  
 68.16     Sec. 11.  Minnesota Statutes 1999 Supplement, section 
 68.17  125A.76, subdivision 1, is amended to read: 
 68.18     Subdivision 1.  [DEFINITIONS.] For the purposes of this 
 68.19  section, the definitions in this subdivision apply. 
 68.20     (a) "Base year" for fiscal year 1998 and later fiscal years 
 68.21  means the second fiscal year preceding the fiscal year for which 
 68.22  aid will be paid. 
 68.23     (b) "Basic revenue" has the meaning given it in section 
 68.24  126C.10, subdivision 2.  For the purposes of computing basic 
 68.25  revenue pursuant to this section, each child with a disability 
 68.26  shall be counted as prescribed in section 126C.05, subdivision 1.
 68.27     (c) "Essential personnel" means teachers, related services, 
 68.28  and support services staff providing direct services to students.
 68.29     (d) "Average daily membership" has the meaning given it in 
 68.30  section 126C.05. 
 68.31     (e) "Program growth factor" means 1.012 1.08 for fiscal 
 68.32  year 2002, and 1.047 for fiscal year 2003 and later. 
 68.33     Sec. 12.  Minnesota Statutes 1999 Supplement, section 
 68.34  125A.76, subdivision 2, is amended to read: 
 68.35     Subd. 2.  [SPECIAL EDUCATION BASE REVENUE.] (a) The special 
 68.36  education base revenue equals the sum of the following amounts 
 69.1   computed using base year data: 
 69.2      (1) 68 percent of the salary of each essential person 
 69.3   employed in the district's program for children with a 
 69.4   disability during the fiscal year, not including the share of 
 69.5   salaries for personnel providing health-related services counted 
 69.6   in clause (8), whether the person is employed by one or more 
 69.7   districts or a Minnesota correctional facility operating on a 
 69.8   fee-for-service basis; 
 69.9      (2) for the Minnesota state academy for the deaf or the 
 69.10  Minnesota state academy for the blind, 68 percent of the salary 
 69.11  of each instructional aide assigned to a child attending the 
 69.12  academy, if that aide is required by the child's individual 
 69.13  education plan; 
 69.14     (3) for special instruction and services provided to any 
 69.15  pupil by contracting with public, private, or voluntary agencies 
 69.16  other than school districts, in place of special instruction and 
 69.17  services provided by the district, 52 percent of the difference 
 69.18  between the amount of the contract and the basic revenue of the 
 69.19  district for that pupil for the fraction of the school day the 
 69.20  pupil receives services under the contract; 
 69.21     (4) for special instruction and services provided to any 
 69.22  pupil by contracting for services with public, private, or 
 69.23  voluntary agencies other than school districts, that are 
 69.24  supplementary to a full educational program provided by the 
 69.25  school district, 52 percent of the amount of the contract for 
 69.26  that pupil; 
 69.27     (5) for supplies and equipment purchased or rented for use 
 69.28  in the instruction of children with a disability, not including 
 69.29  the portion of the expenses for supplies and equipment used to 
 69.30  provide health-related services counted in clause (8), an amount 
 69.31  equal to 47 percent of the sum actually expended by the 
 69.32  district, or a Minnesota correctional facility operating on a 
 69.33  fee-for-service basis, but not to exceed an average of $47 in 
 69.34  any one school year for each child with a disability receiving 
 69.35  instruction; 
 69.36     (6) for fiscal years 1997 and later, special education base 
 70.1   revenue shall include amounts under clauses (1) to (5) for 
 70.2   special education summer programs provided during the base year 
 70.3   for that fiscal year; and 
 70.4      (7) for fiscal years 1999 and later, the cost of providing 
 70.5   transportation services for children with disabilities under 
 70.6   section 123B.92, subdivision 1, paragraph (b), clause (4); and 
 70.7      (8) for fiscal years 2001 and later, the cost of salaries, 
 70.8   supplies and equipment, and other related costs actually 
 70.9   expended by the district for the nonfederal share of medical 
 70.10  assistance services according to section 256B.0625, subdivision 
 70.11  26. 
 70.12     The department shall establish procedures through the 
 70.13  uniform financial accounting and reporting system to identify 
 70.14  and track all revenues generated from third-party billings as 
 70.15  special education revenue at the school district level; include 
 70.16  revenue generated from third-party billings as special education 
 70.17  revenue in the annual cross-subsidy report; and exclude 
 70.18  third-party revenue from calculation of excess cost aid to the 
 70.19  districts. 
 70.20     (b) If requested by a school district operating a special 
 70.21  education program during the base year for less than the full 
 70.22  fiscal year, or a school district in which is located a 
 70.23  Minnesota correctional facility operating on a fee-for-service 
 70.24  basis for less than the full fiscal year, the commissioner may 
 70.25  adjust the base revenue to reflect the expenditures that would 
 70.26  have occurred during the base year had the program been operated 
 70.27  for the full fiscal year. 
 70.28     (c) Notwithstanding paragraphs (a) and (b), the portion of 
 70.29  a school district's base revenue attributable to a Minnesota 
 70.30  correctional facility operating on a fee-for-service basis 
 70.31  during the facility's first year of operating on a 
 70.32  fee-for-service basis shall be computed using current year data. 
 70.33     Sec. 13.  Minnesota Statutes 1999 Supplement, section 
 70.34  125A.79, subdivision 2, is amended to read: 
 70.35     Subd. 2.  [EXCESS COST AID, FISCAL YEARS 2000 AND 2001.] 
 70.36  For fiscal years 2000 and 2001, a district's special education 
 71.1   excess cost aid equals the greatest of: 
 71.2      (a) 75 percent of the difference between (1) the district's 
 71.3   unreimbursed special education cost and (2) 4.4 4.36 percent of 
 71.4   the district's general revenue; 
 71.5      (b) 70 percent of the difference between (1) the increase 
 71.6   in the district's unreimbursed special education cost between 
 71.7   the base year as defined in section 125A.76, subdivision 1, and 
 71.8   the current year and (2) 1.6 percent of the district's general 
 71.9   revenue; or 
 71.10     (c) zero. 
 71.11     Sec. 14.  Minnesota Statutes 1999 Supplement, section 
 71.12  125A.79, subdivision 5, is amended to read: 
 71.13     Subd. 5.  [INITIAL EXCESS COST AID.] For fiscal years 2002 
 71.14  and later, a district's initial excess cost aid equals the 
 71.15  greatest of: 
 71.16     (1) 75 percent of the difference between (i) the district's 
 71.17  unreimbursed special education cost and (ii) 4.4 4.36 percent of 
 71.18  the district's general revenue; 
 71.19     (2) 70 percent of the difference between (i) the increase 
 71.20  in the district's unreimbursed special education cost between 
 71.21  the base year as defined in section 125A.76, subdivision 1, and 
 71.22  the current year and (ii) 1.6 percent of the district's general 
 71.23  revenue; or 
 71.24     (3) zero. 
 71.25     Sec. 15.  Minnesota Statutes 1999 Supplement, section 
 71.26  127A.42, subdivision 3, is amended to read: 
 71.27     Subd. 3.  [ASSURANCE OF COMPLIANCE.] (a) After consultation 
 71.28  with the commissioner of human rights, the commissioner of 
 71.29  children, families, and learning shall adopt rules in 
 71.30  conformance with chapter 14.  The rules must direct districts to 
 71.31  file with the commissioner of children, families, and learning 
 71.32  assurances of compliance with state and federal laws prohibiting 
 71.33  discrimination and specify the information required to be 
 71.34  submitted in support of the assurances.  The commissioner shall 
 71.35  provide copies of the assurances and the supportive information 
 71.36  to the commissioner of human rights The assurances must be 
 72.1   provided in a form and manner prescribed by the commissioner.  
 72.2      (b) If, after reviewing the assurances and the supportive 
 72.3   information it appears that one or more violations of the 
 72.4   Minnesota Human Rights Act are occurring in the a district, the 
 72.5   commissioner of human rights shall notify the commissioner of 
 72.6   the violations, and the commissioner of children, families, and 
 72.7   learning may then proceed pursuant to subdivision 4. 
 72.8      Sec. 16.  Laws 1999, chapter 216, article 4, section 12, is 
 72.9   amended to read: 
 72.10     Sec. 12.  [SELECTION OF VENDOR TO OPERATE EDUCATIONAL 
 72.11  PROGRAM AT MCF-RED WING.] 
 72.12     The assessment for excellence task force, appointed by the 
 72.13  commissioner of corrections, shall assist the commissioner of 
 72.14  administration in developing a request for proposals from 
 72.15  vendors to operate the educational program at the Minnesota 
 72.16  correctional facility - Red Wing.  The commissioner of 
 72.17  administration shall issue the request for proposals by November 
 72.18  1, 1999, and shall select a vendor who shall begin operating the 
 72.19  program by January 1, 2000.  The commissioner shall issue a new 
 72.20  request for proposals by November 1, 2005, and shall issue a new 
 72.21  request for proposals every other year thereafter.  The 
 72.22  department of corrections may respond to the request for 
 72.23  proposals. 
 72.24     Sec. 17.  Laws 1999, chapter 241, article 2, section 60, 
 72.25  subdivision 7, is amended to read: 
 72.26     Subd. 7.  [TRIBAL CONTRACT SCHOOLS.] For tribal contract 
 72.27  school aid according to Minnesota Statutes, section 124D.83: 
 72.28       $2,706,000 $1,671,000  .....     2000
 72.29       $2,790,000 $1,882,000  .....     2001
 72.30     The 2000 appropriation includes $283,000 for 1999 and 
 72.31  $2,423,000 $1,388,000 for 2000. 
 72.32     The 2001 appropriation includes $269,000 $154,000 for 2000 
 72.33  and $2,521,000 $1,728,000 for 2001. 
 72.34     Sec. 18.  Laws 1999, chapter 241, article 2, section 60, 
 72.35  subdivision 9, is amended to read: 
 72.36     Subd. 9.  [MAGNET SCHOOL GRANTS.] For magnet school and 
 73.1   program grants under Laws 1994, chapter 647, article 8, section 
 73.2   38: 
 73.3        $1,750,000     .....     2000 
 73.4        $1,750,000     .....     2001 
 73.5      These amounts may be used for magnet school programs 
 73.6   according to Minnesota Statutes, section 124D.88.  The budget 
 73.7   base for this program for fiscal year 2003 and each year 
 73.8   thereafter is $1,050,000. 
 73.9      Sec. 19.  Laws 1999, chapter 241, article 2, section 60, 
 73.10  subdivision 12, is amended to read: 
 73.11     Subd. 12.  [AID FOR CHILDREN WITH A DISABILITY.] For aid 
 73.12  according to Minnesota Statutes, section 125A.75, subdivision 3, 
 73.13  for children with a disability placed in residential facilities 
 73.14  within the district boundaries for whom no district of residence 
 73.15  can be determined: 
 73.16       $  443,000 $  433,000  .....     2000 
 73.17       $1,064,000 $4,263,000  .....     2001 
 73.18     If the appropriation for either year is insufficient, the 
 73.19  appropriation for the other year is available.  Any balance in 
 73.20  the first year does not cancel but is available in the second 
 73.21  year. 
 73.22     Sec. 20.  Laws 1999, chapter 241, article 2, section 60, 
 73.23  subdivision 13, is amended to read: 
 73.24     Subd. 13.  [TRAVEL FOR HOME-BASED SERVICES.] For aid for 
 73.25  teacher travel for home-based services according to Minnesota 
 73.26  Statutes, section 125A.75, subdivision 1: 
 73.27       $133,000 $125,000    .....     2000 
 73.28       $139,000 $130,000    .....     2001 
 73.29     The 2000 appropriation includes $11,000 for 1999 and 
 73.30  $122,000 $114,000 for 2000.  
 73.31     The 2001 appropriation includes $13,000 for 2000 and 
 73.32  $126,000 $117,000 for 2001.  
 73.33     Sec. 21.  Laws 1999, chapter 241, article 2, section 60, 
 73.34  subdivision 14, is amended to read: 
 73.35     Subd. 14.  [SPECIAL EDUCATION EXCESS COST AID.] For excess 
 73.36  cost aid: 
 74.1        $60,498,000 $66,032,000   .....     2000 
 74.2        $79,405,000 $89,072,000   .....     2001 
 74.3      The 2000 appropriation includes $4,693,000 for 1999 and 
 74.4   $55,805,000 $61,339,000 for 2000.  
 74.5      The 2001 appropriation includes $6,200,000 $6,815,000 for 
 74.6   2000 and $73,205,000 $82,257,000 for 2001. 
 74.7      Sec. 22.  Laws 1999, chapter 241, article 2, section 60, 
 74.8   subdivision 17, is amended to read: 
 74.9      Subd. 17.  [INTEGRATION AID.] For integration aid: 
 74.10       $37,182,000 $37,610,000  .....     2000 
 74.11       $43,787,000 $55,828,000  .....     2001 
 74.12     The 2000 appropriation includes $2,902,000 for 1999 and 
 74.13  $34,280,000 $34,708,000 for 2000. 
 74.14     The 2001 appropriation includes $3,809,000 $3,856,000 for 
 74.15  2000 and $39,978,000 $51,972,000 for 2001.  
 74.16     Sec. 23.  Laws 1999, chapter 241, article 2, section 60, 
 74.17  subdivision 19, is amended to read: 
 74.18     Subd. 19.  [INTERDISTRICT DESEGREGATION OR INTEGRATION 
 74.19  TRANSPORTATION AID.] (a) For interdistrict desegregation or 
 74.20  integration transportation aid under Minnesota Statutes, section 
 74.21  124D.87: 
 74.22       $970,000       .....     2000
 74.23       $970,000       .....     2001
 74.24     Any balance in the first year does not cancel but is 
 74.25  available in the second year.  
 74.26     (b) For fiscal year 2003 and later, the budget base for 
 74.27  this program is the forecasted cost of fully reimbursing 
 74.28  districts according to Minnesota Statutes, section 124D.87. 
 74.29     Sec. 24.  [SPECIAL EDUCATION CROSS-SUBSIDY REVENUE.] 
 74.30     For fiscal year 2000, a school district shall receive an 
 74.31  amount of revenue equal to $8.15 times the district's adjusted 
 74.32  marginal cost pupil units.  For fiscal year 2001, a school 
 74.33  district shall receive an amount of revenue equal to $19 times 
 74.34  the district's adjusted marginal cost pupil units.  Special 
 74.35  education cross-subsidy revenue must be used to pay for a 
 74.36  district's unfunded special education costs that are currently 
 75.1   cross-subsidized by a district's general education revenue. 
 75.2      Sec. 25.  [APPROPRIATIONS.] 
 75.3      Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
 75.4   LEARNING.] The sums indicated in this section are appropriated 
 75.5   from the general fund to the department of children, families, 
 75.6   and learning for the fiscal years designated. 
 75.7      Subd. 2.  [LITTLE FALLS; REVENUE REIMBURSEMENT.] For 
 75.8   independent school district No. 482, Little Falls, for partial 
 75.9   reimbursement of revenue returned to the state as a result of a 
 75.10  finding that the district had over-counted kindergarten pupils 
 75.11  in earlier years: 
 75.12       $300,000     .....     2000 
 75.13     Revenue appropriated to the district under this subdivision 
 75.14  must be used for all-day kindergarten services.  This is a 
 75.15  one-time appropriation. 
 75.16     Subd. 3.  [NORTHLAND LEARNING CENTER.] For a grant to the 
 75.17  Northland joint powers board for start-up costs associated with 
 75.18  the delay of special education funding for the Northland 
 75.19  learning center: 
 75.20       $200,000     .....     2001 
 75.21     This is a one-time appropriation. 
 75.22     Subd. 4.  [MAGNET SCHOOL START-UP AID.] For magnet school 
 75.23  start-up aid under Minnesota Statutes, section 124D.88: 
 75.24       $225,000     .....     2001 
 75.25     Subd. 5.  [SPECIAL EDUCATION CROSS-SUBSIDY REVENUE.] For 
 75.26  special education cross-subsidy revenue: 
 75.27       $ 7,898,000     .....     2000 
 75.28       $18,396,000     .....     2001 
 75.29     Subd. 6.  [GRANT TO INDEPENDENT SCHOOL DISTRICT NO. 707, 
 75.30  NETT LAKE.] (a) For a grant to independent school district No. 
 75.31  707, Nett Lake, to pay obligations of the school district for 
 75.32  unemployment compensation: 
 75.33       $ 30,000     .....     2001
 75.34     (b) This appropriation must be paid to the appropriate 
 75.35  state agency for the purposes of paragraph (a) in the name of 
 75.36  the school district.  This is a one-time appropriation. 
 76.1      <b>EFFECTIVE DATE:</b>  This section is effective the day 
 76.2   following final enactment. 
 76.3      Sec. 26.  [REPEALER.] 
 76.4      Minnesota Rules, part 3535.9920, is repealed. 
 76.5      <b>EFFECTIVE DATE:</b>  This section is effective the day 
 76.6   following final enactment. 
 76.7                              ARTICLE 4 
 76.8               KINDERGARTEN THROUGH GRADE 12 EDUCATION 
 76.9                      EMPLOYMENT AND TRANSITIONS 
 76.10     Section 1.  Minnesota Statutes 1998, section 124D.44, is 
 76.11  amended to read: 
 76.12     124D.44 [MATCH REQUIREMENTS.] 
 76.13     Youth works grant funds must be used for the living 
 76.14  allowance, cost of employer taxes under sections 3111 and 3301 
 76.15  of the Internal Revenue Code of 1986, workers' compensation 
 76.16  coverage, and health benefits for each program participant, and 
 76.17  administrative expenses, which must not exceed five percent of 
 76.18  total program costs.  Youthworks grant funds may also be used to 
 76.19  supplement applicant resources to fund postservice benefits for 
 76.20  program participants.  Applicant resources, from sources and in 
 76.21  a form determined by the commission and, beginning January 1, 
 76.22  1997, the council, must be used to provide for all other program 
 76.23  costs, including the portion of the applicant's obligation for 
 76.24  postservice benefits that is not covered by state or federal 
 76.25  grant funds and such costs as supplies, materials, 
 76.26  transportation, and salaries and benefits of those staff 
 76.27  directly involved in the operation, internal monitoring, and 
 76.28  evaluation of the program.  Administrative expenses must not 
 76.29  exceed five percent of total program costs.  
 76.30     <b>EFFECTIVE DATE:</b>  This section is effective the day 
 76.31  following final enactment. 
 76.32     Sec. 2.  Minnesota Statutes 1999 Supplement, section 
 76.33  124D.453, subdivision 3, is amended to read: 
 76.34     Subd. 3.  [CAREER AND TECHNICAL AID.] A district's career 
 76.35  and technical education aid for fiscal year years 2000 and 2001 
 76.36  equals the lesser of: 
 77.1      (a) $73 times the district's average daily membership in 
 77.2   grades 10 to 12; or 
 77.3      (b) 25 percent of approved expenditures for the following: 
 77.4      (1) salaries paid to essential, licensed personnel 
 77.5   providing direct instructional services to students in that 
 77.6   fiscal year for services rendered in the district's approved 
 77.7   career and technical education programs; 
 77.8      (2) contracted services provided by a public or private 
 77.9   agency other than a Minnesota school district or cooperative 
 77.10  center under subdivision 7; 
 77.11     (3) necessary travel between instructional sites by 
 77.12  licensed career and technical education personnel; 
 77.13     (4) necessary travel by licensed career and technical 
 77.14  education personnel for vocational student organization 
 77.15  activities held within the state for instructional purposes; 
 77.16     (5) curriculum development activities that are part of a 
 77.17  five-year plan for improvement based on program assessment; 
 77.18     (6) necessary travel by licensed career and technical 
 77.19  education personnel for noncollegiate credit bearing 
 77.20  professional development; and 
 77.21     (7) specialized vocational instructional supplies. 
 77.22     (c) Up to ten percent of a district's career and technical 
 77.23  aid may be spent on equipment purchases.  Districts using career 
 77.24  and technical aid for equipment purchases must report to the 
 77.25  department on the improved learning opportunities for students 
 77.26  that result from the investment in equipment.  
 77.27     Sec. 3.  Minnesota Statutes 1998, section 124D.454, 
 77.28  subdivision 4, is amended to read: 
 77.29     Subd. 4.  [ADJUSTED SECONDARY 
 77.30  VOCATIONAL-DISABLED TRANSITION-DISABLED BASE REVENUE.] For 
 77.31  fiscal year 1996 and later, a district's adjusted secondary 
 77.32  vocational-disabled transition-disabled base revenue equals the 
 77.33  district's secondary vocational-disabled transition-disabled 
 77.34  base revenue times the ratio of the district's average daily 
 77.35  membership for the current school year to the district's average 
 77.36  daily membership for the base year. 
 78.1      Sec. 4.  Minnesota Statutes 1998, section 124D.454, 
 78.2   subdivision 6, is amended to read: 
 78.3      Subd. 6.  [SCHOOL DISTRICT SECONDARY 
 78.4   VOCATIONAL-DISABLED TRANSITION-DISABLED REVENUE.] (a) A school 
 78.5   district's secondary vocational-disabled transition-disabled 
 78.6   revenue for fiscal year 1996 and later equals the state 
 78.7   total secondary vocational-disabled transition-disabled revenue, 
 78.8   minus the amount determined under paragraph (b), times the ratio 
 78.9   of the district's adjusted secondary 
 78.10  vocational-disabled transition-disabled base revenue to the 
 78.11  state total adjusted secondary 
 78.12  vocational-disabled transition-disabled base revenue. 
 78.13     (b) Notwithstanding paragraph (a), if the secondary 
 78.14  vocational-disabled transition-disabled base revenue for a 
 78.15  district equals zero and no district residents were enrolled 
 78.16  in secondary vocational-disabled transition-disabled programs 
 78.17  during the base year, the secondary 
 78.18  vocational-disabled transition-disabled revenue equals the 
 78.19  amount computed according to subdivision 3 using current year 
 78.20  data. 
 78.21     Sec. 5.  Minnesota Statutes 1998, section 124D.454, 
 78.22  subdivision 7, is amended to read: 
 78.23     Subd. 7.  [SCHOOL DISTRICT SECONDARY 
 78.24  VOCATIONAL-DISABLED TRANSITION-DISABLED AID.] A school 
 78.25  district's secondary vocational-disabled transition-disabled aid 
 78.26  for fiscal year 1996 and later equals the district's secondary 
 78.27  vocational-disabled transition-disabled revenue times the aid 
 78.28  percentage factor for that year. 
 78.29     Sec. 6.  Laws 1997, chapter 157, section 71, as amended by 
 78.30  Laws 1998, chapter 398, article 3, section 11, is amended to 
 78.31  read: 
 78.32     Sec. 71.  [SCHOOL BANK PILOT PROJECT BANKS.] 
 78.33     (a) A school bank sponsored by independent school district 
 78.34  No. 31, Bemidji, independent school district No. 316, 
 78.35  Greenway-Coleraine, independent school district No. 2170, 
 78.36  Staples-Motley, or by independent school district No. 508, St. 
 79.1   Peter, that meets all requirements of paragraph (b) is not 
 79.2   subject to Minnesota Statutes, section 47.03, subdivision 1, or 
 79.3   to any other statute or rule that regulates banks, other 
 79.4   financial institutions, or currency exchanges. 
 79.5      (b) To qualify under paragraph (a), the school bank must: 
 79.6      (1) be operated as part of a high school educational 
 79.7   program and under guidelines adopted by the school board; 
 79.8      (2) be advised on a regular basis by one or more 
 79.9   state-chartered state chartered or federally-chartered federally 
 79.10  chartered financial institutions, but not owned or operated by 
 79.11  any financial institution; 
 79.12     (3) be located on school premises and have as customers 
 79.13  only students enrolled in, or employees of, the school in which 
 79.14  it is located; and 
 79.15     (4) have a written commitment from the school board, 
 79.16  guaranteeing reimbursement of any depositor's funds lost due to 
 79.17  insolvency of the school bank. 
 79.18     (c) Funds of a school bank that meets the requirements of 
 79.19  this section are not school district or other public funds for 
 79.20  purposes of any state law governing the use or investment of 
 79.21  school district or other public funds. 
 79.22     (d) The school district shall annually file with the 
 79.23  commissioner of commerce a report, prepared by the students and 
 79.24  teachers involved, summarizing the operation of the school bank. 
 79.25     (e) This section expires June 30, 2000.  The commissioner 
 79.26  of commerce shall, no later than December 15, 1999, provide a 
 79.27  written report to the legislature regarding this pilot project 
 79.28  and any recommended legislation regarding school banks. 
 79.29     <b>EFFECTIVE DATE:</b>  This section is effective the day 
 79.30  following final enactment. 
 79.31     Sec. 7.  Laws 1999, chapter 241, article 3, section 3, 
 79.32  subdivision 2, is amended to read: 
 79.33     Subd. 2.  [SECONDARY VOCATIONAL EDUCATION AID.] For 
 79.34  secondary vocational education aid according to Minnesota 
 79.35  Statutes, section 124D.453: 
 79.36       $11,335,000 $12,413,000    .....     2000 
 80.1        $1,130,000  $12,417,000    .....     2001 
 80.2      The 2000 appropriation includes $1,159,000 for 1999 and 
 80.3   $10,176,000 $11,254,000 for 2000.  The 2001 appropriation 
 80.4   includes $1,130,000 $1,250,000 for 2000 and $11,167,000 for 2001.
 80.5      Any balance in the first year does not cancel but is 
 80.6   available in the second year. 
 80.7      Sec. 8.  Laws 1999, chapter 241, article 3, section 3, 
 80.8   subdivision 4, is amended to read: 
 80.9      Subd. 4.  [EDUCATION AND EMPLOYMENT TRANSITIONS PROGRAM 
 80.10  GRANTS.] For education and employment transitions programming 
 80.11  under Minnesota Statutes, section 124D.46: 
 80.12       $3,225,000     .....     2000 
 80.13       $3,225,000 $2,225,000     .....     2001
 80.14     $200,000 each year is for the development and 
 80.15  implementation of the ISEEK Internet-based education and 
 80.16  employment information system. 
 80.17     $1,000,000 each in fiscal year 2000 is for an employer 
 80.18  rebate program for qualifying employers who offer youth 
 80.19  internships to educators. 
 80.20     $500,000 each year is for youth entrepreneurship grants.  
 80.21     $750,000 each year is for youth apprenticeship grants. 
 80.22     $300,000 each year is for grants to programs in cities of 
 80.23  the first class to expand the number of at-risk students 
 80.24  participating in school-to-work projects. 
 80.25     $350,000 each year is for agricultural school-to-work 
 80.26  grants. 
 80.27     $125,000 each year is to conduct a high school follow-up 
 80.28  survey to include first, third, and sixth year graduates of 
 80.29  Minnesota schools. 
 80.30     Any balance in the first year does not cancel but is 
 80.31  available in the second year. 
 80.32     Sec. 9.  Laws 1999, chapter 241, article 3, section 5, is 
 80.33  amended to read: 
 80.34     Sec. 5.  [REPEALER.] 
 80.35     Minnesota Statutes 1998, section 124D.453, is repealed 
 80.36  effective for revenue for fiscal year 2001 2002. 
 81.1      <b>EFFECTIVE DATE:</b>  This section is effective the day 
 81.2   following final enactment. 
 81.3                              ARTICLE 5 
 81.4               KINDERGARTEN THROUGH GRADE 12 EDUCATION 
 81.5                      FACILITIES AND TECHNOLOGY 
 81.6      Section 1.  Minnesota Statutes 1998, section 123A.485, 
 81.7   subdivision 4, is amended to read: 
 81.8      Subd. 4.  [NEW DISTRICTS.] If a district consolidates with 
 81.9   another district that has received aid under section 123A.39, 
 81.10  subdivision 3, or 123A.485 for a combination or consolidation 
 81.11  taking effect within six years of the effective date of the new 
 81.12  consolidation, only the pupil units in the district or districts 
 81.13  not previously reorganized must be counted for aid purposes 
 81.14  under subdivision 2.  If two or more districts consolidate and 
 81.15  all districts received aid under subdivision 2 for a 
 81.16  consolidation taking effect within six years of the effective 
 81.17  date of the new consolidation, only one quarter of the pupil 
 81.18  units in the newly created district must be used to determine 
 81.19  aid under subdivision 2. 
 81.20     Sec. 2.  Minnesota Statutes 1998, section 123B.51, 
 81.21  subdivision 6, is amended to read: 
 81.22     Subd. 6.  [PROCEEDS OF SALE OR EXCHANGE.] (a) Proceeds of 
 81.23  the sale or exchange of school buildings or real property of the 
 81.24  district must be used as provided in this subdivision. 
 81.25     (b) In districts with outstanding bonds, the proceeds of 
 81.26  the sale or exchange shall first be deposited in the debt 
 81.27  retirement fund of the district in an amount sufficient to meet 
 81.28  when due that percentage of the principal and interest payments 
 81.29  for outstanding bonds which is ascribable to the payment of 
 81.30  expenses necessary and incidental to the construction or 
 81.31  purchase of the particular building or property which is sold.  
 81.32     (c) After satisfying the requirements of paragraph (b), a 
 81.33  district with outstanding bonds may deposit proceeds of the sale 
 81.34  or exchange in its capital expenditure fund general fund 
 81.35  reserved for operating capital account if the amount deposited 
 81.36  is used for the following:  
 82.1      (1) for expenditures for the cleanup of polychlorinated 
 82.2   biphenyls, if the method for cleanup is approved by the 
 82.3   department; 
 82.4      (2) for capital expenditures for the betterment, as defined 
 82.5   in section 475.51, subdivision 8, of district-owned school 
 82.6   buildings; or 
 82.7      (3) to replace the building or property sold.  
 82.8      (d) In a district with outstanding bonds, the amount of the 
 82.9   proceeds of the sale or exchange remaining after the application 
 82.10  of paragraphs (b) and (c), which is sufficient to meet when due 
 82.11  that percentage of the principal and interest payments for the 
 82.12  district's outstanding bonds which is not governed by paragraph 
 82.13  (b), shall be deposited in the debt retirement fund.  
 82.14     (e) Any proceeds of the sale or exchange remaining in 
 82.15  districts with outstanding bonds after the application of 
 82.16  paragraphs (b), (c), and (d), and all proceeds of the sale or 
 82.17  exchange in districts without outstanding bonds shall be 
 82.18  deposited in the capital expenditure general fund reserved for 
 82.19  operating capital account of the district. 
 82.20     (f) Notwithstanding paragraphs (c) and (d), a district with 
 82.21  outstanding bonds may deposit in its capital expenditure general 
 82.22  fund reserved for operating capital account and use for any 
 82.23  lawful operating capital expenditure without the reduction of 
 82.24  any levy limitation the same percentage of the proceeds of the 
 82.25  sale or exchange of a building or property as the percentage of 
 82.26  the initial cost of purchasing or constructing the building or 
 82.27  property which was paid using revenue from the capital 
 82.28  expenditure general fund reserved for operating capital account. 
 82.29     Sec. 3.  Minnesota Statutes 1998, section 123B.52, is 
 82.30  amended by adding a subdivision to read: 
 82.31     Subd. 6.  [DISPOSING OF SURPLUS SCHOOL COMPUTERS.] 
 82.32  Notwithstanding section 471.345, governing school district 
 82.33  contracts made upon sealed bid or otherwise complying with the 
 82.34  requirements for competitive bidding, other provisions of this 
 82.35  section governing school district contracts, or other law to the 
 82.36  contrary, a school district under this subdivision may dispose 
 83.1   of a surplus school computer and related equipment if the 
 83.2   district disposes of the surplus property by conveying the 
 83.3   property and title to: 
 83.4      (1) another school district; 
 83.5      (2) the state department of corrections; 
 83.6      (3) the board of trustees of the Minnesota state colleges 
 83.7   and universities; or 
 83.8      (4) the family of a student residing in the district whose 
 83.9   total family income meets the federal definition of poverty. 
 83.10     <b>EFFECTIVE DATE:</b>  This section is effective the day 
 83.11  following final enactment. 
 83.12     Sec. 4.  Minnesota Statutes 1999 Supplement, section 
 83.13  123B.54, is amended to read: 
 83.14     123B.54 [DEBT SERVICE APPROPRIATION.] 
 83.15     (a) $33,165,000 $33,141,000 in fiscal year 2000, 
 83.16  $32,057,000 $29,400,000 in fiscal year 2001, and 
 83.17  $31,280,000 $26,934,000 in fiscal year 2002, and $25,540,000 in 
 83.18  fiscal year 2003 and each year thereafter is appropriated from 
 83.19  the general fund to the commissioner of children, families, and 
 83.20  learning for payment of debt service equalization aid under 
 83.21  section 123B.53.  The 2002 appropriation includes $3,201,000 for 
 83.22  2001 and $29,079,000 for 2002. 
 83.23     (b) The appropriations in paragraph (a) must be reduced by 
 83.24  the amount of any money specifically appropriated for the same 
 83.25  purpose in any year from any state fund. 
 83.26     Sec. 5.  Minnesota Statutes 1998, section 123B.57, 
 83.27  subdivision 1, is amended to read: 
 83.28     Subdivision 1.  [HEALTH AND SAFETY PROGRAM.] To receive 
 83.29  health and safety revenue for any fiscal year a district must 
 83.30  submit to the commissioner an application for aid and levy by 
 83.31  the date determined by the commissioner.  The application may be 
 83.32  for hazardous substance removal, fire and life safety code 
 83.33  repairs, labor and industry regulated facility and equipment 
 83.34  violations, and health, safety, and environmental management, 
 83.35  including indoor air quality management.  The application must 
 83.36  include a health and safety program adopted by the school 
 84.1   district board.  The program must include the estimated cost, 
 84.2   per building, of the program by fiscal year.  Upon approval 
 84.3   through the adoption of a resolution by each of an intermediate 
 84.4   district's member school district boards and the approval of the 
 84.5   department of children, families, and learning, a school 
 84.6   district may include its proportionate share of the costs of 
 84.7   health and safety projects for an intermediate district in its 
 84.8   application. 
 84.9      <b>EFFECTIVE DATE:</b>  This section is effective for revenue for 
 84.10  fiscal year 2002 and thereafter.  
 84.11     Sec. 6.  Minnesota Statutes 1998, section 123B.71, 
 84.12  subdivision 10, is amended to read: 
 84.13     Subd. 10.  [INDOOR AIR QUALITY.] A school board seeking a 
 84.14  review and comment under this section must submit information 
 84.15  demonstrating to the commissioner's satisfaction that: 
 84.16     (1) indoor air quality issues have been considered; and 
 84.17     (2) the architects and engineers designing the facility 
 84.18  will have professional liability insurance.  
 84.19     Plans submitted under subdivisions 3 and 4 for projects to 
 84.20  be placed in service after July 1, 2002, must demonstrate that: 
 84.21     (a) the facility's heating, ventilation, and air 
 84.22  conditioning systems meet or exceed the standards established by 
 84.23  code; and 
 84.24     (b) the facility's design will provide the ability for 
 84.25  monitoring of outdoor airflow and total airflow of ventilation 
 84.26  systems in new school facilities. 
 84.27     Sec. 7.  Minnesota Statutes 1998, section 123B.72, 
 84.28  subdivision 3, is amended to read: 
 84.29     Subd. 3.  [CERTIFICATION.] Prior to occupying or 
 84.30  reoccupying a school facility affected by this section, a school 
 84.31  board or its designee shall submit a document prepared by a 
 84.32  system inspector to the building official or to the 
 84.33  commissioner, verifying that the facility's heating, 
 84.34  ventilation, and air conditioning system has been installed and 
 84.35  operates according to design specifications and code, according 
 84.36  to section 123B.71, subdivision 10, clause (3).  A systems 
 85.1   inspector shall also verify that the facility's design will 
 85.2   provide the ability for monitoring of outdoor airflow and total 
 85.3   airflow of ventilation systems in new school facilities and that 
 85.4   any heating, ventilation, or air conditioning system that is 
 85.5   installed or modified for a project subject to this section must 
 85.6   provide a filtration system with a current ASHRAE standard. 
 85.7      <b>EFFECTIVE DATE:</b>  This section is effective on July 1, 2002. 
 85.8      Sec. 8.  [125B.25] [TELECOMMUNICATIONS ACCESS REVENUE.] 
 85.9      Subdivision 1.  [COSTS TO BE SUBMITTED.] A district shall 
 85.10  submit its outstanding ongoing or recurring telecommunications 
 85.11  access costs associated with data lines and video links to the 
 85.12  department of children, families, and learning.  Costs of 
 85.13  telecommunications hardware or equipment must not be included in 
 85.14  the costs submitted by districts to the department.  A district 
 85.15  may include installation charges associated with new lines or 
 85.16  upgraded lines, but may not include costs of hardware or 
 85.17  equipment. 
 85.18     Subd. 2.  [GUARANTEED MINIMUM ACCESS.] (a) The ongoing or 
 85.19  recurring telecommunications access costs submitted to the 
 85.20  department by each district under this section are limited to 
 85.21  the operation costs equal to the greater of: 
 85.22     (1) one data line or video link that relies on a transport 
 85.23  medium that operates at a minimum speed of 1.544 megabytes per 
 85.24  second for each elementary school, middle school, or high school 
 85.25  under section 120A.05, subdivisions 9, 11, and 13; or 
 85.26     (2) one data line or video link that relies on a transport 
 85.27  medium that operates at a minimum speed of 1.544 megabytes per 
 85.28  second for each district. 
 85.29     (b) A district may include costs associated with 
 85.30  cooperative arrangements with other post-secondary institutions, 
 85.31  school districts, and community and regional libraries in its 
 85.32  geographic region.  A district may continue to purchase its 
 85.33  ongoing or recurring telecommunications access services through 
 85.34  existing contracts. 
 85.35     Subd. 3.  [E-RATES.] To be eligible for revenue under this 
 85.36  section, a district is required to file an e-rate application 
 86.1   either separately or through their telecommunications grant 
 86.2   cluster.  Discounts received on telecommunications expenditures 
 86.3   shall be used to offset the amount submitted to the department 
 86.4   for per pupil revenue under this section. 
 86.5      Subd. 4.  [CALCULATION OF COSTS.] By December 15 of each 
 86.6   year, the commissioner shall calculate the ongoing or recurring 
 86.7   telecommunications access cost per adjusted marginal cost pupil 
 86.8   unit submitted by each school district under subdivisions 1 and 
 86.9   2 for the year in which the data is submitted minus the reserved 
 86.10  revenue under section 126C.10, subdivision 13, paragraph (d).  
 86.11  Districts shall submit their anticipated ongoing or recurring 
 86.12  telecommunications access costs, adjusted for any e-rate revenue 
 86.13  received to the department based on contracts entered into by 
 86.14  the district for that school year.  Districts shall also submit 
 86.15  their actual telecommunications access costs by August 15 of 
 86.16  each year and adjusted for any e-rate revenue received to the 
 86.17  department as prescribed by the commissioner. 
 86.18     Subd. 5.  [DISTRICT REVENUE.] A district shall receive an 
 86.19  amount equal to the amount as calculated by the commissioner 
 86.20  under subdivision 4, times the adjusted marginal cost pupil 
 86.21  units for that year, times 65 percent. 
 86.22     Subd. 6.  [REVENUE FOR CHARTER SCHOOLS.] (a) Each charter 
 86.23  school shall receive revenue equal to the greater of: 
 86.24     (1) the per marginal cost pupil unit amount for the 
 86.25  district in which the charter school is located as determined by 
 86.26  the commissioner according to subdivision 4; or 
 86.27     (2) $5; 
 86.28  times the adjusted marginal cost pupil units for that year, 
 86.29  times 65 percent. 
 86.30     (b) A charter school's revenue under this subdivision must 
 86.31  be used to pay for ongoing or recurring telecommunication access 
 86.32  costs, including access to data lines, video lines, or Internet 
 86.33  access. 
 86.34     Subd. 7.  [TELECOMMUNICATION ACCESS SERVICES FOR NONPUBLIC 
 86.35  SCHOOLS.] (a) Districts shall provide each year upon formal 
 86.36  request by or on behalf of a nonpublic school, not including 
 87.1   home schools, located in that district or area, ongoing or 
 87.2   recurring telecommunication access services to the nonpublic 
 87.3   school either through existing district providers or through 
 87.4   separate providers. 
 87.5      (b) The amount of district revenue for telecommunication 
 87.6   access services for each nonpublic school under this subdivision 
 87.7   is equal to: 
 87.8      (1) $5; plus 
 87.9      (2) the per marginal cost pupil unit amount for the 
 87.10  district as determined in subdivision 5; times the number of 
 87.11  pupils who are enrolled at the nonpublic school as of October 1 
 87.12  of the current school year. 
 87.13     (c) Each year, a district providing services under 
 87.14  paragraph (a) may claim up to five percent of the revenue 
 87.15  determined in paragraph (b) for costs of administering this 
 87.16  subdivision.  No district may expend an amount for these 
 87.17  telecommunication access services which exceeds the amount 
 87.18  allocated under this subdivision.  The nonpublic school is 
 87.19  responsible for the telecommunications access costs not covered 
 87.20  by this section. 
 87.21     (d) At the request of a nonpublic school, districts may 
 87.22  allocate the amount determined in paragraph (b) directly to the 
 87.23  nonpublic school to pay for or offset the nonpublic school's 
 87.24  costs for telecommunication access services, however, the amount 
 87.25  allocated directly to the nonpublic school may not exceed the 
 87.26  actual amount of the school's ongoing or recurring 
 87.27  telecommunication access costs.  
 87.28     Subd. 8.  [REIMBURSEMENT CRITERIA.] The commissioner, 
 87.29  working with the commissioner of administration and the 
 87.30  Minnesota education telecommunications council, shall develop 
 87.31  reimbursement criteria that schools must address when submitting 
 87.32  ongoing or recurring telecommunications costs as determined in 
 87.33  subdivisions 1 and 2.  The criteria must assist schools to 
 87.34  procure telecommunications access services in the most efficient 
 87.35  and cost effective manner possible. 
 87.36     Subd. 9.  [EXPIRATION.] This section expires on July 1, 
 88.1   2002. 
 88.2      Subd. 10.  [SEVERABILITY.] If any portion of this section 
 88.3   is found by a court to be unconstitutional, the remaining 
 88.4   portions of the section shall remain in effect. 
 88.5      Sec. 9.  Minnesota Statutes 1999 Supplement, section 
 88.6   126C.10, subdivision 13, is amended to read: 
 88.7      Subd. 13.  [TOTAL OPERATING CAPITAL REVENUE.] (a) For 
 88.8   fiscal year 2000 and thereafter, total operating capital revenue 
 88.9   for a district equals the amount determined under paragraph (b) 
 88.10  or (c), plus $68 $73 times the adjusted marginal cost pupil 
 88.11  units for the school year.  The revenue must be placed in a 
 88.12  reserved account in the general fund and may only be used 
 88.13  according to paragraph (d) or subdivision 14. 
 88.14     (b) For fiscal years 2000 and later, capital revenue for a 
 88.15  district equals $100 times the district's maintenance cost index 
 88.16  times its adjusted marginal cost pupil units for the school year.
 88.17     (c) For fiscal years 2000 and later, the revenue for a 
 88.18  district that operates a program under section 124D.128, is 
 88.19  increased by an amount equal to $30 times the number of marginal 
 88.20  cost pupil units served at the site where the program is 
 88.21  implemented. 
 88.22     (d) For fiscal years 2001 and 2002, the district must 
 88.23  reserve an amount equal to $5 per adjusted marginal cost pupil 
 88.24  unit for telecommunication access costs.  Reserve revenue under 
 88.25  this paragraph must first be used to pay for ongoing or 
 88.26  recurring telecommunication access costs, including access to 
 88.27  data lines, video lines, or Internet access.  Any revenue 
 88.28  remaining after covering all ongoing or recurring access costs 
 88.29  may be used for computer hardware or equipment. 
 88.30     Sec. 10.  Minnesota Statutes 1998, section 126C.40, 
 88.31  subdivision 1, is amended to read: 
 88.32     Subdivision 1.  [TO LEASE BUILDING OR LAND.] (a) When a 
 88.33  district finds it economically advantageous to rent or lease a 
 88.34  building or land for any instructional purposes or for school 
 88.35  storage or furniture repair, and it determines that the 
 88.36  operating capital revenue authorized under section 126C.10, 
 89.1   subdivision 13, is insufficient for this purpose, it may apply 
 89.2   to the commissioner for permission to make an additional capital 
 89.3   expenditure levy for this purpose.  An application for 
 89.4   permission to levy under this subdivision must contain financial 
 89.5   justification for the proposed levy, the terms and conditions of 
 89.6   the proposed lease, and a description of the space to be leased 
 89.7   and its proposed use.  
 89.8      (b) The criteria for approval of applications to levy under 
 89.9   this subdivision must include:  the reasonableness of the price, 
 89.10  the appropriateness of the space to the proposed activity, the 
 89.11  feasibility of transporting pupils to the leased building or 
 89.12  land, conformity of the lease to the laws and rules of the state 
 89.13  of Minnesota, and the appropriateness of the proposed lease to 
 89.14  the space needs and the financial condition of the district.  
 89.15  The commissioner must not authorize a levy under this 
 89.16  subdivision in an amount greater than the cost to the district 
 89.17  of renting or leasing a building or land for approved purposes.  
 89.18  The proceeds of this levy must not be used for custodial or 
 89.19  other maintenance services.  A district may not levy under this 
 89.20  subdivision for the purpose of leasing or renting a 
 89.21  district-owned building or site to itself. 
 89.22     (c) For agreements finalized after July 1, 1997, a district 
 89.23  may not levy under this subdivision for the purpose of leasing:  
 89.24  (1) a newly constructed building used primarily for regular 
 89.25  kindergarten, elementary, or secondary instruction; or (2) a 
 89.26  newly constructed building addition or additions used primarily 
 89.27  for regular kindergarten, elementary, or secondary instruction 
 89.28  that contains more than 20 percent of the square footage of the 
 89.29  previously existing building. 
 89.30     (d) Notwithstanding paragraph (b), a district may levy 
 89.31  under this subdivision for the purpose of leasing or renting a 
 89.32  district-owned building or site to itself only if the amount is 
 89.33  needed by the district to make payments required by a lease 
 89.34  purchase agreement, installment purchase agreement, or other 
 89.35  deferred payments agreement authorized by law, and the levy 
 89.36  meets the requirements of paragraph (c).  A levy authorized for 
 90.1   a district by the commissioner under this paragraph may be in 
 90.2   the amount needed by the district to make payments required by a 
 90.3   lease purchase agreement, installment purchase agreement, or 
 90.4   other deferred payments agreement authorized by law, provided 
 90.5   that any agreement include a provision giving the school 
 90.6   districts the right to terminate the agreement annually without 
 90.7   penalty. 
 90.8      (e) The total levy under this subdivision for a district 
 90.9   for any year must not exceed $100 times the resident pupil units 
 90.10  for the fiscal year to which the levy is attributable. 
 90.11     (e) (f) For agreements for which a review and comment have 
 90.12  been submitted to the department of children, families, and 
 90.13  learning after April 1, 1998, the term "instructional purpose" 
 90.14  as used in this subdivision excludes expenditures on stadiums. 
 90.15     (g) The commissioner of children, families, and learning 
 90.16  may authorize a school district to exceed the limit in paragraph 
 90.17  (e) if the school district petitions the commissioner for 
 90.18  approval.  The commissioner shall grant approval to a school 
 90.19  district to exceed the limit in paragraph (e) for not more than 
 90.20  five years if the district meets the following criteria: 
 90.21     (1) the school district has been experiencing pupil 
 90.22  enrollment growth in the preceding five years; 
 90.23     (2) the purpose of the increased levy is in the long-term 
 90.24  public interest; 
 90.25     (3) the purpose of the increased levy promotes colocation 
 90.26  of government services; and 
 90.27     (4) the purpose of the increased levy is in the long-term 
 90.28  interest of the district by avoiding over construction of school 
 90.29  facilities. 
 90.30     Sec. 11.  Minnesota Statutes 1999 Supplement, section 
 90.31  126C.40, subdivision 6, is amended to read: 
 90.32     Subd. 6.  [LEASE PURCHASE; INSTALLMENT BUYS.] (a) Upon 
 90.33  application to, and approval by, the commissioner in accordance 
 90.34  with the procedures and limits in subdivision 1, paragraphs (a) 
 90.35  and (b), a district, as defined in this subdivision, may: 
 90.36     (1) purchase real or personal property under an installment 
 91.1   contract or may lease real or personal property with an option 
 91.2   to purchase under a lease purchase agreement, by which 
 91.3   installment contract or lease purchase agreement title is kept 
 91.4   by the seller or vendor or assigned to a third party as security 
 91.5   for the purchase price, including interest, if any; and 
 91.6      (2) annually levy the amounts necessary to pay the 
 91.7   district's obligations under the installment contract or lease 
 91.8   purchase agreement. 
 91.9      (b) The obligation created by the installment contract or 
 91.10  the lease purchase agreement must not be included in the 
 91.11  calculation of net debt for purposes of section 475.53, and does 
 91.12  not constitute debt under other law.  An election is not 
 91.13  required in connection with the execution of the installment 
 91.14  contract or the lease purchase agreement. 
 91.15     (c) The proceeds of the levy authorized by this subdivision 
 91.16  must not be used to acquire a facility to be primarily used for 
 91.17  athletic or school administration purposes. 
 91.18     (d) For the purposes of this subdivision, "district" means: 
 91.19     (1) a school district required to have a comprehensive plan 
 91.20  for the elimination of segregation whose plan has been 
 91.21  determined by the commissioner to be in compliance with 
 91.22  department of children, families, and learning rules relating to 
 91.23  equality of educational opportunity and school 
 91.24  desegregation and, for a district eligible for revenue under 
 91.25  section 124D.86, subdivision 3, clause (4), where the 
 91.26  acquisition of property under this subdivision is determined by 
 91.27  the commissioner to contribute to the implementation of the 
 91.28  desegregation plan; or 
 91.29     (2) a school district that participates in a joint program 
 91.30  for interdistrict desegregation with a district defined in 
 91.31  clause (1) if the facility acquired under this subdivision is to 
 91.32  be primarily used for the joint program and the commissioner 
 91.33  determines that the joint programs are being undertaken to 
 91.34  implement the districts' desegregation plan. 
 91.35     (e) Notwithstanding subdivision 1, the prohibition against 
 91.36  a levy by a district to lease or rent a district-owned building 
 92.1   to itself does not apply to levies otherwise authorized by this 
 92.2   subdivision. 
 92.3      (f) For the purposes of this subdivision, any references in 
 92.4   subdivision 1 to building or land shall include personal 
 92.5   property. 
 92.6      <b>EFFECTIVE DATE:</b>  This section is effective for taxes 
 92.7   payable in 2001 and later.  
 92.8      Sec. 12.  Minnesota Statutes 1998, section 126C.69, 
 92.9   subdivision 15, is amended to read: 
 92.10     Subd. 15.  [BOND SALE LIMITATIONS.] A district having an 
 92.11  outstanding state loan must not issue and sell any bonds on the 
 92.12  public market, except to refund state loans, unless it agrees to 
 92.13  make the maximum effort debt service levy in each later year at 
 92.14  the higher rate provided in section 126C.63, subdivision 8, and 
 92.15  unless it schedules the maturities of the bonds according to 
 92.16  section 475.54, subdivision 2.  A district that refunds bonds at 
 92.17  a lower interest rate may continue to make the maximum effort 
 92.18  debt service levy in each later year at the current rate 
 92.19  provided in section 126C.63, subdivision 8, if the district can 
 92.20  demonstrate to the commissioner's satisfaction that the 
 92.21  district's repayments of the state loan will not be reduced 
 92.22  below the previous year's level.  The district must report each 
 92.23  sale to the commissioner. 
 92.24     After a district's capital loan has been outstanding for 20 
 92.25  30 years, the district must not issue bonds on the public market 
 92.26  except to refund the loan. 
 92.27     Sec. 13.  Laws 1999, chapter 241, article 4, section 27, 
 92.28  subdivision 2, is amended to read: 
 92.29     Subd. 2.  [HEALTH AND SAFETY AID.] For health and safety 
 92.30  aid according to Minnesota Statutes, section 123B.57, 
 92.31  subdivision 5: 
 92.32       $14,528,000 $14,015,000   .....     2000 
 92.33       $14,957,000 $14,450,000   .....     2001 
 92.34     The 2000 appropriation includes $1,415,000 for 1999 and 
 92.35  $13,113,000 $12,600,000 for 2000.  
 92.36     The 2001 appropriation includes $1,456,000 $1,400,000 for 
 93.1   2000 and $13,501,000 $13,050,000 for 2001.  
 93.2      <b>EFFECTIVE DATE:</b>  This section is effective the day 
 93.3   following final enactment.  
 93.4      Sec. 14.  Laws 1999, chapter 241, article 4, section 27, 
 93.5   subdivision 3, is amended to read: 
 93.6      Subd. 3.  [DEBT SERVICE AID.] For debt service aid 
 93.7   according to Minnesota Statutes, section 123B.53, subdivision 6: 
 93.8        $33,165,000 $33,141,000   .....     2000
 93.9        $32,084,000 $29,400,000   .....     2001
 93.10     The 2000 appropriation includes $3,842,000 for 1999 and 
 93.11  $29,323,000 $29,299,000 for 2000. 
 93.12     The 2001 appropriation includes $3,256,000 $3,255,000 for 
 93.13  2000 and $28,828,000 $26,145,000 for 2001. 
 93.14     <b>EFFECTIVE DATE:</b>  This section is effective the day 
 93.15  following final enactment.  
 93.16     Sec. 15.  Laws 1999, chapter 241, article 4, section 27, 
 93.17  subdivision 4, is amended to read: 
 93.18     Subd. 4.  [INTERACTIVE TELEVISION (ITV) AID.] For 
 93.19  interactive television (ITV) aid under Minnesota Statutes, 
 93.20  section 126C.40, subdivision 4: 
 93.21       $4,197,000 $4,194,000    .....     2000
 93.22       $2,851,000 $2,761,000    .....     2001
 93.23     The 2000 appropriation includes $405,000 for 1999 and 
 93.24  $3,792,000 $3,789,000 for 2000. 
 93.25     The 2001 appropriation includes $421,000 for 2000 and 
 93.26  $2,430,000 $2,340,000 for 2001. 
 93.27     <b>EFFECTIVE DATE:</b>  This section is effective the day 
 93.28  following final enactment.  
 93.29     Sec. 16.  Laws 1999, chapter 241, article 4, section 27, 
 93.30  subdivision 5, is amended to read: 
 93.31     Subd. 5.  [ALTERNATIVE FACILITIES BONDING AID.] For 
 93.32  alternative facilities bonding aid, according to Minnesota 
 93.33  Statutes, section 123B.59: 
 93.34       $19,058,000 $18,920,000   .....     2000 
 93.35       $19,286,000 $19,134,000   .....     2001 
 93.36     The 2000 appropriation includes $1,700,000 for 2000 1999 
 94.1   and $17,358,000 $17,220,000 for 2001 2000. 
 94.2      The 2001 appropriation includes $1,928,000 $1,913,000 for 
 94.3   2000 and $17,358,000 $17,221,000 for 2001. 
 94.4      <b>EFFECTIVE DATE:</b>  This section is effective the day 
 94.5   following final enactment.  
 94.6      Sec. 17.  Laws 1999, chapter 241, article 4, section 27, 
 94.7   subdivision 10, is amended to read: 
 94.8      Subd. 10.  [DECLINING PUPIL AID; ST. PETER.] For a grant to 
 94.9   independent school district No. 508, St. Peter, to ameliorate 
 94.10  general fund operating losses associated with the March, 1998 
 94.11  tornado: 
 94.12       $  105,000 $ 75,000    .....     2000 
 94.13       $  278,000 $115,000    .....     2001 
 94.14     <b>EFFECTIVE DATE:</b>  This section is effective the day 
 94.15  following final enactment. 
 94.16     Sec. 18.  Laws 1999, chapter 241, article 4, section 27, 
 94.17  subdivision 11, is amended to read: 
 94.18     Subd. 11.  [FLOODS; DECLINING PUPIL AID.] For declining 
 94.19  pupil aid under section 23: 
 94.20       $2,132,000 $2,087,000    .....     2000 
 94.21       $1,758,000 $1,639,000    .....     2001 
 94.22     <b>EFFECTIVE DATE:</b>  This section is effective the day 
 94.23  following final enactment. 
 94.24     Sec. 19.  Laws 1999, chapter 241, article 4, section 29, is 
 94.25  amended to read: 
 94.26     Sec. 29.  [REPEALER.] 
 94.27     (a) Minnesota Statutes 1998, sections 123A.44; 123A.441; 
 94.28  123A.442; 123A.443; 123A.444; 123A.445; 123A.446; 123B.57, 
 94.29  subdivisions 4, 5, and 7; 123B.59, subdivision 7; 123B.63, 
 94.30  subdivisions 1 and 2; section 123B.66; 123B.67; 123B.68; and 
 94.31  123B.69, are, is repealed effective the day following final 
 94.32  enactment. 
 94.33     (b) Minnesota Statutes 1998, section 123B.58, is repealed 
 94.34  effective July 1, 2004. 
 94.35     (c) Minnesota Statutes 1998, section 123B.64, subdivision 
 94.36  4, is repealed effective for revenue for fiscal year 2000. 
 95.1      (d) (c) Minnesota Statutes 1998, section 123B.64, 
 95.2   subdivisions 1, 2, and 3, are repealed effective for revenue for 
 95.3   fiscal year 2001. 
 95.4      (e) (d) Minnesota Rules, parts 3500.3900; 3500.4000; 
 95.5   3500.4100; 3500.4200; and 3500.4300, are repealed. 
 95.6      <b>EFFECTIVE DATE:</b>  Paragraph (a) is effective retroactive to 
 95.7   May 26, 1999.  
 95.8      Sec. 20.  [DECLINING PUPIL UNITS; ST. PETER.] 
 95.9      For purposes of Laws 1999, chapter 241, article 4, section 
 95.10  22, the St. Peter school district's marginal cost pupil units 
 95.11  for the 1996-1997 school year must be calculated using the pupil 
 95.12  weights in effect for fiscal year 2000. 
 95.13     <b>EFFECTIVE DATE:</b>  This section is effective the day 
 95.14  following final enactment. 
 95.15     Sec. 21.  [ONE-TIME DEFERRED MAINTENANCE AID.] 
 95.16     (a) For fiscal year 2001 only, a district's one-time 
 95.17  deferred maintenance aid is equal to: 
 95.18     (1) $10 times the adjusted marginal cost pupil units for 
 95.19  the school year; plus 
 95.20     (2) $21.90 times the adjusted marginal cost pupil units for 
 95.21  the school year for a district that does not qualify for 
 95.22  alternative facilities bonding under Minnesota Statutes, section 
 95.23  123B.59, or under Laws 1999, chapter 241, article 4, section 25. 
 95.24     (b) Aid received under this section must be used for 
 95.25  deferred maintenance, to make accessibility improvements, or to 
 95.26  make fire, safety, or health repairs. 
 95.27     Sec. 22.  [PROJECT QUALIFICATION; TRITON.] 
 95.28     Subdivision 1.  [ELIGIBILITY.] Notwithstanding Minnesota 
 95.29  Statutes, section 123B.57, independent school district No. 2125, 
 95.30  Triton, may include all unreimbursed costs associated with the 
 95.31  testing, evaluation, removal, and replacement of building 
 95.32  fixtures and equipment necessitated by the discovery of mold in 
 95.33  a school building in its health and safety plan not to exceed 
 95.34  $400,000. 
 95.35     Subd. 2.  [COST RECOVERY.] Independent school district No. 
 95.36  2125, Triton, must pursue all reasonable options to recover 
 96.1   expenses resulting from the mold from its insurance company, the 
 96.2   subcontractors, and any other parties responsible for the damage 
 96.3   caused by the mold. 
 96.4      <b>EFFECTIVE DATE:</b>  This section is effective the day 
 96.5   following final enactment. 
 96.6      Sec. 23.  [COMMISSIONER RECOMMENDATION.] 
 96.7      By February 1, 2002, the commissioner of children, 
 96.8   families, and learning, in cooperation with the commissioner of 
 96.9   administration and the Minnesota education telecommunication 
 96.10  council, shall recommend to the legislature a permanent method 
 96.11  for funding telecommunications access as part of the general 
 96.12  education revenue formula under Minnesota Statutes, section 
 96.13  126C.10.  The commissioner shall consider the following in 
 96.14  making the recommendation: 
 96.15     (1) the range of costs for providing a minimum level of 
 96.16  telecommunications access for all students; 
 96.17     (2) the flexibility that is necessary to accommodate 
 96.18  emerging technological advances in the telecommunications field; 
 96.19  and 
 96.20     (3) other related efforts within the state, including the 
 96.21  state's higher education and public library systems. 
 96.22     Sec. 24.  [CHISHOLM SCHOOL DISTRICT BONDS.] 
 96.23     Subdivision 1.  [AUTHORIZATION.] Independent school 
 96.24  district No. 695, Chisholm, may issue bonds in an aggregate 
 96.25  principal amount not exceeding $4,250,000. 
 96.26     Subd. 2.  [USES; PROCESS.] The bonds authorized under 
 96.27  subdivision 1 may be issued in addition to any bonds already 
 96.28  issued or authorized.  The proceeds of the bonds shall be used 
 96.29  to provide funds to design, construct, equip, furnish, remodel, 
 96.30  rehabilitate, and acquire land for school facilities and 
 96.31  buildings and to pay any architect, engineer and legal fees 
 96.32  incidental to those purposes or to the sale of bonds.  Except as 
 96.33  permitted by this section, the bonds shall be authorized, 
 96.34  issued, sold, executed, and delivered in the manner provided by 
 96.35  Minnesota Statutes, chapter 475.  A referendum on the question 
 96.36  of issuing the bonds authorized under subdivision 1 is 
 97.1   required.  A resolution of the board levying taxes for the 
 97.2   payment of the bonds and interest on them shall be deemed to be 
 97.3   in compliance with the provisions of Minnesota Statutes, chapter 
 97.4   475, with respect to the levying of taxes for their payment. 
 97.5      Subd. 3.  [APPROPRIATION.] There is annually appropriated 
 97.6   from the distribution of taconite production tax revenues to the 
 97.7   taconite environmental protection fund pursuant to Minnesota 
 97.8   Statutes, section 298.28, subdivision 11, and to the northeast 
 97.9   Minnesota economic protection trust pursuant to Minnesota 
 97.10  Statutes, section 298.28, subdivisions 9 and 11, in equal 
 97.11  shares, an amount sufficient to pay when due 80 percent of the 
 97.12  principal and interest on the bonds issued under subdivision 1.  
 97.13  If the annual distribution to the northeast Minnesota economic 
 97.14  protection trust is insufficient to pay its share after 
 97.15  fulfilling any obligations of the trust under Minnesota 
 97.16  Statutes, section 298.225 or 298.293, the deficiency shall be 
 97.17  appropriated from the taconite environmental protection fund. 
 97.18     Subd. 4.  [DISTRICT OBLIGATIONS.] Bonds issued under 
 97.19  authority of this section shall be the general obligations of 
 97.20  the school district, for which its full faith and credit and 
 97.21  unlimited taxing powers shall be pledged.  If there are any 
 97.22  deficiencies in the amount received under subdivision 3, they 
 97.23  shall be satisfied by general levies, not subject to limit, on 
 97.24  all taxable properties in the district in accordance with 
 97.25  Minnesota Statutes, section 475.74.  If any deficiency levies 
 97.26  are necessary, the school board may effect a temporary loan or 
 97.27  loans on certificates of indebtedness issued in anticipation of 
 97.28  them to meet payments of principal or interest on the bonds due 
 97.29  or about to become due. 
 97.30     Subd. 5.  [DISTRICT LEVY.] The school board of the school 
 97.31  district authorized to issue bonds under subdivision 1 shall by 
 97.32  resolution levy on all property in the school district subject 
 97.33  to the general ad valorem school tax levies, and not subject to 
 97.34  taxation under Minnesota Statutes, sections 298.23 to 298.28, a 
 97.35  direct annual ad valorem tax for each year of the term of the 
 97.36  bonds in amounts that, if collected in full, will produce the 
 98.1   amounts needed to meet when due 20 percent of the principal and 
 98.2   interest payments on the bonds.  A copy of the resolution shall 
 98.3   be filed, and the necessary taxes shall be extended, assessed, 
 98.4   collected, and remitted in accordance with Minnesota Statutes, 
 98.5   section 475.61. 
 98.6      Subd. 6.  [LEVY LIMITATIONS.] Taxes levied pursuant to this 
 98.7   section shall be disregarded in the calculation of any other tax 
 98.8   levies or limits on tax levies provided by other law. 
 98.9      Subd. 7.  [BONDING LIMITATIONS.] Bonds may be issued under 
 98.10  authority of this section notwithstanding any limitations upon 
 98.11  the indebtedness of a district, and their amounts shall not be 
 98.12  included in computing the indebtedness of a district for any 
 98.13  purpose, including the issuance of subsequent bonds and the 
 98.14  incurring of subsequent indebtedness. 
 98.15     Subd. 8.  [TERMINATION OF APPROPRIATION.] The appropriation 
 98.16  authorized in subdivision 3 terminates upon payment or maturity 
 98.17  of the last of the bonds issued under this section. 
 98.18     Subd. 9.  [BOND ISSUE REQUIREMENT.] No bonds may be issued 
 98.19  under this section after April 30, 2002, unless they are issued 
 98.20  under a contract in effect on or before April 30, 2002. 
 98.21     Subd. 10.  [LOCAL APPROVAL.] This section is effective for 
 98.22  independent school district No. 695 the day after its governing 
 98.23  body complies with Minnesota Statutes, section 645.021, 
 98.24  subdivision 3. 
 98.25     Sec. 25.  [GREENWAY-COLERAINE SCHOOL DISTRICT BONDS.] 
 98.26     Subdivision 1.  [AUTHORIZATION.] Independent school 
 98.27  district No. 316, Greenway-Coleraine, may issue bonds in an 
 98.28  aggregate principal amount not exceeding $2,500,000. 
 98.29     Subd. 2.  [USES; PROCESS.] The bonds authorized under 
 98.30  subdivision 1 may be issued in addition to any bonds already 
 98.31  issued or authorized.  The proceeds of the bonds shall be used 
 98.32  to provide funds to design, construct, equip, furnish, remodel, 
 98.33  rehabilitate, and acquire land for school facilities and 
 98.34  buildings and to pay any architect, engineer and legal fees 
 98.35  incidental to those purposes or to the sale of bonds.  Except as 
 98.36  permitted by this section, the bonds shall be authorized, 
 99.1   issued, sold, executed, and delivered in the manner provided by 
 99.2   Minnesota Statutes, chapter 475.  A referendum on the question 
 99.3   of issuing the bonds authorized under subdivision 1 is 
 99.4   required.  A resolution of the board levying taxes for the 
 99.5   payment of the bonds and interest on them shall be deemed to be 
 99.6   in compliance with the provisions of Minnesota Statutes, chapter 
 99.7   475, with respect to the levying of taxes for their payment. 
 99.8      Subd. 3.  [APPROPRIATION.] There is annually appropriated 
 99.9   from the distribution of taconite production tax revenues to the 
 99.10  taconite environmental protection fund pursuant to Minnesota 
 99.11  Statutes, section 298.28, subdivision 11, and to the northeast 
 99.12  Minnesota economic protection trust pursuant to Minnesota 
 99.13  Statutes, section 298.28, subdivisions 9 and 11, in equal 
 99.14  shares, an amount sufficient to pay when due 80 percent of the 
 99.15  principal and interest on the bonds issued under subdivision 1.  
 99.16  If the annual distribution to the northeast Minnesota economic 
 99.17  protection trust is insufficient to pay its share after 
 99.18  fulfilling any obligations of the trust under Minnesota 
 99.19  Statutes, section 298.225 or 298.293, the deficiency shall be 
 99.20  appropriated from the taconite environmental protection fund. 
 99.21     Subd. 4.  [DISTRICT OBLIGATIONS.] Bonds issued under 
 99.22  authority of this section shall be the general obligations of 
 99.23  the school district, for which its full faith and credit and 
 99.24  unlimited taxing powers shall be pledged.  If there are any 
 99.25  deficiencies in the amount received under subdivision 3, they 
 99.26  shall be satisfied by general levies, not subject to limit, on 
 99.27  all taxable properties in the district in accordance with 
 99.28  Minnesota Statutes, section 475.74.  If any deficiency levies 
 99.29  are necessary, the school board may effect a temporary loan or 
 99.30  loans on certificates of indebtedness issued in anticipation of 
 99.31  them to meet payments of principal or interest on the bonds due 
 99.32  or about to become due. 
 99.33     Subd. 5.  [DISTRICT LEVY.] The school board of the school 
 99.34  district authorized to issue bonds under subdivision 1 shall by 
 99.35  resolution levy on all property in the school district subject 
 99.36  to the general ad valorem school tax levies, and not subject to 
100.1   taxation under Minnesota Statutes, sections 298.23 to 298.28, a 
100.2   direct annual ad valorem tax for each year of the term of the 
100.3   bonds in amounts that, if collected in full, will produce the 
100.4   amounts needed to meet when due 20 percent of the principal and 
100.5   interest payments on the bonds.  A copy of the resolution shall 
100.6   be filed, and the necessary taxes shall be extended, assessed, 
100.7   collected, and remitted in accordance with Minnesota Statutes, 
100.8   section 475.61. 
100.9      Subd. 6.  [LEVY LIMITATIONS.] Taxes levied pursuant to this 
100.10  section shall be disregarded in the calculation of any other tax 
100.11  levies or limits on tax levies provided by other law. 
100.12     Subd. 7.  [BONDING LIMITATIONS.] Bonds may be issued under 
100.13  authority of this section notwithstanding any limitations upon 
100.14  the indebtedness of a district, and their amounts shall not be 
100.15  included in computing the indebtedness of a district for any 
100.16  purpose, including the issuance of subsequent bonds and the 
100.17  incurring of subsequent indebtedness. 
100.18     Subd. 8.  [TERMINATION OF APPROPRIATION.] The appropriation 
100.19  authorized in subdivision 3 terminates upon payment or maturity 
100.20  of the last of the bonds issued under this section. 
100.21     Subd. 9.  [BOND ISSUE REQUIREMENT.] No bonds may be issued 
100.22  under this section after April 30, 2002, unless they are issued 
100.23  under a contract in effect on or before April 30, 2002. 
100.24     Subd. 10.  [LOCAL APPROVAL.] This section is effective for 
100.25  independent school district No. 316 the day after its governing 
100.26  body complies with Minnesota Statutes, section 645.021, 
100.27  subdivision 3. 
100.28     Sec. 26.  [LAKE SUPERIOR SCHOOL DISTRICT BONDS.] 
100.29     Subdivision 1.  [AUTHORIZATION.] Independent school 
100.30  district No. 381, Lake Superior, may issue bonds in an aggregate 
100.31  principal amount not exceeding $6,000,000. 
100.32     Subd. 2.  [USES; PROCESS.] The bonds authorized under 
100.33  subdivision 1 may be issued in addition to any bonds already 
100.34  issued or authorized.  The proceeds of the bonds shall be used 
100.35  to provide funds to design, construct, equip, furnish, remodel, 
100.36  rehabilitate, and acquire land for school facilities and 
101.1   buildings and to pay any architect, engineer and legal fees 
101.2   incidental to those purposes or to the sale of bonds.  Except as 
101.3   permitted by this section, the bonds shall be authorized, 
101.4   issued, sold, executed, and delivered in the manner provided by 
101.5   Minnesota Statutes, chapter 475.  A referendum on the question 
101.6   of issuing the bonds authorized under subdivision 1 is 
101.7   required.  A resolution of the board levying taxes for the 
101.8   payment of the bonds and interest on them shall be deemed to be 
101.9   in compliance with the provisions of Minnesota Statutes, chapter 
101.10  475, with respect to the levying of taxes for their payment. 
101.11     Subd. 3.  [APPROPRIATION.] There is annually appropriated 
101.12  from the distribution of taconite production tax revenues to the 
101.13  taconite environmental protection fund pursuant to Minnesota 
101.14  Statutes, section 298.28, subdivision 11, and to the northeast 
101.15  Minnesota economic protection trust pursuant to Minnesota 
101.16  Statutes, section 298.28, subdivisions 9 and 11, in equal 
101.17  shares, an amount sufficient to pay when due 80 percent of the 
101.18  principal and interest on the bonds issued under subdivision 1.  
101.19  If the annual distribution to the northeast Minnesota economic 
101.20  protection trust is insufficient to pay its share after 
101.21  fulfilling any obligations of the trust under Minnesota 
101.22  Statutes, section 298.225 or 298.293, the deficiency shall be 
101.23  appropriated from the taconite environmental protection fund. 
101.24     Subd. 4.  [DISTRICT OBLIGATIONS.] Bonds issued under 
101.25  authority of this section shall be the general obligations of 
101.26  the school district, for which its full faith and credit and 
101.27  unlimited taxing powers shall be pledged.  If there are any 
101.28  deficiencies in the amount received under subdivision 3, they 
101.29  shall be satisfied by general levies, not subject to limit, on 
101.30  all taxable properties in the district in accordance with 
101.31  Minnesota Statutes, section 475.74.  If any deficiency levies 
101.32  are necessary, the school board may effect a temporary loan or 
101.33  loans on certificates of indebtedness issued in anticipation of 
101.34  them to meet payments of principal or interest on the bonds due 
101.35  or about to become due. 
101.36     Subd. 5.  [DISTRICT LEVY.] The school board of the school 
102.1   district authorized to issue bonds under subdivision 1 shall by 
102.2   resolution levy on all property in the school district subject 
102.3   to the general ad valorem school tax levies, and not subject to 
102.4   taxation under Minnesota Statutes, sections 298.23 to 298.28, a 
102.5   direct annual ad valorem tax for each year of the term of the 
102.6   bonds in amounts that, if collected in full, will produce the 
102.7   amounts needed to meet when due 20 percent of the principal and 
102.8   interest payments on the bonds.  A copy of the resolution shall 
102.9   be filed, and the necessary taxes shall be extended, assessed, 
102.10  collected, and remitted in accordance with Minnesota Statutes, 
102.11  section 475.61. 
102.12     Subd. 6.  [LEVY LIMITATIONS.] Taxes levied pursuant to this 
102.13  section shall be disregarded in the calculation of any other tax 
102.14  levies or limits on tax levies provided by other law. 
102.15     Subd. 7.  [BONDING LIMITATIONS.] Bonds may be issued under 
102.16  authority of this section notwithstanding any limitations upon 
102.17  the indebtedness of a district, and their amounts shall not be 
102.18  included in computing the indebtedness of a district for any 
102.19  purpose, including the issuance of subsequent bonds and the 
102.20  incurring of subsequent indebtedness. 
102.21     Subd. 8.  [TERMINATION OF APPROPRIATION.] The appropriation 
102.22  authorized in subdivision 3 terminates upon payment or maturity 
102.23  of the last of the bonds issued under this section. 
102.24     Subd. 9.  [BOND ISSUE REQUIREMENT.] No bonds may be issued 
102.25  under this section after April 30, 2002, unless they are issued 
102.26  under a contract in effect on or before April 30, 2002. 
102.27     Subd. 10.  [LOCAL APPROVAL.] This section is effective for 
102.28  independent school district No. 381 the day after its governing 
102.29  body complies with Minnesota Statutes, section 645.021, 
102.30  subdivision 3. 
102.31     Sec. 27.  [REPEALER WITHOUT EFFECT.] 
102.32     The repeal of Minnesota Statutes 1998, sections 123A.44; 
102.33  123A.441; 123A.442; 123A.443; 123A.444; 123A.445; 123A.446; 
102.34  123B.57, subdivisions 4, 5, and 7; 123B.59, subdivision 7; 
102.35  123B.63, subdivisions 1 and 2; 123B.67; 123B.68; and 123B.69, by 
102.36  Laws 1999, chapter 241, article 4, section 29, with an effective 
103.1   date of May 26, 1999, is without effect and Minnesota Statutes 
103.2   1998, sections 123A.44; 123A.441; 123A.442; 123A.443; 123A.444; 
103.3   123A.445; 123A.446; 123B.57, subdivisions 4, 5, and 7; 123B.59, 
103.4   subdivision 7; 123B.63, subdivisions 1 and 2; 123B.67; 123B.68; 
103.5   and 123B.69, remain in effect after May 25, 1999. 
103.6      <b>EFFECTIVE DATE:</b>  This section is effective retroactive to 
103.7   May 26, 1999. 
103.8      Sec. 28.  [APPROPRIATIONS.] 
103.9      Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
103.10  LEARNING.] The sums indicated in this section are appropriated 
103.11  from the general fund to the department of children, families, 
103.12  and learning for fiscal years designated. 
103.13     Subd. 2.  [TELECOMMUNICATION ACCESS REVENUE.] For 
103.14  telecommunication access cost revenue under Minnesota Statutes, 
103.15  section 125B.25:  
103.16       $16,668,000     .....     2001 
103.17     Of this amount, $16,668,000 is for fiscal year 2001. 
103.18     If the appropriation amount exceeds the revenue for the 
103.19  2000-2001 school year, the commissioner shall increase the 
103.20  reimbursement rate in Minnesota Statutes, section 125B.25, 
103.21  subdivisions 5 and 6, to expend the full appropriation.  If the 
103.22  appropriation amount is insufficient, the commissioner shall 
103.23  reduce the reimbursement rate in Minnesota Statutes, section 
103.24  125B.25, subdivisions 5 and 6, and the revenue for the 2000-2001 
103.25  school year shall be prorated.  The reimbursement rate shall not 
103.26  exceed 100 percent. 
103.27     Subd. 3.  [INTEREST ON FLOOD LOANS.] For interest paid on 
103.28  flood loans: 
103.29       $   970,000     .....     2000
103.30     Of this amount, $761,000 is for independent school district 
103.31  No. 595, East Grand Forks, and $209,000 is for independent 
103.32  school district No. 2854, Ada-Borup. 
103.33     This is a one-time appropriation and is available until 
103.34  June 30, 2001. 
103.35     Subd. 4.  [ONE-TIME DEFERRED MAINTENANCE AID.] For one-time 
103.36  deferred maintenance aid: 
104.1        $23,260,000     .....     2001
104.2      This is a one-time appropriation. 
104.3      <b>EFFECTIVE DATE:</b>  This section is effective the day 
104.4   following final enactment. 
104.5                              ARTICLE 6 
104.6               KINDERGARTEN THROUGH GRADE 12 EDUCATION 
104.7               EDUCATIONAL EXCELLENCE AND OTHER POLICY 
104.8      Section 1.  Minnesota Statutes 1998, section 120B.13, 
104.9   subdivision 4, is amended to read: 
104.10     Subd. 4.  [INFORMATION.] The commissioner shall submit the 
104.11  following information to the education committees of the 
104.12  legislature each year by January February 1: 
104.13     (1) the number of pupils enrolled in advanced placement and 
104.14  international baccalaureate courses in each school district; 
104.15     (2) the number of teachers in each district attending 
104.16  training programs offered by the college board or International 
104.17  Baccalaureate North America, Inc.; 
104.18     (3) the number of teachers in each district participating 
104.19  in support programs; 
104.20     (4) recent trends in the field of advanced placement and 
104.21  international baccalaureate programs; 
104.22     (5) expenditures for each category in this section; and 
104.23     (6) other recommendations for the state program. 
104.24     Sec. 2.  Minnesota Statutes 1999 Supplement, section 
104.25  120B.30, subdivision 1, is amended to read: 
104.26     Subdivision 1.  [STATEWIDE TESTING.] (a) The commissioner, 
104.27  with advice from experts with appropriate technical 
104.28  qualifications and experience and stakeholders, shall include in 
104.29  the comprehensive assessment system, for each grade level to be 
104.30  tested, a single statewide norm-referenced or 
104.31  criterion-referenced test, or a combination of a norm-referenced 
104.32  and a criterion-referenced test, which shall be highly 
104.33  correlated with the state's graduation standards and 
104.34  administered annually to all students in the third, fifth, and 
104.35  eighth grades.  The commissioner shall establish one or more 
104.36  months during which schools shall administer the tests to 
105.1   students each school year.  Only Minnesota basic skills tests in 
105.2   reading, mathematics, and writing shall fulfill students' 
105.3   testing requirements for a passing state notation.  The passing 
105.4   scores of the state tests in reading and mathematics are the 
105.5   equivalent of:  
105.6      (1) 70 percent correct for students entering grade 9 in 
105.7   1996; and 
105.8      (2) 75 percent correct for students entering grade 9 in 
105.9   1997 and thereafter, as based on the first uniform test 
105.10  administration of February 1998. 
105.11     (b) In addition, at the secondary level, districts shall 
105.12  assess student performance in all required learning areas and 
105.13  selected required standards within each area of the profile of 
105.14  learning.  The testing instruments and testing process shall be 
105.15  determined by the commissioner.  The results shall be aggregated 
105.16  at the site and district level.  The testing shall be 
105.17  administered beginning in the 1999-2000 school year and 
105.18  thereafter. 
105.19     (c) The comprehensive assessment system shall include an 
105.20  evaluation of school site and school district performance levels 
105.21  during the 1997-1998 school year and thereafter using an 
105.22  established performance baseline developed from students' test 
105.23  scores under this section that records, at a minimum, students' 
105.24  unweighted mean test scores in each tested subject, a second 
105.25  performance baseline that reports, at a minimum, the same 
105.26  unweighted mean test scores of only those students enrolled in 
105.27  the school by January 1 of the previous school year, and a third 
105.28  performance baseline that reports the same unweighted test 
105.29  scores of all students except those students receiving limited 
105.30  English proficiency instruction.  The evaluation also shall 
105.31  record separately, in proximity to the performance baselines, 
105.32  the percentages of students who are eligible to receive a free 
105.33  or reduced price school meal, demonstrate limited English 
105.34  proficiency, or are eligible to receive special education 
105.35  services. 
105.36     (d) In addition to the testing and reporting requirements 
106.1   under paragraphs (a), (b), and (c), the commissioner shall 
106.2   include the following components in the statewide educational 
106.3   accountability and public reporting system: 
106.4      (1) uniform statewide testing of all third, fifth, eighth, 
106.5   and post-eighth grade students with exemptions, only with parent 
106.6   or guardian approval, from the testing requirement only for 
106.7   those very few students for whom the student's individual 
106.8   education plan team under sections 125A.05 and 125A.06, 
106.9   determines that the student is incapable of taking a statewide 
106.10  test, or a limited English proficiency student under section 
106.11  124D.59, subdivision 2, if the student has been in the United 
106.12  States for fewer than 12 months and for whom special language 
106.13  barriers exist, such as the student's native language does not 
106.14  have a written form or the district does not have access to 
106.15  appropriate interpreter services for the student's native 
106.16  language; 
106.17     (2) educational indicators that can be aggregated and 
106.18  compared across school districts and across time on a statewide 
106.19  basis; 
106.20     (3) students' scores on the American College Test; 
106.21     (4) participation in the National Assessment of Educational 
106.22  Progress so that the state can benchmark its performance against 
106.23  the nation and other states, and, where possible, against other 
106.24  countries, and contribute to the national effort to monitor 
106.25  achievement; and 
106.26     (5) basic skills and advanced competencies connecting 
106.27  teaching and learning to high academic standards, assessment, 
106.28  and transitions to citizenship and employment. 
106.29     (e) Districts must report exemptions under paragraph (d), 
106.30  clause (1), to the commissioner consistent with a format 
106.31  provided by the commissioner. 
106.32     <b>EFFECTIVE DATE:</b>  This section is effective the day 
106.33  following final enactment and applies to test administrations 
106.34  beginning in February 2000. 
106.35     Sec. 3.  [121A.582] [STUDENT DISCIPLINE; REASONABLE FORCE.] 
106.36     Subdivision 1.  [REASONABLE FORCE STANDARD.] (a) A teacher, 
107.1   in exercising the person's lawful authority, may use reasonable 
107.2   force when it is necessary under the circumstances to correct or 
107.3   restrain a student or prevent bodily harm or death to another. 
107.4      (b) A school employee, school bus driver, or other agent of 
107.5   a district, in exercising the person's lawful authority, may use 
107.6   reasonable force when it is necessary under the circumstances to 
107.7   restrain a student or prevent bodily harm or death to another. 
107.8      (c) Paragraphs (a) and (b) do not authorize conduct 
107.9   prohibited under sections 121A.58 and 121A.67. 
107.10     Subd. 2.  [CIVIL LIABILITY.] (a) A teacher who, in the 
107.11  exercise of the person's lawful authority, uses reasonable force 
107.12  under the standard in subdivision 1, paragraph (a), has a 
107.13  defense against a civil action for damages under section 123B.25.
107.14     (b) A school employee, bus driver, or other agent of a 
107.15  district who, in the exercise of the person's lawful authority, 
107.16  uses reasonable force under the standard in subdivision 1, 
107.17  paragraph (b), has a defense against a civil action for damages 
107.18  under section 123B.25. 
107.19     Subd. 3.  [CRIMINAL PROSECUTION.] (a) A teacher who, in the 
107.20  exercise of the person's lawful authority, uses reasonable force 
107.21  under the standard in subdivision 1, paragraph (a), has a 
107.22  defense against a criminal prosecution under section 609.06, 
107.23  subdivision 1. 
107.24     (b) A school employee, bus driver, or other agent of a 
107.25  district who, in the exercise of the person's lawful authority, 
107.26  uses reasonable force under the standard in subdivision 1, 
107.27  paragraph (b), has a defense against a criminal prosecution 
107.28  under section 609.06, subdivision 1. 
107.29     Subd. 4.  [SUPPLEMENTARY RIGHTS AND DEFENSES.] Any right or 
107.30  defense in this section is supplementary to those specified in 
107.31  section 121A.58, 121A.67, 123B.25, or 609.06, subdivision 1. 
107.32     <b>EFFECTIVE DATE:</b>  This section is effective for the 
107.33  2000-2001 school year and later. 
107.34     Sec. 4.  Minnesota Statutes 1998, section 121A.61, 
107.35  subdivision 3, is amended to read: 
107.36     Subd. 3.  [POLICY COMPONENTS.] The policy must include at 
108.1   least the following components:  
108.2      (a) rules governing student conduct and procedures for 
108.3   informing students of the rules; 
108.4      (b) the grounds for removal of a student from a class; 
108.5      (c) the authority of the classroom teacher to remove 
108.6   students from the classroom pursuant to procedures and rules 
108.7   established in the district's policy; 
108.8      (d) the procedures for removal of a student from a class by 
108.9   a teacher, school administrator, or other school district 
108.10  employee; 
108.11     (e) the period of time for which a student may be removed 
108.12  from a class, which may not exceed five class periods for a 
108.13  violation of a rule of conduct; 
108.14     (f) provisions relating to the responsibility for and 
108.15  custody of a student removed from a class; 
108.16     (g) the procedures for return of a student to the specified 
108.17  class from which the student has been removed; 
108.18     (h) the procedures for notifying a student and the 
108.19  student's parents or guardian of violations of the rules of 
108.20  conduct and of resulting disciplinary actions; 
108.21     (i) any procedures determined appropriate for encouraging 
108.22  early involvement of parents or guardians in attempts to improve 
108.23  a student's behavior; 
108.24     (j) any procedures determined appropriate for encouraging 
108.25  early detection of behavioral problems; 
108.26     (k) any procedures determined appropriate for referring a 
108.27  student in need of special education services to those services; 
108.28     (1) the procedures for consideration of whether there is a 
108.29  need for a further assessment or of whether there is a need for 
108.30  a review of the adequacy of a current individual education plan 
108.31  of a student with a disability who is removed from class; 
108.32     (m) procedures for detecting and addressing chemical abuse 
108.33  problems of a student while on the school premises; 
108.34     (n) the minimum consequences for violations of the code of 
108.35  conduct; and 
108.36     (o) procedures for immediate and appropriate interventions 
109.1   tied to violations of the code; and 
109.2      (p) a provision that states that a teacher, school 
109.3   employee, school bus driver, or other agent of a district may 
109.4   use reasonable force in compliance with section 121A.582 and 
109.5   other laws.  
109.6      <b>EFFECTIVE DATE:</b>  This section is effective for the 
109.7   2001-2002 school year and thereafter. 
109.8      Sec. 5.  Minnesota Statutes 1999 Supplement, section 
109.9   122A.23, is amended to read: 
109.10     122A.23 [APPLICANTS TRAINED IN OTHER STATES.] 
109.11     Subdivision 1.  [PREPARATION EQUIVALENCY.] When a license 
109.12  to teach is authorized to be issued to any holder of a diploma 
109.13  or a degree of a Minnesota state university, or of the 
109.14  University of Minnesota, or of a liberal arts university, or a 
109.15  technical training institution, such license may also, in the 
109.16  discretion of the board of teaching or the commissioner of 
109.17  children, families, and learning, whichever has jurisdiction, be 
109.18  issued to any holder of a diploma or a degree of a teacher 
109.19  training institution of equivalent rank and standing of any 
109.20  other state.  The diploma or degree must be granted by virtue of 
109.21  the completion of a course in teacher preparation essentially 
109.22  equivalent in content to that required by such Minnesota state 
109.23  university or the University of Minnesota or a liberal arts 
109.24  university in Minnesota or a technical training institution as 
109.25  preliminary to the granting of a diploma or a degree of the same 
109.26  rank and class. 
109.27     Subd. 2.  [APPLICANTS LICENSED IN OTHER STATES.] (a) 
109.28  Subject to the requirements of sections 122A.18, subdivision 8, 
109.29  and 123B.03, the board of teaching must issue a teaching license 
109.30  or a temporary teaching license under paragraphs (b) to (e) to 
109.31  an applicant who holds at least a baccalaureate degree from a 
109.32  regionally accredited college or university and holds or held a 
109.33  similar out-of-state teaching license that requires the 
109.34  applicant to successfully complete a teacher preparation program 
109.35  approved by the issuing state, which includes field-specific 
109.36  teaching methods and student teaching or essentially equivalent 
110.1   experience. 
110.2      (b) The board of teaching must issue a teaching license to 
110.3   an applicant who: 
110.4      (1) successfully completed all exams and human relations 
110.5   preparation components required by the board of teaching; and 
110.6      (2) holds or held an out-of-state teaching license to teach 
110.7   the same content field and grade levels if the scope of the 
110.8   out-of-state license is no more than one grade level less than a 
110.9   similar Minnesota license. 
110.10     (c) The board of teaching, consistent with board rules, 
110.11  must issue up to three one-year temporary teaching licenses to 
110.12  an applicant who holds or held an out-of-state teaching license 
110.13  to teach the same content field and grade levels, where the 
110.14  scope of the out-of-state license is no more than one grade 
110.15  level less than a similar Minnesota license, but has not 
110.16  successfully completed all exams and human relations preparation 
110.17  components required by the board of teaching. 
110.18     (d) The board of teaching, consistent with board rules, 
110.19  must issue up to three one-year temporary teaching licenses to 
110.20  an applicant who: 
110.21     (1) successfully completed all exams and human relations 
110.22  preparation components required by the board of teaching; and 
110.23     (2) holds or held an out-of-state teaching license to teach 
110.24  the same content field and grade levels, where the scope of the 
110.25  out-of-state license is no more than one grade level less than a 
110.26  similar Minnesota license, but has not completed field-specific 
110.27  teaching methods, or student teaching or equivalent experience. 
110.28  The applicant may complete field-specific teaching methods and 
110.29  student teaching or equivalent experience by successfully 
110.30  participating in a one-year school district mentorship program 
110.31  consistent with board-adopted standards of effective practice 
110.32  and Minnesota graduation requirements. 
110.33     (e) The board of teaching must issue a temporary teaching 
110.34  license for a term of up to three years only in the content 
110.35  field or grade levels specified in the out-of-state license to 
110.36  an applicant who: 
111.1      (1) successfully completed all exams and human relations 
111.2   preparation components required by the board of teaching; and 
111.3      (2) holds or held an out-of-state teaching license where 
111.4   the out-of-state license is more limited in the content field or 
111.5   grade levels than a similar Minnesota license. 
111.6      (f) The board of teaching must not issue to an applicant 
111.7   more than three one-year temporary teaching licenses under this 
111.8   subdivision.  
111.9      (g) The board of teaching must not issue a license under 
111.10  this subdivision if the applicant has not attained the 
111.11  additional degrees, credentials, or licenses required in a 
111.12  particular licensure field.  
111.13     <b>EFFECTIVE DATE:</b>  This section is effective the day 
111.14  following final enactment. 
111.15     Sec. 6.  Minnesota Statutes 1998, section 123B.04, 
111.16  subdivision 2, is amended to read: 
111.17     Subd. 2.  [AGREEMENT.] (a) Either the school board or the 
111.18  school site decision-making team may request that the school 
111.19  board enter into an agreement with a school site decision-making 
111.20  team concerning the governance, management, or control of the 
111.21  school.  A school site decision-making team may include the 
111.22  school principal, teachers in the school or their designee, 
111.23  other employees in the school, parents of pupils in the school, 
111.24  representatives of pupils in the school, or other members in the 
111.25  community.  The school site decision-making team shall include 
111.26  the school principal or other person having general control and 
111.27  supervision of the school.  The site decision-making team must 
111.28  reflect the diversity of the education site.  No more than 
111.29  one-half of the members shall be employees of the district, 
111.30  unless an employee is the parent of a student enrolled in the 
111.31  school site, in which case the employee may elect to serve as a 
111.32  parent member of the site team. 
111.33     (b) School site decision-making agreements must delegate 
111.34  powers, duties, and broad management responsibilities to site 
111.35  teams and involve staff members, students as appropriate, and 
111.36  parents in decision making. 
112.1      (c) An agreement shall include a statement of powers, 
112.2   duties, responsibilities, and authority to be delegated to and 
112.3   within the site. 
112.4      (d) An agreement may include: 
112.5      (1) an achievement contract according to subdivision 4; 
112.6      (2) a mechanism to allow principals, or other persons 
112.7   having general control and supervision of the school, to make 
112.8   decisions regarding how financial and personnel resources are 
112.9   best allocated at the site and from whom goods or services are 
112.10  purchased; 
112.11     (3) a mechanism to implement parental involvement programs 
112.12  under section 124D.895 and to provide for effective parental 
112.13  communication and feedback on this involvement at the site 
112.14  level; 
112.15     (4) a provision that would allow the team to determine who 
112.16  is hired into licensed and nonlicensed positions; 
112.17     (5) a provision that would allow teachers to choose the 
112.18  principal or other person having general control; 
112.19     (6) an amount of revenue allocated to the site under 
112.20  subdivision 3; and 
112.21     (7) any other powers and duties determined appropriate by 
112.22  the board. 
112.23     The school board of the district remains the legal employer 
112.24  under clauses (4) and (5). 
112.25     (e) Any powers or duties not delegated to the school site 
112.26  management team in the school site management agreement shall 
112.27  remain with the school board. 
112.28     (f) Approved agreements shall be filed with the 
112.29  commissioner.  If a school board denies a request to enter into 
112.30  a school site management agreement, it shall provide a copy of 
112.31  the request and the reasons for its denial to the commissioner.  
112.32     <b>EFFECTIVE DATE:</b>  This section is effective July 1, 2000. 
112.33     Sec. 7.  [123B.055] [CONTRACTS FOR COMPUTERS OR RELATED 
112.34  EQUIPMENT OR SERVICE.] 
112.35     (a) The school board of a school district may not enter 
112.36  into a contract or permit a school within the district to enter 
113.1   into a contract for the use of a computer or related equipment 
113.2   or service that requires advertising to be disseminated to 
113.3   students unless the school board: 
113.4      (1) enters into the contract at a public hearing of the 
113.5   school board; 
113.6      (2) makes a finding that the offered electronic product or 
113.7   service is an integral component of students' education; 
113.8      (3) provides written notice to students' parents that 
113.9   advertising will be used in the classroom, media center, 
113.10  computer lab, or other areas of learning, whether data will be 
113.11  collected on students, and how that data will be used; 
113.12     (4) as part of normal, ongoing district communications with 
113.13  parents, allows parents to request in writing that (i) their 
113.14  student not be exposed to the program that contains the 
113.15  advertising for the current school year, or that (ii) any or all 
113.16  data relating to the student that is collected as a result of 
113.17  this contract is not disclosed; and 
113.18     (5) honors parents' request, under clause (4), that their 
113.19  student not be exposed to the advertising program or that data 
113.20  relating to the student is not disclosed and allows parents to 
113.21  withdraw their request at any time. 
113.22     (b) Advertising under this section does not include: 
113.23     (1) the identification of the source of the document or 
113.24  information; and 
113.25     (2) advertising that is generally available to the public 
113.26  viewing a particular site or application and is not directed 
113.27  specifically to students benefiting from a contract under 
113.28  paragraph (a). 
113.29     <b>EFFECTIVE DATE:</b>  This section is effective the day 
113.30  following final enactment. 
113.31     Sec. 8.  Minnesota Statutes 1998, section 123B.143, 
113.32  subdivision 1, is amended to read: 
113.33     Subdivision 1.  [CONTRACT; DUTIES.] All districts 
113.34  maintaining a classified secondary school must employ a 
113.35  superintendent who shall be an ex officio nonvoting member of 
113.36  the school board.  The authority for selection and employment of 
114.1   a superintendent must be vested in the board in all cases.  An 
114.2   individual employed by a board as a superintendent shall have an 
114.3   initial employment contract for a period of time no longer than 
114.4   three years from the date of employment.  Any subsequent 
114.5   employment contract must not exceed a period of three years.  A 
114.6   board, at its discretion, may or may not renew an employment 
114.7   contract.  A board must not, by action or inaction, extend the 
114.8   duration of an existing employment contract.  Beginning 365 days 
114.9   prior to the expiration date of an existing employment contract, 
114.10  a board may negotiate and enter into a subsequent employment 
114.11  contract to take effect upon the expiration of the existing 
114.12  contract.  A subsequent contract must be contingent upon the 
114.13  employee completing the terms of an existing contract.  If a 
114.14  contract between a board and a superintendent is terminated 
114.15  prior to the date specified in the contract, the board may not 
114.16  enter into another superintendent contract with that same 
114.17  individual that has a term that extends beyond the date 
114.18  specified in the terminated contract.  A board may terminate a 
114.19  superintendent during the term of an employment contract for any 
114.20  of the grounds specified in section 122A.40, subdivision 9 or 13.
114.21  A superintendent shall not rely upon an employment contract with 
114.22  a board to assert any other continuing contract rights in the 
114.23  position of superintendent under section 122A.40.  
114.24  Notwithstanding the provisions of sections 122A.40, subdivision 
114.25  10 or 11, 123A.32, 123A.75, or any other law to the contrary, no 
114.26  individual shall have a right to employment as a superintendent 
114.27  based on order of employment in any district.  If two or more 
114.28  districts enter into an agreement for the purchase or sharing of 
114.29  the services of a superintendent, the contracting districts have 
114.30  the absolute right to select one of the individuals employed to 
114.31  serve as superintendent in one of the contracting districts and 
114.32  no individual has a right to employment as the superintendent to 
114.33  provide all or part of the services based on order of employment 
114.34  in a contracting district. The superintendent of a district 
114.35  shall perform the following:  
114.36     (1) visit and supervise the schools in the district, report 
115.1   and make recommendations about their condition when advisable or 
115.2   on request by the board; 
115.3      (2) recommend to the board employment and dismissal of 
115.4   teachers; 
115.5      (3) superintend school grading practices and examinations 
115.6   for promotions; 
115.7      (4) make reports required by the commissioner; 
115.8      (5) by January 10, submit an annual report to the 
115.9   commissioner in a manner prescribed by the commissioner, in 
115.10  consultation with school districts, identifying the expenditures 
115.11  that the district requires to ensure an 80 percent and a 90 
115.12  percent student passage rate on the basic standards test taken 
115.13  in the eighth grade, identifying the amount of expenditures that 
115.14  the district requires to ensure a 99 percent student passage 
115.15  rate on the basic standards test by 12th grade, and how much the 
115.16  district is cross-subsidizing programs with special education, 
115.17  compensatory basic skills, and general education revenue; and 
115.18     (6) perform other duties prescribed by the board. 
115.19     Sec. 9.  Minnesota Statutes 1998, section 123B.77, 
115.20  subdivision 3, is amended to read: 
115.21     Subd. 3.  [STATEMENT FOR COMPARISON AND CORRECTION.] By 
115.22  November 30 of the calendar year of the submission of the 
115.23  unaudited financial data, the district must provide to the 
115.24  commissioner audited financial data for the preceding fiscal 
115.25  year.  The audit must be conducted in compliance with generally 
115.26  accepted governmental auditing standards, the federal Single 
115.27  Audit Act, and the Minnesota legal compliance guide issued by 
115.28  the office of the state auditor.  An audited financial statement 
115.29  prepared in a form which will allow comparison with and 
115.30  correction of material differences in the unaudited financial 
115.31  data shall be submitted to the commissioner and the state 
115.32  auditor by December 31.  The audited financial statement must 
115.33  also provide a statement of assurance pertaining to uniform 
115.34  financial accounting and reporting standards compliance and a 
115.35  copy of the management letter submitted to the district by the 
115.36  school district's auditor. 
116.1      Sec. 10.  Minnesota Statutes 1998, section 123B.79, 
116.2   subdivision 7, is amended to read: 
116.3      Subd. 7.  [ACCOUNT TRANSFER FOR CERTAIN SEVERANCE PAY.] A 
116.4   district may maintain in a designated reserve for certain 
116.5   severance pay account not more than 50 percent of the amount 
116.6   necessary to meet the obligations for the portion of severance 
116.7   pay that constitutes compensation for accumulated sick leave to 
116.8   be used for payment of premiums for group insurance provided for 
116.9   former employees by the district.  The amount necessary must be 
116.10  calculated according to standards established by the advisory 
116.11  council on uniform financial accounting and reporting 
116.12  standards department. 
116.13     Sec. 11.  Minnesota Statutes 1999 Supplement, section 
116.14  123B.83, subdivision 4, is amended to read: 
116.15     Subd. 4.  [SPECIAL OPERATING PLAN.] (1) If the net negative 
116.16  unappropriated operating unreserved general fund balance as 
116.17  defined in section 126C.01, subdivision 11, calculated in 
116.18  accordance with the uniform financial accounting and reporting 
116.19  standards for Minnesota school districts, as of June 30 each 
116.20  year, is more than 2-1/2 percent of the year's expenditure 
116.21  amount, the district must, prior to January 31 of the next 
116.22  fiscal year, submit a special operating plan to reduce the 
116.23  district's deficit expenditures to the commissioner for 
116.24  approval.  The commissioner may also require the district to 
116.25  provide evidence that the district meets and will continue to 
116.26  meet all high school graduation requirements. 
116.27     Notwithstanding any other law to the contrary, a district 
116.28  submitting a special operating plan to the commissioner under 
116.29  this clause which is disapproved by the commissioner must not 
116.30  receive any aid pursuant to chapters 120B, 122A, 123A, 123B, 
116.31  124D, 125A, 126C, and 127A until a special operating plan of the 
116.32  district is so approved. 
116.33     (2) A district must receive aids pending the approval of 
116.34  its special operating plan under clause (1).  A district which 
116.35  complies with its approved operating plan must receive aids as 
116.36  long as the district continues to comply with the approved 
117.1   operating plan. 
117.2      Sec. 12.  Minnesota Statutes 1998, section 123B.88, 
117.3   subdivision 3, is amended to read: 
117.4      Subd. 3.  [TRANSPORTATION SERVICES CONTRACTS.] The board 
117.5   may contract for the furnishing of authorized transportation 
117.6   under rules established by the commissioner section 123B.52, and 
117.7   may purchase gasoline and furnish same to a contract carrier for 
117.8   use in the performance of a contract with the school district 
117.9   for transportation of school children to and from school. 
117.10     Sec. 13.  Minnesota Statutes 1998, section 123B.90, 
117.11  subdivision 1, is amended to read: 
117.12     Subdivision 1.  [SCHOOL BUS SAFETY WEEK.] The third week of 
117.13  school is designated as school bus safety week. 
117.14     A school board may designate one day of school bus safety 
117.15  week as school bus driver day. 
117.16     <b>EFFECTIVE DATE:</b>  This section is effective the day 
117.17  following final enactment. 
117.18     Sec. 14.  Minnesota Statutes 1999 Supplement, section 
117.19  123B.90, subdivision 2, is amended to read: 
117.20     Subd. 2.  [STUDENT TRAINING.] (a) Each district must 
117.21  provide public school pupils enrolled in grades kindergarten 
117.22  through 10 with age-appropriate school bus safety training.  The 
117.23  training must be results-oriented and shall consist of both 
117.24  classroom instruction and practical training using a school 
117.25  bus.  Upon completing the training, a student shall be able to 
117.26  demonstrate knowledge and understanding of at least the 
117.27  following competencies and concepts: 
117.28     (1) transportation by school bus is a privilege and not a 
117.29  right; 
117.30     (2) district policies for student conduct and school bus 
117.31  safety; 
117.32     (3) appropriate conduct while on the school bus; 
117.33     (4) the danger zones surrounding a school bus; 
117.34     (5) procedures for safely boarding and leaving a school 
117.35  bus; 
117.36     (6) procedures for safe street or road crossing; 
118.1      (7) school bus evacuation and other emergency procedures; 
118.2   and 
118.3      (8) appropriate training on the use of lap belts or lap and 
118.4   shoulder belts, if the district uses buses equipped with lap 
118.5   belts or lap and shoulder belts. 
118.6      (b) Each nonpublic school located within the district must 
118.7   provide all nonpublic school pupils enrolled in grades 
118.8   kindergarten through 10 who are transported by school bus at 
118.9   public expense and attend school within the district's 
118.10  boundaries with training as required in paragraph (a).  The 
118.11  school district shall make a bus available for the practical 
118.12  training if the district transports the nonpublic students.  
118.13  Each nonpublic school shall provide the instruction. 
118.14     (c) All students enrolled in grades kindergarten through 3 
118.15  who are transported by school bus and are enrolled during the 
118.16  first or second week of school must demonstrate achievement of 
118.17  the school bus safety training competencies by the end of the 
118.18  third week of school.  All students enrolled in grades 4 through 
118.19  10 who are transported by school bus and are enrolled during the 
118.20  first or second week of school must demonstrate achievement of 
118.21  the competencies by the end of the sixth week of school.  
118.22  Students enrolled in grades kindergarten through 10 who enroll 
118.23  in a school after the second week of school and are transported 
118.24  by school bus shall undergo school bus safety training and 
118.25  demonstrate achievement of the school bus safety competencies 
118.26  within four weeks of the first day of attendance.  The pupil 
118.27  school transportation safety director in each district must 
118.28  certify to the commissioner annually that all students 
118.29  transported by school bus within the district have 
118.30  satisfactorily demonstrated knowledge and understanding of the 
118.31  school bus safety competencies according to this section or 
118.32  provide an explanation for a student's failure to demonstrate 
118.33  the competencies.  The principal or other chief administrator of 
118.34  each nonpublic school must certify annually to the public school 
118.35  transportation safety director of the district in which the 
118.36  school is located that all of the school's students transported 
119.1   by school bus at public expense have received training.  A 
119.2   district may deny transportation to a student who fails to 
119.3   demonstrate the competencies, unless the student is unable to 
119.4   achieve the competencies due to a disability, or to a student 
119.5   who attends a nonpublic school that fails to provide training as 
119.6   required by this subdivision. 
119.7      (d) A district and a nonpublic school with students 
119.8   transported by school bus at public expense must, to the extent 
119.9   possible, provide kindergarten pupils with bus safety training 
119.10  before the first day of school. 
119.11     (e) A district and a nonpublic school with students 
119.12  transported by school bus at public expense must also provide 
119.13  student safety education for bicycling and pedestrian safety, 
119.14  for students enrolled in grades kindergarten through 5. 
119.15     (f) A district and a nonpublic school with students 
119.16  transported by school bus at public expense must make reasonable 
119.17  accommodations for the school bus, bicycle, and pedestrian 
119.18  safety training of pupils known to speak English as a second 
119.19  language and pupils with disabilities. 
119.20     Sec. 15.  Minnesota Statutes 1999 Supplement, section 
119.21  123B.91, subdivision 1, is amended to read: 
119.22     Subdivision 1.  [COMPREHENSIVE POLICY.] (a) Each district 
119.23  must shall develop and implement a comprehensive, written policy 
119.24  governing pupil transportation safety, including transportation 
119.25  of nonpublic school students, when applicable.  The 
119.26  policy shall, at minimum, must contain: 
119.27     (1) provisions for appropriate student bus safety training 
119.28  under section 123B.90; 
119.29     (2) rules governing student conduct on school buses and in 
119.30  school bus loading and unloading areas; 
119.31     (3) a statement of parent or guardian responsibilities 
119.32  relating to school bus safety; 
119.33     (4) provisions for notifying students and parents or 
119.34  guardians of their responsibilities and the rules, including the 
119.35  district's seat belt policy, if applicable; 
119.36     (5) an intradistrict system for reporting school bus 
120.1   accidents or misconduct and a system for dealing with local law 
120.2   enforcement officials in cases of criminal conduct on a school 
120.3   bus; 
120.4      (6) a discipline policy to address violations of school bus 
120.5   safety rules, including procedures for revoking a student's bus 
120.6   riding privileges in cases of serious or repeated misconduct; 
120.7      (7) a system for integrating school bus misconduct records 
120.8   with other discipline records; 
120.9      (8) a statement of bus driver duties; 
120.10     (9) planned expenditures for safety activities under 
120.11  section 123B.89 and, where applicable, provisions governing bus 
120.12  monitor qualifications, training, and duties; 
120.13     (10) rules governing the use and maintenance of type III 
120.14  vehicles, drivers of type III vehicles, qualifications to drive 
120.15  a type III vehicle, qualifications for a type III vehicle, and 
120.16  the circumstances under which a student may be transported in a 
120.17  type III vehicle; 
120.18     (11) operating rules and procedures; 
120.19     (12) provisions for annual bus driver in-service training 
120.20  and evaluation; 
120.21     (13) emergency procedures; 
120.22     (14) a system for maintaining and inspecting equipment; 
120.23     (15) requirements of the school district, if any, that 
120.24  exceed state law minimum requirements for school bus operations; 
120.25  and 
120.26     (16) requirements for basic first aid training, which must 
120.27  include the Heimlich maneuver and procedures for dealing with 
120.28  obstructed airways, shock, bleeding, and seizures. 
120.29     (b) Districts are encouraged to use the model policy 
120.30  developed by the Minnesota school boards association, the 
120.31  department of public safety, and the department of children, 
120.32  families, and learning, as well as the current edition of the 
120.33  "National Standards for School Buses and Operations 
120.34  Transportation," published by the National Safety Council, in 
120.35  developing safety policies.  Each district shall review its 
120.36  policy annually and make appropriate amendments, which must be 
121.1   submitted to the school bus safety advisory committee within one 
121.2   month of approval by the school board to ensure that it conforms 
121.3   to law. 
121.4      <b>EFFECTIVE DATE:</b>  This section is effective the day 
121.5   following final enactment. 
121.6      Sec. 16.  Minnesota Statutes 1998, section 124D.03, 
121.7   subdivision 1, is amended to read: 
121.8      Subdivision 1.  [ESTABLISHMENT.] (a) An enrollment options 
121.9   program is established to enable any pupil to attend a school or 
121.10  program in a district in which the pupil does not reside, 
121.11  subject to the limitations in this section.  
121.12     (b) A district may refuse to allow a pupil who is expelled 
121.13  under section 121A.45 to enroll during the term of the expulsion 
121.14  if the student was expelled for: 
121.15     (1) possessing a dangerous weapon, as defined by United 
121.16  States Code, title 18, section 930, paragraph (g)(2), at school 
121.17  or a school function; 
121.18     (2) possessing or using an illegal drug at school or a 
121.19  school function; 
121.20     (3) selling or soliciting the sale of a controlled 
121.21  substance while at school or a school function; or 
121.22     (4) committing a third-degree assault as described in 
121.23  section 609.223, subdivision 1. 
121.24     <b>EFFECTIVE DATE:</b>  This section is effective for the 
121.25  2000-2001 school year and later. 
121.26     Sec. 17.  Minnesota Statutes 1998, section 124D.081, 
121.27  subdivision 6, is amended to read: 
121.28     Subd. 6.  [PREPAREDNESS REVENUE.] (a) A qualifying school 
121.29  district is eligible for first-grade preparedness revenue equal 
121.30  to the basic formula allowance for that year times the number of 
121.31  children five years of age or older enrolled in a kindergarten 
121.32  program at the site on October 1 of the previous year times .53. 
121.33     (b) This revenue must supplement and not replace 
121.34  compensatory revenue that the district uses for the same or 
121.35  similar purposes under chapters 120B, 123A, 123B, 124D, 126C, 
121.36  and 127A. 
122.1      (c) A pupil enrolled in the first grade preparedness 
122.2   program at a qualifying school site is eligible for 
122.3   transportation under section 123B.88, subdivision 1.  
122.4      (d) First grade preparedness revenue paid to a charter 
122.5   school for which a school district is providing transportation 
122.6   according to section 124D.10, subdivision 16, shall be decreased 
122.7   by an amount equal to the product of $170 the formula allowance 
122.8   according to section 126C.10, subdivision 2, times .0485 times 
122.9   the pupil units calculated according to paragraph (a).  This 
122.10  amount shall be paid to the school district for transportation 
122.11  costs.  
122.12     Sec. 18.  Minnesota Statutes 1999 Supplement, section 
122.13  124D.10, subdivision 3, is amended to read: 
122.14     Subd. 3.  [SPONSOR.] A school board,; intermediate school 
122.15  district school board,; education districts district organized 
122.16  under sections 123A.15 to 123A.19,; charitable organization 
122.17  under section 501(c)(3) of the Internal Revenue Code of 1986 
122.18  that is a member of the Minnesota council of nonprofits or the 
122.19  Minnesota council on foundations, registered with the attorney 
122.20  general's office, and reports an end-of-year fund balance of at 
122.21  least $2,000,000; Minnesota private college, that grants two- or 
122.22  four-year degrees and is registered with the higher education 
122.23  services office under chapter 136A; community college, state 
122.24  university, or technical college, governed by the board of 
122.25  trustees of the Minnesota state colleges and universities; or 
122.26  the University of Minnesota may sponsor one or more charter 
122.27  schools. 
122.28     <b>EFFECTIVE DATE:</b>  This section is effective the day 
122.29  following final enactment. 
122.30     Sec. 19.  Minnesota Statutes 1999 Supplement, section 
122.31  124D.10, subdivision 8, is amended to read: 
122.32     Subd. 8.  [STATE AND LOCAL REQUIREMENTS.] (a) A charter 
122.33  school shall meet all applicable state and local health and 
122.34  safety requirements. 
122.35     (b) A school sponsored by a school board may be located in 
122.36  any district, unless the school board of the district of the 
123.1   proposed location disapproves by written resolution.  If such a 
123.2   board denies a request to locate within its boundaries a charter 
123.3   school sponsored by another school board, the sponsoring school 
123.4   board may appeal to the commissioner.  If the commissioner 
123.5   authorizes the school, the commissioner must sponsor the school. 
123.6      (c) A charter school must be nonsectarian in its programs, 
123.7   admission policies, employment practices, and all other 
123.8   operations.  A sponsor may not authorize a charter school or 
123.9   program that is affiliated with a nonpublic sectarian school or 
123.10  a religious institution. 
123.11     (d) Charter schools must not be used as a method of 
123.12  providing education or generating revenue for students who are 
123.13  being home-schooled. 
123.14     (e) The primary focus of a charter school must be to 
123.15  provide a comprehensive program of instruction for at least one 
123.16  grade or age group from five through 18 years of age.  
123.17  Instruction may be provided to people younger than five years 
123.18  and older than 18 years of age. 
123.19     (f) A charter school may not charge tuition. 
123.20     (g) A charter school is subject to and must comply with 
123.21  chapter 363 and section 121A.04. 
123.22     (h) A charter school is subject to and must comply with The 
123.23  Pupil Fair Dismissal Act, sections 121A.40 to 121A.56, and the 
123.24  Minnesota Public School Fee law, sections 123B.34 to 123B.39. 
123.25     (i) A charter school is subject to the same financial 
123.26  audits, audit procedures, and audit requirements as a district.  
123.27  The audit must be consistent comply with the requirements of 
123.28  sections 123B.75 to 123B.83, except to the extent deviations are 
123.29  necessary because of the program at the school.  The department 
123.30  of children, families, and learning, state auditor, or 
123.31  legislative auditor may conduct financial, program, or 
123.32  compliance audits.  A charter school determined to be in 
123.33  statutory operating debt under sections 123B.81 to 123B.83 must 
123.34  submit a plan under section 123B.81, subdivision 4. 
123.35     (j) A charter school is a district for the purposes of tort 
123.36  liability under chapter 466. 
124.1      <b>EFFECTIVE DATE:</b>  This section is effective the day 
124.2   following final enactment. 
124.3      Sec. 20.  Minnesota Statutes 1998, section 124D.10, 
124.4   subdivision 9, is amended to read: 
124.5      Subd. 9.  [ADMISSION REQUIREMENTS.] A charter school may 
124.6   limit admission to: 
124.7      (1) pupils within an age group or grade level; 
124.8      (2) people who are eligible to participate in the 
124.9   graduation incentives program under section 124D.68; or 
124.10     (3) residents of a specific geographic area where the 
124.11  percentage of the population of non-Caucasian people of that 
124.12  area is greater than the percentage of the non-Caucasian 
124.13  population in the congressional district in which the geographic 
124.14  area is located, and as long as the school reflects the racial 
124.15  and ethnic diversity of the specific area. 
124.16     A charter school shall enroll an eligible pupil who submits 
124.17  a timely application, unless the number of applications exceeds 
124.18  the capacity of a program, class, grade level, or building.  In 
124.19  this case, pupils must be accepted by lot.  If a charter school 
124.20  is the only school located in a town serving pupils within a 
124.21  particular grade level, then pupils that are residents of the 
124.22  town must be given preference for enrollment before accepting 
124.23  pupils by lot.  If a pupil lives within two miles of a charter 
124.24  school and the next closest public school is more than five 
124.25  miles away, the charter school must give those pupils preference 
124.26  for enrollment before accepting other pupils by lot. 
124.27     A charter school shall give preference for enrollment to a 
124.28  sibling of an enrolled pupil and to a foster child of that 
124.29  pupil's parents before accepting other pupils by lot. 
124.30     A charter school may not limit admission to pupils on the 
124.31  basis of intellectual ability, measures of achievement or 
124.32  aptitude, or athletic ability. 
124.33     Sec. 21.  Minnesota Statutes 1999 Supplement, section 
124.34  124D.10, subdivision 11, is amended to read: 
124.35     Subd. 11.  [EMPLOYMENT AND OTHER OPERATING MATTERS.] A 
124.36  charter school must employ or contract with necessary teachers, 
125.1   as defined by section 122A.15, subdivision 1, who hold valid 
125.2   licenses to perform the particular service for which they are 
125.3   employed in the school.  The charter school's state aid may be 
125.4   reduced under section 127A.42 if the school employs a teacher 
125.5   who is not appropriately licensed or approved by the board of 
125.6   teaching.  The school may employ necessary employees who are not 
125.7   required to hold teaching licenses to perform duties other than 
125.8   teaching and may contract for other services.  The school may 
125.9   discharge teachers and nonlicensed employees.  A person, without 
125.10  holding a valid administrator's license, may perform 
125.11  administrative, supervisory, or instructional leadership duties. 
125.12     The board of directors also shall decide matters related to 
125.13  the operation of the school, including budgeting, curriculum and 
125.14  operating procedures.  
125.15     <b>EFFECTIVE DATE:</b>  This section is effective the day 
125.16  following final enactment. 
125.17     Sec. 22.  Minnesota Statutes 1999 Supplement, section 
125.18  124D.10, subdivision 15, is amended to read: 
125.19     Subd. 15.  [REVIEW AND COMMENT.] The department must review 
125.20  and comment on the evaluation, by the chartering school district 
125.21  sponsor, of the performance of a charter school before the 
125.22  charter school's contract is renewed.  A sponsor shall monitor 
125.23  and evaluate the fiscal and student performance of the school, 
125.24  and may for this purpose annually assess the school up to $10 
125.25  per student up to a maximum of $3,500.  The information from for 
125.26  the review and comment shall be reported by the sponsor to the 
125.27  commissioner of children, families, and learning in a timely 
125.28  manner.  Periodically, the commissioner shall report trends or 
125.29  suggestions based on the evaluation of charter school contracts 
125.30  to the education committees of the state legislature.  
125.31     <b>EFFECTIVE DATE:</b>  This section is effective the day 
125.32  following final enactment. 
125.33     Sec. 23.  Minnesota Statutes 1999 Supplement, section 
125.34  124D.10, subdivision 23, is amended to read: 
125.35     Subd. 23.  [CAUSES FOR NONRENEWAL OR TERMINATION OF CHARTER 
125.36  SCHOOL CONTRACT.] (a) The duration of the contract with a 
126.1   sponsor must be for the term contained in the contract according 
126.2   to subdivision 6.  The sponsor may or may not renew a contract 
126.3   at the end of the term for any ground listed in paragraph (b).  
126.4   A sponsor may unilaterally terminate a contract during the term 
126.5   of the contract for any ground listed in paragraph (b).  At 
126.6   least 60 days before not renewing or terminating a contract, the 
126.7   sponsor shall notify the board of directors of the charter 
126.8   school of the proposed action in writing.  The notice shall 
126.9   state the grounds for the proposed action in reasonable detail 
126.10  and that the charter school's board of directors may request in 
126.11  writing an informal hearing before the sponsor within 14 days of 
126.12  receiving notice of nonrenewal or termination of the contract.  
126.13  Failure by the board of directors to make a written request for 
126.14  a hearing within the 14-day period shall be treated as 
126.15  acquiescence to the proposed action.  Upon receiving a timely 
126.16  written request for a hearing, the sponsor shall give reasonable 
126.17  notice to the charter school's board of directors of the hearing 
126.18  date.  The sponsor shall conduct an informal hearing before 
126.19  taking final action.  The sponsor shall take final action to 
126.20  renew or not renew a contract by the last day of classes in the 
126.21  school year.  If the sponsor is a local board, the school's 
126.22  board of directors may appeal the sponsor's decision to the 
126.23  commissioner. 
126.24     (b) A contract may be terminated or not renewed upon any of 
126.25  the following grounds: 
126.26     (1) failure to meet the requirements for pupil performance 
126.27  contained in the contract; 
126.28     (2) failure to meet generally accepted standards of fiscal 
126.29  management; 
126.30     (3) violations of law; or 
126.31     (4) other good cause shown. 
126.32     If a contract is terminated or not renewed, the school must 
126.33  be dissolved according to the applicable provisions of chapter 
126.34  308A or 317A, except when the commissioner approves the decision 
126.35  of a different eligible sponsor to authorize the charter school. 
126.36     (c) The commissioner, after providing reasonable notice to 
127.1   the board of directors of a charter school and the existing 
127.2   sponsor, and after providing an opportunity for a public 
127.3   hearing, may terminate the existing sponsorial relationship if 
127.4   the charter school has a history of: 
127.5      (1) financial mismanagement; or 
127.6      (2) repeated violations of the law. 
127.7      <b>EFFECTIVE DATE:</b>  This section is effective the day 
127.8   following final enactment. 
127.9      Sec. 24.  Minnesota Statutes 1999 Supplement, section 
127.10  124D.11, subdivision 6, is amended to read: 
127.11     Subd. 6.  [OTHER AID, GRANTS, REVENUE.] (a) A charter 
127.12  school is eligible to receive other aids, grants, and revenue 
127.13  according to chapters 120A to 129C, as though it were a district.
127.14     (b) Notwithstanding paragraph (a), a charter school may not 
127.15  receive aid, a grant, or revenue if a levy is required to obtain 
127.16  the money, except as otherwise provided in this section.  
127.17     (c) Federal aid received by the state must be paid to the 
127.18  school, if it qualifies for the aid as though it were a school 
127.19  district. 
127.20     (d) A charter school may receive money from any source for 
127.21  capital facilities needs.  In the year-end report to the 
127.22  commissioner of children, families, and learning, the charter 
127.23  school shall report the total amount of funds received from 
127.24  grants and other outside sources. 
127.25     (e) Notwithstanding paragraph (a) or (b), a charter school 
127.26  is eligible may apply for a grant to receive the aid portion of 
127.27  integration revenue under section 124D.86, subdivision 3, for 
127.28  enrolled students who are residents of a district that is 
127.29  eligible for integration revenue if the enrollment of the pupil 
127.30  in the charter school contributes to desegregation or 
127.31  integration purposes.  The commissioner shall determine grant 
127.32  recipients and may adopt application guidelines.  The grants 
127.33  must be competitively determined and must demonstrate that 
127.34  enrolling pupils in the charter school contributes to 
127.35  desegregation or integration purposes as determined by the 
127.36  commissioner.  If the charter school has elected not to provide 
128.1   transportation under section 124D.10, subdivision 16, the aid 
128.2   shall be reduced by the amount per pupil unit specified for the 
128.3   district where the charter school is located under section 
128.4   123B.92, subdivision 8. 
128.5      <b>EFFECTIVE DATE:</b>  This section is effective the day 
128.6   following final enactment. 
128.7      Sec. 25.  [125B.22] [INTERNET ACCESS FOR STUDENTS.] 
128.8      (a) Recognizing the difference between school libraries, 
128.9   school computer labs, and school media centers, which serve 
128.10  unique educational purposes, and public libraries, which are 
128.11  designed for public inquiry, all computers at a school site with 
128.12  access to the Internet available for student use must be 
128.13  equipped to restrict, including by use of available software 
128.14  filtering technology or other effective methods, all student 
128.15  access to material that is reasonably believed to be obscene or 
128.16  child pornography or material harmful to minors under federal or 
128.17  state law. 
128.18     (b) A school site is not required to purchase filtering 
128.19  technology if the school site would incur more than incidental 
128.20  expense in making the purchase. 
128.21     (c) A school district receiving technology revenue under 
128.22  section 125B.25 must prohibit, including through use of 
128.23  available software filtering technology or other effective 
128.24  methods, adult access to material that under federal or state 
128.25  law is reasonably believed to be obscene or child pornography. 
128.26     (d) A school district, its agents or employees, are immune 
128.27  from liability for failure to comply with this section if they 
128.28  have made a good faith effort to comply with the requirements of 
128.29  this section. 
128.30     (e) "School site" means an education site as defined in 
128.31  section 123B.04, subdivision 1, or charter school under section 
128.32  124D.10. 
128.33     Sec. 26.  Minnesota Statutes 1999 Supplement, section 
128.34  127A.05, subdivision 6, is amended to read: 
128.35     Subd. 6.  [SURVEY OF DISTRICTS.] The commissioner of 
128.36  children, families, and learning shall survey the state's school 
129.1   districts and teacher preparation programs and report to the 
129.2   education committees of the legislature by January 15 of each 
129.3   odd-numbered year on the status of teacher early retirement 
129.4   patterns, the teacher shortage, and the substitute teacher 
129.5   shortage, including patterns and shortages in subject areas and 
129.6   regions of the state.  The report must also include how 
129.7   districts are making progress in hiring teachers and substitutes 
129.8   in the areas of shortage and a five-year projection of teacher 
129.9   demand for each district. 
129.10     Sec. 27.  [134.77] [INTERNET ACCESS; LIBRARIES.] 
129.11     (a) Recognizing the difference between public libraries, 
129.12  which are designed for public inquiry, and school libraries, 
129.13  school computer labs, and school media centers, which serve 
129.14  unique educational purposes, all public library computers with 
129.15  access to the Internet available for use by children under the 
129.16  age of 17 must be equipped to restrict, including by use of 
129.17  available software filtering technology or other effective 
129.18  methods, all access by children to material that is reasonably 
129.19  believed to be obscene or child pornography or material harmful 
129.20  to minors under federal or state law. 
129.21     (b) A public library is not required to purchase filtering 
129.22  technology if the public library would incur more than 
129.23  incidental expense in making the purchase. 
129.24     (c) A public library that receives state money must 
129.25  prohibit, including through the use of available software 
129.26  filtering technology or other effective methods, adult access to 
129.27  material that under federal or state law is reasonably believed 
129.28  to be obscene or child pornography.  A public library may remove 
129.29  a person from the library if the person gains access or attempts 
129.30  to gain access to materials prohibited under this section by 
129.31  intentionally bypassing the filtering technology or other method 
129.32  used by the library. 
129.33     (d) A public library, its agents or employees, are immune 
129.34  from liability for failure to comply with this section if they 
129.35  have made a good faith effort to comply with the requirements of 
129.36  this section. 
130.1      (e) This section does not apply to the libraries of 
130.2   post-secondary institutions. 
130.3      Sec. 28.  Minnesota Statutes 1998, section 169.447, is 
130.4   amended by adding a subdivision to read: 
130.5      Subd. 2a.  [PASSENGER LAP AND SHOULDER BELTS.] (a) In 
130.6   addition to the requirements in section 169.4501, subdivision 1, 
130.7   a school bus may be equipped with an approved lap belt or an 
130.8   approved lap and shoulder belt installed for each 
130.9   passenger-seating position on the bus.  The design and 
130.10  installation of lap belts and lap and shoulder belts required 
130.11  under this paragraph must meet the standards of the commissioner 
130.12  established under paragraph (b). 
130.13     (b) The commissioner shall consider all concerns necessary 
130.14  to properly integrate lap belts or lap and shoulder belts into 
130.15  the current compartmentalization safety system and prescribe 
130.16  standards for the design and installation of lap and shoulder 
130.17  belts required under paragraph (a).  The standards are not 
130.18  subject to chapter 14 and are specifically not subject to 
130.19  section 14.386. 
130.20     (c) This subdivision does not apply to specially equipped 
130.21  school buses under section 169.4504. 
130.22     (d) A passenger on a school bus equipped with lap belts or 
130.23  lap and shoulder belts must use these lap belts or lap and 
130.24  shoulder belts unless the passenger, or if the passenger is a 
130.25  minor, the passenger's parent or guardian, has notified the 
130.26  school district in writing that the passenger does not intend to 
130.27  wear the lap belt or lap and shoulder belt. 
130.28     (e) In an action for personal injury or wrongful death 
130.29  against a school district, a school bus operator under contract 
130.30  with a school district, or any agent or employee of a school 
130.31  district or operator, or against a volunteer, no such person or 
130.32  entity shall be held liable solely because the injured party was 
130.33  not wearing a safety belt; provided, however, that nothing 
130.34  contained herein shall be construed to grant immunity from 
130.35  liability for failure to: 
130.36     (1) maintain in operating order any equipment required by 
131.1   statute, rule, or school district policy; or 
131.2      (2) comply with an applicable statute, rule, or school 
131.3   district policy. 
131.4      (f) In an action for personal injury or wrongful death, a 
131.5   school district, a school bus contract operator, any agent or 
131.6   employee of a school district or operator, or a volunteer is not 
131.7   liable for failing to assist any child with the adjustment, 
131.8   fastening, unfastening, or other use of the lap belt or lap and 
131.9   shoulder belt. 
131.10     <b>EFFECTIVE DATE:</b>  This section is effective the day 
131.11  following final enactment. 
131.12     Sec. 29.  Minnesota Statutes 1998, section 169.448, 
131.13  subdivision 3, is amended to read: 
131.14     Subd. 3.  [HEAD START VEHICLE.] Notwithstanding subdivision 
131.15  1, a vehicle used to transport passengers students under Public 
131.16  Law Number 99-425, the Head Start Act, may be equipped as a 
131.17  school bus or Head Start bus. 
131.18     <b>EFFECTIVE DATE:</b>  This section is effective the day 
131.19  following final enactment. 
131.20     Sec. 30.  Minnesota Statutes 1999 Supplement, section 
131.21  169.974, subdivision 2, is amended to read: 
131.22     Subd. 2.  [LICENSE ENDORSEMENT AND PERMIT REQUIREMENTS.] 
131.23  (a) No person shall operate a motorcycle on any street or 
131.24  highway without having a valid standard driver's license with a 
131.25  two-wheeled vehicle endorsement as provided by law.  No such The 
131.26  commissioner of public safety shall issue a two-wheeled vehicle 
131.27  endorsement shall be issued unless the person applying 
131.28  therefor only if the applicant (1) has in possession a valid 
131.29  two-wheeled vehicle instruction permit as provided herein in 
131.30  paragraph (b), (2) has passed a written examination and road 
131.31  test administered by the department of public safety for such 
131.32  the endorsement, and, (3) in the case of applicants under 18 
131.33  years of age, shall present presents a certificate or other 
131.34  evidence of having successfully completed an approved 
131.35  two-wheeled vehicle driver's safety course in this or another 
131.36  state, in accordance with rules promulgated adopted by the 
132.1   commissioner of children, families, and learning for courses 
132.2   offered through the public schools, or rules promulgated by the 
132.3   commissioner of public safety for courses offered by a public, 
132.4   private, or commercial school or institute.  The commissioner of 
132.5   public safety may waive the road test for any applicant on 
132.6   determining that the applicant possesses a valid license to 
132.7   operate a two-wheeled vehicle issued by a jurisdiction that 
132.8   requires a comparable road test for license issuance.  
132.9      (b) The commissioner of public safety shall issue a 
132.10  two-wheeled vehicle instruction permit shall be issued to any 
132.11  person over 16 years of age, who (1) is in possession of a valid 
132.12  driver's license, who (2) is enrolled in an approved two-wheeled 
132.13  vehicle driver's safety course, and who (3) has passed a written 
132.14  examination for such the permit and has paid such a fee as 
132.15  prescribed by the commissioner of public safety shall 
132.16  prescribe.  A two-wheeled vehicle instruction permit shall be is 
132.17  effective for one year, and may be renewed under rules to be 
132.18  prescribed by the commissioner of public safety. 
132.19     (c) No person who is operating by virtue of a two-wheeled 
132.20  vehicle instruction permit shall: 
132.21     (a) (1) carry any passengers on the streets and highways of 
132.22  this state on the motorcycle which while the person is operating 
132.23  the motorcycle; 
132.24     (b) (2) drive the motorcycle at nighttime night; 
132.25     (c) (3) drive the motorcycle on any highway marked by the 
132.26  commissioner as an interstate highway pursuant to title 23 of 
132.27  the United States Code; or 
132.28     (d) (4) drive the motorcycle without wearing protective 
132.29  headgear that complies with standards established by the 
132.30  commissioner of public safety. 
132.31     (d) Notwithstanding the provisions of this subdivision 
132.32  paragraph (a), (b), or (c), the commissioner of public safety 
132.33  may, however, issue a special motorcycle permit, restricted or 
132.34  qualified in such manner as the commissioner of public 
132.35  safety shall deem deems proper, to any person demonstrating a 
132.36  need therefor for the permit and unable to qualify for a 
133.1   standard driver's license. 
133.2      Sec. 31.  Minnesota Statutes 1999 Supplement, section 
133.3   171.05, subdivision 2, is amended to read: 
133.4      Subd. 2.  [PERSON LESS THAN 18 YEARS OF AGE.] (a) 
133.5   Notwithstanding any provision in subdivision 1 to the contrary, 
133.6   the department, upon application therefor, may issue an 
133.7   instruction permit to an applicant who is 15, 16, or 17 years of 
133.8   age and the applicant who: 
133.9      (1) has completed a course of driver education in another 
133.10  state, has a previously issued valid license from another state, 
133.11  or is enrolled in one of the following types of driver education 
133.12  programs either: 
133.13     (i) a public, private, or commercial driver education 
133.14  program offered through the public schools that is approved by 
133.15  the commissioner of public safety and that includes classroom 
133.16  and behind-the-wheel training and that has been approved by the 
133.17  commissioner of children, families, and learning; or 
133.18     (ii) a course offered by a private, commercial driver 
133.19  education school or institute that includes classroom and 
133.20  behind-the-wheel training and that has been approved by the 
133.21  department of public safety; or 
133.22     (iii) an approved behind-the-wheel driver education program 
133.23  when the student is receiving full-time instruction in a home 
133.24  school within the meaning of sections 120A.22 and 120A.24, the 
133.25  student is working toward a home-school diploma, the student's 
133.26  status as a home-school student has been certified by the 
133.27  superintendent of the school district in which the student 
133.28  resides, and the student is taking home-classroom driver 
133.29  training with classroom materials approved by the commissioner 
133.30  of public safety; 
133.31     (2) has completed the classroom phase of instruction in the 
133.32  driver education program; 
133.33     (3) has passed a test of the applicant's eyesight; 
133.34     (4) has passed a department-administered test of the 
133.35  applicant's knowledge of traffic laws, which test must be 
133.36  administered by the department; 
134.1      (5) has completed the required application, which must be 
134.2   approved by (i) either parent when both reside in the same 
134.3   household as the minor applicant or, if otherwise, then (ii) the 
134.4   parent or spouse of the parent having custody or, in the event 
134.5   there is no court order for custody, then (iii) the parent or 
134.6   spouse of the parent with whom the minor is living or, if items 
134.7   (i) to (iii) do not apply, then (iv) the guardian having custody 
134.8   of the minor or, in the event a person under the age of 18 has 
134.9   no living father, mother, or guardian, then (v) the applicant's 
134.10  employer; provided, that the approval required by this clause 
134.11  contains a verification of the age of the applicant and the 
134.12  identity of the parent, guardian, or employer; and 
134.13     (6) has paid the fee required in section 171.06, 
134.14  subdivision 2. 
134.15     (b) The instruction permit is valid for one year from the 
134.16  date of application and may be renewed upon payment of a fee 
134.17  equal to the fee for issuance of an instruction permit under 
134.18  section 171.06, subdivision 2. 
134.19     Sec. 32.  Minnesota Statutes 1998, section 171.06, 
134.20  subdivision 2, is amended to read: 
134.21     Subd. 2.  [FEES.] (a) The fees for a license and Minnesota 
134.22  identification card are as follows: 
134.23  Classified Driver's License  D-$18.50 C-$22.50 B-$29.50 A-$37.50
134.24  Classified Under-21 D.L.     D-$18.50 C-$22.50 B-$29.50 A-$17.50
134.25  Instruction Permit                                        $ 9.50
134.26  Provisional License                                       $ 9.50
134.27  Duplicate License or
134.28   duplicate identification card                            $ 8.00
134.29  Minnesota identification card or Under-21 Minnesota
134.30  identification card, other than duplicate,
134.31  except as otherwise provided in section 171.07,
134.32  subdivisions 3 and 3a $12.50
134.33     (b) Notwithstanding paragraph (a), a person who holds a 
134.34  provisional license and has a driving record free of (1) 
134.35  convictions for a violation of section 169.121, 169.1218, 
134.36  169.122, or 169.123, (2) convictions for crash-related moving 
135.1   violations, and (3) convictions for moving violations that are 
135.2   not crash related, shall have a $3.50 credit toward the fee for 
135.3   any classified under-21 driver's license.  "Moving violation" 
135.4   has the meaning given it in section 171.04, subdivision 1. 
135.5      (c) In addition to the driver's license fee required under 
135.6   paragraph (a), the registrar shall collect an additional $4 
135.7   processing fee from each new applicant or person renewing a 
135.8   license with a school bus endorsement to cover the costs for 
135.9   processing an applicant's initial and biennial physical 
135.10  examination certificate.  The department shall not charge these 
135.11  applicants any other fee to receive or renew the endorsement. 
135.12     <b>EFFECTIVE DATE:</b>  This section is effective the day 
135.13  following final enactment. 
135.14     Sec. 33.  Minnesota Statutes 1998, section 171.321, 
135.15  subdivision 2, is amended to read: 
135.16     Subd. 2.  [RULES.] (a) The commissioner of public safety 
135.17  shall prescribe rules governing the physical qualifications of 
135.18  school bus drivers and tests required to obtain a school bus 
135.19  endorsement.  The rules must provide that an applicant for a 
135.20  school bus endorsement or renewal is exempt from the physical 
135.21  qualifications and medical examination required to operate a 
135.22  school bus upon providing evidence of being medically examined 
135.23  and certified within the preceding 24 months as physically 
135.24  qualified to operate a commercial motor vehicle, pursuant to 
135.25  Code of Federal Regulations, title 49, part 391, subpart E, or 
135.26  rules of the commissioner of transportation incorporating those 
135.27  federal regulations.  The commissioner shall accept physical 
135.28  examinations for school bus drivers conducted by medical 
135.29  examiners authorized as provided by the Code of Federal 
135.30  Regulations, title 49, chapter 3, part 391, subpart E. 
135.31     (b) The commissioner of public safety, in conjunction with 
135.32  the commissioner of economic security, shall adopt rules 
135.33  prescribing a training program for Head Start bus drivers.  The 
135.34  program must provide for initial classroom and behind-the-wheel 
135.35  training, and annual in-service training.  The program must 
135.36  provide training in defensive driving, human relations, 
136.1   emergency and accident procedures, vehicle maintenance, traffic 
136.2   laws, and use of safety equipment.  The program must provide 
136.3   that the training will be conducted by the contract operator for 
136.4   a Head Start agency, the Head Start grantee, a licensed driver 
136.5   training school, or by another person or entity approved by both 
136.6   commissioners. 
136.7      <b>EFFECTIVE DATE:</b>  This section is effective the day 
136.8   following final enactment. 
136.9      Sec. 34.  Minnesota Statutes 1998, section 171.321, 
136.10  subdivision 3, is amended to read: 
136.11     Subd. 3.  [RECORDS CHECK OF APPLICANT.] (a) Before issuing 
136.12  or renewing a school bus endorsement, the commissioner shall 
136.13  conduct a criminal and driver's license records check of the 
136.14  applicant.  The commissioner may also conduct the check at any 
136.15  time while a person is so licensed.  The check shall must 
136.16  consist of a criminal records check of the state criminal 
136.17  records repository and a check of the driver's license records 
136.18  system.  If the applicant has resided in Minnesota for less than 
136.19  five years, the check shall must also include a criminal records 
136.20  check of information from the state law enforcement agencies in 
136.21  the states where the person resided during the five years before 
136.22  moving to Minnesota, and of the national criminal records 
136.23  repository including the criminal justice data communications 
136.24  network.  The applicant's failure to cooperate with the 
136.25  commissioner in conducting the records check is reasonable cause 
136.26  to deny an application or cancel a school bus endorsement.  The 
136.27  commissioner may not release the results of the records check to 
136.28  any person except the applicant or the applicant's designee in 
136.29  writing. 
136.30     (b) The commissioner may issue to an otherwise qualified 
136.31  applicant a temporary school bus endorsement, effective for no 
136.32  more than 180 days, upon presentation of (1) an affidavit by the 
136.33  applicant that the applicant has not been convicted of a 
136.34  disqualifying offense and (2) a criminal history check from each 
136.35  state of residence for the previous five years.  The criminal 
136.36  history check may be conducted and prepared by any public or 
137.1   private source acceptable to the commissioner.  The commissioner 
137.2   may reissue the temporary endorsement if the National Criminal 
137.3   Records Repository check is timely submitted but not completed 
137.4   within the 180-day period. 
137.5      <b>EFFECTIVE DATE:</b>  This section is effective the day 
137.6   following final enactment. 
137.7      Sec. 35.  Minnesota Statutes 1998, section 171.321, 
137.8   subdivision 4, is amended to read: 
137.9      Subd. 4.  [TRAINING.] (a) No person shall drive a class A, 
137.10  B, C, or D school bus when transporting school children to or 
137.11  from school or upon a school-related trip or activity without 
137.12  having demonstrated sufficient skills and knowledge to transport 
137.13  students in a safe and legal manner. 
137.14     (b) A bus driver must have training or experience that 
137.15  allows the driver to meet at least the following competencies: 
137.16     (1) safely operate the type of school bus the driver will 
137.17  be driving; 
137.18     (2) understand student behavior, including issues relating 
137.19  to students with disabilities; 
137.20     (3) encourage orderly conduct of students on the bus and 
137.21  handle incidents of misconduct appropriately; 
137.22     (4) know and understand relevant laws, rules of the road, 
137.23  and local school bus safety policies; 
137.24     (5) handle emergency situations; and 
137.25     (6) safely load and unload students. 
137.26     (c) The commissioner of public safety, in conjunction with 
137.27  the commissioner of children, families, and learning, shall 
137.28  develop a comprehensive model school bus driver training program 
137.29  and model assessments for school bus driver training 
137.30  competencies, which are not subject to chapter 14.  A school 
137.31  district may use alternative assessments for bus driver training 
137.32  competencies with the approval of the commissioner of public 
137.33  safety.  The employer shall keep the assessment for the current 
137.34  period available for inspection by representatives of the 
137.35  commissioner. 
137.36     <b>EFFECTIVE DATE:</b>  This section is effective the day 
138.1   following final enactment. 
138.2      Sec. 36.  Minnesota Statutes 1998, section 171.321, 
138.3   subdivision 5, is amended to read: 
138.4      Subd. 5.  [ANNUAL EVALUATION.] A school district's pupil 
138.5   transportation safety director, the chief administrator of a 
138.6   nonpublic school, or a private contractor shall certify annually 
138.7   to the commissioner of public safety school board or governing 
138.8   board of a nonpublic school that, at minimum, each school bus 
138.9   driver meets the school bus driver training competencies under 
138.10  subdivision 4 and shall report the number of hours of in-service 
138.11  training completed by each driver.  A school district, nonpublic 
138.12  school, or private contractor also shall provide in-service 
138.13  training annually to each school bus driver.  A district, 
138.14  nonpublic school, or private contractor also shall check the 
138.15  license of each person who transports students for the district 
138.16  with the National Drivers Register or the department of public 
138.17  safety annually.  The school board must approve and forward the 
138.18  competency certification and in-service report to the 
138.19  commissioner of public safety. 
138.20     <b>EFFECTIVE DATE:</b>  This section is effective the day 
138.21  following final enactment. 
138.22     Sec. 37.  Minnesota Statutes 1999 Supplement, section 
138.23  260C.143, subdivision 4, is amended to read: 
138.24     Subd. 4.  [TRUANT.] When a peace officer or probation 
138.25  officer has probable cause to believe that a child is currently 
138.26  under age 16 and absent from school without lawful excuse, 
138.27  consistent with section 120A.22, subdivisions 5 and 8, the 
138.28  officer may: 
138.29     (1) transport the child to the child's home and deliver the 
138.30  child to the custody of the child's parent or guardian,; 
138.31     (2) transport the child to the child's school of enrollment 
138.32  and deliver the child to the custody of a school superintendent 
138.33  or teacher or; 
138.34     (3) transport the child to a truancy service center under 
138.35  section 260A.04, subdivision 3; or 
138.36     (4) transport the child from the child's home to the 
139.1   child's school of enrollment or to a truancy service center. 
139.2      Sec. 38.  Minnesota Statutes 1998, section 471.15, is 
139.3   amended to read: 
139.4      471.15 [RECREATIONAL FACILITIES BY MUNICIPALITY, VETERANS; 
139.5   BONDS.] 
139.6      (a) Any home rule charter or statutory city or any town, 
139.7   county, school district, or any board thereof, or any 
139.8   incorporated post of the American Legion or any other 
139.9   incorporated veterans' organization, may expend not to exceed 
139.10  $800 in any one year, for the purchase of awards and trophies 
139.11  and may operate a program of public recreation and playgrounds; 
139.12  acquire, equip, and maintain land, buildings, or other 
139.13  recreational facilities, including an outdoor or indoor swimming 
139.14  pool; and expend funds for the operation of such program 
139.15  pursuant to the provisions of sections 471.15 to 471.19.  The 
139.16  city, town, county or school district may issue bonds pursuant 
139.17  to chapter 475 for the purpose of carrying out the powers 
139.18  granted by this section.  The city, town, county or school 
139.19  district may operate the program and facilities directly or 
139.20  establish one or more recreation boards to operate all or 
139.21  various parts of them. 
139.22     (b) A home rule charter or statutory city, a county, or a 
139.23  town may expend funds for the purpose of supporting student 
139.24  academic or extracurricular activities sponsored by the local 
139.25  school district. 
139.26     Sec. 39.  Laws 1999, chapter 241, article 5, section 18, 
139.27  subdivision 5, is amended to read: 
139.28     Subd. 5.  [CHARTER SCHOOL BUILDING LEASE AID.] For building 
139.29  lease aid according to Minnesota Statutes, section 124D.11, 
139.30  subdivision 4: 
139.31       $2,992,000 $ 5,981,000     .....     2000
139.32       $3,616,000 $10,807,000     .....     2001
139.33     The 2000 appropriation includes $194,000 for 1999 and 
139.34  $2,798,000 $5,787,000 for 2000. 
139.35     The 2001 appropriation includes $311,000 $643,000 for 2000 
139.36  and $3,305,000 $10,164,000 for 2001.  
140.1      <b>EFFECTIVE DATE:</b>  This section is effective the day 
140.2   following final enactment. 
140.3      Sec. 40.  Laws 1999, chapter 241, article 5, section 18, 
140.4   subdivision 6, is amended to read: 
140.5      Subd. 6.  [CHARTER SCHOOL START-UP GRANTS.] For charter 
140.6   school start-up cost aid under Minnesota Statutes, section 
140.7   124D.11: 
140.8        $1,789,000 $1,955,000   .....     2000 
140.9        $1,876,000 $2,926,000   .....     2001 
140.10     The 2000 appropriation includes $100,000 for 1999 and 
140.11  $1,689,000 $1,855,000 for 2000.  
140.12     The 2001 appropriation includes $188,000 $206,000 for 
140.13  1999 2000 and $1,688,000 $2,720,000 for 2001. 
140.14     Any balance in the first year does not cancel but is 
140.15  available in the second year.  This appropriation may also be 
140.16  used for grants to convert existing schools into charter schools.
140.17     <b>EFFECTIVE DATE:</b>  This section is effective the day 
140.18  following final enactment. 
140.19     Sec. 41.  [RESIDENTIAL ACADEMIES.] 
140.20     In the event that a recipient who has been awarded a grant 
140.21  under Laws 1998, chapter 398, article 5, section 46, has 
140.22  received approval for updated capital and operating plans after 
140.23  June 1, 1999, and has not substantially performed pursuant to 
140.24  the terms and conditions of its award by June 30, 2002, the 
140.25  commissioner shall reopen the application process with respect 
140.26  to any funds available. 
140.27     <b>EFFECTIVE DATE:</b>  This section is effective the day 
140.28  following final enactment. 
140.29     Sec. 42.  [MINNESOTA NEW TEACHER PROJECT.] 
140.30     Subdivision 1.  [ESTABLISHMENT; PARTICIPATION.] The 
140.31  Minnesota new teacher project is established in the department 
140.32  of children, families, and learning in order to retain new 
140.33  teachers in the profession and to provide models for supporting 
140.34  the professional development of first-year and second-year 
140.35  teachers.  In order for a school district to participate in the 
140.36  new teacher project, a school board and an exclusive 
141.1   representative of the teachers in the district, or for a charter 
141.2   school the majority of the teachers, must agree to participate 
141.3   in the new teacher project and to the district plan under 
141.4   subdivision 2. 
141.5      Subd. 2.  [DISTRICT PLAN.] A district that participates in 
141.6   the new teacher project must submit a plan for the project to 
141.7   the commissioner for approval.  The new teacher project plan 
141.8   must be consistent with the knowledge and skills required in the 
141.9   teacher licensure rules adopted by the board of teaching and the 
141.10  state graduation requirements and include curricula of best 
141.11  practice activities such as one-on-one mentoring, intensive 
141.12  summer orientation, first-year and second-year training 
141.13  workshops, peer review, mutual observation between new and 
141.14  experienced teachers, classroom management techniques, cultural 
141.15  diversity, reading strategies, lighter workloads, and first-year 
141.16  residency.  The plan must include the participation of a teacher 
141.17  preparation program approved by the board of teaching. 
141.18     Districts receiving a grant under this section must report 
141.19  to the board of teaching regarding its chosen new teacher 
141.20  project plan. 
141.21     Subd. 3.  [STATE MATCH.] A district that has an approved 
141.22  new teacher project plan is eligible to receive $3,000 of state 
141.23  money for each new teacher participating in the project.  The 
141.24  district must contribute $2,000 of district money for each new 
141.25  teacher participating in the project. 
141.26     Sec. 43.  [TASK FORCE ON SCHOOL GOVERNANCE AND MANAGEMENT.] 
141.27     Subdivision 1.  [ESTABLISHMENT.] The task force on school 
141.28  governance and management is established to examine the existing 
141.29  constitutional and statutory provisions that dictate the 
141.30  governance responsibilities and authority of the respective 
141.31  components of the state's public education system. 
141.32     Subd. 2.  [MEMBERSHIP; STAFFING.] (a) The task force on 
141.33  school governance and management must be composed of nine 
141.34  members, with three members appointed by the governor, three 
141.35  members appointed by the speaker of the house of 
141.36  representatives, and three members appointed by the subcommittee 
142.1   on committees of the senate committee on rules and 
142.2   administration.  Members should represent the business 
142.3   community, education stakeholders, parents, or other interested 
142.4   community members. 
142.5      (b) The executive branch through the office of the governor 
142.6   shall make staff available to assist the task force. 
142.7      Subd. 3.  [REPORT.] (a) The task force on school governance 
142.8   and management must report to the governor and the appropriate 
142.9   committees of the house and senate no later than December 1, 
142.10  2000. 
142.11     (b) The task force must do the following: 
142.12     (1) identify any governance or organizational barriers that 
142.13  inhibit or preclude schools or school districts from: 
142.14     (i) ensuring all students meet state and local graduation 
142.15  standards; 
142.16     (ii) ensuring instructional programs are available to meet 
142.17  individual student's academic needs; 
142.18     (iii) making efficient changes in instructional and 
142.19  noninstructional program and service delivery; and 
142.20     (iv) delegating instructional and general operating 
142.21  decision-making to the school level; and 
142.22     (2) make recommendations regarding the statutory changes 
142.23  needed to enable school districts to: 
142.24     (i) continuously identify changes to meet the needs of 
142.25  student cohorts; 
142.26     (ii) provide a variety of instructional opportunities to 
142.27  meet individual student needs; 
142.28     (iii) measure individual student academic achievement; and 
142.29     (iv) modify or expand instructional programs if student 
142.30  achievement does not meet expectations. 
142.31     Subd. 4.  [EXPIRATION.] The task force on school governance 
142.32  and management expires on December 31, 2000. 
142.33     <b>EFFECTIVE DATE:</b>  This section is effective the day 
142.34  following final enactment. 
142.35     Sec. 44.  [2000-2001 SCHOOL YEAR START DATE.] 
142.36     Subdivision 1.  [LABOR DAY START.] Notwithstanding 
143.1   Minnesota Statutes, section 120A.40, for the 2000-2001 school 
143.2   year only, a district must not begin the elementary or secondary 
143.3   school year prior to Labor Day. 
143.4      Subd. 2.  [MABEL-CANTON INDEPENDENT SCHOOL DISTRICT NO. 
143.5   238.] Notwithstanding subdivision 1 and Minnesota Statutes, 
143.6   section 120A.40, for the 2000-2001 school year only, independent 
143.7   school district No. 238, Mabel-Canton, may start the school year 
143.8   up to five weekdays before Labor Day for the purpose of 
143.9   scheduling an additional academic term during the regular school 
143.10  year. 
143.11     Subd. 3.  [BROWNS VALLEY INDEPENDENT SCHOOL DISTRICT NO. 
143.12  801.] Notwithstanding subdivision 1 and Minnesota Statutes, 
143.13  section 120A.40, for the 2000-2001 school year only, independent 
143.14  school district No. 801, Browns Valley, may start the school 
143.15  year up to five weekdays before Labor Day for the purpose of 
143.16  scheduling an additional academic term during the regular school 
143.17  year. 
143.18     Sec. 45.  [CHARTER SCHOOL BUILDING LEASE AID REVIEW.] 
143.19     The department of children, families, and learning shall 
143.20  work with charter school operators and other interested parties 
143.21  to create recommendations for appropriate criteria for charter 
143.22  school building lease aid and report its findings to the 
143.23  education committees of the legislature by January 15, 2001. 
143.24     Sec. 46.  [APPROPRIATIONS.] 
143.25     Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
143.26  LEARNING.] The sum indicated in this section is appropriated 
143.27  from the general fund to the department of children, families, 
143.28  and learning for the fiscal year indicated. 
143.29     Subd. 2.  [PROFESSIONAL TEACHING STANDARDS.] For grant 
143.30  awards for national board for professional teaching standards 
143.31  certification according to Laws 1997, First Special Session 
143.32  chapter 4, article 5, section 22: 
143.33       $150,000     .....     2001
143.34     This is a one-time appropriation. 
143.35                             ARTICLE 7 
143.36              KINDERGARTEN THROUGH GRADE 12 EDUCATION 
144.1             NUTRITION AND OTHER PROGRAMS; FUND TRANSFERS 
144.2      Section 1.  [123B.575] [PESTICIDE APPLICATION AT SCHOOLS.] 
144.3      Subdivision 1.  [PARENTS' RIGHT-TO-KNOW ACT.] Subdivisions 
144.4   2 to 14 may be cited as the Janet B. Johnson Parents' 
144.5   Right-to-Know Act of 2000. 
144.6      Subd. 2.  [PESTICIDE APPLICATION NOTIFICATION.] A school 
144.7   that plans to apply a pesticide which is a toxicity category I, 
144.8   II, or III pesticide product, as classified by the United States 
144.9   Environmental Protection Agency, or a restricted use pesticide, 
144.10  as designated under the Federal Insecticide, Fungicide, and 
144.11  Rodenticide Act, on school property, must provide a notice to 
144.12  parents and employees that it applies such pesticides.  The 
144.13  notice required under subdivision 3 must: 
144.14     (1) provide that an estimated schedule of the pesticide 
144.15  applications is available for review or copying at the school 
144.16  offices where such pesticides are applied; 
144.17     (2) state that long-term health effects on children from 
144.18  the application of such pesticides or the class of chemicals to 
144.19  which they belong may not be fully understood; 
144.20     (3) inform parents that a parent may request the school 
144.21  notify him or her in the manner specified in subdivision 6 
144.22  before any application of a pesticide listed in this subdivision.
144.23     Subd. 3.  [NOTICE; TIMING; DISTRIBUTION.] The notice must 
144.24  be provided no later than September 15 of each school year 
144.25  during which pesticides listed in subdivision 2 are planned to 
144.26  be applied.  The notice may be included with other notices 
144.27  provided by the school, but must be separately identified and 
144.28  clearly visible to the reader.  
144.29     Subd. 4.  [SCHOOL HANDBOOK OR STATEMENT OF POLICIES.] In 
144.30  addition to the notice provided according to subdivision 3, a 
144.31  school that is required to provide notice under this section 
144.32  shall include in an official school handbook or official school 
144.33  policy guide of a general nature a section informing parents 
144.34  that an estimated schedule of applications of pesticides listed 
144.35  in subdivision 2 is available for review or copying at the 
144.36  school offices, and that a parent may receive prior notice of 
145.1   each application if specifically requested.  
145.2      Subd. 5.  [NOTICE AVAILABILITY.] A school that uses a 
145.3   pesticide listed in subdivision 2 must keep a copy of all 
145.4   notifications required under subdivisions 2 and 3 for at least 
145.5   six years in a manner available to the public.  
145.6      Subd. 6.  [NOTIFICATION FOR INDIVIDUAL PARENTS.] A parent 
145.7   of a student at a school may request that the school principal 
145.8   or other person having general control and supervision of the 
145.9   school notify the parent prior to the application of any 
145.10  pesticides listed in subdivision 2 at the school on a day 
145.11  different from the days specified in the notice under 
145.12  subdivision 3.  The school principal or other person having 
145.13  general control and supervision of the school must provide 
145.14  reasonable notice to a parent who has requested such 
145.15  notification prior to applying such pesticides.  The notice may 
145.16  be waived for emergency applications required only by 
145.17  appropriate state or local health officials.  The notice must 
145.18  include the pesticide to be applied, the time of the planned 
145.19  application, and the location at the school of the planned 
145.20  application.  A school may request reimbursement for the 
145.21  school's reasonable costs of providing notice under this 
145.22  subdivision, including any costs of mailing, from individuals 
145.23  requesting notification under this subdivision. 
145.24     Subd. 7.  [MODEL NOTICE.] The department of health, in 
145.25  consultation with the department of children, families, and 
145.26  learning, the office of environmental assistance, and University 
145.27  of Minnesota extension service, shall develop and make available 
145.28  to schools by August 1, 2000, a model notice in a form that can 
145.29  be used by a school if it chooses to do so.  The model notice 
145.30  must include the information required by this section.  The 
145.31  department of health must provide an opportunity for 
145.32  environmental groups, interested parents, public health 
145.33  organizations, and other parties to work with the department in 
145.34  developing the model notice.  
145.35     Subd. 8.  [PLAN.] A school is not required to adopt an 
145.36  integrated pest management plan.  A school board may only notify 
146.1   students, parents, or employees that it has adopted an 
146.2   integrated pest management plan if the plan is a managed pest 
146.3   control program designed to minimize the risk to human health 
146.4   and the environment and to reduce the use of chemical 
146.5   pesticides, and which ranks the district's response to pests in 
146.6   the following manner: 
146.7      (1) identifying pests which need to be controlled; 
146.8      (2) establishing tolerable limits of each identified pest; 
146.9      (3) designing future buildings and landscapes to prevent 
146.10  identified pests; 
146.11     (4) excluding identified pests from sites and buildings 
146.12  using maintenance practices; 
146.13     (5) adapting cleaning activities and best management 
146.14  practices to minimize the number of pests; 
146.15     (6) using mechanical methods of controlling identified 
146.16  pests; and 
146.17     (7) controlling identified pests using the least toxic 
146.18  pesticides with the least exposure to persons as is practicable. 
146.19     Subd. 9.  [PESTICIDE DEFINED; CLEANING PRODUCTS 
146.20  EXCLUDED.] For purposes of this section, the term "pesticide" 
146.21  has the meaning given it in section 18B.01, subdivision 18, 
146.22  except that it does not include any disinfectants, sanitizers, 
146.23  deodorizers, or antimicrobial agents used for general cleaning 
146.24  purposes. 
146.25     Subd. 10.  [PEST DEFINED.] For purposes of this section, 
146.26  the term "pest" has the meaning given it in section 18B.01, 
146.27  subdivision 17. 
146.28     Subd. 11.  [SCHOOL DEFINED.] For the purposes of this 
146.29  section, "school" means a school as defined in section 120A.22, 
146.30  subdivision 4, excluding home schools. 
146.31     Subd. 12.  [IMMUNITY FROM LIABILITY.] No cause of action 
146.32  may be brought against a school district, a school, or the 
146.33  districts or school's employees or agents for any failure to 
146.34  comply with the requirements under this section. 
146.35     Subd. 13.  [EVIDENCE OF FAILURE TO COMPLY EXCLUDED.] A 
146.36  failure to comply with the requirements of this section may not 
147.1   be presented as evidence in any lawsuit based upon physical 
147.2   injury resulting from exposure to pesticides applied at a school.
147.3      Subd. 14.  [NO SPECIAL RIGHTS.] Nothing in this section 
147.4   affects the duty of a parent or a student to comply with the 
147.5   compulsory attendance law or the duty of a school employee to 
147.6   comply with the provisions of an applicable employment contract 
147.7   or policy.  
147.8      <b>EFFECTIVE DATE:</b>  This section is effective August 1, 2000. 
147.9      Sec. 2.  Minnesota Statutes 1998, section 124D.111, 
147.10  subdivision 1, is amended to read: 
147.11     Subdivision 1.  [SCHOOL LUNCH AID COMPUTATION.] Each school 
147.12  year, the state must pay districts participating in the national 
147.13  school lunch program the amount of 6.5 eight cents for each full 
147.14  paid, reduced, and free student lunch served to students in the 
147.15  district. 
147.16     <b>EFFECTIVE DATE:</b>  This section is effective the day 
147.17  following final enactment. 
147.18     Sec. 3.  Minnesota Statutes 1999 Supplement, section 
147.19  124D.1155, subdivision 2, is amended to read: 
147.20     Subd. 2.  [ELIGIBILITY.] An applicant for a grant must be a 
147.21  public or nonpublic elementary school that participates in the 
147.22  federal school breakfast and lunch programs.  The commissioner 
147.23  must give first priority to schools where at least 33 percent of 
147.24  the lunches the school served to children during the second 
147.25  preceding school year were provided free or at a reduced price.  
147.26  The commissioner must give second priority to all other public 
147.27  or nonpublic elementary schools. 
147.28     Sec. 4.  Laws 1999, chapter 241, article 6, section 14, 
147.29  subdivision 2, is amended to read: 
147.30     Subd. 2.  [ABATEMENT AID.] For abatement aid according to 
147.31  Minnesota Statutes, section 127A.49:  
147.32        $9,110,000 $9,577,000   .....     2000 
147.33        $8,947,000 $8,279,000   .....     2001 
147.34     The 2000 appropriation includes $1,352,000 for 1999 and 
147.35  $7,758,000 $8,225,000 for 2000.  
147.36     The 2001 appropriation includes $861,000 $914,000 for 2000 
148.1   and $8,086,000 $7,365,000 for 2001.  
148.2      <b>EFFECTIVE DATE:</b>  This section is effective the day 
148.3   following final enactment. 
148.4      Sec. 5.  Laws 1999, chapter 241, article 6, section 14, 
148.5   subdivision 3, is amended to read: 
148.6      Subd. 3.  [NONPUBLIC PUPIL AID.] For nonpublic pupil 
148.7   education aid according to Minnesota Statutes, sections 123B.40 
148.8   to 123B.48 and 123B.87: 
148.9        $10,996,000   .....      2000 
148.10       $11,878,000 $13,448,000   .....      2001
148.11     The 2000 appropriation includes $970,000 for 1999 and 
148.12  $10,026,000 for 2000. 
148.13     The 2001 appropriation includes $1,114,000 $1,175,000 for 
148.14  2000 and $10,764,000 $12,273,000 for 2001.  
148.15     The department shall recompute the maximum allotments 
148.16  established on March 1, 1999, for fiscal year 2000 under 
148.17  Minnesota Statutes, sections 123B.42, subdivision 3, and 
148.18  123B.44, subdivision 6, to reflect the amount appropriated in 
148.19  this subdivision for fiscal year 2000. 
148.20     The department shall recompute the maximum allotments 
148.21  established on March 1, 2000, for fiscal year 2001 under 
148.22  Minnesota Statutes, sections 123B.42, subdivision 3, and 
148.23  123B.44, subdivision 6, to reflect the amount appropriated in 
148.24  this subdivision for fiscal year 2001. 
148.25     <b>EFFECTIVE DATE:</b>  This section is effective the day 
148.26  following final enactment. 
148.27     Sec. 6.  Laws 1999, chapter 241, article 6, section 14, 
148.28  subdivision 4, is amended to read: 
148.29     Subd. 4.  [CONSOLIDATION TRANSITION AID.] For districts 
148.30  consolidating under Minnesota Statutes, section 123A.485: 
148.31       $451,000 $563,000      .....     2000
148.32       $375,000 $455,000      .....     2001
148.33     The 2000 appropriation includes $113,000 for 1999 and 
148.34  $338,000 $450,000 for 2000. 
148.35     The 2001 appropriation includes $37,000 $50,000 for 2000 
148.36  and $338,000 $405,000 for 2001. 
149.1      Any balance in the first year does not cancel but is 
149.2   available in the second year. 
149.3      <b>EFFECTIVE DATE:</b>  This section is effective the day 
149.4   following final enactment. 
149.5      Sec. 7.  Laws 1999, chapter 241, article 6, section 14, 
149.6   subdivision 5, is amended to read: 
149.7      Subd. 5.  [NONPUBLIC PUPIL TRANSPORTATION.] For nonpublic 
149.8   pupil transportation aid under Minnesota Statutes, section 
149.9   123B.92, subdivision 9: 
149.10       $18,586,000 $20,358,000   .....     2000 
149.11       $20,922,000 $21,333,000   .....     2001 
149.12     The 2000 appropriation includes $1,848,000 for 2000 1999 
149.13  and $16,738,000 $18,510,000 for 2001 2000. 
149.14     The 2001 appropriation includes $1,860,000 $2,057,000 for 
149.15  2000 and $19,062,000 $19,276,000 for 2001. 
149.16     <b>EFFECTIVE DATE:</b>  This section is effective the day 
149.17  following final enactment. 
149.18     Sec. 8.  Laws 1999, chapter 241, article 7, section 2, 
149.19  subdivision 2, is amended to read: 
149.20     Subd. 2.  [SCHOOL LUNCH AID.] (a) For school lunch aid 
149.21  according to Minnesota Statutes, section 124D.111, and Code of 
149.22  Federal Regulations, title 7, section 210.17, and for school 
149.23  milk aid according to Minnesota Statutes, section 124D.118:  
149.24       $8,200,000 $8,340,000     .....     2000 
149.25       $8,200,000 $8,566,000     .....     2001 
149.26     (b) Any unexpended balance remaining from the 
149.27  appropriations in this subdivision shall be prorated among 
149.28  participating schools based on the number of free, reduced, and 
149.29  fully paid federally reimbursable student lunches served during 
149.30  that school year.  
149.31     (c) If the appropriation amount attributable to either year 
149.32  is insufficient, the rate of payment for each fully paid student 
149.33  lunch shall be reduced and the aid for that year shall be 
149.34  prorated among participating schools so as not to exceed the 
149.35  total authorized appropriation for that year.  
149.36     (d) Not more than $800,000 of the amount appropriated each 
150.1   year may be used for school milk aid. 
150.2      <b>EFFECTIVE DATE:</b>  This section is effective the day 
150.3   following final enactment. 
150.4      Sec. 9.  Laws 1999, chapter 241, article 7, section 2, 
150.5   subdivision 5, is amended to read: 
150.6      Subd. 5.  [SCHOOL BREAKFAST.] To operate the school 
150.7   breakfast program according to Minnesota Statutes, sections 
150.8   124D.115 and 124D.117: 
150.9        $456,000 $713,000     .....     2000
150.10       $456,000 $713,000     .....     2001
150.11     If the appropriation amount attributable to either year is 
150.12  insufficient, the rate of payment for each fully paid student 
150.13  breakfast shall be reduced and the aid for that year shall be 
150.14  prorated among participating schools so as not to exceed the 
150.15  total authorized appropriation for that year.  Any unexpended 
150.16  balance remaining shall be used to subsidize the payments made 
150.17  for school lunch aid per Minnesota Statutes, section 124D.111.  
150.18     Up to one percent of the program funding can be used by the 
150.19  department of children, families, and learning for technical and 
150.20  administrative assistance. 
150.21     <b>EFFECTIVE DATE:</b>  This section is effective the day 
150.22  following final enactment. 
150.23     Sec. 10.  [DEPARTMENT OF CHILDREN, FAMILIES, AND LEARNING 
150.24  WEB SITE.] 
150.25     The department of children, families, and learning must 
150.26  maintain a list of pesticides that will enable a school district 
150.27  to identify whether the district is using a pesticide that is 
150.28  classified as toxicity category I, II, or III pesticide products 
150.29  or as restricted use pesticides under the Federal Insecticide, 
150.30  Fungicide, and Rodenticide Act for purposes of providing notice 
150.31  required by Minnesota Statutes, section 123B.575.  To the extent 
150.32  practicable, the list maintained shall include the name under 
150.33  which the pesticide is registered by the environmental 
150.34  protection agency and the common brand names by which it is 
150.35  sold.  The department must maintain the list on its Web site or 
150.36  as a prominent link on its Web site to another state or federal 
151.1   agency's Web site. 
151.2      <b>EFFECTIVE DATE:</b>  This section is effective August 1, 2000. 
151.3      Sec. 11.  [PESTICIDE REPORTING.] 
151.4      (a) The commissioner of agriculture, in cooperation with 
151.5   the University of Minnesota extension service; the commissioners 
151.6   of administration; children, families, and learning; health; 
151.7   transportation; natural resources; and the pollution control 
151.8   agency; and other interested parties, must review the use of 
151.9   pesticide and integrated pest management techniques and 
151.10  practices as they are applied to the use and storage of 
151.11  pesticides in and around a representative sample of buildings 
151.12  owned by the state and buildings and grounds used for 
151.13  kindergarten through grade 12 public education.  Recommendations 
151.14  by the commissioner of agriculture on the use and avoidance of 
151.15  pesticides and comprehensive integrated pest management 
151.16  practices in state buildings and kindergarten through grade 12 
151.17  public school buildings, including the training of building 
151.18  managers and school personnel, must be presented to the 
151.19  environmental policy and finance committees of the legislature 
151.20  by January 15, 2001. 
151.21     (b) For purposes of the review and report in paragraph (a), 
151.22  the term "pesticide" has the meaning given in Minnesota 
151.23  Statutes, section 18B.01, subdivision 18, except that it does 
151.24  not include disinfectants, sanitizers, deodorizers, or 
151.25  antimicrobial agents for general cleaning purposes. 
151.26     Sec. 12.  [FUND TRANSFERS.] 
151.27     Subdivision 1.  [LAKEVILLE.] Notwithstanding Minnesota 
151.28  Statutes, section 123B.79 or 123B.80, independent school 
151.29  district No. 194, Lakeville, may transfer up to $1,000,000 from 
151.30  its reserved account for operating capital to the unreserved, 
151.31  undesignated general fund.  When independent school district No. 
151.32  194, Lakeville, attains a positive unreserved, undesignated 
151.33  general fund balance greater than ten percent of the most recent 
151.34  fiscal year's expenditures, the district shall transfer the 
151.35  amount exceeding ten percent to its reserve account for 
151.36  operating capital until an amount is transferred back that is 
152.1   equal to the amount transferred under this authority.  This 
152.2   subdivision expires on December 31, 2014.  
152.3      Subd. 2.  [CHOKIO-ALBERTA.] (a) Notwithstanding Minnesota 
152.4   Statutes, section 123B.58, 123B.79, or 123B.80, on June 30, 
152.5   2000, upon approval of the commissioner of children, families, 
152.6   and learning, independent school district No. 771, 
152.7   Chokio-Alberta, may permanently transfer up to $121,000 from its 
152.8   reserved account for disabled accessibility to its undesignated 
152.9   general fund balance. 
152.10     (b) Prior to making the fund transfer, independent school 
152.11  district No. 771, Chokio-Alberta, must demonstrate to the 
152.12  commissioner's satisfaction that the district's school buildings 
152.13  are accessible to students or employees with disabilities. 
152.14     Subd. 3.  [MAHTOMEDI.] Notwithstanding Minnesota Statutes, 
152.15  sections 123B.80, 123B.912, and 475.61, subdivision 4, on June 
152.16  30, 2000, independent school district No. 832, Mahtomedi, may 
152.17  permanently transfer up to $525,000 from its debt redemption 
152.18  fund to its capital account in its general fund without making a 
152.19  levy reduction to purchase land for a school facility. 
152.20     Subd. 4.  [NORMAN COUNTY EAST.] Notwithstanding Minnesota 
152.21  Statutes, sections 123B.79, 123B.80, and 475.61, subdivision 4, 
152.22  on June 2000, independent school district No. 2215, Norman 
152.23  County East, may permanently transfer up to $419,000 from its 
152.24  building construction fund to the reserved account for operating 
152.25  capital in the general fund without making a levy reduction. 
152.26     Subd. 5.  [ST. FRANCIS.] Notwithstanding Minnesota 
152.27  Statutes, section 123B.53, on June 30, 2000, independent school 
152.28  district No. 15, St. Francis, may permanently transfer $543,000 
152.29  from its debt service fund to the general fund to help the 
152.30  district out of statutory operating debt without making a levy 
152.31  reduction.  This transfer is contingent upon the district 
152.32  maintaining 105 percent of principal and interest against the 
152.33  debt service fund liabilities. 
152.34     Subd. 6.  [STAPLES-MOTLEY.] Notwithstanding Minnesota 
152.35  Statutes, sections 123B.79; 123B.80; and 475.61, subdivision 4, 
152.36  on May 31, 2000, independent school district No. 2170, 
153.1   Staples-Motley, may permanently transfer up to $71,000 from the 
153.2   debt service account of the former independent school district 
153.3   No. 483, Motley, to independent school district No. 2170, 
153.4   Staples-Motley's, operating capital fund without making a levy 
153.5   reduction. 
153.6      Subd. 7.  [FERGUS FALLS.] Notwithstanding Minnesota 
153.7   Statutes, section 123B.79, 123B.80, or 475.61, subdivision 4, 
153.8   independent school district No. 544, Fergus Falls, on June 30, 
153.9   2000, may permanently transfer up to $200,000 from the debt 
153.10  redemption fund to the general fund without making a levy 
153.11  reduction. 
153.12     Subd. 8.  [CROOKSTON.] Notwithstanding Minnesota Statutes, 
153.13  section 123B.79, 123B.80, or 475.61, subdivision 4, independent 
153.14  school district No. 593, Crookston, on June 30, 2000, may 
153.15  permanently transfer up to $400,000 from the debt redemption 
153.16  fund to the general fund without making a levy reduction. 
153.17     Subd. 9.  [LAKEVIEW SCHOOLS.] Notwithstanding any law to 
153.18  the contrary, independent school district No. 2167, Lakeview 
153.19  schools, is authorized to retain a cooperative facilities grant 
153.20  awarded in fiscal year 1995, and may permanently transfer that 
153.21  amount to its reserve account for operating capital. 
153.22     Subd. 10.  [PARKERS PRAIRIE.] Notwithstanding Minnesota 
153.23  Statutes, section 123B.79, 123B.80, or 475.61, subdivision 4, 
153.24  independent school district No. 547, Parkers Prairie, on June 
153.25  30, 2000, may permanently transfer up to $105,000 from the debt 
153.26  redemption fund to the reserved account for operating capital in 
153.27  the general fund without making a levy reduction. 
153.28     Subd. 11.  [GRAND MEADOW.] Notwithstanding Minnesota 
153.29  Statutes, sections 123B.79; 123B.80; and 475.61, subdivision 4, 
153.30  independent school district No. 495, Grand Meadow, may 
153.31  permanently transfer up to $300,000 from its disabled access 
153.32  account in the general fund to its capital fund.  This transfer 
153.33  is contingent upon the school district's successful construction 
153.34  of a new kindergarten through grade 12 school. 
153.35     Subd. 12.  [WIN-E-MAC.] At the completion of the 
153.36  consolidation of independent school district No. 604, Mentor, 
154.1   and independent school district No. 2609, Win-E-Mac, up to 
154.2   $125,000 may be transferred from the former Mentor school 
154.3   district health and safety reserve fund to the Win-E-Mac health 
154.4   and safety reserve fund. 
154.5      Subd. 13.  [BROWERVILLE.] Notwithstanding Minnesota 
154.6   Statutes, sections 123B.79, 123B.80, and 475.61, subdivision 4, 
154.7   on June 30, 2000, independent school district No. 787, 
154.8   Browerville, may permanently transfer up to $110,000 from its 
154.9   debt redemption fund to its general fund without making a levy 
154.10  reduction. 
154.11     <b>EFFECTIVE DATE:</b>  This section is effective the day 
154.12  following final enactment. 
154.13     Sec. 13.  [LEVY RESTORATION; INDEPENDENT SCHOOL DISTRICT NO.
154.14  2859, GLENCOE-SILVER LAKE.] 
154.15     (a) Due to the special circumstances of its consolidation, 
154.16  independent school district No. 2859, Glencoe-Silver Lake, may 
154.17  levy up to one-third of the total of the sum from paragraph (b) 
154.18  in each of the fiscal years 2002, 2003, and 2004 due to 
154.19  under-levy in the period immediately following the district's 
154.20  consolidation. 
154.21     (b) For each of the fiscal years of 1999, 2000, and 2001, 
154.22  the amount of the levy is equal to the sum of: 
154.23     (1) the difference between the maximum amount of levy 
154.24  authorized by law for the fiscal year and the amount of levy 
154.25  certified by independent school district No. 2859, 
154.26  Glencoe-Silver Lake, under Minnesota Statutes 1996 and 1997 
154.27  Supplement, section 124.2725; 
154.28     (2) the difference between the maximum amount of levy 
154.29  authorized by law for the fiscal year and the amount of levy 
154.30  certified by independent school district No. 2859, 
154.31  Glencoe-Silver Lake, under Minnesota Statutes, section 126C.42; 
154.32  and 
154.33     (3) the difference between the maximum amount of levy 
154.34  authorized by law for the fiscal year and the amount of levy 
154.35  certified by independent school district No. 2859, 
154.36  Glencoe-Silver Lake, under Minnesota Statutes, section 126C.22. 
155.1      <b>EFFECTIVE DATE:</b>  This section is effective for taxes 
155.2   payable in 2001. 
155.3      Sec. 14.  [INTERMEDIATE DISTRICTS.] 
155.4      Notwithstanding any termination date in the agreements 
155.5   between the intermediate school districts and the Minnesota 
155.6   state colleges and universities board for the use of space in 
155.7   the technical colleges or any law to the contrary, the 
155.8   agreements shall not expire or terminate until June 30, 2010. 
155.9      Sec. 15.  [APPROPRIATIONS.] 
155.10     Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
155.11  LEARNING.] The sums indicated in this section are appropriated 
155.12  from the general fund to the department of children, families, 
155.13  and learning for the fiscal years designated. 
155.14     Subd. 2.  [MATCHING GRANTS FOR EDUCATION PROGRAMS SERVING 
155.15  HOMELESS CHILDREN.] For matching grants for education programs 
155.16  serving homeless children under Laws 1997, First Special Session 
155.17  chapter 4, article 2, section 48: 
155.18       $1,000,000     .....     2001
155.19     This is a one-time appropriation. 
155.20     Subd. 3.  [COOPERATIVE SECONDARY FACILITY; PLANNING AND 
155.21  EXPENSES.] For a grant and administrative expenses to facilitate 
155.22  planning for a cooperative secondary facility under a joint 
155.23  powers agreement for school district Nos. 411, Balaton, 402, 
155.24  Ivanhoe, 404, Lake Benton, 418, Russell, 584, Ruthton, and 409, 
155.25  Tyler: 
155.26         $100,000     .....     2001
155.27     This is a one-time appropriation. 
155.28     Subd. 4.  [BEST PRACTICES SEMINARS.] (a) For best practices 
155.29  graduation rule seminars and other professional development 
155.30  capacity building activities that assure proficiency in teaching 
155.31  and implementation of graduation rule standards: 
155.32       $5,000,000     .....     2001
155.33     (b) The commissioner may make grants to Education Minnesota 
155.34  or other practitioners implementing or developing best 
155.35  practices.  This appropriation is not intended to increase 
155.36  full-time equivalents or complements in the department of 
156.1   children, families, and learning. 
156.2      (c) Of this amount, $500,000 is for the Minnesota 
156.3   children's museum reading program, $1,000,000 is for the 
156.4   Minnesota new teacher project, and $1,000,000 is for an arts via 
156.5   the Internet collaborative project between the Walker art center 
156.6   and the Minneapolis institute of arts. 
156.7      (d) The base budget for this program is $5,000,000 for 
156.8   fiscal years 2002 and 2003.  Of this amount, for fiscal year 
156.9   2002, $1,000,000 is for arts via the Internet collaborative 
156.10  project between the Walker art center and the Minneapolis 
156.11  institute of arts. 
156.12     Subd. 5.  [MAGNET SCHOOL FACILITIES GRANTS.] (a) For 
156.13  one-time magnet school facilities grants: 
156.14       $1,300,000     .....     2001
156.15     (b) Of this amount, $1,200,000 is for the discovery magnet 
156.16  school in independent school district No. 347, Willmar, for 
156.17  one-time facility and other start-up costs to convert a 
156.18  traditional first and second grade school building and program 
156.19  to a magnet school facility serving children from birth through 
156.20  grade 4.  The education program at the magnet facility shall 
156.21  emphasize birth through preschool parent education, all day, 
156.22  every day preschool and kindergarten programming, multiagency 
156.23  collaboration, second-language services for all students, 
156.24  multicultural programming, and parent goal setting. 
156.25     (c) Of this amount, $100,000 is to independent school 
156.26  district No. 696, Ely, to develop environmental curriculum 
156.27  related to the district's proximity to the Boundary Waters Canoe 
156.28  Area and Voyagers National Park. 
156.29     (d) This is a one-time appropriation. 
156.30     Subd. 6.  [GEOGRAPHIC INFORMATION SYSTEMS.] To the director 
156.31  of the office of strategic and long-range planning to enhance 
156.32  the office's use of geographic information systems for 
156.33  educational demographics and other purposes: 
156.34       $156,000     .....     2001   
156.35     This is a one-time appropriation. 
156.36     Subd. 7.  [GRANTS FOR SCHOOLS SERVING STUDENTS WITH 
157.1   CHEMICAL DEPENDENCIES.] For grants to schools serving students 
157.2   with chemical dependencies: 
157.3        $500,000     .....     2001
157.4      The commissioner shall award grants to schools established 
157.5   exclusively to provide teens in recovery from alcohol and drug 
157.6   addiction a four-year high school education while maintaining 
157.7   sobriety.  A sober high school located in Freeborn and a sober 
157.8   high school with campuses located in Edina and Oakdale/Maplewood 
157.9   shall receive up to $5,000 per pupil unit.  This is a one-time 
157.10  appropriation. 
157.11     Subd. 8.  [ASSISTANCE FOR IMMIGRANT FAMILIES.] For grants 
157.12  to organizations that assist immigrants, ages 12 to 24, in 
157.13  becoming literate and acquiring vocational skills: 
157.14         $500,000     .....     2001
157.15     This is a one-time appropriation. 
157.16     Sec. 16.  [REPEALER.] 
157.17     Minnesota Statutes 1999 Supplement, section 124D.1155, 
157.18  subdivision 5, is repealed. 
157.19     <b>EFFECTIVE DATE:</b>  This section is effective the day 
157.20  following final enactment. 
157.21                             ARTICLE 8 
157.22              KINDERGARTEN THROUGH GRADE 12 EDUCATION 
157.23                             LIBRARIES 
157.24     Section 1.  Laws 1997, First Special Session chapter 4, 
157.25  article 8, section 4, as amended by Laws 1998, chapter 398, 
157.26  article 7, section 1, and Laws 1999, chapter 241, article 8, 
157.27  section 1, is amended to read: 
157.28     Sec. 4.  [LIBRARY PROJECT.] 
157.29     Subdivision 1.  [ESTABLISHMENT.] Notwithstanding law to the 
157.30  contrary and subject to approvals in subdivision 2, a public 
157.31  library may operate as a library project jointly with the school 
157.32  library at Nashwauk-Keewatin high school, located in the city of 
157.33  Nashwauk.  The public library is established to serve persons 
157.34  within the boundaries of independent school district No. 319, 
157.35  except the city of Keewatin. 
157.36     Subd. 2.  [APPROVALS.] Operation of the public library is 
158.1   contingent upon the governing bodies of cities, towns, and 
158.2   unorganized townships within the geographical boundaries of 
158.3   independent school district No. 319, except for the city of 
158.4   Keewatin, entering into a joint powers agreement under Minnesota 
158.5   Statutes 1998, section 471.59, to accomplish the purpose of this 
158.6   section.  The joint powers agreement must provide for continuing 
158.7   the library project if one party or more parties to the 
158.8   agreement withdraws from or fails to enter into the agreement.  
158.9   For the purposes of this subdivision, the Itasca county board is 
158.10  designated as the governing body for the unorganized townships. 
158.11     Subd. 3.  [BOARD; APPOINTMENTS.] The joint powers agreement 
158.12  in subdivision 2 shall provide for a library board of up to 
158.13  seven members as follows:  two members appointed by the school 
158.14  board of independent school district No. 319, one member 
158.15  appointed by each town board located within independent school 
158.16  district No. 319 boundaries that is a signatory to the joint 
158.17  powers agreement, one member appointed by the council of the 
158.18  city of Nashwauk, and one member appointed by the Itasca county 
158.19  board to represent the unorganized towns within the school 
158.20  district territory. 
158.21     Subd. 4.  [BOARD TERMS; COMPENSATION.] The library board 
158.22  members shall serve for the term of the library project or to a 
158.23  maximum of three consecutive three-year terms.  An appointing 
158.24  authority may remove for misconduct or neglect any member it has 
158.25  appointed to the board and may replace that member by 
158.26  appointment.  Board members shall receive no compensation for 
158.27  their services but may be reimbursed for actual and necessary 
158.28  travel expenses incurred in the discharge of library board 
158.29  duties and activities. 
158.30     Subd. 5.  [FUNDING.] For taxes payable in 1998, 1999, 2000, 
158.31  2001, 2002, and 2003 only, and provided that the joint powers 
158.32  agreement under subdivision 2 has been executed by September 1 
158.33  of the previous calendar year, the library board may levy a tax 
158.34  in an amount up to $25,000 annually on property located within 
158.35  the boundaries of independent school district No. 319, except 
158.36  the city of Keewatin.  The Itasca county auditor shall collect 
159.1   the tax and distribute it to the library board.  The levy shall 
159.2   be assessed against the individual members of the joint powers 
159.3   agreement.  The money may be used for library staff and for the 
159.4   purchase of library materials, including computer software.  The 
159.5   levy must also fund the amount necessary to receive bookmobile 
159.6   services from the Arrowhead regional library system.  For taxes 
159.7   payable in 1998, 1999, 2000, 2001, 2002, and 2003 only, the 
159.8   county may not levy under Minnesota Statutes, section 134.07, 
159.9   for the areas described in this section. 
159.10     Subd. 6.  [BUILDING.] The school district shall provide the 
159.11  physical space and costs associated with operating the library 
159.12  including, but not limited to, heat, light, telephone service, 
159.13  and maintenance. 
159.14     Subd. 7.  [ORGANIZATION.] Immediately after appointment, 
159.15  the library board shall organize by electing one of its number 
159.16  as president and one as secretary, and it may appoint other 
159.17  officers it finds necessary. 
159.18     Subd. 8.  [DUTIES.] The library board shall adopt bylaws 
159.19  and regulations for the library and for the conduct of its 
159.20  business as may be expedient and conformable to law.  It shall 
159.21  have exclusive control of the expenditure of all money collected 
159.22  for it.  The library board shall appoint a qualified library 
159.23  director and other staff, establish the compensation of 
159.24  employees, and remove any of them for cause.  The library board 
159.25  may contract with the school board, the regional library board, 
159.26  or the city in which the library is located to provide 
159.27  personnel, fiscal, or administrative services.  The contract 
159.28  shall state the personnel, fiscal, and administrative services 
159.29  and payments to be provided by each party. 
159.30     Subd. 9.  [CRITERIA.] The library shall meet all 
159.31  requirements in statutes and rules applicable to public 
159.32  libraries and school media centers.  A media supervisor licensed 
159.33  by the board of teaching may be the director of the library.  
159.34  Public parking, restrooms, drinking water, and other necessities 
159.35  shall be easily accessible to library patrons. 
159.36     <b>EFFECTIVE DATE:</b>  This section is effective the day 
160.1   following final enactment. 
160.2      Sec. 2.  Laws 1999, chapter 241, article 8, section 4, 
160.3   subdivision 4, is amended to read: 
160.4      Subd. 4.  [REGIONAL LIBRARY TELECOMMUNICATIONS AID.] For 
160.5   grants to regional public library systems under Minnesota 
160.6   Statutes, section 125B.20, subdivision 3: 
160.7        $1,200,000     .....     2000 
160.8        $1,200,000 $3,606,000    .....     2001 
160.9      Any balance in the first year does not cancel but is 
160.10  available in the second year. 
160.11     Notwithstanding Minnesota Statutes, section 125B.20, 
160.12  subdivision 3, this appropriation may be used for video lines in 
160.13  addition to the uses under Minnesota Statutes, section 125B.20, 
160.14  subdivision 3. 
160.15     The budget base for this program for fiscal years 2002 and 
160.16  2003 is $1,200,000 for each year. 
160.17     Sec. 3.  Laws 1999, chapter 241, article 8, section 4, 
160.18  subdivision 5, is amended to read: 
160.19     Subd. 5.  [LIBRARY FOR THE BLIND.] For compact shelving, 
160.20  technology, and staffing for the Minnesota library for the blind 
160.21  and physically handicapped: 
160.22       $212,000     .....     2000 
160.23     This appropriation is available until June 30, 2001. 
160.24     <b>EFFECTIVE DATE:</b>  This section is effective the day 
160.25  following final enactment. 
160.26                             ARTICLE 9 
160.27              KINDERGARTEN THROUGH GRADE 12 EDUCATION
160.28                           STATE AGENCIES 
160.29     Section 1.  Laws 1999, chapter 241, article 10, section 6, 
160.30  is amended to read: 
160.31     Sec. 6.  [APPROPRIATIONS; LOLA AND RUDY PERPICH MINNESOTA 
160.32  CENTER FOR ARTS EDUCATION.] 
160.33     The sums indicated in this section are appropriated from 
160.34  the general fund to the center for arts education for the fiscal 
160.35  years designated: 
160.36       $7,239,000     .....     2000
161.1        $7,400,000     .....     2001
161.2      Of each year's appropriation, $154,000 is to fund artist 
161.3   and arts organization participation in the education residency 
161.4   and education technology projects, $75,000 is for school support 
161.5   for the residency project, $121,000 is for further development 
161.6   of the partners:  arts and school for students (PASS) program, 
161.7   including pilots, and $220,000 $110,000 is to fund the center 
161.8   for arts education base for asset preservation and facility 
161.9   repair.  The guidelines for the education residency project and 
161.10  the pass program shall be developed and defined by the center 
161.11  for arts education in cooperation with the Minnesota arts 
161.12  board.  The Minnesota arts board shall participate in the review 
161.13  and allocation process.  The center for arts education and the 
161.14  Minnesota arts board shall cooperate to fund these projects. 
161.15     Any balance in the first year does not cancel but is 
161.16  available in the second year. 
161.17     <b>EFFECTIVE DATE:</b>  This section is effective the day 
161.18  following final enactment. 
161.19     Sec. 2.  [DEPARTMENT OF CHILDREN, FAMILIES, AND LEARNING.] 
161.20     (a) The sums indicated in this section are appropriated 
161.21  from the general fund unless otherwise indicated to the 
161.22  department of children, families, and learning for the fiscal 
161.23  years designated. 
161.24       $32,316,000     .....     2000 
161.25       $29,785,000     .....     2001 
161.26     (b) Any balance the first year does not cancel but is 
161.27  available in the second year. 
161.28     (c) $21,000 each year is from the trunk highway fund. 
161.29     (d) $673,000 in 2000 and $678,000 in 2001 is for the board 
161.30  of teaching. 
161.31     (e) Notwithstanding Minnesota Statutes, section 15.53, 
161.32  subdivision 2, the commissioner of children, families, and 
161.33  learning may contract with a school district for a period no 
161.34  longer than five consecutive years to work in the development or 
161.35  implementation of the graduation rule.  The commissioner may 
161.36  contract for services and expertise as necessary.  The contracts 
162.1   are not subject to Minnesota Statutes, section 16B.06. 
162.2      (f) $165,000 in 2000 is for the state board of education.  
162.3   Any functions of the state board of education that are not 
162.4   specifically transferred to another agency are transferred to 
162.5   the department of children, families, and learning under 
162.6   Minnesota Statutes, section 15.039.  For the position that is 
162.7   classified, upon transferring the responsibilities, the current 
162.8   incumbent is appointed to the classified position without exam 
162.9   or probationary period. 
162.10     (g) $2,000,000 in 2000 is for litigation costs and may only 
162.11  be used for those purposes.  This appropriation is available 
162.12  until June 30, 2001.  This is a one-time appropriation. 
162.13     <b>EFFECTIVE DATE:</b>  This section is effective retroactive to 
162.14  July 1, 1999. 
162.15     Sec. 3.  [REPEALER.] 
162.16     Laws 1999, chapter 241, article 10, section 5, is repealed 
162.17  retroactive to July 1, 1999. 
162.18     <b>EFFECTIVE DATE:</b>  This section is effective retroactive to 
162.19  July 1, 1999. 
162.20                             ARTICLE 10 
162.21              KINDERGARTEN THROUGH GRADE 12 EDUCATION
162.22          TECHNICAL, CONFORMING, AND CLARIFYING AMENDMENTS
162.23     Section 1.  Minnesota Statutes 1998, section 120A.22, 
162.24  subdivision 3, is amended to read: 
162.25     Subd. 3.  [PARENT DEFINED; RESIDENCY DETERMINED.] (a) In 
162.26  this section and sections 120A.24, and 120A.26, and 120A.41, 
162.27  "parent" means a parent, guardian, or other person having legal 
162.28  custody of a child.  
162.29     (b) In sections 125A.03 to 125A.24 and 125A.65, "parent" 
162.30  means a parent, guardian, or other person having legal custody 
162.31  of a child under age 18.  For an unmarried pupil age 18 or over, 
162.32  "parent" means the pupil unless a guardian or conservator has 
162.33  been appointed, in which case it means the guardian or 
162.34  conservator. 
162.35     (c) For purposes of sections 125A.03 to 125A.24 and 
162.36  125A.65, the school district of residence for an unmarried pupil 
163.1   age 18 or over who is a parent under paragraph (b) and who is 
163.2   placed in a center for care and treatment, shall be the school 
163.3   district in which the pupil's biological or adoptive parent or 
163.4   designated guardian resides. 
163.5      (d) For a married pupil age 18 or over, the school district 
163.6   of residence is the school district in which the married pupil 
163.7   resides. 
163.8      Sec. 2.  Minnesota Statutes 1998, section 123B.02, is 
163.9   amended by adding a subdivision to read: 
163.10     Subd. 5a.  [TRESPASSES ON SCHOOL PROPERTY.] Trespasses on 
163.11  school property shall be governed according to section 609.605, 
163.12  subdivision 4. 
163.13     Sec. 3.  Minnesota Statutes 1998, section 123B.85, 
163.14  subdivision 1, is amended to read: 
163.15     Subdivision 1.  [APPLICATION.] The following words and 
163.16  terms in sections 121A.585, 121A.59, 123B.84 to 123B.87, and 
163.17  123B.89 to 123B.90, and 123B.91, shall have the following 
163.18  meanings ascribed to them. 
163.19     Sec. 4.  Minnesota Statutes 1999 Supplement, section 
163.20  124D.128, subdivision 2, is amended to read: 
163.21     Subd. 2.  [COMMISSIONER DESIGNATION.] An area learning 
163.22  center designated by the state must be a site.  To be 
163.23  designated, a district or center must demonstrate to the 
163.24  commissioner that it will: 
163.25     (1) provide a program of instruction that permits pupils to 
163.26  receive instruction throughout the entire year; and 
163.27     (2) maintain a record system that, for purposes of section 
163.28  124.17 126C.05, permits identification of membership 
163.29  attributable to pupils participating in the program.  The record 
163.30  system and identification must ensure that the program will not 
163.31  have the effect of increasing the total number of pupil units 
163.32  attributable to an individual pupil as a result of a learning 
163.33  year program. 
163.34     Sec. 5.  Minnesota Statutes 1998, section 124D.454, 
163.35  subdivision 2, is amended to read: 
163.36     Subd. 2.  [DEFINITIONS.] For the purposes of this 
164.1   section and section 125A.77, the definitions in this subdivision 
164.2   apply. 
164.3      (a) "Base year" for fiscal year 1996 means fiscal year 1995.
164.4   Base year for later fiscal years means the second fiscal year 
164.5   preceding the fiscal year for which aid will be paid. 
164.6      (b) "Basic revenue" has the meaning given it in section 
164.7   126C.10, subdivision 2.  For the purposes of computing basic 
164.8   revenue pursuant to this section, each child with a disability 
164.9   shall be counted as prescribed in section 126C.05, subdivision 1.
164.10     (c) "Average daily membership" has the meaning given it in 
164.11  section 126C.05. 
164.12     (d) "Program growth factor" means 1.00 for fiscal year 1998 
164.13  and later. 
164.14     (e) "Aid percentage factor" means 60 percent for fiscal 
164.15  year 1996, 70 percent for fiscal year 1997, 80 percent for 
164.16  fiscal year 1998, 90 percent for fiscal year 1999, and 100 
164.17  percent for fiscal year 2000 and later. 
164.18     Sec. 6.  Minnesota Statutes 1998, section 124D.454, 
164.19  subdivision 10, is amended to read: 
164.20     Subd. 10.  [EXCLUSION.] A district shall not receive aid 
164.21  pursuant to section 124D.453, or 125A.76, or 125A.77 for 
164.22  salaries, supplies, travel or equipment for which the district 
164.23  receives aid pursuant to this section. 
164.24     Sec. 7.  Minnesota Statutes 1999 Supplement, section 
164.25  125A.023, subdivision 3, is amended to read: 
164.26     Subd. 3.  [DEFINITIONS.] For purposes of this section and 
164.27  section 125A.027, the following terms have the meanings given 
164.28  them: 
164.29     (a) "Health plan" means: 
164.30     (1) a health plan under section 62Q.01, subdivision 3; 
164.31     (2) a county-based purchasing plan under section 256B.692; 
164.32     (3) a self-insured health plan established by a local 
164.33  government under section 471.617; or 
164.34     (4) self-insured health coverage provided by the state to 
164.35  its employees or retirees. 
164.36     (b) For purposes of this section, "health plan company" 
165.1   means an entity that issues a health plan as defined in 
165.2   paragraph (a). 
165.3      (c) "Individual interagency intervention plan" means a 
165.4   standardized written plan describing those programs or services 
165.5   and the accompanying funding sources available to eligible 
165.6   children with disabilities. 
165.7      (d) "Interagency intervention service system" means a 
165.8   system that coordinates services and programs required in state 
165.9   and federal law to meet the needs of eligible children with 
165.10  disabilities ages three to 21, including: 
165.11     (1) services provided under the following programs or 
165.12  initiatives administered by state or local agencies: 
165.13     (i) the maternal and child health program under title V of 
165.14  the Social Security Act, United States Code, title 42, sections 
165.15  701 to 709; 
165.16     (ii) the Individuals with Disabilities Education Act under 
165.17  United States Code, title 20, chapter 33, subchapter II, 
165.18  sections 1411 to 1420; 
165.19     (iii) medical assistance under the Social Security Act, 
165.20  United States Code, title 42, chapter 7, subchapter XIX, section 
165.21  1396, et seq.; 
165.22     (iv) the Developmental Disabilities Assistance and Bill of 
165.23  Rights Act, United States Code, title 42, chapter 75, subchapter 
165.24  II, sections 6021 to 6030, Part B; 
165.25     (v) the Head Start Act, United States Code, title 42, 
165.26  chapter 105, subchapter II, sections 9831 to 9852; 
165.27     (vi) rehabilitation services provided under chapter 268A; 
165.28     (vii) Juvenile Court Act services provided under sections 
165.29  260.011 to 260.91; 260B.001 to 260B.446; and 260C.001 to 
165.30  260C.451; 
165.31     (viii) the children's mental health collaboratives under 
165.32  section 245.493; 
165.33     (ix) the family service collaboratives under section 
165.34  124D.23; 
165.35     (x) the family community support plan under section 
165.36  245.4881, subdivision 4; 
166.1      (xi) the MinnesotaCare program under chapter 256L; 
166.2      (xii) the community health services grants under chapter 
166.3   145; 
166.4      (xiii) the Community Social Services Act funding under the 
166.5   Social Security Act, United States Code, title 42, sections 1397 
166.6   to 1397f; and 
166.7      (xiv) the community interagency transition interagency 
166.8   committees under section 125A.22; 
166.9      (2) services provided under a health plan in conformity 
166.10  with an individual family service plan or an individual 
166.11  education plan; and 
166.12     (3) additional appropriate services that local agencies and 
166.13  counties provide on an individual need basis upon determining 
166.14  eligibility and receiving a request from the interagency early 
166.15  intervention committee and the child's parent. 
166.16     (e) "Children with disabilities" has the meaning given in 
166.17  section 125A.02. 
166.18     (f) A "standardized written plan" means those individual 
166.19  services or programs available through the interagency 
166.20  intervention service system to an eligible child other than the 
166.21  services or programs described in the child's individual 
166.22  education plan or the child's individual family service plan. 
166.23     Sec. 8.  Minnesota Statutes 1999 Supplement, section 
166.24  125A.023, subdivision 5, is amended to read: 
166.25     Subd. 5.  [INTERVENTION DEMONSTRATION PROJECTS.] (a) The 
166.26  commissioner of children, families, and learning, based on 
166.27  recommendations from the state interagency committee, shall 
166.28  issue a request for proposals by January 1, 1999, for grants to 
166.29  the governing boards of interagency early intervention 
166.30  committees under section 125A.027 or a combination of one or 
166.31  more counties and school districts to establish five voluntary 
166.32  interagency intervention demonstration projects.  One grant 
166.33  shall be used to implement a coordinated service system for all 
166.34  eligible children with disabilities up to age five who received 
166.35  services under sections 125A.26 to 125A.48.  One grant shall be 
166.36  used to implement a coordinated service system for a population 
167.1   of minority children with disabilities from ages 12 to 21, who 
167.2   may have behavioral problems and are in need of transitional 
167.3   services.  Each project must be operational by July 1, 1999.  
167.4   The governing boards of the interagency early intervention 
167.5   committees and the counties and school districts receiving 
167.6   project grants must develop efficient ways to coordinate 
167.7   services and funding for children with disabilities ages three 
167.8   to 21, consistent with the requirements of this section and 
167.9   section 125A.027 and the guidelines developed by the state 
167.10  interagency committee under this section. 
167.11     (b) The state interagency committee shall evaluate the 
167.12  demonstration projects and provide the evaluation results to 
167.13  interagency early intervention committees. 
167.14     Sec. 9.  Minnesota Statutes 1999 Supplement, section 
167.15  125A.08, is amended to read: 
167.16     125A.08 [SCHOOL DISTRICT OBLIGATIONS.] 
167.17     (a) As defined in this section, to the extent required by 
167.18  federal law as of July 1, 2000, every district must ensure the 
167.19  following: 
167.20     (1) all students with disabilities are provided the special 
167.21  instruction and services which are appropriate to their needs.  
167.22  Where the individual education plan team has determined 
167.23  appropriate goals and objectives based on the student's needs, 
167.24  including the extent to which the student can be included in the 
167.25  least restrictive environment, and where there are essentially 
167.26  equivalent and effective instruction, related services, or 
167.27  assistive technology devices available to meet the student's 
167.28  needs, cost to the district may be among the factors considered 
167.29  by the team in choosing how to provide the appropriate services, 
167.30  instruction, or devices that are to be made part of the 
167.31  student's individual education plan.  The individual education 
167.32  plan team shall consider and may authorize services covered by 
167.33  medical assistance according to section 256B.0625, subdivision 
167.34  26.  The student's needs and the special education instruction 
167.35  and services to be provided must be agreed upon through the 
167.36  development of an individual education plan.  The plan must 
168.1   address the student's need to develop skills to live and work as 
168.2   independently as possible within the community.  By grade 9 or 
168.3   age 14, the plan must address the student's needs for transition 
168.4   from secondary services to post-secondary education and 
168.5   training, employment, community participation, recreation, and 
168.6   leisure and home living.  In developing the plan, districts must 
168.7   inform parents of the full range of transitional goals and 
168.8   related services that should be considered.  The plan must 
168.9   include a statement of the needed transition services, including 
168.10  a statement of the interagency responsibilities or linkages or 
168.11  both before secondary services are concluded; 
168.12     (2) children with a disability under age five and their 
168.13  families are provided special instruction and services 
168.14  appropriate to the child's level of functioning and needs; 
168.15     (3) children with a disability and their parents or 
168.16  guardians are guaranteed procedural safeguards and the right to 
168.17  participate in decisions involving identification, assessment 
168.18  including assistive technology assessment, and educational 
168.19  placement of children with a disability; 
168.20     (4) eligibility and needs of children with a disability are 
168.21  determined by an initial assessment or reassessment, which may 
168.22  be completed using existing data under United States Code, title 
168.23  20, section 33, et seq.; 
168.24     (5) to the maximum extent appropriate, children with a 
168.25  disability, including those in public or private institutions or 
168.26  other care facilities, are educated with children who are not 
168.27  disabled, and that special classes, separate schooling, or other 
168.28  removal of children with a disability from the regular 
168.29  educational environment occurs only when and to the extent that 
168.30  the nature or severity of the disability is such that education 
168.31  in regular classes with the use of supplementary services cannot 
168.32  be achieved satisfactorily; 
168.33     (6) in accordance with recognized professional standards, 
168.34  testing and evaluation materials, and procedures used for the 
168.35  purposes of classification and placement of children with a 
168.36  disability are selected and administered so as not to be 
169.1   racially or culturally discriminatory; and 
169.2      (7) the rights of the child are protected when the parents 
169.3   or guardians are not known or not available, or the child is a 
169.4   ward of the state. 
169.5      (b) For paraprofessionals employed to work in programs for 
169.6   students with disabilities, the school board in each district 
169.7   shall ensure that: 
169.8      (1) before or immediately upon employment, each 
169.9   paraprofessional develops sufficient knowledge and skills in 
169.10  emergency procedures, building orientation, roles and 
169.11  responsibilities, confidentiality, vulnerability, and 
169.12  reportability, among other things, to begin meeting the needs of 
169.13  the students with whom the paraprofessional works; 
169.14     (2) annual training opportunities are available to enable 
169.15  the paraprofessional to continue to further develop the 
169.16  knowledge and skills that are specific to the students with whom 
169.17  the paraprofessional works, including understanding 
169.18  disabilities, following lesson plans, and implementing follow-up 
169.19  instructional procedures and activities; and 
169.20     (3) a districtwide process obligates each paraprofessional 
169.21  to work under the ongoing direction of a licensed teacher and, 
169.22  where appropriate and possible, the supervision of a school 
169.23  nurse. 
169.24     Sec. 10.  Minnesota Statutes 1998, section 125A.76, 
169.25  subdivision 7, is amended to read: 
169.26     Subd. 7.  [REVENUE ALLOCATION FROM COOPERATIVE CENTERS AND 
169.27  INTERMEDIATES.] For the purposes of this section and section 
169.28  125A.77, a special education cooperative or an intermediate 
169.29  district must allocate its approved expenditures for special 
169.30  education programs among participating school districts. 
169.31     Sec. 11.  Minnesota Statutes 1999 Supplement, section 
169.32  125A.79, subdivision 8, is amended to read: 
169.33     Subd. 8.  [OUT-OF-STATE TUITION.] For children who are 
169.34  residents of the state, receive services under section 125A.76, 
169.35  subdivisions 1 and 2, and are placed in a care and treatment 
169.36  facility by court action in a state that does not have a 
170.1   reciprocity agreement with the commissioner under section 
170.2   125A.115 125A.155, the resident school district shall submit the 
170.3   balance of the tuition bills, minus the amount of the basic 
170.4   revenue, as defined by section 126C.10, subdivision 2, of the 
170.5   district for the child and the special education aid, and any 
170.6   other aid earned on behalf of the child. 
170.7      Sec. 12.  Minnesota Statutes 1999 Supplement, section 
170.8   125A.80, is amended to read: 
170.9      125A.80 [UNIFORM BILLING SYSTEM FOR THE EDUCATION COSTS OF 
170.10  OUT-OF-HOME PLACED STUDENTS.] 
170.11     The commissioner, in cooperation with the commissioners of 
170.12  human services and corrections and with input from appropriate 
170.13  billing system users, shall develop and implement a uniform 
170.14  billing system for school districts and other agencies, 
170.15  including private providers, who provide the educational 
170.16  services for students who are placed out of the home.  The 
170.17  uniform billing system must: 
170.18     (1) allow for the proper and timely billing to districts by 
170.19  service providers with a minimum amount of district 
170.20  administration; 
170.21     (2) allow districts to bill the state for certain types of 
170.22  special education and regular education services as provided by 
170.23  law; 
170.24     (3) provide flexibility for the types of services that are 
170.25  provided for children placed out of the home, including day 
170.26  treatment services; 
170.27     (4) allow the commissioner to track the type, cost, and 
170.28  quality of services provided for children placed out of the 
170.29  home; 
170.30     (5) conform existing special education and proposed regular 
170.31  education billing procedures; 
170.32     (6) provide a uniform reporting standard of per diem rates; 
170.33     (7) determine allowable expenses and maximum reimbursement 
170.34  rates for the state reimbursement of care and treatment services 
170.35  according to section 124D.701; and 
170.36     (8) provide a process for the district to appeal to the 
171.1   commissioner tuition bills submitted to districts and to the 
171.2   state. 
171.3      Sec. 13.  Minnesota Statutes 1999 Supplement, section 
171.4   125B.21, subdivision 3, is amended to read: 
171.5      Subd. 3.  [CRITERIA.] In addition to responsibilities of 
171.6   the council under Laws 1993, First Special Session chapter 2, as 
171.7   amended, the telecommunications council shall evaluate grant 
171.8   applications under section 124C.74 125B.20 and applications from 
171.9   district organizations using the following criteria: 
171.10     (1) evidence of cooperative arrangements with other 
171.11  post-secondary institutions, school districts, and community and 
171.12  regional libraries in the geographic region; 
171.13     (2) plans for shared classes and programs; 
171.14     (3) avoidance of network duplication; 
171.15     (4) evidence of efficiencies to be achieved in delivery of 
171.16  instruction due to use of telecommunications; 
171.17     (5) a plan for development of a list of all courses 
171.18  available in the region for delivery at a distance; 
171.19     (6) a plan for coordinating and scheduling courses; and 
171.20     (7) a plan for evaluation of costs, access, and outcomes. 
171.21     Sec. 14.  Minnesota Statutes 1998, section 126C.12, 
171.22  subdivision 2, is amended to read: 
171.23     Subd. 2.  [INSTRUCTOR DEFINED.] Primary instructor means a 
171.24  public employee licensed by the board of teaching whose duties 
171.25  are full-time instruction, excluding a teacher for whom 
171.26  categorical aids are received pursuant to sections section 
171.27  125A.76 and 125A.77.  Except as provided in section 122A.68, 
171.28  subdivision 6, instructor does not include supervisory and 
171.29  support personnel, except school social workers as defined in 
171.30  section 122A.15.  An instructor whose duties are less than 
171.31  full-time instruction must be included as an equivalent only for 
171.32  the number of hours of instruction in grades kindergarten 
171.33  through 6. 
171.34     Sec. 15.  Minnesota Statutes 1998, section 127A.05, 
171.35  subdivision 4, is amended to read: 
171.36     Subd. 4.  [ADMINISTRATIVE RULES.] The commissioner may 
172.1   adopt new rules and amend them or amend any existing rules only 
172.2   under specific authority and consistent with the requirements of 
172.3   chapter 14.  The commissioner may repeal any existing 
172.4   rules adopted by the commissioner.  Notwithstanding the 
172.5   provisions of section 14.05, subdivision 4, the commissioner may 
172.6   grant a variance to rules adopted by the commissioner upon 
172.7   application by a school district for purposes of implementing 
172.8   experimental programs in learning or school management.  This 
172.9   subdivision shall not prohibit the commissioner from making 
172.10  technical changes or corrections to adopted rules adopted by the 
172.11  commissioner. 
172.12     Sec. 16.  Minnesota Statutes 1998, section 127A.41, 
172.13  subdivision 8, is amended to read: 
172.14     Subd. 8.  [APPROPRIATION TRANSFERS.] If a direct 
172.15  appropriation from the general fund to the department for any 
172.16  education aid or grant authorized in this chapter and chapters 
172.17  122A, 123A, 123B, 124D, 126C, and 134, excluding appropriations 
172.18  under sections 124D.135, 124D.14, 124D.16, 124D.20, 124D.21, 
172.19  124D.22, 124D.52, 124D.53, 124D.54, 124D.55, and 124D.56, 
172.20  exceeds the amount required, the commissioner may transfer the 
172.21  excess to any education aid or grant appropriation that is 
172.22  insufficient.  However, section 126C.20 applies to a deficiency 
172.23  in the direct appropriation for general education aid.  Excess 
172.24  appropriations must be allocated proportionately among aids or 
172.25  grants that have insufficient appropriations.  The commissioner 
172.26  of finance shall make the necessary transfers among 
172.27  appropriations according to the determinations of the 
172.28  commissioner.  If the amount of the direct appropriation for the 
172.29  aid or grant plus the amount transferred according to this 
172.30  subdivision is insufficient, the commissioner shall prorate the 
172.31  available amount among eligible districts.  The state is not 
172.32  obligated for any additional amounts.  
172.33     Sec. 17.  Minnesota Statutes 1998, section 127A.41, 
172.34  subdivision 9, is amended to read: 
172.35     Subd. 9.  [APPROPRIATION TRANSFERS FOR COMMUNITY EDUCATION 
172.36  PROGRAMS.] If a direct appropriation from the general fund to 
173.1   the department of children, families, and learning for an 
173.2   education aid or grant authorized under section 
173.3   124D.135, 124D.14, 124D.16, 124D.20, 124D.21, 124D.22, 124D.52, 
173.4   124D.53, 124D.54, 124D.55, or 124D.56 exceeds the amount 
173.5   required, the commissioner of children, families, and learning 
173.6   may transfer the excess to any education aid or grant 
173.7   appropriation that is insufficiently funded under these sections.
173.8   Excess appropriations shall be allocated proportionately among 
173.9   aids or grants that have insufficient appropriations.  The 
173.10  commissioner of finance shall make the necessary transfers among 
173.11  appropriations according to the determinations of the 
173.12  commissioner of children, families, and learning.  If the amount 
173.13  of the direct appropriation for the aid or grant plus the amount 
173.14  transferred according to this subdivision is insufficient, the 
173.15  commissioner shall prorate the available amount among eligible 
173.16  districts.  The state is not obligated for any additional 
173.17  amounts. 
173.18     Sec. 18.  Minnesota Statutes 1999 Supplement, section 
173.19  181A.04, subdivision 6, is amended to read: 
173.20     Subd. 6.  A high school student under the age of 18 must 
173.21  not be permitted to work after 11:00 p.m. on an evening before a 
173.22  school day or before 5:00 a.m. on a school day, except as 
173.23  permitted by section 181A.07, subdivisions 1, 2, 3, and 4.  If a 
173.24  high school student under the age of 18 has supplied the 
173.25  employer with a note signed by the parent or guardian of the 
173.26  student, the student may be permitted to work until 11:30 p.m. 
173.27  on the evening before a school day and beginning at 4:30 a.m. on 
173.28  a school day. 
173.29     For the purpose of this subdivision, a high school student 
173.30  does not include a student enrolled in an alternative education 
173.31  program approved by the commissioner of children, families, and 
173.32  learning or an area learning center, including area learning 
173.33  centers under sections 123A.05 to 123A.08 or according to 
173.34  section 122A.164 122A.163. 
173.35     Sec. 19.  Laws 1999, chapter 241, article 1, section 69, is 
173.36  amended to read: 
174.1      Sec. 69.  [REPEALER.] 
174.2      (a) Minnesota Statutes 1998, sections 123B.89; and 123B.92, 
174.3   subdivisions 2, 4, 6, 7, 8, and 10, are repealed. 
174.4      (b) Minnesota Statutes 1998, section 120B.05, is repealed 
174.5   effective for revenue for fiscal year 2000. 
174.6      (c) Minnesota Statutes 1998, section 124D.65, subdivisions 
174.7   1, 2, and 3, are repealed effective for revenue for fiscal year 
174.8   2001. 
174.9      (d) Minnesota Statutes 1998, sections 124D.67; 126C.05, 
174.10  subdivision 4; and 126C.06, are repealed effective the day 
174.11  following final enactment. 
174.12     This appropriation is available until June 30, 2001. 
174.13     Sec. 20.  Laws 1999, chapter 241, article 9, section 49, is 
174.14  amended to read: 
174.15     Sec. 49.  [TRANSITION.] 
174.16     Notwithstanding Minnesota Statutes, section 15.0597, the 
174.17  terms of persons who are members appointed by the governor 
174.18  before the effective date of section 8 37, shall have their term 
174.19  end on July 31 of the year following the last year of their 
174.20  appointment. 
174.21     Sec. 21.  [REVISOR INSTRUCTION.] 
174.22     In the next and subsequent editions of Minnesota Statutes, 
174.23  the revisor shall renumber section 123B.02, subdivision 12, as 
174.24  120A.22, subdivision 1a.  The revisor shall correct all 
174.25  cross-references to be consistent with the renumbering. 
174.26     Sec. 22.  [REPEALER.] 
174.27     Laws 1999, chapter 241, article 9, sections 35 and 36, and 
174.28  chapter 245, article 4, section 3, are repealed. 
174.29                             ARTICLE 11 
174.30                          HIGHER EDUCATION 
174.31  Section 1.  [HIGHER EDUCATION APPROPRIATIONS.] 
174.32     The sums in the columns marked "APPROPRIATIONS" are 
174.33  appropriated from the general fund, or other named fund, to the 
174.34  agencies and for the purposes specified in this article.  The 
174.35  listing of an amount under the figure "2000" or "2001" in this 
174.36  article indicates that the amount is appropriated to be 
175.1   available for the fiscal year ending June 30, 2000, or June 30, 
175.2   2001, respectively.  "The first year" is fiscal year 2000.  "The 
175.3   second year" is fiscal year 2001.  "The biennium" is fiscal 
175.4   years 2000 and 2001. 
175.5                           SUMMARY BY FUND
175.6                             2000          2001           TOTAL
175.7   General            $    5,800,000 $    8,200,000 $   14,000,000
175.8                    SUMMARY BY AGENCY - ALL FUNDS
175.9                             2000          2001           TOTAL
175.10  Board of Trustees of the Minnesota
175.11  State Colleges and Universities
175.12                          5,800,000      7,380,000     13,180,000
175.13  Board of Regents of the University
175.14  of Minnesota
175.15                            -0-            820,000        820,000
175.16                                            APPROPRIATIONS 
175.17                                         Available for the Year 
175.18                                             Ending June 30 
175.19                                            2000         2001 
175.20  Sec. 2.  BOARD OF TRUSTEES OF THE
175.21  MINNESOTA STATE COLLEGES AND UNIVERSITIES
175.22  Subdivision 1.  Total
175.23  Appropriation                          5,800,000      7,380,000
175.24  The amounts that may be spent from this 
175.25  appropriation for each purpose are 
175.26  specified in the following subdivisions.
175.27  Subd. 2.  Deficiency                                
175.28  Appropriations                                                 
175.29       5,800,000      5,800,000
175.30  This is a deficiency appropriation for 
175.31  increased enrollments.  This 
175.32  appropriation is in addition to the 
175.33  appropriation in Laws 1999, chapter 
175.34  214, article 1, section 3, subdivision 
175.35  1.  This is a one-time appropriation.  
175.36  Subd. 3.  Farm Business     
175.37  Management                                                     
175.38         -0-            250,000
175.39  This appropriation is to provide 
175.40  educational and management services to 
175.41  a greater number of farmers facing 
175.42  financial hardship in the farm wrap and 
175.43  farm help network service areas. 
175.44  Subd. 4.  Urban Teacher     
175.45  Preparation                                                    
175.46         -0-          1,250,000
176.1   This appropriation is for the 
176.2   development and implementation of the 
176.3   secondary and early childhood education 
176.4   components of the program established 
176.5   by this subdivision. 
176.6   (a) The board shall offer a program of 
176.7   teacher preparation leading to 
176.8   licensure, involving Metropolitan State 
176.9   University, Inver Hills Community 
176.10  College, and Minneapolis Community and 
176.11  Technical College.  The institutions 
176.12  involved shall enter into an agreement 
176.13  whereby Inver Hills Community College 
176.14  and Minneapolis Community and Technical 
176.15  College shall provide the first two 
176.16  years of the program, and Metropolitan 
176.17  State University shall provide the 
176.18  final two years of the program.  In 
176.19  fall semester 2000, Minneapolis 
176.20  Community and Technical College and 
176.21  Inver Hills Community College shall 
176.22  offer a preeducation program.  After 
176.23  development of the program in fiscal 
176.24  year 2001, Metropolitan State 
176.25  University shall begin its licensure 
176.26  program in fall semester 2001.  The 
176.27  program shall focus on preparing 
176.28  teachers to meet the specific needs of 
176.29  urban and inner-ring suburban schools 
176.30  and shall emphasize significant direct 
176.31  classroom teaching experience and 
176.32  mentoring throughout each student's 
176.33  preparation.  The program may also 
176.34  focus on the professional development 
176.35  of pretenure teachers.  Metropolitan 
176.36  State University, Inver Hills Community 
176.37  College, and Minneapolis Community and 
176.38  Technical College are encouraged to 
176.39  enter into partnerships with urban and 
176.40  inner-ring suburban schools to provide 
176.41  for significant involvement of 
176.42  elementary and secondary teachers in 
176.43  the mentoring of students enrolled in 
176.44  the program.  
176.45  (b) The legislature expects the program 
176.46  to enroll at least 50 percent students 
176.47  of color. 
176.48  (c) By February 15, 2002, and annually 
176.49  thereafter, the board of trustees shall 
176.50  provide a progress report to the chairs 
176.51  of the higher education finance 
176.52  divisions of the legislature regarding 
176.53  the development of the teacher 
176.54  preparation program.  The annual report 
176.55  shall include, to the extent 
176.56  practicable at the time of preparation, 
176.57  information comparing program outcomes 
176.58  with the target expectations set forth 
176.59  in paragraph (b).  The report shall 
176.60  include feedback from enrolled students 
176.61  concerning how the program meets their 
176.62  needs, as well as from cooperating 
176.63  elementary and secondary schools on how 
176.64  the students are performing on site. 
176.65  Subd. 5.  Cook County Higher
176.66  Education Project                                              
177.1          -0-             80,000
177.2   This appropriation is for the Cook 
177.3   county higher education project for 
177.4   delivery of educational services 
177.5   electronically due to the lack of 
177.6   access to higher education services in 
177.7   the area.  The board shall submit a 
177.8   report in the biennial budget document 
177.9   on uses of the appropriation.  The 
177.10  report shall include information 
177.11  regarding the number of students 
177.12  served, credit hours delivered, other 
177.13  services provided, strategic direction 
177.14  of the project, expected future funding 
177.15  sources, and collaborations with other 
177.16  organizations. 
177.17  Subd. 6.  Allocation For
177.18  Excess Health Care Costs
177.19  The board must provide relief to 
177.20  campuses who have experienced health 
177.21  care cost increases of greater than 80 
177.22  percent above the systemwide average 
177.23  increase since 1996. 
177.24  Sec. 3.  BOARD OF REGENTS OF THE 
177.25  UNIVERSITY OF MINNESOTA 
177.26  Subdivision 1.  Total
177.27  Appropriation                                            820,000
177.28  The amounts that may be spent from this 
177.29  appropriation for each purpose are 
177.30  specified in the following subdivisions.
177.31  Subd. 2.  Duluth; Child Care
177.32         -0-            220,000
177.33  This is a one-time appropriation for 
177.34  start-up costs for child care in the 
177.35  newly renovated Kirby Center. 
177.36  Subd. 3.  Special           
177.37  Appropriation                                                  
177.38  Agricultural Rapid Response Fund
177.39         -0-            600,000
177.40  This appropriation is for the rapid 
177.41  agricultural response fund.  The 
177.42  university shall report on the uses of 
177.43  this appropriation in the biennial 
177.44  budget document.  This appropriation is 
177.45  added to the appropriation in Laws 
177.46  1999, chapter 214, article 1, section 
177.47  4, subdivision 5, paragraph (a). 
177.48     Sec. 4.  Minnesota Statutes 1998, section 136A.125, is 
177.49  amended by adding a subdivision to read: 
177.50     Subd. 4c.  [UNEXPENDED BALANCE.] Any unexpended 
177.51  appropriation in the child care grant program in the first year 
177.52  of a biennium shall be used to augment the maximum award in 
178.1   subdivision 4 in the second year of the biennium. 
178.2      Sec. 5.  Laws 1999, chapter 214, article 1, section 4, 
178.3   subdivision 2, is amended to read: 
178.4   Subd. 2.  Operations and
178.5   Maintenance                          513,279,000    533,870,000
178.6   Estimated Expenditures 
178.7   and Appropriations 
178.8   The legislature estimates that 
178.9   instructional expenditures will be 
178.10  $461,521,000 in the first year and 
178.11  $484,679,000 in the second year. 
178.12  The legislature estimates that 
178.13  noninstructional expenditures will be 
178.14  $202,367,000 in the first year and 
178.15  $201,717,000 in the second year.  
178.16  By January 30, 2000, the University 
178.17  shall submit to the governor and the 
178.18  legislature a master academic plan for 
178.19  the Rochester region that clearly 
178.20  defines the academic needs of the 
178.21  region, short and long-term plans to 
178.22  address those needs including the 
178.23  designation of responsibility among the 
178.24  partner institutions, short and 
178.25  long-term demographic and enrollment 
178.26  projections, physical plant capacity 
178.27  and needs, and a delineation of 
178.28  missions among the partner institutions 
178.29  to avoid competition and duplication. 
178.30  Notwithstanding Minnesota Statutes 
178.31  1998, section 137.022, subdivision 4, 
178.32  in fiscal year 2001 the first $200,000 
178.33  of permanent university fund income 
178.34  from royalties for mining under state 
178.35  mineral leases designated for the 
178.36  natural resources research institute 
178.37  shall be allocated by the board of 
178.38  regents to the department of landscape 
178.39  architecture to develop a long-range 
178.40  plan for the reclamation of taconite 
178.41  mining lands.  The board shall allocate 
178.42  the money only if an equal or greater 
178.43  amount of matching money from nonstate 
178.44  sources has been pledged to support the 
178.45  project by June 30, 2000 in increments 
178.46  of $50,000 as each $50,000 is matched 
178.47  by nonstate sources, provided that no 
178.48  money may be allocated after June 30, 
178.49  2001. 
178.50  The University of Minnesota academic 
178.51  health center, after consultation with 
178.52  the health care community and medical 
178.53  education and research costs advisory 
178.54  committee, shall report by January 15, 
178.55  2000, to the higher education finance 
178.56  committees on the strategic direction 
178.57  of its health professional programs.  
178.58  The plans shall include a programmatic 
178.59  and financial model for health 
178.60  professional education that will meet 
178.61  the state's future workforce needs, 
178.62  maintain the integrity of the education 
179.1   process, provide an appropriate level 
179.2   of ongoing financial support, and 
179.3   provide a framework for the health 
179.4   community and academic health center to 
179.5   work together in meeting the health 
179.6   needs of the state.  The academic 
179.7   health center is requested to provide 
179.8   the report also to the commissioner of 
179.9   health and the legislative commission 
179.10  on health care access. 
179.11     Sec. 6.  [FACILITY USE ANALYSIS OF MINNESOTA STATE COLLEGES 
179.12  AND UNIVERSITIES AND INTERMEDIATE SCHOOL DISTRICTS.] 
179.13     The intermediate school districts and the board of trustees 
179.14  of the Minnesota state colleges and universities shall contract 
179.15  with the management analysis division of the department of 
179.16  administration for an analysis and report to the legislature on 
179.17  the educational space needs of Century community and technical 
179.18  college and intermediate school district No. 916, Dakota county 
179.19  technical college and intermediate school district No. 917, and 
179.20  Hennepin technical college and intermediate school district No. 
179.21  287.  The board of trustees will pay 50 percent of the cost of 
179.22  the contract and the intermediate school districts will pay the 
179.23  remainder.  The report shall:  (a) include an analysis of 
179.24  current and future educational space needs in buildings shared 
179.25  by the intermediate school districts and Minnesota state 
179.26  colleges and universities; (b) include information on the amount 
179.27  paid from property taxes to construct the space used by 
179.28  intermediate school districts in each facility under Minnesota 
179.29  state colleges and universities control; (c) analyze areas where 
179.30  the missions and space requirements are compatible and long-term 
179.31  sharing of space will efficiently serve students; (d) include 
179.32  recommendations, if any, for amendments to the current joint 
179.33  powers agreements; and (e) recommend facility arrangements and 
179.34  financing alternatives for space needed to relocate programs or 
179.35  services provided by intermediate school districts.  The 
179.36  alternative financing recommendations may include, but are not 
179.37  limited to, state appropriations, state capital bonding, local 
179.38  bonding, or local levies to provide instructional and 
179.39  administrative space.  The report shall be delivered to the 
179.40  kindergarten through grade 12 and higher education committees of 
180.1   the legislature prior to February 1, 2001. 
180.2      Notwithstanding any termination date in the agreements 
180.3   between the intermediate school districts and the Minnesota 
180.4   state colleges and universities board for the use of space in 
180.5   the technical colleges or any law to the contrary, the 
180.6   agreements shall not expire or terminate until June 30, 2010. 
180.7      Sec. 7.  [MANAGEMENT ANALYSIS OF MINNESOTA STATE COLLEGES 
180.8   AND UNIVERSITIES.] 
180.9      The management analysis division of the department of 
180.10  administration must review board-level administration and 
180.11  management of the Minnesota state colleges and universities and 
180.12  make recommendations to the board of trustees and the 
180.13  legislature by February 1, 2001, as to: 
180.14     (1) the extent that the board should delegate its control 
180.15  and authority over internal system operations, including, but 
180.16  not limited to, contracting, employment responsibilities, and 
180.17  hiring and supervisory authority with respect to campus 
180.18  presidents; 
180.19     (2) the necessity for an independent staff for the board of 
180.20  trustees and if necessary, the appropriate role for such 
180.21  independent staff; 
180.22     (3) other issues deemed important to the improvement of 
180.23  board-level management; and 
180.24     (4) practices that will improve reporting by the system to 
180.25  the board. 
180.26     The board of trustees must contract with the management 
180.27  analysis division of the department of administration for the 
180.28  study under this section. 
180.29     Sec. 8.  [REPEALER.] 
180.30     Minnesota Rules, parts 4830.9005; 4830.9010; 4830.9015; 
180.31  4830.9020; and 4830.9030, are repealed. 
180.32     Sec. 9.  [EFFECTIVE DATE.] 
180.33     Sections 1 to 8 are effective the day following final 
180.34  enactment.