1.1                          A bill for an act
  1.2             relating to education; prekindergarten through grade 
  1.3             12; higher education; early childhood and family 
  1.4             education; providing for general education, special 
  1.5             programs, employment and other transitions, facilities 
  1.6             and technology, education excellence and other policy, 
  1.7             nutrition and other programs, libraries, and the 
  1.8             department of children, families, and learning; making 
  1.9             technical, conforming, and clarifying amendments; 
  1.10            appropriating money; amending Minnesota Statutes 1998, 
  1.11            sections 119B.03, by adding a subdivision; 120A.22, 
  1.12            subdivision 3; 120B.13, subdivision 4; 121A.22, 
  1.13            subdivisions 2 and 3; 121A.61, subdivision 3; 122A.25, 
  1.14            subdivision 3, and by adding subdivisions; 122A.31, 
  1.15            subdivision 4; 122A.68, subdivision 4; 123A.485, 
  1.16            subdivision 4; 123B.02, by adding a subdivision; 
  1.17            123B.04, subdivision 2; 123B.143, subdivision 1; 
  1.18            123B.51, subdivision 6; 123B.52, by adding a 
  1.19            subdivision; 123B.53, as amended; 123B.57, subdivision 
  1.20            1; 123B.58, subdivisions 3 and 4; 123B.59, as amended; 
  1.21            123B.63, subdivisions 3 and 4; 123B.71, subdivision 
  1.22            10; 123B.72, subdivision 3; 123B.75, subdivision 5; 
  1.23            123B.77, subdivision 3; 123B.79, subdivision 7; 
  1.24            123B.80, by adding a subdivision; 123B.85, subdivision 
  1.25            1; 123B.86, subdivision 1; 123B.88, subdivision 3; 
  1.26            123B.90, subdivision 1; 124D.03, subdivision 1; 
  1.27            124D.081, subdivision 6; 124D.10, subdivisions 9 and 
  1.28            20; 124D.111, subdivision 1; 124D.128, subdivision 4; 
  1.29            124D.16, subdivision 1; 124D.44; 124D.454, 
  1.30            subdivisions 2, 4, 6, 7, and 10; 124D.52, subdivisions 
  1.31            1, 2, 3, and by adding a subdivision; 124D.86, 
  1.32            subdivision 6, and by adding subdivisions; 124D.88, by 
  1.33            adding a subdivision; 124D.892, subdivision 3; 
  1.34            125A.76, subdivision 7; 126C.10, by adding 
  1.35            subdivisions; 126C.12, subdivision 2; 126C.16; 
  1.36            126C.40, subdivisions 1, 2, and 3; 126C.69, 
  1.37            subdivision 15; 127A.05, subdivision 4; 127A.41, 
  1.38            subdivisions 8 and 9; 128D.11, subdivision 3; 
  1.39            136A.125, by adding a subdivision; 169.447, by adding 
  1.40            a subdivision; 169.448, subdivision 3; 171.06, 
  1.41            subdivision 2; 171.321; 245A.14, subdivision 4, and by 
  1.42            adding a subdivision; 354.05, subdivision 2; 354A.011, 
  1.43            subdivision 27; and 471.15; Minnesota Statutes 1999 
  1.44            Supplement, sections 119B.011, subdivisions 12, 15, 
  1.45            and 20; 119B.03, subdivision 4; 119B.05, subdivision 
  1.46            1; 120B.30, subdivision 1; 122A.18, subdivision 3; 
  2.1             122A.20, subdivision 1; 122A.23; 122A.31, subdivisions 
  2.2             1 and 2; 122A.61, subdivision 1; 123B.54; 123B.83, 
  2.3             subdivision 4; 123B.90, subdivision 2; 123B.91, 
  2.4             subdivision 1; 124D.10, subdivisions 3, 4, 8, 11, 15, 
  2.5             and 23; 124D.11, subdivisions 1, 4, and 6; 124D.128, 
  2.6             subdivision 2; 124D.221, subdivision 2; 124D.53, 
  2.7             subdivision 3; 124D.68, subdivision 9; 124D.84, 
  2.8             subdivision 1; 124D.86, subdivisions 1 and 3; 124D.87; 
  2.9             124D.88, subdivision 3; 125A.023, subdivisions 3 and 
  2.10            5; 125A.027, subdivision 3; 125A.08; 125A.51; 125A.76, 
  2.11            subdivisions 1 and 2; 125A.79, subdivisions 1, 2, 5, 
  2.12            and 8; 125A.80; 125B.21, subdivision 3; 126C.05, 
  2.13            subdivisions 3, 5, and 6; 126C.10, subdivisions 2, 5, 
  2.14            13, 14, 24, 25, and 26; 126C.17, subdivision 9; 
  2.15            126C.40, subdivision 6; 126C.44; 127A.05, subdivision 
  2.16            6; 127A.42, subdivision 3; 127A.45, subdivision 12a; 
  2.17            127A.51; 148.235, by adding a subdivision; and 
  2.18            181A.04, subdivision 6; Laws 1992, chapter 499, 
  2.19            article 7, sections 31, as amended; and 32; Laws 1997, 
  2.20            chapter 157, section 71, as amended; Laws 1997, First 
  2.21            Special Session chapter 4, article 8, section 4, as 
  2.22            amended; Laws 1998, chapter 404, section 5, 
  2.23            subdivision 11, as amended; Laws 1998, First Special 
  2.24            Session chapter 1, article 1, sections 10 and 11; Laws 
  2.25            1999, chapters 205, articles 1, sections 65 and 71, 
  2.26            subdivisions 3, 7, and 9; 2, section 4, subdivision 3; 
  2.27            4, section 12, subdivisions 5, 6, and 7; 214, article 
  2.28            1, section 4, subdivision 2; 241, articles 1, sections 
  2.29            68, subdivisions 2, 4, and 5; and 69; 2, section 60, 
  2.30            subdivisions 7, 9, 12, 13, 14, 17, and 19; 3, section 
  2.31            3, subdivisions 2 and 4; 4, section 27, subdivisions 
  2.32            2, 3, 4, and 5; 5, section 18, subdivisions 5 and 6; 
  2.33            6, section 14, subdivisions 2, 3, 4, and 5; 7, section 
  2.34            2, subdivisions 2 and 5; 8, section 4, subdivisions 4 
  2.35            and 5; 9, section 49; and 10, section 6; proposing 
  2.36            coding for new law in Minnesota Statutes, chapters 
  2.37            120B; 121A; 123B; 124D; 125B; 126C; and 134; repealing 
  2.38            Minnesota Statutes 1998, sections 120A.41; and 
  2.39            124D.53, subdivisions 1, 2, and 5; Minnesota Statutes 
  2.40            1999 Supplement, sections 124D.1155, subdivision 5; 
  2.41            and 124D.53, subdivision 4; Laws 1998, First Special 
  2.42            Session chapter 1, article 1, section 10, subdivision 
  2.43            2; Laws 1999, chapters 241, article 9, sections 35 and 
  2.44            36; and 245, article 4, section 3; Minnesota Rules, 
  2.45            parts 3535.9920; 4830.9005; 4830.9010; 4830.9015; 
  2.46            4830.9020; and 4830.9030. 
  2.47  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  2.48                             ARTICLE 1 
  2.49                         GENERAL EDUCATION 
  2.50     Section 1.  Minnesota Statutes 1999 Supplement, section 
  2.51  122A.61, subdivision 1, is amended to read: 
  2.52     Subdivision 1.  [STAFF DEVELOPMENT REVENUE.] A district is 
  2.53  required to reserve an amount equal to at least one two percent 
  2.54  of the basic revenue under section 126C.10, subdivision 2, for 
  2.55  in-service education for programs under section 120B.22, 
  2.56  subdivision 2, for staff development plans, including plans for 
  2.57  challenging instructional activities and experiences under 
  2.58  section 122A.60, and for curriculum development and programs, 
  3.1   other in-service education, teachers' workshops, teacher 
  3.2   conferences, the cost of substitute teachers staff development 
  3.3   purposes, and other related costs for staff development 
  3.4   efforts.  A district may annually waive the requirement to 
  3.5   reserve their basic revenue under this section if a majority 
  3.6   vote of the licensed teachers in the district and a majority 
  3.7   vote of the school board agree to a resolution to waive the 
  3.8   requirement.  A district in statutory operating debt is exempt 
  3.9   from reserving basic revenue according to this section.  
  3.10  Districts may expend an additional amount of unreserved revenue 
  3.11  for staff development based on their needs.  With the exception 
  3.12  of amounts reserved for staff development from revenues 
  3.13  allocated directly to school sites, the board must initially 
  3.14  allocate 50 percent of the reserved revenue to each school site 
  3.15  in the district on a per teacher basis, which must be retained 
  3.16  by the school site until used.  The board may retain 25 percent 
  3.17  to be used for district wide staff development efforts.  The 
  3.18  remaining 25 percent of the revenue must be used to make grants 
  3.19  to school sites for best practices methods.  A grant may be used 
  3.20  for any purpose authorized under section 120B.22, subdivision 2, 
  3.21  122A.60, or for the costs of curriculum development and 
  3.22  programs, other in-service education, teachers' workshops, 
  3.23  teacher conferences, substitute teachers for staff development 
  3.24  purposes, and other staff development efforts, and determined by 
  3.25  the site professional development team.  The site professional 
  3.26  development team must demonstrate to the school board the extent 
  3.27  to which staff at the site have met the outcomes of the 
  3.28  program.  The board may withhold a portion of initial allocation 
  3.29  of revenue if the staff development outcomes are not being met. 
  3.30     Sec. 2.  Minnesota Statutes 1998, section 122A.68, 
  3.31  subdivision 4, is amended to read: 
  3.32     Subd. 4.  [EMPLOYMENT CONDITIONS.] A school district must 
  3.33  pay a teaching resident a salary equal to 75 90 percent of the 
  3.34  salary of a first-year teacher with a bachelor's degree in the 
  3.35  district.  The resident shall be a member of the local 
  3.36  bargaining unit and shall be covered under the terms of the 
  4.1   contract, except for salary and benefits, unless otherwise 
  4.2   provided in this subdivision.  The school district must provide 
  4.3   health insurance coverage for the resident if the district 
  4.4   provides it for teachers, and may provide other benefits upon 
  4.5   negotiated agreement. 
  4.6      Sec. 3.  Minnesota Statutes 1998, section 123A.485, 
  4.7   subdivision 4, is amended to read: 
  4.8      Subd. 4.  [NEW DISTRICTS.] If a district consolidates with 
  4.9   another district that has received aid under section 123A.39, 
  4.10  subdivision 3, or 123A.485 for a combination or consolidation 
  4.11  taking effect within six years of the effective date of the new 
  4.12  consolidation, only the pupil units in the district or districts 
  4.13  not previously reorganized must be counted for aid purposes 
  4.14  under subdivision 2.  If two or more districts consolidate and 
  4.15  all districts received aid under subdivision 2 for a 
  4.16  consolidation taking effect within six years of the effective 
  4.17  date of the new consolidation, only one quarter of the pupil 
  4.18  units in the newly created district must be used to determine 
  4.19  aid under subdivision 2. 
  4.20     Sec. 4.  Minnesota Statutes 1998, section 123B.75, 
  4.21  subdivision 5, is amended to read: 
  4.22     Subd. 5.  [LEVY RECOGNITION.] (a) "School district tax 
  4.23  settlement revenue" means the current, delinquent, and 
  4.24  manufactured home property tax receipts collected by the county 
  4.25  and distributed to the school district. 
  4.26     (b) In June of each year, the school district must 
  4.27  recognize as revenue, in the fund for which the levy was made, 
  4.28  the lesser of:  
  4.29     (1) the May, June, and July school district tax settlement 
  4.30  revenue received in that calendar year; or 
  4.31     (2) the sum of: 
  4.32     (i) 31 percent of the referendum levy certified in the 
  4.33  prior calendar year according to section 126C.17, subdivision 9; 
  4.34  plus 
  4.35     (ii) the entire amount of the levy certified in the prior 
  4.36  calendar year according to sections 124D.86, subdivision 4, for 
  5.1   school districts receiving revenue under section 124D.86, 
  5.2   subdivision 3, clauses (1), (2), and (3); 126C.41, subdivisions 
  5.3   1, 2, and 3, paragraphs (4), (5), and (6); 126C.43, subdivision 
  5.4   2; and 126C.48, subdivision 6. 
  5.5      Sec. 5.  Minnesota Statutes 1999 Supplement, section 
  5.6   124D.11, subdivision 1, is amended to read: 
  5.7      Subdivision 1.  [GENERAL EDUCATION REVENUE.] (a) General 
  5.8   education revenue must be paid to a charter school as though it 
  5.9   were a district.  The general education revenue for each 
  5.10  adjusted marginal cost pupil unit is the state average general 
  5.11  education revenue per pupil unit, plus the referendum 
  5.12  equalization aid allowance in the pupil's district of residence, 
  5.13  minus an amount equal to the product of the formula allowance 
  5.14  according to section 126C.10, subdivision 2, times .0485, 
  5.15  calculated without basic skills revenue, transportation sparsity 
  5.16  revenue, and the transportation portion of the transition 
  5.17  revenue adjustment, plus basic skills revenue as though the 
  5.18  school were a school district. 
  5.19     (b) Notwithstanding paragraph (a), for charter schools in 
  5.20  the first year of operation, general education revenue shall be 
  5.21  computed using the number of adjusted pupil units in the current 
  5.22  fiscal year. 
  5.23     Sec. 6.  Minnesota Statutes 1999 Supplement, section 
  5.24  124D.86, subdivision 1, is amended to read: 
  5.25     Subdivision 1.  [USE OF THE REVENUE.] Integration revenue 
  5.26  under this section must be used for programs established under a 
  5.27  desegregation plan filed with the department of children, 
  5.28  families, and learning, according to Minnesota Rules, parts 
  5.29  3535.0100 to 3535.0180 or under court order, to increase.  The 
  5.30  revenue must be used to create or enhance learning opportunities 
  5.31  and reduce the learning gap between learners living in high 
  5.32  concentrations of poverty and their peers which are designed to 
  5.33  provide opportunities for students to have increased interracial 
  5.34  contacts through classroom experiences, staff initiatives, and 
  5.35  other educationally related programs. 
  5.36     Sec. 7.  Minnesota Statutes 1998, section 124D.86, is 
  6.1   amended by adding a subdivision to read: 
  6.2      Subd. 1a.  [BUDGET APPROVAL PROCESS.] Each year before a 
  6.3   district receives any revenue under subdivision 3, clause (4), 
  6.4   the district must submit to the department of children, 
  6.5   families, and learning, for its review and approval a budget 
  6.6   detailing the costs of the desegregation/integration plan filed 
  6.7   under Minnesota Rules, parts 3535.0100 to 3535.0180.  
  6.8   Notwithstanding chapter 14, the department may develop criteria 
  6.9   for budget approval.  The department shall consult with the 
  6.10  desegregation advisory board in developing these criteria.  The 
  6.11  criteria developed by the department should address, at a 
  6.12  minimum, the following: 
  6.13     (1) budget items cannot be approved unless they are part of 
  6.14  any overall desegregation plan approved by the district for 
  6.15  isolated sites or by the multidistrict collaboration council and 
  6.16  participation individual members; 
  6.17     (2) the budget must indicate how revenue expenditures will 
  6.18  be used specifically to support increased opportunities for 
  6.19  interracial contact; 
  6.20     (3) components of the budget to be considered by the 
  6.21  department, including staffing, curriculum, transportation, 
  6.22  facilities, materials, and equipment and reasonable planning 
  6.23  costs, as determined by the department; 
  6.24     (4) if plans are proposed to enhance existing programs, the 
  6.25  total budget being appropriated to the program must be included, 
  6.26  indicating what part is to be funded using integration revenue 
  6.27  and what part is to be funded using other revenues; and 
  6.28     (5) the commissioner may deny revenue under this section if 
  6.29  the district is not meeting its goals outlined under subdivision 
  6.30  1b. 
  6.31     Sec. 8.  Minnesota Statutes 1998, section 124D.86, is 
  6.32  amended by adding a subdivision to read: 
  6.33     Subd. 1b.  [PLAN COMPONENTS.] Plans submitted by each 
  6.34  district under Minnesota Rules, parts 3535.0160 and 3535.0170, 
  6.35  must be approved by the district's board each year before 
  6.36  integration revenue will be awarded.  If a district is applying 
  7.1   for revenue for a plan that is part of a multidistrict council, 
  7.2   the individual district shall not receive revenue unless it 
  7.3   ratifies the plan adopted by its multidistrict council or 
  7.4   approves a modified plan with a written explanation of any 
  7.5   modifications.  Each plan shall contain: 
  7.6      (1) an identification of the integration issues at the 
  7.7   sites or districts covered by Minnesota Rules, parts 3535.0100 
  7.8   to 3535.0180; 
  7.9      (2) a description of the community outreach that preceded 
  7.10  the integration plan, such that the commissioner can determine 
  7.11  whether the membership of the planning councils complied with 
  7.12  the requirements of Minnesota Rules, parts 3535.0100 to 
  7.13  3535.0180; and 
  7.14     (3) the specific goals of the integration plan. 
  7.15  By June 30 of the subsequent fiscal year, each district shall 
  7.16  report to the commissioner in writing about the extent to which 
  7.17  the integration goals identified in the plan were met. 
  7.18     Sec. 9.  Minnesota Statutes 1999 Supplement, section 
  7.19  124D.86, subdivision 3, is amended to read: 
  7.20     Subd. 3.  [INTEGRATION REVENUE.] For fiscal year 2000 and 
  7.21  later fiscal years, integration revenue equals the following 
  7.22  amounts: 
  7.23     (1) for independent school district No. 709, Duluth, $207 
  7.24  times the adjusted pupil units for the school year; 
  7.25     (2) for independent school district No. 625, St. Paul, $446 
  7.26  times the adjusted pupil units for the school year; 
  7.27     (3) for special school district No. 1, Minneapolis, $536 
  7.28  times the adjusted pupil units for the school year; and 
  7.29     (4) for a district not listed in clause (1), (2), or (3) 
  7.30  that is required to implement a plan according to the 
  7.31  requirements of Minnesota Rules, parts 3535.0100 to 
  7.32  3535.0180, as proposed in 23 State Register 1344, December 7, 
  7.33  1998, the lesser of 
  7.34     (i) the actual cost of implementing the plan during the 
  7.35  fiscal year minus the aid received under subdivision 6, or 
  7.36     (ii) $93 times the adjusted pupil units for the school year.
  8.1      Any money received by districts in clauses (1) to (3) which 
  8.2   exceeds the amount received in fiscal year 2000 shall be subject 
  8.3   to the budget requirements in subdivision 1a. 
  8.4      Sec. 10.  Minnesota Statutes 1998, section 124D.86, 
  8.5   subdivision 6, is amended to read: 
  8.6      Subd. 6.  [ALTERNATIVE ATTENDANCE PROGRAMS.] (a) The 
  8.7   integration aid under subdivision 5 must be adjusted for each 
  8.8   pupil residing in a district eligible for integration revenue 
  8.9   under subdivision 3, clause (1), (2), or (3), and attending a 
  8.10  nonresident district under sections 123A.05 to 123A.08, 124D.03, 
  8.11  124D.06, 124D.07, and 124D.08, that is not eligible for 
  8.12  integration revenue under subdivision 3, clause (1), (2), or 
  8.13  (3), and has implemented a plan under Minnesota Rules, parts 
  8.14  3535.0100 to 3535.0180, if the enrollment of the pupil in the 
  8.15  nonresident district contributes to desegregation or integration 
  8.16  purposes.  The adjustments must be made according to this 
  8.17  subdivision.  
  8.18     (b) Aid paid to the district of the pupil's residence must 
  8.19  be reduced by an amount equal to the revenue per resident pupil 
  8.20  unit of the resident district times the number of resident pupil 
  8.21  units attributable to the pupil for the time the pupil is 
  8.22  enrolled in a nonresident district. 
  8.23     (c) Aid paid to a district serving nonresidents must be 
  8.24  increased by an amount equal to the aid reduction to the 
  8.25  resident district under paragraphs (b) and (d) revenue per pupil 
  8.26  unit of the resident district under subdivision 3, clause (1), 
  8.27  (2), or (3), minus the revenue attributable to the pupil in the 
  8.28  nonresident district under subdivision 3, clause (4), for the 
  8.29  time the pupil is enrolled in the nonresident district.  
  8.30     (d) If the amount of the reduction to be made from the aid 
  8.31  of a district is greater than the amount of aid otherwise due 
  8.32  the district, the excess reduction must be made from other state 
  8.33  aids due the district. 
  8.34     Sec. 11.  Minnesota Statutes 1999 Supplement, section 
  8.35  124D.87, is amended to read: 
  8.36     124D.87 [INTERDISTRICT DESEGREGATION OR INTEGRATION 
  9.1   TRANSPORTATION AID.] 
  9.2      (a) A district that provides transportation of pupils to 
  9.3   and from an interdistrict program for desegregation or 
  9.4   integration purposes is eligible for state aid to cover 
  9.5   reimburse the additional costs of transportation during the 
  9.6   preceding fiscal year.  
  9.7      (b) A district in the metropolitan area may apply to the 
  9.8   commissioner for state aid to cover reimburse the costs of 
  9.9   transporting pupils who are enrolled under section 
  9.10  124D.03 during the preceding fiscal year if the enrollment of 
  9.11  the student in the nonresident district contributes to 
  9.12  desegregation or integration purposes.  The commissioner shall 
  9.13  develop the form and manner of applications for state aid, the 
  9.14  criteria to be used to determine when transportation is for 
  9.15  desegregation or integration purposes, and the accounting 
  9.16  procedure to be used to determine excess costs.  In determining 
  9.17  aid amounts, the commissioner shall consider other revenue 
  9.18  received by the district for transportation for desegregation or 
  9.19  integration purposes. 
  9.20     (c) Aid must be paid under paragraph (b) only if aid 
  9.21  amounts under paragraph (a) have been fully funded. 
  9.22     Sec. 12.  Minnesota Statutes 1999 Supplement, section 
  9.23  126C.05, subdivision 5, is amended to read: 
  9.24     Subd. 5.  [ADJUSTED PUPIL UNITS.] (a) Adjusted pupil units 
  9.25  for a district or charter school means the sum of: 
  9.26     (1) the number of pupil units served, according to 
  9.27  subdivision 7, plus 
  9.28     (2) pupil units according to subdivision 1 for whom the 
  9.29  district or charter school pays tuition under section 123A.18, 
  9.30  123A.22, 123A.30, 123A.32, 123A.44, 123A.488, 123B.88, 
  9.31  subdivision 4, 124D.04, 124D.05, 125A.03 to 125A.24, 125A.51, or 
  9.32  125A.65, minus 
  9.33     (3) pupil units according to subdivision 1 for whom the 
  9.34  district or charter school receives tuition under section 
  9.35  123A.18, 123A.22, 123A.30, 123A.32, 123A.44, 123A.488, 123B.88, 
  9.36  subdivision 4, 124D.04, 124D.05, 125A.03 to 125A.24, 125A.51, or 
 10.1   125A.65. 
 10.2      (b) Adjusted marginal cost pupil units means the sum 
 10.3   of .9 .77 times the pupil units defined in paragraph (a) for the 
 10.4   current school year and .1 .23 times the pupil units defined in 
 10.5   paragraph (a) for the previous school year. 
 10.6      Sec. 13.  Minnesota Statutes 1999 Supplement, section 
 10.7   126C.05, subdivision 6, is amended to read: 
 10.8      Subd. 6.  [RESIDENT PUPIL UNITS.] (a) Resident pupil units 
 10.9   for a district means the number of pupil units according to 
 10.10  subdivision 1 residing in the district. 
 10.11     (b) Resident marginal cost pupil units means the sum 
 10.12  of .9 .77 times the pupil units defined in paragraph (a) for the 
 10.13  current year and .1 .23 times the pupil units defined in 
 10.14  paragraph (a) for the previous school year. 
 10.15     Sec. 14.  Minnesota Statutes 1999 Supplement, section 
 10.16  126C.10, subdivision 2, is amended to read: 
 10.17     Subd. 2.  [BASIC REVENUE.] The basic revenue for each 
 10.18  district equals the formula allowance times the resident pupil 
 10.19  units for the school year.  The formula allowance for fiscal 
 10.20  year 1998 is $3,581.  The formula allowance for fiscal year 1999 
 10.21  is $3,530.  The formula allowance for fiscal year 2000 is 
 10.22  $3,740.  The formula allowance for fiscal year 2001 and 
 10.23  subsequent fiscal years is $3,875 $3,964. 
 10.24     Sec. 15.  Minnesota Statutes 1999 Supplement, section 
 10.25  126C.10, subdivision 5, is amended to read: 
 10.26     Subd. 5.  [TRAINING AND EXPERIENCE REVENUE.] (a) The 
 10.27  training and experience revenue for each district equals the 
 10.28  greater of zero or the result of the following computation:  
 10.29     (1) subtract .8 from the training and experience index; 
 10.30     (2) multiply the result in clause (1) by the product of 
 10.31  $660 times the adjusted marginal cost pupil units for the school 
 10.32  year.  
 10.33     (b) Training and experience revenue equals the greater of 
 10.34  the amount calculated in paragraph (a) for fiscal year 2001 or 
 10.35  the training and experience adjustment revenue, according to 
 10.36  subdivision 5b. 
 11.1      <h>EFFECTIVE DATE:</h>  This section is effective the day 
 11.2   following final enactment. 
 11.3      Sec. 16.  Minnesota Statutes 1998, section 126C.10, is 
 11.4   amended by adding a subdivision to read: 
 11.5      Subd. 5a.  [TRAINING AND EXPERIENCE ADJUSTMENT BASE.] The 
 11.6   training and experience adjustment base equals the product of 
 11.7   $130 plus the district's training and experience transition 
 11.8   allowance for fiscal year 1998 under Minnesota Statutes 1996, 
 11.9   section 124A.22, subdivision 13b, paragraph (c), times the 
 11.10  actual pupil units for 1998. 
 11.11     <h>EFFECTIVE DATE:</h>  This section is effective the day 
 11.12  following final enactment. 
 11.13     Sec. 17.  Minnesota Statutes 1998, section 126C.10, is 
 11.14  amended by adding a subdivision to read: 
 11.15     Subd. 5b.  [TRAINING AND EXPERIENCE ADJUSTMENT 
 11.16  REVENUE.] For fiscal year 2001, the training and experience 
 11.17  adjustment revenue equals 45 percent of the training and 
 11.18  experience base. 
 11.19     <h>EFFECTIVE DATE:</h>  This section is effective the day 
 11.20  following final enactment. 
 11.21     Sec. 18.  Minnesota Statutes 1999 Supplement, section 
 11.22  126C.10, subdivision 24, is amended to read: 
 11.23     Subd. 24.  [EQUITY REVENUE.] (a) A school district 
 11.24  qualifies for equity revenue if the school district's adjusted 
 11.25  marginal cost pupil unit amount of basic revenue, supplemental 
 11.26  revenue, transition revenue, and referendum revenue is less than 
 11.27  the value of the school district at or immediately above the 
 11.28  90th percentile of school districts in its equity region for 
 11.29  those revenue categories and the school district's 
 11.30  administrative offices are not located in a city of the first 
 11.31  class on July 1, 1999. 
 11.32     (b) Equity revenue for a qualifying district that receives 
 11.33  referendum revenue under section 126C.17, subdivision 4, equals 
 11.34  the product of (1) the district's adjusted marginal cost pupil 
 11.35  units for that year; times (2) the sum of (i) $10, plus (ii) 
 11.36  $30, times the school district's equity index computed under 
 12.1   section 126C.10, subdivision 6. 
 12.2      (c) Equity revenue for a qualifying district that does not 
 12.3   receive referendum revenue under section 126C.17, subdivision 4, 
 12.4   equals the product of the district's adjusted marginal cost 
 12.5   pupil units for that year times $10. 
 12.6      <h>EFFECTIVE DATE:</h>  This section is effective for revenue in 
 12.7   fiscal year 2000. 
 12.8      Sec. 19.  Minnesota Statutes 1999 Supplement, section 
 12.9   126C.10, subdivision 25, is amended to read: 
 12.10     Subd. 25.  [REGIONAL EQUITY GAP.] The regional equity gap 
 12.11  equals the difference between the value of the school district 
 12.12  at or immediately above the fifth percentile of adjusted general 
 12.13  revenue per marginal cost pupil unit and the value of the school 
 12.14  district at or immediately above the 90th percentile of adjusted 
 12.15  general revenue per adjusted marginal cost pupil unit. 
 12.16     <h>EFFECTIVE DATE:</h>  This section is effective for revenue in 
 12.17  fiscal year 2000. 
 12.18     Sec. 20.  Minnesota Statutes 1999 Supplement, section 
 12.19  126C.10, subdivision 26, is amended to read: 
 12.20     Subd. 26.  [DISTRICT EQUITY GAP.] A district's equity gap 
 12.21  equals the greater of zero or the difference between the 
 12.22  district's adjusted general revenue and the value of the school 
 12.23  district at or immediately above the regional 90th percentile of 
 12.24  adjusted general revenue per adjusted marginal cost pupil unit. 
 12.25     <h>EFFECTIVE DATE:</h>  This section is effective for revenue in 
 12.26  fiscal year 2000. 
 12.27     Sec. 21.  Minnesota Statutes 1998, section 126C.16, is 
 12.28  amended to read: 
 12.29     126C.16 [REFERENDUM AND DESEGREGATION REVENUE CONVERSION.] 
 12.30     Subdivision 1.  [REVENUE CONVERSION.] Except as provided 
 12.31  under subdivision 3, the referendum authority under section 
 12.32  126C.17 and the levy authority under section 124.912, 
 12.33  subdivisions 2 and 3, of a district must be converted by the 
 12.34  department according to this section. 
 12.35     Subd. 2.  [RATE ADJUSTMENT.] The department must adjust a 
 12.36  district's referendum authority for a referendum approved before 
 13.1   July 1, 1991, excluding authority based on a dollar amount, and 
 13.2   the levy authority under section 124.912, subdivisions 2 and 3, 
 13.3   by multiplying the sum of the rates authorized by a district 
 13.4   under section 126C.17 and the rates in section 124.912, 
 13.5   subdivisions 2 and 3, by the ratio determined under subdivision 
 13.6   2 for the assessment year for which the revenue is 
 13.7   attributable.  The adjusted rates for assessment year 1993 apply 
 13.8   to later years for which the revenue is authorized. 
 13.9      Subd. 3.  [PER PUPIL REVENUE CONVERSION.] (a) The 
 13.10  department must convert each district's referendum revenue 
 13.11  authority for fiscal year 2002 and later years to an allowance 
 13.12  per pupil unit as follows:  the revenue allowance equals the 
 13.13  amount determined by dividing the district's maximum revenue 
 13.14  under section 126C.17, for fiscal year 2001 by the district's 
 13.15  2000-2001 resident marginal cost pupil units.  A district's 
 13.16  maximum revenue for all later years for which the revenue is 
 13.17  authorized equals the revenue allowance times the district's 
 13.18  resident marginal cost pupil units for that year.  
 13.19     (b) The referendum allowance reduction must be applied 
 13.20  first to the authority with the earliest expiration date. 
 13.21     Sec. 22.  Minnesota Statutes 1999 Supplement, section 
 13.22  126C.17, subdivision 9, is amended to read: 
 13.23     Subd. 9.  [REFERENDUM REVENUE.] (a) The revenue authorized 
 13.24  by section 126C.10, subdivision 1, may be increased in the 
 13.25  amount approved by the voters of the district at a referendum 
 13.26  called for the purpose.  The referendum may be called by the 
 13.27  board or shall be called by the board upon written petition of 
 13.28  qualified voters of the district.  The referendum must be 
 13.29  conducted one or two calendar years before the increased levy 
 13.30  authority, if approved, first becomes payable.  Only one 
 13.31  election to approve an increase may be held in a calendar year.  
 13.32  Unless the referendum is conducted by mail under paragraph (g), 
 13.33  the referendum must be held on the first Tuesday after the first 
 13.34  Monday in November.  The ballot must state the maximum amount of 
 13.35  the increased revenue per resident marginal cost pupil unit, the 
 13.36  estimated referendum tax rate as a percentage of referendum 
 14.1   market value in the first year it is to be levied, and that the 
 14.2   revenue must be used to finance school operations.  The ballot 
 14.3   may state a schedule, determined by the board, of increased 
 14.4   revenue per resident marginal cost pupil units unit that differs 
 14.5   from year to year over the number of years for which the 
 14.6   increased revenue is authorized.  If the ballot contains a 
 14.7   schedule showing different amounts, it must also indicate the 
 14.8   estimated referendum tax rate as a percent of referendum market 
 14.9   value for the amount specified for the first year and for the 
 14.10  maximum amount specified in the schedule.  The ballot may state 
 14.11  that existing referendum levy authority is expiring.  In this 
 14.12  case, the ballot may also compare the proposed levy authority to 
 14.13  the existing expiring levy authority, and express the proposed 
 14.14  increase as the amount, if any, over the expiring referendum 
 14.15  levy authority.  The ballot must designate the specific number 
 14.16  of years, not to exceed ten, for which the referendum 
 14.17  authorization applies.  The notice required under section 275.60 
 14.18  may be modified to read, in cases of renewing existing levies: 
 14.19     "BY VOTING "YES" ON THIS BALLOT QUESTION, YOU MAY BE VOTING 
 14.20     FOR A PROPERTY TAX INCREASE." 
 14.21     The ballot may contain a textual portion with the 
 14.22  information required in this subdivision and a question stating 
 14.23  substantially the following:  
 14.24     "Shall the increase in the revenue proposed by (petition 
 14.25  to) the board of ........., School District No. .., be approved?"
 14.26     If approved, an amount equal to the approved revenue per 
 14.27  resident marginal cost pupil unit times the resident marginal 
 14.28  cost pupil units for the school year beginning in the year after 
 14.29  the levy is certified shall be authorized for certification for 
 14.30  the number of years approved, if applicable, or until revoked or 
 14.31  reduced by the voters of the district at a subsequent referendum.
 14.32     (b) The board must prepare and deliver by first class mail 
 14.33  at least 15 days but no more than 30 days before the day of the 
 14.34  referendum to each taxpayer a notice of the referendum and the 
 14.35  proposed revenue increase.  The board need not mail more than 
 14.36  one notice to any taxpayer.  For the purpose of giving mailed 
 15.1   notice under this subdivision, owners must be those shown to be 
 15.2   owners on the records of the county auditor or, in any county 
 15.3   where tax statements are mailed by the county treasurer, on the 
 15.4   records of the county treasurer.  Every property owner whose 
 15.5   name does not appear on the records of the county auditor or the 
 15.6   county treasurer is deemed to have waived this mailed notice 
 15.7   unless the owner has requested in writing that the county 
 15.8   auditor or county treasurer, as the case may be, include the 
 15.9   name on the records for this purpose.  The notice must project 
 15.10  the anticipated amount of tax increase in annual dollars and 
 15.11  annual percentage for typical residential homesteads, 
 15.12  agricultural homesteads, apartments, and commercial-industrial 
 15.13  property within the school district. 
 15.14     The notice for a referendum may state that an existing 
 15.15  referendum levy is expiring and project the anticipated amount 
 15.16  of increase over the existing referendum levy in the first year, 
 15.17  if any, in annual dollars and annual percentage for typical 
 15.18  residential homesteads, agricultural homesteads, apartments, and 
 15.19  commercial-industrial property within the district. 
 15.20     The notice must include the following statement:  "Passage 
 15.21  of this referendum will result in an increase in your property 
 15.22  taxes."  However, in cases of renewing existing levies, the 
 15.23  notice may include the following statement:  "Passage of this 
 15.24  referendum may result in an increase in your property taxes." 
 15.25     (c) A referendum on the question of revoking or reducing 
 15.26  the increased revenue amount authorized pursuant to paragraph 
 15.27  (a) may be called by the board and shall be called by the board 
 15.28  upon the written petition of qualified voters of the district.  
 15.29  A referendum to revoke or reduce the levy amount must be based 
 15.30  upon the dollar amount, local tax rate, or amount per resident 
 15.31  marginal cost pupil unit, that was stated to be the basis for 
 15.32  the initial authorization.  Revenue approved by the voters of 
 15.33  the district pursuant to paragraph (a) must be received at least 
 15.34  once before it is subject to a referendum on its revocation or 
 15.35  reduction for subsequent years.  Only one revocation or 
 15.36  reduction referendum may be held to revoke or reduce referendum 
 16.1   revenue for any specific year and for years thereafter. 
 16.2      (d) A petition authorized by paragraph (a) or (c) is 
 16.3   effective if signed by a number of qualified voters in excess of 
 16.4   15 percent of the registered voters of the district on the day 
 16.5   the petition is filed with the board.  A referendum invoked by 
 16.6   petition must be held on the date specified in paragraph (a). 
 16.7      (e) The approval of 50 percent plus one of those voting on 
 16.8   the question is required to pass a referendum authorized by this 
 16.9   subdivision. 
 16.10     (f) At least 15 days before the day of the referendum, the 
 16.11  district must submit a copy of the notice required under 
 16.12  paragraph (b) to the commissioner and to the county auditor of 
 16.13  each county in which the district is located.  Within 15 days 
 16.14  after the results of the referendum have been certified by the 
 16.15  board, or in the case of a recount, the certification of the 
 16.16  results of the recount by the canvassing board, the district 
 16.17  must notify the commissioner of the results of the referendum. 
 16.18     (g) Except for a referendum held under subdivision 11, any 
 16.19  referendum under this section held on a day other than the first 
 16.20  Tuesday after the first Monday in November must be conducted by 
 16.21  mail in accordance with section 204B.46.  Notwithstanding 
 16.22  paragraph (b) to the contrary, in the case of a referendum 
 16.23  conducted by mail under this paragraph, the notice required by 
 16.24  paragraph (b) must be prepared and delivered by first class mail 
 16.25  at least 20 days before the referendum. 
 16.26     Sec. 23.  [126C.37.] [SECONDARY VOCATIONAL REVENUE 
 16.27  RESERVE.] 
 16.28     Subdivision 1.  [RESERVE REVENUE.] For fiscal year 2001 and 
 16.29  later, a district must reserve an amount equal to the number of 
 16.30  adjusted marginal cost pupil units times the amount of secondary 
 16.31  vocational aid, according to section 124D.453, paid to the 
 16.32  district in fiscal year 2000, divided by the district's adjusted 
 16.33  marginal cost pupil units for fiscal year 2000.  A school board 
 16.34  may vote to not reserve secondary vocational aid as determined 
 16.35  by this section. 
 16.36     Subd. 2.  [REVENUE USE.] Revenue must be used for: 
 17.1      (1) salaries paid to essential, licensed personnel 
 17.2   providing direct instructional services to students in that 
 17.3   fiscal year for services rendered in the district's approved 
 17.4   career and technical education programs; 
 17.5      (2) contracted services provided by a public or private 
 17.6   agency other than a Minnesota school district or cooperative 
 17.7   center; 
 17.8      (3) necessary travel between instructional sites by 
 17.9   licensed career and technical education personnel; 
 17.10     (4) necessary travel by licensed career and technical 
 17.11  education personnel for vocational student organization 
 17.12  activities held within the state for instructional purposes; 
 17.13     (5) curriculum development activities that are part of a 
 17.14  five-year plan for improvement based on program assessment; 
 17.15     (6) necessary travel by licensed career and technical 
 17.16  education personnel for noncollegiate credit bearing 
 17.17  professional development; or 
 17.18     (7) specialized vocational instructional supplies and 
 17.19  equipment. 
 17.20     Sec. 24.  Minnesota Statutes 1999 Supplement, section 
 17.21  127A.45, subdivision 12a, is amended to read: 
 17.22     Subd. 12a.  [FORWARD SHIFTED AID PAYMENTS.] (a) Nineteen 
 17.23  percent of the state aid in fiscal year 1999, and 31 percent of 
 17.24  the state aid in fiscal years 2000 and later received under 
 17.25  section 124D.86 must be paid by the state to the recipient 
 17.26  school district on July 15 of that year.  The recipient school 
 17.27  district must recognize this aid in the same fiscal year as the 
 17.28  levy is recognized. 
 17.29     (b) One hundred percent of the state aid in fiscal years 
 17.30  2003 and later received under section 124D.87 must be paid by 
 17.31  the state to the recipient school district on August 30 of that 
 17.32  year.  The recipient school district must recognize this aid in 
 17.33  the previous fiscal year. 
 17.34     Sec. 25.  Minnesota Statutes 1999 Supplement, section 
 17.35  127A.51, is amended to read: 
 17.36     127A.51 [STATEWIDE AVERAGE REVENUE.] 
 18.1      By October 1 of each year the commissioner must estimate 
 18.2   the statewide average adjusted general revenue per adjusted 
 18.3   marginal cost pupil unit and the disparity in adjusted general 
 18.4   revenue among pupils and districts by computing the ratio of the 
 18.5   ninety-fifth percentile to the fifth percentile of adjusted 
 18.6   general revenue.  The commissioner must provide that information 
 18.7   to all districts. 
 18.8      If the disparity in adjusted general revenue as measured by 
 18.9   the ratio of the ninety-fifth percentile to the fifth percentile 
 18.10  increases in any year, the commissioner shall recommend to the 
 18.11  legislature options for change in the general education formula 
 18.12  that will limit the disparity in adjusted general revenue to no 
 18.13  more than the disparity for the previous school year.  The 
 18.14  commissioner must submit the recommended options to the 
 18.15  education committees of the legislature by January 15. 
 18.16     For purposes of this section and section 126C.10, adjusted 
 18.17  general revenue means the sum of basic revenue under section 
 18.18  126C.10, subdivision 2; supplemental revenue under section 
 18.19  126C.10, subdivisions 9 and 12; transition revenue under section 
 18.20  126C.10, subdivision 20; and referendum revenue under section 
 18.21  126C.17. 
 18.22     Sec. 26.  Minnesota Statutes 1998, section 128D.11, 
 18.23  subdivision 3, is amended to read: 
 18.24     Subd. 3.  [NO ELECTION.] Subject to the provisions of 
 18.25  subdivisions 7 to 10, the school district may also by a 
 18.26  two-thirds majority vote of all the members of its board of 
 18.27  education and without any election by the voters of the 
 18.28  district, issue and sell in each calendar year general 
 18.29  obligation bonds of the district in an amount not to exceed 
 18.30  5-1/10 per cent of the net tax capacity of the taxable property 
 18.31  in the district (plus, for calendar years 1990 to 2003 2008, an 
 18.32  amount not to exceed $7,500,000 $15,000,000; with an additional 
 18.33  provision that any amount of bonds so authorized for sale in a 
 18.34  specific year and not sold can be carried forward and sold in 
 18.35  the year immediately following).  
 18.36     Sec. 27.  Laws 1992, chapter 499, article 7, section 32, is 
 19.1   amended to read: 
 19.2      Sec. 32.  [EFFECTIVE DATE.] 
 19.3      Sections 1, 9, 14, 18, 19, 20, 21, 22, 23, and 30 are 
 19.4   effective the day following final enactment.  Sections 4 to 8 
 19.5   are effective for revenue for fiscal year 2000 2002. 
 19.6      Sec. 28.  Laws 1992, chapter 499, article 7, section 31, as 
 19.7   amended by Laws 1998, chapter 398, article 1, section 39, and 
 19.8   Laws 1999, chapter 241, article 1, section 31, is amended to 
 19.9   read: 
 19.10     Sec. 31.  [REPEALER.] 
 19.11     Minnesota Statutes 1990, sections 124A.02, subdivision 24; 
 19.12  124A.23, subdivisions 2 and 3; 124A.26, subdivisions 2 and 3; 
 19.13  124A.27; 124A.28; and 124A.29, subdivision 2; and Minnesota 
 19.14  Statutes 1991 Supplement, sections 124A.02, subdivisions 16 and 
 19.15  23; 124A.03, subdivisions 1b, 1c, 1d, 1e, 1f, 1g, 1h, and 1i; 
 19.16  124A.04; 124A.22, subdivisions 2, 3, 4, 4a, 4b, 8, and 9; 
 19.17  124A.23, subdivisions 1, 4, and 5; 124A.24; 124A.26, subdivision 
 19.18  1; and 124A.29, subdivision 1, are repealed effective June 30, 
 19.19  2001 2004; Laws 1991, chapter 265, article 7, section 35, is 
 19.20  repealed. 
 19.21     Sec. 29.  Laws 1999, chapter 241, article 1, section 68, 
 19.22  subdivision 2, is amended to read: 
 19.23     Subd. 2.  [GENERAL AND SUPPLEMENTAL EDUCATION AID.] For 
 19.24  general and supplemental education aid:  
 19.25   $3,062,321,000 $3,066,166,000    .....     2000
 19.26   $3,160,518,000 $3,261,304,000    .....     2001
 19.27     The 2000 appropriation includes $272,186,000 for 1999 and 
 19.28  $2,790,135,000 $2,793,980,000 for 2000.  
 19.29     The 2001 appropriation includes $310,015,000 $310,442,000 
 19.30  for 2000 and $2,850,503,000 $2,950,862,000 for 2001.  
 19.31     Sec. 30.  Laws 1999, chapter 241, article 1, section 68, 
 19.32  subdivision 4, is amended to read: 
 19.33     Subd. 4.  [TRANSPORTATION AID FOR ENROLLMENT OPTIONS.] For 
 19.34  transportation of pupils attending post-secondary institutions 
 19.35  according to Minnesota Statutes, section 124D.09, or for 
 19.36  transportation of pupils attending nonresident districts 
 20.1   according to Minnesota Statutes, section 124D.03: 
 20.2        $102,000 $70,000      .....     2000
 20.3        $102,000 $70,000      .....     2001
 20.4      Any balance in the first year does not cancel but is 
 20.5   available in the second year. 
 20.6      Sec. 31.  Laws 1999, chapter 241, article 1, section 68, 
 20.7   subdivision 5, is amended to read: 
 20.8      Subd. 5.  [DISTRICT COOPERATION REVENUE.] For district 
 20.9   cooperation revenue aid: 
 20.10       $5,940,000 $5,881,000    .....     2000
 20.11       $  563,000 $  556,000    .....     2001
 20.12     The 2000 appropriation includes $869,000 for 1999 and 
 20.13  $5,071,000 $5,012,000 for 2000. 
 20.14     The 2001 appropriation includes $563,000 $556,000 for 2000 
 20.15  and $0 for 2001. 
 20.16     Sec. 32.  [FISCAL YEARS 2003 TO 2007 AIRPORT RUNWAY IMPACT 
 20.17  PUPIL UNIT AID; RICHFIELD.] 
 20.18     Subdivision 1.  [AIRPORT IMPACT ZONE PUPIL UNITS, 
 20.19  DEFINITION.] For the purposes of this section, "airport impact 
 20.20  zone pupil units" means the number of pupil units, according to 
 20.21  Minnesota Statutes 1999 Supplement, section 126C.05, subdivision 
 20.22  1, in school year 1998-1999 that were attributable to the 
 20.23  airport impact zone, as defined in Laws 1999, chapter 243, 
 20.24  article 16, section 35, subdivision 1. 
 20.25     Subd. 2.  [FISCAL YEAR 2003.] For fiscal year 2003 only, 
 20.26  independent school district No. 280, Richfield, is eligible for 
 20.27  declining pupil unit aid equal to the product of 70 percent of 
 20.28  the airport impact zone pupil units times the general education 
 20.29  formula allowance for fiscal year 2003. 
 20.30     Subd. 3.  [FISCAL YEAR 2004.] For fiscal year 2004 only, 
 20.31  independent school district No. 280, Richfield, is eligible for 
 20.32  declining pupil unit aid equal to the product of 70 percent of 
 20.33  the airport impact zone pupil units times the general education 
 20.34  formula allowance for fiscal year 2004. 
 20.35     Subd. 4.  [FISCAL YEAR 2005.] For fiscal year 2005 only, 
 20.36  independent school district No. 280, Richfield, is eligible for 
 21.1   declining pupil unit aid equal to the product of 52.5 percent of 
 21.2   the airport impact zone pupil units times the general education 
 21.3   formula allowance for fiscal year 2005. 
 21.4      Subd. 5.  [FISCAL YEAR 2006.] For fiscal year 2006 only, 
 21.5   independent school district No. 280, Richfield, is eligible for 
 21.6   declining pupil unit aid equal to the product of 35 percent of 
 21.7   the airport impact zone pupil units times the general education 
 21.8   formula allowance for fiscal year 2006. 
 21.9      Subd. 6.  [FISCAL YEAR 2007.] For fiscal year 2007 only, 
 21.10  independent school district No. 280, Richfield, is eligible for 
 21.11  declining pupil unit aid equal to the product of 17.5 percent of 
 21.12  the airport impact zone pupil units times the general education 
 21.13  formula allowance for fiscal year 2007. 
 21.14     <h>EFFECTIVE DATE:</h>  This section is effective the day 
 21.15  following final enactment. 
 21.16     Sec. 33.  [LEVY RECOGNITION FOR INTEGRATION LEVY 
 21.17  ADJUSTMENT.] 
 21.18     Notwithstanding Minnesota Statutes, section 123B.75, 
 21.19  subdivision 5, the full amount of integration levy for taxes 
 21.20  payable in 2001, attributable to fiscal year 2001, for school 
 21.21  districts receiving revenue under Minnesota Statutes, section 
 21.22  124D.86, subdivision 3, clause (4), shall be recognized in 
 21.23  fiscal year 2001. 
 21.24     Sec. 34.  [DIRECTION TO THE DEPARTMENT.] 
 21.25     For the purposes of providing aid to independent school 
 21.26  district No. 508, St. Peter, under Laws 1999, chapter 241, 
 21.27  article 4, section 22, the department of children, families, and 
 21.28  learning shall make appropriate weighting adjustments to fiscal 
 21.29  year 1997 pupil units to reflect the impact of Minnesota 
 21.30  Statutes, section 126C.05, subdivision 5, paragraph (b), and 
 21.31  subdivision 6, paragraph (b). 
 21.32     Sec. 35.  [SPARSITY CORRECTION REVENUE.] 
 21.33     Subdivision 1.  [QUALIFICATION FOR REVENUE.] A school 
 21.34  district qualifies for sparsity correction revenue if it 
 21.35  qualifies for sparsity revenue, according to Minnesota Statutes, 
 21.36  section 126C.10, subdivisions 7 and 8, in fiscal year 2000 or 
 22.1   2001 and the amount of sparsity revenue it received in those 
 22.2   years is less than the amount it would have received in fiscal 
 22.3   year 2000 or 2001 prior to the passage of Laws 1999, chapter 
 22.4   241, article 1, sections 18 and 19. 
 22.5      Subd. 2.  [FISCAL YEAR 2000 CALCULATION.] For fiscal year 
 22.6   2000, a school district's sparsity correction revenue equals the 
 22.7   difference between sparsity revenue in fiscal year 2000 
 22.8   calculated according to Laws 1999, chapter 241, article 1, 
 22.9   sections 18 and 19, and the sparsity revenue the district would 
 22.10  have received for fiscal year 2000 had these sections of law not 
 22.11  been approved. 
 22.12     Subd. 3.  [FISCAL YEAR 2001 CALCULATION.] For fiscal year 
 22.13  2001, a school district's sparsity correction revenue equals .5 
 22.14  times the difference between sparsity revenue in fiscal year 
 22.15  2001 calculated according to Laws 1999, chapter 241, article 1, 
 22.16  sections 18 and 19, and the sparsity revenue the district would 
 22.17  have received for fiscal year 2001 had these sections of law not 
 22.18  been approved. 
 22.19     Sec. 36.  [MARGINAL COST IMPACT AID.] 
 22.20     School districts that have fewer marginal cost pupil units 
 22.21  as a result of the changes to Minnesota Statutes, section 
 22.22  126C.05, subdivisions 5 and 6, in this bill are eligible for 
 22.23  marginal cost impact revenue.  For fiscal year 2001 only, the 
 22.24  marginal cost impact aid for an eligible district equals the 
 22.25  difference between the general education and referendum revenue 
 22.26  the district would have received based on the marginal cost 
 22.27  pupil units defined in Minnesota Statutes 1999 Supplement, 
 22.28  section 126C.05, subdivisions 5 and 6, and the marginal cost 
 22.29  pupil units computed according to sections 12 and 13. 
 22.30     Sec. 37.  [SEVERANCE LEVY; MESABI EAST.] 
 22.31     Independent school district No. 2711, Mesabi East, may levy 
 22.32  an amount up to $250,000 each year for a period of five years 
 22.33  for severance and early retirement incentives for licensed 
 22.34  employees who have retired early as a result of the district's 
 22.35  combination that was effective July 1, 1991. 
 22.36     <h>EFFECTIVE DATE:</h>  This section is effective for taxes 
 23.1   payable in 2001 and later years. 
 23.2      Sec. 38.  [METRO EQUITY AID.] 
 23.3      (a) For fiscal year 2001 only, a district that is located 
 23.4   in the metro equity district according to Minnesota Statutes, 
 23.5   section 126C.10, subdivision 28, and qualifies for equity 
 23.6   revenue under Minnesota Statutes, section 126C.10, subdivision 
 23.7   10, shall receive $40 times the district equity index under 
 23.8   Minnesota Statutes, section 126C.10, subdivision 27, times its 
 23.9   adjusted marginal cost pupil units. 
 23.10     (b) For fiscal year 2001 only, a school district that is 
 23.11  located in a city of the first class and is outside the 
 23.12  seven-county metropolitan area and has an adjusted net tax 
 23.13  capacity of less than $100,000,000 is eligible for metro equity 
 23.14  aid equal to $40 times its district equity index, under 
 23.15  Minnesota Statutes, section 126C.10, subdivision 27, times its 
 23.16  adjusted marginal cost pupil units.  The district's equity index 
 23.17  shall be computed as if it were eligible for equity revenue 
 23.18  under Minnesota Statutes, section 126C.10, subdivision 24. 
 23.19     (c) For fiscal year 2001 only, a school district that is 
 23.20  located in a city with population exceeding 75,000 and is 
 23.21  located outside the seven-county metropolitan area but is not 
 23.22  eligible for metro equity aid under paragraph (b) is eligible 
 23.23  for metro equity aid equal to $20 times its district equity 
 23.24  index, under Minnesota Statutes, section 126C.10, subdivision 
 23.25  27, times its adjusted marginal cost pupil units. 
 23.26     Sec. 39.  [APPROPRIATIONS.] 
 23.27     Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
 23.28  LEARNING.] The sums indicated in this section are appropriated 
 23.29  from the general fund to the department of children, families, 
 23.30  and learning for the fiscal years designated. 
 23.31     Subd. 2.  [MARGINAL COST IMPACT AID.] For marginal cost 
 23.32  impact aid: 
 23.33       $4,025,000     .....     2001
 23.34     Subd. 3.  [SPARSITY CORRECTION REVENUE.] For sparsity 
 23.35  correction revenue: 
 23.36       $1,030,000     .....     2000
 24.1        $  515,000     .....     2001
 24.2      Subd. 4.  [METRO EQUITY AID.] For metro equity aid: 
 24.3        $9,709,000     .....     2001
 24.4                              ARTICLE 2 
 24.5                           SPECIAL PROGRAMS 
 24.6      Section 1.  Minnesota Statutes 1999 Supplement, section 
 24.7   122A.31, subdivision 1, is amended to read: 
 24.8      Subdivision 1.  [REQUIREMENTS FOR AMERICAN SIGN 
 24.9   LANGUAGE/ENGLISH INTERPRETERS.] In addition to any other 
 24.10  requirements that a school district establishes, any person 
 24.11  employed to provide American sign language/English interpreting 
 24.12  or sign transliterating services on a full-time or part-time 
 24.13  basis for a school district after July 1, 2000 2001, must: 
 24.14     (1) hold current interpreter and transliterator 
 24.15  certificates awarded by the Registry of Interpreters for the 
 24.16  Deaf (RID), or the general level interpreter proficiency 
 24.17  certificate awarded by the National Association of the Deaf, or 
 24.18  a comparable state certification from the commissioner of 
 24.19  children, families, and learning; and 
 24.20     (2) satisfactorily complete an interpreter/transliterator 
 24.21  training program affiliated with an accredited educational 
 24.22  institution. 
 24.23     Sec. 2.  Minnesota Statutes 1999 Supplement, section 
 24.24  122A.31, subdivision 2, is amended to read: 
 24.25     Subd. 2.  [ORAL OR CUED SPEECH TRANSLITERATORS.] In 
 24.26  addition to any other requirements that a school district 
 24.27  establishes, any person employed to provide oral transliterating 
 24.28  or cued speech transliterating services on a full-time or 
 24.29  part-time basis for a school district after July 1, 2000 2001, 
 24.30  must hold a current applicable transliterator certificate 
 24.31  awarded by the national certifying association or comparable 
 24.32  state certification from the commissioner of children, families, 
 24.33  and learning. 
 24.34     Sec. 3.  Minnesota Statutes 1999 Supplement, section 
 24.35  124D.68, subdivision 9, is amended to read: 
 24.36     Subd. 9.  [ENROLLMENT VERIFICATION.] (a) For a pupil 
 25.1   attending an eligible program full time under subdivision 3, 
 25.2   paragraph (d), the department must pay 90 percent of the 
 25.3   district's average general education revenue less basic skills 
 25.4   revenue to the eligible program and ten percent of the 
 25.5   district's average general education revenue less basic skills 
 25.6   revenue to the resident contracting district within 30 days 
 25.7   after the eligible program verifies enrollment using the form 
 25.8   provided by the department.  For a pupil attending an eligible 
 25.9   program part time, revenue shall be reduced proportionately, 
 25.10  according to the amount of time the pupil attends the program, 
 25.11  and the payments to the eligible program and the resident 
 25.12  contracting district shall be reduced accordingly.  A pupil for 
 25.13  whom payment is made according to this section may not be 
 25.14  counted by any district for any purpose other than computation 
 25.15  of general education revenue.  If payment is made for a pupil 
 25.16  under this subdivision, a district shall not reimburse a program 
 25.17  under section 124D.69 for the same pupil.  Basic skills revenue 
 25.18  shall be paid according to section 126C.10, subdivision 4. 
 25.19     (b) The department must pay up to 100 percent of the 
 25.20  revenue to the eligible program if there is an agreement to that 
 25.21  effect between the school district and the eligible program. 
 25.22     (c) Notwithstanding paragraphs (a) and (b), for an eligible 
 25.23  program that provides chemical treatment services to students, 
 25.24  the department must pay 100 percent of the revenue to the 
 25.25  eligible program. 
 25.26     <h>EFFECTIVE DATE:</h>  This section is effective the day 
 25.27  following final enactment. 
 25.28     Sec. 4.  Minnesota Statutes 1999 Supplement, section 
 25.29  124D.84, subdivision 1, is amended to read: 
 25.30     Subdivision 1.  [AWARDS.] The commissioner, with the advice 
 25.31  and counsel of the Minnesota Indian scholarship committee, may 
 25.32  award scholarships to any Minnesota resident student who is of 
 25.33  one-fourth or more Indian ancestry, who has applied for other 
 25.34  existing state and federal scholarship and grant programs, and 
 25.35  who, in the opinion of the commissioner, has the capabilities to 
 25.36  benefit from further education.  Scholarships must be 
 26.1   for advanced or specialized education accredited degree programs 
 26.2   in accredited colleges or universities or for courses in 
 26.3   accredited or approved colleges or in business, technical or 
 26.4   vocational schools.  Scholarships shall be used to defray the 
 26.5   total cost of education including tuition, incidental fees, 
 26.6   books, supplies, transportation, other related school costs and 
 26.7   the cost of board and room and shall be paid directly to the 
 26.8   college or school concerned.  The total cost of education 
 26.9   includes all tuition and fees for each student enrolling in a 
 26.10  public institution and the portion of tuition and fees for each 
 26.11  student enrolling in a private institution that does not exceed 
 26.12  the tuition and fees at a comparable public institution.  Each 
 26.13  student shall be awarded a scholarship based on the total cost 
 26.14  of the student's education and a standardized need analysis.  
 26.15  The amount and type of each scholarship shall be determined 
 26.16  through the advice and counsel of the Minnesota Indian 
 26.17  scholarship committee.  
 26.18     When an Indian student satisfactorily completes the work 
 26.19  required by a certain college or school in a school year the 
 26.20  student is eligible for additional scholarships, if additional 
 26.21  training is necessary to reach the student's educational and 
 26.22  vocational objective.  Scholarships may not be given to any 
 26.23  Indian student for more than five years of study without special 
 26.24  approval of the Minnesota Indian scholarship committee.  
 26.25     Sec. 5.  Minnesota Statutes 1999 Supplement, section 
 26.26  124D.88, subdivision 3, is amended to read: 
 26.27     Subd. 3.  [GRANT APPLICATION PROCESS.] (a) Any group of 
 26.28  school districts that meets the criteria required under 
 26.29  paragraph (b)(1) may apply for a magnet school grant in an 
 26.30  amount not to exceed $20,800,000 for the approved costs or 
 26.31  expansion of a magnet school facility. 
 26.32     (b)(1) Any group of districts that submits an application 
 26.33  for a grant shall submit a proposal to the commissioner for 
 26.34  review and comment under section 123B.71, and the commissioner 
 26.35  shall prepare a review and comment on the proposed magnet school 
 26.36  facility, regardless of the amount of the capital expenditure 
 27.1   required to design, acquire, construct, remodel, improve, 
 27.2   furnish, or equip the facility.  The commissioner must not 
 27.3   approve an application for a magnet school grant for any 
 27.4   facility unless the facility receives a favorable review and 
 27.5   comment under section 123B.71 and the participating districts: 
 27.6      (i) establish a joint powers board under section 471.59 to 
 27.7   represent all participating districts and govern the magnet 
 27.8   school facility; 
 27.9      (ii) design the planned magnet school facility to meet the 
 27.10  applicable requirements contained in Minnesota Rules, chapter 
 27.11  3535; 
 27.12     (iii) submit a statement of need, including reasons why the 
 27.13  magnet school will facilitate integration and improve learning; 
 27.14     (iv) prepare an educational plan that includes input from 
 27.15  both community and professional staff; and 
 27.16     (v) develop an education program that will improve learning 
 27.17  opportunities for students attending the magnet school. 
 27.18     (2) The districts may develop a plan that permits social 
 27.19  service, health, and other programs serving students and 
 27.20  community residents to be located within the magnet school 
 27.21  facility.  The commissioner shall consider this plan when 
 27.22  preparing a review and comment on the proposed facility.  
 27.23     (c) When two or more districts enter into an agreement 
 27.24  establishing a joint powers board to govern the magnet school 
 27.25  facility, all member districts shall have the same powers.  
 27.26     (d) A joint powers board of participating school districts 
 27.27  established under paragraphs (b) and (c) that intends to apply 
 27.28  for a grant must adopt a resolution stating the costs of the 
 27.29  proposed project, the purpose for which the debt is to be 
 27.30  incurred, and an estimate of the dates when the contracts for 
 27.31  the proposed project will be completed.  A copy of the 
 27.32  resolution must accompany any application for a state grant 
 27.33  under this section. 
 27.34     (e)(1) The commissioner shall examine and consider all 
 27.35  grant applications.  If the commissioner finds that any joint 
 27.36  powers district is not a qualified grant applicant, the 
 28.1   commissioner shall promptly notify that joint powers board.  The 
 28.2   commissioner shall make awards to no more than two qualified 
 28.3   applicants whose applications have been on file with the 
 28.4   commissioner more than 30 days.  
 28.5      (2) A grant award is subject to verification by the joint 
 28.6   powers board under paragraph (f).  A grant award must not be 
 28.7   made until the participating districts determine the site of the 
 28.8   magnet school facility.  If the total amount of the approved 
 28.9   applications exceeds the amount of grant funding that is or can 
 28.10  be made available, the commissioner shall allot the available 
 28.11  amount equally between the approved applicant districts.  The 
 28.12  commissioner shall promptly certify to each qualified joint 
 28.13  powers board the amount, if any, of the grant awarded to it. 
 28.14     (f) Each grant must be evidenced by a contract between the 
 28.15  joint powers board and the state acting through the 
 28.16  commissioner.  The contract obligates the state to pay to the 
 28.17  joint powers board an amount computed according to paragraph 
 28.18  (e)(2) and a schedule, and terms and conditions acceptable to 
 28.19  the commissioner of finance. 
 28.20     (g) Notwithstanding the provisions of section 123B.02, 
 28.21  subdivision 3, the joint powers and its individual members may 
 28.22  enter into long-term lease agreements as part of the magnet 
 28.23  school program.  
 28.24     <h>EFFECTIVE DATE:</h>  This section is effective the day 
 28.25  following final enactment. 
 28.26     Sec. 6.  Minnesota Statutes 1998, section 124D.88, is 
 28.27  amended by adding a subdivision to read: 
 28.28     Subd. 4.  [START-UP COSTS.] During the first two years of a 
 28.29  metropolitan magnet school's operation, the school is eligible 
 28.30  for aid to pay for start-up costs and additional operating 
 28.31  costs.  Start-up cost aid equals $500 times the magnet school's 
 28.32  pupil units served for that year. 
 28.33     Sec. 7.  Minnesota Statutes 1998, section 124D.892, 
 28.34  subdivision 3, is amended to read: 
 28.35     Subd. 3.  [ADVISORY BOARD.] The commissioner shall 
 28.36  establish an advisory board composed of: 
 29.1      (1) eight nine superintendents, each of whom eight shall be 
 29.2   selected by the superintendents of the school districts located 
 29.3   in whole or in part within each of the eight metropolitan 
 29.4   districts established under section 473.123, subdivision 3c, and 
 29.5   one superintendent of a district outside the seven-county 
 29.6   metropolitan area and is from a district that is considered 
 29.7   racially isolated or has a racially isolated school site 
 29.8   according to Minnesota Rules, part 3535.0110; and 
 29.9      (2) one person each selected by the Indian affairs council, 
 29.10  the council on Asian-Pacific Minnesotans, the council on Black 
 29.11  Minnesotans, and the council on affairs of Chicano/Latino 
 29.12  people; and 
 29.13     (3) the superintendent of independent school district No. 
 29.14  709, Duluth. 
 29.15     The advisory board shall advise the office on complying 
 29.16  with the requirements under subdivision 1.  The advisory board 
 29.17  may solicit comments from teachers, parents, students, and 
 29.18  interested community organizations and others. 
 29.19     Sec. 8.  Minnesota Statutes 1999 Supplement, section 
 29.20  125A.027, subdivision 3, is amended to read: 
 29.21     Subd. 3.  [IMPLEMENTATION TIMELINE.] By July 1, 2000, the 
 29.22  individual interagency intervention plan must be available and 
 29.23  by January 1, 2001, all governing boards of interagency early 
 29.24  intervention committees statewide must implement a coordinated 
 29.25  service system for children up to age five with disabilities 
 29.26  consistent with the requirements of this section and section 
 29.27  125A.023 and the evaluation results from the demonstration 
 29.28  projects under section 125A.023, subdivision 5.  Children with 
 29.29  disabilities up to the age of 21 shall be eligible for 
 29.30  coordinated services and their eligibility to receive such 
 29.31  services under this section shall be phased in over a four-year 
 29.32  period as follows: 
 29.33     (1) July 1, 2001, children up to age nine become eligible; 
 29.34     (2) July 1, 2002, children up to age 14 become eligible; 
 29.35  and 
 29.36     (3) July 1, 2003, children up to age 21 become eligible. 
 30.1      Sec. 9.  Minnesota Statutes 1999 Supplement, section 
 30.2   125A.51, is amended to read: 
 30.3      125A.51 [PLACEMENT OF CHILDREN WITHOUT DISABILITIES; 
 30.4   EDUCATION AND TRANSPORTATION.] 
 30.5      The responsibility for providing instruction and 
 30.6   transportation for a pupil without a disability who has a 
 30.7   short-term or temporary physical or emotional illness or 
 30.8   disability, as determined by the standards of the commissioner, 
 30.9   and who is temporarily placed for care and treatment for that 
 30.10  illness or disability, must be determined as provided in this 
 30.11  section.  
 30.12     (a) The school district of residence of the pupil is the 
 30.13  district in which the pupil's parent or guardian resides. 
 30.14     (b) When parental rights have been terminated by court 
 30.15  order, the legal residence of a child placed in a residential or 
 30.16  foster facility for care and treatment is the district in which 
 30.17  the child resides when parental rights have been terminated. 
 30.18     (c) Before the placement of a pupil for care and treatment, 
 30.19  the district of residence must be notified and provided an 
 30.20  opportunity to participate in the placement decision.  When an 
 30.21  immediate emergency placement is necessary and time does not 
 30.22  permit resident district participation in the placement 
 30.23  decision, the district in which the pupil is temporarily placed, 
 30.24  if different from the district of residence, must notify the 
 30.25  district of residence of the emergency placement within 15 days 
 30.26  of the placement.  
 30.27     (d) When a pupil without a disability is temporarily placed 
 30.28  for care and treatment in a day program and the pupil continues 
 30.29  to live within the district of residence during the care and 
 30.30  treatment, the district of residence must provide instruction 
 30.31  and necessary transportation to and from the treatment facility 
 30.32  for the pupil.  Transportation shall only be provided by the 
 30.33  district during regular operating hours of the district.  The 
 30.34  district may provide the instruction at a school within the 
 30.35  district of residence, at the pupil's residence, or in the case 
 30.36  of a placement outside of the resident district, in the district 
 31.1   in which the day treatment program is located by paying tuition 
 31.2   to that district.  The district of placement may contract with a 
 31.3   facility to provide instruction by teachers licensed by the 
 31.4   state board of teaching.  
 31.5      (e) When a pupil without a disability is temporarily placed 
 31.6   in a residential program for care and treatment, the district in 
 31.7   which the pupil is placed must provide instruction for the pupil 
 31.8   and necessary transportation while the pupil is receiving 
 31.9   instruction, and in the case of a placement outside of the 
 31.10  district of residence, the nonresident district must bill the 
 31.11  district of residence for the actual cost of providing the 
 31.12  instruction for the regular school year and for summer school, 
 31.13  excluding transportation costs.  When a pupil without a 
 31.14  disability is temporarily placed in a residential program 
 31.15  outside the district of residence, the administrator of the 
 31.16  court placing the pupil must send timely written notice of the 
 31.17  placement to the district of residence.  The district of 
 31.18  placement may contract with a residential facility to provide 
 31.19  instruction by teachers licensed by the state board of teaching. 
 31.20  For purposes of this section, the state correctional facilities 
 31.21  operated on a fee-for-service basis are considered to be 
 31.22  residential programs for care and treatment. 
 31.23     (f) The district of residence must include the pupil in its 
 31.24  residence count of pupil units and pay tuition as provided in 
 31.25  section 123A.488 to the district providing the instruction.  
 31.26  Transportation costs must be paid by the district providing the 
 31.27  transportation and the state must pay transportation aid to that 
 31.28  district.  For purposes of computing state transportation aid, 
 31.29  pupils governed by this subdivision must be included in the 
 31.30  disabled transportation category.  
 31.31     Sec. 10.  Minnesota Statutes 1999 Supplement, section 
 31.32  125A.76, subdivision 1, is amended to read: 
 31.33     Subdivision 1.  [DEFINITIONS.] For the purposes of this 
 31.34  section, the definitions in this subdivision apply. 
 31.35     (a) "Base year" for fiscal year 1998 and later fiscal years 
 31.36  means the second fiscal year preceding the fiscal year for which 
 32.1   aid will be paid. 
 32.2      (b) "Basic revenue" has the meaning given it in section 
 32.3   126C.10, subdivision 2.  For the purposes of computing basic 
 32.4   revenue pursuant to this section, each child with a disability 
 32.5   shall be counted as prescribed in section 126C.05, subdivision 1.
 32.6      (c) "Essential personnel" means teachers, related services, 
 32.7   and support services staff providing direct services to students.
 32.8      (d) "Average daily membership" has the meaning given it in 
 32.9   section 126C.05. 
 32.10     (e) "Program growth factor" means 1.012 1.123 for fiscal 
 32.11  year 2002, and 1.062 for fiscal year 2003 and later. 
 32.12     Sec. 11.  Minnesota Statutes 1999 Supplement, section 
 32.13  125A.76, subdivision 2, is amended to read: 
 32.14     Subd. 2.  [SPECIAL EDUCATION BASE REVENUE.] (a) The special 
 32.15  education base revenue equals the sum of the following amounts 
 32.16  computed using base year data: 
 32.17     (1) 68 percent of the salary of each essential person 
 32.18  employed in the district's program for children with a 
 32.19  disability during the fiscal year, not including the share of 
 32.20  salaries for personnel providing health-related services counted 
 32.21  in clause (8), whether the person is employed by one or more 
 32.22  districts or a Minnesota correctional facility operating on a 
 32.23  fee-for-service basis; 
 32.24     (2) for the Minnesota state academy for the deaf or the 
 32.25  Minnesota state academy for the blind, 68 percent of the salary 
 32.26  of each instructional aide assigned to a child attending the 
 32.27  academy, if that aide is required by the child's individual 
 32.28  education plan; 
 32.29     (3) for special instruction and services provided to any 
 32.30  pupil by contracting with public, private, or voluntary agencies 
 32.31  other than school districts, in place of special instruction and 
 32.32  services provided by the district, 52 percent of the difference 
 32.33  between the amount of the contract and the basic revenue of the 
 32.34  district for that pupil for the fraction of the school day the 
 32.35  pupil receives services under the contract; 
 32.36     (4) for special instruction and services provided to any 
 33.1   pupil by contracting for services with public, private, or 
 33.2   voluntary agencies other than school districts, that are 
 33.3   supplementary to a full educational program provided by the 
 33.4   school district, 52 percent of the amount of the contract for 
 33.5   that pupil; 
 33.6      (5) for supplies and equipment purchased or rented for use 
 33.7   in the instruction of children with a disability, not including 
 33.8   the portion of the expenses for supplies and equipment used to 
 33.9   provide health-related services counted in clause (8), an amount 
 33.10  equal to 47 percent of the sum actually expended by the 
 33.11  district, or a Minnesota correctional facility operating on a 
 33.12  fee-for-service basis, but not to exceed an average of $47 in 
 33.13  any one school year for each child with a disability receiving 
 33.14  instruction; 
 33.15     (6) for fiscal years 1997 and later, special education base 
 33.16  revenue shall include amounts under clauses (1) to (5) for 
 33.17  special education summer programs provided during the base year 
 33.18  for that fiscal year; and 
 33.19     (7) for fiscal years 1999 and later, the cost of providing 
 33.20  transportation services for children with disabilities under 
 33.21  section 123B.92, subdivision 1, paragraph (b), clause (4); and 
 33.22     (8) for fiscal years 2001 and later, the cost of salaries, 
 33.23  supplies and equipment, and other related costs actually 
 33.24  expended by the district for the nonfederal share of medical 
 33.25  assistance services according to section 256B.0625, subdivision 
 33.26  26. 
 33.27     The department shall establish procedures through the 
 33.28  Uniform Financial Accounting and Reporting System to identify 
 33.29  and track all revenues generated from third-party billings as 
 33.30  special education revenue at the school district level; include 
 33.31  revenue generated from third-party billings as special education 
 33.32  revenue in the annual cross subsidy report; and exclude 
 33.33  third-party revenue from calculation of excess cost aid to the 
 33.34  districts. 
 33.35     (b) If requested by a school district operating a special 
 33.36  education program during the base year for less than the full 
 34.1   fiscal year, or a school district in which is located a 
 34.2   Minnesota correctional facility operating on a fee-for-service 
 34.3   basis for less than the full fiscal year, the commissioner may 
 34.4   adjust the base revenue to reflect the expenditures that would 
 34.5   have occurred during the base year had the program been operated 
 34.6   for the full fiscal year. 
 34.7      (c) Notwithstanding paragraphs (a) and (b), the portion of 
 34.8   a school district's base revenue attributable to a Minnesota 
 34.9   correctional facility operating on a fee-for-service basis 
 34.10  during the facility's first year of operating on a 
 34.11  fee-for-service basis shall be computed using current year data. 
 34.12     Sec. 12.  Minnesota Statutes 1999 Supplement, section 
 34.13  125A.79, subdivision 1, is amended to read: 
 34.14     Subdivision 1.  [DEFINITIONS.] For the purposes of this 
 34.15  section, the definitions in this subdivision apply. 
 34.16     (a) "Unreimbursed special education cost" means the sum of 
 34.17  the following: 
 34.18     (1) expenditures for teachers' salaries, contracted 
 34.19  services, supplies, equipment, and transportation services 
 34.20  eligible for revenue under section 125A.76; plus 
 34.21     (2) expenditures for tuition bills received under sections 
 34.22  125A.03 to 125A.24 and 125A.65 for services eligible for revenue 
 34.23  under sections 125A.76, subdivision 2, and 124.3202, subdivision 
 34.24  1; minus 
 34.25     (3) revenue for teachers' salaries, contracted services, 
 34.26  supplies, and equipment under sections 124.3202 and 124A.76; 
 34.27  minus 
 34.28     (4) tuition receipts under sections 125A.03 to 125A.24 and 
 34.29  125A.65 for services eligible for revenue under sections 
 34.30  124.3202, subdivision 1, and 124A.76, subdivision 2. 
 34.31     (b) "General revenue" means for fiscal year 1996, the sum 
 34.32  of the general education revenue according to section 126C.10, 
 34.33  subdivision 1, as adjusted according to section 127A.47, 
 34.34  subdivision 7, plus the total referendum revenue according to 
 34.35  section 126C.17, subdivision 4.  For fiscal years 1997 and 
 34.36  later, "general revenue" means the sum of the general education 
 35.1   revenue according to section 126C.10, subdivision 1, as adjusted 
 35.2   according to section 127A.47, subdivisions 7 and 8, plus the 
 35.3   total referendum revenue minus transportation sparsity revenue 
 35.4   minus total operating capital revenue.  For fiscal year 2001 
 35.5   only, "general revenue" means the sum of the general education 
 35.6   revenue according to section 126C.10, subdivision 1, as adjusted 
 35.7   according to section 127A.47, subdivisions 7 and 8, plus the 
 35.8   total referendum revenue minus transportation sparsity revenue 
 35.9   minus total operating capital revenue minus training and 
 35.10  experience adjustment revenue. 
 35.11     (c) "Average daily membership" has the meaning given it in 
 35.12  section 126C.05. 
 35.13     (d) "Program growth factor" means 1.044 for fiscal year 
 35.14  2002 and 1.02 for fiscal year 2003 and later. 
 35.15     Sec. 13.  Minnesota Statutes 1999 Supplement, section 
 35.16  125A.79, subdivision 2, is amended to read: 
 35.17     Subd. 2.  [EXCESS COST AID, FISCAL YEARS 2000 AND 2001.] 
 35.18  For fiscal years 2000 and 2001, a district's special education 
 35.19  excess cost aid equals the greatest of: 
 35.20     (a) 75 percent of the difference between (1) the district's 
 35.21  unreimbursed special education cost and (2) 4.4 4.37 percent of 
 35.22  the district's general revenue; 
 35.23     (b) 70 percent of the difference between (1) the increase 
 35.24  in the district's unreimbursed special education cost between 
 35.25  the base year as defined in section 125A.76, subdivision 1, and 
 35.26  the current year and (2) 1.6 percent of the district's general 
 35.27  revenue; or 
 35.28     (c) zero. 
 35.29     Sec. 14.  Minnesota Statutes 1999 Supplement, section 
 35.30  125A.79, subdivision 5, is amended to read: 
 35.31     Subd. 5.  [INITIAL EXCESS COST AID.] For fiscal years 2002 
 35.32  and later, a district's initial excess cost aid equals the 
 35.33  greatest of: 
 35.34     (1) 75 percent of the difference between (i) the district's 
 35.35  unreimbursed special education cost and (ii) 4.4 4.7 percent of 
 35.36  the district's general revenue; 
 36.1      (2) 70 percent of the difference between (i) the increase 
 36.2   in the district's unreimbursed special education cost between 
 36.3   the base year as defined in section 125A.76, subdivision 1, and 
 36.4   the current year and (ii) 1.6 percent of the district's general 
 36.5   revenue; or 
 36.6      (3) zero. 
 36.7      Sec. 15.  Minnesota Statutes 1999 Supplement, section 
 36.8   126C.44, is amended to read: 
 36.9      126C.44 [CRIME-RELATED COSTS LEVY.] 
 36.10     Each district may make a levy on all taxable property 
 36.11  located within the district for the purposes specified in this 
 36.12  subdivision section.  The maximum amount which may be levied for 
 36.13  all costs under this subdivision section shall be equal to 
 36.14  $1.50 $14.75 multiplied by the population of the school district 
 36.15  district's adjusted marginal cost pupil units for the school 
 36.16  year.  For purposes of this subdivision, "population" of the 
 36.17  school district means the same as contained in section 275.14.  
 36.18  The proceeds of the levy must be used for directly funding the 
 36.19  following purposes or for reimbursing the cities and counties 
 36.20  who contract with the district for the following purposes:  (1) 
 36.21  to pay the costs incurred for the salaries, benefits, and 
 36.22  transportation costs of peace officers and sheriffs for liaison 
 36.23  in services in the district's middle and secondary schools; (2) 
 36.24  to pay the costs for a drug abuse prevention program as defined 
 36.25  in Minnesota Statutes 1991 Supplement, section 609.101, 
 36.26  subdivision 3, paragraph (f), in the elementary schools; (3) to 
 36.27  pay the costs for a gang resistance education training 
 36.28  curriculum in the middle district's schools; or (4) to pay the 
 36.29  costs for security in the districts' schools and on school 
 36.30  property; or (5) to pay the costs for other crime prevention 
 36.31  and, drug abuse, student and staff safety, and violence 
 36.32  prevention measures taken by the school district.  The district 
 36.33  must initially attempt to contract for services to be provided 
 36.34  by peace officers or sheriffs with the police department of each 
 36.35  city or the sheriff's department of the county within the 
 36.36  district containing the school receiving the services.  If a 
 37.1   local police department or a county sheriff's department does 
 37.2   not wish to provide the necessary services, the district may 
 37.3   contract for these services with any other police or sheriff's 
 37.4   department located entirely or partially within the school 
 37.5   district's boundaries.  The levy authorized under 
 37.6   this subdivision section is not included in determining the 
 37.7   school district's levy limitations. 
 37.8      <h>EFFECTIVE DATE:</h>  This section is effective July 1, 2000, 
 37.9   for levies for taxes payable in 2001 and later. 
 37.10     Sec. 16.  Minnesota Statutes 1999 Supplement, section 
 37.11  127A.42, subdivision 3, is amended to read: 
 37.12     Subd. 3.  [ASSURANCE OF COMPLIANCE.] (a) After consultation 
 37.13  with the commissioner of human rights, the commissioner of 
 37.14  children, families, and learning shall adopt rules in 
 37.15  conformance with chapter 14.  The rules must direct districts to 
 37.16  file with the commissioner of children, families, and learning 
 37.17  assurances of compliance with state and federal laws prohibiting 
 37.18  discrimination and specify the information required to be 
 37.19  submitted in support of the assurances.  The commissioner shall 
 37.20  provide copies of the assurances and the supportive information 
 37.21  to the commissioner of human rights The assurances must be 
 37.22  provided in a form and manner prescribed by the commissioner.  
 37.23     (b) If, after reviewing the assurances and the supportive 
 37.24  information it appears that one or more violations of the 
 37.25  Minnesota Human Rights Act are occurring in the a district, the 
 37.26  commissioner of human rights shall notify the commissioner of 
 37.27  the violations, and the commissioner of children, families, and 
 37.28  learning may then proceed pursuant to subdivision 4. 
 37.29     Sec. 17.  Laws 1999, chapter 241, article 2, section 60, 
 37.30  subdivision 7, is amended to read: 
 37.31     Subd. 7.  [TRIBAL CONTRACT SCHOOLS.] For tribal contract 
 37.32  school aid according to Minnesota Statutes, section 124D.83: 
 37.33       $2,706,000 $1,671,000     .....     2000
 37.34       $2,790,000 $1,882,000     .....     2001
 37.35     The 2000 appropriation includes $283,000 for 1999 and 
 37.36  $2,423,000 $1,388,000 for 2000. 
 38.1      The 2001 appropriation includes $269,000 $154,000 for 2000 
 38.2   and $2,521,000 $1,728,000 for 2001. 
 38.3      Sec. 18.  Laws 1999, chapter 241, article 2, section 60, 
 38.4   subdivision 9, is amended to read: 
 38.5      Subd. 9.  [MAGNET SCHOOL GRANTS.] For magnet school and 
 38.6   program grants under Laws 1994, chapter 647, article 8, section 
 38.7   38: 
 38.8        $1,750,000     .....     2000 
 38.9        $1,750,000     .....     2001 
 38.10     These amounts may be used for magnet school programs 
 38.11  according to Minnesota Statutes, section 124D.88.  The budget 
 38.12  base for this program for fiscal year 2003 and each year 
 38.13  thereafter is $1,050,000. 
 38.14     Sec. 19.  Laws 1999, chapter 241, article 2, section 60, 
 38.15  subdivision 12, is amended to read: 
 38.16     Subd. 12.  [AID FOR CHILDREN WITH A DISABILITY.] For aid 
 38.17  according to Minnesota Statutes, section 125A.75, subdivision 3, 
 38.18  for children with a disability placed in residential facilities 
 38.19  within the district boundaries for whom no district of residence 
 38.20  can be determined: 
 38.21       $  443,000 $  433,000  .....     2000 
 38.22       $1,064,000 $4,263,000  .....     2001 
 38.23     If the appropriation for either year is insufficient, the 
 38.24  appropriation for the other year is available.  Any balance in 
 38.25  the first year does not cancel but is available in the second 
 38.26  year. 
 38.27     Sec. 20.  Laws 1999, chapter 241, article 2, section 60, 
 38.28  subdivision 13, is amended to read: 
 38.29     Subd. 13.  [TRAVEL FOR HOME-BASED SERVICES.] For aid for 
 38.30  teacher travel for home-based services according to Minnesota 
 38.31  Statutes, section 125A.75, subdivision 1: 
 38.32       $133,000 $125,000    .....     2000 
 38.33       $139,000 $130,000    .....     2001 
 38.34     The 2000 appropriation includes $11,000 for 1999 and 
 38.35  $122,000 $114,000 for 2000.  
 38.36     The 2001 appropriation includes $13,000 for 2000 and 
 39.1   $126,000 $117,000 for 2001.  
 39.2      Sec. 21.  Laws 1999, chapter 241, article 2, section 60, 
 39.3   subdivision 14, is amended to read: 
 39.4      Subd. 14.  [SPECIAL EDUCATION EXCESS COST AID.] For excess 
 39.5   cost aid: 
 39.6        $60,498,000 $66,032,000   .....     2000 
 39.7        $79,405,000 $89,072,000   .....     2001 
 39.8      The 2000 appropriation includes $4,693,000 for 1999 and 
 39.9   $55,805,000 $61,339,000 for 2000.  
 39.10     The 2001 appropriation includes $6,200,000 $6,815,000 for 
 39.11  2000 and $73,205,000 $82,257,000 for 2001. 
 39.12     Sec. 22.  Laws 1999, chapter 241, article 2, section 60, 
 39.13  subdivision 17, is amended to read: 
 39.14     Subd. 17.  [INTEGRATION AID.] For integration aid: 
 39.15       $37,182,000 $37,610,000  .....     2000 
 39.16       $43,787,000 $55,828,000  .....     2001 
 39.17     The 2000 appropriation includes $2,902,000 for 1999 and 
 39.18  $34,280,000 $34,708,000 for 2000. 
 39.19     The 2001 appropriation includes $3,809,000 $3,856,000 for 
 39.20  2000 and $39,978,000 $51,972,000 for 2001.  
 39.21     Sec. 23.  Laws 1999, chapter 241, article 2, section 60, 
 39.22  subdivision 19, is amended to read: 
 39.23     Subd. 19.  [INTERDISTRICT DESEGREGATION OR INTEGRATION 
 39.24  TRANSPORTATION AID.] (a) For interdistrict desegregation or 
 39.25  integration transportation aid under Minnesota Statutes, section 
 39.26  124D.87: 
 39.27       $970,000     .....     2000 
 39.28       $970,000     .....     2001 
 39.29     Any balance in the first year does not cancel but is 
 39.30  available in the second year. 
 39.31     (b) The budget base for this program for fiscal year 2002 
 39.32  is $500,000.  This amount may be spent for interdistrict 
 39.33  desegregation or integration transportation aid.  For fiscal 
 39.34  year 2003 and later, the budget base for this program is the 
 39.35  forecasted cost of fully reimbursing districts according to 
 39.36  Minnesota Statutes, section 124D.87. 
 40.1      Sec. 24.  [SPECIAL EDUCATION CROSS-SUBSIDY REVENUE.] 
 40.2      For fiscal year 2000, a school district shall receive an 
 40.3   amount of revenue equal to $15 times the district's adjusted 
 40.4   marginal cost pupil units.  For fiscal year 2001, a school 
 40.5   district shall receive an amount of revenue equal to $35 times 
 40.6   the district's adjusted marginal cost pupil units.  Special 
 40.7   education cross-subsidy revenue must be used to pay for a 
 40.8   district's unfunded special education costs that are currently 
 40.9   cross-subsidized by a district's general education revenue. 
 40.10     Sec. 25.  [STUDY.] 
 40.11     The commissioner of children, families, and learning shall 
 40.12  contract with a qualified expert to determine and report the 
 40.13  number and overall incidence rate of Minnesota school children, 
 40.14  by district, age, grade level, gender, and race, diagnosed with 
 40.15  attention deficit disorder (ADD) or attention deficit 
 40.16  hyperactivity disorder (ADHD) currently taking amphetamine 
 40.17  prescription drugs such as Ritalin.  In preparing the report, 
 40.18  the contractor also must determine the number and overall 
 40.19  incidence rate of students not identified with ADD or ADHD 
 40.20  currently taking amphetamine prescription drugs such as 
 40.21  Ritalin.  The commissioner, the commissioner's designee, and 
 40.22  school districts must comply with Minnesota Statutes, chapter 
 40.23  13, when gathering data for this report.  The commissioner must 
 40.24  submit the report and any recommendations to the education 
 40.25  committees of the legislature by February 15, 2001. 
 40.26     Sec. 26.  [FEDERAL MANDATE.] 
 40.27     The legislature of the state of Minnesota strongly supports 
 40.28  governor Jesse Ventura's efforts to have Congress speedily enact 
 40.29  legislation to fund at least 40 percent of the cost of special 
 40.30  education services provided as a result of the federal mandate 
 40.31  to provide a free and appropriate public education for students 
 40.32  with disabilities. Current federal requirements impede the 
 40.33  ability of the state and school districts to adequately fund 
 40.34  kindergarten through grade 12 education for all students. 
 40.35     Sec. 27.  [APPROPRIATIONS.] 
 40.36     Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
 41.1   LEARNING.] The sums indicated in this section are appropriated 
 41.2   from the general fund to the department of children, families, 
 41.3   and learning for the fiscal years designated. 
 41.4      Subd. 2.  [LITTLE FALLS; REVENUE REIMBURSEMENT.] For 
 41.5   independent school district No. 482, Little Falls, for partial 
 41.6   reimbursement of revenue returned to the state as a result of a 
 41.7   finding that the district had over-counted kindergarten pupils 
 41.8   in earlier years: 
 41.9        $300,000     .....     2000 
 41.10     Revenue appropriated to the district under this subdivision 
 41.11  must be used for all-day kindergarten services and must be 
 41.12  matched by fees collected from parents by the district for 
 41.13  providing all-day kindergarten services. 
 41.14     Subd. 3.  [NORTHLAND LEARNING CENTER.] For a grant to the 
 41.15  Northland joint powers board for start-up costs associated with 
 41.16  the delay of special education funding for the Northland 
 41.17  learning center: 
 41.18       $200,000     .....     2001 
 41.19     Subd. 4.  [MAGNET SCHOOL START-UP AID.] For magnet school 
 41.20  start-up aid under Minnesota Statutes, section 124D.88: 
 41.21       $250,000     .....     2001 
 41.22     Subd. 5.  [SPECIAL EDUCATION CROSS-SUBSIDY REVENUE.] For 
 41.23  special education cross-subsidy revenue: 
 41.24       $14,537,000     .....     2000 
 41.25       $33,829,000     .....     2001 
 41.26     Subd. 6.  [STUDY.] For a report on the number and overall 
 41.27  incident rate of Minnesota school children diagnosed with 
 41.28  attention deficit disorder or attention deficit hyperactivity 
 41.29  disorder: 
 41.30       $40,000     .....     2001 
 41.31     Subd. 7.  [GRANT TO INDEPENDENT SCHOOL DISTRICT NO. 707, 
 41.32  NETT LAKE.] For a grant to independent school district No. 707, 
 41.33  Nett Lake, to pay obligations of the school district for 
 41.34  unemployment compensation.  The appropriation must be paid to 
 41.35  the appropriate state agency for such purposes in the name of 
 41.36  the school district: 
 42.1        $ 30,000     .....     2001
 42.2      Sec. 28.  [REPEALER.] 
 42.3      Minnesota Rules, part 3535.9920, is repealed. 
 42.4                              ARTICLE 3
 42.5                   EMPLOYMENT AND OTHER TRANSITIONS
 42.6      Section 1.  Minnesota Statutes 1998, section 124D.44, is 
 42.7   amended to read: 
 42.8      124D.44 [MATCH REQUIREMENTS.] 
 42.9      Youth works grant funds must be used for the living 
 42.10  allowance, cost of employer taxes under sections 3111 and 3301 
 42.11  of the Internal Revenue Code of 1986, workers' compensation 
 42.12  coverage, and health benefits for each program participant, and 
 42.13  administrative expenses, which must not exceed five percent of 
 42.14  total program costs.  Youthworks grant funds may also be used to 
 42.15  supplement applicant resources to fund postservice benefits for 
 42.16  program participants.  Applicant resources, from sources and in 
 42.17  a form determined by the commission and, beginning January 1, 
 42.18  1997, the council, must be used to provide for all other program 
 42.19  costs, including the portion of the applicant's obligation for 
 42.20  postservice benefits that is not covered by state or federal 
 42.21  grant funds and such costs as supplies, materials, 
 42.22  transportation, and salaries and benefits of those staff 
 42.23  directly involved in the operation, internal monitoring, and 
 42.24  evaluation of the program.  Administrative expenses must not 
 42.25  exceed five percent of total program costs. 
 42.26     Sec. 2.  Minnesota Statutes 1998, section 124D.454, 
 42.27  subdivision 4, is amended to read: 
 42.28     Subd. 4.  [ADJUSTED SECONDARY 
 42.29  VOCATIONAL-DISABLED TRANSITION-DISABLED BASE REVENUE.] For 
 42.30  fiscal year 1996 and later, a district's adjusted secondary 
 42.31  vocational-disabled transition-disabled base revenue equals the 
 42.32  district's secondary vocational-disabled transition-disabled 
 42.33  base revenue times the ratio of the district's average daily 
 42.34  membership for the current school year to the district's average 
 42.35  daily membership for the base year. 
 42.36     Sec. 3.  Minnesota Statutes 1998, section 124D.454, 
 43.1   subdivision 6, is amended to read: 
 43.2      Subd. 6.  [SCHOOL DISTRICT SECONDARY 
 43.3   VOCATIONAL-DISABLED TRANSITION-DISABLED REVENUE.] (a) A school 
 43.4   district's secondary vocational-disabled transition-disabled 
 43.5   revenue for fiscal year 1996 and later equals the state 
 43.6   total secondary vocational-disabled transition-disabled revenue, 
 43.7   minus the amount determined under paragraph (b), times the ratio 
 43.8   of the district's adjusted secondary 
 43.9   vocational-disabled transition-disabled base revenue to the 
 43.10  state total adjusted secondary 
 43.11  vocational-disabled transition-disabled base revenue. 
 43.12     (b) Notwithstanding paragraph (a), if the secondary 
 43.13  vocational-disabled transition-disabled base revenue for a 
 43.14  district equals zero and no district residents were enrolled 
 43.15  in secondary vocational-disabled transition-disabled programs 
 43.16  during the base year, the secondary 
 43.17  vocational-disabled transition-disabled revenue equals the 
 43.18  amount computed according to subdivision 3 using current year 
 43.19  data. 
 43.20     Sec. 4.  Minnesota Statutes 1998, section 124D.454, 
 43.21  subdivision 7, is amended to read: 
 43.22     Subd. 7.  [SCHOOL DISTRICT SECONDARY 
 43.23  VOCATIONAL-DISABLED TRANSITION-DISABLED AID.] A school 
 43.24  district's secondary vocational-disabled transition-disabled aid 
 43.25  for fiscal year 1996 and later equals the district's secondary 
 43.26  vocational-disabled transition-disabled revenue times the aid 
 43.27  percentage factor for that year. 
 43.28     Sec. 5.  Laws 1997, chapter 157, section 71, as amended by 
 43.29  Laws 1998, chapter 398, article 3, section 11, is amended to 
 43.30  read: 
 43.31     Sec. 71.  [SCHOOL BANK PILOT PROJECT BANKS.] 
 43.32     (a) A school bank sponsored by independent school district 
 43.33  No. 31, Bemidji, independent school district No. 316, 
 43.34  Greenway-Coleraine, independent school district No. 2170, 
 43.35  Staples-Motley, or by independent school district No. 508, St. 
 43.36  Peter, that meets all requirements of paragraph (b) is not 
 44.1   subject to Minnesota Statutes, section 47.03, subdivision 1, or 
 44.2   to any other statute or rule that regulates banks, other 
 44.3   financial institutions, or currency exchanges. 
 44.4      (b) To qualify under paragraph (a), the school bank must: 
 44.5      (1) be operated as part of a high school educational 
 44.6   program and under guidelines adopted by the school board; 
 44.7      (2) be advised on a regular basis by one or more 
 44.8   state-chartered or federally-chartered federally chartered 
 44.9   financial institutions, but not owned or operated by any 
 44.10  financial institution; 
 44.11     (3) be located on school premises and have as customers 
 44.12  only students enrolled in, or employees of, the school in which 
 44.13  it is located; and 
 44.14     (4) have a written commitment from the school board, 
 44.15  guaranteeing reimbursement of any depositor's funds lost due to 
 44.16  insolvency of the school bank. 
 44.17     (c) Funds of a school bank that meets the requirements of 
 44.18  this section are not school district or other public funds for 
 44.19  purposes of any state law governing the use or investment of 
 44.20  school district or other public funds. 
 44.21     (d) The school district shall annually file with the 
 44.22  commissioner of commerce a report, prepared by the students and 
 44.23  teachers involved, summarizing the operation of the school bank. 
 44.24     (e) This section expires June 30, 2000.  The commissioner 
 44.25  of commerce shall, no later than December 15, 1999, provide a 
 44.26  written report to the legislature regarding this pilot project 
 44.27  and any recommended legislation regarding school banks. 
 44.28     <h>EFFECTIVE DATE:</h>  This section is effective the day 
 44.29  following final enactment. 
 44.30     Sec. 6.  Laws 1999, chapter 241, article 3, section 3, 
 44.31  subdivision 2, is amended to read: 
 44.32     Subd. 2.  [SECONDARY VOCATIONAL EDUCATION AID.] For 
 44.33  secondary vocational education aid according to Minnesota 
 44.34  Statutes, section 124D.453: 
 44.35       $11,335,000 $12,413,000    .....     2000 
 44.36       $1,130,000  $ 1,250,000    .....     2001 
 45.1      The 2000 appropriation includes $1,159,000 for 1999 and 
 45.2   $10,176,000 $11,254,000 for 2000.  The 2001 appropriation 
 45.3   includes $1,130,000 $1,250,000 for 2000.  
 45.4      <h>EFFECTIVE DATE:</h>  This section is effective the day 
 45.5   following final enactment. 
 45.6      Sec. 7.  Laws 1999, chapter 241, article 3, section 3, 
 45.7   subdivision 4, is amended to read: 
 45.8      Subd. 4.  [EDUCATION AND EMPLOYMENT TRANSITIONS PROGRAM 
 45.9   GRANTS.] For education and employment transitions programming 
 45.10  under Minnesota Statutes, section 124D.46: 
 45.11       $3,225,000     .....     2000 
 45.12       $3,225,000     .....     2001 
 45.13     $200,000 each year is for the development and 
 45.14  implementation of the ISEEK Internet-based education and 
 45.15  employment information system. 
 45.16     $1,000,000 each year is for an employer rebate program for 
 45.17  qualifying employers who offer youth internships to educators. 
 45.18     $500,000 each year is for youth entrepreneurship grants.  
 45.19     $750,000 each year is for youth apprenticeship grants. 
 45.20     $300,000 each year is for grants to programs in cities of 
 45.21  the first class to expand the number of at-risk students 
 45.22  participating in school-to-work projects. 
 45.23     $350,000 each year is for agricultural school-to-work 
 45.24  grants. 
 45.25     $125,000 each year is to conduct a high school follow-up 
 45.26  survey to include first, third, and sixth year graduates of 
 45.27  Minnesota schools. 
 45.28     Any balance in the first year does not cancel but is 
 45.29  available in the second year. 
 45.30                             ARTICLE 4 
 45.31                     FACILITIES AND TECHNOLOGY 
 45.32     Section 1.  Minnesota Statutes 1998, section 123B.51, 
 45.33  subdivision 6, is amended to read: 
 45.34     Subd. 6.  [PROCEEDS OF SALE OR EXCHANGE.] (a) Proceeds of 
 45.35  the sale or exchange of school buildings or real property of the 
 45.36  district must be used as provided in this subdivision. 
 46.1      (b) In districts with outstanding bonds, the proceeds of 
 46.2   the sale or exchange shall first be deposited in the debt 
 46.3   retirement fund of the district in an amount sufficient to meet 
 46.4   when due that percentage of the principal and interest payments 
 46.5   for outstanding bonds which is ascribable to the payment of 
 46.6   expenses necessary and incidental to the construction or 
 46.7   purchase of the particular building or property which is sold.  
 46.8      (c) After satisfying the requirements of paragraph (b), a 
 46.9   district with outstanding bonds may deposit proceeds of the sale 
 46.10  or exchange in its capital expenditure fund general fund 
 46.11  reserved for operating capital account if the amount deposited 
 46.12  is used for the following:  
 46.13     (1) for expenditures for the cleanup of polychlorinated 
 46.14  biphenyls, if the method for cleanup is approved by the 
 46.15  department; 
 46.16     (2) for capital expenditures for the betterment, as defined 
 46.17  in section 475.51, subdivision 8, of district-owned school 
 46.18  buildings; or 
 46.19     (3) to replace the building or property sold.  
 46.20     (d) In a district with outstanding bonds, the amount of the 
 46.21  proceeds of the sale or exchange remaining after the application 
 46.22  of paragraphs (b) and (c), which is sufficient to meet when due 
 46.23  that percentage of the principal and interest payments for the 
 46.24  district's outstanding bonds which is not governed by paragraph 
 46.25  (b), shall be deposited in the debt retirement fund.  
 46.26     (e) Any proceeds of the sale or exchange remaining in 
 46.27  districts with outstanding bonds after the application of 
 46.28  paragraphs (b), (c), and (d), and all proceeds of the sale or 
 46.29  exchange in districts without outstanding bonds shall be 
 46.30  deposited in the capital expenditure general fund reserved for 
 46.31  operating capital account of the district. 
 46.32     (f) Notwithstanding paragraphs (c) and (d), a district with 
 46.33  outstanding bonds may deposit in its capital expenditure general 
 46.34  fund reserved for operating capital account and use for any 
 46.35  lawful operating capital expenditure without the reduction of 
 46.36  any levy limitation the same percentage of the proceeds of the 
 47.1   sale or exchange of a building or property as the percentage of 
 47.2   the initial cost of purchasing or constructing the building or 
 47.3   property which was paid using revenue from the capital 
 47.4   expenditure general fund reserved for operating capital account. 
 47.5      Sec. 2.  Minnesota Statutes 1998, section 123B.53, as 
 47.6   amended by Laws 1999, chapter 241, is amended to read: 
 47.7      123B.53 [DEBT SERVICE FACILITIES EQUALIZATION PROGRAM.] 
 47.8      Subdivision 1.  [DEFINITIONS.] (a) For purposes of this 
 47.9   section, the eligible debt service facilities revenue of a 
 47.10  district is defined as follows: 
 47.11     (1) the amount needed to produce between five and six 
 47.12  percent in excess of the amount needed to meet when due the 
 47.13  principal and interest payments on the obligations of the 
 47.14  district for eligible projects according to subdivision 2, 
 47.15  including the amounts necessary for repayment of energy loans 
 47.16  according to section 216C.37 or sections 298.292 to 298.298 
 47.17  126C.40, subdivision 5, debt service loans and capital loans, 
 47.18  lease purchase payments under section 126C.40, subdivision 2 
 47.19  subdivisions 2 and 6; Laws 1995, First Special Session chapter 
 47.20  3, article 5, section 19; and Laws 1997, First Special Session 
 47.21  chapter 4, article 4, section 30, alternative facilities levies 
 47.22  revenue under section 123B.59, subdivision 5; health and safety 
 47.23  revenue, under section 123B.57, subdivision 3; handicapped 
 47.24  access and fire safety revenue, under section 123B.58, 
 47.25  subdivision 3; building construction and lease revenue, under 
 47.26  section 123B.63, subdivision 3; building lease revenue, under 
 47.27  section 126C.40, subdivision 1; and cooperative building repair 
 47.28  revenue, under section 126C.40, subdivision 3, minus 
 47.29     (2) the amount of debt service excess levy reduction for 
 47.30  that school year calculated according to the procedure 
 47.31  established by the commissioner. 
 47.32     (b) The obligations in this paragraph are excluded from 
 47.33  eligible debt service facilities revenue: 
 47.34     (1) obligations under section 123B.61; 
 47.35     (2) the part of debt service principal and interest paid 
 47.36  from the taconite environmental protection fund or northeast 
 48.1   Minnesota economic protection trust; 
 48.2      (3) obligations issued under Laws 1991, chapter 265, 
 48.3   article 5, section 18, as amended by Laws 1992, chapter 499, 
 48.4   article 5, section 24; and 
 48.5      (4) obligations under section 123B.62. 
 48.6      (c) For purposes of this section, if a preexisting school 
 48.7   district reorganized under sections 123A.35 to 123A.43, 123A.46, 
 48.8   and 123A.48 is solely responsible for retirement of the 
 48.9   preexisting district's bonded indebtedness, capital loans or 
 48.10  debt service loans, debt service facilities equalization aid 
 48.11  must be computed separately for each of the preexisting 
 48.12  districts. 
 48.13     Subd. 2.  [ELIGIBILITY.] (a) The following portions of a 
 48.14  district's debt service levy facilities revenue qualify for debt 
 48.15  service facilities equalization: 
 48.16     (1) debt service for repayment of principal and interest on 
 48.17  bonds issued before July 2, 1992; 
 48.18     (2) debt service for bonds refinanced after July 1, 1992, 
 48.19  if the bond schedule has been approved by the commissioner and, 
 48.20  if necessary, adjusted to reflect a 20-year maturity schedule; 
 48.21  and 
 48.22     (3) debt service for bonds issued after July 1, 1992, for 
 48.23  construction projects that have received a positive review and 
 48.24  comment according to section 123B.71, if the commissioner has 
 48.25  determined that the district has met the criteria under section 
 48.26  126C.69, subdivision 3, except section 126C.69, subdivision 3, 
 48.27  paragraph (a), clause (2), and if the bond schedule has been 
 48.28  approved by the commissioner and, if necessary, adjusted to 
 48.29  reflect a 20-year maturity schedule; 
 48.30     (4) alternative facilities revenue, according to section 
 48.31  123B.59, subdivision 5; 
 48.32     (5) health and safety revenue, according to section 
 48.33  123B.57, subdivision 3; 
 48.34     (6) handicapped access and fire safety revenue, according 
 48.35  to section 123B.58, subdivision 3; 
 48.36     (7) building construction and lease revenue, according to 
 49.1   section 123B.63, subdivision 3; 
 49.2      (8) building lease revenue, according to section 126C.40, 
 49.3   subdivision 1; and 
 49.4      (9) cooperative building repair revenue, according to 
 49.5   section 126C.40, subdivision 3. 
 49.6      (b) The criterion described in section 126C.69, subdivision 
 49.7   3, paragraph (a), clause (9), does not apply to bonds authorized 
 49.8   by elections held before July 1, 1992. 
 49.9      (c) For the purpose of this subdivision the department 
 49.10  shall determine the eligibility for sparsity at the location of 
 49.11  the new facility, or the site of the new facility closest to the 
 49.12  nearest operating school if there is more than one new facility. 
 49.13     (d) Notwithstanding paragraphs (a) to (c), debt service for 
 49.14  repayment of principal and interest on bonds issued after July 
 49.15  1, 1997, does or leases on buildings do not qualify for debt 
 49.16  service equalization aid unless the primary purpose of the 
 49.17  facility is to serve students in kindergarten through grade 12. 
 49.18     Subd. 3.  [NOTIFICATION.] A district eligible for debt 
 49.19  service facilities equalization revenue under subdivision 2 must 
 49.20  notify the commissioner of the amount of its intended debt 
 49.21  service facilities equalization revenue calculated under 
 49.22  subdivision 1 for all bonds sold prior to the notification by 
 49.23  July 1 of the calendar year the levy is certified. 
 49.24     Subd. 4.  [DEBT SERVICE FACILITIES EQUALIZATION REVENUE.] 
 49.25  The debt service facilities equalization revenue of a district 
 49.26  equals the eligible debt service facilities equalization revenue 
 49.27  minus the amount raised by a levy of 12 11 percent times the 
 49.28  adjusted net tax capacity of the district. 
 49.29     Subd. 5.  [EQUALIZED DEBT SERVICE FACILITIES LEVY.] To 
 49.30  obtain debt service facilities equalization revenue, a district 
 49.31  must levy an amount not to exceed the district's debt service 
 49.32  facilities equalization revenue times the lesser of one or the 
 49.33  ratio of: 
 49.34     (1) the quotient derived by dividing the adjusted net tax 
 49.35  capacity of the district for the year before the year the levy 
 49.36  is certified by the adjusted pupil units in the district for the 
 50.1   school year ending in the year prior to the year the levy is 
 50.2   certified; to 
 50.3      (2) $4,000 $4,210. 
 50.4      Subd. 6.  [DEBT SERVICE FACILITIES EQUALIZATION AID.] A 
 50.5   district's debt service facilities equalization aid is the 
 50.6   difference between the debt service facilities equalization 
 50.7   revenue and the equalized debt service facilities levy.  If a 
 50.8   district does not levy the entire amount permitted, the 
 50.9   district's aid must be reduced in proportion to the amount 
 50.10  levied. 
 50.11     Subd. 7.  [DEBT SERVICE FACILITIES EQUALIZATION AID PAYMENT 
 50.12  SCHEDULE.] Debt service Facilities equalization aid must be paid 
 50.13  according to section 127A.45, subdivision 10. 
 50.14     Subd. 8.  [DEBT SERVICE PRIORITY.] Of the amount paid under 
 50.15  this section, the district must first allocate the amount 
 50.16  attributable to obligations under chapter 475.  Remaining aid 
 50.17  may be used for other purposes of this section. 
 50.18     <h>EFFECTIVE DATE:</h>  This section is effective for revenue for 
 50.19  fiscal year 2002 and thereafter.  
 50.20     Sec. 3.  Minnesota Statutes 1999 Supplement, section 
 50.21  123B.54, is amended to read: 
 50.22     123B.54 [DEBT SERVICE FACILITIES EQUALIZATION 
 50.23  APPROPRIATION.] 
 50.24     (a) $33,165,000 in fiscal year 2000, $32,057,000 in fiscal 
 50.25  year 2001, and $31,280,000 $44,407,000 in fiscal year 2002 and 
 50.26  each year thereafter is appropriated from the general fund to 
 50.27  the commissioner of children, families, and learning for payment 
 50.28  of debt service facilities equalization aid under section 
 50.29  123B.53.  The 2002 appropriation includes $3,201,000 for 2001 
 50.30  and $29,079,000 $41,206,000 for 2002. 
 50.31     (b) The appropriations in paragraph (a) must be reduced by 
 50.32  the amount of any money specifically appropriated for the same 
 50.33  purpose in any year from any state fund. 
 50.34     Sec. 4.  Minnesota Statutes 1998, section 123B.57, 
 50.35  subdivision 1, is amended to read: 
 50.36     Subdivision 1.  [HEALTH AND SAFETY PROGRAM.] To receive 
 51.1   health and safety revenue for any fiscal year a district must 
 51.2   submit to the commissioner an application for aid and levy 
 51.3   revenue by the date determined by the commissioner.  The 
 51.4   application may be for hazardous substance removal, fire and 
 51.5   life safety code repairs, labor and industry regulated facility 
 51.6   and equipment violations, and health, safety, and environmental 
 51.7   management, including indoor air quality management.  The 
 51.8   application must include a health and safety program adopted by 
 51.9   the school district board.  The program must include the 
 51.10  estimated cost, per building, of the program by fiscal year. 
 51.11     <h>EFFECTIVE DATE:</h>  This section is effective for revenue for 
 51.12  fiscal year 2002 and thereafter.  
 51.13     Sec. 5.  Minnesota Statutes 1998, section 123B.58, 
 51.14  subdivision 3, is amended to read: 
 51.15     Subd. 3.  [LEVY AUTHORITY REVENUE.] The district may levy 
 51.16  is eligible for revenue up to $300,000 under this section, as 
 51.17  approved by the commissioner.  The approved amount may be levied 
 51.18  received over eight or fewer years. 
 51.19     <h>EFFECTIVE DATE:</h>  This section is effective for revenue for 
 51.20  fiscal year 2002 and thereafter.  
 51.21     Sec. 6.  Minnesota Statutes 1998, section 123B.58, 
 51.22  subdivision 4, is amended to read: 
 51.23     Subd. 4.  [LEVY AUTHORITY REVENUE IN COMBINED DISTRICTS.] 
 51.24  Notwithstanding subdivision 3, a district that has combined or 
 51.25  consolidated may levy receive revenue up to 50 percent times 
 51.26  $300,000 times the number of former districts that operated on 
 51.27  June 30, 1991, in the area that now makes up the combined or 
 51.28  consolidated district.  The approved amount is reduced by any 
 51.29  amount levied under subdivision 3 in the consolidated or 
 51.30  combined district or in the former districts that make up the 
 51.31  consolidated or combined district.  Levy authority under this 
 51.32  subdivision expires at the same time as levy authority under 
 51.33  subdivision 3. 
 51.34     <h>EFFECTIVE DATE:</h>  This section is effective for revenue for 
 51.35  fiscal year 2002 and thereafter.  
 51.36     Sec. 7.  Minnesota Statutes 1998, section 123B.59, as 
 52.1   amended by Laws 1999, chapter 241, is amended to read: 
 52.2      123B.59 [ALTERNATIVE FACILITIES BONDING AND LEVY REVENUE 
 52.3   PROGRAM.] 
 52.4      Subdivision 1.  [TO QUALIFY.] An independent or special 
 52.5   school district qualifies to participate in the alternative 
 52.6   facilities bonding and levy revenue program if the district has: 
 52.7      (1) more than 66 students per grade; 
 52.8      (2) over 1,850,000 square feet of space; 
 52.9      (3) average age of building space is 15 years or older; 
 52.10     (4) insufficient funds from projected health and safety 
 52.11  revenue and capital facilities revenue to meet the requirements 
 52.12  for deferred maintenance, to make accessibility improvements, or 
 52.13  to make fire, safety, or health repairs; and 
 52.14     (5) a ten-year facility plan approved by the commissioner 
 52.15  according to subdivision 2. 
 52.16     Subd. 2.  [TEN-YEAR PLAN.] (a) A qualifying district must 
 52.17  have a ten-year facility plan approved by the commissioner that 
 52.18  includes an inventory of projects and costs that would be 
 52.19  eligible for: 
 52.20     (1) health and safety revenue; 
 52.21     (2) disabled access levy; and 
 52.22     (3) deferred capital expenditures and maintenance projects 
 52.23  necessary to prevent further erosion of facilities. 
 52.24     (b) The school district must: 
 52.25     (1) annually update the plan; 
 52.26     (2) biennially submit a facility maintenance plan; and 
 52.27     (3) indicate whether the district will issue bonds to 
 52.28  finance the plan or levy annually include program revenue under 
 52.29  the facilities equalization program, under section 123B.53, for 
 52.30  the costs. 
 52.31     Subd. 3.  [BOND AUTHORIZATION.] A school district, upon 
 52.32  approval of its board and the commissioner, may issue general 
 52.33  obligation bonds under this section to finance approved 
 52.34  facilities plans.  Chapter 475, except sections 475.58 and 
 52.35  475.59, must be complied with.  The district may levy under 
 52.36  subdivision 5 for the debt service revenue.  The authority to 
 53.1   issue bonds under this section is in addition to any bonding 
 53.2   authority authorized by this chapter, or other law.  The amount 
 53.3   of bonding authority authorized under this section must be 
 53.4   disregarded in calculating the bonding or net debt limits of 
 53.5   this chapter, or any other law other than section 475.53, 
 53.6   subdivision 4. 
 53.7      Subd. 4.  [LEVY PROHIBITED FOR CAPITAL PROJECTS.] A 
 53.8   district that participates in the alternative facilities bonding 
 53.9   and levy revenue program is not eligible to levy and cannot 
 53.10  receive aid for revenue under sections 123B.57 and 123B.58 for 
 53.11  any capital projects funded under this section.  A district 
 53.12  may levy and receive aid for health and safety receive revenue 
 53.13  for environmental management costs and health and safety 
 53.14  regulatory, hazard assessment, record keeping, and maintenance 
 53.15  programs as defined in section 123A.443 123B.57, subdivision 2, 
 53.16  and approved by the commissioner. 
 53.17     Subd. 5.  [LEVY REVENUE AUTHORIZED.] A district, after 
 53.18  local board approval, may levy receive revenue for costs related 
 53.19  to an approved facility plan as follows:  
 53.20     (a) if the district has indicated to the commissioner that 
 53.21  bonds will be issued, the district may levy receive revenue for 
 53.22  the principal and interest payments on outstanding bonds issued 
 53.23  according to subdivision 3 after reduction for any alternative 
 53.24  facilities aid receivable under subdivision 6; or 
 53.25     (b) if the district has indicated to the commissioner that 
 53.26  the plan will be funded through levy authorized under section 
 53.27  123B.53, subdivision 5, the district may levy according to the 
 53.28  schedule approved in the plan after reduction for any 
 53.29  alternative facilities aid receivable under subdivision 6. 
 53.30     Subd. 6.  [ALTERNATIVE FACILITIES AID.] A district's 
 53.31  alternative facilities aid is the amount equal to the district's 
 53.32  annual debt service costs, provided that the amount does not 
 53.33  exceed the amount certified to be levied for those purposes for 
 53.34  taxes payable in 1997, or for a district that made a levy under 
 53.35  subdivision 5, paragraph (b), the lesser of the district's 
 53.36  annual levy amount, or one-sixth of the amount of levy that it 
 54.1   certified for that purpose for taxes payable in 1998. 
 54.2      Subd. 8.  [SEPARATE ACCOUNT.] A district must establish a 
 54.3   separate account under the uniform financial accounting and 
 54.4   reporting standards (UFARS) for this program.  If the district's 
 54.5   levy revenue exceeds the necessary interest and principal 
 54.6   payments and noncapital health and safety costs, the district 
 54.7   must reserve the revenue to replace future bonding authority, 
 54.8   prepay bonds authorized under this program, or make payments on 
 54.9   principal and interest. 
 54.10     <h>EFFECTIVE DATE:</h>  This section is effective for revenue for 
 54.11  fiscal year 2002 and thereafter.  
 54.12     Sec. 8.  Minnesota Statutes 1998, section 123B.63, 
 54.13  subdivision 3, is amended to read: 
 54.14     Subd. 3.  [FACILITIES DOWN PAYMENT LEVY REVENUE 
 54.15  REFERENDUM.] A district may levy the local tax rate receive 
 54.16  revenue under the facilities equalization program for the 
 54.17  purposes of financing the acquisition and betterment of a school 
 54.18  construction project or to pay for the lease on a new school 
 54.19  building used primarily for regular kindergarten, elementary, or 
 54.20  secondary instruction if authorization is approved by a majority 
 54.21  of the electors voting on the question to provide funds for a 
 54.22  down payment for an approved project.  The election must take 
 54.23  place no more than five years before the estimated date of 
 54.24  commencement of the project.  The referendum must be held on a 
 54.25  date set by the board.  A referendum for a project not receiving 
 54.26  a positive an unfavorable review and comment by the commissioner 
 54.27  under section 123B.71 must be approved by at least 60 percent of 
 54.28  the voters voting on the question at the election.  The 
 54.29  referendum may be called by the school board and may be held: 
 54.30     (1) separately, before an election for the issuance of 
 54.31  obligations for the project under chapter 475; or 
 54.32     (2) in conjunction with an election for the issuance of 
 54.33  obligations for the project under chapter 475; or 
 54.34     (3) notwithstanding section 475.59, as a conjunctive 
 54.35  question authorizing both the down payment levy revenue and the 
 54.36  issuance of obligations for the project under chapter 475.  Any 
 55.1   obligations authorized for a project may be issued within five 
 55.2   years of the date of the election. 
 55.3      The ballot must provide a general description of the 
 55.4   proposed project, state the estimated total cost of the project, 
 55.5   state whether the project has received a positive or negative 
 55.6   unfavorable review and comment from the commissioner, state the 
 55.7   maximum amount of the down payment equalized facility levy as a 
 55.8   percentage of net tax capacity, state the amount that will be 
 55.9   raised by that local tax rate in the first year it is to be 
 55.10  levied, and state the maximum number of years that the levy 
 55.11  authorization will apply. 
 55.12     The ballot must contain a textual portion with the 
 55.13  information required in this section and a question stating 
 55.14  substantially the following: 
 55.15     "Shall the down payment facility levy proposed by the board 
 55.16  of .......... School District No. .......... be approved?" 
 55.17     If approved, the amount provided by the approved local tax 
 55.18  rate applied to the net tax capacity for the year preceding the 
 55.19  year the levy is certified may be certified for the number of 
 55.20  years approved. 
 55.21     In the event a conjunctive question proposes to authorize 
 55.22  both the down payment equalized facilities levy, under section 
 55.23  123B.53, and the issuance of obligations for the project, 
 55.24  appropriate language authorizing the issuance of obligations 
 55.25  must also be included in the question.  
 55.26     The district must notify the commissioner of the results of 
 55.27  the referendum. 
 55.28     <h>EFFECTIVE DATE:</h>  This section is effective for revenue for 
 55.29  fiscal year 2002 and thereafter.  
 55.30     Sec. 9.  Minnesota Statutes 1998, section 123B.63, 
 55.31  subdivision 4, is amended to read: 
 55.32     Subd. 4.  [EXCESS BUILDING CONSTRUCTION FUND LEVY 
 55.33  PROCEEDS.] (a) For the purpose of a school construction project, 
 55.34  any funds remaining in the down payment account that are not 
 55.35  applied to the payment of the costs of the approved project 
 55.36  before its final completion must be transferred to the 
 56.1   district's debt redemption fund.  
 56.2      (b) For the purposes of a leased building, any funds that 
 56.3   are applied to the payment of the lease at the termination of 
 56.4   the lease must be transferred to the district's debt redemption 
 56.5   fund. 
 56.6      <h>EFFECTIVE DATE:</h>  This section is effective for revenue for 
 56.7   fiscal year 2002 and thereafter.  
 56.8      Sec. 10.  Minnesota Statutes 1998, section 123B.71, 
 56.9   subdivision 10, is amended to read: 
 56.10     Subd. 10.  [INDOOR AIR QUALITY.] A school board seeking a 
 56.11  review and comment under this section must submit information 
 56.12  demonstrating to the commissioner's satisfaction that: 
 56.13     (1) indoor air quality issues have been considered; and 
 56.14     (2) the architects and engineers designing the facility 
 56.15  will have professional liability insurance.  
 56.16     Plans submitted under subdivisions 3 and 4 for projects to 
 56.17  be placed in service after July 1, 2002, must demonstrate that: 
 56.18     (a) the facility's heating, ventilation, and air 
 56.19  conditioning systems meet or exceed the standards established by 
 56.20  code; and 
 56.21     (b) the facility's design will provide the ability for 
 56.22  monitoring of outdoor airflow and total airflow of ventilation 
 56.23  systems in new school facilities. 
 56.24     Sec. 11.  Minnesota Statutes 1998, section 123B.72, 
 56.25  subdivision 3, is amended to read: 
 56.26     Subd. 3.  [CERTIFICATION.] Prior to occupying or 
 56.27  reoccupying a school facility affected by this section, a school 
 56.28  board or its designee shall submit a document prepared by a 
 56.29  system inspector to the building official or to the 
 56.30  commissioner, verifying that the facility's heating, 
 56.31  ventilation, and air conditioning system has been installed and 
 56.32  operates according to design specifications and code, according 
 56.33  to section 123B.71, subdivision 10, clause (3).  A systems 
 56.34  inspector shall also verify that the facility's design will 
 56.35  provide the ability for monitoring of outdoor airflow and total 
 56.36  airflow of ventilation systems in new school facilities and that 
 57.1   any heating, ventilation, or air conditioning system that is 
 57.2   installed or modified for a project subject to this section must 
 57.3   provide a filtration system with a current ASHRAE standard. 
 57.4      <h>EFFECTIVE DATE:</h>  This section is effective on July 1, 2002. 
 57.5      Sec. 12.  [125B.25] [TELECOMMUNICATIONS ACCESS REVENUE.] 
 57.6      Subdivision 1.  [COSTS TO BE SUBMITTED.] A district shall 
 57.7   submit its outstanding ongoing or recurring telecommunications 
 57.8   access costs associated with data lines and video links to the 
 57.9   department of children, families, and learning.  Costs of 
 57.10  telecommunications hardware or equipment must not be included in 
 57.11  the costs submitted by districts to the department.  A district 
 57.12  may include installation charges associated with new lines or 
 57.13  upgraded lines, but may not include costs of hardware or 
 57.14  equipment. 
 57.15     Subd. 2.  [GUARANTEED MINIMUM ACCESS.] (a) The ongoing or 
 57.16  recurring telecommunications access costs submitted to the 
 57.17  department by each district under this section are limited to 
 57.18  the operation costs equal to the greater of: 
 57.19     (1) one data line or video link that relies on a transport 
 57.20  medium that operates at a minimum speed of 1.544 megabytes per 
 57.21  second for each elementary school, middle school, or high school 
 57.22  under section 120A.05, subdivisions 9, 11, and 13; or 
 57.23     (2) one data line or video link that relies on a transport 
 57.24  medium that operates at a minimum speed of 1.544 megabytes per 
 57.25  second for each district. 
 57.26     (b) A district may include costs associated with 
 57.27  cooperative arrangements with other post-secondary institutions, 
 57.28  school districts, and community and regional libraries in its 
 57.29  geographic region.  A district may continue to purchase its 
 57.30  ongoing or recurring telecommunications access services through 
 57.31  existing contracts. 
 57.32     Subd. 3.  [E-RATES.] To be eligible for revenue under this 
 57.33  section, a district is required to file an e-rate application 
 57.34  either separately or through their telecommunications grant 
 57.35  cluster.  Discounts received on telecommunications expenditures 
 57.36  shall be used to offset the amount submitted to the department 
 58.1   for per pupil revenue under this section. 
 58.2      Subd. 4.  [CALCULATION OF COSTS.] By February 15 of each 
 58.3   year, the commissioner shall calculate the ongoing or recurring 
 58.4   telecommunications access cost per adjusted marginal cost pupil 
 58.5   unit submitted by each school district under subdivisions 1 and 
 58.6   2 for the year in which the data is submitted minus the reserved 
 58.7   revenue under section 126C.10, subdivision 13, paragraph (d).  
 58.8   Districts shall submit their anticipated ongoing or recurring 
 58.9   telecommunications access costs, adjusted for any e-rate revenue 
 58.10  received to the department based on contracts entered into by 
 58.11  the district for that school year.  Districts shall also submit 
 58.12  their actual telecommunications access costs by August 15 of 
 58.13  each year and adjusted for any e-rate revenue received to the 
 58.14  department as prescribed by the commissioner. 
 58.15     Subd. 5.  [DISTRICT REVENUE.] A district shall receive an 
 58.16  amount equal to the amount as calculated by the commissioner 
 58.17  under subdivision 4, times the adjusted marginal cost pupil 
 58.18  units for that year, times 80 percent. 
 58.19     Subd. 6.  [REVENUE FOR CHARTER SCHOOLS.] Each charter 
 58.20  school shall receive revenue equal to the greater of: 
 58.21     (1) the per marginal cost pupil unit amount for the 
 58.22  district in which the charter school is located as determined by 
 58.23  the commissioner according to subdivision 4; or 
 58.24     (2) $5; 
 58.25  times the adjusted marginal cost pupil units for that year, 
 58.26  times 80 percent. 
 58.27     Subd. 7.  [REVENUE FOR NONPUBLIC SCHOOLS.] Notwithstanding 
 58.28  any other law to the contrary, each nonpublic school, not 
 58.29  including home schools, shall receive an amount equal to the 
 58.30  greater of: 
 58.31     (1) the per marginal cost pupil unit amount for the 
 58.32  district in which the nonpublic school is located as determined 
 58.33  by the commissioner according to subdivision 4; or 
 58.34     (2) $5; 
 58.35  times the number of pupils who are enrolled at the nonpublic 
 58.36  school as of October 1 of the current school year. 
 59.1      Subd. 8.  [REIMBURSEMENT CRITERIA.] The commissioner, 
 59.2   working with the commissioner of administration and the 
 59.3   Minnesota education telecommunications council, shall develop 
 59.4   reimbursement criteria that schools must address when submitting 
 59.5   ongoing or recurring telecommunications costs as determined in 
 59.6   subdivisions 1 and 2.  The criteria must assist schools to 
 59.7   procure telecommunications access services in the most efficient 
 59.8   and cost effective manner possible. 
 59.9      Subd. 9.  [EXPIRATION.] This section expires on July 1, 
 59.10  2003. 
 59.11     Sec. 13.  Minnesota Statutes 1999 Supplement, section 
 59.12  126C.10, subdivision 13, is amended to read: 
 59.13     Subd. 13.  [TOTAL OPERATING CAPITAL REVENUE.] (a) For 
 59.14  fiscal year 2000 and thereafter, total operating capital revenue 
 59.15  for a district equals the amount determined under paragraph (b) 
 59.16  or (c), plus $68 $73 times the adjusted marginal cost pupil 
 59.17  units for the school year.  The revenue must be placed in a 
 59.18  reserved account in the general fund and may only be used 
 59.19  according to paragraph (d) or subdivision 14. 
 59.20     (b) For fiscal years 2000 and later, capital revenue for a 
 59.21  district equals $100 times the district's maintenance cost index 
 59.22  times its adjusted marginal cost pupil units for the school year.
 59.23     (c) For fiscal years 2000 and later, the revenue for a 
 59.24  district that operates a program under section 124D.128, is 
 59.25  increased by an amount equal to $30 times the number of marginal 
 59.26  cost pupil units served at the site where the program is 
 59.27  implemented. 
 59.28     (d) For fiscal years 2001, 2002, and 2003, the district 
 59.29  must reserve an amount equal to $5 per adjusted marginal cost 
 59.30  pupil unit for telecommunication access costs.  Reserve revenue 
 59.31  under this paragraph must first be used to pay for ongoing or 
 59.32  recurring telecommunication access costs, including access to 
 59.33  data lines, video lines, or Internet access.  Any revenue 
 59.34  remaining after covering all ongoing or recurring access costs 
 59.35  may be used for computer hardware or equipment. 
 59.36     Sec. 14.  Minnesota Statutes 1998, section 126C.40, 
 60.1   subdivision 1, is amended to read: 
 60.2      Subdivision 1.  [TO LEASE BUILDING OR LAND.] (a) When a 
 60.3   district finds it economically advantageous to rent or lease a 
 60.4   building or land for any instructional purposes or for school 
 60.5   storage or furniture repair, and it determines that the 
 60.6   operating capital revenue authorized under section 126C.10, 
 60.7   subdivision 13, is insufficient for this purpose, it may apply 
 60.8   to the commissioner for permission to make an additional capital 
 60.9   expenditure levy increase its equalized facilities revenue under 
 60.10  section 123B.53, subdivision 5, for this purpose.  An 
 60.11  application for permission to levy under this subdivision 
 60.12  increase the equalized facilities revenue must contain financial 
 60.13  justification for the proposed levy increase, the terms and 
 60.14  conditions of the proposed lease, and a description of the space 
 60.15  to be leased and its proposed use.  
 60.16     (b) The criteria for approval of applications to levy under 
 60.17  this subdivision must include:  the reasonableness of the price, 
 60.18  the appropriateness of the space to the proposed activity, the 
 60.19  feasibility of transporting pupils to the leased building or 
 60.20  land, conformity of the lease to the laws and rules of the state 
 60.21  of Minnesota, and the appropriateness of the proposed lease to 
 60.22  the space needs and the financial condition of the district.  
 60.23  The commissioner must not authorize a levy revenue under this 
 60.24  subdivision in an amount greater than the cost to the district 
 60.25  of renting or leasing a building or land for approved purposes.  
 60.26  The proceeds of this levy must not be used for custodial or 
 60.27  other maintenance services.  A district may not levy receive 
 60.28  revenue under this subdivision for the purpose of leasing or 
 60.29  renting a district-owned building or site to itself. 
 60.30     (c) For agreements finalized after July 1, 1997, a district 
 60.31  may not levy receive revenue under this subdivision for the 
 60.32  purpose of leasing:  (1) a newly constructed building used 
 60.33  primarily for regular kindergarten, elementary, or secondary 
 60.34  instruction; or (2) a newly constructed building addition or 
 60.35  additions used primarily for regular kindergarten, elementary, 
 60.36  or secondary instruction that contains more than 20 percent of 
 61.1   the square footage of the previously existing building. 
 61.2      (d) The total levy revenue under this subdivision for a 
 61.3   district for any year must not exceed $100 times the resident 
 61.4   pupil units for the fiscal year to which the levy is 
 61.5   attributable. 
 61.6      (e) For agreements for which a review and comment have been 
 61.7   submitted to the department of children, families, and learning 
 61.8   after April 1, 1998, the term "instructional purpose" as used in 
 61.9   this subdivision excludes expenditures on stadiums. 
 61.10     <h>EFFECTIVE DATE:</h>  This section is effective for revenue for 
 61.11  fiscal year 2002 and thereafter.  
 61.12     Sec. 15.  Minnesota Statutes 1998, section 126C.40, 
 61.13  subdivision 1, is amended to read: 
 61.14     Subdivision 1.  [TO LEASE BUILDING OR LAND.] (a) When a 
 61.15  district finds it economically advantageous to rent or lease a 
 61.16  building or land for any instructional purposes or for school 
 61.17  storage or furniture repair, and it determines that the 
 61.18  operating capital revenue authorized under section 126C.10, 
 61.19  subdivision 13, is insufficient for this purpose, it may apply 
 61.20  to the commissioner for permission to make an additional capital 
 61.21  expenditure levy for this purpose.  An application for 
 61.22  permission to levy under this subdivision must contain financial 
 61.23  justification for the proposed levy, the terms and conditions of 
 61.24  the proposed lease, and a description of the space to be leased 
 61.25  and its proposed use.  
 61.26     (b) The criteria for approval of applications to levy under 
 61.27  this subdivision must include:  the reasonableness of the price, 
 61.28  the appropriateness of the space to the proposed activity, the 
 61.29  feasibility of transporting pupils to the leased building or 
 61.30  land, conformity of the lease to the laws and rules of the state 
 61.31  of Minnesota, and the appropriateness of the proposed lease to 
 61.32  the space needs and the financial condition of the district.  
 61.33  The commissioner must not authorize a levy under this 
 61.34  subdivision in an amount greater than the cost to the district 
 61.35  of renting or leasing a building or land for approved purposes.  
 61.36  The proceeds of this levy must not be used for custodial or 
 62.1   other maintenance services.  A district may not levy under this 
 62.2   subdivision for the purpose of leasing or renting a 
 62.3   district-owned building or site to itself. 
 62.4      (c) For agreements finalized after July 1, 1997, a district 
 62.5   may not levy under this subdivision for the purpose of leasing:  
 62.6   (1) a newly constructed building used primarily for regular 
 62.7   kindergarten, elementary, or secondary instruction; or (2) a 
 62.8   newly constructed building addition or additions used primarily 
 62.9   for regular kindergarten, elementary, or secondary instruction 
 62.10  that contains more than 20 percent of the square footage of the 
 62.11  previously existing building. 
 62.12     (d) Notwithstanding paragraph (b), a district may levy 
 62.13  under this subdivision for the purpose of leasing or renting a 
 62.14  district-owned building or site to itself only if the amount is 
 62.15  needed by the district to make payments required by a lease 
 62.16  purchase agreement, installment purchase agreement, or other 
 62.17  deferred payments agreement authorized by law, and the levy 
 62.18  meets the requirements of paragraph (c).  A levy authorized for 
 62.19  a district by the commissioner under this paragraph may be in 
 62.20  the amount needed by the district to make payments required by a 
 62.21  lease purchase agreement, installment purchase agreement, or 
 62.22  other deferred payments agreement authorized by law, provided 
 62.23  that any agreement include a provision giving the school 
 62.24  districts the right to terminate the agreement annually without 
 62.25  penalty. 
 62.26     (e) The total levy under this subdivision for a district 
 62.27  for any year must not exceed $100 times the resident pupil units 
 62.28  for the fiscal year to which the levy is attributable. 
 62.29     (e) (f) For agreements for which a review and comment have 
 62.30  been submitted to the department of children, families, and 
 62.31  learning after April 1, 1998, the term "instructional purpose" 
 62.32  as used in this subdivision excludes expenditures on stadiums. 
 62.33     (g) For purposes of this subdivision, any reference to 
 62.34  building or land includes personal property. 
 62.35     (h) The commissioner of children, families, and learning 
 62.36  may authorize a school district to exceed the limit in paragraph 
 63.1   (e) if the school district petitions the commissioner for 
 63.2   approval.  The commissioner shall grant approval to a school 
 63.3   district to exceed the limit in paragraph (e) for not more than 
 63.4   five years if the district meets the following criteria: 
 63.5      (1) the school district has been experiencing pupil 
 63.6   enrollment growth in the preceding five years; 
 63.7      (2) the purpose of the increased levy is in the long-term 
 63.8   public interest; 
 63.9      (3) the purpose of the increased levy promotes colocation 
 63.10  of government services; and 
 63.11     (4) the purpose of the increased levy is in the long-term 
 63.12  interest of the district by avoiding over construction of school 
 63.13  facilities. 
 63.14     Sec. 16.  Minnesota Statutes 1998, section 126C.40, 
 63.15  subdivision 2, is amended to read: 
 63.16     Subd. 2.  [PRE-JULY 1990 LEASE PURCHASE, INSTALLMENT BUYS.] 
 63.17  A district may annually levy increase the amount of its 
 63.18  equalized facilities revenue needed to make payments required by 
 63.19  a lease purchase agreement, installment purchase agreement, or 
 63.20  other deferred payment agreement authorized by Minnesota 
 63.21  Statutes 1989 Supplement, section 465.71, if:  
 63.22     (1) the agreement was approved by the commissioner before 
 63.23  July 1, 1990, according to Minnesota Statutes 1989 Supplement, 
 63.24  section 275.125, subdivision 11d; or 
 63.25     (2) the district levied in 1989 for the payments. 
 63.26     <h>EFFECTIVE DATE:</h>  This section is effective for revenue for 
 63.27  fiscal year 2002 and thereafter.  
 63.28     Sec. 17.  Minnesota Statutes 1998, section 126C.40, 
 63.29  subdivision 3, is amended to read: 
 63.30     Subd. 3.  [COOPERATING DISTRICTS.] A district that has an 
 63.31  agreement according to section 123A.30 or 123A.32 may levy 
 63.32  increase its equalized facilities revenue under section 123B.53, 
 63.33  subdivision 5, for the repair costs, as approved by the 
 63.34  department of a building located in another district that is a 
 63.35  party to the agreement. 
 63.36     <h>EFFECTIVE DATE:</h>  This section is effective for revenue for 
 64.1   fiscal year 2002 and thereafter.  
 64.2      Sec. 18.  Minnesota Statutes 1999 Supplement, section 
 64.3   126C.40, subdivision 6, is amended to read: 
 64.4      Subd. 6.  [LEASE PURCHASE; INSTALLMENT BUYS.] (a) Upon 
 64.5   application to, and approval by, the commissioner in accordance 
 64.6   with the procedures and limits in subdivision 1, paragraphs (a) 
 64.7   and (b), a district, as defined in this subdivision, may: 
 64.8      (1) purchase real or personal property under an installment 
 64.9   contract or may lease real or personal property with an option 
 64.10  to purchase under a lease purchase agreement, by which 
 64.11  installment contract or lease purchase agreement title is kept 
 64.12  by the seller or vendor or assigned to a third party as security 
 64.13  for the purchase price, including interest, if any; and 
 64.14     (2) annually levy the amounts necessary to pay the 
 64.15  district's obligations under the installment contract or lease 
 64.16  purchase agreement. 
 64.17     (b) The obligation created by the installment contract or 
 64.18  the lease purchase agreement must not be included in the 
 64.19  calculation of net debt for purposes of section 475.53, and does 
 64.20  not constitute debt under other law.  An election is not 
 64.21  required in connection with the execution of the installment 
 64.22  contract or the lease purchase agreement. 
 64.23     (c) The proceeds of the levy authorized by this subdivision 
 64.24  must not be used to acquire a facility to be primarily used for 
 64.25  athletic or school administration purposes. 
 64.26     (d) For the purposes of this subdivision, "district" means: 
 64.27     (1) a school district required to have a comprehensive plan 
 64.28  for the elimination of segregation whose plan has been 
 64.29  determined by the commissioner to be in compliance with 
 64.30  department of children, families, and learning rules relating to 
 64.31  equality of educational opportunity and school desegregation and 
 64.32  for a district qualifying for revenue under section 124D.86, 
 64.33  subdivision 3, clause (4), where the property subject to the 
 64.34  levy authority is determined by the commissioner to contribute 
 64.35  to implementation of the desegregation plan; or 
 64.36     (2) a school district that participates in a joint program 
 65.1   for interdistrict desegregation with a district defined in 
 65.2   clause (1) if the facility acquired under this subdivision is to 
 65.3   be primarily used for the joint program and the commissioner 
 65.4   determines that the joint programs are being undertaken to 
 65.5   implement the districts' desegregation plan. 
 65.6      (e) Notwithstanding subdivision 1, the prohibition against 
 65.7   a levy by a district to lease or rent a district-owned building 
 65.8   to itself does not apply to levies otherwise authorized by this 
 65.9   subdivision. 
 65.10     (f) For the purposes of this subdivision, any references in 
 65.11  subdivision 1 to building or land shall include personal 
 65.12  property. 
 65.13     Sec. 19.  Minnesota Statutes 1999 Supplement, section 
 65.14  126C.40, subdivision 6, is amended to read: 
 65.15     Subd. 6.  [LEASE PURCHASE; INSTALLMENT BUYS.] (a) Upon 
 65.16  application to, and approval by, the commissioner in accordance 
 65.17  with the procedures and limits in subdivision 1, paragraphs (a) 
 65.18  and (b), a district, as defined in this subdivision, may: 
 65.19     (1) purchase real or personal property under an installment 
 65.20  contract or may lease real or personal property with an option 
 65.21  to purchase under a lease purchase agreement, by which 
 65.22  installment contract or lease purchase agreement title is kept 
 65.23  by the seller or vendor or assigned to a third party as security 
 65.24  for the purchase price, including interest, if any; and 
 65.25     (2) annually levy increase its equalized facilities revenue 
 65.26  under section 123B.53, subdivision 5, by the amounts necessary 
 65.27  to pay the district's obligations under the installment contract 
 65.28  or lease purchase agreement. 
 65.29     (b) The obligation created by the installment contract or 
 65.30  the lease purchase agreement must not be included in the 
 65.31  calculation of net debt for purposes of section 475.53, and does 
 65.32  not constitute debt under other law.  An election is not 
 65.33  required in connection with the execution of the installment 
 65.34  contract or the lease purchase agreement. 
 65.35     (c) The proceeds of the levy equalized facilities revenue 
 65.36  increase authorized by this subdivision must not be used to 
 66.1   acquire a facility to be primarily used for athletic or school 
 66.2   administration purposes. 
 66.3      (d) For the purposes of this subdivision, "district" means: 
 66.4      (1) a school district required to have a comprehensive plan 
 66.5   for the elimination of segregation whose plan has been 
 66.6   determined by the commissioner to be in compliance with 
 66.7   department of children, families, and learning rules relating to 
 66.8   equality of educational opportunity and school desegregation; or 
 66.9      (2) a school district that participates in a joint program 
 66.10  for interdistrict desegregation with a district defined in 
 66.11  clause (1) if the facility acquired under this subdivision is to 
 66.12  be primarily used for the joint program. 
 66.13     (e) Notwithstanding subdivision 1, the prohibition against 
 66.14  a levy by a district to lease receiving revenue for the purpose 
 66.15  of leasing or rent renting a district-owned building to itself 
 66.16  does not apply to levies revenues otherwise authorized by this 
 66.17  subdivision. 
 66.18     (f) For the purposes of this subdivision, any references in 
 66.19  subdivision 1 to building or land shall include personal 
 66.20  property. 
 66.21     <h>EFFECTIVE DATE:</h>  This section is effective for revenue for 
 66.22  fiscal year 2002 and thereafter. 
 66.23     Sec. 20.  Minnesota Statutes 1998, section 126C.69, 
 66.24  subdivision 15, is amended to read: 
 66.25     Subd. 15.  [BOND SALE LIMITATIONS.] A district having an 
 66.26  outstanding state loan must not issue and sell any bonds on the 
 66.27  public market, except to refund state loans, unless it agrees to 
 66.28  make the maximum effort debt service levy in each later year at 
 66.29  the higher rate provided in section 126C.63, subdivision 8, and 
 66.30  unless it schedules the maturities of the bonds according to 
 66.31  section 475.54, subdivision 2.  A district that refunds bonds at 
 66.32  a lower interest rate may continue to make the maximum effort 
 66.33  debt service levy in each later year at the current rate 
 66.34  provided in section 126C.63, subdivision 8, if the district can 
 66.35  demonstrate to the commissioner's satisfaction that the 
 66.36  district's repayments of the state loan will not be reduced 
 67.1   below the previous year's level.  The district must report each 
 67.2   sale to the commissioner. 
 67.3      After a district's capital loan has been outstanding for 20 
 67.4   30 years, the district must not issue bonds on the public market 
 67.5   except to refund the loan. 
 67.6      Sec. 21.  Laws 1998, chapter 404, section 5, subdivision 
 67.7   11, as amended by Laws 1999, chapter 26, section 1, is amended 
 67.8   to read: 
 67.9   Subd. 11.  McLeod West               
 67.10              School District No. 2887                    500,000
 67.11  For a grant to the McLeod West school 
 67.12  district No. 2887, to design and 
 67.13  acquire land for a new grade 7 through 
 67.14  12 remodel an educational facility.  
 67.15     <h>EFFECTIVE DATE:</h>  This section is effective the day 
 67.16  following final enactment. 
 67.17     Sec. 22.  Laws 1999, chapter 241, article 4, section 27, 
 67.18  subdivision 2, is amended to read: 
 67.19     Subd. 2.  [HEALTH AND SAFETY AID.] For health and safety 
 67.20  aid according to Minnesota Statutes, section 123B.57, 
 67.21  subdivision 5: 
 67.22       $14,528,000 $14,015,000   .....     2000 
 67.23       $14,957,000 $14,450,000   .....     2001 
 67.24     The 2000 appropriation includes $1,415,000 for 1999 and 
 67.25  $13,113,000 $12,812,000 for 2000.  
 67.26     The 2001 appropriation includes $1,456,000 $1,423,000 for 
 67.27  2000 and $13,501,000 $13,365,000 for 2001.  
 67.28     Sec. 23.  Laws 1999, chapter 241, article 4, section 27, 
 67.29  subdivision 3, is amended to read: 
 67.30     Subd. 3.  [DEBT SERVICE AID.] For debt service aid 
 67.31  according to Minnesota Statutes, section 123B.53, subdivision 6: 
 67.32       $33,165,000 $33,141,000   .....     2000
 67.33       $32,084,000 $29,400,000   .....     2001
 67.34     The 2000 appropriation includes $3,842,000 for 1999 and 
 67.35  $29,323,000 $29,299,000 for 2000. 
 67.36     The 2001 appropriation includes $3,256,000 $3,255,000 for 
 67.37  2000 and $28,828,000 $25,841,000 for 2001. 
 67.38     Sec. 24.  Laws 1999, chapter 241, article 4, section 27, 
 68.1   subdivision 4, is amended to read: 
 68.2      Subd. 4.  [INTERACTIVE TELEVISION (ITV) AID.] For 
 68.3   interactive television (ITV) aid under Minnesota Statutes, 
 68.4   section 126C.40, subdivision 4: 
 68.5        $4,197,000 $4,194,000    .....     2000
 68.6        $2,851,000 $2,761,000    .....     2001
 68.7      The 2000 appropriation includes $405,000 for 1999 and 
 68.8   $3,792,000 $3,784,000 for 2000. 
 68.9      The 2001 appropriation includes $421,000 for 2000 and 
 68.10  $2,430,000 $2,338,000 for 2001. 
 68.11     Sec. 25.  Laws 1999, chapter 241, article 4, section 27, 
 68.12  subdivision 5, is amended to read: 
 68.13     Subd. 5.  [ALTERNATIVE FACILITIES BONDING AID.] For 
 68.14  alternative facilities bonding aid, according to Minnesota 
 68.15  Statutes, section 123B.59: 
 68.16       $19,058,000 $18,920,000   .....     2000 
 68.17       $19,286,000 $19,134,000   .....     2001 
 68.18     The 2000 appropriation includes $1,700,000 for 2000 and 
 68.19  $17,358,000 $17,220,000 for 2001. 
 68.20     The 2001 appropriation includes $1,928,000 $1,914,000 for 
 68.21  2000 and $17,358,000 $17,288,000 for 2001. 
 68.22     Sec. 26.  [ONE-TIME FACILITIES AID.] 
 68.23     (a) For fiscal year 2001 only, a district's one-time 
 68.24  facilities aid is equal to: 
 68.25     (1) $11.20 times the adjusted marginal cost pupil units for 
 68.26  the school year; plus 
 68.27     (2) $25 times the adjusted marginal cost pupil units for 
 68.28  the school year for a district that does not qualify for 
 68.29  alternative facilities bonding under Minnesota Statutes, section 
 68.30  123B.59, or under Laws 1999, chapter 241, article 4, section 25. 
 68.31     (b) Aid received under this section must be used for 
 68.32  deferred maintenance, to make accessibility improvements, or to 
 68.33  make fire, safety, or health repairs. 
 68.34     Sec. 27.  [PROJECT QUALIFICATION; TRITON.] 
 68.35     Subdivision 1.  [ELIGIBILITY.] Notwithstanding Minnesota 
 68.36  Statutes, section 123B.57, independent school district No. 2125, 
 69.1   Triton, may include all unreimbursed costs associated with the 
 69.2   testing, evaluation, removal, and replacement of building 
 69.3   fixtures and equipment necessitated by the discovery of mold in 
 69.4   a school building in its health and safety plan not to exceed 
 69.5   $400,000. 
 69.6      Subd. 2.  [COST RECOVERY.] Independent school district No. 
 69.7   2125, Triton, must pursue all reasonable options to recover 
 69.8   expenses resulting from the mold from its insurance company, the 
 69.9   subcontractors, and any other parties responsible for the damage 
 69.10  caused by the mold. 
 69.11     <h>EFFECTIVE DATE:</h>  This section is effective the day 
 69.12  following final enactment. 
 69.13     Sec. 28.  [MAXIMUM EFFORT CAPITAL LOANS.] 
 69.14     Subdivision 1.  [INDEPENDENT SCHOOL DISTRICT NO. 38, RED 
 69.15  LAKE.] $11,166,000 is appropriated to the commissioner of 
 69.16  children, families, and learning to make a capital loan to 
 69.17  independent school district No. 38, Red Lake.  $11,166,296 is 
 69.18  approved for a capital loan to independent school district No. 
 69.19  38, Red Lake. 
 69.20     Subd. 2.  [INDEPENDENT SCHOOL DISTRICT NO. 115, CASS 
 69.21  LAKE.] $7,505,000 is appropriated to the commissioner of 
 69.22  children, families, and learning to make a capital loan to 
 69.23  independent school district No. 115, Cass Lake.  $7,505,000 is 
 69.24  approved for a capital loan to independent school district No. 
 69.25  115, Cass Lake. 
 69.26     Subd. 3.  [INDEPENDENT SCHOOL DISTRICT NO. 299, 
 69.27  CALEDONIA.] $14,134,000 is appropriated to the commissioner of 
 69.28  children, families, and learning to make a capital loan to 
 69.29  independent school district No. 299, Caledonia.  $14,133,788 is 
 69.30  approved for a capital loan to independent school district No. 
 69.31  299, Caledonia. 
 69.32     Subd. 4.  [INDEPENDENT SCHOOL DISTRICT NO. 306, 
 69.33  LAPORTE.] $7,200,000 is appropriated to the commissioner of 
 69.34  children, families, and learning to make a capital loan to 
 69.35  independent school district No. 306, LaPorte.  $7,200,000 is 
 69.36  approved for a capital loan to independent school district No. 
 70.1   306, LaPorte.  
 70.2      Subd. 5.  [INDEPENDENT SCHOOL DISTRICT NO. 914, 
 70.3   ULEN-HITTERDAHL.] $4,025,000 is appropriated to the commissioner 
 70.4   of children, families, and learning to make a capital loan to 
 70.5   independent school district No. 914, Ulen-Hitterdahl.  
 70.6   $4,025,000 is approved for a capital loan to independent school 
 70.7   district No. 914, Ulen-Hitterdahl. 
 70.8      <h>EFFECTIVE DATE:</h>  This section is effective the day 
 70.9   following final enactment. 
 70.10     Sec. 29.  [COMMISSIONER RECOMMENDATION.] 
 70.11     By February 1, 2003, the commissioner of children, 
 70.12  families, and learning, in cooperation with the commissioner of 
 70.13  administration and the Minnesota education telecommunication 
 70.14  council, shall recommend to the legislature a permanent method 
 70.15  for funding telecommunications access as part of the general 
 70.16  education revenue formula under Minnesota Statutes, section 
 70.17  126C.10.  The commissioner shall consider the following in 
 70.18  making the recommendation: 
 70.19     (1) the range of costs for providing a minimum level of 
 70.20  telecommunications access for all students; 
 70.21     (2) the flexibility that is necessary to accommodate 
 70.22  emerging technological advances in the telecommunications field; 
 70.23  and 
 70.24     (3) other related efforts within the state, including the 
 70.25  state's higher education and public library systems. 
 70.26     Sec. 30.  [REVISOR'S INSTRUCTION.] 
 70.27     In subsequent editions of Minnesota Statutes, the revisor 
 70.28  of statutes shall change the headnote on section 123B.63 to 
 70.29  "BUILDING CONSTRUCTION AND LEASE PROGRAM." 
 70.30     Sec. 31.  [FACILITY CONSOLIDATION IMPACT REVENUE.] 
 70.31     For fiscal year 2002 only, a school district that, as a 
 70.32  result of the consolidation of facility levies in this act, 
 70.33  experiences an increase in overall district levy, shall receive 
 70.34  an amount of aid equal to the amount of increased levy.  The 
 70.35  property tax levy for taxes payable in 2001 shall be reduced by 
 70.36  the amount of the state aid. 
 71.1      Sec. 32.  [CHISHOLM SCHOOL DISTRICT BONDS.] 
 71.2      Subdivision 1.  [AUTHORIZATION.] Independent school 
 71.3   district No. 695, Chisholm, may issue bonds in an aggregate 
 71.4   principal amount not exceeding $4,250,000. 
 71.5      Subd. 2.  [USES; PROCESS.] The bonds authorized under 
 71.6   subdivision 1 may be issued in addition to any bonds already 
 71.7   issued or authorized.  The proceeds of the bonds shall be used 
 71.8   to provide funds to design, construct, equip, furnish, remodel, 
 71.9   rehabilitate, and acquire land for school facilities and 
 71.10  buildings and to pay any architect, engineer and legal fees 
 71.11  incidental to those purposes or to the sale of bonds.  Except as 
 71.12  permitted by this section, the bonds shall be authorized, 
 71.13  issued, sold, executed, and delivered in the manner provided by 
 71.14  Minnesota Statutes, chapter 475.  A referendum on the question 
 71.15  of issuing the bonds authorized under subdivision 1 is 
 71.16  required.  A resolution of the board levying taxes for the 
 71.17  payment of the bonds and interest on them shall be deemed to be 
 71.18  in compliance with the provisions of Minnesota Statutes, chapter 
 71.19  475, with respect to the levying of taxes for their payment. 
 71.20     Subd. 3.  [APPROPRIATION.] There is annually appropriated 
 71.21  from the distribution of taconite production tax revenues to the 
 71.22  taconite environmental protection fund pursuant to Minnesota 
 71.23  Statutes, section 298.28, subdivision 11, and to the northeast 
 71.24  Minnesota economic protection trust pursuant to Minnesota 
 71.25  Statutes, section 298.28, subdivisions 9 and 11, in equal 
 71.26  shares, an amount sufficient to pay when due 80 percent of the 
 71.27  principal and interest on the bonds issued under subdivision 1.  
 71.28  If the annual distribution to the northeast Minnesota economic 
 71.29  protection trust is insufficient to pay its share after 
 71.30  fulfilling any obligations of the trust under Minnesota 
 71.31  Statutes, section 298.225 or 298.293, the deficiency shall be 
 71.32  appropriated from the taconite environmental protection fund. 
 71.33     Subd. 4.  [DISTRICT OBLIGATIONS.] Bonds issued under 
 71.34  authority of this section shall be the general obligations of 
 71.35  the school district, for which its full faith and credit and 
 71.36  unlimited taxing powers shall be pledged.  If there are any 
 72.1   deficiencies in the amount received under subdivision 3, they 
 72.2   shall be satisfied by general levies, not subject to limit, on 
 72.3   all taxable properties in the district in accordance with 
 72.4   Minnesota Statutes, section 475.74.  If any deficiency levies 
 72.5   are necessary, the school board may effect a temporary loan or 
 72.6   loans on certificates of indebtedness issued in anticipation of 
 72.7   them to meet payments of principal or interest on the bonds due 
 72.8   or about to become due. 
 72.9      Subd. 5.  [DISTRICT LEVY.] The school board of the school 
 72.10  district authorized to issue bonds under subdivision 1 shall by 
 72.11  resolution levy on all property in the school district subject 
 72.12  to the general ad valorem school tax levies, and not subject to 
 72.13  taxation under Minnesota Statutes, sections 298.23 to 298.28, a 
 72.14  direct annual ad valorem tax for each year of the term of the 
 72.15  bonds in amounts that, if collected in full, will produce the 
 72.16  amounts needed to meet when due 20 percent of the principal and 
 72.17  interest payments on the bonds.  A copy of the resolution shall 
 72.18  be filed, and the necessary taxes shall be extended, assessed, 
 72.19  collected, and remitted in accordance with Minnesota Statutes, 
 72.20  section 475.61. 
 72.21     Subd. 6.  [LEVY LIMITATIONS.] Taxes levied pursuant to this 
 72.22  section shall be disregarded in the calculation of any other tax 
 72.23  levies or limits on tax levies provided by other law. 
 72.24     Subd. 7.  [BONDING LIMITATIONS.] Bonds may be issued under 
 72.25  authority of this section notwithstanding any limitations upon 
 72.26  the indebtedness of a district, and their amounts shall not be 
 72.27  included in computing the indebtedness of a district for any 
 72.28  purpose, including the issuance of subsequent bonds and the 
 72.29  incurring of subsequent indebtedness. 
 72.30     Subd. 8.  [TERMINATION OF APPROPRIATION.] The appropriation 
 72.31  authorized in subdivision 3 terminates upon payment or maturity 
 72.32  of the last of the bonds issued under this section. 
 72.33     Subd. 9.  [BOND ISSUE REQUIREMENT.] No bonds may be issued 
 72.34  under this section after April 30, 2002, unless they are issued 
 72.35  under a contract in effect on or before April 30, 2002. 
 72.36     Subd. 10.  [LOCAL APPROVAL.] This section is effective for 
 73.1   independent school district No. 695 the day after its governing 
 73.2   body complies with Minnesota Statutes, section 645.021, 
 73.3   subdivision 3. 
 73.4      Sec. 33.  [GREENWAY-COLERAINE SCHOOL DISTRICT BONDS.] 
 73.5      Subdivision 1.  [AUTHORIZATION.] Independent school 
 73.6   district No. 316, Greenway-Coleraine, may issue bonds in an 
 73.7   aggregate principal amount not exceeding $2,500,000. 
 73.8      Subd. 2.  [USES; PROCESS.] The bonds authorized under 
 73.9   subdivision 1 may be issued in addition to any bonds already 
 73.10  issued or authorized.  The proceeds of the bonds shall be used 
 73.11  to provide funds to design, construct, equip, furnish, remodel, 
 73.12  rehabilitate, and acquire land for school facilities and 
 73.13  buildings and to pay any architect, engineer and legal fees 
 73.14  incidental to those purposes or to the sale of bonds.  Except as 
 73.15  permitted by this section, the bonds shall be authorized, 
 73.16  issued, sold, executed, and delivered in the manner provided by 
 73.17  Minnesota Statutes, chapter 475.  A referendum on the question 
 73.18  of issuing the bonds authorized under subdivision 1 is 
 73.19  required.  A resolution of the board levying taxes for the 
 73.20  payment of the bonds and interest on them shall be deemed to be 
 73.21  in compliance with the provisions of Minnesota Statutes, chapter 
 73.22  475, with respect to the levying of taxes for their payment. 
 73.23     Subd. 3.  [APPROPRIATION.] There is annually appropriated 
 73.24  from the distribution of taconite production tax revenues to the 
 73.25  taconite environmental protection fund pursuant to Minnesota 
 73.26  Statutes, section 298.28, subdivision 11, and to the northeast 
 73.27  Minnesota economic protection trust pursuant to Minnesota 
 73.28  Statutes, section 298.28, subdivisions 9 and 11, in equal 
 73.29  shares, an amount sufficient to pay when due 80 percent of the 
 73.30  principal and interest on the bonds issued under subdivision 1.  
 73.31  If the annual distribution to the northeast Minnesota economic 
 73.32  protection trust is insufficient to pay its share after 
 73.33  fulfilling any obligations of the trust under Minnesota 
 73.34  Statutes, section 298.225 or 298.293, the deficiency shall be 
 73.35  appropriated from the taconite environmental protection fund. 
 73.36     Subd. 4.  [DISTRICT OBLIGATIONS.] Bonds issued under 
 74.1   authority of this section shall be the general obligations of 
 74.2   the school district, for which its full faith and credit and 
 74.3   unlimited taxing powers shall be pledged.  If there are any 
 74.4   deficiencies in the amount received under subdivision 3, they 
 74.5   shall be satisfied by general levies, not subject to limit, on 
 74.6   all taxable properties in the district in accordance with 
 74.7   Minnesota Statutes, section 475.74.  If any deficiency levies 
 74.8   are necessary, the school board may effect a temporary loan or 
 74.9   loans on certificates of indebtedness issued in anticipation of 
 74.10  them to meet payments of principal or interest on the bonds due 
 74.11  or about to become due. 
 74.12     Subd. 5.  [DISTRICT LEVY.] The school board of the school 
 74.13  district authorized to issue bonds under subdivision 1 shall by 
 74.14  resolution levy on all property in the school district subject 
 74.15  to the general ad valorem school tax levies, and not subject to 
 74.16  taxation under Minnesota Statutes, sections 298.23 to 298.28, a 
 74.17  direct annual ad valorem tax for each year of the term of the 
 74.18  bonds in amounts that, if collected in full, will produce the 
 74.19  amounts needed to meet when due 20 percent of the principal and 
 74.20  interest payments on the bonds.  A copy of the resolution shall 
 74.21  be filed, and the necessary taxes shall be extended, assessed, 
 74.22  collected, and remitted in accordance with Minnesota Statutes, 
 74.23  section 475.61. 
 74.24     Subd. 6.  [LEVY LIMITATIONS.] Taxes levied pursuant to this 
 74.25  section shall be disregarded in the calculation of any other tax 
 74.26  levies or limits on tax levies provided by other law. 
 74.27     Subd. 7.  [BONDING LIMITATIONS.] Bonds may be issued under 
 74.28  authority of this section notwithstanding any limitations upon 
 74.29  the indebtedness of a district, and their amounts shall not be 
 74.30  included in computing the indebtedness of a district for any 
 74.31  purpose, including the issuance of subsequent bonds and the 
 74.32  incurring of subsequent indebtedness. 
 74.33     Subd. 8.  [TERMINATION OF APPROPRIATION.] The appropriation 
 74.34  authorized in subdivision 3 terminates upon payment or maturity 
 74.35  of the last of the bonds issued under this section. 
 74.36     Subd. 9.  [BOND ISSUE REQUIREMENT.] No bonds may be issued 
 75.1   under this section after April 30, 2002, unless they are issued 
 75.2   under a contract in effect on or before April 30, 2002. 
 75.3      Subd. 10.  [LOCAL APPROVAL.] This section is effective for 
 75.4   independent school district No. 316 the day after its governing 
 75.5   body complies with Minnesota Statutes, section 645.021, 
 75.6   subdivision 3. 
 75.7      Sec. 34.  [LAKE SUPERIOR SCHOOL DISTRICT BONDS.] 
 75.8      Subdivision 1.  [AUTHORIZATION.] Independent school 
 75.9   district No. 381, Lake Superior, may issue bonds in an aggregate 
 75.10  principal amount not exceeding $6,000,000. 
 75.11     Subd. 2.  [USES; PROCESS.] The bonds authorized under 
 75.12  subdivision 1 may be issued in addition to any bonds already 
 75.13  issued or authorized.  The proceeds of the bonds shall be used 
 75.14  to provide funds to design, construct, equip, furnish, remodel, 
 75.15  rehabilitate, and acquire land for school facilities and 
 75.16  buildings and to pay any architect, engineer and legal fees 
 75.17  incidental to those purposes or to the sale of bonds.  Except as 
 75.18  permitted by this section, the bonds shall be authorized, 
 75.19  issued, sold, executed, and delivered in the manner provided by 
 75.20  Minnesota Statutes, chapter 475.  A referendum on the question 
 75.21  of issuing the bonds authorized under subdivision 1 is 
 75.22  required.  A resolution of the board levying taxes for the 
 75.23  payment of the bonds and interest on them shall be deemed to be 
 75.24  in compliance with the provisions of Minnesota Statutes, chapter 
 75.25  475, with respect to the levying of taxes for their payment. 
 75.26     Subd. 3.  [APPROPRIATION.] There is annually appropriated 
 75.27  from the distribution of taconite production tax revenues to the 
 75.28  taconite environmental protection fund pursuant to Minnesota 
 75.29  Statutes, section 298.28, subdivision 11, and to the northeast 
 75.30  Minnesota economic protection trust pursuant to Minnesota 
 75.31  Statutes, section 298.28, subdivisions 9 and 11, in equal 
 75.32  shares, an amount sufficient to pay when due 80 percent of the 
 75.33  principal and interest on the bonds issued under subdivision 1.  
 75.34  If the annual distribution to the northeast Minnesota economic 
 75.35  protection trust is insufficient to pay its share after 
 75.36  fulfilling any obligations of the trust under Minnesota 
 76.1   Statutes, section 298.225 or 298.293, the deficiency shall be 
 76.2   appropriated from the taconite environmental protection fund. 
 76.3      Subd. 4.  [DISTRICT OBLIGATIONS.] Bonds issued under 
 76.4   authority of this section shall be the general obligations of 
 76.5   the school district, for which its full faith and credit and 
 76.6   unlimited taxing powers shall be pledged.  If there are any 
 76.7   deficiencies in the amount received under subdivision 3, they 
 76.8   shall be satisfied by general levies, not subject to limit, on 
 76.9   all taxable properties in the district in accordance with 
 76.10  Minnesota Statutes, section 475.74.  If any deficiency levies 
 76.11  are necessary, the school board may effect a temporary loan or 
 76.12  loans on certificates of indebtedness issued in anticipation of 
 76.13  them to meet payments of principal or interest on the bonds due 
 76.14  or about to become due. 
 76.15     Subd. 5.  [DISTRICT LEVY.] The school board of the school 
 76.16  district authorized to issue bonds under subdivision 1 shall by 
 76.17  resolution levy on all property in the school district subject 
 76.18  to the general ad valorem school tax levies, and not subject to 
 76.19  taxation under Minnesota Statutes, sections 298.23 to 298.28, a 
 76.20  direct annual ad valorem tax for each year of the term of the 
 76.21  bonds in amounts that, if collected in full, will produce the 
 76.22  amounts needed to meet when due 20 percent of the principal and 
 76.23  interest payments on the bonds.  A copy of the resolution shall 
 76.24  be filed, and the necessary taxes shall be extended, assessed, 
 76.25  collected, and remitted in accordance with Minnesota Statutes, 
 76.26  section 475.61. 
 76.27     Subd. 6.  [LEVY LIMITATIONS.] Taxes levied pursuant to this 
 76.28  section shall be disregarded in the calculation of any other tax 
 76.29  levies or limits on tax levies provided by other law. 
 76.30     Subd. 7.  [BONDING LIMITATIONS.] Bonds may be issued under 
 76.31  authority of this section notwithstanding any limitations upon 
 76.32  the indebtedness of a district, and their amounts shall not be 
 76.33  included in computing the indebtedness of a district for any 
 76.34  purpose, including the issuance of subsequent bonds and the 
 76.35  incurring of subsequent indebtedness. 
 76.36     Subd. 8.  [TERMINATION OF APPROPRIATION.] The appropriation 
 77.1   authorized in subdivision 3 terminates upon payment or maturity 
 77.2   of the last of the bonds issued under this section. 
 77.3      Subd. 9.  [BOND ISSUE REQUIREMENT.] No bonds may be issued 
 77.4   under this section after April 30, 2002, unless they are issued 
 77.5   under a contract in effect on or before April 30, 2002. 
 77.6      Subd. 10.  [LOCAL APPROVAL.] This section is effective for 
 77.7   independent school district No. 381 the day after its governing 
 77.8   body complies with Minnesota Statutes, section 645.021, 
 77.9   subdivision 3. 
 77.10     Sec. 35.  [APPROPRIATIONS.] 
 77.11     Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
 77.12  LEARNING.] The sums indicated in this section are appropriated 
 77.13  from the general fund to the department of children, families, 
 77.14  and learning for fiscal years designated. 
 77.15     Subd. 2.  [TELECOMMUNICATION ACCESS REVENUE.] For 
 77.16  telecommunication access cost revenue under Minnesota Statutes, 
 77.17  section 125B.25: 
 77.18       $26,230,000     .....     2001
 77.19     Subd. 3.  [INTEREST ON FLOOD LOANS.] For interest paid on 
 77.20  flood loans: 
 77.21       $   970,000     .....     2000
 77.22     Of this amount, $761,000 is for independent school district 
 77.23  No. 595, East Grand Forks, and $209,000 is for independent 
 77.24  school district No. 2854, Ada-Borup. 
 77.25     This appropriation is available until June 30, 2001. 
 77.26     Subd. 4.  [ONE-TIME FACILITIES AID.] For one-time 
 77.27  facilities aid: 
 77.28       $26,411,000     .....     2001
 77.29     Subd. 5.  [SCHOOL FACILITIES GRANTS.] For grants to 
 77.30  construct school facilities: 
 77.31       $ 7,100,000     .....     2000
 77.32     Of this amount: 
 77.33     (a) $4,100,000 is for a grant to independent school 
 77.34  district No. 25, Pine Point, for the construction of a new 
 77.35  school facility serving kindergarten through grade 8. 
 77.36     (b) $3,000,000 is for a grant to independent school 
 78.1   district No. 495, Grand Meadow, to construct a new school using 
 78.2   monolithic dome construction techniques.  The commissioner shall 
 78.3   award the grant to demonstrate that a school constructed using 
 78.4   monolithic dome construction techniques can provide operating 
 78.5   and construction savings for school districts throughout the 
 78.6   state.  Grand Meadow school district must agree to provide the 
 78.7   state with information and data about this construction method 
 78.8   and with an analysis of a monolithic dome as a suitable 
 78.9   educational environment.  
 78.10     Subd. 6.  [MAXIMUM EFFORT CAPITAL LOANS.] For capital loans 
 78.11  to school districts as provided in Minnesota Statutes, sections 
 78.12  126C.60 to 126C.72: 
 78.13       $44,031,000     .....     2001
 78.14     The commissioner shall review the proposed plan and budget 
 78.15  of the project and may reduce the amount of the loan to ensure 
 78.16  that the project will be economical.  The commissioner may 
 78.17  recover the cost incurred by the commissioner for any 
 78.18  professional services associated with the final review and 
 78.19  construction by reducing the proceeds of the loan paid by the 
 78.20  district.  The commissioner shall report to the legislature any 
 78.21  reductions to the above appropriations by January 10, 2001.  
 78.22  Notwithstanding any contrary provision of Minnesota Statutes, 
 78.23  sections 126C.60 to 126C.72, the repayments for the capital 
 78.24  loans approved in section 28 shall be made to the state general 
 78.25  fund and shall not be transferred to the school loan bond 
 78.26  account.  The capital loan contract shall not contain 
 78.27  restrictions on investment of the loan funds by the school 
 78.28  district that would otherwise be required if the loans were 
 78.29  funded from state bond proceeds.  Notwithstanding Minnesota 
 78.30  Statutes, section 126C.69, subdivision 12, the monies for 
 78.31  maximum effort loans approved in this article are from the 
 78.32  general fund.  The interest rate on the loans shall equal the 
 78.33  weighted average annual rate payable on state bonds issued on a 
 78.34  date closest to the execution of the contract between the state 
 78.35  and the district.  
 78.36     Subd. 7.  [ERITREAN COMMUNITY CENTER OF MINNESOTA.] For a 
 79.1   building lease start-up grant for an Eritrean community center 
 79.2   of Minnesota: 
 79.3        $   150,000     .....     2001
 79.4      The commissioner shall consult with the commissioner of 
 79.5   administration on the availability of state-owned building space 
 79.6   for the community center. 
 79.7      Subd. 8.  [FACILITIES CONSOLIDATION IMPACT REVENUE.] For 
 79.8   facilities consolidation impact revenue: 
 79.9        $ 2,422,000     .....     2001
 79.10                             ARTICLE 5 
 79.11               EDUCATION EXCELLENCE AND OTHER POLICY 
 79.12     Section 1.  Minnesota Statutes 1998, section 120B.13, 
 79.13  subdivision 4, is amended to read: 
 79.14     Subd. 4.  [INFORMATION.] The commissioner shall submit the 
 79.15  following information to the education committees of the 
 79.16  legislature each year by January February 1: 
 79.17     (1) the number of pupils enrolled in advanced placement and 
 79.18  international baccalaureate courses in each school district; 
 79.19     (2) the number of teachers in each district attending 
 79.20  training programs offered by the college board or International 
 79.21  Baccalaureate North America, Inc.; 
 79.22     (3) the number of teachers in each district participating 
 79.23  in support programs; 
 79.24     (4) recent trends in the field of advanced placement and 
 79.25  international baccalaureate programs; 
 79.26     (5) expenditures for each category in this section; and 
 79.27     (6) other recommendations for the state program. 
 79.28     Sec. 2.  [120B.25] [PROHIBITION AGAINST PROGRAMS ADVOCATING 
 79.29  SEXUAL ACTIVITY BY STUDENTS.] 
 79.30     A public elementary, middle, or secondary school shall not 
 79.31  implement or carry out a program, activity, or curriculum that 
 79.32  has the purpose of encouraging sexual activity by minors except 
 79.33  that public health programs shall be permitted. 
 79.34     Sec. 3.  Minnesota Statutes 1999 Supplement, section 
 79.35  120B.30, subdivision 1, is amended to read: 
 79.36     Subdivision 1.  [STATEWIDE TESTING.] (a) The commissioner, 
 80.1   with advice from experts with appropriate technical 
 80.2   qualifications and experience and stakeholders, shall include in 
 80.3   the comprehensive assessment system, for each grade level to be 
 80.4   tested, a single statewide norm-referenced or 
 80.5   criterion-referenced test, or a combination of a norm-referenced 
 80.6   and a criterion-referenced test, which shall be highly 
 80.7   correlated with the state's graduation standards and 
 80.8   administered annually to all students in the third, fifth, and 
 80.9   eighth grades.  The commissioner shall establish one or more 
 80.10  months during which schools shall administer the tests to 
 80.11  students each school year.  Only Minnesota basic skills tests in 
 80.12  reading, mathematics, and writing shall fulfill students' 
 80.13  testing requirements for a passing state notation.  The passing 
 80.14  scores of the state tests in reading and mathematics are the 
 80.15  equivalent of:  
 80.16     (1) 70 percent correct for students entering grade 9 in 
 80.17  1996; and 
 80.18     (2) 75 percent correct for students entering grade 9 in 
 80.19  1997 and thereafter, as based on the first uniform test 
 80.20  administration of February 1998. 
 80.21     (b) In addition, at the secondary level, districts shall 
 80.22  assess student performance in all required learning areas and 
 80.23  selected required standards within each area of the profile of 
 80.24  learning.  The testing instruments and testing process shall be 
 80.25  determined by the commissioner.  The results shall be aggregated 
 80.26  at the site and district level.  The testing shall be 
 80.27  administered beginning in the 1999-2000 school year and 
 80.28  thereafter. 
 80.29     (c) The comprehensive assessment system shall include an 
 80.30  evaluation of school site and school district performance levels 
 80.31  during the 1997-1998 school year and thereafter using an 
 80.32  established performance baseline developed from students' test 
 80.33  scores under this section that records, at a minimum, students' 
 80.34  unweighted mean test scores in each tested subject, a second 
 80.35  performance baseline that reports, at a minimum, the same 
 80.36  unweighted mean test scores of only those students enrolled in 
 81.1   the school by January 1 of the previous school year, and a third 
 81.2   performance baseline that reports the same unweighted test 
 81.3   scores of all students except those students receiving limited 
 81.4   English proficiency instruction.  The evaluation also shall 
 81.5   record separately, in proximity to the performance baselines, 
 81.6   the percentages of students who are eligible to receive a free 
 81.7   or reduced price school meal, demonstrate limited English 
 81.8   proficiency, or are eligible to receive special education 
 81.9   services. 
 81.10     (d) In addition to the testing and reporting requirements 
 81.11  under paragraphs (a), (b), and (c), the commissioner shall 
 81.12  include the following components in the statewide educational 
 81.13  accountability and public reporting system: 
 81.14     (1) uniform statewide testing of all third, fifth, eighth, 
 81.15  and post-eighth grade students with exemptions, only with parent 
 81.16  or guardian approval, from the testing requirement only for 
 81.17  those very few students for whom the student's individual 
 81.18  education plan team under sections 125A.05 and 125A.06, 
 81.19  determines that the student is incapable of taking a statewide 
 81.20  test, or a limited English proficiency student under section 
 81.21  124D.59, subdivision 2, if the student has been in the United 
 81.22  States for fewer than 12 months and for whom special language 
 81.23  barriers exist, such as the student's native language does not 
 81.24  have a written form or the district does not have access to 
 81.25  appropriate interpreter services for the student's native 
 81.26  language; 
 81.27     (2) educational indicators that can be aggregated and 
 81.28  compared across school districts and across time on a statewide 
 81.29  basis; 
 81.30     (3) students' scores on the American College Test; 
 81.31     (4) participation in the National Assessment of Educational 
 81.32  Progress so that the state can benchmark its performance against 
 81.33  the nation and other states, and, where possible, against other 
 81.34  countries, and contribute to the national effort to monitor 
 81.35  achievement; and 
 81.36     (5) basic skills and advanced competencies connecting 
 82.1   teaching and learning to high academic standards, assessment, 
 82.2   and transitions to citizenship and employment. 
 82.3      (e) Districts must report exemptions under paragraph (d), 
 82.4   clause (1), to the commissioner consistent with a format 
 82.5   provided by the commissioner. 
 82.6      <h>EFFECTIVE DATE:</h>  This section is effective the day 
 82.7   following final enactment and applies to test administrations 
 82.8   beginning in February 2000. 
 82.9      Sec. 4.  Minnesota Statutes 1998, section 121A.22, 
 82.10  subdivision 2, is amended to read: 
 82.11     Subd. 2.  [EXCLUSIONS.] In addition, this section does not 
 82.12  apply to drugs or medicine: 
 82.13     (1) that can be purchased without a prescription; 
 82.14     (2) that are used by a pupil who is 18 years old or older; 
 82.15     (3) (2) that are used in connection with services for which 
 82.16  a minor may give effective consent, including section 144.343, 
 82.17  subdivision 1, and any other law; 
 82.18     (4) (3) that are used in situations in which, in the 
 82.19  judgment of the school personnel who are present or available, 
 82.20  the risk to the pupil's life or health is of such a nature that 
 82.21  drugs or medicine should be given without delay; 
 82.22     (5) (4) that are used off the school grounds; 
 82.23     (6) (5) that are used in connection with athletics or extra 
 82.24  curricular activities; 
 82.25     (7) (6) that are used in connection with activities that 
 82.26  occur before or after the regular school day; or 
 82.27     (8) (7) that are provided or administered by a public 
 82.28  health agency in order to prevent or control an illness or a 
 82.29  disease outbreak as provided for in sections 144.05 and 144.12. 
 82.30     Sec. 5.  Minnesota Statutes 1998, section 121A.22, 
 82.31  subdivision 3, is amended to read: 
 82.32     Subd. 3.  [LABELING.] Prescription drugs or medicine 
 82.33  subject to this section must be in a container with a label 
 82.34  prepared by a pharmacist according to section 151.212 and 
 82.35  applicable rules.  Nonprescription drugs or medicines must be 
 82.36  FDA approved and in the original container with an original 
 83.1   label containing use instructions. 
 83.2      Sec. 6.  [121A.582] [STUDENT DISCIPLINE; REASONABLE FORCE.] 
 83.3      Subdivision 1.  [REASONABLE FORCE STANDARD.] (a) A teacher, 
 83.4   in exercising the person's lawful authority, may use reasonable 
 83.5   force when it is necessary under the circumstances to correct or 
 83.6   restrain a student or prevent bodily harm or death to another. 
 83.7      (b) A school employee, school bus driver, or other agent of 
 83.8   a district, in exercising the person's lawful authority, may use 
 83.9   reasonable force when it is necessary under the circumstances to 
 83.10  restrain a student or prevent bodily harm or death to another. 
 83.11     (c) Paragraphs (a) and (b) do not authorize conduct 
 83.12  prohibited under sections 121A.58 and 121A.67. 
 83.13     Subd. 2.  [CIVIL LIABILITY.] (a) A teacher who, in the 
 83.14  exercise of the person's lawful authority, uses reasonable force 
 83.15  under the standard in subdivision 1, paragraph (a), has a 
 83.16  defense against a civil action for damages under section 123B.25.
 83.17     (b) A school employee, bus driver, or other agent of a 
 83.18  district who, in the exercise of the person's lawful authority, 
 83.19  uses reasonable force under the standard in subdivision 1, 
 83.20  paragraph (b), has a defense against a civil action for damages 
 83.21  under section 123B.25. 
 83.22     Subd. 3.  [CRIMINAL PROSECUTION.] (a) A teacher who, in the 
 83.23  exercise of the person's lawful authority, uses reasonable force 
 83.24  under the standard in subdivision 1, paragraph (a), has a 
 83.25  defense against a criminal prosecution under section 609.06, 
 83.26  subdivision 1. 
 83.27     (b) A school employee, bus driver, or other agent of a 
 83.28  district who, in the exercise of the person's lawful authority, 
 83.29  uses reasonable force under the standard in subdivision 1, 
 83.30  paragraph (b), has a defense against a criminal prosecution 
 83.31  under section 609.06, subdivision 1. 
 83.32     Subd. 4.  [SUPPLEMENTARY RIGHTS AND DEFENSES.] Any right or 
 83.33  defense in this section is supplementary to those specified in 
 83.34  section 121A.58, 121A.67, 123B.25, or 609.06, subdivision 1. 
 83.35     <h>EFFECTIVE DATE:</h>  This section is effective for the 
 83.36  2000-2001 school year and later. 
 84.1      Sec. 7.  Minnesota Statutes 1998, section 121A.61, 
 84.2   subdivision 3, is amended to read: 
 84.3      Subd. 3.  [POLICY COMPONENTS.] The policy must include at 
 84.4   least the following components:  
 84.5      (a) rules governing student conduct and procedures for 
 84.6   informing students of the rules; 
 84.7      (b) the grounds for removal of a student from a class; 
 84.8      (c) the authority of the classroom teacher to remove 
 84.9   students from the classroom pursuant to procedures and rules 
 84.10  established in the district's policy; 
 84.11     (d) the procedures for removal of a student from a class by 
 84.12  a teacher, school administrator, or other school district 
 84.13  employee; 
 84.14     (e) the period of time for which a student may be removed 
 84.15  from a class, which may not exceed five class periods for a 
 84.16  violation of a rule of conduct; 
 84.17     (f) provisions relating to the responsibility for and 
 84.18  custody of a student removed from a class; 
 84.19     (g) the procedures for return of a student to the specified 
 84.20  class from which the student has been removed; 
 84.21     (h) the procedures for notifying a student and the 
 84.22  student's parents or guardian of violations of the rules of 
 84.23  conduct and of resulting disciplinary actions; 
 84.24     (i) any procedures determined appropriate for encouraging 
 84.25  early involvement of parents or guardians in attempts to improve 
 84.26  a student's behavior; 
 84.27     (j) any procedures determined appropriate for encouraging 
 84.28  early detection of behavioral problems; 
 84.29     (k) any procedures determined appropriate for referring a 
 84.30  student in need of special education services to those services; 
 84.31     (1) the procedures for consideration of whether there is a 
 84.32  need for a further assessment or of whether there is a need for 
 84.33  a review of the adequacy of a current individual education plan 
 84.34  of a student with a disability who is removed from class; 
 84.35     (m) procedures for detecting and addressing chemical abuse 
 84.36  problems of a student while on the school premises; 
 85.1      (n) the minimum consequences for violations of the code of 
 85.2   conduct; and 
 85.3      (o) procedures for immediate and appropriate interventions 
 85.4   tied to violations of the code; and 
 85.5      (p) a provision that states that a teacher, school 
 85.6   employee, school bus driver, or other agent of the school 
 85.7   district may use reasonable force in compliance with section 
 85.8   121A.582 and other laws.  
 85.9      <h>EFFECTIVE DATE:</h>  The section is effective for the 2001-2002 
 85.10  school year and later. 
 85.11     Sec. 8.  Minnesota Statutes 1999 Supplement, section 
 85.12  122A.18, subdivision 3, is amended to read: 
 85.13     Subd. 3.  [SUPERVISORY AND COACH QUALIFICATIONS; CODE OF 
 85.14  ETHICS.] (a) The commissioner of children, families, and 
 85.15  learning must issue licenses under its jurisdiction to persons 
 85.16  the commissioner finds to be qualified and competent for their 
 85.17  respective positions under the rules it adopts.  The 
 85.18  commissioner of children, families, and learning may develop, by 
 85.19  rule, a code of ethics for supervisory personnel covering 
 85.20  standards of professional practices, including areas of ethical 
 85.21  conduct and professional performance and methods of enforcement. 
 85.22     (b) Notwithstanding Minnesota Rules, part 3512.2500, the 
 85.23  commissioner of children, families, and learning may approve a 
 85.24  licensure program offered by an entity other than a college or 
 85.25  university in administration and supervision, if the program 
 85.26  meets the requirements for approval and continuation that apply 
 85.27  to colleges and universities. 
 85.28     Sec. 9.  Minnesota Statutes 1999 Supplement, section 
 85.29  122A.20, subdivision 1, is amended to read: 
 85.30     Subdivision 1.  [GROUNDS FOR REVOCATION, SUSPENSION, OR 
 85.31  DENIAL.] (a) The board of teaching or the commissioner, with the 
 85.32  advice from an advisory task force of supervisory personnel 
 85.33  established under section 15.014, whichever has jurisdiction 
 85.34  over a teacher's licensure, may, on the written complaint of the 
 85.35  school board employing a teacher, a teacher organization, or any 
 85.36  other interested person, refuse to issue, refuse to renew, 
 86.1   suspend, or revoke a teacher's license to teach for any of the 
 86.2   following causes: 
 86.3      (1) Immoral character or conduct; 
 86.4      (2) Failure, without justifiable cause, to teach for the 
 86.5   term of the teacher's contract; 
 86.6      (3) Gross inefficiency or willful neglect of duty; or 
 86.7      (4) Knowingly altering, counterfeiting, or misreporting 
 86.8   student assessment information required under chapter 120B, with 
 86.9   the intent to deceive; 
 86.10     (4) (5) Failure to meet licensure requirements; or 
 86.11     (5) (6) Fraud or misrepresentation in obtaining a license. 
 86.12     The written complaint must specify the nature and character 
 86.13  of the charges.  
 86.14     (b) The board of teaching or the commissioner of children, 
 86.15  families, and learning whichever has jurisdiction over a 
 86.16  teacher's licensure, shall refuse to issue, refuse to renew, or 
 86.17  automatically revoke a teacher's license to teach without the 
 86.18  right to a hearing upon receiving a certified copy of a 
 86.19  conviction showing that the teacher has been convicted of child 
 86.20  abuse, as defined in section 609.185, or sexual abuse under 
 86.21  section 609.342, 609.343, 609.344, 609.345, 609.3451, 
 86.22  subdivision 3, or 617.23, subdivision 3, or under a similar law 
 86.23  of another state or the United States.  The board shall send 
 86.24  notice of this licensing action to the district in which the 
 86.25  teacher is currently employed. 
 86.26     (c) A person whose license to teach has been revoked, not 
 86.27  issued, or not renewed under paragraph (b), may petition the 
 86.28  board to reconsider the licensing action if the person's 
 86.29  conviction for child abuse or sexual abuse is reversed by a 
 86.30  final decision of the court of appeals or the supreme court or 
 86.31  if the person has received a pardon for the offense.  The 
 86.32  petitioner shall attach a certified copy of the appellate 
 86.33  court's final decision or the pardon to the petition.  Upon 
 86.34  receiving the petition and its attachment, the board shall 
 86.35  schedule and hold a disciplinary hearing on the matter under 
 86.36  section 214.10, subdivision 2, unless the petitioner waives the 
 87.1   right to a hearing.  If the board finds that, notwithstanding 
 87.2   the reversal of the petitioner's criminal conviction or the 
 87.3   issuance of a pardon, the petitioner is disqualified from 
 87.4   teaching under paragraph (a), clause (1), the board shall affirm 
 87.5   its previous licensing action.  If the board finds that the 
 87.6   petitioner is not disqualified from teaching under paragraph 
 87.7   (a), clause (1), it shall reverse its previous licensing action. 
 87.8      (d) For purposes of this subdivision, the board of teaching 
 87.9   is delegated the authority to suspend or revoke coaching 
 87.10  licenses. 
 87.11     Sec. 10.  Minnesota Statutes 1999 Supplement, section 
 87.12  122A.23, is amended to read: 
 87.13     122A.23 [APPLICANTS TRAINED IN OTHER STATES.] 
 87.14     Subdivision 1.  [PREPARATION EQUIVALENCY.] When a license 
 87.15  to teach is authorized to be issued to any holder of a diploma 
 87.16  or a degree of a Minnesota state university, or of the 
 87.17  University of Minnesota, or of a liberal arts university, or a 
 87.18  technical training institution, such license may also, in the 
 87.19  discretion of the board of teaching or the commissioner of 
 87.20  children, families, and learning, whichever has jurisdiction, be 
 87.21  issued to any holder of a diploma or a degree of a teacher 
 87.22  training institution of equivalent rank and standing of any 
 87.23  other state.  The diploma or degree must be granted by virtue of 
 87.24  the completion of a course in teacher preparation essentially 
 87.25  equivalent in content to that required by such Minnesota state 
 87.26  university or the University of Minnesota or a liberal arts 
 87.27  university in Minnesota or a technical training institution as 
 87.28  preliminary to the granting of a diploma or a degree of the same 
 87.29  rank and class. 
 87.30     Subd. 2.  [APPLICANTS LICENSED IN OTHER STATES.] (a) If an 
 87.31  applicant for a Minnesota teaching license holds at least a 
 87.32  baccalaureate degree from a regionally accredited college or 
 87.33  university, and holds or has held a similar teaching license in 
 87.34  another state, and the license was issued based on successful 
 87.35  completion of teacher preparation program approved by the 
 87.36  issuing state, including field-specific methods of teaching and 
 88.1   student teaching or essentially equivalent experience, then the 
 88.2   board of teaching shall issue the license using the criteria in 
 88.3   paragraphs (b) to (e). 
 88.4      (b) If the applicant has successfully completed all 
 88.5   examinations and human relations preparation components required 
 88.6   by the board of teaching and holds or has held a license in 
 88.7   another state to teach the same content field and grade levels 
 88.8   equal to, greater than, or not more than one year less than a 
 88.9   similar license available in Minnesota, then the board shall 
 88.10  issue a license identical to the license it would issue to an 
 88.11  applicant who has successfully completed those requirements in a 
 88.12  Minnesota teacher preparation program. 
 88.13     (c) If the applicant holds or has held a teaching license 
 88.14  issued by another state to teach the same content field and 
 88.15  grade levels equal to, greater than, or not more than one year 
 88.16  less than a similar license available in Minnesota, but has not 
 88.17  successfully completed all examinations and human relations 
 88.18  preparation components required by the board of teaching, then 
 88.19  the board shall issue a temporary license according to board 
 88.20  rules to provide the applicant time to complete required 
 88.21  examination and human relations components. 
 88.22     (d) If the applicant has successfully completed all 
 88.23  examinations and human relations preparation components required 
 88.24  by the board of teaching and holds a license issued by another 
 88.25  state based on successful completion of a teacher preparation 
 88.26  program approved by the issuing state but has not completed 
 88.27  student teaching or equivalent experience, field-specific 
 88.28  methods of teaching, or both, then the board shall issue a 
 88.29  temporary license according to board rules to provide the 
 88.30  applicant time to complete student teaching or equivalent 
 88.31  experience, field-specific methods of teaching, or both.  An 
 88.32  applicant may fulfill the student teaching or equivalent 
 88.33  experience requirement, field-specific methods of teaching 
 88.34  requirement, or both, by successfully completing a year in a 
 88.35  school district mentorship program consistent with the standards 
 88.36  of effective practice adopted by the board of teaching and the 
 89.1   Minnesota graduation requirements. 
 89.2      (e) If the applicant has successfully completed all 
 89.3   examinations and human relations preparation components required 
 89.4   by the board of teaching and holds or has held a license issued 
 89.5   by another state, but the license is more limited in the content 
 89.6   field, grade levels, or both, than a similar Minnesota license, 
 89.7   then the applicant shall be issued a temporary license valid for 
 89.8   up to three years for only the content field, grade levels, or 
 89.9   both, for which the applicant was licensed in the other state, 
 89.10  to provide time for the applicant to meet full Minnesota 
 89.11  licensure requirements in the field. 
 89.12     (f) No applicant shall be issued any temporary license or 
 89.13  combination of temporary licenses under paragraphs (c) to (e) 
 89.14  for a period of time exceeding three years. 
 89.15     (g) No license shall be issued under this subdivision when 
 89.16  the licensure field requires additional degrees, credentials, or 
 89.17  licenses that the candidate has not achieved. 
 89.18     Sec. 11.  Minnesota Statutes 1998, section 122A.25, is 
 89.19  amended by adding a subdivision to read: 
 89.20     Subd. 2a.  [INDIVIDUAL PREAPPROVAL.] (a) An individual not 
 89.21  licensed by the board of teaching that holds certification, 
 89.22  credentials, or professional recognition as an expert in a 
 89.23  specialized method of instruction not typically offered in the 
 89.24  school program may apply to the board of teaching to be granted 
 89.25  preapproval as a community expert eligible to teach in a public 
 89.26  school or charter school under this section.  In making its 
 89.27  determination, the board shall consider only the criteria of 
 89.28  subdivision 2, clause (1). 
 89.29     (b) A preapproved community expert under this subdivision 
 89.30  may be hired to teach by a school district or charter school 
 89.31  only if the school district or charter school applies under 
 89.32  subdivision 2 and the board of teaching approves the application 
 89.33  after considering the criteria of subdivision 2, clauses (2) to 
 89.34  (7). 
 89.35     Sec. 12.  Minnesota Statutes 1998, section 122A.25, is 
 89.36  amended by adding a subdivision to read: 
 90.1      Subd. 2b.  [BACKGROUND CHECK.] The school district or 
 90.2   charter school shall request a criminal history background check 
 90.3   under section 123B.03 on a hired nonlicensed community expert 
 90.4   and verify the completion of the criminal history background 
 90.5   check to the board of teaching. 
 90.6      Sec. 13.  Minnesota Statutes 1998, section 122A.25, is 
 90.7   amended by adding a subdivision to read: 
 90.8      Subd. 2c.  [EXCEPTION.] A current or former faculty member 
 90.9   in a board of teaching approved teacher preparation program 
 90.10  shall be automatically approved as a nonlicensed community 
 90.11  expert to teach courses in or otherwise serve a school district 
 90.12  or charter school in the individual's field of expertise upon a 
 90.13  district or charter school's registering the intention to employ 
 90.14  that current or former faculty member under this subdivision. 
 90.15     Sec. 14.  Minnesota Statutes 1998, section 122A.25, 
 90.16  subdivision 3, is amended to read: 
 90.17     Subd. 3.  [APPROVAL OF PLAN.] The board of teaching shall 
 90.18  approve or disapprove an application within 60 days of receiving 
 90.19  it from a school district or, charter school, or individual. 
 90.20     Sec. 15.  Minnesota Statutes 1998, section 123B.04, 
 90.21  subdivision 2, is amended to read: 
 90.22     Subd. 2.  [AGREEMENT.] (a) Either the school board or the 
 90.23  school site decision-making team may request that the school 
 90.24  board enter into an agreement with a school site decision-making 
 90.25  team concerning the governance, management, or control of the 
 90.26  school.  A school site decision-making team may include the 
 90.27  school principal, teachers in the school or their designee, 
 90.28  other employees in the school, parents of pupils in the school, 
 90.29  representatives of pupils in the school, or other members in the 
 90.30  community.  The school site decision-making team shall include 
 90.31  the school principal or other person having general control and 
 90.32  supervision of the school.  The site decision-making team must 
 90.33  reflect the diversity of the education site.  No more than 
 90.34  one-half of the members shall be employees of the district, 
 90.35  unless an employee is the parent of a student enrolled in the 
 90.36  school site, in which case the employee may elect to serve as a 
 91.1   parent member of the site team. 
 91.2      (b) School site decision-making agreements must delegate 
 91.3   powers, duties, and broad management responsibilities to site 
 91.4   teams and involve staff members, students as appropriate, and 
 91.5   parents in decision making. 
 91.6      (c) An agreement shall include a statement of powers, 
 91.7   duties, responsibilities, and authority to be delegated to and 
 91.8   within the site. 
 91.9      (d) An agreement may include: 
 91.10     (1) an achievement contract according to subdivision 4; 
 91.11     (2) a mechanism to allow principals, or other persons 
 91.12  having general control and supervision of the school, to make 
 91.13  decisions regarding how financial and personnel resources are 
 91.14  best allocated at the site and from whom goods or services are 
 91.15  purchased; 
 91.16     (3) a mechanism to implement parental involvement programs 
 91.17  under section 124D.895 and to provide for effective parental 
 91.18  communication and feedback on this involvement at the site 
 91.19  level; 
 91.20     (4) a provision that would allow the team to determine who 
 91.21  is hired into licensed and nonlicensed positions; 
 91.22     (5) a provision that would allow teachers to choose the 
 91.23  principal or other person having general control; 
 91.24     (6) an amount of revenue allocated to the site under 
 91.25  subdivision 3; and 
 91.26     (7) any other powers and duties determined appropriate by 
 91.27  the board. 
 91.28     The school board of the district remains the legal employer 
 91.29  under clauses (4) and (5). 
 91.30     (e) Any powers or duties not delegated to the school site 
 91.31  management team in the school site management agreement shall 
 91.32  remain with the school board. 
 91.33     (f) Approved agreements shall be filed with the 
 91.34  commissioner.  If a school board denies a request to enter into 
 91.35  a school site management agreement, it shall provide a copy of 
 91.36  the request and the reasons for its denial to the commissioner.  
 92.1      <h>EFFECTIVE DATE:</h>  This section is effective July 1, 2000. 
 92.2      Sec. 16.  Minnesota Statutes 1998, section 123B.143, 
 92.3   subdivision 1, is amended to read: 
 92.4      Subdivision 1.  [CONTRACT; DUTIES.] All districts 
 92.5   maintaining a classified secondary school must employ a 
 92.6   superintendent who shall be an ex officio nonvoting member of 
 92.7   the school board.  The authority for selection and employment of 
 92.8   a superintendent must be vested in the board in all cases.  An 
 92.9   individual employed by a board as a superintendent shall have an 
 92.10  initial employment contract for a period of time no longer than 
 92.11  three years from the date of employment.  Any subsequent 
 92.12  employment contract must not exceed a period of three years.  A 
 92.13  board, at its discretion, may or may not renew an employment 
 92.14  contract.  A board must not, by action or inaction, extend the 
 92.15  duration of an existing employment contract.  Beginning 365 days 
 92.16  prior to the expiration date of an existing employment contract, 
 92.17  a board may negotiate and enter into a subsequent employment 
 92.18  contract to take effect upon the expiration of the existing 
 92.19  contract.  A subsequent contract must be contingent upon the 
 92.20  employee completing the terms of an existing contract.  If a 
 92.21  contract between a board and a superintendent is terminated 
 92.22  prior to the date specified in the contract, the board may not 
 92.23  enter into another superintendent contract with that same 
 92.24  individual that has a term that extends beyond the date 
 92.25  specified in the terminated contract.  A board may terminate a 
 92.26  superintendent during the term of an employment contract for any 
 92.27  of the grounds specified in section 122A.40, subdivision 9 or 13.
 92.28  A superintendent shall not rely upon an employment contract with 
 92.29  a board to assert any other continuing contract rights in the 
 92.30  position of superintendent under section 122A.40.  
 92.31  Notwithstanding the provisions of sections 122A.40, subdivision 
 92.32  10 or 11, 123A.32, 123A.75, or any other law to the contrary, no 
 92.33  individual shall have a right to employment as a superintendent 
 92.34  based on order of employment in any district.  If two or more 
 92.35  districts enter into an agreement for the purchase or sharing of 
 92.36  the services of a superintendent, the contracting districts have 
 93.1   the absolute right to select one of the individuals employed to 
 93.2   serve as superintendent in one of the contracting districts and 
 93.3   no individual has a right to employment as the superintendent to 
 93.4   provide all or part of the services based on order of employment 
 93.5   in a contracting district. The superintendent of a district 
 93.6   shall perform the following:  
 93.7      (1) visit and supervise the schools in the district, report 
 93.8   and make recommendations about their condition when advisable or 
 93.9   on request by the board; 
 93.10     (2) recommend to the board employment and dismissal of 
 93.11  teachers; 
 93.12     (3) superintend school grading practices and examinations 
 93.13  for promotions; 
 93.14     (4) make reports required by the commissioner; 
 93.15     (5) by January 10, submit an annual report to the 
 93.16  commissioner in a manner prescribed by the commissioner, in 
 93.17  consultation with school districts, identifying the expenditures 
 93.18  that the district requires to ensure an 80 percent and a 90 
 93.19  percent student passage rate on the basic standards test taken 
 93.20  in the eighth grade, identifying the amount of expenditures that 
 93.21  the district requires to ensure a 99 percent student passage 
 93.22  rate on the basic standards test by 12th grade, and how much the 
 93.23  district is cross-subsidizing programs with special education, 
 93.24  compensatory basic skills, and general education revenue; and 
 93.25     (6) perform other duties prescribed by the board. 
 93.26     Sec. 17.  Minnesota Statutes 1998, section 123B.52, is 
 93.27  amended by adding a subdivision to read: 
 93.28     Subd. 6.  [DISPOSING OF SURPLUS SCHOOL 
 93.29  COMPUTERS.] Notwithstanding section 471.345 governing school 
 93.30  district contracts made upon sealed bid or otherwise complying 
 93.31  with the requirements for competitive bidding, other provisions 
 93.32  of this section governing school district contracts or other law 
 93.33  to the contrary, a school district under this subdivision may 
 93.34  dispose of a surplus school computer and related equipment if 
 93.35  the district disposes of the surplus property by conveying the 
 93.36  property and title to: 
 94.1      (1) another school district; 
 94.2      (2) the state department of corrections; 
 94.3      (3) the board of trustees of the Minnesota state colleges 
 94.4   and universities; or 
 94.5      (4) the family of a student residing in the district whose 
 94.6   total family income meets the federal definition of poverty. 
 94.7      <h>EFFECTIVE DATE:</h>  This section is effective the day 
 94.8   following final enactment. 
 94.9      Sec. 18.  Minnesota Statutes 1998, section 123B.77, 
 94.10  subdivision 3, is amended to read: 
 94.11     Subd. 3.  [STATEMENT FOR COMPARISON AND CORRECTION.] By 
 94.12  November 30 of the calendar year of the submission of the 
 94.13  unaudited financial data, the district must provide to the 
 94.14  commissioner audited financial data for the preceding fiscal 
 94.15  year.  The audit must be conducted in compliance with generally 
 94.16  accepted governmental auditing standards, the federal Single 
 94.17  Audit Act, and the Minnesota legal compliance guide issued by 
 94.18  the office of the state auditor.  An audited financial statement 
 94.19  prepared in a form which will allow comparison with and 
 94.20  correction of material differences in the unaudited financial 
 94.21  data shall be submitted to the commissioner and the state 
 94.22  auditor by December 31.  The audited financial statement must 
 94.23  also provide a statement of assurance pertaining to uniform 
 94.24  financial accounting and reporting standards compliance and a 
 94.25  copy of the management letter submitted to the district by the 
 94.26  school district's auditor. 
 94.27     Sec. 19.  Minnesota Statutes 1998, section 123B.79, 
 94.28  subdivision 7, is amended to read: 
 94.29     Subd. 7.  [ACCOUNT TRANSFER FOR CERTAIN SEVERANCE PAY.] A 
 94.30  district may maintain in a designated reserve for certain 
 94.31  severance pay account not more than 50 percent of the amount 
 94.32  necessary to meet the obligations for the portion of severance 
 94.33  pay that constitutes compensation for accumulated sick leave to 
 94.34  be used for payment of premiums for group insurance provided for 
 94.35  former employees by the district.  The amount necessary must be 
 94.36  calculated according to standards established by the advisory 
 95.1   council on uniform financial accounting and reporting 
 95.2   standards department. 
 95.3      Sec. 20.  Minnesota Statutes 1999 Supplement, section 
 95.4   123B.83, subdivision 4, is amended to read: 
 95.5      Subd. 4.  [SPECIAL OPERATING PLAN.] (1) If the net negative 
 95.6   unappropriated operating unreserved general fund balance as 
 95.7   defined in section 126C.01, subdivision 11, calculated in 
 95.8   accordance with the uniform financial accounting and reporting 
 95.9   standards for Minnesota school districts, as of June 30 each 
 95.10  year, is more than 2-1/2 percent of the year's expenditure 
 95.11  amount, the district must, prior to January 31 of the next 
 95.12  fiscal year, submit a special operating plan to reduce the 
 95.13  district's deficit expenditures to the commissioner for 
 95.14  approval.  The commissioner may also require the district to 
 95.15  provide evidence that the district meets and will continue to 
 95.16  meet all high school graduation requirements. 
 95.17     Notwithstanding any other law to the contrary, a district 
 95.18  submitting a special operating plan to the commissioner under 
 95.19  this clause which is disapproved by the commissioner must not 
 95.20  receive any aid pursuant to chapters 120B, 122A, 123A, 123B, 
 95.21  124D, 125A, 126C, and 127A until a special operating plan of the 
 95.22  district is so approved. 
 95.23     (2) A district must receive aids pending the approval of 
 95.24  its special operating plan under clause (1).  A district which 
 95.25  complies with its approved operating plan must receive aids as 
 95.26  long as the district continues to comply with the approved 
 95.27  operating plan. 
 95.28     Sec. 21.  Minnesota Statutes 1998, section 123B.86, 
 95.29  subdivision 1, is amended to read: 
 95.30     Subdivision 1.  [GENERAL PROVISIONS.] A district shall 
 95.31  provide equal transportation within the district for all school 
 95.32  children to any school when transportation is deemed necessary 
 95.33  by the school board because of distance or traffic condition in 
 95.34  like manner and form as provided in sections 123B.88 and 124.223 
 95.35  123B.92, when applicable. 
 95.36     Sec. 22.  Minnesota Statutes 1998, section 123B.88, 
 96.1   subdivision 3, is amended to read: 
 96.2      Subd. 3.  [TRANSPORTATION SERVICES CONTRACTS.] The board 
 96.3   may contract for the furnishing of authorized transportation 
 96.4   under rules established by the commissioner section 123B.52, and 
 96.5   may purchase gasoline and furnish same to a contract carrier for 
 96.6   use in the performance of a contract with the school district 
 96.7   for transportation of school children to and from school. 
 96.8      Sec. 23.  Minnesota Statutes 1998, section 123B.90, 
 96.9   subdivision 1, is amended to read: 
 96.10     Subdivision 1.  [SCHOOL BUS SAFETY WEEK.] The third week of 
 96.11  school is designated as school bus safety week. 
 96.12     A school board may designate one day of school bus safety 
 96.13  week as school bus driver day. 
 96.14     <h>EFFECTIVE DATE:</h>  This section is effective the day 
 96.15  following final enactment. 
 96.16     Sec. 24.  Minnesota Statutes 1999 Supplement, section 
 96.17  123B.90, subdivision 2, is amended to read: 
 96.18     Subd. 2.  [STUDENT TRAINING.] (a) Each district must 
 96.19  provide public school pupils enrolled in grades kindergarten 
 96.20  through 10 with age-appropriate school bus safety training.  The 
 96.21  training must be results-oriented and shall consist of both 
 96.22  classroom instruction and practical training using a school 
 96.23  bus.  Upon completing the training, a student shall be able to 
 96.24  demonstrate knowledge and understanding of at least the 
 96.25  following competencies and concepts: 
 96.26     (1) transportation by school bus is a privilege and not a 
 96.27  right; 
 96.28     (2) district policies for student conduct and school bus 
 96.29  safety; 
 96.30     (3) appropriate conduct while on the school bus; 
 96.31     (4) the danger zones surrounding a school bus; 
 96.32     (5) procedures for safely boarding and leaving a school 
 96.33  bus; 
 96.34     (6) procedures for safe street or road crossing; 
 96.35     (7) school bus evacuation and other emergency procedures; 
 96.36  and 
 97.1      (8) appropriate training on the use of lap belts or lap and 
 97.2   shoulder belts, if the district uses buses equipped with lap 
 97.3   belts or lap and shoulder belts. 
 97.4      (b) Each nonpublic school located within the district must 
 97.5   provide all nonpublic school pupils enrolled in grades 
 97.6   kindergarten through 10 who are transported by school bus at 
 97.7   public expense and attend school within the district's 
 97.8   boundaries with training as required in paragraph (a).  The 
 97.9   school district shall make a bus available for the practical 
 97.10  training if the district transports the nonpublic students.  
 97.11  Each nonpublic school shall provide the instruction. 
 97.12     (c) All students enrolled in grades kindergarten through 3 
 97.13  who are transported by school bus and are enrolled during the 
 97.14  first or second week of school must demonstrate achievement of 
 97.15  the school bus safety training competencies by the end of the 
 97.16  third week of school.  All students enrolled in grades 4 through 
 97.17  10 who are transported by school bus and are enrolled during the 
 97.18  first or second week of school must demonstrate achievement of 
 97.19  the competencies by the end of the sixth week of school.  
 97.20  Students enrolled in grades kindergarten through 10 who enroll 
 97.21  in a school after the second week of school and are transported 
 97.22  by school bus shall undergo school bus safety training and 
 97.23  demonstrate achievement of the school bus safety competencies 
 97.24  within four weeks of the first day of attendance.  The pupil 
 97.25  school transportation safety director in each district must 
 97.26  certify to the commissioner annually that all students 
 97.27  transported by school bus within the district have 
 97.28  satisfactorily demonstrated knowledge and understanding of the 
 97.29  school bus safety competencies according to this section or 
 97.30  provide an explanation for a student's failure to demonstrate 
 97.31  the competencies.  The principal or other chief administrator of 
 97.32  each nonpublic school must certify annually to the public school 
 97.33  transportation safety director of the district in which the 
 97.34  school is located that all of the school's students transported 
 97.35  by school bus at public expense have received training.  A 
 97.36  district may deny transportation to a student who fails to 
 98.1   demonstrate the competencies, unless the student is unable to 
 98.2   achieve the competencies due to a disability, or to a student 
 98.3   who attends a nonpublic school that fails to provide training as 
 98.4   required by this subdivision. 
 98.5      (d) A district and a nonpublic school with students 
 98.6   transported by school bus at public expense must, to the extent 
 98.7   possible, provide kindergarten pupils with bus safety training 
 98.8   before the first day of school. 
 98.9      (e) A district and a nonpublic school with students 
 98.10  transported by school bus at public expense must also provide 
 98.11  student safety education for bicycling and pedestrian safety, 
 98.12  for students enrolled in grades kindergarten through 5. 
 98.13     (f) A district and a nonpublic school with students 
 98.14  transported by school bus at public expense must make reasonable 
 98.15  accommodations for the school bus, bicycle, and pedestrian 
 98.16  safety training of pupils known to speak English as a second 
 98.17  language and pupils with disabilities. 
 98.18     Sec. 25.  Minnesota Statutes 1999 Supplement, section 
 98.19  123B.91, subdivision 1, is amended to read: 
 98.20     Subdivision 1.  [COMPREHENSIVE POLICY.] (a) Each district 
 98.21  must shall develop and implement a comprehensive, written policy 
 98.22  governing pupil transportation safety, including transportation 
 98.23  of nonpublic school students, when applicable.  The 
 98.24  policy shall, at minimum, must contain: 
 98.25     (1) provisions for appropriate student bus safety training 
 98.26  under section 123B.90; 
 98.27     (2) rules governing student conduct on school buses and in 
 98.28  school bus loading and unloading areas; 
 98.29     (3) a statement of parent or guardian responsibilities 
 98.30  relating to school bus safety; 
 98.31     (4) provisions for notifying students and parents or 
 98.32  guardians of their responsibilities and the rules, including the 
 98.33  district's seat belt policy, if applicable; 
 98.34     (5) an intradistrict system for reporting school bus 
 98.35  accidents or misconduct and a system for dealing with local law 
 98.36  enforcement officials in cases of criminal conduct on a school 
 99.1   bus; 
 99.2      (6) a discipline policy to address violations of school bus 
 99.3   safety rules, including procedures for revoking a student's bus 
 99.4   riding privileges in cases of serious or repeated misconduct; 
 99.5      (7) a system for integrating school bus misconduct records 
 99.6   with other discipline records; 
 99.7      (8) a statement of bus driver duties; 
 99.8      (9) planned expenditures for safety activities under 
 99.9   section 123B.89 and, where applicable, provisions governing bus 
 99.10  monitor qualifications, training, and duties; 
 99.11     (10) rules governing the use and maintenance of type III 
 99.12  vehicles, drivers of type III vehicles, qualifications to drive 
 99.13  a type III vehicle, qualifications for a type III vehicle, and 
 99.14  the circumstances under which a student may be transported in a 
 99.15  type III vehicle; 
 99.16     (11) operating rules and procedures; 
 99.17     (12) provisions for annual bus driver in-service training 
 99.18  and evaluation; 
 99.19     (13) emergency procedures; 
 99.20     (14) a system for maintaining and inspecting equipment; 
 99.21     (15) requirements of the school district, if any, that 
 99.22  exceed state law minimum requirements for school bus operations; 
 99.23  and 
 99.24     (16) requirements for basic first aid training, which must 
 99.25  include the Heimlich maneuver and procedures for dealing with 
 99.26  obstructed airways, shock, bleeding, and seizures. 
 99.27     (b) Districts are encouraged to use the model policy 
 99.28  developed by the Minnesota school boards association, the 
 99.29  department of public safety, and the department of children, 
 99.30  families, and learning, as well as the current edition of the 
 99.31  "National Standards for School Buses and Operations 
 99.32  Transportation," published by the National Safety Council, in 
 99.33  developing safety policies.  Each district shall review its 
 99.34  policy annually and make appropriate amendments, which must be 
 99.35  submitted to the school bus safety advisory committee within one 
 99.36  month of approval by the school board to ensure that it conforms 
100.1   to law. 
100.2      <h>EFFECTIVE DATE:</h>  This section is effective the day 
100.3   following final enactment. 
100.4      Sec. 26.  Minnesota Statutes 1998, section 124D.03, 
100.5   subdivision 1, is amended to read: 
100.6      Subdivision 1.  [ESTABLISHMENT.] (a) An enrollment options 
100.7   program is established to enable any pupil to attend a school or 
100.8   program in a district in which the pupil does not reside, 
100.9   subject to the limitations in this section.  
100.10     (b) A district may refuse to allow a pupil who is expelled 
100.11  under section 121A.45 to enroll during the term of the expulsion 
100.12  if the student was expelled for: 
100.13     (1) possessing a dangerous weapon, as defined by United 
100.14  States Code, title 18, section 930, paragraph (g)(2), at school 
100.15  or a school function; 
100.16     (2) possessing or using an illegal drug at school or a 
100.17  school function; 
100.18     (3) selling or soliciting the sale of a controlled 
100.19  substance while at school or a school function; or 
100.20     (4) committing a third-degree assault as described in 
100.21  section 609.223, subdivision 1. 
100.22     <h>EFFECTIVE DATE:</h>  This section is effective for the 
100.23  2000-2001 school year and later. 
100.24     Sec. 27.  Minnesota Statutes 1998, section 124D.081, 
100.25  subdivision 6, is amended to read: 
100.26     Subd. 6.  [PREPAREDNESS REVENUE.] (a) A qualifying school 
100.27  district is eligible for first-grade preparedness revenue equal 
100.28  to the basic formula allowance for that year times the number of 
100.29  children five years of age or older enrolled in a kindergarten 
100.30  program at the site on October 1 of the previous year times .53. 
100.31     (b) This revenue must supplement and not replace 
100.32  compensatory revenue that the district uses for the same or 
100.33  similar purposes under chapters 120B, 123A, 123B, 124D, 126C, 
100.34  and 127A. 
100.35     (c) A pupil enrolled in the first grade preparedness 
100.36  program at a qualifying school site is eligible for 
101.1   transportation under section 123B.88, subdivision 1.  
101.2      (d) First grade preparedness revenue paid to a charter 
101.3   school for which a school district is providing transportation 
101.4   according to section 124D.10, subdivision 16, shall be decreased 
101.5   by an amount equal to the product of $170 the formula allowance 
101.6   according to section 126C.10, subdivision 2, times .0485 times 
101.7   the pupil units calculated according to paragraph (a).  This 
101.8   amount shall be paid to the school district for transportation 
101.9   costs.  
101.10     Sec. 28.  Minnesota Statutes 1999 Supplement, section 
101.11  124D.10, subdivision 3, is amended to read: 
101.12     Subd. 3.  [SPONSOR.] A school board, intermediate school 
101.13  district school board, education districts district organized 
101.14  under sections 123A.15 to 123A.19, charitable organization under 
101.15  section 501(c) (3) of the Internal Revenue Code of 1986 that is 
101.16  a member of the Minnesota council on foundations and reports an 
101.17  end of year fund balance of at least $3,000,000, Minnesota 
101.18  private college, that grants two- or four-year degrees and is 
101.19  registered with the higher education services office under 
101.20  chapter 136A, community college, state university, technical 
101.21  college, or the University of Minnesota may sponsor one or more 
101.22  charter schools. 
101.23     <h>EFFECTIVE DATE:</h>  This section is effective the day 
101.24  following final enactment. 
101.25     Sec. 29.  Minnesota Statutes 1999 Supplement, section 
101.26  124D.10, subdivision 4, is amended to read: 
101.27     Subd. 4.  [FORMATION OF SCHOOL.] (a) A sponsor may 
101.28  authorize one or more licensed teachers under section 122A.18, 
101.29  subdivision 1, to operate a charter school subject to approval 
101.30  by the commissioner.  A board must vote on charter school 
101.31  application for sponsorship no later than 90 days after 
101.32  receiving the application.  After 90 days, the applicant may 
101.33  apply to the commissioner.  If a board elects not to sponsor a 
101.34  charter school, the applicant may appeal the board's decision to 
101.35  the commissioner.  The appeal must be made no later than 90 days 
101.36  after the school board elects not to sponsor a charter school.  
102.1   If the commissioner authorizes the school, the commissioner must 
102.2   sponsor the school according to this section.  The school must 
102.3   be organized and operated as a cooperative under chapter 308A or 
102.4   nonprofit corporation under chapter 317A.  
102.5      (b) Before the operators may form and operate a school, the 
102.6   sponsor must file an affidavit with the commissioner stating its 
102.7   intent to authorize a charter school.  The affidavit must state 
102.8   the terms and conditions under which the sponsor would authorize 
102.9   a charter school.  The commissioner must approve or disapprove 
102.10  the sponsor's proposed authorization within 60 days of receipt 
102.11  of the affidavit.  Failure to obtain commissioner approval 
102.12  precludes a sponsor from authorizing the charter school that was 
102.13  the subject of the affidavit.  
102.14     (c) The operators authorized to organize and operate a 
102.15  school must hold an election for members of the school's board 
102.16  of directors in a timely manner after the school is operating.  
102.17  Any staff members who are employed at the school, including 
102.18  teachers providing instruction under a contract with a 
102.19  cooperative, and all parents of children enrolled in the school 
102.20  may participate in the election.  Licensed teachers employed at 
102.21  the school, including teachers providing instruction under a 
102.22  contract with a cooperative, must be a majority of the members 
102.23  of the board of directors, unless the commissioner waives the 
102.24  requirement for the school or the licensed teachers employed at 
102.25  the school elect to constitute a majority that consists of both 
102.26  teachers employed at the school and parents of children enrolled 
102.27  in the school with a minimum of one teacher director and one 
102.28  parent director.  A provisional board may operate before the 
102.29  election of the school's board of directors.  Board of director 
102.30  meetings must comply with section 471.705. 
102.31     (d) The granting or renewal of a charter by a sponsoring 
102.32  entity must not be conditioned upon the bargaining unit status 
102.33  of the employees of the school. 
102.34     Sec. 30.  Minnesota Statutes 1999 Supplement, section 
102.35  124D.10, subdivision 8, is amended to read: 
102.36     Subd. 8.  [STATE AND LOCAL REQUIREMENTS.] (a) A charter 
103.1   school shall meet all applicable state and local health and 
103.2   safety requirements. 
103.3      (b) A school sponsored by a school board may be located in 
103.4   any district, unless the school board of the district of the 
103.5   proposed location disapproves by written resolution.  If such a 
103.6   board denies a request to locate within its boundaries a charter 
103.7   school sponsored by another school board, the sponsoring school 
103.8   board may appeal to the commissioner.  If the commissioner 
103.9   authorizes the school, the commissioner must sponsor the school. 
103.10     (c) A charter school must be nonsectarian in its programs, 
103.11  admission policies, employment practices, and all other 
103.12  operations.  A sponsor may not authorize a charter school or 
103.13  program that is affiliated with a nonpublic sectarian school or 
103.14  a religious institution. 
103.15     (d) Charter schools must not be used as a method of 
103.16  providing education or generating revenue for students who are 
103.17  being home-schooled. 
103.18     (e) The primary focus of a charter school must be to 
103.19  provide a comprehensive program of instruction for at least one 
103.20  grade or age group from five through 18 years of age.  
103.21  Instruction may be provided to people younger than five years 
103.22  and older than 18 years of age. 
103.23     (f) A charter school may not charge tuition. 
103.24     (g) A charter school is subject to and must comply with 
103.25  chapter 363 and section 121A.04. 
103.26     (h) A charter school is subject to and must comply with The 
103.27  Pupil Fair Dismissal Act, sections 121A.40 to 121A.56, and the 
103.28  Minnesota Public School Fee law, sections 123B.34 to 123B.39. 
103.29     (i) A charter school is subject to the same financial 
103.30  audits, audit procedures, and audit requirements as a district.  
103.31  The audit must be consistent in compliance with the requirements 
103.32  of sections 123B.75 to 123B.83, except to the extent deviations 
103.33  are necessary because of the program at the school.  The 
103.34  department of children, families, and learning, state auditor, 
103.35  or legislative auditor may conduct financial, program, or 
103.36  compliance audits. 
104.1      (j) A charter school is a district for the purposes of tort 
104.2   liability under chapter 466. 
104.3      <h>EFFECTIVE DATE:</h>  This section is effective the day 
104.4   following final enactment. 
104.5      Sec. 31.  Minnesota Statutes 1998, section 124D.10, 
104.6   subdivision 9, is amended to read: 
104.7      Subd. 9.  [ADMISSION REQUIREMENTS.] A charter school may 
104.8   limit admission to: 
104.9      (1) pupils within an age group or grade level; 
104.10     (2) people who are eligible to participate in the 
104.11  graduation incentives program under section 124D.68; or 
104.12     (3) residents of a specific geographic area where the 
104.13  percentage of the population of non-Caucasian people of that 
104.14  area is greater than the percentage of the non-Caucasian 
104.15  population in the congressional district in which the geographic 
104.16  area is located, and as long as the school reflects the racial 
104.17  and ethnic diversity of the specific area. 
104.18     A charter school shall enroll an eligible pupil who submits 
104.19  a timely application, unless the number of applications exceeds 
104.20  the capacity of a program, class, grade level, or building.  In 
104.21  this case, pupils must be accepted by lot.  If a charter school 
104.22  is the only school located in a town serving pupils within a 
104.23  particular grade level, then pupils that are residents of the 
104.24  town must be given preference for enrollment before accepting 
104.25  pupils by lot.  If a pupil lives within two miles of a charter 
104.26  school and the next closest public school is more than five 
104.27  miles away, the charter school must give those pupils preference 
104.28  for enrollment before accepting other pupils by lot. 
104.29     A charter school shall give preference for enrollment to a 
104.30  sibling of an enrolled pupil and to a foster child of that 
104.31  pupil's parents before accepting other pupils by lot. 
104.32     A charter school may not limit admission to pupils on the 
104.33  basis of intellectual ability, measures of achievement or 
104.34  aptitude, or athletic ability. 
104.35     Sec. 32.  Minnesota Statutes 1999 Supplement, section 
104.36  124D.10, subdivision 11, is amended to read: 
105.1      Subd. 11.  [EMPLOYMENT AND OTHER OPERATING MATTERS.] A 
105.2   charter school must employ or contract with necessary teachers, 
105.3   as defined by section 122A.15, subdivision 1, who hold valid 
105.4   licenses to perform the particular service for which they are 
105.5   employed in the school.  The charter school's state aid may be 
105.6   reduced under section 127A.42 if the school employs a teacher 
105.7   who is not appropriately licensed or approved by the board of 
105.8   teaching.  The school may employ necessary employees who are not 
105.9   required to hold teaching licenses to perform duties other than 
105.10  teaching and may contract for other services.  The school may 
105.11  discharge teachers and nonlicensed employees.  A person, without 
105.12  holding a valid administrator's license, may perform 
105.13  administrative, supervisory, or instructional leadership duties. 
105.14     The board of directors also shall decide matters related to 
105.15  the operation of the school, including budgeting, curriculum and 
105.16  operating procedures.  
105.17     Sec. 33.  Minnesota Statutes 1999 Supplement, section 
105.18  124D.10, subdivision 15, is amended to read: 
105.19     Subd. 15.  [REVIEW AND COMMENT.] The department must review 
105.20  and comment on the evaluation, by the chartering school district 
105.21  sponsor, of the performance of a charter school before the 
105.22  charter school's contract is renewed.  A sponsor shall monitor 
105.23  and evaluate the fiscal and student performance of the school, 
105.24  and may for this purpose annually assess the school up to $10 
105.25  per student up to a maximum of $3,500.  The information from for 
105.26  the review and comment shall be reported by the sponsor to the 
105.27  commissioner of children, families, and learning in a timely 
105.28  manner.  Periodically, the commissioner shall report trends or 
105.29  suggestions based on the evaluation of charter school contracts 
105.30  to the education committees of the state legislature.  
105.31     Sec. 34.  Minnesota Statutes 1998, section 124D.10, 
105.32  subdivision 20, is amended to read: 
105.33     Subd. 20.  [LEAVE TO TEACH IN A CHARTER SCHOOL.] If a 
105.34  teacher employed by a district makes a written request for an 
105.35  extended leave of absence to teach at a charter school whether 
105.36  as an employee of the school, as an employee of a cooperative or 
106.1   other teacher controlled professional association providing 
106.2   instructional services to the school, or in any other capacity, 
106.3   the district must grant the leave.  The district must grant a 
106.4   leave for any number of years requested by the teacher, and must 
106.5   extend the leave at the teacher's request.  The district may 
106.6   require that the request for a leave or extension of leave be 
106.7   made up to 90 days before the teacher would otherwise have to 
106.8   report for duty.  Except as otherwise provided in this 
106.9   subdivision and except for section 122A.46, subdivision 7, the 
106.10  leave is governed by section 122A.46, including, but not limited 
106.11  to, reinstatement, notice of intention to return, seniority, 
106.12  salary, and insurance. 
106.13     During a leave, the teacher may continue to aggregate 
106.14  benefits and credits in the teachers' retirement association 
106.15  account by paying both the employer and employee contributions 
106.16  based upon the annual salary of the teacher for the last full 
106.17  pay period before the leave began.  The retirement association 
106.18  may impose reasonable requirements to efficiently administer 
106.19  this subdivision. 
106.20     Sec. 35.  Minnesota Statutes 1999 Supplement, section 
106.21  124D.10, subdivision 23, is amended to read: 
106.22     Subd. 23.  [CAUSES FOR NONRENEWAL OR TERMINATION OF CHARTER 
106.23  SCHOOL CONTRACT.] (a) The duration of the contract with a 
106.24  sponsor must be for the term contained in the contract according 
106.25  to subdivision 6.  The sponsor may or may not renew a contract 
106.26  at the end of the term for any ground listed in paragraph (b).  
106.27  A sponsor may unilaterally terminate a contract during the term 
106.28  of the contract for any ground listed in paragraph (b).  At 
106.29  least 60 days before not renewing or terminating a contract, the 
106.30  sponsor shall notify the board of directors of the charter 
106.31  school of the proposed action in writing.  The notice shall 
106.32  state the grounds for the proposed action in reasonable detail 
106.33  and that the charter school's board of directors may request in 
106.34  writing an informal hearing before the sponsor within 14 days of 
106.35  receiving notice of nonrenewal or termination of the contract.  
106.36  Failure by the board of directors to make a written request for 
107.1   a hearing within the 14-day period shall be treated as 
107.2   acquiescence to the proposed action.  Upon receiving a timely 
107.3   written request for a hearing, the sponsor shall give reasonable 
107.4   notice to the charter school's board of directors of the hearing 
107.5   date.  The sponsor shall conduct an informal hearing before 
107.6   taking final action.  The sponsor shall take final action to 
107.7   renew or not renew a contract by the last day of classes in the 
107.8   school year.  If the sponsor is a local board, the school's 
107.9   board of directors may appeal the sponsor's decision to the 
107.10  commissioner. 
107.11     (b) A contract may be terminated or not renewed upon any of 
107.12  the following grounds: 
107.13     (1) failure to meet the requirements for pupil performance 
107.14  contained in the contract; 
107.15     (2) failure to meet generally accepted standards of fiscal 
107.16  management; 
107.17     (3) violations of law; or 
107.18     (4) other good cause shown. 
107.19     If a contract is terminated or not renewed, the school must 
107.20  be dissolved according to the applicable provisions of chapter 
107.21  308A or 317A, except when the commissioner approves the decision 
107.22  of a different eligible sponsor to authorize the charter school. 
107.23     (c) The commissioner, after providing reasonable notice to 
107.24  the governing body of a charter school and the existing sponsor, 
107.25  and after providing an opportunity for a public hearing, may 
107.26  terminate the existing sponsorial relationship if: 
107.27     (1) the charter school has a history of financial 
107.28  mismanagement; or 
107.29     (2) the charter school has a history of repeated violations 
107.30  of the law. 
107.31     <h>EFFECTIVE DATE:</h>  This section is effective the day 
107.32  following final enactment. 
107.33     Sec. 36.  Minnesota Statutes 1999 Supplement, section 
107.34  124D.11, subdivision 4, is amended to read: 
107.35     Subd. 4.  [BUILDING LEASE AID.] When a charter school finds 
107.36  it economically advantageous to rent or lease a building or land 
108.1   for any instructional purposes and it determines that the total 
108.2   operating capital revenue under section 126C.10, subdivision 13, 
108.3   is insufficient for this purpose, it may apply to the 
108.4   commissioner for building lease aid for this purpose.  Criteria 
108.5   for aid approval and revenue uses shall be as defined for the 
108.6   building lease levy in section 126C.40, subdivision 1, 
108.7   paragraphs (a) and (b).  A charter school is eligible for 
108.8   building lease aid.  Buildings leased by charter schools must 
108.9   meet all local and state building codes, state health and safety 
108.10  requirements, and federal Americans with Disabilities Act 
108.11  requirements.  The commissioner shall approve the amount of 
108.12  building lease aid.  The amount of building lease aid per pupil 
108.13  unit served for a charter school for any year shall not exceed 
108.14  equals the lesser of (a) 90 percent of the approved cost or (b) 
108.15  the product of the pupil units served for the current school 
108.16  year times $1,500 $750.  Existing charter schools must apply by 
108.17  January 15 of the fiscal year in which the lease applies to be 
108.18  considered for this program.  The amount of building lease aid 
108.19  shall be subject to proration based upon the actual 
108.20  appropriation.  
108.21     Sec. 37.  Minnesota Statutes 1999 Supplement, section 
108.22  124D.11, subdivision 6, is amended to read: 
108.23     Subd. 6.  [OTHER AID, GRANTS, REVENUE.] (a) A charter 
108.24  school is eligible to receive other aids, grants, and revenue 
108.25  according to chapters 120A to 129C, as though it were a district.
108.26     (b) Notwithstanding paragraph (a), a charter school may not 
108.27  receive aid, a grant, or revenue if a levy is required to obtain 
108.28  the money, except as otherwise provided in this section.  
108.29     (c) Federal aid received by the state must be paid to the 
108.30  school, if it qualifies for the aid as though it were a school 
108.31  district. 
108.32     (d) A charter school may receive money from any source for 
108.33  capital facilities needs.  In the year-end report to the 
108.34  commissioner of children, families, and learning, the charter 
108.35  school shall report the total amount of funds received from 
108.36  grants and other outside sources. 
109.1      (e) Notwithstanding paragraph (a) or (b), a charter school 
109.2   is eligible may apply for a grant to receive the aid portion of 
109.3   integration revenue under section 124D.86, subdivision 3, for 
109.4   enrolled students who are residents of a district that is 
109.5   eligible for integration revenue if the enrollment of the pupil 
109.6   in the charter school contributes to desegregation or 
109.7   integration purposes.  The commissioner shall determine grant 
109.8   recipients and may adopt application guidelines.  The grants 
109.9   must be competitively determined and must demonstrate that the 
109.10  enrollment of pupils in the charter school contributes to 
109.11  desegregation or integration purposes as determined by the 
109.12  commissioner.  If the charter school has elected not to provide 
109.13  transportation under section 124D.10, subdivision 16, the aid 
109.14  shall be reduced by the amount per pupil unit specified for the 
109.15  district where the charter school is located under section 
109.16  123B.92, subdivision 8. 
109.17     <h>EFFECTIVE DATE:</h>  This section is effective the day 
109.18  following final enactment. 
109.19     Sec. 38.  Minnesota Statutes 1998, section 124D.128, 
109.20  subdivision 4, is amended to read: 
109.21     Subd. 4.  [TRANSPORTATION.] A district must report data to 
109.22  the department as required by the department to account for 
109.23  learning year summer transportation expenditures for this 
109.24  program must be included in nonregular transportation according 
109.25  to sections 124.225, subdivision 8; and 124.226, subdivision 4.  
109.26     Sec. 39.  [125B.22] [INTERNET ACCESS FOR STUDENTS.] 
109.27     (a) Recognizing the difference between school libraries, 
109.28  school computer labs, and school media centers, which serve 
109.29  unique educational purposes, and public libraries, which are 
109.30  designed for public inquiry, all computers at a school site with 
109.31  access to the Internet available for student use must be 
109.32  equipped, to the maximum extent possible, to restrict, including 
109.33  by use of available software filtering technology, all student 
109.34  access to material that is reasonably believed to be obscene or 
109.35  child pornography or material harmful to minors under federal or 
109.36  state law. 
110.1      (b) A school site is not required to purchase filtering 
110.2   technology if the school site would incur more than incidental 
110.3   expense in making the purchase. 
110.4      (c) "School site" means an education site as defined in 
110.5   section 123B.04, subdivision 1, or charter school under section 
110.6   124D.10. 
110.7      Sec. 40.  Minnesota Statutes 1999 Supplement, section 
110.8   126C.05, subdivision 3, is amended to read: 
110.9      Subd. 3.  [COMPENSATION REVENUE PUPIL UNITS.] Compensation 
110.10  revenue pupil units for fiscal year 1998 and thereafter must be 
110.11  computed according to this subdivision.  
110.12     (a) The compensation revenue concentration percentage for 
110.13  each building in a district equals the product of 100 times the 
110.14  ratio of:  
110.15     (1) the sum of the number of pupils enrolled in the 
110.16  building eligible to receive free lunch plus one-half of the 
110.17  pupils eligible to receive reduced priced lunch on October 1 of 
110.18  the previous fiscal year; to 
110.19     (2) the number of pupils enrolled in the building on 
110.20  October 1 of the previous fiscal year. 
110.21     (b) The compensation revenue pupil weighting factor for a 
110.22  building equals the lesser of one or the quotient obtained by 
110.23  dividing the building's compensation revenue concentration 
110.24  percentage by 80.0.  
110.25     (c) The compensation revenue pupil units for a building 
110.26  equals the product of:  
110.27     (1) the sum of the number of pupils enrolled in the 
110.28  building eligible to receive free lunch and one-half of the 
110.29  pupils eligible to receive reduced priced lunch on October 1 of 
110.30  the previous fiscal year; times 
110.31     (2) the compensation revenue pupil weighting factor for the 
110.32  building; times 
110.33     (3) .60. 
110.34     (d) Notwithstanding paragraphs (a) to (c), for charter 
110.35  schools and contracted alternative programs in the first year of 
110.36  operation, or for any year of operation when the number of 
111.1   pupils eligible for free or reduced lunch in the current year is 
111.2   more than 20 percent greater than in the previous year, 
111.3   compensation revenue pupil units shall be computed using data 
111.4   for the current fiscal year.  If the charter school or 
111.5   contracted alternative program begins operation after October 1, 
111.6   compensatory revenue pupil units shall be computed based on 
111.7   pupils enrolled on an alternate date determined by the 
111.8   commissioner, and the compensation revenue pupil units shall be 
111.9   prorated based on the ratio of the number of days of student 
111.10  instruction to 170 days. 
111.11     (e) The percentages in this subdivision must be based on 
111.12  the count of individual pupils and not on a building average or 
111.13  minimum. 
111.14     Sec. 41.  Minnesota Statutes 1999 Supplement, section 
111.15  127A.05, subdivision 6, is amended to read: 
111.16     Subd. 6.  [SURVEY OF DISTRICTS.] The commissioner of 
111.17  children, families, and learning shall survey the state's school 
111.18  districts and teacher preparation programs and report to the 
111.19  education committees of the legislature by January 15 of each 
111.20  odd-numbered year on the status of teacher early retirement 
111.21  patterns, the teacher shortage, and the substitute teacher 
111.22  shortage, including patterns and shortages in subject areas and 
111.23  regions of the state.  The report must also include how 
111.24  districts are making progress in hiring teachers and substitutes 
111.25  in the areas of shortage and a five-year projection of teacher 
111.26  demand for each district. 
111.27     Sec. 42.  [134.77] [INTERNET ACCESS FOR CHILDREN.] 
111.28     (a) Recognizing the difference between public libraries, 
111.29  which are designed for public inquiry, and school libraries, 
111.30  school computer labs, and school media centers, which serve 
111.31  unique educational purposes, all public library computers with 
111.32  access to the Internet available for use by children under the 
111.33  age of 17 must be equipped, to the maximum extent possible, to 
111.34  restrict, including by use of available software filtering 
111.35  technology, all access by children to material that is 
111.36  reasonably believed to be obscene or child pornography or 
112.1   material harmful to minors under federal or state law. 
112.2      (b) A public library is not required to purchase filtering 
112.3   technology if the public library would incur more than 
112.4   incidental expense in making the purchase. 
112.5      (c) This section does not apply to the libraries of 
112.6   post-secondary institutions. 
112.7      Sec. 43.  Minnesota Statutes 1999 Supplement, section 
112.8   148.235, is amended by adding a subdivision to read: 
112.9      Subd. 8.  [NONPRESCRIPTION DRUGS IN SCHOOLS.] Nothing in 
112.10  sections 148.171 to 148.285 prohibits a school nurse from 
112.11  providing nonprescription drugs or medications to a pupil in a 
112.12  school upon the request of a parent or guardian of the pupil as 
112.13  long as the nonprescription drugs or medications are 
112.14  administered in accordance with section 121A.22. 
112.15     Sec. 44.  Minnesota Statutes 1998, section 169.447, is 
112.16  amended by adding a subdivision to read: 
112.17     Subd. 2a.  [PASSENGER LAP AND SHOULDER BELTS.] (a) In 
112.18  addition to the requirements in section 169.4501, subdivision 1, 
112.19  a school bus may be equipped with an approved lap belt or an 
112.20  approved lap and shoulder belt installed for each 
112.21  passenger-seating position on the bus.  The design and 
112.22  installation of lap belts and lap and shoulder belts required 
112.23  under this paragraph must meet the standards of the commissioner 
112.24  established under paragraph (b). 
112.25     (b) The commissioner shall consider all concerns necessary 
112.26  to properly integrate lap belts or lap and shoulder belts into 
112.27  the current compartmentalization safety system and prescribe 
112.28  standards for the design and installation of lap and shoulder 
112.29  belts required under paragraph (a).  The standards are not 
112.30  subject to chapter 14 and are specifically not subject to 
112.31  section 14.386. 
112.32     (c) This subdivision does not apply to specially equipped 
112.33  school buses under section 169.4504. 
112.34     (d) A passenger on a school bus equipped with lap belts or 
112.35  lap and shoulder belts must use these lap belts or lap and 
112.36  shoulder belts unless the passenger, or if the passenger is a 
113.1   minor, the passenger's parent or guardian, has notified the 
113.2   school district in writing that the passenger does not intend to 
113.3   wear the lap belt or lap and shoulder belt. 
113.4      (e) In an action for personal injury or wrongful death 
113.5   against a school district, a school bus operator under contract 
113.6   with a school district, or any agent or employee of a school 
113.7   district or operator, or against a volunteer, no such person or 
113.8   entity shall be held liable solely because the injured party was 
113.9   not wearing a safety belt; provided, however, that nothing 
113.10  contained herein shall be construed to grant immunity from 
113.11  liability for failure to: 
113.12     (1) maintain in operating order any equipment required by 
113.13  statute, rule, or school district policy; or 
113.14     (2) comply with an applicable statute, rule, or school 
113.15  district policy. 
113.16     (f) In an action for personal injury or wrongful death, a 
113.17  school district, a school bus contract operator, any agent or 
113.18  employee of a school district or operator, or a volunteer is not 
113.19  liable for failing to assist any child with the adjustment, 
113.20  fastening, unfastening, or other use of the lap belt or lap and 
113.21  shoulder belt. 
113.22     <h>EFFECTIVE DATE:</h>  This section is effective the day 
113.23  following final enactment. 
113.24     Sec. 45.  Minnesota Statutes 1998, section 169.448, 
113.25  subdivision 3, is amended to read: 
113.26     Subd. 3.  [HEAD START VEHICLE.] Notwithstanding subdivision 
113.27  1, a vehicle used to transport passengers students under Public 
113.28  Law Number 99-425, the Head Start Act, may be equipped as a 
113.29  school bus or Head Start bus.  
113.30     <h>EFFECTIVE DATE:</h>  This section is effective the day 
113.31  following final enactment. 
113.32     Sec. 46.  Minnesota Statutes 1998, section 171.06, 
113.33  subdivision 2, is amended to read: 
113.34     Subd. 2.  [FEES.] (a) The fees for a license and Minnesota 
113.35  identification card are as follows: 
113.36  Classified Driver's License  D-$18.50 C-$22.50 B-$29.50 A-$37.50
114.1   Classified Under-21 D.L.     D-$18.50 C-$22.50 B-$29.50 A-$17.50
114.2   Instruction Permit                                        $ 9.50
114.3   Provisional License                                       $ 9.50
114.4   Duplicate License or
114.5    duplicate identification card                            $ 8.00
114.6   Minnesota identification card or Under-21 Minnesota
114.7   identification card, other than duplicate,
114.8   except as otherwise provided in section 171.07,
114.9   subdivisions 3 and 3a $12.50
114.10     (b) Notwithstanding paragraph (a), a person who holds a 
114.11  provisional license and has a driving record free of (1) 
114.12  convictions for a violation of section 169.121, 169.1218, 
114.13  169.122, or 169.123, (2) convictions for crash-related moving 
114.14  violations, and (3) convictions for moving violations that are 
114.15  not crash related, shall have a $3.50 credit toward the fee for 
114.16  any classified under-21 driver's license.  "Moving violation" 
114.17  has the meaning given it in section 171.04, subdivision 1. 
114.18     (c) In addition to the driver's license fee required under 
114.19  paragraph (a), the registrar shall collect an additional $4 
114.20  processing fee from each new applicant or person renewing a 
114.21  license with a school bus endorsement to cover the costs for 
114.22  processing an applicant's initial and biennial physical 
114.23  examination certificate.  The department shall not charge these 
114.24  applicants any other fee to receive or renew the endorsement. 
114.25     <h>EFFECTIVE DATE:</h>  This section is effective the day 
114.26  following final enactment. 
114.27     Sec. 47.  Minnesota Statutes 1998, section 171.321, is 
114.28  amended to read: 
114.29     171.321 [QUALIFICATIONS OF SCHOOL BUS DRIVER.] 
114.30     Subdivision 1.  [SCHOOL BUS ENDORSEMENT.] (a) No person 
114.31  shall drive a school bus when transporting school children to or 
114.32  from school or upon a school-related trip or activity without 
114.33  having a valid class A, class B, or class C, or class D driver's 
114.34  license with a school bus endorsement except that a person 
114.35  possessing a valid driver's license but not a school bus 
114.36  endorsement may drive a vehicle with a seating capacity of ten 
115.1   or less fewer persons used as a school bus but not outwardly 
115.2   equipped or identified as a school bus. 
115.3      (b) Notwithstanding section 171.08, a person who otherwise 
115.4   meets the qualifications for a school bus endorsement or 
115.5   temporary endorsement under subdivision 3, paragraph (b), may 
115.6   drive a school bus for up to 30 days without an endorsement so 
115.7   long as the employer of the person: 
115.8      (1) has in possession all documentation required for 
115.9   issuing the endorsement; and 
115.10     (2) has forwarded proof of possession of the documentation 
115.11  to the commissioner of public safety. 
115.12     Subd. 1a.  [RESPONSIBILITY FOR ENDORSEMENT STATUS.] It is 
115.13  the responsibility of the commissioner of public safety to issue 
115.14  a school bus endorsement to a qualified applicant.  When the 
115.15  endorsement has been issued, it is the responsibility of the 
115.16  individual to whom the endorsement is issued to ensure that the 
115.17  endorsement is in effect before the individual operates a school 
115.18  bus.  The employer of a school bus driver shall check the 
115.19  endorsement status when the school bus driver is hired and at 
115.20  least twice during each 12-month period thereafter. 
115.21     Subd. 2.  [RULES.] (a) The commissioner of public safety 
115.22  shall prescribe rules governing the physical qualifications of 
115.23  school bus drivers and tests required to obtain a school bus 
115.24  endorsement.  The rules must provide that an applicant for a 
115.25  school bus endorsement or renewal is exempt from the physical 
115.26  qualifications and medical examination required to operate a 
115.27  school bus upon providing evidence of being medically examined 
115.28  and certified within the preceding 24 months as physically 
115.29  qualified to operate a commercial motor vehicle, pursuant to 
115.30  Code of Federal Regulations, title 49, part 391, subpart E, or 
115.31  rules of the commissioner of transportation incorporating those 
115.32  federal regulations.  The commissioner shall accept physical 
115.33  examinations for school bus drivers conducted by medical 
115.34  examiners authorized as provided by the Code of Federal 
115.35  Regulations, title 49, chapter 3, part 391, subpart E. 
115.36     (b) The commissioner of public safety, in conjunction with 
116.1   the commissioner of economic security, shall adopt rules 
116.2   prescribing a training program for Head Start bus drivers.  The 
116.3   program must provide for initial classroom and behind-the-wheel 
116.4   training, and annual in-service training.  The program must 
116.5   provide training in defensive driving, human relations, 
116.6   emergency and accident procedures, vehicle maintenance, traffic 
116.7   laws, and use of safety equipment.  The program must provide 
116.8   that the training will be conducted by the contract operator for 
116.9   a Head Start agency, the Head Start grantee, a licensed driver 
116.10  training school, or by another person or entity approved by both 
116.11  commissioners. 
116.12     Subd. 3.  [RECORDS CHECK OF APPLICANT.] (a) Before issuing 
116.13  or renewing a school bus endorsement, the commissioner shall 
116.14  conduct a criminal and driver's license records check of the 
116.15  applicant.  The commissioner may also conduct the check at any 
116.16  time while a person is so licensed.  The check shall must 
116.17  consist of a criminal records check of the state criminal 
116.18  records repository and a check of the driver's license records 
116.19  system.  If the applicant has resided in Minnesota for less than 
116.20  five years, the check shall must also include a criminal records 
116.21  check of information from the state law enforcement agencies in 
116.22  the states where the person resided during the five years before 
116.23  moving to Minnesota, and of the national criminal records 
116.24  repository including the criminal justice data communications 
116.25  network.  The applicant's failure to cooperate with the 
116.26  commissioner in conducting the records check is reasonable cause 
116.27  to deny an application or cancel a school bus endorsement.  The 
116.28  commissioner may not release the results of the records check to 
116.29  any person except the applicant or the applicant's designee in 
116.30  writing. 
116.31     (b) The commissioner may issue to an otherwise qualified 
116.32  applicant a temporary school bus endorsement, effective for no 
116.33  more than 180 days, upon presentation of (1) an affidavit by the 
116.34  applicant that the applicant has not been convicted of a 
116.35  disqualifying offense and (2) a criminal history check from each 
116.36  state of residence for the previous five years.  The criminal 
117.1   history check may be conducted and prepared by any public or 
117.2   private source acceptable to the commissioner.  The commissioner 
117.3   may reissue the temporary endorsement if the National Criminal 
117.4   Records Repository check is timely submitted but not completed 
117.5   within the 180-day period. 
117.6      Subd. 4.  [TRAINING.] (a) No person shall drive a class A, 
117.7   B, C, or D school bus when transporting school children to or 
117.8   from school or upon a school-related trip or activity without 
117.9   having demonstrated sufficient skills and knowledge to transport 
117.10  students in a safe and legal manner. 
117.11     (b) A bus driver must have training or experience that 
117.12  allows the driver to meet at least the following competencies: 
117.13     (1) safely operate the type of school bus the driver will 
117.14  be driving; 
117.15     (2) understand student behavior, including issues relating 
117.16  to students with disabilities; 
117.17     (3) encourage orderly conduct of students on the bus and 
117.18  handle incidents of misconduct appropriately; 
117.19     (4) know and understand relevant laws, rules of the road, 
117.20  and local school bus safety policies; 
117.21     (5) handle emergency situations; and 
117.22     (6) safely load and unload students. 
117.23     (c) The commissioner of public safety, in conjunction with 
117.24  the commissioner of children, families, and learning, shall 
117.25  develop a comprehensive model school bus driver training program 
117.26  and model assessments for school bus driver training 
117.27  competencies, which are not subject to chapter 14.  A school 
117.28  district may use alternative assessments for bus driver training 
117.29  competencies with the approval of the commissioner of public 
117.30  safety.  The employer shall keep the assessment for the current 
117.31  period available for inspection by representatives of the 
117.32  commissioner. 
117.33     Subd. 5.  [ANNUAL EVALUATION.] A school district's pupil 
117.34  transportation safety director, the chief administrator of a 
117.35  nonpublic school, or a private contractor shall certify annually 
117.36  to the commissioner of public safety school board or governing 
118.1   board of a nonpublic school that, at minimum, each school bus 
118.2   driver meets the school bus driver training competencies under 
118.3   subdivision 4 and shall report the number of hours of in-service 
118.4   training completed by each driver.  A school district, nonpublic 
118.5   school, or private contractor also shall provide in-service 
118.6   training annually to each school bus driver.  A district, 
118.7   nonpublic school, or private contractor also shall check the 
118.8   license of each person who transports students for the district 
118.9   with the National Drivers Register or the department of public 
118.10  safety annually.  The school board must approve and forward the 
118.11  competency certification and in-service report to the 
118.12  commissioner of public safety. 
118.13     <h>EFFECTIVE DATE:</h>  This section is effective the day 
118.14  following final enactment. 
118.15     Sec. 48.  Minnesota Statutes 1998, section 354.05, 
118.16  subdivision 2, is amended to read: 
118.17     Subd. 2.  [TEACHER.] (a) "Teacher" means: 
118.18     (1) a person who renders service as a teacher, supervisor, 
118.19  principal, superintendent, librarian, nurse, counselor, social 
118.20  worker, therapist, or psychologist in the public schools of the 
118.21  state located outside of the corporate limits of the cities of 
118.22  the first class as those cities were so classified on January 1, 
118.23  1979, or in the state colleges and universities system, or in 
118.24  any charitable, penal, or correctional institutions of a 
118.25  governmental subdivision, or who is engaged in educational 
118.26  administration in connection with the state public school 
118.27  system, including the state colleges and university system, but 
118.28  excluding the University of Minnesota, whether the position be a 
118.29  public office or an employment, not including members or 
118.30  officers of any general governing or managing board or body; 
118.31     (2) an employee of the teachers retirement association 
118.32  unless the employee is covered by the Minnesota state retirement 
118.33  system by virtue of prior employment by the association; 
118.34     (3) a person who renders teaching service on a part-time 
118.35  basis and who also renders other services for a single employing 
118.36  unit.  In such cases, the executive director shall determine 
119.1   whether all or none of the combined service is covered by the 
119.2   association, however a person whose teaching service comprises 
119.3   at least 50 percent of the combined employment salary is a 
119.4   member of the association for all services with the single 
119.5   employing unit; or 
119.6      (4) a person who renders services as a teacher, supervisor, 
119.7   principal, superintendent, librarian, nurse, counselor, social 
119.8   worker, therapist, or psychologist in a public school, 
119.9   including, but not limited to, charter schools organized under 
119.10  section 124D.10, when such services are provided by such person 
119.11  as an employee of a teacher controlled professional association 
119.12  formed under chapters 308A, 319B, 322B, 323, 323A, or any other 
119.13  appropriate law. 
119.14     (b) The term does not mean: 
119.15     (1) an employee described in section 352D.02, subdivision 
119.16  1a, who is hired after the effective date of Laws 1986, chapter 
119.17  458; 
119.18     (2) a person who works for a school or institution as an 
119.19  independent contractor as defined by the Internal Revenue 
119.20  Service; 
119.21     (3) a person employed in subsidized on-the-job training, 
119.22  work experience or public service employment as an enrollee 
119.23  under the federal Comprehensive Employment and Training Act from 
119.24  and after March 30, 1978, unless the person has, as of the later 
119.25  of March 30, 1978, or the date of employment, sufficient service 
119.26  credit in the retirement association to meet the minimum vesting 
119.27  requirements for a deferred retirement annuity, or the employer 
119.28  agrees in writing on forms prescribed by the executive director 
119.29  to make the required employer contributions, including any 
119.30  employer additional contributions, on account of that person 
119.31  from revenue sources other than funds provided under the federal 
119.32  Comprehensive Training and Employment Act, or the person agrees 
119.33  in writing on forms prescribed by the executive director to make 
119.34  the required employer contribution in addition to the required 
119.35  employee contribution; 
119.36     (4) a person holding a part-time adult supplementary 
120.1   technical college license who renders part-time teaching service 
120.2   in a technical college if (i) the service is incidental to the 
120.3   regular nonteaching occupation of the person; and (ii) the 
120.4   applicable technical college stipulates annually in advance that 
120.5   the part-time teaching service will not exceed 300 hours in a 
120.6   fiscal year and retains the stipulation in its records; and 
120.7   (iii) the part-time teaching service actually does not exceed 
120.8   300 hours in a fiscal year; or 
120.9      (5) a person exempt from licensure pursuant to section 
120.10  122A.30. 
120.11     Sec. 49.  Minnesota Statutes 1998, section 354A.011, 
120.12  subdivision 27, is amended to read: 
120.13     Subd. 27.  [TEACHER.] "Teacher" means any person who 
120.14  renders service in a public school district, including, but not 
120.15  limited to, a charter school organized under section 124D.10, 
120.16  located in the corporate limits of one of the cities of the 
120.17  first class which was so classified on January 1, 1979, as any 
120.18  of the following: 
120.19     (a) a full-time employee in a position for which a valid 
120.20  license from the state department of children, families, and 
120.21  learning is required; 
120.22     (b) an employee of the teachers retirement fund association 
120.23  located in the city of the first class unless the employee has 
120.24  exercised the option pursuant to Laws 1955, chapter 10, section 
120.25  1, to retain membership in the Minneapolis employees retirement 
120.26  fund established pursuant to chapter 422A; 
120.27     (c) a part-time employee in a position for which a valid 
120.28  license from the state department of children, families, and 
120.29  learning is required; or 
120.30     (d) a part-time employee in a position for which a valid 
120.31  license from the state department of children, families, and 
120.32  learning is required who also renders other nonteaching services 
120.33  for the school district unless the board of trustees of the 
120.34  teachers retirement fund association determines that the 
120.35  combined employment is on the whole so substantially dissimilar 
120.36  to teaching service that the service shall not be covered by the 
121.1   association; or 
121.2      (e) an employee of a teacher controlled professional 
121.3   association formed under chapter 308A, 319B, 322B, 323, 323A, or 
121.4   any other appropriate law. 
121.5      The term shall not mean any person who renders service in 
121.6   the school district as any of the following: 
121.7      (1) an independent contractor or the employee of an 
121.8   independent contractor; 
121.9      (2) an employee who is a full-time teacher covered by 
121.10  another teachers retirement fund association established 
121.11  pursuant to this chapter or chapter 354; 
121.12     (3) an employee exempt from licensure pursuant to section 
121.13  122A.30; 
121.14     (4) an employee who is a teacher in a technical college 
121.15  located in a city of the first class unless the person elects 
121.16  coverage by the applicable first class city teacher retirement 
121.17  fund association under section 354B.21, subdivision 2; or 
121.18     (5) an employee who is a part-time teacher in a technical 
121.19  college in a city of the first class and who has elected 
121.20  coverage by the applicable first class city teacher retirement 
121.21  fund association under section 354B.21, subdivision 2, but (i) 
121.22  the teaching service is incidental to the regular nonteaching 
121.23  occupation of the person; (ii) the applicable technical college 
121.24  stipulates annually in advance that the part-time teaching 
121.25  service will not exceed 300 hours in a fiscal year; and (iii) 
121.26  the part-time teaching actually does not exceed 300 hours in the 
121.27  fiscal year to which the certification applies. 
121.28     Sec. 50.  Minnesota Statutes 1998, section 471.15, is 
121.29  amended to read: 
121.30     471.15 [RECREATIONAL FACILITIES BY MUNICIPALITY, VETERANS; 
121.31  BONDS.] 
121.32     (a) Any home rule charter or statutory city or any town, 
121.33  county, school district, or any board thereof, or any 
121.34  incorporated post of the American Legion or any other 
121.35  incorporated veterans' organization, may expend not to exceed 
121.36  $800 in any one year, for the purchase of awards and trophies 
122.1   and may operate a program of public recreation and playgrounds; 
122.2   acquire, equip, and maintain land, buildings, or other 
122.3   recreational facilities, including an outdoor or indoor swimming 
122.4   pool; and expend funds for the operation of such program 
122.5   pursuant to the provisions of sections 471.15 to 471.19.  The 
122.6   city, town, county or school district may issue bonds pursuant 
122.7   to chapter 475 for the purpose of carrying out the powers 
122.8   granted by this section.  The city, town, county or school 
122.9   district may operate the program and facilities directly or 
122.10  establish one or more recreation boards to operate all or 
122.11  various parts of them. 
122.12     (b) A town may expend funds for the purpose of supporting 
122.13  student academic and extra curricula activities sponsored by the 
122.14  local school district. 
122.15     Sec. 51.  Laws 1999, chapter 241, article 5, section 18, 
122.16  subdivision 5, is amended to read: 
122.17     Subd. 5.  [CHARTER SCHOOL BUILDING LEASE AID.] For building 
122.18  lease aid according to Minnesota Statutes, section 124D.11, 
122.19  subdivision 4: 
122.20       $2,992,000 $5,981,000   ..... 2000
122.21       $3,616,000 $9,975,000   ..... 2001
122.22     The 2000 appropriation includes $194,000 for 1999 and 
122.23  $2,798,000 $5,787,000 for 2000. 
122.24     The 2001 appropriation includes $311,000 $643,000 for 2000 
122.25  and $3,305,000 $9,332,000 for 2001.  
122.26     <h>EFFECTIVE DATE:</h>  This section is effective the day 
122.27  following final enactment. 
122.28     Sec. 52.  Laws 1999, chapter 241, article 5, section 18, 
122.29  subdivision 6, is amended to read: 
122.30     Subd. 6.  [CHARTER SCHOOL START-UP GRANTS.] For charter 
122.31  school start-up cost aid under Minnesota Statutes, section 
122.32  124D.11: 
122.33       $1,789,000 $1,955,000     .....     2000 
122.34       $1,876,000 $2,926,000    .....     2001 
122.35     The 2000 appropriation includes $100,000 for 1999 and 
122.36  $1,689,000 $1,855,000 for 2000. 
123.1      The 2001 appropriation includes $188,000 $706,000 for 1999 
123.2   2000 and $1,688,000 $2,720,000 for 2001. 
123.3      Any balance in the first year does not cancel but is 
123.4   available in the second year.  This appropriation may also be 
123.5   used for grants to convert existing schools into charter schools.
123.6      <h>EFFECTIVE DATE:</h>  This section is effective the day 
123.7   following final enactment. 
123.8      Sec. 53.  [MINNESOTA NEW TEACHER PROJECT.] 
123.9      Subdivision 1.  [ESTABLISHMENT; PARTICIPATION.] The 
123.10  Minnesota new teacher project is established in the department 
123.11  of children, families, and learning in order to retain new 
123.12  teachers in the profession and to provide models for supporting 
123.13  the professional development of first-year and second-year 
123.14  teachers.  In order for a school district to participate in the 
123.15  new teacher project, a school board and an exclusive 
123.16  representative of the teachers in the district, or for a charter 
123.17  school the majority of the teachers, must agree to participate 
123.18  in the new teacher project and to the district plan under 
123.19  subdivision 2. 
123.20     Subd. 2.  [DISTRICT PLAN.] A district that participates in 
123.21  the new teacher project must submit a plan for the project to 
123.22  the commissioner for approval.  The new teacher project plan 
123.23  must be consistent with the knowledge and skills required in the 
123.24  teacher licensure rules adopted by the board of teaching and the 
123.25  state graduation requirements and include curricula of best 
123.26  practice activities such as one-on-one mentoring, intensive 
123.27  summer orientation, first-year and second-year training 
123.28  workshops, peer review, mutual observation between new and 
123.29  experienced teachers, classroom management techniques, cultural 
123.30  diversity, reading strategies, lighter workloads, and first-year 
123.31  residency.  The plan must include the participation of a teacher 
123.32  preparation program approved by the board of teaching. 
123.33     Districts receiving a grant under this section must report 
123.34  to the board of teaching regarding its chosen new teacher 
123.35  project plan. 
123.36     Subd. 3.  [STATE MATCH.] A district that has an approved 
124.1   new teacher project plan is eligible to receive $3,000 of state 
124.2   money for each new teacher participating in the project.  The 
124.3   district must contribute $2,000 of district money for each new 
124.4   teacher participating in the project. 
124.5      Sec. 54.  [POSTRETIREMENT AND ACTIVE EMPLOYEE HEALTH CARE 
124.6   TASK FORCE.] 
124.7      (a) The commissioner of employee relations shall convene a 
124.8   task force on postretirement and active employee health care.  
124.9   The task force shall identify strategies for providing 
124.10  postretirement and active employee health care coverage for 
124.11  public employees and make recommendations regarding the most 
124.12  appropriate and efficient manner for providing postretirement 
124.13  and active employee health care. 
124.14     (b) One-half of the task force membership shall be composed 
124.15  of employees and the other half of the membership must be 
124.16  composed of employers.  The task force shall include, but not be 
124.17  limited to, the following: 
124.18     (1) a representative of the department of employee 
124.19  relations; 
124.20     (2) a representative of the Minnesota state retirement 
124.21  system; 
124.22     (3) a representative of the teachers retirement 
124.23  association; 
124.24     (4) a representative of the public employees retirement 
124.25  association; 
124.26     (5) a representative of the first class city teacher 
124.27  retirement fund associations; 
124.28     (6) a representative of the first class city police and 
124.29  fire department relief associations; 
124.30     (7) a representative of the Minneapolis employees 
124.31  retirement fund; 
124.32     (8) a representative of the legislative coordinating 
124.33  commission subcommittee on employee relations; 
124.34     (9) one representative each from the Minnesota school 
124.35  boards association, Minnesota service cooperatives, the 
124.36  association of Minnesota counties, the Minnesota association of 
125.1   townships, and the league of Minnesota cities; 
125.2      (10) exclusive representatives of affected public 
125.3   employees; and 
125.4      (11) representatives of major public employers. 
125.5      (c) The task force shall report its findings and 
125.6   recommendations to the legislature by November 15, 2000.  The 
125.7   report shall address: 
125.8      (1) alternative methods of providing and paying for 
125.9   postretirement and active employee health care; 
125.10     (2) the estimated cost of providing postretirement and 
125.11  active employee health care under various alternatives, 
125.12  including statewide, regional, or market alternatives; 
125.13     (3) the most efficient administrative structure for 
125.14  providing for postretirement and active employee health care; 
125.15  and 
125.16     (4) issues of adverse selection, cost containment, consumer 
125.17  choice, and consider options for dealing with other employee 
125.18  concerns. 
125.19     (d) The task force shall conduct the study and assemble 
125.20  data in a manner that will provide for the ability to conduct 
125.21  analysis for subsets of the groups being studied by employer and 
125.22  employee types. 
125.23     Sec. 55.  [TASK FORCE ON SCHOOL GOVERNANCE AND MANAGEMENT.] 
125.24     Subdivision 1.  [ESTABLISHMENT.] The task force on school 
125.25  governance and management is established to examine the existing 
125.26  constitutional and statutory provisions that dictate the 
125.27  governance responsibilities and authority of the respective 
125.28  components of the state's public education system. 
125.29     Subd. 2.  [MEMBERSHIP; STAFFING.] (a) The task force on 
125.30  school governance and management must be composed of nine 
125.31  members, with three members appointed by the governor, three 
125.32  members appointed by the speaker of the house of 
125.33  representatives, and three members appointed by the subcommittee 
125.34  on committees of the senate committee on rules and 
125.35  administration.  Members should represent the business 
125.36  community, education stakeholders, parents, or other interested 
126.1   community members. 
126.2      (b) The executive branch through the office of the governor 
126.3   shall make staff available to assist the task force. 
126.4      Subd. 3.  [REPORT.] (a) The task force on school governance 
126.5   and management must report to the governor and the appropriate 
126.6   committees of the house and senate no later than December 1, 
126.7   2000. 
126.8      (b) The task force must do the following: 
126.9      (1) identify any governance or organizational barriers that 
126.10  inhibit or preclude schools or school districts from: 
126.11     (i) ensuring all students meet state and local graduation 
126.12  standards; 
126.13     (ii) ensuring instructional programs are available to meet 
126.14  individual student's academic needs; 
126.15     (iii) making efficient changes in instructional and 
126.16  noninstructional program and service delivery; and 
126.17     (iv) delegating instructional and general operating 
126.18  decision-making to the school level; and 
126.19     (2) make recommendations regarding the statutory changes 
126.20  needed to enable school districts to: 
126.21     (i) continuously identify changes to meet the needs of 
126.22  student cohorts; 
126.23     (ii) provide a variety of instructional opportunities to 
126.24  meet individual student needs; 
126.25     (iii) measure individual student academic achievement; and 
126.26     (iv) modify or expand instructional programs if student 
126.27  achievement does not meet expectations. 
126.28     Subd. 4.  [EXPIRATION.] The task force on school governance 
126.29  and management expires on December 31, 2000. 
126.30     <h>EFFECTIVE DATE:</h>  This section is effective the day 
126.31  following final enactment. 
126.32     Sec. 56.  [2000-2001 SCHOOL YEAR START DATE.] 
126.33     Subdivision 1.  [LABOR DAY START.] Notwithstanding 
126.34  Minnesota Statutes, section 120A.40, for the 2000-2001 school 
126.35  year only, a district must not begin the elementary or secondary 
126.36  school year prior to Labor Day. 
127.1      Subd. 2.  [MABEL-CANTON.] Notwithstanding subdivision 1 and 
127.2   Minnesota Statutes, section 120A.40, for the 2000-2001 school 
127.3   year only, independent school district No. 238, Mabel-Canton, 
127.4   may start the school year up to five weekdays before Labor Day 
127.5   for the purpose of scheduling an additional academic term during 
127.6   the regular school year. 
127.7      Sec. 57.  [TEACHER PREPARATION PROGRAM CREATED.] 
127.8      Subdivision 1.  [TEACHER PREPARATION LEADING TO LICENSURE.] 
127.9   The board of trustees of the Minnesota state colleges and 
127.10  universities shall offer a program of teacher preparation 
127.11  leading to licensure, involving Metropolitan state university, 
127.12  Inver Hills community college, and Minneapolis community and 
127.13  technical college.  The institutions involved shall enter into 
127.14  an agreement whereby Inver Hills community college and 
127.15  Minneapolis community and technical college shall provide the 
127.16  first two years of the program, and Metropolitan state 
127.17  university shall provide the final two years of the program.  In 
127.18  fall semester 2000, Minneapolis community and technical college 
127.19  and Inver Hills community college shall offer a preeducation 
127.20  program.  After development of the program in fiscal year 2001, 
127.21  Metropolitan state university shall begin its licensure program 
127.22  in fall semester 2001.  The program shall focus on preparing 
127.23  teachers to meet the specific needs of urban and inner-ring 
127.24  suburban schools and shall emphasize significant direct 
127.25  classroom teaching experience and mentoring throughout each 
127.26  student's preparation.  The program may also focus on the 
127.27  professional development of pretenure teachers.  Metropolitan 
127.28  state university, Inver Hills community college, and Minneapolis 
127.29  community and technical college are encouraged to enter into 
127.30  partnerships with urban and inner-ring suburban schools to 
127.31  provide for significant involvement of elementary and secondary 
127.32  teachers in the mentoring of students enrolled in the program.  
127.33  The program shall establish a goal that at least 50 percent of 
127.34  the participants be students of color. 
127.35     Subd. 2.  [REPORT REQUIRED.] By February 15, 2002, the 
127.36  board of trustees shall provide a progress report to the chairs 
128.1   of the higher education finance divisions of the legislature 
128.2   regarding the development of the teacher preparation program.  
128.3   The report shall include feedback from enrolled students 
128.4   concerning how the program meets their needs, as well as from 
128.5   cooperating elementary and secondary schools on how the students 
128.6   are performing on site.  The report shall also include the 
128.7   number of participants in the program who are students of color. 
128.8      Sec. 58.  [CHARTER SCHOOL BUILDING LEASE AID ADJUSTMENT.] 
128.9      Notwithstanding Minnesota Statutes, section 124D.11, 
128.10  subdivision 4, for fiscal year 2000 and fiscal year 2001 only, 
128.11  the amount of building lease aid for a charter school with a 
128.12  lease signed before March 15, 2000, equals the lesser of: 
128.13     (1) 90 percent of the approved cost in the current year for 
128.14  leases signed before March 15, 2000; or 
128.15     (2) the product of the pupil units served for the current 
128.16  school year times $1,500. 
128.17     <h>EFFECTIVE DATE:</h>  This section is effective the day 
128.18  following final enactment. 
128.19     Sec. 59.  [CHARTER SCHOOL BUILDING LEASE AID REVIEW.] 
128.20     The department of children, families, and learning shall 
128.21  work with charter school operators and other interested parties 
128.22  to create recommendations for appropriate criteria for charter 
128.23  school building lease aid and report its findings to the 
128.24  education committees of the legislature by January 15, 2001. 
128.25     Sec. 60.  [APPROPRIATIONS.] 
128.26     Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
128.27  LEARNING.] The sum indicated in this section is appropriated 
128.28  from the general fund to the department of children, families, 
128.29  and learning for the fiscal year indicated. 
128.30     Subd. 2.  [POSTRETIREMENT AND ACTIVE EMPLOYEE HEALTH CARE.] 
128.31  For a report on postretirement and active employee health care: 
128.32       $7,000     .....     2001 
128.33     Subd. 3.  [BUSINESS CHARTER SCHOOL START-UP GRANT.] For a 
128.34  new charter school with a business immersion program that 
128.35  occupies a publicly owned building in St. Paul: 
128.36       $200,000     .....     2001 
129.1      Subd. 4.  [PROFESSIONAL TEACHING STANDARDS.] For grant 
129.2   awards for national board for professional teaching standards 
129.3   certification according to Laws 1997, First Special Session 
129.4   chapter 4, article 5, section 22: 
129.5        $150,000     .....     2001
129.6      Sec. 61.  [REPEALER.] 
129.7      Minnesota Statutes 1998, section 120A.41, is repealed 
129.8   effective for the 2000-2001 and later school years. 
129.9                              ARTICLE 6
129.10                    NUTRITION AND OTHER PROGRAMS
129.11     Section 1.  [123B.575] [PESTICIDE APPLICATION AT SCHOOLS.] 
129.12     Subdivision 1.  [PARENTS' RIGHT-TO-KNOW ACT.] Subdivisions 
129.13  2 to 9 may be cited as the Janet B. Johnson Parents' 
129.14  Right-to-Know Act of 2000. 
129.15     Subd. 2.  [PESTICIDE APPLICATION NOTIFICATION.] A school 
129.16  that plans to apply a pesticide which is a toxicity category I, 
129.17  II, or III pesticide product, as classified by the United States 
129.18  Environmental Protection Agency, or a restricted use pesticide, 
129.19  as designated under the Federal Insecticide, Fungicide, and 
129.20  Rodenticide Act, must provide a notice to parents and employees 
129.21  that it applies such pesticides.  The notice required under 
129.22  subdivision 3 must: 
129.23     (1) provide that an estimated schedule of the pesticide 
129.24  applications is available for review or copying at the school 
129.25  offices where such pesticides are applied; 
129.26     (2) state that long-term health effects on children from 
129.27  the application of such pesticides or the class of chemicals to 
129.28  which they belong may not be fully understood; 
129.29     (3) inform parents that a parent may request the school 
129.30  notify him or her in the manner specified in subdivision 6 
129.31  before any application of a pesticide listed in this subdivision.
129.32     Subd. 3.  [NOTICE; TIMING; DISTRIBUTION.] The notice must 
129.33  be provided during the first two weeks of each school year 
129.34  during which pesticides listed in subdivision 2 are planned to 
129.35  be applied.  The notice may be included with other notices 
129.36  provided by the school, but must be separately identified and 
130.1   clearly visible to the reader.  
130.2      Subd. 4.  [SCHOOL HANDBOOK OR NEWSLETTER INFORMATION.] In 
130.3   addition to the notice provided during the first two weeks of 
130.4   the school year, a school that is required to provide notice 
130.5   under this section shall include in any school handbook or 
130.6   newsletter a section informing parents that an estimated 
130.7   schedule of applications of pesticides listed in subdivision 2 
130.8   is available for review or copying at the school offices, and 
130.9   that a parent may receive prior notice of each application if 
130.10  specifically requested.  
130.11     Subd. 5.  [NOTICE AVAILABILITY.] A school that uses a 
130.12  pesticide listed in subdivision 2 must keep a copy of all 
130.13  notifications required under subdivisions 2 and 3 in a manner 
130.14  available to the public.  
130.15     Subd. 6.  [NOTIFICATION FOR INDIVIDUAL PARENTS.] A parent 
130.16  of a student at a school may request that the school principal 
130.17  or other person having general control and supervision of the 
130.18  school notify the parent prior to the application of any 
130.19  pesticides listed in subdivision 2 at the school.  The school 
130.20  principal or other person having general control and supervision 
130.21  of the school must provide reasonable notice to a parent who has 
130.22  requested such notification prior to applying such pesticides.  
130.23  The notice may be waived for emergency applications required 
130.24  only by appropriate state or local health officials.  The notice 
130.25  must include the pesticide to be applied, the time of the 
130.26  planned application, and the location at the school of the 
130.27  planned application. 
130.28     Subd. 7.  [MODEL NOTICE.] The department of health, in 
130.29  consultation with the department of children, families, and 
130.30  learning and the office of environmental assistance, shall 
130.31  develop and make available to schools by August 1, 2000, a model 
130.32  notice in a form that can be used by a school if it chooses to 
130.33  do so.  The model notice must include the information required 
130.34  by this section.  The department of health must provide an 
130.35  opportunity for environmental groups and interested parents to 
130.36  work with the department in developing the model notice.  
131.1      Subd. 8.  [PLAN.] A school is not required to adopt an 
131.2   integrated pest management plan.  A school board may only notify 
131.3   students, parents, or employees that it has adopted an 
131.4   integrated pest management plan if the plan is a managed pest 
131.5   control program designed to minimize the risk to human health 
131.6   and the environment and to reduce the use of chemical 
131.7   pesticides, and which ranks the district's response to pests in 
131.8   the following manner: 
131.9      (1) identifying pests which need to be controlled; 
131.10     (2) establishing tolerable limits of each identified pest; 
131.11     (3) designing future buildings and landscapes to prevent 
131.12  identified pests; 
131.13     (4) excluding identified pests from sites and buildings 
131.14  using maintenance practices; 
131.15     (5) adapting cleaning activities and best management 
131.16  practices to minimize the number of pests; 
131.17     (6) using mechanical methods of controlling identified 
131.18  pests; and 
131.19     (7) controlling identified pests using the least toxic 
131.20  pesticides with the least exposure to persons as is practicable. 
131.21     Subd. 9.  [PESTICIDE DEFINED; CLEANING PRODUCTS 
131.22  EXCLUDED.] For purposes of this section, the term "pesticide" 
131.23  has the meaning given it in section 18B.01, subdivision 18, 
131.24  except that it does not include any disinfectants, sanitizers, 
131.25  deodorizers, or antimicrobial agents used for general cleaning 
131.26  purposes. 
131.27     Subd. 10.  [PEST DEFINED.] For purposes of this section, 
131.28  the term "pest" has the meaning given it in section 18B.01, 
131.29  subdivision 17. 
131.30     Subd. 11.  [SCHOOL DEFINED.] For the purposes of this 
131.31  section, "school" means a school as defined in section 120A.22, 
131.32  subdivision 4, excluding home schools. 
131.33     Subd. 12.  [IMMUNITY FROM LIABILITY.] No cause of action 
131.34  may be brought against a school district, a school, or the 
131.35  districts or school's employees or agents for any action taken 
131.36  by them in performing their duties under this section. 
132.1      <h>EFFECTIVE DATE:</h>  This section is effective August 1, 2000. 
132.2      Sec. 2.  Minnesota Statutes 1998, section 123B.80, is 
132.3   amended by adding a subdivision to read: 
132.4      Subd. 4.  [FUND TRANSFER.] A district may permanently 
132.5   transfer funds without a levy reduction under section 475.61 if 
132.6   at least 30 days prior to the transfer it adopts a board 
132.7   resolution authorizing the action and informs each property 
132.8   taxpayer in the district by first-class mail of the proposed 
132.9   amount to be transferred.  The notice must indicate that state 
132.10  law requires the district to otherwise reduce school levies and 
132.11  that levies will be higher by the amount.  This notice 
132.12  requirement also applies to any transfer made under this section 
132.13  or by any special provision enacted into law.  If the transfer 
132.14  under this section or special law would not otherwise have 
132.15  resulted in a levy reduction, the notice must include the amount 
132.16  and must indicate that property tax levies will not be used for 
132.17  the original purpose for which they were levied. 
132.18     Sec. 3.  Minnesota Statutes 1998, section 124D.111, 
132.19  subdivision 1, is amended to read: 
132.20     Subdivision 1.  [SCHOOL LUNCH AID COMPUTATION.] Each school 
132.21  year, the state must pay districts participating in the national 
132.22  school lunch program the amount of 6.5 eight cents for each full 
132.23  paid, reduced, and free student lunch served to students in the 
132.24  district.  
132.25     <h>EFFECTIVE DATE:</h>  This section is effective the day 
132.26  following final enactment. 
132.27     Sec. 4.  Laws 1999, chapter 241, article 6, section 14, 
132.28  subdivision 2, is amended to read: 
132.29     Subd. 2.  [ABATEMENT AID.] For abatement aid according to 
132.30  Minnesota Statutes, section 127A.49:  
132.31        $9,110,000 $9,577,000   .....     2000 
132.32        $8,947,000 $8,279,000   .....     2001 
132.33     The 2000 appropriation includes $1,352,000 for 1999 and 
132.34  $7,758,000 $8,225,000 for 2000.  
132.35     The 2001 appropriation includes $861,000 $914,000 for 2000 
132.36  and $8,086,000 $7,365,000 for 2001.  
133.1      <h>EFFECTIVE DATE:</h>  This section is effective the day 
133.2   following final enactment. 
133.3      Sec. 5.  Laws 1999, chapter 241, article 6, section 14, 
133.4   subdivision 3, is amended to read: 
133.5      Subd. 3.  [NONPUBLIC PUPIL AID.] For nonpublic pupil 
133.6   education aid according to Minnesota Statutes, sections 123B.40 
133.7   to 123B.48 and 123B.87: 
133.8        $10,996,000 $11,552,000   .....      2000 
133.9        $11,878,000 $12,757,000   .....      2001 
133.10     The 2000 appropriation includes $970,000 for 1999 and 
133.11  $10,026,000 $10,582,000 for 2000. 
133.12     The 2001 appropriation includes $1,114,000 $1,175,000 for 
133.13  2000 and $10,764,000 $11,582,000 for 2001.  
133.14     The department shall recompute the maximum allotments 
133.15  established on March 1, 1999, for fiscal year 2000 under 
133.16  Minnesota Statutes, sections 123B.42, subdivision 3, and 
133.17  123B.44, subdivision 6, to reflect the amount appropriated in 
133.18  this subdivision for fiscal year 2000. 
133.19     <h>EFFECTIVE DATE:</h>  This section is effective the day 
133.20  following final enactment. 
133.21     Sec. 6.  Laws 1999, chapter 241, article 6, section 14, 
133.22  subdivision 4, is amended to read: 
133.23     Subd. 4.  [CONSOLIDATION TRANSITION AID.] For districts 
133.24  consolidating under Minnesota Statutes, section 123A.485: 
133.25       $451,000 $563,000      .....     2000
133.26       $375,000 $455,000      .....     2001
133.27     The 2000 appropriation includes $113,000 for 1999 and 
133.28  $338,000 $450,000 for 2000. 
133.29     The 2001 appropriation includes $37,000 $50,000 for 2000 
133.30  and $338,000 $405,000 for 2001. 
133.31     Any balance in the first year does not cancel but is 
133.32  available in the second year. 
133.33     <h>EFFECTIVE DATE:</h>  This section is effective the day 
133.34  following final enactment. 
133.35     Sec. 7.  Laws 1999, chapter 241, article 6, section 14, 
133.36  subdivision 5, is amended to read: 
134.1      Subd. 5.  [NONPUBLIC PUPIL TRANSPORTATION.] For nonpublic 
134.2   pupil transportation aid under Minnesota Statutes, section 
134.3   123B.92, subdivision 9: 
134.4        $18,586,000 $20,358,000   .....     2000 
134.5        $20,922,000 $21,333,000   .....     2001 
134.6      The 2000 appropriation includes $1,848,000 for 2000 and 
134.7   $16,738,000 $18,510,000 for 2001. 
134.8      The 2001 appropriation includes $1,860,000 $2,057,000 for 
134.9   2000 and $19,062,000 $19,276,000 for 2001. 
134.10     <h>EFFECTIVE DATE:</h>  This section is effective the day 
134.11  following final enactment. 
134.12     Sec. 8.  Laws 1999, chapter 241, article 7, section 2, 
134.13  subdivision 2, is amended to read: 
134.14     Subd. 2.  [SCHOOL LUNCH AID.] (a) For school lunch aid 
134.15  according to Minnesota Statutes, section 124D.111, and Code of 
134.16  Federal Regulations, title 7, section 210.17, and for school 
134.17  milk aid according to Minnesota Statutes, section 124D.118:  
134.18       $8,200,000     .....     2000 
134.19       $8,200,000     .....     2001 
134.20     (b) Any unexpended balance remaining from the 
134.21  appropriations in this subdivision shall be prorated among 
134.22  participating schools based on the number of free, reduced, and 
134.23  fully paid federally reimbursable student lunches served during 
134.24  that school year.  
134.25     (c) If the appropriation amount attributable to either year 
134.26  is insufficient, the rate of payment for each fully paid student 
134.27  lunch shall be reduced and the aid for that year shall be 
134.28  prorated among participating schools so as not to exceed the 
134.29  total authorized appropriation for that year.  
134.30     (d) Not more than $800,000 of the amount appropriated each 
134.31  year may be used for school milk aid. 
134.32     <h>EFFECTIVE DATE:</h>  This section is effective the day 
134.33  following final enactment. 
134.34     Sec. 9.  Laws 1999, chapter 241, article 7, section 2, 
134.35  subdivision 5, is amended to read: 
134.36     Subd. 5.  [SCHOOL BREAKFAST.] To operate the school 
135.1   breakfast program according to Minnesota Statutes, sections 
135.2   124D.115 and 124D.117: 
135.3        $456,000 $713,000     .....     2000
135.4        $456,000 $713,000     .....     2001
135.5      If the appropriation amount attributable to either year is 
135.6   insufficient, the rate of payment for each fully paid student 
135.7   breakfast shall be reduced and the aid for that year shall be 
135.8   prorated among participating schools so as not to exceed the 
135.9   total authorized appropriation for that year.  Any unexpended 
135.10  balance remaining shall be used to subsidize the payments made 
135.11  for school lunch aid per Minnesota Statutes, section 124D.111.  
135.12     Up to one percent of the program funding can be used by the 
135.13  department of children, families, and learning for technical and 
135.14  administrative assistance. 
135.15     <h>EFFECTIVE DATE:</h>  This section is effective the day 
135.16  following final enactment. 
135.17     Sec. 10.  [DEPARTMENT OF CHILDREN, FAMILIES, AND LEARNING 
135.18  WEB SITE.] 
135.19     The department of children, families, and learning must 
135.20  maintain a list of pesticides that are classified as toxicity 
135.21  category I, II, or III pesticide products or as restricted use 
135.22  pesticides under the Federal Insecticide, Fungicide, and 
135.23  Rodenticide Act.  The department must maintain the list on its 
135.24  Web site or as a prominent link on its Web site to another state 
135.25  or federal agency's Web site. 
135.26     <h>EFFECTIVE DATE:</h>  This section is effective August 1, 2000. 
135.27     Sec. 11.  [FUND TRANSFERS.] 
135.28     Subdivision 1.  [BROWERVILLE.] Notwithstanding Minnesota 
135.29  Statutes, sections 123B.79; 123B.80; and 475.61, subdivision 4, 
135.30  on June 30, 2000, independent school district No. 787, 
135.31  Browerville, may permanently transfer up to $110,000 from its 
135.32  debt redemption fund to its operating capital fund without 
135.33  making a levy reduction. 
135.34     Subd. 2.  [CHOKIO-ALBERTA.] (a) Notwithstanding Minnesota 
135.35  Statutes, section 123B.58, 123B.79, or 123B.80, on June 30, 
135.36  2000, upon approval of the commissioner of children, families, 
136.1   and learning, independent school district No. 771, 
136.2   Chokio-Alberta, may permanently transfer up to $121,000 from its 
136.3   reserved account for disabled accessibility to its undesignated 
136.4   general fund balance. 
136.5      (b) Prior to making the fund transfer, independent school 
136.6   district No. 771, Chokio-Alberta, must demonstrate to the 
136.7   commissioner's satisfaction that the district's school buildings 
136.8   are accessible to students or employees with disabilities. 
136.9      Subd. 3.  [FERGUS FALLS.] Notwithstanding Minnesota 
136.10  Statutes, section 123B.79, 123B.80, or 475.61, subdivision 4, 
136.11  independent school district No. 544, Fergus Falls, on June 30, 
136.12  2000, may permanently transfer up to $200,000 from the debt 
136.13  redemption fund to the general fund without making a levy 
136.14  reduction. 
136.15     Subd. 4.  [GRAND MEADOW.] Notwithstanding Minnesota 
136.16  Statutes, sections 123B.79; 123B.80; and 475.61, subdivision 4, 
136.17  independent school district No. 495, Grand Meadow, may 
136.18  permanently transfer up to $300,000 from its disabled access 
136.19  account in the general fund to its capital fund.  This transfer 
136.20  is contingent upon the school district's successful construction 
136.21  of a new kindergarten through grade 12 school. 
136.22     Subd. 5.  [LAKEVILLE.] Notwithstanding Minnesota Statutes, 
136.23  section 123B.79 or 123B.80, independent school district No. 194, 
136.24  Lakeville, may transfer up to $1,000,000 from its reserved 
136.25  account for operating capital to the unreserved, undesignated 
136.26  general fund.  When independent school district No. 194, 
136.27  Lakeville, attains a positive unreserved, undesignated general 
136.28  fund balance greater than ten percent of the most recent fiscal 
136.29  year's expenditures, the district shall transfer the amount 
136.30  exceeding ten percent to its reserve account for operating 
136.31  capital until an amount is transferred back that is equal to the 
136.32  amount transferred under this authority.  This subdivision 
136.33  expires on December 31, 2014.  
136.34     Subd. 6.  [MAHTOMEDI.] Notwithstanding Minnesota Statutes, 
136.35  sections 123B.80, 123B.912, and 475.61, subdivision 4, on June 
136.36  30, 2000, independent school district No. 832, Mahtomedi, may 
137.1   permanently transfer up to $525,000 from its debt redemption 
137.2   fund to its capital account in its general fund without making a 
137.3   levy reduction to purchase land for a school facility. 
137.4      Subd. 7.  [NORMAN COUNTY EAST.] Notwithstanding Minnesota 
137.5   Statutes, sections 123B.79, 123B.80, and 475.61, subdivision 4, 
137.6   on June 2000, independent school district No. 2215, Norman 
137.7   County East, may permanently transfer up to $419,000 from its 
137.8   building construction fund to the reserved account for operating 
137.9   capital in the general fund without making a levy reduction. 
137.10     Subd. 8.  [ST. FRANCIS.] Notwithstanding Minnesota 
137.11  Statutes, section 123B.53, on June 30, 2000, independent school 
137.12  district No. 15, St. Francis, may permanently transfer $543,000 
137.13  from its debt service fund to the general fund to help the 
137.14  district out of statutory operating debt without making a levy 
137.15  reduction.  This transfer is contingent upon the district 
137.16  maintaining 105 percent of principal and interest against the 
137.17  debt service fund liabilities. 
137.18     Subd. 9.  [STAPLES-MOTLEY.] Notwithstanding Minnesota 
137.19  Statutes, sections 123B.79; 123B.80; and 475.61, subdivision 4, 
137.20  on May 31, 2000, independent school district No. 2170, 
137.21  Staples-Motley, may permanently transfer up to $71,000 from the 
137.22  debt service account of the former independent school district 
137.23  No. 483, Motley, to independent school district No. 2170, 
137.24  Staples-Motley's, operating capital fund without making a levy 
137.25  reduction. 
137.26     Subd. 10.  [WIN-E-MAC.] At the completion of the 
137.27  consolidation of independent school district No. 604, Mentor, 
137.28  and independent school district No. 2609, Win-E-Mac, up to 
137.29  $125,000 may be transferred from the former Mentor school 
137.30  district health and safety reserve fund to the Win-E-Mac health 
137.31  and safety reserve fund. 
137.32     Subd. 11.  [PARKERS PRAIRIE.] Notwithstanding Minnesota 
137.33  Statutes, section 123B.79, 123B.80, or 475.61, subdivision 4, 
137.34  independent school district No. 547, Parkers Prairie, on June 
137.35  30, 2000, may permanently transfer up to $105,000 from the debt 
137.36  redemption fund to the reserved account for operating capital in 
138.1   the general fund without making a levy reduction. 
138.2      Subd. 12.  [LAKEVIEW SCHOOLS.] Notwithstanding any law to 
138.3   the contrary, independent school district No. 2167, Lakeview 
138.4   schools, is authorized to retain a cooperative facilities grant 
138.5   awarded in fiscal year 1995, and may permanently transfer that 
138.6   amount to its reserve account for operating capital. 
138.7      <h>EFFECTIVE DATE:</h>  This section is effective the day 
138.8   following final enactment. 
138.9      Sec. 12.  [INTERMEDIATE DISTRICTS.] 
138.10     Notwithstanding any termination date in the agreements 
138.11  between the intermediate school districts and the Minnesota 
138.12  state colleges and universities board for the use of space in 
138.13  the technical colleges or any law to the contrary, the 
138.14  agreements shall not expire or terminate. 
138.15     Sec. 13.  [REVIEW OF FEDERAL RESTRICTIONS ON SCHOOL TRUST 
138.16  FUND LANDS.] 
138.17     The attorney general and the commissioner of natural 
138.18  resources shall review the extent to which federal law and 
138.19  policy diminish the return to the school trust fund by impairing 
138.20  the use of school trust fund land.  The attorney general and the 
138.21  commissioner shall pursue efforts to make the school trust fund 
138.22  whole, including the use of litigation if necessary. 
138.23     Sec. 14.  [APPROPRIATIONS.] 
138.24     Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
138.25  LEARNING.] The sums indicated in this section are appropriated 
138.26  from the general fund to the department of children, families, 
138.27  and learning for the fiscal years designated. 
138.28     Subd. 2.  [ASSISTANCE FOR IMMIGRANT FAMILIES.] For grants 
138.29  to organizations that assist immigrants, ages 12 to 24, in 
138.30  becoming literate and acquiring vocational skills: 
138.31         $500,000     .....     2001
138.32     Subd. 3.  [MATCHING GRANTS FOR EDUCATION PROGRAMS SERVING 
138.33  HOMELESS CHILDREN.] For matching grants for education programs 
138.34  serving homeless children under Laws 1997, First Special Session 
138.35  chapter 4, article 2, section 48: 
138.36       $1,000,000     .....     2001
139.1      Subd. 4.  [COOPERATIVE SECONDARY FACILITY; PLANNING AND 
139.2   EXPENSES.] For a grant and administrative expenses to facilitate 
139.3   planning for a cooperative secondary facility under a joint 
139.4   powers agreement for school district Nos. 411, Balaton, 402, 
139.5   Ivanhoe, 404, Lake Benton, 418, Russell, 584, Ruthton, and 409, 
139.6   Tyler: 
139.7          $100,000     .....     2001
139.8      Subd. 5.  [ARTS VIA THE INTERNET.] For an arts via the 
139.9   Internet collaborative project between the Walker art center and 
139.10  the Minneapolis institute of arts: 
139.11       $1,000,000     .....     2001
139.12     Subd. 6.  [BEST PRACTICES SEMINARS.] For best practices 
139.13  graduation rule seminars to be conducted by the commissioner 
139.14  after consultation with Education Minnesota: 
139.15       $4,000,000     .....     2001
139.16  Of this amount, $500,000 is for the Minnesota children's museum 
139.17  reading program and $1,000,000 is for the Minnesota new teacher 
139.18  project. 
139.19     Subd. 7.  [MAGNET SCHOOL FACILITIES GRANTS.] (a) For magnet 
139.20  school facilities grants: 
139.21       $1,500,000     .....     2001
139.22     (b) Of this amount, $1,200,000 is for the discovery magnet 
139.23  school in independent school district No. 347, Willmar, for 
139.24  capital and operating costs of the magnet school serving 
139.25  children from birth through grade 4. 
139.26     (c) Of this amount, $300,000 is to independent school 
139.27  district No. 696, Ely, to determine the feasibility of 
139.28  establishing a joint secondary and higher education 
139.29  environmental studies magnet school. 
139.30     Subd. 8.  [GEOGRAPHIC INFORMATION SYSTEMS.] To the director 
139.31  of the office of strategic and long-range planning to enhance 
139.32  the office's use of geographic information systems for 
139.33  educational demographics and other purposes: 
139.34       $100,000     .....     2001   
139.35     Subd. 9.  [SOBRIETY HIGH GRANT; UNITED SOUTH CENTRAL.] For 
139.36  a grant to independent school district No. 2134, United South 
140.1   Central, for its sobriety high program: 
140.2        $50,000     .....     2001
140.3      Sec. 15.  [REPEALER.] 
140.4      Minnesota Statutes 1999 Supplement, section 124D.1155, 
140.5   subdivision 5, is repealed. 
140.6      <h>EFFECTIVE DATE:</h>  This section is effective the day 
140.7   following final enactment. 
140.8                              ARTICLE 7 
140.9                              LIBRARIES 
140.10     Section 1.  Minnesota Statutes 1999 Supplement, section 
140.11  126C.10, subdivision 14, is amended to read: 
140.12     Subd. 14.  [USES OF TOTAL OPERATING CAPITAL REVENUE.] Total 
140.13  operating capital revenue may be used only for the following 
140.14  purposes: 
140.15     (1) to acquire land for school purposes; 
140.16     (2) to acquire or construct buildings for school purposes; 
140.17     (3) to rent or lease buildings, including the costs of 
140.18  building repair or improvement that are part of a lease 
140.19  agreement; 
140.20     (4) to improve and repair school sites and buildings, and 
140.21  equip or reequip school buildings with permanent attached 
140.22  fixtures, including library media centers; 
140.23     (5) for a surplus school building that is used 
140.24  substantially for a public nonschool purpose; 
140.25     (6) to eliminate barriers or increase access to school 
140.26  buildings by individuals with a disability; 
140.27     (7) to bring school buildings into compliance with the 
140.28  Uniform Fire Code adopted according to chapter 299F; 
140.29     (8) to remove asbestos from school buildings, encapsulate 
140.30  asbestos, or make asbestos-related repairs; 
140.31     (9) to clean up and dispose of polychlorinated biphenyls 
140.32  found in school buildings; 
140.33     (10) to clean up, remove, dispose of, and make repairs 
140.34  related to storing heating fuel or transportation fuels such as 
140.35  alcohol, gasoline, fuel oil, and special fuel, as defined in 
140.36  section 296A.01; 
141.1      (11) for energy audits for school buildings and to modify 
141.2   buildings if the audit indicates the cost of the modification 
141.3   can be recovered within ten years; 
141.4      (12) to improve buildings that are leased according to 
141.5   section 123B.51, subdivision 4; 
141.6      (13) to pay special assessments levied against school 
141.7   property but not to pay assessments for service charges; 
141.8      (14) to pay principal and interest on state loans for 
141.9   energy conservation according to section 216C.37 or loans made 
141.10  under the Northeast Minnesota Economic Protection Trust Fund Act 
141.11  according to sections 298.292 to 298.298; 
141.12     (15) to purchase or lease interactive telecommunications 
141.13  equipment; 
141.14     (16) by board resolution, to transfer money into the debt 
141.15  redemption fund to:  (i) pay the amounts needed to meet, when 
141.16  due, principal and interest payments on certain obligations 
141.17  issued according to chapter 475; or (ii) pay principal and 
141.18  interest on debt service loans or capital loans according to 
141.19  section 126C.70; 
141.20     (17) to pay operating capital-related assessments of any 
141.21  entity formed under a cooperative agreement between two or more 
141.22  districts; 
141.23     (18) to purchase or lease computers and related materials, 
141.24  copying machines, telecommunications equipment, and other 
141.25  noninstructional equipment; 
141.26     (19) to purchase or lease assistive technology or equipment 
141.27  for instructional programs; 
141.28     (20) to purchase textbooks; 
141.29     (21) to purchase new and replacement library books media 
141.30  resources or technology; 
141.31     (22) to purchase vehicles; 
141.32     (23) to purchase or lease telecommunications equipment, 
141.33  computers, and related equipment for integrated information 
141.34  management systems for: 
141.35     (i) managing and reporting learner outcome information for 
141.36  all students under a results-oriented graduation rule; 
142.1      (ii) managing student assessment, services, and achievement 
142.2   information required for students with individual education 
142.3   plans; and 
142.4      (iii) other classroom information management needs; and 
142.5      (24) to pay personnel costs directly related to the 
142.6   acquisition, operation, and maintenance of telecommunications 
142.7   systems, computers, related equipment, and network and 
142.8   applications software. 
142.9      <h>EFFECTIVE DATE:</h>  This section is effective for the 
142.10  2000-2001 and later school years. 
142.11     Sec. 2.  Laws 1997, First Special Session chapter 4, 
142.12  article 8, section 4, as amended by Laws 1998, chapter 398, 
142.13  article 7, section 1, and Laws 1999, chapter 241, article 8, 
142.14  section 1, is amended to read: 
142.15     Sec. 4.  [LIBRARY PROJECT.] 
142.16     Subdivision 1.  [ESTABLISHMENT.] Notwithstanding law to the 
142.17  contrary and subject to approvals in subdivision 2, a public 
142.18  library may operate as a library project jointly with the school 
142.19  library at Nashwauk-Keewatin high school, located in the city of 
142.20  Nashwauk.  The public library is established to serve persons 
142.21  within the boundaries of independent school district No. 319, 
142.22  except the city of Keewatin. 
142.23     Subd. 2.  [APPROVALS.] Operation of the public library is 
142.24  contingent upon the governing bodies of cities, towns, and 
142.25  unorganized townships within the geographical boundaries of 
142.26  independent school district No. 319, except for the city of 
142.27  Keewatin, entering into a joint powers agreement under Minnesota 
142.28  Statutes 1998, section 471.59, to accomplish the purpose of this 
142.29  section.  The joint powers agreement must provide for continuing 
142.30  the library project if one party or more parties to the 
142.31  agreement withdraws from or fails to enter into the agreement.  
142.32  For the purposes of this subdivision, the Itasca county board is 
142.33  designated as the governing body for the unorganized townships. 
142.34     Subd. 3.  [BOARD; APPOINTMENTS.] The joint powers agreement 
142.35  in subdivision 2 shall provide for a library board of up to 
142.36  seven members as follows:  two members appointed by the school 
143.1   board of independent school district No. 319, one member 
143.2   appointed by each town board located within independent school 
143.3   district No. 319 boundaries that is a signatory to the joint 
143.4   powers agreement, one member appointed by the council of the 
143.5   city of Nashwauk, and one member appointed by the Itasca county 
143.6   board to represent the unorganized towns within the school 
143.7   district territory. 
143.8      Subd. 4.  [BOARD TERMS; COMPENSATION.] The library board 
143.9   members shall serve for the term of the library project or to a 
143.10  maximum of three consecutive three-year terms.  An appointing 
143.11  authority may remove for misconduct or neglect any member it has 
143.12  appointed to the board and may replace that member by 
143.13  appointment.  Board members shall receive no compensation for 
143.14  their services but may be reimbursed for actual and necessary 
143.15  travel expenses incurred in the discharge of library board 
143.16  duties and activities. 
143.17     Subd. 5.  [FUNDING.] For taxes payable in 1998, 1999, 2000, 
143.18  2001, 2002, and 2003 only, and provided that the joint powers 
143.19  agreement under subdivision 2 has been executed by September 1 
143.20  of the previous calendar year, the library board may levy a tax 
143.21  in an amount up to $25,000 annually on property located within 
143.22  the boundaries of independent school district No. 319, except 
143.23  the city of Keewatin.  The Itasca county auditor shall collect 
143.24  the tax and distribute it to the library board.  The levy shall 
143.25  be assessed against the individual members of the joint powers 
143.26  agreement.  The money may be used for library staff and for the 
143.27  purchase of library materials, including computer software.  The 
143.28  levy must also fund the amount necessary to receive bookmobile 
143.29  services from the Arrowhead regional library system.  For taxes 
143.30  payable in 1998, 1999, 2000, 2001, 2002, and 2003 only, the 
143.31  county may not levy under Minnesota Statutes, section 134.07, 
143.32  for the areas described in this section. 
143.33     Subd. 6.  [BUILDING.] The school district shall provide the 
143.34  physical space and costs associated with operating the library 
143.35  including, but not limited to, heat, light, telephone service, 
143.36  and maintenance. 
144.1      Subd. 7.  [ORGANIZATION.] Immediately after appointment, 
144.2   the library board shall organize by electing one of its number 
144.3   as president and one as secretary, and it may appoint other 
144.4   officers it finds necessary. 
144.5      Subd. 8.  [DUTIES.] The library board shall adopt bylaws 
144.6   and regulations for the library and for the conduct of its 
144.7   business as may be expedient and conformable to law.  It shall 
144.8   have exclusive control of the expenditure of all money collected 
144.9   for it.  The library board shall appoint a qualified library 
144.10  director and other staff, establish the compensation of 
144.11  employees, and remove any of them for cause.  The library board 
144.12  may contract with the school board, the regional library board, 
144.13  or the city in which the library is located to provide 
144.14  personnel, fiscal, or administrative services.  The contract 
144.15  shall state the personnel, fiscal, and administrative services 
144.16  and payments to be provided by each party. 
144.17     Subd. 9.  [CRITERIA.] The library shall meet all 
144.18  requirements in statutes and rules applicable to public 
144.19  libraries and school media centers.  A media supervisor licensed 
144.20  by the board of teaching may be the director of the library.  
144.21  Public parking, restrooms, drinking water, and other necessities 
144.22  shall be easily accessible to library patrons. 
144.23     <h>EFFECTIVE DATE:</h>  This section is effective the day 
144.24  following final enactment. 
144.25     Sec. 3.  Laws 1999, chapter 241, article 8, section 4, 
144.26  subdivision 4, is amended to read: 
144.27     Subd. 4.  [REGIONAL LIBRARY TELECOMMUNICATIONS AID.] For 
144.28  grants to regional public library systems under Minnesota 
144.29  Statutes, section 125B.20, subdivision 3: 
144.30       $1,200,000     .....     2000 
144.31       $1,200,000 $3,700,000    .....     2001 
144.32     Any balance in the first year does not cancel but is 
144.33  available in the second year. 
144.34     Notwithstanding Minnesota Statutes, section 125B.20, 
144.35  subdivision 3, this appropriation may be used for video lines in 
144.36  addition to the uses under Minnesota Statutes, section 125B.20, 
145.1   subdivision 3. 
145.2      The budget base for this program for fiscal years 2002 and 
145.3   2003 is $1,200,000 for each year. 
145.4      Sec. 4.  Laws 1999, chapter 241, article 8, section 4, 
145.5   subdivision 5, is amended to read: 
145.6      Subd. 5.  [LIBRARY FOR THE BLIND.] For compact shelving, 
145.7   technology, and staffing for the Minnesota library for the blind 
145.8   and physically handicapped: 
145.9        $212,000     .....     2000 
145.10     This appropriation is available until June 30, 2001. 
145.11                             ARTICLE 8 
145.12           DEPARTMENT OF CHILDREN, FAMILIES, AND LEARNING 
145.13     Section 1.  Laws 1999, chapter 241, article 10, section 6, 
145.14  is amended to read: 
145.15     Sec. 6.  [APPROPRIATIONS; LOLA AND RUDY PERPICH MINNESOTA 
145.16  CENTER FOR ARTS EDUCATION.] 
145.17     The sums indicated in this section are appropriated from 
145.18  the general fund to the center for arts education for the fiscal 
145.19  years designated: 
145.20       $7,239,000     .....     2000
145.21       $7,400,000     .....     2001
145.22     Of each year's appropriation, $154,000 is to fund artist 
145.23  and arts organization participation in the education residency 
145.24  and education technology projects, $75,000 is for school support 
145.25  for the residency project, $121,000 is for further development 
145.26  of the partners:  arts and school for students (PASS) program, 
145.27  including pilots, and $220,000 $110,000 is to fund the center 
145.28  for arts education base for asset preservation and facility 
145.29  repair.  The guidelines for the education residency project and 
145.30  the pass program shall be developed and defined by the center 
145.31  for arts education in cooperation with the Minnesota arts 
145.32  board.  The Minnesota arts board shall participate in the review 
145.33  and allocation process.  The center for arts education and the 
145.34  Minnesota arts board shall cooperate to fund these projects. 
145.35     Any balance in the first year does not cancel but is 
145.36  available in the second year. 
146.1      <h>EFFECTIVE DATE:</h>  This section is effective the day 
146.2   following final enactment. 
146.3      Sec. 2.  [PURCHASING COMPUTER HARDWARE AND SOFTWARE.] 
146.4      The department of children, families, and learning and 
146.5   local school districts shall not be precluded from purchasing 
146.6   computer hardware and software from specific vendors.  The 
146.7   department of children, families, and learning's technology 
146.8   standards shall include provisions for interoperability of 
146.9   computer systems.  
146.10                             ARTICLE 9 
146.11          TECHNICAL, CONFORMING, AND CLARIFYING AMENDMENTS
146.12     Section 1.  Minnesota Statutes 1998, section 120A.22, 
146.13  subdivision 3, is amended to read: 
146.14     Subd. 3.  [PARENT DEFINED; RESIDENCY DETERMINED.] (a) In 
146.15  this section and sections 120A.24, and 120A.26, and 120A.41, 
146.16  "parent" means a parent, guardian, or other person having legal 
146.17  custody of a child.  
146.18     (b) In sections 125A.03 to 125A.24 and 125A.65, "parent" 
146.19  means a parent, guardian, or other person having legal custody 
146.20  of a child under age 18.  For an unmarried pupil age 18 or over, 
146.21  "parent" means the pupil unless a guardian or conservator has 
146.22  been appointed, in which case it means the guardian or 
146.23  conservator. 
146.24     (c) For purposes of sections 125A.03 to 125A.24 and 
146.25  125A.65, the school district of residence for an unmarried pupil 
146.26  age 18 or over who is a parent under paragraph (b) and who is 
146.27  placed in a center for care and treatment, shall be the school 
146.28  district in which the pupil's biological or adoptive parent or 
146.29  designated guardian resides. 
146.30     (d) For a married pupil age 18 or over, the school district 
146.31  of residence is the school district in which the married pupil 
146.32  resides. 
146.33     Sec. 2.  Minnesota Statutes 1998, section 122A.31, 
146.34  subdivision 4, is amended to read: 
146.35     Subd. 4.  [REIMBURSEMENT.] For purposes of revenue 
146.36  under sections 125A.77 and section 125A.78, the department of 
147.1   children, families, and learning must only reimburse school 
147.2   districts for the services of those interpreters/transliterators 
147.3   who satisfy the standards of competency under this section.  
147.4      Sec. 3.  Minnesota Statutes 1998, section 123B.02, is 
147.5   amended by adding a subdivision to read: 
147.6      Subd. 5a.  [TRESPASSES ON SCHOOL PROPERTY.] Trespasses on 
147.7   school property shall be governed according to section 609.605, 
147.8   subdivision 4. 
147.9      Sec. 4.  Minnesota Statutes 1998, section 123B.85, 
147.10  subdivision 1, is amended to read: 
147.11     Subdivision 1.  [APPLICATION.] The following words and 
147.12  terms in sections 121A.585, 121A.59, 123B.84 to 123B.87, and 
147.13  123B.89 to 123B.90, and 123B.91, shall have the following 
147.14  meanings ascribed to them. 
147.15     Sec. 5.  Minnesota Statutes 1999 Supplement, section 
147.16  124D.128, subdivision 2, is amended to read: 
147.17     Subd. 2.  [COMMISSIONER DESIGNATION.] An area learning 
147.18  center designated by the state must be a site.  To be 
147.19  designated, a district or center must demonstrate to the 
147.20  commissioner that it will: 
147.21     (1) provide a program of instruction that permits pupils to 
147.22  receive instruction throughout the entire year; and 
147.23     (2) maintain a record system that, for purposes of section 
147.24  124.17 126C.05, permits identification of membership 
147.25  attributable to pupils participating in the program.  The record 
147.26  system and identification must ensure that the program will not 
147.27  have the effect of increasing the total number of pupil units 
147.28  attributable to an individual pupil as a result of a learning 
147.29  year program. 
147.30     Sec. 6.  Minnesota Statutes 1998, section 124D.454, 
147.31  subdivision 2, is amended to read: 
147.32     Subd. 2.  [DEFINITIONS.] For the purposes of this 
147.33  section and section 125A.77, the definitions in this subdivision 
147.34  apply. 
147.35     (a) "Base year" for fiscal year 1996 means fiscal year 1995.
147.36  Base year for later fiscal years means the second fiscal year 
148.1   preceding the fiscal year for which aid will be paid. 
148.2      (b) "Basic revenue" has the meaning given it in section 
148.3   126C.10, subdivision 2.  For the purposes of computing basic 
148.4   revenue pursuant to this section, each child with a disability 
148.5   shall be counted as prescribed in section 126C.05, subdivision 1.
148.6      (c) "Average daily membership" has the meaning given it in 
148.7   section 126C.05. 
148.8      (d) "Program growth factor" means 1.00 for fiscal year 1998 
148.9   and later. 
148.10     (e) "Aid percentage factor" means 60 percent for fiscal 
148.11  year 1996, 70 percent for fiscal year 1997, 80 percent for 
148.12  fiscal year 1998, 90 percent for fiscal year 1999, and 100 
148.13  percent for fiscal year 2000 and later. 
148.14     Sec. 7.  Minnesota Statutes 1998, section 124D.454, 
148.15  subdivision 10, is amended to read: 
148.16     Subd. 10.  [EXCLUSION.] A district shall not receive aid 
148.17  pursuant to section 124D.453, or 125A.76, or 125A.77 for 
148.18  salaries, supplies, travel or equipment for which the district 
148.19  receives aid pursuant to this section. 
148.20     Sec. 8.  Minnesota Statutes 1999 Supplement, section 
148.21  125A.023, subdivision 3, is amended to read: 
148.22     Subd. 3.  [DEFINITIONS.] For purposes of this section and 
148.23  section 125A.027, the following terms have the meanings given 
148.24  them: 
148.25     (a) "Health plan" means: 
148.26     (1) a health plan under section 62Q.01, subdivision 3; 
148.27     (2) a county-based purchasing plan under section 256B.692; 
148.28     (3) a self-insured health plan established by a local 
148.29  government under section 471.617; or 
148.30     (4) self-insured health coverage provided by the state to 
148.31  its employees or retirees. 
148.32     (b) For purposes of this section, "health plan company" 
148.33  means an entity that issues a health plan as defined in 
148.34  paragraph (a). 
148.35     (c) "Individual interagency intervention plan" means a 
148.36  standardized written plan describing those programs or services 
149.1   and the accompanying funding sources available to eligible 
149.2   children with disabilities. 
149.3      (d) "Interagency intervention service system" means a 
149.4   system that coordinates services and programs required in state 
149.5   and federal law to meet the needs of eligible children with 
149.6   disabilities ages three to 21, including: 
149.7      (1) services provided under the following programs or 
149.8   initiatives administered by state or local agencies: 
149.9      (i) the maternal and child health program under title V of 
149.10  the Social Security Act, United States Code, title 42, sections 
149.11  701 to 709; 
149.12     (ii) the Individuals with Disabilities Education Act under 
149.13  United States Code, title 20, chapter 33, subchapter II, 
149.14  sections 1411 to 1420; 
149.15     (iii) medical assistance under the Social Security Act, 
149.16  United States Code, title 42, chapter 7, subchapter XIX, section 
149.17  1396, et seq.; 
149.18     (iv) the Developmental Disabilities Assistance and Bill of 
149.19  Rights Act, United States Code, title 42, chapter 75, subchapter 
149.20  II, sections 6021 to 6030, Part B; 
149.21     (v) the Head Start Act, United States Code, title 42, 
149.22  chapter 105, subchapter II, sections 9831 to 9852; 
149.23     (vi) rehabilitation services provided under chapter 268A; 
149.24     (vii) Juvenile Court Act services provided under sections 
149.25  260.011 to 260.91; 260B.001 to 260B.446; and 260C.001 to 
149.26  260C.451; 
149.27     (viii) the children's mental health collaboratives under 
149.28  section 245.493; 
149.29     (ix) the family service collaboratives under section 
149.30  124D.23; 
149.31     (x) the family community support plan under section 
149.32  245.4881, subdivision 4; 
149.33     (xi) the MinnesotaCare program under chapter 256L; 
149.34     (xii) the community health services grants under chapter 
149.35  145; 
149.36     (xiii) the Community Social Services Act funding under the 
150.1   Social Security Act, United States Code, title 42, sections 1397 
150.2   to 1397f; and 
150.3      (xiv) the community interagency transition interagency 
150.4   committees under section 125A.22; 
150.5      (2) services provided under a health plan in conformity 
150.6   with an individual family service plan or an individual 
150.7   education plan; and 
150.8      (3) additional appropriate services that local agencies and 
150.9   counties provide on an individual need basis upon determining 
150.10  eligibility and receiving a request from the interagency early 
150.11  intervention committee and the child's parent. 
150.12     (e) "Children with disabilities" has the meaning given in 
150.13  section 125A.02. 
150.14     (f) A "standardized written plan" means those individual 
150.15  services or programs available through the interagency 
150.16  intervention service system to an eligible child other than the 
150.17  services or programs described in the child's individual 
150.18  education plan or the child's individual family service plan. 
150.19     Sec. 9.  Minnesota Statutes 1999 Supplement, section 
150.20  125A.023, subdivision 5, is amended to read: 
150.21     Subd. 5.  [INTERVENTION DEMONSTRATION PROJECTS.] (a) The 
150.22  commissioner of children, families, and learning, based on 
150.23  recommendations from the state interagency committee, shall 
150.24  issue a request for proposals by January 1, 1999, for grants to 
150.25  the governing boards of interagency early intervention 
150.26  committees under section 125A.027 or a combination of one or 
150.27  more counties and school districts to establish five voluntary 
150.28  interagency intervention demonstration projects.  One grant 
150.29  shall be used to implement a coordinated service system for all 
150.30  eligible children with disabilities up to age five who received 
150.31  services under sections 125A.26 to 125A.48.  One grant shall be 
150.32  used to implement a coordinated service system for a population 
150.33  of minority children with disabilities from ages 12 to 21, who 
150.34  may have behavioral problems and are in need of transitional 
150.35  services.  Each project must be operational by July 1, 1999.  
150.36  The governing boards of the interagency early intervention 
151.1   committees and the counties and school districts receiving 
151.2   project grants must develop efficient ways to coordinate 
151.3   services and funding for children with disabilities ages three 
151.4   to 21, consistent with the requirements of this section and 
151.5   section 125A.027 and the guidelines developed by the state 
151.6   interagency committee under this section. 
151.7      (b) The state interagency committee shall evaluate the 
151.8   demonstration projects and provide the evaluation results to 
151.9   interagency early intervention committees. 
151.10     Sec. 10.  Minnesota Statutes 1999 Supplement, section 
151.11  125A.08, is amended to read: 
151.12     125A.08 [SCHOOL DISTRICT OBLIGATIONS.] 
151.13     (a) As defined in this section, to the extent required by 
151.14  federal law as of July 1, 2000, every district must ensure the 
151.15  following: 
151.16     (1) all students with disabilities are provided the special 
151.17  instruction and services which are appropriate to their needs.  
151.18  Where the individual education plan team has determined 
151.19  appropriate goals and objectives based on the student's needs, 
151.20  including the extent to which the student can be included in the 
151.21  least restrictive environment, and where there are essentially 
151.22  equivalent and effective instruction, related services, or 
151.23  assistive technology devices available to meet the student's 
151.24  needs, cost to the district may be among the factors considered 
151.25  by the team in choosing how to provide the appropriate services, 
151.26  instruction, or devices that are to be made part of the 
151.27  student's individual education plan.  The individual education 
151.28  plan team shall consider and may authorize services covered by 
151.29  medical assistance according to section 256B.0625, subdivision 
151.30  26.  The student's needs and the special education instruction 
151.31  and services to be provided must be agreed upon through the 
151.32  development of an individual education plan.  The plan must 
151.33  address the student's need to develop skills to live and work as 
151.34  independently as possible within the community.  By grade 9 or 
151.35  age 14, the plan must address the student's needs for transition 
151.36  from secondary services to post-secondary education and 
152.1   training, employment, community participation, recreation, and 
152.2   leisure and home living.  In developing the plan, districts must 
152.3   inform parents of the full range of transitional goals and 
152.4   related services that should be considered.  The plan must 
152.5   include a statement of the needed transition services, including 
152.6   a statement of the interagency responsibilities or linkages or 
152.7   both before secondary services are concluded; 
152.8      (2) children with a disability under age five and their 
152.9   families are provided special instruction and services 
152.10  appropriate to the child's level of functioning and needs; 
152.11     (3) children with a disability and their parents or 
152.12  guardians are guaranteed procedural safeguards and the right to 
152.13  participate in decisions involving identification, assessment 
152.14  including assistive technology assessment, and educational 
152.15  placement of children with a disability; 
152.16     (4) eligibility and needs of children with a disability are 
152.17  determined by an initial assessment or reassessment, which may 
152.18  be completed using existing data under United States Code, title 
152.19  20, section 33, et seq.; 
152.20     (5) to the maximum extent appropriate, children with a 
152.21  disability, including those in public or private institutions or 
152.22  other care facilities, are educated with children who are not 
152.23  disabled, and that special classes, separate schooling, or other 
152.24  removal of children with a disability from the regular 
152.25  educational environment occurs only when and to the extent that 
152.26  the nature or severity of the disability is such that education 
152.27  in regular classes with the use of supplementary services cannot 
152.28  be achieved satisfactorily; 
152.29     (6) in accordance with recognized professional standards, 
152.30  testing and evaluation materials, and procedures used for the 
152.31  purposes of classification and placement of children with a 
152.32  disability are selected and administered so as not to be 
152.33  racially or culturally discriminatory; and 
152.34     (7) the rights of the child are protected when the parents 
152.35  or guardians are not known or not available, or the child is a 
152.36  ward of the state. 
153.1      (b) For paraprofessionals employed to work in programs for 
153.2   students with disabilities, the school board in each district 
153.3   shall ensure that: 
153.4      (1) before or immediately upon employment, each 
153.5   paraprofessional develops sufficient knowledge and skills in 
153.6   emergency procedures, building orientation, roles and 
153.7   responsibilities, confidentiality, vulnerability, and 
153.8   reportability, among other things, to begin meeting the needs of 
153.9   the students with whom the paraprofessional works; 
153.10     (2) annual training opportunities are available to enable 
153.11  the paraprofessional to continue to further develop the 
153.12  knowledge and skills that are specific to the students with whom 
153.13  the paraprofessional works, including understanding 
153.14  disabilities, following lesson plans, and implementing follow-up 
153.15  instructional procedures and activities; and 
153.16     (3) a districtwide process obligates each paraprofessional 
153.17  to work under the ongoing direction of a licensed teacher and, 
153.18  where appropriate and possible, the supervision of a school 
153.19  nurse. 
153.20     Sec. 11.  Minnesota Statutes 1998, section 125A.76, 
153.21  subdivision 7, is amended to read: 
153.22     Subd. 7.  [REVENUE ALLOCATION FROM COOPERATIVE CENTERS AND 
153.23  INTERMEDIATES.] For the purposes of this section and section 
153.24  125A.77, a special education cooperative or an intermediate 
153.25  district must allocate its approved expenditures for special 
153.26  education programs among participating school districts. 
153.27     Sec. 12.  Minnesota Statutes 1999 Supplement, section 
153.28  125A.79, subdivision 8, is amended to read: 
153.29     Subd. 8.  [OUT-OF-STATE TUITION.] For children who are 
153.30  residents of the state, receive services under section 125A.76, 
153.31  subdivisions 1 and 2, and are placed in a care and treatment 
153.32  facility by court action in a state that does not have a 
153.33  reciprocity agreement with the commissioner under section 
153.34  125A.115 125A.155, the resident school district shall submit the 
153.35  balance of the tuition bills, minus the amount of the basic 
153.36  revenue, as defined by section 126C.10, subdivision 2, of the 
154.1   district for the child and the special education aid, and any 
154.2   other aid earned on behalf of the child. 
154.3      Sec. 13.  Minnesota Statutes 1999 Supplement, section 
154.4   125A.80, is amended to read: 
154.5      125A.80 [UNIFORM BILLING SYSTEM FOR THE EDUCATION COSTS OF 
154.6   OUT-OF-HOME PLACED STUDENTS.] 
154.7      The commissioner, in cooperation with the commissioners of 
154.8   human services and corrections and with input from appropriate 
154.9   billing system users, shall develop and implement a uniform 
154.10  billing system for school districts and other agencies, 
154.11  including private providers, who provide the educational 
154.12  services for students who are placed out of the home.  The 
154.13  uniform billing system must: 
154.14     (1) allow for the proper and timely billing to districts by 
154.15  service providers with a minimum amount of district 
154.16  administration; 
154.17     (2) allow districts to bill the state for certain types of 
154.18  special education and regular education services as provided by 
154.19  law; 
154.20     (3) provide flexibility for the types of services that are 
154.21  provided for children placed out of the home, including day 
154.22  treatment services; 
154.23     (4) allow the commissioner to track the type, cost, and 
154.24  quality of services provided for children placed out of the 
154.25  home; 
154.26     (5) conform existing special education and proposed regular 
154.27  education billing procedures; 
154.28     (6) provide a uniform reporting standard of per diem rates; 
154.29     (7) determine allowable expenses and maximum reimbursement 
154.30  rates for the state reimbursement of care and treatment services 
154.31  according to section 124D.701; and 
154.32     (8) provide a process for the district to appeal to the 
154.33  commissioner tuition bills submitted to districts and to the 
154.34  state. 
154.35     Sec. 14.  Minnesota Statutes 1999 Supplement, section 
154.36  125B.21, subdivision 3, is amended to read: 
155.1      Subd. 3.  [CRITERIA.] In addition to responsibilities of 
155.2   the council under Laws 1993, First Special Session chapter 2, as 
155.3   amended, the telecommunications council shall evaluate grant 
155.4   applications under section 124C.74 125B.20 and applications from 
155.5   district organizations using the following criteria: 
155.6      (1) evidence of cooperative arrangements with other 
155.7   post-secondary institutions, school districts, and community and 
155.8   regional libraries in the geographic region; 
155.9      (2) plans for shared classes and programs; 
155.10     (3) avoidance of network duplication; 
155.11     (4) evidence of efficiencies to be achieved in delivery of 
155.12  instruction due to use of telecommunications; 
155.13     (5) a plan for development of a list of all courses 
155.14  available in the region for delivery at a distance; 
155.15     (6) a plan for coordinating and scheduling courses; and 
155.16     (7) a plan for evaluation of costs, access, and outcomes. 
155.17     Sec. 15.  Minnesota Statutes 1999 Supplement, section 
155.18  126C.10, subdivision 24, is amended to read: 
155.19     Subd. 24.  [EQUITY REVENUE.] (a) A school district 
155.20  qualifies for equity revenue if the school district's adjusted 
155.21  marginal cost pupil unit amount of basic revenue, supplemental 
155.22  revenue, transition revenue, and referendum revenue is less than 
155.23  the 90th percentile of school districts in its equity region for 
155.24  those revenue categories and the school district's 
155.25  administrative offices are not located in a city of the first 
155.26  class on July 1, 1999. 
155.27     (b) Equity revenue for a qualifying district that receives 
155.28  referendum revenue under section 126C.17, subdivision 4, equals 
155.29  the product of (1) the district's adjusted marginal cost pupil 
155.30  units for that year; times (2) the sum of (i) $10, plus (ii) 
155.31  $30, times the school district's equity index computed under 
155.32  section 126C.10, subdivision 6 27. 
155.33     (c) Equity revenue for a qualifying district that does not 
155.34  receive referendum revenue under section 126C.17, subdivision 4, 
155.35  equals the product of the district's adjusted marginal cost 
155.36  pupil units for that year times $10. 
156.1      Sec. 16.  Minnesota Statutes 1998, section 126C.12, 
156.2   subdivision 2, is amended to read: 
156.3      Subd. 2.  [INSTRUCTOR DEFINED.] Primary instructor means a 
156.4   public employee licensed by the board of teaching whose duties 
156.5   are full-time instruction, excluding a teacher for whom 
156.6   categorical aids are received pursuant to sections section 
156.7   125A.76 and 125A.77.  Except as provided in section 122A.68, 
156.8   subdivision 6, instructor does not include supervisory and 
156.9   support personnel, except school social workers as defined in 
156.10  section 122A.15.  An instructor whose duties are less than 
156.11  full-time instruction must be included as an equivalent only for 
156.12  the number of hours of instruction in grades kindergarten 
156.13  through 6. 
156.14     Sec. 17.  Minnesota Statutes 1998, section 127A.05, 
156.15  subdivision 4, is amended to read: 
156.16     Subd. 4.  [ADMINISTRATIVE RULES.] The commissioner may 
156.17  adopt new rules and amend them or amend any existing rules only 
156.18  under specific authority and consistent with the requirements of 
156.19  chapter 14.  The commissioner may repeal any existing 
156.20  rules adopted by the commissioner.  Notwithstanding the 
156.21  provisions of section 14.05, subdivision 4, the commissioner may 
156.22  grant a variance to rules adopted by the commissioner upon 
156.23  application by a school district for purposes of implementing 
156.24  experimental programs in learning or school management.  This 
156.25  subdivision shall not prohibit the commissioner from making 
156.26  technical changes or corrections to adopted rules adopted by the 
156.27  commissioner. 
156.28     Sec. 18.  Minnesota Statutes 1998, section 127A.41, 
156.29  subdivision 8, is amended to read: 
156.30     Subd. 8.  [APPROPRIATION TRANSFERS.] If a direct 
156.31  appropriation from the general fund to the department for any 
156.32  education aid or grant authorized in this chapter and chapters 
156.33  122A, 123A, 123B, 124D, 126C, and 134, excluding appropriations 
156.34  under sections 124D.135, 124D.14, 124D.16, 124D.20, 124D.21, 
156.35  124D.22, 124D.52, 124D.53, 124D.54, 124D.55, and 124D.56, 
156.36  exceeds the amount required, the commissioner may transfer the 
157.1   excess to any education aid or grant appropriation that is 
157.2   insufficient.  However, section 126C.20 applies to a deficiency 
157.3   in the direct appropriation for general education aid.  Excess 
157.4   appropriations must be allocated proportionately among aids or 
157.5   grants that have insufficient appropriations.  The commissioner 
157.6   of finance shall make the necessary transfers among 
157.7   appropriations according to the determinations of the 
157.8   commissioner.  If the amount of the direct appropriation for the 
157.9   aid or grant plus the amount transferred according to this 
157.10  subdivision is insufficient, the commissioner shall prorate the 
157.11  available amount among eligible districts.  The state is not 
157.12  obligated for any additional amounts.  
157.13     Sec. 19.  Minnesota Statutes 1998, section 127A.41, 
157.14  subdivision 9, is amended to read: 
157.15     Subd. 9.  [APPROPRIATION TRANSFERS FOR COMMUNITY EDUCATION 
157.16  PROGRAMS.] If a direct appropriation from the general fund to 
157.17  the department of children, families, and learning for an 
157.18  education aid or grant authorized under section 
157.19  124D.135, 124D.14, 124D.16, 124D.20, 124D.21, 124D.22, 124D.52, 
157.20  124D.53, 124D.54, 124D.55, or 124D.56 exceeds the amount 
157.21  required, the commissioner of children, families, and learning 
157.22  may transfer the excess to any education aid or grant 
157.23  appropriation that is insufficiently funded under these sections.
157.24  Excess appropriations shall be allocated proportionately among 
157.25  aids or grants that have insufficient appropriations.  The 
157.26  commissioner of finance shall make the necessary transfers among 
157.27  appropriations according to the determinations of the 
157.28  commissioner of children, families, and learning.  If the amount 
157.29  of the direct appropriation for the aid or grant plus the amount 
157.30  transferred according to this subdivision is insufficient, the 
157.31  commissioner shall prorate the available amount among eligible 
157.32  districts.  The state is not obligated for any additional 
157.33  amounts. 
157.34     Sec. 20.  Minnesota Statutes 1999 Supplement, section 
157.35  181A.04, subdivision 6, is amended to read: 
157.36     Subd. 6.  A high school student under the age of 18 must 
158.1   not be permitted to work after 11:00 p.m. on an evening before a 
158.2   school day or before 5:00 a.m. on a school day, except as 
158.3   permitted by section 181A.07, subdivisions 1, 2, 3, and 4.  If a 
158.4   high school student under the age of 18 has supplied the 
158.5   employer with a note signed by the parent or guardian of the 
158.6   student, the student may be permitted to work until 11:30 p.m. 
158.7   on the evening before a school day and beginning at 4:30 a.m. on 
158.8   a school day. 
158.9      For the purpose of this subdivision, a high school student 
158.10  does not include a student enrolled in an alternative education 
158.11  program approved by the commissioner of children, families, and 
158.12  learning or an area learning center, including area learning 
158.13  centers under sections 123A.05 to 123A.08 or according to 
158.14  section 122A.164 122A.163. 
158.15     Sec. 21.  Laws 1999, chapter 241, article 1, section 69, is 
158.16  amended to read: 
158.17     Sec. 69.  [REPEALER.] 
158.18     (a) Minnesota Statutes 1998, sections 123B.89; and 123B.92, 
158.19  subdivisions 2, 4, 6, 7, 8, and 10, are repealed. 
158.20     (b) Minnesota Statutes 1998, section 120B.05, is repealed 
158.21  effective for revenue for fiscal year 2000. 
158.22     (c) Minnesota Statutes 1998, section 124D.65, subdivisions 
158.23  1, 2, and 3, are repealed effective for revenue for fiscal year 
158.24  2001. 
158.25     (d) Minnesota Statutes 1998, sections 124D.67; 126C.05, 
158.26  subdivision 4; and 126C.06, are repealed effective the day 
158.27  following final enactment. 
158.28     This appropriation is available until June 30, 2001. 
158.29     Sec. 22.  Laws 1999, chapter 241, article 4, section 27, 
158.30  subdivision 5, is amended to read: 
158.31     Subd. 5.  [ALTERNATIVE FACILITIES BONDING AID.] For 
158.32  alternative facilities bonding aid, according to Minnesota 
158.33  Statutes, section 123B.59: 
158.34       $19,058,000    .....     2000 
158.35       $19,286,000    .....     2001 
158.36     The 2000 appropriation includes $1,700,000 for 2000 1999 
159.1   and $17,358,000 for 2001 2000. 
159.2      The 2001 appropriation includes $1,928,000 for 2000 and 
159.3   $17,358,000 for 2001. 
159.4      <h>EFFECTIVE DATE:</h>  This section is effective the day 
159.5   following final enactment. 
159.6      Sec. 23.  Laws 1999, chapter 241, article 6, section 14, 
159.7   subdivision 5, is amended to read: 
159.8      Subd. 5.  [NONPUBLIC PUPIL TRANSPORTATION.] For nonpublic 
159.9   pupil transportation aid under Minnesota Statutes, section 
159.10  123B.92, subdivision 9: 
159.11       $18,586,000    .....     2000 
159.12       $20,922,000    .....     2001 
159.13     The 2000 appropriation includes $1,848,000 for 2000 1999 
159.14  and $16,738,000 for 2001 2000. 
159.15     The 2001 appropriation includes $1,860,000 for 2000 and 
159.16  $19,062,000 for 2001. 
159.17     <h>EFFECTIVE DATE:</h>  This section is effective the day 
159.18  following final enactment. 
159.19     Sec. 24.  Laws 1999, chapter 241, article 9, section 49, is 
159.20  amended to read: 
159.21     Sec. 49.  [TRANSITION.] 
159.22     Notwithstanding Minnesota Statutes, section 15.0597, the 
159.23  terms of persons who are members appointed by the governor 
159.24  before the effective date of section 8 37, shall have their term 
159.25  end on July 31 of the year following the last year of their 
159.26  appointment. 
159.27     Sec. 25.  [REVISOR INSTRUCTION.] 
159.28     In the next and subsequent editions of Minnesota Statutes, 
159.29  the revisor shall renumber section 123B.02, subdivision 12, as 
159.30  120A.22, subdivision 1a.  The revisor shall correct all 
159.31  cross-references to be consistent with the renumbering. 
159.32     Sec. 26.  [REPEALER.] 
159.33     Laws 1999, chapter 241, article 9, sections 35 and 36, are 
159.34  repealed.  Laws 1999, chapter 245, article 4, section 3, is 
159.35  repealed. 
159.36                             ARTICLE 10
160.1                           HIGHER EDUCATION
160.2                            APPROPRIATIONS 
160.3   Section 1.  [HIGHER EDUCATION APPROPRIATIONS.] 
160.4      The sums in the columns marked "APPROPRIATIONS" are 
160.5   appropriated from the general fund, or other named fund, to the 
160.6   agencies and for the purposes specified in this article.  The 
160.7   listing of an amount under the figure "2000" or "2001" in this 
160.8   article indicates that the amount is appropriated to be 
160.9   available for the fiscal year ending June 30, 2000, or June 30, 
160.10  2001, respectively.  "The first year" is fiscal year 2000.  "The 
160.11  second year" is fiscal year 2001.  "The biennium" is fiscal 
160.12  years 2000 and 2001. 
160.13                          SUMMARY BY FUND 
160.14                            2000          2001           TOTAL
160.15  General                   -0-     $   29,000,000 $   29,000,000
160.16                   SUMMARY BY AGENCY - ALL FUNDS
160.17                            2000          2001           TOTAL
160.18  Board of Trustees of the Minnesota
160.19  State Colleges and Universities
160.20                            -0-         13,180,000     13,180,000
160.21  Board of Regents of the University
160.22  of Minnesota
160.23                            -0-         15,820,000     15,820,000
160.24                                            APPROPRIATIONS 
160.25                                         Available for the Year 
160.26                                             Ending June 30 
160.27                                            2000         2001 
160.28  Sec. 2.  BOARD OF TRUSTEES OF THE
160.29  MINNESOTA STATE COLLEGES AND UNIVERSITIES
160.30  Subdivision 1.  Total
160.31  Appropriation                                       $13,180,000
160.32  The amounts that may be spent from this 
160.33  appropriation for each purpose are 
160.34  specified in the following subdivisions.
160.35  Subd. 2.  Deficiency                                
160.36  Appropriations                                                 
160.37         -0-         11,600,000
160.38  This is a one-time appropriation under 
160.39  Minnesota Statutes, section 135A.031, 
160.40  subdivision 4, to fund unanticipated 
160.41  enrollment increases.  This 
160.42  appropriation is added to the 
160.43  appropriation in Laws 1999, chapter 
160.44  214, article 1, section 3, subdivision 
161.1   1. 
161.2   Subd. 3.  Farm Business     
161.3   Management                                                     
161.4          -0-            250,000
161.5   This appropriation is to provide 
161.6   educational and management services to 
161.7   a greater number of farmers facing 
161.8   financial hardship in the farm wrap and 
161.9   farm help network service areas. 
161.10  Subd. 4.  Urban Teacher     
161.11  Preparation                                                    
161.12         -0-          1,250,000
161.13  This appropriation is for the 
161.14  development and implementation of the 
161.15  secondary and early childhood education 
161.16  components of the program established 
161.17  by this subdivision. 
161.18  (a) The board shall offer a program of 
161.19  teacher preparation leading to 
161.20  licensure, involving Metropolitan State 
161.21  University, Inver Hills Community 
161.22  College, and Minneapolis Community and 
161.23  Technical College.  The institutions 
161.24  involved shall enter into an agreement 
161.25  whereby Inver Hills Community College 
161.26  and Minneapolis Community and Technical 
161.27  College shall provide the first two 
161.28  years of the program, and Metropolitan 
161.29  State University shall provide the 
161.30  final two years of the program.  In 
161.31  fall semester 2000, Minneapolis 
161.32  Community and Technical College and 
161.33  Inver Hills Community College shall 
161.34  offer a preeducation program.  After 
161.35  development of the program in fiscal 
161.36  year 2001, Metropolitan State 
161.37  University shall begin its licensure 
161.38  program in fall semester 2001.  The 
161.39  program shall focus on preparing 
161.40  teachers to meet the specific needs of 
161.41  urban and inner-ring suburban schools 
161.42  and shall emphasize significant direct 
161.43  classroom teaching experience and 
161.44  mentoring throughout each student's 
161.45  preparation.  The program may also 
161.46  focus on the professional development 
161.47  of pretenure teachers.  Metropolitan 
161.48  State University, Inver Hills Community 
161.49  College, and Minneapolis Community and 
161.50  Technical College are encouraged to 
161.51  enter into partnerships with urban and 
161.52  inner-ring suburban schools to provide 
161.53  for significant involvement of 
161.54  elementary and secondary teachers in 
161.55  the mentoring of students enrolled in 
161.56  the program.  
161.57  (b) The legislature expects the program 
161.58  to enroll at least 50 percent students 
161.59  of color. 
161.60  (c) By February 15, 2002, and annually 
161.61  thereafter, the board of trustees shall 
161.62  provide a progress report to the chairs 
162.1   of the higher education finance 
162.2   divisions of the legislature regarding 
162.3   the development of the teacher 
162.4   preparation program.  The annual report 
162.5   shall include, to the extent 
162.6   practicable at the time of preparation, 
162.7   information comparing program outcomes 
162.8   with the target expectations set forth 
162.9   in paragraph (b).  The report shall 
162.10  include feedback from enrolled students 
162.11  concerning how the program meets their 
162.12  needs, as well as from cooperating 
162.13  elementary and secondary schools on how 
162.14  the students are performing on site. 
162.15  Subd. 5.  Cook County Higher
162.16  Education Project                                              
162.17         -0-             80,000
162.18  This appropriation is for the Cook 
162.19  county higher education project for 
162.20  delivery of educational services 
162.21  electronically.  The board shall submit 
162.22  a report in the biennial budget 
162.23  document on uses of the appropriation.  
162.24  The report shall include information 
162.25  regarding the number of students 
162.26  served, credit hours delivered, other 
162.27  services provided, strategic direction 
162.28  of the project, expected future funding 
162.29  sources, and collaborations with other 
162.30  organizations. 
162.31  Sec. 3.  BOARD OF REGENTS OF THE 
162.32  UNIVERSITY OF MINNESOTA 
162.33  Subdivision 1.  Total
162.34  Appropriation                                         15,820,000
162.35  The amounts that may be spent from this 
162.36  appropriation for each purpose are 
162.37  specified in the following subdivisions.
162.38  Subd. 2.  Operations and
162.39  Maintenance 
162.40  (a) North Star Research Coalition                               
162.41         -0-         15,000,000
162.42  This is a one-time appropriation for 
162.43  the university's contribution to the 
162.44  North Star Research Coalition.  The 
162.45  commissioner of finance may not release 
162.46  this appropriation until the university 
162.47  presents evidence that a nonprofit 
162.48  tax-exempt corporation, to be known as 
162.49  the North Star Research Coalition, in a 
162.50  form complying with this paragraph, has 
162.51  been established.  The commissioner 
162.52  shall release the money appropriated, 
162.53  as a one-for-one match for money from 
162.54  nonstate sources, on a quarterly basis, 
162.55  until the appropriation is expended.  
162.56  Notwithstanding any law to the 
162.57  contrary, this appropriation shall not 
162.58  cancel, but is available until expended.
162.59  The board of regents is requested to 
162.60  establish a partnership with private 
163.1   industry to leverage the university's 
163.2   research capabilities into economic 
163.3   development results through the 
163.4   creation of a nonprofit tax-exempt 
163.5   corporation to be known as the North 
163.6   Star Research Coalition.  The money for 
163.7   projects funded under this initiative 
163.8   must be used to fund research projects 
163.9   consistent with priorities established 
163.10  by the partnership, purchase equipment 
163.11  for research laboratories, and 
163.12  establish endowed faculty chairs in the 
163.13  area of technology-based research. 
163.14  The coalition may fund research 
163.15  projects that establish collaborative 
163.16  research efforts among the University 
163.17  of Minnesota and the private sector, 
163.18  the Mayo Clinic, nonprofit research 
163.19  institutes, or the Minnesota state 
163.20  colleges and universities. 
163.21  The duties of the coalition include: 
163.22  (1) identifying technology-based 
163.23  research projects that have the 
163.24  potential to create significant 
163.25  opportunities for economic development 
163.26  and industrial growth in the state; 
163.27  (2) strengthening the university's 
163.28  research capabilities in subject areas 
163.29  associated with emerging 
163.30  technology-based industries; 
163.31  (3) expanding the research capacity of 
163.32  the university through the creation of 
163.33  opportunities for the university to 
163.34  assist private enterprises in emerging 
163.35  technology-based industries; 
163.36  (4) promoting the transfer of 
163.37  technology from the research laboratory 
163.38  to commercial application by 
163.39  businesses; 
163.40  (5) developing application procedures 
163.41  for, reviewing, and prioritizing 
163.42  research projects seeking funding under 
163.43  this initiative; and 
163.44  (6) creating opportunities for 
163.45  collaborative research opportunities 
163.46  among the University of Minnesota, the 
163.47  Mayo Clinic, nonprofit research 
163.48  institutes, and the Minnesota state 
163.49  colleges and universities. 
163.50  The board shall have the authority to 
163.51  allocate state and nonstate money to 
163.52  projects. 
163.53  The incorporating documents of the 
163.54  North Star Research Coalition must 
163.55  provide for representation of 
163.56  university and private sector interests 
163.57  on the coalition's board of directors 
163.58  and provide that changes in the 
163.59  governance structure require a super 
163.60  majority of the board.  The board 
163.61  consists of 12 members.  Six shall be 
164.1   appointed by the board of regents of 
164.2   the University of Minnesota and need 
164.3   not be affiliated with the university.  
164.4   The initial six members representing 
164.5   the private sector shall be appointed 
164.6   by the governor.  Subsequent members 
164.7   representing the private sector shall 
164.8   be appointed by the incumbent members.  
164.9   Private sector members of the board 
164.10  must have expertise in the technology 
164.11  research needs of the state and not be 
164.12  affiliated with the university. 
164.13  (b) Duluth; Child Care                                         
164.14         -0-            220,000
164.15  To provide for child care in the newly 
164.16  renovated Kirby Center. 
164.17  Subd. 3.  Special           
164.18  Appropriation                                                  
164.19  Agricultural Rapid Response Fund
164.20         -0-            600,000
164.21  This appropriation is for the rapid 
164.22  agricultural response fund.  The 
164.23  university shall report on the uses of 
164.24  this appropriation in the biennial 
164.25  budget document.  This appropriation is 
164.26  added to the appropriation in Laws 
164.27  1999, chapter 214, article 1, section 
164.28  4, subdivision 5, paragraph (a). 
164.29     Sec. 4.  Minnesota Statutes 1998, section 136A.125, is 
164.30  amended by adding a subdivision to read: 
164.31     Subd. 4c.  [SURPLUS FUNDS.] Any projected surplus 
164.32  appropriation in the child care grant program in the first year 
164.33  of a biennium shall be used to augment the maximum award in 
164.34  subdivision 4 in the second year of the biennium. 
164.35     Sec. 5.  Laws 1999, chapter 214, article 1, section 4, 
164.36  subdivision 2, is amended to read: 
164.37  Subd. 2.  Operations and
164.38  Maintenance                          513,279,000    533,870,000
164.39  Estimated Expenditures 
164.40  and Appropriations 
164.41  The legislature estimates that 
164.42  instructional expenditures will be 
164.43  $461,521,000 in the first year and 
164.44  $484,679,000 in the second year. 
164.45  The legislature estimates that 
164.46  noninstructional expenditures will be 
164.47  $202,367,000 in the first year and 
164.48  $201,717,000 in the second year.  
164.49  By January 30, 2000, the University 
164.50  shall submit to the governor and the 
164.51  legislature a master academic plan for 
165.1   the Rochester region that clearly 
165.2   defines the academic needs of the 
165.3   region, short and long-term plans to 
165.4   address those needs including the 
165.5   designation of responsibility among the 
165.6   partner institutions, short and 
165.7   long-term demographic and enrollment 
165.8   projections, physical plant capacity 
165.9   and needs, and a delineation of 
165.10  missions among the partner institutions 
165.11  to avoid competition and duplication. 
165.12  Notwithstanding Minnesota Statutes 
165.13  1998, section 137.022, subdivision 4, 
165.14  in fiscal year 2001 the first $200,000 
165.15  of permanent university fund income 
165.16  from royalties for mining under state 
165.17  mineral leases designated for the 
165.18  natural resources research institute 
165.19  shall be allocated by the board of 
165.20  regents to the department of landscape 
165.21  architecture to develop a long-range 
165.22  plan for the reclamation of taconite 
165.23  mining lands.  The board shall allocate 
165.24  the money only if an equal or greater 
165.25  amount of matching money from nonstate 
165.26  sources has been pledged to support the 
165.27  project by June 30, 2000 in increments 
165.28  of $50,000 as each $50,000 is matched 
165.29  by nonstate sources, provided that no 
165.30  money may be allocated after June 30, 
165.31  2001. 
165.32  The University of Minnesota academic 
165.33  health center, after consultation with 
165.34  the health care community and medical 
165.35  education and research costs advisory 
165.36  committee, shall report by January 15, 
165.37  2000, to the higher education finance 
165.38  committees on the strategic direction 
165.39  of its health professional programs.  
165.40  The plans shall include a programmatic 
165.41  and financial model for health 
165.42  professional education that will meet 
165.43  the state's future workforce needs, 
165.44  maintain the integrity of the education 
165.45  process, provide an appropriate level 
165.46  of ongoing financial support, and 
165.47  provide a framework for the health 
165.48  community and academic health center to 
165.49  work together in meeting the health 
165.50  needs of the state.  The academic 
165.51  health center is requested to provide 
165.52  the report also to the commissioner of 
165.53  health and the legislative commission 
165.54  on health care access. 
165.55     Sec. 6.  [REPEALER.] 
165.56     Minnesota Rules, parts 4830.9005, 4830.9010, 4830.9015, 
165.57  4830.9020, and 4830.9030, are repealed. 
165.58                             ARTICLE 11 
165.59                EARLY CHILDHOOD AND FAMILY EDUCATION 
165.60     Section 1.  Minnesota Statutes 1999 Supplement, section 
165.61  119B.011, subdivision 12, is amended to read: 
166.1      Subd. 12.  [EMPLOYMENT PLAN.] "Employment plan" means 
166.2   employment of recipients financially eligible for child care 
166.3   assistance, or other work activities defined under section 
166.4   256J.49, approved in an employability development, job search 
166.5   support plan, or employment plan that is developed by the county 
166.6   agency, if it is acting as an employment and training service 
166.7   provider, or by an employment and training service provider 
166.8   certified by the commissioner of economic security or an 
166.9   individual designated by the county to provide employment and 
166.10  training services.  The plans and designation of a service 
166.11  provider must meet the requirements of this chapter and chapter 
166.12  256J or chapter 256K, Minnesota Rules, parts 3400.0010 to 
166.13  3400.0230, and other programs that provide federal reimbursement 
166.14  for child care services. 
166.15     Sec. 2.  Minnesota Statutes 1999 Supplement, section 
166.16  119B.011, subdivision 15, is amended to read: 
166.17     Subd. 15.  [INCOME.] "Income" means earned or unearned 
166.18  income received by all family members, including public 
166.19  assistance cash benefits and at-home infant care subsidy 
166.20  payments, unless specifically excluded.  The following are 
166.21  excluded from income:  funds used to pay for health insurance 
166.22  premiums for family members, Supplemental Security Income, 
166.23  scholarships, work-study income, and grants that cover costs or 
166.24  reimbursement for tuition, fees, books, and educational 
166.25  supplies; student loans for tuition, fees, books, supplies, and 
166.26  living expenses; state and federal earned income tax credits; 
166.27  in-kind income such as food stamps, energy assistance, foster 
166.28  care assistance, medical assistance, child care assistance, and 
166.29  housing subsidies; earned income of full full-time or part-time 
166.30  students up to the age of 19, who have not earned a high school 
166.31  diploma or GED high school equivalency diploma including 
166.32  earnings from summer employment; grant awards under the family 
166.33  subsidy program; nonrecurring lump sum income only to the extent 
166.34  that it is earmarked and used for the purpose for which it is 
166.35  paid; and any income assigned to the public authority according 
166.36  to section 256.74 or 256.741. 
167.1      Sec. 3.  Minnesota Statutes 1999 Supplement, section 
167.2   119B.011, subdivision 20, is amended to read: 
167.3      Subd. 20.  [TRANSITION YEAR FAMILIES.] "Transition year 
167.4   families" means families who have received MFIP assistance, or 
167.5   who were eligible to receive MFIP assistance after choosing to 
167.6   discontinue receipt of the cash portion of MFIP assistance under 
167.7   section 256J.31, subdivision 12, for at least three of the last 
167.8   six months before losing eligibility for MFIP due to increased 
167.9   income from employment or child or spousal support or families 
167.10  participating in work first under chapter 256K who meet the 
167.11  requirements of section 256K.07.  Transition year child care may 
167.12  be used to support employment or job search.  Transition year 
167.13  child care is not available to families who have been 
167.14  disqualified from MFIP due to fraud. 
167.15     Sec. 4.  Minnesota Statutes 1999 Supplement, section 
167.16  119B.03, subdivision 4, is amended to read: 
167.17     Subd. 4.  [FUNDING PRIORITY.] (a) First priority for child 
167.18  care assistance under the basic sliding fee program must be 
167.19  given to eligible non-MFIP families who do not have a high 
167.20  school or general equivalency diploma or who need remedial and 
167.21  basic skill courses in order to pursue employment or to pursue 
167.22  education leading to employment and who need child care 
167.23  assistance to participate in the education program.  Within this 
167.24  priority, the following subpriorities must be used: 
167.25     (1) child care needs of minor parents; 
167.26     (2) child care needs of parents under 21 years of age; and 
167.27     (3) child care needs of other parents within the priority 
167.28  group described in this paragraph. 
167.29     (b) Second priority must be given to parents who have 
167.30  completed their MFIP or work first transition year. 
167.31     (c) Third priority must be given to families who are 
167.32  eligible for portable basic sliding fee assistance through the 
167.33  portability pool under subdivision 9. 
167.34     Sec. 5.  Minnesota Statutes 1998, section 119B.03, is 
167.35  amended by adding a subdivision to read: 
167.36     Subd. 6a.  [ALLOCATION DUE TO INCREASED FUNDING.] When 
168.1   funding increases are implemented within a calendar year, every 
168.2   county must receive an allocation at least equal and 
168.3   proportionate to its original allocation for the same time 
168.4   period.  The remainder of the allocation must be recalculated to 
168.5   reflect the funding increase, according to formulas identified 
168.6   in subdivision 6. 
168.7      Sec. 6.  Minnesota Statutes 1999 Supplement, section 
168.8   119B.05, subdivision 1, is amended to read: 
168.9      Subdivision 1.  [ELIGIBLE PARTICIPANTS.] Families eligible 
168.10  for child care assistance under the MFIP child care program are: 
168.11     (1) MFIP participants who are employed or in job search and 
168.12  meet the requirements of section 119B.10; 
168.13     (2) persons who are members of transition year families 
168.14  under section 119B.011, subdivision 20; 
168.15     (3) families who are participating in employment 
168.16  orientation or job search, or other employment or training 
168.17  activities that are included in an approved employability 
168.18  development plan under chapter 256K; 
168.19     (4) MFIP families who are participating in work activities 
168.20  defined under section 256J.49 as required in their job search 
168.21  support or employment plan, or in appeals, hearings, 
168.22  assessments, or orientations according to chapter 256J.  Child 
168.23  care assistance to support work activities as described in 
168.24  section 256J.49 must be available according to sections 
168.25  119B.011, subdivision 11, 124D.13, 256E.08, and 611A.32 and 
168.26  titles IVA, IVB, IVE, and XX of the Social Security Act; and 
168.27     (5) families who are participating in programs as required 
168.28  in tribal contracts under section 119B.02, subdivision 2, or 
168.29  256.01, subdivision 2. 
168.30     Sec. 7.  Minnesota Statutes 1998, section 124D.16, 
168.31  subdivision 1, is amended to read: 
168.32     Subdivision 1.  [PROGRAM REVIEW AND APPROVAL.] By February 
168.33  15, 1992, for the 1991-1992 school year or by May 1 preceding 
168.34  subsequent school years, a district must submit to the 
168.35  commissioners of children, families, and learning, and health A 
168.36  school district shall biennially by May 1 submit to the 
169.1   commissioners of children, families, and learning and health the 
169.2   program plan required under this subdivision.  As determined by 
169.3   the commissioners, one-half of the districts shall first submit 
169.4   the plan by May 1 of the 2000-2001 school year and one-half of 
169.5   the districts shall first submit the plan by May 1 of the 
169.6   2001-2002 school year.  The program plan must include: 
169.7      (1) a description of the services to be provided; 
169.8      (2) a plan to ensure children at greatest risk receive 
169.9   appropriate services; 
169.10     (3) a description of procedures and methods to be used to 
169.11  coordinate public and private resources to maximize use of 
169.12  existing community resources, including school districts, health 
169.13  care facilities, government agencies, neighborhood 
169.14  organizations, and other resources knowledgeable in early 
169.15  childhood development; 
169.16     (4) comments about the district's proposed program by the 
169.17  advisory council required by section 124D.15, subdivision 7; and 
169.18     (5) agreements with all participating service providers.  
169.19     Each commissioner may review and comment on the program, 
169.20  and make recommendations to the commissioner of children, 
169.21  families, and learning, within 30 days of receiving the plan. 
169.22     Sec. 8.  Minnesota Statutes 1999 Supplement, section 
169.23  124D.221, subdivision 2, is amended to read: 
169.24     Subd. 2.  [PRIORITY NEIGHBORHOODS.] For grants in 
169.25  Minneapolis and St. Paul, the commissioner must give priority to 
169.26  neighborhoods in this subdivision.  In Minneapolis, priority 
169.27  neighborhoods are Near North, Hawthorne, Sumner-Glenwood, 
169.28  Harrison, Jordan, Powderhorn, Central, Whittier, Cleveland, 
169.29  McKinley, Waite Park, Sheridan, Holland, Lyndale, Folwell, and 
169.30  Phillips.  In St. Paul, priority neighborhoods are 
169.31  Summit-University, Thomas-Dale, North End, Payne-Phalen, Daytons 
169.32  Bluff, and the West Side.  
169.33     Sec. 9.  [124D.515] [ADULT BASIC EDUCATION AID 
169.34  DEFINITIONS.] 
169.35     Subdivision 1.  [APPLICABILITY.] For purposes of this 
169.36  chapter, the following terms have the meanings given them. 
170.1      Subd. 2.  [ADULT BASIC EDUCATION CONSORTIUM.] "Adult basic 
170.2   education consortium" means a voluntary association of school 
170.3   districts, public agencies, or nonprofit organizations that work 
170.4   together to provide coordinated adult basic education services 
170.5   in a designated geographic area, and that act as a fiscal entity 
170.6   providing adult basic education services. 
170.7      Subd. 3.  [CONTACT HOURS.] (a) "Contact hours" means the 
170.8   number of hours during which a student was engaged in learning 
170.9   activities provided by an approved adult education program.  
170.10     (b) Contact hours for an organization funded in fiscal year 
170.11  2000, but not eligible for basic population aid in fiscal year 
170.12  2001, is computed by multiplying the organization's contact 
170.13  hours by 1.08. 
170.14     (c) Contact hours excludes homework. 
170.15     Subd. 4.  [FIRST PRIOR PROGRAM YEAR.] "First prior program 
170.16  year" means the period from May 1 of the second prior fiscal 
170.17  year through April 30 of the first prior fiscal year. 
170.18     Subd. 5.  [UNREIMBURSED EXPENSES.] "Unreimbursed expenses" 
170.19  means allowable adult basic education expenses of a program that 
170.20  are not covered by payments from federal or private for profit 
170.21  sources. 
170.22     Sec. 10.  Minnesota Statutes 1998, section 124D.52, 
170.23  subdivision 1, is amended to read: 
170.24     Subdivision 1.  [PROGRAM REQUIREMENTS.] An adult basic 
170.25  education program is a day or evening program offered by a 
170.26  district that is for people over 16 years of age who do not 
170.27  attend an elementary or secondary school.  The program offers 
170.28  academic instruction necessary to earn a high school diploma or 
170.29  equivalency certificate.  Tuition and fees may not be charged to 
170.30  a learner for instruction paid under this section, except for a 
170.31  security deposit to assure return of materials, supplies, and 
170.32  equipment. 
170.33     Each approved adult basic education program must develop a 
170.34  memorandum of understanding with the local workforce development 
170.35  centers located in the approved program's service delivery 
170.36  area.  The memorandum of understanding must describe how the 
171.1   adult basic education program and the workforce development 
171.2   centers will cooperate and coordinate services to provide 
171.3   unduplicated, efficient, and effective services to clients.  
171.4      Adult basic education aid must be spent for adult basic 
171.5   education purposes, and to meet the adult basic education 
171.6   criteria, as specified in sections 124D.515 to 124D.531. 
171.7      Sec. 11.  Minnesota Statutes 1998, section 124D.52, 
171.8   subdivision 2, is amended to read: 
171.9      Subd. 2.  [PROGRAM APPROVAL.] (a) To receive aid under this 
171.10  section, a district, a consortium of districts, or a private 
171.11  nonprofit organization must submit an application by June 1 
171.12  describing the program, on a form provided by the department.  
171.13  The program must be approved by the commissioner according to 
171.14  the following criteria:  
171.15     (1) how the needs of different levels of learning will be 
171.16  met; 
171.17     (2) for continuing programs, an evaluation of results; 
171.18     (3) anticipated number and education level of participants; 
171.19     (4) coordination with other resources and services; 
171.20     (5) participation in a consortium, if any, and money 
171.21  available from other participants; 
171.22     (6) management and program design; 
171.23     (7) volunteer training and use of volunteers; 
171.24     (8) staff development services; 
171.25     (9) program sites and schedules; and 
171.26     (10) program expenditures that qualify for aid; 
171.27     (11) program ability to provide data related to learner 
171.28  outcomes as required by law; and 
171.29     (12) a copy of the memorandum of understanding described in 
171.30  subdivision 1 submitted to the commissioner.  
171.31     (b) The commissioner may grant adult basic education funds 
171.32  to a private, nonprofit organization to provide services that 
171.33  are not offered by a district or that are supplemental to a 
171.34  district's program.  The program provided under this provision 
171.35  must be approved and funded according to the same criteria used 
171.36  for district programs. 
172.1      (c) Adult basic education programs may be approved under 
172.2   this subdivision for up to five years.  Five-year program 
172.3   approval must be granted to an applicant who has demonstrated 
172.4   the capacity to: 
172.5      (1) offer comprehensive learning opportunities and support 
172.6   service choices appropriate for and accessible to adults at all 
172.7   basic skill need levels; 
172.8      (2) provide a participatory and experiential learning 
172.9   approach based on the strengths, interests, and needs of each 
172.10  adult, that enables adults with basic skill needs to: 
172.11     (i) identify, plan for, and evaluate their own progress 
172.12  toward achieving their defined educational and occupational 
172.13  goals; 
172.14     (ii) master the basic academic reading, writing, and 
172.15  computational skills, as well as the problem-solving, decision 
172.16  making, interpersonal effectiveness, and other life and learning 
172.17  skills they need to function effectively in a changing society; 
172.18     (iii) locate and be able to use the health, governmental, 
172.19  and social services and resources they need to improve their own 
172.20  and their families' lives; and 
172.21     (iv) continue their education, if they desire, to at least 
172.22  the level of secondary school completion, with the ability to 
172.23  secure and benefit from continuing education that will enable 
172.24  them to become more employable, productive, and responsible 
172.25  citizens; 
172.26     (3) plan, coordinate, and develop cooperative agreements 
172.27  with community resources to address the needs that the adults 
172.28  have for support services, such as transportation, flexible 
172.29  course scheduling, convenient class locations, and child care; 
172.30     (4) collaborate with business, industry, labor unions, and 
172.31  employment-training agencies, as well as with family and 
172.32  occupational education providers, to arrange for resources and 
172.33  services through which adults can attain economic 
172.34  self-sufficiency; 
172.35     (5) provide sensitive and well trained adult education 
172.36  personnel who participate in local, regional, and statewide 
173.1   adult basic education staff development events to master 
173.2   effective adult learning and teaching techniques; 
173.3      (6) participate in regional adult basic education peer 
173.4   program reviews and evaluations; and 
173.5      (7) submit accurate and timely performance and fiscal 
173.6   reports; 
173.7      (8) submit accurate and timely reports related to program 
173.8   outcomes and learner follow-up information; and 
173.9      (9) spend adult basic education aid on adult basic 
173.10  education purposes only, which are specified in sections 
173.11  124D.515 to 124D.531.  
173.12     (c) The commissioner shall require each district to provide 
173.13  notification by February 1, 2001, of its intent to apply for 
173.14  funds under this section as a single district or as part of an 
173.15  identified consortium of districts.  A district receiving funds 
173.16  under this section must notify the commissioner by February 1 of 
173.17  its intent to change its application status for applications due 
173.18  the following June 1. 
173.19     Sec. 12.  Minnesota Statutes 1998, section 124D.52, 
173.20  subdivision 3, is amended to read: 
173.21     Subd. 3.  [ACCOUNTS; REVENUE; AID.] Each district, group of 
173.22  districts, or private nonprofit organization providing adult 
173.23  basic education programs must establish and maintain accounts 
173.24  separate from all other district accounts for the receipt and 
173.25  disbursement of all funds related to these programs.  All 
173.26  revenue received pursuant to this section must be utilized 
173.27  solely for the purposes of adult basic education programs.  
173.28  Federal and state aid plus levy must not equal more than 100 
173.29  percent of the actual cost unreimbursed expenses of providing 
173.30  these programs, excluding in-kind costs.  
173.31     Sec. 13.  Minnesota Statutes 1998, section 124D.52, is 
173.32  amended by adding a subdivision to read: 
173.33     Subd. 6.  [COOPERATIVE ENGLISH AS A SECOND LANGUAGE AND 
173.34  ADULT BASIC EDUCATION PROGRAMS.] (a) A school district, or adult 
173.35  basic education consortium that receives revenue under section 
173.36  124D.531, may deliver English as a second language, citizenship, 
174.1   or other adult education programming in collaboration with 
174.2   community-based and nonprofit organizations located within its 
174.3   district or region, and with correctional institutions.  The 
174.4   organization or correctional institution must have the 
174.5   demonstrated capacity to offer education programs for adults.  
174.6   Community-based or nonprofit organizations must meet the 
174.7   criteria in paragraph (b), or have prior experience.  A 
174.8   community-based or nonprofit organization or a correctional 
174.9   institution may be reimbursed for unreimbursed expenses as 
174.10  defined in section 124D.515, subdivision 5, for the 
174.11  administration of English as a second language or adult basic 
174.12  education programs, not to exceed eight percent of the total 
174.13  funds provided by a school district or adult basic education 
174.14  consortium.  The administrative reimbursement for a school 
174.15  district or adult basic education consortium that delivers 
174.16  services cooperatively with a community-based or nonprofit 
174.17  organization or correctional institution is limited to five 
174.18  percent of the program aid, not to exceed the unreimbursed 
174.19  expenses of administering programs delivered by community-based 
174.20  or nonprofit organizations or correctional institutions.  
174.21     (b) A community-based organization or nonprofit 
174.22  organization that delivers education services under this section 
174.23  must demonstrate that it has met the following criteria: 
174.24     (1) be legally established as a nonprofit organization; 
174.25     (2) have an established system for fiscal accounting and 
174.26  reporting that is consistent with the department of children, 
174.27  families, and learning's adult basic education completion report 
174.28  and reporting requirements under section 124D.531; 
174.29     (3) require all instructional staff to complete a training 
174.30  course in teaching adult learners; and 
174.31     (4) develop a learning plan for each student that 
174.32  identifies defined educational and occupational goals with 
174.33  measures to evaluate progress.  
174.34     Sec. 14.  [124D.521] [CONSORTIUM REQUIREMENTS.] 
174.35     Each consortium, as defined under section 124D.515, 
174.36  subdivision 1, must meet at least twice per year to develop and 
175.1   amend as necessary an annual consortium agreement signed by all 
175.2   members and filed with the department of children, families, and 
175.3   learning that at a minimum includes:  
175.4      (1) a description of the members and fiscal agent of the 
175.5   consortium; 
175.6      (2) a description of the contributions of each member of 
175.7   the consortium and the process for distributing state aid among 
175.8   the members; and 
175.9      (3) the state adult basic education assurances from the 
175.10  annual adult basic education program application. 
175.11     As a condition of membership in a consortium, each member 
175.12  must make a documented contribution toward the cost of adult 
175.13  basic education programming, either as a direct financial 
175.14  contribution, or an in-kind contribution. 
175.15     Each consortium's designated fiscal agent must: 
175.16     (1) collect data from consortium members; 
175.17     (2) submit required performance reports and fiscal reports 
175.18  to the state; 
175.19     (3) receive state adult basic education aid under section 
175.20  124D.531 for adult basic education programming delivered by the 
175.21  consortium; and 
175.22     (4) distribute state adult basic education aid to members 
175.23  of the consortium according to the consortium agreement under 
175.24  sources. 
175.25     Sec. 15.  [124D.522] [ADULT BASIC EDUCATION SUPPLEMENTAL 
175.26  SERVICE GRANTS.] 
175.27     (a) The commissioner, in consultation with the policy 
175.28  review task force under section 124D.521, may make grants to 
175.29  nonprofit organizations to provide services that are not offered 
175.30  by a district adult basic education program or that are 
175.31  supplemental to either the statewide adult basic education 
175.32  program, or a district's adult basic education program.  The 
175.33  commissioner may make grants for:  staff development for adult 
175.34  basic education teachers and administrators; training for 
175.35  volunteer tutors; training, services, and materials for serving 
175.36  disabled students through adult basic education programs; 
176.1   statewide promotion of adult basic education services and 
176.2   programs; development and dissemination of instructional and 
176.3   administrative technology for adult basic education programs; 
176.4   programs delivered by communities of color; adult basic 
176.5   education distance learning projects, including television 
176.6   instruction programs; and other supplemental services to support 
176.7   the mission of adult basic education and innovative delivery of 
176.8   adult basic education services.  
176.9      (b) The commissioner must establish eligibility criteria 
176.10  and grant application procedures.  Grants under this section 
176.11  must support services throughout the state, focus on educational 
176.12  results for adult learners, and promote outcome-based 
176.13  achievement through adult basic education programs.  The 
176.14  commissioner may make grants under this section from funds 
176.15  specifically appropriated for supplemental service grants.  Up 
176.16  to one-third of the appropriation for supplemental service 
176.17  grants must be used for grants for adult basic education 
176.18  programs to encourage and support innovations in adult basic 
176.19  education instruction and service delivery.  A grant to a single 
176.20  organization must be for two years or less and cannot exceed 
176.21  $100,000.  Nothing in this section prevents an approved adult 
176.22  basic education program from using state or federal aid to 
176.23  purchase supplemental services. 
176.24     Sec. 16.  Minnesota Statutes 1999 Supplement, section 
176.25  124D.53, subdivision 3, is amended to read: 
176.26     Subd. 3.  [AID.] For fiscal year 2000, adult basic 
176.27  education aid for each approved program equals $2,295 for fiscal 
176.28  year 2000 and $2,338 for fiscal year 2001 and later fiscal 
176.29  years $1,767 times the number of full-time equivalent students 
176.30  in its adult basic education program during the first prior 
176.31  program year. 
176.32     Sec. 17.  [124D.531] [ADULT BASIC EDUCATION AID.] 
176.33     Subdivision 1.  [STATE TOTAL ADULT BASIC EDUCATION AID.] (a)
176.34  The state total adult basic education aid for fiscal year 2001 
176.35  equals $30,207,000.  The state total adult basic education aid 
176.36  for later years equals: 
177.1      (1) the state total adult basic education aid for the 
177.2   preceding fiscal year; times 
177.3      (2) the lesser of: 
177.4      (i) 1.08, or 
177.5      (ii) the greater of 1.00 or the ratio of the state total 
177.6   contact hours in the first prior program year to the state total 
177.7   contact hours in the second prior program year. 
177.8      (b) The state total adult basic education aid, excluding 
177.9   basic population aid, equals the difference between the amount 
177.10  computed in paragraph (a), and the state total basic population 
177.11  aid under subdivision 2. 
177.12     Subd. 2.  [BASIC POPULATION AID.] A district is eligible 
177.13  for basic population aid if the district has a basic service 
177.14  level approved by the commissioner under section 124D.52, 
177.15  subdivision 5, or is a member of a consortium with an approved 
177.16  basic service level.  Basic population aid is equal to the 
177.17  greater of $4,000 or $1.80 times the population of the district. 
177.18  District population is determined according to section 275.14. 
177.19     Subd. 3.  [PROGRAM REVENUE.] Adult basic education programs 
177.20  established under section 124D.52 and approved by the 
177.21  commissioner are eligible for revenue under this subdivision.  
177.22  For fiscal year 2001 and later, adult basic education revenue 
177.23  for each approved program equals the sum of: 
177.24     (1) the basic population aid under subdivision 2 for 
177.25  districts participating in the program during the current 
177.26  program year; plus 
177.27     (2)(i) for fiscal year 2001, 84 percent times the amount 
177.28  computed in subdivision 1, paragraph (b), times the ratio of the 
177.29  contact hours for students participating in the program during 
177.30  the first prior program year to the state total contact hours 
177.31  during the first prior program year; plus 
177.32     (ii) for fiscal year 2002, 84 percent times the amount 
177.33  computed in subdivision 1, paragraph (b), times the ratio of the 
177.34  contact hours for students participating in the program during 
177.35  the first and second prior program years to the state total 
177.36  contact hours during the first and second prior program years; 
178.1   plus 
178.2      (iii) for fiscal year 2003, and thereafter, 84 percent 
178.3   times the amount computed in subdivision 1, paragraph (b), times 
178.4   the ratio of the contact hours for students participating in the 
178.5   program during the first, second, and third prior program years 
178.6   to the state total contact hours during the first, second, and 
178.7   third prior program years; plus 
178.8      (3) eight percent times the amount computed in subdivision 
178.9   1, paragraph (b), times the ratio of the enrollment of students 
178.10  with limited English proficiency during the prior school year in 
178.11  districts participating in the program during the current 
178.12  program year to the state total enrollment of students with 
178.13  limited English proficiency during the prior school year in 
178.14  districts participating in adult basic education programs during 
178.15  the current program year; plus 
178.16     (4) eight percent times the amount computed in subdivision 
178.17  1, paragraph (b), times the ratio of the latest federal census 
178.18  count of the number of adults aged 20 or older with no diploma 
178.19  residing in the districts participating in the program during 
178.20  the current program year to the latest federal census count of 
178.21  the state total number of adults aged 20 or older with no 
178.22  diploma residing in the districts participating in adult basic 
178.23  education programs during the current program year. 
178.24     Subd. 4.  [ADULT BASIC EDUCATION PROGRAM AID LIMIT.] (a) 
178.25  Notwithstanding subdivisions 2 and 3, the total adult basic 
178.26  education aid for a program per prior year contact hour must not 
178.27  exceed four times the rate per prior year contact hour computed 
178.28  under subdivision 3, clause (2). 
178.29     (b) For fiscal year 2002 and later, the aid for a program 
178.30  under subdivision 3, clause (2), adjusted for changes in program 
178.31  membership, must not exceed the aid for that program under 
178.32  subdivision 3, clause (2), for the first preceding fiscal year 
178.33  by more than the greater of 20 percent or $20,000. 
178.34     (c) Adult basic education aid is payable to a program for 
178.35  unreimbursed costs. 
178.36     Subd. 5.  [INSTITUTIONAL PROGRAMS.] Notwithstanding section 
179.1   124D.531, for fiscal year 2001 only, adult basic education aid 
179.2   for an approved program in its first year of operation that 
179.3   provides adult basic education services at a newly constructed 
179.4   correctional facility equals the product of the number of 
179.5   contact hours during the current program year, times 1.08, times 
179.6   the rate per contact hour established under section 124D.531, 
179.7   subdivision 3, clause (2). 
179.8      Subd. 6.  [AID GUARANTEE.] Notwithstanding subdivisions 1, 
179.9   3, and 4, for fiscal year 2001, any adult basic education 
179.10  program qualifying for aid under this section, that receives 
179.11  less state aid than in fiscal year 2000 must receive additional 
179.12  aid equal to the difference between its fiscal year 2000 aid and 
179.13  its fiscal year 2001 aid. 
179.14     Subd. 7.  [PAYMENT OF AID TO FISCAL AGENT.] Adult basic 
179.15  education aid must be paid directly to the fiscal agent of each 
179.16  approved program.  An approved program must have only one fiscal 
179.17  agent. 
179.18     Subd. 8.  [PROGRAM AUDITS.] Programs that receive aid under 
179.19  this section must maintain records that support the aid 
179.20  payments.  The commissioner may audit these records upon 
179.21  request.  The commissioner must establish procedures for 
179.22  conducting fiscal audits of adult basic education programs 
179.23  according to the schedule in this subdivision.  In fiscal year 
179.24  2002, the commissioner must audit all approved adult basic 
179.25  education programs that received aid for fiscal year 2001.  
179.26  Beginning with fiscal year 2003, the commissioner must, at a 
179.27  minimum, audit each adult basic education program once every 
179.28  five years.  The commissioner must establish procedures to 
179.29  reconcile any discrepancies between aid payments based on 
179.30  information reported to the commissioner and aid estimates based 
179.31  on a program audit. 
179.32     Subd. 9.  [ADMINISTRATIVE CAP.] A consortium or district 
179.33  shall not spend more than five percent of the consortium or 
179.34  district's total adult basic education aid on administrative 
179.35  costs. 
179.36     Subd. 10.  [FISCAL REPORTS.] Programs that receive aid 
180.1   under this section must submit an annual report to the 
180.2   commissioner that includes revenue and expense reports for each 
180.3   district and program, including instructional services offered 
180.4   in partnership with businesses and nonprofit organizations. 
180.5      <h>EFFECTIVE DATE:</h>  This section is effective for revenue for 
180.6   fiscal years beginning with 2001. 
180.7      Sec. 18.  Minnesota Statutes 1998, section 245A.14, 
180.8   subdivision 4, is amended to read: 
180.9      Subd. 4.  [SPECIAL FAMILY DAY CARE HOMES.] Nonresidential 
180.10  child care programs serving 14 or fewer children that are 
180.11  conducted at a location other than the license holder's own 
180.12  residence shall be licensed under this section and the rules 
180.13  governing family day care or group family day care if:  
180.14     (a) the license holder is the primary provider of care and 
180.15  the nonresidential child care program is conducted in a dwelling 
180.16  that is located on a residential lot; or 
180.17     (b) the license holder is an employer who may or may not be 
180.18  the primary provider of care, and the purpose for the child care 
180.19  program is to provide child care services to children of the 
180.20  license holder's employees; or 
180.21     (c) the license holder is a church or religious 
180.22  organization. 
180.23     Sec. 19.  Minnesota Statutes 1998, section 245A.14, is 
180.24  amended by adding a subdivision to read: 
180.25     Subd. 8.  [EXPERIENCED AIDES; CHILD CARE CENTERS.] (a) An 
180.26  individual employed as an aide at a child care center may work 
180.27  with children without being directly supervised for up to 25 
180.28  percent of the individual's daily work shift if: 
180.29     (1) a teacher is in the building; 
180.30     (2) the individual has received first aid training within 
180.31  the last three years; and 
180.32     (3) the individual is at least 20 years old and has at 
180.33  least 4,160 hours of child care experience as defined in section 
180.34  245A.02, subdivision 6b. 
180.35     (b) The use of an experienced aide working without direct 
180.36  supervision under paragraph (a) is limited to 25 percent of each 
181.1   classrooms' daily hours of operation. 
181.2      (c) A child care center that utilizes experienced aides 
181.3   under this subdivision must notify the parents or guardians of 
181.4   the children who are cared for under this subdivision, and must 
181.5   send a duplicate letter to the commissioner of human services, 
181.6   licensing division.  The notice must provide the approximate 
181.7   number of hours per classroom per month that this subdivision is 
181.8   utilized. 
181.9      (d) This subdivision sunsets June 30, 2002. 
181.10     Sec. 20.  Laws 1998, First Special Session chapter 1, 
181.11  article 1, section 10, is amended to read: 
181.12     Sec. 10.  [HOUSEHOLD ELIGIBILITY; PARTICIPATION.] 
181.13     Subdivision 1.  [INITIAL ELIGIBILITY.] To be eligible for 
181.14  state or TANF matching funds in the family assets for 
181.15  independence initiative, a household must have income at or 
181.16  below 185 percent of the federal poverty level and assets of 
181.17  $15,000 or less.  An individual who is a dependent of another 
181.18  person for federal income tax purposes may not be a separate 
181.19  eligible household for purposes of establishing a family asset 
181.20  account.  An individual who is a debtor for a judgment resulting 
181.21  from nonpayment of a court-ordered child support obligation may 
181.22  not participate in this program.  Households accessing TANF 
181.23  matching funds are subject to the MFIP definition of household 
181.24  under Minnesota Statutes, section 256J.08, subdivision 46.  
181.25  Income and assets are determined according to eligibility 
181.26  guidelines for the energy assistance program meet the 
181.27  eligibility requirements of the federal Assets for Independence 
181.28  Act, Public Law Number 105-285, in title IV, section 408, of 
181.29  that act. 
181.30     Sec. 21.  Laws 1998, First Special Session chapter 1, 
181.31  article 1, section 11, is amended to read: 
181.32     Sec. 11.  [WITHDRAWAL; MATCHING; PERMISSIBLE USES.] 
181.33     Subdivision 1.  [WITHDRAWAL OF FUNDS.] To receive a match, 
181.34  a participating household must transfer funds withdrawn from a 
181.35  family asset account to its matching fund custodial account held 
181.36  by the fiscal agent, according to the family asset agreement.  
182.1   The fiduciary organization fiscal agent must determine if the 
182.2   match request is for a permissible use consistent with the 
182.3   household's family asset agreement. 
182.4      The fiscal agent must ensure the household's custodial 
182.5   account contains the applicable matching funds to match the 
182.6   balance in the household's account, including interest, on at 
182.7   least a quarterly basis and at the time of an approved 
182.8   withdrawal.  Matches must be provided as follows: 
182.9      (1) from state grant and TANF funds a matching contribution 
182.10  of $1.50 for every $1 of funds withdrawn from the family asset 
182.11  account equal to the lesser of $720 per year or a $3,000 
182.12  lifetime limit; and 
182.13     (2) from nonstate funds, a matching contribution of no less 
182.14  than $1.50 for every $1 of funds withdrawn from the family asset 
182.15  account equal to the lesser of $720 per year or a $3,000 
182.16  lifetime limit. 
182.17     Sec. 22.  Laws 1999, chapter 205, article 1, section 65, is 
182.18  amended to read: 
182.19     Sec. 65.  [ADDITIONAL EARLY CHILDHOOD FAMILY EDUCATION AID; 
182.20  FISCAL YEAR 2000 AND FISCAL YEAR 2001.] 
182.21     A district that complies with Minnesota Statutes, section 
182.22  124D.13, shall receive additional early childhood family 
182.23  education aid for fiscal year 2000 and fiscal year 2001 equal to 
182.24  $2.46 times the greater of: 
182.25     (1) 150; or 
182.26     (2) the number of people under five years of age residing 
182.27  in the school district on October 1 of the previous school 
182.28  year.  The additional early childhood family education aid may 
182.29  be used only for early childhood family education programs. 
182.30     Sec. 23.  Laws 1999, chapter 205, article 1, section 71, 
182.31  subdivision 3, is amended to read: 
182.32     Subd. 3.  [EARLY CHILDHOOD FAMILY EDUCATION AID.] For early 
182.33  childhood family education aid according to Minnesota Statutes, 
182.34  section 124D.135: 
182.35       $20,485,000 $20,109,000   .....     2000 
182.36       $19,420,000 $21,107,000   .....     2001
183.1      The 2000 appropriation includes $1,390,000 for 1999 and 
183.2   $19,095,000 $18,719,000 for 2000.  
183.3      The 2001 appropriation includes $2,122,000 $2,079,000 for 
183.4   2000 and $17,298,000 $19,028,000 for 2001.  
183.5      Any balance in the first year does not cancel but is 
183.6   available in the second year. 
183.7      Sec. 24.  Laws 1999, chapter 205, article 1, section 71, 
183.8   subdivision 7, is amended to read: 
183.9      Subd. 7.  [SCHOOL AGE CARE AID.] For extended day aid 
183.10  according to Minnesota Statutes, section 124D.22: 
183.11       $274,000       .....     2000 
183.12       $216,000 $245,000       .....     2001
183.13     The 2000 appropriation includes $30,000 for 1999 and 
183.14  $244,000 for 2000. 
183.15     The 2001 appropriation includes $27,000 for 2000 and 
183.16  $189,000 $218,000 for 2001. 
183.17     Any balance in the first year does not cancel but is 
183.18  available in the second year. 
183.19     Sec. 25.  Laws 1999, chapter 205, article 1, section 71, 
183.20  subdivision 9, is amended to read: 
183.21     Subd. 9.  [MFIP CHILD CARE.] For child care assistance 
183.22  according to Minnesota Statutes, section 119B.05: 
183.23       $86,318,000 $66,524,000    .....     2000 
183.24       $88,443,000 $78,606,000    .....     2001
183.25     Any balance in the first year does not cancel but is 
183.26  available in the second year. 
183.27     Sec. 26.  Laws 1999, chapter 205, article 2, section 4, 
183.28  subdivision 3, is amended to read: 
183.29     Subd. 3.  [COMMUNITY EDUCATION AID.] For community 
183.30  education aid according to Minnesota Statutes, section 124D.20: 
183.31       $14,136,000    .....     2000 
183.32       $14,696,000 $15,274,000    .....     2001 
183.33     The 2000 appropriation includes $160,000 for 1999 and 
183.34  $13,976,000 for 2000.  
183.35     The 2001 appropriation includes $1,552,000 for 2000 and 
183.36  $13,144,000 $13,722,000 for 2001.  
184.1      Any balance in the first year does not cancel but is 
184.2   available in the second year. 
184.3      Sec. 27.  Laws 1999, chapter 205, article 4, section 12, 
184.4   subdivision 5, is amended to read: 
184.5      Subd. 5.  [ADULT BASIC EDUCATION AID.] For adult basic 
184.6   education aid according to Minnesota Statutes, section 124D.52, 
184.7   in fiscal year 2000 and Minnesota Statutes, section 124D.53 in 
184.8   fiscal year 2001:  
184.9        $20,132,000    .....     2000
184.10       $22,477,000 $29,168,000   .....     2001 
184.11     The 2000 appropriation includes $1,227,000 for 1999 and 
184.12  $18,905,000 for 2000.  
184.13     The 2001 appropriation includes $2,101,000 for 2000 and 
184.14  $20,376,000 $27,067,000 for 2001.  
184.15     Sec. 28.  Laws 1999, chapter 205, article 4, section 12, 
184.16  subdivision 6, is amended to read: 
184.17     Subd. 6.  [ADULT BASIC EDUCATION BASIC POPULATION AID.] For 
184.18  basic population aid for eligible districts under section 7: 
184.19       $1,960,000 $1,974,000     .....     2000 
184.20     Notwithstanding Minnesota Statutes, section 127A.45, 
184.21  subdivision 12, 100 percent of this appropriation is for fiscal 
184.22  year 2000. 
184.23     Any balance in the first year does not cancel but is 
184.24  available in the second year.  This is a one-time appropriation. 
184.25     Sec. 29.  Laws 1999, chapter 205, article 4, section 12, 
184.26  subdivision 7, is amended to read: 
184.27     Subd. 7.  [ADULT GRADUATION AID.] For adult graduation aid 
184.28  according to Minnesota Statutes, section 124D.54: 
184.29       $3,184,000 $2,760,000     .....     2000
184.30       $4,732,000 $3,031,000     .....     2001
184.31     The 2000 appropriation includes $258,000 $258,000 for 1999 
184.32  and $2,926,000 $2,502,000 for 2000.  
184.33     The 2001 appropriation includes $325,000 $278,000 for 2000 
184.34  and $4,407,000 $2,753,000 for 2001. 
184.35     Sec. 30.  [COMPETENCY-BASED ADULT BASIC EDUCATION AND 
184.36  ENGLISH AS A SECOND LANGUAGE LICENSE.] 
185.1      The board of teaching must convene a task force to develop 
185.2   a competency-based license for teachers of adult basic education 
185.3   classes and English as a second language class.  The 
185.4   competency-based license must be an alternative to the current 
185.5   licensing requirements.  By January 15, 2002, the board of 
185.6   teaching must present their recommendations to the committees of 
185.7   the legislature responsible for teacher licensing and funding of 
185.8   adult basic education programs, including recommendations for 
185.9   implementing competency-based licensing for teachers of adult 
185.10  learners. 
185.11     Sec. 31.  [ADULT BASIC EDUCATION POLICY TASK FORCE.] 
185.12     Subdivision 1.  [ESTABLISHMENT.] A nine-member adult basic 
185.13  education policy task force shall recommend to the legislature 
185.14  on program and funding policies for adult basic education 
185.15  programs that receive aid under Minnesota Statutes, section 
185.16  124D.531.  The commissioner of children, families, and learning 
185.17  shall appoint task force members.  Members do not receive per 
185.18  diem, but may be reimbursed for expenses as specified in 
185.19  Minnesota Statutes, section 15.059, subdivision 3.  All other 
185.20  matters of the task force's operation, except expiration of the 
185.21  board under subdivision 4, are governed by Minnesota Statutes, 
185.22  section 15.069. 
185.23     Subd. 2.  [MEMBERSHIP.] Members are appointed by the 
185.24  commissioner of children, families, and learning.  The 
185.25  commissioner must appoint two members of the task force from 
185.26  rural programs, two members from suburban programs, two members 
185.27  from urban programs, one member from a nonprofit group that has 
185.28  knowledge and expertise in the area of adult literacy, one 
185.29  member who is currently an adult basic education learner or has 
185.30  participated in an adult basic education program, and one member 
185.31  who is an adult basic education instructor.  The composition of 
185.32  the task force must allow for equal representation from adult 
185.33  basic education learners, instructors, and administrators. 
185.34     Subd. 3.  [DUTIES.] The task force must: 
185.35     (1) recommend to the legislature a mission statement for a 
185.36  statewide system of adult basic education programs that includes 
186.1   educational outcomes, services, eligible learners, requirements 
186.2   for teacher licensing, expectations for student advancement and 
186.3   progress, and recognition of the importance of distance learning 
186.4   and other technology-based instruction methods; 
186.5      (2) recommend to the legislature the minimum number of 
186.6   contact hours that are necessary in order for the program to 
186.7   continue; 
186.8      (3) recommend to the legislature an adequate and reasonable 
186.9   hourly rate for smaller programs; 
186.10     (4) recommend to the legislature a reasonable range for the 
186.11  number of instructional hours or a reasonable cap on the number 
186.12  of hours individuals may spend in adult basic education 
186.13  instruction; 
186.14     (5) recommend to the legislature an outcome-based adult 
186.15  basic education funding system that rewards and recognizes 
186.16  student progress in attaining educational goals; and 
186.17     (6) review statewide grant applications for supplemental 
186.18  services under Minnesota Statutes, section 124D.522. 
186.19     Subd. 4.  [EXPIRATION.] The adult basic education policy 
186.20  task force expires on January 2, 2001. 
186.21     Sec. 32.  [ADULT BASIC EDUCATION CONSORTIUM DISTRIBUTION TO 
186.22  MEMBERS.] 
186.23     Consortiums receiving additional funding based on 
186.24  population aid shall proportionately distribute that additional 
186.25  funding to noneducation institution members of the consortium 
186.26  based upon the percentage of contact hours each noneducation 
186.27  institution member provides.  This provision shall be effective 
186.28  through June 30, 2001. 
186.29     Sec. 33.  [ENERGY ASSISTANCE PROGRAM.] 
186.30     (a) The commissioner of economic security shall establish 
186.31  policies and procedures to address the findings in the 
186.32  department of administration's evaluation of Minnesota's energy 
186.33  assistance program published in December 1999. 
186.34     (b) The commissioner of economic security shall develop: 
186.35     (1) outcome measures, in accordance with federal 
186.36  recommendations, by which to evaluate subgrantee performance and 
187.1   the program as a whole; 
187.2      (2) methods to identify the eligible population for the 
187.3   energy assistance program; 
187.4      (3) procedures to improve program consistency across the 
187.5   state.  This shall address program start and end dates, 
187.6   eligibility determination, eligibility verification, and 
187.7   application and payment processing times; and 
187.8      (4) improved internal management practices.  This includes 
187.9   program oversight, evaluation and auditing of the service 
187.10  delivery agencies, computer software system, and overall 
187.11  management.  The report shall also include proposals for the 
187.12  utilization of technology to provide for the most cost-effective 
187.13  service delivery. 
187.14     Sec. 34.  [FEDERAL TANF APPROPRIATIONS.] 
187.15     Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
187.16  LEARNING.] The sums indicated in this section are appropriated 
187.17  from the federal TANF block grant fund to the commissioner of 
187.18  children, families, and learning for the fiscal years 
187.19  indicated.  These amounts are available until expended and may 
187.20  be carried forward and spent in the 2002-2003 biennium. 
187.21     Subd. 2.  [TRANSITIONAL HOUSING PROGRAMS.] For transitional 
187.22  housing programs according to Minnesota Statutes, section 
187.23  119A.43: 
187.24       $3,700,000     .....     2001
187.25     The amount appropriated under this subdivision does not 
187.26  cancel, but is available until expended. 
187.27     Sec. 35.  [FEDERAL TANF TRANSFERS.] 
187.28     Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
187.29  LEARNING.] The sums indicated in this section are transferred 
187.30  from the federal TANF fund to the child care and development 
187.31  fund and appropriated to the commissioner of children, families, 
187.32  and learning for the fiscal year designated.  The commissioner 
187.33  shall ensure that all transferred funds are expended in 
187.34  accordance with the child care and development fund regulations 
187.35  and that the maximum allowable transferred funds are used for 
187.36  the program in this section. 
188.1      Subd. 2.  [BASIC SLIDING FEE CHILD CARE.] For child care 
188.2   assistance according to Minnesota Statutes, section 119B.03: 
188.3       $11,789,000     .....     2001
188.4       $ 5,888,000     .....     2002
188.5       $ 2,488,000     .....     2003
188.6      The amounts appropriated under this subdivision do not 
188.7   cancel, but are available until expended. 
188.8      Subd. 3.  [MFIP SOCIAL SERVICE CHILD CARE.] For social 
188.9   service child care costs of eligible MFIP participants according 
188.10  to Minnesota Statutes, section 119B.05: 
188.11       $3,233,000     .....     2001
188.12       $3,297,000     .....     2002
188.13       $2,865,000     .....     2003
188.14     This amount shall be added to the federal TANF block grant 
188.15  base with regard to this program. 
188.16     Subd. 4.  [MFIP EDUCATION CHILD CARE.] For child care costs 
188.17  related to the possible modifications to Minnesota Statutes, 
188.18  section 256J.522, made in the 2000 legislative session in the 
188.19  health and family security omnibus bill, which allows 24 months 
188.20  of education to eligible MFIP participants under certain 
188.21  circumstances.  If the changes to Minnesota Statutes, section 
188.22  256J.522, relating to 24 months of education do not pass into 
188.23  law, the money appropriated under this subdivision shall revert 
188.24  to the basic sliding fee program under subdivision 2, for fiscal 
188.25  year 2001: 
188.26         $600,000     .....     2001
188.27     Subd. 5.  [TRANSITION YEAR FAMILIES.] To provide 
188.28  uninterrupted assistance under Minnesota Statutes, section 
188.29  119B.03, for families completing transition year child care 
188.30  assistance: 
188.31       $1,080,000     .....     2001
188.32       $3,620,000     .....     2002
188.33       $4,040,000     .....     2003
188.34     A balance may be carried forward one fiscal year.  Any 
188.35  amount remaining in fiscal year 2003 that is not needed for 
188.36  uninterrupted child care must be used for assistance under 
189.1   Minnesota Statutes, section 119B.03. 
189.2      Sec. 36.  [GENERAL FUND APPROPRIATIONS.] 
189.3      Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
189.4   LEARNING.] The sums indicated in this section are appropriated 
189.5   from the general fund to the commissioner of children, families, 
189.6   and learning for the fiscal years designated.  The amounts are 
189.7   available until expended and may be carried forward to the 
189.8   2002-2003 biennium. 
189.9      Subd. 2.  [ADULT BASIC EDUCATION SUPPLEMENTAL SERVICE 
189.10  GRANTS.] For adult basic education supplemental service grants 
189.11  according to Minnesota Statutes, section 124D.522: 
189.12       $700,000     .....     2001 
189.13     This appropriation is added to the base for fiscal years 
189.14  2002 and 2003. 
189.15     Subd. 3.  [ADULT BASIC ADMINISTRATION.] For the adult basic 
189.16  policy review task force under Minnesota Statutes, section 
189.17  124D.521, and for administration of the state adult basic 
189.18  education program including auditing, technical assistance, and 
189.19  reporting requirements under this act: 
189.20       $100,000     .....     2001 
189.21     This appropriation is added to the fiscal year 2002 and 
189.22  2003 base. 
189.23     Subd. 4.  [CITIZENSHIP PROMOTION.] For the citizenship 
189.24  promotion program under Laws 1997, chapter 162, article 2, 
189.25  section 32: 
189.26       $350,000     .....     2001
189.27     Subd. 5.  [ADULTS WITH DISABILITIES.] For purposes of the 
189.28  adults with disabilities pilot programs under Laws 1997, chapter 
189.29  162, article 2, section 31, subdivision 4: 
189.30       $40,000     .....     2001
189.31     Subd. 6.  [EMERGENCY SERVICES.] For emergency services 
189.32  grants according to Laws 1997, chapter 162, article 3, section 7:
189.33       $1,477,000     .....     2001
189.34     Sec. 37.  [REPORT.] 
189.35     The commissioner of economic security shall submit a report 
189.36  to the legislature detailing the costs and benefits of operating 
190.1   the energy assistance program.  The report shall be submitted to 
190.2   the senate jobs, energy and community development committee, and 
190.3   the house jobs and economic development policy committee by 
190.4   January 30, 2001. 
190.5      Sec. 38.  [TRANSFER OF ENERGY ASSISTANCE AND WEATHERIZATION 
190.6   RESPONSIBILITIES.] 
190.7      Energy assistance and weatherization responsibilities under 
190.8   Minnesota Statutes, sections 119A.40, 119A.41, 119A.42, and 
190.9   119A.425, are transferred from the department of children, 
190.10  families, and learning to the department of economic security.  
190.11     Sec. 39.  [INSTRUCTION TO REVISOR.] 
190.12     The revisor of statutes shall renumber each section of 
190.13  Minnesota Statutes listed in column A with the number listed in 
190.14  column B.  The revisor shall also make necessary cross-reference 
190.15  changes consistent with the renumbering. 
190.16            column A        column B 
190.17            119A.40         268.985 
190.18            119A.41         268.986 
190.19            119A.42         268.987 
190.20            119A.425        268.989 
190.21     Sec. 40.  [REPEALER.] 
190.22     Minnesota Statutes 1998, section 124D.53, subdivisions 1, 
190.23  2, and 5, are repealed.  Minnesota Statutes 1999 Supplement, 
190.24  section 124D.53, subdivision 4, is repealed.  Laws 1998, First 
190.25  Special Session chapter 1, article 1, section 10, subdivision 2, 
190.26  is repealed. 
190.27     Sec. 41.  [EFFECTIVE DATE.] 
190.28     Sections 33 and 37 to 39 are effective the day following 
190.29  final enactment.