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.40, 
  1.36            subdivisions 1, 2, and 3; 126C.69, subdivision 15; 
  1.37            127A.05, subdivision 4; 127A.41, subdivisions 8 and 9; 
  1.38            128D.11, subdivision 3; 136A.125, by adding a 
  1.39            subdivision; 169.447, by adding a subdivision; 
  1.40            169.448, subdivision 3; 171.06, subdivision 2; 
  1.41            171.321; 245A.14, subdivision 4, and by adding a 
  1.42            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.23; 122A.31, subdivisions 1 and 2; 122A.61, 
  2.2             subdivision 1; 123A.05, subdivision 2; 123B.54; 
  2.3             123B.83, subdivision 4; 123B.90, subdivision 2; 
  2.4             123B.91, subdivision 1; 124D.10, subdivisions 3, 4, 8, 
  2.5             11, 15, and 23; 124D.11, subdivisions 1, 4, and 6; 
  2.6             124D.128, subdivision 2; 124D.221, subdivision 2; 
  2.7             124D.53, subdivision 3; 124D.84, subdivision 1; 
  2.8             124D.86, subdivisions 1 and 3; 124D.87; 124D.88, 
  2.9             subdivision 3; 125A.023, subdivisions 3 and 5; 
  2.10            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            121A; 123B; 124D; 125B; and 126C; repealing Minnesota 
  2.38            Statutes 1998, sections 120A.41; and 124D.53, 
  2.39            subdivisions 1, 2, and 5; Minnesota Statutes 1999 
  2.40            Supplement, sections 124D.1155, subdivision 5; and 
  2.41            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      <b>EFFECTIVE DATE:</b>  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     <b>EFFECTIVE DATE:</b>  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     <b>EFFECTIVE DATE:</b>  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      <b>EFFECTIVE DATE:</b>  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     <b>EFFECTIVE DATE:</b>  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     <b>EFFECTIVE DATE:</b>  This section is effective for revenue in 
 12.26  fiscal year 2000. 
 12.27     Sec. 21.  Minnesota Statutes 1999 Supplement, section 
 12.28  126C.17, subdivision 9, is amended to read: 
 12.29     Subd. 9.  [REFERENDUM REVENUE.] (a) The revenue authorized 
 12.30  by section 126C.10, subdivision 1, may be increased in the 
 12.31  amount approved by the voters of the district at a referendum 
 12.32  called for the purpose.  The referendum may be called by the 
 12.33  board or shall be called by the board upon written petition of 
 12.34  qualified voters of the district.  The referendum must be 
 12.35  conducted one or two calendar years before the increased levy 
 12.36  authority, if approved, first becomes payable.  Only one 
 13.1   election to approve an increase may be held in a calendar year.  
 13.2   Unless the referendum is conducted by mail under paragraph (g), 
 13.3   the referendum must be held on the first Tuesday after the first 
 13.4   Monday in November.  The ballot must state the maximum amount of 
 13.5   the increased revenue per resident marginal cost pupil unit, the 
 13.6   estimated referendum tax rate as a percentage of referendum 
 13.7   market value in the first year it is to be levied, and that the 
 13.8   revenue must be used to finance school operations.  The ballot 
 13.9   may state a schedule, determined by the board, of increased 
 13.10  revenue per resident marginal cost pupil units unit that differs 
 13.11  from year to year over the number of years for which the 
 13.12  increased revenue is authorized.  If the ballot contains a 
 13.13  schedule showing different amounts, it must also indicate the 
 13.14  estimated referendum tax rate as a percent of referendum market 
 13.15  value for the amount specified for the first year and for the 
 13.16  maximum amount specified in the schedule.  The ballot may state 
 13.17  that existing referendum levy authority is expiring.  In this 
 13.18  case, the ballot may also compare the proposed levy authority to 
 13.19  the existing expiring levy authority, and express the proposed 
 13.20  increase as the amount, if any, over the expiring referendum 
 13.21  levy authority.  The ballot must designate the specific number 
 13.22  of years, not to exceed ten, for which the referendum 
 13.23  authorization applies.  The notice required under section 275.60 
 13.24  may be modified to read, in cases of renewing existing levies: 
 13.25     "BY VOTING "YES" ON THIS BALLOT QUESTION, YOU MAY BE VOTING 
 13.26     FOR A PROPERTY TAX INCREASE." 
 13.27     The ballot may contain a textual portion with the 
 13.28  information required in this subdivision and a question stating 
 13.29  substantially the following:  
 13.30     "Shall the increase in the revenue proposed by (petition 
 13.31  to) the board of ........., School District No. .., be approved?"
 13.32     If approved, an amount equal to the approved revenue per 
 13.33  resident marginal cost pupil unit times the resident marginal 
 13.34  cost pupil units for the school year beginning in the year after 
 13.35  the levy is certified shall be authorized for certification for 
 13.36  the number of years approved, if applicable, or until revoked or 
 14.1   reduced by the voters of the district at a subsequent referendum.
 14.2      (b) The board must prepare and deliver by first class mail 
 14.3   at least 15 days but no more than 30 days before the day of the 
 14.4   referendum to each taxpayer a notice of the referendum and the 
 14.5   proposed revenue increase.  The board need not mail more than 
 14.6   one notice to any taxpayer.  For the purpose of giving mailed 
 14.7   notice under this subdivision, owners must be those shown to be 
 14.8   owners on the records of the county auditor or, in any county 
 14.9   where tax statements are mailed by the county treasurer, on the 
 14.10  records of the county treasurer.  Every property owner whose 
 14.11  name does not appear on the records of the county auditor or the 
 14.12  county treasurer is deemed to have waived this mailed notice 
 14.13  unless the owner has requested in writing that the county 
 14.14  auditor or county treasurer, as the case may be, include the 
 14.15  name on the records for this purpose.  The notice must project 
 14.16  the anticipated amount of tax increase in annual dollars and 
 14.17  annual percentage for typical residential homesteads, 
 14.18  agricultural homesteads, apartments, and commercial-industrial 
 14.19  property within the school district. 
 14.20     The notice for a referendum may state that an existing 
 14.21  referendum levy is expiring and project the anticipated amount 
 14.22  of increase over the existing referendum levy in the first year, 
 14.23  if any, in annual dollars and annual percentage for typical 
 14.24  residential homesteads, agricultural homesteads, apartments, and 
 14.25  commercial-industrial property within the district. 
 14.26     The notice must include the following statement:  "Passage 
 14.27  of this referendum will result in an increase in your property 
 14.28  taxes."  However, in cases of renewing existing levies, the 
 14.29  notice may include the following statement:  "Passage of this 
 14.30  referendum may result in an increase in your property taxes." 
 14.31     (c) A referendum on the question of revoking or reducing 
 14.32  the increased revenue amount authorized pursuant to paragraph 
 14.33  (a) may be called by the board and shall be called by the board 
 14.34  upon the written petition of qualified voters of the district.  
 14.35  A referendum to revoke or reduce the levy amount must be based 
 14.36  upon the dollar amount, local tax rate, or amount per resident 
 15.1   marginal cost pupil unit, that was stated to be the basis for 
 15.2   the initial authorization.  Revenue approved by the voters of 
 15.3   the district pursuant to paragraph (a) must be received at least 
 15.4   once before it is subject to a referendum on its revocation or 
 15.5   reduction for subsequent years.  Only one revocation or 
 15.6   reduction referendum may be held to revoke or reduce referendum 
 15.7   revenue for any specific year and for years thereafter. 
 15.8      (d) A petition authorized by paragraph (a) or (c) is 
 15.9   effective if signed by a number of qualified voters in excess of 
 15.10  15 percent of the registered voters of the district on the day 
 15.11  the petition is filed with the board.  A referendum invoked by 
 15.12  petition must be held on the date specified in paragraph (a). 
 15.13     (e) The approval of 50 percent plus one of those voting on 
 15.14  the question is required to pass a referendum authorized by this 
 15.15  subdivision. 
 15.16     (f) At least 15 days before the day of the referendum, the 
 15.17  district must submit a copy of the notice required under 
 15.18  paragraph (b) to the commissioner and to the county auditor of 
 15.19  each county in which the district is located.  Within 15 days 
 15.20  after the results of the referendum have been certified by the 
 15.21  board, or in the case of a recount, the certification of the 
 15.22  results of the recount by the canvassing board, the district 
 15.23  must notify the commissioner of the results of the referendum. 
 15.24     (g) Except for a referendum held under subdivision 11, any 
 15.25  referendum under this section held on a day other than the first 
 15.26  Tuesday after the first Monday in November must be conducted by 
 15.27  mail in accordance with section 204B.46.  Notwithstanding 
 15.28  paragraph (b) to the contrary, in the case of a referendum 
 15.29  conducted by mail under this paragraph, the notice required by 
 15.30  paragraph (b) must be prepared and delivered by first class mail 
 15.31  at least 20 days before the referendum. 
 15.32     Sec. 22.  [126C.37.] [SECONDARY VOCATIONAL REVENUE 
 15.33  RESERVE.] 
 15.34     Subdivision 1.  [RESERVE REVENUE.] For fiscal year 2001 and 
 15.35  later, a district must reserve an amount equal to the number of 
 15.36  adjusted marginal cost pupil units times the amount of secondary 
 16.1   vocational aid, according to section 124D.453, paid to the 
 16.2   district in fiscal year 2000, divided by the district's adjusted 
 16.3   marginal cost pupil units for fiscal year 2000.  A school board 
 16.4   may vote to not reserve secondary vocational aid as determined 
 16.5   by this section. 
 16.6      Subd. 2.  [REVENUE USE.] Revenue must be used for: 
 16.7      (1) salaries paid to essential, licensed personnel 
 16.8   providing direct instructional services to students in that 
 16.9   fiscal year for services rendered in the district's approved 
 16.10  career and technical education programs; 
 16.11     (2) contracted services provided by a public or private 
 16.12  agency other than a Minnesota school district or cooperative 
 16.13  center; 
 16.14     (3) necessary travel between instructional sites by 
 16.15  licensed career and technical education personnel; 
 16.16     (4) necessary travel by licensed career and technical 
 16.17  education personnel for vocational student organization 
 16.18  activities held within the state for instructional purposes; 
 16.19     (5) curriculum development activities that are part of a 
 16.20  five-year plan for improvement based on program assessment; 
 16.21     (6) necessary travel by licensed career and technical 
 16.22  education personnel for noncollegiate credit bearing 
 16.23  professional development; or 
 16.24     (7) specialized vocational instructional supplies and 
 16.25  equipment. 
 16.26     Sec. 23.  Minnesota Statutes 1999 Supplement, section 
 16.27  127A.45, subdivision 12a, is amended to read: 
 16.28     Subd. 12a.  [FORWARD SHIFTED AID PAYMENTS.] (a) Nineteen 
 16.29  percent of the state aid in fiscal year 1999, and 31 percent of 
 16.30  the state aid in fiscal years 2000 and later received under 
 16.31  section 124D.86 must be paid by the state to the recipient 
 16.32  school district on July 15 of that year.  The recipient school 
 16.33  district must recognize this aid in the same fiscal year as the 
 16.34  levy is recognized. 
 16.35     (b) One hundred percent of the state aid in fiscal years 
 16.36  2003 and later received under section 124D.87 must be paid by 
 17.1   the state to the recipient school district on August 30 of that 
 17.2   year.  The recipient school district must recognize this aid in 
 17.3   the previous fiscal year. 
 17.4      Sec. 24.  Minnesota Statutes 1999 Supplement, section 
 17.5   127A.51, is amended to read: 
 17.6      127A.51 [STATEWIDE AVERAGE REVENUE.] 
 17.7      By October 1 of each year the commissioner must estimate 
 17.8   the statewide average adjusted general revenue per adjusted 
 17.9   marginal cost pupil unit and the disparity in adjusted general 
 17.10  revenue among pupils and districts by computing the ratio of the 
 17.11  ninety-fifth percentile to the fifth percentile of adjusted 
 17.12  general revenue.  The commissioner must provide that information 
 17.13  to all districts. 
 17.14     If the disparity in adjusted general revenue as measured by 
 17.15  the ratio of the ninety-fifth percentile to the fifth percentile 
 17.16  increases in any year, the commissioner shall recommend to the 
 17.17  legislature options for change in the general education formula 
 17.18  that will limit the disparity in adjusted general revenue to no 
 17.19  more than the disparity for the previous school year.  The 
 17.20  commissioner must submit the recommended options to the 
 17.21  education committees of the legislature by January 15. 
 17.22     For purposes of this section and section 126C.10, adjusted 
 17.23  general revenue means the sum of basic revenue under section 
 17.24  126C.10, subdivision 2; supplemental revenue under section 
 17.25  126C.10, subdivisions 9 and 12; transition revenue under section 
 17.26  126C.10, subdivision 20; and referendum revenue under section 
 17.27  126C.17. 
 17.28     Sec. 25.  Minnesota Statutes 1998, section 128D.11, 
 17.29  subdivision 3, is amended to read: 
 17.30     Subd. 3.  [NO ELECTION.] Subject to the provisions of 
 17.31  subdivisions 7 to 10, the school district may also by a 
 17.32  two-thirds majority vote of all the members of its board of 
 17.33  education and without any election by the voters of the 
 17.34  district, issue and sell in each calendar year general 
 17.35  obligation bonds of the district in an amount not to exceed 
 17.36  5-1/10 per cent of the net tax capacity of the taxable property 
 18.1   in the district (plus, for calendar years 1990 to 2003 2008, an 
 18.2   amount not to exceed $7,500,000 $15,000,000; with an additional 
 18.3   provision that any amount of bonds so authorized for sale in a 
 18.4   specific year and not sold can be carried forward and sold in 
 18.5   the year immediately following).  
 18.6      Sec. 26.  Laws 1992, chapter 499, article 7, section 32, is 
 18.7   amended to read: 
 18.8      Sec. 32.  [EFFECTIVE DATE.] 
 18.9      Sections 1, 9, 14, 18, 19, 20, 21, 22, 23, and 30 are 
 18.10  effective the day following final enactment.  Sections 4 to 8 
 18.11  are effective for revenue for fiscal year 2000 2002. 
 18.12     Sec. 27.  Laws 1992, chapter 499, article 7, section 31, as 
 18.13  amended by Laws 1998, chapter 398, article 1, section 39, and 
 18.14  Laws 1999, chapter 241, article 1, section 31, is amended to 
 18.15  read: 
 18.16     Sec. 31.  [REPEALER.] 
 18.17     Minnesota Statutes 1990, sections 124A.02, subdivision 24; 
 18.18  124A.23, subdivisions 2 and 3; 124A.26, subdivisions 2 and 3; 
 18.19  124A.27; 124A.28; and 124A.29, subdivision 2; and Minnesota 
 18.20  Statutes 1991 Supplement, sections 124A.02, subdivisions 16 and 
 18.21  23; 124A.03, subdivisions 1b, 1c, 1d, 1e, 1f, 1g, 1h, and 1i; 
 18.22  124A.04; 124A.22, subdivisions 2, 3, 4, 4a, 4b, 8, and 9; 
 18.23  124A.23, subdivisions 1, 4, and 5; 124A.24; 124A.26, subdivision 
 18.24  1; and 124A.29, subdivision 1, are repealed effective June 30, 
 18.25  2001 2004; Laws 1991, chapter 265, article 7, section 35, is 
 18.26  repealed. 
 18.27     Sec. 28.  Laws 1999, chapter 241, article 1, section 68, 
 18.28  subdivision 2, is amended to read: 
 18.29     Subd. 2.  [GENERAL AND SUPPLEMENTAL EDUCATION AID.] For 
 18.30  general and supplemental education aid:  
 18.31   $3,062,321,000 $3,066,166,000    .....     2000
 18.32   $3,160,518,000 $3,261,304,000    .....     2001
 18.33     The 2000 appropriation includes $272,186,000 for 1999 and 
 18.34  $2,790,135,000 $2,793,980,000 for 2000.  
 18.35     The 2001 appropriation includes $310,015,000 $310,442,000 
 18.36  for 2000 and $2,850,503,000 $2,950,862,000 for 2001.  
 19.1      Sec. 29.  Laws 1999, chapter 241, article 1, section 68, 
 19.2   subdivision 4, is amended to read: 
 19.3      Subd. 4.  [TRANSPORTATION AID FOR ENROLLMENT OPTIONS.] For 
 19.4   transportation of pupils attending post-secondary institutions 
 19.5   according to Minnesota Statutes, section 124D.09, or for 
 19.6   transportation of pupils attending nonresident districts 
 19.7   according to Minnesota Statutes, section 124D.03: 
 19.8        $102,000 $70,000      .....     2000
 19.9        $102,000 $70,000      .....     2001
 19.10     Any balance in the first year does not cancel but is 
 19.11  available in the second year. 
 19.12     Sec. 30.  Laws 1999, chapter 241, article 1, section 68, 
 19.13  subdivision 5, is amended to read: 
 19.14     Subd. 5.  [DISTRICT COOPERATION REVENUE.] For district 
 19.15  cooperation revenue aid: 
 19.16       $5,940,000 $5,881,000    .....     2000
 19.17       $  563,000 $  556,000    .....     2001
 19.18     The 2000 appropriation includes $869,000 for 1999 and 
 19.19  $5,071,000 $5,012,000 for 2000. 
 19.20     The 2001 appropriation includes $563,000 $556,000 for 2000 
 19.21  and $0 for 2001. 
 19.22     Sec. 31.  [FISCAL YEARS 2003 TO 2007 AIRPORT RUNWAY IMPACT 
 19.23  PUPIL UNIT AID; RICHFIELD.] 
 19.24     Subdivision 1.  [AIRPORT IMPACT ZONE PUPIL UNITS, 
 19.25  DEFINITION.] For the purposes of this section, "airport impact 
 19.26  zone pupil units" means the number of pupil units, according to 
 19.27  Minnesota Statutes 1999 Supplement, section 126C.05, subdivision 
 19.28  1, in school year 1998-1999 that were attributable to the 
 19.29  airport impact zone, as defined in Laws 1999, chapter 243, 
 19.30  article 16, section 35, subdivision 1. 
 19.31     Subd. 2.  [FISCAL YEAR 2003.] For fiscal year 2003 only, 
 19.32  independent school district No. 280, Richfield, is eligible for 
 19.33  declining pupil unit aid equal to the product of 70 percent of 
 19.34  the airport impact zone pupil units times the general education 
 19.35  formula allowance for fiscal year 2003. 
 19.36     Subd. 3.  [FISCAL YEAR 2004.] For fiscal year 2004 only, 
 20.1   independent school district No. 280, Richfield, is eligible for 
 20.2   declining pupil unit aid equal to the product of 70 percent of 
 20.3   the airport impact zone pupil units times the general education 
 20.4   formula allowance for fiscal year 2004. 
 20.5      Subd. 4.  [FISCAL YEAR 2005.] For fiscal year 2005 only, 
 20.6   independent school district No. 280, Richfield, is eligible for 
 20.7   declining pupil unit aid equal to the product of 52.5 percent of 
 20.8   the airport impact zone pupil units times the general education 
 20.9   formula allowance for fiscal year 2005. 
 20.10     Subd. 5.  [FISCAL YEAR 2006.] For fiscal year 2006 only, 
 20.11  independent school district No. 280, Richfield, is eligible for 
 20.12  declining pupil unit aid equal to the product of 35 percent of 
 20.13  the airport impact zone pupil units times the general education 
 20.14  formula allowance for fiscal year 2006. 
 20.15     Subd. 6.  [FISCAL YEAR 2007.] For fiscal year 2007 only, 
 20.16  independent school district No. 280, Richfield, is eligible for 
 20.17  declining pupil unit aid equal to the product of 17.5 percent of 
 20.18  the airport impact zone pupil units times the general education 
 20.19  formula allowance for fiscal year 2007. 
 20.20     <b>EFFECTIVE DATE:</b>  This section is effective the day 
 20.21  following final enactment. 
 20.22     Sec. 32.  [LEVY RECOGNITION FOR INTEGRATION LEVY 
 20.23  ADJUSTMENT.] 
 20.24     Notwithstanding Minnesota Statutes, section 123B.75, 
 20.25  subdivision 5, the full amount of integration levy for taxes 
 20.26  payable in 2001, attributable to fiscal year 2001, for school 
 20.27  districts receiving revenue under Minnesota Statutes, section 
 20.28  124D.86, subdivision 3, clause (4), shall be recognized in 
 20.29  fiscal year 2001. 
 20.30     Sec. 33.  [DIRECTION TO THE DEPARTMENT.] 
 20.31     For the purposes of providing aid to independent school 
 20.32  district No. 508, St. Peter, under Laws 1999, chapter 241, 
 20.33  article 4, section 22, the department of children, families, and 
 20.34  learning shall make appropriate weighting adjustments to fiscal 
 20.35  year 1997 pupil units to reflect the impact of Minnesota 
 20.36  Statutes, section 126C.05, subdivision 5, paragraph (b), and 
 21.1   subdivision 6, paragraph (b). 
 21.2      Sec. 34.  [SPARSITY CORRECTION REVENUE.] 
 21.3      Subdivision 1.  [QUALIFICATION FOR REVENUE.] A school 
 21.4   district qualifies for sparsity correction revenue if it 
 21.5   qualifies for sparsity revenue, according to Minnesota Statutes, 
 21.6   section 126C.10, subdivisions 7 and 8, in fiscal year 2000 or 
 21.7   2001 and the amount of sparsity revenue it received in those 
 21.8   years is less than the amount it would have received in fiscal 
 21.9   year 2000 or 2001 prior to the passage of Laws 1999, chapter 
 21.10  241, article 1, sections 18 and 19. 
 21.11     Subd. 2.  [FISCAL YEAR 2000 CALCULATION.] For fiscal year 
 21.12  2000, a school district's sparsity correction revenue equals the 
 21.13  difference between sparsity revenue in fiscal year 2000 
 21.14  calculated according to Laws 1999, chapter 241, article 1, 
 21.15  sections 18 and 19, and the sparsity revenue the district would 
 21.16  have received for fiscal year 2000 had these sections of law not 
 21.17  been approved. 
 21.18     Subd. 3.  [FISCAL YEAR 2001 CALCULATION.] For fiscal year 
 21.19  2001, a school district's sparsity correction revenue equals .5 
 21.20  times the difference between sparsity revenue in fiscal year 
 21.21  2001 calculated according to Laws 1999, chapter 241, article 1, 
 21.22  sections 18 and 19, and the sparsity revenue the district would 
 21.23  have received for fiscal year 2001 had these sections of law not 
 21.24  been approved. 
 21.25     Sec. 35.  [MARGINAL COST IMPACT AID.] 
 21.26     School districts that have fewer marginal cost pupil units 
 21.27  as a result of the changes to Minnesota Statutes, section 
 21.28  126C.05, subdivisions 5 and 6, in this bill are eligible for 
 21.29  marginal cost impact revenue.  For fiscal year 2001 only, the 
 21.30  marginal cost impact aid for an eligible district equals the 
 21.31  difference between the general education and referendum revenue 
 21.32  the district would have received based on the marginal cost 
 21.33  pupil units defined in Minnesota Statutes 1999 Supplement, 
 21.34  section 126C.05, subdivisions 5 and 6, and the marginal cost 
 21.35  pupil units computed according to sections 12 and 13. 
 21.36     Sec. 36.  [SEVERANCE LEVY; MESABI EAST.] 
 22.1      Independent school district No. 2711, Mesabi East, may levy 
 22.2   an amount up to $250,000 each year for a period of five years 
 22.3   for severance and early retirement incentives for licensed 
 22.4   employees who have retired early as a result of the district's 
 22.5   combination that was effective July 1, 1991. 
 22.6      <b>EFFECTIVE DATE:</b>  This section is effective for taxes 
 22.7   payable in 2001 and later years. 
 22.8      Sec. 37.  [METRO EQUITY AID.] 
 22.9      For fiscal year 2001 only, a district that is located in 
 22.10  the metro equity district according to Minnesota Statutes, 
 22.11  section 126C.10, subdivision 28, and qualifies for equity 
 22.12  revenue under Minnesota Statutes, section 126C.10, subdivision 
 22.13  10, shall receive $40 times the district equity index under 
 22.14  Minnesota Statutes, section 126C.10, subdivision 27, times its 
 22.15  adjusted marginal cost pupil units. 
 22.16     Sec. 38.  [APPROPRIATIONS.] 
 22.17     Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
 22.18  LEARNING.] The sums indicated in this section are appropriated 
 22.19  from the general fund to the department of children, families, 
 22.20  and learning for the fiscal years designated. 
 22.21     Subd. 2.  [MARGINAL COST IMPACT AID.] For marginal cost 
 22.22  impact aid: 
 22.23       $4,025,000     .....     2001
 22.24     Subd. 3.  [SPARSITY CORRECTION REVENUE.] For sparsity 
 22.25  correction revenue: 
 22.26       $1,030,000     .....     2000
 22.27       $  515,000     .....     2001
 22.28     Subd. 4.  [METRO EQUITY AID.] For metro equity aid: 
 22.29       $9,281,000     .....     2001
 22.30                             ARTICLE 2 
 22.31                          SPECIAL PROGRAMS 
 22.32     Section 1.  Minnesota Statutes 1999 Supplement, section 
 22.33  122A.31, subdivision 1, is amended to read: 
 22.34     Subdivision 1.  [REQUIREMENTS FOR AMERICAN SIGN 
 22.35  LANGUAGE/ENGLISH INTERPRETERS.] In addition to any other 
 22.36  requirements that a school district establishes, any person 
 23.1   employed to provide American sign language/English interpreting 
 23.2   or sign transliterating services on a full-time or part-time 
 23.3   basis for a school district after July 1, 2000 2001, must: 
 23.4      (1) hold current interpreter and transliterator 
 23.5   certificates awarded by the Registry of Interpreters for the 
 23.6   Deaf (RID), or the general level interpreter proficiency 
 23.7   certificate awarded by the National Association of the Deaf, or 
 23.8   a comparable state certification from the commissioner of 
 23.9   children, families, and learning; and 
 23.10     (2) satisfactorily complete an interpreter/transliterator 
 23.11  training program affiliated with an accredited educational 
 23.12  institution. 
 23.13     Sec. 2.  Minnesota Statutes 1999 Supplement, section 
 23.14  122A.31, subdivision 2, is amended to read: 
 23.15     Subd. 2.  [ORAL OR CUED SPEECH TRANSLITERATORS.] In 
 23.16  addition to any other requirements that a school district 
 23.17  establishes, any person employed to provide oral transliterating 
 23.18  or cued speech transliterating services on a full-time or 
 23.19  part-time basis for a school district after July 1, 2000 2001, 
 23.20  must hold a current applicable transliterator certificate 
 23.21  awarded by the national certifying association or comparable 
 23.22  state certification from the commissioner of children, families, 
 23.23  and learning. 
 23.24     Sec. 3.  Minnesota Statutes 1999 Supplement, section 
 23.25  123A.05, subdivision 2, is amended to read: 
 23.26     Subd. 2.  [RESERVE REVENUE.] Each district that is a member 
 23.27  of an area learning center must reserve revenue in an amount 
 23.28  equal to at least 90 percent of the district average general 
 23.29  education revenue per pupil unit, or for a private area learning 
 23.30  center that provides chemical treatment services to students, 
 23.31  the district must reserve 100 percent of the district average 
 23.32  general education revenue per pupil unit, minus an amount equal 
 23.33  to the product of the formula allowance according to section 
 23.34  126C.10, subdivision 2, times .0485, calculated without basic 
 23.35  skills revenue, transportation sparsity revenue, and the 
 23.36  transportation portion of the transition revenue adjustment, 
 24.1   times the number of pupil units attending an area learning 
 24.2   center program under this section.  The amount of reserved 
 24.3   revenue under this subdivision may only be spent on program 
 24.4   costs associated with the area learning center.  Compensatory 
 24.5   revenue must be allocated according to section 126C.15, 
 24.6   subdivision 2. 
 24.7      Sec. 4.  Minnesota Statutes 1999 Supplement, section 
 24.8   124D.84, subdivision 1, is amended to read: 
 24.9      Subdivision 1.  [AWARDS.] The commissioner, with the advice 
 24.10  and counsel of the Minnesota Indian scholarship committee, may 
 24.11  award scholarships to any Minnesota resident student who is of 
 24.12  one-fourth or more Indian ancestry, who has applied for other 
 24.13  existing state and federal scholarship and grant programs, and 
 24.14  who, in the opinion of the commissioner, has the capabilities to 
 24.15  benefit from further education.  Scholarships must be 
 24.16  for advanced or specialized education accredited degree programs 
 24.17  in accredited colleges or universities or for courses in 
 24.18  accredited or approved colleges or in business, technical or 
 24.19  vocational schools.  Scholarships shall be used to defray the 
 24.20  total cost of education including tuition, incidental fees, 
 24.21  books, supplies, transportation, other related school costs and 
 24.22  the cost of board and room and shall be paid directly to the 
 24.23  college or school concerned.  The total cost of education 
 24.24  includes all tuition and fees for each student enrolling in a 
 24.25  public institution and the portion of tuition and fees for each 
 24.26  student enrolling in a private institution that does not exceed 
 24.27  the tuition and fees at a comparable public institution.  Each 
 24.28  student shall be awarded a scholarship based on the total cost 
 24.29  of the student's education and a standardized need analysis.  
 24.30  The amount and type of each scholarship shall be determined 
 24.31  through the advice and counsel of the Minnesota Indian 
 24.32  scholarship committee.  
 24.33     When an Indian student satisfactorily completes the work 
 24.34  required by a certain college or school in a school year the 
 24.35  student is eligible for additional scholarships, if additional 
 24.36  training is necessary to reach the student's educational and 
 25.1   vocational objective.  Scholarships may not be given to any 
 25.2   Indian student for more than five years of study without special 
 25.3   approval of the Minnesota Indian scholarship committee.  
 25.4      Sec. 5.  Minnesota Statutes 1999 Supplement, section 
 25.5   124D.88, subdivision 3, is amended to read: 
 25.6      Subd. 3.  [GRANT APPLICATION PROCESS.] (a) Any group of 
 25.7   school districts that meets the criteria required under 
 25.8   paragraph (b)(1) may apply for a magnet school grant in an 
 25.9   amount not to exceed $20,800,000 for the approved costs or 
 25.10  expansion of a magnet school facility. 
 25.11     (b)(1) Any group of districts that submits an application 
 25.12  for a grant shall submit a proposal to the commissioner for 
 25.13  review and comment under section 123B.71, and the commissioner 
 25.14  shall prepare a review and comment on the proposed magnet school 
 25.15  facility, regardless of the amount of the capital expenditure 
 25.16  required to design, acquire, construct, remodel, improve, 
 25.17  furnish, or equip the facility.  The commissioner must not 
 25.18  approve an application for a magnet school grant for any 
 25.19  facility unless the facility receives a favorable review and 
 25.20  comment under section 123B.71 and the participating districts: 
 25.21     (i) establish a joint powers board under section 471.59 to 
 25.22  represent all participating districts and govern the magnet 
 25.23  school facility; 
 25.24     (ii) design the planned magnet school facility to meet the 
 25.25  applicable requirements contained in Minnesota Rules, chapter 
 25.26  3535; 
 25.27     (iii) submit a statement of need, including reasons why the 
 25.28  magnet school will facilitate integration and improve learning; 
 25.29     (iv) prepare an educational plan that includes input from 
 25.30  both community and professional staff; and 
 25.31     (v) develop an education program that will improve learning 
 25.32  opportunities for students attending the magnet school. 
 25.33     (2) The districts may develop a plan that permits social 
 25.34  service, health, and other programs serving students and 
 25.35  community residents to be located within the magnet school 
 25.36  facility.  The commissioner shall consider this plan when 
 26.1   preparing a review and comment on the proposed facility.  
 26.2      (c) When two or more districts enter into an agreement 
 26.3   establishing a joint powers board to govern the magnet school 
 26.4   facility, all member districts shall have the same powers.  
 26.5      (d) A joint powers board of participating school districts 
 26.6   established under paragraphs (b) and (c) that intends to apply 
 26.7   for a grant must adopt a resolution stating the costs of the 
 26.8   proposed project, the purpose for which the debt is to be 
 26.9   incurred, and an estimate of the dates when the contracts for 
 26.10  the proposed project will be completed.  A copy of the 
 26.11  resolution must accompany any application for a state grant 
 26.12  under this section. 
 26.13     (e)(1) The commissioner shall examine and consider all 
 26.14  grant applications.  If the commissioner finds that any joint 
 26.15  powers district is not a qualified grant applicant, the 
 26.16  commissioner shall promptly notify that joint powers board.  The 
 26.17  commissioner shall make awards to no more than two qualified 
 26.18  applicants whose applications have been on file with the 
 26.19  commissioner more than 30 days.  
 26.20     (2) A grant award is subject to verification by the joint 
 26.21  powers board under paragraph (f).  A grant award must not be 
 26.22  made until the participating districts determine the site of the 
 26.23  magnet school facility.  If the total amount of the approved 
 26.24  applications exceeds the amount of grant funding that is or can 
 26.25  be made available, the commissioner shall allot the available 
 26.26  amount equally between the approved applicant districts.  The 
 26.27  commissioner shall promptly certify to each qualified joint 
 26.28  powers board the amount, if any, of the grant awarded to it. 
 26.29     (f) Each grant must be evidenced by a contract between the 
 26.30  joint powers board and the state acting through the 
 26.31  commissioner.  The contract obligates the state to pay to the 
 26.32  joint powers board an amount computed according to paragraph 
 26.33  (e)(2) and a schedule, and terms and conditions acceptable to 
 26.34  the commissioner of finance. 
 26.35     (g) Notwithstanding the provisions of section 123B.02, 
 26.36  subdivision 3, the joint powers and its individual members may 
 27.1   enter into long-term lease agreements as part of the magnet 
 27.2   school program.  
 27.3      <b>EFFECTIVE DATE:</b>  This section is effective the day 
 27.4   following final enactment. 
 27.5      Sec. 6.  Minnesota Statutes 1998, section 124D.88, is 
 27.6   amended by adding a subdivision to read: 
 27.7      Subd. 4.  [START-UP COSTS.] During the first two years of a 
 27.8   metropolitan magnet school's operation, the school is eligible 
 27.9   for aid to pay for start-up costs and additional operating 
 27.10  costs.  Start-up cost aid equals $500 times the magnet school's 
 27.11  pupil units served for that year. 
 27.12     Sec. 7.  Minnesota Statutes 1998, section 124D.892, 
 27.13  subdivision 3, is amended to read: 
 27.14     Subd. 3.  [ADVISORY BOARD.] The commissioner shall 
 27.15  establish an advisory board composed of: 
 27.16     (1) eight nine superintendents, each of whom eight shall be 
 27.17  selected by the superintendents of the school districts located 
 27.18  in whole or in part within each of the eight metropolitan 
 27.19  districts established under section 473.123, subdivision 3c, and 
 27.20  one superintendent of a district outside the seven-county 
 27.21  metropolitan area and is from a district that is considered 
 27.22  racially isolated or has a racially isolated school site 
 27.23  according to Minnesota Rules, part 3535.0110; and 
 27.24     (2) one person each selected by the Indian affairs council, 
 27.25  the council on Asian-Pacific Minnesotans, the council on Black 
 27.26  Minnesotans, and the council on affairs of Chicano/Latino 
 27.27  people; and 
 27.28     (3) the superintendent of independent school district No. 
 27.29  709, Duluth. 
 27.30     The advisory board shall advise the office on complying 
 27.31  with the requirements under subdivision 1.  The advisory board 
 27.32  may solicit comments from teachers, parents, students, and 
 27.33  interested community organizations and others. 
 27.34     Sec. 8.  Minnesota Statutes 1999 Supplement, section 
 27.35  125A.027, subdivision 3, is amended to read: 
 27.36     Subd. 3.  [IMPLEMENTATION TIMELINE.] By July 1, 2000, the 
 28.1   individual interagency intervention plan must be available and 
 28.2   by January 1, 2001, all governing boards of interagency early 
 28.3   intervention committees statewide must implement a coordinated 
 28.4   service system for children up to age five with disabilities 
 28.5   consistent with the requirements of this section and section 
 28.6   125A.023 and the evaluation results from the demonstration 
 28.7   projects under section 125A.023, subdivision 5.  Children with 
 28.8   disabilities up to the age of 21 shall be eligible for 
 28.9   coordinated services and their eligibility to receive such 
 28.10  services under this section shall be phased in over a four-year 
 28.11  period as follows: 
 28.12     (1) July 1, 2001, children up to age nine become eligible; 
 28.13     (2) July 1, 2002, children up to age 14 become eligible; 
 28.14  and 
 28.15     (3) July 1, 2003, children up to age 21 become eligible. 
 28.16     Sec. 9.  Minnesota Statutes 1999 Supplement, section 
 28.17  125A.51, is amended to read: 
 28.18     125A.51 [PLACEMENT OF CHILDREN WITHOUT DISABILITIES; 
 28.19  EDUCATION AND TRANSPORTATION.] 
 28.20     The responsibility for providing instruction and 
 28.21  transportation for a pupil without a disability who has a 
 28.22  short-term or temporary physical or emotional illness or 
 28.23  disability, as determined by the standards of the commissioner, 
 28.24  and who is temporarily placed for care and treatment for that 
 28.25  illness or disability, must be determined as provided in this 
 28.26  section.  
 28.27     (a) The school district of residence of the pupil is the 
 28.28  district in which the pupil's parent or guardian resides. 
 28.29     (b) When parental rights have been terminated by court 
 28.30  order, the legal residence of a child placed in a residential or 
 28.31  foster facility for care and treatment is the district in which 
 28.32  the child resides when parental rights have been terminated. 
 28.33     (c) Before the placement of a pupil for care and treatment, 
 28.34  the district of residence must be notified and provided an 
 28.35  opportunity to participate in the placement decision.  When an 
 28.36  immediate emergency placement is necessary and time does not 
 29.1   permit resident district participation in the placement 
 29.2   decision, the district in which the pupil is temporarily placed, 
 29.3   if different from the district of residence, must notify the 
 29.4   district of residence of the emergency placement within 15 days 
 29.5   of the placement.  
 29.6      (d) When a pupil without a disability is temporarily placed 
 29.7   for care and treatment in a day program and the pupil continues 
 29.8   to live within the district of residence during the care and 
 29.9   treatment, the district of residence must provide instruction 
 29.10  and necessary transportation to and from the treatment facility 
 29.11  for the pupil.  Transportation shall only be provided by the 
 29.12  district during regular operating hours of the district.  The 
 29.13  district may provide the instruction at a school within the 
 29.14  district of residence, at the pupil's residence, or in the case 
 29.15  of a placement outside of the resident district, in the district 
 29.16  in which the day treatment program is located by paying tuition 
 29.17  to that district.  The district of placement may contract with a 
 29.18  facility to provide instruction by teachers licensed by the 
 29.19  state board of teaching.  
 29.20     (e) When a pupil without a disability is temporarily placed 
 29.21  in a residential program for care and treatment, the district in 
 29.22  which the pupil is placed must provide instruction for the pupil 
 29.23  and necessary transportation while the pupil is receiving 
 29.24  instruction, and in the case of a placement outside of the 
 29.25  district of residence, the nonresident district must bill the 
 29.26  district of residence for the actual cost of providing the 
 29.27  instruction for the regular school year and for summer school, 
 29.28  excluding transportation costs.  When a pupil without a 
 29.29  disability is temporarily placed in a residential program 
 29.30  outside the district of residence, the administrator of the 
 29.31  court placing the pupil must send timely written notice of the 
 29.32  placement to the district of residence.  The district of 
 29.33  placement may contract with a residential facility to provide 
 29.34  instruction by teachers licensed by the state board of teaching. 
 29.35  For purposes of this section, the state correctional facilities 
 29.36  operated on a fee-for-service basis are considered to be 
 30.1   residential programs for care and treatment. 
 30.2      (f) The district of residence must include the pupil in its 
 30.3   residence count of pupil units and pay tuition as provided in 
 30.4   section 123A.488 to the district providing the instruction.  
 30.5   Transportation costs must be paid by the district providing the 
 30.6   transportation and the state must pay transportation aid to that 
 30.7   district.  For purposes of computing state transportation aid, 
 30.8   pupils governed by this subdivision must be included in the 
 30.9   disabled transportation category.  
 30.10     Sec. 10.  Minnesota Statutes 1999 Supplement, section 
 30.11  125A.76, subdivision 1, is amended to read: 
 30.12     Subdivision 1.  [DEFINITIONS.] For the purposes of this 
 30.13  section, the definitions in this subdivision apply. 
 30.14     (a) "Base year" for fiscal year 1998 and later fiscal years 
 30.15  means the second fiscal year preceding the fiscal year for which 
 30.16  aid will be paid. 
 30.17     (b) "Basic revenue" has the meaning given it in section 
 30.18  126C.10, subdivision 2.  For the purposes of computing basic 
 30.19  revenue pursuant to this section, each child with a disability 
 30.20  shall be counted as prescribed in section 126C.05, subdivision 1.
 30.21     (c) "Essential personnel" means teachers, related services, 
 30.22  and support services staff providing direct services to students.
 30.23     (d) "Average daily membership" has the meaning given it in 
 30.24  section 126C.05. 
 30.25     (e) "Program growth factor" means 1.012 1.123 for fiscal 
 30.26  year 2002, and 1.062 for fiscal year 2003 and later. 
 30.27     Sec. 11.  Minnesota Statutes 1999 Supplement, section 
 30.28  125A.76, subdivision 2, is amended to read: 
 30.29     Subd. 2.  [SPECIAL EDUCATION BASE REVENUE.] (a) The special 
 30.30  education base revenue equals the sum of the following amounts 
 30.31  computed using base year data: 
 30.32     (1) 68 percent of the salary of each essential person 
 30.33  employed in the district's program for children with a 
 30.34  disability during the fiscal year, not including the share of 
 30.35  salaries for personnel providing health-related services counted 
 30.36  in clause (8), whether the person is employed by one or more 
 31.1   districts or a Minnesota correctional facility operating on a 
 31.2   fee-for-service basis; 
 31.3      (2) for the Minnesota state academy for the deaf or the 
 31.4   Minnesota state academy for the blind, 68 percent of the salary 
 31.5   of each instructional aide assigned to a child attending the 
 31.6   academy, if that aide is required by the child's individual 
 31.7   education plan; 
 31.8      (3) for special instruction and services provided to any 
 31.9   pupil by contracting with public, private, or voluntary agencies 
 31.10  other than school districts, in place of special instruction and 
 31.11  services provided by the district, 52 percent of the difference 
 31.12  between the amount of the contract and the basic revenue of the 
 31.13  district for that pupil for the fraction of the school day the 
 31.14  pupil receives services under the contract; 
 31.15     (4) for special instruction and services provided to any 
 31.16  pupil by contracting for services with public, private, or 
 31.17  voluntary agencies other than school districts, that are 
 31.18  supplementary to a full educational program provided by the 
 31.19  school district, 52 percent of the amount of the contract for 
 31.20  that pupil; 
 31.21     (5) for supplies and equipment purchased or rented for use 
 31.22  in the instruction of children with a disability, not including 
 31.23  the portion of the expenses for supplies and equipment used to 
 31.24  provide health-related services counted in clause (8), an amount 
 31.25  equal to 47 percent of the sum actually expended by the 
 31.26  district, or a Minnesota correctional facility operating on a 
 31.27  fee-for-service basis, but not to exceed an average of $47 in 
 31.28  any one school year for each child with a disability receiving 
 31.29  instruction; 
 31.30     (6) for fiscal years 1997 and later, special education base 
 31.31  revenue shall include amounts under clauses (1) to (5) for 
 31.32  special education summer programs provided during the base year 
 31.33  for that fiscal year; and 
 31.34     (7) for fiscal years 1999 and later, the cost of providing 
 31.35  transportation services for children with disabilities under 
 31.36  section 123B.92, subdivision 1, paragraph (b), clause (4); and 
 32.1      (8) for fiscal years 2001 and later, the cost of salaries, 
 32.2   supplies and equipment, and other related costs actually 
 32.3   expended by the district for the nonfederal share of medical 
 32.4   assistance services according to section 256B.0625, subdivision 
 32.5   26. 
 32.6      The department shall establish procedures through the 
 32.7   Uniform Financial Accounting and Reporting System to identify 
 32.8   and track all revenues generated from third-party billings as 
 32.9   special education revenue at the school district level; include 
 32.10  revenue generated from third-party billings as special education 
 32.11  revenue in the annual cross subsidy report; and exclude 
 32.12  third-party revenue from calculation of excess cost aid to the 
 32.13  districts. 
 32.14     (b) If requested by a school district operating a special 
 32.15  education program during the base year for less than the full 
 32.16  fiscal year, or a school district in which is located a 
 32.17  Minnesota correctional facility operating on a fee-for-service 
 32.18  basis for less than the full fiscal year, the commissioner may 
 32.19  adjust the base revenue to reflect the expenditures that would 
 32.20  have occurred during the base year had the program been operated 
 32.21  for the full fiscal year. 
 32.22     (c) Notwithstanding paragraphs (a) and (b), the portion of 
 32.23  a school district's base revenue attributable to a Minnesota 
 32.24  correctional facility operating on a fee-for-service basis 
 32.25  during the facility's first year of operating on a 
 32.26  fee-for-service basis shall be computed using current year data. 
 32.27     Sec. 12.  Minnesota Statutes 1999 Supplement, section 
 32.28  125A.79, subdivision 1, is amended to read: 
 32.29     Subdivision 1.  [DEFINITIONS.] For the purposes of this 
 32.30  section, the definitions in this subdivision apply. 
 32.31     (a) "Unreimbursed special education cost" means the sum of 
 32.32  the following: 
 32.33     (1) expenditures for teachers' salaries, contracted 
 32.34  services, supplies, equipment, and transportation services 
 32.35  eligible for revenue under section 125A.76; plus 
 32.36     (2) expenditures for tuition bills received under sections 
 33.1   125A.03 to 125A.24 and 125A.65 for services eligible for revenue 
 33.2   under sections 125A.76, subdivision 2, and 124.3202, subdivision 
 33.3   1; minus 
 33.4      (3) revenue for teachers' salaries, contracted services, 
 33.5   supplies, and equipment under sections 124.3202 and 124A.76; 
 33.6   minus 
 33.7      (4) tuition receipts under sections 125A.03 to 125A.24 and 
 33.8   125A.65 for services eligible for revenue under sections 
 33.9   124.3202, subdivision 1, and 124A.76, subdivision 2. 
 33.10     (b) "General revenue" means for fiscal year 1996, the sum 
 33.11  of the general education revenue according to section 126C.10, 
 33.12  subdivision 1, as adjusted according to section 127A.47, 
 33.13  subdivision 7, plus the total referendum revenue according to 
 33.14  section 126C.17, subdivision 4.  For fiscal years 1997 and 
 33.15  later, "general revenue" means the sum of the general education 
 33.16  revenue according to section 126C.10, subdivision 1, as adjusted 
 33.17  according to section 127A.47, subdivisions 7 and 8, plus the 
 33.18  total referendum revenue minus transportation sparsity revenue 
 33.19  minus total operating capital revenue.  For fiscal year 2001 
 33.20  only, "general revenue" means the sum of the general education 
 33.21  revenue according to section 126C.10, subdivision 1, as adjusted 
 33.22  according to section 127A.47, subdivisions 7 and 8, plus the 
 33.23  total referendum revenue minus transportation sparsity revenue 
 33.24  minus total operating capital revenue minus training and 
 33.25  experience adjustment revenue. 
 33.26     (c) "Average daily membership" has the meaning given it in 
 33.27  section 126C.05. 
 33.28     (d) "Program growth factor" means 1.044 for fiscal year 
 33.29  2002 and 1.02 for fiscal year 2003 and later. 
 33.30     Sec. 13.  Minnesota Statutes 1999 Supplement, section 
 33.31  125A.79, subdivision 2, is amended to read: 
 33.32     Subd. 2.  [EXCESS COST AID, FISCAL YEARS 2000 AND 2001.] 
 33.33  For fiscal years 2000 and 2001, a district's special education 
 33.34  excess cost aid equals the greatest of: 
 33.35     (a) 75 percent of the difference between (1) the district's 
 33.36  unreimbursed special education cost and (2) 4.4 4.37 percent of 
 34.1   the district's general revenue; 
 34.2      (b) 70 percent of the difference between (1) the increase 
 34.3   in the district's unreimbursed special education cost between 
 34.4   the base year as defined in section 125A.76, subdivision 1, and 
 34.5   the current year and (2) 1.6 percent of the district's general 
 34.6   revenue; or 
 34.7      (c) zero. 
 34.8      Sec. 14.  Minnesota Statutes 1999 Supplement, section 
 34.9   125A.79, subdivision 5, is amended to read: 
 34.10     Subd. 5.  [INITIAL EXCESS COST AID.] For fiscal years 2002 
 34.11  and later, a district's initial excess cost aid equals the 
 34.12  greatest of: 
 34.13     (1) 75 percent of the difference between (i) the district's 
 34.14  unreimbursed special education cost and (ii) 4.4 4.7 percent of 
 34.15  the district's general revenue; 
 34.16     (2) 70 percent of the difference between (i) the increase 
 34.17  in the district's unreimbursed special education cost between 
 34.18  the base year as defined in section 125A.76, subdivision 1, and 
 34.19  the current year and (ii) 1.6 percent of the district's general 
 34.20  revenue; or 
 34.21     (3) zero. 
 34.22     Sec. 15.  Minnesota Statutes 1999 Supplement, section 
 34.23  126C.44, is amended to read: 
 34.24     126C.44 [CRIME-RELATED COSTS LEVY.] 
 34.25     Each district may make a levy on all taxable property 
 34.26  located within the district for the purposes specified in this 
 34.27  subdivision section.  The maximum amount which may be levied for 
 34.28  all costs under this subdivision section shall be equal to 
 34.29  $1.50 $14.75 multiplied by the population of the school district 
 34.30  district's adjusted marginal cost pupil units for the school 
 34.31  year.  For purposes of this subdivision, "population" of the 
 34.32  school district means the same as contained in section 275.14.  
 34.33  The proceeds of the levy must be used for directly funding the 
 34.34  following purposes or for reimbursing the cities and counties 
 34.35  who contract with the district for the following purposes:  (1) 
 34.36  to pay the costs incurred for the salaries, benefits, and 
 35.1   transportation costs of peace officers and sheriffs for liaison 
 35.2   in services in the district's middle and secondary schools; (2) 
 35.3   to pay the costs for a drug abuse prevention program as defined 
 35.4   in Minnesota Statutes 1991 Supplement, section 609.101, 
 35.5   subdivision 3, paragraph (f), in the elementary schools; (3) to 
 35.6   pay the costs for a gang resistance education training 
 35.7   curriculum in the middle district's schools; or (4) to pay the 
 35.8   costs for security in the districts' schools and on school 
 35.9   property; or (5) to pay the costs for other crime prevention 
 35.10  and, drug abuse, student and staff safety, and violence 
 35.11  prevention measures taken by the school district.  The district 
 35.12  must initially attempt to contract for services to be provided 
 35.13  by peace officers or sheriffs with the police department of each 
 35.14  city or the sheriff's department of the county within the 
 35.15  district containing the school receiving the services.  If a 
 35.16  local police department or a county sheriff's department does 
 35.17  not wish to provide the necessary services, the district may 
 35.18  contract for these services with any other police or sheriff's 
 35.19  department located entirely or partially within the school 
 35.20  district's boundaries.  The levy authorized under 
 35.21  this subdivision section is not included in determining the 
 35.22  school district's levy limitations. 
 35.23     <b>EFFECTIVE DATE:</b>  This section is effective July 1, 2000, 
 35.24  for levies for taxes payable in 2001 and later. 
 35.25     Sec. 16.  Minnesota Statutes 1999 Supplement, section 
 35.26  127A.42, subdivision 3, is amended to read: 
 35.27     Subd. 3.  [ASSURANCE OF COMPLIANCE.] (a) After consultation 
 35.28  with the commissioner of human rights, the commissioner of 
 35.29  children, families, and learning shall adopt rules in 
 35.30  conformance with chapter 14.  The rules must direct districts to 
 35.31  file with the commissioner of children, families, and learning 
 35.32  assurances of compliance with state and federal laws prohibiting 
 35.33  discrimination and specify the information required to be 
 35.34  submitted in support of the assurances.  The commissioner shall 
 35.35  provide copies of the assurances and the supportive information 
 35.36  to the commissioner of human rights The assurances must be 
 36.1   provided in a form and manner prescribed by the commissioner.  
 36.2      (b) If, after reviewing the assurances and the supportive 
 36.3   information it appears that one or more violations of the 
 36.4   Minnesota Human Rights Act are occurring in the a district, the 
 36.5   commissioner of human rights shall notify the commissioner of 
 36.6   the violations, and the commissioner of children, families, and 
 36.7   learning may then proceed pursuant to subdivision 4. 
 36.8      Sec. 17.  Laws 1999, chapter 241, article 2, section 60, 
 36.9   subdivision 7, is amended to read: 
 36.10     Subd. 7.  [TRIBAL CONTRACT SCHOOLS.] For tribal contract 
 36.11  school aid according to Minnesota Statutes, section 124D.83: 
 36.12       $2,706,000 $1,671,000     .....     2000
 36.13       $2,790,000 $1,882,000     .....     2001
 36.14     The 2000 appropriation includes $283,000 for 1999 and 
 36.15  $2,423,000 $1,388,000 for 2000. 
 36.16     The 2001 appropriation includes $269,000 $154,000 for 2000 
 36.17  and $2,521,000 $1,728,000 for 2001. 
 36.18     Sec. 18.  Laws 1999, chapter 241, article 2, section 60, 
 36.19  subdivision 9, is amended to read: 
 36.20     Subd. 9.  [MAGNET SCHOOL GRANTS.] For magnet school and 
 36.21  program grants under Laws 1994, chapter 647, article 8, section 
 36.22  38: 
 36.23       $1,750,000     .....     2000 
 36.24       $1,750,000     .....     2001 
 36.25     These amounts may be used for magnet school programs 
 36.26  according to Minnesota Statutes, section 124D.88.  The budget 
 36.27  base for this program for fiscal year 2003 and each year 
 36.28  thereafter is $1,050,000. 
 36.29     Sec. 19.  Laws 1999, chapter 241, article 2, section 60, 
 36.30  subdivision 12, is amended to read: 
 36.31     Subd. 12.  [AID FOR CHILDREN WITH A DISABILITY.] For aid 
 36.32  according to Minnesota Statutes, section 125A.75, subdivision 3, 
 36.33  for children with a disability placed in residential facilities 
 36.34  within the district boundaries for whom no district of residence 
 36.35  can be determined: 
 36.36       $  443,000 $  433,000  .....     2000 
 37.1        $1,064,000 $4,263,000  .....     2001 
 37.2      If the appropriation for either year is insufficient, the 
 37.3   appropriation for the other year is available.  Any balance in 
 37.4   the first year does not cancel but is available in the second 
 37.5   year. 
 37.6      Sec. 20.  Laws 1999, chapter 241, article 2, section 60, 
 37.7   subdivision 13, is amended to read: 
 37.8      Subd. 13.  [TRAVEL FOR HOME-BASED SERVICES.] For aid for 
 37.9   teacher travel for home-based services according to Minnesota 
 37.10  Statutes, section 125A.75, subdivision 1: 
 37.11       $133,000 $125,000    .....     2000 
 37.12       $139,000 $130,000    .....     2001 
 37.13     The 2000 appropriation includes $11,000 for 1999 and 
 37.14  $122,000 $114,000 for 2000.  
 37.15     The 2001 appropriation includes $13,000 for 2000 and 
 37.16  $126,000 $117,000 for 2001.  
 37.17     Sec. 21.  Laws 1999, chapter 241, article 2, section 60, 
 37.18  subdivision 14, is amended to read: 
 37.19     Subd. 14.  [SPECIAL EDUCATION EXCESS COST AID.] For excess 
 37.20  cost aid: 
 37.21       $60,498,000 $66,032,000   .....     2000 
 37.22       $79,405,000 $89,072,000   .....     2001 
 37.23     The 2000 appropriation includes $4,693,000 for 1999 and 
 37.24  $55,805,000 $61,339,000 for 2000.  
 37.25     The 2001 appropriation includes $6,200,000 $6,815,000 for 
 37.26  2000 and $73,205,000 $82,257,000 for 2001. 
 37.27     Sec. 22.  Laws 1999, chapter 241, article 2, section 60, 
 37.28  subdivision 17, is amended to read: 
 37.29     Subd. 17.  [INTEGRATION AID.] For integration aid: 
 37.30       $37,182,000 $37,610,000  .....     2000 
 37.31       $43,787,000 $55,828,000  .....     2001 
 37.32     The 2000 appropriation includes $2,902,000 for 1999 and 
 37.33  $34,280,000 $34,708,000 for 2000. 
 37.34     The 2001 appropriation includes $3,809,000 $3,856,000 for 
 37.35  2000 and $39,978,000 $51,972,000 for 2001.  
 37.36     Sec. 23.  Laws 1999, chapter 241, article 2, section 60, 
 38.1   subdivision 19, is amended to read: 
 38.2      Subd. 19.  [INTERDISTRICT DESEGREGATION OR INTEGRATION 
 38.3   TRANSPORTATION AID.] (a) For interdistrict desegregation or 
 38.4   integration transportation aid under Minnesota Statutes, section 
 38.5   124D.87: 
 38.6        $970,000     .....     2000 
 38.7        $970,000     .....     2001 
 38.8      Any balance in the first year does not cancel but is 
 38.9   available in the second year. 
 38.10     (b) The budget base for this program for fiscal year 2002 
 38.11  is $500,000.  This amount may be spent for interdistrict 
 38.12  desegregation or integration transportation aid.  For fiscal 
 38.13  year 2003 and later, the budget base for this program is the 
 38.14  forecasted cost of fully reimbursing districts according to 
 38.15  Minnesota Statutes, section 124D.87. 
 38.16     Sec. 24.  [SPECIAL EDUCATION CROSS-SUBSIDY REVENUE.] 
 38.17     For fiscal year 2000, a school district shall receive an 
 38.18  amount of revenue equal to $15 times the district's adjusted 
 38.19  marginal cost pupil units.  For fiscal year 2001, a school 
 38.20  district shall receive an amount of revenue equal to $35 times 
 38.21  the district's adjusted marginal cost pupil units.  Special 
 38.22  education cross-subsidy revenue must be used to pay for a 
 38.23  district's unfunded special education costs that are currently 
 38.24  cross-subsidized by a district's general education revenue. 
 38.25     Sec. 25.  [STUDY.] 
 38.26     The commissioner of children, families, and learning shall 
 38.27  contract with a qualified expert to determine and report the 
 38.28  number and overall incidence rate of Minnesota school children, 
 38.29  by district, age, grade level, gender, and race, diagnosed with 
 38.30  attention deficit disorder (ADD) or attention deficit 
 38.31  hyperactivity disorder (ADHD) currently taking amphetamine 
 38.32  prescription drugs such as Ritalin.  In preparing the report, 
 38.33  the contractor also must determine the number and overall 
 38.34  incidence rate of students not identified with ADD or ADHD 
 38.35  currently taking amphetamine prescription drugs such as 
 38.36  Ritalin.  The commissioner, the commissioner's designee, and 
 39.1   school districts must comply with Minnesota Statutes, chapter 
 39.2   13, when gathering data for this report.  The commissioner must 
 39.3   submit the report and any recommendations to the education 
 39.4   committees of the legislature by February 15, 2001. 
 39.5      Sec. 26.  [RESOLUTION.] 
 39.6      Be it resolved by the legislature of the state of 
 39.7   Minnesota, that it supports governor Jesse Ventura's efforts to 
 39.8   have Congress speedily enact legislation to fund at least 40 
 39.9   percent of the cost of special education services provided as a 
 39.10  result of the federal mandate to provide a free and appropriate 
 39.11  public education for students with disabilities.  The state 
 39.12  finds that the federal requirements impede the ability of the 
 39.13  state and school districts to adequately fund kindergarten 
 39.14  through grade 12 education for all students. 
 39.15     Sec. 27.  [APPROPRIATIONS.] 
 39.16     Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
 39.17  LEARNING.] The sums indicated in this section are appropriated 
 39.18  from the general fund to the department of children, families, 
 39.19  and learning for the fiscal years designated. 
 39.20     Subd. 2.  [LITTLE FALLS; REVENUE REIMBURSEMENT.] For 
 39.21  independent school district No. 482, Little Falls, for partial 
 39.22  reimbursement of revenue returned to the state as a result of a 
 39.23  finding that the district had over-counted kindergarten pupils 
 39.24  in earlier years: 
 39.25       $300,000     .....     2000 
 39.26     Revenue appropriated to the district under this subdivision 
 39.27  must be used for all-day kindergarten services and must be 
 39.28  matched by fees collected from parents by the district for 
 39.29  providing all-day kindergarten services. 
 39.30     Subd. 3.  [NORTHLAND LEARNING CENTER.] For a grant to the 
 39.31  Northland joint powers board for start-up costs associated with 
 39.32  the delay of special education funding for the Northland 
 39.33  learning center: 
 39.34       $200,000     .....     2001 
 39.35     Subd. 4.  [MAGNET SCHOOL START-UP AID.] For magnet school 
 39.36  start-up aid under Minnesota Statutes, section 124D.88: 
 40.1        $250,000     .....     2001 
 40.2      Subd. 5.  [SPECIAL EDUCATION CROSS-SUBSIDY REVENUE.] For 
 40.3   special education cross-subsidy revenue: 
 40.4        $14,537,000     .....     2000 
 40.5        $33,829,000     .....     2001 
 40.6      Subd. 6.  [STUDY.] For a report on the number and overall 
 40.7   incident rate of Minnesota school children diagnosed with 
 40.8   attention deficit disorder or attention deficit hyperactivity 
 40.9   disorder: 
 40.10       $40,000     .....     2001 
 40.11     Subd. 7.  [GRANT TO INDEPENDENT SCHOOL DISTRICT NO. 707, 
 40.12  NETT LAKE.] For a grant to independent school district No. 707, 
 40.13  Nett Lake, to pay obligations of the school district for 
 40.14  unemployment compensation.  The appropriation must be paid to 
 40.15  the appropriate state agency for such purposes in the name of 
 40.16  the school district: 
 40.17       $ 30,000     .....     2001
 40.18     Sec. 28.  [REPEALER.] 
 40.19     Minnesota Rules, part 3535.9920, is repealed. 
 40.20                             ARTICLE 3
 40.21                  EMPLOYMENT AND OTHER TRANSITIONS
 40.22     Section 1.  Minnesota Statutes 1998, section 124D.44, is 
 40.23  amended to read: 
 40.24     124D.44 [MATCH REQUIREMENTS.] 
 40.25     Youth works grant funds must be used for the living 
 40.26  allowance, cost of employer taxes under sections 3111 and 3301 
 40.27  of the Internal Revenue Code of 1986, workers' compensation 
 40.28  coverage, and health benefits for each program participant, and 
 40.29  administrative expenses, which must not exceed five percent of 
 40.30  total program costs.  Youthworks grant funds may also be used to 
 40.31  supplement applicant resources to fund postservice benefits for 
 40.32  program participants.  Applicant resources, from sources and in 
 40.33  a form determined by the commission and, beginning January 1, 
 40.34  1997, the council, must be used to provide for all other program 
 40.35  costs, including the portion of the applicant's obligation for 
 40.36  postservice benefits that is not covered by state or federal 
 41.1   grant funds and such costs as supplies, materials, 
 41.2   transportation, and salaries and benefits of those staff 
 41.3   directly involved in the operation, internal monitoring, and 
 41.4   evaluation of the program.  Administrative expenses must not 
 41.5   exceed five percent of total program costs. 
 41.6      Sec. 2.  Minnesota Statutes 1998, section 124D.454, 
 41.7   subdivision 4, is amended to read: 
 41.8      Subd. 4.  [ADJUSTED SECONDARY 
 41.9   VOCATIONAL-DISABLED TRANSITION-DISABLED BASE REVENUE.] For 
 41.10  fiscal year 1996 and later, a district's adjusted secondary 
 41.11  vocational-disabled transition-disabled base revenue equals the 
 41.12  district's secondary vocational-disabled transition-disabled 
 41.13  base revenue times the ratio of the district's average daily 
 41.14  membership for the current school year to the district's average 
 41.15  daily membership for the base year. 
 41.16     Sec. 3.  Minnesota Statutes 1998, section 124D.454, 
 41.17  subdivision 6, is amended to read: 
 41.18     Subd. 6.  [SCHOOL DISTRICT SECONDARY 
 41.19  VOCATIONAL-DISABLED TRANSITION-DISABLED REVENUE.] (a) A school 
 41.20  district's secondary vocational-disabled transition-disabled 
 41.21  revenue for fiscal year 1996 and later equals the state 
 41.22  total secondary vocational-disabled transition-disabled revenue, 
 41.23  minus the amount determined under paragraph (b), times the ratio 
 41.24  of the district's adjusted secondary 
 41.25  vocational-disabled transition-disabled base revenue to the 
 41.26  state total adjusted secondary 
 41.27  vocational-disabled transition-disabled base revenue. 
 41.28     (b) Notwithstanding paragraph (a), if the secondary 
 41.29  vocational-disabled transition-disabled base revenue for a 
 41.30  district equals zero and no district residents were enrolled 
 41.31  in secondary vocational-disabled transition-disabled programs 
 41.32  during the base year, the secondary 
 41.33  vocational-disabled transition-disabled revenue equals the 
 41.34  amount computed according to subdivision 3 using current year 
 41.35  data. 
 41.36     Sec. 4.  Minnesota Statutes 1998, section 124D.454, 
 42.1   subdivision 7, is amended to read: 
 42.2      Subd. 7.  [SCHOOL DISTRICT SECONDARY 
 42.3   VOCATIONAL-DISABLED TRANSITION-DISABLED AID.] A school 
 42.4   district's secondary vocational-disabled transition-disabled aid 
 42.5   for fiscal year 1996 and later equals the district's secondary 
 42.6   vocational-disabled transition-disabled revenue times the aid 
 42.7   percentage factor for that year. 
 42.8      Sec. 5.  Laws 1997, chapter 157, section 71, as amended by 
 42.9   Laws 1998, chapter 398, article 3, section 11, is amended to 
 42.10  read: 
 42.11     Sec. 71.  [SCHOOL BANK PILOT PROJECT BANKS.] 
 42.12     (a) A school bank sponsored by independent school district 
 42.13  No. 31, Bemidji, independent school district No. 316, 
 42.14  Greenway-Coleraine, independent school district No. 2170, 
 42.15  Staples-Motley, or by independent school district No. 508, St. 
 42.16  Peter, that meets all requirements of paragraph (b) is not 
 42.17  subject to Minnesota Statutes, section 47.03, subdivision 1, or 
 42.18  to any other statute or rule that regulates banks, other 
 42.19  financial institutions, or currency exchanges. 
 42.20     (b) To qualify under paragraph (a), the school bank must: 
 42.21     (1) be operated as part of a high school educational 
 42.22  program and under guidelines adopted by the school board; 
 42.23     (2) be advised on a regular basis by one or more 
 42.24  state-chartered or federally-chartered financial institutions, 
 42.25  but not owned or operated by any financial institution; 
 42.26     (3) be located on school premises and have as customers 
 42.27  only students enrolled in, or employees of, the school in which 
 42.28  it is located; and 
 42.29     (4) have a written commitment from the school board, 
 42.30  guaranteeing reimbursement of any depositor's funds lost due to 
 42.31  insolvency of the school bank. 
 42.32     (c) Funds of a school bank that meets the requirements of 
 42.33  this section are not school district or other public funds for 
 42.34  purposes of any state law governing the use or investment of 
 42.35  school district or other public funds. 
 42.36     (d) The school district shall annually file with the 
 43.1   commissioner of commerce a report, prepared by the students and 
 43.2   teachers involved, summarizing the operation of the school bank. 
 43.3      (e) This section expires June 30, 2000.  The commissioner 
 43.4   of commerce shall, no later than December 15, 1999, provide a 
 43.5   written report to the legislature regarding this pilot project 
 43.6   and any recommended legislation regarding school banks. 
 43.7      <b>EFFECTIVE DATE:</b>  This section is effective the day 
 43.8   following final enactment. 
 43.9      Sec. 6.  Laws 1999, chapter 241, article 3, section 3, 
 43.10  subdivision 2, is amended to read: 
 43.11     Subd. 2.  [SECONDARY VOCATIONAL EDUCATION AID.] For 
 43.12  secondary vocational education aid according to Minnesota 
 43.13  Statutes, section 124D.453: 
 43.14       $11,335,000 $12,413,000    .....     2000 
 43.15       $1,130,000  $ 1,250,000    .....     2001 
 43.16     The 2000 appropriation includes $1,159,000 for 1999 and 
 43.17  $10,176,000 $11,254,000 for 2000.  The 2001 appropriation 
 43.18  includes $1,130,000 $1,250,000 for 2000.  
 43.19     <b>EFFECTIVE DATE:</b>  This section is effective the day 
 43.20  following final enactment. 
 43.21     Sec. 7.  Laws 1999, chapter 241, article 3, section 3, 
 43.22  subdivision 4, is amended to read: 
 43.23     Subd. 4.  [EDUCATION AND EMPLOYMENT TRANSITIONS PROGRAM 
 43.24  GRANTS.] For education and employment transitions programming 
 43.25  under Minnesota Statutes, section 124D.46: 
 43.26       $3,225,000     .....     2000 
 43.27       $3,225,000     .....     2001 
 43.28     $200,000 each year is for the development and 
 43.29  implementation of the ISEEK Internet-based education and 
 43.30  employment information system. 
 43.31     $1,000,000 each year is for an employer rebate program for 
 43.32  qualifying employers who offer youth internships to educators. 
 43.33     $500,000 each year is for youth entrepreneurship grants.  
 43.34     $750,000 each year is for youth apprenticeship grants. 
 43.35     $300,000 each year is for grants to programs in cities of 
 43.36  the first class to expand the number of at-risk students 
 44.1   participating in school-to-work projects. 
 44.2      $350,000 each year is for agricultural school-to-work 
 44.3   grants. 
 44.4      $125,000 each year is to conduct a high school follow-up 
 44.5   survey to include first, third, and sixth year graduates of 
 44.6   Minnesota schools. 
 44.7      Any balance in the first year does not cancel but is 
 44.8   available in the second year. 
 44.9                              ARTICLE 4 
 44.10                     FACILITIES AND TECHNOLOGY 
 44.11     Section 1.  Minnesota Statutes 1998, section 123B.51, 
 44.12  subdivision 6, is amended to read: 
 44.13     Subd. 6.  [PROCEEDS OF SALE OR EXCHANGE.] (a) Proceeds of 
 44.14  the sale or exchange of school buildings or real property of the 
 44.15  district must be used as provided in this subdivision. 
 44.16     (b) In districts with outstanding bonds, the proceeds of 
 44.17  the sale or exchange shall first be deposited in the debt 
 44.18  retirement fund of the district in an amount sufficient to meet 
 44.19  when due that percentage of the principal and interest payments 
 44.20  for outstanding bonds which is ascribable to the payment of 
 44.21  expenses necessary and incidental to the construction or 
 44.22  purchase of the particular building or property which is sold.  
 44.23     (c) After satisfying the requirements of paragraph (b), a 
 44.24  district with outstanding bonds may deposit proceeds of the sale 
 44.25  or exchange in its capital expenditure fund general fund 
 44.26  reserved for operating capital account if the amount deposited 
 44.27  is used for the following:  
 44.28     (1) for expenditures for the cleanup of polychlorinated 
 44.29  biphenyls, if the method for cleanup is approved by the 
 44.30  department; 
 44.31     (2) for capital expenditures for the betterment, as defined 
 44.32  in section 475.51, subdivision 8, of district-owned school 
 44.33  buildings; or 
 44.34     (3) to replace the building or property sold.  
 44.35     (d) In a district with outstanding bonds, the amount of the 
 44.36  proceeds of the sale or exchange remaining after the application 
 45.1   of paragraphs (b) and (c), which is sufficient to meet when due 
 45.2   that percentage of the principal and interest payments for the 
 45.3   district's outstanding bonds which is not governed by paragraph 
 45.4   (b), shall be deposited in the debt retirement fund.  
 45.5      (e) Any proceeds of the sale or exchange remaining in 
 45.6   districts with outstanding bonds after the application of 
 45.7   paragraphs (b), (c), and (d), and all proceeds of the sale or 
 45.8   exchange in districts without outstanding bonds shall be 
 45.9   deposited in the capital expenditure general fund reserved for 
 45.10  operating capital account of the district. 
 45.11     (f) Notwithstanding paragraphs (c) and (d), a district with 
 45.12  outstanding bonds may deposit in its capital expenditure general 
 45.13  fund reserved for operating capital account and use for any 
 45.14  lawful operating capital expenditure without the reduction of 
 45.15  any levy limitation the same percentage of the proceeds of the 
 45.16  sale or exchange of a building or property as the percentage of 
 45.17  the initial cost of purchasing or constructing the building or 
 45.18  property which was paid using revenue from the capital 
 45.19  expenditure general fund reserved for operating capital account. 
 45.20     Sec. 2.  Minnesota Statutes 1998, section 123B.53, as 
 45.21  amended by Laws 1999, chapter 241, is amended to read: 
 45.22     123B.53 [DEBT SERVICE FACILITIES EQUALIZATION PROGRAM.] 
 45.23     Subdivision 1.  [DEFINITIONS.] (a) For purposes of this 
 45.24  section, the eligible debt service facilities revenue of a 
 45.25  district is defined as follows: 
 45.26     (1) the amount needed to produce between five and six 
 45.27  percent in excess of the amount needed to meet when due the 
 45.28  principal and interest payments on the obligations of the 
 45.29  district for eligible projects according to subdivision 2, 
 45.30  including the amounts necessary for repayment of energy loans 
 45.31  according to section 216C.37 or sections 298.292 to 298.298 
 45.32  126C.40, subdivision 5, debt service loans and capital loans, 
 45.33  lease purchase payments under section 126C.40, subdivision 2 
 45.34  subdivisions 2 and 6; Laws 1995, First Special Session chapter 
 45.35  3, article 5, section 19; and Laws 1997, First Special Session 
 45.36  chapter 4, article 4, section 30, alternative facilities levies 
 46.1   revenue under section 123B.59, subdivision 5; health and safety 
 46.2   revenue, under section 123B.57, subdivision 3; handicapped 
 46.3   access and fire safety revenue, under section 123B.58, 
 46.4   subdivision 3; building construction and lease revenue, under 
 46.5   section 123B.63, subdivision 3; building lease revenue, under 
 46.6   section 126C.40, subdivision 1; and cooperative building repair 
 46.7   revenue, under section 126C.40, subdivision 3, minus 
 46.8      (2) the amount of debt service excess levy reduction for 
 46.9   that school year calculated according to the procedure 
 46.10  established by the commissioner. 
 46.11     (b) The obligations in this paragraph are excluded from 
 46.12  eligible debt service facilities revenue: 
 46.13     (1) obligations under section 123B.61; 
 46.14     (2) the part of debt service principal and interest paid 
 46.15  from the taconite environmental protection fund or northeast 
 46.16  Minnesota economic protection trust; 
 46.17     (3) obligations issued under Laws 1991, chapter 265, 
 46.18  article 5, section 18, as amended by Laws 1992, chapter 499, 
 46.19  article 5, section 24; and 
 46.20     (4) obligations under section 123B.62. 
 46.21     (c) For purposes of this section, if a preexisting school 
 46.22  district reorganized under sections 123A.35 to 123A.43, 123A.46, 
 46.23  and 123A.48 is solely responsible for retirement of the 
 46.24  preexisting district's bonded indebtedness, capital loans or 
 46.25  debt service loans, debt service facilities equalization aid 
 46.26  must be computed separately for each of the preexisting 
 46.27  districts. 
 46.28     Subd. 2.  [ELIGIBILITY.] (a) The following portions of a 
 46.29  district's debt service levy facilities revenue qualify for debt 
 46.30  service facilities equalization: 
 46.31     (1) debt service for repayment of principal and interest on 
 46.32  bonds issued before July 2, 1992; 
 46.33     (2) debt service for bonds refinanced after July 1, 1992, 
 46.34  if the bond schedule has been approved by the commissioner and, 
 46.35  if necessary, adjusted to reflect a 20-year maturity schedule; 
 46.36  and 
 47.1      (3) debt service for bonds issued after July 1, 1992, for 
 47.2   construction projects that have received a positive review and 
 47.3   comment according to section 123B.71, if the commissioner has 
 47.4   determined that the district has met the criteria under section 
 47.5   126C.69, subdivision 3, except section 126C.69, subdivision 3, 
 47.6   paragraph (a), clause (2), and if the bond schedule has been 
 47.7   approved by the commissioner and, if necessary, adjusted to 
 47.8   reflect a 20-year maturity schedule; 
 47.9      (4) alternative facilities revenue, according to section 
 47.10  123B.59, subdivision 5; 
 47.11     (5) health and safety revenue, according to section 
 47.12  123B.57, subdivision 3; 
 47.13     (6) handicapped access and fire safety revenue, according 
 47.14  to section 123B.58, subdivision 3; 
 47.15     (7) building construction and lease revenue, according to 
 47.16  section 123B.63, subdivision 3; 
 47.17     (8) building lease revenue, according to section 126C.40, 
 47.18  subdivision 1; and 
 47.19     (9) cooperative building repair revenue, according to 
 47.20  section 126C.40, subdivision 3. 
 47.21     (b) The criterion described in section 126C.69, subdivision 
 47.22  3, paragraph (a), clause (9), does not apply to bonds authorized 
 47.23  by elections held before July 1, 1992. 
 47.24     (c) For the purpose of this subdivision the department 
 47.25  shall determine the eligibility for sparsity at the location of 
 47.26  the new facility, or the site of the new facility closest to the 
 47.27  nearest operating school if there is more than one new facility. 
 47.28     (d) Notwithstanding paragraphs (a) to (c), debt service for 
 47.29  repayment of principal and interest on bonds issued after July 
 47.30  1, 1997, does or leases on buildings do not qualify for debt 
 47.31  service equalization aid unless the primary purpose of the 
 47.32  facility is to serve students in kindergarten through grade 12. 
 47.33     Subd. 3.  [NOTIFICATION.] A district eligible for debt 
 47.34  service facilities equalization revenue under subdivision 2 must 
 47.35  notify the commissioner of the amount of its intended debt 
 47.36  service facilities equalization revenue calculated under 
 48.1   subdivision 1 for all bonds sold prior to the notification by 
 48.2   July 1 of the calendar year the levy is certified. 
 48.3      Subd. 4.  [DEBT SERVICE FACILITIES EQUALIZATION REVENUE.] 
 48.4   The debt service facilities equalization revenue of a district 
 48.5   equals the eligible debt service facilities equalization revenue 
 48.6   minus the amount raised by a levy of 12 ten percent times the 
 48.7   adjusted net tax capacity of the district. 
 48.8      Subd. 5.  [EQUALIZED DEBT SERVICE FACILITIES LEVY.] To 
 48.9   obtain debt service facilities equalization revenue, a district 
 48.10  must levy an amount not to exceed the district's debt service 
 48.11  facilities equalization revenue times the lesser of one or the 
 48.12  ratio of: 
 48.13     (1) the quotient derived by dividing the adjusted net tax 
 48.14  capacity of the district for the year before the year the levy 
 48.15  is certified by the adjusted pupil units in the district for the 
 48.16  school year ending in the year prior to the year the levy is 
 48.17  certified; to 
 48.18     (2) $4,000 $4,073. 
 48.19     Subd. 6.  [DEBT SERVICE FACILITIES EQUALIZATION AID.] A 
 48.20  district's debt service facilities equalization aid is the 
 48.21  difference between the debt service facilities equalization 
 48.22  revenue and the equalized debt service facilities levy.  If a 
 48.23  district does not levy the entire amount permitted, the 
 48.24  district's aid must be reduced in proportion to the amount 
 48.25  levied. 
 48.26     Subd. 7.  [DEBT SERVICE FACILITIES EQUALIZATION AID PAYMENT 
 48.27  SCHEDULE.] Debt service Facilities equalization aid must be paid 
 48.28  according to section 127A.45, subdivision 10. 
 48.29     Subd. 8.  [DEBT SERVICE PRIORITY.] Of the amount paid under 
 48.30  this section, the district must first allocate the amount 
 48.31  attributable to obligations under chapter 475.  Remaining aid 
 48.32  may be used for other purposes of this section. 
 48.33     <b>EFFECTIVE DATE:</b>  This section is effective for revenue for 
 48.34  fiscal year 2002 and thereafter.  
 48.35     Sec. 3.  Minnesota Statutes 1999 Supplement, section 
 48.36  123B.54, is amended to read: 
 49.1      123B.54 [DEBT SERVICE FACILITIES EQUALIZATION 
 49.2   APPROPRIATION.] 
 49.3      (a) $33,165,000 in fiscal year 2000, $32,057,000 in fiscal 
 49.4   year 2001, and $31,280,000 $44,407,000 in fiscal year 2002 and 
 49.5   each year thereafter is appropriated from the general fund to 
 49.6   the commissioner of children, families, and learning for payment 
 49.7   of debt service facilities equalization aid under section 
 49.8   123B.53.  The 2002 appropriation includes $3,201,000 for 2001 
 49.9   and $29,079,000 $41,206,000 for 2002. 
 49.10     (b) The appropriations in paragraph (a) must be reduced by 
 49.11  the amount of any money specifically appropriated for the same 
 49.12  purpose in any year from any state fund. 
 49.13     Sec. 4.  Minnesota Statutes 1998, section 123B.57, 
 49.14  subdivision 1, is amended to read: 
 49.15     Subdivision 1.  [HEALTH AND SAFETY PROGRAM.] To receive 
 49.16  health and safety revenue for any fiscal year a district must 
 49.17  submit to the commissioner an application for aid and levy 
 49.18  revenue by the date determined by the commissioner.  The 
 49.19  application may be for hazardous substance removal, fire and 
 49.20  life safety code repairs, labor and industry regulated facility 
 49.21  and equipment violations, and health, safety, and environmental 
 49.22  management, including indoor air quality management.  The 
 49.23  application must include a health and safety program adopted by 
 49.24  the school district board.  The program must include the 
 49.25  estimated cost, per building, of the program by fiscal year. 
 49.26     <b>EFFECTIVE DATE:</b>  This section is effective for revenue for 
 49.27  fiscal year 2002 and thereafter.  
 49.28     Sec. 5.  Minnesota Statutes 1998, section 123B.58, 
 49.29  subdivision 3, is amended to read: 
 49.30     Subd. 3.  [LEVY AUTHORITY REVENUE.] The district may levy 
 49.31  is eligible for revenue up to $300,000 under this section, as 
 49.32  approved by the commissioner.  The approved amount may be levied 
 49.33  received over eight or fewer years. 
 49.34     <b>EFFECTIVE DATE:</b>  This section is effective for revenue for 
 49.35  fiscal year 2002 and thereafter.  
 49.36     Sec. 6.  Minnesota Statutes 1998, section 123B.58, 
 50.1   subdivision 4, is amended to read: 
 50.2      Subd. 4.  [LEVY AUTHORITY REVENUE IN COMBINED DISTRICTS.] 
 50.3   Notwithstanding subdivision 3, a district that has combined or 
 50.4   consolidated may levy receive revenue up to 50 percent times 
 50.5   $300,000 the eligible revenue under subdivision 4 for all former 
 50.6   districts that operated on June 30, 1999, in the area that now 
 50.7   makes up the combined or consolidated district times the number 
 50.8   of former districts that operated on June 30, 1991 1999, in the 
 50.9   area that now makes up the combined or consolidated district.  
 50.10  The approved amount is reduced by any amount levied under 
 50.11  subdivision 3 in the consolidated or combined district or in the 
 50.12  former districts that make up the consolidated or combined 
 50.13  district.  Levy authority under this subdivision expires at the 
 50.14  same time as levy authority under subdivision 3. 
 50.15     <b>EFFECTIVE DATE:</b>  This section is effective for revenue for 
 50.16  fiscal year 2002 and thereafter.  
 50.17     Sec. 7.  Minnesota Statutes 1998, section 123B.59, as 
 50.18  amended by Laws 1999, chapter 241, is amended to read: 
 50.19     123B.59 [ALTERNATIVE FACILITIES BONDING AND LEVY REVENUE 
 50.20  PROGRAM.] 
 50.21     Subdivision 1.  [TO QUALIFY.] An independent or special 
 50.22  school district qualifies to participate in the alternative 
 50.23  facilities bonding and levy revenue program if the district has: 
 50.24     (1) more than 66 students per grade; 
 50.25     (2) over 1,850,000 square feet of space; 
 50.26     (3) average age of building space is 15 years or older; 
 50.27     (4) insufficient funds from projected health and safety 
 50.28  revenue and capital facilities revenue to meet the requirements 
 50.29  for deferred maintenance, to make accessibility improvements, or 
 50.30  to make fire, safety, or health repairs; and 
 50.31     (5) a ten-year facility plan approved by the commissioner 
 50.32  according to subdivision 2. 
 50.33     Subd. 2.  [TEN-YEAR PLAN.] (a) A qualifying district must 
 50.34  have a ten-year facility plan approved by the commissioner that 
 50.35  includes an inventory of projects and costs that would be 
 50.36  eligible for: 
 51.1      (1) health and safety revenue; 
 51.2      (2) disabled access levy; and 
 51.3      (3) deferred capital expenditures and maintenance projects 
 51.4   necessary to prevent further erosion of facilities. 
 51.5      (b) The school district must: 
 51.6      (1) annually update the plan; 
 51.7      (2) biennially submit a facility maintenance plan; and 
 51.8      (3) indicate whether the district will issue bonds to 
 51.9   finance the plan or levy annually include program revenue under 
 51.10  the facilities equalization program, under section 123B.53, for 
 51.11  the costs. 
 51.12     Subd. 3.  [BOND AUTHORIZATION.] A school district, upon 
 51.13  approval of its board and the commissioner, may issue general 
 51.14  obligation bonds under this section to finance approved 
 51.15  facilities plans.  Chapter 475, except sections 475.58 and 
 51.16  475.59, must be complied with.  The district may levy under 
 51.17  subdivision 5 for the debt service revenue.  The authority to 
 51.18  issue bonds under this section is in addition to any bonding 
 51.19  authority authorized by this chapter, or other law.  The amount 
 51.20  of bonding authority authorized under this section must be 
 51.21  disregarded in calculating the bonding or net debt limits of 
 51.22  this chapter, or any other law other than section 475.53, 
 51.23  subdivision 4. 
 51.24     Subd. 4.  [LEVY PROHIBITED FOR CAPITAL PROJECTS.] A 
 51.25  district that participates in the alternative facilities bonding 
 51.26  and levy revenue program is not eligible to levy and cannot 
 51.27  receive aid for revenue under sections 123B.57 and 123B.58 for 
 51.28  any capital projects funded under this section.  A district 
 51.29  may levy and receive aid for health and safety receive revenue 
 51.30  for environmental management costs and health and safety 
 51.31  regulatory, hazard assessment, record keeping, and maintenance 
 51.32  programs as defined in section 123A.443 123B.57, subdivision 2, 
 51.33  and approved by the commissioner. 
 51.34     Subd. 5.  [LEVY REVENUE AUTHORIZED.] A district, after 
 51.35  local board approval, may levy receive revenue for costs related 
 51.36  to an approved facility plan as follows:  
 52.1      (a) if the district has indicated to the commissioner that 
 52.2   bonds will be issued, the district may levy receive revenue for 
 52.3   the principal and interest payments on outstanding bonds issued 
 52.4   according to subdivision 3 after reduction for any alternative 
 52.5   facilities aid receivable under subdivision 6; or 
 52.6      (b) if the district has indicated to the commissioner that 
 52.7   the plan will be funded through levy authorized under section 
 52.8   123B.53, subdivision 5, the district may levy according to the 
 52.9   schedule approved in the plan after reduction for any 
 52.10  alternative facilities aid receivable under subdivision 6. 
 52.11     Subd. 6.  [ALTERNATIVE FACILITIES AID.] A district's 
 52.12  alternative facilities aid is the amount equal to the district's 
 52.13  annual debt service costs, provided that the amount does not 
 52.14  exceed the amount certified to be levied for those purposes for 
 52.15  taxes payable in 1997, or for a district that made a levy under 
 52.16  subdivision 5, paragraph (b), the lesser of the district's 
 52.17  annual levy amount, or one-sixth of the amount of levy that it 
 52.18  certified for that purpose for taxes payable in 1998. 
 52.19     Subd. 8.  [SEPARATE ACCOUNT.] A district must establish a 
 52.20  separate account under the uniform financial accounting and 
 52.21  reporting standards (UFARS) for this program.  If the district's 
 52.22  levy revenue exceeds the necessary interest and principal 
 52.23  payments and noncapital health and safety costs, the district 
 52.24  must reserve the revenue to replace future bonding authority, 
 52.25  prepay bonds authorized under this program, or make payments on 
 52.26  principal and interest. 
 52.27     <b>EFFECTIVE DATE:</b>  This section is effective for revenue for 
 52.28  fiscal year 2002 and thereafter.  
 52.29     Sec. 8.  Minnesota Statutes 1998, section 123B.63, 
 52.30  subdivision 3, is amended to read: 
 52.31     Subd. 3.  [FACILITIES DOWN PAYMENT LEVY REVENUE 
 52.32  REFERENDUM.] A district may levy the local tax rate receive 
 52.33  revenue under the facilities equalization program for the 
 52.34  purposes of financing the acquisition and betterment of a school 
 52.35  construction project or to pay for the lease on a new school 
 52.36  building used primarily for regular kindergarten, elementary, or 
 53.1   secondary instruction if authorization is approved by a majority 
 53.2   of the electors voting on the question to provide funds for a 
 53.3   down payment for an approved project.  The election must take 
 53.4   place no more than five years before the estimated date of 
 53.5   commencement of the project.  The referendum must be held on a 
 53.6   date set by the board.  A referendum for a project not receiving 
 53.7   a positive an unfavorable review and comment by the commissioner 
 53.8   under section 123B.71 must be approved by at least 60 percent of 
 53.9   the voters voting on the question at the election.  The 
 53.10  referendum may be called by the school board and may be held: 
 53.11     (1) separately, before an election for the issuance of 
 53.12  obligations for the project under chapter 475; or 
 53.13     (2) in conjunction with an election for the issuance of 
 53.14  obligations for the project under chapter 475; or 
 53.15     (3) notwithstanding section 475.59, as a conjunctive 
 53.16  question authorizing both the down payment levy revenue and the 
 53.17  issuance of obligations for the project under chapter 475.  Any 
 53.18  obligations authorized for a project may be issued within five 
 53.19  years of the date of the election. 
 53.20     The ballot must provide a general description of the 
 53.21  proposed project, state the estimated total cost of the project, 
 53.22  state whether the project has received a positive or negative 
 53.23  unfavorable review and comment from the commissioner, state the 
 53.24  maximum amount of the down payment equalized facility levy as a 
 53.25  percentage of net tax capacity, state the amount that will be 
 53.26  raised by that local tax rate in the first year it is to be 
 53.27  levied, and state the maximum number of years that the levy 
 53.28  authorization will apply. 
 53.29     The ballot must contain a textual portion with the 
 53.30  information required in this section and a question stating 
 53.31  substantially the following: 
 53.32     "Shall the down payment facility levy proposed by the board 
 53.33  of .......... School District No. .......... be approved?" 
 53.34     If approved, the amount provided by the approved local tax 
 53.35  rate applied to the net tax capacity for the year preceding the 
 53.36  year the levy is certified may be certified for the number of 
 54.1   years approved. 
 54.2      In the event a conjunctive question proposes to authorize 
 54.3   both the down payment equalized facilities levy, under section 
 54.4   123B.53, and the issuance of obligations for the project, 
 54.5   appropriate language authorizing the issuance of obligations 
 54.6   must also be included in the question.  
 54.7      The district must notify the commissioner of the results of 
 54.8   the referendum. 
 54.9      <b>EFFECTIVE DATE:</b>  This section is effective for revenue for 
 54.10  fiscal year 2002 and thereafter.  
 54.11     Sec. 9.  Minnesota Statutes 1998, section 123B.63, 
 54.12  subdivision 4, is amended to read: 
 54.13     Subd. 4.  [EXCESS BUILDING CONSTRUCTION FUND LEVY 
 54.14  PROCEEDS.] (a) For the purpose of a school construction project, 
 54.15  any funds remaining in the down payment account that are not 
 54.16  applied to the payment of the costs of the approved project 
 54.17  before its final completion must be transferred to the 
 54.18  district's debt redemption fund.  
 54.19     (b) For the purposes of a leased building, any funds that 
 54.20  are applied to the payment of the lease at the termination of 
 54.21  the lease must be transferred to the district's debt redemption 
 54.22  fund. 
 54.23     <b>EFFECTIVE DATE:</b>  This section is effective for revenue for 
 54.24  fiscal year 2002 and thereafter.  
 54.25     Sec. 10.  Minnesota Statutes 1998, section 123B.71, 
 54.26  subdivision 10, is amended to read: 
 54.27     Subd. 10.  [INDOOR AIR QUALITY.] A school board seeking a 
 54.28  review and comment under this section must submit information 
 54.29  demonstrating to the commissioner's satisfaction that: 
 54.30     (1) indoor air quality issues have been considered; and 
 54.31     (2) the architects and engineers designing the facility 
 54.32  will have professional liability insurance.  
 54.33     Plans submitted under subdivisions 3 and 4 for projects to 
 54.34  be placed in service after July 1, 2002, must demonstrate that: 
 54.35     (a) the facility's heating, ventilation, and air 
 54.36  conditioning systems meet or exceed the standards established by 
 55.1   code; and 
 55.2      (b) the facility's design will provide the ability for 
 55.3   monitoring of outdoor airflow and total airflow of ventilation 
 55.4   systems in new school facilities. 
 55.5      Sec. 11.  Minnesota Statutes 1998, section 123B.72, 
 55.6   subdivision 3, is amended to read: 
 55.7      Subd. 3.  [CERTIFICATION.] Prior to occupying or 
 55.8   reoccupying a school facility affected by this section, a school 
 55.9   board or its designee shall submit a document prepared by a 
 55.10  system inspector to the building official or to the 
 55.11  commissioner, verifying that the facility's heating, 
 55.12  ventilation, and air conditioning system has been installed and 
 55.13  operates according to design specifications and code, according 
 55.14  to section 123B.71, subdivision 10, clause (3).  A systems 
 55.15  inspector shall also verify that the facility's design will 
 55.16  provide the ability for monitoring of outdoor airflow and total 
 55.17  airflow of ventilation systems in new school facilities and that 
 55.18  any heating, ventilation, or air conditioning system that is 
 55.19  installed or modified for a project subject to this section must 
 55.20  provide a filtration system with a current ASHRAE standard. 
 55.21     <b>EFFECTIVE DATE:</b>  This section is effective on July 1, 2002. 
 55.22     Sec. 12.  [125B.25] [TELECOMMUNICATIONS ACCESS REVENUE.] 
 55.23     Subdivision 1.  [COSTS TO BE SUBMITTED.] A district shall 
 55.24  submit its outstanding ongoing or recurring telecommunications 
 55.25  access costs associated with data lines and video links to the 
 55.26  department of children, families, and learning.  Costs of 
 55.27  telecommunications hardware or equipment must not be included in 
 55.28  the costs submitted by districts to the department.  A district 
 55.29  may include installation charges associated with new lines or 
 55.30  upgraded lines, but may not include costs of hardware or 
 55.31  equipment. 
 55.32     Subd. 2.  [GUARANTEED MINIMUM ACCESS.] (a) The ongoing or 
 55.33  recurring telecommunications access costs submitted to the 
 55.34  department by each district under this section are limited to 
 55.35  the operation costs equal to the greater of: 
 55.36     (1) one data line or video link that relies on a transport 
 56.1   medium that operates at a minimum speed of 1.544 megabytes per 
 56.2   second for each elementary school, middle school, or high school 
 56.3   under section 120A.05, subdivisions 9, 11, and 13; or 
 56.4      (2) one data line or video link that relies on a transport 
 56.5   medium that operates at a minimum speed of 1.544 megabytes per 
 56.6   second for each district. 
 56.7      (b) A district or charter school may include costs 
 56.8   associated with cooperative arrangements with other 
 56.9   post-secondary institutions, school districts, and community and 
 56.10  regional libraries in its geographic region.  A district may 
 56.11  continue to purchase its ongoing or recurring telecommunications 
 56.12  access services through existing contracts. 
 56.13     Subd. 3.  [E-RATES.] To be eligible for revenue under this 
 56.14  section, a district is required to file an e-rate application 
 56.15  either separately or through their telecommunications grant 
 56.16  cluster.  Discounts received on telecommunications expenditures 
 56.17  shall be used to offset the amount submitted to the department 
 56.18  for per pupil revenue under this section. 
 56.19     Subd. 4.  [CALCULATION OF COSTS.] By February 15 of each 
 56.20  year, the commissioner shall calculate the ongoing or recurring 
 56.21  telecommunications access cost per adjusted marginal cost pupil 
 56.22  unit submitted by each school district under subdivisions 1 and 
 56.23  2 for the year in which the data is submitted minus the reserved 
 56.24  revenue under section 126C.10, subdivision 13, paragraph (d).  
 56.25  Districts shall submit their anticipated ongoing or recurring 
 56.26  telecommunications access costs, adjusted for any e-rate revenue 
 56.27  received to the department based on contracts entered into by 
 56.28  the district for that school year.  Districts shall also submit 
 56.29  their actual telecommunications access costs by August 15 of 
 56.30  each year and adjusted for any e-rate revenue received to the 
 56.31  department as prescribed by the commissioner. 
 56.32     Subd. 5.  [DISTRICT REVENUE.] A district shall receive an 
 56.33  amount equal to the amount as calculated by the commissioner 
 56.34  under subdivision 4, times the adjusted marginal cost pupil 
 56.35  units for that year, times 80 percent. 
 56.36     Subd. 6.  [REVENUE FOR CHARTER SCHOOLS.] Each charter 
 57.1   school shall receive revenue equal to the greater of: 
 57.2      (1) the per marginal cost pupil unit amount for the 
 57.3   district in which the charter school is located as determined by 
 57.4   the commissioner according to subdivision 4; or 
 57.5      (2) $5; 
 57.6   times the adjusted marginal cost pupil units for that year, 
 57.7   times 80 percent. 
 57.8      Subd. 7.  [REVENUE FOR NONPUBLIC SCHOOLS.] Notwithstanding 
 57.9   any other law to the contrary, each nonpublic school, not 
 57.10  including home schools, shall receive an amount equal to the 
 57.11  greater of: 
 57.12     (1) the per marginal cost pupil unit amount for the 
 57.13  district in which the nonpublic school is located as determined 
 57.14  by the commissioner according to subdivision 4; or 
 57.15     (2) $5; 
 57.16  times the number of pupils who are enrolled at the nonpublic 
 57.17  school as of October 1 of the current school year. 
 57.18     Subd. 8.  [REIMBURSEMENT CRITERIA.] The commissioner, 
 57.19  working with the commissioner of administration, shall develop 
 57.20  reimbursement criteria that schools must address when submitting 
 57.21  ongoing or recurring telecommunications costs as determined in 
 57.22  subdivisions 1 and 2.  The criteria must assist schools to 
 57.23  procure telecommunications access services in the most efficient 
 57.24  and effective manner possible.  The criteria may also determine 
 57.25  if a district is able to seek a lesser cost alternative for its 
 57.26  geographical area and the commissioner of children, families, 
 57.27  and learning shall use that information to adjust the 
 57.28  reimbursement amount to the district. 
 57.29     Sec. 13.  Minnesota Statutes 1999 Supplement, section 
 57.30  126C.10, subdivision 13, is amended to read: 
 57.31     Subd. 13.  [TOTAL OPERATING CAPITAL REVENUE.] (a) For 
 57.32  fiscal year 2000 and thereafter, total operating capital revenue 
 57.33  for a district equals the amount determined under paragraph (b) 
 57.34  or (c), plus $68 $73 times the adjusted marginal cost pupil 
 57.35  units for the school year.  The revenue must be placed in a 
 57.36  reserved account in the general fund and may only be used 
 58.1   according to paragraph (d) or subdivision 14. 
 58.2      (b) For fiscal years 2000 and later, capital revenue for a 
 58.3   district equals $100 times the district's maintenance cost index 
 58.4   times its adjusted marginal cost pupil units for the school year.
 58.5      (c) For fiscal years 2000 and later, the revenue for a 
 58.6   district that operates a program under section 124D.128, is 
 58.7   increased by an amount equal to $30 times the number of marginal 
 58.8   cost pupil units served at the site where the program is 
 58.9   implemented. 
 58.10     (d) For fiscal years 2001, 2002, and 2003, the district 
 58.11  must reserve an amount equal to $5 per adjusted marginal cost 
 58.12  pupil unit for telecommunication access costs.  Reserve revenue 
 58.13  under this paragraph must first be used to pay for ongoing or 
 58.14  recurring telecommunication access costs, including access to 
 58.15  data lines, video lines, or Internet access.  Any revenue 
 58.16  remaining after covering all ongoing or recurring access costs 
 58.17  may be used for computer hardware or equipment. 
 58.18     Sec. 14.  Minnesota Statutes 1998, section 126C.40, 
 58.19  subdivision 1, is amended to read: 
 58.20     Subdivision 1.  [TO LEASE BUILDING OR LAND.] (a) When a 
 58.21  district finds it economically advantageous to rent or lease a 
 58.22  building or land for any instructional purposes or for school 
 58.23  storage or furniture repair, and it determines that the 
 58.24  operating capital revenue authorized under section 126C.10, 
 58.25  subdivision 13, is insufficient for this purpose, it may apply 
 58.26  to the commissioner for permission to make an additional capital 
 58.27  expenditure levy increase its equalized facilities revenue under 
 58.28  section 123B.53, subdivision 5, for this purpose.  An 
 58.29  application for permission to levy under this subdivision 
 58.30  increase the equalized facilities revenue must contain financial 
 58.31  justification for the proposed levy increase, the terms and 
 58.32  conditions of the proposed lease, and a description of the space 
 58.33  to be leased and its proposed use.  
 58.34     (b) The criteria for approval of applications to levy under 
 58.35  this subdivision must include:  the reasonableness of the price, 
 58.36  the appropriateness of the space to the proposed activity, the 
 59.1   feasibility of transporting pupils to the leased building or 
 59.2   land, conformity of the lease to the laws and rules of the state 
 59.3   of Minnesota, and the appropriateness of the proposed lease to 
 59.4   the space needs and the financial condition of the district.  
 59.5   The commissioner must not authorize a levy revenue under this 
 59.6   subdivision in an amount greater than the cost to the district 
 59.7   of renting or leasing a building or land for approved purposes.  
 59.8   The proceeds of this levy must not be used for custodial or 
 59.9   other maintenance services.  A district may not levy receive 
 59.10  revenue under this subdivision for the purpose of leasing or 
 59.11  renting a district-owned building or site to itself. 
 59.12     (c) For agreements finalized after July 1, 1997, a district 
 59.13  may not levy receive revenue under this subdivision for the 
 59.14  purpose of leasing:  (1) a newly constructed building used 
 59.15  primarily for regular kindergarten, elementary, or secondary 
 59.16  instruction; or (2) a newly constructed building addition or 
 59.17  additions used primarily for regular kindergarten, elementary, 
 59.18  or secondary instruction that contains more than 20 percent of 
 59.19  the square footage of the previously existing building. 
 59.20     (d) Notwithstanding paragraph (b), a district may levy 
 59.21  under this subdivision for the purpose of leasing or renting a 
 59.22  district-owned building or site to itself only if the amount is 
 59.23  needed by the district to make payments required by a lease 
 59.24  purchase agreement, installment purchase agreement, or other 
 59.25  deferred payments agreement authorized by law, and the levy 
 59.26  meets the requirements of paragraph (c).  A levy authorized for 
 59.27  a district by the commissioner under this paragraph may be in 
 59.28  the amount needed by the district to make payments required by a 
 59.29  lease purchase agreement, installment purchase agreement, or 
 59.30  other deferred payments agreement authorized by law, provided 
 59.31  that any agreement include a provision giving the school 
 59.32  districts the right to terminate the agreement annually without 
 59.33  penalty. 
 59.34     (e)  The total levy revenue under this subdivision for a 
 59.35  district for any year must not exceed $100 times the resident 
 59.36  pupil units for the fiscal year to which the levy is 
 60.1   attributable. 
 60.2      (e) (f) For agreements for which a review and comment have 
 60.3   been submitted to the department of children, families, and 
 60.4   learning after April 1, 1998, the term "instructional purpose" 
 60.5   as used in this subdivision excludes expenditures on stadiums. 
 60.6      (g) For purposes of this subdivision, any reference to 
 60.7   building or land includes personal property. 
 60.8      (h) The commissioner of children, families, and learning 
 60.9   may authorize a school district to exceed the limit in paragraph 
 60.10  (e) if the school district petitions the commissioner for 
 60.11  approval.  The commissioner shall grant approval to a school 
 60.12  district to exceed the limit in paragraph (e) for not more than 
 60.13  five years if the district meets the following criteria: 
 60.14     (1) the school district has been experiencing pupil 
 60.15  enrollment growth in the preceding five years; 
 60.16     (2) the purpose of the increased levy is in the long-term 
 60.17  public interest; 
 60.18     (3) the purpose of the increased levy promotes colocation 
 60.19  of government services; and 
 60.20     (4) the purpose of the increased levy is in the long-term 
 60.21  interest of the district by avoiding over construction of school 
 60.22  facilities.  
 60.23     <b>EFFECTIVE DATE:</b>  This section is effective for revenue for 
 60.24  fiscal year 2002 and thereafter.  
 60.25     Sec. 15.  Minnesota Statutes 1998, section 126C.40, 
 60.26  subdivision 2, is amended to read: 
 60.27     Subd. 2.  [PRE-JULY 1990 LEASE PURCHASE, INSTALLMENT BUYS.] 
 60.28  A district may annually levy increase the amount of its 
 60.29  equalized facilities revenue needed to make payments required by 
 60.30  a lease purchase agreement, installment purchase agreement, or 
 60.31  other deferred payment agreement authorized by Minnesota 
 60.32  Statutes 1989 Supplement, section 465.71, if:  
 60.33     (1) the agreement was approved by the commissioner before 
 60.34  July 1, 1990, according to Minnesota Statutes 1989 Supplement, 
 60.35  section 275.125, subdivision 11d; or 
 60.36     (2) the district levied in 1989 for the payments. 
 61.1      <b>EFFECTIVE DATE:</b>  This section is effective for revenue for 
 61.2   fiscal year 2002 and thereafter.  
 61.3      Sec. 16.  Minnesota Statutes 1998, section 126C.40, 
 61.4   subdivision 3, is amended to read: 
 61.5      Subd. 3.  [COOPERATING DISTRICTS.] A district that has an 
 61.6   agreement according to section 123A.30 or 123A.32 may levy 
 61.7   increase its equalized facilities revenue under section 123B.53, 
 61.8   subdivision 5, for the repair costs, as approved by the 
 61.9   department of a building located in another district that is a 
 61.10  party to the agreement. 
 61.11     <b>EFFECTIVE DATE:</b>  This section is effective for revenue for 
 61.12  fiscal year 2002 and thereafter.  
 61.13     Sec. 17.  Minnesota Statutes 1999 Supplement, section 
 61.14  126C.40, subdivision 6, is amended to read: 
 61.15     Subd. 6.  [LEASE PURCHASE; INSTALLMENT BUYS.] (a) Upon 
 61.16  application to, and approval by, the commissioner in accordance 
 61.17  with the procedures and limits in subdivision 1, paragraphs (a) 
 61.18  and (b), a district, as defined in this subdivision, may: 
 61.19     (1) purchase real or personal property under an installment 
 61.20  contract or may lease real or personal property with an option 
 61.21  to purchase under a lease purchase agreement, by which 
 61.22  installment contract or lease purchase agreement title is kept 
 61.23  by the seller or vendor or assigned to a third party as security 
 61.24  for the purchase price, including interest, if any; and 
 61.25     (2) annually levy increase its equalized facilities revenue 
 61.26  under section 123B.53, subdivision 5, by the amounts necessary 
 61.27  to pay the district's obligations under the installment contract 
 61.28  or lease purchase agreement. 
 61.29     (b) The obligation created by the installment contract or 
 61.30  the lease purchase agreement must not be included in the 
 61.31  calculation of net debt for purposes of section 475.53, and does 
 61.32  not constitute debt under other law.  An election is not 
 61.33  required in connection with the execution of the installment 
 61.34  contract or the lease purchase agreement. 
 61.35     (c) The proceeds of the levy equalized facilities revenue 
 61.36  increase authorized by this subdivision must not be used to 
 62.1   acquire a facility to be primarily used for athletic or school 
 62.2   administration purposes. 
 62.3      (d) For the purposes of this subdivision, "district" means: 
 62.4      (1) a school district required to have a comprehensive plan 
 62.5   for the elimination of segregation whose plan has been 
 62.6   determined by the commissioner to be in compliance with 
 62.7   department of children, families, and learning rules relating to 
 62.8   equality of educational opportunity and school desegregation and 
 62.9   for a district qualifying for revenue under section 124D.86, 
 62.10  subdivision 3, clause (4), where the property subject to the 
 62.11  levy authority is determined by the commissioner to contribute 
 62.12  to implementation of the desegregation plan; or 
 62.13     (2) a school district that participates in a joint program 
 62.14  for interdistrict desegregation with a district defined in 
 62.15  clause (1) if the facility acquired under this subdivision is to 
 62.16  be primarily used for the joint program and the commissioner 
 62.17  determines that the joint programs are being undertaken to 
 62.18  implement the districts' desegregation plan. 
 62.19     (e) Notwithstanding subdivision 1, the prohibition against 
 62.20  a levy by a district to lease receiving revenue for the purpose 
 62.21  of leasing or rent renting a district-owned building to itself 
 62.22  does not apply to levies revenues otherwise authorized by this 
 62.23  subdivision. 
 62.24     (f) For the purposes of this subdivision, any references in 
 62.25  subdivision 1 to building or land shall include personal 
 62.26  property. 
 62.27     <b>EFFECTIVE DATE:</b>  This section is effective for revenue for 
 62.28  fiscal year 2002 and thereafter.  
 62.29     Sec. 18.  Minnesota Statutes 1998, section 126C.69, 
 62.30  subdivision 15, is amended to read: 
 62.31     Subd. 15.  [BOND SALE LIMITATIONS.] A district having an 
 62.32  outstanding state loan must not issue and sell any bonds on the 
 62.33  public market, except to refund state loans, unless it agrees to 
 62.34  make the maximum effort debt service levy in each later year at 
 62.35  the higher rate provided in section 126C.63, subdivision 8, and 
 62.36  unless it schedules the maturities of the bonds according to 
 63.1   section 475.54, subdivision 2.  A district that refunds bonds at 
 63.2   a lower interest rate may continue to make the maximum effort 
 63.3   debt service levy in each later year at the current rate 
 63.4   provided in section 126C.63, subdivision 8, if the district can 
 63.5   demonstrate to the commissioner's satisfaction that the 
 63.6   district's repayments of the state loan will not be reduced 
 63.7   below the previous year's level.  The district must report each 
 63.8   sale to the commissioner. 
 63.9      After a district's capital loan has been outstanding for 20 
 63.10  30 years, the district must not issue bonds on the public market 
 63.11  except to refund the loan. 
 63.12     Sec. 19.  Laws 1998, chapter 404, section 5, subdivision 
 63.13  11, as amended by Laws 1999, chapter 26, section 1, is amended 
 63.14  to read: 
 63.15  Subd. 11.  McLeod West               
 63.16              School District No. 2887                    500,000
 63.17  For a grant to the McLeod West school 
 63.18  district No. 2887, to design and 
 63.19  acquire land for a new grade 7 through 
 63.20  12 remodel an educational facility.  
 63.21     <b>EFFECTIVE DATE:</b>  This section is effective the day 
 63.22  following final enactment. 
 63.23     Sec. 20.  Laws 1999, chapter 241, article 4, section 27, 
 63.24  subdivision 2, is amended to read: 
 63.25     Subd. 2.  [HEALTH AND SAFETY AID.] For health and safety 
 63.26  aid according to Minnesota Statutes, section 123B.57, 
 63.27  subdivision 5: 
 63.28       $14,528,000 $14,015,000   .....     2000 
 63.29       $14,957,000 $14,450,000   .....     2001 
 63.30     The 2000 appropriation includes $1,415,000 for 1999 and 
 63.31  $13,113,000 $12,812,000 for 2000.  
 63.32     The 2001 appropriation includes $1,456,000 $1,423,000 for 
 63.33  2000 and $13,501,000 $13,365,000 for 2001.  
 63.34     Sec. 21.  Laws 1999, chapter 241, article 4, section 27, 
 63.35  subdivision 3, is amended to read: 
 63.36     Subd. 3.  [DEBT SERVICE AID.] For debt service aid 
 63.37  according to Minnesota Statutes, section 123B.53, subdivision 6: 
 63.38       $33,165,000 $33,141,000   .....     2000
 64.1        $32,084,000 $29,400,000   .....     2001
 64.2      The 2000 appropriation includes $3,842,000 for 1999 and 
 64.3   $29,323,000 $29,299,000 for 2000. 
 64.4      The 2001 appropriation includes $3,256,000 $3,255,000 for 
 64.5   2000 and $28,828,000 $25,841,000 for 2001. 
 64.6      Sec. 22.  Laws 1999, chapter 241, article 4, section 27, 
 64.7   subdivision 4, is amended to read: 
 64.8      Subd. 4.  [INTERACTIVE TELEVISION (ITV) AID.] For 
 64.9   interactive television (ITV) aid under Minnesota Statutes, 
 64.10  section 126C.40, subdivision 4: 
 64.11       $4,197,000 $4,194,000    .....     2000
 64.12       $2,851,000 $2,761,000    .....     2001
 64.13     The 2000 appropriation includes $405,000 for 1999 and 
 64.14  $3,792,000 $3,784,000 for 2000. 
 64.15     The 2001 appropriation includes $421,000 for 2000 and 
 64.16  $2,430,000 $2,338,000 for 2001. 
 64.17     Sec. 23.  Laws 1999, chapter 241, article 4, section 27, 
 64.18  subdivision 5, is amended to read: 
 64.19     Subd. 5.  [ALTERNATIVE FACILITIES BONDING AID.] For 
 64.20  alternative facilities bonding aid, according to Minnesota 
 64.21  Statutes, section 123B.59: 
 64.22       $19,058,000 $18,920,000   .....     2000 
 64.23       $19,286,000 $19,134,000   .....     2001 
 64.24     The 2000 appropriation includes $1,700,000 for 2000 and 
 64.25  $17,358,000 $17,220,000 for 2001. 
 64.26     The 2001 appropriation includes $1,928,000 $1,914,000 for 
 64.27  2000 and $17,358,000 $17,288,000 for 2001. 
 64.28     Sec. 24.  [ONE-TIME FACILITIES AID.] 
 64.29     (a) For fiscal year 2001 only, a district's one-time 
 64.30  facilities aid is equal to: 
 64.31     (1) $11.50 times the adjusted marginal cost pupil units for 
 64.32  the school year; plus 
 64.33     (2) $25 times the adjusted marginal cost pupil units for 
 64.34  the school year for a district that does not qualify for 
 64.35  alternative facilities bonding under Minnesota Statutes, section 
 64.36  123B.59, or under Laws 1999, chapter 241, article 4, section 25. 
 65.1      (b) Aid received under this section must be used for 
 65.2   deferred maintenance, to make accessibility improvements, or to 
 65.3   make fire, safety, or health repairs. 
 65.4      Sec. 25.  [PROJECT QUALIFICATION; TRITON.] 
 65.5      Subdivision 1.  [ELIGIBILITY.] Notwithstanding Minnesota 
 65.6   Statutes, section 123B.57, independent school district No. 2125, 
 65.7   Triton, may include all unreimbursed costs associated with the 
 65.8   testing, evaluation, removal, and replacement of building 
 65.9   fixtures and equipment necessitated by the discovery of mold in 
 65.10  a school building in its health and safety plan not to exceed 
 65.11  $400,000. 
 65.12     Subd. 2.  [COST RECOVERY.] Independent school district No. 
 65.13  2125, Triton, must pursue all reasonable options to recover 
 65.14  expenses resulting from the mold from its insurance company, the 
 65.15  subcontractors, and any other parties responsible for the damage 
 65.16  caused by the mold. 
 65.17     <b>EFFECTIVE DATE:</b>  This section is effective the day 
 65.18  following final enactment. 
 65.19     Sec. 26.  [MAXIMUM EFFORT CAPITAL LOANS.] 
 65.20     Subdivision 1.  [INDEPENDENT SCHOOL DISTRICT NO. 38, RED 
 65.21  LAKE.] $11,166,000 is appropriated to the commissioner of 
 65.22  children, families, and learning to make a capital loan to 
 65.23  independent school district No. 38, Red Lake.  $11,166,296 is 
 65.24  approved for a capital loan to independent school district No. 
 65.25  38, Red Lake. 
 65.26     Subd. 2.  [INDEPENDENT SCHOOL DISTRICT NO. 115, CASS 
 65.27  LAKE.] $7,505,000 is appropriated to the commissioner of 
 65.28  children, families, and learning to make a capital loan to 
 65.29  independent school district No. 115, Cass Lake.  $7,505,000 is 
 65.30  approved for a capital loan to independent school district No. 
 65.31  115, Cass Lake. 
 65.32     Subd. 3.  [INDEPENDENT SCHOOL DISTRICT NO. 299, 
 65.33  CALEDONIA.] $14,134,000 is appropriated to the commissioner of 
 65.34  children, families, and learning to make a capital loan to 
 65.35  independent school district No. 299, Caledonia.  $14,133,788 is 
 65.36  approved for a capital loan to independent school district No. 
 66.1   299, Caledonia. 
 66.2      Subd. 4.  [INDEPENDENT SCHOOL DISTRICT NO. 306, 
 66.3   LAPORTE.] $7,200,000 is appropriated to the commissioner of 
 66.4   children, families, and learning to make a capital loan to 
 66.5   independent school district No. 306, LaPorte.  $7,200,000 is 
 66.6   approved for a capital loan to independent school district No. 
 66.7   306, LaPorte.  
 66.8      Subd. 5.  [INDEPENDENT SCHOOL DISTRICT NO. 914, 
 66.9   ULEN-HITTERDAHL.] $4,025,000 is appropriated to the commissioner 
 66.10  of children, families, and learning to make a capital loan to 
 66.11  independent school district No. 914, Ulen-Hitterdahl.  
 66.12  $4,025,000 is approved for a capital loan to independent school 
 66.13  district No. 914, Ulen-Hitterdahl. 
 66.14     <b>EFFECTIVE DATE:</b>  This section is effective the day 
 66.15  following final enactment. 
 66.16     Sec. 27.  [COMMISSIONER RECOMMENDATION.] 
 66.17     By February 1, 2003, the commissioner of children, 
 66.18  families, and learning, in cooperation with the commissioner of 
 66.19  administration and the Minnesota education telecommunication 
 66.20  council, shall recommend to the legislature a permanent method 
 66.21  for funding telecommunications access as part of the general 
 66.22  education revenue formula under Minnesota Statutes, section 
 66.23  126C.10.  The commissioner shall consider the following in 
 66.24  making the recommendation: 
 66.25     (1) the range of costs for providing a minimum level of 
 66.26  telecommunications access for all students; 
 66.27     (2) the flexibility that is necessary to accommodate 
 66.28  emerging technological advances in the telecommunications field; 
 66.29  and 
 66.30     (3) other related efforts within the state, including the 
 66.31  state's higher education and public library systems. 
 66.32     Sec. 28.  [REVISOR'S INSTRUCTION.] 
 66.33     In subsequent editions of Minnesota Statutes, the revisor 
 66.34  of statutes shall change the headnote on section 123B.63 to 
 66.35  "BUILDING CONSTRUCTION AND LEASE PROGRAM." 
 66.36     Sec. 29.  [FACILITY CONSOLIDATION IMPACT REVENUE.] 
 67.1      For fiscal year 2002 only, a school district that, as a 
 67.2   result of the consolidation of facility levies in this act, 
 67.3   experiences an increase in overall district levy, shall receive 
 67.4   an amount of aid equal to the amount of increased levy.  The 
 67.5   property tax levy for taxes payable in 2001 shall be reduced by 
 67.6   the amount of the state aid. 
 67.7      Sec. 30.  [APPROPRIATIONS.] 
 67.8      Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
 67.9   LEARNING.] The sums indicated in this section are appropriated 
 67.10  from the general fund to the department of children, families, 
 67.11  and learning for fiscal years designated. 
 67.12     Subd. 2.  [TELECOMMUNICATION ACCESS REVENUE.] For 
 67.13  telecommunication access cost revenue under Minnesota Statutes, 
 67.14  section 125B.25: 
 67.15       $26,230,000     .....     2001
 67.16     Subd. 3.  [INTEREST ON FLOOD LOANS.] For interest paid on 
 67.17  flood loans: 
 67.18       $   970,000     .....     2000
 67.19     Of this amount, $761,000 is for independent school district 
 67.20  No. 595, East Grand Forks, and $209,000 is for independent 
 67.21  school district No. 2854, Ada-Borup. 
 67.22     This appropriation is available until June 30, 2001. 
 67.23     Subd. 4.  [ONE-TIME FACILITIES AID.] For one-time 
 67.24  facilities aid: 
 67.25       $26,701,000     .....     2001
 67.26     Subd. 5.  [SCHOOL FACILITIES GRANTS.] For grants to 
 67.27  construct school facilities: 
 67.28       $ 7,100,000     .....     2000
 67.29     Of this amount: 
 67.30     (a) $4,100,000 is for a grant to independent school 
 67.31  district No. 25, Pine Point, for the construction of a new 
 67.32  school facility serving kindergarten through grade 8. 
 67.33     (b) $3,000,000 is for a grant to independent school 
 67.34  district No. 495, Grand Meadow, to construct a new school using 
 67.35  monolithic dome construction techniques.  The commissioner shall 
 67.36  award the grant to demonstrate that a school constructed using 
 68.1   monolithic dome construction techniques can provide operating 
 68.2   and construction savings for school districts throughout the 
 68.3   state.  Grand Meadow school district must agree to provide the 
 68.4   state with information and data about this construction method 
 68.5   and with an analysis of a monolithic dome as a suitable 
 68.6   educational environment.  
 68.7      Subd. 6.  [MAXIMUM EFFORT CAPITAL LOANS.] For capital loans 
 68.8   to school districts as provided in Minnesota Statutes, sections 
 68.9   126C.60 to 126C.72: 
 68.10       $44,031,000     .....     2001
 68.11     The commissioner shall review the proposed plan and budget 
 68.12  of the project and may reduce the amount of the loan to ensure 
 68.13  that the project will be economical.  The commissioner may 
 68.14  recover the cost incurred by the commissioner for any 
 68.15  professional services associated with the final review and 
 68.16  construction by reducing the proceeds of the loan paid by the 
 68.17  district.  The commissioner shall report to the legislature any 
 68.18  reductions to the above appropriations by January 10, 2001.  
 68.19  Notwithstanding any contrary provision of Minnesota Statutes, 
 68.20  sections 126C.60 to 126C.72, the repayments for the capital 
 68.21  loans approved in section 28 shall be made to the state general 
 68.22  fund and shall not be transferred to the school loan bond 
 68.23  account.  The capital loan contract shall not contain 
 68.24  restrictions on investment of the loan funds by the school 
 68.25  district that would otherwise be required if the loans were 
 68.26  funded from state bond proceeds.  
 68.27     Subd. 7.  [ERITREAN COMMUNITY CENTER OF MINNESOTA.] For a 
 68.28  building lease start-up grant for an Eritrean community center 
 68.29  of Minnesota: 
 68.30       $   150,000     .....     2001
 68.31     The commissioner shall consult with the commissioner of 
 68.32  administration on the availability of state-owned building space 
 68.33  for the community center. 
 68.34     Subd. 8.  [FACILITIES CONSOLIDATION IMPACT REVENUE.] For 
 68.35  facilities consolidation impact revenue: 
 68.36       $2,155,000     .....     2001 
 69.1                              ARTICLE 5 
 69.2                EDUCATION EXCELLENCE AND OTHER POLICY 
 69.3      Section 1.  Minnesota Statutes 1998, section 120B.13, 
 69.4   subdivision 4, is amended to read: 
 69.5      Subd. 4.  [INFORMATION.] The commissioner shall submit the 
 69.6   following information to the education committees of the 
 69.7   legislature each year by January February 1: 
 69.8      (1) the number of pupils enrolled in advanced placement and 
 69.9   international baccalaureate courses in each school district; 
 69.10     (2) the number of teachers in each district attending 
 69.11  training programs offered by the college board or International 
 69.12  Baccalaureate North America, Inc.; 
 69.13     (3) the number of teachers in each district participating 
 69.14  in support programs; 
 69.15     (4) recent trends in the field of advanced placement and 
 69.16  international baccalaureate programs; 
 69.17     (5) expenditures for each category in this section; and 
 69.18     (6) other recommendations for the state program. 
 69.19     Sec. 2.  Minnesota Statutes 1999 Supplement, section 
 69.20  120B.30, subdivision 1, is amended to read: 
 69.21     Subdivision 1.  [STATEWIDE TESTING.] (a) The commissioner, 
 69.22  with advice from experts with appropriate technical 
 69.23  qualifications and experience and stakeholders, shall include in 
 69.24  the comprehensive assessment system, for each grade level to be 
 69.25  tested, a single statewide norm-referenced or 
 69.26  criterion-referenced test, or a combination of a norm-referenced 
 69.27  and a criterion-referenced test, which shall be highly 
 69.28  correlated with the state's graduation standards and 
 69.29  administered annually to all students in the third, fifth, and 
 69.30  eighth grades.  The commissioner shall establish one or more 
 69.31  months during which schools shall administer the tests to 
 69.32  students each school year.  Only Minnesota basic skills tests in 
 69.33  reading, mathematics, and writing shall fulfill students' 
 69.34  testing requirements for a passing state notation.  The passing 
 69.35  scores of the state tests in reading and mathematics are the 
 69.36  equivalent of:  
 70.1      (1) 70 percent correct for students entering grade 9 in 
 70.2   1996; and 
 70.3      (2) 75 percent correct for students entering grade 9 in 
 70.4   1997 and thereafter, as based on the first uniform test 
 70.5   administration of February 1998. 
 70.6      (b) In addition, at the secondary level, districts shall 
 70.7   assess student performance in all required learning areas and 
 70.8   selected required standards within each area of the profile of 
 70.9   learning.  The testing instruments and testing process shall be 
 70.10  determined by the commissioner.  The results shall be aggregated 
 70.11  at the site and district level.  The testing shall be 
 70.12  administered beginning in the 1999-2000 school year and 
 70.13  thereafter. 
 70.14     (c) The comprehensive assessment system shall include an 
 70.15  evaluation of school site and school district performance levels 
 70.16  during the 1997-1998 school year and thereafter using an 
 70.17  established performance baseline developed from students' test 
 70.18  scores under this section that records, at a minimum, students' 
 70.19  unweighted mean test scores in each tested subject, a second 
 70.20  performance baseline that reports, at a minimum, the same 
 70.21  unweighted mean test scores of only those students enrolled in 
 70.22  the school by January 1 of the previous school year, and a third 
 70.23  performance baseline that reports the same unweighted test 
 70.24  scores of all students except those students receiving limited 
 70.25  English proficiency instruction.  The evaluation also shall 
 70.26  record separately, in proximity to the performance baselines, 
 70.27  the percentages of students who are eligible to receive a free 
 70.28  or reduced price school meal, demonstrate limited English 
 70.29  proficiency, or are eligible to receive special education 
 70.30  services. 
 70.31     (d) In addition to the testing and reporting requirements 
 70.32  under paragraphs (a), (b), and (c), the commissioner shall 
 70.33  include the following components in the statewide educational 
 70.34  accountability and public reporting system: 
 70.35     (1) uniform statewide testing of all third, fifth, eighth, 
 70.36  and post-eighth grade students with exemptions, only with parent 
 71.1   or guardian approval, from the testing requirement only for 
 71.2   those very few students for whom the student's individual 
 71.3   education plan team under sections 125A.05 and 125A.06, 
 71.4   determines that the student is incapable of taking a statewide 
 71.5   test, or a limited English proficiency student under section 
 71.6   124D.59, subdivision 2, if the student has been in the United 
 71.7   States for fewer than 12 months and for whom special language 
 71.8   barriers exist, such as the student's native language does not 
 71.9   have a written form or the district does not have access to 
 71.10  appropriate interpreter services for the student's native 
 71.11  language; 
 71.12     (2) educational indicators that can be aggregated and 
 71.13  compared across school districts and across time on a statewide 
 71.14  basis; 
 71.15     (3) students' scores on the American College Test; 
 71.16     (4) participation in the National Assessment of Educational 
 71.17  Progress so that the state can benchmark its performance against 
 71.18  the nation and other states, and, where possible, against other 
 71.19  countries, and contribute to the national effort to monitor 
 71.20  achievement; and 
 71.21     (5) basic skills and advanced competencies connecting 
 71.22  teaching and learning to high academic standards, assessment, 
 71.23  and transitions to citizenship and employment. 
 71.24     (e) Districts must report exemptions under paragraph (d), 
 71.25  clause (1), to the commissioner consistent with a format 
 71.26  provided by the commissioner. 
 71.27     <b>EFFECTIVE DATE:</b>  This section is effective the day 
 71.28  following final enactment and applies to test administrations 
 71.29  beginning in February 2000. 
 71.30     Sec. 3.  Minnesota Statutes 1998, section 121A.22, 
 71.31  subdivision 2, is amended to read: 
 71.32     Subd. 2.  [EXCLUSIONS.] In addition, this section does not 
 71.33  apply to drugs or medicine: 
 71.34     (1) that can be purchased without a prescription; 
 71.35     (2) that are used by a pupil who is 18 years old or older; 
 71.36     (3) (2) that are used in connection with services for which 
 72.1   a minor may give effective consent, including section 144.343, 
 72.2   subdivision 1, and any other law; 
 72.3      (4) (3) that are used in situations in which, in the 
 72.4   judgment of the school personnel who are present or available, 
 72.5   the risk to the pupil's life or health is of such a nature that 
 72.6   drugs or medicine should be given without delay; 
 72.7      (5) (4) that are used off the school grounds; 
 72.8      (6) (5) that are used in connection with athletics or extra 
 72.9   curricular activities; 
 72.10     (7) (6) that are used in connection with activities that 
 72.11  occur before or after the regular school day; or 
 72.12     (8) (7) that are provided or administered by a public 
 72.13  health agency in order to prevent or control an illness or a 
 72.14  disease outbreak as provided for in sections 144.05 and 144.12. 
 72.15     Sec. 4.  Minnesota Statutes 1998, section 121A.22, 
 72.16  subdivision 3, is amended to read: 
 72.17     Subd. 3.  [LABELING.] Prescription drugs or medicine 
 72.18  subject to this section must be in a container with a label 
 72.19  prepared by a pharmacist according to section 151.212 and 
 72.20  applicable rules.  Nonprescription drugs or medicines must be in 
 72.21  the original container with a label containing use instructions. 
 72.22     Sec. 5.  [121A.582] [STUDENT DISCIPLINE; REASONABLE FORCE.] 
 72.23     Subdivision 1.  [REASONABLE FORCE STANDARD.] (a) A teacher, 
 72.24  in exercising the person's lawful authority, may use reasonable 
 72.25  force when it is necessary under the circumstances to correct or 
 72.26  restrain a student or prevent bodily harm or death to another. 
 72.27     (b) A school employee, school bus driver, or other agent of 
 72.28  a district, in exercising the person's lawful authority, may use 
 72.29  reasonable force when it is necessary under the circumstances to 
 72.30  restrain a student or prevent bodily harm or death to another. 
 72.31     (c) Paragraphs (a) and (b) do not authorize conduct 
 72.32  prohibited under sections 121A.58 and 121A.67. 
 72.33     Subd. 2.  [CIVIL LIABILITY.] (a) A teacher who, in the 
 72.34  exercise of the person's lawful authority, uses reasonable force 
 72.35  under the standard in subdivision 1, paragraph (a), has a 
 72.36  defense against a civil action for damages under section 123B.25.
 73.1      (b) A school employee, bus driver, or other agent of a 
 73.2   district who, in the exercise of the person's lawful authority, 
 73.3   uses reasonable force under the standard in subdivision 1, 
 73.4   paragraph (b), has a defense against a civil action for damages 
 73.5   under section 123B.25. 
 73.6      Subd. 3.  [CRIMINAL PROSECUTION.] (a) A teacher who, in the 
 73.7   exercise of the person's lawful authority, uses reasonable force 
 73.8   under the standard in subdivision 1, paragraph (a), has a 
 73.9   defense against a criminal prosecution under section 609.06, 
 73.10  subdivision 1. 
 73.11     (b) A school employee, bus driver, or other agent of a 
 73.12  district who, in the exercise of the person's lawful authority, 
 73.13  uses reasonable force under the standard in subdivision 1, 
 73.14  paragraph (b), has a defense against a criminal prosecution 
 73.15  under section 609.06, subdivision 1. 
 73.16     Subd. 4.  [SUPPLEMENTARY RIGHTS AND DEFENSES.] Any right or 
 73.17  defense in this section is supplementary to those specified in 
 73.18  section 121A.58, 121A.67, 123B.25, or 609.06, subdivision 1. 
 73.19     <b>EFFECTIVE DATE:</b>  This section is effective for the 
 73.20  2000-2001 school year and later. 
 73.21     Sec. 6.  Minnesota Statutes 1998, section 121A.61, 
 73.22  subdivision 3, is amended to read: 
 73.23     Subd. 3.  [POLICY COMPONENTS.] The policy must include at 
 73.24  least the following components:  
 73.25     (a) rules governing student conduct and procedures for 
 73.26  informing students of the rules; 
 73.27     (b) the grounds for removal of a student from a class; 
 73.28     (c) the authority of the classroom teacher to remove 
 73.29  students from the classroom pursuant to procedures and rules 
 73.30  established in the district's policy; 
 73.31     (d) the procedures for removal of a student from a class by 
 73.32  a teacher, school administrator, or other school district 
 73.33  employee; 
 73.34     (e) the period of time for which a student may be removed 
 73.35  from a class, which may not exceed five class periods for a 
 73.36  violation of a rule of conduct; 
 74.1      (f) provisions relating to the responsibility for and 
 74.2   custody of a student removed from a class; 
 74.3      (g) the procedures for return of a student to the specified 
 74.4   class from which the student has been removed; 
 74.5      (h) the procedures for notifying a student and the 
 74.6   student's parents or guardian of violations of the rules of 
 74.7   conduct and of resulting disciplinary actions; 
 74.8      (i) any procedures determined appropriate for encouraging 
 74.9   early involvement of parents or guardians in attempts to improve 
 74.10  a student's behavior; 
 74.11     (j) any procedures determined appropriate for encouraging 
 74.12  early detection of behavioral problems; 
 74.13     (k) any procedures determined appropriate for referring a 
 74.14  student in need of special education services to those services; 
 74.15     (1) the procedures for consideration of whether there is a 
 74.16  need for a further assessment or of whether there is a need for 
 74.17  a review of the adequacy of a current individual education plan 
 74.18  of a student with a disability who is removed from class; 
 74.19     (m) procedures for detecting and addressing chemical abuse 
 74.20  problems of a student while on the school premises; 
 74.21     (n) the minimum consequences for violations of the code of 
 74.22  conduct; and 
 74.23     (o) procedures for immediate and appropriate interventions 
 74.24  tied to violations of the code; and 
 74.25     (p) a provision that states that a teacher, school 
 74.26  employee, school bus driver, or other agent of the school 
 74.27  district may use reasonable force in compliance with section 
 74.28  121A.582 and other laws.  
 74.29     <b>EFFECTIVE DATE:</b>  The section is effective for the 2001-2002 
 74.30  school year and later. 
 74.31     Sec. 7.  Minnesota Statutes 1999 Supplement, section 
 74.32  122A.18, subdivision 3, is amended to read: 
 74.33     Subd. 3.  [SUPERVISORY AND COACH QUALIFICATIONS; CODE OF 
 74.34  ETHICS.] (a) The commissioner of children, families, and 
 74.35  learning must issue licenses under its jurisdiction to persons 
 74.36  the commissioner finds to be qualified and competent for their 
 75.1   respective positions under the rules it adopts.  The 
 75.2   commissioner of children, families, and learning may develop, by 
 75.3   rule, a code of ethics for supervisory personnel covering 
 75.4   standards of professional practices, including areas of ethical 
 75.5   conduct and professional performance and methods of enforcement. 
 75.6      (b) Notwithstanding Minnesota Rules, part 3512.2500, the 
 75.7   commissioner of children, families, and learning may approve a 
 75.8   licensure program offered by an entity other than a college or 
 75.9   university in administration and supervision, if the program 
 75.10  meets the requirements for approval and continuation that apply 
 75.11  to colleges and universities. 
 75.12     Sec. 8.  Minnesota Statutes 1999 Supplement, section 
 75.13  122A.23, is amended to read: 
 75.14     122A.23 [APPLICANTS TRAINED IN OTHER STATES.] 
 75.15     Subdivision 1.  [PREPARATION EQUIVALENCY.] When a license 
 75.16  to teach is authorized to be issued to any holder of a diploma 
 75.17  or a degree of a Minnesota state university, or of the 
 75.18  University of Minnesota, or of a liberal arts university, or a 
 75.19  technical training institution, such license may also, in the 
 75.20  discretion of the board of teaching or the commissioner of 
 75.21  children, families, and learning, whichever has jurisdiction, be 
 75.22  issued to any holder of a diploma or a degree of a teacher 
 75.23  training institution of equivalent rank and standing of any 
 75.24  other state.  The diploma or degree must be granted by virtue of 
 75.25  the completion of a course in teacher preparation essentially 
 75.26  equivalent in content to that required by such Minnesota state 
 75.27  university or the University of Minnesota or a liberal arts 
 75.28  university in Minnesota or a technical training institution as 
 75.29  preliminary to the granting of a diploma or a degree of the same 
 75.30  rank and class. 
 75.31     Subd. 2.  [APPLICANTS LICENSED IN OTHER STATES.] (a) If an 
 75.32  applicant for a Minnesota teaching license holds at least a 
 75.33  baccalaureate degree from a regionally accredited college or 
 75.34  university, and holds or has held a similar teaching license in 
 75.35  another state, and the license was issued based on successful 
 75.36  completion of teacher preparation program approved by the 
 76.1   issuing state, including field-specific methods of teaching and 
 76.2   student teaching or essentially equivalent experience, then the 
 76.3   board of teaching shall issue the license using the criteria in 
 76.4   paragraphs (b) to (e). 
 76.5      (b) If the applicant has successfully completed all 
 76.6   examinations and human relations preparation components required 
 76.7   by the board of teaching and holds or has held a license in 
 76.8   another state to teach the same content field and grade levels 
 76.9   equal to, greater than, or not more than one year less than a 
 76.10  similar license available in Minnesota, then the board shall 
 76.11  issue a license identical to the license it would issue to an 
 76.12  applicant who has successfully completed those requirements in a 
 76.13  Minnesota teacher preparation program. 
 76.14     (c) If the applicant holds or has held a teaching license 
 76.15  issued by another state to teach the same content field and 
 76.16  grade levels equal to, greater than, or not more than one year 
 76.17  less than a similar license available in Minnesota, but has not 
 76.18  successfully completed all examinations and human relations 
 76.19  preparation components required by the board of teaching, then 
 76.20  the board shall issue a temporary license according to board 
 76.21  rules to provide the applicant time to complete required 
 76.22  examination and human relations components. 
 76.23     (d) If the applicant has successfully completed all 
 76.24  examinations and human relations preparation components required 
 76.25  by the board of teaching and holds a license issued by another 
 76.26  state based on successful completion of a teacher preparation 
 76.27  program approved by the issuing state but has not completed 
 76.28  student teaching or equivalent experience, field-specific 
 76.29  methods of teaching, or both, then the board shall issue a 
 76.30  temporary license according to board rules to provide the 
 76.31  applicant time to complete student teaching or equivalent 
 76.32  experience, field-specific methods of teaching, or both.  An 
 76.33  applicant may fulfill the student teaching or equivalent 
 76.34  experience requirement, field-specific methods of teaching 
 76.35  requirement, or both, by successfully completing a year in a 
 76.36  school district mentorship program consistent with the standards 
 77.1   of effective practice adopted by the board of teaching and the 
 77.2   Minnesota graduation requirements. 
 77.3      (e) If the applicant has successfully completed all 
 77.4   examinations and human relations preparation components required 
 77.5   by the board of teaching and holds or has held a license issued 
 77.6   by another state, but the license is more limited in the content 
 77.7   field, grade levels, or both, than a similar Minnesota license, 
 77.8   then the applicant shall be issued a temporary license valid for 
 77.9   up to three years for only the content field, grade levels, or 
 77.10  both, for which the applicant was licensed in the other state, 
 77.11  to provide time for the applicant to meet full Minnesota 
 77.12  licensure requirements in the field. 
 77.13     (f) No applicant shall be issued any temporary license or 
 77.14  combination of temporary licenses under paragraphs (c) to (e) 
 77.15  for a period of time exceeding three years. 
 77.16     (g) No license shall be issued under this subdivision when 
 77.17  the licensure field requires additional degrees, credentials, or 
 77.18  licenses that the candidate has not achieved. 
 77.19     Sec. 9.  Minnesota Statutes 1998, section 122A.25, is 
 77.20  amended by adding a subdivision to read: 
 77.21     Subd. 2a.  [INDIVIDUAL PREAPPROVAL.] (a) An individual not 
 77.22  licensed by the board of teaching that holds certification, 
 77.23  credentials, or professional recognition as an expert in a 
 77.24  specialized method of instruction not typically offered in the 
 77.25  school program may apply to the board of teaching to be granted 
 77.26  preapproval as a community expert eligible to teach in a public 
 77.27  school or charter school under this section.  In making its 
 77.28  determination, the board shall consider only the criteria of 
 77.29  subdivision 2, clause (1). 
 77.30     (b) A preapproved community expert under this subdivision 
 77.31  may be hired to teach by a school district or charter school 
 77.32  only if the school district or charter school applies under 
 77.33  subdivision 2 and the board of teaching approves the application 
 77.34  after considering the criteria of subdivision 2, clauses (2) to 
 77.35  (7). 
 77.36     Sec. 10.  Minnesota Statutes 1998, section 122A.25, is 
 78.1   amended by adding a subdivision to read: 
 78.2      Subd. 2b.  [BACKGROUND CHECK.] The school district or 
 78.3   charter school shall request a criminal history background check 
 78.4   under section 123B.03 on a hired nonlicensed community expert 
 78.5   and verify the completion of the criminal history background 
 78.6   check to the board of teaching. 
 78.7      Sec. 11.  Minnesota Statutes 1998, section 122A.25, is 
 78.8   amended by adding a subdivision to read: 
 78.9      Subd. 2c.  [EXCEPTION.] A current or former faculty member 
 78.10  in a board of teaching approved teacher preparation program 
 78.11  shall be automatically approved as a nonlicensed community 
 78.12  expert to teach courses in or otherwise serve a school district 
 78.13  or charter school in the individual's field of expertise upon a 
 78.14  district or charter school's registering the intention to employ 
 78.15  that current or former faculty member under this subdivision. 
 78.16     Sec. 12.  Minnesota Statutes 1998, section 122A.25, 
 78.17  subdivision 3, is amended to read: 
 78.18     Subd. 3.  [APPROVAL OF PLAN.] The board of teaching shall 
 78.19  approve or disapprove an application within 60 days of receiving 
 78.20  it from a school district or, charter school, or individual. 
 78.21     Sec. 13.  Minnesota Statutes 1998, section 123B.04, 
 78.22  subdivision 2, is amended to read: 
 78.23     Subd. 2.  [AGREEMENT.] (a) Either the school board or the 
 78.24  school site decision-making team may request that the school 
 78.25  board enter into an agreement with a school site decision-making 
 78.26  team concerning the governance, management, or control of the 
 78.27  school.  A school site decision-making team may include the 
 78.28  school principal, teachers in the school or their designee, 
 78.29  other employees in the school, parents of pupils in the school, 
 78.30  representatives of pupils in the school, or other members in the 
 78.31  community.  The school site decision-making team shall include 
 78.32  the school principal or other person having general control and 
 78.33  supervision of the school.  The site decision-making team must 
 78.34  reflect the diversity of the education site.  No more than 
 78.35  one-half of the members shall be employees of the district, 
 78.36  unless an employee is the parent of a student enrolled in the 
 79.1   school site, in which case the employee may elect to serve as a 
 79.2   parent member of the site team. 
 79.3      (b) School site decision-making agreements must delegate 
 79.4   powers, duties, and broad management responsibilities to site 
 79.5   teams and involve staff members, students as appropriate, and 
 79.6   parents in decision making. 
 79.7      (c) An agreement shall include a statement of powers, 
 79.8   duties, responsibilities, and authority to be delegated to and 
 79.9   within the site. 
 79.10     (d) An agreement may include: 
 79.11     (1) an achievement contract according to subdivision 4; 
 79.12     (2) a mechanism to allow principals, or other persons 
 79.13  having general control and supervision of the school, to make 
 79.14  decisions regarding how financial and personnel resources are 
 79.15  best allocated at the site and from whom goods or services are 
 79.16  purchased; 
 79.17     (3) a mechanism to implement parental involvement programs 
 79.18  under section 124D.895 and to provide for effective parental 
 79.19  communication and feedback on this involvement at the site 
 79.20  level; 
 79.21     (4) a provision that would allow the team to determine who 
 79.22  is hired into licensed and nonlicensed positions; 
 79.23     (5) a provision that would allow teachers to choose the 
 79.24  principal or other person having general control; 
 79.25     (6) an amount of revenue allocated to the site under 
 79.26  subdivision 3; and 
 79.27     (7) any other powers and duties determined appropriate by 
 79.28  the board. 
 79.29     The school board of the district remains the legal employer 
 79.30  under clauses (4) and (5). 
 79.31     (e) Any powers or duties not delegated to the school site 
 79.32  management team in the school site management agreement shall 
 79.33  remain with the school board. 
 79.34     (f) Approved agreements shall be filed with the 
 79.35  commissioner.  If a school board denies a request to enter into 
 79.36  a school site management agreement, it shall provide a copy of 
 80.1   the request and the reasons for its denial to the commissioner.  
 80.2      <b>EFFECTIVE DATE:</b>  This section is effective July 1, 2000. 
 80.3      Sec. 14.  Minnesota Statutes 1998, section 123B.143, 
 80.4   subdivision 1, is amended to read: 
 80.5      Subdivision 1.  [CONTRACT; DUTIES.] All districts 
 80.6   maintaining a classified secondary school must employ a 
 80.7   superintendent who shall be an ex officio nonvoting member of 
 80.8   the school board.  The authority for selection and employment of 
 80.9   a superintendent must be vested in the board in all cases.  An 
 80.10  individual employed by a board as a superintendent shall have an 
 80.11  initial employment contract for a period of time no longer than 
 80.12  three years from the date of employment.  Any subsequent 
 80.13  employment contract must not exceed a period of three years.  A 
 80.14  board, at its discretion, may or may not renew an employment 
 80.15  contract.  A board must not, by action or inaction, extend the 
 80.16  duration of an existing employment contract.  Beginning 365 days 
 80.17  prior to the expiration date of an existing employment contract, 
 80.18  a board may negotiate and enter into a subsequent employment 
 80.19  contract to take effect upon the expiration of the existing 
 80.20  contract.  A subsequent contract must be contingent upon the 
 80.21  employee completing the terms of an existing contract.  If a 
 80.22  contract between a board and a superintendent is terminated 
 80.23  prior to the date specified in the contract, the board may not 
 80.24  enter into another superintendent contract with that same 
 80.25  individual that has a term that extends beyond the date 
 80.26  specified in the terminated contract.  A board may terminate a 
 80.27  superintendent during the term of an employment contract for any 
 80.28  of the grounds specified in section 122A.40, subdivision 9 or 13.
 80.29  A superintendent shall not rely upon an employment contract with 
 80.30  a board to assert any other continuing contract rights in the 
 80.31  position of superintendent under section 122A.40.  
 80.32  Notwithstanding the provisions of sections 122A.40, subdivision 
 80.33  10 or 11, 123A.32, 123A.75, or any other law to the contrary, no 
 80.34  individual shall have a right to employment as a superintendent 
 80.35  based on order of employment in any district.  If two or more 
 80.36  districts enter into an agreement for the purchase or sharing of 
 81.1   the services of a superintendent, the contracting districts have 
 81.2   the absolute right to select one of the individuals employed to 
 81.3   serve as superintendent in one of the contracting districts and 
 81.4   no individual has a right to employment as the superintendent to 
 81.5   provide all or part of the services based on order of employment 
 81.6   in a contracting district. The superintendent of a district 
 81.7   shall perform the following:  
 81.8      (1) visit and supervise the schools in the district, report 
 81.9   and make recommendations about their condition when advisable or 
 81.10  on request by the board; 
 81.11     (2) recommend to the board employment and dismissal of 
 81.12  teachers; 
 81.13     (3) superintend school grading practices and examinations 
 81.14  for promotions; 
 81.15     (4) make reports required by the commissioner; 
 81.16     (5) by January 10, submit an annual report to the 
 81.17  commissioner in a manner prescribed by the commissioner, in 
 81.18  consultation with school districts, identifying the expenditures 
 81.19  that the district requires to ensure an 80 percent and a 90 
 81.20  percent student passage rate on the basic standards test taken 
 81.21  in the eighth grade, identifying the amount of expenditures that 
 81.22  the district requires to ensure a 99 percent student passage 
 81.23  rate on the basic standards test by 12th grade, and how much the 
 81.24  district is cross-subsidizing programs with special education, 
 81.25  compensatory basic skills, and general education revenue; and 
 81.26     (6) perform other duties prescribed by the board. 
 81.27     Sec. 15.  Minnesota Statutes 1998, section 123B.52, is 
 81.28  amended by adding a subdivision to read: 
 81.29     Subd. 6.  [DISPOSING OF SURPLUS SCHOOL 
 81.30  COMPUTERS.] Notwithstanding section 471.345 governing school 
 81.31  district contracts made upon sealed bid or otherwise complying 
 81.32  with the requirements for competitive bidding, other provisions 
 81.33  of this section governing school district contracts or other law 
 81.34  to the contrary, a school district under this subdivision may 
 81.35  dispose of a surplus school computer and related equipment if 
 81.36  the district disposes of the surplus property by conveying the 
 82.1   property and title to: 
 82.2      (1) another school district; 
 82.3      (2) the state department of corrections; 
 82.4      (3) the board of trustees of the Minnesota state colleges 
 82.5   and universities; or 
 82.6      (4) the family of a student residing in the district whose 
 82.7   total family income meets the federal definition of poverty. 
 82.8      <b>EFFECTIVE DATE:</b>  This section is effective the day 
 82.9   following final enactment. 
 82.10     Sec. 16.  Minnesota Statutes 1998, section 123B.77, 
 82.11  subdivision 3, is amended to read: 
 82.12     Subd. 3.  [STATEMENT FOR COMPARISON AND CORRECTION.] By 
 82.13  November 30 of the calendar year of the submission of the 
 82.14  unaudited financial data, the district must provide to the 
 82.15  commissioner audited financial data for the preceding fiscal 
 82.16  year.  The audit must be conducted in compliance with generally 
 82.17  accepted governmental auditing standards, the federal Single 
 82.18  Audit Act, and the Minnesota legal compliance guide issued by 
 82.19  the office of the state auditor.  An audited financial statement 
 82.20  prepared in a form which will allow comparison with and 
 82.21  correction of material differences in the unaudited financial 
 82.22  data shall be submitted to the commissioner and the state 
 82.23  auditor by December 31.  The audited financial statement must 
 82.24  also provide a statement of assurance pertaining to uniform 
 82.25  financial accounting and reporting standards compliance and a 
 82.26  copy of the management letter submitted to the district by the 
 82.27  school district's auditor. 
 82.28     Sec. 17.  Minnesota Statutes 1998, section 123B.79, 
 82.29  subdivision 7, is amended to read: 
 82.30     Subd. 7.  [ACCOUNT TRANSFER FOR CERTAIN SEVERANCE PAY.] A 
 82.31  district may maintain in a designated reserve for certain 
 82.32  severance pay account not more than 50 percent of the amount 
 82.33  necessary to meet the obligations for the portion of severance 
 82.34  pay that constitutes compensation for accumulated sick leave to 
 82.35  be used for payment of premiums for group insurance provided for 
 82.36  former employees by the district.  The amount necessary must be 
 83.1   calculated according to standards established by the advisory 
 83.2   council on uniform financial accounting and reporting 
 83.3   standards department. 
 83.4      Sec. 18.  Minnesota Statutes 1999 Supplement, section 
 83.5   123B.83, subdivision 4, is amended to read: 
 83.6      Subd. 4.  [SPECIAL OPERATING PLAN.] (1) If the net negative 
 83.7   unappropriated operating unreserved general fund balance as 
 83.8   defined in section 126C.01, subdivision 11, calculated in 
 83.9   accordance with the uniform financial accounting and reporting 
 83.10  standards for Minnesota school districts, as of June 30 each 
 83.11  year, is more than 2-1/2 percent of the year's expenditure 
 83.12  amount, the district must, prior to January 31 of the next 
 83.13  fiscal year, submit a special operating plan to reduce the 
 83.14  district's deficit expenditures to the commissioner for 
 83.15  approval.  The commissioner may also require the district to 
 83.16  provide evidence that the district meets and will continue to 
 83.17  meet all high school graduation requirements. 
 83.18     Notwithstanding any other law to the contrary, a district 
 83.19  submitting a special operating plan to the commissioner under 
 83.20  this clause which is disapproved by the commissioner must not 
 83.21  receive any aid pursuant to chapters 120B, 122A, 123A, 123B, 
 83.22  124D, 125A, 126C, and 127A until a special operating plan of the 
 83.23  district is so approved. 
 83.24     (2) A district must receive aids pending the approval of 
 83.25  its special operating plan under clause (1).  A district which 
 83.26  complies with its approved operating plan must receive aids as 
 83.27  long as the district continues to comply with the approved 
 83.28  operating plan. 
 83.29     Sec. 19.  Minnesota Statutes 1998, section 123B.86, 
 83.30  subdivision 1, is amended to read: 
 83.31     Subdivision 1.  [GENERAL PROVISIONS.] A district shall 
 83.32  provide equal transportation within the district for all school 
 83.33  children to any school when transportation is deemed necessary 
 83.34  by the school board because of distance or traffic condition in 
 83.35  like manner and form as provided in sections 123B.88 and 124.223 
 83.36  123B.92, when applicable. 
 84.1      Sec. 20.  Minnesota Statutes 1998, section 123B.88, 
 84.2   subdivision 3, is amended to read: 
 84.3      Subd. 3.  [TRANSPORTATION SERVICES CONTRACTS.] The board 
 84.4   may contract for the furnishing of authorized transportation 
 84.5   under rules established by the commissioner section 123B.52, and 
 84.6   may purchase gasoline and furnish same to a contract carrier for 
 84.7   use in the performance of a contract with the school district 
 84.8   for transportation of school children to and from school. 
 84.9      Sec. 21.  Minnesota Statutes 1998, section 123B.90, 
 84.10  subdivision 1, is amended to read: 
 84.11     Subdivision 1.  [SCHOOL BUS SAFETY WEEK.] The third week of 
 84.12  school is designated as school bus safety week. 
 84.13     A school board may designate one day of school bus safety 
 84.14  week as school bus driver day. 
 84.15     <b>EFFECTIVE DATE:</b>  This section is effective the day 
 84.16  following final enactment. 
 84.17     Sec. 22.  Minnesota Statutes 1999 Supplement, section 
 84.18  123B.90, subdivision 2, is amended to read: 
 84.19     Subd. 2.  [STUDENT TRAINING.] (a) Each district must 
 84.20  provide public school pupils enrolled in grades kindergarten 
 84.21  through 10 with age-appropriate school bus safety training.  The 
 84.22  training must be results-oriented and shall consist of both 
 84.23  classroom instruction and practical training using a school 
 84.24  bus.  Upon completing the training, a student shall be able to 
 84.25  demonstrate knowledge and understanding of at least the 
 84.26  following competencies and concepts: 
 84.27     (1) transportation by school bus is a privilege and not a 
 84.28  right; 
 84.29     (2) district policies for student conduct and school bus 
 84.30  safety; 
 84.31     (3) appropriate conduct while on the school bus; 
 84.32     (4) the danger zones surrounding a school bus; 
 84.33     (5) procedures for safely boarding and leaving a school 
 84.34  bus; 
 84.35     (6) procedures for safe street or road crossing; 
 84.36     (7) school bus evacuation and other emergency procedures; 
 85.1   and 
 85.2      (8) appropriate training on the use of lap belts or lap and 
 85.3   shoulder belts, if the district uses buses equipped with lap 
 85.4   belts or lap and shoulder belts. 
 85.5      (b) Each nonpublic school located within the district must 
 85.6   provide all nonpublic school pupils enrolled in grades 
 85.7   kindergarten through 10 who are transported by school bus at 
 85.8   public expense and attend school within the district's 
 85.9   boundaries with training as required in paragraph (a).  The 
 85.10  school district shall make a bus available for the practical 
 85.11  training if the district transports the nonpublic students.  
 85.12  Each nonpublic school shall provide the instruction. 
 85.13     (c) All students enrolled in grades kindergarten through 3 
 85.14  who are transported by school bus and are enrolled during the 
 85.15  first or second week of school must demonstrate achievement of 
 85.16  the school bus safety training competencies by the end of the 
 85.17  third week of school.  All students enrolled in grades 4 through 
 85.18  10 who are transported by school bus and are enrolled during the 
 85.19  first or second week of school must demonstrate achievement of 
 85.20  the competencies by the end of the sixth week of school.  
 85.21  Students enrolled in grades kindergarten through 10 who enroll 
 85.22  in a school after the second week of school and are transported 
 85.23  by school bus shall undergo school bus safety training and 
 85.24  demonstrate achievement of the school bus safety competencies 
 85.25  within four weeks of the first day of attendance.  The pupil 
 85.26  school transportation safety director in each district must 
 85.27  certify to the commissioner annually that all students 
 85.28  transported by school bus within the district have 
 85.29  satisfactorily demonstrated knowledge and understanding of the 
 85.30  school bus safety competencies according to this section or 
 85.31  provide an explanation for a student's failure to demonstrate 
 85.32  the competencies.  The principal or other chief administrator of 
 85.33  each nonpublic school must certify annually to the public school 
 85.34  transportation safety director of the district in which the 
 85.35  school is located that all of the school's students transported 
 85.36  by school bus at public expense have received training.  A 
 86.1   district may deny transportation to a student who fails to 
 86.2   demonstrate the competencies, unless the student is unable to 
 86.3   achieve the competencies due to a disability, or to a student 
 86.4   who attends a nonpublic school that fails to provide training as 
 86.5   required by this subdivision. 
 86.6      (d) A district and a nonpublic school with students 
 86.7   transported by school bus at public expense must, to the extent 
 86.8   possible, provide kindergarten pupils with bus safety training 
 86.9   before the first day of school. 
 86.10     (e) A district and a nonpublic school with students 
 86.11  transported by school bus at public expense must also provide 
 86.12  student safety education for bicycling and pedestrian safety, 
 86.13  for students enrolled in grades kindergarten through 5. 
 86.14     (f) A district and a nonpublic school with students 
 86.15  transported by school bus at public expense must make reasonable 
 86.16  accommodations for the school bus, bicycle, and pedestrian 
 86.17  safety training of pupils known to speak English as a second 
 86.18  language and pupils with disabilities. 
 86.19     Sec. 23.  Minnesota Statutes 1999 Supplement, section 
 86.20  123B.91, subdivision 1, is amended to read: 
 86.21     Subdivision 1.  [COMPREHENSIVE POLICY.] (a) Each district 
 86.22  must shall develop and implement a comprehensive, written policy 
 86.23  governing pupil transportation safety, including transportation 
 86.24  of nonpublic school students, when applicable.  The 
 86.25  policy shall, at minimum, must contain: 
 86.26     (1) provisions for appropriate student bus safety training 
 86.27  under section 123B.90; 
 86.28     (2) rules governing student conduct on school buses and in 
 86.29  school bus loading and unloading areas; 
 86.30     (3) a statement of parent or guardian responsibilities 
 86.31  relating to school bus safety; 
 86.32     (4) provisions for notifying students and parents or 
 86.33  guardians of their responsibilities and the rules, including the 
 86.34  district's seat belt policy, if applicable; 
 86.35     (5) an intradistrict system for reporting school bus 
 86.36  accidents or misconduct and a system for dealing with local law 
 87.1   enforcement officials in cases of criminal conduct on a school 
 87.2   bus; 
 87.3      (6) a discipline policy to address violations of school bus 
 87.4   safety rules, including procedures for revoking a student's bus 
 87.5   riding privileges in cases of serious or repeated misconduct; 
 87.6      (7) a system for integrating school bus misconduct records 
 87.7   with other discipline records; 
 87.8      (8) a statement of bus driver duties; 
 87.9      (9) planned expenditures for safety activities under 
 87.10  section 123B.89 and, where applicable, provisions governing bus 
 87.11  monitor qualifications, training, and duties; 
 87.12     (10) rules governing the use and maintenance of type III 
 87.13  vehicles, drivers of type III vehicles, qualifications to drive 
 87.14  a type III vehicle, qualifications for a type III vehicle, and 
 87.15  the circumstances under which a student may be transported in a 
 87.16  type III vehicle; 
 87.17     (11) operating rules and procedures; 
 87.18     (12) provisions for annual bus driver in-service training 
 87.19  and evaluation; 
 87.20     (13) emergency procedures; 
 87.21     (14) a system for maintaining and inspecting equipment; 
 87.22     (15) requirements of the school district, if any, that 
 87.23  exceed state law minimum requirements for school bus operations; 
 87.24  and 
 87.25     (16) requirements for basic first aid training, which must 
 87.26  include the Heimlich maneuver and procedures for dealing with 
 87.27  obstructed airways, shock, bleeding, and seizures. 
 87.28     (b) Districts are encouraged to use the model policy 
 87.29  developed by the Minnesota school boards association, the 
 87.30  department of public safety, and the department of children, 
 87.31  families, and learning, as well as the current edition of the 
 87.32  "National Standards for School Buses and Operations 
 87.33  Transportation," published by the National Safety Council, in 
 87.34  developing safety policies.  Each district shall review its 
 87.35  policy annually and make appropriate amendments, which must be 
 87.36  submitted to the school bus safety advisory committee within one 
 88.1   month of approval by the school board to ensure that it conforms 
 88.2   to law. 
 88.3      <b>EFFECTIVE DATE:</b>  This section is effective the day 
 88.4   following final enactment. 
 88.5      Sec. 24.  Minnesota Statutes 1998, section 124D.03, 
 88.6   subdivision 1, is amended to read: 
 88.7      Subdivision 1.  [ESTABLISHMENT.] (a) An enrollment options 
 88.8   program is established to enable any pupil to attend a school or 
 88.9   program in a district in which the pupil does not reside, 
 88.10  subject to the limitations in this section.  
 88.11     (b) A district may refuse to allow a pupil who is expelled 
 88.12  under section 121A.45 to enroll during the term of the expulsion 
 88.13  if the student was expelled for: 
 88.14     (1) possessing a dangerous weapon, as defined by United 
 88.15  States Code, title 18, section 930, paragraph (g)(2), at school 
 88.16  or a school function; 
 88.17     (2) possessing or using an illegal drug at school or a 
 88.18  school function; 
 88.19     (3) selling or soliciting the sale of a controlled 
 88.20  substance while at school or a school function; or 
 88.21     (4) committing a third-degree assault as described in 
 88.22  section 609.223, subdivision 1. 
 88.23     <b>EFFECTIVE DATE:</b>  This section is effective for the 
 88.24  2000-2001 school year and later. 
 88.25     Sec. 25.  Minnesota Statutes 1998, section 124D.081, 
 88.26  subdivision 6, is amended to read: 
 88.27     Subd. 6.  [PREPAREDNESS REVENUE.] (a) A qualifying school 
 88.28  district is eligible for first-grade preparedness revenue equal 
 88.29  to the basic formula allowance for that year times the number of 
 88.30  children five years of age or older enrolled in a kindergarten 
 88.31  program at the site on October 1 of the previous year times .53. 
 88.32     (b) This revenue must supplement and not replace 
 88.33  compensatory revenue that the district uses for the same or 
 88.34  similar purposes under chapters 120B, 123A, 123B, 124D, 126C, 
 88.35  and 127A. 
 88.36     (c) A pupil enrolled in the first grade preparedness 
 89.1   program at a qualifying school site is eligible for 
 89.2   transportation under section 123B.88, subdivision 1.  
 89.3      (d) First grade preparedness revenue paid to a charter 
 89.4   school for which a school district is providing transportation 
 89.5   according to section 124D.10, subdivision 16, shall be decreased 
 89.6   by an amount equal to the product of $170 the formula allowance 
 89.7   according to section 126C.10, subdivision 2, times .0485 times 
 89.8   the pupil units calculated according to paragraph (a).  This 
 89.9   amount shall be paid to the school district for transportation 
 89.10  costs.  
 89.11     Sec. 26.  Minnesota Statutes 1999 Supplement, section 
 89.12  124D.10, subdivision 3, is amended to read: 
 89.13     Subd. 3.  [SPONSOR.] A school board, intermediate school 
 89.14  district school board, education districts district organized 
 89.15  under sections 123A.15 to 123A.19, charitable organization under 
 89.16  section 501(c) (3) of the Internal Revenue Code of 1986 that is 
 89.17  a member of the Minnesota council on foundations and reports an 
 89.18  end of year fund balance of at least $3,000,000, Minnesota 
 89.19  private college, that grants two- or four-year degrees and is 
 89.20  registered with the higher education services office under 
 89.21  chapter 136A, community college, state university, technical 
 89.22  college, or the University of Minnesota may sponsor one or more 
 89.23  charter schools. 
 89.24     <b>EFFECTIVE DATE:</b>  This section is effective the day 
 89.25  following final enactment. 
 89.26     Sec. 27.  Minnesota Statutes 1999 Supplement, section 
 89.27  124D.10, subdivision 4, is amended to read: 
 89.28     Subd. 4.  [FORMATION OF SCHOOL.] (a) A sponsor may 
 89.29  authorize one or more licensed teachers under section 122A.18, 
 89.30  subdivision 1, to operate a charter school subject to approval 
 89.31  by the commissioner.  A board must vote on charter school 
 89.32  application for sponsorship no later than 90 days after 
 89.33  receiving the application.  After 90 days, the applicant may 
 89.34  apply to the commissioner.  If a board elects not to sponsor a 
 89.35  charter school, the applicant may appeal the board's decision to 
 89.36  the commissioner.  The appeal must be made no later than 90 days 
 90.1   after the school board elects not to sponsor a charter school.  
 90.2   If the commissioner authorizes the school, the commissioner must 
 90.3   sponsor the school according to this section.  The school must 
 90.4   be organized and operated as a cooperative under chapter 308A or 
 90.5   nonprofit corporation under chapter 317A.  
 90.6      (b) Before the operators may form and operate a school, the 
 90.7   sponsor must file an affidavit with the commissioner stating its 
 90.8   intent to authorize a charter school.  The affidavit must state 
 90.9   the terms and conditions under which the sponsor would authorize 
 90.10  a charter school.  The commissioner must approve or disapprove 
 90.11  the sponsor's proposed authorization within 60 days of receipt 
 90.12  of the affidavit.  Failure to obtain commissioner approval 
 90.13  precludes a sponsor from authorizing the charter school that was 
 90.14  the subject of the affidavit.  
 90.15     (c) The operators authorized to organize and operate a 
 90.16  school must hold an election for members of the school's board 
 90.17  of directors in a timely manner after the school is operating.  
 90.18  Any staff members who are employed at the school, including 
 90.19  teachers providing instruction under a contract with a 
 90.20  cooperative, and all parents of children enrolled in the school 
 90.21  may participate in the election.  Licensed teachers employed at 
 90.22  the school, including teachers providing instruction under a 
 90.23  contract with a cooperative, must be a majority of the members 
 90.24  of the board of directors, unless the commissioner waives the 
 90.25  requirement for the school or the licensed teachers employed at 
 90.26  the school elect to constitute a majority that consists of both 
 90.27  teachers employed at the school and parents of children enrolled 
 90.28  in the school with a minimum of one teacher director and one 
 90.29  parent director.  A provisional board may operate before the 
 90.30  election of the school's board of directors.  Board of director 
 90.31  meetings must comply with section 471.705. 
 90.32     (d) The granting or renewal of a charter by a sponsoring 
 90.33  entity must not be conditioned upon the bargaining unit status 
 90.34  of the employees of the school. 
 90.35     Sec. 28.  Minnesota Statutes 1999 Supplement, section 
 90.36  124D.10, subdivision 8, is amended to read: 
 91.1      Subd. 8.  [STATE AND LOCAL REQUIREMENTS.] (a) A charter 
 91.2   school shall meet all applicable state and local health and 
 91.3   safety requirements. 
 91.4      (b) A school sponsored by a school board may be located in 
 91.5   any district, unless the school board of the district of the 
 91.6   proposed location disapproves by written resolution.  If such a 
 91.7   board denies a request to locate within its boundaries a charter 
 91.8   school sponsored by another school board, the sponsoring school 
 91.9   board may appeal to the commissioner.  If the commissioner 
 91.10  authorizes the school, the commissioner must sponsor the school. 
 91.11     (c) A charter school must be nonsectarian in its programs, 
 91.12  admission policies, employment practices, and all other 
 91.13  operations.  A sponsor may not authorize a charter school or 
 91.14  program that is affiliated with a nonpublic sectarian school or 
 91.15  a religious institution. 
 91.16     (d) Charter schools must not be used as a method of 
 91.17  providing education or generating revenue for students who are 
 91.18  being home-schooled. 
 91.19     (e) The primary focus of a charter school must be to 
 91.20  provide a comprehensive program of instruction for at least one 
 91.21  grade or age group from five through 18 years of age.  
 91.22  Instruction may be provided to people younger than five years 
 91.23  and older than 18 years of age. 
 91.24     (f) A charter school may not charge tuition. 
 91.25     (g) A charter school is subject to and must comply with 
 91.26  chapter 363 and section 121A.04. 
 91.27     (h) A charter school is subject to and must comply with The 
 91.28  Pupil Fair Dismissal Act, sections 121A.40 to 121A.56, and the 
 91.29  Minnesota Public School Fee law, sections 123B.34 to 123B.39. 
 91.30     (i) A charter school is subject to the same financial 
 91.31  audits, audit procedures, and audit requirements as a district.  
 91.32  The audit must be consistent in compliance with the requirements 
 91.33  of sections 123B.75 to 123B.83, except to the extent deviations 
 91.34  are necessary because of the program at the school.  The 
 91.35  department of children, families, and learning, state auditor, 
 91.36  or legislative auditor may conduct financial, program, or 
 92.1   compliance audits. 
 92.2      (j) A charter school is a district for the purposes of tort 
 92.3   liability under chapter 466. 
 92.4      <b>EFFECTIVE DATE:</b>  This section is effective the day 
 92.5   following final enactment. 
 92.6      Sec. 29.  Minnesota Statutes 1998, section 124D.10, 
 92.7   subdivision 9, is amended to read: 
 92.8      Subd. 9.  [ADMISSION REQUIREMENTS.] A charter school may 
 92.9   limit admission to: 
 92.10     (1) pupils within an age group or grade level; 
 92.11     (2) people who are eligible to participate in the 
 92.12  graduation incentives program under section 124D.68; or 
 92.13     (3) residents of a specific geographic area where the 
 92.14  percentage of the population of non-Caucasian people of that 
 92.15  area is greater than the percentage of the non-Caucasian 
 92.16  population in the congressional district in which the geographic 
 92.17  area is located, and as long as the school reflects the racial 
 92.18  and ethnic diversity of the specific area. 
 92.19     A charter school shall enroll an eligible pupil who submits 
 92.20  a timely application, unless the number of applications exceeds 
 92.21  the capacity of a program, class, grade level, or building.  In 
 92.22  this case, pupils must be accepted by lot.  If a charter school 
 92.23  is the only school located in a town serving pupils within a 
 92.24  particular grade level, then pupils that are residents of the 
 92.25  town must be given preference for enrollment before accepting 
 92.26  pupils by lot.  If a pupil lives within two miles of a charter 
 92.27  school and the next closest public school is more than five 
 92.28  miles away, the charter school must give those pupils preference 
 92.29  for enrollment before accepting other pupils by lot. 
 92.30     A charter school shall give preference for enrollment to a 
 92.31  sibling of an enrolled pupil and to a foster child of that 
 92.32  pupil's parents before accepting other pupils by lot. 
 92.33     A charter school may not limit admission to pupils on the 
 92.34  basis of intellectual ability, measures of achievement or 
 92.35  aptitude, or athletic ability. 
 92.36     Sec. 30.  Minnesota Statutes 1999 Supplement, section 
 93.1   124D.10, subdivision 11, is amended to read: 
 93.2      Subd. 11.  [EMPLOYMENT AND OTHER OPERATING MATTERS.] A 
 93.3   charter school must employ or contract with necessary teachers, 
 93.4   as defined by section 122A.15, subdivision 1, who hold valid 
 93.5   licenses to perform the particular service for which they are 
 93.6   employed in the school.  The charter school's state aid may be 
 93.7   reduced under section 127A.42 if the school employs a teacher 
 93.8   who is not appropriately licensed or approved by the board of 
 93.9   teaching.  The school may employ necessary employees who are not 
 93.10  required to hold teaching licenses to perform duties other than 
 93.11  teaching and may contract for other services.  The school may 
 93.12  discharge teachers and nonlicensed employees.  A person, without 
 93.13  holding a valid administrator's license, may perform 
 93.14  administrative, supervisory, or instructional leadership duties. 
 93.15     The board of directors also shall decide matters related to 
 93.16  the operation of the school, including budgeting, curriculum and 
 93.17  operating procedures.  
 93.18     Sec. 31.  Minnesota Statutes 1999 Supplement, section 
 93.19  124D.10, subdivision 15, is amended to read: 
 93.20     Subd. 15.  [REVIEW AND COMMENT.] The department must review 
 93.21  and comment on the evaluation, by the chartering school district 
 93.22  sponsor, of the performance of a charter school before the 
 93.23  charter school's contract is renewed.  A sponsor shall monitor 
 93.24  and evaluate the fiscal and student performance of the school, 
 93.25  and may for this purpose annually assess the school up to $10 
 93.26  per student up to a maximum of $3,500.  The information from for 
 93.27  the review and comment shall be reported by the sponsor to the 
 93.28  commissioner of children, families, and learning in a timely 
 93.29  manner.  Periodically, the commissioner shall report trends or 
 93.30  suggestions based on the evaluation of charter school contracts 
 93.31  to the education committees of the state legislature.  
 93.32     Sec. 32.  Minnesota Statutes 1998, section 124D.10, 
 93.33  subdivision 20, is amended to read: 
 93.34     Subd. 20.  [LEAVE TO TEACH IN A CHARTER SCHOOL.] If a 
 93.35  teacher employed by a district makes a written request for an 
 93.36  extended leave of absence to teach at a charter school whether 
 94.1   as an employee of the school, as an employee of a cooperative or 
 94.2   other teacher controlled professional association providing 
 94.3   instructional services to the school, or in any other capacity, 
 94.4   the district must grant the leave.  The district must grant a 
 94.5   leave for any number of years requested by the teacher, and must 
 94.6   extend the leave at the teacher's request.  The district may 
 94.7   require that the request for a leave or extension of leave be 
 94.8   made up to 90 days before the teacher would otherwise have to 
 94.9   report for duty.  Except as otherwise provided in this 
 94.10  subdivision and except for section 122A.46, subdivision 7, the 
 94.11  leave is governed by section 122A.46, including, but not limited 
 94.12  to, reinstatement, notice of intention to return, seniority, 
 94.13  salary, and insurance. 
 94.14     During a leave, the teacher may continue to aggregate 
 94.15  benefits and credits in the teachers' retirement association 
 94.16  account by paying both the employer and employee contributions 
 94.17  based upon the annual salary of the teacher for the last full 
 94.18  pay period before the leave began.  The retirement association 
 94.19  may impose reasonable requirements to efficiently administer 
 94.20  this subdivision. 
 94.21     Sec. 33.  Minnesota Statutes 1999 Supplement, section 
 94.22  124D.10, subdivision 23, is amended to read: 
 94.23     Subd. 23.  [CAUSES FOR NONRENEWAL OR TERMINATION OF CHARTER 
 94.24  SCHOOL CONTRACT.] (a) The duration of the contract with a 
 94.25  sponsor must be for the term contained in the contract according 
 94.26  to subdivision 6.  The sponsor may or may not renew a contract 
 94.27  at the end of the term for any ground listed in paragraph (b).  
 94.28  A sponsor may unilaterally terminate a contract during the term 
 94.29  of the contract for any ground listed in paragraph (b).  At 
 94.30  least 60 days before not renewing or terminating a contract, the 
 94.31  sponsor shall notify the board of directors of the charter 
 94.32  school of the proposed action in writing.  The notice shall 
 94.33  state the grounds for the proposed action in reasonable detail 
 94.34  and that the charter school's board of directors may request in 
 94.35  writing an informal hearing before the sponsor within 14 days of 
 94.36  receiving notice of nonrenewal or termination of the contract.  
 95.1   Failure by the board of directors to make a written request for 
 95.2   a hearing within the 14-day period shall be treated as 
 95.3   acquiescence to the proposed action.  Upon receiving a timely 
 95.4   written request for a hearing, the sponsor shall give reasonable 
 95.5   notice to the charter school's board of directors of the hearing 
 95.6   date.  The sponsor shall conduct an informal hearing before 
 95.7   taking final action.  The sponsor shall take final action to 
 95.8   renew or not renew a contract by the last day of classes in the 
 95.9   school year.  If the sponsor is a local board, the school's 
 95.10  board of directors may appeal the sponsor's decision to the 
 95.11  commissioner. 
 95.12     (b) A contract may be terminated or not renewed upon any of 
 95.13  the following grounds: 
 95.14     (1) failure to meet the requirements for pupil performance 
 95.15  contained in the contract; 
 95.16     (2) failure to meet generally accepted standards of fiscal 
 95.17  management; 
 95.18     (3) violations of law; or 
 95.19     (4) other good cause shown. 
 95.20     If a contract is terminated or not renewed, the school must 
 95.21  be dissolved according to the applicable provisions of chapter 
 95.22  308A or 317A, except when the commissioner approves the decision 
 95.23  of a different eligible sponsor to authorize the charter school. 
 95.24     (c) The commissioner, after providing reasonable notice to 
 95.25  the governing body of a charter school and the existing sponsor, 
 95.26  and after providing an opportunity for a public hearing, may 
 95.27  terminate the existing sponsorial relationship if: 
 95.28     (1) the charter school has a history of financial 
 95.29  mismanagement; or 
 95.30     (2) the charter school has a history of repeated violations 
 95.31  of the law. 
 95.32     <b>EFFECTIVE DATE:</b>  This section is effective the day 
 95.33  following final enactment. 
 95.34     Sec. 34.  Minnesota Statutes 1999 Supplement, section 
 95.35  124D.11, subdivision 4, is amended to read: 
 95.36     Subd. 4.  [BUILDING LEASE AID.] When a charter school finds 
 96.1   it economically advantageous to rent or lease a building or land 
 96.2   for any instructional purposes and it determines that the total 
 96.3   operating capital revenue under section 126C.10, subdivision 13, 
 96.4   is insufficient for this purpose, it may apply to the 
 96.5   commissioner for building lease aid for this purpose.  Criteria 
 96.6   for aid approval and revenue uses shall be as defined for the 
 96.7   building lease levy in section 126C.40, subdivision 1, 
 96.8   paragraphs (a) and (b).  A charter school is eligible for 
 96.9   building lease aid.  Buildings leased by charter schools must 
 96.10  meet all local and state building codes, state health and safety 
 96.11  requirements, and federal Americans with Disabilities Act 
 96.12  requirements.  The commissioner shall approve the amount of 
 96.13  building lease aid.  The amount of building lease aid per pupil 
 96.14  unit served for a charter school for any year shall not exceed 
 96.15  the lesser of (a) 90 percent of the approved cost or (b) the 
 96.16  product of the pupil units served for the current school year 
 96.17  times $1,500 $750.  Existing charter schools must apply by 
 96.18  January 15 of the fiscal year in which the lease applies to be 
 96.19  considered for this program.  The amount of building lease aid 
 96.20  shall be subject to proration based upon the actual 
 96.21  appropriation.  
 96.22     Sec. 35.  Minnesota Statutes 1999 Supplement, section 
 96.23  124D.11, subdivision 6, is amended to read: 
 96.24     Subd. 6.  [OTHER AID, GRANTS, REVENUE.] (a) A charter 
 96.25  school is eligible to receive other aids, grants, and revenue 
 96.26  according to chapters 120A to 129C, as though it were a district.
 96.27     (b) Notwithstanding paragraph (a), a charter school may not 
 96.28  receive aid, a grant, or revenue if a levy is required to obtain 
 96.29  the money, except as otherwise provided in this section.  
 96.30     (c) Federal aid received by the state must be paid to the 
 96.31  school, if it qualifies for the aid as though it were a school 
 96.32  district. 
 96.33     (d) A charter school may receive money from any source for 
 96.34  capital facilities needs.  In the year-end report to the 
 96.35  commissioner of children, families, and learning, the charter 
 96.36  school shall report the total amount of funds received from 
 97.1   grants and other outside sources. 
 97.2      (e) Notwithstanding paragraph (a) or (b), a charter school 
 97.3   is eligible may apply for a grant to receive the aid portion of 
 97.4   integration revenue under section 124D.86, subdivision 3, for 
 97.5   enrolled students who are residents of a district that is 
 97.6   eligible for integration revenue if the enrollment of the pupil 
 97.7   in the charter school contributes to desegregation or 
 97.8   integration purposes.  The commissioner shall determine grant 
 97.9   recipients and may adopt application guidelines.  The grants 
 97.10  must be competitively determined and must demonstrate that the 
 97.11  enrollment of pupils in the charter school contributes to 
 97.12  desegregation or integration purposes as determined by the 
 97.13  commissioner.  If the charter school has elected not to provide 
 97.14  transportation under section 124D.10, subdivision 16, the aid 
 97.15  shall be reduced by the amount per pupil unit specified for the 
 97.16  district where the charter school is located under section 
 97.17  123B.92, subdivision 8. 
 97.18     <b>EFFECTIVE DATE:</b>  This section is effective the day 
 97.19  following final enactment. 
 97.20     Sec. 36.  Minnesota Statutes 1998, section 124D.128, 
 97.21  subdivision 4, is amended to read: 
 97.22     Subd. 4.  [TRANSPORTATION.] A district must report data to 
 97.23  the department as required by the department to account for 
 97.24  learning year summer transportation expenditures for this 
 97.25  program must be included in nonregular transportation according 
 97.26  to sections 124.225, subdivision 8; and 124.226, subdivision 4.  
 97.27     Sec. 37.  Minnesota Statutes 1999 Supplement, section 
 97.28  126C.05, subdivision 3, is amended to read: 
 97.29     Subd. 3.  [COMPENSATION REVENUE PUPIL UNITS.] Compensation 
 97.30  revenue pupil units for fiscal year 1998 and thereafter must be 
 97.31  computed according to this subdivision.  
 97.32     (a) The compensation revenue concentration percentage for 
 97.33  each building in a district equals the product of 100 times the 
 97.34  ratio of:  
 97.35     (1) the sum of the number of pupils enrolled in the 
 97.36  building eligible to receive free lunch plus one-half of the 
 98.1   pupils eligible to receive reduced priced lunch on October 1 of 
 98.2   the previous fiscal year; to 
 98.3      (2) the number of pupils enrolled in the building on 
 98.4   October 1 of the previous fiscal year. 
 98.5      (b) The compensation revenue pupil weighting factor for a 
 98.6   building equals the lesser of one or the quotient obtained by 
 98.7   dividing the building's compensation revenue concentration 
 98.8   percentage by 80.0.  
 98.9      (c) The compensation revenue pupil units for a building 
 98.10  equals the product of:  
 98.11     (1) the sum of the number of pupils enrolled in the 
 98.12  building eligible to receive free lunch and one-half of the 
 98.13  pupils eligible to receive reduced priced lunch on October 1 of 
 98.14  the previous fiscal year; times 
 98.15     (2) the compensation revenue pupil weighting factor for the 
 98.16  building; times 
 98.17     (3) .60. 
 98.18     (d) Notwithstanding paragraphs (a) to (c), for charter 
 98.19  schools and contracted alternative programs in the first year of 
 98.20  operation, or for any year of operation when the number of 
 98.21  pupils eligible for free or reduced lunch in the current year is 
 98.22  more than 20 percent greater than in the previous year, 
 98.23  compensation revenue pupil units shall be computed using data 
 98.24  for the current fiscal year.  If the charter school or 
 98.25  contracted alternative program begins operation after October 1, 
 98.26  compensatory revenue pupil units shall be computed based on 
 98.27  pupils enrolled on an alternate date determined by the 
 98.28  commissioner, and the compensation revenue pupil units shall be 
 98.29  prorated based on the ratio of the number of days of student 
 98.30  instruction to 170 days. 
 98.31     (e) The percentages in this subdivision must be based on 
 98.32  the count of individual pupils and not on a building average or 
 98.33  minimum. 
 98.34     Sec. 38.  Minnesota Statutes 1999 Supplement, section 
 98.35  127A.05, subdivision 6, is amended to read: 
 98.36     Subd. 6.  [SURVEY OF DISTRICTS.] The commissioner of 
 99.1   children, families, and learning shall survey the state's school 
 99.2   districts and teacher preparation programs and report to the 
 99.3   education committees of the legislature by January 15 of each 
 99.4   odd-numbered year on the status of teacher early retirement 
 99.5   patterns, the teacher shortage, and the substitute teacher 
 99.6   shortage, including patterns and shortages in subject areas and 
 99.7   regions of the state.  The report must also include how 
 99.8   districts are making progress in hiring teachers and substitutes 
 99.9   in the areas of shortage and a five-year projection of teacher 
 99.10  demand for each district. 
 99.11     Sec. 39.  Minnesota Statutes 1999 Supplement, section 
 99.12  148.235, is amended by adding a subdivision to read: 
 99.13     Subd. 8.  [NONPRESCRIPTION DRUGS IN SCHOOLS.] Nothing in 
 99.14  sections 148.171 to 148.285 prohibits a school nurse from 
 99.15  providing nonprescription drugs or medications to a pupil in a 
 99.16  school upon the request of a parent or guardian of the pupil as 
 99.17  long as the nonprescription drugs or medications are 
 99.18  administered in accordance with section 121A.22. 
 99.19     Sec. 40.  Minnesota Statutes 1998, section 169.447, is 
 99.20  amended by adding a subdivision to read: 
 99.21     Subd. 2a.  [PASSENGER LAP AND SHOULDER BELTS.] (a) In 
 99.22  addition to the requirements in section 169.4501, subdivision 1, 
 99.23  a school bus may be equipped with an approved lap belt or an 
 99.24  approved lap and shoulder belt installed for each 
 99.25  passenger-seating position on the bus.  The design and 
 99.26  installation of lap belts and lap and shoulder belts required 
 99.27  under this paragraph must meet the standards of the commissioner 
 99.28  established under paragraph (b). 
 99.29     (b) The commissioner shall consider all concerns necessary 
 99.30  to properly integrate lap belts or lap and shoulder belts into 
 99.31  the current compartmentalization safety system and prescribe 
 99.32  standards for the design and installation of lap and shoulder 
 99.33  belts required under paragraph (a).  The standards are not 
 99.34  subject to chapter 14 and are specifically not subject to 
 99.35  section 14.386. 
 99.36     (c) This subdivision does not apply to specially equipped 
100.1   school buses under section 169.4504. 
100.2      (d) A passenger on a school bus equipped with lap belts or 
100.3   lap and shoulder belts must use these lap belts or lap and 
100.4   shoulder belts unless the passenger, or if the passenger is a 
100.5   minor, the passenger's parent or guardian, has notified the 
100.6   school district in writing that the passenger does not intend to 
100.7   wear the lap belt or lap and shoulder belt. 
100.8      (e) In an action for personal injury or wrongful death 
100.9   against a school district, a school bus operator under contract 
100.10  with a school district, or any agent or employee of a school 
100.11  district or operator, or against a volunteer, no such person or 
100.12  entity shall be held liable solely because the injured party was 
100.13  not wearing a safety belt; provided, however, that nothing 
100.14  contained herein shall be construed to grant immunity from 
100.15  liability for failure to: 
100.16     (1) maintain in operating order any equipment required by 
100.17  statute, rule, or school district policy; or 
100.18     (2) comply with an applicable statute, rule, or school 
100.19  district policy. 
100.20     (f) In an action for personal injury or wrongful death, a 
100.21  school district, a school bus contract operator, any agent or 
100.22  employee of a school district or operator, or a volunteer is not 
100.23  liable for failing to assist any child with the adjustment, 
100.24  fastening, unfastening, or other use of the lap belt or lap and 
100.25  shoulder belt. 
100.26     <b>EFFECTIVE DATE:</b>  This section is effective the day 
100.27  following final enactment. 
100.28     Sec. 41.  Minnesota Statutes 1998, section 169.448, 
100.29  subdivision 3, is amended to read: 
100.30     Subd. 3.  [HEAD START VEHICLE.] Notwithstanding subdivision 
100.31  1, a vehicle used to transport passengers students under Public 
100.32  Law Number 99-425, the Head Start Act, may be equipped as a 
100.33  school bus or Head Start bus.  
100.34     <b>EFFECTIVE DATE:</b>  This section is effective the day 
100.35  following final enactment. 
100.36     Sec. 42.  Minnesota Statutes 1998, section 171.06, 
101.1   subdivision 2, is amended to read: 
101.2      Subd. 2.  [FEES.] (a) The fees for a license and Minnesota 
101.3   identification card are as follows: 
101.4   Classified Driver's License  D-$18.50 C-$22.50 B-$29.50 A-$37.50
101.5   Classified Under-21 D.L.     D-$18.50 C-$22.50 B-$29.50 A-$17.50
101.6   Instruction Permit                                        $ 9.50
101.7   Provisional License                                       $ 9.50
101.8   Duplicate License or
101.9    duplicate identification card                            $ 8.00
101.10  Minnesota identification card or Under-21 Minnesota
101.11  identification card, other than duplicate,
101.12  except as otherwise provided in section 171.07,
101.13  subdivisions 3 and 3a $12.50
101.14     (b) Notwithstanding paragraph (a), a person who holds a 
101.15  provisional license and has a driving record free of (1) 
101.16  convictions for a violation of section 169.121, 169.1218, 
101.17  169.122, or 169.123, (2) convictions for crash-related moving 
101.18  violations, and (3) convictions for moving violations that are 
101.19  not crash related, shall have a $3.50 credit toward the fee for 
101.20  any classified under-21 driver's license.  "Moving violation" 
101.21  has the meaning given it in section 171.04, subdivision 1. 
101.22     (c) In addition to the driver's license fee required under 
101.23  paragraph (a), the registrar shall collect an additional $4 
101.24  processing fee from each new applicant or person renewing a 
101.25  license with a school bus endorsement to cover the costs for 
101.26  processing an applicant's initial and biennial physical 
101.27  examination certificate.  The department shall not charge these 
101.28  applicants any other fee to receive or renew the endorsement. 
101.29     <b>EFFECTIVE DATE:</b>  This section is effective the day 
101.30  following final enactment. 
101.31     Sec. 43.  Minnesota Statutes 1998, section 171.321, is 
101.32  amended to read: 
101.33     171.321 [QUALIFICATIONS OF SCHOOL BUS DRIVER.] 
101.34     Subdivision 1.  [SCHOOL BUS ENDORSEMENT.] (a) No person 
101.35  shall drive a school bus when transporting school children to or 
101.36  from school or upon a school-related trip or activity without 
102.1   having a valid class A, class B, or class C, or class D driver's 
102.2   license with a school bus endorsement except that a person 
102.3   possessing a valid driver's license but not a school bus 
102.4   endorsement may drive a vehicle with a seating capacity of ten 
102.5   or less fewer persons used as a school bus but not outwardly 
102.6   equipped or identified as a school bus. 
102.7      (b) Notwithstanding section 171.08, a person who otherwise 
102.8   meets the qualifications for a school bus endorsement or 
102.9   temporary endorsement under subdivision 3, paragraph (b), may 
102.10  drive a school bus for up to 30 days without an endorsement so 
102.11  long as the employer of the person: 
102.12     (1) has in possession all documentation required for 
102.13  issuing the endorsement; and 
102.14     (2) has forwarded proof of possession of the documentation 
102.15  to the commissioner of public safety. 
102.16     Subd. 1a.  [RESPONSIBILITY FOR ENDORSEMENT STATUS.] It is 
102.17  the responsibility of the commissioner of public safety to issue 
102.18  a school bus endorsement to a qualified applicant.  When the 
102.19  endorsement has been issued, it is the responsibility of the 
102.20  individual to whom the endorsement is issued to ensure that the 
102.21  endorsement is in effect before the individual operates a school 
102.22  bus.  The employer of a school bus driver shall check the 
102.23  endorsement status when the school bus driver is hired and at 
102.24  least twice during each 12-month period thereafter. 
102.25     Subd. 2.  [RULES.] (a) The commissioner of public safety 
102.26  shall prescribe rules governing the physical qualifications of 
102.27  school bus drivers and tests required to obtain a school bus 
102.28  endorsement.  The rules must provide that an applicant for a 
102.29  school bus endorsement or renewal is exempt from the physical 
102.30  qualifications and medical examination required to operate a 
102.31  school bus upon providing evidence of being medically examined 
102.32  and certified within the preceding 24 months as physically 
102.33  qualified to operate a commercial motor vehicle, pursuant to 
102.34  Code of Federal Regulations, title 49, part 391, subpart E, or 
102.35  rules of the commissioner of transportation incorporating those 
102.36  federal regulations.  The commissioner shall accept physical 
103.1   examinations for school bus drivers conducted by medical 
103.2   examiners authorized as provided by the Code of Federal 
103.3   Regulations, title 49, chapter 3, part 391, subpart E. 
103.4      (b) The commissioner of public safety, in conjunction with 
103.5   the commissioner of economic security, shall adopt rules 
103.6   prescribing a training program for Head Start bus drivers.  The 
103.7   program must provide for initial classroom and behind-the-wheel 
103.8   training, and annual in-service training.  The program must 
103.9   provide training in defensive driving, human relations, 
103.10  emergency and accident procedures, vehicle maintenance, traffic 
103.11  laws, and use of safety equipment.  The program must provide 
103.12  that the training will be conducted by the contract operator for 
103.13  a Head Start agency, the Head Start grantee, a licensed driver 
103.14  training school, or by another person or entity approved by both 
103.15  commissioners. 
103.16     Subd. 3.  [RECORDS CHECK OF APPLICANT.] (a) Before issuing 
103.17  or renewing a school bus endorsement, the commissioner shall 
103.18  conduct a criminal and driver's license records check of the 
103.19  applicant.  The commissioner may also conduct the check at any 
103.20  time while a person is so licensed.  The check shall must 
103.21  consist of a criminal records check of the state criminal 
103.22  records repository and a check of the driver's license records 
103.23  system.  If the applicant has resided in Minnesota for less than 
103.24  five years, the check shall must also include a criminal records 
103.25  check of information from the state law enforcement agencies in 
103.26  the states where the person resided during the five years before 
103.27  moving to Minnesota, and of the national criminal records 
103.28  repository including the criminal justice data communications 
103.29  network.  The applicant's failure to cooperate with the 
103.30  commissioner in conducting the records check is reasonable cause 
103.31  to deny an application or cancel a school bus endorsement.  The 
103.32  commissioner may not release the results of the records check to 
103.33  any person except the applicant or the applicant's designee in 
103.34  writing. 
103.35     (b) The commissioner may issue to an otherwise qualified 
103.36  applicant a temporary school bus endorsement, effective for no 
104.1   more than 180 days, upon presentation of (1) an affidavit by the 
104.2   applicant that the applicant has not been convicted of a 
104.3   disqualifying offense and (2) a criminal history check from each 
104.4   state of residence for the previous five years.  The criminal 
104.5   history check may be conducted and prepared by any public or 
104.6   private source acceptable to the commissioner.  The commissioner 
104.7   may reissue the temporary endorsement if the National Criminal 
104.8   Records Repository check is timely submitted but not completed 
104.9   within the 180-day period. 
104.10     Subd. 4.  [TRAINING.] (a) No person shall drive a class A, 
104.11  B, C, or D school bus when transporting school children to or 
104.12  from school or upon a school-related trip or activity without 
104.13  having demonstrated sufficient skills and knowledge to transport 
104.14  students in a safe and legal manner. 
104.15     (b) A bus driver must have training or experience that 
104.16  allows the driver to meet at least the following competencies: 
104.17     (1) safely operate the type of school bus the driver will 
104.18  be driving; 
104.19     (2) understand student behavior, including issues relating 
104.20  to students with disabilities; 
104.21     (3) encourage orderly conduct of students on the bus and 
104.22  handle incidents of misconduct appropriately; 
104.23     (4) know and understand relevant laws, rules of the road, 
104.24  and local school bus safety policies; 
104.25     (5) handle emergency situations; and 
104.26     (6) safely load and unload students. 
104.27     (c) The commissioner of public safety, in conjunction with 
104.28  the commissioner of children, families, and learning, shall 
104.29  develop a comprehensive model school bus driver training program 
104.30  and model assessments for school bus driver training 
104.31  competencies, which are not subject to chapter 14.  A school 
104.32  district may use alternative assessments for bus driver training 
104.33  competencies with the approval of the commissioner of public 
104.34  safety.  The employer shall keep the assessment for the current 
104.35  period available for inspection by representatives of the 
104.36  commissioner. 
105.1      Subd. 5.  [ANNUAL EVALUATION.] A school district's pupil 
105.2   transportation safety director, the chief administrator of a 
105.3   nonpublic school, or a private contractor shall certify annually 
105.4   to the commissioner of public safety school board or governing 
105.5   board of a nonpublic school that, at minimum, each school bus 
105.6   driver meets the school bus driver training competencies under 
105.7   subdivision 4 and shall report the number of hours of in-service 
105.8   training completed by each driver.  A school district, nonpublic 
105.9   school, or private contractor also shall provide in-service 
105.10  training annually to each school bus driver.  A district, 
105.11  nonpublic school, or private contractor also shall check the 
105.12  license of each person who transports students for the district 
105.13  with the National Drivers Register or the department of public 
105.14  safety annually.  The school board must approve and forward the 
105.15  competency certification and in-service report to the 
105.16  commissioner of public safety. 
105.17     <b>EFFECTIVE DATE:</b>  This section is effective the day 
105.18  following final enactment. 
105.19     Sec. 44.  Minnesota Statutes 1998, section 354.05, 
105.20  subdivision 2, is amended to read: 
105.21     Subd. 2.  [TEACHER.] (a) "Teacher" means: 
105.22     (1) a person who renders service as a teacher, supervisor, 
105.23  principal, superintendent, librarian, nurse, counselor, social 
105.24  worker, therapist, or psychologist in the public schools of the 
105.25  state located outside of the corporate limits of the cities of 
105.26  the first class as those cities were so classified on January 1, 
105.27  1979, or in the state colleges and universities system, or in 
105.28  any charitable, penal, or correctional institutions of a 
105.29  governmental subdivision, or who is engaged in educational 
105.30  administration in connection with the state public school 
105.31  system, including the state colleges and university system, but 
105.32  excluding the University of Minnesota, whether the position be a 
105.33  public office or an employment, not including members or 
105.34  officers of any general governing or managing board or body; 
105.35     (2) an employee of the teachers retirement association 
105.36  unless the employee is covered by the Minnesota state retirement 
106.1   system by virtue of prior employment by the association; 
106.2      (3) a person who renders teaching service on a part-time 
106.3   basis and who also renders other services for a single employing 
106.4   unit.  In such cases, the executive director shall determine 
106.5   whether all or none of the combined service is covered by the 
106.6   association, however a person whose teaching service comprises 
106.7   at least 50 percent of the combined employment salary is a 
106.8   member of the association for all services with the single 
106.9   employing unit; or 
106.10     (4) a person who renders services as a teacher, supervisor, 
106.11  principal, superintendent, librarian, nurse, counselor, social 
106.12  worker, therapist, or psychologist in a public school, 
106.13  including, but not limited to, charter schools organized under 
106.14  section 124D.10, when such services are provided by such person 
106.15  as an employee of a teacher controlled professional association 
106.16  formed under chapters 308A, 319B, 322B, 323, 323A, or any other 
106.17  appropriate law. 
106.18     (b) The term does not mean: 
106.19     (1) an employee described in section 352D.02, subdivision 
106.20  1a, who is hired after the effective date of Laws 1986, chapter 
106.21  458; 
106.22     (2) a person who works for a school or institution as an 
106.23  independent contractor as defined by the Internal Revenue 
106.24  Service; 
106.25     (3) a person employed in subsidized on-the-job training, 
106.26  work experience or public service employment as an enrollee 
106.27  under the federal Comprehensive Employment and Training Act from 
106.28  and after March 30, 1978, unless the person has, as of the later 
106.29  of March 30, 1978, or the date of employment, sufficient service 
106.30  credit in the retirement association to meet the minimum vesting 
106.31  requirements for a deferred retirement annuity, or the employer 
106.32  agrees in writing on forms prescribed by the executive director 
106.33  to make the required employer contributions, including any 
106.34  employer additional contributions, on account of that person 
106.35  from revenue sources other than funds provided under the federal 
106.36  Comprehensive Training and Employment Act, or the person agrees 
107.1   in writing on forms prescribed by the executive director to make 
107.2   the required employer contribution in addition to the required 
107.3   employee contribution; 
107.4      (4) a person holding a part-time adult supplementary 
107.5   technical college license who renders part-time teaching service 
107.6   in a technical college if (i) the service is incidental to the 
107.7   regular nonteaching occupation of the person; and (ii) the 
107.8   applicable technical college stipulates annually in advance that 
107.9   the part-time teaching service will not exceed 300 hours in a 
107.10  fiscal year and retains the stipulation in its records; and 
107.11  (iii) the part-time teaching service actually does not exceed 
107.12  300 hours in a fiscal year; or 
107.13     (5) a person exempt from licensure pursuant to section 
107.14  122A.30. 
107.15     Sec. 45.  Minnesota Statutes 1998, section 354A.011, 
107.16  subdivision 27, is amended to read: 
107.17     Subd. 27.  [TEACHER.] "Teacher" means any person who 
107.18  renders service in a public school district, including, but not 
107.19  limited to, a charter school organized under section 124D.10, 
107.20  located in the corporate limits of one of the cities of the 
107.21  first class which was so classified on January 1, 1979, as any 
107.22  of the following: 
107.23     (a) a full-time employee in a position for which a valid 
107.24  license from the state department of children, families, and 
107.25  learning is required; 
107.26     (b) an employee of the teachers retirement fund association 
107.27  located in the city of the first class unless the employee has 
107.28  exercised the option pursuant to Laws 1955, chapter 10, section 
107.29  1, to retain membership in the Minneapolis employees retirement 
107.30  fund established pursuant to chapter 422A; 
107.31     (c) a part-time employee in a position for which a valid 
107.32  license from the state department of children, families, and 
107.33  learning is required; or 
107.34     (d) a part-time employee in a position for which a valid 
107.35  license from the state department of children, families, and 
107.36  learning is required who also renders other nonteaching services 
108.1   for the school district unless the board of trustees of the 
108.2   teachers retirement fund association determines that the 
108.3   combined employment is on the whole so substantially dissimilar 
108.4   to teaching service that the service shall not be covered by the 
108.5   association; or 
108.6      (e) an employee of a teacher controlled professional 
108.7   association formed under chapter 308A, 319B, 322B, 323, 323A, or 
108.8   any other appropriate law. 
108.9      The term shall not mean any person who renders service in 
108.10  the school district as any of the following: 
108.11     (1) an independent contractor or the employee of an 
108.12  independent contractor; 
108.13     (2) an employee who is a full-time teacher covered by 
108.14  another teachers retirement fund association established 
108.15  pursuant to this chapter or chapter 354; 
108.16     (3) an employee exempt from licensure pursuant to section 
108.17  122A.30; 
108.18     (4) an employee who is a teacher in a technical college 
108.19  located in a city of the first class unless the person elects 
108.20  coverage by the applicable first class city teacher retirement 
108.21  fund association under section 354B.21, subdivision 2; or 
108.22     (5) an employee who is a part-time teacher in a technical 
108.23  college in a city of the first class and who has elected 
108.24  coverage by the applicable first class city teacher retirement 
108.25  fund association under section 354B.21, subdivision 2, but (i) 
108.26  the teaching service is incidental to the regular nonteaching 
108.27  occupation of the person; (ii) the applicable technical college 
108.28  stipulates annually in advance that the part-time teaching 
108.29  service will not exceed 300 hours in a fiscal year; and (iii) 
108.30  the part-time teaching actually does not exceed 300 hours in the 
108.31  fiscal year to which the certification applies. 
108.32     Sec. 46.  Minnesota Statutes 1998, section 471.15, is 
108.33  amended to read: 
108.34     471.15 [RECREATIONAL FACILITIES BY MUNICIPALITY, VETERANS; 
108.35  BONDS.] 
108.36     (a) Any home rule charter or statutory city or any town, 
109.1   county, school district, or any board thereof, or any 
109.2   incorporated post of the American Legion or any other 
109.3   incorporated veterans' organization, may expend not to exceed 
109.4   $800 in any one year, for the purchase of awards and trophies 
109.5   and may operate a program of public recreation and playgrounds; 
109.6   acquire, equip, and maintain land, buildings, or other 
109.7   recreational facilities, including an outdoor or indoor swimming 
109.8   pool; and expend funds for the operation of such program 
109.9   pursuant to the provisions of sections 471.15 to 471.19.  The 
109.10  city, town, county or school district may issue bonds pursuant 
109.11  to chapter 475 for the purpose of carrying out the powers 
109.12  granted by this section.  The city, town, county or school 
109.13  district may operate the program and facilities directly or 
109.14  establish one or more recreation boards to operate all or 
109.15  various parts of them. 
109.16     (b) A town may expend funds for the purpose of supporting 
109.17  student academic and extra curricula activities sponsored by the 
109.18  local school district. 
109.19     Sec. 47.  Laws 1999, chapter 241, article 5, section 18, 
109.20  subdivision 5, is amended to read: 
109.21     Subd. 5.  [CHARTER SCHOOL BUILDING LEASE AID.] For building 
109.22  lease aid according to Minnesota Statutes, section 124D.11, 
109.23  subdivision 4: 
109.24       $2,992,000 $5,981,000   ..... 2000
109.25       $3,616,000 $9,975,000   ..... 2001
109.26     The 2000 appropriation includes $194,000 for 1999 and 
109.27  $2,798,000 $5,787,000 for 2000. 
109.28     The 2001 appropriation includes $311,000 $643,000 for 2000 
109.29  and $3,305,000 $9,332,000 for 2001.  
109.30     <b>EFFECTIVE DATE:</b>  This section is effective the day 
109.31  following final enactment. 
109.32     Sec. 48.  Laws 1999, chapter 241, article 5, section 18, 
109.33  subdivision 6, is amended to read: 
109.34     Subd. 6.  [CHARTER SCHOOL START-UP GRANTS.] For charter 
109.35  school start-up cost aid under Minnesota Statutes, section 
109.36  124D.11: 
110.1        $1,789,000 $1,955,000     .....     2000 
110.2        $1,876,000 $2,926,000    .....     2001 
110.3      The 2000 appropriation includes $100,000 for 1999 and 
110.4   $1,689,000 $1,855,000 for 2000. 
110.5      The 2001 appropriation includes $188,000 $706,000 for 1999 
110.6   2000 and $1,688,000 $2,720,000 for 2001. 
110.7      Any balance in the first year does not cancel but is 
110.8   available in the second year.  This appropriation may also be 
110.9   used for grants to convert existing schools into charter schools.
110.10     <b>EFFECTIVE DATE:</b>  This section is effective the day 
110.11  following final enactment. 
110.12     Sec. 49.  [MINNESOTA NEW TEACHER PROJECT.] 
110.13     Subdivision 1.  [ESTABLISHMENT; PARTICIPATION.] The 
110.14  Minnesota new teacher project is established in the department 
110.15  of children, families, and learning in order to retain new 
110.16  teachers in the profession and to provide models for supporting 
110.17  the professional development of first-year and second-year 
110.18  teachers.  In order for a school district to participate in the 
110.19  new teacher project, a school board and an exclusive 
110.20  representative of the teachers in the district, or for a charter 
110.21  school the majority of the teachers, must agree to participate 
110.22  in the new teacher project and to the district plan under 
110.23  subdivision 2. 
110.24     Subd. 2.  [DISTRICT PLAN.] A district that participates in 
110.25  the new teacher project must submit a plan for the project to 
110.26  the commissioner for approval.  The new teacher project plan 
110.27  must be consistent with the knowledge and skills required in the 
110.28  teacher licensure rules adopted by the board of teaching and the 
110.29  state graduation requirements and include curricula of best 
110.30  practice activities such as one-on-one mentoring, intensive 
110.31  summer orientation, first-year and second-year training 
110.32  workshops, peer review, mutual observation between new and 
110.33  experienced teachers, classroom management techniques, cultural 
110.34  diversity, reading strategies, lighter workloads, and first-year 
110.35  residency.  The plan must include the participation of a teacher 
110.36  preparation program approved by the board of teaching. 
111.1      Districts receiving a grant under this section must report 
111.2   to the board of teaching regarding its chosen new teacher 
111.3   project plan. 
111.4      Subd. 3.  [STATE MATCH.] A district that has an approved 
111.5   new teacher project plan is eligible to receive $3,000 of state 
111.6   money for each new teacher participating in the project.  The 
111.7   district must contribute $2,000 of district money for each new 
111.8   teacher participating in the project. 
111.9      Sec. 50.  [POSTRETIREMENT AND ACTIVE EMPLOYEE HEALTH CARE 
111.10  TASK FORCE.] 
111.11     (a) The commissioner of employee relations shall convene a 
111.12  task force on postretirement and active employee health care.  
111.13  The task force shall identify strategies for providing 
111.14  postretirement and active employee health care coverage for 
111.15  public employees and make recommendations regarding the most 
111.16  appropriate and efficient manner for providing postretirement 
111.17  and active employee health care. 
111.18     (b) One-half of the task force membership shall be composed 
111.19  of employees and the other half of the membership must be 
111.20  composed of employers.  The task force shall include, but not be 
111.21  limited to, the following: 
111.22     (1) a representative of the department of employee 
111.23  relations; 
111.24     (2) a representative of the Minnesota state retirement 
111.25  system; 
111.26     (3) a representative of the teachers retirement 
111.27  association; 
111.28     (4) a representative of the public employees retirement 
111.29  association; 
111.30     (5) a representative of the first class city teacher 
111.31  retirement fund associations; 
111.32     (6) a representative of the first class city police and 
111.33  fire department relief associations; 
111.34     (7) a representative of the Minneapolis employees 
111.35  retirement fund; 
111.36     (8) a representative of the legislative coordinating 
112.1   commission subcommittee on employee relations; 
112.2      (9) one representative each from the Minnesota school 
112.3   boards association, Minnesota service cooperatives, the 
112.4   association of Minnesota counties, the Minnesota association of 
112.5   townships, and the league of Minnesota cities; 
112.6      (10) exclusive representatives of affected public 
112.7   employees; and 
112.8      (11) representatives of major public employers. 
112.9      (c) The task force shall report its findings and 
112.10  recommendations to the legislature by November 15, 2000.  The 
112.11  report shall address: 
112.12     (1) alternative methods of providing and paying for 
112.13  postretirement and active employee health care; 
112.14     (2) the estimated cost of providing postretirement and 
112.15  active employee health care under various alternatives, 
112.16  including statewide, regional, or market alternatives; 
112.17     (3) the most efficient administrative structure for 
112.18  providing for postretirement and active employee health care; 
112.19  and 
112.20     (4) issues of adverse selection, cost containment, consumer 
112.21  choice, and consider options for dealing with other employee 
112.22  concerns. 
112.23     (d) The task force shall conduct the study and assemble 
112.24  data in a manner that will provide for the ability to conduct 
112.25  analysis for subsets of the groups being studied by employer and 
112.26  employee types. 
112.27     Sec. 51.  [TASK FORCE ON SCHOOL GOVERNANCE AND MANAGEMENT.] 
112.28     Subdivision 1.  [ESTABLISHMENT.] The task force on school 
112.29  governance and management is established to examine the existing 
112.30  constitutional and statutory provisions that dictate the 
112.31  governance responsibilities and authority of the respective 
112.32  components of the state's public education system. 
112.33     Subd. 2.  [MEMBERSHIP; STAFFING.] (a) The task force on 
112.34  school governance and management must be composed of nine 
112.35  members, with three members appointed by the governor, three 
112.36  members appointed by the speaker of the house of 
113.1   representatives, and three members appointed by the subcommittee 
113.2   on committees of the senate committee on rules and 
113.3   administration.  Members should represent the business 
113.4   community, education stakeholders, parents, or other interested 
113.5   community members. 
113.6      (b) The executive branch through the office of the governor 
113.7   shall make staff available to assist the task force. 
113.8      Subd. 3.  [REPORT.] (a) The task force on school governance 
113.9   and management must report to the governor and the appropriate 
113.10  committees of the house and senate no later than December 1, 
113.11  2000. 
113.12     (b) The task force must do the following: 
113.13     (1) identify any governance or organizational barriers that 
113.14  inhibit or preclude schools or school districts from: 
113.15     (i) ensuring all students meet state and local graduation 
113.16  standards; 
113.17     (ii) ensuring instructional programs are available to meet 
113.18  individual student's academic needs; 
113.19     (iii) making efficient changes in instructional and 
113.20  noninstructional program and service delivery; and 
113.21     (iv) delegating instructional and general operating 
113.22  decision-making to the school level; and 
113.23     (2) make recommendations regarding the statutory changes 
113.24  needed to enable school districts to: 
113.25     (i) continuously identify changes to meet the needs of 
113.26  student cohorts; 
113.27     (ii) provide a variety of instructional opportunities to 
113.28  meet individual student needs; 
113.29     (iii) measure individual student academic achievement; and 
113.30     (iv) modify or expand instructional programs if student 
113.31  achievement does not meet expectations. 
113.32     Subd. 4.  [EXPIRATION.] The task force on school governance 
113.33  and management expires on December 31, 2000. 
113.34     <b>EFFECTIVE DATE:</b>  This section is effective the day 
113.35  following final enactment. 
113.36     Sec. 52.  [2000-2001 SCHOOL YEAR START DATE.] 
114.1      Subdivision 1.  [LABOR DAY START.] Notwithstanding 
114.2   Minnesota Statutes, section 120A.40, for the 2000-2001 school 
114.3   year only, a district must not begin the elementary or secondary 
114.4   school year prior to Labor Day. 
114.5      Subd. 2.  [MABEL-CANTON.] Notwithstanding subdivision 1 and 
114.6   Minnesota Statutes, section 120A.40, for the 2000-2001 school 
114.7   year only, independent school district No. 238, Mabel-Canton, 
114.8   may start the school year up to five weekdays before Labor Day 
114.9   for the purpose of scheduling an additional academic term during 
114.10  the regular school year. 
114.11     Sec. 53.  [TEACHER PREPARATION PROGRAM CREATED.] 
114.12     Subdivision 1.  [TEACHER PREPARATION LEADING TO LICENSURE.] 
114.13  The board of trustees of the Minnesota state colleges and 
114.14  universities shall offer a program of teacher preparation 
114.15  leading to licensure, involving Metropolitan state university, 
114.16  Inver Hills community college, and Minneapolis community and 
114.17  technical college.  The institutions involved shall enter into 
114.18  an agreement whereby Inver Hills community college and 
114.19  Minneapolis community and technical college shall provide the 
114.20  first two years of the program, and Metropolitan state 
114.21  university shall provide the final two years of the program.  In 
114.22  fall semester 2000, Minneapolis community and technical college 
114.23  and Inver Hills community college shall offer a preeducation 
114.24  program.  After development of the program in fiscal year 2001, 
114.25  Metropolitan state university shall begin its licensure program 
114.26  in fall semester 2001.  The program shall focus on preparing 
114.27  teachers to meet the specific needs of urban and inner-ring 
114.28  suburban schools and shall emphasize significant direct 
114.29  classroom teaching experience and mentoring throughout each 
114.30  student's preparation.  The program may also focus on the 
114.31  professional development of pre-tenure teachers.  Metropolitan 
114.32  state university, Inver Hills community college, and Minneapolis 
114.33  community and technical college are encouraged to enter into 
114.34  partnerships with urban and inner-ring suburban schools to 
114.35  provide for significant involvement of elementary and secondary 
114.36  teachers in the mentoring of students enrolled in the program.  
115.1   The program shall establish a goal that at least 50 percent of 
115.2   the participants be students of color. 
115.3      Subd. 2.  [REPORT REQUIRED.] By February 15, 2002, the 
115.4   board of trustees shall provide a progress report to the chairs 
115.5   of the higher education finance divisions of the legislature 
115.6   regarding the development of the teacher preparation program.  
115.7   The report shall include feedback from enrolled students 
115.8   concerning how the program meets their needs, as well as from 
115.9   cooperating elementary and secondary schools on how the students 
115.10  are performing on site.  The report shall also include the 
115.11  number of participants in the program who are students of color. 
115.12     Sec. 54.  [CHARTER SCHOOL BUILDING LEASE AID ADJUSTMENT.] 
115.13     Notwithstanding Minnesota Statutes, section 124D.11, 
115.14  subdivision 4, for fiscal year 2000 and fiscal year 2001 only, 
115.15  the amount of building lease aid for a charter school with a 
115.16  lease signed before March 15, 2000, shall not exceed the lesser 
115.17  of: 
115.18     (1) 90 percent of the approved cost in the current year for 
115.19  leases signed before March 15, 2000; or 
115.20     (2) the product of the pupil units served for the current 
115.21  school year times $1,500. 
115.22     <b>EFFECTIVE DATE:</b>  This section is effective the day 
115.23  following final enactment. 
115.24     Sec. 55.  [CHARTER SCHOOL BUILDING LEASE AID REVIEW.] 
115.25     The department of children, families, and learning shall 
115.26  work with charter school operators and other interested parties 
115.27  to create recommendations for appropriate criteria for charter 
115.28  school building lease aid and report its findings to the 
115.29  education committees of the legislature by January 15, 2001. 
115.30     Sec. 56.  [APPROPRIATIONS.] 
115.31     Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
115.32  LEARNING.] The sum indicated in this section is appropriated 
115.33  from the general fund to the department of children, families, 
115.34  and learning for the fiscal year indicated. 
115.35     Subd. 2.  [POSTRETIREMENT AND ACTIVE EMPLOYEE HEALTH CARE.] 
115.36  For a report on postretirement and active employee health care: 
116.1        $300,000     .....     2001 
116.2      Subd. 3.  [BUSINESS CHARTER SCHOOL START-UP GRANT.] For a 
116.3   new charter school with a business immersion program that 
116.4   occupies a publicly owned building in St. Paul: 
116.5        $200,000     .....     2001 
116.6      Subd. 4.  [PROFESSIONAL TEACHING STANDARDS.] For grant 
116.7   awards for national board for professional teaching standards 
116.8   certification according to Laws 1997, First Special Session 
116.9   chapter 4, article 5, section 22: 
116.10        $150,000      ....     2001
116.11     Sec. 57.  [REPEALER.] 
116.12     Minnesota Statutes 1998, section 120A.41, is repealed 
116.13  effective for the 2000-2001 and later school years. 
116.14                             ARTICLE 6
116.15                    NUTRITION AND OTHER PROGRAMS
116.16     Section 1.  [123B.575] [PESTICIDE APPLICATION AT SCHOOLS.] 
116.17     Subdivision 1.  [PARENTS' RIGHT-TO-KNOW ACT.] Subdivisions 
116.18  2 to 9 may be cited as the Janet B. Johnson Parents' 
116.19  Right-to-Know Act of 2000. 
116.20     Subd. 2.  [PESTICIDE APPLICATION NOTIFICATION.] A school 
116.21  that plans to apply a pesticide which is a toxicity category I, 
116.22  II, or III pesticide product, as classified by the United States 
116.23  Environmental Protection Agency, or a restricted use pesticide, 
116.24  as designated under the Federal Insecticide, Fungicide, and 
116.25  Rodenticide Act, must provide a notice to parents and employees 
116.26  that it applies such pesticides.  The notice required under 
116.27  subdivision 3 must: 
116.28     (1) provide that an estimated schedule of the pesticide 
116.29  applications is available for review or copying at the school 
116.30  offices where such pesticides are applied; 
116.31     (2) state that long-term health effects on children from 
116.32  the application of such pesticides or the class of chemicals to 
116.33  which they belong may not be fully understood; 
116.34     (3) inform parents that a parent may request the school 
116.35  notify him or her in the manner specified in subdivision 6 
116.36  before any application of a pesticide listed in this subdivision.
117.1      Subd. 3.  [NOTICE; TIMING; DISTRIBUTION.] The notice must 
117.2   be provided during the first two weeks of each school year 
117.3   during which pesticides listed in subdivision 2 are planned to 
117.4   be applied.  The notice may be included with other notices 
117.5   provided by the school, but must be separately identified and 
117.6   clearly visible to the reader.  
117.7      Subd. 4.  [SCHOOL HANDBOOK OR NEWSLETTER INFORMATION.] In 
117.8   addition to the notice provided during the first two weeks of 
117.9   the school year, a school that is required to provide notice 
117.10  under this section shall include in any school handbook or 
117.11  newsletter a section informing parents that an estimated 
117.12  schedule of applications of pesticides listed in subdivision 2 
117.13  is available for review or copying at the school offices, and 
117.14  that a parent may receive prior notice of each application if 
117.15  specifically requested.  
117.16     Subd. 5.  [NOTICE AVAILABILITY.] A school that uses a 
117.17  pesticide listed in subdivision 2 must keep a copy of all 
117.18  notifications required under subdivisions 2 and 3 in a manner 
117.19  available to the public.  
117.20     Subd. 6.  [NOTIFICATION FOR INDIVIDUAL PARENTS.] A parent 
117.21  of a student at a school may request that the school principal 
117.22  or other person having general control and supervision of the 
117.23  school notify the parent prior to the application of any 
117.24  pesticides listed in subdivision 2 at the school.  The school 
117.25  principal or other person having general control and supervision 
117.26  of the school must provide reasonable notice to a parent who has 
117.27  requested such notification prior to applying such pesticides.  
117.28  The notice may be waived for emergency applications required 
117.29  only by appropriate state or local health officials.  The notice 
117.30  must include the pesticide to be applied, the time of the 
117.31  planned application, and the location at the school of the 
117.32  planned application. 
117.33     Subd. 7.  [MODEL NOTICE.] The department of health, in 
117.34  consultation with the department of children, families, and 
117.35  learning and the office of environmental assistance, shall 
117.36  develop and make available to schools by August 1, 2000, a model 
118.1   notice in a form that can be used by a school if it chooses to 
118.2   do so.  The model notice must include the information required 
118.3   by this section.  The department of health must provide an 
118.4   opportunity for environmental groups and interested parents to 
118.5   work with the department in developing the model notice.  
118.6      Subd. 8.  [PLAN.] A school is not required to adopt an 
118.7   integrated pest management plan.  A school board may only notify 
118.8   students, parents, or employees that it has adopted an 
118.9   integrated pest management plan if the plan is a managed pest 
118.10  control program designed to minimize the risk to human health 
118.11  and the environment and to reduce the use of chemical 
118.12  pesticides, and which ranks the district's response to pests in 
118.13  the following manner: 
118.14     (1) identifying pests which need to be controlled; 
118.15     (2) establishing tolerable limits of each identified pest; 
118.16     (3) designing future buildings and landscapes to prevent 
118.17  identified pests; 
118.18     (4) excluding identified pests from sites and buildings 
118.19  using maintenance practices; 
118.20     (5) adapting cleaning activities and best management 
118.21  practices to minimize the number of pests; 
118.22     (6) using mechanical methods of controlling identified 
118.23  pests; and 
118.24     (7) controlling identified pests using the least toxic 
118.25  pesticides with the least exposure to persons as is practicable. 
118.26     Subd. 9.  [PESTICIDE DEFINED; CLEANING PRODUCTS 
118.27  EXCLUDED.] For purposes of this section, the term "pesticide" 
118.28  has the meaning given it in section 18B.01, subdivision 18, 
118.29  except that it does not include any disinfectants, sanitizers, 
118.30  deodorizers, or antimicrobial agents used for general cleaning 
118.31  purposes. 
118.32     Subd. 10.  [PEST DEFINED.] For purposes of this section, 
118.33  the term "pest" has the meaning given it in section 18B.01, 
118.34  subdivision 17. 
118.35     Subd. 11.  [SCHOOL DEFINED.] For the purposes of this 
118.36  section, "school" means a school as defined in section 120A.22, 
119.1   subdivision 4, excluding home schools. 
119.2      Subd. 12.  [IMMUNITY FROM LIABILITY.] No cause of action 
119.3   may be brought against a school district, a school, or the 
119.4   districts or school's employees or agents for any action taken 
119.5   by them in performing their duties under this section. 
119.6      <b>EFFECTIVE DATE:</b>  This section is effective August 1, 2000. 
119.7      Sec. 2.  Minnesota Statutes 1998, section 123B.80, is 
119.8   amended by adding a subdivision to read: 
119.9      Subd. 4.  [FUND TRANSFER.] A district may permanently 
119.10  transfer funds without a levy reduction under section 475.61 if 
119.11  at least 30 days prior to the transfer it adopts a board 
119.12  resolution authorizing the action and informs each property 
119.13  taxpayer in the district by first-class mail of the proposed 
119.14  amount to be transferred.  The notice must indicate that state 
119.15  law requires the district to otherwise reduce school levies and 
119.16  that levies will be higher by the amount.  This notice 
119.17  requirement also applies to any transfer made under this section 
119.18  or by any special provision enacted into law.  If the transfer 
119.19  under this section or special law would not otherwise have 
119.20  resulted in a levy reduction, the notice must include the amount 
119.21  and must indicate that property tax levies will not be used for 
119.22  the original purpose for which they were levied. 
119.23     Sec. 3.  Minnesota Statutes 1998, section 124D.111, 
119.24  subdivision 1, is amended to read: 
119.25     Subdivision 1.  [SCHOOL LUNCH AID COMPUTATION.] Each school 
119.26  year, the state must pay districts participating in the national 
119.27  school lunch program the amount of 6.5 eight cents for each full 
119.28  paid, reduced, and free student lunch served to students in the 
119.29  district.  
119.30     <b>EFFECTIVE DATE:</b>  This section is effective the day 
119.31  following final enactment. 
119.32     Sec. 4.  Laws 1999, chapter 241, article 6, section 14, 
119.33  subdivision 2, is amended to read: 
119.34     Subd. 2.  [ABATEMENT AID.] For abatement aid according to 
119.35  Minnesota Statutes, section 127A.49:  
119.36        $9,110,000 $9,577,000   .....     2000 
120.1         $8,947,000 $8,279,000   .....     2001 
120.2      The 2000 appropriation includes $1,352,000 for 1999 and 
120.3   $7,758,000 $8,225,000 for 2000.  
120.4      The 2001 appropriation includes $861,000 $914,000 for 2000 
120.5   and $8,086,000 $7,365,000 for 2001.  
120.6      <b>EFFECTIVE DATE:</b>  This section is effective the day 
120.7   following final enactment. 
120.8      Sec. 5.  Laws 1999, chapter 241, article 6, section 14, 
120.9   subdivision 3, is amended to read: 
120.10     Subd. 3.  [NONPUBLIC PUPIL AID.] For nonpublic pupil 
120.11  education aid according to Minnesota Statutes, sections 123B.40 
120.12  to 123B.48 and 123B.87: 
120.13       $10,996,000 $11,552,000   .....      2000 
120.14       $11,878,000 $12,757,000   .....      2001 
120.15     The 2000 appropriation includes $970,000 for 1999 and 
120.16  $10,026,000 $10,582,000 for 2000. 
120.17     The 2001 appropriation includes $1,114,000 $1,175,000 for 
120.18  2000 and $10,764,000 $11,582,000 for 2001.  
120.19     The department shall recompute the maximum allotments 
120.20  established on March 1, 1999, for fiscal year 2000 under 
120.21  Minnesota Statutes, sections 123B.42, subdivision 3, and 
120.22  123B.44, subdivision 6, to reflect the amount appropriated in 
120.23  this subdivision for fiscal year 2000. 
120.24     <b>EFFECTIVE DATE:</b>  This section is effective the day 
120.25  following final enactment. 
120.26     Sec. 6.  Laws 1999, chapter 241, article 6, section 14, 
120.27  subdivision 4, is amended to read: 
120.28     Subd. 4.  [CONSOLIDATION TRANSITION AID.] For districts 
120.29  consolidating under Minnesota Statutes, section 123A.485: 
120.30       $451,000 $563,000      .....     2000
120.31       $375,000 $455,000      .....     2001
120.32     The 2000 appropriation includes $113,000 for 1999 and 
120.33  $338,000 $450,000 for 2000. 
120.34     The 2001 appropriation includes $37,000 $50,000 for 2000 
120.35  and $338,000 $405,000 for 2001. 
120.36     Any balance in the first year does not cancel but is 
121.1   available in the second year. 
121.2      <b>EFFECTIVE DATE:</b>  This section is effective the day 
121.3   following final enactment. 
121.4      Sec. 7.  Laws 1999, chapter 241, article 6, section 14, 
121.5   subdivision 5, is amended to read: 
121.6      Subd. 5.  [NONPUBLIC PUPIL TRANSPORTATION.] For nonpublic 
121.7   pupil transportation aid under Minnesota Statutes, section 
121.8   123B.92, subdivision 9: 
121.9        $18,586,000 $20,358,000   .....     2000 
121.10       $20,922,000 $21,333,000   .....     2001 
121.11     The 2000 appropriation includes $1,848,000 for 2000 and 
121.12  $16,738,000 $18,510,000 for 2001. 
121.13     The 2001 appropriation includes $1,860,000 $2,057,000 for 
121.14  2000 and $19,062,000 $19,276,000 for 2001. 
121.15     <b>EFFECTIVE DATE:</b>  This section is effective the day 
121.16  following final enactment. 
121.17     Sec. 8.  Laws 1999, chapter 241, article 7, section 2, 
121.18  subdivision 2, is amended to read: 
121.19     Subd. 2.  [SCHOOL LUNCH AID.] (a) For school lunch aid 
121.20  according to Minnesota Statutes, section 124D.111, and Code of 
121.21  Federal Regulations, title 7, section 210.17, and for school 
121.22  milk aid according to Minnesota Statutes, section 124D.118:  
121.23       $8,200,000     .....     2000 
121.24       $8,200,000     .....     2001 
121.25     (b) Any unexpended balance remaining from the 
121.26  appropriations in this subdivision shall be prorated among 
121.27  participating schools based on the number of free, reduced, and 
121.28  fully paid federally reimbursable student lunches served during 
121.29  that school year.  
121.30     (c) If the appropriation amount attributable to either year 
121.31  is insufficient, the rate of payment for each fully paid student 
121.32  lunch shall be reduced and the aid for that year shall be 
121.33  prorated among participating schools so as not to exceed the 
121.34  total authorized appropriation for that year.  
121.35     (d) Not more than $800,000 of the amount appropriated each 
121.36  year may be used for school milk aid. 
122.1      <b>EFFECTIVE DATE:</b>  This section is effective the day 
122.2   following final enactment. 
122.3      Sec. 9.  Laws 1999, chapter 241, article 7, section 2, 
122.4   subdivision 5, is amended to read: 
122.5      Subd. 5.  [SCHOOL BREAKFAST.] To operate the school 
122.6   breakfast program according to Minnesota Statutes, sections 
122.7   124D.115 and 124D.117: 
122.8        $456,000 $713,000     .....     2000
122.9        $456,000 $713,000     .....     2001
122.10     If the appropriation amount attributable to either year is 
122.11  insufficient, the rate of payment for each fully paid student 
122.12  breakfast shall be reduced and the aid for that year shall be 
122.13  prorated among participating schools so as not to exceed the 
122.14  total authorized appropriation for that year.  Any unexpended 
122.15  balance remaining shall be used to subsidize the payments made 
122.16  for school lunch aid per Minnesota Statutes, section 124D.111.  
122.17     Up to one percent of the program funding can be used by the 
122.18  department of children, families, and learning for technical and 
122.19  administrative assistance. 
122.20     <b>EFFECTIVE DATE:</b>  This section is effective the day 
122.21  following final enactment. 
122.22     Sec. 10.  [DEPARTMENT OF CHILDREN, FAMILIES, AND LEARNING 
122.23  WEB SITE.] 
122.24     The department of children, families, and learning must 
122.25  maintain a list of pesticides that are classified as toxicity 
122.26  category I, II, or III pesticide products or as restricted use 
122.27  pesticides under the Federal Insecticide, Fungicide, and 
122.28  Rodenticide Act.  The department must maintain the list on its 
122.29  Web site or as a prominent link on its Web site to another state 
122.30  or federal agency's Web site. 
122.31     <b>EFFECTIVE DATE:</b>  This section is effective August 1, 2000. 
122.32     Sec. 11.  [FUND TRANSFERS.] 
122.33     Subdivision 1.  [BROWERVILLE.] Notwithstanding Minnesota 
122.34  Statutes, sections 123B.79; 123B.80; and 475.61, subdivision 4, 
122.35  on June 30, 2000, independent school district No. 787, 
122.36  Browerville, may permanently transfer up to $110,000 from its 
123.1   debt redemption fund to its operating capital fund without 
123.2   making a levy reduction. 
123.3      Subd. 2.  [CHOKIO-ALBERTA.] (a) Notwithstanding Minnesota 
123.4   Statutes, section 123B.58, 123B.79, or 123B.80, on June 30, 
123.5   2000, upon approval of the commissioner of children, families, 
123.6   and learning, independent school district No. 771, 
123.7   Chokio-Alberta, may permanently transfer up to $121,000 from its 
123.8   reserved account for disabled accessibility to its undesignated 
123.9   general fund balance. 
123.10     (b) Prior to making the fund transfer, independent school 
123.11  district No. 771, Chokio-Alberta, must demonstrate to the 
123.12  commissioner's satisfaction that the district's school buildings 
123.13  are accessible to students or employees with disabilities. 
123.14     Subd. 3.  [FERGUS FALLS.] Notwithstanding Minnesota 
123.15  Statutes, section 123B.79, 123B.80, or 475.61, subdivision 4, 
123.16  independent school district No. 544, Fergus Falls, on June 30, 
123.17  2000, may permanently transfer up to $200,000 from the debt 
123.18  redemption fund to the general fund without making a levy 
123.19  reduction. 
123.20     Subd. 4.  [GRAND MEADOW.] Notwithstanding Minnesota 
123.21  Statutes, sections 123B.79; 123B.80; and 475.61, subdivision 4, 
123.22  independent school district No. 495, Grand Meadow, may 
123.23  permanently transfer up to $300,000 from its disabled access 
123.24  account in the general fund to its capital fund.  This transfer 
123.25  is contingent upon the school district's successful construction 
123.26  of a new kindergarten through grade 12 school. 
123.27     Subd. 5.  [LAKEVILLE.] Notwithstanding Minnesota Statutes, 
123.28  section 123B.79 or 123B.80, independent school district No. 194, 
123.29  Lakeville, may transfer up to $1,000,000 from its reserved 
123.30  account for operating capital to the unreserved, undesignated 
123.31  general fund.  When independent school district No. 194, 
123.32  Lakeville, attains a positive unreserved, undesignated general 
123.33  fund balance greater than ten percent of the most recent fiscal 
123.34  year's expenditures, the district shall transfer the amount 
123.35  exceeding ten percent to its reserve account for operating 
123.36  capital until an amount is transferred back that is equal to the 
124.1   amount transferred under this authority.  This subdivision 
124.2   expires on December 31, 2014.  
124.3      Subd. 6.  [MAHTOMEDI.] Notwithstanding Minnesota Statutes, 
124.4   sections 123B.80, 123B.912, and 475.61, subdivision 4, on June 
124.5   30, 2000, independent school district No. 832, Mahtomedi, may 
124.6   permanently transfer up to $525,000 from its debt redemption 
124.7   fund to its capital account in its general fund without making a 
124.8   levy reduction to purchase land for a school facility. 
124.9      Subd. 7.  [NORMAN COUNTY EAST.] Notwithstanding Minnesota 
124.10  Statutes, sections 123B.79, 123B.80, and 475.61, subdivision 4, 
124.11  on June 2000, independent school district No. 2215, Norman 
124.12  County East, may permanently transfer up to $419,000 from its 
124.13  building construction fund to the reserved account for operating 
124.14  capital in the general fund without making a levy reduction. 
124.15     Subd. 8.  [ST. FRANCIS.] Notwithstanding Minnesota 
124.16  Statutes, section 123B.53, on June 30, 2000, independent school 
124.17  district No. 15, St. Francis, may permanently transfer $543,000 
124.18  from its debt service fund to the general fund to help the 
124.19  district out of statutory operating debt without making a levy 
124.20  reduction.  This transfer is contingent upon the district 
124.21  maintaining 105 percent of principal and interest against the 
124.22  debt service fund liabilities. 
124.23     Subd. 9.  [STAPLES-MOTLEY.] Notwithstanding Minnesota 
124.24  Statutes, sections 123B.79; 123B.80; and 475.61, subdivision 4, 
124.25  on May 31, 2000, independent school district No. 2170, 
124.26  Staples-Motley, may permanently transfer up to $71,000 from the 
124.27  debt service account of the former independent school district 
124.28  No. 483, Motley, to independent school district No. 2170, 
124.29  Staples-Motley's, operating capital fund without making a levy 
124.30  reduction. 
124.31     Subd. 10.  [WIN-E-MAC.] At the completion of the 
124.32  consolidation of independent school district No. 604, Mentor, 
124.33  and independent school district No. 2609, Win-E-Mac, up to 
124.34  $125,000 may be transferred from the former Mentor school 
124.35  district health and safety reserve fund to the Win-E-Mac health 
124.36  and safety reserve fund. 
125.1      Subd. 11.  [PARKERS PRAIRIE.] Notwithstanding Minnesota 
125.2   Statutes, section 123B.79, 123B.80, or 475.61, subdivision 4, 
125.3   independent school district No. 547, Parkers Prairie, on June 
125.4   30, 2000, may permanently transfer up to $105,000 from the debt 
125.5   redemption fund to the reserved account for operating capital in 
125.6   the general fund without making a levy reduction. 
125.7      <b>EFFECTIVE DATE:</b>  This section is effective the day 
125.8   following final enactment. 
125.9      Sec. 12.  [INTERMEDIATE DISTRICTS.] 
125.10     Notwithstanding any termination date in the agreements 
125.11  between the intermediate school districts and the Minnesota 
125.12  state colleges and universities board for the use of space in 
125.13  the technical colleges or any law to the contrary, the 
125.14  agreements shall not expire or terminate. 
125.15     Sec. 13.  [REVIEW OF FEDERAL RESTRICTIONS ON SCHOOL TRUST 
125.16  FUND LANDS.] 
125.17     The attorney general and the commissioner of natural 
125.18  resources shall review the extent to which federal law and 
125.19  policy diminish the return to the school trust fund by impairing 
125.20  the use of school trust fund land.  The attorney general and the 
125.21  commissioner shall pursue efforts to make the school trust fund 
125.22  whole, including the use of litigation if necessary. 
125.23     Sec. 14.  [APPROPRIATIONS.] 
125.24     Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
125.25  LEARNING.] The sums indicated in this section are appropriated 
125.26  from the general fund to the department of children, families, 
125.27  and learning for the fiscal years designated. 
125.28     Subd. 2.  [ASSISTANCE FOR IMMIGRANT FAMILIES.] For grants 
125.29  to organizations that assist immigrants, ages 12 to 24, in 
125.30  becoming literate and acquiring vocational skills: 
125.31         $500,000     .....     2001
125.32     Subd. 3.  [MATCHING GRANTS FOR EDUCATION PROGRAMS SERVING 
125.33  HOMELESS CHILDREN.] For matching grants for education programs 
125.34  serving homeless children under Laws 1997, First Special Session 
125.35  chapter 4, article 2, section 48: 
125.36       $1,000,000     .....     2001
126.1      Subd. 4.  [COOPERATIVE SECONDARY FACILITY; PLANNING AND 
126.2   EXPENSES.] For a grant and administrative expenses to facilitate 
126.3   planning for a cooperative secondary facility under a joint 
126.4   powers agreement for school district Nos. 411, Balaton, 402, 
126.5   Ivanhoe, 404, Lake Benton, 418, Russell, 584, Ruthton, and 409, 
126.6   Tyler: 
126.7          $100,000     .....     2001
126.8      Subd. 5.  [ARTS VIA THE INTERNET.] For an arts via the 
126.9   Internet collaborative project between the Walker art center and 
126.10  the Minneapolis institute of arts: 
126.11       $1,000,000     .....     2001
126.12     Subd. 6.  [BEST PRACTICES SEMINARS.] For best practices 
126.13  graduation rule seminars to be conducted by the commissioner 
126.14  after consultation with Education Minnesota: 
126.15       $4,000,000     .....     2001
126.16  Of this amount, $500,000 is for the Minnesota children's museum 
126.17  reading program and $1,000,000 is for the Minnesota new teacher 
126.18  project. 
126.19     Subd. 7.  [MAGNET SCHOOL FACILITIES GRANTS.] (a) For magnet 
126.20  school facilities grants: 
126.21       $1,500,000     .....     2001
126.22     (b) Of this amount, $1,200,000 is for the discovery magnet 
126.23  school in independent school district No. 347, Willmar, for 
126.24  capital and operating costs of the magnet school serving 
126.25  children from birth through grade 4. 
126.26     (c) Of this amount, $300,000 is to independent school 
126.27  district No. 696, Ely, to determine the feasibility of 
126.28  establishing a joint secondary and higher education 
126.29  environmental studies magnet school. 
126.30     Sec. 15.  [REPEALER.] 
126.31     Minnesota Statutes 1999 Supplement, section 124D.1155, 
126.32  subdivision 5, is repealed. 
126.33     <b>EFFECTIVE DATE:</b>  This section is effective the day 
126.34  following final enactment. 
126.35                             ARTICLE 7 
126.36                             LIBRARIES 
127.1      Section 1.  Minnesota Statutes 1999 Supplement, section 
127.2   126C.10, subdivision 14, is amended to read: 
127.3      Subd. 14.  [USES OF TOTAL OPERATING CAPITAL REVENUE.] Total 
127.4   operating capital revenue may be used only for the following 
127.5   purposes: 
127.6      (1) to acquire land for school purposes; 
127.7      (2) to acquire or construct buildings for school purposes; 
127.8      (3) to rent or lease buildings, including the costs of 
127.9   building repair or improvement that are part of a lease 
127.10  agreement; 
127.11     (4) to improve and repair school sites and buildings, and 
127.12  equip or reequip school buildings with permanent attached 
127.13  fixtures, including library media centers; 
127.14     (5) for a surplus school building that is used 
127.15  substantially for a public nonschool purpose; 
127.16     (6) to eliminate barriers or increase access to school 
127.17  buildings by individuals with a disability; 
127.18     (7) to bring school buildings into compliance with the 
127.19  Uniform Fire Code adopted according to chapter 299F; 
127.20     (8) to remove asbestos from school buildings, encapsulate 
127.21  asbestos, or make asbestos-related repairs; 
127.22     (9) to clean up and dispose of polychlorinated biphenyls 
127.23  found in school buildings; 
127.24     (10) to clean up, remove, dispose of, and make repairs 
127.25  related to storing heating fuel or transportation fuels such as 
127.26  alcohol, gasoline, fuel oil, and special fuel, as defined in 
127.27  section 296A.01; 
127.28     (11) for energy audits for school buildings and to modify 
127.29  buildings if the audit indicates the cost of the modification 
127.30  can be recovered within ten years; 
127.31     (12) to improve buildings that are leased according to 
127.32  section 123B.51, subdivision 4; 
127.33     (13) to pay special assessments levied against school 
127.34  property but not to pay assessments for service charges; 
127.35     (14) to pay principal and interest on state loans for 
127.36  energy conservation according to section 216C.37 or loans made 
128.1   under the Northeast Minnesota Economic Protection Trust Fund Act 
128.2   according to sections 298.292 to 298.298; 
128.3      (15) to purchase or lease interactive telecommunications 
128.4   equipment; 
128.5      (16) by board resolution, to transfer money into the debt 
128.6   redemption fund to:  (i) pay the amounts needed to meet, when 
128.7   due, principal and interest payments on certain obligations 
128.8   issued according to chapter 475; or (ii) pay principal and 
128.9   interest on debt service loans or capital loans according to 
128.10  section 126C.70; 
128.11     (17) to pay operating capital-related assessments of any 
128.12  entity formed under a cooperative agreement between two or more 
128.13  districts; 
128.14     (18) to purchase or lease computers and related materials, 
128.15  copying machines, telecommunications equipment, and other 
128.16  noninstructional equipment; 
128.17     (19) to purchase or lease assistive technology or equipment 
128.18  for instructional programs; 
128.19     (20) to purchase textbooks; 
128.20     (21) to purchase new and replacement library books media 
128.21  resources or technology; 
128.22     (22) to purchase vehicles; 
128.23     (23) to purchase or lease telecommunications equipment, 
128.24  computers, and related equipment for integrated information 
128.25  management systems for: 
128.26     (i) managing and reporting learner outcome information for 
128.27  all students under a results-oriented graduation rule; 
128.28     (ii) managing student assessment, services, and achievement 
128.29  information required for students with individual education 
128.30  plans; and 
128.31     (iii) other classroom information management needs; and 
128.32     (24) to pay personnel costs directly related to the 
128.33  acquisition, operation, and maintenance of telecommunications 
128.34  systems, computers, related equipment, and network and 
128.35  applications software. 
128.36     <b>EFFECTIVE DATE:</b>  This section is effective for the 
129.1   2000-2001 and later school years. 
129.2      Sec. 2.  Laws 1997, First Special Session chapter 4, 
129.3   article 8, section 4, as amended by Laws 1998, chapter 398, 
129.4   article 7, section 1, and Laws 1999, chapter 241, article 8, 
129.5   section 1, is amended to read: 
129.6      Sec. 4.  [LIBRARY PROJECT.] 
129.7      Subdivision 1.  [ESTABLISHMENT.] Notwithstanding law to the 
129.8   contrary and subject to approvals in subdivision 2, a public 
129.9   library may operate as a library project jointly with the school 
129.10  library at Nashwauk-Keewatin high school, located in the city of 
129.11  Nashwauk.  The public library is established to serve persons 
129.12  within the boundaries of independent school district No. 319, 
129.13  except the city of Keewatin. 
129.14     Subd. 2.  [APPROVALS.] Operation of the public library is 
129.15  contingent upon the governing bodies of cities, towns, and 
129.16  unorganized townships within the geographical boundaries of 
129.17  independent school district No. 319, except for the city of 
129.18  Keewatin, entering into a joint powers agreement under Minnesota 
129.19  Statutes 1998, section 471.59, to accomplish the purpose of this 
129.20  section.  The joint powers agreement must provide for continuing 
129.21  the library project if one party or more parties to the 
129.22  agreement withdraws from or fails to enter into the agreement.  
129.23  For the purposes of this subdivision, the Itasca county board is 
129.24  designated as the governing body for the unorganized townships. 
129.25     Subd. 3.  [BOARD; APPOINTMENTS.] The joint powers agreement 
129.26  in subdivision 2 shall provide for a library board of seven 
129.27  members as follows:  two members appointed by the school board 
129.28  of independent school district No. 319, one member appointed by 
129.29  each town board located within independent school district No. 
129.30  319 boundaries that is a member of the library district, one 
129.31  member appointed by the council of the city of Nashwauk, and one 
129.32  member appointed by the Itasca county board to represent the 
129.33  unorganized towns within the school district territory. 
129.34     Subd. 4.  [BOARD TERMS; COMPENSATION.] The library board 
129.35  members shall serve for the term of the library project.  An 
129.36  appointing authority may remove for misconduct or neglect any 
130.1   member it has appointed to the board and may replace that member 
130.2   by appointment.  Board members shall receive no compensation for 
130.3   their services but may be reimbursed for actual and necessary 
130.4   travel expenses incurred in the discharge of library board 
130.5   duties and activities. 
130.6      Subd. 5.  [FUNDING.] For taxes payable in 1998, 1999, 2000, 
130.7   2001, 2002, and 2003 only, and provided that the joint powers 
130.8   agreement under subdivision 2 has been executed by September 1 
130.9   of the previous calendar year, the library board may levy a tax 
130.10  in an amount up to $25,000 annually on property located within 
130.11  the boundaries of independent school district No. 319, except 
130.12  the city of Keewatin.  The Itasca county auditor shall collect 
130.13  the tax and distribute it to the library board.  The levy shall 
130.14  be assessed against the individual members of the joint powers 
130.15  agreement.  The money may be used for library staff and for the 
130.16  purchase of library materials, including computer software.  The 
130.17  levy must also fund the amount necessary to receive bookmobile 
130.18  services from the Arrowhead regional library system.  For taxes 
130.19  payable in 1998, 1999, 2000, 2001, 2002, and 2003 only, the 
130.20  county may not levy under Minnesota Statutes, section 134.07, 
130.21  for the areas described in this section. 
130.22     Subd. 6.  [BUILDING.] The school district shall provide the 
130.23  physical space and costs associated with operating the library 
130.24  including, but not limited to, heat, light, telephone service, 
130.25  and maintenance. 
130.26     Subd. 7.  [ORGANIZATION.] Immediately after appointment, 
130.27  the library board shall organize by electing one of its number 
130.28  as president and one as secretary, and it may appoint other 
130.29  officers it finds necessary. 
130.30     Subd. 8.  [DUTIES.] The library board shall adopt bylaws 
130.31  and regulations for the library and for the conduct of its 
130.32  business as may be expedient and conformable to law.  It shall 
130.33  have exclusive control of the expenditure of all money collected 
130.34  for it.  The library board shall appoint a qualified library 
130.35  director and other staff, establish the compensation of 
130.36  employees, and remove any of them for cause.  The library board 
131.1   may contract with the school board, the regional library board, 
131.2   or the city in which the library is located to provide 
131.3   personnel, fiscal, or administrative services.  The contract 
131.4   shall state the personnel, fiscal, and administrative services 
131.5   and payments to be provided by each party. 
131.6      Subd. 9.  [CRITERIA.] The library shall meet all 
131.7   requirements in statutes and rules applicable to public 
131.8   libraries and school media centers.  A media supervisor licensed 
131.9   by the board of teaching may be the director of the library.  
131.10  Public parking, restrooms, drinking water, and other necessities 
131.11  shall be easily accessible to library patrons. 
131.12     <b>EFFECTIVE DATE:</b>  This section is effective the day 
131.13  following final enactment. 
131.14     Sec. 3.  Laws 1999, chapter 241, article 8, section 4, 
131.15  subdivision 4, is amended to read: 
131.16     Subd. 4.  [REGIONAL LIBRARY TELECOMMUNICATIONS AID.] For 
131.17  grants to regional public library systems under Minnesota 
131.18  Statutes, section 125B.20, subdivision 3: 
131.19       $1,200,000     .....     2000 
131.20       $1,200,000 $3,700,000    .....     2001 
131.21     Any balance in the first year does not cancel but is 
131.22  available in the second year. 
131.23     Notwithstanding Minnesota Statutes, section 125B.20, 
131.24  subdivision 3, this appropriation may be used for video lines in 
131.25  addition to the uses under Minnesota Statutes, section 125B.20, 
131.26  subdivision 3. 
131.27     This amount shall not be included as part of the base for 
131.28  fiscal year 2002-2003. 
131.29     Sec. 4.  Laws 1999, chapter 241, article 8, section 4, 
131.30  subdivision 5, is amended to read: 
131.31     Subd. 5.  [LIBRARY FOR THE BLIND.] For compact shelving, 
131.32  technology, and staffing for the Minnesota library for the blind 
131.33  and physically handicapped: 
131.34       $212,000     .....     2000 
131.35     This appropriation is available until June 30, 2001. 
131.36                             ARTICLE 8 
132.1            DEPARTMENT OF CHILDREN, FAMILIES, AND LEARNING 
132.2      Section 1.  Laws 1999, chapter 241, article 10, section 6, 
132.3   is amended to read: 
132.4      Sec. 6.  [APPROPRIATIONS; LOLA AND RUDY PERPICH MINNESOTA 
132.5   CENTER FOR ARTS EDUCATION.] 
132.6      The sums indicated in this section are appropriated from 
132.7   the general fund to the center for arts education for the fiscal 
132.8   years designated: 
132.9        $7,239,000     .....     2000
132.10       $7,400,000     .....     2001
132.11     Of each year's appropriation, $154,000 is to fund artist 
132.12  and arts organization participation in the education residency 
132.13  and education technology projects, $75,000 is for school support 
132.14  for the residency project, $121,000 is for further development 
132.15  of the partners:  arts and school for students (PASS) program, 
132.16  including pilots, and $220,000 $110,000 is to fund the center 
132.17  for arts education base for asset preservation and facility 
132.18  repair.  The guidelines for the education residency project and 
132.19  the pass program shall be developed and defined by the center 
132.20  for arts education in cooperation with the Minnesota arts 
132.21  board.  The Minnesota arts board shall participate in the review 
132.22  and allocation process.  The center for arts education and the 
132.23  Minnesota arts board shall cooperate to fund these projects. 
132.24     Any balance in the first year does not cancel but is 
132.25  available in the second year. 
132.26     <b>EFFECTIVE DATE:</b>  This section is effective the day 
132.27  following final enactment. 
132.28     Sec. 2.  [PURCHASING COMPUTER HARDWARE AND SOFTWARE.] 
132.29     The department of children, families, and learning and 
132.30  local school districts shall not be precluded from purchasing 
132.31  computer hardware and software from specific vendors.  The 
132.32  department of children, families, and learning or any other 
132.33  governmental agency or subdivision shall only prescribe 
132.34  technology standards that include provisions for 
132.35  interoperability of computer systems and cross-platform access 
132.36  to computer programs. 
133.1                              ARTICLE 9 
133.2           TECHNICAL, CONFORMING, AND CLARIFYING AMENDMENTS
133.3      Section 1.  Minnesota Statutes 1998, section 120A.22, 
133.4   subdivision 3, is amended to read: 
133.5      Subd. 3.  [PARENT DEFINED; RESIDENCY DETERMINED.] (a) In 
133.6   this section and sections 120A.24, and 120A.26, and 120A.41, 
133.7   "parent" means a parent, guardian, or other person having legal 
133.8   custody of a child.  
133.9      (b) In sections 125A.03 to 125A.24 and 125A.65, "parent" 
133.10  means a parent, guardian, or other person having legal custody 
133.11  of a child under age 18.  For an unmarried pupil age 18 or over, 
133.12  "parent" means the pupil unless a guardian or conservator has 
133.13  been appointed, in which case it means the guardian or 
133.14  conservator. 
133.15     (c) For purposes of sections 125A.03 to 125A.24 and 
133.16  125A.65, the school district of residence for an unmarried pupil 
133.17  age 18 or over who is a parent under paragraph (b) and who is 
133.18  placed in a center for care and treatment, shall be the school 
133.19  district in which the pupil's biological or adoptive parent or 
133.20  designated guardian resides. 
133.21     (d) For a married pupil age 18 or over, the school district 
133.22  of residence is the school district in which the married pupil 
133.23  resides. 
133.24     Sec. 2.  Minnesota Statutes 1998, section 122A.31, 
133.25  subdivision 4, is amended to read: 
133.26     Subd. 4.  [REIMBURSEMENT.] For purposes of revenue 
133.27  under sections 125A.77 and section 125A.78, the department of 
133.28  children, families, and learning must only reimburse school 
133.29  districts for the services of those interpreters/transliterators 
133.30  who satisfy the standards of competency under this section.  
133.31     Sec. 3.  Minnesota Statutes 1998, section 123B.02, is 
133.32  amended by adding a subdivision to read: 
133.33     Subd. 5a.  [TRESPASSES ON SCHOOL PROPERTY.] Trespasses on 
133.34  school property shall be governed according to section 609.605, 
133.35  subdivision 4. 
133.36     Sec. 4.  Minnesota Statutes 1998, section 123B.85, 
134.1   subdivision 1, is amended to read: 
134.2      Subdivision 1.  [APPLICATION.] The following words and 
134.3   terms in sections 121A.585, 121A.59, 123B.84 to 123B.87, and 
134.4   123B.89 to 123B.90, and 123B.91, shall have the following 
134.5   meanings ascribed to them. 
134.6      Sec. 5.  Minnesota Statutes 1999 Supplement, section 
134.7   124D.128, subdivision 2, is amended to read: 
134.8      Subd. 2.  [COMMISSIONER DESIGNATION.] An area learning 
134.9   center designated by the state must be a site.  To be 
134.10  designated, a district or center must demonstrate to the 
134.11  commissioner that it will: 
134.12     (1) provide a program of instruction that permits pupils to 
134.13  receive instruction throughout the entire year; and 
134.14     (2) maintain a record system that, for purposes of section 
134.15  124.17 126C.05, permits identification of membership 
134.16  attributable to pupils participating in the program.  The record 
134.17  system and identification must ensure that the program will not 
134.18  have the effect of increasing the total number of pupil units 
134.19  attributable to an individual pupil as a result of a learning 
134.20  year program. 
134.21     Sec. 6.  Minnesota Statutes 1998, section 124D.454, 
134.22  subdivision 2, is amended to read: 
134.23     Subd. 2.  [DEFINITIONS.] For the purposes of this 
134.24  section and section 125A.77, the definitions in this subdivision 
134.25  apply. 
134.26     (a) "Base year" for fiscal year 1996 means fiscal year 1995.
134.27  Base year for later fiscal years means the second fiscal year 
134.28  preceding the fiscal year for which aid will be paid. 
134.29     (b) "Basic revenue" has the meaning given it in section 
134.30  126C.10, subdivision 2.  For the purposes of computing basic 
134.31  revenue pursuant to this section, each child with a disability 
134.32  shall be counted as prescribed in section 126C.05, subdivision 1.
134.33     (c) "Average daily membership" has the meaning given it in 
134.34  section 126C.05. 
134.35     (d) "Program growth factor" means 1.00 for fiscal year 1998 
134.36  and later. 
135.1      (e) "Aid percentage factor" means 60 percent for fiscal 
135.2   year 1996, 70 percent for fiscal year 1997, 80 percent for 
135.3   fiscal year 1998, 90 percent for fiscal year 1999, and 100 
135.4   percent for fiscal year 2000 and later. 
135.5      Sec. 7.  Minnesota Statutes 1998, section 124D.454, 
135.6   subdivision 10, is amended to read: 
135.7      Subd. 10.  [EXCLUSION.] A district shall not receive aid 
135.8   pursuant to section 124D.453, or 125A.76, or 125A.77 for 
135.9   salaries, supplies, travel or equipment for which the district 
135.10  receives aid pursuant to this section. 
135.11     Sec. 8.  Minnesota Statutes 1999 Supplement, section 
135.12  125A.023, subdivision 3, is amended to read: 
135.13     Subd. 3.  [DEFINITIONS.] For purposes of this section and 
135.14  section 125A.027, the following terms have the meanings given 
135.15  them: 
135.16     (a) "Health plan" means: 
135.17     (1) a health plan under section 62Q.01, subdivision 3; 
135.18     (2) a county-based purchasing plan under section 256B.692; 
135.19     (3) a self-insured health plan established by a local 
135.20  government under section 471.617; or 
135.21     (4) self-insured health coverage provided by the state to 
135.22  its employees or retirees. 
135.23     (b) For purposes of this section, "health plan company" 
135.24  means an entity that issues a health plan as defined in 
135.25  paragraph (a). 
135.26     (c) "Individual interagency intervention plan" means a 
135.27  standardized written plan describing those programs or services 
135.28  and the accompanying funding sources available to eligible 
135.29  children with disabilities. 
135.30     (d) "Interagency intervention service system" means a 
135.31  system that coordinates services and programs required in state 
135.32  and federal law to meet the needs of eligible children with 
135.33  disabilities ages three to 21, including: 
135.34     (1) services provided under the following programs or 
135.35  initiatives administered by state or local agencies: 
135.36     (i) the maternal and child health program under title V of 
136.1   the Social Security Act, United States Code, title 42, sections 
136.2   701 to 709; 
136.3      (ii) the Individuals with Disabilities Education Act under 
136.4   United States Code, title 20, chapter 33, subchapter II, 
136.5   sections 1411 to 1420; 
136.6      (iii) medical assistance under the Social Security Act, 
136.7   United States Code, title 42, chapter 7, subchapter XIX, section 
136.8   1396, et seq.; 
136.9      (iv) the Developmental Disabilities Assistance and Bill of 
136.10  Rights Act, United States Code, title 42, chapter 75, subchapter 
136.11  II, sections 6021 to 6030, Part B; 
136.12     (v) the Head Start Act, United States Code, title 42, 
136.13  chapter 105, subchapter II, sections 9831 to 9852; 
136.14     (vi) rehabilitation services provided under chapter 268A; 
136.15     (vii) Juvenile Court Act services provided under sections 
136.16  260.011 to 260.91; 260B.001 to 260B.446; and 260C.001 to 
136.17  260C.451; 
136.18     (viii) the children's mental health collaboratives under 
136.19  section 245.493; 
136.20     (ix) the family service collaboratives under section 
136.21  124D.23; 
136.22     (x) the family community support plan under section 
136.23  245.4881, subdivision 4; 
136.24     (xi) the MinnesotaCare program under chapter 256L; 
136.25     (xii) the community health services grants under chapter 
136.26  145; 
136.27     (xiii) the Community Social Services Act funding under the 
136.28  Social Security Act, United States Code, title 42, sections 1397 
136.29  to 1397f; and 
136.30     (xiv) the community interagency transition interagency 
136.31  committees under section 125A.22; 
136.32     (2) services provided under a health plan in conformity 
136.33  with an individual family service plan or an individual 
136.34  education plan; and 
136.35     (3) additional appropriate services that local agencies and 
136.36  counties provide on an individual need basis upon determining 
137.1   eligibility and receiving a request from the interagency early 
137.2   intervention committee and the child's parent. 
137.3      (e) "Children with disabilities" has the meaning given in 
137.4   section 125A.02. 
137.5      (f) A "standardized written plan" means those individual 
137.6   services or programs available through the interagency 
137.7   intervention service system to an eligible child other than the 
137.8   services or programs described in the child's individual 
137.9   education plan or the child's individual family service plan. 
137.10     Sec. 9.  Minnesota Statutes 1999 Supplement, section 
137.11  125A.023, subdivision 5, is amended to read: 
137.12     Subd. 5.  [INTERVENTION DEMONSTRATION PROJECTS.] (a) The 
137.13  commissioner of children, families, and learning, based on 
137.14  recommendations from the state interagency committee, shall 
137.15  issue a request for proposals by January 1, 1999, for grants to 
137.16  the governing boards of interagency early intervention 
137.17  committees under section 125A.027 or a combination of one or 
137.18  more counties and school districts to establish five voluntary 
137.19  interagency intervention demonstration projects.  One grant 
137.20  shall be used to implement a coordinated service system for all 
137.21  eligible children with disabilities up to age five who received 
137.22  services under sections 125A.26 to 125A.48.  One grant shall be 
137.23  used to implement a coordinated service system for a population 
137.24  of minority children with disabilities from ages 12 to 21, who 
137.25  may have behavioral problems and are in need of transitional 
137.26  services.  Each project must be operational by July 1, 1999.  
137.27  The governing boards of the interagency early intervention 
137.28  committees and the counties and school districts receiving 
137.29  project grants must develop efficient ways to coordinate 
137.30  services and funding for children with disabilities ages three 
137.31  to 21, consistent with the requirements of this section and 
137.32  section 125A.027 and the guidelines developed by the state 
137.33  interagency committee under this section. 
137.34     (b) The state interagency committee shall evaluate the 
137.35  demonstration projects and provide the evaluation results to 
137.36  interagency early intervention committees. 
138.1      Sec. 10.  Minnesota Statutes 1999 Supplement, section 
138.2   125A.08, is amended to read: 
138.3      125A.08 [SCHOOL DISTRICT OBLIGATIONS.] 
138.4      (a) As defined in this section, to the extent required by 
138.5   federal law as of July 1, 2000, every district must ensure the 
138.6   following: 
138.7      (1) all students with disabilities are provided the special 
138.8   instruction and services which are appropriate to their needs.  
138.9   Where the individual education plan team has determined 
138.10  appropriate goals and objectives based on the student's needs, 
138.11  including the extent to which the student can be included in the 
138.12  least restrictive environment, and where there are essentially 
138.13  equivalent and effective instruction, related services, or 
138.14  assistive technology devices available to meet the student's 
138.15  needs, cost to the district may be among the factors considered 
138.16  by the team in choosing how to provide the appropriate services, 
138.17  instruction, or devices that are to be made part of the 
138.18  student's individual education plan.  The individual education 
138.19  plan team shall consider and may authorize services covered by 
138.20  medical assistance according to section 256B.0625, subdivision 
138.21  26.  The student's needs and the special education instruction 
138.22  and services to be provided must be agreed upon through the 
138.23  development of an individual education plan.  The plan must 
138.24  address the student's need to develop skills to live and work as 
138.25  independently as possible within the community.  By grade 9 or 
138.26  age 14, the plan must address the student's needs for transition 
138.27  from secondary services to post-secondary education and 
138.28  training, employment, community participation, recreation, and 
138.29  leisure and home living.  In developing the plan, districts must 
138.30  inform parents of the full range of transitional goals and 
138.31  related services that should be considered.  The plan must 
138.32  include a statement of the needed transition services, including 
138.33  a statement of the interagency responsibilities or linkages or 
138.34  both before secondary services are concluded; 
138.35     (2) children with a disability under age five and their 
138.36  families are provided special instruction and services 
139.1   appropriate to the child's level of functioning and needs; 
139.2      (3) children with a disability and their parents or 
139.3   guardians are guaranteed procedural safeguards and the right to 
139.4   participate in decisions involving identification, assessment 
139.5   including assistive technology assessment, and educational 
139.6   placement of children with a disability; 
139.7      (4) eligibility and needs of children with a disability are 
139.8   determined by an initial assessment or reassessment, which may 
139.9   be completed using existing data under United States Code, title 
139.10  20, section 33, et seq.; 
139.11     (5) to the maximum extent appropriate, children with a 
139.12  disability, including those in public or private institutions or 
139.13  other care facilities, are educated with children who are not 
139.14  disabled, and that special classes, separate schooling, or other 
139.15  removal of children with a disability from the regular 
139.16  educational environment occurs only when and to the extent that 
139.17  the nature or severity of the disability is such that education 
139.18  in regular classes with the use of supplementary services cannot 
139.19  be achieved satisfactorily; 
139.20     (6) in accordance with recognized professional standards, 
139.21  testing and evaluation materials, and procedures used for the 
139.22  purposes of classification and placement of children with a 
139.23  disability are selected and administered so as not to be 
139.24  racially or culturally discriminatory; and 
139.25     (7) the rights of the child are protected when the parents 
139.26  or guardians are not known or not available, or the child is a 
139.27  ward of the state. 
139.28     (b) For paraprofessionals employed to work in programs for 
139.29  students with disabilities, the school board in each district 
139.30  shall ensure that: 
139.31     (1) before or immediately upon employment, each 
139.32  paraprofessional develops sufficient knowledge and skills in 
139.33  emergency procedures, building orientation, roles and 
139.34  responsibilities, confidentiality, vulnerability, and 
139.35  reportability, among other things, to begin meeting the needs of 
139.36  the students with whom the paraprofessional works; 
140.1      (2) annual training opportunities are available to enable 
140.2   the paraprofessional to continue to further develop the 
140.3   knowledge and skills that are specific to the students with whom 
140.4   the paraprofessional works, including understanding 
140.5   disabilities, following lesson plans, and implementing follow-up 
140.6   instructional procedures and activities; and 
140.7      (3) a districtwide process obligates each paraprofessional 
140.8   to work under the ongoing direction of a licensed teacher and, 
140.9   where appropriate and possible, the supervision of a school 
140.10  nurse. 
140.11     Sec. 11.  Minnesota Statutes 1998, section 125A.76, 
140.12  subdivision 7, is amended to read: 
140.13     Subd. 7.  [REVENUE ALLOCATION FROM COOPERATIVE CENTERS AND 
140.14  INTERMEDIATES.] For the purposes of this section and section 
140.15  125A.77, a special education cooperative or an intermediate 
140.16  district must allocate its approved expenditures for special 
140.17  education programs among participating school districts. 
140.18     Sec. 12.  Minnesota Statutes 1999 Supplement, section 
140.19  125A.79, subdivision 8, is amended to read: 
140.20     Subd. 8.  [OUT-OF-STATE TUITION.] For children who are 
140.21  residents of the state, receive services under section 125A.76, 
140.22  subdivisions 1 and 2, and are placed in a care and treatment 
140.23  facility by court action in a state that does not have a 
140.24  reciprocity agreement with the commissioner under section 
140.25  125A.115 125A.155, the resident school district shall submit the 
140.26  balance of the tuition bills, minus the amount of the basic 
140.27  revenue, as defined by section 126C.10, subdivision 2, of the 
140.28  district for the child and the special education aid, and any 
140.29  other aid earned on behalf of the child. 
140.30     Sec. 13.  Minnesota Statutes 1999 Supplement, section 
140.31  125A.80, is amended to read: 
140.32     125A.80 [UNIFORM BILLING SYSTEM FOR THE EDUCATION COSTS OF 
140.33  OUT-OF-HOME PLACED STUDENTS.] 
140.34     The commissioner, in cooperation with the commissioners of 
140.35  human services and corrections and with input from appropriate 
140.36  billing system users, shall develop and implement a uniform 
141.1   billing system for school districts and other agencies, 
141.2   including private providers, who provide the educational 
141.3   services for students who are placed out of the home.  The 
141.4   uniform billing system must: 
141.5      (1) allow for the proper and timely billing to districts by 
141.6   service providers with a minimum amount of district 
141.7   administration; 
141.8      (2) allow districts to bill the state for certain types of 
141.9   special education and regular education services as provided by 
141.10  law; 
141.11     (3) provide flexibility for the types of services that are 
141.12  provided for children placed out of the home, including day 
141.13  treatment services; 
141.14     (4) allow the commissioner to track the type, cost, and 
141.15  quality of services provided for children placed out of the 
141.16  home; 
141.17     (5) conform existing special education and proposed regular 
141.18  education billing procedures; 
141.19     (6) provide a uniform reporting standard of per diem rates; 
141.20     (7) determine allowable expenses and maximum reimbursement 
141.21  rates for the state reimbursement of care and treatment services 
141.22  according to section 124D.701; and 
141.23     (8) provide a process for the district to appeal to the 
141.24  commissioner tuition bills submitted to districts and to the 
141.25  state. 
141.26     Sec. 14.  Minnesota Statutes 1999 Supplement, section 
141.27  125B.21, subdivision 3, is amended to read: 
141.28     Subd. 3.  [CRITERIA.] In addition to responsibilities of 
141.29  the council under Laws 1993, First Special Session chapter 2, as 
141.30  amended, the telecommunications council shall evaluate grant 
141.31  applications under section 124C.74 125B.20 and applications from 
141.32  district organizations using the following criteria: 
141.33     (1) evidence of cooperative arrangements with other 
141.34  post-secondary institutions, school districts, and community and 
141.35  regional libraries in the geographic region; 
141.36     (2) plans for shared classes and programs; 
142.1      (3) avoidance of network duplication; 
142.2      (4) evidence of efficiencies to be achieved in delivery of 
142.3   instruction due to use of telecommunications; 
142.4      (5) a plan for development of a list of all courses 
142.5   available in the region for delivery at a distance; 
142.6      (6) a plan for coordinating and scheduling courses; and 
142.7      (7) a plan for evaluation of costs, access, and outcomes. 
142.8      Sec. 15.  Minnesota Statutes 1999 Supplement, section 
142.9   126C.10, subdivision 24, is amended to read: 
142.10     Subd. 24.  [EQUITY REVENUE.] (a) A school district 
142.11  qualifies for equity revenue if the school district's adjusted 
142.12  marginal cost pupil unit amount of basic revenue, supplemental 
142.13  revenue, transition revenue, and referendum revenue is less than 
142.14  the 90th percentile of school districts in its equity region for 
142.15  those revenue categories and the school district's 
142.16  administrative offices are not located in a city of the first 
142.17  class on July 1, 1999. 
142.18     (b) Equity revenue for a qualifying district that receives 
142.19  referendum revenue under section 126C.17, subdivision 4, equals 
142.20  the product of (1) the district's adjusted marginal cost pupil 
142.21  units for that year; times (2) the sum of (i) $10, plus (ii) 
142.22  $30, times the school district's equity index computed under 
142.23  section 126C.10, subdivision 6 27. 
142.24     (c) Equity revenue for a qualifying district that does not 
142.25  receive referendum revenue under section 126C.17, subdivision 4, 
142.26  equals the product of the district's adjusted marginal cost 
142.27  pupil units for that year times $10. 
142.28     Sec. 16.  Minnesota Statutes 1998, section 126C.12, 
142.29  subdivision 2, is amended to read: 
142.30     Subd. 2.  [INSTRUCTOR DEFINED.] Primary instructor means a 
142.31  public employee licensed by the board of teaching whose duties 
142.32  are full-time instruction, excluding a teacher for whom 
142.33  categorical aids are received pursuant to sections section 
142.34  125A.76 and 125A.77.  Except as provided in section 122A.68, 
142.35  subdivision 6, instructor does not include supervisory and 
142.36  support personnel, except school social workers as defined in 
143.1   section 122A.15.  An instructor whose duties are less than 
143.2   full-time instruction must be included as an equivalent only for 
143.3   the number of hours of instruction in grades kindergarten 
143.4   through 6. 
143.5      Sec. 17.  Minnesota Statutes 1998, section 127A.05, 
143.6   subdivision 4, is amended to read: 
143.7      Subd. 4.  [ADMINISTRATIVE RULES.] The commissioner may 
143.8   adopt new rules and amend them or amend any existing rules only 
143.9   under specific authority and consistent with the requirements of 
143.10  chapter 14.  The commissioner may repeal any existing 
143.11  rules adopted by the commissioner.  Notwithstanding the 
143.12  provisions of section 14.05, subdivision 4, the commissioner may 
143.13  grant a variance to rules adopted by the commissioner upon 
143.14  application by a school district for purposes of implementing 
143.15  experimental programs in learning or school management.  This 
143.16  subdivision shall not prohibit the commissioner from making 
143.17  technical changes or corrections to adopted rules adopted by the 
143.18  commissioner. 
143.19     Sec. 18.  Minnesota Statutes 1998, section 127A.41, 
143.20  subdivision 8, is amended to read: 
143.21     Subd. 8.  [APPROPRIATION TRANSFERS.] If a direct 
143.22  appropriation from the general fund to the department for any 
143.23  education aid or grant authorized in this chapter and chapters 
143.24  122A, 123A, 123B, 124D, 126C, and 134, excluding appropriations 
143.25  under sections 124D.135, 124D.14, 124D.16, 124D.20, 124D.21, 
143.26  124D.22, 124D.52, 124D.53, 124D.54, 124D.55, and 124D.56, 
143.27  exceeds the amount required, the commissioner may transfer the 
143.28  excess to any education aid or grant appropriation that is 
143.29  insufficient.  However, section 126C.20 applies to a deficiency 
143.30  in the direct appropriation for general education aid.  Excess 
143.31  appropriations must be allocated proportionately among aids or 
143.32  grants that have insufficient appropriations.  The commissioner 
143.33  of finance shall make the necessary transfers among 
143.34  appropriations according to the determinations of the 
143.35  commissioner.  If the amount of the direct appropriation for the 
143.36  aid or grant plus the amount transferred according to this 
144.1   subdivision is insufficient, the commissioner shall prorate the 
144.2   available amount among eligible districts.  The state is not 
144.3   obligated for any additional amounts.  
144.4      Sec. 19.  Minnesota Statutes 1998, section 127A.41, 
144.5   subdivision 9, is amended to read: 
144.6      Subd. 9.  [APPROPRIATION TRANSFERS FOR COMMUNITY EDUCATION 
144.7   PROGRAMS.] If a direct appropriation from the general fund to 
144.8   the department of children, families, and learning for an 
144.9   education aid or grant authorized under section 
144.10  124D.135, 124D.14, 124D.16, 124D.20, 124D.21, 124D.22, 124D.52, 
144.11  124D.53, 124D.54, 124D.55, or 124D.56 exceeds the amount 
144.12  required, the commissioner of children, families, and learning 
144.13  may transfer the excess to any education aid or grant 
144.14  appropriation that is insufficiently funded under these sections.
144.15  Excess appropriations shall be allocated proportionately among 
144.16  aids or grants that have insufficient appropriations.  The 
144.17  commissioner of finance shall make the necessary transfers among 
144.18  appropriations according to the determinations of the 
144.19  commissioner of children, families, and learning.  If the amount 
144.20  of the direct appropriation for the aid or grant plus the amount 
144.21  transferred according to this subdivision is insufficient, the 
144.22  commissioner shall prorate the available amount among eligible 
144.23  districts.  The state is not obligated for any additional 
144.24  amounts. 
144.25     Sec. 20.  Minnesota Statutes 1999 Supplement, section 
144.26  181A.04, subdivision 6, is amended to read: 
144.27     Subd. 6.  A high school student under the age of 18 must 
144.28  not be permitted to work after 11:00 p.m. on an evening before a 
144.29  school day or before 5:00 a.m. on a school day, except as 
144.30  permitted by section 181A.07, subdivisions 1, 2, 3, and 4.  If a 
144.31  high school student under the age of 18 has supplied the 
144.32  employer with a note signed by the parent or guardian of the 
144.33  student, the student may be permitted to work until 11:30 p.m. 
144.34  on the evening before a school day and beginning at 4:30 a.m. on 
144.35  a school day. 
144.36     For the purpose of this subdivision, a high school student 
145.1   does not include a student enrolled in an alternative education 
145.2   program approved by the commissioner of children, families, and 
145.3   learning or an area learning center, including area learning 
145.4   centers under sections 123A.05 to 123A.08 or according to 
145.5   section 122A.164 122A.163. 
145.6      Sec. 21.  Laws 1999, chapter 241, article 1, section 69, is 
145.7   amended to read: 
145.8      Sec. 69.  [REPEALER.] 
145.9      (a) Minnesota Statutes 1998, sections 123B.89; and 123B.92, 
145.10  subdivisions 2, 4, 6, 7, 8, and 10, are repealed. 
145.11     (b) Minnesota Statutes 1998, section 120B.05, is repealed 
145.12  effective for revenue for fiscal year 2000. 
145.13     (c) Minnesota Statutes 1998, section 124D.65, subdivisions 
145.14  1, 2, and 3, are repealed effective for revenue for fiscal year 
145.15  2001. 
145.16     (d) Minnesota Statutes 1998, sections 124D.67; 126C.05, 
145.17  subdivision 4; and 126C.06, are repealed effective the day 
145.18  following final enactment. 
145.19     This appropriation is available until June 30, 2001. 
145.20     Sec. 22.  Laws 1999, chapter 241, article 4, section 27, 
145.21  subdivision 5, is amended to read: 
145.22     Subd. 5.  [ALTERNATIVE FACILITIES BONDING AID.] For 
145.23  alternative facilities bonding aid, according to Minnesota 
145.24  Statutes, section 123B.59: 
145.25       $19,058,000    .....     2000 
145.26       $19,286,000    .....     2001 
145.27     The 2000 appropriation includes $1,700,000 for 2000 1999 
145.28  and $17,358,000 for 2001 2000. 
145.29     The 2001 appropriation includes $1,928,000 for 2000 and 
145.30  $17,358,000 for 2001. 
145.31     <b>EFFECTIVE DATE:</b>  This section is effective the day 
145.32  following final enactment. 
145.33     Sec. 23.  Laws 1999, chapter 241, article 6, section 14, 
145.34  subdivision 5, is amended to read: 
145.35     Subd. 5.  [NONPUBLIC PUPIL TRANSPORTATION.] For nonpublic 
145.36  pupil transportation aid under Minnesota Statutes, section 
146.1   123B.92, subdivision 9: 
146.2        $18,586,000    .....     2000 
146.3        $20,922,000    .....     2001 
146.4      The 2000 appropriation includes $1,848,000 for 2000 1999 
146.5   and $16,738,000 for 2001 2000. 
146.6      The 2001 appropriation includes $1,860,000 for 2000 and 
146.7   $19,062,000 for 2001. 
146.8      <b>EFFECTIVE DATE:</b>  This section is effective the day 
146.9   following final enactment. 
146.10     Sec. 24.  Laws 1999, chapter 241, article 9, section 49, is 
146.11  amended to read: 
146.12     Sec. 49.  [TRANSITION.] 
146.13     Notwithstanding Minnesota Statutes, section 15.0597, the 
146.14  terms of persons who are members appointed by the governor 
146.15  before the effective date of section 8 37, shall have their term 
146.16  end on July 31 of the year following the last year of their 
146.17  appointment. 
146.18     Sec. 25.  [REVISOR INSTRUCTION.] 
146.19     In the next and subsequent editions of Minnesota Statutes, 
146.20  the revisor shall renumber section 123B.02, subdivision 12, as 
146.21  120A.22, subdivision 1a.  The revisor shall correct all 
146.22  cross-references to be consistent with the renumbering. 
146.23     Sec. 26.  [REPEALER.] 
146.24     Laws 1999, chapter 241, article 9, sections 35 and 36, are 
146.25  repealed.  Laws 1999, chapter 245, article 4, section 3, is 
146.26  repealed. 
146.27                             ARTICLE 10
146.28                          HIGHER EDUCATION
146.29                           APPROPRIATIONS 
146.30  Section 1.  [HIGHER EDUCATION APPROPRIATIONS.] 
146.31     The sums in the columns marked "APPROPRIATIONS" are 
146.32  appropriated from the general fund, or other named fund, to the 
146.33  agencies and for the purposes specified in this article.  The 
146.34  listing of an amount under the figure "2000" or "2001" in this 
146.35  article indicates that the amount is appropriated to be 
146.36  available for the fiscal year ending June 30, 2000, or June 30, 
147.1   2001, respectively.  "The first year" is fiscal year 2000.  "The 
147.2   second year" is fiscal year 2001.  "The biennium" is fiscal 
147.3   years 2000 and 2001. 
147.4                           SUMMARY BY FUND 
147.5                             2000          2001           TOTAL
147.6   General                   -0-     $   29,000,000 $   29,000,000
147.7                    SUMMARY BY AGENCY - ALL FUNDS
147.8                             2000          2001           TOTAL
147.9   Board of Trustees of the Minnesota
147.10  State Colleges and Universities
147.11                            -0-         13,180,000     13,180,000
147.12  Board of Regents of the University
147.13  of Minnesota
147.14                            -0-         15,820,000     15,820,000
147.15                                            APPROPRIATIONS 
147.16                                         Available for the Year 
147.17                                             Ending June 30 
147.18                                            2000         2001 
147.19  Sec. 2.  BOARD OF TRUSTEES OF THE
147.20  MINNESOTA STATE COLLEGES AND UNIVERSITIES
147.21  Subdivision 1.  Total
147.22  Appropriation                                       $13,180,000
147.23  The amounts that may be spent from this 
147.24  appropriation for each purpose are 
147.25  specified in the following subdivisions.
147.26  Subd. 2.  Deficiency                                
147.27  Appropriations                                                 
147.28         -0-         11,600,000
147.29  This is a one-time appropriation under 
147.30  Minnesota Statutes, section 135A.031, 
147.31  subdivision 4, to fund unanticipated 
147.32  enrollment increases.  This 
147.33  appropriation is added to the 
147.34  appropriation in Laws 1999, chapter 
147.35  214, article 1, section 3, subdivision 
147.36  1. 
147.37  Subd. 3.  Farm Business     
147.38  Management                                                     
147.39         -0-            250,000
147.40  This appropriation is to provide 
147.41  educational and management services to 
147.42  a greater number of farmers facing 
147.43  financial hardship in the farm wrap and 
147.44  farm help network service areas. 
147.45  Subd. 4.  Urban Teacher     
147.46  Preparation                                                    
147.47         -0-          1,250,000
148.1   This is a one-time appropriation for 
148.2   the development and implementation of 
148.3   the secondary and early childhood 
148.4   education components of the program 
148.5   established by this subdivision. 
148.6   (a) The board shall offer a program of 
148.7   teacher preparation leading to 
148.8   licensure, involving Metropolitan State 
148.9   University, Inver Hills Community 
148.10  College, and Minneapolis Community and 
148.11  Technical College.  The institutions 
148.12  involved shall enter into an agreement 
148.13  whereby Inver Hills Community College 
148.14  and Minneapolis Community and Technical 
148.15  College shall provide the first two 
148.16  years of the program, and Metropolitan 
148.17  State University shall provide the 
148.18  final two years of the program.  In 
148.19  fall semester 2000, Minneapolis 
148.20  Community and Technical College and 
148.21  Inver Hills Community College shall 
148.22  offer a preeducation program.  After 
148.23  development of the program in fiscal 
148.24  year 2001, Metropolitan State 
148.25  University shall begin its licensure 
148.26  program in fall semester 2001.  The 
148.27  program shall focus on preparing 
148.28  teachers to meet the specific needs of 
148.29  urban and inner-ring suburban schools 
148.30  and shall emphasize significant direct 
148.31  classroom teaching experience and 
148.32  mentoring throughout each student's 
148.33  preparation.  The program may also 
148.34  focus on the professional development 
148.35  of pretenure teachers.  Metropolitan 
148.36  State University, Inver Hills Community 
148.37  College, and Minneapolis Community and 
148.38  Technical College are encouraged to 
148.39  enter into partnerships with urban and 
148.40  inner-ring suburban schools to provide 
148.41  for significant involvement of 
148.42  elementary and secondary teachers in 
148.43  the mentoring of students enrolled in 
148.44  the program.  
148.45  (b) The legislature expects the program 
148.46  to enroll at least 50 percent students 
148.47  of color. 
148.48  (c) By February 15, 2002, and annually 
148.49  thereafter, the board of trustees shall 
148.50  provide a progress report to the chairs 
148.51  of the higher education finance 
148.52  divisions of the legislature regarding 
148.53  the development of the teacher 
148.54  preparation program.  The annual report 
148.55  shall include, to the extent 
148.56  practicable at the time of preparation, 
148.57  information comparing program outcomes 
148.58  with the target expectations set forth 
148.59  in paragraph (b).  The report shall 
148.60  include feedback from enrolled students 
148.61  concerning how the program meets their 
148.62  needs, as well as from cooperating 
148.63  elementary and secondary schools on how 
148.64  the students are performing on site. 
148.65  Subd. 5.  Cook County Higher
148.66  Education Project                                              
149.1          -0-             80,000
149.2   This appropriation is for the Cook 
149.3   county higher education project for 
149.4   delivery of educational services 
149.5   electronically.  The board shall submit 
149.6   a report in the biennial budget 
149.7   document on uses of the appropriation.  
149.8   The report shall include information 
149.9   regarding the number of students 
149.10  served, credit hours delivered, other 
149.11  services provided, strategic direction 
149.12  of the project, expected future funding 
149.13  sources, and collaborations with other 
149.14  organizations. 
149.15  Sec. 3.  BOARD OF REGENTS OF THE 
149.16  UNIVERSITY OF MINNESOTA 
149.17  Subdivision 1.  Total
149.18  Appropriation                                         15,820,000
149.19  The amounts that may be spent from this 
149.20  appropriation for each purpose are 
149.21  specified in the following subdivisions.
149.22  Subd. 2.  Operations and
149.23  Maintenance 
149.24  (a) North Star Research Coalition                               
149.25         -0-         15,000,000
149.26  This is a one-time appropriation for 
149.27  the university's contribution to the 
149.28  North Star Research Coalition.  The 
149.29  commissioner of finance may not release 
149.30  this appropriation until the university 
149.31  presents evidence that a nonprofit 
149.32  tax-exempt corporation, to be known as 
149.33  the North Star Research Coalition, in a 
149.34  form complying with this paragraph, has 
149.35  been established.  The commissioner 
149.36  shall release the money appropriated, 
149.37  as a one-for-one match for money from 
149.38  nonstate sources, on a quarterly basis, 
149.39  until the appropriation is expended.  
149.40  Notwithstanding any law to the 
149.41  contrary, this appropriation shall not 
149.42  cancel, but is available until expended.
149.43  The board of regents is requested to 
149.44  establish a partnership with private 
149.45  industry to leverage the university's 
149.46  research capabilities into economic 
149.47  development results through the 
149.48  creation of a nonprofit tax-exempt 
149.49  corporation to be known as the North 
149.50  Star Research Coalition.  The money for 
149.51  projects funded under this initiative 
149.52  must be used to fund research projects 
149.53  consistent with priorities established 
149.54  by the partnership, purchase equipment 
149.55  for research laboratories, and 
149.56  establish endowed faculty chairs in the 
149.57  area of technology-based research. 
149.58  The coalition may fund research 
149.59  projects that establish collaborative 
149.60  research efforts among the University 
149.61  of Minnesota and the private sector, 
150.1   the Mayo Clinic, nonprofit research 
150.2   institutes, or the Minnesota state 
150.3   colleges and universities. 
150.4   The duties of the coalition include: 
150.5   (1) identifying technology-based 
150.6   research projects that have the 
150.7   potential to create significant 
150.8   opportunities for economic development 
150.9   and industrial growth in the state; 
150.10  (2) strengthening the university's 
150.11  research capabilities in subject areas 
150.12  associated with emerging 
150.13  technology-based industries; 
150.14  (3) expanding the research capacity of 
150.15  the university through the creation of 
150.16  opportunities for the university to 
150.17  assist private enterprises in emerging 
150.18  technology-based industries; 
150.19  (4) promoting the transfer of 
150.20  technology from the research laboratory 
150.21  to commercial application by 
150.22  businesses; 
150.23  (5) developing application procedures 
150.24  for, reviewing, and prioritizing 
150.25  research projects seeking funding under 
150.26  this initiative; and 
150.27  (6) creating opportunities for 
150.28  collaborative research opportunities 
150.29  among the University of Minnesota, the 
150.30  Mayo Clinic, nonprofit research 
150.31  institutes, and the Minnesota state 
150.32  colleges and universities. 
150.33  The board shall have the authority to 
150.34  allocate state and nonstate money to 
150.35  projects. 
150.36  The incorporating documents of the 
150.37  North Star Research Coalition must 
150.38  provide for representation of 
150.39  university and private sector interests 
150.40  on the coalition's board of directors 
150.41  and provide that changes in the 
150.42  governance structure require a super 
150.43  majority of the board.  The board 
150.44  consists of 12 members.  Six shall be 
150.45  appointed by the board of regents of 
150.46  the University of Minnesota and need 
150.47  not be affiliated with the university.  
150.48  The initial six members representing 
150.49  the private sector shall be appointed 
150.50  by the governor.  Subsequent members 
150.51  representing the private sector shall 
150.52  be appointed by the incumbent members.  
150.53  Private sector members of the board 
150.54  must have expertise in the technology 
150.55  research needs of the state and not be 
150.56  affiliated with the university. 
150.57  (b) Duluth; Child Care                                         
150.58         -0-            220,000
150.59  To provide for child care in the newly 
151.1   renovated Kirby Center. 
151.2   Subd. 3.  Special           
151.3   Appropriation                                                  
151.4   Agricultural Rapid Response Fund
151.5          -0-            600,000
151.6   This appropriation is for the rapid 
151.7   agricultural response fund.  The 
151.8   university shall report on the uses of 
151.9   this appropriation in the biennial 
151.10  budget document.  This appropriation is 
151.11  added to the appropriation in Laws 
151.12  1999, chapter 214, article 1, section 
151.13  4, subdivision 5, paragraph (a). 
151.14     Sec. 4.  Minnesota Statutes 1998, section 136A.125, is 
151.15  amended by adding a subdivision to read: 
151.16     Subd. 4c.  [SURPLUS FUNDS.] Any projected surplus 
151.17  appropriation in the child care grant program in the first year 
151.18  of a biennium shall be used to augment the maximum award in 
151.19  subdivision 4 in the second year of the biennium. 
151.20     Sec. 5.  Laws 1999, chapter 214, article 1, section 4, 
151.21  subdivision 2, is amended to read: 
151.22  Subd. 2.  Operations and
151.23  Maintenance                          513,279,000    533,870,000
151.24  Estimated Expenditures 
151.25  and Appropriations 
151.26  The legislature estimates that 
151.27  instructional expenditures will be 
151.28  $461,521,000 in the first year and 
151.29  $484,679,000 in the second year. 
151.30  The legislature estimates that 
151.31  noninstructional expenditures will be 
151.32  $202,367,000 in the first year and 
151.33  $201,717,000 in the second year.  
151.34  By January 30, 2000, the University 
151.35  shall submit to the governor and the 
151.36  legislature a master academic plan for 
151.37  the Rochester region that clearly 
151.38  defines the academic needs of the 
151.39  region, short and long-term plans to 
151.40  address those needs including the 
151.41  designation of responsibility among the 
151.42  partner institutions, short and 
151.43  long-term demographic and enrollment 
151.44  projections, physical plant capacity 
151.45  and needs, and a delineation of 
151.46  missions among the partner institutions 
151.47  to avoid competition and duplication. 
151.48  Notwithstanding Minnesota Statutes 
151.49  1998, section 137.022, subdivision 4, 
151.50  in fiscal year 2001 the first $200,000 
151.51  of permanent university fund income 
151.52  from royalties for mining under state 
151.53  mineral leases designated for the 
152.1   natural resources research institute 
152.2   shall be allocated by the board of 
152.3   regents to the department of landscape 
152.4   architecture to develop a long-range 
152.5   plan for the reclamation of taconite 
152.6   mining lands.  The board shall allocate 
152.7   the money only if an equal or greater 
152.8   amount of matching money from nonstate 
152.9   sources has been pledged to support the 
152.10  project by June 30, 2000 in increments 
152.11  of $50,000 as each $50,000 is matched 
152.12  by nonstate sources, provided that no 
152.13  money may be allocated after June 30, 
152.14  2001. 
152.15  The University of Minnesota academic 
152.16  health center, after consultation with 
152.17  the health care community and medical 
152.18  education and research costs advisory 
152.19  committee, shall report by January 15, 
152.20  2000, to the higher education finance 
152.21  committees on the strategic direction 
152.22  of its health professional programs.  
152.23  The plans shall include a programmatic 
152.24  and financial model for health 
152.25  professional education that will meet 
152.26  the state's future workforce needs, 
152.27  maintain the integrity of the education 
152.28  process, provide an appropriate level 
152.29  of ongoing financial support, and 
152.30  provide a framework for the health 
152.31  community and academic health center to 
152.32  work together in meeting the health 
152.33  needs of the state.  The academic 
152.34  health center is requested to provide 
152.35  the report also to the commissioner of 
152.36  health and the legislative commission 
152.37  on health care access. 
152.38     Sec. 6.  [REPEALER.] 
152.39     Minnesota Rules, parts 4830.9005, 4830.9010, 4830.9015, 
152.40  4830.9020, and 4830.9030, are repealed. 
152.41                             ARTICLE 11 
152.42                EARLY CHILDHOOD AND FAMILY EDUCATION 
152.43     Section 1.  Minnesota Statutes 1999 Supplement, section 
152.44  119B.011, subdivision 12, is amended to read: 
152.45     Subd. 12.  [EMPLOYMENT PLAN.] "Employment plan" means 
152.46  employment of recipients financially eligible for child care 
152.47  assistance, or other work activities defined under section 
152.48  256J.49, approved in an employability development, job search 
152.49  support plan, or employment plan that is developed by the county 
152.50  agency, if it is acting as an employment and training service 
152.51  provider, or by an employment and training service provider 
152.52  certified by the commissioner of economic security or an 
152.53  individual designated by the county to provide employment and 
153.1   training services.  The plans and designation of a service 
153.2   provider must meet the requirements of this chapter and chapter 
153.3   256J or chapter 256K, Minnesota Rules, parts 3400.0010 to 
153.4   3400.0230, and other programs that provide federal reimbursement 
153.5   for child care services. 
153.6      Sec. 2.  Minnesota Statutes 1999 Supplement, section 
153.7   119B.011, subdivision 15, is amended to read: 
153.8      Subd. 15.  [INCOME.] "Income" means earned or unearned 
153.9   income received by all family members, including public 
153.10  assistance cash benefits and at-home infant care subsidy 
153.11  payments, unless specifically excluded.  The following are 
153.12  excluded from income:  funds used to pay for health insurance 
153.13  premiums for family members, Supplemental Security Income, 
153.14  scholarships, work-study income, and grants that cover costs or 
153.15  reimbursement for tuition, fees, books, and educational 
153.16  supplies; student loans for tuition, fees, books, supplies, and 
153.17  living expenses; state and federal earned income tax credits; 
153.18  in-kind income such as food stamps, energy assistance, foster 
153.19  care assistance, medical assistance, child care assistance, and 
153.20  housing subsidies; earned income of full full-time or part-time 
153.21  students up to the age of 19, who have not earned a high school 
153.22  diploma or GED high school equivalency diploma including 
153.23  earnings from summer employment; grant awards under the family 
153.24  subsidy program; nonrecurring lump sum income only to the extent 
153.25  that it is earmarked and used for the purpose for which it is 
153.26  paid; and any income assigned to the public authority according 
153.27  to section 256.74 or 256.741. 
153.28     Sec. 3.  Minnesota Statutes 1999 Supplement, section 
153.29  119B.011, subdivision 20, is amended to read: 
153.30     Subd. 20.  [TRANSITION YEAR FAMILIES.] "Transition year 
153.31  families" means families who have received MFIP assistance, or 
153.32  who were eligible to receive MFIP assistance after choosing to 
153.33  discontinue receipt of the cash portion of MFIP assistance under 
153.34  section 256J.31, subdivision 12, for at least three of the last 
153.35  six months before losing eligibility for MFIP due to increased 
153.36  income from employment or child or spousal support or families 
154.1   participating in work first under chapter 256K who meet the 
154.2   requirements of section 256K.07.  Transition year child care may 
154.3   be used to support employment or job search.  Transition year 
154.4   child care is not available to families who have been 
154.5   disqualified from MFIP due to fraud. 
154.6      Sec. 4.  Minnesota Statutes 1999 Supplement, section 
154.7   119B.03, subdivision 4, is amended to read: 
154.8      Subd. 4.  [FUNDING PRIORITY.] (a) First priority for child 
154.9   care assistance under the basic sliding fee program must be 
154.10  given to eligible non-MFIP families who do not have a high 
154.11  school or general equivalency diploma or who need remedial and 
154.12  basic skill courses in order to pursue employment or to pursue 
154.13  education leading to employment and who need child care 
154.14  assistance to participate in the education program.  Within this 
154.15  priority, the following subpriorities must be used: 
154.16     (1) child care needs of minor parents; 
154.17     (2) child care needs of parents under 21 years of age; and 
154.18     (3) child care needs of other parents within the priority 
154.19  group described in this paragraph. 
154.20     (b) Second priority must be given to parents who have 
154.21  completed their MFIP or work first transition year. 
154.22     (c) Third priority must be given to families who are 
154.23  eligible for portable basic sliding fee assistance through the 
154.24  portability pool under subdivision 9. 
154.25     Sec. 5.  Minnesota Statutes 1998, section 119B.03, is 
154.26  amended by adding a subdivision to read: 
154.27     Subd. 6a.  [ALLOCATION DUE TO INCREASED FUNDING.] When 
154.28  funding increases are implemented within a calendar year, every 
154.29  county must receive an allocation at least equal and 
154.30  proportionate to its original allocation for the same time 
154.31  period.  The remainder of the allocation must be recalculated to 
154.32  reflect the funding increase, according to formulas identified 
154.33  in subdivision 6. 
154.34     Sec. 6.  Minnesota Statutes 1999 Supplement, section 
154.35  119B.05, subdivision 1, is amended to read: 
154.36     Subdivision 1.  [ELIGIBLE PARTICIPANTS.] Families eligible 
155.1   for child care assistance under the MFIP child care program are: 
155.2      (1) MFIP participants who are employed or in job search and 
155.3   meet the requirements of section 119B.10; 
155.4      (2) persons who are members of transition year families 
155.5   under section 119B.011, subdivision 20; 
155.6      (3) families who are participating in employment 
155.7   orientation or job search, or other employment or training 
155.8   activities that are included in an approved employability 
155.9   development plan under chapter 256K; 
155.10     (4) MFIP families who are participating in work activities 
155.11  defined under section 256J.49 as required in their job search 
155.12  support or employment plan, or in appeals, hearings, 
155.13  assessments, or orientations according to chapter 256J.  Child 
155.14  care assistance to support work activities as described in 
155.15  section 256J.49 must be available according to sections 
155.16  119B.011, subdivision 11, 124D.13, 256E.08, and 611A.32 and 
155.17  titles IVA, IVB, IVE, and XX of the Social Security Act; and 
155.18     (5) families who are participating in programs as required 
155.19  in tribal contracts under section 119B.02, subdivision 2, or 
155.20  256.01, subdivision 2. 
155.21     Sec. 7.  Minnesota Statutes 1998, section 124D.16, 
155.22  subdivision 1, is amended to read: 
155.23     Subdivision 1.  [PROGRAM REVIEW AND APPROVAL.] By February 
155.24  15, 1992, for the 1991-1992 school year or by May 1 preceding 
155.25  subsequent school years, a district must submit to the 
155.26  commissioners of children, families, and learning, and health A 
155.27  school district shall biennially by May 1 submit to the 
155.28  commissioners of children, families, and learning and health the 
155.29  program plan required under this subdivision.  As determined by 
155.30  the commissioners, one-half of the districts shall first submit 
155.31  the plan by May 1 of the 2000-2001 school year and one-half of 
155.32  the districts shall first submit the plan by May 1 of the 
155.33  2001-2002 school year.  The program plan must include: 
155.34     (1) a description of the services to be provided; 
155.35     (2) a plan to ensure children at greatest risk receive 
155.36  appropriate services; 
156.1      (3) a description of procedures and methods to be used to 
156.2   coordinate public and private resources to maximize use of 
156.3   existing community resources, including school districts, health 
156.4   care facilities, government agencies, neighborhood 
156.5   organizations, and other resources knowledgeable in early 
156.6   childhood development; 
156.7      (4) comments about the district's proposed program by the 
156.8   advisory council required by section 124D.15, subdivision 7; and 
156.9      (5) agreements with all participating service providers.  
156.10     Each commissioner may review and comment on the program, 
156.11  and make recommendations to the commissioner of children, 
156.12  families, and learning, within 30 days of receiving the plan. 
156.13     Sec. 8.  Minnesota Statutes 1999 Supplement, section 
156.14  124D.221, subdivision 2, is amended to read: 
156.15     Subd. 2.  [PRIORITY NEIGHBORHOODS.] For grants in 
156.16  Minneapolis and St. Paul, the commissioner must give priority to 
156.17  neighborhoods in this subdivision.  In Minneapolis, priority 
156.18  neighborhoods are Near North, Hawthorne, Sumner-Glenwood, 
156.19  Harrison, Jordan, Powderhorn, Central, Whittier, Cleveland, 
156.20  McKinley, Waite Park, Sheridan, Holland, Lyndale, Folwell, and 
156.21  Phillips.  In St. Paul, priority neighborhoods are 
156.22  Summit-University, Thomas-Dale, North End, Payne-Phalen, Daytons 
156.23  Bluff, and the West Side.  
156.24     Sec. 9.  [124D.515] [ADULT BASIC EDUCATION AID 
156.25  DEFINITIONS.] 
156.26     Subdivision 1.  [APPLICABILITY.] For purposes of this 
156.27  chapter, the following terms have the meanings given them. 
156.28     Subd. 2.  [ADULT BASIC EDUCATION CONSORTIUM.] "Adult basic 
156.29  education consortium" means a voluntary association of school 
156.30  districts, public agencies, or nonprofit organizations that work 
156.31  together to provide coordinated adult basic education services 
156.32  in a designated geographic area, and that act as a fiscal entity 
156.33  providing adult basic education services. 
156.34     Subd. 3.  [CONTACT HOURS.] (a) "Contact hours" means the 
156.35  number of hours during which a student was engaged in learning 
156.36  activities provided by an approved adult education program.  
157.1      (b) Contact hours for an organization funded in fiscal year 
157.2   2000, but not eligible for basic population aid in fiscal year 
157.3   2001, is computed by multiplying the organization's contact 
157.4   hours by 1.08. 
157.5      (c) Contact hours excludes homework. 
157.6      Subd. 4.  [FIRST PRIOR PROGRAM YEAR.] "First prior program 
157.7   year" means the period from May 1 of the second prior fiscal 
157.8   year through April 30 of the first prior fiscal year. 
157.9      Subd. 5.  [UNREIMBURSED EXPENSES.] "Unreimbursed expenses" 
157.10  means allowable adult basic education expenses of a program that 
157.11  are not covered by payments from federal or private for profit 
157.12  sources. 
157.13     Sec. 10.  Minnesota Statutes 1998, section 124D.52, 
157.14  subdivision 1, is amended to read: 
157.15     Subdivision 1.  [PROGRAM REQUIREMENTS.] An adult basic 
157.16  education program is a day or evening program offered by a 
157.17  district that is for people over 16 years of age who do not 
157.18  attend an elementary or secondary school.  The program offers 
157.19  academic instruction necessary to earn a high school diploma or 
157.20  equivalency certificate.  Tuition and fees may not be charged to 
157.21  a learner for instruction paid under this section, except for a 
157.22  security deposit to assure return of materials, supplies, and 
157.23  equipment. 
157.24     Each approved adult basic education program must develop a 
157.25  memorandum of understanding with the local workforce development 
157.26  centers located in the approved program's service delivery 
157.27  area.  The memorandum of understanding must describe how the 
157.28  adult basic education program and the workforce development 
157.29  centers will cooperate and coordinate services to provide 
157.30  unduplicated, efficient, and effective services to clients.  
157.31     Adult basic education aid must be spent for adult basic 
157.32  education purposes, and to meet the adult basic education 
157.33  criteria, as specified in sections 124D.515 to 124D.531. 
157.34     Sec. 11.  Minnesota Statutes 1998, section 124D.52, 
157.35  subdivision 2, is amended to read: 
157.36     Subd. 2.  [PROGRAM APPROVAL.] (a) To receive aid under this 
158.1   section, a district, a consortium of districts, or a private 
158.2   nonprofit organization must submit an application by June 1 
158.3   describing the program, on a form provided by the department.  
158.4   The program must be approved by the commissioner according to 
158.5   the following criteria:  
158.6      (1) how the needs of different levels of learning will be 
158.7   met; 
158.8      (2) for continuing programs, an evaluation of results; 
158.9      (3) anticipated number and education level of participants; 
158.10     (4) coordination with other resources and services; 
158.11     (5) participation in a consortium, if any, and money 
158.12  available from other participants; 
158.13     (6) management and program design; 
158.14     (7) volunteer training and use of volunteers; 
158.15     (8) staff development services; 
158.16     (9) program sites and schedules; and 
158.17     (10) program expenditures that qualify for aid; 
158.18     (11) program ability to provide data related to learner 
158.19  outcomes as required by law; and 
158.20     (12) a copy of the memorandum of understanding described in 
158.21  subdivision 1 submitted to the commissioner.  
158.22     (b) The commissioner may grant adult basic education funds 
158.23  to a private, nonprofit organization to provide services that 
158.24  are not offered by a district or that are supplemental to a 
158.25  district's program.  The program provided under this provision 
158.26  must be approved and funded according to the same criteria used 
158.27  for district programs. 
158.28     (c) Adult basic education programs may be approved under 
158.29  this subdivision for up to five years.  Five-year program 
158.30  approval must be granted to an applicant who has demonstrated 
158.31  the capacity to: 
158.32     (1) offer comprehensive learning opportunities and support 
158.33  service choices appropriate for and accessible to adults at all 
158.34  basic skill need levels; 
158.35     (2) provide a participatory and experiential learning 
158.36  approach based on the strengths, interests, and needs of each 
159.1   adult, that enables adults with basic skill needs to: 
159.2      (i) identify, plan for, and evaluate their own progress 
159.3   toward achieving their defined educational and occupational 
159.4   goals; 
159.5      (ii) master the basic academic reading, writing, and 
159.6   computational skills, as well as the problem-solving, decision 
159.7   making, interpersonal effectiveness, and other life and learning 
159.8   skills they need to function effectively in a changing society; 
159.9      (iii) locate and be able to use the health, governmental, 
159.10  and social services and resources they need to improve their own 
159.11  and their families' lives; and 
159.12     (iv) continue their education, if they desire, to at least 
159.13  the level of secondary school completion, with the ability to 
159.14  secure and benefit from continuing education that will enable 
159.15  them to become more employable, productive, and responsible 
159.16  citizens; 
159.17     (3) plan, coordinate, and develop cooperative agreements 
159.18  with community resources to address the needs that the adults 
159.19  have for support services, such as transportation, flexible 
159.20  course scheduling, convenient class locations, and child care; 
159.21     (4) collaborate with business, industry, labor unions, and 
159.22  employment-training agencies, as well as with family and 
159.23  occupational education providers, to arrange for resources and 
159.24  services through which adults can attain economic 
159.25  self-sufficiency; 
159.26     (5) provide sensitive and well trained adult education 
159.27  personnel who participate in local, regional, and statewide 
159.28  adult basic education staff development events to master 
159.29  effective adult learning and teaching techniques; 
159.30     (6) participate in regional adult basic education peer 
159.31  program reviews and evaluations; and 
159.32     (7) submit accurate and timely performance and fiscal 
159.33  reports; 
159.34     (8) submit accurate and timely reports related to program 
159.35  outcomes and learner follow-up information; and 
159.36     (9) spend adult basic education aid on adult basic 
160.1   education purposes only, which are specified in sections 
160.2   124D.515 to 124D.531.  
160.3      (c) The commissioner shall require each district to provide 
160.4   notification by February 1, 2001, of its intent to apply for 
160.5   funds under this section as a single district or as part of an 
160.6   identified consortium of districts.  A district receiving funds 
160.7   under this section must notify the commissioner by February 1 of 
160.8   its intent to change its application status for applications due 
160.9   the following June 1. 
160.10     Sec. 12.  Minnesota Statutes 1998, section 124D.52, 
160.11  subdivision 3, is amended to read: 
160.12     Subd. 3.  [ACCOUNTS; REVENUE; AID.] Each district, group of 
160.13  districts, or private nonprofit organization providing adult 
160.14  basic education programs must establish and maintain accounts 
160.15  separate from all other district accounts for the receipt and 
160.16  disbursement of all funds related to these programs.  All 
160.17  revenue received pursuant to this section must be utilized 
160.18  solely for the purposes of adult basic education programs.  
160.19  Federal and state aid plus levy must not equal more than 100 
160.20  percent of the actual cost unreimbursed expenses of providing 
160.21  these programs, excluding in-kind costs.  
160.22     Sec. 13.  Minnesota Statutes 1998, section 124D.52, is 
160.23  amended by adding a subdivision to read: 
160.24     Subd. 6.  [COOPERATIVE ENGLISH AS A SECOND LANGUAGE AND 
160.25  ADULT BASIC EDUCATION PROGRAMS.] (a) A school district, or adult 
160.26  basic education consortium that receives revenue under section 
160.27  124D.531, may deliver English as a second language, citizenship, 
160.28  or other adult education programming in collaboration with 
160.29  community-based and nonprofit organizations located within its 
160.30  district or region, and with correctional institutions.  The 
160.31  organization or correctional institution must have the 
160.32  demonstrated capacity to offer education programs for adults.  
160.33  Community-based or nonprofit organizations must meet the 
160.34  criteria in paragraph (b), or have prior experience.  A 
160.35  community-based or nonprofit organization or a correctional 
160.36  institution may be reimbursed for unreimbursed expenses as 
161.1   defined in section 124D.515, subdivision 5, for the 
161.2   administration of English as a second language or adult basic 
161.3   education programs, not to exceed eight percent of the total 
161.4   funds provided by a school district or adult basic education 
161.5   consortium.  The administrative reimbursement for a school 
161.6   district or adult basic education consortium that delivers 
161.7   services cooperatively with a community-based or nonprofit 
161.8   organization or correctional institution is limited to five 
161.9   percent of the program aid, not to exceed the unreimbursed 
161.10  expenses of administering programs delivered by community-based 
161.11  or nonprofit organizations or correctional institutions.  
161.12     (b) A community-based organization or nonprofit 
161.13  organization that delivers education services under this section 
161.14  must demonstrate that it has met the following criteria: 
161.15     (1) be legally established as a nonprofit organization; 
161.16     (2) have an established system for fiscal accounting and 
161.17  reporting that is consistent with the department of children, 
161.18  families, and learning's adult basic education completion report 
161.19  and reporting requirements under section 124D.531; 
161.20     (3) require all instructional staff to complete a training 
161.21  course in teaching adult learners; and 
161.22     (4) develop a learning plan for each student that 
161.23  identifies defined educational and occupational goals with 
161.24  measures to evaluate progress.  
161.25     Sec. 14.  [124D.521] [CONSORTIUM REQUIREMENTS.] 
161.26     Each consortium, as defined under section 124D.515, 
161.27  subdivision 1, must meet at least twice per year to develop and 
161.28  amend as necessary an annual consortium agreement signed by all 
161.29  members and filed with the department of children, families, and 
161.30  learning that at a minimum includes:  
161.31     (1) a description of the members and fiscal agent of the 
161.32  consortium; 
161.33     (2) a description of the contributions of each member of 
161.34  the consortium and the process for distributing state aid among 
161.35  the members; and 
161.36     (3) the state adult basic education assurances from the 
162.1   annual adult basic education program application. 
162.2      As a condition of membership in a consortium, each member 
162.3   must make a documented contribution toward the cost of adult 
162.4   basic education programming, either as a direct financial 
162.5   contribution, or an in-kind contribution. 
162.6      Each consortium's designated fiscal agent must: 
162.7      (1) collect data from consortium members; 
162.8      (2) submit required performance reports and fiscal reports 
162.9   to the state; 
162.10     (3) receive state adult basic education aid under section 
162.11  124D.531 for adult basic education programming delivered by the 
162.12  consortium; and 
162.13     (4) distribute state adult basic education aid to members 
162.14  of the consortium according to the consortium agreement under 
162.15  sources. 
162.16     Sec. 15.  [124D.522] [ADULT BASIC EDUCATION POLICY REVIEW 
162.17  TASK FORCE.] 
162.18     Subdivision 1.  [ESTABLISHMENT.] A nine-member adult basic 
162.19  education policy review task force is established to advise the 
162.20  commissioner on program and funding policies for adult basic 
162.21  education programs that receive aid under section 124D.531.  The 
162.22  commissioner must appoint task force members to two-year terms, 
162.23  by June 30, 2000.  Members do not receive per diem, but may be 
162.24  reimbursed for expenses as specified in section 15.059, 
162.25  subdivision 3.  At a minimum, the task force must hold two 
162.26  meetings.  All other matters of the review task force's 
162.27  operation, except expiration of the task force under subdivision 
162.28  4, are governed by section 15.069. 
162.29     Subd. 2.  [MEMBERSHIP.] Members are appointed by the 
162.30  commissioner.  The commissioner must appoint two members of the 
162.31  task force from rural programs, two members from suburban 
162.32  programs, two members from urban programs, one member from a 
162.33  nonprofit group that has knowledge and expertise in the area of 
162.34  adult literacy, one member who is currently an adult basic 
162.35  education learner or has participated in an adult basic 
162.36  education program, and one member who is an adult basic 
163.1   education instructor.  Members of the legislature and 
163.2   representatives of other concerned groups may be included as 
163.3   unofficial members of the task force.  
163.4      Subd. 3.  [DUTIES.] The policy review task force must: 
163.5      (1) recommend to the legislature a mission statement for a 
163.6   statewide system of adult basic education programs that includes 
163.7   educational outcomes, services, eligible learners, requirements 
163.8   for teacher licensing, expectations for student advancement and 
163.9   progress, and recognition of the importance of distance learning 
163.10  and other technology-based instruction methods; 
163.11     (2) advise the commissioner on adult basic education 
163.12  standard policies and procedures; 
163.13     (3) advise the commissioner on the adult basic education 
163.14  curriculum and course offerings, including policies to offer 
163.15  computer literacy and other skill-based education through adult 
163.16  basic education programs; 
163.17     (4) recommend to the legislature the minimum number of 
163.18  contact hours that are necessary in order for a program to 
163.19  continue; 
163.20     (5) recommend to the legislature an adequate and reasonable 
163.21  hourly rate for smaller programs; 
163.22     (6) recommend to the legislature a reasonable range for the 
163.23  number of instructional hours or a reasonable cap on the number 
163.24  of hours individuals may spend in adult basic education 
163.25  instruction; 
163.26     (7) recommend to the legislature an outcome-based adult 
163.27  basic education funding system that rewards and recognizes 
163.28  student progress in attaining educational goals; and 
163.29     (8) review statewide grant applications for supplemental 
163.30  services under section 124D.522. 
163.31     Subd. 4.  [EXPIRATION.] The adult basic education policy 
163.32  review task force expires on January 2, 2001. 
163.33     Sec. 16.  [124D.523] [ADULT BASIC EDUCATION SUPPLEMENTAL 
163.34  SERVICE GRANTS.] 
163.35     (a) The commissioner, in consultation with the policy 
163.36  review task force under section 124D.521, may make grants to 
164.1   nonprofit organizations to provide services that are not offered 
164.2   by a district adult basic education program or that are 
164.3   supplemental to either the statewide adult basic education 
164.4   program, or a district's adult basic education program.  The 
164.5   commissioner may make grants for:  staff development for adult 
164.6   basic education teachers and administrators; training for 
164.7   volunteer tutors; training, services, and materials for serving 
164.8   disabled students through adult basic education programs; 
164.9   statewide promotion of adult basic education services and 
164.10  programs; development and dissemination of instructional and 
164.11  administrative technology for adult basic education programs; 
164.12  programs delivered by communities of color; adult basic 
164.13  education distance learning projects, including television 
164.14  instruction programs; and other supplemental services to support 
164.15  the mission of adult basic education and innovative delivery of 
164.16  adult basic education services.  
164.17     (b) The commissioner must establish eligibility criteria 
164.18  and grant application procedures.  Grants under this section 
164.19  must support services throughout the state, focus on educational 
164.20  results for adult learners, and promote outcome-based 
164.21  achievement through adult basic education programs.  The 
164.22  commissioner may make grants under this section from funds 
164.23  specifically appropriated for supplemental service grants.  Up 
164.24  to one-third of the appropriation for supplemental service 
164.25  grants must be used for grants for adult basic education 
164.26  programs to encourage and support innovations in adult basic 
164.27  education instruction and service delivery.  A grant to a single 
164.28  organization must be for two years or less and cannot exceed 
164.29  $100,000.  Nothing in this section prevents an approved adult 
164.30  basic education program from using state or federal aid to 
164.31  purchase supplemental services. 
164.32     Sec. 17.  Minnesota Statutes 1999 Supplement, section 
164.33  124D.53, subdivision 3, is amended to read: 
164.34     Subd. 3.  [AID.] For fiscal year 2000, adult basic 
164.35  education aid for each approved program equals $2,295 for fiscal 
164.36  year 2000 and $2,338 for fiscal year 2001 and later fiscal 
165.1   years $1,767 times the number of full-time equivalent students 
165.2   in its adult basic education program during the first prior 
165.3   program year. 
165.4      Sec. 18.  [124D.531] [ADULT BASIC EDUCATION AID.] 
165.5      Subdivision 1.  [STATE TOTAL ADULT BASIC EDUCATION AID.] (a)
165.6   The state total adult basic education aid for fiscal year 2001 
165.7   equals $30,155,000.  The state total adult basic education aid 
165.8   for later years equals: 
165.9      (1) the state total adult basic education aid for the 
165.10  preceding fiscal year; times 
165.11     (2) the lesser of: 
165.12     (i) 1.08, or 
165.13     (ii) the greater of 1.00 or the ratio of the state total 
165.14  contact hours in the first prior program year to the state total 
165.15  contact hours in the second prior program year. 
165.16     (b) The state total adult basic education aid, excluding 
165.17  basic population aid, equals the difference between the amount 
165.18  computed in paragraph (a), and the state total basic population 
165.19  aid under subdivision 2. 
165.20     Subd. 2.  [BASIC POPULATION AID.] A district is eligible 
165.21  for basic population aid if the district has a basic service 
165.22  level approved by the commissioner under section 124D.52, 
165.23  subdivision 5, or is a member of a consortium with an approved 
165.24  basic service level.  Basic population aid is equal to the 
165.25  greater of $4,000 or $1.80 times the population of the district. 
165.26  District population is determined according to section 275.14. 
165.27     Subd. 3.  [PROGRAM REVENUE.] Adult basic education programs 
165.28  established under section 124D.52 and approved by the 
165.29  commissioner are eligible for revenue under this subdivision.  
165.30  For fiscal year 2001 and later, adult basic education revenue 
165.31  for each approved program equals the sum of: 
165.32     (1) the basic population aid under subdivision 2 for 
165.33  districts participating in the program during the current 
165.34  program year; plus 
165.35     (2)(i) for fiscal year 2001, 84 percent times the amount 
165.36  computed in subdivision 1, paragraph (b), times the ratio of the 
166.1   contact hours for students participating in the program during 
166.2   the first prior program year to the state total contact hours 
166.3   during the first prior program year; plus 
166.4      (ii) for fiscal year 2002, 84 percent times the amount 
166.5   computed in subdivision 1, paragraph (b), times the ratio of the 
166.6   contact hours for students participating in the program during 
166.7   the first and second prior program years to the state total 
166.8   contact hours during the first and second prior program years; 
166.9   plus 
166.10     (iii) for fiscal year 2003, and thereafter, 84 percent 
166.11  times the amount computed in subdivision 1, paragraph (b), times 
166.12  the ratio of the contact hours for students participating in the 
166.13  program during the first, second, and third prior program years 
166.14  to the state total contact hours during the first, second, and 
166.15  third prior program years; plus 
166.16     (3) eight percent times the amount computed in subdivision 
166.17  1, paragraph (b), times the ratio of the enrollment of students 
166.18  with limited English proficiency during the prior school year in 
166.19  districts participating in the program during the current 
166.20  program year to the state total enrollment of students with 
166.21  limited English proficiency during the prior school year in 
166.22  districts participating in adult basic education programs during 
166.23  the current program year; plus 
166.24     (4) eight percent times the amount computed in subdivision 
166.25  1, paragraph (b), times the ratio of the latest federal census 
166.26  count of the number of adults aged 20 or older with no diploma 
166.27  residing in the districts participating in the program during 
166.28  the current program year to the latest federal census count of 
166.29  the state total number of adults aged 20 or older with no 
166.30  diploma residing in the districts participating in adult basic 
166.31  education programs during the current program year. 
166.32     Subd. 4.  [ADULT BASIC EDUCATION PROGRAM AID LIMIT.] (a) 
166.33  Notwithstanding subdivisions 2 and 3, the total adult basic 
166.34  education aid for a program per prior year contact hour must not 
166.35  exceed four times the rate per prior year contact hour computed 
166.36  under subdivision 3, clause (2). 
167.1      (b) For fiscal year 2002 and later, the aid for a program 
167.2   under subdivision 3, clause (2), adjusted for changes in program 
167.3   membership, must not exceed the aid for that program under 
167.4   subdivision 3, clause (2), for the first preceding fiscal year 
167.5   by more than the greater of 20 percent or $20,000. 
167.6      (c) Adult basic education aid is payable to a program for 
167.7   unreimbursed costs. 
167.8      Subd. 5.  [INSTITUTIONAL PROGRAMS.] Notwithstanding section 
167.9   124D.531, for fiscal year 2001 only, adult basic education aid 
167.10  for an approved program in its first year of operation that 
167.11  provides adult basic education services at a newly constructed 
167.12  correctional facility equals the product of the number of 
167.13  contact hours during the current program year, times 1.08, times 
167.14  the rate per contact hour established under section 124D.531, 
167.15  subdivision 3, clause (2). 
167.16     Subd. 6.  [AID GUARANTEE.] Notwithstanding subdivisions 1, 
167.17  3, and 4, for fiscal year 2001, any adult basic education 
167.18  program qualifying for aid under this section, that receives 
167.19  less state aid than in fiscal year 2000 must receive additional 
167.20  aid equal to the difference between its fiscal year 2000 aid and 
167.21  its fiscal year 2001 aid. 
167.22     Subd. 7.  [PAYMENT OF AID TO FISCAL AGENT.] Adult basic 
167.23  education aid must be paid directly to the fiscal agent of each 
167.24  approved program.  An approved program must have only one fiscal 
167.25  agent. 
167.26     Subd. 8.  [PROGRAM AUDITS.] Programs that receive aid under 
167.27  this section must maintain records that support the aid 
167.28  payments.  The commissioner may audit these records upon 
167.29  request.  The commissioner must establish procedures for 
167.30  conducting fiscal audits of adult basic education programs 
167.31  according to the schedule in this subdivision.  In fiscal year 
167.32  2002, the commissioner must audit all approved adult basic 
167.33  education programs that received aid for fiscal year 2001.  
167.34  Beginning with fiscal year 2003, the commissioner must, at a 
167.35  minimum, audit each adult basic education program once every 
167.36  five years.  The commissioner must establish procedures to 
168.1   reconcile any discrepancies between aid payments based on 
168.2   information reported to the commissioner and aid estimates based 
168.3   on a program audit. 
168.4      Subd. 9.  [ADMINISTRATIVE CAP.] A consortium or district 
168.5   shall not spend more than five percent of the consortium or 
168.6   district's total adult basic education aid on administrative 
168.7   costs. 
168.8      Subd. 10.  [FISCAL REPORTS.] Programs that receive aid 
168.9   under this section must submit an annual report to the 
168.10  commissioner that includes revenue and expense reports for each 
168.11  district and program, including instructional services offered 
168.12  in partnership with businesses and nonprofit organizations. 
168.13     <b>EFFECTIVE DATE:</b>  This section is effective for revenue for 
168.14  fiscal years beginning with 2001. 
168.15     Sec. 19.  Minnesota Statutes 1998, section 245A.14, 
168.16  subdivision 4, is amended to read: 
168.17     Subd. 4.  [SPECIAL FAMILY DAY CARE HOMES.] Nonresidential 
168.18  child care programs serving 14 or fewer children that are 
168.19  conducted at a location other than the license holder's own 
168.20  residence shall be licensed under this section and the rules 
168.21  governing family day care or group family day care if:  
168.22     (a) the license holder is the primary provider of care and 
168.23  the nonresidential child care program is conducted in a dwelling 
168.24  that is located on a residential lot; or 
168.25     (b) the license holder is an employer who may or may not be 
168.26  the primary provider of care, and the purpose for the child care 
168.27  program is to provide child care services to children of the 
168.28  license holder's employees; or 
168.29     (c) the license holder is a church or religious 
168.30  organization. 
168.31     Sec. 20.  Minnesota Statutes 1998, section 245A.14, is 
168.32  amended by adding a subdivision to read: 
168.33     Subd. 8.  [EXPERIENCED AIDES; CHILD CARE CENTERS.] (a) An 
168.34  individual employed as an aide at a child care center may work 
168.35  with children without being directly supervised for up to 25 
168.36  percent of the individual's daily work shift if: 
169.1      (1) a teacher is in the building; 
169.2      (2) the individual has received first aid training within 
169.3   the last three years; and 
169.4      (3) the individual is at least 20 years old and has at 
169.5   least 4,160 hours of child care experience as defined in section 
169.6   245A.02, subdivision 6b. 
169.7      (b) The use of an experienced aide working without direct 
169.8   supervision under paragraph (a) is limited to 25 percent of each 
169.9   classrooms' daily hours of operation. 
169.10     (c) A child care center that utilizes experienced aides 
169.11  under this subdivision must notify the parents or guardians of 
169.12  the children who are cared for under this subdivision, and must 
169.13  send a duplicate letter to the commissioner of human services, 
169.14  licensing division.  The notice must provide the approximate 
169.15  number of hours per classroom per month that this subdivision is 
169.16  utilized. 
169.17     (d) This subdivision sunsets June 30, 2002. 
169.18     Sec. 21.  Laws 1998, First Special Session chapter 1, 
169.19  article 1, section 10, is amended to read: 
169.20     Sec. 10.  [HOUSEHOLD ELIGIBILITY; PARTICIPATION.] 
169.21     Subdivision 1.  [INITIAL ELIGIBILITY.] To be eligible for 
169.22  state or TANF matching funds in the family assets for 
169.23  independence initiative, a household must have income at or 
169.24  below 185 percent of the federal poverty level and assets of 
169.25  $15,000 or less.  An individual who is a dependent of another 
169.26  person for federal income tax purposes may not be a separate 
169.27  eligible household for purposes of establishing a family asset 
169.28  account.  An individual who is a debtor for a judgment resulting 
169.29  from nonpayment of a court-ordered child support obligation may 
169.30  not participate in this program.  Households accessing TANF 
169.31  matching funds are subject to the MFIP definition of household 
169.32  under Minnesota Statutes, section 256J.08, subdivision 46.  
169.33  Income and assets are determined according to eligibility 
169.34  guidelines for the energy assistance program meet the 
169.35  eligibility requirements of the federal Assets for Independence 
169.36  Act, Public Law Number 105-285, in title IV, section 408, of 
170.1   that act. 
170.2      Sec. 22.  Laws 1998, First Special Session chapter 1, 
170.3   article 1, section 11, is amended to read: 
170.4      Sec. 11.  [WITHDRAWAL; MATCHING; PERMISSIBLE USES.] 
170.5      Subdivision 1.  [WITHDRAWAL OF FUNDS.] To receive a match, 
170.6   a participating household must transfer funds withdrawn from a 
170.7   family asset account to its matching fund custodial account held 
170.8   by the fiscal agent, according to the family asset agreement.  
170.9   The fiduciary organization fiscal agent must determine if the 
170.10  match request is for a permissible use consistent with the 
170.11  household's family asset agreement. 
170.12     The fiscal agent must ensure the household's custodial 
170.13  account contains the applicable matching funds to match the 
170.14  balance in the household's account, including interest, on at 
170.15  least a quarterly basis and at the time of an approved 
170.16  withdrawal.  Matches must be provided as follows: 
170.17     (1) from state grant and TANF funds a matching contribution 
170.18  of $1.50 for every $1 of funds withdrawn from the family asset 
170.19  account equal to the lesser of $720 per year or a $3,000 
170.20  lifetime limit; and 
170.21     (2) from nonstate funds, a matching contribution of no less 
170.22  than $1.50 for every $1 of funds withdrawn from the family asset 
170.23  account equal to the lesser of $720 per year or a $3,000 
170.24  lifetime limit. 
170.25     Sec. 23.  Laws 1999, chapter 205, article 1, section 65, is 
170.26  amended to read: 
170.27     Sec. 65.  [ADDITIONAL EARLY CHILDHOOD FAMILY EDUCATION AID; 
170.28  FISCAL YEAR 2000 AND FISCAL YEAR 2001.] 
170.29     A district that complies with Minnesota Statutes, section 
170.30  124D.13, shall receive additional early childhood family 
170.31  education aid for fiscal year 2000 and fiscal year 2001 equal to 
170.32  $2.46 times the greater of: 
170.33     (1) 150; or 
170.34     (2) the number of people under five years of age residing 
170.35  in the school district on October 1 of the previous school 
170.36  year.  The additional early childhood family education aid may 
171.1   be used only for early childhood family education programs. 
171.2      Sec. 24.  Laws 1999, chapter 205, article 1, section 71, 
171.3   subdivision 3, is amended to read: 
171.4      Subd. 3.  [EARLY CHILDHOOD FAMILY EDUCATION AID.] For early 
171.5   childhood family education aid according to Minnesota Statutes, 
171.6   section 124D.135: 
171.7        $20,485,000 $20,109,000   .....     2000 
171.8        $19,420,000 $21,107,000   .....     2001
171.9      The 2000 appropriation includes $1,390,000 for 1999 and 
171.10  $19,095,000 $18,719,000 for 2000.  
171.11     The 2001 appropriation includes $2,122,000 $2,079,000 for 
171.12  2000 and $17,298,000 $19,028,000 for 2001.  
171.13     Any balance in the first year does not cancel but is 
171.14  available in the second year. 
171.15     Sec. 25.  Laws 1999, chapter 205, article 1, section 71, 
171.16  subdivision 7, is amended to read: 
171.17     Subd. 7.  [SCHOOL AGE CARE AID.] For extended day aid 
171.18  according to Minnesota Statutes, section 124D.22: 
171.19       $274,000       .....     2000 
171.20       $216,000 $245,000       .....     2001
171.21     The 2000 appropriation includes $30,000 for 1999 and 
171.22  $244,000 for 2000. 
171.23     The 2001 appropriation includes $27,000 for 2000 and 
171.24  $189,000 $218,000 for 2001. 
171.25     Any balance in the first year does not cancel but is 
171.26  available in the second year. 
171.27     Sec. 26.  Laws 1999, chapter 205, article 1, section 71, 
171.28  subdivision 9, is amended to read: 
171.29     Subd. 9.  [MFIP CHILD CARE.] For child care assistance 
171.30  according to Minnesota Statutes, section 119B.05: 
171.31       $86,318,000 $66,524,000    .....     2000 
171.32       $88,443,000 $78,606,000    .....     2001
171.33     Any balance in the first year does not cancel but is 
171.34  available in the second year. 
171.35     Sec. 27.  Laws 1999, chapter 205, article 2, section 4, 
171.36  subdivision 3, is amended to read: 
172.1      Subd. 3.  [COMMUNITY EDUCATION AID.] For community 
172.2   education aid according to Minnesota Statutes, section 124D.20: 
172.3        $14,136,000    .....     2000 
172.4        $14,696,000 $15,274,000    .....     2001 
172.5      The 2000 appropriation includes $160,000 for 1999 and 
172.6   $13,976,000 for 2000.  
172.7      The 2001 appropriation includes $1,552,000 for 2000 and 
172.8   $13,144,000 $13,722,000 for 2001.  
172.9      Any balance in the first year does not cancel but is 
172.10  available in the second year. 
172.11     Sec. 28.  Laws 1999, chapter 205, article 4, section 12, 
172.12  subdivision 5, is amended to read: 
172.13     Subd. 5.  [ADULT BASIC EDUCATION AID.] For adult basic 
172.14  education aid according to Minnesota Statutes, section 124D.52, 
172.15  in fiscal year 2000 and Minnesota Statutes, section 124D.53 in 
172.16  fiscal year 2001:  
172.17       $20,132,000    .....     2000
172.18       $22,477,000 $29,168,000   .....     2001 
172.19     The 2000 appropriation includes $1,227,000 for 1999 and 
172.20  $18,905,000 for 2000.  
172.21     The 2001 appropriation includes $2,101,000 for 2000 and 
172.22  $20,376,000 $27,067,000 for 2001.  
172.23     Sec. 29.  Laws 1999, chapter 205, article 4, section 12, 
172.24  subdivision 6, is amended to read: 
172.25     Subd. 6.  [ADULT BASIC EDUCATION BASIC POPULATION AID.] For 
172.26  basic population aid for eligible districts under section 7: 
172.27       $1,960,000 $1,974,000     .....     2000 
172.28     Notwithstanding Minnesota Statutes, section 127A.45, 
172.29  subdivision 12, 100 percent of this appropriation is for fiscal 
172.30  year 2000. 
172.31     Any balance in the first year does not cancel but is 
172.32  available in the second year.  This is a one-time appropriation. 
172.33     Sec. 30.  Laws 1999, chapter 205, article 4, section 12, 
172.34  subdivision 7, is amended to read: 
172.35     Subd. 7.  [ADULT GRADUATION AID.] For adult graduation aid 
172.36  according to Minnesota Statutes, section 124D.54: 
173.1        $3,184,000 $2,760,000     .....     2000
173.2        $4,732,000 $3,031,000     .....     2001
173.3      The 2000 appropriation includes $258,000 $258,000 for 1999 
173.4   and $2,926,000 $2,502,000 for 2000.  
173.5      The 2001 appropriation includes $325,000 $278,000 for 2000 
173.6   and $4,407,000 $2,753,000 for 2001. 
173.7      Sec. 31.  [COMPETENCY-BASED ADULT BASIC EDUCATION AND 
173.8   ENGLISH AS A SECOND LANGUAGE LICENSE.] 
173.9      The board of teaching must convene a task force to develop 
173.10  a competency-based license for teachers of adult basic education 
173.11  classes and English as a second language class.  The 
173.12  competency-based license must be an alternative to the current 
173.13  licensing requirements.  By January 15, 2002, the board of 
173.14  teaching must present their recommendations to the committees of 
173.15  the legislature responsible for teacher licensing and funding of 
173.16  adult basic education programs, including recommendations for 
173.17  implementing competency-based licensing for teachers of adult 
173.18  learners. 
173.19     Sec. 32.  [ADULT BASIC EDUCATION CONSORTIUM DISTRIBUTION TO 
173.20  MEMBERS.] 
173.21     Consortiums receiving additional funding based on 
173.22  population aid shall proportionately distribute that additional 
173.23  funding to noneducation institution members of the consortium 
173.24  based upon the percentage of contact hours each noneducation 
173.25  institution member provides.  This provision shall be effective 
173.26  through June 30, 2001. 
173.27     Sec. 33.  [ENERGY ASSISTANCE PROGRAM.] 
173.28     (a) The commissioner of economic security shall establish 
173.29  policies and procedures to address the findings in the 
173.30  department of administration's evaluation of Minnesota's energy 
173.31  assistance program published in December 1999. 
173.32     (b) The commissioner of economic security shall develop: 
173.33     (1) outcome measures, in accordance with federal 
173.34  recommendations, by which to evaluate subgrantee performance and 
173.35  the program as a whole; 
173.36     (2) methods to identify the eligible population for the 
174.1   energy assistance program; 
174.2      (3) procedures to improve program consistency across the 
174.3   state.  This shall address program start and end dates, 
174.4   eligibility determination, eligibility verification, and 
174.5   application and payment processing times; and 
174.6      (4) improved internal management practices.  This includes 
174.7   program oversight, evaluation and auditing of the service 
174.8   delivery agencies, computer software system, and overall 
174.9   management.  The report shall also include proposals for the 
174.10  utilization of technology to provide for the most cost-effective 
174.11  service delivery. 
174.12     Sec. 34.  [FEDERAL TANF APPROPRIATIONS.] 
174.13     Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
174.14  LEARNING.] The sums indicated in this section are appropriated 
174.15  from the federal TANF block grant fund to the commissioner of 
174.16  children, families, and learning for the fiscal years 
174.17  indicated.  These amounts are available until expended and may 
174.18  be carried forward and spent in the 2002-2003 biennium. 
174.19     Subd. 2.  [TRANSITIONAL HOUSING PROGRAMS.] For transitional 
174.20  housing programs according to Minnesota Statutes, section 
174.21  119A.43: 
174.22       $3,700,000     .....     2001
174.23     The amount appropriated under this subdivision does not 
174.24  cancel, but is available until expended. 
174.25     Sec. 35.  [FEDERAL TANF TRANSFERS.] 
174.26     Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
174.27  LEARNING.] The sums indicated in this section are transferred 
174.28  from the federal TANF fund to the child care and development 
174.29  fund and appropriated to the commissioner of children, families, 
174.30  and learning for the fiscal year designated.  The commissioner 
174.31  shall ensure that all transferred funds are expended in 
174.32  accordance with the child care and development fund regulations 
174.33  and that the maximum allowable transferred funds are used for 
174.34  the program in this section. 
174.35     Subd. 2.  [BASIC SLIDING FEE CHILD CARE.] For child care 
174.36  assistance according to Minnesota Statutes, section 119B.03: 
175.1       $11,789,000     .....     2001
175.2       $ 5,888,000     .....     2002
175.3       $ 2,488,000     .....     2003
175.4      The amounts appropriated under this subdivision do not 
175.5   cancel, but are available until expended. 
175.6      Subd. 3.  [MFIP SOCIAL SERVICE CHILD CARE.] For social 
175.7   service child care costs of eligible MFIP participants according 
175.8   to Minnesota Statutes, section 119B.05: 
175.9        $3,233,000     .....     2001
175.10       $3,297,000     .....     2002
175.11       $2,865,000     .....     2003
175.12     This amount shall be added to the federal TANF block grant 
175.13  base with regard to this program. 
175.14     Subd. 4.  [MFIP EDUCATION CHILD CARE.] For child care costs 
175.15  related to the possible modifications to Minnesota Statutes, 
175.16  section 256J.522, made in the 2000 legislative session in the 
175.17  health and family security omnibus bill, which allows 24 months 
175.18  of education to eligible MFIP participants under certain 
175.19  circumstances.  If the changes to Minnesota Statutes, section 
175.20  256J.522, relating to 24 months of education do not pass into 
175.21  law, the money appropriated under this subdivision shall revert 
175.22  to the basic sliding fee program under subdivision 2, for fiscal 
175.23  year 2001: 
175.24         $600,000     .....     2001
175.25     Subd. 5.  [TRANSITION YEAR FAMILIES.] To provide 
175.26  uninterrupted assistance under Minnesota Statutes, section 
175.27  119B.03, for families completing transition year child care 
175.28  assistance: 
175.29       $1,080,000     .....     2001
175.30       $3,620,000     .....     2002
175.31       $4,040,000     .....     2003
175.32     A balance may be carried forward one fiscal year.  Any 
175.33  amount remaining in fiscal year 2003 that is not needed for 
175.34  uninterrupted child care must be used for assistance under 
175.35  Minnesota Statutes, section 119B.03. 
175.36     Sec. 36.  [GENERAL FUND APPROPRIATIONS.] 
176.1      Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
176.2   LEARNING.] The sums indicated in this section are appropriated 
176.3   from the general fund to the commissioner of children, families, 
176.4   and learning for the fiscal years designated.  The amounts are 
176.5   available until expended and may be carried forward to the 
176.6   2002-2003 biennium. 
176.7      Subd. 2.  [ADULT BASIC EDUCATION SUPPLEMENTAL SERVICE 
176.8   GRANTS.] For adult basic education supplemental service grants 
176.9   according to Minnesota Statutes, section 124D.522: 
176.10       $700,000     .....     2001 
176.11     This appropriation is added to the base for fiscal years 
176.12  2002 and 2003. 
176.13     Subd. 3.  [ADULT BASIC ADMINISTRATION.] For the adult basic 
176.14  policy review task force under Minnesota Statutes, section 
176.15  124D.521, and for administration of the state adult basic 
176.16  education program including auditing, technical assistance, and 
176.17  reporting requirements under this act: 
176.18       $100,000     .....     2001 
176.19     This appropriation is added to the fiscal year 2002 and 
176.20  2003 base. 
176.21     Subd. 4.  [CITIZENSHIP PROMOTION.] For the citizenship 
176.22  promotion program under Laws 1997, chapter 162, article 2, 
176.23  section 32: 
176.24       $350,000     .....     2001
176.25     Subd. 5.  [ADULTS WITH DISABILITIES.] For purposes of the 
176.26  adults with disabilities pilot programs under Laws 1997, chapter 
176.27  162, article 2, section 31, subdivision 4: 
176.28       $40,000     .....     2001
176.29     Subd. 6.  [EMERGENCY SERVICES.] For emergency services 
176.30  grants according to Laws 1997, chapter 162, article 3, section 7:
176.31       $1,477,000     .....     2001
176.32     Sec. 37.  [REPORT.] 
176.33     The commissioner of economic security shall submit a report 
176.34  to the legislature detailing the costs and benefits of operating 
176.35  the energy assistance program.  The report shall be submitted to 
176.36  the senate jobs, energy and community development committee, and 
177.1   the house jobs and economic development policy committee by 
177.2   January 30, 2001. 
177.3      Sec. 38.  [TRANSFER OF ENERGY ASSISTANCE AND WEATHERIZATION 
177.4   RESPONSIBILITIES.] 
177.5      Energy assistance and weatherization responsibilities under 
177.6   Minnesota Statutes, sections 119A.40, 119A.41, 119A.42, and 
177.7   119A.425, are transferred from the department of children, 
177.8   families, and learning to the department of economic security.  
177.9      Sec. 39.  [INSTRUCTION TO REVISOR.] 
177.10     The revisor of statutes shall renumber each section of 
177.11  Minnesota Statutes listed in column A with the number listed in 
177.12  column B.  The revisor shall also make necessary cross-reference 
177.13  changes consistent with the renumbering. 
177.14            column A        column B 
177.15            119A.40         268.985 
177.16            119A.41         268.986 
177.17            119A.42         268.987 
177.18            119A.425        268.989 
177.19     Sec. 40.  [REPEALER.] 
177.20     Minnesota Statutes 1998, section 124D.53, subdivisions 1, 
177.21  2, and 5, are repealed.  Minnesota Statutes 1999 Supplement, 
177.22  section 124D.53, subdivision 4, is repealed.  Laws 1998, First 
177.23  Special Session chapter 1, article 1, section 10, subdivision 2, 
177.24  is repealed. 
177.25     Sec. 41.  [EFFECTIVE DATE.] 
177.26     Sections 33 and 37 to 39 are effective the day following 
177.27  final enactment.