1.1                          A bill for an act 
  1.2             relating to education; providing for early childhood 
  1.3             through adult education including general education, 
  1.4             education excellence, special education, facilities 
  1.5             and technology, fund transfers, nutrition programs, 
  1.6             early childhood programs, prevention, self-sufficiency 
  1.7             and lifelong learning, libraries, state agencies, and 
  1.8             technical amendments; appropriating money; amending 
  1.9             Minnesota Statutes 2000, sections 93.22; 119A.05; 
  1.10            119A.12, by adding subdivisions; 119A.13, subdivision 
  1.11            4; 119A.21; 119A.22; 119A.52; 119B.011, subdivisions 
  1.12            7, 19, by adding subdivisions; 119B.02, subdivisions 
  1.13            1, 2; 119B.03, subdivisions 3, 9, 10, by adding a 
  1.14            subdivision; 119B.05, subdivision 5; 119B.061, 
  1.15            subdivisions 1, 4; 119B.08; 119B.09, subdivisions 1, 
  1.16            2, 7; 119B.10; 119B.11, subdivision 1; 119B.12, 
  1.17            subdivision 2; 119B.13, subdivisions 1, 6; 119B.15; 
  1.18            119B.24; 120B.07; 120B.30, subdivision 1; 120B.35; 
  1.19            121A.16; 121A.17, subdivisions 1, 3, 4, 5; 121A.19; 
  1.20            122A.09, subdivision 4; 122A.162; 122A.163; 122A.18, 
  1.21            subdivisions 1, 4; 122A.21; 122A.26, subdivision 3; 
  1.22            122A.60, subdivision 3; 122A.61, subdivision 1; 
  1.23            123B.36, subdivision 1; 123B.37, subdivision 1; 
  1.24            123B.42, subdivision 3; 123B.57, subdivision 8; 
  1.25            123B.59, subdivision 1; 123B.75, subdivision 5; 
  1.26            123B.88, subdivision 1; 123B.92, subdivision 9; 
  1.27            124D.11, subdivisions 4, 5, by adding subdivisions; 
  1.28            124D.128, subdivisions 1, 2, 3, 6, by adding a 
  1.29            subdivision; 124D.13, subdivisions 8, 9, by adding 
  1.30            subdivisions; 124D.135, subdivisions 1, 3, 7, by 
  1.31            adding a subdivision; 124D.15; 124D.16; 124D.221, 
  1.32            subdivisions 1, 2; 124D.453, subdivision 3; 124D.454, 
  1.33            subdivision 11; 124D.52, subdivision 2; 124D.522; 
  1.34            124D.531, subdivisions 1, 3; 124D.69, subdivision 1; 
  1.35            124D.74, subdivisions 1, 2, 3, 4, 6; 124D.75, 
  1.36            subdivision 6; 124D.76; 124D.78, subdivision 1; 
  1.37            124D.81, subdivisions 1, 3, 5, 6, 7; 125A.17; 
  1.38            125A.515; 125A.76, subdivisions 1, 4; 125A.79, 
  1.39            subdivisions 1, 7; 125B.20, subdivision 1; 125B.21; 
  1.40            125B.25, subdivisions 1, 2, 6, 9; 126C.05, 
  1.41            subdivisions 1, 15; 126C.10, subdivisions 1, 2, 3, 4, 
  1.42            5, 7, 8, 13, 18, 24, 28, by adding subdivisions; 
  1.43            126C.12, subdivisions 1, 2, 3, 4, 5, by adding a 
  1.44            subdivision; 126C.125; 126C.13, subdivision 1; 
  1.45            126C.15, subdivision 2; 126C.16, by adding a 
  1.46            subdivision; 126C.17, subdivisions 1, 2, 5, 6, by 
  2.1             adding a subdivision; 126C.18, by adding a 
  2.2             subdivision; 126C.40, subdivision 1; 126C.41, 
  2.3             subdivision 2; 127A.41, subdivisions 8, 9; 127A.45, 
  2.4             subdivision 12, by adding a subdivision; 127A.51; 
  2.5             214.01, subdivision 3; 214.04, subdivisions 1, 3; 
  2.6             214.12, subdivision 1; 298.28, subdivision 4; Laws 
  2.7             2000, chapter 489, article 2, sections 34, 37; Laws 
  2.8             2000, chapter 489, article 3, section 24; Laws 2000, 
  2.9             chapter 489, article 5, section 21; Laws 2000, chapter 
  2.10            489, article 7, section 15, subdivision 3; proposing 
  2.11            coding for new law in Minnesota Statutes, chapters 93; 
  2.12            119A; 119B; 122A; 124D; 126C; 134; repealing Minnesota 
  2.13            Statutes 2000, sections 119A.13, subdivisions 1, 2, 3; 
  2.14            119A.14, subdivision 2; 119A.23; 119B.011, subdivision 
  2.15            20; 119B.03, subdivisions 1, 2, 4, 5, 6, 6a, 8; 
  2.16            119B.05, subdivision 1; 119B.07; 119B.09, subdivision 
  2.17            3; 119B.11, subdivision 4; 120A.41; 124D.1155; 
  2.18            124D.128, subdivision 7; 124D.33; 124D.331; 124D.85; 
  2.19            125B.20, subdivision 3; 126C.10, subdivisions 9, 10, 
  2.20            11, 12, 19, 20, 21, 22, 23; 126C.11; Laws 1999, 
  2.21            chapter 241, article 3, section 5, as amended; Laws 
  2.22            2000, chapter 254, section 30; Laws 2000, chapter 489, 
  2.23            article 1, section 18. 
  2.24  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  2.25                             ARTICLE 1 
  2.26                         GENERAL EDUCATION 
  2.27     Section 1.  Minnesota Statutes 2000, section 93.22, is 
  2.28  amended to read: 
  2.29     93.22 [DISPOSITION OF PAYMENTS.] 
  2.30     Subdivision 1.  [GENERALLY.] (a) All payments under 
  2.31  sections 93.14 to 93.285 shall be made to the department of 
  2.32  natural resources and shall be credited as follows: according to 
  2.33  this section.  
  2.34     (1) (a) If the lands or minerals and mineral rights covered 
  2.35  by a lease are held by the state by virtue of an act of 
  2.36  Congress, payments made under the lease shall be credited to the 
  2.37  permanent fund of the class of land to which the leased premises 
  2.38  belong;. 
  2.39     (2) (b) If a lease covers the bed of navigable waters, 
  2.40  payments made under the lease shall be credited to the permanent 
  2.41  school fund of the state; and. 
  2.42     (3) (c) If the lands or minerals and mineral rights covered 
  2.43  by a lease are held by the state in trust for the taxing 
  2.44  districts, payments made under the lease shall be distributed 
  2.45  annually on the first day of September as follows: 
  2.46     (i) (1) 20 percent to the general fund; and 
  2.47     (ii) (2) 80 percent to the respective counties in which the 
  3.1   lands lie, to be apportioned among the taxing districts 
  3.2   interested therein as follows:  county, three-ninths; town or 
  3.3   city, two-ninths; and school district, four-ninths. 
  3.4      (b) (d) Except as provided under paragraph (a) this section 
  3.5   and except where the disposition of payments may be otherwise 
  3.6   directed by law, all payments shall be paid into the general 
  3.7   fund of the state. 
  3.8      Subd. 2.  [TACONITE LEASE REVENUE.] Notwithstanding 
  3.9   subdivision 1, from July 1, 2001, to June 30, 2006, payments 
  3.10  made under state taconite leases shall be distributed as follows:
  3.11     (1) if the lands or minerals and mineral rights covered by 
  3.12  a lease are held by the state by virtue of a school, swamp, or 
  3.13  internal improvement land grant of Congress, payments made under 
  3.14  the lease shall be distributed annually on September 1 to the 
  3.15  school fund mineral lease suspense account created under section 
  3.16  93.223, subdivision 1; and 
  3.17     (2) if the lands or minerals and mineral rights covered by 
  3.18  a lease are held by the state by virtue of a university land 
  3.19  grant of Congress, payments made under the lease shall be 
  3.20  distributed annually on September 1 to the university mineral 
  3.21  lease suspense account created under section 93.223, subdivision 
  3.22  2. 
  3.23     Sec. 2.  [93.223] [MINERAL LEASE SUSPENSE ACCOUNTS.] 
  3.24     Subdivision 1.  [SCHOOL FUND MINERAL LEASE SUSPENSE 
  3.25  ACCOUNT.] The school fund mineral lease suspense account is 
  3.26  created as an account in the state treasury for mineral lease 
  3.27  money deposited according to section 93.22, subdivision 2, 
  3.28  clause (1).  Interest earned on money in the account accrues to 
  3.29  the account.  After money is annually deposited in the account 
  3.30  under section 93.22, subdivision 2, clause (1), the commissioner 
  3.31  of finance shall certify 20 percent of the payments made during 
  3.32  the preceding fiscal year as costs for the administration and 
  3.33  management of mineral leases on permanent school fund lands.  
  3.34  The commissioner of finance shall transfer the certified amount 
  3.35  from the school fund mineral lease suspense account to the 
  3.36  general fund.  The balance remaining in the account after the 
  4.1   certification is annually transferred to the permanent school 
  4.2   fund. 
  4.3      Subd. 2.  [UNIVERSITY FUND MINERAL LEASE SUSPENSE ACCOUNT.] 
  4.4   The university fund mineral lease suspense account is created as 
  4.5   an account in the state treasury for mineral lease money 
  4.6   deposited according to section 93.22, subdivision 2, clause (2). 
  4.7   Interest earned on money in the account accrues to the account.  
  4.8   After money is annually deposited in the account under section 
  4.9   93.22, subdivision 2, clause (2), the commissioner of finance 
  4.10  shall certify 20 percent of the payments made during the 
  4.11  preceding fiscal year as costs for the administration and 
  4.12  management of mineral leases on permanent university fund 
  4.13  lands.  The commissioner of finance shall transfer the certified 
  4.14  amount from the university fund mineral lease account to the 
  4.15  general fund.  The balance remaining in the account is annually 
  4.16  transferred to the permanent university fund. 
  4.17     Sec. 3.  [93.2235] [TACONITE MINING GRANTS; 
  4.18  APPROPRIATIONS.] 
  4.19     Subdivision 1.  [COMMISSIONER.] The commissioner shall 
  4.20  establish a program to award grants to taconite mining companies 
  4.21  for: 
  4.22     (1) taconite pellet product improvements; 
  4.23     (2) value-added production of taconite iron ore; or 
  4.24     (3) cost-savings production improvements at Minnesota 
  4.25  taconite plants. 
  4.26     An amount equal to the sum of money transferred to the 
  4.27  general fund under section 93.223, subdivision 1, is annually 
  4.28  appropriated from the general fund to the commissioner for the 
  4.29  purposes of this section. 
  4.30     Subd. 2.  [COLERAINE LABORATORY.] The director of the 
  4.31  Coleraine laboratory shall establish a program to award grants 
  4.32  for the purpose of transferring technology from the Coleraine 
  4.33  laboratory to taconite mining companies for: 
  4.34     (1) taconite pellet product improvements; 
  4.35     (2) value-added production of taconite iron ore; or 
  4.36     (3) cost-savings production improvements at Minnesota 
  5.1   taconite plants.  
  5.2      An amount equal to the sum of money transferred to the 
  5.3   general fund under section 92.223, subdivision 2, is annually 
  5.4   appropriated from the general fund to the board of regents of 
  5.5   the University of Minnesota for the purposes of this section. 
  5.6      Sec. 4.  Minnesota Statutes 2000, section 120B.07, is 
  5.7   amended to read: 
  5.8      120B.07 [EARLY GRADUATION.] 
  5.9      Notwithstanding any law to the contrary, any secondary 
  5.10  school student who has completed all required courses or 
  5.11  standards may, with the approval of the student, the student's 
  5.12  parent or guardian, and local school officials, graduate before 
  5.13  the completion of the school year.  General education revenue 
  5.14  attributable to the student must be paid as though the student 
  5.15  was in attendance for the entire year. 
  5.16     Sec. 5.  Minnesota Statutes 2000, section 123B.36, 
  5.17  subdivision 1, is amended to read: 
  5.18     Subdivision 1.  [SCHOOL BOARDS MAY REQUIRE FEES.] (a) For 
  5.19  purposes of this subdivision, "home school" means a home school 
  5.20  as defined in sections 120A.22 and 120A.24 with five or fewer 
  5.21  students receiving instruction.  
  5.22     (b) A school board is authorized to require payment of fees 
  5.23  in the following areas: 
  5.24     (1) in any program where the resultant product, in excess 
  5.25  of minimum requirements and at the pupil's option, becomes the 
  5.26  personal property of the pupil; 
  5.27     (2) admission fees or charges for extra curricular 
  5.28  activities, where attendance is optional and where the admission 
  5.29  fees or charges a student must pay to attend or participate in 
  5.30  an extracurricular activity is the same for all students, 
  5.31  regardless of whether the student is enrolled in a public or a 
  5.32  home school; 
  5.33     (3) a security deposit for the return of materials, 
  5.34  supplies, or equipment; 
  5.35     (4) personal physical education and athletic equipment and 
  5.36  apparel, although any pupil may personally provide it if it 
  6.1   meets reasonable requirements and standards relating to health 
  6.2   and safety established by the board; 
  6.3      (5) items of personal use or products that a student has an 
  6.4   option to purchase such as student publications, class rings, 
  6.5   annuals, and graduation announcements; 
  6.6      (6) fees specifically permitted by any other statute, 
  6.7   including but not limited to section 171.05, subdivision 2; 
  6.8   provided (i) driver education fees do not exceed the actual cost 
  6.9   to the school and school district of providing driver education, 
  6.10  and (ii) the driver education courses are open to enrollment to 
  6.11  persons between the ages of 15 and 18 who reside or attend 
  6.12  school in the school district; 
  6.13     (7) field trips considered supplementary to a district 
  6.14  educational program; 
  6.15     (8) any authorized voluntary student health and accident 
  6.16  benefit plan; 
  6.17     (9) for the use of musical instruments owned or rented by 
  6.18  the district, a reasonable rental fee not to exceed either the 
  6.19  rental cost to the district or the annual depreciation plus the 
  6.20  actual annual maintenance cost for each instrument; 
  6.21     (10) transportation of pupils to and from extra curricular 
  6.22  activities conducted at locations other than school, where 
  6.23  attendance is optional; 
  6.24     (11) transportation to and from school of pupils to and 
  6.25  living within two miles from school for which aid for fiscal 
  6.26  year 1996 is not authorized under Minnesota Statutes 1994, 
  6.27  section 124.223, subdivision 1, and for which levy for fiscal 
  6.28  year 1996 is not authorized under Minnesota Statutes 1994, 
  6.29  section 124.226, subdivision 5, and all other transportation 
  6.30  services not required by law.  If a district charging charges 
  6.31  fees for transportation of pupils establishes, it must establish 
  6.32  guidelines for that transportation to ensure that no pupil is 
  6.33  denied transportation solely because of inability to pay; 
  6.34     (12) motorcycle classroom education courses conducted 
  6.35  outside of regular school hours; provided the charge must not 
  6.36  exceed the actual cost of these courses to the school district; 
  7.1      (13) transportation to and from post-secondary institutions 
  7.2   for pupils enrolled under the post-secondary enrollment options 
  7.3   program under section 123B.88, subdivision 22.  Fees collected 
  7.4   for this service must be reasonable and must be used to reduce 
  7.5   the cost of operating the route.  Families who qualify for 
  7.6   mileage reimbursement under section 124D.09, subdivision 22, may 
  7.7   use their state mileage reimbursement to pay this fee.  If no 
  7.8   fee is charged, districts must allocate costs based on the 
  7.9   number of pupils riding the route. 
  7.10     Sec. 6.  Minnesota Statutes 2000, section 123B.37, 
  7.11  subdivision 1, is amended to read: 
  7.12     Subdivision 1.  [BOARDS SHALL NOT CHARGE CERTAIN FEES.] (a) 
  7.13  A board is not authorized to charge fees in the following areas: 
  7.14     (1) textbooks, workbooks, art materials, laboratory 
  7.15  supplies, towels; 
  7.16     (2) supplies necessary for participation in any 
  7.17  instructional course except as authorized in sections 123B.36 
  7.18  and 123B.38; 
  7.19     (3) field trips that are required as a part of a basic 
  7.20  education program or course; 
  7.21     (4) graduation caps, gowns, any specific form of dress 
  7.22  necessary for any educational program, and diplomas; 
  7.23     (5) instructional costs for necessary school personnel 
  7.24  employed in any course or educational program required for 
  7.25  graduation; 
  7.26     (6) library books required to be utilized for any 
  7.27  educational course or program; 
  7.28     (7) admission fees, dues, or fees for any activity the 
  7.29  pupil is required to attend; 
  7.30     (8) any admission or examination cost for any required 
  7.31  educational course or program; 
  7.32     (9) locker rentals; 
  7.33     (10) transportation to and from school of pupils (i) for 
  7.34  which state transportation aid for fiscal year 1996 is 
  7.35  authorized pursuant to Minnesota Statutes 1994, section 124.223, 
  7.36  or (ii) for which a levy for fiscal year 1996 is authorized 
  8.1   under Minnesota Statutes 1994, section 124.226, subdivision 
  8.2   5 living two miles or more from school. 
  8.3      (b) Notwithstanding paragraph (a), clauses (1) and (6), a 
  8.4   board may charge fees for textbooks, workbooks, and library 
  8.5   books, lost or destroyed by students.  The board must annually 
  8.6   notify parents or guardians and students about its policy to 
  8.7   charge a fee under this paragraph. 
  8.8      Sec. 7.  Minnesota Statutes 2000, section 123B.42, 
  8.9   subdivision 3, is amended to read: 
  8.10     Subd. 3.  [COST; LIMITATION.] (a) The cost per pupil of the 
  8.11  textbooks, individualized instructional or cooperative learning 
  8.12  materials, and standardized tests provided for in this section 
  8.13  for each school year must not exceed the statewide average 
  8.14  expenditure per pupil, adjusted pursuant to clause (b), by the 
  8.15  Minnesota public elementary and secondary schools for textbooks, 
  8.16  individualized instructional materials and standardized tests as 
  8.17  computed and established by the department by March February 1 
  8.18  of the preceding school year from the most recent public school 
  8.19  year data then available. 
  8.20     (b) The cost computed in clause (a) shall be increased by 
  8.21  an inflation adjustment equal to the percent of increase in the 
  8.22  formula allowance, pursuant to section 126C.10, subdivision 2, 
  8.23  from the second preceding school year to the current school year.
  8.24  Notwithstanding the amount of the formula allowance for fiscal 
  8.25  years 2003 and 2004 in section 126C.10, subdivision 2, the 
  8.26  commissioner shall use the amount of the formula allowance for 
  8.27  the current year minus $942 in determining the inflation 
  8.28  adjustment for those fiscal years. 
  8.29     (c) The commissioner shall allot to the districts or 
  8.30  intermediary service areas the total cost for each school year 
  8.31  of providing or loaning the textbooks, individualized 
  8.32  instructional or cooperative learning materials, and 
  8.33  standardized tests for the pupils in each nonpublic school.  The 
  8.34  allotment shall not exceed the product of the statewide average 
  8.35  expenditure per pupil, according to clause (a), adjusted 
  8.36  pursuant to clause (b), multiplied by the number of nonpublic 
  9.1   school pupils who make requests pursuant to this section and who 
  9.2   are enrolled as of September 15 of the current school year. 
  9.3      Sec. 8.  Minnesota Statutes 2000, section 123B.75, 
  9.4   subdivision 5, is amended to read: 
  9.5      Subd. 5.  [LEVY RECOGNITION.] (a) "School district tax 
  9.6   settlement revenue" means the current, delinquent, and 
  9.7   manufactured home property tax receipts collected by the county 
  9.8   and distributed to the school district. 
  9.9      (b) In June of each year 2001, the school district must 
  9.10  recognize as revenue, in the fund for which the levy was made, 
  9.11  the lesser of:  
  9.12     (1) the sum of May, June, and July school district tax 
  9.13  settlement revenue received in that calendar year plus general 
  9.14  education aid according to section 126C.13, subdivision 4, 
  9.15  received in July and August of that calendar year; or 
  9.16     (2) the sum of: 
  9.17     (i) 31 percent of the referendum levy certified in the 
  9.18  prior calendar year according to section 126C.17, subdivision 9; 
  9.19  plus 
  9.20     (ii) the entire amount of the levy certified in the prior 
  9.21  calendar year according to sections 124D.86, subdivision 4, for 
  9.22  school districts receiving revenue under 124D.86, subdivision 3, 
  9.23  clauses (1), (2), and (3); 126C.41, subdivisions 1, 2, and 3, 
  9.24  paragraphs (4), (5), and (6); 126C.43, subdivision 2; and 
  9.25  126C.48, subdivision 6.  
  9.26     (c) For fiscal year 2002 and later years, in June of each 
  9.27  year, the school district must recognize as revenue, in the fund 
  9.28  for which the levy was made, the lesser of: 
  9.29     (1) the sum of May, June, and July school district tax 
  9.30  settlement revenue received in that calendar year, plus general 
  9.31  education aid according to section 126C.13, subdivision 4, 
  9.32  received in July and August of that calendar year; or 
  9.33     (2) the sum of: 
  9.34     (i) 31 percent of the referendum levy certified according 
  9.35  to section 126C.17, in calendar year 2000; plus 
  9.36     (ii) the entire amount of the levy certified in the prior 
 10.1   calendar year according to section 124D.86, subdivision 4, for 
 10.2   school districts receiving revenue under sections 124D.86, 
 10.3   subdivision 3, clauses (1), (2), and (3); 126C.41, subdivisions 
 10.4   1, 2, and 3, paragraphs (4), (5), and (6); 126C.43, subdivision 
 10.5   2; and 126C.48, subdivision 6. 
 10.6      <b>[EFFECTIVE DATE.]</b> This section is effective June 30, 2001. 
 10.7      Sec. 9.  Minnesota Statutes 2000, section 123B.88, 
 10.8   subdivision 1, is amended to read: 
 10.9      Subdivision 1.  [PROVIDING TRANSPORTATION.] The board may 
 10.10  provide for the transportation of pupils to and from school and 
 10.11  for any other purpose.  The board may also provide for the 
 10.12  transportation of pupils to schools in other districts for 
 10.13  grades and departments not maintained in the district, including 
 10.14  high school, at the expense of the district, when funds are 
 10.15  available therefor and if agreeable to the district to which it 
 10.16  is proposed to transport the pupils, for the whole or a part of 
 10.17  the school year, as it may deem advisable, and subject to its 
 10.18  rules.  In any district, the board must arrange for the 
 10.19  attendance of all pupils living two miles or more from the 
 10.20  school, except pupils whose transportation privileges have been 
 10.21  voluntarily surrendered under subdivision 2, or whose privileges 
 10.22  have been revoked under section 123B.91, subdivision 1, clause 
 10.23  (6), or 123B.90, subdivision 2.  The district may provide for 
 10.24  the transportation of or the boarding and rooming of the pupils 
 10.25  who may be more economically and conveniently provided for by 
 10.26  that means.  Arrangements for attendance may include a 
 10.27  requirement that parents or guardians request transportation 
 10.28  before it is provided.  The board must provide transportation to 
 10.29  and from the home of a child with a disability not yet enrolled 
 10.30  in kindergarten when special instruction and services under 
 10.31  sections 125A.03 to 125A.24, 125A.26 to 125A.48, and 125A.65 are 
 10.32  provided in a location other than in the child's home.  When 
 10.33  transportation is provided, scheduling of routes, establishment 
 10.34  of the location of bus stops, manner and method of 
 10.35  transportation, control and discipline of school children, the 
 10.36  determination of fees, and any other matter relating thereto 
 11.1   must be within the sole discretion, control, and management of 
 11.2   the board.  The district may provide for the transportation of 
 11.3   pupils or expend a reasonable amount for room and board of 
 11.4   pupils whose attendance at school can more economically and 
 11.5   conveniently be provided for by that means or who attend school 
 11.6   in a building rented or leased by a district within the confines 
 11.7   of an adjacent district. 
 11.8      Sec. 10.  Minnesota Statutes 2000, section 123B.92, 
 11.9   subdivision 9, is amended to read: 
 11.10     Subd. 9.  [NONPUBLIC PUPIL TRANSPORTATION AID.] (a) A 
 11.11  district's nonpublic pupil transportation aid for the 1996-1997 
 11.12  and later school years for transportation services for nonpublic 
 11.13  school pupils according to sections 123B.88, 123B.84 to 123B.86, 
 11.14  and this section, equals the sum of the amounts computed in 
 11.15  paragraphs (b) and (c).  This aid does not limit the obligation 
 11.16  to transport pupils under sections 123B.84 to 123B.87. 
 11.17     (b) For regular and excess transportation according to 
 11.18  subdivision 1, paragraph (b), clauses (1) and (2), an amount 
 11.19  equal to the product of: 
 11.20     (1) the district's actual expenditure per pupil transported 
 11.21  in the regular and excess transportation categories during the 
 11.22  second preceding school year; times 
 11.23     (2) the number of nonpublic school pupils residing in the 
 11.24  district who receive regular or excess transportation service or 
 11.25  reimbursement for the current school year; times 
 11.26     (3) the ratio of the formula allowance pursuant to section 
 11.27  126C.10, subdivision 2, for the current school year to the 
 11.28  formula allowance pursuant to section 126C.10, subdivision 2, 
 11.29  for the second preceding school year. 
 11.30     (c) For nonpublic nonregular transportation according to 
 11.31  subdivision 1, paragraph (b), clause (5), an amount equal to the 
 11.32  product of: 
 11.33     (1) the district's actual expenditure for nonpublic 
 11.34  nonregular transportation during the second preceding school 
 11.35  year; times 
 11.36     (2) the ratio of the formula allowance pursuant to section 
 12.1   126C.10, subdivision 2, for the current school year to the 
 12.2   formula allowance pursuant to section 126C.10, subdivision 2, 
 12.3   for the second preceding school year. 
 12.4      (d) Notwithstanding the amount of the formula allowance for 
 12.5   fiscal years 2000, 2001, and 2002 in section 126C.10, 
 12.6   subdivision 2, the commissioner shall use the amount of the 
 12.7   formula allowance for the current year plus $87 in determining 
 12.8   the nonpublic pupil transportation revenue in paragraphs (b) and 
 12.9   (c) for fiscal year 2000, and the amount of the formula 
 12.10  allowance less $110 in determining the nonpublic pupil 
 12.11  transportation revenue in paragraphs (b) and (c) for fiscal 
 12.12  years 2001 and 2002. 
 12.13     (e) Notwithstanding the amount of the formula allowance for 
 12.14  fiscal years 2003 and 2004 in section 126C.10, subdivision 2, 
 12.15  the commissioner shall use the amount of the formula allowance 
 12.16  for the current year minus $942 in determining the nonpublic 
 12.17  pupil transportation revenue in paragraphs (b) and (c) for those 
 12.18  fiscal years. 
 12.19     Sec. 11.  Minnesota Statutes 2000, section 126C.05, 
 12.20  subdivision 1, is amended to read: 
 12.21     Subdivision 1.  [PUPIL UNIT.] Pupil units for each 
 12.22  Minnesota resident pupil in average daily membership enrolled in 
 12.23  the district of residence, in another district under sections 
 12.24  123A.05 to 123A.08, 124D.03, 124D.06, 124D.07, 124D.08, or 
 12.25  124D.68; in a charter school under section 124D.10; or for whom 
 12.26  the resident district pays tuition under section 123A.18, 
 12.27  123A.22, 123A.30, 123A.32, 123A.44, 123A.488, 123B.88, 
 12.28  subdivision 4, 124D.04, 124D.05, 125A.03 to 125A.24, 125A.51, or 
 12.29  125A.65, shall be counted according to this subdivision.  
 12.30     (a) A prekindergarten pupil with a disability who is 
 12.31  enrolled in a program approved by the commissioner and has an 
 12.32  individual education plan is counted as the ratio of the number 
 12.33  of hours of assessment and education service to 825 times 1.25 
 12.34  with a minimum average daily membership of 0.28, but not more 
 12.35  than 1.25 pupil units. 
 12.36     (b) A prekindergarten pupil who is assessed but determined 
 13.1   not to be handicapped is counted as the ratio of the number of 
 13.2   hours of assessment service to 825 times 1.25.  
 13.3      (c) A kindergarten pupil with a disability who is enrolled 
 13.4   in a program approved by the commissioner is counted as the 
 13.5   ratio of the number of hours of assessment and education 
 13.6   services required in the fiscal year by the pupil's individual 
 13.7   education program plan to 875, but not more than one. 
 13.8      (d) A kindergarten pupil who is not included in paragraph 
 13.9   (c) is counted as .557 of a pupil unit for fiscal year 2000 2002 
 13.10  and .5 of a pupil unit for fiscal year 2003 and thereafter. 
 13.11     (e) A pupil who is in any of grades 1 to 3 is counted as 
 13.12  1.115 pupil units for fiscal year 2000 2002 and one pupil unit 
 13.13  for fiscal year 2003 and thereafter. 
 13.14     (f) A pupil who is any of grades 4 to 6 is counted as 1.06 
 13.15  pupil units for fiscal year 1995 2002 and one pupil unit for 
 13.16  fiscal year 2003 and thereafter. 
 13.17     (g) A pupil who is in any of grades 7 to 12 is counted as 
 13.18  1.3 pupil units for fiscal year 2002 and 1.15 pupil units for 
 13.19  fiscal year 2003 and thereafter.  
 13.20     (h) A pupil who is in the post-secondary enrollment options 
 13.21  program is counted as 1.3 pupil units for fiscal year 2002 and 
 13.22  1.15 pupil units for fiscal year 2003 and thereafter.  
 13.23     Sec. 12.  Minnesota Statutes 2000, section 126C.10, 
 13.24  subdivision 1, is amended to read: 
 13.25     Subdivision 1.  [GENERAL EDUCATION REVENUE.] (a) For fiscal 
 13.26  year 2000 and thereafter 2002, the general education revenue for 
 13.27  each district equals the sum of the district's basic revenue, 
 13.28  basic skills revenue, training and experience revenue, secondary 
 13.29  sparsity revenue, elementary sparsity revenue, transportation 
 13.30  sparsity revenue, total operating capital revenue, equity 
 13.31  revenue, referendum offset adjustment, transition revenue, and 
 13.32  supplemental revenue. 
 13.33     (b) For fiscal year 2003 and later, the general education 
 13.34  revenue for each district equals the sum of the district's basic 
 13.35  revenue, basic skills revenue, training and experience revenue, 
 13.36  secondary sparsity revenue, elementary sparsity revenue, 
 14.1   transportation sparsity revenue, total operating capital 
 14.2   revenue, and equity revenue, minus its phased revenue adjustment.
 14.3      Sec. 13.  Minnesota Statutes 2000, section 126C.10, 
 14.4   subdivision 2, is amended to read: 
 14.5      Subd. 2.  [BASIC REVENUE.] The basic revenue for each 
 14.6   district equals the formula allowance times the adjusted 
 14.7   marginal cost pupil units for the school year.  The formula 
 14.8   allowance for fiscal year 1998 is $3,581.  The formula allowance 
 14.9   for fiscal year 1999 is $3,530.  The formula allowance for 
 14.10  fiscal year 2000 is $3,740.  The formula allowance for fiscal 
 14.11  year 2001 and subsequent fiscal years is $3,964.  The formula 
 14.12  allowance for fiscal year 2002 is $4,070.  The formula allowance 
 14.13  for fiscal year 2003 and subsequent years is $5,135. 
 14.14     Sec. 14.  Minnesota Statutes 2000, section 126C.10, 
 14.15  subdivision 3, is amended to read: 
 14.16     Subd. 3.  [COMPENSATORY EDUCATION REVENUE.] For fiscal year 
 14.17  2002, the compensatory education revenue for each building in 
 14.18  the district equals the formula allowance times the compensation 
 14.19  revenue pupil units computed according to section 126C.05, 
 14.20  subdivision 3.  For fiscal year 2003, the compensatory education 
 14.21  revenue for each building in the district equals the formula 
 14.22  allowance minus $808 times the compensation revenue pupil units 
 14.23  computed according to section 126C.05, subdivision 3.  For 
 14.24  fiscal year 2004, the compensatory education revenue for each 
 14.25  building in the district equals the formula allowance minus $703 
 14.26  times the compensation revenue pupil units computed according to 
 14.27  section 126C.05, subdivision 3.  For fiscal year 2005, the 
 14.28  compensatory education revenue for each building in the district 
 14.29  equals the formula allowance minus $598 times the compensation 
 14.30  revenue pupil units computed according to section 126C.05, 
 14.31  subdivision 3.  For fiscal year 2006 and later, the compensatory 
 14.32  education revenue for each building in the district equals the 
 14.33  formula allowance minus $493 times the compensation revenue 
 14.34  pupil units computed according to section 126C.05, subdivision 
 14.35  3.  Revenue shall be paid to the district and must be allocated 
 14.36  according to section 126C.15, subdivision 2. 
 15.1      Sec. 15.  Minnesota Statutes 2000, section 126C.10, 
 15.2   subdivision 4, is amended to read: 
 15.3      Subd. 4.  [BASIC SKILLS REVENUE.] (a) For fiscal year 1999 
 15.4   and thereafter 2002, a school district's basic skills revenue 
 15.5   equals the sum of: 
 15.6      (1) compensatory revenue under subdivision 3; plus 
 15.7      (2) limited English proficiency revenue according to 
 15.8   section 124D.65, subdivision 5; plus 
 15.9      (3) $190 times the limited English proficiency pupil units 
 15.10  according to section 126C.05, subdivision 17; plus 
 15.11     (4) $22.50 times the number of adjusted marginal cost pupil 
 15.12  units in kindergarten to grade 8. 
 15.13     (b) For fiscal year 2003, a school district's basic skills 
 15.14  revenue equals the sum of: 
 15.15     (1) compensatory revenue under subdivision 3; plus 
 15.16     (2) limited English proficiency revenue under section 
 15.17  124D.65, subdivision 5; plus 
 15.18     (3) $190 times the limited English proficiency pupil units 
 15.19  under section 126C.05, subdivision 17. 
 15.20     Sec. 16.  Minnesota Statutes 2000, section 126C.10, 
 15.21  subdivision 5, is amended to read: 
 15.22     Subd. 5.  [TRAINING AND EXPERIENCE REVENUE.] (a) For fiscal 
 15.23  year 2002, the training and experience revenue for each district 
 15.24  equals the greater of zero or the result of the following 
 15.25  computation:  
 15.26     (1) subtract .8 from the training and experience index; 
 15.27     (2) multiply the result in clause (1) by the product of 
 15.28  $660 times the adjusted marginal cost pupil units for the school 
 15.29  year.  
 15.30     (b) For fiscal year 2003, a school district's training and 
 15.31  experience revenue equals the district's fiscal year 2001 
 15.32  training and experience revenue per adjusted marginal cost pupil 
 15.33  unit, times 44.4 percent, times the adjusted marginal cost pupil 
 15.34  units for the school year. 
 15.35     (c) For fiscal year 2004, a school district's training and 
 15.36  experience revenue equals the district's fiscal year 2001 
 16.1   training and experience revenue per adjusted marginal cost pupil 
 16.2   unit, times 22.2 percent, times the adjusted marginal cost pupil 
 16.3   units for the school year. 
 16.4      (d) For fiscal year 2005 and later, a school district's 
 16.5   training and experience revenue equals zero. 
 16.6      Sec. 17.  Minnesota Statutes 2000, section 126C.10, 
 16.7   subdivision 7, is amended to read: 
 16.8      Subd. 7.  [SECONDARY SPARSITY REVENUE.] (a) For fiscal year 
 16.9   2002, a district's secondary sparsity revenue for a school year 
 16.10  equals the sum of the results of the following calculation for 
 16.11  each qualifying high school in the district: 
 16.12     (1) the formula allowance for the school year, multiplied 
 16.13  by 
 16.14     (2) the secondary average daily membership of pupils served 
 16.15  in the high school, multiplied by 
 16.16     (3) the quotient obtained by dividing 400 minus the 
 16.17  secondary average daily membership by 400 plus the secondary 
 16.18  daily membership, multiplied by 
 16.19     (4) the lesser of 1.5 or the quotient obtained by dividing 
 16.20  the isolation index minus 23 by ten. 
 16.21     (b) For fiscal year 2003, a district's secondary sparsity 
 16.22  revenue for a school year equals the sum of the results of the 
 16.23  following calculation for each qualifying high school in the 
 16.24  district: 
 16.25     (1) the formula allowance for the school year minus $808, 
 16.26  multiplied by 
 16.27     (2) the secondary average daily membership of pupils served 
 16.28  in the high school, multiplied by 
 16.29     (3) the quotient obtained by dividing 400 minus the 
 16.30  secondary average daily membership by 400 plus the secondary 
 16.31  daily membership, multiplied by 
 16.32     (4) the lesser of 1.5 or the quotient obtained by dividing 
 16.33  the isolation index minus 23 by ten. 
 16.34     (c) For fiscal year 2004, a district's secondary sparsity 
 16.35  revenue for a school year equals the sum of the results of the 
 16.36  following calculation for each qualifying high school in the 
 17.1   district: 
 17.2      (1) the formula allowance for the school year minus $703, 
 17.3   multiplied by 
 17.4      (2) the secondary average daily membership of pupils served 
 17.5   in the high school, multiplied by 
 17.6      (3) the quotient obtained by dividing 400 minus the 
 17.7   secondary average daily membership, multiplied by 
 17.8      (4) the lesser of 1.5 or the quotient obtained by dividing 
 17.9   the isolation index minus 23 by ten. 
 17.10     (d) For fiscal year 2005, a district's secondary sparsity 
 17.11  revenue for a school year equals the sum of the results of the 
 17.12  following calculation for each qualifying high school in the 
 17.13  district: 
 17.14     (1) the formula allowance for the school year minus $598, 
 17.15  multiplied by 
 17.16     (2) the secondary average daily membership of pupils served 
 17.17  in the high school, multiplied by 
 17.18     (3) the quotient obtained by dividing 400 minus the 
 17.19  secondary average daily membership, multiplied by 
 17.20     (4) the lesser of 1.5 or the quotient obtained by dividing 
 17.21  the isolation index minus 23 by ten. 
 17.22     (e) For fiscal year 2006 and later, a district's secondary 
 17.23  sparsity revenue for a school year equals the sum of the results 
 17.24  of the following calculation for each qualifying high school in 
 17.25  the district: 
 17.26     (1) the formula allowance for the school year minus $493, 
 17.27  multiplied by 
 17.28     (2) the secondary average daily membership of pupils served 
 17.29  in the high school, multiplied by 
 17.30     (3) the quotient obtained by dividing 400 minus the 
 17.31  secondary average daily membership, multiplied by 
 17.32     (4) the lesser of 1.5 or the quotient obtained by dividing 
 17.33  the isolation index minus 23 by ten. 
 17.34     (f) A newly formed district that is the result of districts 
 17.35  combining under the cooperation and combination program or 
 17.36  consolidating under section 123A.48 must receive secondary 
 18.1   sparsity revenue equal to the greater of:  (1) the amount 
 18.2   calculated under paragraph (a) for the combined district; or (2) 
 18.3   the sum of the amounts of secondary sparsity revenue the former 
 18.4   districts had in the year prior to consolidation, increased for 
 18.5   any subsequent changes in the secondary sparsity formula. 
 18.6      Sec. 18.  Minnesota Statutes 2000, section 126C.10, 
 18.7   subdivision 8, is amended to read: 
 18.8      Subd. 8.  [ELEMENTARY SPARSITY REVENUE.] (a) For fiscal 
 18.9   year 2002, a district's elementary sparsity revenue equals the 
 18.10  sum of the following amounts for each qualifying elementary 
 18.11  school in the district:  
 18.12     (1) the formula allowance for the year, multiplied by 
 18.13     (2) the elementary average daily membership of pupils 
 18.14  served in the school, multiplied by 
 18.15     (3) the quotient obtained by dividing 140 minus the 
 18.16  elementary average daily membership by 140 plus the average 
 18.17  daily membership. 
 18.18     (b) For fiscal year 2003, a district's elementary sparsity 
 18.19  revenue equals the sum of the following amounts for each 
 18.20  qualifying elementary school in the district: 
 18.21     (1) the formula allowance for the year minus $808, 
 18.22  multiplied by 
 18.23     (2) the elementary average daily membership of pupils 
 18.24  served in the school, multiplied by 
 18.25     (3) the quotient obtained by dividing 140 minus the 
 18.26  elementary average daily membership by 140 plus the average 
 18.27  daily membership. 
 18.28     (c) For fiscal year 2004, a district's elementary sparsity 
 18.29  revenue equals the sum of the following amounts for each 
 18.30  qualifying elementary school in the district: 
 18.31     (1) the formula allowance for the year minus $703, 
 18.32  multiplied by 
 18.33     (2) the elementary average daily membership of pupils 
 18.34  served in the school, multiplied by 
 18.35     (3) the quotient obtained by dividing 140 minus the 
 18.36  elementary average daily membership by 140 plus the average 
 19.1   daily membership. 
 19.2      (d) For fiscal year 2005, a district's elementary sparsity 
 19.3   revenue equals the sum of the following amounts for each 
 19.4   qualifying elementary school in the district: 
 19.5      (1) the formula allowance for the year minus $598, 
 19.6   multiplied by 
 19.7      (2) the elementary average daily membership of pupils 
 19.8   served in the school, multiplied by 
 19.9      (3) the quotient obtained by dividing 140 minus the 
 19.10  elementary average daily membership by 140 plus the average 
 19.11  daily membership. 
 19.12     (e) For fiscal year 2006 and later, a district's elementary 
 19.13  sparsity revenue equals the sum of the following amounts for 
 19.14  each qualifying elementary school in the district: 
 19.15     (1) the formula allowance for the year minus $493, 
 19.16  multiplied by 
 19.17     (2) the elementary average daily membership of pupils 
 19.18  served in the school, multiplied by 
 19.19     (3) the quotient obtained by dividing 140 minus the 
 19.20  elementary average daily membership by 140 plus the average 
 19.21  daily membership. 
 19.22     Sec. 19.  Minnesota Statutes 2000, section 126C.10, 
 19.23  subdivision 13, is amended to read: 
 19.24     Subd. 13.  [TOTAL OPERATING CAPITAL REVENUE.] (a) For 
 19.25  fiscal year 2000 and thereafter 2002, total operating capital 
 19.26  revenue for a district equals the amount determined under 
 19.27  paragraph (b) or (c) (e), plus $73 times the adjusted marginal 
 19.28  cost pupil units for the school year.  The revenue must be 
 19.29  placed in a reserved account in the general fund and may only be 
 19.30  used according to paragraph (d) (f) or subdivision 14. 
 19.31     (b) For fiscal years 2000 and later year 2002, capital 
 19.32  revenue for a district equals $100 times the district's 
 19.33  maintenance cost index times its adjusted marginal cost pupil 
 19.34  units for the school year. 
 19.35     (c) For fiscal year 2003 and later, total operating capital 
 19.36  revenue for a district equals the amount determined under 
 20.1   paragraph (b) or (e), plus $81 times the adjusted marginal cost 
 20.2   pupil units for the school year.  The revenue must be placed in 
 20.3   a reserved account in the general fund and may only be used 
 20.4   according to paragraph (f) or subdivision 14. 
 20.5      (d) For fiscal year 2003 and later, capital revenue for a 
 20.6   district equals $111 times the district's maintenance cost index 
 20.7   times its adjusted marginal cost pupil units for the school year.
 20.8      (e) For fiscal years 2000 and later, the revenue for a 
 20.9   district that operates a program under section 124D.128, is 
 20.10  increased by an amount equal to $30 times the number of marginal 
 20.11  cost pupil units served at the site where the program is 
 20.12  implemented. 
 20.13     (d) (f) For fiscal years 2001 and, 2002, and 2003, the 
 20.14  district must reserve an amount equal to $5 per adjusted 
 20.15  marginal cost pupil unit for telecommunication access costs.  
 20.16  Reserve revenue under this paragraph must first be used to pay 
 20.17  for ongoing or recurring telecommunication access costs, 
 20.18  including access to data lines, and video lines 
 20.19  connections, or including Internet access.  Any revenue 
 20.20  remaining after covering all ongoing or recurring access costs 
 20.21  may be used for computer hardware or equipment. 
 20.22     Sec. 20.  Minnesota Statutes 2000, section 126C.10, 
 20.23  subdivision 18, is amended to read: 
 20.24     Subd. 18.  [TRANSPORTATION SPARSITY REVENUE ALLOWANCE.] (a) 
 20.25  For fiscal year 2002, a district's transportation sparsity 
 20.26  allowance equals the greater of zero or the result of the 
 20.27  following computation: 
 20.28     (i) Multiply the formula allowance according to subdivision 
 20.29  2, by .1469. 
 20.30     (ii) Multiply the result in clause (i) by the district's 
 20.31  sparsity index raised to the 26/100 power. 
 20.32     (iii) Multiply the result in clause (ii) by the district's 
 20.33  density index raised to the 13/100 power. 
 20.34     (iv) Multiply the formula allowance according to 
 20.35  subdivision 2, by .0485. 
 20.36     (v) Subtract the result in clause (iv) from the result in 
 21.1   clause (iii). 
 21.2      (b) For fiscal year 2003 and later, a district's 
 21.3   transportation sparsity allowance equals the greater of zero or 
 21.4   the result of the following computation: 
 21.5      (i) Multiply the formula allowance according to subdivision 
 21.6   2, by .14. 
 21.7      (ii) Multiply the result in clause (i) by the district's 
 21.8   sparsity index raised to the 28/100 power. 
 21.9      (iii) Multiply the result in clause (ii) by the district's 
 21.10  density index raised to the 14/100 power. 
 21.11     (iv) Multiply the formula allowance according to 
 21.12  subdivision 2, by .0425. 
 21.13     (v) Subtract the result in clause (iv) from the result in 
 21.14  clause (iii). 
 21.15     (c) Transportation sparsity revenue is equal to the 
 21.16  transportation sparsity allowance times the adjusted marginal 
 21.17  cost pupil units. 
 21.18     Sec. 21.  Minnesota Statutes 2000, section 126C.10, 
 21.19  subdivision 24, is amended to read: 
 21.20     Subd. 24.  [EQUITY REVENUE QUALIFICATION.] (a) For fiscal 
 21.21  year 2002, a school district qualifies for equity revenue if the 
 21.22  school district's adjusted marginal cost pupil unit amount of 
 21.23  basic revenue, supplemental revenue, transition revenue, and 
 21.24  referendum revenue is less than the value of the school district 
 21.25  at or immediately above the 90th percentile of school districts 
 21.26  in its equity region for those revenue categories and the school 
 21.27  district's administrative offices are not located in a city of 
 21.28  the first class on July 1, 1999. 
 21.29     (b) Equity revenue for a qualifying district that receives 
 21.30  referendum revenue under section 126C.17, subdivision 4, equals 
 21.31  the product of (1) the district's adjusted marginal cost pupil 
 21.32  units for that year; times (2) the sum of (i) $10, plus (ii) 
 21.33  $30, times the school district's equity index computed under 
 21.34  subdivision 27. 
 21.35     (c) Equity revenue for a qualifying district that does not 
 21.36  receive referendum revenue under section 126C.17, subdivision 4, 
 22.1   equals the product of the district's adjusted marginal cost 
 22.2   pupil units for that year times $10 For fiscal year 2003 and 
 22.3   thereafter, a school district qualifies for equity revenue if 
 22.4   the school district's adjusted marginal cost pupil unit amount 
 22.5   of basic revenue and referendum revenue is less than the value 
 22.6   of the school district at or immediately above the 90th 
 22.7   percentile of school districts in its equity region for those 
 22.8   revenue categories and the school district's administrative 
 22.9   offices were not located in a city of the first class on July 1, 
 22.10  1999. 
 22.11     Sec. 22.  Minnesota Statutes 2000, section 126C.10, is 
 22.12  amended by adding a subdivision to read: 
 22.13     Subd. 24a.  [METRO EQUITY REVENUE.] (a) For fiscal year 
 22.14  2002, equity revenue for a qualifying district located in the 
 22.15  metro equity region that receives referendum revenue under 
 22.16  section 126C.17, subdivision 4, equals the product of: 
 22.17     (1) the district's adjusted marginal cost pupil units for 
 22.18  that year; times 
 22.19     (2) the sum of: 
 22.20     (i) $20, plus 
 22.21     (ii) $60, times the school district's equity index computed 
 22.22  under subdivision 27. 
 22.23     (b) For fiscal year 2003 and thereafter, equity revenue for 
 22.24  a qualifying district located in the metro equity region that 
 22.25  receives referendum revenue under section 126C.17, subdivision 
 22.26  4, in fiscal year 2002 or has a board-approved referendum under 
 22.27  section 126C.18, subdivision 5, equals the product of: 
 22.28     (1) the district's adjusted marginal cost pupil units for 
 22.29  that year; times 
 22.30     (2) the sum of: 
 22.31     (i) $30, plus 
 22.32     (ii) $90, times the school district's equity index computed 
 22.33  under subdivision 27. 
 22.34     (c) For fiscal year 2002, equity revenue for a qualifying 
 22.35  district located in the metro equity region that does not 
 22.36  receive referendum revenue under section 126C.17, subdivision 4, 
 23.1   equals the product of the district's adjusted marginal cost 
 23.2   pupil units for that year times $20. 
 23.3      (d) For fiscal year 2003 and thereafter, equity revenue for 
 23.4   a qualifying district located in the metro equity region that 
 23.5   did not receive referendum revenue in fiscal year 2002 under 
 23.6   section 126C.17, subdivision 4, and does not have a 
 23.7   board-approved referendum under section 126C.18, subdivision 5, 
 23.8   equals the product of the district's adjusted marginal cost 
 23.9   pupil units for that year times $30. 
 23.10     Sec. 23.  Minnesota Statutes 2000, section 126C.10, is 
 23.11  amended by adding a subdivision to read: 
 23.12     Subd. 24b.  [GREATER MINNESOTA EQUITY REVENUE.] (a) For 
 23.13  fiscal year 2002, equity revenue for a qualifying district 
 23.14  located in the greater Minnesota equity region that receives 
 23.15  referendum revenue under section 126C.17, subdivision 4, equals 
 23.16  the product of: 
 23.17     (1) the district's adjusted marginal cost pupil units for 
 23.18  that year; times 
 23.19     (2) the sum of: 
 23.20     (i) $13, plus 
 23.21     (ii) $39, times the school district's equity index computed 
 23.22  under subdivision 27. 
 23.23     (b) For fiscal year 2003 and thereafter, equity revenue for 
 23.24  a qualifying district located in the greater Minnesota equity 
 23.25  region that receives referendum revenue in fiscal year 2002 
 23.26  under section 126C.17, subdivision 4, or has a board-approved 
 23.27  referendum under section 126C.18, subdivision 5, equals the 
 23.28  product of: 
 23.29     (1) the district's adjusted marginal cost pupil units for 
 23.30  that year; times 
 23.31     (2) the sum of: 
 23.32     (i) $14, plus 
 23.33     (ii) $42, times the school district's equity index computed 
 23.34  under subdivision 27. 
 23.35     (c) For fiscal year 2002, equity revenue for a qualifying 
 23.36  district located in the greater Minnesota equity region that 
 24.1   does not receive referendum revenue under section 126C.17, 
 24.2   subdivision 4, equals the product of the district's adjusted 
 24.3   marginal cost pupil units for that year times $13. 
 24.4      (d) For fiscal year 2003, equity revenue for a qualifying 
 24.5   district located in the greater Minnesota equity region that did 
 24.6   not receive referendum revenue in fiscal year 2002 under section 
 24.7   126C.17, subdivision 4, and does not have a board-approved 
 24.8   referendum under section 126C.18, subdivision 5, equals the 
 24.9   product of the district's adjusted marginal cost pupil units for 
 24.10  that year times $14. 
 24.11     Sec. 24.  Minnesota Statutes 2000, section 126C.10, 
 24.12  subdivision 28, is amended to read: 
 24.13     Subd. 28.  [EQUITY REGION.] For the purposes of computing 
 24.14  equity revenue under subdivision 23, a district whose 
 24.15  administrative offices on July 1, 1999, is located in Anoka, 
 24.16  Carver, Dakota, Hennepin, Ramsey, Scott, or Washington county is 
 24.17  part of the metro equity region.  Districts whose administrative 
 24.18  offices on July 1, 1999, are not located in Anoka, Carver, 
 24.19  Dakota, Hennepin, Ramsey, Scott, or Washington county are part 
 24.20  of the rural greater Minnesota equity region. 
 24.21     Sec. 25.  Minnesota Statutes 2000, section 126C.10, is 
 24.22  amended by adding a subdivision to read: 
 24.23     Subd. 29.  [PHASED REVENUE ALLOWANCE.] (a) If the sum of a 
 24.24  district's fiscal year 2003 initial referendum allowance plus 
 24.25  its referendum conversion allowance is less than $461 and the 
 24.26  district is not part of the metro equity region under 
 24.27  subdivision 28, the district shall receive a phased revenue 
 24.28  allowance. 
 24.29     (b) For fiscal year 2003, a district's phased revenue 
 24.30  allowance is equal to $461 minus the sum of a district's fiscal 
 24.31  year 2003 initial referendum allowance, plus its fiscal year 
 24.32  referendum conversion allowance, times 75 percent.  
 24.33     (c) For fiscal year 2004, a district's phased revenue 
 24.34  allowance is equal to $461 minus the sum of a district's fiscal 
 24.35  year 2003 initial referendum allowance, plus its referendum 
 24.36  conversion allowance, times 50 percent. 
 25.1      (d) For fiscal year 2005, a district's phased revenue 
 25.2   allowance is equal to $461 minus the sum of a district's fiscal 
 25.3   year 2003 initial referendum allowance, plus its referendum 
 25.4   conversion allowance, times 25 percent. 
 25.5      (e) For fiscal year 2006 and later, a district's phased 
 25.6   revenue allowance is equal to zero. 
 25.7      <b>[EFFECTIVE DATE.]</b> This section is effective for revenue for 
 25.8   fiscal year 2003 and later.  
 25.9      Sec. 26.  Minnesota Statutes 2000, section 126C.10, is 
 25.10  amended by adding a subdivision to read: 
 25.11     Subd. 30.  [PHASED REVENUE ADJUSTMENT.] For fiscal years 
 25.12  2003, 2004, and 2005, a school district's phased revenue 
 25.13  adjustment is equal to its phased revenue allowance for that 
 25.14  year multiplied by its adjusted marginal cost pupil units.  
 25.15     <b>[EFFECTIVE DATE.]</b> This section is effective for revenue for 
 25.16  fiscal year 2003 and later.  
 25.17     Sec. 27.  Minnesota Statutes 2000, section 126C.12, 
 25.18  subdivision 1, is amended to read: 
 25.19     Subdivision 1.  [REVENUE.] (a) Of a district's general 
 25.20  education revenue for fiscal year 2000 and thereafter 2002 each 
 25.21  school district shall reserve an amount equal to the formula 
 25.22  allowance multiplied by the following calculation: 
 25.23     (1) the sum of adjusted marginal cost pupils in average 
 25.24  daily membership, according to section 126C.05, subdivision 5, 
 25.25  in kindergarten times .057; plus 
 25.26     (2) the sum of adjusted marginal cost pupils in average 
 25.27  daily membership, according to section 126C.05, subdivision 5, 
 25.28  in grades 1 to 3 times .115; plus 
 25.29     (3) the sum of adjusted marginal cost pupils in average 
 25.30  daily membership, according to section 126C.05, subdivision 5, 
 25.31  in grades 4 to 6 times .06. 
 25.32     (b) Of a district's general education revenue for fiscal 
 25.33  year 2003 and later, each school district shall reserve an 
 25.34  amount equal to: 
 25.35     (1) the product of the formula allowance; times 
 25.36     (2) six percent; times 
 26.1      (3) the sum of adjusted marginal cost pupil units according 
 26.2   to section 126C.05, subdivision 5, in kindergarten through grade 
 26.3   6. 
 26.4      Sec. 28.  Minnesota Statutes 2000, section 126C.12, 
 26.5   subdivision 2, is amended to read: 
 26.6      Subd. 2.  [INSTRUCTOR DEFINED DEFINITIONS.] Primary 
 26.7   instructor (a) "Classroom teacher" means, for the purpose of the 
 26.8   annual report in subdivision 6, for collecting consistent state 
 26.9   data, and for determining the cost of reducing actual class size 
 26.10  to a level of 1 to 17, a public employee licensed by the board 
 26.11  of teaching who is authorized to teach all subjects to children 
 26.12  in any grade kindergarten through grade 6 and whose duties are 
 26.13  full-time regular classroom instruction, excluding a teacher for 
 26.14  whom federal aids are received or for whom categorical aids are 
 26.15  received pursuant to section 125A.76 or who is an itinerant 
 26.16  teacher or provides instruction outside of the regular 
 26.17  classroom.  Except as provided in section 122A.68, subdivision 
 26.18  6, instructor classroom teacher does not include supervisory and 
 26.19  support personnel, except school social workers as defined in 
 26.20  section 122A.15.  An instructor A classroom teacher whose duties 
 26.21  are less than full-time instruction must be included as an 
 26.22  equivalent only for the number of hours of instruction in grades 
 26.23  kindergarten through 6 grade 3.  
 26.24     (b) "Class size" means the district wide ratio at each 
 26.25  grade level of the number of full-time students in kindergarten 
 26.26  through grade 3 served at least 40 percent of the time in 
 26.27  regular classrooms to the number of full-time classroom teachers 
 26.28  in kindergarten through grade 3, determined as of October 1 of 
 26.29  each school year. 
 26.30     Sec. 29.  Minnesota Statutes 2000, section 126C.12, 
 26.31  subdivision 3, is amended to read: 
 26.32     Subd. 3.  [INSTRUCTION CONTACT TIME.] Instruction may be 
 26.33  provided by a primary instructor, classroom teacher or by a team 
 26.34  of instructors classroom teachers, or by a teacher resident 
 26.35  supervised by a primary instructor classroom teacher.  The 
 26.36  district must maximize instructor classroom teacher to learner 
 27.1   average instructional contact time in the core subjects of 
 27.2   reading and mathematics. 
 27.3      Sec. 30.  Minnesota Statutes 2000, section 126C.12, 
 27.4   subdivision 4, is amended to read: 
 27.5      Subd. 4.  [REVENUE USE.] (a) Revenue must be used according 
 27.6   to either paragraph (b) or (c). 
 27.7      (b) Revenue must be used to reduce and maintain the 
 27.8   district's instructor to learner ratios average class size in 
 27.9   kindergarten through grade 6 3 to a level of 1 to 17 on 
 27.10  average.  The district must prioritize the use of the revenue to 
 27.11  attain this level initially in kindergarten and grade 1 and then 
 27.12  through the subsequent grades as revenue is available.  
 27.13     (c) The revenue may be used to prepare and use an 
 27.14  individualized learning plan for each learner.  (b) A district 
 27.15  must not increase the district wide instructor-to-learner ratios 
 27.16  class sizes in other grades as a result of 
 27.17  reducing instructor-to-learner ratios class sizes in 
 27.18  kindergarten through grade 6 3.  Revenue may not be used to 
 27.19  provide instructor preparation time.  A district may use a 
 27.20  portion of the revenue reserved under this section to employ up 
 27.21  to the same number of full-time equivalent education assistants 
 27.22  or aides as the district employed during the 1992-1993 school 
 27.23  year under Minnesota Statutes 1992, section 124.331, subdivision 
 27.24  2 through fiscal year 2002.  Beginning in fiscal year 2003, 
 27.25  class size reduction revenue may only be reserved to employ 
 27.26  classroom teachers contributing to lower class sizes in 
 27.27  kindergarten through grade 3. 
 27.28     Sec. 31.  Minnesota Statutes 2000, section 126C.12, 
 27.29  subdivision 5, is amended to read: 
 27.30     Subd. 5.  [ADDITIONAL REVENUE USE.] If the board of a 
 27.31  district determines that the district has achieved and is 
 27.32  maintaining the instructor-to-learner ratios class sizes 
 27.33  specified in subdivision 4 and is using individualized learning 
 27.34  plans, the board may use the revenue to reduce class size in 
 27.35  grades 4, 5, and 6, provide all-day, everyday kindergarten, 
 27.36  prepare and use individualized learning plans, improve program 
 28.1   offerings, purchase instructional material and, services, or 
 28.2   technology, or provide staff development needed for reduced 
 28.3   instructor-to-learner ratios.  If additional revenue remains, 
 28.4   the district must use the revenue to improve program offerings, 
 28.5   including programs provided through interactive television, 
 28.6   throughout the district or other general education 
 28.7   purposes class sizes. 
 28.8      Sec. 32.  Minnesota Statutes 2000, section 126C.12, is 
 28.9   amended by adding a subdivision to read: 
 28.10     Subd. 6.  [ANNUAL REPORT.] By December 1 of each year, 
 28.11  districts receiving revenue under subdivision 1 shall make 
 28.12  available to the public a report on the amount of revenue the 
 28.13  district has received and the use of the revenue.  This report 
 28.14  shall be in the form and manner determined by the commissioner 
 28.15  and shall include the district average class sizes in 
 28.16  kindergarten through grade 6 as of October 1 of the current 
 28.17  school year and the class sizes for each site serving 
 28.18  kindergarten through grade 6 students in the district.  A copy 
 28.19  of the report shall be filed with the commissioner by December 
 28.20  15. 
 28.21     Sec. 33.  Minnesota Statutes 2000, section 126C.125, is 
 28.22  amended to read: 
 28.23     126C.125 [CLASS SIZE, ALL-DAY KINDERGARTEN, AND SPECIAL 
 28.24  EDUCATION STUDENT-TO-INSTRUCTOR RATIO, AND GIFTED AND TALENTED 
 28.25  RESERVE.] 
 28.26     (a) A district is required to reserve $3 in fiscal year 
 28.27  2000 and $11 in fiscal year 2001 and later per adjusted marginal 
 28.28  cost pupil unit for class size reduction, all-day kindergarten, 
 28.29  or for reducing special education student-to-instructor ratios.  
 28.30  The school board of each district must pass a resolution stating 
 28.31  which one of these three programs will be funded with this 
 28.32  reserve.  The reserve amount under this section must be 
 28.33  allocated to the education site as defined in section 123B.04, 
 28.34  subdivision 1, according to a plan adopted by the school board. 
 28.35     (b) A district is required to reserve $5 in fiscal year 
 28.36  2002 and later per adjusted marginal cost pupil unit for gifted 
 29.1   and talented programs. 
 29.2      Sec. 34.  [126C.126] [REALLOCATING GENERAL EDUCATION 
 29.3   REVENUE FOR ALL-DAY KINDERGARTEN.] 
 29.4      (a) In order to provide additional revenue for an optional 
 29.5   all-day kindergarten program, a district may reallocate general 
 29.6   education revenue attributable to 12th grade students who have: 
 29.7      (1) graduated early under section 120B.07; or 
 29.8      (2) adopted a policy to allow 12th grade students to attend 
 29.9   school half time. 
 29.10     (b) General education revenue attributable to the 12th 
 29.11  grade student either graduating early or attending school half 
 29.12  time under paragraph (a) must be paid to the district as though 
 29.13  the student was in attendance for the entire year. 
 29.14     (c) A school district that has adopted a policy to allow 
 29.15  12th grade students to attend school half time must notify the 
 29.16  commissioner by July 15 for the following school year. 
 29.17     <b>[EFFECTIVE DATE.]</b> This section is effective for fiscal year 
 29.18  2003 and later. 
 29.19     Sec. 35.  Minnesota Statutes 2000, section 126C.13, 
 29.20  subdivision 1, is amended to read: 
 29.21     Subdivision 1.  [GENERAL EDUCATION TAX RATE.] The 
 29.22  commissioner must establish the general education tax rate by 
 29.23  July 1 of each year for levies payable in the following year.  
 29.24  The general education tax capacity rate must be a rate, rounded 
 29.25  up to the nearest hundredth of a percent, that, when applied to 
 29.26  the adjusted net tax capacity for all districts, raises the 
 29.27  amount specified in this subdivision.  The general education tax 
 29.28  rate must be the rate that raises $1,330,000,000 for fiscal year 
 29.29  2001 and fiscal year 2002, and $1,533,000,000 for fiscal year 
 29.30  2003, and later fiscal years.  The general education tax rate 
 29.31  may not be changed due to changes or corrections made to a 
 29.32  district's adjusted net tax capacity after the tax rate has been 
 29.33  established.  
 29.34     Sec. 36.  Minnesota Statutes 2000, section 126C.15, 
 29.35  subdivision 2, is amended to read: 
 29.36     Subd. 2.  [BUILDING ALLOCATION.] (a) A district must 
 30.1   allocate its compensatory revenue to each school building in the 
 30.2   district where the children who have generated the revenue are 
 30.3   served. 
 30.4      (b) Notwithstanding paragraph (a), for fiscal years 1999, 
 30.5   2000, and 2001, 2002, and 2003, upon approval by the 
 30.6   commissioner, a district may allocate up to five percent of the 
 30.7   amount of compensatory revenue that the district would have 
 30.8   received under Minnesota Statutes 1996, section 124A.22, 
 30.9   subdivision 3, for fiscal year 1998, computed using a basic 
 30.10  formula allowance of $3,581 to school sites according to a plan 
 30.11  adopted by the school board. 
 30.12     (c) For the purposes of this section and section 126C.05, 
 30.13  subdivision 3, "building" means education site as defined in 
 30.14  section 123B.04, subdivision 1. 
 30.15     (d) If the pupil is served at a site other than one owned 
 30.16  and operated by the district, the revenue shall be paid to the 
 30.17  district and used for services for pupils who generate the 
 30.18  revenue. 
 30.19     Sec. 37.  Minnesota Statutes 2000, section 126C.16, is 
 30.20  amended by adding a subdivision to read: 
 30.21     Subd. 4.  [PUPIL WEIGHTING ADJUSTMENT.] (a) The department 
 30.22  must adjust each district's referendum allowance for referendum 
 30.23  authority approved before July 1, 2001, for fiscal year 2003 and 
 30.24  all later years for which the revenue is authorized according to 
 30.25  this subdivision.  The adjusted referendum allowance equals the 
 30.26  referendum allowance according to subdivision 3 and section 
 30.27  126C.17, times the ratio of the number of resident marginal cost 
 30.28  pupil units the district would have counted for fiscal year 2003 
 30.29  under Minnesota Statutes 2000, section 126C.05, subdivision 6, 
 30.30  to the district's resident marginal cost pupil units for fiscal 
 30.31  year 2003. 
 30.32     (b) For fiscal year 2003 and later, the department must 
 30.33  adjust the fiscal year 1994 referendum allowance used in 
 30.34  computing the referendum allowance limit under section 126C.17, 
 30.35  subdivision 2, according to this subdivision.  The adjusted 
 30.36  fiscal year 1994 referendum allowance for a district equals the 
 31.1   district's fiscal year 1994 referendum allowance times the ratio 
 31.2   of the number of resident marginal cost pupil units the district 
 31.3   would have counted for fiscal year 2003 under Minnesota Statutes 
 31.4   2000, section 126C.05, subdivision 6, to the district's resident 
 31.5   marginal cost pupil units for fiscal year 2003. 
 31.6      Sec. 38.  Minnesota Statutes 2000, section 126C.17, 
 31.7   subdivision 1, is amended to read: 
 31.8      Subdivision 1.  [REFERENDUM ALLOWANCE.] (a) For fiscal year 
 31.9   2002, a district's referendum revenue allowance equals 
 31.10  the referendum revenue authority for that year divided by its 
 31.11  resident marginal cost pupil units for that school year. sum of 
 31.12  the allowance under section 126C.16, subdivision 2, plus any 
 31.13  additional allowance per resident marginal cost pupil unit 
 31.14  authorized under subdivision 9 for fiscal year 2002. 
 31.15     (b) For fiscal year 2003 and later, a district's initial 
 31.16  referendum revenue allowance equals the sum of the allowance 
 31.17  under section 126C.16, subdivision 2, plus any additional 
 31.18  allowance per resident marginal cost pupil unit authorized under 
 31.19  subdivision 9 before May 1, 2001, for fiscal year 2002 and 
 31.20  later, plus the referendum conversion allowance approved under 
 31.21  subdivision 13, minus $461.  For districts with more than one 
 31.22  referendum authority, the reduction must be computed separately 
 31.23  for each authority.  The reduction must be applied first to the 
 31.24  referendum conversion allowance and next to the authority with 
 31.25  the earliest expiration date.  A district's initial referendum 
 31.26  revenue allowance may not be less than zero. 
 31.27     (c) For fiscal year 2003 and later, a district's referendum 
 31.28  revenue allowance equals the initial referendum allowance plus 
 31.29  any additional allowance per resident marginal cost pupil unit 
 31.30  authorized under subdivision 9 after April 30, 2001, for fiscal 
 31.31  year 2003 and later. 
 31.32     Sec. 39.  Minnesota Statutes 2000, section 126C.17, 
 31.33  subdivision 2, is amended to read: 
 31.34     Subd. 2.  [REFERENDUM ALLOWANCE LIMIT.] (a) Notwithstanding 
 31.35  subdivision 1, for fiscal year 2002, a district's referendum 
 31.36  allowance must not exceed the greater of:  
 32.1      (1) the district's referendum allowance for fiscal year 
 32.2   1994; 
 32.3      (2) 25 percent of the formula allowance; or 
 32.4      (3) for a newly reorganized district created after July 1, 
 32.5   1994, the sum of the referendum revenue authority for the 
 32.6   reorganizing districts for the fiscal year preceding the 
 32.7   reorganization, divided by the sum of the resident marginal cost 
 32.8   pupil units of the reorganizing districts for the fiscal year 
 32.9   preceding the reorganization. 
 32.10     (b) Notwithstanding subdivision 1, for fiscal year 2003 and 
 32.11  later fiscal years, a district's referendum allowance must not 
 32.12  exceed the greater of: 
 32.13     (1) the sum of a district's referendum allowance for fiscal 
 32.14  year 1994 plus its referendum conversion allowance for fiscal 
 32.15  year 2003, minus $461; 
 32.16     (2) 13.2 percent of the formula allowance; 
 32.17     (3) for a newly reorganized district created on July 1, 
 32.18  2002, the referendum revenue authority for each reorganizing 
 32.19  district in the year preceding reorganization divided by its 
 32.20  resident marginal cost pupil units for the year preceding 
 32.21  reorganization, minus $461; or 
 32.22     (4) for a newly reorganized district created after July 1, 
 32.23  2002, the referendum revenue authority for each reorganizing 
 32.24  district in the year preceding reorganization divided by its 
 32.25  resident marginal cost pupil units for the year preceding 
 32.26  reorganization. 
 32.27     Sec. 40.  Minnesota Statutes 2000, section 126C.17, 
 32.28  subdivision 5, is amended to read: 
 32.29     Subd. 5.  [REFERENDUM EQUALIZATION REVENUE.] (a) A 
 32.30  district's referendum equalization revenue equals the referendum 
 32.31  equalization allowance times the district's resident marginal 
 32.32  cost pupil units for that year.  
 32.33     (b) The referendum equalization allowance equals $350 for 
 32.34  fiscal year 2000 and, $415 for fiscal year years 2001 and 
 32.35  2002, and $150 for fiscal year 2003 and later. 
 32.36     (c) Referendum equalization revenue must not exceed a 
 33.1   district's total referendum revenue for that year. 
 33.2      Sec. 41.  Minnesota Statutes 2000, section 126C.17, 
 33.3   subdivision 6, is amended to read: 
 33.4      Subd. 6.  [REFERENDUM EQUALIZATION LEVY.] (a) A district's 
 33.5   referendum equalization levy for a referendum levied against the 
 33.6   referendum market value of all taxable property as defined in 
 33.7   section 126C.01, subdivision 3, equals the district's referendum 
 33.8   equalization revenue times the lesser of one or the ratio of the 
 33.9   district's referendum market value per resident marginal cost 
 33.10  pupil unit to $476,000 $528,000. 
 33.11     (b) A district's referendum equalization levy for a 
 33.12  referendum levied against the net tax capacity of all taxable 
 33.13  property equals the district's referendum equalization revenue 
 33.14  times the lesser of one or the ratio of the district's adjusted 
 33.15  net tax capacity per resident marginal cost pupil unit to $8,404.
 33.16     <b>[EFFECTIVE DATE.]</b> This section is effective for revenue for 
 33.17  fiscal year 2003 and later. 
 33.18     Sec. 42.  Minnesota Statutes 2000, section 126C.17, is 
 33.19  amended by adding a subdivision to read: 
 33.20     Subd. 13.  [REFERENDUM CONVERSION ALLOWANCE.] A school 
 33.21  district that received supplemental or transition revenue in 
 33.22  fiscal year 2002 may convert its supplemental revenue conversion 
 33.23  allowance and transition revenue conversion allowance to 
 33.24  additional referendum allowance under subdivision 1 for fiscal 
 33.25  year 2003 and thereafter.  A majority of the school board must 
 33.26  approve the conversion at a public meeting before November 1, 
 33.27  2001.  For a district with other referendum authority, the 
 33.28  referendum conversion allowance approved by the board continues 
 33.29  until the portion of the district's other referendum authority 
 33.30  with the earliest expiration date after June 30, 2006, expires.  
 33.31  For a district with no other referendum authority, the 
 33.32  referendum conversion allowance approved by the board continues 
 33.33  until June 30, 2012. 
 33.34     Sec. 43.  Minnesota Statutes 2000, section 126C.18, is 
 33.35  amended by adding a subdivision to read: 
 33.36     Subd. 5.  [BOARD AUTHORITY.] For a district that does not 
 34.1   receive referendum revenue under section 126C.17, subdivision 4, 
 34.2   a board may, by July 1, by a resolution of a majority of its 
 34.3   board, authorize a referendum allowance according to section 
 34.4   126C.17, subdivision 1, for fiscal year 2003 and thereafter, of 
 34.5   at least $50, but no more than $75.  The board-approved 
 34.6   referendum allowance under this subdivision shall be levied and 
 34.7   paid according to section 126C.17.  The board must notify the 
 34.8   commissioner of any amount authorized by the board.  The maximum 
 34.9   length of the referendum in this subdivision is limited to six 
 34.10  years. 
 34.11     <b>[EFFECTIVE DATE.]</b> This section is effective for revenue for 
 34.12  fiscal year 2003. 
 34.13     Sec. 44.  Minnesota Statutes 2000, section 126C.41, 
 34.14  subdivision 2, is amended to read: 
 34.15     Subd. 2.  [RETIRED EMPLOYEE HEALTH BENEFITS.] A district 
 34.16  may levy an amount up to the amount the district is required by 
 34.17  the collective bargaining agreement in effect on March 30, 1992, 
 34.18  to pay for health insurance or unreimbursed medical expenses for 
 34.19  licensed and nonlicensed employees who have terminated services 
 34.20  in the employing district and withdrawn from active teaching 
 34.21  service or other active service, as applicable, before July 1, 
 34.22  1992.  The total amount of the levy each year may not 
 34.23  exceed $300,000 $600,000.  
 34.24     Sec. 45.  Minnesota Statutes 2000, section 127A.51, is 
 34.25  amended to read: 
 34.26     127A.51 [STATEWIDE AVERAGE REVENUE.] 
 34.27     By October 1 of each year the commissioner must estimate 
 34.28  the statewide average adjusted general revenue per adjusted 
 34.29  marginal cost pupil unit and the disparity in adjusted general 
 34.30  revenue among pupils and districts by computing the ratio of the 
 34.31  ninety-fifth percentile to the fifth percentile of adjusted 
 34.32  general revenue.  The commissioner must provide that information 
 34.33  to all districts. 
 34.34     If the disparity in adjusted general revenue as measured by 
 34.35  the ratio of the ninety-fifth percentile to the fifth percentile 
 34.36  increases in any year, the commissioner shall recommend to the 
 35.1   legislature options for change in the general education formula 
 35.2   that will limit the disparity in adjusted general revenue to no 
 35.3   more than the disparity for the previous school year.  The 
 35.4   commissioner must submit the recommended options to the 
 35.5   education committees of the legislature by January 15. 
 35.6      For purposes of this section and section 126C.10, adjusted 
 35.7   general revenue means: 
 35.8      (1) for fiscal year 2002, the sum of basic revenue under 
 35.9   section 126C.10, subdivision 2; supplemental revenue under 
 35.10  section 126C.10, subdivisions 9 and 12; transition revenue under 
 35.11  section 126C.10, subdivision 20; and referendum revenue under 
 35.12  section 126C.17; and equity revenue under section 126C.10, 
 35.13  subdivisions 24a and 24b; and 
 35.14     (2) for fiscal year 2003 and later, the sum of basic 
 35.15  revenue under section 126C.10, subdivision 2; referendum revenue 
 35.16  under section 126C.17; and equity revenue under section 126C.10, 
 35.17  subdivisions 24a and 24b. 
 35.18     Sec. 46.  Minnesota Statutes 2000, section 298.28, 
 35.19  subdivision 4, is amended to read: 
 35.20     Subd. 4.  [SCHOOL DISTRICTS.] (a) 22.28 cents per taxable 
 35.21  ton plus the increase provided in paragraph (d) must be 
 35.22  allocated to qualifying school districts to be distributed, 
 35.23  based upon the certification of the commissioner of revenue, 
 35.24  under paragraphs (b) and (c). 
 35.25     (b) 4.46 cents per taxable ton must be distributed to the 
 35.26  school districts in which the lands from which taconite was 
 35.27  mined or quarried were located or within which the concentrate 
 35.28  was produced.  The distribution must be based on the 
 35.29  apportionment formula prescribed in subdivision 2. 
 35.30     (c)(i) 17.82 cents per taxable ton, less any amount 
 35.31  distributed under paragraph (e), shall be distributed to a group 
 35.32  of school districts comprised of those school districts in which 
 35.33  the taconite was mined or quarried or the concentrate produced 
 35.34  or in which there is a qualifying municipality as defined by 
 35.35  section 273.134 in direct proportion to school district indexes 
 35.36  as follows:  for each school district, its pupil units 
 36.1   determined under section 126C.05 for the prior school year shall 
 36.2   be multiplied by the ratio of the average adjusted net tax 
 36.3   capacity per pupil unit for school districts receiving aid under 
 36.4   this clause as calculated pursuant to chapters 122A, 126C, and 
 36.5   127A for the school year ending prior to distribution to the 
 36.6   adjusted net tax capacity per pupil unit of the district.  Each 
 36.7   district shall receive that portion of the distribution which 
 36.8   its index bears to the sum of the indices for all school 
 36.9   districts that receive the distributions.  
 36.10     (ii) Notwithstanding clause (i), each school district that 
 36.11  receives a distribution under sections 298.018; 298.23 to 
 36.12  298.28, exclusive of any amount received under this clause; 
 36.13  298.34 to 298.39; 298.391 to 298.396; 298.405; or any law 
 36.14  imposing a tax on severed mineral values that is less than the 
 36.15  amount of its levy reduction under section 126C.48, subdivision 
 36.16  8, for the second year prior to the year of the distribution 
 36.17  shall receive a distribution equal to the difference; the amount 
 36.18  necessary to make this payment shall be derived from 
 36.19  proportionate reductions in the initial distribution to other 
 36.20  school districts under clause (i).  
 36.21     (d) Any school district described in paragraph (c) where a 
 36.22  levy increase pursuant to section 126C.17, subdivision 9, is 
 36.23  authorized by referendum, shall receive a distribution from a 
 36.24  fund that receives a distribution in 1998 of 21.3 cents per 
 36.25  ton.  On July 15 of 1999, and each year thereafter, the increase 
 36.26  over the amount established for the prior year shall be 
 36.27  determined according to the increase in the implicit price 
 36.28  deflator as provided in section 298.24, subdivision 1.  Each 
 36.29  district shall receive the product of: 
 36.30     (i) $175 times the pupil units identified in section 
 36.31  126C.05, subdivision 1, enrolled in the second previous year or 
 36.32  the 1983-1984 school year, whichever is greater, less the 
 36.33  product of 1.8 percent times the district's taxable net tax 
 36.34  capacity in the second previous year; times 
 36.35     (ii) the lesser of: 
 36.36     (A) one, or 
 37.1      (B) the ratio of the sum of the amount certified pursuant 
 37.2   to section 126C.17, subdivision 6, in the previous year, plus 
 37.3   the amount certified pursuant to section 126C.17, subdivision 8, 
 37.4   in the previous year, plus the referendum aid according to 
 37.5   section 126C.17, subdivision 7, for the current year, plus an 
 37.6   amount equal to the reduction under section 126C.17, subdivision 
 37.7   12, to the product of 1.8 percent times the district's taxable 
 37.8   net tax capacity in the second previous year. 
 37.9      If the total amount provided by paragraph (d) is 
 37.10  insufficient to make the payments herein required then the 
 37.11  entitlement of $175 per pupil unit shall be reduced uniformly so 
 37.12  as not to exceed the funds available.  Any amounts received by a 
 37.13  qualifying school district in any fiscal year pursuant to 
 37.14  paragraph (d) shall not be applied to reduce general education 
 37.15  aid which the district receives pursuant to section 126C.13 or 
 37.16  the permissible levies of the district.  Any amount remaining 
 37.17  after the payments provided in this paragraph shall be paid to 
 37.18  the commissioner of iron range resources and rehabilitation who 
 37.19  shall deposit the same in the taconite environmental protection 
 37.20  fund and the northeast Minnesota economic protection trust fund 
 37.21  as provided in subdivision 11. 
 37.22     Each district receiving money according to this paragraph 
 37.23  shall reserve $25 times the number of pupil units in the 
 37.24  district.  It may use the money for early childhood programs or 
 37.25  for outcome-based learning programs that enhance the academic 
 37.26  quality of the district's curriculum.  The outcome-based 
 37.27  learning programs must be approved by the commissioner of 
 37.28  children, families, and learning. 
 37.29     If a school district had a referendum allowance in fiscal 
 37.30  year 2002 and received revenue under this section, then the 
 37.31  district shall be held harmless. 
 37.32     (e) There shall be distributed to any school district the 
 37.33  amount which the school district was entitled to receive under 
 37.34  section 298.32 in 1975. 
 37.35     Sec. 47.  Laws 2000, chapter 489, article 2, section 34, is 
 37.36  amended to read: 
 38.1      Sec. 34.  [TRAINING AND EXPERIENCE REPLACEMENT REVENUE.] 
 38.2      (a) For fiscal year 2001 only, a school district's training 
 38.3   and experience replacement revenue equals the sum of the 
 38.4   following: 
 38.5      (1) the ratio of the amount of training and experience 
 38.6   revenue the district would have received for fiscal year 1999 
 38.7   calculated using the training and experience index in Minnesota 
 38.8   Statutes 1996, section 124A.04, to its resident pupil units for 
 38.9   that year, times the district's adjusted marginal cost pupil 
 38.10  units for fiscal year 2001, times .06; plus 
 38.11     (2) the difference between .47 times the training and 
 38.12  experience revenue the district would have received for fiscal 
 38.13  year 1999, calculated using the training and experience index in 
 38.14  Minnesota Statutes 1996, section 124A.04, and the amount 
 38.15  calculated in Minnesota Statutes, section 126C.10, subdivision 
 38.16  5, for fiscal year 2001, but not less than zero. 
 38.17     (b) This revenue is paid entirely in fiscal year 2001 based 
 38.18  on estimated data. 
 38.19     (c) By January 31, 2002, the department of children, 
 38.20  families, and learning shall recalculate the revenue for each 
 38.21  district using actual data, and shall adjust the general 
 38.22  education aid paid to school districts for fiscal year 2002 by 
 38.23  the amount of the difference between the estimated revenue and 
 38.24  the actual revenue. 
 38.25     Sec. 48.  Laws 2000, chapter 489, article 2, section 37, is 
 38.26  amended to read: 
 38.27     Sec. 37.  [SPARSITY CORRECTION REVENUE.] 
 38.28     Subdivision 1.  [QUALIFICATION FOR REVENUE.] A school 
 38.29  district qualifies for sparsity correction revenue if it 
 38.30  qualifies for sparsity revenue, according to Minnesota Statutes, 
 38.31  section 126C.10, subdivisions 7 and 8, in fiscal year 2000 or 
 38.32  2001 and the amount of sparsity revenue it received in those 
 38.33  years is less than the amount it would have received in fiscal 
 38.34  year 2000 or 2001 prior to the passage of Laws 1999, chapter 
 38.35  241, article 1, sections 18 and 19. 
 38.36     Subd. 2.  [FISCAL YEAR 2000 CALCULATION.] For fiscal year 
 39.1   2000, a school district's sparsity correction revenue equals the 
 39.2   difference between sparsity revenue in fiscal year 2000 
 39.3   calculated according to Laws 1999, chapter 241, article 1, 
 39.4   sections 18 and 19, and the sparsity revenue the district would 
 39.5   have received for fiscal year 2000 had these sections of law not 
 39.6   been approved. 
 39.7      Subd. 3.  [FISCAL YEAR 2001 CALCULATION.] (a) For fiscal 
 39.8   year 2001, a school district's sparsity correction revenue 
 39.9   equals .5 times the difference between sparsity revenue in 
 39.10  fiscal year 2001 calculated according to Laws 1999, chapter 241, 
 39.11  article 1, sections 18 and 19, and the sparsity revenue the 
 39.12  district would have received for fiscal year 2001 had these 
 39.13  sections of law not been approved. 
 39.14     (b) This revenue is paid entirely in fiscal year 2001 based 
 39.15  on estimated data.  
 39.16     (c) By January 31, 2002, the department of children, 
 39.17  families, and learning shall recalculate the revenue for each 
 39.18  district using actual data, and shall adjust the general 
 39.19  education aid paid to school districts for fiscal year 2002 by 
 39.20  the amount of the difference between the estimated revenue and 
 39.21  the actual revenue. 
 39.22     Sec. 49.  [SUPPLEMENTAL REVENUE CONVERSION ALLOWANCE.] 
 39.23     A district's supplemental revenue conversion allowance is 
 39.24  equal to the district's total fiscal year 2002 supplemental 
 39.25  revenue divided by its fiscal year 2002 resident marginal cost 
 39.26  pupil units. 
 39.27     Sec. 50.  [TRANSITION REVENUE CONVERSION ALLOWANCE.] 
 39.28     A district's transition revenue conversion allowance is 
 39.29  equal to the district's total fiscal year 2002 transition 
 39.30  revenue divided by its fiscal year 2002 resident marginal cost 
 39.31  pupil units. 
 39.32     <b>[EFFECTIVE DATE.]</b> This section is effective for revenue for 
 39.33  fiscal year 2003. 
 39.34     Sec. 51.  [EDUCATION FORMULA ADJUSTMENTS.] 
 39.35     For fiscal year 2003 and thereafter, the commissioner of 
 39.36  children, families, and learning shall, in consultation with the 
 40.1   commissioner of finance, make the adjustments required by this 
 40.2   section to neutralize the effect of the changes in pupil unit 
 40.3   weights under Minnesota Statutes, section 126C.05, subdivision 
 40.4   1, included in this article.  Each revenue allowance and 
 40.5   equalizing factor established under Minnesota Statutes, chapters 
 40.6   123B, 124D, and 126C, excluding Minnesota Statutes, section 
 40.7   126C.17, as an amount per pupil unit, shall be increased by 11 
 40.8   percent. 
 40.9      Sec. 52.  [AID REPAYMENT; LITTLE FALLS.] 
 40.10     Notwithstanding any law to the contrary, the department of 
 40.11  children, families, and learning must allow independent school 
 40.12  district No. 482, Little Falls, to repay over a five-year period 
 40.13  state aid overpayments for fiscal years 1998 and 1999 resulting 
 40.14  from the district's miscalculation of pupil units for those 
 40.15  years.  If this aid has already been recaptured, the department 
 40.16  shall make a positive aid adjustment of $500,000 in the July 15, 
 40.17  2001, aid payment to the district.  The school district must 
 40.18  repay the aid in equal payments of $100,000 each payable on June 
 40.19  20.  Payments must begin on June 20, 2002. 
 40.20     Sec. 53.  [PUPIL BASE TRANSITION REVENUE.] 
 40.21     For fiscal year 2003 only, a school district that has 15 
 40.22  percent or fewer adjusted marginal cost pupil units than 
 40.23  resident marginal cost pupil units is eligible for pupil base 
 40.24  transition revenue.  Pupil base adjustment revenue is equal to 
 40.25  $200 times the difference between an eligible school district's 
 40.26  resident marginal cost pupil units and its adjusted marginal 
 40.27  cost pupil units. 
 40.28     <b>[EFFECTIVE DATE.]</b> This section is effective for revenue for 
 40.29  fiscal year 2003 and later. 
 40.30     Sec. 54.  [REFERENDUM TRANSFER ADJUSTMENT.] 
 40.31     Notwithstanding Minnesota Statutes, section 126C.17, 
 40.32  subdivision 1, paragraph (b), for fiscal year 2003 and later, 
 40.33  independent school district No. 709, Duluth's initial referendum 
 40.34  revenue allowance equals the sum of the allowance under section 
 40.35  126C.17, subdivision 2, plus any additional allowance per 
 40.36  resident marginal cost pupil unit authorized under section 
 41.1   126C.17, subdivision 9, before May 1, 2001, for fiscal year 2002 
 41.2   and later, plus the revenue conversion allowance approved under 
 41.3   section 126C.17, subdivision 13, minus $461.  If the district 
 41.4   has more than one referendum authority, the reduction must be 
 41.5   computed separately for each authority.  The reduction must be 
 41.6   applied first to the referendum authority with the earliest 
 41.7   date.  The reduction must not be applied to the district's 
 41.8   referendum conversion allowance.  The district's initial 
 41.9   referendum allowance may not be less than zero.  
 41.10     <b>[EFFECTIVE DATE.]</b> This section is effective for revenue for 
 41.11  fiscal year 2003 and later.  
 41.12     Sec. 55.  [APPROPRIATIONS.] 
 41.13     Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
 41.14  LEARNING.] The sums indicated in this section are appropriated 
 41.15  from the general fund to the department of children, families, 
 41.16  and learning for the fiscal years designated.  
 41.17     Subd. 2.  [GENERAL AND SUPPLEMENTAL EDUCATION AID.] For 
 41.18  general and supplemental education aid:  
 41.19       $3,374,364,000 .....     2002
 41.20       $3,541,662,000 .....     2003 
 41.21     The 2002 appropriation includes $318,932,000 for 2001 and 
 41.22  $3,055,432,000 for 2002.  
 41.23     The 2003 appropriation includes $339,492,000 for 2002 and 
 41.24  $3,202,170,000 for 2003.  
 41.25     Subd. 3.  [TRANSPORTATION AID FOR ENROLLMENT OPTIONS.] For 
 41.26  transportation of pupils attending post-secondary institutions 
 41.27  according to Minnesota Statutes, section 124D.09, or for 
 41.28  transportation of pupils attending nonresident districts 
 41.29  according to Minnesota Statutes, section 124D.03: 
 41.30       $70,000        .....     2002
 41.31       $80,000        .....     2003
 41.32     Any balance in the first year does not cancel but is 
 41.33  available in the second year. 
 41.34     Subd. 4.  [RICHFIELD AIRPORT IMPACT AID.] For Richfield 
 41.35  airport impact aid according to Laws 2000, chapter 489, article 
 41.36  2, section 36: 
 42.1        $1,117,000     .....     2003
 42.2      Subd. 5.  [ABATEMENT AID.] For abatement aid according to 
 42.3   Minnesota Statutes, section 127A.49:  
 42.4        $7,098,000     .....     2002 
 42.5        $7,692,000     .....     2003 
 42.6      The 2002 appropriation includes $640,000 for 2001 and 
 42.7   $6,458,000 for 2002.  
 42.8      The 2003 appropriation includes $717,000 for 2002 and 
 42.9   $6,975,000 for 2003.  
 42.10     Subd. 6.  [NONPUBLIC PUPIL AID.] For nonpublic pupil 
 42.11  education aid according to Minnesota Statutes, sections 123.79 
 42.12  and 123B.40 to 123B.43: 
 42.13       $14,132,000    .....     2002 
 42.14       $15,175,000    .....     2003 
 42.15     The 2002 appropriation includes $1,330,000 for 2001 and 
 42.16  $12,802,000 for 2002. 
 42.17     The 2003 appropriation includes $1,422,000 for 2002 and 
 42.18  $13,753,000 for 2003. 
 42.19     Subd. 7.  [NONPUBLIC PUPIL TRANSPORTATION.] For nonpublic 
 42.20  pupil transportation aid under Minnesota Statutes, section 
 42.21  123B.92, subdivision 9: 
 42.22       $20,535,000     .....     2002 
 42.23       $22,851,000     .....     2003 
 42.24     The 2002 appropriation includes $2,000,000 for 2001 and 
 42.25  $18,535,000 for 2002. 
 42.26     The 2003 appropriation includes $2,059,000 for 2002 and 
 42.27  $20,792,000 for 2003. 
 42.28     Subd. 8.  [CONSOLIDATION TRANSITION AID.] For districts 
 42.29  consolidating under Minnesota Statutes, section 123A.485: 
 42.30       $675,000        .....     2002 
 42.31       $669,000        .....     2003 
 42.32     The 2002 appropriation includes $44,000 for 2001 and 
 42.33  $631,000 for 2002. 
 42.34     The 2003 appropriation includes $70,000 for 2002 and 
 42.35  $599,000 for 2003. 
 42.36     Any balance in the first year does not cancel but is 
 43.1   available in the second year. 
 43.2      Subd. 9.  [PUPIL BASE TRANSITION REVENUE.] For pupil base 
 43.3   transition revenue according to section 53: 
 43.4        $220,000        .....     2003 
 43.5      Subd. 10.  [ONE-ROOM SCHOOLHOUSE.] For a grant to 
 43.6   independent school district No. 690, Warroad, to operate the 
 43.7   Angle Inlet School: 
 43.8        $35,000         .....     2002 
 43.9        $35,000         .....     2003 
 43.10     Sec. 56.  [REPEALER.] 
 43.11     (a) Minnesota Statutes 2000, sections 126C.10, subdivisions 
 43.12  9, 10, 11, 12, 19, 20, 21, and 22; and 126C.11, are repealed 
 43.13  effective for revenue for fiscal year 2003. 
 43.14     (b) Minnesota Statutes 2000, section 126C.10, subdivision 
 43.15  23, is repealed effective for revenue for fiscal year 2002. 
 43.16                             ARTICLE 2 
 43.17                        EDUCATION EXCELLENCE 
 43.18     Section 1.  Minnesota Statutes 2000, section 120B.30, 
 43.19  subdivision 1, is amended to read: 
 43.20     Subdivision 1.  [STATEWIDE TESTING.] (a) The commissioner, 
 43.21  with advice from experts with appropriate technical 
 43.22  qualifications and experience and stakeholders, shall include in 
 43.23  the comprehensive assessment system, for each grade level to be 
 43.24  tested, a test, which shall be aligned with the state's 
 43.25  graduation standards and administered annually to all students 
 43.26  in the third, fifth, seventh, and eighth grades.  The 
 43.27  commissioner shall establish one or more months during which 
 43.28  schools shall administer the tests to students each school 
 43.29  year.  Only Minnesota basic skills tests in reading, 
 43.30  mathematics, and writing shall fulfill students' basic skills 
 43.31  testing requirements for a passing state notation.  The passing 
 43.32  scores of the state tests in reading and mathematics are the 
 43.33  equivalent of:  
 43.34     (1) 70 percent correct for students entering grade 9 in 
 43.35  1996; and 
 43.36     (2) 75 percent correct for students entering grade 9 in 
 44.1   1997 and thereafter, as based on the first uniform test 
 44.2   administration of February 1998.  
 44.3      Notwithstanding Minnesota Rules, part 3501.0050, subpart 2, 
 44.4   at the written request of a parent or guardian, and with the 
 44.5   recommendation of the student's teacher, a district may offer 
 44.6   the test of basic requirements in reading, math, or writing to 
 44.7   an individual student beginning in grade 5.  The student must 
 44.8   take the same test on the same date as administered to students 
 44.9   in eighth grade or higher.  Third and, fifth, and seventh grade 
 44.10  test results shall be available to districts for diagnostic 
 44.11  purposes affecting student learning and district instruction and 
 44.12  curriculum, and for establishing educational accountability.  
 44.13  The commissioner must disseminate to the public the third and, 
 44.14  fifth, and seventh grade test results upon receiving those 
 44.15  results. 
 44.16     (b) In addition, at the secondary high school level, 
 44.17  districts shall assess student performance in all required 
 44.18  learning areas and selected required standards within each area 
 44.19  of the profile of learning mathematics, reading, and writing.  
 44.20  The testing instruments and testing process shall be determined 
 44.21  by the commissioner.  The results shall be aggregated at the 
 44.22  site and district level.  The testing shall be administered 
 44.23  beginning in the 1999-2000 school year and thereafter. 
 44.24     (c) The commissioner shall report school site and school 
 44.25  district student academic achievement levels of the current and 
 44.26  two immediately preceding school years.  The report shall 
 44.27  include students' unweighted mean test scores in each tested 
 44.28  subject, the unweighted mean test scores of only those students 
 44.29  enrolled in the school by January October 1 of the previous 
 44.30  current school year, and the unweighted test scores of all 
 44.31  students except those students receiving limited English 
 44.32  proficiency instruction.  The report also shall record 
 44.33  separately, in proximity to the reported performance levels, the 
 44.34  percentage of students of each gender and the percentages of 
 44.35  students who are eligible to receive a free or reduced price 
 44.36  school meal, demonstrate limited English proficiency, are 
 45.1   identified as migrant students, are a member of a major ethnic 
 45.2   or racial population, or are eligible to receive special 
 45.3   education services. 
 45.4      (d) In addition to the testing and reporting requirements 
 45.5   under paragraphs (a), (b), and (c), the commissioner shall 
 45.6   include the following components in the statewide public 
 45.7   reporting system: 
 45.8      (1) uniform statewide testing of all third, fifth, seventh, 
 45.9   eighth, and post-eighth grade students that provides exemptions, 
 45.10  only with parent or guardian approval, for those very few 
 45.11  students for whom the student's individual education plan team 
 45.12  under sections 125A.05 and 125A.06, determines that the student 
 45.13  is incapable of taking a statewide test, or for a limited 
 45.14  English proficiency student under section 124D.59, subdivision 
 45.15  2, if the student has been in the United States for fewer than 
 45.16  12 months and for whom special language barriers exist, such as 
 45.17  the student's native language does not have a written form or 
 45.18  the district does not have access to appropriate interpreter 
 45.19  services for the student's native language; 
 45.20     (2) educational indicators that can be aggregated and 
 45.21  compared across school districts and across time on a statewide 
 45.22  basis, including average daily attendance, high school 
 45.23  graduation rates, and high school drop-out rates by age and 
 45.24  grade level; 
 45.25     (3) students' scores on the American College Test; and 
 45.26     (4) participation in the National Assessment of Educational 
 45.27  Progress so that the state can benchmark its performance against 
 45.28  the nation and other states, and, where possible, against other 
 45.29  countries, and contribute to the national effort to monitor 
 45.30  achievement. 
 45.31     (e) Districts must report exemptions under paragraph (d), 
 45.32  clause (1), to the commissioner consistent with a format 
 45.33  provided by the commissioner. 
 45.34     Sec. 2.  Minnesota Statutes 2000, section 120B.35, is 
 45.35  amended to read: 
 45.36     120B.35 [STUDENT ACADEMIC ACHIEVEMENT LEVELS.] 
 46.1      (a) Each school year, a school district must determine if 
 46.2   the student achievement levels at each school site meet state 
 46.3   and local expectations.  If student achievement levels at a 
 46.4   school site do not meet state and local expectations and the 
 46.5   site has not made adequate yearly progress for two out of three 
 46.6   consecutive school years, beginning with the 2000-2001 2001-2002 
 46.7   school year, the district must work with the school site to 
 46.8   adopt a plan to raise student achievement levels to meet state 
 46.9   and local expectations.  The legislature will determine state 
 46.10  expectations after receiving a recommendation from The 
 46.11  commissioner of children, families, and learning shall establish 
 46.12  the student academic achievement levels as described under 
 46.13  paragraph (b).  
 46.14     (b) The commissioner shall establish a statewide continuous 
 46.15  improvement system that includes all of the following components:
 46.16     (1) consistent student academic achievement levels for 
 46.17  every school site and district in the state using scores from 
 46.18  the Minnesota comprehensive assessments beginning in school year 
 46.19  2001-2002; 
 46.20     (2) a minimum average scale score for each Minnesota 
 46.21  comprehensive assessment that will be established as the state's 
 46.22  target score for every grade and subject tested.  The 
 46.23  commissioner will determine these scores after receiving advice 
 46.24  from experts with appropriate technical qualifications and 
 46.25  experience and affected stakeholders; 
 46.26     (3) student achievement levels representing challenging 
 46.27  standards of performance for all children.  The average scale 
 46.28  score established as the state's target score must, at a 
 46.29  minimum, represent a student performance level indicating 
 46.30  beginning proficiency in the subject tested; 
 46.31     (4) a five-year cycle for school sites and districts to 
 46.32  meet the state's expectations for student achievement levels.  
 46.33  School sites and districts with an average scale score below the 
 46.34  target score in any subject must make adequate yearly progress 
 46.35  toward the state's expected score as defined by the 
 46.36  commissioner; 
 47.1      (5) reporting of school sites and districts not making 
 47.2   adequate yearly progress for two consecutive years.  These 
 47.3   schools shall be identified as "in need of improvement."  
 47.4   Schools below the state target but making adequate yearly 
 47.5   progress shall be classified as "making progress."  Schools with 
 47.6   average scale scores above the state target shall be classified 
 47.7   as "exceeding state expectations."  In addition, the department 
 47.8   shall provide for public access to school performance indicators 
 47.9   as provided for in paragraph (e); 
 47.10     (6) continuous improvement plans developed as provided for 
 47.11  in paragraph (a) and described in paragraph (c).  The 
 47.12  department, at a district's request, must assist the district 
 47.13  and the school site in developing a plan to improve student 
 47.14  achievement.  The plan must include parental involvement 
 47.15  components; and 
 47.16     (7) a system of technical assistance for schools and 
 47.17  districts not meeting state expectations as provided for in 
 47.18  paragraph (d). 
 47.19     (c) School sites identified as "in need of improvement" 
 47.20  shall develop continuous improvement plans in order to meet 
 47.21  state and local expectations for student academic achievement.  
 47.22  Continuous improvement plans must contain all of the following: 
 47.23     (1) a self-study on eight components of quality education 
 47.24  including curriculum, instruction, assessment, professional 
 47.25  development, family and community involvement, leadership, 
 47.26  governance, and the alignment of resources; 
 47.27     (2) identification of site-specific goals tied to an 
 47.28  analysis of need which must be supported by student achievement 
 47.29  data; and 
 47.30     (3) an analysis of other site-level data including student 
 47.31  attendance, dropout rates, and student demographic information 
 47.32  including gender, major ethnic and racial populations, the 
 47.33  number of students receiving free and reduced price lunch, the 
 47.34  number of students identified as limited English proficient, 
 47.35  migrant status, and the number of students receiving special 
 47.36  education services. 
 48.1      (d) The commissioner shall create a continuous improvement 
 48.2   support system to provide technical assistance to school sites 
 48.3   and districts identified as needing improvement.  The department 
 48.4   shall establish a team of external reviewers and experts to 
 48.5   assist schools in the development of continuous improvement 
 48.6   plans as described in paragraph (c).  The department must work 
 48.7   with the schools in greatest need, such as those schools 
 48.8   identified as needing improvement in multiple subjects, those 
 48.9   identified for multiple years, or those furthest away from the 
 48.10  state's expectations as provided for in paragraph (b).  If 
 48.11  resources remain, the department shall provide assistance to 
 48.12  sites and districts upon request. 
 48.13     (e) The commissioner shall establish and maintain a 
 48.14  continuous improvement Web site designed to make data on every 
 48.15  school and district available to parents, teachers, 
 48.16  administrators, community members, and the general public. 
 48.17     Sec. 3.  Minnesota Statutes 2000, section 122A.09, 
 48.18  subdivision 4, is amended to read: 
 48.19     Subd. 4.  [LICENSE AND RULES.] (a) The board must adopt 
 48.20  rules to license public school teachers and interns subject to 
 48.21  chapter 14. 
 48.22     (b) The board must adopt rules requiring a person to 
 48.23  successfully complete a skills examination in reading, writing, 
 48.24  and mathematics as a requirement for initial teacher licensure.  
 48.25  Such rules must require college and universities offering a 
 48.26  board approved teacher preparation program to provide remedial 
 48.27  assistance to persons who did not achieve a qualifying score on 
 48.28  the skills examination, including those for whom English is a 
 48.29  second language. 
 48.30     (c) The board must adopt rules to approve teacher 
 48.31  preparation programs.  The board, upon the request of a 
 48.32  post-secondary student preparing for teacher licensure or a 
 48.33  licensed graduate of a teacher preparation program, shall assist 
 48.34  in resolving a dispute between the person and a post-secondary 
 48.35  institution providing a teacher preparation program when the 
 48.36  dispute involves an institution's recommendation for licensure 
 49.1   affecting the person or the person's credentials.  At the 
 49.2   board's discretion, assistance may include the application of 
 49.3   chapter 14. 
 49.4      (d) The board must provide the leadership and shall adopt 
 49.5   rules for the redesign of teacher education programs to 
 49.6   implement a research based, results-oriented curriculum that 
 49.7   focuses on the skills teachers need in order to be effective.  
 49.8   The board shall implement new systems of teacher preparation 
 49.9   program evaluation to assure program effectiveness based on 
 49.10  proficiency of graduates in demonstrating attainment of program 
 49.11  outcomes. 
 49.12     (e) The board must adopt rules requiring successful 
 49.13  completion of an examination of general pedagogical knowledge 
 49.14  and examinations of licensure-specific teaching skills.  The 
 49.15  rules shall be effective on the dates determined by the board, 
 49.16  but not later than September 1, 2001. 
 49.17     (f) The board must adopt rules requiring teacher educators 
 49.18  to work directly with elementary or secondary school teachers in 
 49.19  elementary or secondary schools to obtain periodic exposure to 
 49.20  the elementary or secondary teaching environment. 
 49.21     (g) The board must grant licenses to interns and to 
 49.22  candidates for initial licenses. 
 49.23     (h) The board must design and implement an assessment 
 49.24  system which requires a candidate for an initial license and 
 49.25  first continuing license to demonstrate the abilities necessary 
 49.26  to perform selected, representative teaching tasks at 
 49.27  appropriate levels. 
 49.28     (i) The board must receive recommendations from local 
 49.29  committees as established by the board for the renewal of 
 49.30  teaching licenses. 
 49.31     (j) The board must grant life licenses to those who qualify 
 49.32  according to requirements established by the board, and suspend 
 49.33  or revoke licenses pursuant to sections 122A.20 and 214.10.  The 
 49.34  board must not establish any expiration date for application for 
 49.35  life licenses.  
 49.36     (k) The board must adopt rules that require all licensed 
 50.1   teachers who are renewing their continuing license to include in 
 50.2   their renewal requirements further preparation in the areas of 
 50.3   using positive behavior interventions, applying the effective 
 50.4   use of technology in the classroom, and in accommodating, 
 50.5   modifying, and adapting curricula, materials, and strategies to 
 50.6   appropriately meet the needs of individual students and ensure 
 50.7   adequate progress toward the state's graduation rule.  The rules 
 50.8   adopted under this paragraph apply to teachers who renew their 
 50.9   licenses in year 2001 and later. 
 50.10     (l) In adopting rules to license public school teachers who 
 50.11  provide health-related services for disabled children, the board 
 50.12  shall adopt rules consistent with license or registration 
 50.13  requirements of the commissioner of health and the 
 50.14  health-related boards who license personnel who perform similar 
 50.15  services outside of the school. 
 50.16     Sec. 4.  Minnesota Statutes 2000, section 122A.60, 
 50.17  subdivision 3, is amended to read: 
 50.18     Subd. 3.  [STAFF DEVELOPMENT OUTCOMES.] The advisory staff 
 50.19  development committee must adopt a staff development plan for 
 50.20  improving student achievement.  The plan must be consistent with 
 50.21  education outcomes that the school board determines.  The plan 
 50.22  must include ongoing staff development activities that 
 50.23  contribute toward continuous improvement in achievement of the 
 50.24  following goals: 
 50.25     (1) improve student achievement of state and local 
 50.26  education standards in all areas of the curriculum by using best 
 50.27  practices methods; 
 50.28     (2) effectively meet the needs of a diverse student 
 50.29  population, including at-risk children, children with 
 50.30  disabilities, and gifted children, within the regular classroom 
 50.31  and other settings; 
 50.32     (3) provide an inclusive curriculum for a racially, 
 50.33  ethnically, and culturally diverse student population that is 
 50.34  consistent with the state education diversity rule and the 
 50.35  district's education diversity plan; 
 50.36     (4) improve staff collaboration and develop mentoring and 
 51.1   peer coaching programs for teachers new to the school or 
 51.2   district; 
 51.3      (5) effectively teach and model violence prevention policy 
 51.4   and curriculum that address early intervention alternatives, 
 51.5   issues of harassment, and teach nonviolent alternatives for 
 51.6   conflict resolution; and 
 51.7      (6) provide teachers and other members of site-based 
 51.8   management teams with appropriate management and financial 
 51.9   management skills; and 
 51.10     (7) provide teachers with training for the effective use of 
 51.11  technology in the classroom and for the development of 
 51.12  curriculum resources that are video or electronically based and 
 51.13  delivered. 
 51.14     Sec. 5.  [122A.73] [TEACHERS FOR THE 21ST CENTURY.] 
 51.15     Subdivision 1.  [ESTABLISHMENT.] A teachers for the 21st 
 51.16  century initiative is established to attract and retain 
 51.17  qualified teachers in areas of identified shortages, including 
 51.18  student counseling, and support new teachers in schools with 
 51.19  high levels of poverty.  The teachers for the 21st century 
 51.20  initiative consists of a targeted loan forgiveness or tuition 
 51.21  reimbursement program, an alternative license/teaching academy 
 51.22  program, an individual certificate account program, and a 
 51.23  mentoring and induction support program.  The commissioner of 
 51.24  children, families, and learning shall identify areas of teacher 
 51.25  shortages, develop eligibility criteria for participation in the 
 51.26  programs, develop and disseminate application materials for the 
 51.27  programs, select program participants, and carry out other 
 51.28  activities to implement this section.  These programs are 
 51.29  available only for a person entering a program for teacher or 
 51.30  school counselor preparation after June 30, 2001. 
 51.31     Subd. 2.  [TARGETED LOAN FORGIVENESS OR TUITION 
 51.32  REIMBURSEMENT PROGRAM.] The purpose of the teacher loan 
 51.33  forgiveness or tuition reimbursement program is to repay the 
 51.34  loans or reimburse tuition costs of qualified licensed teachers 
 51.35  who teach in areas of identified teacher shortage and school 
 51.36  counselors.  A licensed teacher, who has successfully completed 
 52.1   an accredited teacher preparation program in a Minnesota 
 52.2   post-secondary institution in an identified area of teacher 
 52.3   shortage, or a licensed school counselor may submit an 
 52.4   application to the commissioner to participate in the targeted 
 52.5   loan forgiveness or tuition reimbursement program.  In addition 
 52.6   to any other criteria established by the commissioner, the 
 52.7   applicant must be employed as a school counselor or a teacher in 
 52.8   a Minnesota public school in an area of identified teacher 
 52.9   shortage.  Program participants, who meet the criteria under 
 52.10  this subdivision, may designate for each year of post-secondary 
 52.11  education leading to a license to counsel students or to teach 
 52.12  in an identified area of teacher shortage, up to a total of four 
 52.13  years, an agreed amount, not to exceed $2,000 per year, as 
 52.14  qualified loans or tuition.  For each year that a participant is 
 52.15  employed in a school according to this subdivision, up to a 
 52.16  total of four years, the commissioner shall annually pay an 
 52.17  amount equal to one year of qualified loans or tuition. 
 52.18     Subd. 3.  [ALTERNATIVE LICENSE/TEACHING ACADEMY 
 52.19  PROGRAM.] The purpose of the alternative license/teaching 
 52.20  academy program is to award grants to school districts or groups 
 52.21  of school districts to establish teaching academies for persons 
 52.22  with at least a four-year degree in an identified area of 
 52.23  teacher shortage from a post-secondary institution to teach in 
 52.24  the identified area of teacher shortage and work toward being 
 52.25  granted a teacher license.  A school district or group of school 
 52.26  districts, in conjunction with a post-secondary teacher 
 52.27  preparation program, may submit an application to the 
 52.28  commissioner to participate in the alternative license/teaching 
 52.29  academy program.  In addition to any other criteria established 
 52.30  by the commissioner, a teaching academy must include a program 
 52.31  of professional development and instruction in the school 
 52.32  district.  A district must assign a mentor/master teacher to 
 52.33  work closely with a teaching academy candidate for at least one 
 52.34  year.  The post-secondary teacher preparation program shall make 
 52.35  a recommendation to the board of teaching as to the granting of 
 52.36  a teacher license to the candidate.  The commissioner may award 
 53.1   grants up to $5,000 per candidate to school districts or groups 
 53.2   of school districts participating in the alternative 
 53.3   license/teaching academy program.  The grants may be used for 
 53.4   stipends to mentor/master teachers, professional development 
 53.5   costs, and administering the program. 
 53.6      Subd. 4.  [INDIVIDUAL CERTIFICATE ACCOUNT PROGRAM.] The 
 53.7   purpose of the individual certificate account program is to 
 53.8   establish individual certificate accounts for persons to use for 
 53.9   tuition to attend an accredited teacher preparation program in a 
 53.10  Minnesota post-secondary institution in an identified area of 
 53.11  teacher shortage.  In addition to any other criteria established 
 53.12  by the commissioner, a program applicant must work with teachers 
 53.13  in an educational setting at least ten hours a week.  Eligible 
 53.14  applicants, who may include high school students, school 
 53.15  volunteers, or paraprofessionals, may submit applications to the 
 53.16  commissioner to participate in the individual certificate 
 53.17  account program.  For each year, up to five years, the 
 53.18  commissioner may deposit a certificate of $2,000 in a 
 53.19  participant's account.  A certificate expires five years after 
 53.20  its date of issuance. 
 53.21     Subd. 5.  [MENTORING AND INDUCTION SUPPORT PROGRAM.] The 
 53.22  purpose of the mentoring and induction support program is to 
 53.23  award grants to school districts for teachers who mentor 
 53.24  teachers in the first three years of teaching in schools with 
 53.25  high levels of poverty.  A school district may submit an 
 53.26  application to the commissioner of children, families, and 
 53.27  learning to participate in the mentoring and induction support 
 53.28  program.  The commissioner may award grants to eligible 
 53.29  applicants for stipends of up to $500 per year for each mentor 
 53.30  teacher without National Board Certification and up to $1,000 
 53.31  for each mentor teacher with National Board Certification. 
 53.32     Subd. 6.  [REPORT.] The commissioner of children, families, 
 53.33  and learning shall report annually on the teachers for the 21st 
 53.34  century initiative to the education policy committees of the 
 53.35  house of representatives and the senate on the number of 
 53.36  participants receiving grants in each program, the identified 
 54.1   area of need for each applicant, a qualitative assessment of the 
 54.2   participants' effectiveness in the classroom, and information on 
 54.3   the impact of each program and the initiative in recruiting and 
 54.4   retraining quality teachers.  The commissioner may contract for 
 54.5   this report. 
 54.6      Subd. 7.  [EXPIRATION.] This section expires June 30, 2005. 
 54.7      Sec. 6.  Minnesota Statutes 2000, section 124D.11, 
 54.8   subdivision 4, is amended to read: 
 54.9      Subd. 4.  [BUILDING LEASE BASE AID.] When a charter school 
 54.10  finds it economically advantageous to rent or lease a building 
 54.11  or land for any instructional purposes and it determines that 
 54.12  the total operating capital revenue under section 126C.10, 
 54.13  subdivision 13, is insufficient for this purpose, it may apply 
 54.14  to the commissioner for building lease aid for this purpose.  
 54.15  Criteria for aid approval and revenue uses shall be as defined 
 54.16  for the building lease levy in section 126C.40, subdivision 1, 
 54.17  paragraphs (a) and (b).  For leases entered into before April 1, 
 54.18  2001, the amount of building lease base aid per pupil unit 
 54.19  served for a charter school for any year shall not exceed the 
 54.20  lesser of (a) 90 percent of the approved cost or (b) the product 
 54.21  of the pupil units served for the current school year times 
 54.22  $1,500.  For leases entered into April 1, 2001, and thereafter, 
 54.23  the amount of building lease base aid per pupil unit served for 
 54.24  a charter school for any year shall not exceed the lesser of (1) 
 54.25  90 percent of the approved cost or (2) the product of the pupil 
 54.26  units served for the current school year times $1,000. 
 54.27     Sec. 7.  Minnesota Statutes 2000, section 124D.11, is 
 54.28  amended by adding a subdivision to read: 
 54.29     Subd. 4a.  [STATE TOTAL BUILDING LEASE AID.] The state 
 54.30  total building lease aid for fiscal year 2002 equals $11,734,000.
 54.31  The state total building lease aid for fiscal year 2003 equals 
 54.32  $12,907,000.  The state total building lease aid for later 
 54.33  fiscal years equals the state total building lease aid for the 
 54.34  preceding fiscal year times 1.1. 
 54.35     Sec. 8.  Minnesota Statutes 2000, section 124D.11, is 
 54.36  amended by adding a subdivision to read: 
 55.1      Subd. 4b.  [CHARTER SCHOOL BUILDING LEASE AID.] A charter 
 55.2   school's building lease aid for fiscal year 2002 and later 
 55.3   equals the state total building lease aid times the ratio of the 
 55.4   charter school's building lease base aid to the state total 
 55.5   building lease base aid. 
 55.6      Sec. 9.  Minnesota Statutes 2000, section 124D.128, 
 55.7   subdivision 1, is amended to read: 
 55.8      Subdivision 1.  [PROGRAM ESTABLISHED.] A learning year 
 55.9   program provides instruction throughout the year.  A pupil may 
 55.10  participate in the program and accelerate attainment of grade 
 55.11  level requirements or graduation requirements.  A learning year 
 55.12  program may begin after the close of the regular school year in 
 55.13  June.  The program may be for students in one or more grade 
 55.14  levels from kindergarten through grade 12.  
 55.15     Students may participate in the program if they reside in:  
 55.16     (1) a district that has been designated a learning year 
 55.17  site under subdivision 2; 
 55.18     (2) a district that is a member of the same education 
 55.19  district as a site; or 
 55.20     (3) a district that participates in the same area learning 
 55.21  center program as a site.  
 55.22     Sec. 10.  Minnesota Statutes 2000, section 124D.128, 
 55.23  subdivision 2, is amended to read: 
 55.24     Subd. 2.  [COMMISSIONER DESIGNATION.] An area learning 
 55.25  center designated by the state must be a site.  To be 
 55.26  designated, a district or center must demonstrate to the 
 55.27  commissioner that it will: 
 55.28     (1) provide a program of instruction that permits pupils to 
 55.29  receive instruction throughout the entire year; and 
 55.30     (2) maintain a record system that, for purposes of section 
 55.31  126C.05, permits identification of membership attributable to 
 55.32  pupils participating in the program.  The record system and 
 55.33  identification must ensure that the program will not have the 
 55.34  effect of increasing the total number of pupil units 
 55.35  attributable to an individual pupil as a result of a learning 
 55.36  year program.  The record system must include the date the pupil 
 56.1   originally enrolled in a learning year program, the pupil's 
 56.2   grade level, the date of each grade promotion, the average daily 
 56.3   membership generated in each grade level, the number of credits 
 56.4   or standards earned, and the number needed to graduate. 
 56.5      Sec. 11.  Minnesota Statutes 2000, section 124D.128, 
 56.6   subdivision 3, is amended to read: 
 56.7      Subd. 3.  [STUDENT PLANNING.] A district must inform all 
 56.8   pupils and their parents about the learning year program and 
 56.9   that participation in the program is optional.  A continual 
 56.10  learning plan must be developed at least annually for each pupil 
 56.11  with the participation of the pupil, parent or guardian, 
 56.12  teachers, and other staff; each participant must sign and date 
 56.13  the plan.  The plan must specify the learning experiences that 
 56.14  must occur each during the entire fiscal year and, for secondary 
 56.15  students, for graduation.  The plan must include:  
 56.16     (1) the pupil's learning objectives and experiences; 
 56.17     (2) the assessment measurements used to evaluate each 
 56.18  objective; 
 56.19     (3) requirements for grade level progression; and 
 56.20     (4) for pupils generating more than one average daily 
 56.21  membership in a given grade, an indication of which objectives 
 56.22  were unmet. 
 56.23  The plan may be modified to conform to district schedule 
 56.24  changes.  The district may not modify the plan if the 
 56.25  modification would result in delaying the student's time of 
 56.26  graduation.  
 56.27     Sec. 12.  Minnesota Statutes 2000, section 124D.128, 
 56.28  subdivision 6, is amended to read: 
 56.29     Subd. 6.  [REVENUE COMPUTATION AND REPORTING.] Aid and levy 
 56.30  revenue computations must be based on the total number of hours 
 56.31  of education programs for pupils in average daily membership for 
 56.32  each fiscal year.  For purposes of section 126C.05, Average 
 56.33  daily membership shall be computed by dividing the total number 
 56.34  of hours of participation for the fiscal year by the minimum 
 56.35  number of hours for a year determined for the appropriate grade 
 56.36  level pursuant to section 126C.05, subdivision 15.  Hours of 
 57.1   participation that occur after the close of the regular 
 57.2   instructional year and before July 1 must be attributed to the 
 57.3   following fiscal year.  Thirty hours may be used for teacher 
 57.4   workshops, staff development, or parent-teacher conferences.  As 
 57.5   part of each pilot program, the department and each district 
 57.6   must report and evaluate the changes needed to adjust the dates 
 57.7   of the fiscal year for aid and levy computation and fiscal year 
 57.8   reporting.  For revenue computation purposes, the learning year 
 57.9   program shall generate revenue based on the formulas for the 
 57.10  fiscal year in which the services are provided.  Dates of grade 
 57.11  promotion must be reported to the department for all pupils who 
 57.12  have participated in the program. 
 57.13     State aid and levy revenue computation for the learning 
 57.14  year programs begins July 1, 1988, for fiscal year 1989. 
 57.15     Sec. 13.  Minnesota Statutes 2000, section 124D.128, is 
 57.16  amended by adding a subdivision to read: 
 57.17     Subd. 6a.  [PROCESS TO ADDRESS AUDIT FINDINGS.] (a) If, 
 57.18  during an audit of a district's learning year program, the 
 57.19  commissioner finds that the district is not meeting program 
 57.20  requirements, the commissioner must notify the board of that 
 57.21  district in writing.  The notice must specify the findings in 
 57.22  detail, describe the correction required, set a reasonable time 
 57.23  during which the findings should be corrected, and advise that 
 57.24  general education revenue to the district may be reduced.  The 
 57.25  commissioner may extend the time allowed for the correction. 
 57.26     (b) A board that receives a notice under paragraph (a) may 
 57.27  decide by majority vote of the entire board to dispute that: 
 57.28     (1) the specified finding exists; 
 57.29     (2) the time allowed is reasonable; or 
 57.30     (3) the commissioner should reduce district general 
 57.31  education revenue. 
 57.32     The board must give the commissioner written notice of the 
 57.33  board's decision within 30 days of receipt of the audit report.  
 57.34  After making any further investigations the commissioner deems 
 57.35  necessary, the commissioner must decide whether or not to adhere 
 57.36  to the commissioner's original notice and must notify the board 
 58.1   of the commissioner's decision. 
 58.2      (c) The commissioner may reduce or withhold state general 
 58.3   education revenues as the result of an audit.  The commissioner 
 58.4   may decide not to reduce or withhold state general education 
 58.5   revenues if the district corrects the specified finding, or 
 58.6   after receiving the district's notice disputing the finding, the 
 58.7   commissioner decides the finding does not exist. 
 58.8      Sec. 14.  Minnesota Statutes 2000, section 124D.453, 
 58.9   subdivision 3, is amended to read: 
 58.10     Subd. 3.  [CAREER AND TECHNICAL AID.] A district's career 
 58.11  and technical education aid for fiscal years 2000 and 2001 2002 
 58.12  and later equals the lesser of: 
 58.13     (a) $73 times the district's average daily membership in 
 58.14  grades 10 to 12; or 
 58.15     (b) 25 percent of approved expenditures for the following: 
 58.16     (1) salaries paid to essential, licensed personnel 
 58.17  providing direct instructional services to students in that 
 58.18  fiscal year for services rendered in the district's approved 
 58.19  career and technical education programs; 
 58.20     (2) contracted services provided by a public or private 
 58.21  agency other than a Minnesota school district or cooperative 
 58.22  center under subdivision 7; 
 58.23     (3) necessary travel between instructional sites by 
 58.24  licensed career and technical education personnel; 
 58.25     (4) necessary travel by licensed career and technical 
 58.26  education personnel for vocational student organization 
 58.27  activities held within the state for instructional purposes; 
 58.28     (5) curriculum development activities that are part of a 
 58.29  five-year plan for improvement based on program assessment; 
 58.30     (6) necessary travel by licensed career and technical 
 58.31  education personnel for noncollegiate credit bearing 
 58.32  professional development; and 
 58.33     (7) specialized vocational instructional supplies. 
 58.34     (c) Up to ten percent of a district's career and technical 
 58.35  aid may be spent on equipment purchases.  Districts using career 
 58.36  and technical aid for equipment purchases must report to the 
 59.1   department on the improved learning opportunities for students 
 59.2   that result from the investment in equipment.  
 59.3      (d) Up to ten percent of a district's career and technical 
 59.4   aid may be spent on salaries paid to licensed school counselors. 
 59.5      Sec. 15.  Minnesota Statutes 2000, section 124D.69, 
 59.6   subdivision 1, is amended to read: 
 59.7      Subdivision 1.  [AID.] If a pupil enrolls in an alternative 
 59.8   program, eligible under section 124D.68, subdivision 3, 
 59.9   paragraph (d), or subdivision 4, operated by a private 
 59.10  organization that has contracted with a school district to 
 59.11  provide educational services for eligible pupils under section 
 59.12  124D.68, subdivision 2, the district contracting with the 
 59.13  private organization must reimburse the provider an amount equal 
 59.14  to at least 90 95 percent of the district's average general 
 59.15  education less basic skills revenue per pupil unit times the 
 59.16  number of pupil units for pupils attending the program.  Basic 
 59.17  skills revenue shall be paid according to section 126C.10, 
 59.18  subdivision 4.  Compensatory revenue must be allocated according 
 59.19  to section 126C.15, subdivision 2.  For a pupil attending the 
 59.20  program part time, the revenue paid to the program must be 
 59.21  reduced proportionately, according to the amount of time the 
 59.22  pupil attends the program, and revenue paid to the district 
 59.23  shall be reduced accordingly.  Pupils for whom a district 
 59.24  provides reimbursement may not be counted by the district for 
 59.25  any purpose other than computation of general education 
 59.26  revenue.  If payment is made to a district or program for a 
 59.27  pupil under this section, the department must not make a payment 
 59.28  for the same pupil under section 124D.68, subdivision 9. 
 59.29     <b>[EFFECTIVE DATE.]</b> This section is effective for revenue for 
 59.30  fiscal year 2002 and later. 
 59.31     Sec. 16.  Minnesota Statutes 2000, section 124D.74, 
 59.32  subdivision 1, is amended to read: 
 59.33     Subdivision 1.  [PROGRAM DESCRIBED.] American Indian 
 59.34  language and culture education programs are programs in public 
 59.35  elementary and secondary schools, nonsectarian nonpublic, 
 59.36  community, tribal, or alternative schools enrolling American 
 60.1   Indian children designed: 
 60.2      (1) to support post-secondary preparation for pupils; 
 60.3      (2) to support the academic achievement of American Indian 
 60.4   students; 
 60.5      (3) to make the curriculum more relevant to the needs, 
 60.6   interests, and cultural heritage of American Indian pupils; 
 60.7      (2) (4) to provide positive reinforcement of the self-image 
 60.8   of American Indian pupils; and 
 60.9      (3) (5) to develop intercultural awareness among pupils, 
 60.10  parents, and staff; and 
 60.11     (6) to supplement, not supplant, state and federal 
 60.12  educational and cocurricular programs.  
 60.13  Program components may include:  instruction in American Indian 
 60.14  language, literature, history, and culture development of 
 60.15  support components for students in the areas of academic 
 60.16  achievement, retention, and attendance; development of support 
 60.17  components for staff, including in-service training and 
 60.18  technical assistance in methods of teaching American Indian 
 60.19  pupils; research projects, including experimentation with and 
 60.20  evaluation of methods of relating to American Indian pupils; 
 60.21  provision of personal and vocational counseling to American 
 60.22  Indian pupils; modification of curriculum, instructional 
 60.23  methods, and administrative procedures to meet the needs of 
 60.24  American Indian pupils; and establishment of cooperative 
 60.25  liaisons with nonsectarian nonpublic, community, tribal or 
 60.26  alternative schools offering curricula which reflect American 
 60.27  Indian culture supplemental instruction in American Indian 
 60.28  language, literature, history, and culture.  Districts offering 
 60.29  programs may make contracts for the provision of program 
 60.30  components by nonsectarian nonpublic, community, tribal or 
 60.31  alternative schools establishing cooperative liaisons with 
 60.32  tribal programs and American Indian social service agencies.  
 60.33  These programs may also be provided as components of early 
 60.34  childhood and family education programs. 
 60.35     Sec. 17.  Minnesota Statutes 2000, section 124D.74, 
 60.36  subdivision 2, is amended to read: 
 61.1      Subd. 2.  [VOLUNTARY ENROLLMENT.] Enrollment in American 
 61.2   Indian language and culture education programs must be 
 61.3   voluntary.  School districts and participating schools must make 
 61.4   affirmative efforts to encourage participation.  They shall 
 61.5   encourage parents to visit classes or come to school for a 
 61.6   conference explaining the nature of the program and provide 
 61.7   visits by school staff to parents' homes to explain the nature 
 61.8   of the program. 
 61.9      Sec. 18.  Minnesota Statutes 2000, section 124D.74, 
 61.10  subdivision 3, is amended to read: 
 61.11     Subd. 3.  [ENROLLMENT OF OTHER CHILDREN; SHARED TIME 
 61.12  ENROLLMENT.] To the extent it is economically feasible, a 
 61.13  district or participating school may make provision for the 
 61.14  voluntary enrollment of non-American Indian children in the 
 61.15  instructional components of an American Indian language and 
 61.16  culture education program in order that they may acquire an 
 61.17  understanding of the cultural heritage of the American Indian 
 61.18  children for whom that particular program is designed.  However, 
 61.19  in determining eligibility to participate in a program, priority 
 61.20  must be given to American Indian children.  American Indian 
 61.21  children and other children enrolled in an existing nonpublic 
 61.22  school system may be enrolled on a shared time basis in American 
 61.23  Indian language and culture education programs. 
 61.24     Sec. 19.  Minnesota Statutes 2000, section 124D.74, 
 61.25  subdivision 4, is amended to read: 
 61.26     Subd. 4.  [LOCATION OF PROGRAMS.] American Indian language 
 61.27  and culture education programs must be located in facilities in 
 61.28  which regular classes in a variety of subjects are offered on a 
 61.29  daily basis.  Programs may operate on an extended day or 
 61.30  extended year basis. 
 61.31     Sec. 20.  Minnesota Statutes 2000, section 124D.74, 
 61.32  subdivision 6, is amended to read: 
 61.33     Subd. 6.  [NONVERBAL COURSES AND EXTRACURRICULAR 
 61.34  ACTIVITIES.] In predominantly nonverbal subjects, such as art, 
 61.35  music, and physical education, American Indian children shall 
 61.36  participate fully and on an equal basis with their 
 62.1   contemporaries in school classes provided for these subjects.  
 62.2   Every school district or participating school shall ensure to 
 62.3   children enrolled in American Indian language and culture 
 62.4   education programs an equal and meaningful opportunity to 
 62.5   participate fully with other children in all extracurricular 
 62.6   activities.  This subdivision shall not be construed to prohibit 
 62.7   instruction in nonverbal subjects or extracurricular activities 
 62.8   which relate to the cultural heritage of the American Indian 
 62.9   children, or which are otherwise necessary to accomplish the 
 62.10  objectives described in sections 124D.71 to 124D.82. 
 62.11     Sec. 21.  Minnesota Statutes 2000, section 124D.75, 
 62.12  subdivision 6, is amended to read: 
 62.13     Subd. 6.  [PERSONS ELIGIBLE FOR EMPLOYMENT; EXEMPTIONS.] 
 62.14  Any person licensed under this section shall be eligible for 
 62.15  employment by a school board or a participating school as a 
 62.16  teacher in an American Indian language and culture education 
 62.17  program in which the American Indian language or culture in 
 62.18  which the person is licensed is taught.  A school district or 
 62.19  participating school may prescribe only those additional 
 62.20  qualifications for teachers licensed under this section as are 
 62.21  approved by the board of teaching.  Any school board or 
 62.22  participating school upon request may be exempted from the 
 62.23  licensure requirements of this section in the hiring of one or 
 62.24  more American Indian language and culture education teachers for 
 62.25  any school year in which compliance would, in the opinion of the 
 62.26  commissioner, create a hardship in the securing of the teachers. 
 62.27     Sec. 22.  Minnesota Statutes 2000, section 124D.76, is 
 62.28  amended to read: 
 62.29     124D.76 [TEACHERS AIDES; COMMUNITY COORDINATORS.] 
 62.30     In addition to employing American Indian language and 
 62.31  culture education teachers, each district or participating 
 62.32  school providing programs pursuant to sections 124D.71 to 
 62.33  124D.82 may employ teachers' aides.  Teachers' aides must not be 
 62.34  employed for the purpose of supplanting American Indian language 
 62.35  and culture education teachers. 
 62.36     Any district or participating school which conducts 
 63.1   American Indian language and culture education programs pursuant 
 63.2   to sections 124D.71 to 124D.82 must employ one or more full-time 
 63.3   or part-time community coordinators if there are 100 or more 
 63.4   students enrolled in the program.  Community coordinators shall 
 63.5   promote communication understanding, and cooperation between the 
 63.6   schools and the community and shall visit the homes of children 
 63.7   who are to be enrolled in an American Indian language and 
 63.8   culture education program in order to convey information about 
 63.9   the program. 
 63.10     Sec. 23.  Minnesota Statutes 2000, section 124D.78, 
 63.11  subdivision 1, is amended to read: 
 63.12     Subdivision 1.  [PARENT COMMITTEE.] School boards and 
 63.13  American Indian schools must provide for the maximum involvement 
 63.14  of parents of children enrolled in education programs, including 
 63.15  language and culture education programs, programs for elementary 
 63.16  and secondary grades, special education programs, and support 
 63.17  services.  Accordingly, the board of a school district in which 
 63.18  there are ten or more American Indian children enrolled and each 
 63.19  American Indian school must establish a parent committee.  If a 
 63.20  committee whose membership consists of a majority of parents of 
 63.21  American Indian children has been or is established according to 
 63.22  federal, tribal, or other state law, that committee may serve as 
 63.23  the committee required by this section and is subject to, at 
 63.24  least, the requirements of this subdivision and subdivision 2.  
 63.25     The parent committee must develop its recommendations in 
 63.26  consultation with the curriculum advisory committee required by 
 63.27  section 120B.11, subdivision 3.  This committee must afford 
 63.28  parents the necessary information and the opportunity 
 63.29  effectively to express their views concerning all aspects of 
 63.30  American Indian education and the educational needs of the 
 63.31  American Indian children enrolled in the school or program.  The 
 63.32  committee must also address the need for adult education 
 63.33  programs for American Indian people in the community.  The board 
 63.34  or American Indian school must ensure that programs are planned, 
 63.35  operated, and evaluated with the involvement of and in 
 63.36  consultation with parents of children served by the programs.  
 64.1      Sec. 24.  Minnesota Statutes 2000, section 124D.81, 
 64.2   subdivision 1, is amended to read: 
 64.3      Subdivision 1.  [GRANTS; PROCEDURES.] Each fiscal year the 
 64.4   commissioner of children, families, and learning must make 
 64.5   grants to no fewer than six American Indian language and culture 
 64.6   education programs.  At least three programs must be in urban 
 64.7   areas and at least three must be on or near reservations.  The 
 64.8   board of a local district, a participating school or a group of 
 64.9   boards may develop a proposal for grants in support of American 
 64.10  Indian language and culture education programs.  Proposals may 
 64.11  provide for contracts for the provision of program components by 
 64.12  nonsectarian nonpublic, community, tribal, or alternative 
 64.13  schools.  The commissioner shall prescribe the form and manner 
 64.14  of application for grants, and no grant shall be made for a 
 64.15  proposal not complying with the requirements of sections 124D.71 
 64.16  to 124D.82.  The commissioner must submit all proposals to the 
 64.17  state advisory task force committee on American Indian language 
 64.18  and culture education programs for its recommendations 
 64.19  concerning approval, modification, or disapproval and the 
 64.20  amounts of grants to approved programs. 
 64.21     Sec. 25.  Minnesota Statutes 2000, section 124D.81, 
 64.22  subdivision 3, is amended to read: 
 64.23     Subd. 3.  [ADDITIONAL REQUIREMENTS.] Each district 
 64.24  receiving a grant under this section must each year conduct a 
 64.25  count of American Indian children in the schools of the 
 64.26  district; test for achievement; identify the extent of other 
 64.27  educational needs of the children to be enrolled in the American 
 64.28  Indian language and culture education program; and classify the 
 64.29  American Indian children by grade, level of educational 
 64.30  attainment, age and achievement.  Participating schools must 
 64.31  maintain records concerning the needs and achievements of 
 64.32  American Indian children served. 
 64.33     Sec. 26.  Minnesota Statutes 2000, section 124D.81, 
 64.34  subdivision 5, is amended to read: 
 64.35     Subd. 5.  [RECORDS.] Participating schools and districts 
 64.36  must keep records and afford access to them as the commissioner 
 65.1   finds necessary to ensure that American Indian language and 
 65.2   culture education programs are implemented in conformity with 
 65.3   sections 124D.71 to 124D.82.  Each school district or 
 65.4   participating school must keep accurate, detailed, and separate 
 65.5   revenue and expenditure accounts for pilot American Indian 
 65.6   language and culture education programs funded under this 
 65.7   section. 
 65.8      Sec. 27.  Minnesota Statutes 2000, section 124D.81, 
 65.9   subdivision 6, is amended to read: 
 65.10     Subd. 6.  [MONEY FROM OTHER SOURCES.] A district or 
 65.11  participating school providing American Indian language and 
 65.12  culture education programs shall be eligible to receive moneys 
 65.13  for these programs from other government agencies and from 
 65.14  private sources when the moneys are available. 
 65.15     Sec. 28.  Minnesota Statutes 2000, section 124D.81, 
 65.16  subdivision 7, is amended to read: 
 65.17     Subd. 7.  [EXCEPTIONS.] Nothing in sections 124D.71 to 
 65.18  124D.82 shall be construed as prohibiting a district or school 
 65.19  from implementing an American Indian language and culture 
 65.20  education program which is not in compliance with sections 
 65.21  124D.71 to 124D.82 if the proposal and plan for that program is 
 65.22  not funded pursuant to this section. 
 65.23     Sec. 29.  [124D.945] [PERFORMANCE INCENTIVE POOL PROGRAM.] 
 65.24     Subdivision 1.  [ESTABLISHMENT.] A performance incentive 
 65.25  pool program is established for school districts or school sites 
 65.26  to create new compensation packages and career paths for 
 65.27  teachers built around measurable student outcomes and 
 65.28  improvement of teaching. 
 65.29     Subd. 2.  [ELIGIBILITY; APPLICATION.] (a) To participate in 
 65.30  this program, a school district or school site must: 
 65.31     (1) fully implement the graduation standards within a 
 65.32  specified time period; 
 65.33     (2) have specific assessment and evaluation tools to 
 65.34  measure student performance and progress; 
 65.35     (3) have measures to show improved student attendance and 
 65.36  completion rates; 
 66.1      (4) show evidence of professional development that aligns 
 66.2   curriculum and instruction; 
 66.3      (5) have measures of student, family, and community 
 66.4   involvement and satisfaction; 
 66.5      (6) maintain a data system with information about students 
 66.6   and their academic progress that provides parents and the public 
 66.7   with understandable information; 
 66.8      (7) use a compensation structure that provides professional 
 66.9   options for teachers whose primary role is to provide student 
 66.10  instruction and that eliminates pay increases tied to years of 
 66.11  service; and 
 66.12     (8) provide other necessary information required by the 
 66.13  commissioner. 
 66.14     The commissioner shall consider applications submitted by a 
 66.15  school district and the exclusive representative of the teachers 
 66.16  for participation in the incentive pool program.  To receive 
 66.17  funding, the school district and the exclusive representative of 
 66.18  the teachers must formally adopt a collective bargaining 
 66.19  agreement, a memorandum of understanding, or a legal document 
 66.20  that implements a new compensation plan that includes all 
 66.21  teachers in the school district or school site. 
 66.22     (b) To be eligible to participate in this program, a school 
 66.23  district or school site must submit an application to the 
 66.24  commissioner in the form and manner the commissioner prescribes. 
 66.25     (c) The commissioner shall select applicants that qualify 
 66.26  for this program, notify school districts and school sites about 
 66.27  the program, develop and disseminate application materials, and 
 66.28  carry out other activities needed to implement this section.  
 66.29     Subd. 3.  [INCENTIVE.] A school district or school site 
 66.30  shall receive up to $150 per adjusted marginal cost pupil unit 
 66.31  in addition to any other funding for each school year that the 
 66.32  district or site participates in the program.  
 66.33     Subd. 4.  [EXPIRATION.] This section expires June 30, 2005. 
 66.34     Sec. 30.  Minnesota Statutes 2000, section 126C.05, 
 66.35  subdivision 15, is amended to read: 
 66.36     Subd. 15.  [LEARNING YEAR PUPIL UNITS.] (a) When a pupil is 
 67.1   enrolled in a learning year program under section 124D.128, an 
 67.2   area learning center under sections 123A.05 and 123A.06, an 
 67.3   alternative program approved by the commissioner, or a contract 
 67.4   alternative program under section 124D.68, subdivision 3, 
 67.5   paragraph (d), or subdivision 3a, for more than 1,020 hours in a 
 67.6   school year for a secondary student, more than 935 hours in a 
 67.7   school year for an elementary student, or more than 425 hours in 
 67.8   a school year for a kindergarten student without a disability, 
 67.9   that pupil may be counted as more than one pupil in average 
 67.10  daily membership.  The amount in excess of one pupil must be 
 67.11  determined by the ratio of the number of hours of instruction 
 67.12  provided to that pupil in excess of:  (i) the greater of 1,020 
 67.13  hours or the number of hours required for a full-time secondary 
 67.14  pupil in the district to 1,020 for a secondary pupil; (ii) the 
 67.15  greater of 935 hours or the number of hours required for a 
 67.16  full-time elementary pupil in the district to 935 for an 
 67.17  elementary pupil in grades 1 through 6; and (iii) the greater of 
 67.18  425 hours or the number of hours required for a full-time 
 67.19  kindergarten student without a disability in the district to 425 
 67.20  for a kindergarten student without a disability.  Hours that 
 67.21  occur after the close of the instructional year in June shall be 
 67.22  attributable to the following fiscal year.  A kindergarten 
 67.23  student must not be counted as more than 1.2 pupils in average 
 67.24  daily membership under this subdivision. 
 67.25     (b)(i) To receive general education revenue for a pupil in 
 67.26  an alternative program that has an independent study component, 
 67.27  a district must meet the requirements in this paragraph.  The 
 67.28  district must develop, with for the pupil, a continual learning 
 67.29  plan for the pupil.  A district must allow a minor pupil's 
 67.30  parent or guardian to participate in developing the plan, if the 
 67.31  parent or guardian wants to participate.  The plan must identify 
 67.32  the learning experiences and expected outcomes needed for 
 67.33  satisfactory credit for the year and for graduation.  The plan 
 67.34  must be updated each year consistent with section 124D.128, 
 67.35  subdivision 3.  Each school district that has a state-approved 
 67.36  public alternative program must reserve revenue in an amount 
 68.1   equal to at least 90 percent of the district average general 
 68.2   education revenue per pupil unit less compensatory revenue per 
 68.3   pupil unit times the number of pupil units generated by students 
 68.4   attending a state-approved public alternative program.  The 
 68.5   amount of reserved revenue available under this subdivision may 
 68.6   only be spent for program costs associated with the 
 68.7   state-approved public alternative program.  Compensatory revenue 
 68.8   must be allocated according to section 126C.15, subdivision 2. 
 68.9      (ii) General education revenue for a pupil in an approved 
 68.10  alternative program without an independent study component must 
 68.11  be prorated for a pupil participating for less than a full year, 
 68.12  or its equivalent.  The district must develop for the pupil, a 
 68.13  continual learning plan consistent with section 124D.128, 
 68.14  subdivision 3.  Each school district that has a state-approved 
 68.15  public alternative program must reserve revenue in an amount 
 68.16  equal to at least 90 percent of the district average general 
 68.17  education revenue per pupil unit less compensatory revenue per 
 68.18  pupil unit times the number of pupil units generated by students 
 68.19  attending a state-approved public alternative program.  The 
 68.20  amount of reserved revenue available under this subdivision may 
 68.21  only be spent for program costs associated with the 
 68.22  state-approved public alternative program.  Compensatory revenue 
 68.23  must be allocated according to section 126C.15, subdivision 2.  
 68.24     (iii) General education revenue for a pupil in an approved 
 68.25  alternative program that has an independent study component must 
 68.26  be paid for each hour of teacher contact time and each hour of 
 68.27  independent study time completed toward a credit or graduation 
 68.28  standards necessary for graduation.  Average daily membership 
 68.29  for a pupil shall equal the number of hours of teacher contact 
 68.30  time and independent study time divided by 1,020. 
 68.31     (iv) For an alternative program having an independent study 
 68.32  component, the commissioner shall require a description of the 
 68.33  courses in the program, the kinds of independent study involved, 
 68.34  the expected learning outcomes of the courses, and the means of 
 68.35  measuring student performance against the expected outcomes.  
 68.36     Sec. 31.  [INTEGRATION REVENUE REPORT.] 
 69.1      The department of children, families, and learning must 
 69.2   report to the education committees of the legislature by January 
 69.3   15, 2002, on the distribution of integration revenue under 
 69.4   Minnesota Statutes, section 124D.86.  The report must include a 
 69.5   recommendation for consolidating the four tiers of integration 
 69.6   revenue under Minnesota Statutes, section 124D.86, subdivision 
 69.7   3, and funding integration based on factors including, but not 
 69.8   limited to, numbers of pupils served by the district's 
 69.9   integration plan, school district participation in an 
 69.10  integration plan, level of services provided under the plan, 
 69.11  costs of services provided under the plan, or other factors that 
 69.12  provide for an equitable distribution on integration revenue.  
 69.13  In addition, the report should analyze funding under the magnet 
 69.14  school grants, including whether rural areas of Minnesota should 
 69.15  be included in the metropolitan magnet program under Minnesota 
 69.16  Statutes, section 124D.88. 
 69.17     Sec. 32.  [APPROPRIATIONS.] 
 69.18     Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
 69.19  LEARNING.] The sums indicated in this section are appropriated 
 69.20  from the general fund, unless otherwise indicated, to the 
 69.21  department of children, families, and learning for the fiscal 
 69.22  years designated.  
 69.23     Subd. 2.  [STATEWIDE TESTING AND GRADUATION STANDARDS 
 69.24  SUPPORT.] For supporting implementation of the graduation 
 69.25  standards: 
 69.26       $6,500,000     .....     2002 
 69.27       $6,500,000     .....     2003 
 69.28     Any balance in the first year does not cancel but is 
 69.29  available in the second year. 
 69.30     Subd. 3.  [ADVANCED PLACEMENT AND INTERNATIONAL 
 69.31  BACCALAUREATE PROGRAMS.] For the state advanced placement and 
 69.32  international baccalaureate programs: 
 69.33       $1,875,000     .....     2002 
 69.34       $1,875,000     .....     2003 
 69.35     Notwithstanding Minnesota Statutes, section 120B.13, 
 69.36  subdivisions 1 and 2, $375,000 each year is for teachers to 
 70.1   attend subject matter summer training programs and follow-up 
 70.2   support workshops approved by the advanced placement or 
 70.3   international baccalaureate programs.  The amount of the subsidy 
 70.4   for each teacher attending an advanced placement or 
 70.5   international baccalaureate summer training program or workshop 
 70.6   shall be the same.  The commissioner shall determine the payment 
 70.7   process and the amount of the subsidy. 
 70.8      Notwithstanding Minnesota Statutes, section 120B.13, 
 70.9   subdivision 3, in each year to the extent of available 
 70.10  appropriations, the commissioner shall pay all examination fees 
 70.11  for all students sitting for an advanced placement examination, 
 70.12  international baccalaureate examination, or both.  If this 
 70.13  amount is not adequate, the commissioner may pay less than the 
 70.14  full examination fee. 
 70.15     Any balance in the first year does not cancel but is 
 70.16  available in the second year. 
 70.17     Subd. 4.  [CHARTER SCHOOL BUILDING LEASE AID.] For building 
 70.18  lease aid according to Minnesota Statutes, section 124D.11, 
 70.19  subdivision 4: 
 70.20       $11,734,000    .....     2002 
 70.21       $12,907,000    .....     2003 
 70.22     The 2002 appropriation includes $1,114,000 for 2001 and 
 70.23  $10,620,000 for 2002. 
 70.24     The 2003 appropriation includes $1,180,000 for 2002 and 
 70.25  $11,727,000 for 2003.  
 70.26     Subd. 5.  [CHARTER SCHOOL STARTUP GRANTS.] For charter 
 70.27  school startup cost aid under Minnesota Statutes, section 
 70.28  124D.11: 
 70.29       $2,738,000     .....     2002 
 70.30       $3,143,000     .....     2003 
 70.31     The 2002 appropriation includes $273,000 for 2001 and 
 70.32  $2,465,000 for 2002.  
 70.33     The 2003 appropriation includes $274,000 for 2002 and 
 70.34  $2,869,000 for 2003. 
 70.35     Subd. 6.  [CHARTER SCHOOL INTEGRATION AID.] For grants to 
 70.36  charter schools to promote integration and desegregation 
 71.1   according to Minnesota Statutes, section 124D.11, subdivision 6, 
 71.2   paragraph (e): 
 71.3        $50,000        .....     2002 
 71.4        $50,000        .....     2003 
 71.5      Any balance in the first year does not cancel but is 
 71.6   available in the second year. 
 71.7      Subd. 7.  [BEST PRACTICES SEMINARS.] For best practices 
 71.8   graduation rule seminars and other professional development 
 71.9   capacity building activities that assure proficiency in teaching 
 71.10  and implementation of graduation rule standards: 
 71.11       $4,500,000     .....     2002
 71.12       $4,500,000     .....     2003
 71.13     Of this amount, for fiscal year 2002, $1,000,000 is for 
 71.14  arts via the Internet collaborative project between the Walker 
 71.15  Art Center and the Minneapolis Institute of Arts; $200,000 in 
 71.16  fiscal year 2002 is for the Lincoln Learning Center school in 
 71.17  independent school district No. 347, Willmar, for innovative 
 71.18  education programs created to prepare children who are 
 71.19  ill-prepared to learn due to poor oral language development and 
 71.20  too few prereading experiences; and $250,000 each year is for a 
 71.21  grant to A Chance to Grow/New Visions for the Minnesota Learning 
 71.22  Resource Center.  
 71.23     The commissioner shall consider a curriculum development 
 71.24  grant, consistent with the graduation rule, to develop curricula 
 71.25  in the area of natural sciences including botany, horticulture, 
 71.26  and zoology.  The grant shall also be used to provide 
 71.27  instructional materials on the Internet.  The commissioner shall 
 71.28  consider the Minnesota academic excellence foundation for a best 
 71.29  practices grant.  The commissioner shall consider best practices 
 71.30  grants to districts for developing gifted and talented services 
 71.31  that are integrated with the state's graduation standards. 
 71.32     Subd. 8.  [INTEGRATION AID.] For integration aid: 
 71.33       $59,795,000    .....     2002 
 71.34       $59,946,000    .....     2003 
 71.35     The 2002 appropriation includes $5,729,000 for 2001 and 
 71.36  $54,066,000 for 2002. 
 72.1      The 2003 appropriation includes $6,007,000 for 2002 and 
 72.2   $53,939,000 for 2003.  
 72.3      Subd. 9.  [INTEGRATION PROGRAMS.] For minority fellowship 
 72.4   grants according to Laws 1994, chapter 647, article 8, section 
 72.5   29; minority teacher incentives according to Minnesota Statutes, 
 72.6   section 122A.65; teachers of color grants according to Minnesota 
 72.7   Statutes, section 122A.64; and cultural exchange grants 
 72.8   according to Minnesota Statutes, section 124D.89: 
 72.9        $1,000,000     .....     2002
 72.10       $1,000,000     .....     2003
 72.11     Any balance in the first year does not cancel but is 
 72.12  available in the second year. 
 72.13     In awarding teacher of color grants, priority must be given 
 72.14  to districts that have students who are currently in the process 
 72.15  of completing their academic program. 
 72.16     Subd. 10.  [MAGNET SCHOOL GRANTS.] For magnet school and 
 72.17  program grants Minnesota Statutes, section 124D.871: 
 72.18       $2,800,000     .....     2002 
 72.19     Of this amount, for fiscal year 2002, $239,000 is for 
 72.20  independent school district No. 199, Inver Grove; $182,000 is 
 72.21  for independent school district No. 832, Mahtomedi; $536,000 is 
 72.22  for independent school district No. 834, Stillwater; $549,000 is 
 72.23  for independent school district No. 284, Wayzata; $534,000 is 
 72.24  for independent school district No. 624, White Bear Lake; and 
 72.25  $260,000 is for independent school district No. 347, Willmar. 
 72.26     Subd. 11.  [MAGNET SCHOOL STARTUP AID.] For magnet school 
 72.27  startup aid under Minnesota Statutes, section 124D.88: 
 72.28       $482,000       .....     2002 
 72.29       $326,000       .....     2003 
 72.30     The 2002 appropriation includes $25,000 for 2001 and 
 72.31  $457,000 for 2002.  
 72.32     The 2003 appropriation includes $51,000 for 2002 and 
 72.33  $275,000 for 2003. 
 72.34     Subd. 12.  [INTERDISTRICT DESEGREGATION OR INTEGRATION 
 72.35  TRANSPORTATION GRANTS.] For interdistrict desegregation or 
 72.36  integration transportation grants under Minnesota Statutes, 
 73.1   section 124D.87: 
 73.2        $2,932,000     .....     2003
 73.3      Subd. 13.  [AMERICAN INDIAN LANGUAGE AND CULTURE PROGRAMS.] 
 73.4   For grants to American Indian language and culture education 
 73.5   programs according to Minnesota Statutes 2000, section 124D.81, 
 73.6   subdivision 1: 
 73.7        $73,000        .....     2002
 73.8      The 2002 appropriation includes $73,000 for 2001 and $0 for 
 73.9   2002.  
 73.10     Subd. 14.  [AMERICAN INDIAN EDUCATION.] For certain 
 73.11  American Indian education programs in school districts: 
 73.12       $17,000        .....     2002
 73.13     The 2002 appropriation includes $17,000 for 2001 and $0 for 
 73.14  2002.  
 73.15     Subd. 15.  [SUCCESS FOR THE FUTURE.] For American Indian 
 73.16  success for the future grants according to Minnesota Statutes, 
 73.17  section 124D.81: 
 73.18       $2,297,000     .....     2002
 73.19       $2,387,000     .....     2003
 73.20     The 2002 appropriation includes $0 for 2001 and $2,297,000 
 73.21  for 2002. 
 73.22     The 2003 appropriation includes $255,000 for 2002 and 
 73.23  $2,132,000 for 2003. 
 73.24     Subd. 16.  [AMERICAN INDIAN SCHOLARSHIPS.] For American 
 73.25  Indian scholarships according to Minnesota Statutes, section 
 73.26  124D.84: 
 73.27       $1,875,000     .....     2002 
 73.28       $1,875,000     .....     2003 
 73.29     Any balance in the first year does not cancel but is 
 73.30  available in the second year. 
 73.31     Subd. 17.  [INDIAN TEACHER PREPARATION GRANTS.] (a) For 
 73.32  joint grants to assist Indian people to become teachers: 
 73.33       $190,000       .....     2002 
 73.34       $190,000       .....     2003 
 73.35     (b) Up to $70,000 each year is for a joint grant to the 
 73.36  University of Minnesota at Duluth and the Duluth school district.
 74.1      (c) Up to $40,000 each year is for a joint grant to each of 
 74.2   the following: 
 74.3      (1) Bemidji state university and the Red Lake school 
 74.4   district; 
 74.5      (2) Moorhead state university and a school district located 
 74.6   within the White Earth reservation; and 
 74.7      (3) Augsburg college, independent school district No. 625, 
 74.8   St. Paul, and the Minneapolis school district. 
 74.9      (d) Money not used for students at one location may be 
 74.10  transferred for use at another location. 
 74.11     (e) Any balance in the first year does not cancel but is 
 74.12  available in the second year. 
 74.13     Subd. 18.  [TRIBAL CONTRACT SCHOOLS.] For tribal contract 
 74.14  school aid according to Minnesota Statutes, section 124D.83: 
 74.15       $2,520,000     .....     2002
 74.16       $2,767,000     .....     2003
 74.17     The 2002 appropriation includes $192,000 for 2001 and 
 74.18  $2,328,000 for 2002. 
 74.19     The 2003 appropriation includes $258,000 for 2002 and 
 74.20  $2,509,000 for 2003. 
 74.21     Subd. 19.  [EARLY CHILDHOOD PROGRAMS AT TRIBAL 
 74.22  SCHOOLS.] For early childhood family education programs at 
 74.23  tribal contract schools: 
 74.24       $68,000        .....     2002 
 74.25       $68,000        .....     2003 
 74.26     Subd. 20.  [FIRST GRADE PREPAREDNESS.] For first grade 
 74.27  preparedness grants according to Minnesota Statutes, section 
 74.28  124D.081: 
 74.29       $7,500,000     .....     2002 
 74.30       $8,000,000     .....     2003
 74.31     Subd. 21.  [CAREER AND TECHNICAL EDUCATION AID.] For career 
 74.32  and technical education aid according to Minnesota Statutes, 
 74.33  section 124D.453: 
 74.34       $12,458,000    .....     2002 
 74.35       $12,496,000    .....     2003 
 74.36     The 2002 appropriation includes $1,242,000 for 2001 and 
 75.1   $11,216,000 for 2002.  
 75.2      The 2003 appropriation includes $1,246,000 for 2002 and 
 75.3   $11,250,000 for 2003. 
 75.4      Subd. 22.  [YOUTHWORKS PROGRAM.] For funding youthworks 
 75.5   programs according to Minnesota Statutes, sections 124D.37 to 
 75.6   124D.45: 
 75.7        $1,938,000     .....     2002 
 75.8        $1,938,000     .....     2003 
 75.9      A grantee organization may provide health and child care 
 75.10  coverage to the dependents of each participant enrolled in a 
 75.11  full-time youth works program to the extent such coverage is not 
 75.12  otherwise available.  Of this amount, $150,000 each year is 
 75.13  contingent upon the commission on national and community service 
 75.14  demonstrating to the commissioner that federal matching funds 
 75.15  are available for the service learning program. 
 75.16     Any balance in the first year does not cancel but is 
 75.17  available in the second year. 
 75.18     Subd. 23.  [EDUCATION AND EMPLOYMENT TRANSITIONS PROGRAM 
 75.19  GRANTS.] For education and employment transitions programming 
 75.20  under Minnesota Statutes, section 124D.46: 
 75.21       $1,300,000     .....     2002 
 75.22       $1,250,000     .....     2003 
 75.23     Of this appropriation, $250,000 each year is for ISEEK. 
 75.24     $750,000 in fiscal year 2002 and $750,000 in fiscal year 
 75.25  2003 is for youth apprenticeship grants. 
 75.26     $125,000 each year is to conduct a high school follow-up 
 75.27  survey to include first, third, and sixth year graduates of 
 75.28  Minnesota schools. 
 75.29     $125,000 each year is for grants to school districts for 
 75.30  the junior achievement program. 
 75.31     $50,000 in fiscal year 2002 is for the Westbrook-Walnut 
 75.32  Grove high school student entrepreneurship project. 
 75.33     Any balance in the first year does not cancel but is 
 75.34  available in the second year. 
 75.35     Subd. 24.  [LEARN AND EARN GRADUATION ACHIEVEMENT PROGRAM.] 
 75.36  For the learn and earn graduation achievement program according 
 76.1   to Minnesota Statutes, section 124D.32: 
 76.2        $725,000       .....     2002 
 76.3        $725,000       .....     2003 
 76.4      Any balance in the first year does not cancel but is 
 76.5   available in the second year. 
 76.6      Subd. 25.  [ADVANCE ACHIEVEMENT AND ACCOUNTABILITY.] For 
 76.7   the department of children, families, and learning to develop 
 76.8   statewide assessments and provide assistance to school districts 
 76.9   that are not making adequate progress on the Minnesota 
 76.10  comprehensive assessments: 
 76.11       $3,000,000     .....     2002 
 76.12       $3,000,000     .....     2003 
 76.13     Subd. 26.  [PERFORMANCE INCENTIVE POOL.] For a performance 
 76.14  incentive pool established under Minnesota Statutes, section 
 76.15  124D.945: 
 76.16       $2,500,000     .....     2002 
 76.17       $5,000,000     .....     2003 
 76.18     If the appropriations under this subdivision are 
 76.19  insufficient to fund all program participants, the participants 
 76.20  shall be prioritized by the commissioner by the date of receipt 
 76.21  of the application.  Some participants may receive less than the 
 76.22  maximum per pupil amount available under Minnesota Statutes, 
 76.23  section 124D.945, subdivision 3. 
 76.24     Any balance in the first year does not cancel but is 
 76.25  available in the second year. 
 76.26     Subd. 27.  [TEACHERS FOR THE 21ST CENTURY.] For the teacher 
 76.27  shortage initiative established under Minnesota Statutes, 
 76.28  section 124A.73: 
 76.29       $2,500,000     .....     2002 
 76.30       $2,500,000     .....     2003 
 76.31     Of this amount, $50,000 each year is to be used for 
 76.32  evaluation of this initiative.  In the first year, the Minnesota 
 76.33  new teacher project under Laws 2000, chapter 489, article 6, 
 76.34  section 42, must be funded from this appropriation.  
 76.35     Any balance in the first year does not cancel but is 
 76.36  available in the second year. 
 77.1      Subd. 28.  [COLLABORATIVE URBAN EDUCATOR RECRUITMENT AND 
 77.2   TRAINING PROGRAMS.] For grants to collaborative urban educator 
 77.3   recruitment and training programs: 
 77.4        $1,300,000     .....     2002
 77.5        $1,300,000     .....     2003
 77.6      $500,000 each year is for the Southeast Asian teacher 
 77.7   program at Concordia University, St. Paul; $400,000 each year is 
 77.8   for the collaborative urban educator program at the University 
 77.9   of St. Thomas; and $400,000 each year is for the center for 
 77.10  excellence in urban teaching at Hamline University.  Grant 
 77.11  recipients must collaborate with urban and nonurban school 
 77.12  districts. 
 77.13     Any balance in the first year does not cancel but is 
 77.14  available in the second year. 
 77.15     Subd. 29.  [MEADOWBROOK COLLABORATIVE HOUSING PROJECT.] For 
 77.16  a grant to independent school district No. 283, St. Louis Park, 
 77.17  for the Meadowbrook Collaborative Housing Project to enhance 
 77.18  youth outreach services and to provide educational and 
 77.19  recreational programming for at-risk youth through the 
 77.20  development of formal after school programming and weekend youth 
 77.21  activities: 
 77.22       $50,000        .....     2002 
 77.23     The collaborative must include a cross-section of public 
 77.24  and private sector community representatives to develop services 
 77.25  to address specific community and social needs of children and 
 77.26  youth. 
 77.27     The funds may be made available to assist in staffing and 
 77.28  program development for the Meadowbrook Youth Center.  The 
 77.29  center must focus on reducing truancy, developing assets for 
 77.30  at-risk youth, providing adult mentoring, and developing 
 77.31  programs for structured time in order to minimize opportunities 
 77.32  for adverse activities. 
 77.33     Subd. 30.  [LIMITED ENGLISH PROFICIENCY STUDY.] For a study 
 77.34  of limited English proficiency programs: 
 77.35       $20,000     .....     2002 
 77.36     The department of children, families, and learning must 
 78.1   study current practices and program models as well as best 
 78.2   practice research into effective methodology for instructing 
 78.3   students with limited English proficiency so that they may 
 78.4   participate fully in English language classroom content and 
 78.5   develop appropriate assessments and instruments to determine the 
 78.6   effectiveness of programs for students with limited English 
 78.7   proficiency.  The instruments must address the effectiveness of 
 78.8   the curriculum being taught, the instruction being provided, the 
 78.9   professional development provided, the manner in which student 
 78.10  progress in acquiring English language proficiency is assessed, 
 78.11  as well as other factors pertinent to the instruction of 
 78.12  students with limited English proficiency.  The study shall 
 78.13  include best practice research-based methods of instructing 
 78.14  students who are not literate in their native language.  The 
 78.15  department shall make the results of the study as well as the 
 78.16  instruments available to teachers and other educators involved 
 78.17  in the design and implementation of programs for students with 
 78.18  limited English proficiency and promote the use of best 
 78.19  practices described in the study.  The department must submit 
 78.20  its report to the education committees of the legislature by 
 78.21  February 15, 2002. 
 78.22     Sec. 33.  [REPEALER.] 
 78.23     (a) Minnesota Statutes 2000, sections 120A.41; 124D.128, 
 78.24  subdivision 7; and 124D.85, are repealed. 
 78.25     (b) Laws 1999, chapter 241, article 3, section 5, as 
 78.26  amended by Laws 2000, chapter 489, article 4, section 9, is 
 78.27  repealed effective the day following final enactment. 
 78.28                             ARTICLE 3 
 78.29                         SPECIAL EDUCATION 
 78.30     Section 1.  Minnesota Statutes 2000, section 122A.61, 
 78.31  subdivision 1, is amended to read: 
 78.32     Subdivision 1.  [STAFF DEVELOPMENT REVENUE.] A district is 
 78.33  required to reserve an amount equal to at least two percent of 
 78.34  the basic revenue under section 126C.10, subdivision 2, for 
 78.35  in-service education for programs under section 120B.22, 
 78.36  subdivision 2, for staff development plans, including plans for 
 79.1   challenging instructional activities and experiences under 
 79.2   section 122A.60, and for curriculum development and programs, 
 79.3   other in-service education, teachers' workshops, teacher 
 79.4   conferences, the cost of substitute teachers staff development 
 79.5   purposes, preservice and in-service education for special 
 79.6   education professionals and paraprofessionals, and other related 
 79.7   costs for staff development efforts.  A district may annually 
 79.8   waive the requirement to reserve their basic revenue under this 
 79.9   section if a majority vote of the licensed teachers in the 
 79.10  district and a majority vote of the school board agree to a 
 79.11  resolution to waive the requirement.  A district in statutory 
 79.12  operating debt is exempt from reserving basic revenue according 
 79.13  to this section.  Districts may expend an additional amount of 
 79.14  unreserved revenue for staff development based on their needs.  
 79.15  With the exception of amounts reserved for staff development 
 79.16  from revenues allocated directly to school sites, the board must 
 79.17  initially allocate 50 percent of the reserved revenue to each 
 79.18  school site in the district on a per teacher basis, which must 
 79.19  be retained by the school site until used.  The board may retain 
 79.20  25 percent to be used for district wide staff development 
 79.21  efforts.  The remaining 25 percent of the revenue must be used 
 79.22  to make grants to school sites for best practices methods.  A 
 79.23  grant may be used for any purpose authorized under section 
 79.24  120B.22, subdivision 2, 122A.60, or for the costs of curriculum 
 79.25  development and programs, other in-service education, teachers' 
 79.26  workshops, teacher conferences, substitute teachers for staff 
 79.27  development purposes, and other staff development efforts, and 
 79.28  determined by the site professional development team.  The site 
 79.29  professional development team must demonstrate to the school 
 79.30  board the extent to which staff at the site have met the 
 79.31  outcomes of the program.  The board may withhold a portion of 
 79.32  initial allocation of revenue if the staff development outcomes 
 79.33  are not being met. 
 79.34     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 79.35  following final enactment.  
 79.36     Sec. 2.  Minnesota Statutes 2000, section 125A.515, is 
 80.1   amended to read: 
 80.2      125A.515 [PLACEMENT OF CHILDREN WITH AND WITHOUT 
 80.3   DISABILITIES; APPROVAL OF EDUCATION PROGRAM.] 
 80.4      Subdivision 1.  [PROGRAM APPROVAL.] The commissioner shall 
 80.5   approve education programs in care and treatment facilities for 
 80.6   placement of children with and without disabilities, including 
 80.7   detention centers, before being licensed by the department of 
 80.8   human services or the department of corrections.  Education 
 80.9   programs in these facilities shall conform to state and federal 
 80.10  education laws, including the Individuals with Disabilities 
 80.11  Education Act under United States Code, title 20, chapter 33.  
 80.12     Subd. 2.  [DEFINITION OF CARE AND TREATMENT 
 80.13  PLACEMENT.] Students with or without disabilities placed in the 
 80.14  following public or private facilities by someone other than the 
 80.15  district are considered to be placed for care and treatment: 
 80.16     (1) chemical dependency and other substance abuse treatment 
 80.17  centers; 
 80.18     (2) shelter care facilities; 
 80.19     (3) correctional facilities; 
 80.20     (4) residential treatment centers; 
 80.21     (5) group homes; 
 80.22     (6) mental health programs; and 
 80.23     (7) detention facilities. 
 80.24     Subd. 3.  [RESPONSIBILITIES FOR PROVIDING EDUCATION.] (a) 
 80.25  The district in which the facility is located must provide 
 80.26  regular education, special education, or both, to students with 
 80.27  or without disabilities placed in a facility for care and 
 80.28  treatment.  
 80.29     (b) For those education programs operated by the department 
 80.30  of corrections, the district shall be the department of 
 80.31  corrections.  The department of corrections may enter into an 
 80.32  agreement with a school district to share those responsibilities.
 80.33     (c) Placement for care and treatment does not of itself 
 80.34  require special education services. 
 80.35     (d) The providing district and the care and treatment 
 80.36  center shall enter into a cooperative agreement for providing 
 81.1   educational services to students placed within the center.  
 81.2      Subd. 4.  [WHEN EDUCATION IS REQUIRED.] Education services 
 81.3   must be provided to a student with or without disabilities 
 81.4   beginning within three days after entrance into the care and 
 81.5   treatment facility.  The first three days may be used to screen 
 81.6   the student for educational, social, and safety issues.  
 81.7      Subd. 5.  [WHEN DUE PROCESS BEGINS.] The number of school 
 81.8   days for determining due process procedures shall begin upon 
 81.9   enrollment in an education program.  
 81.10     Subd. 6.  [SHORT-TERM AND LONG-TERM PLACEMENTS.] A 
 81.11  placement for care and treatment is a short-term placement if 
 81.12  the anticipated duration of the placement is less than 31 school 
 81.13  days.  A placement for care and treatment is long term if it is 
 81.14  anticipated to extend beyond 30 days.  
 81.15     Subd. 7.  [EDUCATION PROGRAMS FOR STUDENTS WITH AND WITHOUT 
 81.16  DISABILITIES PLACED IN SHORT-TERM AND LONG-TERM PROGRAMS FOR 
 81.17  CARE AND TREATMENT.] (a) When the student is enrolled in the 
 81.18  educational program without an educational record or individual 
 81.19  education program plan, the district's procedures must include 
 81.20  immediate contact with the resident district to determine 
 81.21  whether the student has been identified as a student with a 
 81.22  disability and to request the student's education records.  
 81.23     (b) If a student placed for care and treatment has been 
 81.24  identified as disabled and has a current individual education 
 81.25  program plan: 
 81.26     (1) the resident district must send a facsimile copy to the 
 81.27  providing agency within 24 hours of receiving the request; 
 81.28     (2) the providing agency must conduct an individual 
 81.29  education program plan meeting to reach an agreement about 
 81.30  continuing or modifying special education services in accordance 
 81.31  with the current individual education program plan goals and 
 81.32  objectives and to determine whether additional evaluations are 
 81.33  necessary; and 
 81.34     (3) at least the following people shall receive written 
 81.35  notice to attend the individual education program plan meeting:  
 81.36     (i) the person or agency placing the pupil; 
 82.1      (ii) the resident district; 
 82.2      (iii) the appropriate teachers and related services staff 
 82.3   from the providing district; 
 82.4      (iv) the parents; and 
 82.5      (v) when appropriate, the pupil.  
 82.6      This meeting may be held in conjunction with a meeting 
 82.7   called by a placing agency.  
 82.8      (c) For a student who has not been identified as a student 
 82.9   with a disability: 
 82.10     (1) a screening must be conducted to determine the 
 82.11  student's need for further education, social, emotional, and 
 82.12  behavioral evaluation.  The screening must include a review of 
 82.13  the student's educational records; and 
 82.14     (2) based on the documented results of the screening, a 
 82.15  decision shall be made about the need for prereferral 
 82.16  interventions, the need for an appropriate evaluation to 
 82.17  determine special education eligibility, and whether an 
 82.18  evaluation can be completed before the student is transferred 
 82.19  out of the facility.  When it is determined the evaluation 
 82.20  cannot be completed due to the student's limited length of stay, 
 82.21  the student's need for an evaluation shall be documented and 
 82.22  communicated to the responsible agency where the student is 
 82.23  transferred.  
 82.24     Subd. 8.  [EDUCATION PROGRAMS FOR STUDENTS WITHOUT 
 82.25  DISABILITIES PLACED IN LONG-TERM PROGRAMS FOR CARE AND 
 82.26  TREATMENT.] (a) If the student does not meet the eligibility 
 82.27  criteria for special education, regular education services must 
 82.28  be provided in accordance with a personal education plan.  
 82.29     (b) A personal education plan shall include current 
 82.30  educational data, individual education goals, and an educational 
 82.31  transition plan for transition from the facility.  
 82.32     Subd. 9.  [WHEN A STUDENT WITH OR WITHOUT DISABILITIES 
 82.33  LEAVES THE FACILITY.] If a student with or without disabilities 
 82.34  has been in a care and treatment facility for 15 or more days, 
 82.35  the providing district must prepare an exit report summarizing 
 82.36  the regular education, special education, evaluation, progress 
 83.1   on education goals, and service information and must send the 
 83.2   report to the resident district, the receiving facility, the 
 83.3   parent, and any appropriate social service agency.  For students 
 83.4   with disabilities, this report must include a summary of current 
 83.5   levels of performance, progress, and any modifications made in 
 83.6   the pupil's individual education program plan or services.  
 83.7      Subd. 10.  [MINIMUM EDUCATIONAL SERVICES REQUIRED.] At a 
 83.8   minimum, the district must provide: 
 83.9      (1) the education necessary, including summer school 
 83.10  services, for the student with or without disabilities to 
 83.11  progress in the appropriate grade level for the successful 
 83.12  completion of the courses, programs, or classes in which the 
 83.13  student or pupil would have been enrolled if the student or 
 83.14  pupil were not placed for care and treatment; and 
 83.15     (2) a school day, of the same length as the school day of 
 83.16  the district in which the facility is located, unless the unique 
 83.17  needs of the student, as documented through the individual 
 83.18  education program plan or personal education plan, in 
 83.19  consultation with treatment providers, requires an alteration in 
 83.20  the length of the school day.  
 83.21     Subd. 11.  [PLACEMENT, SERVICES, AND DUE PROCESS 
 83.22  REQUIREMENTS FOR STUDENTS WITH AND WITHOUT DISABILITIES.] (a) 
 83.23  When a pupil's treatment and educational needs allow, education 
 83.24  shall be provided in a regular educational setting.  The 
 83.25  determination of the amount and site of integrated services must 
 83.26  be a joint decision between parents, the treatment and education 
 83.27  staff, and, when possible, final educational placement decisions 
 83.28  must be made by the individual education program plan team of 
 83.29  the providing educational agency.  Educational services shall be 
 83.30  provided in conformance with the least restrictive environment 
 83.31  principle of the Individuals with Disabilities Education Act 
 83.32  under United States Code, title 20, chapter 33.  
 83.33     (b) Districts shall develop alternative procedures for 
 83.34  implementing the legal requirements for observing the student in 
 83.35  a regular classroom and document previous interventions that 
 83.36  have been tried before the student placed for care and treatment 
 84.1   is identified as having a specific learning disability or an 
 84.2   emotional or behavioral disorder.  These alternative procedures 
 84.3   must be included in the district's entrance criteria for special 
 84.4   education.  The district and facility shall cooperatively 
 84.5   develop procedures to be used in emergency situations that 
 84.6   comply with the Minnesota Pupil Fair Dismissal Act under 
 84.7   sections 121A.40 to 121A.56, and other relevant state and 
 84.8   federal laws.  
 84.9      Subd. 12.  [REIMBURSEMENT FOR EDUCATION SERVICES.] (a) 
 84.10  Education services provided to pupils and regular education 
 84.11  students who have been placed for care and treatment are 
 84.12  reimbursable in accordance with special education and general 
 84.13  education statutes.  
 84.14     (b) The special education services provided to pupils in 
 84.15  accordance with an individual education program plan are 
 84.16  reimbursable with special education revenue.  
 84.17     (c) The indirect or consultative services provided in 
 84.18  conjunction with regular education prereferral interventions and 
 84.19  assessment provided to regular education students suspected of 
 84.20  being disabled and who have demonstrated learning or behavioral 
 84.21  problems in a screening are reimbursable with special education 
 84.22  revenue.  
 84.23     (d) Regular education, including screening, provided to 
 84.24  students with or without disabilities is not reimbursable with 
 84.25  special education revenue.  
 84.26     Subd. 13.  [STUDENTS UNABLE TO ATTEND SCHOOL BUT NOT PLACED 
 84.27  IN CARE AND TREATMENT FACILITIES.] Students with or without 
 84.28  disabilities who are absent from or predicted to be absent from 
 84.29  school for 15 consecutive or intermittent days, at home or in 
 84.30  facilities not licensed by the departments of corrections or 
 84.31  human services, are not students placed for care and treatment.  
 84.32  These students include students with and without disabilities 
 84.33  who are home due to accident or illness, in a hospital or other 
 84.34  medical facility, or in a day treatment center.  These students 
 84.35  are entitled to education services through their district of 
 84.36  residence.  
 85.1      Sec. 3.  Minnesota Statutes 2000, section 125A.76, 
 85.2   subdivision 1, is amended to read: 
 85.3      Subdivision 1.  [DEFINITIONS.] For the purposes of this 
 85.4   section, the definitions in this subdivision apply. 
 85.5      (a) "Base year" for fiscal year 1998 and later fiscal years 
 85.6   means the second fiscal year preceding the fiscal year for which 
 85.7   aid will be paid. 
 85.8      (b) "Basic revenue" has the meaning given it in section 
 85.9   126C.10, subdivision 2.  For the purposes of computing basic 
 85.10  revenue pursuant to this section, each child with a disability 
 85.11  shall be counted as prescribed in section 126C.05, subdivision 1.
 85.12     (c) "Essential personnel" means teachers, related services, 
 85.13  and support services staff providing direct services to 
 85.14  students, and support services staff carrying out due process 
 85.15  clerical work. 
 85.16     (d) "Average daily membership" has the meaning given it in 
 85.17  section 126C.05. 
 85.18     (e) "Program growth factor" means 1.08 for fiscal year 
 85.19  2002, and 1.046 for fiscal year 2003, and 1.07 for fiscal year 
 85.20  2004 and later. 
 85.21     (f) "Cross-subsidy reduction factor" means 1.0 for fiscal 
 85.22  years 2002 and 2003, 1.022 for fiscal years 2004 and 2005, and 
 85.23  1.0 for fiscal year 2006 and later. 
 85.24     Sec. 4.  Minnesota Statutes 2000, section 125A.76, 
 85.25  subdivision 4, is amended to read: 
 85.26     Subd. 4.  [STATE TOTAL SPECIAL EDUCATION AID.] The state 
 85.27  total special education aid for fiscal year 2000 equals 
 85.28  $463,000,000.  The state total special education aid for fiscal 
 85.29  year 2001 equals $474,000,000.  The state total special 
 85.30  education aid for later fiscal years equals:  
 85.31     (1) the state total special education aid for the preceding 
 85.32  fiscal year; times 
 85.33     (2) the program growth factor; times 
 85.34     (3) the cross-subsidy reduction factor; times 
 85.35     (4) the ratio of the state total average daily membership 
 85.36  for the current fiscal year to the state total average daily 
 86.1   membership for the preceding fiscal year. 
 86.2      Sec. 5.  Minnesota Statutes 2000, section 125A.79, 
 86.3   subdivision 1, is amended to read: 
 86.4      Subdivision 1.  [DEFINITIONS.] For the purposes of this 
 86.5   section, the definitions in this subdivision apply. 
 86.6      (a) "Unreimbursed special education cost" means the sum of 
 86.7   the following: 
 86.8      (1) expenditures for teachers' salaries, contracted 
 86.9   services, supplies, equipment, and transportation services 
 86.10  eligible for revenue under section 125A.76; plus 
 86.11     (2) expenditures for tuition bills received under sections 
 86.12  125A.03 to 125A.24 and 125A.65 for services eligible for revenue 
 86.13  under section 125A.76, subdivision 2; minus 
 86.14     (3) revenue for teachers' salaries, contracted services, 
 86.15  supplies, and equipment under section 125A.76; minus 
 86.16     (4) tuition receipts under sections 125A.03 to 125A.24 and 
 86.17  125A.65 for services eligible for revenue under section 125A.76, 
 86.18  subdivision 2. 
 86.19     (b) "General revenue" means for fiscal year 1996, the sum 
 86.20  of the general education revenue according to section 126C.10, 
 86.21  subdivision 1, as adjusted according to section 127A.47, 
 86.22  subdivision 7, plus the total referendum revenue according to 
 86.23  section 126C.17, subdivision 4.  For fiscal years 1997 and 
 86.24  later, "general revenue" means the sum of the general education 
 86.25  revenue according to section 126C.10, subdivision 1, as adjusted 
 86.26  according to section 127A.47, subdivisions 7 and 8, plus the 
 86.27  total referendum revenue minus transportation sparsity revenue 
 86.28  minus total operating capital revenue.  
 86.29     (c) "Average daily membership" has the meaning given it in 
 86.30  section 126C.05. 
 86.31     (d) "Program growth factor" means 1.044 for fiscal year 
 86.32  2002 and, 1.02 for fiscal year 2003, and 1.06 for fiscal year 
 86.33  2004 and later. 
 86.34     Sec. 6.  Minnesota Statutes 2000, section 125A.79, 
 86.35  subdivision 7, is amended to read: 
 86.36     Subd. 7.  [DISTRICT SPECIAL EDUCATION EXCESS COST AID.] (a) 
 87.1   A district's special education excess cost aid for fiscal year 
 87.2   2002 and later equals the state total special education excess 
 87.3   cost aid times the ratio of the district's initial excess cost 
 87.4   aid to the state total initial excess cost aid. 
 87.5      (b) In order to be eligible for aid under this subdivision, 
 87.6   a district must document and bill third-party revenue sources 
 87.7   for health-related services on a child's individual education 
 87.8   plan, individual interagency intervention plan, or 
 87.9   individualized family service plan. 
 87.10     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2002.  
 87.11     Sec. 7.  Laws 2000, chapter 489, article 3, section 24, is 
 87.12  amended to read: 
 87.13     Sec. 24.  [SPECIAL EDUCATION CROSS-SUBSIDY REVENUE.] 
 87.14     (a) For fiscal year 2000, a school district shall receive 
 87.15  an amount of revenue equal to $8.15 times the district's 
 87.16  adjusted marginal cost pupil units.  
 87.17     (b) For fiscal year 2001, a school district shall receive 
 87.18  an amount of revenue equal to $19 times the district's adjusted 
 87.19  marginal cost pupil units.  Special education cross-subsidy 
 87.20  revenue must be used to pay for a district's unfunded special 
 87.21  education costs that are currently cross-subsidized by a 
 87.22  district's general education revenue. 
 87.23     (c) The fiscal year 2001 revenue is paid entirely in fiscal 
 87.24  year 2001 based on estimated data.  By January 31, 2002, the 
 87.25  department of children, families, and learning shall recalculate 
 87.26  the revenue for each district using actual data, and shall 
 87.27  adjust the general education aid paid to school districts for 
 87.28  fiscal year 2002 by the amount of the difference between the 
 87.29  estimated revenue and the actual revenue. 
 87.30     Sec. 8.  [IDENTIFY REVENUE OPTIONS FOR COORDINATION OF 
 87.31  SERVICES.] By July 1, 2002, the commissioner of children, 
 87.32  families, and learning shall, in conjunction with the 
 87.33  commissioner of human services, develop a plan to identify 
 87.34  possible revenue options from medical assistance funds, 
 87.35  including targeted case management, and other appropriate 
 87.36  federal funds and develop a recommended procedure for use at the 
 88.1   local level for the purpose of coordination of services needed 
 88.2   to implement the individual interagency intervention plan 
 88.3   required in Minnesota Statutes, section 125A.023, subdivision 4, 
 88.4   paragraph (b), clause (4). 
 88.5      Sec. 9.  [STATE BILLING PROCESS REPORT AND PLAN.] 
 88.6      The commissioner of children, families, and learning, in 
 88.7   consultation with the commissioner of human services, shall 
 88.8   develop a central statewide billing process for school districts 
 88.9   to use to process third-party bills, including medical 
 88.10  assistance.  The commissioner of children, families, and 
 88.11  learning shall report to the education committees of the 
 88.12  legislature by February 1, 2002, on recommendations for a 
 88.13  statewide billing system to be implemented by January 1, 2003. 
 88.14     Sec. 10.  [BOARD OF TEACHING.] 
 88.15     The board of teaching must review and report to the 
 88.16  education committees of the 2002 legislature on rules that would 
 88.17  require board-approved teacher preparation programs to include 
 88.18  in their teacher preparation programs information on special 
 88.19  education laws, teaching strategies, and positive behavior 
 88.20  interventions.  
 88.21     Sec. 11.  [APPROPRIATIONS.] 
 88.22     Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
 88.23  LEARNING.] The sums indicated in this section are appropriated 
 88.24  from the general fund to the department of children, families, 
 88.25  and learning for the fiscal years designated. 
 88.26     Subd. 2.  [SPECIAL EDUCATION AID.] For special education 
 88.27  aid according to Minnesota Statutes, section 125A.75: 
 88.28       $507,448,000   .....     2002 
 88.29       $531,481,000   .....     2003 
 88.30     The 2002 appropriation includes $47,400,000 for 2001 and 
 88.31  $460,048,000 for 2002. 
 88.32     The 2003 appropriation includes $51,116,000 for 2002 and 
 88.33  $480,365,000 for 2003. 
 88.34     Subd. 3.  [AID FOR CHILDREN WITH A DISABILITY.] For aid 
 88.35  according to Minnesota Statutes, section 125A.75, subdivision 3, 
 88.36  for children with a disability placed in residential facilities 
 89.1   within the district boundaries for whom no district of residence 
 89.2   can be determined: 
 89.3        $1,877,000     .....     2002 
 89.4        $2,033,000     .....     2003 
 89.5      If the appropriation for either year is insufficient, the 
 89.6   appropriation for the other year is available.  Any balance in 
 89.7   the first year does not cancel but is available in the second 
 89.8   year. 
 89.9      Subd. 4.  [TRAVEL FOR HOME-BASED SERVICES.] For aid for 
 89.10  teacher travel for home-based services according to Minnesota 
 89.11  Statutes, section 125A.75, subdivision 1: 
 89.12       $135,000       .....     2002 
 89.13       $138,000       .....     2003 
 89.14     The 2002 appropriation includes $13,000 for 2001 and 
 89.15  $122,000 for 2002. 
 89.16     The 2003 appropriation includes $13,000 for 2002 and 
 89.17  $125,000 for 2003. 
 89.18     Subd. 5.  [SPECIAL EDUCATION EXCESS COST AID.] For excess 
 89.19  cost aid: 
 89.20       $102,665,000   .....     2002 
 89.21       $104,773,000   .....     2003 
 89.22     The 2002 appropriation includes $9,889,000 for 2001 and 
 89.23  $92,776,000 for 2002. 
 89.24     The 2003 appropriation includes $10,308,000 for 2002 and 
 89.25  $94,465,000 for 2003. 
 89.26     Subd. 6.  [LITIGATION COSTS.] For paying the costs a 
 89.27  district incurs under Minnesota Statutes, section 125A.75, 
 89.28  subdivision 8: 
 89.29       $375,000       .....     2002 
 89.30       $375,000       .....     2003 
 89.31     Subd. 7.  [TRANSITION PROGRAMS; STUDENTS WITH 
 89.32  DISABILITIES.] For aid for transition programs for pupils with 
 89.33  disabilities according to Minnesota Statutes, section 124D.454: 
 89.34       $8,954,000     .....     2002 
 89.35       $8,939,000     .....     2003 
 89.36     The 2002 appropriation includes $896,000 for 2001 and 
 90.1   $8,058,000 for 2002.  
 90.2      The 2003 appropriation includes $895,000 for 2002 and 
 90.3   $8,044,000 for 2003.  
 90.4      Subd. 8.  [COURT-PLACED SPECIAL EDUCATION REVENUE.] For 
 90.5   reimbursing serving school districts for unreimbursed eligible 
 90.6   expenditures attributable to children placed in the serving 
 90.7   school district by court action under Minnesota Statutes, 
 90.8   section 125A.79, subdivision 4: 
 90.9        $350,000       .....     2002 
 90.10       $350,000       .....     2003 
 90.11     Subd. 9.  [OUT-OF-STATE TUITION SPECIAL EDUCATION.] For 
 90.12  special education out-of-state tuition according to Minnesota 
 90.13  Statutes, section 125A.79, subdivision 8: 
 90.14       $250,000       .....     2002 
 90.15       $250,000       .....     2003 
 90.16     Subd. 10.  [WEB-BASED, INDIVIDUAL INTERAGENCY INTERVENTION 
 90.17  PLAN.] For ongoing development, administration, and interagency 
 90.18  training costs associated with a statewide, Web-based 
 90.19  application for the individual interagency intervention plan 
 90.20  required in Minnesota Statutes, section 125A.023: 
 90.21       $500,000     .....     2002 
 90.22       $500,000     .....     2003 
 90.23     Subd. 11.  [HIV/STI EDUCATION.] For regional training sites 
 90.24  for HIV/STI education in schools established under Laws 1997, 
 90.25  First Special Session chapter 4, article 6, section 18: 
 90.26       $550,000     .....     2002 
 90.27     Of this amount, $500,000 must be used for continued 
 90.28  development of the existing sites and $50,000 for department of 
 90.29  children, families, and learning technical assistance and 
 90.30  contract management services.  This appropriation is available 
 90.31  until June 30, 2003. 
 90.32                             ARTICLE 4 
 90.33             FACILITIES AND TECHNOLOGY; FUND TRANSFERS 
 90.34     Section 1.  Minnesota Statutes 2000, section 123B.57, 
 90.35  subdivision 8, is amended to read: 
 90.36     Subd. 8.  [HEALTH, SAFETY, AND ENVIRONMENTAL MANAGEMENT 
 91.1   COST.] (a) A district's cost for health, safety, and 
 91.2   environmental management is limited to the lesser of:  
 91.3      (1) actual cost to implement their plan; or 
 91.4      (2) an amount determined by the commissioner, based on 
 91.5   enrollment, building age, and size. 
 91.6      (b) The department may contract with regional service 
 91.7   organizations, private contractors, Minnesota safety council, or 
 91.8   state agencies to provide management assistance to school 
 91.9   districts for health and safety capital projects.  Management 
 91.10  assistance is the development of written programs for the 
 91.11  identification, recognition and control of hazards, and 
 91.12  prioritization and scheduling of district health and safety 
 91.13  capital projects.  The department shall not exclude private 
 91.14  contractors from the opportunity to provide any health and 
 91.15  safety services to school districts. 
 91.16     (c) Notwithstanding paragraph (b), the department may 
 91.17  approve revenue, up to the limit defined in paragraph (a) for 
 91.18  districts having an approved health, safety, and environmental 
 91.19  management plan that uses district staff to accomplish 
 91.20  coordination and provided services. 
 91.21     Sec. 2.  Minnesota Statutes 2000, section 123B.59, 
 91.22  subdivision 1, is amended to read: 
 91.23     Subdivision 1.  [TO QUALIFY.] An independent or special 
 91.24  school district qualifies to participate in the alternative 
 91.25  facilities bonding and levy program if the district has: 
 91.26     (1) more than 66 students per grade; 
 91.27     (2) over 1,850,000 square feet of space; 
 91.28     (3) and the average age of building space is 15 years or 
 91.29  older or over 1,500,000 square feet and the average age of 
 91.30  building space is 35 years or older; 
 91.31     (4) (3) insufficient funds from projected health and safety 
 91.32  revenue and capital facilities revenue to meet the requirements 
 91.33  for deferred maintenance, to make accessibility improvements, or 
 91.34  to make fire, safety, or health repairs; and 
 91.35     (5) (4) a ten-year facility plan approved by the 
 91.36  commissioner according to subdivision 2. 
 92.1      <b>[EFFECTIVE DATE.]</b> This section is effective for revenue for 
 92.2   fiscal year 2004 and later. 
 92.3      Sec. 3.  Minnesota Statutes 2000, section 125B.21, is 
 92.4   amended to read: 
 92.5      125B.21 [MINNESOTA EDUCATION TELECOMMUNICATIONS COUNCIL.] 
 92.6      Subdivision 1.  [STATE COUNCIL MEMBERSHIP.] The membership 
 92.7   of the Minnesota education telecommunications council 
 92.8   established in Laws 1993, First Special Session chapter 2, is 
 92.9   expanded to include representatives of elementary and secondary 
 92.10  education.  The membership shall consist of three 
 92.11  representatives from the University of Minnesota; three 
 92.12  representatives of the board of trustees for Minnesota state 
 92.13  colleges and universities; one representative of the higher 
 92.14  education services offices; one representative appointed by the 
 92.15  private college council; one representative selected by the 
 92.16  commissioner of administration; eight representatives selected 
 92.17  by the commissioner of children, families, and learning, at 
 92.18  least one of which must come from each of the six higher 
 92.19  education telecommunication regions; a representative from the 
 92.20  office of technology; two members each from the senate and the 
 92.21  house of representatives selected by the subcommittee on 
 92.22  committees of the committee on rules and administration of the 
 92.23  senate and the speaker of the house, one member from each body 
 92.24  must be a member of the minority party; and three 
 92.25  representatives of libraries, one representing regional public 
 92.26  libraries, one representing multitype libraries, and one 
 92.27  representing community libraries, selected by the governor; and 
 92.28  two members, one selected from and representing the higher 
 92.29  education regional coordinators and one selected from and 
 92.30  representing the kindergarten through grade 12 cluster regions.  
 92.31  The council shall serve as a forum to establish and advocate for 
 92.32  a statewide vision and plans for the use of distance learning 
 92.33  technologies, including: 
 92.34     (1) develop a statewide vision and plans for the use of 
 92.35  distance learning technologies and provide leadership in 
 92.36  implementing the use of such technologies the coordination and 
 93.1   collaboration of distance learning opportunities; 
 93.2      (2) recommend educational policy relating to 
 93.3   telecommunications the implementation of the use of distance 
 93.4   learning technologies; 
 93.5      (3) determine priorities for use the collaboration of 
 93.6   distance learning users; 
 93.7      (4) oversee coordination of networks for post-secondary 
 93.8   campuses, kindergarten through grade 12 education, and regional 
 93.9   and community libraries the implementation of educational policy 
 93.10  relating to telecommunications; 
 93.11     (5) review application for telecommunications access grants 
 93.12  under Minnesota Statutes, section 125B.20, and recommend to the 
 93.13  department grants for funding the exchange of ideas; 
 93.14     (6) determine priorities for grant funding proposals the 
 93.15  communications with state government and related agencies and 
 93.16  entities; and 
 93.17     (7) work with the information policy office to ensure 
 93.18  consistency of the operation of the learning network with 
 93.19  standards of an open system architecture the coordination of 
 93.20  networks for post-secondary campuses, kindergarten through grade 
 93.21  12 education, and regional and community libraries; and 
 93.22     (8) the promotion of consistency of the operation of the 
 93.23  learning network with standards of an open system architecture. 
 93.24     The council shall consult with representatives of the 
 93.25  telecommunication industry in implementing this section.  
 93.26     Subd. 2.  [DISTRICT COUNCIL MEMBERSHIP.] District 
 93.27  organizations that coordinate applications for telecommunication 
 93.28  access grants are encouraged to become members of the regional 
 93.29  higher education telecommunication council in their area. 
 93.30     Subd. 3.  [CRITERIA.] In addition to responsibilities of 
 93.31  the council under Laws 1993, First Special Session chapter 2, as 
 93.32  amended, the telecommunications council shall evaluate grant 
 93.33  applications under section 125B.20 and applications from 
 93.34  district organizations using the following criteria: 
 93.35     (1) evidence of cooperative arrangements with other 
 93.36  post-secondary institutions, school districts, and community and 
 94.1   regional libraries in the geographic region; 
 94.2      (2) plans for shared classes and programs; 
 94.3      (3) avoidance of network duplication; 
 94.4      (4) evidence of efficiencies to be achieved in delivery of 
 94.5   instruction due to use of telecommunications; 
 94.6      (5) a plan for development of a list of all courses 
 94.7   available in the region for delivery at a distance; 
 94.8      (6) a plan for coordinating and scheduling courses; and 
 94.9      (7) a plan for evaluation of costs, access, and outcomes. 
 94.10     Sec. 4.  Minnesota Statutes 2000, section 125B.25, 
 94.11  subdivision 1, is amended to read: 
 94.12     Subdivision 1.  [COSTS TO BE SUBMITTED.] A district shall 
 94.13  submit its outstanding ongoing or recurring telecommunications 
 94.14  access costs associated with data lines and video links 
 94.15  connections to the department of children, families, and 
 94.16  learning.  Costs of telecommunications hardware or equipment 
 94.17  must not be included in the costs submitted by districts to the 
 94.18  department.  A district may include installation charges 
 94.19  associated with new lines or upgraded lines, but may not include 
 94.20  costs of hardware or equipment. 
 94.21     Sec. 5.  Minnesota Statutes 2000, section 125B.25, 
 94.22  subdivision 2, is amended to read: 
 94.23     Subd. 2.  [GUARANTEED MINIMUM ACCESS.] (a) The ongoing or 
 94.24  recurring telecommunications access costs submitted to the 
 94.25  department by each district under this section are limited to 
 94.26  the operation costs equal to the greater of: 
 94.27     (1) one data line or video link connection that relies on a 
 94.28  transport medium that operates at a minimum speed of 1.544 
 94.29  megabytes per second for each elementary school, middle school, 
 94.30  or high school under section 120A.05, subdivisions 9, 11, and 
 94.31  13; or 
 94.32     (2) one data line or video link connection that relies on a 
 94.33  transport medium that operates at a minimum speed of 1.544 
 94.34  megabytes per second for each district. 
 94.35     (b) A district may include costs associated with 
 94.36  cooperative arrangements with other post-secondary institutions, 
 95.1   school districts, and community and regional libraries in its 
 95.2   geographic region.  A district may continue to purchase its 
 95.3   ongoing or recurring telecommunications access services through 
 95.4   existing contracts. 
 95.5      Sec. 6.  Minnesota Statutes 2000, section 125B.25, 
 95.6   subdivision 6, is amended to read: 
 95.7      Subd. 6.  [REVENUE FOR CHARTER SCHOOLS.] (a) Each charter 
 95.8   school shall receive revenue equal to the greater of: 
 95.9      (1) the per marginal cost pupil unit amount for the 
 95.10  district in which the charter school is located as determined by 
 95.11  the commissioner according to subdivision 4; or 
 95.12     (2) $5; 
 95.13  times the adjusted marginal cost pupil units for that year, 
 95.14  times 65 percent. 
 95.15     (b) A charter school's revenue under this subdivision must 
 95.16  be used to pay for ongoing or recurring telecommunication access 
 95.17  costs, including access to data lines, and video lines 
 95.18  connections, or including Internet access. 
 95.19     Sec. 7.  Minnesota Statutes 2000, section 125B.25, 
 95.20  subdivision 9, is amended to read: 
 95.21     Subd. 9.  [EXPIRATION.] This section expires on July 1, 
 95.22  2002 2003. 
 95.23     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 95.24  following final enactment. 
 95.25     Sec. 8.  Minnesota Statutes 2000, section 126C.40, 
 95.26  subdivision 1, is amended to read: 
 95.27     Subdivision 1.  [TO LEASE BUILDING OR LAND.] (a) When a 
 95.28  district finds it economically advantageous to rent or lease a 
 95.29  building or land for any instructional purposes or for school 
 95.30  storage or furniture repair, and it determines that the 
 95.31  operating capital revenue authorized under section 126C.10, 
 95.32  subdivision 13, is insufficient for this purpose, it may apply 
 95.33  to the commissioner for permission to make an additional capital 
 95.34  expenditure levy for this purpose.  An application for 
 95.35  permission to levy under this subdivision must contain financial 
 95.36  justification for the proposed levy, the terms and conditions of 
 96.1   the proposed lease, and a description of the space to be leased 
 96.2   and its proposed use.  
 96.3      (b) The criteria for approval of applications to levy under 
 96.4   this subdivision must include:  the reasonableness of the price, 
 96.5   the appropriateness of the space to the proposed activity, the 
 96.6   feasibility of transporting pupils to the leased building or 
 96.7   land, conformity of the lease to the laws and rules of the state 
 96.8   of Minnesota, and the appropriateness of the proposed lease to 
 96.9   the space needs and the financial condition of the district.  
 96.10  The commissioner must not authorize a levy under this 
 96.11  subdivision in an amount greater than the cost to the district 
 96.12  of renting or leasing a building or land for approved purposes.  
 96.13  The proceeds of this levy must not be used for custodial or 
 96.14  other maintenance services.  A district may not levy under this 
 96.15  subdivision for the purpose of leasing or renting a 
 96.16  district-owned building or site to itself. 
 96.17     (c) For agreements finalized after July 1, 1997, a district 
 96.18  may not levy under this subdivision for the purpose of leasing:  
 96.19  (1) a newly constructed building used primarily for regular 
 96.20  kindergarten, elementary, or secondary instruction; or (2) a 
 96.21  newly constructed building addition or additions used primarily 
 96.22  for regular kindergarten, elementary, or secondary instruction 
 96.23  that contains more than 20 percent of the square footage of the 
 96.24  previously existing building. 
 96.25     (d) Notwithstanding paragraph (b), a district may levy 
 96.26  under this subdivision for the purpose of leasing or renting a 
 96.27  district-owned building or site to itself only if the amount is 
 96.28  needed by the district to make payments required by a lease 
 96.29  purchase agreement, installment purchase agreement, or other 
 96.30  deferred payments agreement authorized by law, and the levy 
 96.31  meets the requirements of paragraph (c).  A levy authorized for 
 96.32  a district by the commissioner under this paragraph may be in 
 96.33  the amount needed by the district to make payments required by a 
 96.34  lease purchase agreement, installment purchase agreement, or 
 96.35  other deferred payments agreement authorized by law, provided 
 96.36  that any agreement include a provision giving the school 
 97.1   districts the right to terminate the agreement annually without 
 97.2   penalty. 
 97.3      (e) The total levy under this subdivision for a district 
 97.4   for any year must not exceed $100 times the resident pupil units 
 97.5   for the fiscal year to which the levy is attributable. 
 97.6      (f) For agreements for which a review and comment have been 
 97.7   submitted to the department of children, families, and learning 
 97.8   after April 1, 1998, the term "instructional purpose" as used in 
 97.9   this subdivision excludes expenditures on stadiums. 
 97.10     (g) The commissioner of children, families, and learning 
 97.11  may authorize a school district to exceed the limit in paragraph 
 97.12  (e) if the school district petitions the commissioner for 
 97.13  approval.  The commissioner shall grant approval to a school 
 97.14  district to exceed the limit in paragraph (e) for not more than 
 97.15  five years if the district meets the following criteria: 
 97.16     (1) the school district has been experiencing pupil 
 97.17  enrollment growth in the preceding five years; 
 97.18     (2) the purpose of the increased levy is in the long-term 
 97.19  public interest; 
 97.20     (3) the purpose of the increased levy promotes colocation 
 97.21  of government services; and 
 97.22     (4) the purpose of the increased levy is in the long-term 
 97.23  interest of the district by avoiding over construction of school 
 97.24  facilities. 
 97.25     (h) For agreements for which a review and comment have been 
 97.26  submitted to the department of children, families, and learning 
 97.27  after April 1, 2001, the term "instructional purpose" as used in 
 97.28  this subdivision excludes expenditures on arenas. 
 97.29     Sec. 9.  Laws 2000, chapter 489, article 5, section 21, is 
 97.30  amended to read: 
 97.31     Sec. 21.  [ONE-TIME DEFERRED MAINTENANCE AID.] 
 97.32     (a) For fiscal year 2001 only, a district's one-time 
 97.33  deferred maintenance aid is equal to: 
 97.34     (1) $10 times the adjusted marginal cost pupil units for 
 97.35  the school year; plus 
 97.36     (2) $21.90 times the adjusted marginal cost pupil units for 
 98.1   the school year for a district that does not qualify for 
 98.2   alternative facilities bonding under Minnesota Statutes, section 
 98.3   123B.59, or under Laws 1999, chapter 241, article 4, section 25. 
 98.4      (b) Aid received under this section must be used for 
 98.5   deferred maintenance, to make accessibility improvements, or to 
 98.6   make fire, safety, or health repairs. 
 98.7      (c) This aid is paid entirely in fiscal year 2001 based on 
 98.8   estimated data.  By January 31, 2002, the department of 
 98.9   children, families, and learning shall recalculate the aid for 
 98.10  each district using actual data, and shall adjust the general 
 98.11  education aid paid to school districts for fiscal year 2002 by 
 98.12  the amount of the difference between the estimated aid and the 
 98.13  actual aid. 
 98.14     Sec. 10.  [OPERATING CAPITAL ACCOUNT DEFICIT; EXCEPTION.] 
 98.15     Notwithstanding Minnesota Statutes, section 123B.78, 
 98.16  subdivision 5, the commissioner of children, families, and 
 98.17  learning may allow independent school district No. 492, Austin, 
 98.18  to incur a deficit of up to $4,200,000 in its reserve for 
 98.19  capital operating account for the Westcott Field improvement 
 98.20  project.  The deficit must be eliminated by June 30, 2011.  Any 
 98.21  donations or contributions received by the district for the 
 98.22  Westcott Field improvement project must be deposited in the 
 98.23  reserve for capital operating account to repay the deficit.  The 
 98.24  commissioner of children, families, and learning must certify 
 98.25  the financial viability of the Westcott Field improvement 
 98.26  project prior to approving authority under this section. 
 98.27     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 98.28  following final enactment. 
 98.29     Sec. 11.  [BONDING AUTHORIZATION.] 
 98.30     To provide funds for the acquisition or betterment of 
 98.31  school facilities, independent school district No. 625, St. 
 98.32  Paul, may by two-thirds majority vote of all the members of the 
 98.33  board of directors issue general obligation bonds in one or more 
 98.34  series in calendar years 2003 to 2008, both inclusive, as 
 98.35  provided in this section.  The aggregate principal amount of any 
 98.36  bonds issued under this section for each calendar year must not 
 99.1   exceed $15,000,000.  Issuance of the bonds is not subject to 
 99.2   Minnesota Statutes, section 475.58 or 475.59.  The bonds must 
 99.3   otherwise be issued as provided in Minnesota Statutes, chapter 
 99.4   475.  The authority to issue bonds under this section is in 
 99.5   addition to any bonding authority authorized by Minnesota 
 99.6   Statutes, chapter 123B, or other law.  The amount of bonding 
 99.7   authority authorized under this section must be disregarded in 
 99.8   calculating the bonding limit of Minnesota Statutes, chapter 
 99.9   123B, or any other law other than Minnesota Statutes, section 
 99.10  475.53, subdivision 4. 
 99.11     Sec. 12.  [TAX LEVY FOR DEBT SERVICE.] 
 99.12     To pay the principal of and interest on bonds issued under 
 99.13  section 11, independent school district No. 625, St. Paul, must 
 99.14  levy a tax annually in an amount sufficient under Minnesota 
 99.15  Statutes, section 475.61, subdivisions 1 and 3, to pay the 
 99.16  principal of and interest on the bonds.  The tax authorized 
 99.17  under this section is in addition to the taxes authorized to be 
 99.18  levied under Minnesota Statutes, chapter 123B, 124D, or 126C, or 
 99.19  other law. 
 99.20     Sec. 13.  [DEPARTMENT OF CHILDREN, FAMILIES, AND LEARNING; 
 99.21  ON-LINE LEARNING REPORT.] 
 99.22     By February 1, 2002, the commissioner of children, 
 99.23  families, and learning shall report to the education committees 
 99.24  of the legislature recommendations regarding on-line learning.  
 99.25  The report shall include: 
 99.26     (1) a review of Minnesota laws that affect on-line 
 99.27  learning, including funding laws and teacher licensure laws; 
 99.28     (2) an analysis of the feasibility and desirability of 
 99.29  establishing a virtual high school based on the state graduation 
 99.30  standards; 
 99.31     (3) recommendations for commissioner review and approval of 
 99.32  on-line learning programs; and 
 99.33     (4) other recommendations that foster quality 
 99.34  implementation of on-line learning in Minnesota schools. 
 99.35     Sec. 14.  [INTERACTIVE WEB-BASED PROGRAM.] 
 99.36     General education revenue for a pupil in an approved 
100.1   interactive Web-based program offered by a school district or a 
100.2   charter school under the supervision of a teacher with a 
100.3   Minnesota license must be paid for each hour of completed 
100.4   coursework needed for grade progression, credit, or alignment 
100.5   with state graduation standards.  The course of study must be 
100.6   approved by the commissioner of children, families, and learning 
100.7   for alignment with the state graduation standards and compliance 
100.8   with Minnesota Statutes, chapter 125A.  Average daily membership 
100.9   for a pupil shall equal the number of hours of coursework 
100.10  completed divided by the number of hours required for a 
100.11  full-time student in the district.  Programs must report under a 
100.12  separate site number.  A school district or charter school is 
100.13  not required to provide a pupil enrolled in the program with 
100.14  access to a computer or to the Internet. 
100.15     <b>[EFFECTIVE DATE.]</b> This section is effective for revenue for 
100.16  fiscal year 2002 only. 
100.17     Sec. 15.  [ELECTRONIC DELIVERY OF COURSES.] 
100.18     (a) The commissioner of children, families, and learning 
100.19  shall award grants to school districts to establish, develop, or 
100.20  make available: 
100.21     (1) curriculum resources which are video or electronically 
100.22  based and delivered; 
100.23     (2) demonstration and prototype implementation of new 
100.24  technology, including the transition of digital instructional 
100.25  video sites to video over the Internet; 
100.26     (3) an open learning network for agricultural and natural 
100.27  resources education; and 
100.28     (4) on-line courses for teachers to become certified to 
100.29  teach English as a second language to children or adults. 
100.30     (b) The commissioner, in cooperation with the Minnesota 
100.31  education telecommunication council, shall develop the form, 
100.32  procedures, timelines, and standards for grants under this 
100.33  section. 
100.34     Sec. 16.  [DECLINING PUPIL UNIT AID; YELLOW MEDICINE EAST.] 
100.35     Subdivision 1.  [FISCAL YEAR 2002.] For fiscal year 2002, 
100.36  independent school district No. 2190, Yellow Medicine East, is 
101.1   eligible for tornado impact declining enrollment aid equal to 
101.2   $156,000. 
101.3      Subd. 2.  [FISCAL YEAR 2003.] For fiscal year 2003, 
101.4   independent school district No. 2190, Yellow Medicine East, is 
101.5   eligible for tornado impact declining enrollment aid equal to 75 
101.6   percent of the fiscal year 2002 appropriation in subdivision 1. 
101.7      Subd. 3.  [FISCAL YEAR 2004.] For fiscal year 2004, 
101.8   independent school district No. 2190, Yellow Medicine East, is 
101.9   eligible for tornado impact declining enrollment aid equal to 50 
101.10  percent of the fiscal year 2002 appropriation in subdivision 1. 
101.11     Subd. 4.  [FISCAL YEAR 2005.] For fiscal year 2005, 
101.12  independent school district No. 2190, Yellow Medicine East, is 
101.13  eligible for tornado impact declining enrollment aid equal to 25 
101.14  percent of the fiscal year 2002 appropriation in subdivision 1. 
101.15     Sec. 17.  [FUND TRANSFERS.] 
101.16     Subdivision 1.  [LAC QUI PARLE VALLEY.] Notwithstanding 
101.17  Minnesota Statutes, sections 123B.58, 123B.79, or 123B.80, on 
101.18  June 30, 2001, independent school district No. 2853, Lac qui 
101.19  Parle Valley, may permanently transfer up to $250,000 from its 
101.20  reserved account for disabled accessibility to its reserved 
101.21  account for operating capital in the general fund.  This 
101.22  transfer is contingent upon the school district demonstrating to 
101.23  the commissioner's satisfaction that the district's school 
101.24  buildings are accessible to students or employees with 
101.25  disabilities. 
101.26     Subd. 2.  [CLEVELAND.] Notwithstanding Minnesota Statutes, 
101.27  sections 123B.79 or 123B.80, on June 30, 2001, independent 
101.28  school district No. 391, Cleveland, may permanently transfer up 
101.29  to $107,000 from its reserved operating capital account in its 
101.30  general fund to the undesignated fund balance. 
101.31     Subd. 3.  [LAPORTE.] Notwithstanding Minnesota Statutes, 
101.32  sections 123B.79 and 123B.80, on June 30, 2001, independent 
101.33  school district No. 306, LaPorte, may permanently transfer up to 
101.34  $141,000 from the bus purchase account in its transportation 
101.35  fund to its capital expenditure fund. 
101.36     Subd. 4.  [RUSSELL.] Notwithstanding Minnesota Statutes, 
102.1   section 123B.79 or 123B.80, on June 30, 2001, independent school 
102.2   district No. 418, Russell, may permanently transfer up to 
102.3   $160,000 from its reserved operating capital account in its 
102.4   general fund to the undesignated fund balance. 
102.5      Subd. 5.  [ISLE.] (a) Notwithstanding Minnesota Statutes, 
102.6   section 123B.79 or 123B.80, on June 30, 2001, upon approval of 
102.7   the commissioner of children, families, and learning, 
102.8   independent school district No. 473, Isle, may permanently 
102.9   transfer up to $175,000 from its reserved account for disability 
102.10  access to its undesignated general fund balance.  
102.11     (b) Prior to making the fund transfer, independent school 
102.12  district No. 473, Isle, must demonstrate to the commissioner's 
102.13  satisfaction that the district's school buildings are accessible 
102.14  to students or employees with disabilities.  
102.15     Subd. 6.  [MOUNTAIN LAKE.] Notwithstanding Minnesota 
102.16  Statutes, section 123B.79 or 123B.80, on June 30, 2001, 
102.17  independent school district No. 173, Mountain Lake, may 
102.18  permanently transfer up to $300,000 from its reserved capital 
102.19  accounts in its general fund to the undesignated fund balance. 
102.20     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
102.21  following final enactment. 
102.22     Sec. 18.  [LEVY AUTHORITY; INDEPENDENT SCHOOL DISTRICT NO. 
102.23  696, ELY.] 
102.24     Independent school district No. 696, Ely, is authorized to 
102.25  levy up to $100,000 in fiscal year 2003 for additional 
102.26  transportation capital costs associated with the annexation of 
102.27  Fall Lake township.  The district is authorized to levy the 
102.28  amount in this section only if the annexation of the portions of 
102.29  Fall Lake township listed below by the Ely school district is 
102.30  completed.  Notwithstanding Minnesota Statutes, section 123A.45, 
102.31  subdivisions 1, 2, 3, 4, and 5, the detachment and annexation is 
102.32  effective July 1, 2001, if approved by the Ely school board and 
102.33  by the school board of independent school district No. 381, Lake 
102.34  Superior.  Minnesota Statutes, section 123A.25, subdivision 6, 
102.35  shall apply to taxable property involved in the detachment and 
102.36  annexation. 
103.1      The portions of Fall Lake township annexed by the Ely 
103.2   school district are townships 62 through 66, range 11; townships 
103.3   63 through 65, range 10; townships 63 through 65, range 9; and 
103.4   townships 63 through 65, range 8. 
103.5      Sec. 19.  [INDEPENDENT SCHOOL DISTRICT NO. 361, 
103.6   INTERNATIONAL FALLS; SWIMMING POOL LEVY.] 
103.7      (a) Each year, independent school district No. 361, 
103.8   International Falls, may levy for the net operational costs of 
103.9   the swimming pool.  The levy may not exceed the net actual costs 
103.10  of operation of the swimming pool for the previous year.  Net 
103.11  actual costs are defined as operating costs less any operating 
103.12  revenues. 
103.13     (b) The district must demonstrate to the satisfaction of 
103.14  the office of monitoring in the department of children, 
103.15  families, and learning that the district will offer equal sports 
103.16  opportunities for male and female students to use its swimming 
103.17  pool, particularly in areas of access to prime practice time, 
103.18  team support, and providing junior varsity and younger level 
103.19  teams for girls' water sports and water sports offerings. 
103.20     <b>[EFFECTIVE DATE.]</b> This section is effective for taxes 
103.21  payable in 2002 and later. 
103.22     Sec. 20.  [BUILDING REMODELING.] 
103.23     The commissioner of human services shall use $400,000 from 
103.24  its appropriation for repairs and betterments to remodel 
103.25  building 6 at the Brainerd regional human services center to 
103.26  make the structure suitable for school programs.  The Brainerd 
103.27  school district shall reimburse the commissioner $200,000 in 
103.28  fiscal year 2002 and $200,000 in fiscal year 2003 through a 
103.29  lease agreement for these remodeling costs. 
103.30     Sec. 21.  [APPROPRIATIONS.] 
103.31     Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
103.32  LEARNING.] The sums indicated in this section are appropriated 
103.33  from the general fund to the department of children, families, 
103.34  and learning for the fiscal years designated.  
103.35     Subd. 2.  [HEALTH AND SAFETY AID.] For health and safety 
103.36  aid according to Minnesota Statutes, section 123B.57, 
104.1   subdivision 5: 
104.2        $14,980,000    .....     2002 
104.3        $14,550,000    .....     2003 
104.4      The 2002 appropriation includes $1,480,000 for 2001 and 
104.5   $13,500,000 for 2002. 
104.6      The 2003 appropriation includes $1,500,000 for 2002 and 
104.7   $13,050,000 for 2003. 
104.8      Subd. 3.  [DEBT SERVICE AID.] For debt service aid 
104.9   according to Minnesota Statutes, section 123B.53, subdivision 6: 
104.10       $25,989,000    .....     2002 
104.11       $23,716,000    .....     2003 
104.12     The 2002 appropriation includes $2,890,000 for 2001 and 
104.13  $23,099,000 for 2002. 
104.14     The 2003 appropriation includes $2,562,000 for 2002 and 
104.15  $21,249,000 for 2003. 
104.16     Subd. 4.  [INTERACTIVE TELEVISION (ITV) AID.] For 
104.17  interactive television (ITV) aid under Minnesota Statutes, 
104.18  section 126C.40, subdivision 4: 
104.19       $1,418,000     .....     2002 
104.20       $  129,000     .....     2003 
104.21     The 2002 appropriation includes $260,000 for 2001 and 
104.22  $1,158,000 for 2002. 
104.23     The 2003 appropriation includes $129,000 for 2002 and -$0- 
104.24  for 2003. 
104.25     Subd. 5.  [ALTERNATIVE FACILITIES BONDING AID.] For 
104.26  alternative facilities bonding aid, according to Minnesota 
104.27  Statutes, section 123B.59, subdivision 1: 
104.28       $19,279,000    .....     2002 
104.29       $19,287,000    .....     2003 
104.30     The 2002 appropriation includes $1,921,000 for 2001 and 
104.31  $17,358,000 for 2002. 
104.32     The 2003 appropriation includes $1,929,000 for 2002 and 
104.33  $17,358,000 for 2003. 
104.34     Subd. 6.  [TELECOMMUNICATION ACCESS REVENUE.] For 
104.35  telecommunication access cost revenue under Minnesota Statutes, 
104.36  section 125B.25: 
105.1        $12,771,000    .....     2002 
105.2        $12,768,000    .....     2003 
105.3      The 2002 appropriation includes $1,300,000 for 2001 and 
105.4   $11,471,000 for 2002. 
105.5      The 2003 appropriation includes $1,275,000 for 2002 and 
105.6   $11,493,000 for 2003. 
105.7      If the appropriation amount is insufficient, the 
105.8   commissioner shall reduce the reimbursement rate in Minnesota 
105.9   Statutes, section 125B.25, subdivisions 5 and 6, and the revenue 
105.10  for the 2001-2002 school year shall be prorated.  The 
105.11  reimbursement rate shall not exceed 67 percent. 
105.12     Subd. 7.  [DECLINING PUPIL AID; ST. PETER.] For a grant to 
105.13  independent school district No. 508, St. Peter, to ameliorate 
105.14  general fund operating losses associated with the March 1998 
105.15  tornado: 
105.16       $461,000       .....     2002 
105.17     Subd. 8.  [FLOODS; DECLINING PUPIL AID.] For declining 
105.18  pupil aid under Laws 2000, chapter 489, article 5, section 23: 
105.19       $921,000       .....     2002 
105.20     Subd. 9.  [DECLINING PUPIL AID; YELLOW MEDICINE EAST.] For 
105.21  declining pupil aid for independent school district No. 2190, 
105.22  Yellow Medicine East, for tornado impact declining enrollment: 
105.23       $156,000       .....     2002 
105.24       $117,000       .....     2003 
105.25     Subd. 10.  [GRANTS FOR THE ELECTRONIC DELIVERY OF ACADEMIC 
105.26  COURSES.] For grants for the electronic delivery of academic 
105.27  courses: 
105.28       $1,000,000     .....     2002 
105.29     The commissioner shall consider grants to independent 
105.30  school district No. 2752, Fairmont area schools, for the 
105.31  development, maintenance, and lease costs of an interactive 
105.32  video system for instructional purposes; to independent school 
105.33  district No. 199, Inver Grove, for the design and development of 
105.34  a library of on-line courses; and $100,000 is for developing an 
105.35  electronic curriculum that focuses on limited English 
105.36  proficiency services, reading basics, and gifted and talented 
106.1   instruction to be used in all-day kindergarten classes. 
106.2      The commissioner shall consider grants for on-line courses 
106.3   for Greater Minnesota teachers to obtain a certificate to teach 
106.4   English as a second language to adults that provide a match of 
106.5   one dollar of state grant money with one dollar of private 
106.6   funding. 
106.7      This appropriation is available until June 30, 2003. 
106.8      Subd. 11.  [EDUCATION PROGRAM PLANNING GRANTS.] For 
106.9   education program planning grants: 
106.10       $155,000     .....     2002 
106.11     $50,000 is for independent school district No. 13, Columbia 
106.12  Heights, for a education program planning grant to develop a 
106.13  north metropolitan global technology magnet school that has a 
106.14  focus on foreign language communications that will serve a 
106.15  diverse student population with a technology intensive education 
106.16  program. 
106.17     $105,000 is for independent school district No. 281, 
106.18  Robbinsdale, for an education program planning grant to address 
106.19  student demographic changes. 
106.20     This appropriation is available until June 30, 2003. 
106.21     Subd. 12.  [ELECTRONIC LIBRARY FOR MINNESOTA.] For 
106.22  statewide licenses to on-line databases selected in cooperation 
106.23  with the higher education services office for school media 
106.24  centers, public libraries, state government agency libraries, 
106.25  and public or private college or university libraries: 
106.26       $400,000     .....     2002 
106.27       $400,000     .....     2003 
106.28     Any balance in the first year does not cancel but is 
106.29  available in the second year. 
106.30                             ARTICLE 5 
106.31                         NUTRITION PROGRAMS 
106.32     Section 1.  [124D.1156] [FAST BREAK TO LEARNING BREAKFAST 
106.33  PROGRAM.] 
106.34     Subdivision 1.  [ELIGIBILITY.] The commissioner shall 
106.35  provide funding to the 41 targeted breakfast program grant 
106.36  recipients under Laws 1997, First Special Session chapter 4, 
107.1   article 6, section 19, and then to public or nonpublic 
107.2   elementary schools that participate in the federal School 
107.3   Breakfast and Lunch Programs where at least 33 percent of the 
107.4   lunches served to children during the second preceding school 
107.5   year were provided free or at a reduced price.  Schools shall 
107.6   not charge student households for fast break to learning meals.  
107.7   Schools shall encourage all children to eat a nutritious 
107.8   breakfast, either at home or at school, and shall work to 
107.9   eliminate barriers to participation at school such as inadequate 
107.10  facilities and transportation. 
107.11     Subd. 2.  [PROGRAM.] The fast break to learning school 
107.12  breakfast program enables schools participating in the federal 
107.13  School Breakfast and Lunch Programs to cover the costs for 
107.14  school breakfast without charging student households. 
107.15     Subd. 3.  [PROGRAM REIMBURSEMENT.] State funds are provided 
107.16  to reimburse fast break to learning school breakfasts.  Each 
107.17  school year, the state must reimburse schools for the difference 
107.18  between the per meal federal rate of reimbursement and the per 
107.19  meal state average cost.  Meals that are reimbursed at a federal 
107.20  rate that is equal to or higher than the state average cost do 
107.21  not qualify for fast break to learning funds.  Schools must use 
107.22  the funds to provide school breakfast to school children every 
107.23  day school is in session. 
107.24     Sec. 2.  [124D.1195] [COMMODITY DONATED FOOD REVOLVING 
107.25  FUND.] 
107.26     A revolving fund is established for the purpose of 
107.27  depositing cash received for commodity donated foods that have 
107.28  been lost, damaged, recalled, or diverted for processing.  The 
107.29  state shall use the fund to issue payments for the value of the 
107.30  lost, damaged, recalled, or diverted commodity donated foods and 
107.31  related costs. 
107.32     Sec. 3.  Minnesota Statutes 2000, section 127A.45, 
107.33  subdivision 12, is amended to read: 
107.34     Subd. 12.  [PAYMENT PERCENTAGE FOR CERTAIN AIDS.] One 
107.35  hundred percent of the aid for the current fiscal year must be 
107.36  paid for the following aids:  reimbursement for transportation 
108.1   to post-secondary institutions, according to section 124D.09, 
108.2   subdivision 22; aid for the program for adults with 
108.3   disabilities, according to section 124D.56, subdivision 2; 
108.4   school lunch aid, according to section 124D.111; hearing 
108.5   impaired support services aid, according to section 124D.57; 
108.6   Indian post-secondary preparation grants according to section 
108.7   124D.85; integration grants according to Laws 1989, chapter 329, 
108.8   article 8, section 14, subdivision 3; and debt service aid 
108.9   according to section 123B.53, subdivision 6. 
108.10     Sec. 4.  Minnesota Statutes 2000, section 127A.45, is 
108.11  amended by adding a subdivision to read: 
108.12     Subd. 14a.  [STATE NUTRITION PROGRAMS.] Notwithstanding 
108.13  subdivision 3, the state shall pay 100 percent of the aid for 
108.14  the current year according to sections 124D.111, 124D.115, and 
108.15  124D.118 and 90 percent of the aid for the current year 
108.16  according to section 124D.1156 based on submitted monthly 
108.17  vouchers showing meals and milk served.  The remaining ten 
108.18  percent according to section 124D.1156 shall be paid by October 
108.19  30 of the following fiscal year. 
108.20     Sec. 5.  [IDENTIFICATION OF CHILDREN ELIGIBLE FOR FREE AND 
108.21  REDUCED-PRICE SCHOOL MEALS.] 
108.22     (a) Notwithstanding other law to the contrary, the 
108.23  commissioner of revenue may match tax return information to 
108.24  student data supplied by the commissioner of children, families, 
108.25  and learning and disclose the results to the commissioner of 
108.26  children, families, and learning for the purpose of a pilot 
108.27  program to evaluate the feasibility of the data match for 
108.28  identifying children who are eligible for free and reduced-price 
108.29  school meals and verifying the eligibility of school meal 
108.30  applicants.  The commissioner of revenue shall disclose or 
108.31  confirm only the eligibility status of children for free or 
108.32  reduced-price school meals and shall not disclose income data.  
108.33  The commissioner of children, families, and learning shall not 
108.34  disclose the results of the data match to schools.  The pilot 
108.35  program shall end December 31, 2002. 
108.36     (b) Notwithstanding other law to the contrary, essential 
109.1   data on pupils under Minnesota Statutes, section 125B.07, 
109.2   subdivision 6, may be disclosed to the department of revenue 
109.3   until December 31, 2002, for the purposes of paragraph (a). 
109.4      (c) The commissioner of children, families, and learning 
109.5   shall prepare a report on the feasibility of using the data 
109.6   match for the purposes of identifying children eligible for free 
109.7   and reduced-price meals and verifying self-reported income of 
109.8   school meal applicants. 
109.9      Sec. 6.  [APPROPRIATIONS.] 
109.10     Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
109.11  LEARNING.] The sums indicated in this section are appropriated 
109.12  from the general fund to the department of children, families, 
109.13  and learning for the fiscal years designated. 
109.14     Subd. 2.  [SCHOOL LUNCH.] (a) For school lunch aid 
109.15  according to Minnesota Statutes, section 124D.111, and Code of 
109.16  Federal Regulations, title 7, section 210.17, and for school 
109.17  milk aid according to Minnesota Statutes, section 124D.118:  
109.18       $8,710,000     .....     2002 
109.19       $8,950,000     .....     2003 
109.20     (b) Not more than $800,000 of the amount appropriated each 
109.21  year may be used for school milk aid. 
109.22     Subd. 3.  [SCHOOL BREAKFAST.] For school breakfast aid 
109.23  under Minnesota Statutes, section 124D.115: 
109.24       $640,000       .....     2002 
109.25       $700,000       .....     2003 
109.26     Subd. 4.  [SUMMER FOOD SERVICE REPLACEMENT AID.] For summer 
109.27  food service replacement aid under Minnesota Statutes, section 
109.28  124D.119: 
109.29       $150,000       .....     2002 
109.30       $150,000       .....     2003 
109.31     Subd. 5.  [FAST BREAK TO LEARNING GRANTS.] For fast break 
109.32  to learning grants under Minnesota Statutes, section 124D.1156: 
109.33       $2,446,000     .....     2002 
109.34       $2,839,000     .....     2003 
109.35     The 2002 appropriation includes $0 for 2001 and $2,446,000 
109.36  for 2002. 
110.1      The 2003 appropriation includes $272,000 for 2002 and 
110.2   $2,567,000 for 2003. 
110.3      Sec. 7.  [REPEALER.] 
110.4      Minnesota Statutes 2000, section 124D.1155, is repealed. 
110.5                              ARTICLE 6 
110.6                       EARLY CHILDHOOD PROGRAMS 
110.7      Section 1.  Minnesota Statutes 2000, section 119A.05, is 
110.8   amended to read: 
110.9      119A.05 [FUNDING CONSOLIDATION.] 
110.10     Subdivision 1.  [AUTHORITY FOR FUNDING CONSOLIDATION AND 
110.11  INTEGRATION.] (a) Notwithstanding existing law governing 
110.12  allocation of funds by local grantees, mode of service delivery, 
110.13  grantee planning and reporting requirements, and other 
110.14  procedural requirements for the grant programs identified in 
110.15  this section, a local grantee may elect to consolidate all or a 
110.16  portion of funding received from the programs under subdivision 
110.17  5 in a collaboration funding plan, if all conditions specified 
110.18  in this section are satisfied.  County boards, school boards, or 
110.19  governing boards of other grantees may elect not to consolidate 
110.20  funding for a program.  
110.21     (b) Funding for services provided to a community under 
110.22  sections 119A.52, 119B.189 to 119B.26, 124D.13, and 124D.15 must 
110.23  be determined according to the funding formulas and distributed 
110.24  as identified in applicable program laws and rules.  
110.25  Notwithstanding existing law governing allocation of funds to 
110.26  local programs, mode of service delivery, program planning, 
110.27  traditional geographic boundaries, and other procedural 
110.28  requirements for early childhood care and education programs 
110.29  under the jurisdiction of the commissioner, a community early 
110.30  childhood council may elect to integrate all or a portion of 
110.31  funding available through these programs under an integrated 
110.32  funding and service plan, if all requirements under this section 
110.33  are met. 
110.34     (c) For grantees electing consolidation or integration, the 
110.35  commissioner may, with the approval of the board of government 
110.36  innovation and cooperation, waive all provisions of rules 
111.1   inconsistent with the intent of this section.  This waiver 
111.2   authority does not apply to rules governing client protections, 
111.3   due process, or inclusion of clients, parents, cultures, and 
111.4   ethnicities in decision making.  Funding to a local grantee must 
111.5   be determined according to the funding formulas or allocation 
111.6   rules governing the individual programs listed in section 
111.7   119A.04.  
111.8      (d) For communities consolidating or integrating funds 
111.9   under paragraph (b), the commissioner shall provide technical 
111.10  assistance to a community or planning group to aid in 
111.11  development of an early childhood care and education plan that 
111.12  describes strategies to be used to target resources to children 
111.13  at risk and support achievement of positive outcomes for all 
111.14  children and families in the community and the method or methods 
111.15  used to evaluate performance under the community plan. 
111.16     Subd. 2.  [ACCOUNT.] A consolidated funding account is 
111.17  established under the control of the commissioner of children, 
111.18  families, and learning for funds consolidated under subdivision 
111.19  1, paragraph (a).  The purpose of this account is to clearly 
111.20  identify and provide accountability for funds previously 
111.21  distributed to local grantees through the individual categorical 
111.22  grant programs in subdivision 5.  By direction of the 
111.23  commissioner, after consultation with the partnership planning 
111.24  team and, upon a finding that the conditions specified in this 
111.25  section have been satisfied, funds must be transmitted to this 
111.26  account and allocated to local grantees by the commissioner. 
111.27     Subd. 3.  [ELIGIBILITY; ACCOUNTABILITY.] (a) To be eligible 
111.28  to receive funding for local consolidation, as provided for in 
111.29  this section subdivision 1, paragraph (a), a grantee must meet 
111.30  the following requirements:  
111.31     (1) demonstrate participation by counties and schools in a 
111.32  local collaborative process as defined in section 124D.23 or in 
111.33  a similar process of collaboration with other local governments 
111.34  and community organizations which satisfies the governance and 
111.35  planning guidelines published by the commissioner as provided 
111.36  for in this section; 
112.1      (2) document consultation by counties and schools with 
112.2   community action agencies and other community groups; 
112.3      (3) complete and document, according to guidelines 
112.4   published by the commissioner, a collaborative planning process 
112.5   which clearly identifies:  
112.6      (i) allocation of resources in the collaboration annual 
112.7   funding plan; 
112.8      (ii) a description of the governance structure for the 
112.9   execution of the funding plan; 
112.10     (iii) outcomes consistent with the statewide goals 
112.11  identified in this chapter and in statutes governing previous 
112.12  categorical funding included in the collaboration funding plan; 
112.13  and 
112.14     (iv) indicators sufficient to measure improvement or 
112.15  decline in specified outcomes compared to baseline performance; 
112.16     (4) conduct a public hearing on the funding consolidation 
112.17  plan under chapter 13D; 
112.18     (5) agree to periodically report information concerning 
112.19  progress in addressing outcomes, as provided for in guidelines 
112.20  to be published by the commissioner; and 
112.21     (6) execute a written agreement between the commissioner 
112.22  and the local grantees setting forth responsibilities, 
112.23  obligations, and conditions consistent with this section.  The 
112.24  agreement must state that the funds that are being locally 
112.25  consolidated will be used collectively only to achieve the 
112.26  objectives of the separate programs being locally consolidated.  
112.27     (b) To be eligible to receive funding for local 
112.28  integration, as provided for in subdivision 1, paragraph (b), a 
112.29  grantee must meet the following requirements: 
112.30     (1) submit to the commissioner a comprehensive plan for 
112.31  integration of early childhood care and education funds and 
112.32  programs on a communitywide basis that identifies: 
112.33     (i) allocation of resources in the annual early childhood 
112.34  integrated funding plan; 
112.35     (ii) a description of the governance structure for the 
112.36  execution of the funding plan; 
113.1      (iii) outcomes consistent with the statewide goals 
113.2   identified in this chapter and in statutes governing previous 
113.3   categorical funding included in the early childhood integrated 
113.4   funding plan; and 
113.5      (iv) indicators sufficient to measure improvement or 
113.6   decline in specified outcomes compared to baseline performance; 
113.7      (2) demonstrate participation and agreement on the plan by 
113.8   counties, schools, child care providers, Early Childhood Family 
113.9   Education (ECFE), Head Start, and other school or 
113.10  community-based early childhood care and education programs in a 
113.11  local collaborative process as defined in section 124D.23 or in 
113.12  a similar process of collaboration with other local governments 
113.13  and community organizations that satisfies the governance and 
113.14  planning guidelines published by the commissioner as provided 
113.15  for in this section; 
113.16     (3) agree to periodically report information concerning 
113.17  progress in addressing outcomes, as provided for in guidelines 
113.18  to be published by the commissioner; and 
113.19     (4) execute a written agreement between the commissioner 
113.20  and the local grantees setting forth responsibilities, 
113.21  obligations, and conditions consistent with this section.  The 
113.22  agreement must state that the funds that are being locally 
113.23  integrated will be used collectively only to achieve the 
113.24  objectives of the separate programs being locally integrated. 
113.25     Subd. 4.  [GEOGRAPHIC AREA.] (a) The geographic area for a 
113.26  local consolidated funding process under subdivision 1, 
113.27  paragraph (a), must be an entire county, a multicounty area, or, 
113.28  with the approval of the county board and commissioner, a 
113.29  subcounty area, if county funds are used.  The process may 
113.30  provide for coordination of service delivery in jurisdictions 
113.31  that extend across county boundaries. 
113.32     (b) The geographic area for a local early childhood 
113.33  integrated funding process under subdivision 1, paragraph (b), 
113.34  may be an entire county, school district, group of school 
113.35  districts, or political subdivision or combination.  The process 
113.36  may provide for coordination of service delivery in 
114.1   jurisdictions that extend across county boundaries. 
114.2      Subd. 5.  [PROGRAMS INCLUDED.] Grant programs transferred 
114.3   to the department of children, families, and learning in section 
114.4   119A.04 and programs transferred from the abolished department 
114.5   of education are eligible for local funding consolidation under 
114.6   subdivision 1, paragraph (a).  Eligibility of any federally 
114.7   funded programs for local funding consolidation is conditioned 
114.8   upon obtaining necessary federal waivers or changes in federal 
114.9   law. 
114.10     Subd. 6.  [ENTRY INTO PROGRAM.] Grantees who meet all 
114.11  requirements of this section may elect to begin using funding 
114.12  for a local consolidated or integrated funding process beginning 
114.13  January 1, 1996 2001, or at each six-month interval.  Other 
114.14  local grantees that meet all requirements of this section may 
114.15  elect to begin using funding for a local consolidation funding 
114.16  process beginning July 1, 1996, or at each six-month interval. 
114.17     Subd. 7.  [SANCTIONS.] If the commissioner finds that a 
114.18  grantee has failed to comply with this section, the grantee 
114.19  becomes subject to all requirements of individual grant programs 
114.20  as specified in statutes and rules. 
114.21     Sec. 2.  Minnesota Statutes 2000, section 119A.52, is 
114.22  amended to read: 
114.23     119A.52 [DISTRIBUTION OF APPROPRIATION.] 
114.24     (a) The commissioner of children, families, and learning 
114.25  must distribute money appropriated for that purpose to Head 
114.26  Start program programs to grantees to expand services and to 
114.27  serve additional low-income children.  Grantees may use state 
114.28  funds to provide services to children birth to age five and 
114.29  their families with incomes up to 120 percent of the federal 
114.30  poverty guidelines.  Money must be allocated to each project 
114.31  Head Start grantee in existence on the effective date of Laws 
114.32  1989, chapter 282.  Migrant and Indian reservation grantees must 
114.33  be initially allocated money based on the grantees' share of 
114.34  federal funds.  The remaining money must be initially allocated 
114.35  to the remaining local agencies based equally on the agencies' 
114.36  share of federal funds and on the proportion of eligible 
115.1   children in the agencies' service area who are not currently 
115.2   being served.  A Head Start grantee must be funded at a per 
115.3   child rate equal to its contracted, federally funded base level 
115.4   for program accounts 20, 22, and 25 at the start of the fiscal 
115.5   year.  In allocating funds under this paragraph, the 
115.6   commissioner of children, families, and learning must assure 
115.7   that each Head Start grantee is allocated no less funding in any 
115.8   fiscal year than was allocated to that grantee in fiscal year 
115.9   1993 1999.  The commissioner may provide additional funding to 
115.10  grantees for start-up costs incurred by grantees due to the 
115.11  increased number of children to be served.  Before paying money 
115.12  to the grantees, the commissioner must notify each grantee of 
115.13  its initial allocation, how the money must be used, and the 
115.14  number of low-income children that must be served with the 
115.15  allocation.  Each grantee must notify the commissioner of the 
115.16  number of low-income children it will be able to serve.  For any 
115.17  grantee that cannot utilize its full allocation, the 
115.18  commissioner must reduce the allocation proportionately.  Money 
115.19  available after the initial allocations are reduced must be 
115.20  redistributed to eligible grantees. 
115.21     (b) Up to 11 percent of the funds appropriated annually may 
115.22  be used to provide grants to local Head Start agencies to 
115.23  provide funds for innovative programs designed either to target 
115.24  Head Start resources to particular at-risk groups of children or 
115.25  to provide services in addition to those currently allowable 
115.26  under federal Head Start regulations.  The commissioner must 
115.27  award funds for innovative programs under this paragraph on a 
115.28  competitive basis. 
115.29     (c) To be eligible for state funds under this section, each 
115.30  existing grantee or applicant must present a work plan to the 
115.31  commissioner for approval.  The work plan must include the 
115.32  estimated number of low-income children and families to be 
115.33  served, a description of the program design and service delivery 
115.34  areas which meets the needs of and encourages access by 
115.35  low-income working families, a program design that ensures fair 
115.36  and equitable access to services that meet Head Start 
116.1   regulations and program performance standards for all 
116.2   populations in the service area, and a plan for coordinating 
116.3   services to maximize assistance for child care costs available 
116.4   to families under chapter 119B.  In addition, the work plan must 
116.5   assure coordinated service delivery with other early childhood 
116.6   care and education services. 
116.7      Sec. 3.  Minnesota Statutes 2000, section 119B.011, 
116.8   subdivision 7, is amended to read: 
116.9      Subd. 7.  [CHILD CARE SERVICES.] "Child care services" 
116.10  means child care as defined in subdivision 5, provided in family 
116.11  day care homes, group day care homes, nursery schools, day 
116.12  nurseries, child day care centers, head start, and extended day 
116.13  school age child care programs in or out of the child's home. 
116.14     Sec. 4.  Minnesota Statutes 2000, section 119B.011, 
116.15  subdivision 19, is amended to read: 
116.16     Subd. 19.  [PROVIDER.] "Provider" means a child care 
116.17  license holder who operates a family child care home, a group 
116.18  family child care home, a child care center, a nursery school, a 
116.19  day nursery, a school age care program; a license-exempt school 
116.20  age care program operating under the auspices of a local school 
116.21  board or a park or recreation board of a city of the first class 
116.22  that has adopted school age care guidelines which meet or exceed 
116.23  guidelines recommended by the department, or a nonlicensed an 
116.24  individual or child care center or facility either licensed or 
116.25  unlicensed providing legal child care services as defined under 
116.26  section 245A.03.  A legally unlicensed registered family child 
116.27  care provider who is must be at least 18 years of age, and who 
116.28  is not a member of the MFIP assistance unit or a member of the 
116.29  family receiving child care assistance under this chapter.  
116.30     Sec. 5.  Minnesota Statutes 2000, section 119B.011, is 
116.31  amended by adding a subdivision to read: 
116.32     Subd. 19a.  [STATE MEDIAN INCOME.] "State median income" 
116.33  means the state's annual median income for a family of four, 
116.34  adjusted for family size, developed by the Bureau of Census and 
116.35  published annually by the United States Department of Health and 
116.36  Human Services in the Federal Register. 
117.1      Sec. 6.  Minnesota Statutes 2000, section 119B.011, is 
117.2   amended by adding a subdivision to read: 
117.3      Subd. 19b.  [STUDENT.] "Student" means an individual 
117.4   enrolled in an education program.  A student is a full-time 
117.5   student if enrolled in an education program a minimum equivalent 
117.6   of 12 credits or 20 hours of classroom training per week.  A 
117.7   student is considered a part-time student if enrolled in an 
117.8   education program up to the minimum of full-time student status. 
117.9      Sec. 7.  Minnesota Statutes 2000, section 119B.02, 
117.10  subdivision 1, is amended to read: 
117.11     Subdivision 1.  [CHILD CARE SERVICES.] The commissioner 
117.12  shall develop standards for county and human services boards to 
117.13  provide child care services to enable eligible families to 
117.14  participate in employment, training, or education programs.  
117.15  Within the limits of available appropriations, The commissioner 
117.16  shall distribute money to counties to reduce the costs of child 
117.17  care for eligible families.  The commissioner shall adopt rules 
117.18  to govern the program in accordance with this section.  The 
117.19  rules must establish a sliding schedule of fees for parents 
117.20  receiving child care services.  The rules shall provide that 
117.21  funds received as a lump sum payment of child support arrearages 
117.22  shall not be counted as income to a family in the month received 
117.23  but shall be prorated over the 12 months following receipt and 
117.24  added to the family income during those months.  In the rules 
117.25  adopted under this section, county and human services boards 
117.26  shall be authorized to establish policies for payment of child 
117.27  care spaces for absent children, when the payment is required by 
117.28  the child's regular provider.  The rules shall not set a maximum 
117.29  number of days for which absence payments can be made, but 
117.30  instead shall direct the county agency to set limits and pay for 
117.31  absences according to the prevailing market practice in the 
117.32  county.  County policies for payment of absences shall be 
117.33  subject to the approval of the commissioner.  The commissioner 
117.34  shall maximize the use of federal money under title I and title 
117.35  IV of Public Law Number 104-193, the Personal Responsibility and 
117.36  Work Opportunity Reconciliation Act of 1996, and other programs 
118.1   that provide federal or state reimbursement for child care 
118.2   services for low-income families who are in education, training, 
118.3   job search, or other activities allowed under those programs.  
118.4   Money appropriated under this section must be coordinated with 
118.5   the programs that provide federal reimbursement for child care 
118.6   services to accomplish this purpose.  Federal reimbursement 
118.7   obtained must be allocated to the county that spent money for 
118.8   child care that is federally reimbursable under programs that 
118.9   provide federal reimbursement for child care services.  The 
118.10  counties commissioner shall use the federal money to expand 
118.11  child care services.  The commissioner may adopt rules under 
118.12  chapter 14 to implement and coordinate federal program 
118.13  requirements.  If the November forecast shows biennial 
118.14  expenditures projected to be above 110 percent of the biennial 
118.15  appropriation, the commissioner, in conjunction with the 
118.16  commissioner of finance, shall prepare a plan to bring biennial 
118.17  program spending to within 110 percent of the consolidated child 
118.18  care assistance appropriation for that biennium.  The proposal 
118.19  to control program expenditures will be delivered to the 
118.20  legislature or legislative advisory commission by January 15 
118.21  following the November forecast.  The proposal will take effect 
118.22  ten legislative session days following the release of the 
118.23  February forecast if the forecast continues to exceed the 110 
118.24  percent limit unless the legislature enacts an alternative 
118.25  solution. 
118.26     Sec. 8.  Minnesota Statutes 2000, section 119B.02, 
118.27  subdivision 2, is amended to read: 
118.28     Subd. 2.  [CONTRACTUAL AGREEMENTS WITH TRIBES.] The 
118.29  commissioner may enter into contractual agreements with a 
118.30  federally recognized Indian tribe with a reservation in 
118.31  Minnesota to carry out the responsibilities of county human 
118.32  service agencies to the extent necessary for the tribe to 
118.33  operate child care assistance programs for families eligible 
118.34  under sections 119B.03 119B.09 and 119B.05 119B.10.  An 
118.35  agreement may allow for the tribe to be reimbursed for child 
118.36  care assistance services provided under section 119B.05.  The 
119.1   commissioner shall consult with the affected county or counties 
119.2   in the contractual agreement negotiations, if the county or 
119.3   counties wish to be included, in order to avoid the duplication 
119.4   of county and tribal child care services.  Funding to support 
119.5   services under section 119B.03 may be transferred to the 
119.6   federally recognized Indian tribe with a reservation in 
119.7   Minnesota from allocations available to counties in which 
119.8   reservation boundaries lie.  When funding is transferred under 
119.9   section 119B.03, the amount shall be commensurate to estimates 
119.10  of the proportion of reservation residents with characteristics 
119.11  identified in section 119B.03, subdivision 6, to the total 
119.12  population of county residents with those same characteristics.  
119.13     Sec. 9.  Minnesota Statutes 2000, section 119B.03, 
119.14  subdivision 3, is amended to read: 
119.15     Subd. 3.  [ELIGIBLE PARTICIPANTS.] Families that meet the 
119.16  eligibility requirements under sections 119B.07, 119B.09, and 
119.17  119B.10, except MFIP participants, work first participants, and 
119.18  transition year families are eligible for child care 
119.19  assistance under the basic sliding fee through the child care 
119.20  assistance program.  Families enrolled in the basic sliding fee 
119.21  child care assistance program shall be continued until they are 
119.22  no longer eligible.  Child care assistance provided through the 
119.23  child care fund is considered assistance to the parent. 
119.24     Sec. 10.  Minnesota Statutes 2000, section 119B.03, is 
119.25  amended by adding a subdivision to read: 
119.26     Subd. 3a.  [ALLOCATION FORMULA.] (a) Funds appropriated for 
119.27  families who apply for child care assistance with incomes above 
119.28  50 percent state median income and below 75 percent state median 
119.29  income shall be allocated on a calendar year basis.  The 
119.30  following formula shall be used for the first biennium of the 
119.31  consolidated program.  The commissioner shall propose to the 
119.32  2003 legislature a new funding formula for funds under this 
119.33  section based on the history of expenditures since consolidation 
119.34  of the child care assistance program. 
119.35     (b) Funds shall be allocated in proportion to each county's 
119.36  total expenditures for the basic sliding fee child care program 
120.1   reported during calendar year 2000.  
120.2      (c) When the amount of funds available under this section 
120.3   is less than the amount available in the previous year, each 
120.4   county's previous year allocation shall be reduced in proportion 
120.5   to the reduction in the statewide funding. 
120.6      Sec. 11.  Minnesota Statutes 2000, section 119B.03, 
120.7   subdivision 9, is amended to read: 
120.8      Subd. 9.  [PORTABILITY POOL FAMILY MOVE; CONTINUED 
120.9   PARTICIPATION.] (a) The commissioner shall establish a pool of 
120.10  up to five percent of the annual appropriation for the basic 
120.11  sliding fee program to provide continuous child care assistance 
120.12  for eligible families who move between Minnesota counties.  At 
120.13  the end of each allocation period, any unspent funds in the 
120.14  portability pool must be used for assistance under the basic 
120.15  sliding fee program.  If expenditures from the portability pool 
120.16  exceed the amount of money available, the reallocation pool must 
120.17  be reduced to cover these shortages. 
120.18     (b) To be eligible for portable basic sliding fee 
120.19  assistance, a family that has moved from a county in which it A 
120.20  family receiving child care assistance under the child care fund 
120.21  that has moved from a county in which the family was receiving 
120.22  basic sliding fee child care assistance to a another county 
120.23  with a waiting list for the basic sliding fee program must be 
120.24  admitted into the receiving county's child care assistance 
120.25  program if the family: 
120.26     (1) meet meets the income and eligibility guidelines for 
120.27  the basic sliding fee child care assistance program; and 
120.28     (2) notify notifies the new county of residence within 30 
120.29  60 days of moving and apply applies for basic sliding fee 
120.30  child care assistance in the new county of residence. 
120.31     (c) (b) The receiving county must: 
120.32     (1) accept administrative responsibility for applicants for 
120.33  portable basic sliding fee assistance at the end of the two 
120.34  months of assistance under the Unitary Residency Act;. 
120.35     (2) continue basic sliding fee assistance for the lesser of 
120.36  six months or until the family is able to receive assistance 
121.1   under the county's regular basic sliding program; and 
121.2      (3) notify the commissioner through the quarterly reporting 
121.3   process of any family that meets the criteria of the portable 
121.4   basic sliding fee assistance pool. 
121.5      Sec. 12.  Minnesota Statutes 2000, section 119B.03, 
121.6   subdivision 10, is amended to read: 
121.7      Subd. 10.  [APPLICATION; ENTRY POINTS.] Two or more methods 
121.8   of applying for the basic sliding fee child care assistance 
121.9   program under this chapter must be available to applicants in 
121.10  each county.  To meet the requirements of this subdivision, a 
121.11  county may provide alternative methods of applying for 
121.12  assistance, including, but not limited to, a mail application, 
121.13  or application sites that are located outside of government 
121.14  offices. 
121.15     Sec. 13.  Minnesota Statutes 2000, section 119B.05, 
121.16  subdivision 5, is amended to read: 
121.17     Subd. 5.  [FEDERAL REIMBURSEMENT.] Counties and the state 
121.18  shall maximize their federal reimbursement under federal 
121.19  reimbursement programs for money spent for persons eligible 
121.20  under this chapter.  The commissioner shall allocate any federal 
121.21  earnings to the county to be used to expand child care services 
121.22  under this chapter. 
121.23     Sec. 14.  Minnesota Statutes 2000, section 119B.061, 
121.24  subdivision 1, is amended to read: 
121.25     Subdivision 1.  [ESTABLISHMENT.] A family in which a parent 
121.26  provides care for the family's infant child may receive a 
121.27  subsidy in lieu of assistance if the family is eligible for, or 
121.28  is receiving assistance under the basic sliding fee child care 
121.29  assistance program.  An eligible family must meet the 
121.30  eligibility factors under section 119B.09, the income criteria 
121.31  under section 119B.12, and the requirements of this 
121.32  section.  Subject to federal match and maintenance of effort 
121.33  requirements for the child care and development fund, the 
121.34  commissioner shall establish a pool of up to seven percent of 
121.35  the annual appropriation for the basic sliding fee program to 
121.36  provide assistance under the at-home infant child care program.  
122.1   At the end of a fiscal year, the commissioner may carry forward 
122.2   any unspent funds under this section to the next fiscal year 
122.3   within the same biennium for assistance under the basic sliding 
122.4   fee child care assistance program. 
122.5      Sec. 15.  Minnesota Statutes 2000, section 119B.061, 
122.6   subdivision 4, is amended to read: 
122.7      Subd. 4.  [ASSISTANCE.] (a) A family is limited to a 
122.8   lifetime total of 12 months of assistance under this 
122.9   section subdivision 2.  The maximum rate of assistance is equal 
122.10  to 75 90 percent of the rate established under section 119B.13 
122.11  for care of infants in licensed family child care in the 
122.12  applicant's county of residence.  Assistance must be calculated 
122.13  to reflect the parent fee requirement under section 119B.12 for 
122.14  the family's actual income level and family size while the 
122.15  family is participating in the at-home infant child care program 
122.16  under this section. 
122.17     (b) A participating family must report income and other 
122.18  family changes as specified in the county's plan under section 
122.19  119B.08, subdivision 3.  The family must treat any assistance 
122.20  received under this section as unearned income. 
122.21     (c) Persons who are admitted to the at-home infant care 
122.22  program retain their position in any basic sliding fee child 
122.23  care assistance program or on any waiting list attained at the 
122.24  time of admittance.  If they are on the waiting list, they must 
122.25  advance as if they had not been admitted to the program.  
122.26  Persons leaving the at-home infant care program re-enter 
122.27  the basic sliding fee child care assistance program at the 
122.28  position they would have occupied or the waiting list at the 
122.29  position to which they would have advanced.  Persons who would 
122.30  have attained eligibility for the basic sliding fee child care 
122.31  assistance program must be given assistance or advance to the 
122.32  top of the waiting list when they leave the at-home infant care 
122.33  program.  Persons admitted to the at-home infant care program 
122.34  who are not on a basic sliding fee waiting list may apply to the 
122.35  basic sliding fee child care assistance program, and if 
122.36  eligible, be placed on the waiting list. 
123.1      (d) The time that a family receives assistance under this 
123.2   section must be deducted from the one-year exemption from work 
123.3   requirements under the MFIP program. 
123.4      (e) Assistance under this section does not establish an 
123.5   employer-employee relationship between any member of the 
123.6   assisted family and the county or state. 
123.7      Sec. 16.  Minnesota Statutes 2000, section 119B.08, is 
123.8   amended to read: 
123.9      119B.08 [REPORTING AND PAYMENTS.] 
123.10     Subdivision 1.  [REPORTS.] The commissioner shall specify 
123.11  requirements for reports under the same authority as provided to 
123.12  the commissioner of human services in section 256.01, 
123.13  subdivision 2, paragraph (17).  
123.14     Subd. 2.  [QUARTERLY PAYMENTS.] The commissioner may make 
123.15  payments to each county in quarterly installments.  The 
123.16  commissioner may certify an advance up to 25 percent of the 
123.17  allocation.  Subsequent Payments shall be made on a 
123.18  reimbursement basis for reported expenditures and may be 
123.19  adjusted for anticipated spending patterns.  Payments may be 
123.20  withheld if quarterly reports are incomplete or untimely. 
123.21     Subd. 3.  [CHILD CARE FUND PLAN.] The county and designated 
123.22  administering agency shall submit a child care fund plan to the 
123.23  commissioner an annual child care fund plan in its biennial 
123.24  community social services plan.  The commissioner shall 
123.25  establish the dates by which the county must submit the plans.  
123.26  The plan shall include: 
123.27     (1) a narrative of the total program for child care 
123.28  services, including all policies and procedures that affect 
123.29  eligible families and are used to administer the child care 
123.30  funds; 
123.31     (2) the methods used by the county to inform eligible 
123.32  families of the availability of child care assistance and 
123.33  related services; 
123.34     (3) the provider rates paid for all children with special 
123.35  needs by provider type; 
123.36     (4) the county prioritization policy for all eligible 
124.1   families under the basic sliding fee program; and 
124.2      (5) other information as requested by the department to 
124.3   ensure compliance with the child care fund statutes and rules 
124.4   promulgated by the commissioner. 
124.5      The commissioner shall notify counties within 60 90 days of 
124.6   the date the plan is submitted whether the plan is approved or 
124.7   the corrections or information needed to approve the plan.  The 
124.8   commissioner shall withhold a county's allocation until it has 
124.9   an approved plan.  Plans not approved by the end of the second 
124.10  quarter after the plan is due may result in a 25 percent 
124.11  reduction in allocation.  Plans not approved by the end of the 
124.12  third quarter after the plan is due may result in a 100 percent 
124.13  reduction in the allocation to the county payments to a county 
124.14  until it has an approved plan.  Counties are to maintain 
124.15  services despite any reduction in their allocation withholding 
124.16  of payments due to plans not being approved. 
124.17     Subd. 3a.  [RESTRICTED INCOME ELIGIBILITY.] If income 
124.18  eligibility parameters have been restricted, counties may 
124.19  continue to move families with income above the restricted 
124.20  eligibility parameters but not to exceed the parameters in 
124.21  section 119B.09, subdivision 1, paragraph (a), clause (1), into 
124.22  the program using county funds.  These expenditures must be 
124.23  reported separately and counties will only be reimbursed for 
124.24  these expenditures if, at the end of the biennium, total program 
124.25  expenditures are at or below the most recent forecast.  
124.26     Subd. 3b.  [WAITING LIST.] Counties that do not move 
124.27  families into the program with county funds must start a waiting 
124.28  list if eligibility parameters are restricted and must report 
124.29  this waiting list to the commissioner with other reports as 
124.30  specified in subdivision 1.  Counties must determine income, 
124.31  authorized activities, and family size before placing a family 
124.32  on the waiting list. 
124.33     Subd. 3c.  [FAMILY INFORMATION.] Counties that move 
124.34  families into the program under subdivision 3a or place families 
124.35  on the waiting list under subdivision 3b must report the number 
124.36  of families served or placed on the waiting list, the date each 
125.1   family began to receive service or was placed on the waiting 
125.2   list, the income of the family and family size when they began 
125.3   to receive service or were placed on the waiting list, and the 
125.4   estimated cost of serving each family served under subdivision 
125.5   3a to the commissioner on a form designated by the commissioner. 
125.6      Subd. 4.  [TERMINATION OF ALLOCATION.] The commissioner may 
125.7   withhold, or reduce, or terminate the allocation of any funds 
125.8   intended to reimburse counties for child care costs under the 
125.9   child care fund if the county that does not meet the reporting, 
125.10  planning, or other requirements of this program.  The 
125.11  commissioner shall reallocate to other counties money so reduced 
125.12  or terminated withholding or reduction of funds under this 
125.13  subdivision does not relieve counties of their requirements 
125.14  under this chapter.  
125.15     Sec. 17.  Minnesota Statutes 2000, section 119B.09, 
125.16  subdivision 1, is amended to read: 
125.17     Subdivision 1.  [GENERAL ELIGIBILITY REQUIREMENTS FOR ALL 
125.18  APPLICANTS FOR CHILD CARE ASSISTANCE.] (a) Child care services 
125.19  must be available to families who need child care to find or 
125.20  keep employment or to obtain the training or education necessary 
125.21  to find employment as defined in section 119B.10, and who: 
125.22     (1) meet the requirements of section 119B.05; receive MFIP 
125.23  assistance; and are participating in employment and training 
125.24  services under chapter 256J or 256K; 
125.25     (2) have household income below the eligibility levels for 
125.26  MFIP; or 
125.27     (3) have household income within a range established by the 
125.28  commissioner. of 75 percent of state median income (SMI) or 
125.29  below at program entry and above 75 percent of SMI at program 
125.30  exit.  The child care assistance program must be forecasted for 
125.31  families who enter with incomes up to 50 percent of SMI.  
125.32  Assistance to families who enter the child care assistance 
125.33  program with incomes above 50 percent of SMI is subject to a 
125.34  capped allocation and counties must establish a waiting list 
125.35  under section 119B.08, subdivision 3b, if families cannot be 
125.36  served with available funds. 
126.1      (b) Child care services must be made available as in-kind 
126.2   services.  
126.3      (c) All applicants for child care assistance and families 
126.4   currently receiving child care assistance must be assisted and 
126.5   required to cooperate in establishment of paternity and 
126.6   enforcement of child support obligations for all children in the 
126.7   family as a condition of program eligibility.  For purposes of 
126.8   this section, a family is considered to meet the requirement for 
126.9   cooperation when the family complies with the requirements of 
126.10  section 256.741. 
126.11     Sec. 18.  Minnesota Statutes 2000, section 119B.09, 
126.12  subdivision 2, is amended to read: 
126.13     Subd. 2.  [SLIDING FEE.] Child care services to eligible 
126.14  families with incomes in the commissioner's established range 
126.15  must be made available on a sliding fee basis.  The upper limit 
126.16  of the range eligibility must be neither less than 70 percent 
126.17  nor more than 90 75 percent of the state median income for a 
126.18  family of four, adjusted for family size.  
126.19     Sec. 19.  Minnesota Statutes 2000, section 119B.09, 
126.20  subdivision 7, is amended to read: 
126.21     Subd. 7.  [DATE OF ELIGIBILITY FOR ASSISTANCE.] The date of 
126.22  eligibility for child care assistance under this chapter is the 
126.23  later of the date the application was signed; or the beginning 
126.24  date of employment, education, or training; or the date a 
126.25  determination has been made that the applicant is a participant 
126.26  in employment and training services under Minnesota Rules, part 
126.27  3400.0080, subpart 2a, or chapter 256J or 256K.  The date of 
126.28  eligibility for the basic sliding fee at-home infant child care 
126.29  program is the later of the date the infant is born or, in a 
126.30  county with a basic sliding fee waiting list, the date the 
126.31  family applies for at-home infant child care.  Payment ceases 
126.32  for a family under the at-home infant child care program when a 
126.33  family has used a total of 12 months of assistance as specified 
126.34  under section 119B.061.  Payment of child care assistance for 
126.35  employed persons on MFIP is effective the date of employment or 
126.36  the date of MFIP eligibility, whichever is later under section 
127.1   119B.10.  Payment of child care assistance for MFIP or work 
127.2   first participants in employment and training services is 
127.3   effective the date of commencement of the services or the date 
127.4   of MFIP or work first eligibility, whichever is later.  Payment 
127.5   of child care assistance for transition year child care must be 
127.6   made retroactive to the date of eligibility for transition year 
127.7   child care. 
127.8      Sec. 20.  Minnesota Statutes 2000, section 119B.10, is 
127.9   amended to read: 
127.10     119B.10 [EMPLOYMENT OR TRAINING ELIGIBILITY.] 
127.11     Subdivision 1.  [ASSISTANCE FOR PERSONS SEEKING AND 
127.12  RETAINING EMPLOYMENT.] (a) Persons who are seeking employment 
127.13  and who are eligible for assistance under this section chapter 
127.14  are eligible to receive up to 240 hours of child care assistance 
127.15  per calendar year.  
127.16     (b) Employed persons who work at least an average of 20 
127.17  hours and full-time students who work at least an average of ten 
127.18  hours a week and receive at least a minimum wage for all hours 
127.19  worked are eligible for continued child care assistance for 
127.20  employment.  For purposes of this section, work-study programs 
127.21  must be counted as employment.  Child care assistance during 
127.22  employment must be authorized as provided in paragraphs (c) and 
127.23  (d). 
127.24     (c) When the person works for an hourly wage and the hourly 
127.25  wage is equal to or greater than the applicable minimum wage, 
127.26  child care assistance shall be provided for the actual hours of 
127.27  employment, break, and mealtime during the employment and travel 
127.28  time up to two hours per day. 
127.29     (d) When the person does not work for an hourly wage, child 
127.30  care assistance must be provided for the lesser of: 
127.31     (1) the amount of child care determined by dividing gross 
127.32  earned income by the applicable minimum wage, up to one hour 
127.33  every eight hours for meals and break time, plus up to two hours 
127.34  per day for travel time; or 
127.35     (2) the amount of child care equal to the actual amount of 
127.36  child care used during employment, including break and mealtime 
128.1   during employment, and travel time up to two hours per day. 
128.2      Subd. 1a.  [ASSISTANCE FOR PERSONS PARTICIPATING IN 
128.3   EMPLOYMENT PLAN.] The following persons are also eligible for 
128.4   child care assistance: 
128.5      (1) persons who are participating in employment orientation 
128.6   or job search, or other employment or training activities that 
128.7   are included in an approved employability development plan under 
128.8   chapter 256K; 
128.9      (2) persons who are participating in work, job search, job 
128.10  support, employment, or training activities as required in their 
128.11  job search support or employment plan, or in appeals, hearings, 
128.12  assessments, or orientations according to chapter 256J; 
128.13     (3) persons who are participating in social services 
128.14  activities under chapter 256J or 256K as required in their 
128.15  employment plan approved according to chapter 256J or 256K; and 
128.16     (4) families who are participating in programs as required 
128.17  in tribal contracts under section 119B.02, subdivision 2, or 
128.18  256.01, subdivision 2.  
128.19     Subd. 2.  [FINANCIAL ELIGIBILITY REQUIRED.] Persons 
128.20  participating in employment programs, training programs, or 
128.21  education programs are eligible for continued assistance from 
128.22  the child care fund, if they are financially eligible under the 
128.23  sliding fee scale set by the commissioner in section 119B.12. 
128.24     Subd. 3.  [CHILD CARE ASSISTANCE DURING EDUCATION.] The 
128.25  following persons are eligible for child care assistance for 
128.26  education or training: 
128.27     (1) persons who meet the requirements of section 119B.09 
128.28  who are enrolled in remedial or basic education or English as a 
128.29  second language, or persons up to the age of 19 who are enrolled 
128.30  in an educational program to attain a high school diploma or 
128.31  general equivalency diploma; and 
128.32     (2) persons who meet the requirements of this section and 
128.33  section 119B.09 must also receive child care assistance to 
128.34  reduce the costs of child care for education when employed an 
128.35  average of at least 20 hours per week under subdivision 1, and 
128.36  are not receiving MFIP benefits as defined in section 119B.011, 
129.1   subdivision 17.  
129.2      Subd. 4.  [SATISFACTORY PROGRESS.] Students enrolled in an 
129.3   education program under section 119B.011, subdivision 11, must 
129.4   be making satisfactory progress toward completion of the program 
129.5   as stipulated in the school's satisfactory progress policy. 
129.6      Subd. 5.  [LIMITING DURATION OF TRAINING.] Counties may not 
129.7   limit the duration of child care subsidies for a person in an 
129.8   employment or educational program except when the person is 
129.9   found to be ineligible under the child care fund eligibility 
129.10  standards.  Any limitation must be based on a person's 
129.11  employment plan in the case of an MFIP participant. 
129.12     Subd. 6.  [MAXIMUM LENGTH OF TIME FOR TRAINING.] The 
129.13  maximum length of time a participant is eligible for child care 
129.14  assistance under the child care fund for education and training 
129.15  is no more than the maximum time allowed to complete the credit 
129.16  requirements for an associate or baccalaureate degree as 
129.17  stipulated in the school's satisfactory progress policy.  This 
129.18  length of time excludes basic or remedial education programs, 
129.19  English as a second language, high school, and general 
129.20  equivalency diploma programs needed to prepare for 
129.21  post-secondary education or employment. 
129.22     Subd. 7.  [MFIP STUDENT MOVES TO ANOTHER COUNTY.] If an 
129.23  MFIP participant who is receiving child care assistance under 
129.24  this chapter moves to another county, continues to participate 
129.25  in educational or training programs authorized in the MFIP 
129.26  participant's employment plans, and continues to be eligible for 
129.27  child care assistance under this chapter, the MFIP participant 
129.28  must receive continued child care assistance from the county 
129.29  responsible for the MFIP participant's current employment plan 
129.30  under section 256G.07. 
129.31     Sec. 21.  Minnesota Statutes 2000, section 119B.11, 
129.32  subdivision 1, is amended to read: 
129.33     Subdivision 1.  [COUNTY CONTRIBUTIONS REQUIRED.] Beginning 
129.34  July 1, 1997, (a) In addition to payments from basic sliding fee 
129.35  child care assistance program participants, each county shall 
129.36  contribute from county tax or other sources a fixed local match 
130.1   equal to its calendar year 1996 2000 required county 
130.2   contribution reduced by the administrative funding loss that 
130.3   would have occurred in state fiscal year 1996 under section 
130.4   119B.15.  The commissioner shall recover funds from the county 
130.5   as necessary to bring county expenditures into compliance with 
130.6   this subdivision.  The commissioner may accept county 
130.7   contributions, including contributions above the fixed local 
130.8   match, in order to make state payments. 
130.9      (b) The commissioner may accept payments from counties:  (1)
130.10  to fulfill the county contribution as required under subdivision 
130.11  1; (2) to pay for services authorized under this chapter beyond 
130.12  those paid for with federal or state funds or with the required 
130.13  county contributions; or (3) to pay for child care services not 
130.14  authorized under this chapter.  The commissioner may keep 
130.15  accounts as necessary within the state's accounting system.  The 
130.16  receipts must be deposited in the special revenue fund. 
130.17     Sec. 22.  Minnesota Statutes 2000, section 119B.12, 
130.18  subdivision 2, is amended to read: 
130.19     Subd. 2.  [PARENT FEE.] A family's monthly parent fee must 
130.20  be a fixed percentage of its annual gross income.  Parent fees 
130.21  must apply to families eligible for child care assistance 
130.22  under sections 119B.03 and 119B.05 section 119B.09.  Income must 
130.23  be as defined in section 119B.011, subdivision 15.  The fixed 
130.24  percent is based on the relationship of the family's annual 
130.25  gross income to 100 percent of state median income.  Beginning 
130.26  January 1, 1998, parent fees must begin at 75 percent of the 
130.27  poverty level.  The minimum parent fees for families between 75 
130.28  percent and 100 percent of poverty level must be $5 per month.  
130.29  Parent fees must be established in rule and must provide for 
130.30  graduated movement to full payment. 
130.31     Sec. 23.  Minnesota Statutes 2000, section 119B.13, 
130.32  subdivision 1, is amended to read: 
130.33     Subdivision 1.  [SUBSIDY RESTRICTIONS.] The maximum rate 
130.34  paid for child care assistance under the child care fund may not 
130.35  exceed the 75th percentile rate for like-care arrangements in 
130.36  the county as surveyed by the commissioner.  Beginning July 1, 
131.1   2001, the 75th percentile rate established for a county may not 
131.2   be less than the 75th percentile rate established for that 
131.3   county during the previous year.  A rate which includes a 
131.4   provider bonus paid under subdivision 2 or a special needs rate 
131.5   paid under subdivision 3 may be in excess of the maximum rate 
131.6   allowed under this subdivision.  The department shall monitor 
131.7   the effect of this paragraph on provider rates.  The county 
131.8   shall pay the provider's full charges for every child in care up 
131.9   to the maximum established.  The commissioner shall determine 
131.10  the maximum rate for each type of care, including special needs 
131.11  and handicapped care.  Not less than once every two years, the 
131.12  commissioner shall evaluate market practices for payment of 
131.13  absences and shall establish policies for payment of absent days 
131.14  that reflect current market practice. 
131.15     When the provider charge is greater than the maximum 
131.16  provider rate allowed, the parent is responsible for payment of 
131.17  the difference in the rates in addition to any family copayment 
131.18  fee. 
131.19     Sec. 24.  Minnesota Statutes 2000, section 119B.13, 
131.20  subdivision 6, is amended to read: 
131.21     Subd. 6.  [PROVIDER PAYMENTS.] Counties or the state shall 
131.22  make vendor payments to the child care provider or pay the 
131.23  parent directly for eligible child care expenses.  If payments 
131.24  for child care assistance are made to providers, the provider 
131.25  shall bill the county for services provided within ten days of 
131.26  the end of the month of service.  If bills are submitted in 
131.27  accordance with the provisions of this subdivision, a county or 
131.28  the state shall issue payment to the provider of child care 
131.29  under the child care fund within 30 days of receiving an invoice 
131.30  from the provider.  Counties or the state may establish policies 
131.31  that make payments on a more frequent basis.  A county's payment 
131.32  policies must be included in the county's child care plan under 
131.33  section 119B.08, subdivision 3.  If payments are made by the 
131.34  state, in addition to being in compliance with this subdivision, 
131.35  the payments must be made in compliance with section 16A.124. 
131.36     Sec. 25.  Minnesota Statutes 2000, section 119B.15, is 
132.1   amended to read: 
132.2      119B.15 [ADMINISTRATIVE EXPENSES.] 
132.3      The commissioner shall use up to 1/21 of the state and 
132.4   federal funds available for the basic sliding fee program and 
132.5   1/21 of the state and federal funds available for the MFIP child 
132.6   care assistance program for payments to counties for 
132.7   administrative expenses the administrative costs of the delivery 
132.8   of direct services. 
132.9      Sec. 26.  [119B.221] [TEACHER EDUCATION AND COMPENSATION 
132.10  HELPS PROGRAM.] 
132.11     Subdivision 1.  [ESTABLISHMENT.] The commissioner shall 
132.12  establish a teacher education and compensation helps program 
132.13  (TEACH) to provide tuition scholarships, education incentive 
132.14  bonuses, and retention bonuses to child care and education 
132.15  providers and staff.  The commissioner shall transfer funds 
132.16  provided under this section through a grant to a nonprofit 
132.17  organization licensed to administer the TEACH program.  The 
132.18  commissioner shall establish application procedures, eligibility 
132.19  criteria, terms, and other conditions necessary to administer 
132.20  the program. 
132.21     Subd. 2.  [PROGRAM COMPONENTS.] (a) The nonprofit 
132.22  organization shall distribute funds for: 
132.23     (1) tuition scholarships up to $2,000 per year for courses 
132.24  leading to the nationally recognized child development associate 
132.25  credential or college-level courses leading to the University of 
132.26  Minnesota competency-based training assessment credential, or 
132.27  similar credentials recognized by the department or a 
132.28  certificate, Associate of Arts, Bachelor of Arts, or Master of 
132.29  Arts in early childhood development and school-age care; and 
132.30     (2) education incentive bonuses of $300 to $500 to 
132.31  participants in the tuition scholarship program if they complete 
132.32  a year of working in the child care and education field. 
132.33     (b) Applicants for the scholarship must be either employed 
132.34  by a licensed child care center and working directly with 
132.35  children, a licensed family child care provider, or an employee 
132.36  in a school-age program operated under the auspices of a 
133.1   license-exempt public program.  Scholarship recipients who are 
133.2   self-employed must contribute five percent of the total 
133.3   scholarship.  Applicants who are not self-employed must be 
133.4   sponsored by their employer and the employer must contribute 
133.5   five percent of the total scholarship. 
133.6      (c) The organization shall also distribute funds for 
133.7   retention bonuses of $600 to $3,500 annually to be paid 
133.8   semiannually to child care and education providers and staff who 
133.9   have worked in the child care and education field for at least 
133.10  one year.  The amount of the retention bonus must be based on 
133.11  the applicant's level of education when they apply for the 
133.12  bonus.  A provider or staff is eligible for the bonus if: 
133.13     (1) the provider or staff has worked in the field for at 
133.14  least one year and has been working at the same location for at 
133.15  least one year at the time of application; and 
133.16     (2) is earning an hourly wage that is less than the hourly 
133.17  wage equivalent of elementary school teachers in the school 
133.18  district. 
133.19     The commissioner shall annually adjust the scholarship and 
133.20  bonus amounts by the rate of inflation as measured by the 
133.21  Consumer Price Index. 
133.22     Subd. 3.  [ADVISORY COMMITTEE.] The TEACH program must have 
133.23  an advisory board composed of five members from early childhood 
133.24  and school-age care professional associations, three members 
133.25  from professional associations that represent the cultural 
133.26  diversity of communities; one member of the business community 
133.27  working in the human resources field; two parents using child 
133.28  care; one representative each from a Head Start program and an 
133.29  early childhood and family education program; one licensed child 
133.30  care center teacher; one licensed child care center director; 
133.31  one licensed family child care provider; and one kindergarten 
133.32  through third grade teacher. 
133.33     Sec. 27.  Minnesota Statutes 2000, section 119B.24, is 
133.34  amended to read: 
133.35     119B.24 [DUTIES OF COMMISSIONER.] 
133.36     In addition to the powers and duties already conferred by 
134.1   law, the commissioner of children, families, and learning shall: 
134.2      (1) administer the child care fund, including the basic 
134.3   sliding fee program authorized under sections 119B.011 to 
134.4   119B.16; 
134.5      (2) monitor the child care resource and referral programs 
134.6   established under section 119B.19; and 
134.7      (3) encourage child care providers to participate in a 
134.8   nationally recognized accreditation system for early 
134.9   childhood and school-age care programs.  The commissioner shall 
134.10  reimburse licensed Subject to approval by the commissioner, 
134.11  family child care providers and early childhood and school-age 
134.12  care programs shall be reimbursed for one-half of the direct 
134.13  cost of accreditation fees, upon successful completion of 
134.14  accreditation. 
134.15     Sec. 28.  Minnesota Statutes 2000, section 121A.16, is 
134.16  amended to read: 
134.17     121A.16 [EARLY CHILDHOOD HEALTH AND DEVELOPMENT SCREENING; 
134.18  PURPOSE.] 
134.19     The legislature finds that early detection of children's 
134.20  health and developmental problems can reduce their later need 
134.21  for costly care, minimize their physical and educational 
134.22  handicaps disabilities, and aid in their rehabilitation.  The 
134.23  purpose of sections 121A.16 to 121A.19 is to assist parents and 
134.24  communities in improving the health of Minnesota children and in 
134.25  planning educational and health programs.  To effect this 
134.26  purpose in the most cost-effective and efficient manner 
134.27  possible, the commissioners of children, families, and learning 
134.28  and human services shall identify a plan to maximize the use of 
134.29  early and periodic screening, diagnosis, and treatment program 
134.30  funding for the purposes of sections 121A.16 to 121A.19, and 
134.31  shall report to the legislature by December 1, 2001, their 
134.32  recommendations for better coordination between the public 
134.33  funding streams that currently exist for early childhood 
134.34  screening. 
134.35     Sec. 29.  Minnesota Statutes 2000, section 121A.17, 
134.36  subdivision 1, is amended to read: 
135.1      Subdivision 1.  [EARLY CHILDHOOD DEVELOPMENTAL SCREENING.] 
135.2   Every school board must provide for a mandatory program of early 
135.3   childhood developmental screening for children at least once 
135.4   before school entrance, targeting children who are between 3-1/2 
135.5   and four years old.  Screening must be accomplished as near as 
135.6   possible to the child's third birthday but may be as early as 
135.7   age two at the option of the child's parent or legal guardian.  
135.8   Children screened between the ages of two and three should be 
135.9   rescreened at or after age three.  This screening program must 
135.10  be established either by one board, by two or more boards acting 
135.11  in cooperation, by service cooperatives, by early childhood 
135.12  family education programs, or by other existing programs.  This 
135.13  screening examination is a mandatory requirement for a student 
135.14  to continue attending kindergarten or first grade in a public 
135.15  school.  A child need not submit to developmental screening 
135.16  provided by a board if the child's health records indicate to 
135.17  the board that the child has received comparable developmental 
135.18  screening from a public or private health care organization or, 
135.19  individual health care provider, or Head Start.  Districts are 
135.20  encouraged to reduce the costs of preschool developmental 
135.21  screening programs by utilizing volunteers in implementing the 
135.22  program. 
135.23     Sec. 30.  Minnesota Statutes 2000, section 121A.17, 
135.24  subdivision 3, is amended to read: 
135.25     Subd. 3.  [SCREENING PROGRAM.] (a) A screening program must 
135.26  include at least the following components:  developmental 
135.27  assessments, health and developmental history, hearing and 
135.28  vision screening or referral, immunization review and referral, 
135.29  the child's height and weight, identification of risk factors 
135.30  that may influence learning, an interview with the parent about 
135.31  the child, and referral for assessment, diagnosis, and treatment 
135.32  when potential needs are identified.  The district and the 
135.33  person performing or supervising the screening must provide a 
135.34  parent or guardian with clear written notice that the parent or 
135.35  guardian may decline to answer questions or provide information 
135.36  about family circumstances that might affect development and 
136.1   identification of risk factors that may influence learning.  The 
136.2   notice must clearly state that declining to answer questions or 
136.3   provide information does not prevent the child from being 
136.4   enrolled in kindergarten or first grade if all other screening 
136.5   components are met.  If a parent or guardian is not able to read 
136.6   and comprehend the written notice, the district and the person 
136.7   performing or supervising the screening must convey the 
136.8   information in another manner.  The notice must also inform the 
136.9   parent or guardian that a child need not submit to the district 
136.10  screening program if the child's health records indicate to the 
136.11  school that the child has received comparable developmental 
136.12  screening performed within the preceding 365 days by a public or 
136.13  private health care organization or individual health care 
136.14  provider.  The notice must be given to a parent or guardian at 
136.15  the time the district initially provides information to the 
136.16  parent or guardian about screening and must be given again at 
136.17  the screening location.  
136.18     (b) All screening components shall be consistent with the 
136.19  standards of the state commissioner of health and the 
136.20  commissioner of children, families, and learning for early 
136.21  developmental screening programs.  A developmental screening 
136.22  program must not provide laboratory tests or a physical 
136.23  examination to any child.  The district must request from the 
136.24  public or private health care organization or the individual 
136.25  health care provider the results of any laboratory test or 
136.26  physical examination within the 12 months preceding a child's 
136.27  scheduled screening.  
136.28     (c) If a child is without health coverage, the school 
136.29  district must refer the child to an appropriate health care 
136.30  provider, and must provide application materials for 
136.31  MinnesotaCare if appropriate.  
136.32     (d) A board may offer additional components such as 
136.33  nutritional, physical and dental assessments, review of family 
136.34  circumstances that might affect development, blood pressure, and 
136.35  laboratory tests, and health history.  
136.36     (e) If a statement signed by the child's parent or guardian 
137.1   is submitted to the administrator or other person having general 
137.2   control and supervision of the school that the child has not 
137.3   been screened because of conscientiously held beliefs of the 
137.4   parent or guardian, the screening is not required.  
137.5      Sec. 31.  Minnesota Statutes 2000, section 121A.17, 
137.6   subdivision 4, is amended to read: 
137.7      Subd. 4.  [FOLLOW-UP SCREENING.] If any child's screening 
137.8   indicates a condition which requires diagnosis or treatment, the 
137.9   child's parents shall be notified of the condition and the board 
137.10  shall ensure that an appropriate follow-up and referral process 
137.11  is available.  Districts must report to the commissioner results 
137.12  of referrals and subsequent interventions. 
137.13     Sec. 32.  Minnesota Statutes 2000, section 121A.17, 
137.14  subdivision 5, is amended to read: 
137.15     Subd. 5.  [DEVELOPMENTAL SCREENING PROGRAM INFORMATION.] 
137.16  The board must inform each resident family with a child eligible 
137.17  to participate in the developmental screening program about the 
137.18  availability of the program and the state's requirement that a 
137.19  child receive developmental screening not later than 30 days 
137.20  after the first day of attending kindergarten in a public school.
137.21  as near as possible to the child's third birthday.  The board 
137.22  must also inform families that they may choose to have their 
137.23  child screened as early as age two and that children screened 
137.24  between the ages of two and three should be rescreened at or 
137.25  after age three.  If a child has not been screened prior to 
137.26  school entrance, families must be notified of the state's 
137.27  requirement that a child receive developmental screening not 
137.28  later than 30 days after first attending kindergarten in a 
137.29  public school. 
137.30     Sec. 33.  Minnesota Statutes 2000, section 121A.19, is 
137.31  amended to read: 
137.32     121A.19 [DEVELOPMENTAL SCREENING AID.] 
137.33     Subdivision 1.  [AID.] Each school year, the state must pay 
137.34  a district $40 $50 for each four-year-old child, $65 for each 
137.35  three-year-old child, and $75 for each two-year-old child 
137.36  screened according to the requirements of section 121A.17.  Each 
138.1   school year, the state must pay a district $5 per child for each 
138.2   follow-up on referrals and subsequent interventions.  If this 
138.3   amount of aid is insufficient, the district may permanently 
138.4   transfer from the general fund an amount that, when added to the 
138.5   aid, is sufficient. 
138.6      Subd. 2.  [TECHNICAL ASSISTANCE.] Each school year, $55,000 
138.7   must be available for statewide training, technical assistance, 
138.8   and outreach. 
138.9      Sec. 34.  Minnesota Statutes 2000, section 124D.13, is 
138.10  amended by adding a subdivision to read: 
138.11     Subd. 2a.  [PROGRAM PLAN REVIEW AND APPROVAL.] A school 
138.12  district shall biennially by May 15 submit to the commissioner a 
138.13  program plan describing how the district intends to use program 
138.14  funds to address the program characteristics under subdivision 
138.15  2, the coordination requirements under subdivision 8, the 
138.16  specific needs of young children and their families in the 
138.17  school district, and other information as required by the 
138.18  commissioner.  One-half of districts shall submit a plan in the 
138.19  even-numbered fiscal years and the remaining districts in the 
138.20  odd-numbered fiscal years as designated by the commissioner.  If 
138.21  the program is integrated with the district's school readiness 
138.22  program, the district may request a waiver in advance to submit 
138.23  only one joint program plan for the two programs.  The 
138.24  commissioner shall review and make comments or recommendations 
138.25  within 90 days of receiving the plan. 
138.26     Sec. 35.  Minnesota Statutes 2000, section 124D.13, 
138.27  subdivision 8, is amended to read: 
138.28     Subd. 8.  [COORDINATION.] A district is encouraged to 
138.29  coordinate the program with its special education and vocational 
138.30  education programs and with related services provided by other 
138.31  governmental agencies and nonprofit agencies. must coordinate 
138.32  the early childhood family education program with existing 
138.33  community-based programs and service providers including school 
138.34  readiness, Head Start, child care, and others, and foster 
138.35  collaboration among agencies and other community-based 
138.36  organizations and programs that provide flexible, family-focused 
139.1   services to families with young children.  The district must 
139.2   actively encourage greater sharing of information, 
139.3   responsibility, and accountability among service providers and 
139.4   facilitate the children's transition to kindergarten. 
139.5      A district is encouraged to coordinate adult basic 
139.6   education programs provided to parents and early childhood 
139.7   family education programs provided to children to accomplish the 
139.8   goals of section 124D.895. 
139.9      Sec. 36.  Minnesota Statutes 2000, section 124D.13, 
139.10  subdivision 9, is amended to read: 
139.11     Subd. 9.  [DISTRICT ADVISORY COUNCILS.] The board must 
139.12  appoint an advisory council from the area in which the program 
139.13  is provided.  A majority of the council must be parents 
139.14  participating in the program.  The council must assist the board 
139.15  in developing, planning, and monitoring the early childhood 
139.16  family education program and in integrating service delivery 
139.17  with other early childhood and family services within the 
139.18  community.  The council must report to the board and the 
139.19  community education advisory council.  
139.20     Sec. 37.  Minnesota Statutes 2000, section 124D.13, is 
139.21  amended by adding a subdivision to read: 
139.22     Subd. 13.  [ANNUAL REPORT.] A district is required to 
139.23  report annual program and participant data as defined by the 
139.24  commissioner by August 15 for the school year ending June 30 of 
139.25  the same calendar year.  A district's failure to report the 
139.26  necessary data may result in the withholding of future program 
139.27  funds. 
139.28     Sec. 38.  Minnesota Statutes 2000, section 124D.135, 
139.29  subdivision 1, is amended to read: 
139.30     Subdivision 1.  [REVENUE.] The revenue for early childhood 
139.31  family education programs for a school district equals $113.50 
139.32  for fiscal years 2000 and 2001 and $120 for fiscal year 2002 and 
139.33  $125.60 for fiscal year 2003 and later fiscal years times the 
139.34  greater of: 
139.35     (1) 150; or 
139.36     (2) the number of people under five years of age residing 
140.1   in the district on October 1 of the previous school year. 
140.2      Sec. 39.  Minnesota Statutes 2000, section 124D.135, 
140.3   subdivision 3, is amended to read: 
140.4      Subd. 3.  [EARLY CHILDHOOD FAMILY EDUCATION LEVY.] For 
140.5   fiscal year 2001 to obtain early childhood family education 
140.6   revenue, a district may levy an amount equal to the tax rate of 
140.7   .5282 .5045 percent times the adjusted tax capacity of the 
140.8   district for the year preceding the year the levy is certified.  
140.9   Beginning with levies for fiscal year 2002, by September 30 of 
140.10  each year, the commissioner shall establish a tax rate for early 
140.11  childhood education revenue that raises $21,027,000 for fiscal 
140.12  year 2002 and $22,135,000 in fiscal year 2003 and each 
140.13  subsequent year.  If the amount of the early childhood family 
140.14  education levy would exceed the early childhood family education 
140.15  revenue, the early childhood family education levy must equal 
140.16  the early childhood family education revenue. 
140.17     Sec. 40.  Minnesota Statutes 2000, section 124D.135, 
140.18  subdivision 7, is amended to read: 
140.19     Subd. 7.  [RESERVE ACCOUNT.] (a) Early childhood family 
140.20  education revenue, which includes aids, levies, fees, grants, 
140.21  and all other revenues received by the district for early 
140.22  childhood family education programs, must be maintained in a 
140.23  reserve account within the community service fund. 
140.24     (b) This reserve account may not exceed 25 percent of the 
140.25  district's annual early childhood family education revenue.  If 
140.26  a district anticipates that the reserve account may exceed 25 
140.27  percent because of extenuating circumstances, prior approval to 
140.28  exceed the limit must be obtained in writing from the 
140.29  commissioner.  
140.30     (c) If a deficit in the reserve account exists at the end 
140.31  of a fiscal year and the deficit is not eliminated by revenues 
140.32  from operations in the next year, then the deficit must be 
140.33  eliminated by a permanent fund transfer from the district's 
140.34  general fund at the end of the second year.  
140.35     (d) Notwithstanding paragraph (c), a district may incur a 
140.36  deficit in the fund for up to three years without making the 
141.1   permanent transfer if the district submits to the commissioner 
141.2   by January 1 of the second fiscal year a plan for eliminating 
141.3   the deficit at the end of the third fiscal year. 
141.4      Sec. 41.  Minnesota Statutes 2000, section 124D.135, is 
141.5   amended by adding a subdivision to read: 
141.6      Subd. 8.  [ADJUSTMENT FOR UNUSED FUNDS.] A district that 
141.7   has an early childhood family education reserve fund balance 
141.8   that exceeds 25 percent of the annual revenue for the program 
141.9   shall have its future aid and levy authority reduced 
141.10  accordingly.  This reduction shall be made in the fiscal year 
141.11  that begins no more than 30 months after the excess occurs in 
141.12  the reserve account.  The commissioner shall reallocate aid 
141.13  reduced under this provision to other eligible school districts. 
141.14     Sec. 42.  Minnesota Statutes 2000, section 124D.15, is 
141.15  amended to read: 
141.16     124D.15 [SCHOOL READINESS PROGRAMS.] 
141.17     Subdivision 1.  [ESTABLISHMENT; PURPOSE.] A district or a 
141.18  group of districts may establish a school readiness program that 
141.19  provides a continuum of flexible services for eligible children. 
141.20  The purpose of a school readiness program is to provide all 
141.21  eligible children adequate opportunities to participate in child 
141.22  development programs that enable the children to enter school 
141.23  with the necessary skills and behavior and family stability and 
141.24  support to progress and flourish. 
141.25     Subd. 2.  [CHILD ELIGIBILITY.] (a) A child is eligible 
141.26  to may participate in a school readiness program offered 
141.27  by through the resident district or another district if the 
141.28  child is:  
141.29     (1) at least 3-1/2 years old but has not entered 
141.30  kindergarten; and 
141.31     (2) the child receives developmental screening under 
141.32  section 121A.17 within 90 days of enrolling in the program or 
141.33  the child's fourth birthday.; and 
141.34     (b) (2) a child younger than 3-1/2 years old may 
141.35  participate in a school readiness program if the district or 
141.36  group of districts that establishes the program determines that 
142.1   the program can more effectively accomplish its purpose by 
142.2   including children younger than 3-1/2 years old or sponsors such 
142.3   a program. 
142.4      Subd. 3.  [PROGRAM ELIGIBILITY COMPONENTS.] A school 
142.5   readiness program must include the following: 
142.6      (1) a comprehensive plan to anticipate and meet the needs 
142.7   of participating families by coordinating existing social 
142.8   services, health care, nutrition, child care, and other 
142.9   community programs and by fostering collaboration among agencies 
142.10  or other community-based organizations and programs that provide 
142.11  a full range of flexible, family-focused services to families 
142.12  with young children; 
142.13     (2) a development and learning component to help children 
142.14  develop appropriate social, cognitive, and physical skills, and 
142.15  emotional well-being; 
142.16     (3) health referral or health services to address 
142.17  children's medical, dental, mental health, and nutritional 
142.18  needs; 
142.19     (4) a nutrition component to meet children's daily 
142.20  nutritional needs; 
142.21     (5) parents' family involvement and education in meeting 
142.22  children's educational, health, social service, and other needs; 
142.23     (6) community outreach to ensure participation by families 
142.24  who represent the racial, cultural, and economic diversity of 
142.25  the community; 
142.26     (7) community-based staff and program resources, including 
142.27  interpreters, that reflect the racial and ethnic characteristics 
142.28  of the children participating in the program; and 
142.29     (8) a literacy component to ensure that the literacy needs 
142.30  of parents are addressed through referral to and cooperation 
142.31  with adult basic education programs and other adult literacy 
142.32  programs. 
142.33     Subd. 4.  [PROGRAM GOALS.] School readiness programs are 
142.34  encouraged to: 
142.35     (1) prepare an individualized service plan to meet each 
142.36  child's developmental and learning needs; 
143.1      (2) provide parent education to increase parents' 
143.2   knowledge, understanding, skills, and experience in child 
143.3   development and learning; 
143.4      (3) foster substantial parent involvement that may include 
143.5   having parents develop curriculum or serve as a paid or 
143.6   volunteer educator, resource person, or other staff; 
143.7      (4) identify the needs of families in the content of the 
143.8   child's school readiness and family literacy; 
143.9      (5) expand collaboration with public organizations, 
143.10  businesses, nonprofit organizations, or other private 
143.11  organizations to develop a coordinated system of flexible, 
143.12  family-focused services available to anticipate and meet the 
143.13  full range of needs of all eligible children and their families; 
143.14     (6) coordinate treatment and follow-up services for 
143.15  children's identified physical and mental health problems; 
143.16     (7) offer transportation for eligible children and their 
143.17  families for whom other forms of transportation are unavailable 
143.18  or would constitute an excessive financial burden; 
143.19     (8) make substantial outreach efforts to assure significant 
143.20  participation by families with the greatest needs, including 
143.21  those families whose income level does not exceed the most 
143.22  recent update of the poverty guidelines required by sections 652 
143.23  and 673(2) of the Omnibus Budget Reconciliation Act of 1981 
143.24  (Public Law Number 97-35); 
143.25     (9) use community-based, trained home visitors serving as 
143.26  paraprofessionals to provide social support, referrals, parent 
143.27  education, and other services; 
143.28     (10) create community-based family resource centers and 
143.29  interdisciplinary teams; and 
143.30     (11) enhance the quality of family or center-based child 
143.31  care programs by providing supplementary services and resources, 
143.32  staff training, and assistance with children with special needs. 
143.33     (1) expand collaboration with public organizations, 
143.34  businesses, nonprofit organizations, or other private 
143.35  organizations to develop a coordinated system of flexible, 
143.36  family-focused services available to anticipate and meet the 
144.1   full range of needs of all eligible children and their families; 
144.2      (2) make substantial outreach efforts to assure significant 
144.3   participation by families with the greatest needs, including, 
144.4   but not limited to, those families whose income level does not 
144.5   exceed the exit level for MFIP participants as identified in 
144.6   chapter 256; 
144.7      (3) identify the needs of families in the context of the 
144.8   child's school readiness and family literacy; 
144.9      (4) enhance the quality of family or center-based child 
144.10  care programs by providing outreach, supplementary services and 
144.11  resources, staff training, and assistance with children with 
144.12  special needs; 
144.13     (5) prepare an individualized learning plan to meet each 
144.14  child's developmental and learning needs to ensure progress 
144.15  towards school readiness; 
144.16     (6) foster substantial parent involvement that may include 
144.17  having parents serve as paid or volunteer educators, resource 
144.18  persons, or other staff; and 
144.19     (7) provide parent education to increase parents' 
144.20  knowledge, understanding, skills, and experience in child 
144.21  development and learning. 
144.22     Subd. 4a.  [STRATEGIES FOR ACHIEVING GOALS.] School 
144.23  readiness programs are encouraged to: 
144.24     (1) offer transportation for eligible children and their 
144.25  families for whom other forms of transportation are unavailable 
144.26  or would constitute an excessive financial burden; 
144.27     (2) use community-based, trained home visitors serving as 
144.28  paraprofessionals to provide social support, referrals, parent 
144.29  education, staff development for child care providers, and other 
144.30  services; 
144.31     (3) create community-based family resource centers and 
144.32  interdisciplinary teams; and 
144.33     (4) coordinate treatment and follow-up services for 
144.34  children's identified physical and mental health problems. 
144.35     Subd. 5.  [SERVICES WITH NEW OR EXISTING PROVIDERS.] A 
144.36  district is encouraged to may contract with a public, private, 
145.1   or nonprofit organization to provide eligible children 
145.2   developmentally appropriate services that meet the program 
145.3   requirements in subdivision 3.  In the alternative, A district 
145.4   may provide quality enhancement grants to reach a school 
145.5   readiness level of quality under subdivision 11.  A district may 
145.6   pay tuition or fees to place an eligible child in an existing 
145.7   program.  A district may establish a new program where no 
145.8   existing, reasonably accessible program meets the program 
145.9   requirements in subdivision 3.  Services may be provided in a 
145.10  site-based program or in the home of the child or a combination 
145.11  of both.  The district may not restrict participation to 
145.12  district residents.  
145.13     Subd. 6.  [COORDINATION WITH OTHER PROVIDERS.] (a) The 
145.14  district must coordinate the school readiness program with 
145.15  existing community-based social services service providers, Head 
145.16  Start, child care, and others and foster collaboration among 
145.17  agencies and other community-based organizations and programs 
145.18  that provide flexible, family-focused services to families with 
145.19  children.  The district must actively encourage greater sharing 
145.20  of information, responsibility, and accountability among service 
145.21  providers and facilitate children's transition between 
145.22  programs and to kindergarten.  
145.23     (b) To the extent possible, resources must follow the 
145.24  children so that children receive appropriate services in a 
145.25  stable environment and are not moved from one program location 
145.26  to another.  Where geographically feasible, the district must 
145.27  actively promote colocating collaboration and integration of 
145.28  services for children and their families. 
145.29     Subd. 7.  [ADVISORY COUNCIL.] Each school readiness program 
145.30  must have an advisory council composed of members of existing 
145.31  early education-related boards, parents of participating 
145.32  children, child care providers, representatives from Head Start 
145.33  and early childhood and family education, if those programs are 
145.34  offered in the district, culturally specific service 
145.35  organizations, the local business community, health services 
145.36  providers, local resource and referral agencies, and 
146.1   representatives of early childhood service providers, and the 
146.2   kindergarten through grade 12 system, and may include other 
146.3   community-based organizations.  The council must advise the 
146.4   board in creating and administering the program and must monitor 
146.5   the progress of the program.  The council must ensure that 
146.6   children at greatest risk receive appropriate services.  If the 
146.7   board is unable to appoint to the advisory council members of 
146.8   existing early education-related boards, it must appoint parents 
146.9   of children enrolled in the program who represent the racial, 
146.10  cultural, and economic diversity of the district and 
146.11  representatives of early childhood service providers as 
146.12  representatives to an existing advisory council. A majority of 
146.13  council members must be parents participating in the program.  
146.14  The council must advise the board in planning, developing, and 
146.15  monitoring the program and in integrating service delivery with 
146.16  other early childhood and family services within the community.  
146.17  The council must assure that children at greatest risk receive 
146.18  appropriate services.  In lieu of establishing a new or separate 
146.19  advisory council, a board may appoint parents of children 
146.20  enrolled in the program who represent the racial, cultural, and 
146.21  economic diversity of the district and representatives of early 
146.22  childhood service providers as representatives to an existing 
146.23  advisory council with comparable purpose and function to fulfill 
146.24  the responsibilities described in this subdivision. 
146.25     Subd. 8.  [PRIORITIZING SERVICES.] (a) The district must 
146.26  give greatest priority to providing services to eligible 
146.27  children identified, through a means such as the early childhood 
146.28  screening process, as being developmentally disadvantaged or 
146.29  experiencing risk factors that could impede their school 
146.30  readiness. 
146.31     (b) As available funding increases substantially over the 
146.32  fiscal year 2000 level, emphasis shall be given to strengthening 
146.33  services for children birth to age 3-1/2 and the quality of 
146.34  child care. 
146.35     Subd. 9.  [CHILD RECORDS.] (a) A record of a child's 
146.36  performance, progress, and development, and services received 
147.1   must be maintained in the child's cumulative record while 
147.2   enrolled in the school readiness program.  The cumulative record 
147.3   must be used for the purpose of planning activities to suit 
147.4   individual needs and shall become part of the child's permanent 
147.5   record.  The cumulative record is private data under chapter 
147.6   13.  Information in the record may be disseminated to an 
147.7   educator or service provider only to the extent that that person 
147.8   has a need to know the information.  
147.9      (b) An educator or service provider may transmit 
147.10  information in the child's cumulative record to an educator or 
147.11  service provider in another program for young children when the 
147.12  child applies to enroll in that other program including 
147.13  kindergarten. 
147.14     Subd. 10.  [SUPERVISION.] A program provided by a board 
147.15  must be supervised by a licensed early childhood teacher, a 
147.16  certified early childhood educator, or a licensed parent 
147.17  educator.  A program provided according to a contract between a 
147.18  district and a nonprofit organization or another private 
147.19  organization must be supervised and staffed according to the 
147.20  terms of the contract.  
147.21     Subd. 11.  [DISTRICT STANDARDS.] The board of the district 
147.22  must develop standards for the school readiness program that 
147.23  reflect the eligibility criteria program components in 
147.24  subdivision 3.  The board must consider including in the 
147.25  standards the program characteristics in subdivision 4. 
147.26     Subd. 12.  [PROGRAM FEES.] A district may adopt a sliding 
147.27  fee schedule based on a family's income but must waive a fee for 
147.28  a participant unable to pay.  The fees charged must be designed 
147.29  to enable eligible children of all socioeconomic levels to 
147.30  participate in the program. 
147.31     Subd. 13.  [ADDITIONAL REVENUE.] A district or an 
147.32  organization contracting with a district may receive money or 
147.33  in-kind services from a public or private organization. 
147.34     Subd. 14.  [ANNUAL REPORTING.] A district must report 
147.35  annual program and participant data as defined by the 
147.36  commissioner by August 15 for the school year ending June 30 of 
148.1   the same calendar year.  A district's failure to report the 
148.2   necessary data may result in withholding of future program funds.
148.3      Sec. 43.  Minnesota Statutes 2000, section 124D.16, is 
148.4   amended to read: 
148.5      124D.16 [SCHOOL READINESS AID.] 
148.6      Subdivision 1.  [PROGRAM REVIEW AND APPROVAL.] A school 
148.7   district shall biennially by May 1 submit to the commissioners 
148.8   of children, families, and learning and health the program plan 
148.9   required under this subdivision.  As determined by the 
148.10  commissioners, one-half of the districts shall first submit the 
148.11  plan by May 1 of the 2000-2001 15 of the 2001-2002 school year 
148.12  and one-half of the districts shall first submit the plan by May 
148.13  1 of the 2001-2002 15 of the 2002-2003 school year.  The program 
148.14  plan must include: 
148.15     (1) a description of community needs assessment of children 
148.16  birth to age five; 
148.17     (2) a description of the services to be provided, including 
148.18  services for children birth to age 3-1/2; 
148.19     (2) (3) a plan to ensure children at greatest risk receive 
148.20  appropriate services; 
148.21     (3) (4) a description of procedures and methods to be used 
148.22  to coordinate public and private resources to maximize use of 
148.23  existing community resources, including school districts, child 
148.24  care, Head Start, health care facilities services, government 
148.25  agencies, neighborhood organizations, and other resources 
148.26  knowledgeable in early childhood development; 
148.27     (4) (5) comments about the district's proposed program by 
148.28  the advisory council required by section 124D.15, subdivision 7; 
148.29  and 
148.30     (5) (6) agreements with all participating service providers.
148.31     Each commissioner may review and comment on the program, 
148.32  and make recommendations to the commissioner of children, 
148.33  families, and learning, within 30 90 days of receiving the plan. 
148.34     Subd. 1a.  [EVALUATION.] The commissioner, in consultation 
148.35  with early childhood teachers, elementary school classroom 
148.36  teachers, child care providers, Head Start educators, parent 
149.1   educators, and teacher educators shall develop an evaluation 
149.2   framework for qualifying school sites to use in documenting 
149.3   results.  The evaluation must use empirical and qualitative 
149.4   methods to gather information on the following:  
149.5      (1) progress toward ensuring that every child entering 
149.6   kindergarten has the knowledge and skills necessary to succeed 
149.7   in school; 
149.8      (2) an assessment of enrolling students by their teacher; 
149.9   and 
149.10     (3) measures of parental satisfaction and parental 
149.11  involvement. 
149.12  The commissioner shall assist a school site with its evaluation 
149.13  at the request of the site.  
149.14     Up to five percent of school readiness program aid may be 
149.15  used for evaluation. 
149.16     Subd. 2.  [AMOUNT OF AID.] (a) A district is eligible to 
149.17  receive school readiness aid if the program plan as required by 
149.18  subdivision 1 has been approved by the commissioner. 
149.19     (b) For fiscal year 1998 2002 and thereafter, a district 
149.20  must receive school readiness aid equal to: 
149.21     (1) the number of eligible four-year old children in the 
149.22  district on October 1 for the previous school year times the 
149.23  ratio of 50 percent of the total school readiness aid for that 
149.24  year to the total number of eligible four-year old children 
149.25  reported to the commissioner for that the previous school year; 
149.26  plus 
149.27     (2) the number of pupils enrolled in the school district 
149.28  from families eligible for the free or reduced school lunch 
149.29  program for the second previous school year times the ratio of 
149.30  50 percent of the total school readiness aid for that year to 
149.31  the total number of pupils in the state from families eligible 
149.32  for the free or reduced school lunch program for the second 
149.33  previous school year. 
149.34     Subd. 2a.  [AID GUARANTEE.] Notwithstanding subdivision 2, 
149.35  for fiscal year 2002, any school readiness program qualifying 
149.36  for aid under this section that receives less aid than in fiscal 
150.1   year 2001 must receive additional aid equal to the difference 
150.2   between the aid paid under section 124D.16, subdivision 2, 
150.3   paragraph (b), clause (2), for fiscal year 2001 and the amount 
150.4   of aid it is eligible for in fiscal year 2002 under section 
150.5   124D.16, subdivision 2, paragraph (b), clause (2).  The aid 
150.6   guarantee applies only to the aid for the free or reduced school 
150.7   lunch program in section 124D.16, subdivision 2, paragraph (b), 
150.8   clause (2).  
150.9      Subd. 3.  [USE OF AID.] School readiness aid shall be used 
150.10  only to provide a school readiness program and may be used to 
150.11  provide transportation.  Aid used for instruction must be 
150.12  targeted to children identified in section 124D.15, subdivision 
150.13  8a.  Not more than five percent of the aid may be used for the 
150.14  cost of administering the program.  Aid must be used to 
150.15  supplement and not supplant local, state, and federal funding.  
150.16  Aid may not be used for instruction and services required under 
150.17  sections 125A.03 to 125A.24 and 125A.65. Aid may not be used to 
150.18  purchase land or construct buildings, but may be used to lease 
150.19  or renovate existing buildings. 
150.20     Subd. 4.  [SEPARATE ACCOUNTS.] The district must deposit 
150.21  school readiness aid in a separate account within the community 
150.22  education fund.  
150.23     Subd. 5.  [RESERVE ACCOUNTS.] (a) School readiness revenue, 
150.24  which includes aids, fees, grants, and all other revenues 
150.25  received by the district school readiness programs, must be 
150.26  maintained in a reserve account within the community service 
150.27  fund. 
150.28     (b) The reserve account may not exceed 25 percent of the 
150.29  annual school readiness revenue.  If a school district 
150.30  anticipates that the amount in the reserve account may exceed 25 
150.31  percent of the annual school readiness program revenue, prior 
150.32  approval to exceed this amount must be obtained in writing from 
150.33  the commissioner of children, families, and learning.  
150.34     (c) If a deficit in the reserve account exists at the end 
150.35  of a fiscal year, and the deficit is not eliminated by revenues 
150.36  from operations in the next year, then the deficit must be 
151.1   eliminated by a permanent fund transfer from the district's 
151.2   general fund at the end of the second year. 
151.3      (d) Notwithstanding paragraph (c), a district may incur a 
151.4   deficit in the fund for up to three years without making the 
151.5   permanent transfer if the district submits to the commissioner 
151.6   by January 1 of the second fiscal year a plan for eliminating 
151.7   the deficit at the end of the third fiscal year. 
151.8      Subd. 6.  [ADJUSTMENT FOR UNUSED FUNDS.] A district that 
151.9   has a school readiness reserve fund balance that exceeds 25 
151.10  percent of the annual amount of revenue for the program shall 
151.11  have the future allocations reduced accordingly.  This reduction 
151.12  shall be made in the fiscal year that begins no more than 30 
151.13  months after the excess occurs in the reserve account.  The 
151.14  commissioner shall reallocate aid reduced under this provision 
151.15  to other eligible school districts. 
151.16     Sec. 44.  [INTERAGENCY AUTISM COORDINATING COMMITTEE.] 
151.17     (a) The commissioner of children, families, and learning 
151.18  shall establish an interagency committee to coordinate state 
151.19  efforts related to servicing children with autism.  The 
151.20  committee shall include representatives of the departments of 
151.21  children, families, and learning and human services, parents or 
151.22  guardians of children with autism, pediatricians, local public 
151.23  health officials, and representatives of private or nonprofit 
151.24  organizations that advocate on behalf of children with autism. 
151.25     (b) The interagency autism coordinating committee shall 
151.26  study and recommend by December 1, 2001, to the committees in 
151.27  the legislature charged with early childhood through grade 12 
151.28  education policy and finance matters a plan for improving 
151.29  efforts at early assessment and identification of autism in 
151.30  young children.  The plan must consider: 
151.31     (1) all existing assessment program options; 
151.32     (2) public and private funding sources, including 
151.33  programmatic funding for early and periodic screening, 
151.34  diagnosis, and treatment; and 
151.35     (3) current research-based best practice models. 
151.36  The plan must be designed to make optimal use of existing public 
152.1   resources. 
152.2      Sec. 45.  [ESTABLISHMENT OF EARLY CHILDHOOD CARE AND 
152.3   EDUCATION SERVICES DEMONSTRATION PROJECTS.] 
152.4      Subdivision 1.  [PURPOSE.] The purpose of the demonstration 
152.5   projects is to coordinate a community system that builds upon 
152.6   existing early childhood care and education services to ensure a 
152.7   full continuum of services are available to promote positive 
152.8   outcomes for young children and to collect the data necessary to 
152.9   develop a statewide funding formula for distributing funds to 
152.10  individual service sites.  The data must include, but is not 
152.11  limited to: 
152.12     (1) the care and educational needs of children and how 
152.13  those needs are assessed and measured; 
152.14     (2) the type of services to provide that will improve 
152.15  outcomes; and 
152.16     (3) the most effective way to distribute public funds for 
152.17  early childhood services. 
152.18     Subdivisions 2 to 10 describe the structure and 
152.19  requirements of one demonstration project model and subdivisions 
152.20  11 and 12 describe the structure and requirements of a second 
152.21  demonstration project model. 
152.22     Subd. 2.  [DEFINITIONS.] (a) "Approval board" means the 
152.23  group composed of the county human services director, the 
152.24  superintendent of schools, the public health director, the child 
152.25  care resources and referral agency, Head Start grantees, or 
152.26  their representatives. 
152.27     (b) "Commissioner" means the commissioner of children, 
152.28  families, and learning. 
152.29     (c) "Community" means a county, a school district, a group 
152.30  of school districts, a political subdivision, a service 
152.31  cooperative, or a combination of any of these entities. 
152.32     (d) "Early childhood care and education" means the services 
152.33  available for children from birth to kindergarten coordinated by 
152.34  local early childhood boards to fulfill the responsibilities 
152.35  under this section. 
152.36     (e) "Local early childhood board" means a group organized 
153.1   under 501(c)(3) of the Internal Revenue Code and composed of one 
153.2   member of the following groups, if they exist in the community: 
153.3      (1) other early childhood education-related boards; 
153.4      (2) three parents of children participating in programs at 
153.5   qualified sites that represent the economic and ethnic diversity 
153.6   of the community; 
153.7      (3) licensed child care providers; 
153.8      (4) early childhood education providers; 
153.9      (5) health services providers; 
153.10     (6) public or private nonprofit agencies serving youth and 
153.11  families; 
153.12     (7) the school board; 
153.13     (8) the local teachers' union; 
153.14     (9) local child care resource and referral programs; 
153.15     (10) Head Start; and 
153.16     (11) a representative from the state interagency committee. 
153.17     (f) "Qualified site" means a physical location providing 
153.18  early childhood care and education services that has been 
153.19  approved by the local early childhood board according to 
153.20  criteria under subdivision 6. 
153.21     Subd. 3.  [DUTIES OF COMMISSIONER.] The commissioner shall 
153.22  supervise the development of an integrated early childhood care 
153.23  and education system by: 
153.24     (1) selecting early childhood care and education 
153.25  demonstration projects that model effective practices under this 
153.26  section through a competitive process; 
153.27     (2) defining outcomes and indicators for a local early 
153.28  childhood care and education system based on current research; 
153.29     (3) providing technical assistance to local approval boards 
153.30  and approved demonstration projects; 
153.31     (4) developing guidelines for community-based planning; 
153.32     (5) distributing public funds to demonstration projects; 
153.33     (6) establishing minimum administrative and service 
153.34  guidelines and standards for local early childhood boards; 
153.35     (7) collecting data necessary to determine factors 
153.36  appropriate for formula-based funding of early childhood care 
154.1   and education services on a statewide basis; 
154.2      (8) establishing data systems to enable the collection and 
154.3   analysis of data from a variety of public and private sources 
154.4   and payments to individual sites on a statewide basis; and 
154.5      (9) designing and implementing a method of monitoring and 
154.6   evaluating early childhood care and education criteria and local 
154.7   plans. 
154.8      Subd. 4.  [GRANT APPLICATION OF APPROVAL BOARDS.] (a) A 
154.9   community approval board may apply for a grant to establish a 
154.10  demonstration project.  The applicant must include: 
154.11     (1) designation by the approval board of a local early 
154.12  childhood board that meets the requirements of subdivision 2, 
154.13  paragraph (d); 
154.14     (2) a description of how it will oversee the development of 
154.15  a local early childhood care and education plan; and 
154.16     (3) the process the local early childhood board will use to 
154.17  qualify a variety of sites that represent diverse delivery 
154.18  systems within the grantee's available resources. 
154.19     (b) The commissioner must give preference to applicants 
154.20  with: 
154.21     (1) designated early childhood boards that represent 
154.22  different and identifiable governance structures; 
154.23     (2) approval boards with the broadest representation of 
154.24  community partners identified in subdivision 2, paragraph (a); 
154.25     (3) the capacity to qualify a variety of sites that 
154.26  represent diverse delivery systems within the grantee's 
154.27  available resources; 
154.28     (4) a plan to involve public and private community 
154.29  resources to strategically invest in early childhood care and 
154.30  education services at the community level; and 
154.31     (5) the capacity of the local early childhood board to 
154.32  measure outcomes. 
154.33     Subd. 5.  [DUTIES OF LOCAL EARLY CHILDHOOD BOARD.] (a) 
154.34  Local early childhood boards must: 
154.35     (1) assess the community's current capacity to address 
154.36  early childhood care and education needs of children from birth 
155.1   to kindergarten entrance; 
155.2      (2) create and implement a program to qualify early 
155.3   childhood care and education sites in its community according to 
155.4   the criteria under subdivision 6; 
155.5      (3) demonstrate the capacity to provide data necessary to 
155.6   meet the requirements under subdivision 1; 
155.7      (4) create an ongoing evaluation of each site in relation 
155.8   to outcomes for children and families; 
155.9      (5) provide an appropriate public forum in the community to 
155.10  evaluate whether a qualified early childhood care and education 
155.11  site continues to meet the criteria under subdivision 6; 
155.12     (6) revoke the qualification of a site that fails to meet 
155.13  the criteria under subdivision 6; and 
155.14     (7) collect data and submit reports related to risk 
155.15  factors, including, but not limited to: 
155.16     (i) families and children living in poverty; 
155.17     (ii) families whose income is 50 percent or less of the 
155.18  state median income; 
155.19     (iii) families receiving assistance from the Minnesota 
155.20  family investment program; 
155.21     (iv) children who first learned a language other than 
155.22  English, come from a home where the language usually spoken is 
155.23  other than English, or usually speak a language other than 
155.24  English; 
155.25     (v) families identifying themselves in an ethnic or racial 
155.26  community other than that which represents the majority of the 
155.27  state; 
155.28     (vi) mothers who lack literacy competency as demonstrated 
155.29  by the absence of a GED or high school diploma; and 
155.30     (vii) children exhibiting a health or developmental 
155.31  condition identified as requiring referral and follow-up 
155.32  services. 
155.33     (b) Local early childhood boards must report the number of 
155.34  children or families exhibiting each risk factor who: 
155.35     (1) are served through the demonstration project; 
155.36     (2) reside in the area served in the qualifying site; and 
156.1      (3) reside in the community. 
156.2      (c) Local early childhood boards must report on types of 
156.3   overview provided in categories designated by the commissioner. 
156.4      Subd. 6.  [CRITERIA FOR QUALIFIED SITES.] A qualified site 
156.5   must meet the following criteria: 
156.6      (1) the site must be a licensed, nonprofit organization, 
156.7   except for family child care sites, child care centers, or 
156.8   school districts; and 
156.9      (2) the learning environment must be developmentally and 
156.10  linguistically appropriate, taking into account children's 
156.11  individual rates of development and interests, temperaments, 
156.12  cultural backgrounds, and learning styles. 
156.13     Subd. 7.  [LOCAL PLAN.] The local early childhood board of 
156.14  each demonstration project shall submit a local early childhood 
156.15  care and education plan to the commissioner and shall update the 
156.16  plan annually.  The plan must include: 
156.17     (1) a description of the services to be provided in the 
156.18  community and their relationship to the needs of the population; 
156.19     (2) a description of the strategies to ensure that children 
156.20  at greatest risk receive appropriate services; 
156.21     (3) a description of procedures and methods used to 
156.22  coordinate public and private resources and maximize use of 
156.23  existing community resources including, but not limited to, 
156.24  school districts, health care facilities, child care providers, 
156.25  government agencies, and neighborhood organizations; 
156.26     (4) a data-set including, but not limited to, the number 
156.27  and type of qualified sites in the community, the demographic 
156.28  information of children served at all qualified sites, the 
156.29  income levels of the families of all children served, the 
156.30  community of origin of all children served, and the salaries of 
156.31  all early child care and education providers; and 
156.32     (5) agreements with all participating service providers. 
156.33     Subd. 8.  [REPORTING BY QUALIFIED SITES.] Beginning in 
156.34  calendar year 2003, each qualified site that receives funding 
156.35  shall submit to the commissioner data required by the 
156.36  commissioner. 
157.1      Subd. 9.  [REVIEW OF ADMINISTRATIVE REQUIREMENTS.] The 
157.2   commissioner shall, as requested by local early childhood 
157.3   boards, review laws under the jurisdiction of the commissioner.  
157.4   The commissioner shall also review rule requirements and, with 
157.5   the approval of the board of government innovation and 
157.6   cooperation under Minnesota Statutes, section 465.796, may waive 
157.7   burdensome rule requirements if statutory and rule requirements 
157.8   can be met in another way and the waiver simplifies or 
157.9   consolidates program requirements or funding, or emphasizes 
157.10  outcomes rather than procedures.  In determining the 
157.11  reasonableness of the requirements, the commissioner shall 
157.12  consider the needs the service was developed to address and the 
157.13  adequacy of the federal, state, and local funding available to 
157.14  provide the service.  The waiver authority under this 
157.15  subdivision does not permit the commissioner to waive rule 
157.16  requirements involving:  client protections; due process; 
157.17  inclusion of clients, parents, cultures, and ethnicity in 
157.18  decision making; or requirements of federal laws or rules. 
157.19     Subd. 10.  [DISTRIBUTION OF GRANT FUNDS.] The commissioner 
157.20  must distribute $150,000 each year of the biennium to each 
157.21  demonstration project for planning purposes.  Direct service 
157.22  funds must be distributed to each project as follows: 
157.23     (1) a base amount of $100,000 to each project; 
157.24     (2) 60 percent of the remaining funds must be allocated 
157.25  based on actual population of children birth to age five; and 
157.26     (3) 40 percent of the remaining funds must be allocated 
157.27  based on the percentage of children living in poverty. 
157.28     The grant agreement with each project must identify 
157.29  available planning and direct service funds and a local fiscal 
157.30  agent.  Planning funds must be available at the start of the 
157.31  grant agreement.  Direct service funds must be available six 
157.32  months after execution of the grant agreement. 
157.33     The commissioner may make payments to each demonstration 
157.34  project in quarterly installments.  The commissioner may certify 
157.35  an advance up to 25 percent of the allocation.  Subsequent 
157.36  payments shall be made on a reimbursement basis for reported 
158.1   expenditures and may be adjusted for anticipated spending 
158.2   patterns.  
158.3      Subd. 11.  [GRANT APPLICATION.] (a) A community-based 
158.4   organization, a local unit of government, or a private 
158.5   foundation may apply to the commissioner for a grant to 
158.6   establish a pilot project to provide early childhood care and 
158.7   school readiness opportunities for every child, birth to age 
158.8   five, in service areas where over 70 percent of families are 
158.9   eligible for the free or reduced school lunch program.  The 
158.10  contiguous geographic area of each service area must include at 
158.11  least 200 children, birth to age five.  The commissioner shall 
158.12  give consideration to geographic diversity when awarding grants 
158.13  for pilot projects.  The applicant must describe how it will 
158.14  coordinate and provide the following services including the 
158.15  intended outcomes and proposed methods of measuring outcomes: 
158.16     (1) existing licensed child care providers; 
158.17     (2) comprehensive health and dental care for children birth 
158.18  to age five; 
158.19     (3) developmental assessment of children younger than age 
158.20  three; 
158.21     (4) private nongovernmental support; 
158.22     (5) a sliding fee schedule based on a family's income, 
158.23  including waivers for participants unable to pay; 
158.24     (6) support and opportunities for providers to improve the 
158.25  quality of early child care services; 
158.26     (7) job opportunities for parents; 
158.27     (8) decent, safe housing for families; 
158.28     (9) home visiting; and 
158.29     (10) birth kits for all infants born during the project 
158.30  time frame. 
158.31     (b) The community-based organization must take maximum 
158.32  advantage of all other state and federal funds available for 
158.33  child care.  The community-based organization shall establish 
158.34  procedures to ensure the quality of the services paid for with 
158.35  grant funds and to monitor the delivery of services. 
158.36     Subd. 12.  [EVALUATION.] The commissioner shall review the 
159.1   outcomes of the pilot projects after two years of implementation 
159.2   and provide testimony to the senate and house committees with 
159.3   jurisdiction over early childhood care and education. 
159.4      Sec. 46.  [STUDY ON IMPLEMENTING AN INTEGRATED EARLY 
159.5   CHILDHOOD SERVICES SYSTEM.] 
159.6      Subdivision 1.  [PURPOSE.] The commissioner of children, 
159.7   families, and learning shall develop a plan to implement an 
159.8   early childhood care and education services system for children 
159.9   birth to age five that: 
159.10     (1) establishes community control and decision making; 
159.11     (2) eliminates separate funding streams for early childhood 
159.12  programs; and 
159.13     (3) bases revenue on the number and type of service hours 
159.14  delivered and the cost per child of delivering those services.  
159.15     Subd. 2.  [TASK FORCE.] (a) The commissioner shall convene 
159.16  a task force to study issues related to this plan with the 
159.17  following membership: 
159.18     (1) three members of the Minnesota house of 
159.19  representatives, appointed by the speaker of the house, with two 
159.20  from the majority party and one from the largest minority party; 
159.21     (2) three members of the Minnesota senate, appointed by the 
159.22  subcommittee on committees of the committee on rules and 
159.23  administration, with two from the majority party and one from 
159.24  the largest minority party; 
159.25     (3) five members appointed by the commissioner; and 
159.26     (4) five representatives of early childhood interests. 
159.27     (b) Each appointing authority shall use all possible 
159.28  efforts to create a geographical balance among the membership in 
159.29  order to represent all regional interests of the state.  The 
159.30  task force shall study and make detailed recommendations 
159.31  regarding: 
159.32     (1) a local governance structure to oversee delivery of 
159.33  services; 
159.34     (2) establishing research-based care and educational 
159.35  criteria for sites; 
159.36     (3) methods of distributing funds to service providers and 
160.1   parents; 
160.2      (4) integrating early childhood health and development 
160.3   screening; 
160.4      (5) methods and types of data collection; 
160.5      (6) identifying key components of an effective birth to age 
160.6   five program; 
160.7      (7) flexible service delivery options, including a 
160.8   mechanism to allow for consumer feedback; 
160.9      (8) methods of providing training, technical assistance, 
160.10  and other support services for local governance structures to 
160.11  assist in needs assessment, planning, implementing, and 
160.12  monitoring early childhood services in the communities; 
160.13     (9) designing a format for ongoing evaluation of early 
160.14  childhood sites in relation to outcomes for children and 
160.15  families; and 
160.16     (10) establishing guidelines for community-based planning. 
160.17     (c) The task force shall study the issues identified in 
160.18  paragraph (b), and any other issue requested by the commissioner.
160.19     Subd. 3.  [REPORT.] The task force shall issue a report on 
160.20  the issues and recommendations under subdivision 2 by June 30, 
160.21  2004, to the senate and house committees with jurisdiction over 
160.22  early childhood education. 
160.23     Subd. 4.  [EXPIRATION.] This section expires when the task 
160.24  force submits its final report to the legislature. 
160.25     Sec. 47.  [ADDITIONAL EARLY CHILDHOOD FAMILY EDUCATION AID; 
160.26  FISCAL YEAR 2002.] 
160.27     A district that complies with Minnesota Statutes, section 
160.28  124D.13, shall receive additional early childhood family 
160.29  education aid for fiscal year 2002 equal to $5.60 times the 
160.30  greater of: 
160.31     (1) 150; or 
160.32     (2) the number of people under five years of age residing 
160.33  in the school district on October 1 of the previous school 
160.34  year.  The additional early childhood family education aid may 
160.35  be used only for early childhood family education programs. 
160.36     Sec. 48.  [APPROPRIATIONS.] 
161.1      Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
161.2   LEARNING.] The sums indicated in this section are appropriated 
161.3   from the general fund to the department of children, families, 
161.4   and learning for the fiscal years designated.  
161.5      Subd. 2.  [SCHOOL READINESS PROGRAM REVENUE.] For revenue 
161.6   for school readiness programs according to Minnesota Statutes, 
161.7   sections 124D.15 and 124D.16: 
161.8        $12,195,000     .....     2002
161.9        $12,395,000     .....     2003
161.10     The 2002 appropriation includes $1,039,000 for 2001 and 
161.11  $11,156,000 for 2002. 
161.12     The 2003 appropriation includes $1,240,000 for 2002 and 
161.13  $11,155,000 for 2003.  
161.14     Subd. 3.  [EARLY CHILDHOOD FAMILY EDUCATION AID.] For early 
161.15  childhood family education aid according to Minnesota Statutes, 
161.16  section 124D.135: 
161.17       $22,558,000     .....     2002 
161.18       $22,663,000     .....     2003 
161.19     The 2002 appropriation includes $2,036,000 for 2001 and 
161.20  $20,522,000 for 2002.  
161.21     The 2003 appropriation includes $2,280,000 for 2002 and 
161.22  $20,383,000 for 2003.  
161.23     Subd. 4.  [HEALTH AND DEVELOPMENTAL SCREENING AID.] For 
161.24  health and developmental screening aid according to Minnesota 
161.25  Statutes, sections 121A.17 and 121A.19: 
161.26       $2,661,000     .....     2002 
161.27       $5,368,000     .....     2003 
161.28     The 2002 appropriation includes $266,000 for 2001 and 
161.29  $2,395,000 for 2002.  
161.30     The 2003 appropriation includes $266,000 for 2002 and 
161.31  $5,102,000 for 2003.  
161.32     Subd. 5.  [EARLY CHILDHOOD CARE AND EDUCATION SERVICES 
161.33  DEMONSTRATION PROJECTS.] For demonstration projects under 
161.34  section 45: 
161.35         $575,000   .....     2002
161.36       $1,225,000   .....     2003
162.1      The commissioner shall fund both demonstration project 
162.2   models under section 45.  Each demonstration project must 
162.3   receive $150,000 each year for planning purposes. 
162.4      Any balance in the first year does not cancel but is 
162.5   available in the second year. 
162.6      Subd. 6.  [HEAD START PROGRAM.] For Head Start programs 
162.7   according to Minnesota Statutes, section 119A.52: 
162.8        $20,743,000     .....     2002
162.9        $21,117,000     .....     2003
162.10     $2,000,000 each year may be used for full-year programming 
162.11  for children birth to age three.  Any balance in the first year 
162.12  does not cancel but is available in the second year. 
162.13     Subd. 7.  [SCHOOL-AGE CHILD CARE.] For extended day aid 
162.14  according to Minnesota Statutes, section 124D.22: 
162.15       $221,000     .....     2002 
162.16       $133,000     .....     2003
162.17     The 2002 appropriation includes $30,000 for 2001 and 
162.18  $191,000 for 2002. 
162.19     The 2003 appropriation includes $21,000 for 2002 and 
162.20  $112,000 for 2003. 
162.21     Subd. 8.  [CONSOLIDATED CHILD CARE ASSISTANCE.] For child 
162.22  care assistance according to Minnesota Statutes, sections 
162.23  119B.011 to 119B.16: 
162.24       $144,296,000     .....     2002 
162.25       $141,337,000     .....     2003 
162.26     These appropriations are available to be spent in either 
162.27  year. 
162.28     Subd. 9.  [CHILD CARE INTEGRITY.] For the administrative 
162.29  costs of program integrity and fraud prevention for child care 
162.30  assistance under chapter 119B: 
162.31       $25,000     .....     2002 
162.32       $25,000     .....     2003 
162.33     Any balance in the first year does not cancel but is 
162.34  available in the second year. 
162.35     Subd. 10.  [CHILD CARE SERVICES GRANTS.] For child care 
162.36  services grants according to Minnesota Statutes, section 119B.21:
163.1        $2,015,000     .....     2002
163.2        $2,015,000     .....     2003
163.3      Any balance in the first year does not cancel but is 
163.4   available in the second year. 
163.5      Subd. 11.  [CHILD CARE IMPROVEMENT GRANTS.] For child care 
163.6   improvement grants according to Minnesota Statutes, section 
163.7   119B.25: 
163.8        $500,000     .....     2002
163.9      Subd. 12.  [CHILD CARE MARKET RATE SURVEYS.] For child care 
163.10  market rate surveys according to Minnesota Statutes, section 
163.11  119B.13, subdivision 1: 
163.12       $3,000     .....     2002
163.13     Subd. 13.  [TEACH GRANTS.] For TEACH grants according to 
163.14  Minnesota Statutes, section 119B.221: 
163.15       $1,000,000     .....     2002
163.16       $1,000,000     .....     2003
163.17     This amount must be matched with private funds on a 
163.18  one-to-one basis. 
163.19     Subd. 14.  [AT-HOME INFANT CHILD CARE PROGRAM.] For the 
163.20  at-home infant child care program under Minnesota Statutes, 
163.21  section 119B.061: 
163.22       $1,000,000     .....     2002
163.23       $1,000,000     .....     2003
163.24     Any amount remaining in fiscal years 2002 and 2003 that is 
163.25  not needed for the at-home infant child care program must be 
163.26  used for child care assistance under Minnesota Statutes, section 
163.27  119B.03, subdivision 3a.  If the commissioner determines that 
163.28  the department will not be able to meet the child care and 
163.29  development fund match and maintenance of effort requirements 
163.30  without the funds appropriated in this subdivision, the 
163.31  commissioner may move the necessary amount of funds from this 
163.32  appropriation into the appropriation for the consolidated child 
163.33  care program. 
163.34     Sec. 49.  [FEDERAL TANF TRANSFERS.] 
163.35     Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
163.36  LEARNING.] The sums indicated in this section are transferred 
164.1   from the federal TANF fund to the child care and development 
164.2   fund and appropriated to the department of children, families, 
164.3   and learning for the fiscal years designated.  The commissioner 
164.4   shall ensure that all transferred funds are expended in 
164.5   accordance with the child care and development fund regulations 
164.6   and that the maximum allowable transferred funds are used for 
164.7   the programs in this section. 
164.8      Subd. 2.  [CONSOLIDATED CHILD CARE ASSISTANCE.] For child 
164.9   care assistance according to Minnesota Statutes, sections 
164.10  119B.011 to 119B.16:  
164.11       $21,229,000    .....     2002 
164.12       $16,737,000    .....     2003 
164.13     Sec. 50.  [REVISOR INSTRUCTION.] 
164.14     In the next and subsequent editions of Minnesota Statutes 
164.15  and Minnesota Rules, the revisor shall renumber Minnesota 
164.16  Statutes, section 119B.05, subdivisions 4 and 5, as Minnesota 
164.17  Statutes, section 119B.03, subdivisions 11 and 12, and make 
164.18  necessary cross-reference changes consistent with the 
164.19  renumbering. 
164.20     Sec. 51.  [REPEALER.] 
164.21     Minnesota Statutes 2000, sections 119B.011, subdivision 20; 
164.22  119B.03, subdivisions 1, 2, 4, 5, 6, 6a, and 8; 119B.05, 
164.23  subdivision 1; 119B.07; 119B.09, subdivision 3; and 119B.11, 
164.24  subdivision 4, are repealed. 
164.25                             ARTICLE 7 
164.26                             PREVENTION 
164.27     Section 1.  Minnesota Statutes 2000, section 119A.12, is 
164.28  amended by adding a subdivision to read: 
164.29     Subd. 4.  [AUTHORITY TO DISBURSE FUNDS.] The commissioner 
164.30  may disburse trust fund money to any public or private nonprofit 
164.31  agency to fund a child abuse prevention program.  State funds 
164.32  appropriated for child maltreatment prevention grants may be 
164.33  transferred to the children's trust fund special revenue account 
164.34  and are available to carry out this section. 
164.35     Sec. 2.  Minnesota Statutes 2000, section 119A.12, is 
164.36  amended by adding a subdivision to read: 
165.1      Subd. 5.  [PLAN FOR DISBURSEMENT OF FUNDS.] The 
165.2   commissioner shall develop a plan to disburse money from the 
165.3   trust fund.  The plan must ensure that all geographic areas of 
165.4   the state have an equal opportunity to establish prevention 
165.5   programs and receive trust fund money. 
165.6      Sec. 3.  Minnesota Statutes 2000, section 119A.12, is 
165.7   amended by adding a subdivision to read: 
165.8      Subd. 6.  [OPERATIONAL COSTS.] $120,000 each year is 
165.9   appropriated from the children's trust fund to the special 
165.10  revenue fund for administration and indirect costs of the 
165.11  children's trust fund program. 
165.12     Sec. 4.  Minnesota Statutes 2000, section 119A.13, 
165.13  subdivision 4, is amended to read: 
165.14     Subd. 4.  [RESPONSIBILITIES OF COMMISSIONER.] (a) The 
165.15  commissioner shall: 
165.16     (1) provide for the coordination and exchange of 
165.17  information on the establishment and maintenance of prevention 
165.18  programs; 
165.19     (2) develop and publish criteria for receiving trust fund 
165.20  money by prevention programs; 
165.21     (3) review, approve, and monitor the spending of trust fund 
165.22  money by prevention programs; 
165.23     (4) provide statewide educational and public informational 
165.24  seminars to develop public awareness on preventing child abuse; 
165.25  to encourage professional persons and groups to recognize 
165.26  instances of child abuse and work to prevent them; to make 
165.27  information on child abuse prevention available to the public 
165.28  and to organizations and agencies; and to encourage the 
165.29  development of prevention programs, including programs that 
165.30  provide support for adolescent parents, fathering education 
165.31  programs, and other prevention activities designed to prevent 
165.32  teen pregnancy; 
165.33     (5) establish a procedure for an annual, internal 
165.34  evaluation of the functions, responsibilities, and performance 
165.35  of the commissioner in carrying out Laws 1986, chapter 423; 
165.36     (6) provide technical assistance to local councils and 
166.1   agencies working in the area of child abuse prevention; and 
166.2      (7) accept and review grant applications beginning June 1, 
166.3   1987. 
166.4      (b) The commissioner shall recommend to the governor 
166.5   changes in state programs, statutes, policies, budgets, and 
166.6   standards that will reduce the problems of child abuse, improve 
166.7   coordination among state agencies that provide prevention 
166.8   services, and improve the condition of children, parents, or 
166.9   guardians in need of prevention program services. 
166.10     Sec. 5.  Minnesota Statutes 2000, section 119A.21, is 
166.11  amended to read: 
166.12     119A.21 [GRANTS TO SERVICE PROVIDER PROGRAMS.] 
166.13     Subdivision 1.  [GRANTS AWARDED.] The commissioner shall 
166.14  award grants to programs which that provide abused children 
166.15  services to abused or neglected children.  Grants shall be 
166.16  awarded in a manner that ensures that they are equitably 
166.17  distributed to programs serving metropolitan and nonmetropolitan 
166.18  populations.  
166.19     Subd. 2.  [APPLICATIONS.] Any public or private nonprofit 
166.20  agency may apply to the commissioner for a grant to provide 
166.21  abused children services.  The application shall be submitted in 
166.22  on a form approved prescribed by the commissioner after 
166.23  consultation with the abused children advisory council and shall 
166.24  include:.  
166.25     (1) a proposal for the provision of abused children 
166.26  services to, or on behalf of, abused children, children at risk, 
166.27  and their families; 
166.28     (2) a proposed budget; 
166.29     (3) evidence of ability to represent the interests of 
166.30  abused children and their families to local law enforcement 
166.31  agencies and courts, social services, and health agencies; 
166.32     (4) evidence of ability to do outreach to unserved and 
166.33  underserved populations and to provide culturally and 
166.34  linguistically appropriate services; and 
166.35     (5) any other information the commissioner may require by 
166.36  policy or by rule adopted under chapter 14, after considering 
167.1   the recommendations of the abused children advisory council.  
167.2      Programs which have been approved for grants in prior years 
167.3   may submit materials which indicate changes in items listed in 
167.4   clauses (1) to (5), in order to qualify for renewal funding.  
167.5   Nothing in this subdivision may be construed to require programs 
167.6   to submit complete applications for each year of funding.  
167.7      Subd. 3.  [DUTIES.] Every public or private nonprofit 
167.8   agency which receives a grant under this section to provide 
167.9   abused children services shall comply with all requirements of 
167.10  the commissioner related to the administration of the grants.  
167.11     Subd. 4.  [CLASSIFICATION OF DATA COLLECTED BY GRANTEES.] 
167.12  Personal history information and other information collected, 
167.13  used, or maintained by a grantee from which the identity of any 
167.14  abused child or family members may be determined is private data 
167.15  on individuals as defined in section 13.02, subdivision 12, and 
167.16  the grantee shall maintain the data in accordance with 
167.17  provisions of chapter 13. 
167.18     Sec. 6.  Minnesota Statutes 2000, section 119A.22, is 
167.19  amended to read: 
167.20     119A.22 [DUTIES OF THE COMMISSIONER.] 
167.21     The commissioner shall:  
167.22     (1) review applications and award grants to programs 
167.23  pursuant to section 119A.21 after considering the recommendation 
167.24  of the abused children advisory council; 
167.25     (2) appoint members of the abused children advisory council 
167.26  created under section 119A.23 and provide consultative staff and 
167.27  other administrative services to the council; 
167.28     (3) after considering the recommendation of the abused 
167.29  children advisory council, appoint a program director to perform 
167.30  the duties set forth in this clause.  In appointing the program 
167.31  director the commissioner shall give due consideration to the 
167.32  list of applicants submitted to the commissioner pursuant to 
167.33  this section.  The program director shall administer the funds 
167.34  appropriated for sections 119A.20 to 119A.23, consult with and 
167.35  provide staff to the advisory council and perform other duties 
167.36  related to abused children's programs as the commissioner may 
168.1   assign; 
168.2      (4) design a uniform method of collecting data on abused 
168.3   children's programs to be used to monitor and assure compliance 
168.4   of the programs funded under section 119A.21; 
168.5      (5) (3) provide technical aid assistance to applicants in 
168.6   the development of grant requests and to programs grantees in 
168.7   meeting the data collection requirements established by the 
168.8   commissioner; and 
168.9      (6) (4) adopt, under chapter 14, all rules necessary to 
168.10  implement the provisions of sections 119A.20 to 119A.23.  
168.11     Sec. 7.  [119A.35] [ADVISORY COUNCIL.] 
168.12     Subdivision 1.  [GENERALLY.] The advisory council is 
168.13  established under section 15.059 to advise the commissioner on 
168.14  the implementation and continued operations of sections 119A.10 
168.15  to 119A.16 and 119A.20 to 119A.22.  The council shall expire 
168.16  June 30, 2005. 
168.17     Subd. 2.  [COUNCIL MEMBERSHIP.] The council shall consist 
168.18  of a total of 22 members.  The governor shall appoint 18 of 
168.19  these members.  The commissioners of human services and health 
168.20  shall each appoint one member.  The senate shall appoint one 
168.21  member from the senate committee with jurisdiction over family 
168.22  and early childhood education and the house of representatives 
168.23  shall appoint one member from the house committee with 
168.24  jurisdiction over family and early childhood education. 
168.25     Council members shall have knowledge in the areas of child 
168.26  abuse and neglect prevention, and knowledge of the risk factors 
168.27  that can lead to child abuse and neglect.  Council members shall 
168.28  be representative of local government, criminal justice, 
168.29  parents, consumers of services, health and human services 
168.30  professionals, faith communities, professional and volunteer 
168.31  providers of child abuse and neglect prevention services, racial 
168.32  and ethnic minority communities, and the demographic and 
168.33  geographic composition of the state.  Ten council members shall 
168.34  reside in the seven-county metropolitan area and eight shall 
168.35  reside in nonmetropolitan areas. 
168.36     Subd. 3.  [RESPONSIBILITIES.] The council shall: 
169.1      (1) advise the commissioner on planning, policy 
169.2   development, data collection, rulemaking, funding, and 
169.3   evaluation of the programs under the sections listed in 
169.4   subdivision 1; 
169.5      (2) coordinate and exchange information on the 
169.6   establishment and ongoing operation of the programs listed in 
169.7   subdivision 1; 
169.8      (3) develop and publish criteria and guidelines for 
169.9   receiving grants relating to child abuse and neglect prevention 
169.10  and safety and support of child victims, including, but not 
169.11  limited to, funds dedicated to the children's trust fund and 
169.12  abused children program; 
169.13     (4) provide guidance in the development of statewide 
169.14  education and public information activities that increase public 
169.15  awareness in the prevention and intervention of child abuse and 
169.16  neglect and encourage the development of prevention and 
169.17  intervention programs, which includes the safety of child 
169.18  victims; 
169.19     (5) guide, analyze, and disseminate results in the 
169.20  development of appropriate evaluation procedures for all 
169.21  programs receiving funds under subdivision 1; and 
169.22     (6) assist the commissioner in identifying service gaps or 
169.23  duplication in services, including geographic dispersion of 
169.24  resources, programs reflecting the cycle of child abuse, and the 
169.25  availability of culturally appropriate intervention and 
169.26  prevention services. 
169.27     Sec. 8.  Minnesota Statutes 2000, section 124D.221, 
169.28  subdivision 1, is amended to read: 
169.29     Subdivision 1.  [ESTABLISHMENT.] A competitive statewide 
169.30  after-school enrichment grant program is established to provide 
169.31  implementation grants to community or nonprofit organizations, 
169.32  to political subdivisions, or to school-based programs.  A 
169.33  community or nonprofit organization must be a charitable 
169.34  organization under section 501(c)(3) of the Internal Revenue 
169.35  Code of 1986 and registered with the attorney general's office.  
169.36  The commissioner shall develop criteria for after-school 
170.1   enrichment programs. 
170.2      Sec. 9.  Minnesota Statutes 2000, section 124D.221, 
170.3   subdivision 2, is amended to read: 
170.4      Subd. 2.  [PRIORITY NEIGHBORHOODS.] (a) The commissioner 
170.5   must give priority to applicants who: 
170.6      (1) demonstrate a match of $1 of nonstate funding for each 
170.7   $1 of the grant amount awarded for the implementation of an 
170.8   after-school enrichment program.  For the purposes of this 
170.9   clause, the nonstate match may include the fair market value of 
170.10  an in-kind contribution of facility space; and 
170.11     (2) establish an accountability system that sets measurable 
170.12  goals and outcomes that support academic achievement, school 
170.13  attendance, a reduction in suspensions, and assesses 
170.14  participants' progress on these measures annually. 
170.15     (b) For grants in Minneapolis and St. Paul, the 
170.16  commissioner must give first priority to neighborhoods in this 
170.17  subdivision paragraph and second priority according to paragraph 
170.18  (a), clause (1).  In Minneapolis, priority neighborhoods are 
170.19  Near North, Hawthorne, Sumner-Glenwood, Harrison, Jordan, 
170.20  Powderhorn, Central, Whittier, Cleveland, McKinley, Waite Park, 
170.21  Sheridan, Holland, Lyndale, Folwell, and Phillips.  In St. Paul, 
170.22  priority neighborhoods are Summit-University, Thomas-Dale, North 
170.23  End, Payne-Phalen, Daytons Bluff, and the West Side. 
170.24     Sec. 10.  [APPROPRIATIONS.] 
170.25     Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
170.26  LEARNING.] The sums indicated in this section are appropriated 
170.27  from the general fund, unless otherwise indicated, to the 
170.28  department of children, families, and learning for the fiscal 
170.29  years designated. 
170.30     Subd. 2.  [FAMILY SERVICES COLLABORATIVES.] For family 
170.31  services collaboratives according to Laws 1995, First Special 
170.32  Session chapter 3, article 4, section 29, subdivision 10: 
170.33       $1,477,000     .....     2002
170.34         $863,000     .....     2003
170.35     No new family services collaboratives shall be funded with 
170.36  this appropriation after June 30, 1999. 
171.1      Any balance in the first year does not cancel but is 
171.2   available in the second year. 
171.3      Subd. 3.  [COMMUNITY EDUCATION AID.] For community 
171.4   education aid according to Minnesota Statutes, section 124D.20: 
171.5        $14,209,000    .....     2002 
171.6        $13,111,000    .....     2003 
171.7      The 2002 appropriation includes $1,528,000 for 2001 and 
171.8   $12,681,000 for 2002.  
171.9      The 2003 appropriation includes $1,409,000 for 2002 and 
171.10  $11,702,000 for 2003.  
171.11     Any balance in the first year does not cancel but is 
171.12  available in the second year. 
171.13     Subd. 4.  [ADULTS WITH DISABILITIES PROGRAM AID.] For 
171.14  adults with disabilities programs according to Minnesota 
171.15  Statutes, section 124D.56: 
171.16       $710,000       .....     2002 
171.17       $710,000       .....     2003 
171.18     Any balance in the first year does not cancel but is 
171.19  available in the second year. 
171.20     Subd. 5.  [HEARING-IMPAIRED ADULTS.] For programs for 
171.21  hearing-impaired adults according to Minnesota Statutes, section 
171.22  124D.57: 
171.23       $70,000        .....     2002
171.24       $70,000        .....     2003
171.25     Any balance in the first year does not cancel but is 
171.26  available in the second year. 
171.27     Subd. 6.  [VIOLENCE PREVENTION EDUCATION GRANTS.] For 
171.28  violence prevention education grants according to Minnesota 
171.29  Statutes, section 120B.23: 
171.30       $1,450,000     .....     2002
171.31       $1,450,000     .....     2003
171.32     Any balance in the first year does not cancel but is 
171.33  available in the second year. 
171.34     Subd. 7.  [ABUSED CHILDREN.] For abused children programs 
171.35  according to Minnesota Statutes, section 119A.21: 
171.36       $945,000       .....     2002 
172.1        $945,000       .....     2003 
172.2      Any balance in the first year does not cancel but is 
172.3   available in the second year. 
172.4      Subd. 8.  [CHILDREN'S TRUST FUND.] For children's trust 
172.5   fund according to Minnesota Statutes, sections 119A.12 and 
172.6   119A.13: 
172.7        $875,000       .....     2002
172.8        $875,000       .....     2003
172.9      Of this amount, $400,000 each year is for the adolescent 
172.10  parenting program according to Minnesota Statutes, section 
172.11  124D.331; and $250,000 each year is for male responsibility 
172.12  grants according to Minnesota Statutes, section 124D.33. 
172.13     Any balance in the first year does not cancel but is 
172.14  available in the second year. 
172.15     Subd. 9.  [FAMILY VISITATION CENTERS.] (a) For family 
172.16  visitation centers according to Minnesota Statutes, section 
172.17  119A.37: 
172.18       $200,000       .....     2002
172.19       $200,000       .....     2003
172.20     Any balance in the first year does not cancel but is 
172.21  available in the second year. 
172.22     (b) An additional $96,000 in fiscal year 2002 and $96,000 
172.23  in fiscal year 2003 are appropriated from the special revenue 
172.24  fund under Minnesota Statutes, section 517.08, subdivision 1c, 
172.25  for family visitation centers.  Any balance in the first year 
172.26  does not cancel but is available in the second year. 
172.27     Subd. 10.  [AFTER SCHOOL ENRICHMENT GRANTS.] For after 
172.28  school enrichment grants according to Minnesota Statutes, 
172.29  section 124D.221:  
172.30       $5,510,000     .....     2002
172.31       $5,510,000     .....     2003
172.32     Any balance in the first year does not cancel but is 
172.33  available in the second year. 
172.34     Subd. 11.  [CHEMICAL ABUSE PREVENTION GRANTS.] (a) For 
172.35  grants with funds received under Minnesota Statutes, section 
172.36  171.29, subdivision 2, paragraph (b), clause (4): 
173.1        $200,000     .....     2002
173.2        $200,000     .....     2003
173.3      (b) These appropriations are from the alcohol-impaired 
173.4   driver account of the special revenue fund for chemical abuse 
173.5   prevention grants.  
173.6      Sec. 11.  [REVISOR INSTRUCTION.] 
173.7      In the next and subsequent editions of Minnesota Statutes 
173.8   and Minnesota Rules, the revisor shall renumber Minnesota 
173.9   Statutes, section 119A.13, subdivision 4, as Minnesota Statutes, 
173.10  section 119A.12, subdivision 4, and make necessary 
173.11  cross-reference changes consistent with the renumbering. 
173.12     Sec. 12.  [REPEALER.] 
173.13     Minnesota Statutes 2000, sections 119A.13, subdivisions 1, 
173.14  2, and 3; 119A.14, subdivision 2; 119A.23; 124D.33; and 
173.15  124D.331, are repealed. 
173.16                             ARTICLE 8 
173.17               SELF-SUFFICIENCY AND LIFELONG LEARNING 
173.18     Section 1.  Minnesota Statutes 2000, section 124D.52, 
173.19  subdivision 2, is amended to read: 
173.20     Subd. 2.  [PROGRAM APPROVAL.] (a) To receive aid under this 
173.21  section, a district, a consortium of districts, the department 
173.22  of corrections, or a private nonprofit organization must submit 
173.23  an application by June 1 describing the program, on a form 
173.24  provided by the department.  The program must be approved by the 
173.25  commissioner according to the following criteria:  
173.26     (1) how the needs of different levels of learning will be 
173.27  met; 
173.28     (2) for continuing programs, an evaluation of results; 
173.29     (3) anticipated number and education level of participants; 
173.30     (4) coordination with other resources and services; 
173.31     (5) participation in a consortium, if any, and money 
173.32  available from other participants; 
173.33     (6) management and program design; 
173.34     (7) volunteer training and use of volunteers; 
173.35     (8) staff development services; 
173.36     (9) program sites and schedules; 
174.1      (10) program expenditures that qualify for aid; 
174.2      (11) program ability to provide data related to learner 
174.3   outcomes as required by law; and 
174.4      (12) a copy of the memorandum of understanding described in 
174.5   subdivision 1 submitted to the commissioner.  
174.6      (b) Adult basic education programs may be approved under 
174.7   this subdivision for up to five years.  Five-year program 
174.8   approval must be granted to an applicant who has demonstrated 
174.9   the capacity to: 
174.10     (1) offer comprehensive learning opportunities and support 
174.11  service choices appropriate for and accessible to adults at all 
174.12  basic skill need levels; 
174.13     (2) provide a participatory and experiential learning 
174.14  approach based on the strengths, interests, and needs of each 
174.15  adult, that enables adults with basic skill needs to: 
174.16     (i) identify, plan for, and evaluate their own progress 
174.17  toward achieving their defined educational and occupational 
174.18  goals; 
174.19     (ii) master the basic academic reading, writing, and 
174.20  computational skills, as well as the problem-solving, decision 
174.21  making, interpersonal effectiveness, and other life and learning 
174.22  skills they need to function effectively in a changing society; 
174.23     (iii) locate and be able to use the health, governmental, 
174.24  and social services and resources they need to improve their own 
174.25  and their families' lives; and 
174.26     (iv) continue their education, if they desire, to at least 
174.27  the level of secondary school completion, with the ability to 
174.28  secure and benefit from continuing education that will enable 
174.29  them to become more employable, productive, and responsible 
174.30  citizens; 
174.31     (3) plan, coordinate, and develop cooperative agreements 
174.32  with community resources to address the needs that the adults 
174.33  have for support services, such as transportation, flexible 
174.34  course scheduling, convenient class locations, and child care; 
174.35     (4) collaborate with business, industry, labor unions, and 
174.36  employment-training agencies, as well as with family and 
175.1   occupational education providers, to arrange for resources and 
175.2   services through which adults can attain economic 
175.3   self-sufficiency; 
175.4      (5) provide sensitive and well trained adult education 
175.5   personnel who participate in local, regional, and statewide 
175.6   adult basic education staff development events to master 
175.7   effective adult learning and teaching techniques; 
175.8      (6) participate in regional adult basic education peer 
175.9   program reviews and evaluations; 
175.10     (7) submit accurate and timely performance and fiscal 
175.11  reports; 
175.12     (8) submit accurate and timely reports related to program 
175.13  outcomes and learner follow-up information; and 
175.14     (9) spend adult basic education aid on adult basic 
175.15  education purposes only, which are specified in sections 
175.16  124D.518 to 124D.531.  
175.17     (c) The commissioner shall require each district to provide 
175.18  notification by February 1, 2001, of its intent to apply for 
175.19  funds under this section as a single district or as part of an 
175.20  identified consortium of districts.  A district receiving funds 
175.21  under this section must notify the commissioner by February 1 of 
175.22  its intent to change its application status for applications due 
175.23  the following June 1. 
175.24     Sec. 2.  Minnesota Statutes 2000, section 124D.522, is 
175.25  amended to read: 
175.26     124D.522 [ADULT BASIC EDUCATION SUPPLEMENTAL SERVICE 
175.27  GRANTS.] 
175.28     (a) The commissioner, in consultation with the policy 
175.29  review task force under section 124D.521, may make grants to 
175.30  nonprofit organizations to provide services that are not offered 
175.31  by a district adult basic education program or that are 
175.32  supplemental to either the statewide adult basic education 
175.33  program, or a district's adult basic education program.  The 
175.34  commissioner may make grants for:  staff development for adult 
175.35  basic education teachers and administrators; training for 
175.36  volunteer tutors; training, services, and materials for serving 
176.1   disabled students through adult basic education programs; 
176.2   statewide promotion of adult basic education services and 
176.3   programs; development and dissemination of instructional and 
176.4   administrative technology for adult basic education programs; 
176.5   programs which primarily serve communities of color; adult basic 
176.6   education distance learning projects, including television 
176.7   instruction programs; and other supplemental services to support 
176.8   the mission of adult basic education and innovative delivery of 
176.9   adult basic education services.  
176.10     (b) The commissioner must establish eligibility criteria 
176.11  and grant application procedures.  Grants under this section 
176.12  must support services throughout the state, focus on educational 
176.13  results for adult learners, and promote outcome-based 
176.14  achievement through adult basic education programs.  Beginning 
176.15  in fiscal year 2002, the commissioner may make grants under this 
176.16  section from funds specifically appropriated the state total 
176.17  adult basic education aid set aside for supplemental service 
176.18  grants under section 124D.531.  Up to one-third one-fourth of 
176.19  the appropriation for supplemental service grants must be used 
176.20  for grants for adult basic education programs to encourage and 
176.21  support innovations in adult basic education instruction and 
176.22  service delivery.  A grant to a single organization cannot 
176.23  exceed $100,000.  Nothing in this section prevents an approved 
176.24  adult basic education program from using state or federal aid to 
176.25  purchase supplemental services. 
176.26     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2001. 
176.27     Sec. 3.  Minnesota Statutes 2000, section 124D.531, 
176.28  subdivision 1, is amended to read: 
176.29     Subdivision 1.  [STATE TOTAL ADULT BASIC EDUCATION AID.] 
176.30  (a) The state total adult basic education aid for fiscal year 
176.31  2001 equals $30,157,000.  The state total adult basic education 
176.32  aid for later years equals: 
176.33     (1) the state total adult basic education aid for the 
176.34  preceding fiscal year; times 
176.35     (2) the lesser of: 
176.36     (i) 1.08, or 
177.1      (ii) the greater of 1.00 or the ratio of the state total 
177.2   contact hours in the first prior program year to the state total 
177.3   contact hours in the second prior program year.  Beginning in 
177.4   fiscal year 2002, two percent of the state total adult basic 
177.5   education aid must be set aside for adult basic education 
177.6   supplemental service grants under section 124D.522. 
177.7      (b) The state total adult basic education aid, excluding 
177.8   basic population aid, equals the difference between the amount 
177.9   computed in paragraph (a), and the state total basic population 
177.10  aid under subdivision 2. 
177.11     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2001. 
177.12     Sec. 4.  Minnesota Statutes 2000, section 124D.531, 
177.13  subdivision 3, is amended to read: 
177.14     Subd. 3.  [PROGRAM REVENUE.] Adult basic education programs 
177.15  established under section 124D.52 and approved by the 
177.16  commissioner are eligible for revenue under this subdivision.  
177.17  For fiscal year 2001 and later, adult basic education revenue 
177.18  for each approved program equals the sum of: 
177.19     (1) the basic population aid under subdivision 2 for 
177.20  districts participating in the program during the current 
177.21  program year; plus 
177.22     (2) 84 percent times the amount computed in subdivision 1, 
177.23  paragraph (b), times the ratio of the contact hours for students 
177.24  participating in the program during the first prior program year 
177.25  to the state total contact hours during the first prior program 
177.26  year; plus 
177.27     (3) eight percent times the amount computed in subdivision 
177.28  1, paragraph (b), times the ratio of the enrollment of students 
177.29  with limited English proficiency during the second prior school 
177.30  year in districts participating in the program during the 
177.31  current program year to the state total enrollment of students 
177.32  with limited English proficiency during the second prior school 
177.33  year in districts participating in adult basic education 
177.34  programs during the current program year; plus 
177.35     (4) eight percent times the amount computed in subdivision 
177.36  1, paragraph (b), times the ratio of the latest federal census 
178.1   count of the number of adults aged 20 or older with no diploma 
178.2   residing in the districts participating in the program during 
178.3   the current program year to the latest federal census count of 
178.4   the state total number of adults aged 20 or older with no 
178.5   diploma residing in the districts participating in adult basic 
178.6   education programs during the current program year. 
178.7      Sec. 5.  [APPROPRIATIONS.] 
178.8      Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
178.9   LEARNING.] The sums indicated in this section are appropriated 
178.10  from the general fund to the department of children, families, 
178.11  and learning for the fiscal years designated. 
178.12     Subd. 2.  [MINNESOTA ECONOMIC OPPORTUNITY GRANTS.] For 
178.13  Minnesota economic opportunity grants: 
178.14       $8,514,000     .....     2002
178.15       $8,514,000     .....     2003
178.16     Any balance in the first year does not cancel but is 
178.17  available in the second year. 
178.18     Subd. 3.  [EMERGENCY SERVICES.] For emergency services 
178.19  according to Minnesota Statutes, section 119A.43: 
178.20       $350,000     .....     2002
178.21       $350,000     .....     2003
178.22     Any balance in the first year does not cancel but is 
178.23  available in the second year. 
178.24     Subd. 4.  [ADULT BASIC EDUCATION AID.] For adult basic 
178.25  education aid according to Minnesota Statutes, section 124D.52 
178.26  in fiscal year 2002 and Minnesota Statutes, section 124D.531 in 
178.27  fiscal year 2003:  
178.28       $32,150,000    .....     2002 
178.29       $34,731,000    .....     2003 
178.30     The 2002 appropriation includes $3,019,000 for 2001 and 
178.31  $29,131,000 for 2002.  
178.32     The 2003 appropriation includes $3,237,000 for 2002 and 
178.33  $31,494,000 for 2003.  
178.34     Subd. 5.  [ADULT GRADUATION AID.] For adult graduation aid 
178.35  according to Minnesota Statutes, section 124D.54: 
178.36       $3,195,000     .....     2002
179.1        $3,356,000     .....     2003
179.2      The 2002 appropriation includes $305,000 for 2001 and 
179.3   $2,890,000 for 2002.  
179.4      The 2003 appropriation includes $321,000 for 2002 and 
179.5   $3,035,000 for 2003.  
179.6      Subd. 6.  [GED TESTS.] For payment of 60 percent of the 
179.7   costs of GED tests according to Laws 1993, chapter 224, article 
179.8   4, section 44, subdivision 10: 
179.9        $125,000       .....     2002
179.10       $125,000       .....     2003
179.11     Any balance in the first year does not cancel but is 
179.12  available in the second year. 
179.13     Subd. 7.  [FOOD BANK PROGRAM.] For foodshelf programs 
179.14  according to Minnesota Statutes, section 119A.44: 
179.15       $1,278,000     .....     2002
179.16       $1,278,000     .....     2003
179.17     Any balance in the first year does not cancel but is 
179.18  available in the second year. 
179.19     Subd. 8.  [FAMILY ASSETS FOR INDEPENDENCE.] For family 
179.20  assets for independence: 
179.21       $500,000       .....     2002
179.22     Any balance in the first year does not cancel but is 
179.23  available in the second year. 
179.24     Subd. 9.  [LEAD ABATEMENT.] For lead abatement according to 
179.25  Minnesota Statutes, section 119A.46: 
179.26       $500,000       .....     2002
179.27       $500,000       .....     2003
179.28     Subd. 10.  [ADULT BASIC EDUCATION ADMINISTRATION.] For 
179.29  adult basic education administration: 
179.30       $175,000       .....     2002 
179.31       $175,000       .....     2003 
179.32     Sec. 6.  [TANF APPROPRIATIONS.] 
179.33     Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
179.34  LEARNING.] The sums indicated in this section are appropriated 
179.35  to the commissioner of children, families, and learning from the 
179.36  federal Temporary Assistance for Needy Families (TANF) block 
180.1   grant for the fiscal years designated.  These amounts are 
180.2   available for expenditure until June 30, 2003.  Appropriations 
180.3   under this section are one-time appropriations and are not added 
180.4   to the base for fiscal years 2004 and 2005. 
180.5      Subd. 2.  [INTENSIVE ESL.] For intensive English as a 
180.6   second language (ESL) for eligible MFIP participants under Laws 
180.7   2000, chapter 489, article 1, section 39: 
180.8        $1,100,000     .....     2002 
180.9        $1,100,000     .....     2003 
180.10     Subd. 3.  [TRANSITIONAL HOUSING.] For reimbursement grants 
180.11  to transitional housing programs under Minnesota Statutes, 
180.12  section 119A.43: 
180.13       $1,900,000     .....     2002 
180.14       $1,950,000     .....     2003 
180.15     These appropriations must be used for up to four months of 
180.16  transitional housing for families with incomes below 200 percent 
180.17  of the federal poverty guidelines.  Payment must be made to 
180.18  programs on a reimbursement basis. 
180.19                             ARTICLE 9 
180.20                             LIBRARIES 
180.21     Section 1.  Minnesota Statutes 2000, section 125B.20, 
180.22  subdivision 1, is amended to read: 
180.23     Subdivision 1.  [ESTABLISHMENT; PURPOSE.] The purpose of 
180.24  developing a statewide school district telecommunications 
180.25  network is to expand the availability of a broad range of 
180.26  courses and degrees to students throughout the state, to share 
180.27  information resources to improve access, quality, and 
180.28  efficiency, to improve learning, and distance cooperative 
180.29  learning opportunities, and to promote the exchange of ideas 
180.30  among students, parents, teachers, media generalists, 
180.31  librarians, and the public.  In addition, through the 
180.32  development of this statewide telecommunications network 
180.33  emphasizing cost-effective, competitive connections, all 
180.34  Minnesotans will benefit by enhancing access to 
180.35  telecommunications technology throughout the state.  Network 
180.36  connections for school districts and public libraries are 
181.1   coordinated and fully integrated into the existing state 
181.2   telecommunications and interactive television networks to 
181.3   achieve comprehensive and efficient interconnectivity of school 
181.4   districts and libraries to higher education institutions, state 
181.5   agencies, other governmental units, agencies, and institutions 
181.6   throughout Minnesota.  A school district may apply to the 
181.7   commissioner for a grant under subdivision 2, and a regional 
181.8   public library may apply under subdivision 3.  The Minnesota 
181.9   education telecommunications council established in Laws 1995, 
181.10  First Special Session chapter 3, article 12, section 7, shall 
181.11  establish priorities for awarding grants, making grant awards, 
181.12  and being responsible for the coordination of networks. 
181.13     Sec. 2.  [134.47] [REGIONAL LIBRARY TELECOMMUNICATIONS 
181.14  AID.] 
181.15     Subdivision 1.  [ELIGIBILITY.] (a) A regional public 
181.16  library system may apply for regional library telecommunications 
181.17  aid.  The aid must be used for data and video access costs and 
181.18  other related costs to improve or maintain electronic access and 
181.19  connect the library system with the state information 
181.20  infrastructure administered by the department of administration 
181.21  under section 16B.465.  Priority shall be given to public 
181.22  libraries that have not received access.  To be eligible, a 
181.23  regional public library system must be officially designated by 
181.24  the commissioner of children, families, and learning as a 
181.25  regional public library system as defined in section 134.34, 
181.26  subdivision 3, and each of its participating cities and counties 
181.27  must meet local support levels defined in section 134.34, 
181.28  subdivision 1.  A public library building that receives aid 
181.29  under this section must be open a minimum of 20 hours per week. 
181.30     (b) Aid received under this section may not be used to 
181.31  substitute for any existing local funds allocated to provide 
181.32  electronic access, equipment for library staff or the public, or 
181.33  local funds dedicated to other library operations. 
181.34     (c) An application for regional library telecommunications 
181.35  aid must, at a minimum, contain information to document the 
181.36  following: 
182.1      (1) the connections are adequate and employ an open network 
182.2   architecture that will ensure interconnectivity and 
182.3   interoperability with school districts, post-secondary 
182.4   education, or other governmental agencies; 
182.5      (2) that the connection is established through the most 
182.6   cost-effective means and that the regional library has explored 
182.7   and coordinated connections through school districts, 
182.8   post-secondary education, or other governmental agencies; 
182.9      (3) that the regional library system has filed an e-rate 
182.10  application; and 
182.11     (4) other information, as determined by the commissioner of 
182.12  children, families, and learning, to ensure that connections are 
182.13  coordinated, efficient, and cost-effective, take advantage of 
182.14  discounts, and meet applicable state standards. 
182.15     The library system may include costs associated with 
182.16  cooperative arrangements with post-secondary institutions, 
182.17  school districts, and other governmental agencies. 
182.18     Subd. 2.  [AWARD OF FUNDS.] The commissioner of children, 
182.19  families, and learning shall develop an application and a 
182.20  reporting form and procedures for regional library 
182.21  telecommunications aid.  Aid shall be based on actual costs of 
182.22  connections and funds available for this purpose.  The 
182.23  commissioner shall make payments directly to the regional public 
182.24  library system. 
182.25     Sec. 3.  [APPROPRIATIONS.] 
182.26     Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
182.27  LEARNING.] The sums indicated in this section are appropriated 
182.28  from the general fund to the department of children, families, 
182.29  and learning for the fiscal years designated.  
182.30     Subd. 2.  [BASIC SUPPORT GRANTS.] For basic support grants 
182.31  according to Minnesota Statutes, sections 134.32 to 134.35: 
182.32       $8,570,000     .....     2002 
182.33       $8,570,000     .....     2003 
182.34     The 2002 appropriation includes $857,000 for 2001 and 
182.35  $7,713,000 for 2002. 
182.36     The 2003 appropriation includes $857,000 for 2002 and 
183.1   $7,713,000 for 2003. 
183.2      Subd. 3.  [MULTICOUNTY, MULTITYPE LIBRARY SYSTEMS.] For 
183.3   grants according to Minnesota Statutes, sections 134.353 and 
183.4   134.354, to multicounty, multitype library systems: 
183.5        $903,000       .....     2002 
183.6        $903,000       .....     2003 
183.7      The 2002 appropriation includes $90,000 for 2001 and 
183.8   $813,000 for 2002. 
183.9      The 2003 appropriation includes $90,000 for 2002 and 
183.10  $813,000 for 2003. 
183.11     Subd. 4.  [REGIONAL LIBRARY TELECOMMUNICATIONS AID.] For 
183.12  aid to regional public library systems under Minnesota Statutes, 
183.13  section 134.47: 
183.14       $1,500,000     .....     2002 
183.15       $1,500,000     .....     2003 
183.16     Any balance in the first year does not cancel but is 
183.17  available in the second year. 
183.18     Subd. 5.  [STATE AGENCY LIBRARIES.] For maintaining and 
183.19  upgrading the on-line computer-based library catalogue system in 
183.20  state agency libraries:  
183.21       $123,000       .....     2002 
183.22       $123,000       .....     2003 
183.23     Any balance in the first year does not cancel but is 
183.24  available in the second year.  These appropriation amounts are 
183.25  added to amounts included in the appropriation for the 
183.26  department of children, families, and learning budget that are 
183.27  for the same purpose. 
183.28     Subd. 6.  [LIBRARY FOR THE BLIND.] For the library for the 
183.29  blind to replace a computer system, install a T1 
183.30  telecommunications line, and fund the ongoing operational costs 
183.31  of the computer system and T1 telecommunications line and two 
183.32  permanent staff positions related to these functions:  
183.33       $238,000       .....     2002 
183.34       $194,000       .....     2003 
183.35     Of these appropriations, the amount in fiscal year 2002 is 
183.36  one-time funding only. 
184.1      Sec. 4.  [REPEALER.] 
184.2      Minnesota Statutes 2000, section 125B.20, subdivision 3, is 
184.3   repealed. 
184.4                              ARTICLE 10 
184.5                            STATE AGENCIES 
184.6      Section 1.  Minnesota Statutes 2000, section 122A.162, is 
184.7   amended to read: 
184.8      122A.162 [LICENSURE RULES.] 
184.9      The commissioner may make rules relating to licensure of 
184.10  school personnel not licensed by the board of teaching or the 
184.11  board of education leadership. 
184.12     Sec. 2.  Minnesota Statutes 2000, section 122A.163, is 
184.13  amended to read: 
184.14     122A.163 [TEACHER RULE VARIANCES; COMMISSIONER.] 
184.15     Notwithstanding any law to the contrary, and only upon 
184.16  receiving the agreement of the state board of teaching or board 
184.17  of education leadership, whichever has jurisdiction over the 
184.18  teachers' licensure, the commissioner of children, families, and 
184.19  learning may grant a variance to rules governing licensure of 
184.20  teachers for those teachers licensed by the board of teaching or 
184.21  board of education leadership, whichever has jurisdiction.  The 
184.22  commissioner may grant a variance, without the agreement of the 
184.23  board of teaching or board of education leadership, to rules 
184.24  adopted by the commissioner governing licensure of teachers for 
184.25  those teachers the commissioner licenses. 
184.26     Sec. 3.  Minnesota Statutes 2000, section 122A.18, 
184.27  subdivision 1, is amended to read: 
184.28     Subdivision 1.  [AUTHORITY TO LICENSE.] (a) The board of 
184.29  teaching must license teachers, as defined in section 122A.15, 
184.30  subdivision 1, except for supervisory personnel, as defined in 
184.31  section 122A.15, subdivision 2. 
184.32     (b) The commissioner of children, families, and learning 
184.33  board of education leadership must license supervisory personnel 
184.34  as defined in section 122A.15, subdivision 2, except for 
184.35  athletic coaches.  
184.36     (c) Licenses under the jurisdiction of the board of 
185.1   teaching, the board of education leadership, and the 
185.2   commissioner of children, families, and learning must be issued 
185.3   through the licensing section of the department.  
185.4      Sec. 4.  Minnesota Statutes 2000, section 122A.18, 
185.5   subdivision 4, is amended to read: 
185.6      Subd. 4.  [EXPIRATION AND RENEWAL.] (a) Each license the 
185.7   department of children, families, and learning issues through 
185.8   its licensing section must bear the date of issue.  Licenses 
185.9   must expire and be renewed according to the respective rules the 
185.10  board of teaching, the board of education leadership, or the 
185.11  commissioner of children, families, and learning adopts.  
185.12  Requirements for renewing a license must include showing 
185.13  satisfactory evidence of successful teaching experience for at 
185.14  least one school year during the period covered by the license 
185.15  in grades or subjects for which the license is valid or 
185.16  completing such additional preparation as the board of teaching 
185.17  prescribes.  The commissioner of children, families, and 
185.18  learning board of education leadership shall establish 
185.19  requirements for renewing the licenses of supervisory personnel, 
185.20  except athletic coaches. 
185.21     (b) The board of teaching shall offer alternative 
185.22  continuing relicensure options for teachers who are accepted 
185.23  into and complete the national board for professional teaching 
185.24  standards certification process, and offer additional continuing 
185.25  relicensure options for teachers who earn national board for 
185.26  professional teaching standards certification.  Continuing 
185.27  relicensure requirements for teachers who do not maintain 
185.28  national board for professional teaching standards certification 
185.29  are those the board prescribes.  
185.30     Sec. 5.  [122A.191] [DEFINITIONS.] 
185.31     Subdivision 1.  [SCOPE.] For the purposes of sections 
185.32  122A.191 to 122A.193, the terms in this section have the 
185.33  meanings given them, unless another meaning is clearly indicated.
185.34     Subd. 2.  [BOARD.] "Board" means board of education 
185.35  leadership. 
185.36     Subd. 3.  [SUPERVISORY PERSONNEL.] "Supervisory personnel" 
186.1   means supervisory personnel as defined in section 122A.15, 
186.2   subdivision 2, excluding athletic coaches. 
186.3      Sec. 6.  [122A.192] [BOARD OF EDUCATION LEADERSHIP.] 
186.4      Subdivision 1.  [MEMBERSHIP.] A board of education 
186.5   leadership is established and must consist of nine members 
186.6   appointed by the governor with the advice and consent of the 
186.7   senate, including at least: 
186.8      (1) one elementary school principal; 
186.9      (2) one secondary school principal; 
186.10     (3) one higher education faculty member in an educational 
186.11  administration program approved by the board; 
186.12     (4) one higher education administrator for an educational 
186.13  administration program approved by the board; 
186.14     (5) one school superintendent; 
186.15     (6) one classroom teacher; 
186.16     (7) one community education director or a special education 
186.17  director; and 
186.18     (8) two members of the public, one of whom must be a 
186.19  present or former member of a school board. 
186.20     In making appointments, the governor shall solicit 
186.21  recommendations from groups representing persons in clauses (1) 
186.22  to (8). 
186.23     Subd. 2.  [TERMS; COMPENSATION; REMOVAL; 
186.24  ADMINISTRATION.] Membership terms, removal of members, and the 
186.25  filling of membership vacancies are as provided in section 
186.26  214.09.  The terms of the initial board members must be 
186.27  determined by lot as follows: 
186.28     (1) three members must be appointed for terms that expire 
186.29  August 1, 2002; 
186.30     (2) three members must be appointed for terms that expire 
186.31  August 1, 2003; and 
186.32     (3) three members must be appointed for terms that expire 
186.33  August 1, 2004. 
186.34     Members shall not receive the daily payment under section 
186.35  214.09, subdivision 3.  The employer of a member shall not 
186.36  reduce the member's compensation or benefits for the member's 
187.1   absence from employment when engaging in the business of the 
187.2   board.  The provision of staff, administrative services, and 
187.3   office space; the review and processing of complaints; the 
187.4   setting of fees; the selection and duties of an executive 
187.5   secretary to serve the board; and other provisions relating to 
187.6   board operations are as provided in chapter 214.  Fiscal year 
187.7   and reporting requirements are as provided in sections 214.07 
187.8   and 214.08. 
187.9      Subd. 3.  [VACANT POSITION.] The position of a member is 
187.10  deemed vacant if the member leaves Minnesota or the member's 
187.11  employment status changes to a category different from that for 
187.12  which the member was appointed. 
187.13     Subd. 4.  [MEETINGS.] The board must meet regularly at the 
187.14  times and places determined by the board.  The board must 
187.15  nominate and elect a chair and other officers from its 
187.16  membership. 
187.17     Subd. 5.  [EXECUTIVE SECRETARY.] The board may have an 
187.18  executive secretary who is in the unclassified civil service and 
187.19  who is not a member of the board. 
187.20     Subd. 6.  [COMMISSIONER'S ASSISTANCE; BOARD MONEY.] The 
187.21  commissioner shall provide all necessary materials and 
187.22  assistance for the transaction of business of the board under 
187.23  section 122A.18 and all money received by the board shall be 
187.24  paid into the state treasury as provided by law.  The expenses 
187.25  of administering sections 122A.15, 122A.16, 122A.162 to 122A.18, 
187.26  122A.191 to 122A.23, and 122A.27 that are incurred by the board 
187.27  of education leadership must be paid for from appropriations 
187.28  made to the board of education leadership. 
187.29     Sec. 7.  [122A.193] [DUTIES OF THE BOARD OF EDUCATION 
187.30  LEADERSHIP.] 
187.31     Subdivision 1.  [LICENSING; RULEMAKING; PREPARATION 
187.32  PROGRAMS.] The board must establish standards and procedures, 
187.33  that are supported by current research and best practices, for 
187.34  preparing supervisory personnel for licensure, licensing, and 
187.35  the renewal of licenses of supervisory personnel.  The board 
187.36  must adopt administrative rules, in accordance with chapter 14, 
188.1   for implementing the supervisory personnel licensure process, 
188.2   including approving supervisory personnel preparation programs 
188.3   and allowing public and private organizations to offer 
188.4   alternative preparation programs leading to licensure of 
188.5   supervisory personnel. 
188.6      Subd. 2.  [ACCOUNTABILITY.] The board must develop 
188.7   accountability measures for programs preparing students for 
188.8   licensure and report the progress of the programs to the 
188.9   legislature by January 15 of every other year beginning with the 
188.10  2003 legislature. 
188.11     Subd. 3.  [REGISTER OF PERSONS LICENSED.] The executive 
188.12  secretary of the board shall keep a record of the proceedings of 
188.13  the board and a register of all persons licensed under this 
188.14  section.  The register must show the name, address, license 
188.15  number, and the renewal of the license.  The board must, on July 
188.16  1 of each year or as soon thereafter as possible, compile a list 
188.17  of licensed supervisory personnel and send a copy of the list to 
188.18  the board.  A copy of the register must be available during 
188.19  business hours at the office of the board to any interested 
188.20  person. 
188.21     Subd. 4.  [RULES FOR CONTINUING EDUCATION REQUIREMENTS.] 
188.22  The board shall adopt rules establishing continuing education 
188.23  requirements which promote continuous improvement and 
188.24  acquisition of new and relevant skills by school administrators. 
188.25     Subd. 5.  [CODE OF ETHICS.] The board shall adopt by rule a 
188.26  code of ethics covering standards of professional practice, 
188.27  including ethical conduct, professional performance, and methods 
188.28  of enforcement, and advise school administrators in interpreting 
188.29  the code of ethics. 
188.30     Sec. 8.  Minnesota Statutes 2000, section 122A.21, is 
188.31  amended to read: 
188.32     122A.21 [TEACHERS' AND ADMINISTRATORS' LICENSES; FEES.] 
188.33     (a) Each application for the issuance, renewal, or 
188.34  extension of a license to teach and each application for the 
188.35  issuance, renewal, or extension of a license as supervisory 
188.36  personnel must be accompanied by a processing fee in an amount 
189.1   set by the board of teaching or the board of education 
189.2   leadership, whichever has jurisdiction over the license, by 
189.3   rule.  The processing fee for a teacher's license and for the 
189.4   licenses of supervisory personnel must be paid to the executive 
189.5   secretary of the board of teaching or the board of education 
189.6   leadership, whichever has jurisdiction over the license.  The 
189.7   executive secretary secretaries of the board of teaching and the 
189.8   board of education leadership shall deposit the fees with the 
189.9   state treasurer, as provided by law, and report each month to 
189.10  the commissioner of finance the amount of fees collected.  The 
189.11  fees as set by the board of teaching and the board of education 
189.12  leadership are nonrefundable for applicants not qualifying for a 
189.13  license.  However, a fee must be refunded by the state treasurer 
189.14  in any case in which the applicant already holds a valid 
189.15  unexpired license.  The board of teaching and the board of 
189.16  education leadership may waive or reduce fees for applicants who 
189.17  apply at the same time for more than one license. 
189.18     (b) The processing fee for administrators' licenses must be 
189.19  at least $75, beginning July 1, 2001.  For fiscal year 2003 and 
189.20  later, the board of education leadership must set a fee, by 
189.21  rule, in an amount that generates enough revenue to cover all 
189.22  board costs and expenses. 
189.23     Sec. 9.  Minnesota Statutes 2000, section 214.01, 
189.24  subdivision 3, is amended to read: 
189.25     Subd. 3.  [NON-HEALTH-RELATED LICENSING BOARD.] 
189.26  "Non-health-related licensing board" means the board of teaching 
189.27  established pursuant to section 122A.07, the board of education 
189.28  leadership established under section 122A.192, the board of 
189.29  barber examiners established pursuant to section 154.22, the 
189.30  board of assessors established pursuant to section 270.41, the 
189.31  board of architecture, engineering, land surveying, landscape 
189.32  architecture, geoscience, and interior design established 
189.33  pursuant to section 326.04, the board of accountancy established 
189.34  pursuant to section 326.17, the board of electricity established 
189.35  pursuant to section 326.241, the private detective and 
189.36  protective agent licensing board established pursuant to section 
190.1   326.33, the board of boxing established pursuant to section 
190.2   341.01, and the peace officer standards and training board 
190.3   established pursuant to section 626.841. 
190.4      Sec. 10.  Minnesota Statutes 2000, section 214.04, 
190.5   subdivision 1, is amended to read: 
190.6      Subdivision 1.  [SERVICES PROVIDED.] The commissioner of 
190.7   administration with respect to the board of electricity, the 
190.8   commissioner of children, families, and learning with respect to 
190.9   the board of teaching and the board of education leadership, the 
190.10  commissioner of public safety with respect to the board of 
190.11  private detective and protective agent services, and the board 
190.12  of peace officer standards and training, and the commissioner of 
190.13  revenue with respect to the board of assessors, shall provide 
190.14  suitable offices and other space, joint conference and hearing 
190.15  facilities, examination rooms, and the following administrative 
190.16  support services:  purchasing service, accounting service, 
190.17  advisory personnel services, consulting services relating to 
190.18  evaluation procedures and techniques, data processing, 
190.19  duplicating, mailing services, automated printing of license 
190.20  renewals, and such other similar services of a housekeeping 
190.21  nature as are generally available to other agencies of state 
190.22  government.  Investigative services shall be provided the boards 
190.23  by employees of the office of attorney general.  The 
190.24  commissioner of health with respect to the health-related 
190.25  licensing boards shall provide mailing and office supply 
190.26  services and may provide other facilities and services listed in 
190.27  this subdivision at a central location upon request of the 
190.28  health-related licensing boards.  The commissioner of commerce 
190.29  with respect to the remaining non-health-related licensing 
190.30  boards shall provide the above facilities and services at a 
190.31  central location for the remaining non-health-related licensing 
190.32  boards.  The legal and investigative services for the boards 
190.33  shall be provided by employees of the attorney general assigned 
190.34  to the departments servicing the boards.  Notwithstanding the 
190.35  foregoing, the attorney general shall not be precluded by this 
190.36  section from assigning other attorneys to service a board if 
191.1   necessary in order to insure competent and consistent legal 
191.2   representation.  Persons providing legal and investigative 
191.3   services shall to the extent practicable provide the services on 
191.4   a regular basis to the same board or boards. 
191.5      Sec. 11.  Minnesota Statutes 2000, section 214.04, 
191.6   subdivision 3, is amended to read: 
191.7      Subd. 3.  [OFFICERS; STAFF.] The executive director of each 
191.8   health-related board and the executive secretary of each 
191.9   non-health-related board shall be the chief administrative 
191.10  officer for the board but shall not be a member of the board.  
191.11  The executive director or executive secretary shall maintain the 
191.12  records of the board, account for all fees received by it, 
191.13  supervise and direct employees servicing the board, and perform 
191.14  other services as directed by the board.  The executive 
191.15  directors, executive secretaries, and other employees of the 
191.16  following boards shall be hired by the board, and the executive 
191.17  directors or executive secretaries shall be in the unclassified 
191.18  civil service, except as provided in this subdivision:  
191.19     (1) dentistry; 
191.20     (2) medical practice; 
191.21     (3) nursing; 
191.22     (4) pharmacy; 
191.23     (5) accountancy; 
191.24     (6) architecture, engineering, land surveying, landscape 
191.25  architecture, geoscience, and interior design; 
191.26     (7) barber examiners; 
191.27     (8) cosmetology; 
191.28     (9) electricity; 
191.29     (10) teaching; 
191.30     (11) peace officer standards and training; 
191.31     (12) social work; 
191.32     (13) marriage and family therapy; and 
191.33     (14) dietetics and nutrition practice; and 
191.34     (15) education leadership. 
191.35     The executive directors or executive secretaries serving 
191.36  the boards are hired by those boards and are in the unclassified 
192.1   civil service, except for part-time executive directors or 
192.2   executive secretaries, who are not required to be in the 
192.3   unclassified service.  Boards not requiring full-time executive 
192.4   directors or executive secretaries may employ them on a 
192.5   part-time basis.  To the extent practicable, the sharing of 
192.6   part-time executive directors or executive secretaries by boards 
192.7   being serviced by the same department is encouraged.  Persons 
192.8   providing services to those boards not listed in this 
192.9   subdivision, except executive directors or executive secretaries 
192.10  of the boards and employees of the attorney general, are 
192.11  classified civil service employees of the department servicing 
192.12  the board.  To the extent practicable, the commissioner shall 
192.13  ensure that staff services are shared by the boards being 
192.14  serviced by the department.  If necessary, a board may hire 
192.15  part-time, temporary employees to administer and grade 
192.16  examinations. 
192.17     Sec. 12.  Minnesota Statutes 2000, section 214.12, 
192.18  subdivision 1, is amended to read: 
192.19     Subdivision 1.  [REQUIREMENTS.] The health-related and 
192.20  non-health-related licensing boards may promulgate by rule 
192.21  requirements for renewal of licenses designed to promote the 
192.22  continuing professional competence of licensees.  These 
192.23  requirements of continuing professional education or training 
192.24  shall be designed solely to improve professional skills and 
192.25  shall not exceed an average attendance requirement of 50 clock 
192.26  hours per year.  All requirements promulgated by the boards 
192.27  shall be effective commencing January 1, 1977, or at a later 
192.28  date as the board may determine.  The 50 clock hour limitation 
192.29  shall not apply to the board of teaching and board of education 
192.30  leadership. 
192.31     Sec. 13.  [TRANSFER OF POWERS AND DUTIES; RULES.] 
192.32     Except as otherwise provided in this section and in 
192.33  Minnesota Statutes, section 122A.18, the powers, duties, and 
192.34  responsibilities of the commissioner of children, families, and 
192.35  learning with respect to supervisory personnel as defined in 
192.36  Minnesota Statutes, section 122A.15, subdivision 2, except for 
193.1   athletic coaches, are transferred to the board of education 
193.2   leadership. 
193.3      Sec. 14.  [DIVISION OF GIFTED AND TALENTED SERVICES.] 
193.4      The commissioner of children, families, and learning shall 
193.5   establish a division of gifted and talented services within the 
193.6   department of children, families, and learning beginning in 
193.7   fiscal year 2002.  Any head or staff of this division must have 
193.8   extensive training and experience in gifted education.  The 
193.9   division shall: 
193.10     (1) provide general oversight to gifted and talented 
193.11  programs; 
193.12     (2) provide support and start-up assistance for districts 
193.13  that do not have gifted and talented programs; 
193.14     (3) develop a set of criteria for best practice gifted and 
193.15  talented instruction and assist districts in providing 
193.16  professional development in gifted and talented instruction; 
193.17     (4) assist districts in developing processes for 
193.18  identifying and assessing students for placement in appropriate 
193.19  gifted and talented services; 
193.20     (5) assist districts in developing gifted and talented 
193.21  services that are integrated with the state's graduation 
193.22  standards; 
193.23     (6) by July 1, 2002, develop a state accountability system 
193.24  with district outcomes for gifted and talented programs; and 
193.25     (7) by July 1, 2002, develop a uniform system of reporting 
193.26  program expenses and results to the state and to the local 
193.27  school board. 
193.28     Sec. 15.  [CONTRACTS AND GRANTS UNIT; INTERNAL AUDITS 
193.29  OFFICE.] 
193.30     (a) The commissioner of children, families, and learning 
193.31  shall establish a contracts and grants unit within the 
193.32  department to manage the contracting process for the 
193.33  department.  The unit must be separate from individual program 
193.34  functions.  The duties of the unit include: 
193.35     (1) supporting the fiscal management of contracts and 
193.36  grants; 
194.1      (2) technical assistance to program areas in setting up and 
194.2   monitoring grants; 
194.3      (3) legal review of contracts for compliance with state law 
194.4   and requirements of private grants; 
194.5      (4) training and advising program areas on how the 
194.6   contracting process should be handled; 
194.7      (5) reviewing requests for proposals for compliance with 
194.8   legal requirements; 
194.9      (6) drafting and maintaining a contracts manual for use by 
194.10  program areas; and 
194.11     (7) approving all contracts entered into by program areas. 
194.12     (b) The commissioner of children, families, and learning 
194.13  shall establish an internal audits office.  Any significant 
194.14  audit violations must be reported to the commissioner in 
194.15  writing.  The office must report at least annually to the 
194.16  commissioner on contract policies, procedures, and controls.  
194.17  Duties of the internal audits office include: 
194.18     (1) serving as an independent appraisal function to examine 
194.19  and evaluate the department's activities; 
194.20     (2) measuring and evaluating the effectiveness of 
194.21  accounting, financial and operating policies, procedures, and 
194.22  controls on a department basis; and 
194.23     (3) examining contracts and grants for compliance with 
194.24  federal and state law. 
194.25     Sec. 16.  [APPROPRIATIONS; DEPARTMENT OF CHILDREN, 
194.26  FAMILIES, AND LEARNING.] 
194.27     Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
194.28  LEARNING.] The sums indicated in this section are appropriated 
194.29  from the general fund unless otherwise indicated to the 
194.30  department of children, families, and learning for the fiscal 
194.31  years designated. 
194.32     Subd. 2.  [TEACHING AND LEARNING PROGRAM.] For the teaching 
194.33  and learning program: 
194.34       $8,092,000     .....     2002 
194.35       $8,206,000     .....     2003 
194.36     Of this amount, $20,000 each year is for the foreign 
195.1   teacher exchange program. 
195.2      Any balance in the first year does not cancel but is 
195.3   available in the second year. 
195.4      Subd. 3.  [AFFILIATED ORGANIZATIONS.] (a) For affiliated 
195.5   organizations: 
195.6        $1,674,000     .....     2002 
195.7        $1,642,000     .....     2003 
195.8      Any balance in the first year does not cancel but is 
195.9   available in the second year.  
195.10     (b) Of this amount, $260,000 each year is for the Minnesota 
195.11  Children's Museum; $50,000 in fiscal year 2002 is for the Duluth 
195.12  Children's Museum; $625,000 each year is for the Minnesota 
195.13  Foundation for student organizations; and $684,000 in fiscal 
195.14  year 2002 and $690,000 in fiscal year 2003 is for the board of 
195.15  teaching. 
195.16     (c) The expenditures of federal grants and aids as shown in 
195.17  the biennial budget document and its supplement are approved and 
195.18  appropriated and shall be spent as indicated.  
195.19     Subd. 4.  [MANAGEMENT SERVICES PROGRAM.] For the management 
195.20  services program: 
195.21      $14,792,000     .....     2002 
195.22      $15,028,000     .....     2003 
195.23     Any balance in the first year does not cancel but is 
195.24  available in the second year. 
195.25     Subd. 5.  [COMMUNITY SERVICES PROGRAM.] For the community 
195.26  services program: 
195.27       $3,008,000     .....     2002 
195.28       $3,078,000     .....     2003 
195.29     Any balance in the first year does not cancel but is 
195.30  available the second year. 
195.31     Subd. 6.  [POLICY DEVELOPMENT.] For the policy development 
195.32  program: 
195.33       $4,103,000     .....     2002 
195.34       $4,183,000     .....     2003 
195.35     Of this amount, $1,000,000 each year is to fund the 
195.36  automation and systems upgrades to improve the efficiency and 
196.1   service of the teacher licensure system.  This amount shall not 
196.2   be included in the agency's base budget. 
196.3      Any balance in the first year does not cancel but is 
196.4   available in the second year. 
196.5      Sec. 17.  [APPROPRIATIONS; BOARD OF EDUCATION LEADERSHIP.] 
196.6      The sums indicated in this section are appropriated from 
196.7   the general fund to the board of education leadership for the 
196.8   fiscal years designated: 
196.9        $165,000     .....     2002 
196.10       $165,000     .....     2003 
196.11     Any balance in the first year does not cancel but is 
196.12  available in the second year. 
196.13     Sec. 18.  [APPROPRIATIONS; PERPICH CENTER FOR ARTS 
196.14  EDUCATION.] 
196.15     The sums indicated in this section are appropriated from 
196.16  the general fund to the Perpich center for arts education for 
196.17  the fiscal years designated: 
196.18       $7,781,000     .....     2002 
196.19       $7,916,000     .....     2003 
196.20     Of each year's appropriation, $175,000 is to extend the 
196.21  partnership network to up to five new partnership sites and 
196.22  $75,000 is for developing whole-school, arts-based teaching and 
196.23  learning curriculum at new sites. 
196.24     Any balance in the first year does not cancel but is 
196.25  available in the second year. 
196.26     Sec. 19.  [APPROPRIATIONS; FARIBAULT ACADEMIES.] 
196.27     The sums indicated in this section are appropriated from 
196.28  the general fund to the Faribault academies for the deaf and the 
196.29  blind for the fiscal years designated:  
196.30       $10,761,000    .....     2002 
196.31       $10,966,000    .....     2003 
196.32     Any balance in the first year does not cancel but is 
196.33  available in the second year. 
196.34     Sec. 20.  [INSTRUCTION TO REVISOR.] 
196.35     In the next and subsequent editions of Minnesota Statutes, 
196.36  the revisor of statutes shall substitute the term "board of 
197.1   education leadership" for the term "commissioner" or 
197.2   "commissioner of children, families, and learning" in the 
197.3   following sections of Minnesota Statutes:  122A.18, subdivisions 
197.4   3, 6, and 8; 122A.20, subdivision 1; 122A.23, subdivision 1; 
197.5   122A.27, subdivisions 1, 4, and 5; 123A.21; 123B.03, subdivision 
197.6   1; and 125A.67, subdivision 2. 
197.7                              ARTICLE 11 
197.8                         TECHNICAL AMENDMENTS
197.9      Section 1.  Minnesota Statutes 2000, section 122A.26, 
197.10  subdivision 3, is amended to read: 
197.11     Subd. 3.  [ENGLISH AS A SECOND LANGUAGE.] Notwithstanding 
197.12  subdivision 2, a person who possesses a bachelor's or master's 
197.13  degree in English as a second language, applied linguistics, or 
197.14  bilingual education, or who possesses a related degree as 
197.15  approved by the commissioner, shall be permitted to teach 
197.16  English as a second language in an adult basic education program 
197.17  that receives funding under section 124D.53 124D.531.  
197.18     Sec. 2.  Minnesota Statutes 2000, section 124D.11, 
197.19  subdivision 5, is amended to read: 
197.20     Subd. 5.  [SPECIAL EDUCATION AID.] Except as provided in 
197.21  subdivision 2, special education aid must be paid to a charter 
197.22  school according to section 125A.76, as though it were a school 
197.23  district.  The charter school may charge tuition to the district 
197.24  of residence as provided in section 125A.11.  The charter school 
197.25  shall allocate its special education levy equalization revenue 
197.26  to the resident districts of the pupils attending the charter 
197.27  school.  The districts of residence shall levy as though they 
197.28  were participating in a cooperative, as provided in section 
197.29  125A.77, subdivision 3. 
197.30     Sec. 3.  Minnesota Statutes 2000, section 124D.454, 
197.31  subdivision 11, is amended to read: 
197.32     Subd. 11.  [REVENUE ALLOCATION FROM COOPERATIVE CENTERS AND 
197.33  INTERMEDIATE DISTRICTS.] For purposes of this section and 
197.34  section 125A.77, a cooperative center or an intermediate 
197.35  district must allocate its approved expenditures for transition 
197.36  programs for children with a disability among participating 
198.1   school districts.  Aid for transition programs for children with 
198.2   a disability for services provided by a cooperative or 
198.3   intermediate district shall be paid to the participating 
198.4   districts.  
198.5      Sec. 4.  Minnesota Statutes 2000, section 125A.17, is 
198.6   amended to read: 
198.7      125A.17 [LEGAL RESIDENCE OF A CHILD WITH A DISABILITY 
198.8   PLACED IN A FOSTER FACILITY.] 
198.9      The legal residence of a child with a disability placed in 
198.10  a foster facility for care and treatment is the district in 
198.11  which the child resides when: 
198.12     (1) parental rights have been terminated by court order; 
198.13     (2) the parent or guardian is not living within the state; 
198.14     (3) no other district residence can be established; or 
198.15     (4) the parent or guardian having legal custody of the 
198.16  child is an inmate of a Minnesota correctional facility or is a 
198.17  resident of a halfway house under the supervision of the 
198.18  commissioner of corrections; 
198.19  is the district in which the child resides.  The school board of 
198.20  the district of residence must provide the same educational 
198.21  program for the child as it provides for all resident children 
198.22  with a disability in the district.  
198.23     Sec. 5.  Minnesota Statutes 2000, section 126C.17, 
198.24  subdivision 6, is amended to read: 
198.25     Subd. 6.  [REFERENDUM EQUALIZATION LEVY.] (a) A district's 
198.26  referendum equalization levy for a referendum levied against the 
198.27  referendum market value of all taxable property as defined in 
198.28  section 126C.01, subdivision 3, equals the district's referendum 
198.29  equalization revenue times the lesser of one or the ratio of the 
198.30  district's referendum market value per resident marginal cost 
198.31  pupil unit to $476,000. 
198.32     (b) A district's referendum equalization levy for a 
198.33  referendum levied against the net tax capacity of all taxable 
198.34  property equals the district's referendum equalization revenue 
198.35  times the lesser of one or the ratio of the district's adjusted 
198.36  net tax capacity per resident marginal cost pupil unit to $8,404.
199.1      Sec. 6.  Minnesota Statutes 2000, section 127A.41, 
199.2   subdivision 8, is amended to read: 
199.3      Subd. 8.  [APPROPRIATION TRANSFERS.] If a direct 
199.4   appropriation from the general fund to the department for any 
199.5   education aid or grant authorized in this chapter and chapters 
199.6   122A, 123A, 123B, 124D, 126C, and 134, excluding appropriations 
199.7   under sections 124D.135, 124D.16, 124D.20, 124D.21, 124D.22, 
199.8   124D.52, 124D.53 124D.531, 124D.54, 124D.55, and 124D.56, 
199.9   exceeds the amount required, the commissioner may transfer the 
199.10  excess to any education aid or grant appropriation that is 
199.11  insufficient.  However, section 126C.20 applies to a deficiency 
199.12  in the direct appropriation for general education aid.  Excess 
199.13  appropriations must be allocated proportionately among aids or 
199.14  grants that have insufficient appropriations.  The commissioner 
199.15  of finance shall make the necessary transfers among 
199.16  appropriations according to the determinations of the 
199.17  commissioner.  If the amount of the direct appropriation for the 
199.18  aid or grant plus the amount transferred according to this 
199.19  subdivision is insufficient, the commissioner shall prorate the 
199.20  available amount among eligible districts.  The state is not 
199.21  obligated for any additional amounts.  
199.22     Sec. 7.  Minnesota Statutes 2000, section 127A.41, 
199.23  subdivision 9, is amended to read: 
199.24     Subd. 9.  [APPROPRIATION TRANSFERS FOR COMMUNITY EDUCATION 
199.25  PROGRAMS.] If a direct appropriation from the general fund to 
199.26  the department of children, families, and learning for an 
199.27  education aid or grant authorized under section 124D.135, 
199.28  124D.16, 124D.20, 124D.21, 124D.22, 124D.52, 124D.53 124D.531, 
199.29  124D.54, 124D.55, or 124D.56 exceeds the amount required, the 
199.30  commissioner of children, families, and learning may transfer 
199.31  the excess to any education aid or grant appropriation that is 
199.32  insufficiently funded under these sections. Excess 
199.33  appropriations shall be allocated proportionately among aids or 
199.34  grants that have insufficient appropriations.  The commissioner 
199.35  of finance shall make the necessary transfers among 
199.36  appropriations according to the determinations of the 
200.1   commissioner of children, families, and learning.  If the amount 
200.2   of the direct appropriation for the aid or grant plus the amount 
200.3   transferred according to this subdivision is insufficient, the 
200.4   commissioner shall prorate the available amount among eligible 
200.5   districts.  The state is not obligated for any additional 
200.6   amounts. 
200.7      Sec. 8.  Laws 2000, chapter 489, article 7, section 15, 
200.8   subdivision 3, is amended to read: 
200.9      Subd. 3.  [COOPERATIVE SECONDARY FACILITY; PLANNING AND 
200.10  EXPENSES.] For a grant and administrative expenses to facilitate 
200.11  planning for a cooperative secondary facility under a joint 
200.12  powers agreement for school district Nos. 411, Balaton, 402, 
200.13  Hendricks, 403, Ivanhoe, 404, Lake Benton, 418, Russell, 584, 
200.14  Ruthton, and 409, Tyler: 
200.15         $100,000     .....     2001
200.16     This is a one-time appropriation. 
200.17     Sec. 9.  [REPEALER.] 
200.18     Laws 2000, chapter 254, section 30; and Laws 2000, chapter 
200.19  489, article 1, section 18, are repealed.