1.1                          A bill for an act
  1.2             relating to education; providing for kindergarten 
  1.3             through grade 12 education including general education 
  1.4             revenue; education excellence; special programs; 
  1.5             facilities and technology; nutrition, school 
  1.6             accounting, and other programs; deficiencies; state 
  1.7             agencies; and technical amendments; appropriating 
  1.8             money; amending Minnesota Statutes 2000, sections 
  1.9             16B.616, subdivision 4; 93.22; 120B.07; 120B.13, 
  1.10            subdivision 1; 120B.30, subdivision 1; 120B.35; 
  1.11            121A.41, subdivision 10; 121A.582; 122A.162; 122A.163; 
  1.12            122A.18, subdivisions 1, 2, 4; 122A.20, subdivision 2; 
  1.13            122A.21; 122A.24, subdivision 3; 122A.25, by adding a 
  1.14            subdivision; 122A.26, subdivision 3; 122A.31; 122A.40, 
  1.15            subdivision 7, by adding a subdivision; 122A.41, 
  1.16            subdivisions 4, 7, 13, by adding subdivisions; 
  1.17            122A.61, subdivision 1; 123B.03, subdivision 3; 
  1.18            123B.143, subdivision 1; 123B.36, subdivision 1; 
  1.19            123B.37, subdivision 1; 123B.42, subdivision 3; 
  1.20            123B.44, subdivision 6; 123B.54; 123B.57, subdivisions 
  1.21            3, 6, 8; 123B.59, subdivision 1; 123B.71, subdivisions 
  1.22            1, 4, 8, 9; 123B.75, subdivision 5, by adding a 
  1.23            subdivision; 123B.80, subdivision 1; 123B.88, 
  1.24            subdivision 1; 124D.03, subdivision 4; 124D.10, 
  1.25            subdivisions 4, 8, 15, by adding subdivisions; 
  1.26            124D.11, subdivisions 4, 5, 9; 124D.128, subdivisions 
  1.27            1, 2, 3, 6, by adding a subdivision; 124D.454, 
  1.28            subdivision 11; 124D.59, subdivision 2; 124D.65, 
  1.29            subdivision 5; 124D.69, subdivision 1; 124D.74, 
  1.30            subdivisions 1, 2, 3, 4, 6; 124D.75, subdivision 6; 
  1.31            124D.76; 124D.78, subdivision 1; 124D.81, subdivisions 
  1.32            1, 3, 5, 6, 7; 124D.84, subdivision 1; 124D.86, 
  1.33            subdivision 3; 124D.892, subdivisions 1, 3, as 
  1.34            amended; 124D.894; 125A.023, subdivision 4; 125A.027, 
  1.35            by adding a subdivision; 125A.08; 125A.09, subdivision 
  1.36            3; 125A.11, subdivision 3; 125A.17; 125A.27, 
  1.37            subdivision 15; 125A.515; 125A.76, subdivisions 1, 2; 
  1.38            125B.21; 125B.25, subdivisions 1, 2, 6; 126C.05, 
  1.39            subdivisions 1, 15, by adding a subdivision; 126C.10, 
  1.40            subdivisions 1, 2, 4, 9, 13, 24, 25; 126C.12, 
  1.41            subdivisions 2, 3, 4, 5, by adding a subdivision; 
  1.42            126C.15, subdivisions 1, 2, 5; 126C.17, subdivisions 
  1.43            6, 9, 10, 11; 126C.23, subdivision 5; 126C.40, 
  1.44            subdivision 1; 126C.41, subdivisions 2, 3; 126C.43, 
  1.45            subdivision 3; 126C.63, subdivision 8; 126C.69, 
  1.46            subdivisions 2, 9; 127A.41, subdivisions 5, 8, 9; 
  2.1             127A.42; 127A.45, subdivisions 9, 11, 12, by adding a 
  2.2             subdivision; 127A.50, subdivision 2; 127A.51; 129C.10, 
  2.3             subdivision 3; 171.02, subdivision 2a; 179A.20, by 
  2.4             adding a subdivision; 260A.01; 260C.163, subdivision 
  2.5             11; 475.61, subdivision 3; 626.556, subdivision 2; 
  2.6             Laws 1992, chapter 499, article 7, section 31, as 
  2.7             amended; Laws 2000, chapter 489, article 2, section 
  2.8             34; Laws 2000, chapter 489, article 2, section 36; 
  2.9             Laws 2000, chapter 489, article 2, section 37, 
  2.10            subdivision 3; Laws 2000, chapter 489, article 2, 
  2.11            section 39, subdivision 2; Laws 2000, chapter 489, 
  2.12            article 3, section 24; Laws 2000, chapter 489, article 
  2.13            3, section 25, subdivision 5; Laws 2000, chapter 489, 
  2.14            article 5, section 21; Laws 2000, chapter 489, article 
  2.15            7, section 15, subdivision 3; proposing coding for new 
  2.16            law in Minnesota Statutes, chapters 93; 120A; 120B; 
  2.17            122A; 124D; 126C; repealing Minnesota Statutes 2000, 
  2.18            sections 123B.71, subdivisions 3, 10; 124D.07; 
  2.19            124D.1155; 124D.128, subdivision 7; 124D.32; 124D.85; 
  2.20            126C.01, subdivision 10; 126C.10, subdivisions 12, 23; 
  2.21            126C.16, subdivision 2; 126C.17, subdivision 12; 
  2.22            126C.18; 126C.22; 126C.30; 126C.31; 126C.32; 126C.33; 
  2.23            126C.34; 126C.35; 126C.36; 126C.42, subdivisions 2, 3; 
  2.24            126C.47; 127A.44; 135A.081; Laws 2000, chapter 254, 
  2.25            section 30; Laws 2000, chapter 489, article 1, section 
  2.26            18; Minnesota Rules, part 3501.0280, subpart 3. 
  2.27  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  2.28                             ARTICLE 1
  2.29                     GENERAL EDUCATION REVENUE
  2.30     Section 1.  Minnesota Statutes 2000, section 93.22, is 
  2.31  amended to read: 
  2.32     93.22 [DISPOSITION OF PAYMENTS.] 
  2.33     Subdivision 1.  [GENERALLY.] (a) All payments under 
  2.34  sections 93.14 to 93.285 shall be made to the department of 
  2.35  natural resources and shall be credited as follows: according to 
  2.36  this section.  
  2.37     (1) (a) If the lands or minerals and mineral rights covered 
  2.38  by a lease are held by the state by virtue of an act of 
  2.39  Congress, payments made under the lease shall be credited to the 
  2.40  permanent fund of the class of land to which the leased premises 
  2.41  belong;. 
  2.42     (2) (b) If a lease covers the bed of navigable waters, 
  2.43  payments made under the lease shall be credited to the permanent 
  2.44  school fund of the state; and. 
  2.45     (3) (c) If the lands or minerals and mineral rights covered 
  2.46  by a lease are held by the state in trust for the taxing 
  2.47  districts, payments made under the lease shall be distributed 
  2.48  annually on the first day of September as follows: 
  3.1      (i) (1) 20 percent to the general fund; and 
  3.2      (ii) (2) 80 percent to the respective counties in which the 
  3.3   lands lie, to be apportioned among the taxing districts 
  3.4   interested therein as follows:  county, three-ninths; town or 
  3.5   city, two-ninths; and school district, four-ninths. 
  3.6      (b) (d) Except as provided under paragraph (a) this section 
  3.7   and except where the disposition of payments may be otherwise 
  3.8   directed by law, all payments shall be paid into the general 
  3.9   fund of the state. 
  3.10     Subd. 2.  [TACONITE LEASE REVENUE.] Notwithstanding 
  3.11  subdivision 1, from July 1, 2001, to June 30, 2006, payments 
  3.12  made under state taconite leases shall be distributed as follows:
  3.13     (1) if the lands or minerals and mineral rights covered by 
  3.14  a lease are held by the state by virtue of a school, swamp, or 
  3.15  internal improvement land grant of Congress, payments made under 
  3.16  the lease shall be distributed annually on September 1 to the 
  3.17  school fund mineral lease suspense account created under section 
  3.18  93.223, subdivision 1; and 
  3.19     (2) if the lands or minerals and mineral rights covered by 
  3.20  a lease are held by the state by virtue of a university land 
  3.21  grant of Congress, payments made under the lease shall be 
  3.22  distributed annually on September 1 to the university mineral 
  3.23  lease suspense account created under section 93.223, subdivision 
  3.24  2. 
  3.25     Sec. 2.  [93.223] [MINERAL LEASE SUSPENSE ACCOUNTS.] 
  3.26     Subdivision 1.  [SCHOOL FUND MINERAL LEASE SUSPENSE 
  3.27  ACCOUNT.] The school fund mineral lease suspense account is 
  3.28  created as an account in the state treasury for mineral lease 
  3.29  money deposited according to section 93.22, subdivision 2, 
  3.30  clause (1).  Interest earned on money in the account accrues to 
  3.31  the account.  After money is annually deposited in the account 
  3.32  under section 93.22, subdivision 2, clause (1), the commissioner 
  3.33  of finance shall certify 20 percent of the payments made during 
  3.34  the preceding fiscal year as costs for the administration and 
  3.35  management of mineral leases on permanent school fund lands.  
  3.36  The commissioner of finance shall transfer the certified amount 
  4.1   from the school fund mineral lease suspense account to the 
  4.2   general fund.  The balance remaining in the account after the 
  4.3   certification is annually transferred to the permanent school 
  4.4   fund. 
  4.5      Subd. 2.  [UNIVERSITY FUND MINERAL LEASE SUSPENSE ACCOUNT.] 
  4.6   The university fund mineral lease suspense account is created as 
  4.7   an account in the state treasury for mineral lease money 
  4.8   deposited according to section 93.22, subdivision 2, clause (2). 
  4.9   Interest earned on money in the account accrues to the account.  
  4.10  After money is annually deposited in the account under section 
  4.11  93.22, subdivision 2, clause (2), the commissioner of finance 
  4.12  shall certify 20 percent of the payments made during the 
  4.13  preceding fiscal year as costs for the administration and 
  4.14  management of mineral leases on permanent university fund 
  4.15  lands.  The commissioner of finance shall transfer the certified 
  4.16  amount from the university fund mineral lease account to the 
  4.17  general fund.  The balance remaining in the account is annually 
  4.18  transferred to the permanent university fund. 
  4.19     Sec. 3.  [93.2235] [TACONITE MINING GRANTS; 
  4.20  APPROPRIATIONS.] 
  4.21     Subdivision 1.  [COMMISSIONER.] The commissioner shall 
  4.22  establish a program to award grants to taconite mining companies 
  4.23  for: 
  4.24     (1) taconite pellet product improvements; 
  4.25     (2) value-added production of taconite iron ore; or 
  4.26     (3) cost-savings production improvements at Minnesota 
  4.27  taconite plants. 
  4.28     An amount equal to the sum of money transferred to the 
  4.29  general fund under section 93.223, subdivision 1, is annually 
  4.30  appropriated from the general fund to the commissioner for the 
  4.31  purposes of this section. 
  4.32     Subd. 2.  [COLERAINE LABORATORY.] The director of the 
  4.33  Coleraine laboratory shall establish a program to award grants 
  4.34  for the purpose of transferring technology from the Coleraine 
  4.35  laboratory to taconite mining companies for: 
  4.36     (1) taconite pellet product improvements; 
  5.1      (2) value-added production of taconite iron ore; or 
  5.2      (3) cost-savings production improvements at Minnesota 
  5.3   taconite plants.  
  5.4      An amount equal to the sum of money transferred to the 
  5.5   general fund under section 92.223, subdivision 2, is annually 
  5.6   appropriated from the general fund to the board of regents of 
  5.7   the University of Minnesota for the purposes of this section. 
  5.8      Sec. 4.  Minnesota Statutes 2000, section 120B.07, is 
  5.9   amended to read: 
  5.10     120B.07 [EARLY GRADUATION.] 
  5.11     Notwithstanding any law to the contrary, any secondary 
  5.12  school student who has completed all required courses or 
  5.13  standards may, with the approval of the student, the student's 
  5.14  parent or guardian, and local school officials, graduate before 
  5.15  the completion of the school year.  General education revenue 
  5.16  attributable to the student must be paid as though the student 
  5.17  was in attendance for the entire year. 
  5.18     Sec. 5.  Minnesota Statutes 2000, section 123B.143, 
  5.19  subdivision 1, is amended to read: 
  5.20     Subdivision 1.  [CONTRACT; DUTIES.] All districts 
  5.21  maintaining a classified secondary school must employ a 
  5.22  superintendent who shall be an ex officio nonvoting member of 
  5.23  the school board.  The authority for selection and employment of 
  5.24  a superintendent must be vested in the board in all cases.  An 
  5.25  individual employed by a board as a superintendent shall have an 
  5.26  initial employment contract for a period of time no longer than 
  5.27  three years from the date of employment.  Any subsequent 
  5.28  employment contract must not exceed a period of three years.  A 
  5.29  board, at its discretion, may or may not renew an employment 
  5.30  contract.  A board must not, by action or inaction, extend the 
  5.31  duration of an existing employment contract.  Beginning 365 days 
  5.32  prior to the expiration date of an existing employment contract, 
  5.33  a board may negotiate and enter into a subsequent employment 
  5.34  contract to take effect upon the expiration of the existing 
  5.35  contract.  A subsequent contract must be contingent upon the 
  5.36  employee completing the terms of an existing contract.  If a 
  6.1   contract between a board and a superintendent is terminated 
  6.2   prior to the date specified in the contract, the board may not 
  6.3   enter into another superintendent contract with that same 
  6.4   individual that has a term that extends beyond the date 
  6.5   specified in the terminated contract.  A board may terminate a 
  6.6   superintendent during the term of an employment contract for any 
  6.7   of the grounds specified in section 122A.40, subdivision 9 or 13.
  6.8   A superintendent shall not rely upon an employment contract with 
  6.9   a board to assert any other continuing contract rights in the 
  6.10  position of superintendent under section 122A.40.  
  6.11  Notwithstanding the provisions of sections 122A.40, subdivision 
  6.12  10 or 11, 123A.32, 123A.75, or any other law to the contrary, no 
  6.13  individual shall have a right to employment as a superintendent 
  6.14  based on order of employment in any district.  If two or more 
  6.15  districts enter into an agreement for the purchase or sharing of 
  6.16  the services of a superintendent, the contracting districts have 
  6.17  the absolute right to select one of the individuals employed to 
  6.18  serve as superintendent in one of the contracting districts and 
  6.19  no individual has a right to employment as the superintendent to 
  6.20  provide all or part of the services based on order of employment 
  6.21  in a contracting district. The superintendent of a district 
  6.22  shall perform the following:  
  6.23     (1) visit and supervise the schools in the district, report 
  6.24  and make recommendations about their condition when advisable or 
  6.25  on request by the board; 
  6.26     (2) recommend to the board employment and dismissal of 
  6.27  teachers; 
  6.28     (3) superintend school grading practices and examinations 
  6.29  for promotions; 
  6.30     (4) make reports required by the commissioner; 
  6.31     (5) by January 10, submit an annual report to the 
  6.32  commissioner in a manner prescribed by the commissioner, in 
  6.33  consultation with school districts, identifying the expenditures 
  6.34  that the district requires to ensure an 80 percent and a 90 
  6.35  percent student passage rate on the basic standards test taken 
  6.36  in the eighth grade, identifying the highest student passage 
  7.1   rate the district expects it will be able to attain on the basic 
  7.2   standards test by grade 12, the amount of expenditures that the 
  7.3   district requires to ensure a 99 percent attain the targeted 
  7.4   student passage rate on the basic standards test by 12th grade, 
  7.5   and how much the district is cross-subsidizing programs with 
  7.6   special education, basic skills, and general education revenue; 
  7.7   and 
  7.8      (6) perform other duties prescribed by the board. 
  7.9      Sec. 6.  Minnesota Statutes 2000, section 123B.36, 
  7.10  subdivision 1, is amended to read: 
  7.11     Subdivision 1.  [SCHOOL BOARDS MAY REQUIRE FEES.] (a) For 
  7.12  purposes of this subdivision, "home school" means a home school 
  7.13  as defined in sections 120A.22 and 120A.24 with five or fewer 
  7.14  students receiving instruction.  
  7.15     (b) A school board is authorized to require payment of fees 
  7.16  in the following areas: 
  7.17     (1) in any program where the resultant product, in excess 
  7.18  of minimum requirements and at the pupil's option, becomes the 
  7.19  personal property of the pupil; 
  7.20     (2) admission fees or charges for extra curricular 
  7.21  activities, where attendance is optional and where the admission 
  7.22  fees or charges a student must pay to attend or participate in 
  7.23  an extracurricular activity is the same for all students, 
  7.24  regardless of whether the student is enrolled in a public or a 
  7.25  home school; 
  7.26     (3) a security deposit for the return of materials, 
  7.27  supplies, or equipment; 
  7.28     (4) personal physical education and athletic equipment and 
  7.29  apparel, although any pupil may personally provide it if it 
  7.30  meets reasonable requirements and standards relating to health 
  7.31  and safety established by the board; 
  7.32     (5) items of personal use or products that a student has an 
  7.33  option to purchase such as student publications, class rings, 
  7.34  annuals, and graduation announcements; 
  7.35     (6) fees specifically permitted by any other statute, 
  7.36  including but not limited to section 171.05, subdivision 2; 
  8.1   provided (i) driver education fees do not exceed the actual cost 
  8.2   to the school and school district of providing driver education, 
  8.3   and (ii) the driver education courses are open to enrollment to 
  8.4   persons between the ages of 15 and 18 who reside or attend 
  8.5   school in the school district; 
  8.6      (7) field trips considered supplementary to a district 
  8.7   educational program; 
  8.8      (8) any authorized voluntary student health and accident 
  8.9   benefit plan; 
  8.10     (9) for the use of musical instruments owned or rented by 
  8.11  the district, a reasonable rental fee not to exceed either the 
  8.12  rental cost to the district or the annual depreciation plus the 
  8.13  actual annual maintenance cost for each instrument; 
  8.14     (10) transportation of pupils to and from extra curricular 
  8.15  activities conducted at locations other than school, where 
  8.16  attendance is optional; 
  8.17     (11) transportation to and from school of pupils to and 
  8.18  living within two miles from school for which aid for fiscal 
  8.19  year 1996 is not authorized under Minnesota Statutes 1994, 
  8.20  section 124.223, subdivision 1, and for which levy for fiscal 
  8.21  year 1996 is not authorized under Minnesota Statutes 1994, 
  8.22  section 124.226, subdivision 5, and all other transportation 
  8.23  services not required by law.  If a district charging charges 
  8.24  fees for transportation of pupils establishes, it must establish 
  8.25  guidelines for that transportation to ensure that no pupil is 
  8.26  denied transportation solely because of inability to pay; 
  8.27     (12) motorcycle classroom education courses conducted 
  8.28  outside of regular school hours; provided the charge must not 
  8.29  exceed the actual cost of these courses to the school district; 
  8.30     (13) transportation to and from post-secondary institutions 
  8.31  for pupils enrolled under the post-secondary enrollment options 
  8.32  program under section 123B.88, subdivision 22.  Fees collected 
  8.33  for this service must be reasonable and must be used to reduce 
  8.34  the cost of operating the route.  Families who qualify for 
  8.35  mileage reimbursement under section 124D.09, subdivision 22, may 
  8.36  use their state mileage reimbursement to pay this fee.  If no 
  9.1   fee is charged, districts must allocate costs based on the 
  9.2   number of pupils riding the route. 
  9.3      Sec. 7.  Minnesota Statutes 2000, section 123B.37, 
  9.4   subdivision 1, is amended to read: 
  9.5      Subdivision 1.  [BOARDS SHALL NOT CHARGE CERTAIN FEES.] (a) 
  9.6   A board is not authorized to charge fees in the following areas: 
  9.7      (1) textbooks, workbooks, art materials, laboratory 
  9.8   supplies, towels; 
  9.9      (2) supplies necessary for participation in any 
  9.10  instructional course except as authorized in sections 123B.36 
  9.11  and 123B.38; 
  9.12     (3) field trips that are required as a part of a basic 
  9.13  education program or course; 
  9.14     (4) graduation caps, gowns, any specific form of dress 
  9.15  necessary for any educational program, and diplomas; 
  9.16     (5) instructional costs for necessary school personnel 
  9.17  employed in any course or educational program required for 
  9.18  graduation; 
  9.19     (6) library books required to be utilized for any 
  9.20  educational course or program; 
  9.21     (7) admission fees, dues, or fees for any activity the 
  9.22  pupil is required to attend; 
  9.23     (8) any admission or examination cost for any required 
  9.24  educational course or program; 
  9.25     (9) locker rentals; 
  9.26     (10) transportation to and from school of pupils (i) for 
  9.27  which state transportation aid for fiscal year 1996 is 
  9.28  authorized pursuant to Minnesota Statutes 1994, section 124.223, 
  9.29  or (ii) for which a levy for fiscal year 1996 is authorized 
  9.30  under Minnesota Statutes 1994, section 124.226, subdivision 
  9.31  5 living two miles or more from school. 
  9.32     (b) Notwithstanding paragraph (a), clauses (1) and (6), a 
  9.33  board may charge fees for textbooks, workbooks, and library 
  9.34  books, lost or destroyed by students.  The board must annually 
  9.35  notify parents or guardians and students about its policy to 
  9.36  charge a fee under this paragraph. 
 10.1      Sec. 8.  Minnesota Statutes 2000, section 123B.42, 
 10.2   subdivision 3, is amended to read: 
 10.3      Subd. 3.  [COST; LIMITATION.] (a) The cost per pupil of the 
 10.4   textbooks, individualized instructional or cooperative learning 
 10.5   materials, and standardized tests provided for in this section 
 10.6   for each school year must not exceed the statewide average 
 10.7   expenditure per pupil, adjusted pursuant to clause (b), by the 
 10.8   Minnesota public elementary and secondary schools for textbooks, 
 10.9   individualized instructional materials and standardized tests as 
 10.10  computed and established by the department by March February 1 
 10.11  of the preceding school year from the most recent public school 
 10.12  year data then available. 
 10.13     (b) The cost computed in clause (a) shall be increased by 
 10.14  an inflation adjustment equal to the percent of increase in the 
 10.15  formula allowance, pursuant to section 126C.10, subdivision 2, 
 10.16  from the second preceding school year to the current school year.
 10.17     (c) The commissioner shall allot to the districts or 
 10.18  intermediary service areas the total cost for each school year 
 10.19  of providing or loaning the textbooks, individualized 
 10.20  instructional or cooperative learning materials, and 
 10.21  standardized tests for the pupils in each nonpublic school.  The 
 10.22  allotment shall not exceed the product of the statewide average 
 10.23  expenditure per pupil, according to clause (a), adjusted 
 10.24  pursuant to clause (b), multiplied by the number of nonpublic 
 10.25  school pupils who make requests pursuant to this section and who 
 10.26  are enrolled as of September 15 of the current school year. 
 10.27     Sec. 9.  Minnesota Statutes 2000, section 123B.44, 
 10.28  subdivision 6, is amended to read: 
 10.29     Subd. 6.  [COMPUTATION OF MAXIMUM ALLOTMENTS.] For purposes 
 10.30  of computing maximum allotments for each school year pursuant to 
 10.31  this section, the average public school expenditure per pupil 
 10.32  for health services and the average public school expenditure 
 10.33  per secondary pupil for guidance and counseling services shall 
 10.34  be computed and established by the department by March February 
 10.35  1 of the preceding school year from the most recent public 
 10.36  school year data then available. 
 11.1      Sec. 10.  Minnesota Statutes 2000, section 123B.75, 
 11.2   subdivision 5, is amended to read: 
 11.3      Subd. 5.  [LEVY RECOGNITION.] (a) "School district tax 
 11.4   settlement revenue" means the current, delinquent, and 
 11.5   manufactured home property tax receipts collected by the county 
 11.6   and distributed to the school district. 
 11.7      (b) In June of each year 2001, the school district must 
 11.8   recognize as revenue, in the fund for which the levy was made, 
 11.9   the lesser of:  
 11.10     (1) the sum of May, June, and July school district tax 
 11.11  settlement revenue received in that calendar year plus general 
 11.12  education aid according to section 126C.13, subdivision 4, 
 11.13  received in July and August of that calendar year; or 
 11.14     (2) the sum of: 
 11.15     (i) 31 percent of the referendum levy certified in the 
 11.16  prior calendar year according to section 126C.17, subdivision 9; 
 11.17  plus 
 11.18     (ii) the entire amount of the levy certified in the prior 
 11.19  calendar year according to sections 124D.86, subdivision 4, for 
 11.20  school districts receiving revenue under 124D.86, subdivision 3, 
 11.21  clauses (1), (2), and (3); 126C.41, subdivisions 1, 2, and 3, 
 11.22  paragraphs (4), (5), and (6); 126C.43, subdivision 2; and 
 11.23  126C.48, subdivision 6.  
 11.24     (c) For fiscal year 2002 and later years, in June of each 
 11.25  year, the school district must recognize as revenue, in the fund 
 11.26  for which the levy was made, the lesser of: 
 11.27     (1) the sum of May, June, and July school district tax 
 11.28  settlement revenue received in that calendar year, plus general 
 11.29  education aid according to section 126C.13, subdivision 4, 
 11.30  received in July and August of that calendar year; or 
 11.31     (2) the sum of: 
 11.32     (i) 31 percent of the referendum levy certified according 
 11.33  to section 126C.17, in calendar year 2000; plus 
 11.34     (ii) the entire amount of the levy certified in the prior 
 11.35  calendar year according to section 124D.86, subdivision 4, for 
 11.36  school districts receiving revenue under sections 124D.86, 
 12.1   subdivision 3, clauses (1), (2), and (3); 126C.41, subdivisions 
 12.2   1, 2, and 3, paragraphs (4), (5), and (6); 126C.43, subdivision 
 12.3   2; and 126C.48, subdivision 6. 
 12.4      <b>[EFFECTIVE DATE.]</b> This section is effective June 30, 2001. 
 12.5      Sec. 11.  Minnesota Statutes 2000, section 123B.75, is 
 12.6   amended by adding a subdivision to read: 
 12.7      Subd. 6b.  [GENERAL EDUCATION AID.] If the amount to be 
 12.8   recognized as revenue under subdivision 5 exceeds the May, June, 
 12.9   and July school district tax settlement revenue received in that 
 12.10  calendar year, the district must recognize an amount of general 
 12.11  education aid equal to the difference between the total amount 
 12.12  to be recognized as revenue under subdivision 5, and the May, 
 12.13  June, and July school district tax settlement revenue received 
 12.14  in that calendar year as revenue in the previous fiscal year. 
 12.15     <b>[EFFECTIVE DATE.]</b> This section is effective June 30, 2001. 
 12.16     Sec. 12.  Minnesota Statutes 2000, section 123B.88, 
 12.17  subdivision 1, is amended to read: 
 12.18     Subdivision 1.  [PROVIDING TRANSPORTATION.] The board may 
 12.19  provide for the transportation of pupils to and from school and 
 12.20  for any other purpose.  The board may also provide for the 
 12.21  transportation of pupils to schools in other districts for 
 12.22  grades and departments not maintained in the district, including 
 12.23  high school, at the expense of the district, when funds are 
 12.24  available therefor and if agreeable to the district to which it 
 12.25  is proposed to transport the pupils, for the whole or a part of 
 12.26  the school year, as it may deem advisable, and subject to its 
 12.27  rules.  In any district, the board must arrange for the 
 12.28  attendance of all pupils living two miles or more from the 
 12.29  school, except pupils whose transportation privileges have been 
 12.30  voluntarily surrendered under subdivision 2, or whose privileges 
 12.31  have been revoked under section 123B.91, subdivision 1, clause 
 12.32  (6), or 123B.90, subdivision 2.  The district may provide for 
 12.33  the transportation of or the boarding and rooming of the pupils 
 12.34  who may be more economically and conveniently provided for by 
 12.35  that means.  Arrangements for attendance may include a 
 12.36  requirement that parents or guardians request transportation 
 13.1   before it is provided.  The board must provide transportation to 
 13.2   and from the home of a child with a disability not yet enrolled 
 13.3   in kindergarten when special instruction and services under 
 13.4   sections 125A.03 to 125A.24, 125A.26 to 125A.48, and 125A.65 are 
 13.5   provided in a location other than in the child's home.  When 
 13.6   transportation is provided, scheduling of routes, establishment 
 13.7   of the location of bus stops, manner and method of 
 13.8   transportation, control and discipline of school children, the 
 13.9   determination of fees, and any other matter relating thereto 
 13.10  must be within the sole discretion, control, and management of 
 13.11  the board.  The district may provide for the transportation of 
 13.12  pupils or expend a reasonable amount for room and board of 
 13.13  pupils whose attendance at school can more economically and 
 13.14  conveniently be provided for by that means or who attend school 
 13.15  in a building rented or leased by a district within the confines 
 13.16  of an adjacent district. 
 13.17     Sec. 13.  Minnesota Statutes 2000, section 124D.69, 
 13.18  subdivision 1, is amended to read: 
 13.19     Subdivision 1.  [AID.] If a pupil enrolls in an alternative 
 13.20  program, eligible under section 124D.68, subdivision 3, 
 13.21  paragraph (d), or subdivision 4, operated by a private 
 13.22  organization that has contracted with a school district to 
 13.23  provide educational services for eligible pupils under section 
 13.24  124D.68, subdivision 2, the district contracting with the 
 13.25  private organization must reimburse the provider an amount equal 
 13.26  to at least 90 95 percent of the district's average general 
 13.27  education less basic skills revenue per pupil unit times the 
 13.28  number of pupil units for pupils attending the program.  Basic 
 13.29  skills revenue shall be paid according to section 126C.10, 
 13.30  subdivision 4.  Compensatory revenue must be allocated according 
 13.31  to section 126C.15, subdivision 2.  For a pupil attending the 
 13.32  program part time, the revenue paid to the program must be 
 13.33  reduced proportionately, according to the amount of time the 
 13.34  pupil attends the program, and revenue paid to the district 
 13.35  shall be reduced accordingly.  Pupils for whom a district 
 13.36  provides reimbursement may not be counted by the district for 
 14.1   any purpose other than computation of general education 
 14.2   revenue.  If payment is made to a district or program for a 
 14.3   pupil under this section, the department must not make a payment 
 14.4   for the same pupil under section 124D.68, subdivision 9. 
 14.5      <b>[EFFECTIVE DATE.]</b> This section is effective for revenue for 
 14.6   fiscal years 2002 and later. 
 14.7      Sec. 14.  Minnesota Statutes 2000, section 126C.05, 
 14.8   subdivision 1, is amended to read: 
 14.9      Subdivision 1.  [PUPIL UNIT.] Pupil units for each 
 14.10  Minnesota resident pupil in average daily membership enrolled in 
 14.11  the district of residence, in another district under sections 
 14.12  123A.05 to 123A.08, 124D.03, 124D.06, 124D.07, 124D.08, or 
 14.13  124D.68; in a charter school under section 124D.10; or for whom 
 14.14  the resident district pays tuition under section 123A.18, 
 14.15  123A.22, 123A.30, 123A.32, 123A.44, 123A.488, 123B.88, 
 14.16  subdivision 4, 124D.04, 124D.05, 125A.03 to 125A.24, 125A.51, or 
 14.17  125A.65, shall be counted according to this subdivision.  
 14.18     (a) A prekindergarten pupil with a disability who is 
 14.19  enrolled in a program approved by the commissioner and has an 
 14.20  individual education plan is counted as the ratio of the number 
 14.21  of hours of assessment and education service to 825 times 1.25 
 14.22  with a minimum average daily membership of 0.28, but not more 
 14.23  than 1.25 pupil units. 
 14.24     (b) A prekindergarten pupil who is assessed but determined 
 14.25  not to be handicapped is counted as the ratio of the number of 
 14.26  hours of assessment service to 825 times 1.25.  
 14.27     (c) A kindergarten pupil with a disability who is enrolled 
 14.28  in a program approved by the commissioner is counted as the 
 14.29  ratio of the number of hours of assessment and education 
 14.30  services required in the fiscal year by the pupil's individual 
 14.31  education program plan to 875, but not more than one. 
 14.32     (d) A kindergarten pupil who is not included in paragraph 
 14.33  (c) is counted as .557 of a pupil unit for fiscal year 2000 and 
 14.34  thereafter. 
 14.35     (e) A pupil who is in any of grades 1 to 3 is counted as 
 14.36  1.115 pupil units for fiscal year 2000 and thereafter. 
 15.1      (f) A pupil who is any of grades 4 to 6 is counted as 1.06 
 15.2   pupil units for fiscal year 1995 and thereafter. 
 15.3      (g) A pupil who is in any of grades 7 to 12 is counted as 
 15.4   1.3 pupil units.  
 15.5      (h) A pupil who is in the post-secondary enrollment options 
 15.6   program is counted as 1.3 pupil units.  
 15.7      Sec. 15.  Minnesota Statutes 2000, section 126C.10, 
 15.8   subdivision 1, is amended to read: 
 15.9      Subdivision 1.  [GENERAL EDUCATION REVENUE.] (a) For fiscal 
 15.10  year 2000 and thereafter 2002, the general education revenue for 
 15.11  each district equals the sum of the district's basic revenue, 
 15.12  basic skills revenue, training and experience revenue, secondary 
 15.13  sparsity revenue, elementary sparsity revenue, transportation 
 15.14  sparsity revenue, total operating capital revenue, equity 
 15.15  revenue, referendum offset adjustment, transition revenue, and 
 15.16  supplemental revenue. 
 15.17     (b) For fiscal year 2003 and later, the general education 
 15.18  revenue for each district equals the sum of the district's basic 
 15.19  revenue, basic skills revenue, training and experience revenue, 
 15.20  secondary sparsity revenue, elementary sparsity revenue, 
 15.21  transportation sparsity revenue, total operating capital 
 15.22  revenue, and equity revenue. 
 15.23     Sec. 16.  Minnesota Statutes 2000, section 126C.10, 
 15.24  subdivision 2, is amended to read: 
 15.25     Subd. 2.  [BASIC REVENUE.] The basic revenue for each 
 15.26  district equals the formula allowance times the adjusted 
 15.27  marginal cost pupil units for the school year.  The formula 
 15.28  allowance for fiscal year 1998 is $3,581.  The formula allowance 
 15.29  for fiscal year 1999 is $3,530.  The formula allowance for 
 15.30  fiscal year 2000 is $3,740.  The formula allowance for fiscal 
 15.31  year 2001 and subsequent fiscal years is $3,964.  The formula 
 15.32  allowance for fiscal year 2002 is $4,068.  The formula allowance 
 15.33  for fiscal year 2003 and subsequent years is $4,601. 
 15.34     Sec. 17.  Minnesota Statutes 2000, section 126C.10, 
 15.35  subdivision 4, is amended to read: 
 15.36     Subd. 4.  [BASIC SKILLS REVENUE.] (a) For fiscal year 1999 
 16.1   and thereafter 2002, a school district's basic skills revenue 
 16.2   equals the sum of: 
 16.3      (1) compensatory revenue under subdivision 3; plus 
 16.4      (2) limited English proficiency revenue according to 
 16.5   section 124D.65, subdivision 5; plus 
 16.6      (3) $190 times the limited English proficiency pupil units 
 16.7   according to section 126C.05, subdivision 17; plus 
 16.8      (4) $22.50 times the number of adjusted marginal cost pupil 
 16.9   units in kindergarten to grade 8. 
 16.10     (b) For fiscal year 2003, a school district's basic skills 
 16.11  revenue equals the sum of: 
 16.12     (1) compensatory revenue under subdivision 3; plus 
 16.13     (2) limited English proficiency revenue under section 
 16.14  124D.65, subdivision 5; plus 
 16.15     (3) $190 times the limited English proficiency pupil units 
 16.16  under section 126C.05, subdivision 17. 
 16.17     Sec. 18.  Minnesota Statutes 2000, section 126C.10, 
 16.18  subdivision 9, is amended to read: 
 16.19     Subd. 9.  [SUPPLEMENTAL REVENUE.] (a) A district's 
 16.20  supplemental revenue allowance for fiscal year 1994 and later 
 16.21  fiscal years 2002 equals the district's supplemental 
 16.22  revenue allowance for fiscal year 1993 divided by the district's 
 16.23  1992-1993 resident pupil units 2001. 
 16.24     (b) A district's supplemental revenue allowance is reduced 
 16.25  for fiscal year 1995 and later according to subdivision 12. 
 16.26     (c) A district's supplemental revenue equals the 
 16.27  supplemental revenue allowance, if any, times its adjusted 
 16.28  marginal cost pupil units for that year.  
 16.29     (d) A district may cancel its supplemental revenue by 
 16.30  notifying the commissioner of education prior to June 30, 1994.  
 16.31  A district that is reorganizing under section 123A.35, 123A.46, 
 16.32  or 123A.48 may cancel its supplemental revenue by notifying the 
 16.33  commissioner of children, families, and learning before July 1 
 16.34  of the year of the reorganization.  If a district cancels its 
 16.35  supplemental revenue according to this paragraph, its 
 16.36  supplemental revenue allowance for fiscal year 1993 for purposes 
 17.1   of subdivision 12 and section 124A.03, subdivision 3b, equals 
 17.2   zero. 
 17.3      <b>[EFFECTIVE DATE.]</b> This section is effective for revenue for 
 17.4   fiscal year 2002. 
 17.5      Sec. 19.  Minnesota Statutes 2000, section 126C.10, 
 17.6   subdivision 13, is amended to read: 
 17.7      Subd. 13.  [TOTAL OPERATING CAPITAL REVENUE.] (a) For 
 17.8   fiscal year 2000 and thereafter, total operating capital revenue 
 17.9   for a district equals the amount determined under paragraph (b) 
 17.10  or (c), plus $73 times the adjusted marginal cost pupil units 
 17.11  for the school year.  The revenue must be placed in a reserved 
 17.12  account in the general fund and may only be used according to 
 17.13  paragraph (d) or subdivision 14. 
 17.14     (b) For fiscal years 2000 and later, capital revenue for a 
 17.15  district equals $100 times the district's maintenance cost index 
 17.16  times its adjusted marginal cost pupil units for the school year.
 17.17     (c) For fiscal years 2000 and later, the revenue for a 
 17.18  district that operates a program under section 124D.128, is 
 17.19  increased by an amount equal to $30 times the number of marginal 
 17.20  cost pupil units served at the site where the program is 
 17.21  implemented. 
 17.22     (d) For fiscal years 2001 and 2002, the district must 
 17.23  reserve an amount equal to $5 per adjusted marginal cost pupil 
 17.24  unit for telecommunication access costs.  Reserve revenue under 
 17.25  this paragraph must first be used to pay for ongoing or 
 17.26  recurring telecommunication access costs, including access to 
 17.27  data lines, and video lines connections, or including 
 17.28  Internet access.  Any revenue remaining after covering all 
 17.29  ongoing or recurring access costs may be used for computer 
 17.30  hardware or equipment. 
 17.31     Sec. 20.  Minnesota Statutes 2000, section 126C.10, 
 17.32  subdivision 24, is amended to read: 
 17.33     Subd. 24.  [EQUITY REVENUE.] (a) A school district 
 17.34  qualifies for equity revenue if: 
 17.35     (1) the school district's adjusted marginal cost pupil unit 
 17.36  amount of basic revenue, supplemental revenue, transition 
 18.1   revenue, and referendum revenue is less than the value of the 
 18.2   school district at or immediately above the 90th 95th percentile 
 18.3   of school districts in its equity region for those revenue 
 18.4   categories; and 
 18.5      (2) the school district's administrative offices are not 
 18.6   located in a city of the first class on July 1, 1999. 
 18.7      (b) Equity revenue for a qualifying district that receives 
 18.8   referendum revenue under section 126C.17, subdivision 4, equals 
 18.9   the product of (1) the district's adjusted marginal cost pupil 
 18.10  units for that year; times (2) the sum of (i) $10, plus (ii) 
 18.11  $30 $55, times the school district's equity index computed under 
 18.12  subdivision 27. 
 18.13     (c) Equity revenue for a qualifying district that does not 
 18.14  receive referendum revenue under section 126C.17, subdivision 4, 
 18.15  equals the product of the district's adjusted marginal cost 
 18.16  pupil units for that year times $10. 
 18.17     <b>[EFFECTIVE DATE.]</b> This section is effective for revenue for 
 18.18  fiscal year 2002 and later. 
 18.19     Sec. 21.  Minnesota Statutes 2000, section 126C.10, 
 18.20  subdivision 25, is amended to read: 
 18.21     Subd. 25.  [REGIONAL EQUITY GAP.] The regional equity gap 
 18.22  equals the difference between the value of the school district 
 18.23  at or immediately above the fifth percentile of adjusted general 
 18.24  revenue per adjusted marginal cost pupil unit and the value of 
 18.25  the school district at or immediately above the 90th 95th 
 18.26  percentile of adjusted general revenue per adjusted marginal 
 18.27  cost pupil unit. 
 18.28     <b>[EFFECTIVE DATE.]</b> This section is effective for revenue for 
 18.29  fiscal year 2002 and later. 
 18.30     Sec. 22.  Minnesota Statutes 2000, section 126C.12, 
 18.31  subdivision 2, is amended to read: 
 18.32     Subd. 2.  [INSTRUCTOR DEFINED DEFINITIONS.] Primary 
 18.33  instructor (a) "Classroom teacher" means a public employee 
 18.34  licensed by the board of teaching who is authorized to teach all 
 18.35  subjects to children in any grade in kindergarten through grade 
 18.36  6 and whose duties are full-time regular classroom instruction, 
 19.1   excluding a teacher for whom federal aids are received or for 
 19.2   whom categorical aids are received pursuant to under section 
 19.3   125A.76 or who is an itinerant teacher or provides instruction 
 19.4   outside of the regular classroom.  Except as provided in section 
 19.5   122A.68, subdivision 6, instructor classroom teacher does not 
 19.6   include supervisory and support personnel, except school social 
 19.7   workers as defined in section 122A.15.  An instructor A 
 19.8   classroom teacher whose duties are less than full-time 
 19.9   instruction must be included as an equivalent only for the 
 19.10  number of hours of instruction in grades kindergarten through 6 
 19.11  grade 3.  
 19.12     (b) "Class size" means the districtwide ratio at each grade 
 19.13  level of the number of full-time students in kindergarten 
 19.14  through grade 3 served at least 40 percent of the time in 
 19.15  regular classrooms to the number of full-time classroom teachers 
 19.16  in kindergarten through grade 3, determined as of October 1 of 
 19.17  each school year. 
 19.18     Sec. 23.  Minnesota Statutes 2000, section 126C.12, 
 19.19  subdivision 3, is amended to read: 
 19.20     Subd. 3.  [INSTRUCTION CONTACT TIME.] Instruction may be 
 19.21  provided by a primary instructor, classroom teacher or by a team 
 19.22  of instructors classroom teachers, or by a teacher resident 
 19.23  supervised by a primary instructor classroom teacher.  The 
 19.24  district must maximize instructor classroom teacher to learner 
 19.25  average instructional contact time in the core subjects of 
 19.26  reading and mathematics. 
 19.27     Sec. 24.  Minnesota Statutes 2000, section 126C.12, 
 19.28  subdivision 4, is amended to read: 
 19.29     Subd. 4.  [REVENUE USE.] (a) Revenue must be used according 
 19.30  to either paragraph (b) or (c). 
 19.31     (b) Revenue must be used to reduce and maintain the 
 19.32  district's instructor to learner ratios average class size in 
 19.33  kindergarten through grade 6 3 to a level of 1 17 to 17 1 on 
 19.34  average in each of the respective grades.  The district must 
 19.35  prioritize the use of the revenue to attain this level initially 
 19.36  in kindergarten and grade 1 and then through the subsequent 
 20.1   grades as revenue is available.  
 20.2      (c) The revenue may be used to prepare and use an 
 20.3   individualized learning plan for each learner.  (b) A district 
 20.4   must not increase the district wide instructor-to-learner ratios 
 20.5   districtwide class sizes in other grades as a result of reducing 
 20.6   instructor-to-learner ratios class sizes in kindergarten through 
 20.7   grade 6 3.  Revenue may not be used to provide instructor 
 20.8   preparation time.  A district may use a portion of the revenue 
 20.9   reserved under this section to employ up to the same number of 
 20.10  full-time equivalent education assistants or aides as the 
 20.11  district employed during the 1992-1993 school year under 
 20.12  Minnesota Statutes 1992, section 124.331, subdivision 2 through 
 20.13  fiscal year 2002.  Beginning in fiscal year 2003, class size 
 20.14  reduction revenue may only be reserved to employ classroom 
 20.15  teachers contributing to lower class sizes in kindergarten 
 20.16  through grade 3. 
 20.17     Sec. 25.  Minnesota Statutes 2000, section 126C.12, 
 20.18  subdivision 5, is amended to read: 
 20.19     Subd. 5.  [ADDITIONAL REVENUE USE.] If the board of a 
 20.20  district determines that the district has achieved and is 
 20.21  maintaining the instructor-to-learner ratios class sizes 
 20.22  specified in subdivision 4 and is using individualized learning 
 20.23  plans, the board may use the revenue to reduce class size in 
 20.24  grades 4, 5, and 6, provide all-day, everyday kindergarten, 
 20.25  prepare and use individualized learning plans, improve program 
 20.26  offerings, purchase instructional material and, services, or 
 20.27  technology, or provide staff development needed for reduced 
 20.28  instructor-to-learner ratios.  If additional revenue remains, 
 20.29  the district must use the revenue to improve program offerings, 
 20.30  including programs provided through interactive television, 
 20.31  throughout the district or other general education 
 20.32  purposes class sizes. 
 20.33     Sec. 26.  Minnesota Statutes 2000, section 126C.12, is 
 20.34  amended by adding a subdivision to read: 
 20.35     Subd. 6.  [ANNUAL REPORT.] By December 1 of each year, 
 20.36  districts receiving revenue under subdivision 1 shall make 
 21.1   available to the public a report on the amount of revenue the 
 21.2   district has received and the use of the revenue.  This report 
 21.3   shall be in the form and manner determined by the commissioner 
 21.4   and shall include the district average class sizes in 
 21.5   kindergarten through grade 6 as of October 1 of the current 
 21.6   school year and the class sizes for each site serving 
 21.7   kindergarten through grade 6 students in the district.  A copy 
 21.8   of the report shall be filed with the commissioner by December 
 21.9   15. 
 21.10     Sec. 27.  [126C.126] [REALLOCATING GENERAL EDUCATION 
 21.11  REVENUE FOR ALL-DAY KINDERGARTEN.] 
 21.12     In order to provide additional revenue for an optional 
 21.13  all-day kindergarten program, a district may reallocate general 
 21.14  education revenue attributable to 12th grade students who have 
 21.15  graduated early under section 120B.07.  
 21.16     <b>[EFFECTIVE DATE.]</b> This section is effective for fiscal year 
 21.17  2002 and later. 
 21.18     Sec. 28.  Minnesota Statutes 2000, section 126C.15, 
 21.19  subdivision 1, is amended to read: 
 21.20     Subdivision 1.  [USE OF THE REVENUE.] The basic skills 
 21.21  revenue under section 126C.10, subdivision 4, and the portion of 
 21.22  the transition revenue adjustment under section 126C.10, 
 21.23  subdivision 20, attributable to the compensatory transition 
 21.24  allowance under section 126C.10, subdivision 19, paragraph (b), 
 21.25  must be reserved and used to meet the educational needs of 
 21.26  pupils who enroll under-prepared to learn and whose progress 
 21.27  toward meeting state or local content or performance standards 
 21.28  is below the level that is appropriate for learners of their 
 21.29  age.  Any of the following may be provided to meet these 
 21.30  learners' needs: 
 21.31     (1) direct instructional services under the assurance of 
 21.32  mastery program according to section 124D.66; 
 21.33     (2) remedial instruction in reading, language arts, 
 21.34  mathematics, other content areas, or study skills to improve the 
 21.35  achievement level of these learners; 
 21.36     (3) additional teachers and teacher aides to provide more 
 22.1   individualized instruction to these learners through individual 
 22.2   tutoring, lower instructor-to-learner ratios, or team teaching; 
 22.3      (4) a longer school day or week during the regular school 
 22.4   year or through a summer program that may be offered directly by 
 22.5   the site or under a performance-based contract with a 
 22.6   community-based organization; 
 22.7      (5) comprehensive and ongoing staff development consistent 
 22.8   with district and site plans according to section 122A.60, for 
 22.9   teachers, teacher aides, principals, and other personnel to 
 22.10  improve their ability to identify the needs of these learners 
 22.11  and provide appropriate remediation, intervention, 
 22.12  accommodations, or modifications; 
 22.13     (6) instructional materials and technology appropriate for 
 22.14  meeting the individual needs of these learners; 
 22.15     (7) programs to reduce truancy, encourage completion of 
 22.16  high school, enhance self-concept, provide health services, 
 22.17  provide nutrition services, provide a safe and secure learning 
 22.18  environment, provide coordination for pupils receiving services 
 22.19  from other governmental agencies, provide psychological services 
 22.20  to determine the level of social, emotional, cognitive, and 
 22.21  intellectual development, and provide counseling services, 
 22.22  guidance services, and social work services; 
 22.23     (8) bilingual programs, bicultural programs, and programs 
 22.24  for learners of limited English proficiency; 
 22.25     (9) all day kindergarten; 
 22.26     (10) extended school day and extended school year programs; 
 22.27  and 
 22.28     (11) substantial parent involvement in developing and 
 22.29  implementing remedial education or intervention plans for a 
 22.30  learner, including learning contracts between the school, the 
 22.31  learner, and the parent that establish achievement goals and 
 22.32  responsibilities of the learner and the learner's parent or 
 22.33  guardian; and 
 22.34     (12) other methods to increase achievement, as needed.  
 22.35     Sec. 29.  Minnesota Statutes 2000, section 126C.15, 
 22.36  subdivision 2, is amended to read: 
 23.1      Subd. 2.  [BUILDING ALLOCATION.] (a) A district must 
 23.2   allocate its compensatory revenue to each school building in the 
 23.3   district where the children who have generated the revenue are 
 23.4   served. 
 23.5      (b) Notwithstanding paragraph (a), for fiscal years 1999, 
 23.6   2000, and 2001, upon approval by the commissioner, a district 
 23.7   may allocate up to five percent of the amount of compensatory 
 23.8   revenue that the district would have received under Minnesota 
 23.9   Statutes 1996, section 124A.22, subdivision 3, for fiscal year 
 23.10  1998, computed using a basic formula allowance of $3,581 during 
 23.11  the previous fiscal year to school sites according to a plan 
 23.12  adopted by the school board. 
 23.13     (c) For the purposes of this section and section 126C.05, 
 23.14  subdivision 3, "building" means education site as defined in 
 23.15  section 123B.04, subdivision 1. 
 23.16     (d) If the pupil is served at a site other than one owned 
 23.17  and operated by the district, the revenue shall be paid to the 
 23.18  district and used for services for pupils who generate the 
 23.19  revenue.  
 23.20     Sec. 30.  Minnesota Statutes 2000, section 126C.15, 
 23.21  subdivision 5, is amended to read: 
 23.22     Subd. 5.  [ANNUAL EXPENDITURE REPORT.] Each year a district 
 23.23  that receives basic skills revenue must submit a report 
 23.24  identifying the expenditures it incurred to meet the needs of 
 23.25  eligible learners under subdivision 1.  The report must conform 
 23.26  to uniform financial and reporting standards established for 
 23.27  this purpose.  Using valid and reliable data and measurement 
 23.28  criteria, the report also must determine whether increased 
 23.29  expenditures raised student achievement levels. 
 23.30     Sec. 31.  Minnesota Statutes 2000, section 126C.17, 
 23.31  subdivision 6, is amended to read: 
 23.32     Subd. 6.  [REFERENDUM EQUALIZATION LEVY.] (a) A district's 
 23.33  referendum equalization levy for a referendum levied against the 
 23.34  referendum market value of all taxable property as defined in 
 23.35  section 126C.01, subdivision 3, equals the district's referendum 
 23.36  equalization revenue times the lesser of one or the ratio of the 
 24.1   district's referendum market value per resident marginal cost 
 24.2   pupil unit to $476,000. 
 24.3      (b) A district's referendum equalization levy for a 
 24.4   referendum levied against the net tax capacity of all taxable 
 24.5   property equals the district's referendum equalization revenue 
 24.6   times the lesser of one or the ratio of the district's adjusted 
 24.7   net tax capacity per resident marginal cost pupil unit to $8,404.
 24.8      <b>[EFFECTIVE DATE.]</b> This section is effective for revenue for 
 24.9   fiscal year 2002. 
 24.10     Sec. 32.  Minnesota Statutes 2000, section 126C.17, 
 24.11  subdivision 9, is amended to read: 
 24.12     Subd. 9.  [REFERENDUM REVENUE.] (a) The revenue authorized 
 24.13  by section 126C.10, subdivision 1, may be increased in the 
 24.14  amount approved by the voters of the district at a referendum 
 24.15  called for the purpose.  The referendum may be called by the 
 24.16  board or shall be called by the board upon written petition of 
 24.17  qualified voters of the district.  The referendum must be 
 24.18  conducted one or two calendar years before the increased levy 
 24.19  authority, if approved, first becomes payable.  Only one 
 24.20  election to approve an increase may be held in a calendar year.  
 24.21  Unless the referendum is conducted by mail under paragraph (g), 
 24.22  the referendum must be held on the first Tuesday after the first 
 24.23  Monday in November.  The ballot must state the maximum amount of 
 24.24  the increased revenue per resident marginal cost pupil unit, the 
 24.25  estimated referendum tax rate as a percentage of referendum 
 24.26  market value in the first year it is to be levied, and that the 
 24.27  revenue must be used to finance school operations.  The ballot 
 24.28  may state a schedule, determined by the board, of increased 
 24.29  revenue per resident marginal cost pupil unit that differs from 
 24.30  year to year over the number of years for which the increased 
 24.31  revenue is authorized.  If the ballot contains a schedule 
 24.32  showing different amounts, it must also indicate the estimated 
 24.33  referendum tax rate as a percent of referendum market value for 
 24.34  the amount specified for the first year and for the maximum 
 24.35  amount specified in the schedule.  The ballot may state that 
 24.36  existing referendum levy authority is expiring.  In this case, 
 25.1   the ballot may also compare the proposed levy authority to the 
 25.2   existing expiring levy authority, and express the proposed 
 25.3   increase as the amount, if any, over the expiring referendum 
 25.4   levy authority.  The ballot must designate the specific number 
 25.5   of years, not to exceed ten, for which the referendum 
 25.6   authorization applies.  The notice required under section 275.60 
 25.7   may be modified to read, in cases of renewing existing levies: 
 25.8      "BY VOTING "YES" ON THIS BALLOT QUESTION, YOU MAY BE VOTING 
 25.9      FOR A PROPERTY TAX INCREASE." 
 25.10     The ballot may contain a textual portion with the 
 25.11  information required in this subdivision and a question stating 
 25.12  substantially the following:  
 25.13     "Shall the increase in the revenue proposed by (petition 
 25.14  to) the board of ........., School District No. .., be approved?"
 25.15     If approved, an amount equal to the approved revenue per 
 25.16  resident marginal cost pupil unit times the resident marginal 
 25.17  cost pupil units for the school year beginning in the year after 
 25.18  the levy is certified shall be authorized for certification for 
 25.19  the number of years approved, if applicable, or until revoked or 
 25.20  reduced by the voters of the district at a subsequent referendum.
 25.21     (b) The board must prepare and deliver by first class mail 
 25.22  at least 15 days but no more than 30 days before the day of the 
 25.23  referendum to each taxpayer a notice of the referendum and the 
 25.24  proposed revenue increase.  The board need not mail more than 
 25.25  one notice to any taxpayer.  For the purpose of giving mailed 
 25.26  notice under this subdivision, owners must be those shown to be 
 25.27  owners on the records of the county auditor or, in any county 
 25.28  where tax statements are mailed by the county treasurer, on the 
 25.29  records of the county treasurer.  Every property owner whose 
 25.30  name does not appear on the records of the county auditor or the 
 25.31  county treasurer is deemed to have waived this mailed notice 
 25.32  unless the owner has requested in writing that the county 
 25.33  auditor or county treasurer, as the case may be, include the 
 25.34  name on the records for this purpose.  The notice must project 
 25.35  the anticipated amount of tax increase in annual dollars and 
 25.36  annual percentage for typical residential homesteads, 
 26.1   agricultural homesteads, apartments, and commercial-industrial 
 26.2   property within the school district. 
 26.3      The notice for a referendum may state that an existing 
 26.4   referendum levy is expiring and project the anticipated amount 
 26.5   of increase over the existing referendum levy in the first year, 
 26.6   if any, in annual dollars and annual percentage for typical 
 26.7   residential homesteads, agricultural homesteads, apartments, and 
 26.8   commercial-industrial property within the district. 
 26.9      The notice must include the following statement:  "Passage 
 26.10  of this referendum will result in an increase in your property 
 26.11  taxes."  However, in cases of renewing existing levies, the 
 26.12  notice may include the following statement:  "Passage of this 
 26.13  referendum may result in an increase in your property taxes." 
 26.14     (c) A referendum on the question of revoking or reducing 
 26.15  the increased revenue amount authorized pursuant to paragraph 
 26.16  (a) may be called by the board and shall be called by the board 
 26.17  upon the written petition of qualified voters of the district.  
 26.18  A referendum to revoke or reduce the levy amount must be based 
 26.19  upon the dollar amount, local tax rate, or amount per resident 
 26.20  marginal cost pupil unit, that was stated to be the basis for 
 26.21  the initial authorization.  Revenue approved by the voters of 
 26.22  the district pursuant to paragraph (a) must be received at least 
 26.23  once before it is subject to a referendum on its revocation or 
 26.24  reduction for subsequent years.  Only one revocation or 
 26.25  reduction referendum may be held to revoke or reduce referendum 
 26.26  revenue for any specific year and for years thereafter. 
 26.27     (d) A petition authorized by paragraph (a) or (c) is 
 26.28  effective if signed by a number of qualified voters in excess of 
 26.29  15 percent of the registered voters of the district on the day 
 26.30  the petition is filed with the board.  A referendum invoked by 
 26.31  petition must be held on the date specified in paragraph (a). 
 26.32     (e) The approval of 50 percent plus one of those voting on 
 26.33  the question is required to pass a referendum authorized by this 
 26.34  subdivision. 
 26.35     (f) At least 15 days before the day of the referendum, the 
 26.36  district must submit a copy of the notice required under 
 27.1   paragraph (b) to the commissioner and to the county auditor of 
 27.2   each county in which the district is located.  Within 15 days 
 27.3   after the results of the referendum have been certified by the 
 27.4   board, or in the case of a recount, the certification of the 
 27.5   results of the recount by the canvassing board, the district 
 27.6   must notify the commissioner of the results of the referendum. 
 27.7      (g) Except for a referendum held under subdivision 11, any 
 27.8   referendum under this section held on a day other than the first 
 27.9   Tuesday after the first Monday in November must be conducted by 
 27.10  mail in accordance with section 204B.46.  Notwithstanding 
 27.11  paragraph (b) to the contrary, in the case of a referendum 
 27.12  conducted by mail under this paragraph, the notice required by 
 27.13  paragraph (b) must be prepared and delivered by first class mail 
 27.14  at least 20 days before the referendum. 
 27.15     Sec. 33.  Minnesota Statutes 2000, section 126C.17, 
 27.16  subdivision 10, is amended to read: 
 27.17     Subd. 10.  [SCHOOL REFERENDUM LEVY; MARKET VALUE.] 
 27.18  Notwithstanding the provisions of subdivision 9, A school 
 27.19  referendum levy approved after November 1, 1992, for taxes 
 27.20  payable in 1993 and thereafter, must be levied against the 
 27.21  referendum market value of all taxable property as defined in 
 27.22  section 126C.01, subdivision 3.  Any referendum levy amount 
 27.23  subject to the requirements of this subdivision must be 
 27.24  certified separately to the county auditor under section 275.07. 
 27.25     All other provisions of subdivision 9 that do not conflict 
 27.26  with this subdivision apply to referendum levies under this 
 27.27  subdivision.  
 27.28     <b>[EFFECTIVE DATE.]</b> This section is effective for revenue for 
 27.29  fiscal year 2002. 
 27.30     Sec. 34.  Minnesota Statutes 2000, section 126C.17, 
 27.31  subdivision 11, is amended to read: 
 27.32     Subd. 11.  [REFERENDUM DATE.] (a) Except for a referendum 
 27.33  held under paragraph (b), any referendum under this section held 
 27.34  on a day other than the first Tuesday after the first Monday in 
 27.35  November must be conducted by mail in accordance with section 
 27.36  204B.46.  Notwithstanding subdivision 9, paragraph (b), to the 
 28.1   contrary, in the case of a referendum conducted by mail under 
 28.2   this paragraph, the notice required by subdivision 9, paragraph 
 28.3   (b), must be prepared and delivered by first-class mail at least 
 28.4   20 days before the referendum. 
 28.5      (b) In addition to the referenda allowed in subdivision 9, 
 28.6   clause (a), the commissioner may authorize a referendum for a 
 28.7   different day.  
 28.8      (a) The commissioner may grant authority to a district to 
 28.9   hold a referendum on a different day if the district is in 
 28.10  statutory operating debt and has an approved plan or has 
 28.11  received an extension from the department to file a plan to 
 28.12  eliminate the statutory operating debt.  
 28.13     (b) The commissioner may grant authority for a district to 
 28.14  hold a referendum on a different day if:  (1) the district will 
 28.15  conduct a bond election under chapter 475 on that same day; and 
 28.16  (2) the proceeds of the referendum will provide only additional 
 28.17  operating revenue complementing the purpose for which bonding 
 28.18  authority is sought.  The commissioner may only grant authority 
 28.19  under this paragraph if the district demonstrates to the 
 28.20  commissioner's satisfaction that the district's ability to 
 28.21  operate the new facility or achieve efficiencies with the 
 28.22  purchases connected to the proceeds of the bond sale will be 
 28.23  significantly affected if the operating referendum is not 
 28.24  conducted until the November general election.  Authority under 
 28.25  this paragraph expires November 30, 1998. 
 28.26     (c) The commissioner must approve, deny, or modify each 
 28.27  district's request for a referendum levy on a different day 
 28.28  within 60 days of receiving the request from a district. 
 28.29     Sec. 35.  Minnesota Statutes 2000, section 126C.23, 
 28.30  subdivision 5, is amended to read: 
 28.31     Subd. 5.  [DATA REPORTING.] Each district must report to 
 28.32  the commissioner the estimated amount of general education and 
 28.33  referendum initially allocated to each building under 
 28.34  subdivision 2 and the amount of any reallocations under 
 28.35  subdivision 3 by January 30 of the current fiscal year, and the 
 28.36  actual amount of general education and referendum revenue 
 29.1   initially allocated to each building under subdivision 2 and the 
 29.2   amount of any reallocations under subdivision 3 by January 30 of 
 29.3   the next fiscal year. 
 29.4      Sec. 36.  Minnesota Statutes 2000, section 126C.41, 
 29.5   subdivision 2, is amended to read: 
 29.6      Subd. 2.  [RETIRED EMPLOYEE HEALTH BENEFITS.] A district 
 29.7   may levy an amount up to the amount the district is required by 
 29.8   the collective bargaining agreement in effect on March 30, 1992, 
 29.9   to pay for health insurance or unreimbursed medical expenses for 
 29.10  licensed and nonlicensed employees who have terminated services 
 29.11  in the employing district and withdrawn from active teaching 
 29.12  service or other active service, as applicable, before July 1, 
 29.13  1992.  The total amount of the levy each year may not 
 29.14  exceed $300,000 $600,000.  
 29.15     Sec. 37.  Minnesota Statutes 2000, section 126C.41, 
 29.16  subdivision 3, is amended to read: 
 29.17     Subd. 3.  [RETIREMENT LEVIES.] (1) In addition to the 
 29.18  excess levy authorized in 1976 any district within a city of the 
 29.19  first class which was authorized in 1975 to make a retirement 
 29.20  levy under Minnesota Statutes 1974, section 275.127 and chapter 
 29.21  422A may levy an amount per pupil unit which is equal to the 
 29.22  amount levied in 1975 payable 1976, under Minnesota Statutes 
 29.23  1974, section 275.127 and chapter 422A, divided by the number of 
 29.24  pupil units in the district in 1976-1977. 
 29.25     (2) In 1979 and each year thereafter, any district which 
 29.26  qualified in 1976 for an extra levy under paragraph (1) shall be 
 29.27  allowed to levy the same amount as levied for retirement in 1978 
 29.28  under this clause reduced each year by ten percent of the 
 29.29  difference between the amount levied for retirement in 1971 
 29.30  under Minnesota Statutes 1971, sections 275.127 and 422.01 to 
 29.31  422.54 and the amount levied for retirement in 1975 under 
 29.32  Minnesota Statutes 1974, section 275.127 and chapter 422A. 
 29.33     (3) (a) In 1991 and each year thereafter, a district to 
 29.34  which this subdivision applies may levy an additional amount 
 29.35  required for contributions to the Minneapolis employees 
 29.36  retirement fund as a result of the maximum dollar amount 
 30.1   limitation on state contributions to the fund imposed under 
 30.2   section 422A.101, subdivision 3.  The additional levy must not 
 30.3   exceed the most recent amount certified by the board of the 
 30.4   Minneapolis employees retirement fund as the district's share of 
 30.5   the contribution requirement in excess of the maximum state 
 30.6   contribution under section 422A.101, subdivision 3.  
 30.7      (4) (b) For taxes payable in 1994 and thereafter, special 
 30.8   school district No. 1, Minneapolis, and independent school 
 30.9   district No. 625, St. Paul, may levy for the increase in the 
 30.10  employer retirement fund contributions, under Laws 1992, chapter 
 30.11  598, article 5, section 1.  
 30.12     (5) (c) If the employer retirement fund contributions under 
 30.13  section 354A.12, subdivision 2a, are increased for fiscal year 
 30.14  1994 or later fiscal years, special school district No. 1, 
 30.15  Minneapolis, and independent school district No. 625, St. Paul, 
 30.16  may levy in payable 1994 or later an amount equal to the amount 
 30.17  derived by applying the net increase in the employer retirement 
 30.18  fund contribution rate of the respective teacher retirement fund 
 30.19  association between fiscal year 1993 and the fiscal year 
 30.20  beginning in the year after the levy is certified to the total 
 30.21  covered payroll of the applicable teacher retirement fund 
 30.22  association.  If an applicable school district levies under this 
 30.23  paragraph, they may not levy under paragraph (4) (b). 
 30.24     (6) (d) In addition to the levy authorized under paragraph 
 30.25  (5) (c), special school district No. 1, Minneapolis, may also 
 30.26  levy payable in 1997 or later an amount equal to the 
 30.27  contributions under section 423A.02, subdivision 3, and may also 
 30.28  levy in payable 1994 or later an amount equal to the state aid 
 30.29  contribution under section 354A.12, subdivision 3b.  Independent 
 30.30  school district No. 625, St. Paul, may levy payable in 1997 or 
 30.31  later an amount equal to the supplemental contributions under 
 30.32  section 423A.02, subdivision 3.  
 30.33     Sec. 38.  Minnesota Statutes 2000, section 126C.43, 
 30.34  subdivision 3, is amended to read: 
 30.35     Subd. 3.  [TAX LEVY FOR UNPAID JUDGMENT.] A district may 
 30.36  levy the amounts necessary to pay the district's obligations 
 31.1   judgments against the district under section 126C.47 123B.25 
 31.2   that became final after the date the district certified its 
 31.3   proposed levy in the previous year.  With the approval of the 
 31.4   commissioner, a district may spread this levy over a period not 
 31.5   to exceed three years. 
 31.6      Sec. 39.  Minnesota Statutes 2000, section 127A.41, 
 31.7   subdivision 5, is amended to read: 
 31.8      Subd. 5.  [DISTRICT APPEAL OF AID REDUCTION; INSPECTION OF 
 31.9   DISTRICT SCHOOLS AND ACCOUNTS AND RECORDS.] Public schools shall 
 31.10  at all times be open to the inspection of the commissioner.  The 
 31.11  accounts and records of any district must be open to inspection 
 31.12  by the state auditor, or the commissioner for the purpose of 
 31.13  audits conducted under this section.  Each district shall keep 
 31.14  for a minimum of three years at least the following:  (1) 
 31.15  identification of the annual session days held, together with a 
 31.16  record of the length of each session day, (2) a record of each 
 31.17  pupil's daily attendance, with entrance and withdrawal dates, 
 31.18  and (3) identification of the pupils transported who are 
 31.19  reported for transportation aid to-and-from school 
 31.20  transportation category for each pupil as defined in section 
 31.21  123B.92, subdivision 1. 
 31.22     Sec. 40.  Minnesota Statutes 2000, section 127A.50, 
 31.23  subdivision 2, is amended to read: 
 31.24     Subd. 2.  [APPROPRIATION AND ESTIMATED NET SAVINGS.] The 
 31.25  amounts necessary to pay any positive net adjustments under this 
 31.26  section to any school district are appropriated annually from 
 31.27  the general fund to the commissioner of children, families, and 
 31.28  learning.  The estimated net general fund savings under this 
 31.29  section is $29,819,000 in fiscal year 1998, and $26,997,000 in 
 31.30  each fiscal year thereafter. 
 31.31     Sec. 41.  Minnesota Statutes 2000, section 127A.51, is 
 31.32  amended to read: 
 31.33     127A.51 [STATEWIDE AVERAGE REVENUE.] 
 31.34     By October 1 of each year the commissioner must estimate 
 31.35  the statewide average adjusted general revenue per adjusted 
 31.36  marginal cost pupil unit and the disparity in adjusted general 
 32.1   revenue among pupils and districts by computing the ratio of the 
 32.2   ninety-fifth percentile to the fifth percentile of adjusted 
 32.3   general revenue.  The commissioner must provide that information 
 32.4   to all districts. 
 32.5      If the disparity in adjusted general revenue as measured by 
 32.6   the ratio of the ninety-fifth percentile to the fifth percentile 
 32.7   increases in any year, the commissioner shall recommend to the 
 32.8   legislature options for change in the general education formula 
 32.9   that will limit the disparity in adjusted general revenue to no 
 32.10  more than the disparity for the previous school year.  The 
 32.11  commissioner must submit the recommended options to the 
 32.12  education committees of the legislature by January 15. 
 32.13     For purposes of this section and section 126C.10, adjusted 
 32.14  general revenue means: 
 32.15     (1) for fiscal year 2002, the sum of basic revenue under 
 32.16  section 126C.10, subdivision 2; supplemental revenue under 
 32.17  section 126C.10, subdivisions 9 and 12; transition revenue under 
 32.18  section 126C.10, subdivision 20; and referendum revenue under 
 32.19  section 126C.17; and equity revenue under section 126C.10, 
 32.20  subdivisions 24a and 24b; and 
 32.21     (2) for fiscal year 2003 and later, the sum of basic 
 32.22  revenue under section 126C.10, subdivision 2; referendum revenue 
 32.23  under section 126C.17; and equity revenue under section 126C.10, 
 32.24  subdivisions 24a and 24b. 
 32.25     Sec. 42.  Laws 1992, chapter 499, article 7, section 31, as 
 32.26  amended by Laws 1998, chapter 398, article 1, section 39, Laws 
 32.27  1999, chapter 241, article 1, section 54, and Laws 2000, chapter 
 32.28  489, article 2, section 28, is amended to read: 
 32.29     Sec. 31.  [REPEALER.] 
 32.30     Minnesota Statutes 1990, sections 124A.02, subdivision 24; 
 32.31  124A.23, subdivisions 2 and 3; 124A.26, subdivisions 2 and 3; 
 32.32  124A.27; 124A.28; and 124A.29, subdivision 2; and Minnesota 
 32.33  Statutes 1991 Supplement, sections 124A.02, subdivisions 16 and 
 32.34  23; 124A.03, subdivisions 1b, 1c, 1d, 1e, 1f, 1g, 1h, and 1i; 
 32.35  124A.04; 124A.22, subdivisions 2, 3, 4, 4a, 4b, 8, and 9; 
 32.36  124A.23, subdivisions 1, 4, and 5; 124A.24; 124A.26, subdivision 
 33.1   1; and 124A.29, subdivision 1, are repealed effective June 30, 
 33.2   2004; Laws 1991, chapter 265, article 7, section 35, is repealed.
 33.3      Sec. 43.  Laws 2000, chapter 489, article 2, section 34, is 
 33.4   amended to read: 
 33.5      Sec. 34.  [TRAINING AND EXPERIENCE REPLACEMENT REVENUE.] 
 33.6      (a) For fiscal year 2001 only, a school district's training 
 33.7   and experience replacement revenue equals the sum of the 
 33.8   following: 
 33.9      (1) the ratio of the amount of training and experience 
 33.10  revenue the district would have received for fiscal year 1999 
 33.11  calculated using the training and experience index in Minnesota 
 33.12  Statutes 1996, section 124A.04, to its resident pupil units for 
 33.13  that year, times the district's adjusted marginal cost pupil 
 33.14  units for fiscal year 2001, times .06; plus 
 33.15     (2) the difference between .47 times the training and 
 33.16  experience revenue the district would have received for fiscal 
 33.17  year 1999, calculated using the training and experience index in 
 33.18  Minnesota Statutes 1996, section 124A.04, and the amount 
 33.19  calculated in Minnesota Statutes, section 126C.10, subdivision 
 33.20  5, for fiscal year 2001, but not less than zero. 
 33.21     (b) This revenue is paid entirely in fiscal year 2001 based 
 33.22  on estimated data. 
 33.23     (c) By January 31, 2002, the department of children, 
 33.24  families, and learning shall recalculate the revenue for each 
 33.25  district using actual data, and shall adjust the general 
 33.26  education aid paid to school districts for fiscal year 2002 by 
 33.27  the amount of the difference between the estimated revenue and 
 33.28  the actual revenue. 
 33.29     Sec. 44.  Laws 2000, chapter 489, article 2, section 36, is 
 33.30  amended to read: 
 33.31     Sec. 36.  [FISCAL YEARS 2003 2004 TO 2007 2008 AIRPORT 
 33.32  RUNWAY IMPACT PUPIL UNIT AID; RICHFIELD.] 
 33.33     Subdivision 1.  [AIRPORT IMPACT ZONE PUPIL UNITS, 
 33.34  DEFINITION.] For the purposes of this section, "airport impact 
 33.35  zone pupil units" means the number of pupil units, according to 
 33.36  Minnesota Statutes 1999 Supplement, section 126C.05, subdivision 
 34.1   1, in school year 1998-1999 that were attributable to the 
 34.2   airport impact zone, as defined in Laws 1999, chapter 243, 
 34.3   article 16, section 35, subdivision 1. 
 34.4      Subd. 2.  [FISCAL YEAR 2003 2004.] For fiscal year 2003 
 34.5   2004 only, independent school district No. 280, Richfield, is 
 34.6   eligible for declining pupil unit aid equal to the product of 70 
 34.7   percent of the airport impact zone pupil units times the general 
 34.8   education formula allowance for fiscal year 2003 2004. 
 34.9      Subd. 3.  [FISCAL YEAR 2004 2005.] For fiscal year 2004 
 34.10  2005 only, independent school district No. 280, Richfield, is 
 34.11  eligible for declining pupil unit aid equal to the product of 70 
 34.12  percent of the airport impact zone pupil units times the general 
 34.13  education formula allowance for fiscal year 2004 2005. 
 34.14     Subd. 4.  [FISCAL YEAR 2005 2006.] For fiscal year 2005 
 34.15  2006 only, independent school district No. 280, Richfield, is 
 34.16  eligible for declining pupil unit aid equal to the product of 
 34.17  52.5 percent of the airport impact zone pupil units times the 
 34.18  general education formula allowance for fiscal year 2005 2006. 
 34.19     Subd. 5.  [FISCAL YEAR 2006 2007.] For fiscal year 2006 
 34.20  2007 only, independent school district No. 280, Richfield, is 
 34.21  eligible for declining pupil unit aid equal to the product of 35 
 34.22  percent of the airport impact zone pupil units times the general 
 34.23  education formula allowance for fiscal year 2006 2007. 
 34.24     Subd. 6.  [FISCAL YEAR 2007 2008.] For fiscal year 2007 
 34.25  2008 only, independent school district No. 280, Richfield, is 
 34.26  eligible for declining pupil unit aid equal to the product of 
 34.27  17.5 percent of the airport impact zone pupil units times the 
 34.28  general education formula allowance for fiscal year 2007 2008.  
 34.29     Sec. 45.  Laws 2000, chapter 489, article 2, section 37, 
 34.30  subdivision 3, is amended to read: 
 34.31     Subd. 3.  [FISCAL YEAR 2001 CALCULATION.] (a) For fiscal 
 34.32  year 2001, a school district's sparsity correction revenue 
 34.33  equals .5 times the difference between sparsity revenue in 
 34.34  fiscal year 2001 calculated according to Laws 1999, chapter 241, 
 34.35  article 1, sections 18 and 19, and the sparsity revenue the 
 34.36  district would have received for fiscal year 2001 had these 
 35.1   sections of law not been approved. 
 35.2      (b) This revenue is paid entirely in fiscal year 2001 based 
 35.3   on estimated data.  
 35.4      (c) By January 31, 2002, the department of children, 
 35.5   families, and learning shall recalculate the revenue for each 
 35.6   district using actual data, and shall adjust the general 
 35.7   education aid paid to school districts for fiscal year 2002 by 
 35.8   the amount of the difference between the estimated revenue and 
 35.9   the actual revenue. 
 35.10     Sec. 46.  Laws 2000, chapter 489, article 2, section 39, 
 35.11  subdivision 2, is amended to read: 
 35.12     Subd. 2.  [SPARSITY CORRECTION REVENUE.] For sparsity 
 35.13  correction revenue: 
 35.14       $1,030,000     .....     2000
 35.15       $  515,000     .....     2001
 35.16     The 2000 appropriation is available until June 30, 2001.  
 35.17     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 35.18  following final enactment. 
 35.19     Sec. 47.  Laws 2000, chapter 489, article 3, section 25, 
 35.20  subdivision 5, is amended to read: 
 35.21     Subd. 5.  [SPECIAL EDUCATION CROSS-SUBSIDY REVENUE.] For 
 35.22  special education cross-subsidy revenue: 
 35.23       $ 7,898,000     .....     2000 
 35.24       $18,396,000     .....     2001 
 35.25     The 2000 appropriation is available until June 30, 2001. 
 35.26     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 35.27  following final enactment. 
 35.28     Sec. 48.  [LEGISLATIVE TASK FORCE ON REDUCING THE 
 35.29  COMPLEXITY AND INEQUITIES OF KINDERGARTEN THROUGH GRADE 12 
 35.30  EDUCATION FUNDING STATUTES AND RULES.] 
 35.31     (a) The legislative task force on reducing the complexity 
 35.32  and inequities of kindergarten through grade 12 education 
 35.33  funding consists of eight members.  The speaker of the house of 
 35.34  representatives, considering geographical balance, shall appoint 
 35.35  four members from the house, two of whom must be minority caucus 
 35.36  members.  The subcommittee on committees of the senate committee 
 36.1   on rules and administration, considering geographical balance, 
 36.2   shall appoint four members from the senate, two of whom must be 
 36.3   minority caucus members. 
 36.4      (b) The task force shall study and recommend to the 
 36.5   legislature by January 15, 2002, and by January 15, 2003, any 
 36.6   changes in statutes and rules needed to improve equity and 
 36.7   quality in and to simplify, clarify, and reduce the complexity 
 36.8   of the kindergarten through grade 12 education funding system.  
 36.9   The task force shall consider at least the following in 
 36.10  recommending changes in statutes and rules: 
 36.11     (1) the extent to which funding system and related 
 36.12  statutory and rule provisions are easily read and understood by 
 36.13  the public; 
 36.14     (2) the extent to which the funding system can be 
 36.15  simplified; 
 36.16     (3) how to resolve funding disparities between students; 
 36.17     (4) how voters' funding decisions affect district equity; 
 36.18     (5) how to create more equitable per student education 
 36.19  funding, including funding for alternative learning centers, 
 36.20  contracted alternatives, and charter schools; 
 36.21     (6) the extent to which regional variations in cost and 
 36.22  differentials in market-based wages affect school district 
 36.23  costs; 
 36.24     (7) how to define compensatory revenue to most effectively 
 36.25  meet the academic needs of students in attendance areas of high 
 36.26  concentrations of poverty; 
 36.27     (8) how to equitably distribute integration revenue based 
 36.28  on the level of services provided under the integration plan; 
 36.29  and 
 36.30     (9) the extent to which the legislative process of funding 
 36.31  kindergarten through grade 12 education can be improved to 
 36.32  provide school districts with timely, accurate information 
 36.33  concerning legislative decisions. 
 36.34     (c) The task force shall seek the input of various 
 36.35  kindergarten through grade 12 education stakeholders and the 
 36.36  general public in making its recommendations.  The task force 
 37.1   may call upon the department of children, families, and learning 
 37.2   to assist with its duties.  Upon submission of its 
 37.3   recommendations, the task force expires. 
 37.4      <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 37.5   following final enactment. 
 37.6      Sec. 49.  [DECLINING PUPIL UNIT AID; YELLOW MEDICINE EAST.] 
 37.7      Subdivision 1.  [FISCAL YEAR 2002.] For fiscal year 2002, 
 37.8   independent school district No. 2190, Yellow Medicine East, is 
 37.9   eligible for tornado impact declining enrollment aid equal to 
 37.10  $156,000. 
 37.11     Subd. 2.  [FISCAL YEAR 2003.] For fiscal year 2003, 
 37.12  independent school district No. 2190, Yellow Medicine East, is 
 37.13  eligible for tornado impact declining enrollment aid equal to 75 
 37.14  percent of the fiscal year 2002 appropriation in subdivision 1. 
 37.15     Subd. 3.  [FISCAL YEAR 2004.] For fiscal year 2004, 
 37.16  independent school district No. 2190, Yellow Medicine East, is 
 37.17  eligible for tornado impact declining enrollment aid equal to 50 
 37.18  percent of the fiscal year 2002 appropriation in subdivision 1. 
 37.19     Subd. 4.  [FISCAL YEAR 2005.] For fiscal year 2005, 
 37.20  independent school district No. 2190, Yellow Medicine East, is 
 37.21  eligible for tornado impact declining enrollment aid equal to 25 
 37.22  percent of the fiscal year 2002 appropriation in subdivision 1. 
 37.23     Sec. 50.  [SUPPLEMENTAL REVENUE; ANOKA AND DULUTH.] 
 37.24     For fiscal year 2002, the supplemental revenue for 
 37.25  independent school districts Nos. 11, Anoka, and 709, Duluth, is 
 37.26  increased by $500,000.  
 37.27     Sec. 51.  [DIRECTION TO COMMISSIONER; TRANSPORTATION.] 
 37.28     (a) The commissioner of children, families, and learning 
 37.29  must collect from each school district data needed to examine 
 37.30  pupil transportation costs for the following ridership 
 37.31  categories:  regular, hazardous, disabled, nonpublic, charter 
 37.32  schools, desegregation, noon kindergarten, learning year summer 
 37.33  and summer school, between schools, late activity, enrollment 
 37.34  options, student activity trips, safety requirements, and bus 
 37.35  replacement. 
 37.36     (b) The commissioner, by February 15, 2002, must prepare a 
 38.1   report on per pupil transportation costs to the legislative 
 38.2   committees responsible for kindergarten through grade 12 
 38.3   education finance.  The report must: 
 38.4      (1) identify funding inequities; 
 38.5      (2) make recommendations for providing equitable 
 38.6   transportation funding; 
 38.7      (3) consider changes in student demographics, attendance 
 38.8   patterns, declining enrollment, district topography, labor and 
 38.9   fuel costs; and 
 38.10     (4) examine whether public transportation options can be 
 38.11  used more effectively to provide transportation services. 
 38.12  The commissioner must consult with transportation professionals 
 38.13  throughout the state in developing and preparing the report. 
 38.14     Sec. 52.  [AID REPAYMENT; LITTLE FALLS.] 
 38.15     Notwithstanding any law to the contrary, the department of 
 38.16  children, families, and learning must allow independent school 
 38.17  district No. 482, Little Falls, to repay over a five-year period 
 38.18  state aid overpayments for fiscal years 1998 and 1999 resulting 
 38.19  from the district's miscalculation of pupil units for those 
 38.20  years.  If this aid has already been recaptured, the department 
 38.21  shall make a positive aid adjustment of $500,000 in the July 15, 
 38.22  2001, aid payment to the district.  The school district must 
 38.23  repay the aid in equal payments of $100,000 each payable on June 
 38.24  20.  Payments must begin on June 20, 2002. 
 38.25     Sec. 53.  [REFERENDUM CONVERSION ADJUSTMENT FOR INTEREST 
 38.26  EARNED.] 
 38.27     (a) The commissioner of children, families, and learning 
 38.28  shall calculate the change in estimated net interest earnings 
 38.29  for each district attributable to the repeal of the general 
 38.30  education levy as provided in this section. 
 38.31     (b) The interest calculations must assume an annual 
 38.32  interest rate of five percent, and must be based on the amount 
 38.33  by which the district's cumulative net general education levy 
 38.34  receipts for taxes payable in 2000, based on the assumptions 
 38.35  specified in Minnesota Statutes, section 127A.45, subdivision 8, 
 38.36  exceeds the cumulative amount that would have been guaranteed 
 39.1   for each payment in fiscal year 2001, as defined in Minnesota 
 39.2   Statutes, section 127A.45, subdivisions 2 and 3, calculated 
 39.3   using data as of the June 20, 2001, payment, and assuming that 
 39.4   the repeal of the general education levy was effective for 
 39.5   fiscal year 2001.  The commissioner shall divide the interest 
 39.6   revenue in fiscal year 2001 by the number of resident marginal 
 39.7   cost pupil units in fiscal year 2001. 
 39.8      (c) The amount calculated in paragraph (a) may be converted 
 39.9   to an additional referendum allowance according to Minnesota 
 39.10  Statutes, section 126C.17, subdivision 11. 
 39.11     (d) Any additional referendum allowance as a result of a 
 39.12  conversion under paragraph (b) shall be included in the 
 39.13  referendum conversion allowance used to determine the referendum 
 39.14  allowance limit under Minnesota Statutes, section 126C.17, 
 39.15  subdivision 2. 
 39.16     <b>[EFFECTIVE DATE.]</b> This section is effective for revenue for 
 39.17  fiscal year 2003 and later. 
 39.18     Sec. 54.  [APPROPRIATIONS.] 
 39.19     Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
 39.20  LEARNING.] The sums indicated in this section are appropriated 
 39.21  from the general fund to the department of children, families, 
 39.22  and learning for the fiscal years designated.  
 39.23     Subd. 2.  [GENERAL AND SUPPLEMENTAL EDUCATION AID.] For 
 39.24  general and supplemental education aid:  
 39.25       $3,364,596,000 .....     2002
 39.26       $3,506,910,000 .....     2003
 39.27     The 2002 appropriation includes $318,932,000 for 2001 and 
 39.28  $3,045,664,000 for 2002.  
 39.29     The 2003 appropriation includes $338,407,000 for 2002 and 
 39.30  $3,168,503,000 for 2003.  
 39.31     Subd. 3.  [TRANSPORTATION AID FOR ENROLLMENT OPTIONS.] For 
 39.32  transportation of pupils attending post-secondary institutions 
 39.33  according to Minnesota Statutes, section 124D.09, or for 
 39.34  transportation of pupils attending nonresident districts 
 39.35  according to Minnesota Statutes, sections 124D.03 and 124D.10: 
 39.36       $70,000        .....     2002
 40.1        $80,000        .....     2003
 40.2      Any balance in the first year does not cancel but is 
 40.3   available in the second year. 
 40.4      Subd. 4.  [ABATEMENT AID.] For abatement aid according to 
 40.5   Minnesota Statutes, section 127A.49:  
 40.6        $7,098,000     .....     2002 
 40.7        $7,692,000     .....     2003 
 40.8      The 2002 appropriation includes $640,000 for 2001 and 
 40.9   $6,458,000 for 2002.  
 40.10     The 2003 appropriation includes $717,000 for 2002 and 
 40.11  $6,975,000 for 2003.  
 40.12     Subd. 5.  [NONPUBLIC PUPIL AID.] For nonpublic pupil 
 40.13  education aid according to Minnesota Statutes, sections 123.79 
 40.14  and 123B.40 to 123B.43: 
 40.15       $14,099,000    .....     2002 
 40.16       $16,472,000    .....     2003 
 40.17     The 2002 appropriation includes $1,330,000 for 2001 and 
 40.18  $12,769,000 for 2002. 
 40.19     The 2003 appropriation includes $1,419,000 for 2002 and 
 40.20  $15,053,000 for 2003. 
 40.21     Subd. 6.  [NONPUBLIC PUPIL TRANSPORTATION.] For nonpublic 
 40.22  pupil transportation aid under Minnesota Statutes, section 
 40.23  123B.92, subdivision 9: 
 40.24       $20,488,000     .....     2002 
 40.25       $24,802,000     .....     2003 
 40.26     The 2002 appropriation includes $2,000,000 for 2001 and 
 40.27  $18,488,000 for 2002. 
 40.28     The 2003 appropriation includes $2,054,000 for 2002 and 
 40.29  $22,748,000 for 2003. 
 40.30     Subd. 7.  [CONSOLIDATION TRANSITION AID.] For districts 
 40.31  consolidating under Minnesota Statutes, section 123A.485: 
 40.32       $675,000        .....     2002 
 40.33       $669,000        .....     2003 
 40.34     The 2002 appropriation includes $44,000 for 2001 and 
 40.35  $631,000 for 2002. 
 40.36     The 2003 appropriation includes $70,000 for 2002 and 
 41.1   $599,000 for 2003. 
 41.2      Any balance in the first year does not cancel but is 
 41.3   available in the second year. 
 41.4      Subd. 8.  [TORNADO IMPACT; YELLOW MEDICINE EAST.] For a 
 41.5   grant to independent school district No. 2190, Yellow Medicine 
 41.6   East, for tornado impact declining enrollment aid: 
 41.7        $156,000     .....     2002
 41.8        $117,000     .....     2003
 41.9      Subd. 9.  [TORNADO IMPACT; ST. PETER.] For a grant to 
 41.10  independent school district No. 508, St. Peter, for tornado 
 41.11  impact declining enrollment aid: 
 41.12       $455,000     .....     2002 
 41.13     This grant is in lieu of funds authorized under Laws 1999, 
 41.14  chapter 241, article 4, section 22. 
 41.15     Subd. 10.  [ONE-ROOM SCHOOLHOUSE.] For a grant to 
 41.16  independent school district No. 690, Warroad, to operate the 
 41.17  Angle Inlet School: 
 41.18       $35,000      .....     2002 
 41.19       $35,000      .....     2003 
 41.20     This appropriation is one-time only. 
 41.21     Subd. 11.  [TRANSPORTATION STUDY.] For the costs of the 
 41.22  transportation study in section 52: 
 41.23       $10,000      .....     2002 
 41.24     Subd. 12.  [AID REPAYMENT; LITTLE FALLS.] For a positive 
 41.25  aid adjustment for school district No. 482, Little Falls: 
 41.26       $500,000     .....     2002 
 41.27     Sec. 55.  [REPEALER.] 
 41.28     Subdivision 1.  [EDUCATION REPEALERS.] (a) Minnesota 
 41.29  Statutes 2000, sections 124D.07; 126C.01, subdivision 10; 
 41.30  126C.16, subdivision 2; 126C.18; 126C.22; 126C.30; 126C.31; 
 41.31  126C.32; 126C.33; 126C.34; 126C.35; 126C.36; and 127A.44, are 
 41.32  repealed. 
 41.33     (b) Minnesota Statutes 2000, sections 126C.10, subdivisions 
 41.34  12 and 23; and 126C.17, subdivision 12, are repealed effective 
 41.35  for revenue for fiscal year 2002. 
 41.36     (c) Minnesota Statutes 2000, sections 126C.42, subdivisions 
 42.1   2 and 3; and 126C.47, are repealed effective for taxes payable 
 42.2   in 2002. 
 42.3      Subd. 2.  [TAX BILL PROVISIONS; REPEALED WITHOUT 
 42.4   EFFECT.] Notwithstanding Minnesota Statutes, chapter 645, or any 
 42.5   other law to the contrary, article 2, sections 1, 5, 7, 9, 10, 
 42.6   20, 21, and 23 of House File 1 if enacted during the 2001 First 
 42.7   Special Session, are repealed and the provisions are without 
 42.8   effect. 
 42.9      <b>[EFFECTIVE DATE.]</b> Subdivision 2 is effective the day 
 42.10  following final enactment. 
 42.11                             ARTICLE 2 
 42.12                        EDUCATION EXCELLENCE 
 42.13     Section 1.  [120A.415] [EXTENDED SCHOOL CALENDAR.] 
 42.14     A school board that offers licensed kindergarten through 
 42.15  grade 12 teachers the opportunity for more staff development 
 42.16  training and additional salary under section 122A.40, 
 42.17  subdivisions 7 and 7a, or 122A.41, subdivisions 4 and 4a, must 
 42.18  adopt as its school calendar a total of 240 days of student 
 42.19  instruction and staff development, of which the total number of 
 42.20  staff development days equals the difference between the total 
 42.21  number of days of student instruction and 240 days.  A school 
 42.22  board may schedule additional staff development days throughout 
 42.23  the calendar year. 
 42.24     <b>[EFFECTIVE DATE.]</b> This section is effective for the 
 42.25  2001-2002 school year and thereafter. 
 42.26     Sec. 2.  Minnesota Statutes 2000, section 120B.13, 
 42.27  subdivision 1, is amended to read: 
 42.28     Subdivision 1.  [PROGRAM STRUCTURE; TRAINING PROGRAMS FOR 
 42.29  TEACHERS.] (a) The advanced placement and international 
 42.30  baccalaureate programs are well-established academic programs 
 42.31  for mature, academically-directed high school students.  These 
 42.32  programs, in addition to providing academic rigor, offer sound 
 42.33  curricular design, accountability, comprehensive external 
 42.34  assessment, feedback to students and teachers, and the 
 42.35  opportunity for high school students to compete academically on 
 42.36  a global level.  Advanced placement and international 
 43.1   baccalaureate programs allow students to leave high school with 
 43.2   the academic skills and self-confidence to succeed in college 
 43.3   and beyond.  The advanced placement and international 
 43.4   baccalaureate programs help provide Minnesota students with 
 43.5   world-class educational opportunity. 
 43.6      (b) Critical to schools' educational success is ongoing 
 43.7   advanced placement/international baccalaureate-approved teacher 
 43.8   training.  A secondary teacher assigned by a district to teach 
 43.9   an advanced placement or international baccalaureate course or 
 43.10  other interested educator may participate in a training program 
 43.11  offered by the college board or International Baccalaureate 
 43.12  North America, Inc.  The state may pay a portion of the tuition, 
 43.13  room, and board costs a teacher or other interested educator 
 43.14  incurs in participating in a training program.  The commissioner 
 43.15  shall determine application procedures and deadlines, and select 
 43.16  teachers and other interested educators to participate in the 
 43.17  training program.  The procedures determined by the commissioner 
 43.18  shall, to the extent possible, ensure that advanced placement 
 43.19  and international baccalaureate courses become available in all 
 43.20  parts of the state and that a variety of course offerings are 
 43.21  available in school districts.  This subdivision does not 
 43.22  prevent teacher or other interested educator participation in 
 43.23  training programs offered by the college board or International 
 43.24  Baccalaureate North America, Inc., when tuition is paid by a 
 43.25  source other than the state. 
 43.26     Sec. 3.  [120B.15] [INVOLUNTARY CAREER TRACKING 
 43.27  PROHIBITED.] 
 43.28     A school district may develop grade-level curricula or 
 43.29  provide instruction that introduces students to various careers, 
 43.30  but must not require any curriculum, instruction, or 
 43.31  employment-related activity that obligates an elementary or 
 43.32  secondary student to involuntarily select a career, career 
 43.33  interest, employment goals, or related job training. 
 43.34     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 43.35  following final enactment. 
 43.36     Sec. 4.  Minnesota Statutes 2000, section 120B.30, 
 44.1   subdivision 1, is amended to read: 
 44.2      Subdivision 1.  [STATEWIDE TESTING.] (a) The commissioner, 
 44.3   with advice from experts with appropriate technical 
 44.4   qualifications and experience and stakeholders, shall include in 
 44.5   the comprehensive assessment system, for each grade level to be 
 44.6   tested, a test, which shall be aligned with the state's 
 44.7   graduation standards and administered annually to all students 
 44.8   in the third, fifth, seventh, and eighth grades.  The 
 44.9   commissioner shall establish one or more months during which 
 44.10  schools shall administer the tests to students each school 
 44.11  year.  Only Minnesota basic skills tests in reading, 
 44.12  mathematics, and writing shall fulfill students' basic skills 
 44.13  testing requirements for a passing state notation.  The passing 
 44.14  scores of the state tests in reading and mathematics are the 
 44.15  equivalent of:  
 44.16     (1) 70 percent correct for students entering grade 9 in 
 44.17  1996; and 
 44.18     (2) 75 percent correct for students entering grade 9 in 
 44.19  1997 and thereafter, as based on the first uniform test 
 44.20  administration of February 1998.  
 44.21     Notwithstanding Minnesota Rules, part 3501.0050, subpart 2, 
 44.22  at the written request of a parent or guardian, and with the 
 44.23  recommendation of the student's teacher, a district may offer 
 44.24  the test of basic requirements in reading, math, or writing to 
 44.25  an individual student beginning in grade 5.  The student must 
 44.26  take the same test on the same date as administered to students 
 44.27  in eighth grade or higher.  (b) Third and, fifth, and seventh 
 44.28  grade test results shall be available to districts for 
 44.29  diagnostic purposes affecting student learning and district 
 44.30  instruction and curriculum, and for establishing educational 
 44.31  accountability.  The commissioner must disseminate to the public 
 44.32  the third and, fifth, and seventh grade test results upon 
 44.33  receiving those results. 
 44.34     (b) (c) In addition, at the secondary high school level, 
 44.35  districts shall assess student performance in all required 
 44.36  learning areas and selected required standards within each area 
 45.1   of the profile of learning.  The testing instruments and, the 
 45.2   testing process, and the order of administration shall be 
 45.3   determined by the commissioner.  The results shall be aggregated 
 45.4   at the site and district level.  The testing shall be 
 45.5   administered beginning in the 1999-2000 school year and 
 45.6   thereafter. 
 45.7      (c) (d) The commissioner shall report school site and 
 45.8   school district student academic achievement levels of the 
 45.9   current and two immediately preceding school years.  The report 
 45.10  shall include students' unweighted mean test scores in each 
 45.11  tested subject, the unweighted mean test scores of only those 
 45.12  students enrolled in the school by January October 1 of the 
 45.13  previous current school year, and the unweighted test scores of 
 45.14  all students except those students receiving limited English 
 45.15  proficiency instruction.  The report also shall record 
 45.16  separately, in proximity to the reported performance levels, the 
 45.17  percentage of students of each gender and the percentages of 
 45.18  students who are eligible to receive a free or reduced price 
 45.19  school meal, demonstrate limited English proficiency, are 
 45.20  identified as migrant students, are a member of a major ethnic 
 45.21  or racial population, or are eligible to receive special 
 45.22  education services. 
 45.23     (d) (e) In addition to the testing and reporting 
 45.24  requirements under paragraphs (a), (b), and (c), and (d), the 
 45.25  commissioner shall include the following components in the 
 45.26  statewide public reporting system: 
 45.27     (1) uniform statewide testing of all third, fifth, seventh, 
 45.28  eighth, and post-eighth grade students that provides exemptions, 
 45.29  only with parent or guardian approval, for those very few 
 45.30  students for whom the student's individual education plan team 
 45.31  under sections 125A.05 and 125A.06, determines that the student 
 45.32  is incapable of taking a statewide test, or for a limited 
 45.33  English proficiency student under section 124D.59, subdivision 
 45.34  2, if the student has been in the United States for fewer than 
 45.35  12 months and for whom special language barriers exist, such as 
 45.36  the student's native language does not have a written form or 
 46.1   the district does not have access to appropriate interpreter 
 46.2   services for the student's native language; 
 46.3      (2) educational indicators that can be aggregated and 
 46.4   compared across school districts and across time on a statewide 
 46.5   basis, including average daily attendance, high school 
 46.6   graduation rates, and high school drop-out rates by age and 
 46.7   grade level; 
 46.8      (3) students' scores on the American College Test; and 
 46.9      (4) participation in the National Assessment of Educational 
 46.10  Progress so that the state can benchmark its performance against 
 46.11  the nation and other states, and, where possible, against other 
 46.12  countries, and contribute to the national effort to monitor 
 46.13  achievement. 
 46.14     (e) (f) Districts must report exemptions under paragraph 
 46.15  (d) (e), clause (1), to the commissioner consistent with a 
 46.16  format provided by the commissioner. 
 46.17     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 46.18  following final enactment except that the seventh grade testing 
 46.19  requirement applies to the 2002-2003 school year and later. 
 46.20     Sec. 5.  Minnesota Statutes 2000, section 120B.35, is 
 46.21  amended to read: 
 46.22     120B.35 [STUDENT ACADEMIC ACHIEVEMENT LEVELS AND PROGRESS.] 
 46.23     Subdivision 1.  [ADEQUATE YEARLY PROGRESS OF SCHOOLS AND 
 46.24  STUDENTS.] The commissioner must develop and implement a system 
 46.25  for measuring and reporting academic achievement and individual 
 46.26  student progress, consistent with the statewide educational 
 46.27  accountability and reporting system.  The components of the 
 46.28  system must measure the adequate yearly progress of schools and 
 46.29  individual students:  students' current achievement in schools 
 46.30  under subdivision 2; and individual students' educational 
 46.31  progress over time under subdivision 3.  The system also must 
 46.32  include statewide measures of student academic achievement that 
 46.33  identify schools with high levels of achievement, and also 
 46.34  schools with low levels of achievement that need improvement.  
 46.35  When determining a school's effect, the data must include both 
 46.36  statewide measures of student achievement and, to the extent 
 47.1   annual tests are administered, indicators of achievement growth 
 47.2   that take into account a student's prior achievement.  
 47.3   Indicators of achievement and prior achievement must be based on 
 47.4   highly reliable statewide or districtwide assessments.  
 47.5   Indicators that take into account a student's prior achievement 
 47.6   must not be used to disregard a school's low achievement or to 
 47.7   exclude a school from a program to improve low achievement 
 47.8   levels.  The commissioner by January 15, 2002, must submit a 
 47.9   plan for integrating these components to the chairs of the 
 47.10  legislative committees having policy and budgetary 
 47.11  responsibilities for elementary and secondary education.  
 47.12     Subd. 2.  [STUDENT ACADEMIC ACHIEVEMENT.] (a) Each school 
 47.13  year, a school district must determine if the student 
 47.14  achievement levels at each school site meet state and local 
 47.15  expectations.  If student achievement levels at a school site do 
 47.16  not meet state and local expectations and the site has not made 
 47.17  adequate yearly progress for two out of three consecutive school 
 47.18  years, beginning with the 2000-2001 2001-2002 school year, the 
 47.19  district must work with the school site to adopt a plan to raise 
 47.20  student achievement levels to meet state and local 
 47.21  expectations.  The legislature will determine state expectations 
 47.22  after receiving a recommendation from The commissioner of 
 47.23  children, families, and learning shall establish student 
 47.24  academic achievement levels.  
 47.25     (b) School sites identified as not meeting expectations 
 47.26  must develop continuous improvement plans in order to meet state 
 47.27  and local expectations for student academic achievement.  The 
 47.28  department, at a district's request, must assist the district 
 47.29  and the school site in developing a plan to improve student 
 47.30  achievement.  The plan must include parental involvement 
 47.31  components. 
 47.32     (c) The commissioner must: 
 47.33     (1) provide assistance to school sites and districts 
 47.34  identified as not meeting expectations; and 
 47.35     (2) provide technical assistance to schools that integrate 
 47.36  student progress measures under subdivision 3 in the school 
 48.1   continuous improvement plan. 
 48.2      (d) The commissioner shall establish and maintain a 
 48.3   continuous improvement Web site designed to make data on every 
 48.4   school and district available to parents, teachers, 
 48.5   administrators, community members, and the general public. 
 48.6      Subd. 3.  [STUDENT PROGRESS ASSESSMENT.] (a) The 
 48.7   educational assessment system component measuring individual 
 48.8   students' educational progress must be based, to the extent 
 48.9   annual tests are administered, on indicators of achievement 
 48.10  growth that show an individual student's prior achievement.  
 48.11  Indicators of achievement and prior achievement must be based on 
 48.12  highly reliable statewide or districtwide assessments.  
 48.13     (b) The commissioner must identify effective models for 
 48.14  measuring individual student progress that enable a school 
 48.15  district or school site to perform gains-based analysis, 
 48.16  including evaluating the effects of the teacher, school, and 
 48.17  school district on student achievement over time.  At least one 
 48.18  model must be a "value-added" assessment model that reliably 
 48.19  estimates those effects for classroom settings where a single 
 48.20  teacher teaches multiple subjects to the same group of students, 
 48.21  for team teaching arrangements, and for other teaching 
 48.22  circumstances. 
 48.23     (c) If a district has an accountability plan that includes 
 48.24  gains-based analysis or "value-added" assessment, the 
 48.25  commissioner shall, to the extent practicable, incorporate those 
 48.26  measures in determining whether the district or school site 
 48.27  meets expectations.  The department must coordinate with the 
 48.28  district in evaluating school sites and continuous improvement 
 48.29  plans, consistent with best practices.  
 48.30     Subd. 4.  [IMPROVING SCHOOLS.] Consistent with the 
 48.31  requirements of this section, the commissioner of children, 
 48.32  families, and learning must establish a second achievement 
 48.33  benchmark to identify improving schools.  The commissioner must 
 48.34  recommend to the legislature by February 15, 2002, indicators in 
 48.35  addition to the achievement benchmark for identifying improving 
 48.36  schools, including an indicator requiring a school to 
 49.1   demonstrate ongoing successful use of best teaching practices. 
 49.2      <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 49.3   following final enactment. 
 49.4      Sec. 6.  Minnesota Statutes 2000, section 121A.582, is 
 49.5   amended to read: 
 49.6      121A.582 [STUDENT DISCIPLINE; REASONABLE FORCE.] 
 49.7      Subdivision 1.  [REASONABLE FORCE STANDARD.] (a) A 
 49.8   teacher or school principal, in exercising the person's lawful 
 49.9   authority, may use reasonable force when it is necessary under 
 49.10  the circumstances to correct or restrain a student or prevent 
 49.11  bodily harm or death to another. 
 49.12     (b) A school employee, school bus driver, or other agent of 
 49.13  a district, in exercising the person's lawful authority, may use 
 49.14  reasonable force when it is necessary under the circumstances to 
 49.15  restrain a student or prevent bodily harm or death to another. 
 49.16     (c) Paragraphs (a) and (b) do not authorize conduct 
 49.17  prohibited under sections 121A.58 and 121A.67. 
 49.18     Subd. 2.  [CIVIL LIABILITY.] (a) A teacher or school 
 49.19  principal who, in the exercise of the person's lawful authority, 
 49.20  uses reasonable force under the standard in subdivision 1, 
 49.21  paragraph (a), has a defense against a civil action for damages 
 49.22  under section 123B.25. 
 49.23     (b) A school employee, bus driver, or other agent of a 
 49.24  district who, in the exercise of the person's lawful authority, 
 49.25  uses reasonable force under the standard in subdivision 1, 
 49.26  paragraph (b), has a defense against a civil action for damages 
 49.27  under section 123B.25. 
 49.28     Subd. 3.  [CRIMINAL PROSECUTION.] (a) A teacher or school 
 49.29  principal who, in the exercise of the person's lawful authority, 
 49.30  uses reasonable force under the standard in subdivision 1, 
 49.31  paragraph (a), has a defense against a criminal prosecution 
 49.32  under section 609.06, subdivision 1. 
 49.33     (b) A school employee, bus driver, or other agent of a 
 49.34  district who, in the exercise of the person's lawful authority, 
 49.35  uses reasonable force under the standard in subdivision 1, 
 49.36  paragraph (b), has a defense against a criminal prosecution 
 50.1   under section 609.06, subdivision 1. 
 50.2      Subd. 4.  [SUPPLEMENTARY RIGHTS AND DEFENSES.] Any right or 
 50.3   defense in this section is supplementary to those specified in 
 50.4   section 121A.58, 121A.67, 123B.25, or 609.06, subdivision 1. 
 50.5      <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 50.6   following final enactment. 
 50.7      Sec. 7.  Minnesota Statutes 2000, section 122A.18, 
 50.8   subdivision 2, is amended to read: 
 50.9      Subd. 2.  [TEACHER AND SUPPORT PERSONNEL QUALIFICATIONS.] 
 50.10  (a) The board of teaching must issue licenses under its 
 50.11  jurisdiction to persons the board finds to be qualified and 
 50.12  competent for their respective positions. 
 50.13     (b) The board must require a person to successfully 
 50.14  complete an examination of skills in reading, writing, and 
 50.15  mathematics before being granted an initial teaching license to 
 50.16  provide direct instruction to pupils in prekindergarten, 
 50.17  elementary, secondary, or special education programs.  The board 
 50.18  must require colleges and universities offering a board approved 
 50.19  teacher preparation program to provide remedial assistance that 
 50.20  includes a formal diagnostic component to persons enrolled in 
 50.21  their institution who did not achieve a qualifying score on the 
 50.22  skills examination, including those for whom English is a second 
 50.23  language.  The colleges and universities must provide assistance 
 50.24  in the specific academic areas of deficiency in which the person 
 50.25  did not achieve a qualifying score.  School districts must 
 50.26  provide similar, appropriate, and timely remedial assistance 
 50.27  that includes a formal diagnostic component and mentoring to 
 50.28  those persons employed by the district who completed their 
 50.29  teacher education program outside the state of Minnesota, 
 50.30  received a one-year license to teach in Minnesota and did not 
 50.31  achieve a qualifying score on the skills examination, including 
 50.32  those persons for whom English is a second language.  The board 
 50.33  of teaching shall report annually to the education committees of 
 50.34  the legislature on the total number of teacher candidates during 
 50.35  the most recent school year taking the skills examination, the 
 50.36  number who achieve a qualifying score on the examination, the 
 51.1   number who do not achieve a qualifying score on the examination, 
 51.2   the distribution of all candidates' scores, the number of 
 51.3   candidates who have taken the examination at least once before, 
 51.4   and the number of candidates who have taken the examination at 
 51.5   least once before and achieve a qualifying score.  
 51.6      (c) A person who has completed an approved teacher 
 51.7   preparation program and obtained a one-year license to teach, 
 51.8   but has not successfully completed the skills examination, may 
 51.9   renew the one-year license for two additional one-year periods.  
 51.10  Each renewal of the one-year license is contingent upon the 
 51.11  licensee: 
 51.12     (1) providing evidence of participating in an approved 
 51.13  remedial assistance program provided by a school district or 
 51.14  post-secondary institution that includes a formal diagnostic 
 51.15  component in the specific areas in which the licensee did not 
 51.16  obtain qualifying scores; and 
 51.17     (2) attempting to successfully complete the skills 
 51.18  examination during the period of each one-year license. 
 51.19     (d) The board of teaching must grant continuing licenses 
 51.20  only to those persons who have met board criteria for granting a 
 51.21  continuing license, which includes successfully completing the 
 51.22  skills examination in reading, writing, and mathematics. 
 51.23     (e) All colleges and universities approved by the board of 
 51.24  teaching to prepare persons for teacher licensure must include 
 51.25  in their teacher preparation programs a common core of teaching 
 51.26  knowledge and skills to be acquired by all persons recommended 
 51.27  for teacher licensure.  This common core shall meet the 
 51.28  standards developed by the interstate new teacher assessment and 
 51.29  support consortium in its 1992 "model standards for beginning 
 51.30  teacher licensing and development."  Amendments to standards 
 51.31  adopted under this paragraph are covered by chapter 14.  The 
 51.32  board of teaching shall report annually to the education 
 51.33  committees of the legislature on the performance of teacher 
 51.34  candidates on common core assessments of knowledge and skills 
 51.35  under this paragraph during the most recent school year. 
 51.36     <b>[EFFECTIVE DATE.]</b> This section is effective for the 
 52.1   2001-2002 school year and later. 
 52.2      Sec. 8.  Minnesota Statutes 2000, section 122A.24, 
 52.3   subdivision 3, is amended to read: 
 52.4      Subd. 3.  [PROGRAM APPROVAL.] (a) The board of teaching 
 52.5   must approve alternative preparation programs based on criteria 
 52.6   adopted by the board. 
 52.7      (b) An alternative preparation program at a school 
 52.8   district, group of schools, or an education district must be 
 52.9   affiliated with a post-secondary institution that has a teacher 
 52.10  preparation program.  The board shall permit demonstration of 
 52.11  licensure competencies in school-based and other nontraditional 
 52.12  pathways to teacher licensure. 
 52.13     Sec. 9.  Minnesota Statutes 2000, section 122A.25, is 
 52.14  amended by adding a subdivision to read: 
 52.15     Subd. 4.  [BACKGROUND CHECK.] A school district or charter 
 52.16  school shall provide the board of teaching with confirmation 
 52.17  that criminal background checks have been completed for all 
 52.18  nonlicensed community experts employed by the district or 
 52.19  charter school and approved by the board of teaching under this 
 52.20  section. 
 52.21     Sec. 10.  Minnesota Statutes 2000, section 122A.40, 
 52.22  subdivision 7, is amended to read: 
 52.23     Subd. 7.  [TERMINATION OF CONTRACT AFTER PROBATIONARY 
 52.24  PERIOD.] (a) A teacher who has completed a probationary period 
 52.25  in any district, and who has not been discharged or advised of a 
 52.26  refusal to renew the teacher's contract pursuant to under 
 52.27  subdivision 5, shall elect to have a continuing contract with 
 52.28  such district where contract terms and conditions, including 
 52.29  salary and salary increases, are established based either on the 
 52.30  length of the school calendar or an extended school calendar 
 52.31  under section 120A.415.  Thereafter, the teacher's contract must 
 52.32  remain in full force and effect, except as modified by mutual 
 52.33  consent of the board and the teacher, until terminated by a 
 52.34  majority roll call vote of the full membership of the board 
 52.35  prior to April 1 upon one of the grounds specified in 
 52.36  subdivision 9 or July 1 upon one of the grounds specified in 
 53.1   subdivision 10 or 11, or until the teacher is discharged 
 53.2   pursuant to subdivision 13, or by the written resignation of the 
 53.3   teacher submitted prior to April 1.  If an agreement as to the 
 53.4   terms and conditions of employment for the succeeding school 
 53.5   year has not been adopted pursuant to the provisions of sections 
 53.6   179A.01 to 179A.25 prior to March 1, the teacher's right of 
 53.7   resignation is extended to the 30th calendar day following the 
 53.8   adoption of said contract in compliance with section 179A.20, 
 53.9   subdivision 5.  Such written resignation by the teacher is 
 53.10  effective as of June 30 if submitted prior to that date and the 
 53.11  teachers' right of resignation for the school year then 
 53.12  beginning shall cease on July 15.  Before a teacher's contract 
 53.13  is terminated by the board, the board must notify the teacher in 
 53.14  writing and state its ground for the proposed termination in 
 53.15  reasonable detail together with a statement that the teacher may 
 53.16  make a written request for a hearing before the board within 14 
 53.17  days after receipt of such notification.  If the grounds are 
 53.18  those specified in subdivision 9 or 13, the notice must also 
 53.19  state a teacher may request arbitration under subdivision 15.  
 53.20  Within 14 days after receipt of this notification the teacher 
 53.21  may make a written request for a hearing before the board or an 
 53.22  arbitrator and it shall be granted upon reasonable notice to the 
 53.23  teacher of the date set for hearing, before final action is 
 53.24  taken.  If no hearing is requested within such period, it shall 
 53.25  be deemed acquiescence by the teacher to the board's action.  
 53.26  Such termination shall take effect at the close of the school 
 53.27  year in which the contract is terminated in the manner 
 53.28  aforesaid.  Such contract may be terminated at any time by 
 53.29  mutual consent of the board and the teacher and this section 
 53.30  does not affect the powers of a board to suspend, discharge, or 
 53.31  demote a teacher under and pursuant to other provisions of law. 
 53.32     (b) A teacher electing to have a continuing contract based 
 53.33  on the extended school calendar under section 120A.415 must 
 53.34  participate in staff development training under subdivision 7a 
 53.35  and shall receive an increased base salary. 
 53.36     <b>[EFFECTIVE DATE.]</b> This section is effective for the 
 54.1   2001-2002 school year and thereafter. 
 54.2      Sec. 11.  Minnesota Statutes 2000, section 122A.40, is 
 54.3   amended by adding a subdivision to read: 
 54.4      Subd. 7a.  [ADDITIONAL STAFF DEVELOPMENT AND SALARY.] (a) A 
 54.5   teacher electing to have a continuing contract based on the 
 54.6   extended school calendar under section 120A.415 must participate 
 54.7   in a total number of staff development days where the total 
 54.8   number of such days equals the difference between the total 
 54.9   number of days of student instruction and 240 days.  Staff 
 54.10  development includes peer mentoring, peer gathering, continuing 
 54.11  education, professional development, or other training.  A 
 54.12  school board may schedule such days throughout the calendar 
 54.13  year.  Staff development programs provided during such days 
 54.14  shall enable teachers to achieve the staff development outcomes 
 54.15  under section 122A.60, subdivision 3. 
 54.16     (b) A public employer and the exclusive representative of 
 54.17  the teachers must include terms in the collective bargaining 
 54.18  agreement for all teachers who participate in additional staff 
 54.19  development days under paragraph (a) that increase base salaries.
 54.20     <b>[EFFECTIVE DATE.]</b> This section is effective for the 
 54.21  2001-2002 school year and thereafter. 
 54.22     Sec. 12.  Minnesota Statutes 2000, section 122A.41, 
 54.23  subdivision 4, is amended to read: 
 54.24     Subd. 4.  [PERIOD OF SERVICE AFTER PROBATIONARY PERIOD; 
 54.25  DISCHARGE OR DEMOTION.] (a) After the completion of such 
 54.26  probationary period, without discharge, such teachers as are 
 54.27  thereupon reemployed shall continue in service and hold their 
 54.28  respective position during good behavior and efficient and 
 54.29  competent service and must not be discharged or demoted except 
 54.30  for cause after a hearing.  The terms and conditions of a 
 54.31  teacher's employment contract, including salary and salary 
 54.32  increases, must be based either on the length of the school year 
 54.33  or an extended school calendar under section 120A.415.  
 54.34     (b) A probationary teacher is deemed to have been 
 54.35  reemployed for the ensuing school year, unless the school board 
 54.36  in charge of such school gave such teacher notice in writing 
 55.1   before July 1 of the termination of such employment.  
 55.2      (c) A teacher electing to have an employment contract based 
 55.3   on the extended school calendar under section 120A.415 must 
 55.4   participate in staff development training under subdivision 4a 
 55.5   and shall receive an increased base salary. 
 55.6      <b>[EFFECTIVE DATE.]</b> This section is effective for the 
 55.7   2001-2002 school year and thereafter. 
 55.8      Sec. 13.  Minnesota Statutes 2000, section 122A.41, is 
 55.9   amended by adding a subdivision to read: 
 55.10     Subd. 4a.  [ADDITIONAL STAFF DEVELOPMENT AND SALARY.] (a) A 
 55.11  teacher electing to have a continuing contract based on the 
 55.12  extended school calendar under section 120A.415 must participate 
 55.13  in a total number of staff development days where the total 
 55.14  number of such days equals the difference between the total 
 55.15  number of days of student instruction and 240 days.  Staff 
 55.16  development includes peer mentoring, peer gathering, continuing 
 55.17  education, professional development, or other training.  A 
 55.18  school board may schedule such days throughout the calendar 
 55.19  year.  Staff development programs provided during such days 
 55.20  shall enable teachers to achieve the staff development outcomes 
 55.21  under section 122A.60, subdivision 3. 
 55.22     (b) A public employer and the exclusive representative of 
 55.23  the teachers must include terms in the collective bargaining 
 55.24  agreement for all teachers who participate in additional staff 
 55.25  development days under paragraph (a) that increase base salaries.
 55.26     <b>[EFFECTIVE DATE.]</b> This section is effective for the 
 55.27  2001-2002 school year and thereafter. 
 55.28     Sec. 14.  Minnesota Statutes 2000, section 122A.41, is 
 55.29  amended by adding a subdivision to read: 
 55.30     Subd. 5a.  [PROBATIONARY PERIOD FOR PRINCIPALS HIRED 
 55.31  INTERNALLY.] A board and the exclusive representative of the 
 55.32  school principals in the district may negotiate a plan for a 
 55.33  probationary period of up to two school years for licensed 
 55.34  teachers employed by the board who are subsequently employed by 
 55.35  the board as a licensed school principal. 
 55.36     <b>[EFFECTIVE DATE.]</b> This section is effective for the 
 56.1   2001-2002 school year and following. 
 56.2      Sec. 15.  Minnesota Statutes 2000, section 122A.41, 
 56.3   subdivision 7, is amended to read: 
 56.4      Subd. 7.  [HEARING OF CHARGES AGAINST TEACHER.] The charges 
 56.5   against a teacher must be in writing and signed by the person 
 56.6   making the same and then filed with the secretary or clerk of 
 56.7   the school board having charge of the school in which the 
 56.8   teacher is employed.  Before the school board, before 
 56.9   discharging or demoting discharges or demotes a teacher, must 
 56.10  then accord the teacher against whom charges have been filed a 
 56.11  full hearing and give to the teacher at least ten days' notice 
 56.12  in writing of the time and place of such hearing.  The notice 
 56.13  may be served personally or sent by certified mail addressed to 
 56.14  the teacher at the teacher's last known post office address. the 
 56.15  board must notify the teacher in writing and state in reasonable 
 56.16  detail its grounds for the proposed discharge or demotion, 
 56.17  together with a statement that the teacher may request in 
 56.18  writing within ten days after receiving the notice a hearing 
 56.19  before the board.  The board may have the notice served 
 56.20  personally or may send it by certified mail addressed to the 
 56.21  teacher at the teacher's last known post office address.  The 
 56.22  teacher, under subdivision 13, also may elect a hearing before 
 56.23  an arbitrator instead of the school board.  Within ten days 
 56.24  after receiving the notice the teacher may request in writing a 
 56.25  hearing before the board or an arbitrator and it shall be 
 56.26  granted.  The teacher must be given reasonable notice of the 
 56.27  time and place of the hearing before final action is taken.  A 
 56.28  teacher who fails to request a hearing within ten days is 
 56.29  considered to acquiesce in the board's action.  If the charge is 
 56.30  made by a person not connected with the school system the charge 
 56.31  may be disregarded by the school board.  If the grounds are 
 56.32  those specified in subdivision 6, clause (1), (2), (3), or (4), 
 56.33  the notice must also state a teacher may request arbitration 
 56.34  under subdivision 13.  At the hearing, the school board or 
 56.35  arbitrator shall hear all evidence that may be adduced in 
 56.36  support of the charges and for the teacher's defense to the 
 57.1   charges.  Either party has the right to have a written record of 
 57.2   the hearing at the expense of the board and to have witnesses 
 57.3   subpoenaed and all witnesses so subpoenaed must be examined 
 57.4   under oath.  Any member of the school board conducting such a 
 57.5   hearing has authority to issue subpoenas and to administer oaths 
 57.6   to witnesses. 
 57.7      <b>[EFFECTIVE DATE.]</b> This section is effective for the 
 57.8   2002-2003 school year and following. 
 57.9      Sec. 16.  Minnesota Statutes 2000, section 122A.41, 
 57.10  subdivision 13, is amended to read: 
 57.11     Subd. 13.  [HEARING AND DETERMINATION BY ARBITRATOR.] A 
 57.12  teacher against whom charges have been filed alleging any cause 
 57.13  for discharge or demotion specified in subdivision 6, clause 
 57.14  (1), (2), (3), or (4), may elect a hearing before an arbitrator 
 57.15  instead of the school board.  The hearing is governed by this 
 57.16  subdivision.  
 57.17     (a) The teacher must make a written request for a hearing 
 57.18  before an arbitrator within ten days after receiving a written 
 57.19  notice of the filing of charges required by subdivision 7.  
 57.20  Failure to request a hearing before an arbitrator during this 
 57.21  period is considered acquiescence to a hearing before the 
 57.22  board board's action. 
 57.23     (b) If the teacher and the school board are unable to 
 57.24  mutually agree on an arbitrator, the board must request from the 
 57.25  bureau of mediation services a list of five persons to serve as 
 57.26  an arbitrator.  If the teacher and the school board are unable 
 57.27  to mutually agree on an arbitrator from the list provided, the 
 57.28  parties shall alternately strike names from the list until the 
 57.29  name of one arbitrator remains.  The person remaining after the 
 57.30  striking procedure must be the arbitrator.  If the parties are 
 57.31  unable to agree on who shall strike the first name, the question 
 57.32  must be decided by a flip of a coin.  The teacher and the board 
 57.33  must share equally the costs and fees of the arbitrator. 
 57.34     (c) The arbitrator shall determine, by a preponderance of 
 57.35  the evidence, whether the causes specified in subdivision 6, 
 57.36  clause (1), (2), (3), or (4), exist to support the proposed 
 58.1   discharge or demotion.  A lesser penalty than discharge or 
 58.2   demotion may be imposed by the arbitrator only to the extent 
 58.3   that either party proposes such lesser penalty in the 
 58.4   proceeding.  In making the determination, the arbitration 
 58.5   proceeding is governed by sections 572.11 to 572.17 and by the 
 58.6   collective bargaining agreement applicable to the teacher. 
 58.7      (d) An arbitration hearing conducted under this subdivision 
 58.8   is a meeting for preliminary consideration of allegations or 
 58.9   charges within the meaning of section 13D.05, subdivision 3, 
 58.10  paragraph (a), and must be closed, unless the teacher requests 
 58.11  it to be open. 
 58.12     (e) The arbitrator's decision is final and binding on the 
 58.13  parties, subject to sections 572.18 to 572.26.  
 58.14     <b>[EFFECTIVE DATE.]</b> This section is effective for the 
 58.15  2002-2003 school year and following. 
 58.16     Sec. 17.  [122A.76] [BEST PRACTICES.] 
 58.17     "Best practices" means research-based proven practices.  
 58.18     Sec. 18.  Minnesota Statutes 2000, section 123B.03, 
 58.19  subdivision 3, is amended to read: 
 58.20     Subd. 3.  [DEFINITIONS.] For purposes of this section: 
 58.21     (a) "School" means a school as defined in section 120A.22, 
 58.22  subdivision 4, except a home-school, and includes a school 
 58.23  receiving tribal contract or grant school aid under section 
 58.24  124D.83; school, for the purposes of this section, also means a 
 58.25  service cooperative, a special education cooperative, or an 
 58.26  education district under Minnesota Statutes 1997 Supplement, 
 58.27  section 123.35, a charter school under section 124D.10, and a 
 58.28  joint powers district under section 471.59. 
 58.29     (b) "School hiring authority" means the school principal or 
 58.30  other person having general control and supervision of the 
 58.31  school. 
 58.32     Sec. 19.  Minnesota Statutes 2000, section 124D.03, 
 58.33  subdivision 4, is amended to read: 
 58.34     Subd. 4.  [DESEGREGATION DISTRICT TRANSFERS.] (a) This 
 58.35  subdivision applies to a transfer into or out of a district that 
 58.36  has a desegregation plan approved by the commissioner of 
 59.1   children, families, and learning.  
 59.2      (b) An application to transfer may be submitted at any time 
 59.3   for enrollment beginning at any time. 
 59.4      (c) The parent or guardian of a pupil who is a resident of 
 59.5   a district that has a desegregation plan must submit an 
 59.6   application to the resident district.  If the district accepts 
 59.7   the application, it must forward the application to the 
 59.8   nonresident district. 
 59.9      (d) The parent or guardian of a pupil who applies for 
 59.10  enrollment in a nonresident district that has a desegregation 
 59.11  plan must submit an application to the nonresident district.  
 59.12     (e) Each district must accept or reject an application it 
 59.13  receives and notify the parent or guardian in writing within 30 
 59.14  calendar days of receiving the application.  A notification of 
 59.15  acceptance must include the date enrollment can begin. 
 59.16     (f) If an application is rejected, the district must state 
 59.17  the reason for rejection in the notification.  If a district 
 59.18  that has a desegregation plan rejects an application for a 
 59.19  reason related to the desegregation plan, the district must 
 59.20  state with specificity how acceptance of the application would 
 59.21  result in noncompliance with department of children, families, 
 59.22  and learning rules with respect to the school or program for 
 59.23  which application was made.  
 59.24     (g) If an application is accepted, the parent or guardian 
 59.25  must notify the nonresident district in writing within 15 
 59.26  calendar days of receiving the acceptance whether the pupil 
 59.27  intends to enroll in the nonresident district.  Notice of 
 59.28  intention to enroll obligates the pupil to enroll in the 
 59.29  nonresident district, unless the boards of the resident and 
 59.30  nonresident districts agree otherwise.  If a parent or guardian 
 59.31  does not notify the nonresident district, the pupil may not 
 59.32  enroll in that nonresident district at that time, unless the 
 59.33  boards of the resident and nonresident district agree otherwise. 
 59.34     (h) Within 15 calendar days of receiving the notice from 
 59.35  the parent or guardian, the nonresident district shall notify 
 59.36  the resident district in writing of the pupil's intention to 
 60.1   enroll in the nonresident district.  
 60.2      (i) A pupil enrolled in a nonresident district under this 
 60.3   subdivision a desegregation plan approved by the commissioner of 
 60.4   children, families, and learning is not required to make annual 
 60.5   or periodic application for enrollment but may remain enrolled 
 60.6   in the same district.  A pupil may transfer to the resident 
 60.7   district at any time.  
 60.8      (d) Section 124D.03, subdivision 2, applies to a transfer 
 60.9   into or out of a district with a desegregation plan. 
 60.10     (j) A pupil enrolled in a nonresident district and applying 
 60.11  to transfer into or out of a district that has a desegregation 
 60.12  plan must follow the procedures of this subdivision.  For the 
 60.13  purposes of this type of transfer, "resident district" means the 
 60.14  nonresident district in which the pupil is enrolled at the time 
 60.15  of application.  
 60.16     (k) A district that has a desegregation plan approved by 
 60.17  the commissioner must accept or reject each individual 
 60.18  application in a manner that will enable compliance with its 
 60.19  desegregation plan. 
 60.20     Sec. 20.  Minnesota Statutes 2000, section 124D.10, is 
 60.21  amended by adding a subdivision to read: 
 60.22     Subd. 3a.  [CONFLICT OF INTEREST.] (a) A member of a 
 60.23  charter school board of directors is prohibited from serving as 
 60.24  a member of the board of directors or as an employee or agent of 
 60.25  or a contractor with a for-profit entity with whom the charter 
 60.26  school contracts, directly or indirectly, for professional 
 60.27  services, goods, or facilities.  A violation of this prohibition 
 60.28  renders a contract voidable at the option of the commissioner.  
 60.29  A member of a charter school board of directors who violates 
 60.30  this prohibition shall be individually liable to the charter 
 60.31  school for any damage caused by the violation.  
 60.32     (b) An individual may serve as a member of the board of 
 60.33  directors if no conflict of interest under paragraph (a) exists. 
 60.34     (c) A member of a charter school board of directors that 
 60.35  serves as a member of the board of directors or as an employee 
 60.36  or agent of or a contractor with a nonprofit entity with whom 
 61.1   the charter school contracts, directly or indirectly, for 
 61.2   professional services, goods, or facilities, must disclose all 
 61.3   potential conflicts to the commissioner. 
 61.4      (d) The conflict of interest provisions under this 
 61.5   subdivision do not apply to compensation paid to a teacher 
 61.6   employed by the charter school who also serves as a member of 
 61.7   the board of directors. 
 61.8      (e) The conflict of interest provisions under this 
 61.9   subdivision do not apply to a teacher who provides services to a 
 61.10  charter school through a cooperative formed under chapter 308A 
 61.11  when the teacher also serves on the charter school board of 
 61.12  directors. 
 61.13     <b>[EFFECTIVE DATE.]</b> This section is effective for the 
 61.14  2001-2002 school year and following. 
 61.15     Sec. 21.  Minnesota Statutes 2000, section 124D.10, 
 61.16  subdivision 4, is amended to read: 
 61.17     Subd. 4.  [FORMATION OF SCHOOL.] (a) A sponsor may 
 61.18  authorize one or more licensed teachers under section 122A.18, 
 61.19  subdivision 1, to operate a charter school subject to approval 
 61.20  by the commissioner.  A board must vote on charter school 
 61.21  application for sponsorship no later than 90 days after 
 61.22  receiving the application.  After 90 days, the applicant may 
 61.23  apply to the commissioner.  If a board elects not to sponsor a 
 61.24  charter school, the applicant may appeal the board's decision to 
 61.25  the commissioner.  If the commissioner authorizes the school, 
 61.26  the commissioner must sponsor the school according to this 
 61.27  section The commissioner may elect to sponsor the charter school 
 61.28  or assist the applicant in finding an eligible sponsor.  The 
 61.29  school must be organized and operated as a cooperative under 
 61.30  chapter 308A or nonprofit corporation under chapter 317A and the 
 61.31  provisions under the applicable chapter shall apply to the 
 61.32  school except as provided in this section.  Notwithstanding 
 61.33  sections 465.717 and 465.719, a school district may create a 
 61.34  corporation for the purpose of creating a charter school.  
 61.35     (b) Before the operators may form and operate a school, the 
 61.36  sponsor must file an affidavit with the commissioner stating its 
 62.1   intent to authorize a charter school.  The affidavit must state 
 62.2   the terms and conditions under which the sponsor would authorize 
 62.3   a charter school.  The commissioner must approve or disapprove 
 62.4   the sponsor's proposed authorization within 60 days of receipt 
 62.5   of the affidavit.  Failure to obtain commissioner approval 
 62.6   precludes a sponsor from authorizing the charter school that was 
 62.7   the subject of the affidavit.  
 62.8      (c) The operators authorized to organize and operate a 
 62.9   school, before entering into a contract or other agreement for 
 62.10  professional or other services, goods, or facilities, must hold 
 62.11  an election for members of the school's board of directors in a 
 62.12  timely manner after the school is operating incorporate as a 
 62.13  cooperative under chapter 308A or as a nonprofit corporation 
 62.14  under chapter 317A and must establish a board of directors 
 62.15  composed of at least five members until a timely election for 
 62.16  members of the charter school board of directors is held 
 62.17  according to the school's articles and bylaws.  A charter school 
 62.18  board of directors must be composed of at least five members.  
 62.19  Any staff members who are employed at the school, including 
 62.20  teachers providing instruction under a contract with a 
 62.21  cooperative, and all parents of children enrolled in the school 
 62.22  may participate in the election for members of the school's 
 62.23  board of directors.  Licensed teachers employed at the school, 
 62.24  including teachers providing instruction under a contract with a 
 62.25  cooperative, must be a majority of the members of the board of 
 62.26  directors before the school completes its third year of 
 62.27  operation, unless the commissioner waives the requirement 
 62.28  for the school a majority of licensed teachers on the board.  A 
 62.29  provisional board may operate before the election of the 
 62.30  school's board of directors.  Board of director meetings must 
 62.31  comply with chapter 13D. 
 62.32     (d) The granting or renewal of a charter by a sponsoring 
 62.33  entity must not be conditioned upon the bargaining unit status 
 62.34  of the employees of the school.  
 62.35     (e) The commissioner annually must provide timely financial 
 62.36  management training to newly elected members of a charter school 
 63.1   board of directors and ongoing training to other members of a 
 63.2   charter school board of directors.  Training must address ways 
 63.3   to: 
 63.4      (1) proactively assess opportunities for a charter school 
 63.5   to maximize all available revenue sources; 
 63.6      (2) establish and maintain complete, auditable records for 
 63.7   the charter school; 
 63.8      (3) establish proper filing techniques; 
 63.9      (4) document formal actions of the charter school, 
 63.10  including meetings of the charter school board of directors; 
 63.11     (5) properly manage and retain charter school and student 
 63.12  records; 
 63.13     (6) comply with state and federal payroll recordkeeping 
 63.14  requirements; and 
 63.15     (7) address other similar factors that facilitate 
 63.16  establishing and maintaining complete records on the charter 
 63.17  school's operations.  
 63.18     <b>[EFFECTIVE DATE.]</b> This section is effective for the 
 63.19  2001-2002 school year and later. 
 63.20     Sec. 22.  Minnesota Statutes 2000, section 124D.10, is 
 63.21  amended by adding a subdivision to read: 
 63.22     Subd. 6a.  [AUDIT REPORT.] The charter school must submit 
 63.23  an audit report to the commissioner by December 31 each year.  
 63.24  The charter school, with the assistance of the auditor 
 63.25  conducting the audit, must include with the report a copy of all 
 63.26  charter school agreements for corporate management services.  If 
 63.27  the entity that provides the professional services to the 
 63.28  charter school is exempt from taxation under section 501 of the 
 63.29  Internal Revenue Code of 1986, that entity must file with the 
 63.30  commissioner by February 15 a copy of the annual return required 
 63.31  under section 6033 of the Internal Revenue Code of 1986.  If the 
 63.32  commissioner receives as part of the audit report a management 
 63.33  letter indicating that a material weakness exists in the 
 63.34  financial reporting systems of a charter school, the charter 
 63.35  school must submit a written report to the commissioner 
 63.36  explaining how the material weakness will be resolved.  Upon the 
 64.1   request of an individual, the charter school must make available 
 64.2   in a timely fashion the minutes of meetings of members, the 
 64.3   board of directors, and committees having any of the authority 
 64.4   of the board of directors, and statements showing the financial 
 64.5   result of all operations and transactions affecting income and 
 64.6   surplus during the school's last annual accounting period and a 
 64.7   balance sheet containing a summary of its assets and liabilities 
 64.8   as of the closing date of the accounting period.  
 64.9      <b>[EFFECTIVE DATE.]</b> This section is effective for the 
 64.10  2001-2002 school year and later. 
 64.11     Sec. 23.  Minnesota Statutes 2000, section 124D.10, 
 64.12  subdivision 8, is amended to read: 
 64.13     Subd. 8.  [STATE AND LOCAL REQUIREMENTS.] (a) A charter 
 64.14  school shall meet all applicable state and local health and 
 64.15  safety requirements. 
 64.16     (b) A school sponsored by a school board may be located in 
 64.17  any district, unless the school board of the district of the 
 64.18  proposed location disapproves by written resolution.  If such a 
 64.19  board denies a request to locate within its boundaries a charter 
 64.20  school sponsored by another school board, the sponsoring school 
 64.21  board may appeal to the commissioner.  If the commissioner 
 64.22  authorizes the school, the commissioner must sponsor the school. 
 64.23     (c) A charter school must be nonsectarian in its programs, 
 64.24  admission policies, employment practices, and all other 
 64.25  operations.  A sponsor may not authorize a charter school or 
 64.26  program that is affiliated with a nonpublic sectarian school or 
 64.27  a religious institution. 
 64.28     (d) Charter schools must not be used as a method of 
 64.29  providing education or generating revenue for students who are 
 64.30  being home-schooled. 
 64.31     (e) The primary focus of a charter school must be to 
 64.32  provide a comprehensive program of instruction for at least one 
 64.33  grade or age group from five through 18 years of age.  
 64.34  Instruction may be provided to people younger than five years 
 64.35  and older than 18 years of age. 
 64.36     (f) A charter school may not charge tuition. 
 65.1      (g) A charter school is subject to and must comply with 
 65.2   chapter 363 and section 121A.04. 
 65.3      (h) A charter school is subject to and must comply with the 
 65.4   Pupil Fair Dismissal Act, sections 121A.40 to 121A.56, and the 
 65.5   Minnesota Public School Fee Law, sections 123B.34 to 123B.39. 
 65.6      (i) A charter school is subject to the same financial 
 65.7   audits, audit procedures, and audit requirements as a district.  
 65.8   Audits must be conducted in compliance with generally accepted 
 65.9   governmental auditing standards, the Federal Single Audit Act, 
 65.10  if applicable, and section 6.65.  A charter school is subject to 
 65.11  and must comply with sections 15.054; 118A.01; 118A.02; 118A.03; 
 65.12  118A.04; 118A.05; 118A.06; 123B.52, subdivision 5; 471.38; 
 65.13  471.391; 471.392; 471.425; 471.87; 471.88, subdivisions 1, 2, 3, 
 65.14  4, 5, 6, 12, 13, and 15; 471.881; and 471.89.  The audit must 
 65.15  comply with the requirements of sections 123B.75 to 123B.83, 
 65.16  except to the extent deviations are necessary because of the 
 65.17  program at the school.  Deviations must be approved by the 
 65.18  commissioner.  The department of children, families, and 
 65.19  learning, state auditor, or legislative auditor may conduct 
 65.20  financial, program, or compliance audits.  A charter school 
 65.21  determined to be in statutory operating debt under sections 
 65.22  123B.81 to 123B.83 must submit a plan under section 123B.81, 
 65.23  subdivision 4. 
 65.24     (j) A charter school is a district for the purposes of tort 
 65.25  liability under chapter 466. 
 65.26     Sec. 24.  Minnesota Statutes 2000, section 124D.10, 
 65.27  subdivision 15, is amended to read: 
 65.28     Subd. 15.  [REVIEW AND COMMENT.] The department must review 
 65.29  and comment on the evaluation, by the sponsor, of the 
 65.30  performance of a charter school before the charter school's 
 65.31  contract is renewed.  A sponsor shall monitor and evaluate the 
 65.32  fiscal and student performance of the school, and may for this 
 65.33  purpose annually assess the school a charter school:  (1) in its 
 65.34  first, second, or third year of operation up to $10 $30 per 
 65.35  student up to a maximum of $3,500 $10,000; and (2) in its fourth 
 65.36  or a subsequent year of operation up to $10 per student up to a 
 66.1   maximum of $3,500.  The information for the review and comment 
 66.2   shall be reported by the sponsor to the commissioner of 
 66.3   children, families, and learning in a timely manner.  
 66.4   Periodically, the commissioner shall report trends or 
 66.5   suggestions based on the evaluation of charter school contracts 
 66.6   to the education committees of the state legislature.  
 66.7      Sec. 25.  Minnesota Statutes 2000, section 124D.10, is 
 66.8   amended by adding a subdivision to read: 
 66.9      Subd. 23a.  [RELATED PARTY LEASE COSTS.] (a) A charter 
 66.10  school is prohibited from entering a lease of real property with 
 66.11  a related party as defined in this subdivision, unless the 
 66.12  lessor is a nonprofit corporation under chapter 317A or a 
 66.13  cooperative under chapter 308A, and the lease cost is reasonable 
 66.14  under section 124D.11, subdivision 4, clause (1). 
 66.15     (b) For purposes of this subdivision: 
 66.16     (1) A "related party" is an affiliate or close relative of 
 66.17  the other party in question, an affiliate of a close relative, 
 66.18  or a close relative of an affiliate.  
 66.19     (2) "Affiliate" means a person that directly, or indirectly 
 66.20  through one or more intermediaries, controls, or is controlled 
 66.21  by, or is under common control with, another person. 
 66.22     (3) "Close relative" means an individual whose relationship 
 66.23  by blood, marriage, or adoption to another individual is no more 
 66.24  remote than first cousin. 
 66.25     (4) "Person" means an individual or entity of any kind. 
 66.26     (5) "Control" includes the terms "controlling," "controlled 
 66.27  by," and "under common control with" and means the possession, 
 66.28  direct or indirect, of the power to direct or cause the 
 66.29  direction of the management, operations, or policies of a 
 66.30  person, whether through the ownership of voting securities, by 
 66.31  contract, or otherwise. 
 66.32     (c) A lease of real property to be used for a charter 
 66.33  school, not excluded in paragraph (b), must contain the 
 66.34  following statement:  "This lease is subject to Minnesota 
 66.35  Statutes, section 124D.10, subdivision 23a." 
 66.36     (d) If a charter school enters into as lessee a lease with 
 67.1   a related party and the charter school subsequently closes, the 
 67.2   commissioner has the right to recover from the lessor any lease 
 67.3   payments in excess of those that are reasonable under section 
 67.4   124.11, subdivision 4, clause (1). 
 67.5      <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 67.6   following final enactment and applies to any charter school 
 67.7   lease entered into on or after that date. 
 67.8      Sec. 26.  Minnesota Statutes 2000, section 124D.10, is 
 67.9   amended by adding a subdivision to read: 
 67.10     Subd. 26.  [CHARTER SCHOOL ADVISORY COUNCIL.] A charter 
 67.11  school advisory council is established under section 15.059.  
 67.12  The advisory council is composed of seven members from 
 67.13  throughout the state who have demonstrated experience with or 
 67.14  interest in charter schools.  The advisory council shall bring 
 67.15  to the attention of the commissioner any matters related to 
 67.16  charter schools that the council deems necessary and shall: 
 67.17     (1) encourage school boards to make full use of charter 
 67.18  school opportunities; 
 67.19     (2) encourage the creation of innovative schools; 
 67.20     (3) provide leadership and support for charter school 
 67.21  sponsors to increase the innovation in and the effectiveness, 
 67.22  accountability, and fiscal soundness of charter schools; 
 67.23     (4) serve an ombudsman function in facilitating the 
 67.24  operations of new and existing charter schools; 
 67.25     (5) promote timely financial management training for newly 
 67.26  elected members of a charter school board of directors and 
 67.27  ongoing training for other members of a charter school board of 
 67.28  directors; 
 67.29     (6) review charter school applications and recommend 
 67.30  approving or disapproving the applications; and 
 67.31     (7) facilitate compliance with auditing and other reporting 
 67.32  requirements.  The advisory council shall refer all its 
 67.33  proposals to the commissioner who shall provide time for reports 
 67.34  from the council. 
 67.35     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 67.36  following final enactment. 
 68.1      Sec. 27.  Minnesota Statutes 2000, section 124D.11, 
 68.2   subdivision 4, is amended to read: 
 68.3      Subd. 4.  [BUILDING LEASE AID.] When a charter school finds 
 68.4   it economically advantageous to rent or lease a building or land 
 68.5   for any instructional purposes and it determines that the total 
 68.6   operating capital revenue under section 126C.10, subdivision 13, 
 68.7   is insufficient for this purpose, it may apply to the 
 68.8   commissioner for building lease aid for this purpose.  Criteria 
 68.9   for aid approval and revenue uses shall be as defined for the 
 68.10  building lease levy in section 126C.40, subdivision 1, 
 68.11  paragraphs (a) and (b).  The commissioner must review and either 
 68.12  approve or deny a lease aid application using the following 
 68.13  criteria: 
 68.14     (1) the reasonableness of the price based on current market 
 68.15  values; 
 68.16     (2) the extent to which the lease conforms to applicable 
 68.17  state laws and rules; and 
 68.18     (3) the appropriateness of the proposed lease in the 
 68.19  context of the space needs and financial circumstances of the 
 68.20  charter school. 
 68.21  A charter school must not use the building lease aid it receives 
 68.22  for custodial, maintenance service, utility, or other operating 
 68.23  costs.  The amount of building lease aid per pupil unit served 
 68.24  for a charter school for any year shall not exceed the lesser of 
 68.25  (a) 90 percent of the approved cost or (b) the product of the 
 68.26  pupil units served for the current school year times $1,500. 
 68.27     Sec. 28.  Minnesota Statutes 2000, section 124D.11, 
 68.28  subdivision 9, is amended to read: 
 68.29     Subd. 9.  [PAYMENT OF AIDS TO CHARTER SCHOOLS.] (a) 
 68.30  Notwithstanding section 127A.45, subdivision 3, aid payments for 
 68.31  the current fiscal year to a charter school not in its first 
 68.32  year of operation shall be of an equal amount on each of the 23 
 68.33  payment dates.  A charter school in its first year of operation 
 68.34  shall receive, on its first payment date, ten percent of its 
 68.35  cumulative amount guaranteed for the year and 22 payments of an 
 68.36  equal amount thereafter the sum of which shall be 90 percent of 
 69.1   the cumulative amount guaranteed. 
 69.2      (b) Notwithstanding paragraph (a), for a charter school 
 69.3   ceasing operation prior to the end of a school year, 90 percent 
 69.4   of the amount due for the school year may be paid to the school 
 69.5   after audit of prior fiscal year and current fiscal year pupil 
 69.6   counts. 
 69.7      (c) Notwithstanding section 127A.45, subdivision 3, and 
 69.8   paragraph (a), 90 percent of the start-up cost aid under 
 69.9   subdivision 8 shall be paid within 45 days after the first day 
 69.10  of student attendance for that school year. 
 69.11     (d) In order to receive state aid payments under this 
 69.12  subdivision, a charter school in its first three years of 
 69.13  operation must submit a quarterly report to the department of 
 69.14  children, families, and learning.  The report must list each 
 69.15  student by grade, show the student's start and end dates, if 
 69.16  any, with the charter school, and for any student participating 
 69.17  in a learning year program, the report must list the hours and 
 69.18  times of learning year activities.  The report must be submitted 
 69.19  not more than two weeks after the end of the calendar quarter to 
 69.20  the department.  The department must develop a Web-based 
 69.21  reporting form for charter schools to use when submitting 
 69.22  enrollment reports.  A charter school in its fourth and 
 69.23  subsequent year of operation must submit enrollment information 
 69.24  to the department in the form and manner requested by the 
 69.25  department. 
 69.26     Sec. 29.  Minnesota Statutes 2000, section 124D.128, 
 69.27  subdivision 1, is amended to read: 
 69.28     Subdivision 1.  [PROGRAM ESTABLISHED.] A learning year 
 69.29  program provides instruction throughout the year.  A pupil may 
 69.30  participate in the program and accelerate attainment of grade 
 69.31  level requirements or graduation requirements.  A learning year 
 69.32  program may begin after the close of the regular school year in 
 69.33  June.  The program may be for students in one or more grade 
 69.34  levels from kindergarten through grade 12.  
 69.35     Students may participate in the program if they reside in:  
 69.36     (1) a district that has been designated a learning year 
 70.1   site under subdivision 2; 
 70.2      (2) a district that is a member of the same education 
 70.3   district as a site; or 
 70.4      (3) a district that participates in the same area learning 
 70.5   center program as a site.  
 70.6      Sec. 30.  Minnesota Statutes 2000, section 124D.128, 
 70.7   subdivision 2, is amended to read: 
 70.8      Subd. 2.  [COMMISSIONER DESIGNATION.] (a) An area learning 
 70.9   center designated by the state must be a site.  To be 
 70.10  designated, a district or center must demonstrate to the 
 70.11  commissioner that it will: 
 70.12     (1) provide a program of instruction that permits pupils to 
 70.13  receive instruction throughout the entire year; and 
 70.14     (2) maintain a record system that, for purposes of section 
 70.15  126C.05, permits identification of membership attributable to 
 70.16  pupils participating in the program.  The record system and 
 70.17  identification must ensure that the program will not have the 
 70.18  effect of increasing the total number of pupil units 
 70.19  attributable to an individual pupil as a result of a learning 
 70.20  year program.  The record system must include the date the pupil 
 70.21  originally enrolled in a learning year program, the pupil's 
 70.22  grade level, the date of each grade promotion, the average daily 
 70.23  membership generated in each grade level, the number of credits 
 70.24  or standards earned, and the number needed to graduate. 
 70.25     (b) A student who has not completed a school district's 
 70.26  graduation requirements may continue to enroll in courses the 
 70.27  student must complete in order to graduate until the student 
 70.28  satisfies the district's graduation requirements or the student 
 70.29  is 21 years old, whichever comes first. 
 70.30     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 70.31  following final enactment. 
 70.32     Sec. 31.  Minnesota Statutes 2000, section 124D.128, 
 70.33  subdivision 3, is amended to read: 
 70.34     Subd. 3.  [STUDENT PLANNING.] A district must inform all 
 70.35  pupils and their parents about the learning year program and 
 70.36  that participation in the program is optional.  A continual 
 71.1   learning plan must be developed at least annually for each pupil 
 71.2   with the participation of the pupil, parent or guardian, 
 71.3   teachers, and other staff; each participant must sign and date 
 71.4   the plan.  The plan must specify the learning experiences that 
 71.5   must occur each during the entire fiscal year and, for secondary 
 71.6   students, for graduation.  The plan must include:  
 71.7      (1) the pupil's learning objectives and experiences, 
 71.8   including courses or credits the pupil plans to complete each 
 71.9   year and, for a secondary pupil, the graduation requirements the 
 71.10  student must complete; 
 71.11     (2) the assessment measurements used to evaluate a pupil's 
 71.12  objectives; 
 71.13     (3) requirements for grade level or other appropriate 
 71.14  progression; and 
 71.15     (4) for pupils generating more than one average daily 
 71.16  membership in a given grade, an indication of which objectives 
 71.17  were unmet. 
 71.18  The plan may be modified to conform to district schedule 
 71.19  changes.  The district may not modify the plan if the 
 71.20  modification would result in delaying the student's time of 
 71.21  graduation.  
 71.22     Sec. 32.  Minnesota Statutes 2000, section 124D.128, 
 71.23  subdivision 6, is amended to read: 
 71.24     Subd. 6.  [REVENUE COMPUTATION AND REPORTING.] Aid and levy 
 71.25  revenue computations must be based on the total number of hours 
 71.26  of education programs for pupils in average daily membership for 
 71.27  each fiscal year.  For purposes of section 126C.05, Average 
 71.28  daily membership shall be computed by dividing the total number 
 71.29  of hours of participation for the fiscal year by the minimum 
 71.30  number of hours for a year determined for the appropriate grade 
 71.31  level under section 126C.05, subdivision 15.  Hours of 
 71.32  participation that occur after the close of the regular 
 71.33  instructional year and before July 1 must be attributed to the 
 71.34  following fiscal year.  Thirty hours may be used for teacher 
 71.35  workshops, staff development, or parent-teacher conferences.  As 
 71.36  part of each pilot program, the department and each district 
 72.1   must report and evaluate the changes needed to adjust the dates 
 72.2   of the fiscal year for aid and levy computation and fiscal year 
 72.3   reporting.  For revenue computation purposes, the learning year 
 72.4   program shall generate revenue based on the formulas for the 
 72.5   fiscal year in which the services are provided.  The dates a 
 72.6   participating pupil is promoted must be reported in a timely 
 72.7   manner to the department. 
 72.8      State aid and levy revenue computation for the learning 
 72.9   year programs begins July 1, 1988, for fiscal year 1989.  
 72.10     Sec. 33.  Minnesota Statutes 2000, section 124D.128, is 
 72.11  amended by adding a subdivision to read: 
 72.12     Subd. 6a.  [PROCESS TO ADDRESS AUDIT FINDINGS.] (a) If, 
 72.13  during an audit of a district's learning year program, the 
 72.14  commissioner finds that the district is not meeting program 
 72.15  requirements, the commissioner must notify the board of that 
 72.16  district in writing.  The notice must specify the findings in 
 72.17  detail, describe the correction required, set a reasonable time 
 72.18  during which the findings should be corrected, and advise that 
 72.19  general education revenue to the district may be reduced.  The 
 72.20  commissioner may extend the time allowed for the correction. 
 72.21     (b) A board that receives a notice under paragraph (a) may 
 72.22  decide by majority vote of the entire board to dispute that: 
 72.23     (1) the specified finding exists; 
 72.24     (2) the time allowed is reasonable; or 
 72.25     (3) the commissioner should reduce district general 
 72.26  education revenue. 
 72.27     The board must give the commissioner written notice of the 
 72.28  board's decision within 30 days of receipt of the audit report.  
 72.29  After making any further investigations the commissioner deems 
 72.30  necessary, the commissioner must decide whether or not to adhere 
 72.31  to the commissioner's original notice and must notify the board 
 72.32  of the commissioner's decision. 
 72.33     (c) The commissioner may reduce or withhold state general 
 72.34  education revenues as the result of an audit.  The commissioner 
 72.35  may decide not to reduce or withhold state general education 
 72.36  revenues if the district corrects the specified finding, or 
 73.1   after receiving the district's notice disputing the finding, the 
 73.2   commissioner decides the finding does not exist. 
 73.3      Sec. 34.  Minnesota Statutes 2000, section 124D.74, 
 73.4   subdivision 1, is amended to read: 
 73.5      Subdivision 1.  [PROGRAM DESCRIBED.] American Indian 
 73.6   language and culture education programs are programs in public 
 73.7   elementary and secondary schools, nonsectarian nonpublic, 
 73.8   community, tribal, or alternative schools enrolling American 
 73.9   Indian children designed to: 
 73.10     (1) to support post-secondary preparation for pupils; 
 73.11     (2) support the academic achievement of American Indian 
 73.12  students with identified focus to improve reading and mathematic 
 73.13  skills; 
 73.14     (3) make the curriculum more relevant to the needs, 
 73.15  interests, and cultural heritage of American Indian pupils; 
 73.16     (2) to (4) provide positive reinforcement of the self-image 
 73.17  of American Indian pupils; and 
 73.18     (3) to (5) develop intercultural awareness among pupils, 
 73.19  parents, and staff; and 
 73.20     (6) supplement, not supplant, state and federal educational 
 73.21  and cocurricular programs.  
 73.22  Program components may include:  instruction in American Indian 
 73.23  language, literature, history, and culture development of 
 73.24  support components for students in the areas of academic 
 73.25  achievement, retention, and attendance; development of support 
 73.26  components for staff, including in-service training and 
 73.27  technical assistance in methods of teaching American Indian 
 73.28  pupils; research projects, including experimentation with and 
 73.29  evaluation of methods of relating to American Indian pupils; 
 73.30  provision of personal and vocational counseling to American 
 73.31  Indian pupils; modification of curriculum, instructional 
 73.32  methods, and administrative procedures to meet the needs of 
 73.33  American Indian pupils; and establishment of cooperative 
 73.34  liaisons with nonsectarian nonpublic, community, tribal or 
 73.35  alternative schools offering curricula which reflect American 
 73.36  Indian culture supplemental instruction in American Indian 
 74.1   language, literature, history, and culture.  Districts offering 
 74.2   programs may make contracts for the provision of program 
 74.3   components by nonsectarian nonpublic, community, tribal or 
 74.4   alternative schools establishing cooperative liaisons with 
 74.5   tribal programs and American Indian social service agencies.  
 74.6   These programs may also be provided as components of early 
 74.7   childhood and family education programs. 
 74.8      Sec. 35.  Minnesota Statutes 2000, section 124D.74, 
 74.9   subdivision 2, is amended to read: 
 74.10     Subd. 2.  [VOLUNTARY ENROLLMENT.] Enrollment in American 
 74.11  Indian language and culture education programs must be 
 74.12  voluntary.  School districts and participating schools must make 
 74.13  affirmative efforts to encourage participation.  They shall 
 74.14  encourage parents to visit classes or come to school for a 
 74.15  conference explaining the nature of the program and provide 
 74.16  visits by school staff to parents' homes to explain the nature 
 74.17  of the program. 
 74.18     Sec. 36.  Minnesota Statutes 2000, section 124D.74, 
 74.19  subdivision 3, is amended to read: 
 74.20     Subd. 3.  [ENROLLMENT OF OTHER CHILDREN; SHARED TIME 
 74.21  ENROLLMENT.] To the extent it is economically feasible, a 
 74.22  district or participating school may make provision for the 
 74.23  voluntary enrollment of non-American Indian children in the 
 74.24  instructional components of an American Indian language and 
 74.25  culture education program in order that they may acquire an 
 74.26  understanding of the cultural heritage of the American Indian 
 74.27  children for whom that particular program is designed.  However, 
 74.28  in determining eligibility to participate in a program, priority 
 74.29  must be given to American Indian children.  American Indian 
 74.30  children and other children enrolled in an existing nonpublic 
 74.31  school system may be enrolled on a shared time basis in American 
 74.32  Indian language and culture education programs. 
 74.33     Sec. 37.  Minnesota Statutes 2000, section 124D.74, 
 74.34  subdivision 4, is amended to read: 
 74.35     Subd. 4.  [LOCATION OF PROGRAMS.] American Indian language 
 74.36  and culture education programs must be located in facilities in 
 75.1   which regular classes in a variety of subjects are offered on a 
 75.2   daily basis.  Programs may operate on an extended day or 
 75.3   extended year basis. 
 75.4      Sec. 38.  Minnesota Statutes 2000, section 124D.74, 
 75.5   subdivision 6, is amended to read: 
 75.6      Subd. 6.  [NONVERBAL COURSES AND EXTRACURRICULAR 
 75.7   ACTIVITIES.] In predominantly nonverbal subjects, such as art, 
 75.8   music, and physical education, American Indian children shall 
 75.9   participate fully and on an equal basis with their 
 75.10  contemporaries in school classes provided for these subjects.  
 75.11  Every school district or participating school shall ensure to 
 75.12  children enrolled in American Indian language and culture 
 75.13  education programs an equal and meaningful opportunity to 
 75.14  participate fully with other children in all extracurricular 
 75.15  activities.  This subdivision shall not be construed to prohibit 
 75.16  instruction in nonverbal subjects or extracurricular activities 
 75.17  which relate to the cultural heritage of the American Indian 
 75.18  children, or which are otherwise necessary to accomplish the 
 75.19  objectives described in sections 124D.71 to 124D.82. 
 75.20     Sec. 39.  Minnesota Statutes 2000, section 124D.75, 
 75.21  subdivision 6, is amended to read: 
 75.22     Subd. 6.  [PERSONS ELIGIBLE FOR EMPLOYMENT; EXEMPTIONS.] 
 75.23  Any person licensed under this section shall be eligible for 
 75.24  employment by a school board or a participating school as a 
 75.25  teacher in an American Indian language and culture education 
 75.26  program in which the American Indian language or culture in 
 75.27  which the person is licensed is taught.  A school district or 
 75.28  participating school may prescribe only those additional 
 75.29  qualifications for teachers licensed under this section as are 
 75.30  approved by the board of teaching.  Any school board or 
 75.31  participating school upon request may be exempted from the 
 75.32  licensure requirements of this section in the hiring of one or 
 75.33  more American Indian language and culture education teachers for 
 75.34  any school year in which compliance would, in the opinion of the 
 75.35  commissioner, create a hardship in the securing of the teachers. 
 75.36     Sec. 40.  Minnesota Statutes 2000, section 124D.76, is 
 76.1   amended to read: 
 76.2      124D.76 [TEACHERS AIDES; COMMUNITY COORDINATORS.] 
 76.3      In addition to employing American Indian language and 
 76.4   culture education teachers, each district or participating 
 76.5   school providing programs pursuant to sections 124D.71 to 
 76.6   124D.82 may employ teachers' aides.  Teachers' aides must not be 
 76.7   employed for the purpose of supplanting American Indian language 
 76.8   and culture education teachers. 
 76.9      Any district or participating school which conducts 
 76.10  American Indian language and culture education programs pursuant 
 76.11  to sections 124D.71 to 124D.82 must employ one or more full-time 
 76.12  or part-time community coordinators if there are 100 or more 
 76.13  students enrolled in the program.  Community coordinators shall 
 76.14  promote communication understanding, and cooperation between the 
 76.15  schools and the community and shall visit the homes of children 
 76.16  who are to be enrolled in an American Indian language and 
 76.17  culture education program in order to convey information about 
 76.18  the program. 
 76.19     Sec. 41.  Minnesota Statutes 2000, section 124D.78, 
 76.20  subdivision 1, is amended to read: 
 76.21     Subdivision 1.  [PARENT COMMITTEE.] School boards and 
 76.22  American Indian schools must provide for the maximum involvement 
 76.23  of parents of children enrolled in education programs, including 
 76.24  language and culture education programs, programs for elementary 
 76.25  and secondary grades, special education programs, and support 
 76.26  services.  Accordingly, the board of a school district in which 
 76.27  there are ten or more American Indian children enrolled and each 
 76.28  American Indian school must establish a parent committee.  If a 
 76.29  committee whose membership consists of a majority of parents of 
 76.30  American Indian children has been or is established according to 
 76.31  federal, tribal, or other state law, that committee may serve as 
 76.32  the committee required by this section and is subject to, at 
 76.33  least, the requirements of this subdivision and subdivision 2.  
 76.34     The parent committee must develop its recommendations in 
 76.35  consultation with the curriculum advisory committee required by 
 76.36  section 120B.11, subdivision 3.  This committee must afford 
 77.1   parents the necessary information and the opportunity 
 77.2   effectively to express their views concerning all aspects of 
 77.3   American Indian education and the educational needs of the 
 77.4   American Indian children enrolled in the school or program.  The 
 77.5   committee must also address the need for adult education 
 77.6   programs for American Indian people in the community.  The board 
 77.7   or American Indian school must ensure that programs are planned, 
 77.8   operated, and evaluated with the involvement of and in 
 77.9   consultation with parents of children served by the programs.  
 77.10     Sec. 42.  Minnesota Statutes 2000, section 124D.81, 
 77.11  subdivision 1, is amended to read: 
 77.12     Subdivision 1.  [GRANTS; PROCEDURES.] Each fiscal year the 
 77.13  commissioner of children, families, and learning must make 
 77.14  grants to no fewer than six American Indian language and culture 
 77.15  education programs.  At least three programs must be in urban 
 77.16  areas and at least three must be on or near reservations.  The 
 77.17  board of a local district, a participating school or a group of 
 77.18  boards may develop a proposal for grants in support of American 
 77.19  Indian language and culture education programs.  Proposals may 
 77.20  provide for contracts for the provision of program components by 
 77.21  nonsectarian nonpublic, community, tribal, or alternative 
 77.22  schools.  The commissioner shall prescribe the form and manner 
 77.23  of application for grants, and no grant shall be made for a 
 77.24  proposal not complying with the requirements of sections 124D.71 
 77.25  to 124D.82.  The commissioner must submit all proposals to the 
 77.26  state advisory task force committee on American Indian language 
 77.27  and culture education programs for its recommendations 
 77.28  concerning approval, modification, or disapproval and the 
 77.29  amounts of grants to approved programs. 
 77.30     Sec. 43.  Minnesota Statutes 2000, section 124D.81, 
 77.31  subdivision 3, is amended to read: 
 77.32     Subd. 3.  [ADDITIONAL REQUIREMENTS.] Each district 
 77.33  receiving a grant under this section must each year conduct a 
 77.34  count of American Indian children in the schools of the 
 77.35  district; test for achievement; identify the extent of other 
 77.36  educational needs of the children to be enrolled in the American 
 78.1   Indian language and culture education program; and classify the 
 78.2   American Indian children by grade, level of educational 
 78.3   attainment, age and achievement.  Participating schools must 
 78.4   maintain records concerning the needs and achievements of 
 78.5   American Indian children served. 
 78.6      Sec. 44.  Minnesota Statutes 2000, section 124D.81, 
 78.7   subdivision 5, is amended to read: 
 78.8      Subd. 5.  [RECORDS.] Participating schools and districts 
 78.9   must keep records and afford access to them as the commissioner 
 78.10  finds necessary to ensure that American Indian language and 
 78.11  culture education programs are implemented in conformity with 
 78.12  sections 124D.71 to 124D.82.  Each school district or 
 78.13  participating school must keep accurate, detailed, and separate 
 78.14  revenue and expenditure accounts for pilot American Indian 
 78.15  language and culture education programs funded under this 
 78.16  section. 
 78.17     Sec. 45.  Minnesota Statutes 2000, section 124D.81, 
 78.18  subdivision 6, is amended to read: 
 78.19     Subd. 6.  [MONEY FROM OTHER SOURCES.] A district or 
 78.20  participating school providing American Indian language and 
 78.21  culture education programs shall be eligible to receive moneys 
 78.22  for these programs from other government agencies and from 
 78.23  private sources when the moneys are available. 
 78.24     Sec. 46.  Minnesota Statutes 2000, section 124D.81, 
 78.25  subdivision 7, is amended to read: 
 78.26     Subd. 7.  [EXCEPTIONS.] Nothing in sections 124D.71 to 
 78.27  124D.82 shall be construed as prohibiting a district or school 
 78.28  from implementing an American Indian language and culture 
 78.29  education program which is not in compliance with sections 
 78.30  124D.71 to 124D.82 if the proposal and plan for that program is 
 78.31  not funded pursuant to this section. 
 78.32     Sec. 47.  Minnesota Statutes 2000, section 124D.86, 
 78.33  subdivision 3, is amended to read: 
 78.34     Subd. 3.  [INTEGRATION REVENUE.] For fiscal year 2000 and 
 78.35  later fiscal years, Integration revenue equals the following 
 78.36  amounts: 
 79.1      (1) for independent school district No. 709, Duluth, $207 
 79.2   times the adjusted pupil units for the school year; 
 79.3      (2) for independent school district No. 625, St. Paul, $446 
 79.4   times the adjusted pupil units for the school year; 
 79.5      (3) and for special school district No. 1, Minneapolis, 
 79.6   $536 $446 times the adjusted pupil units for the school year; 
 79.7   and 
 79.8      (3) for a district not listed in clause (1) or (2) that 
 79.9   must implement a plan under Minnesota Rules, parts 3535.0100 to 
 79.10  3535.0180, where the district's enrollment of protected 
 79.11  students, as defined under Minnesota Rules, part 3535.0110, 
 79.12  exceeds 15 percent, the lesser of (i) the actual cost of 
 79.13  implementing the plan during the fiscal year minus the aid 
 79.14  received under subdivision 6, or (ii) $130 times the adjusted 
 79.15  pupil units for the school year; 
 79.16     (4) for a district not listed in clause (1), (2), or (3) 
 79.17  that is required to implement a plan according to the 
 79.18  requirements of Minnesota Rules, parts 3535.0100 to 3535.0180, 
 79.19  the lesser of 
 79.20     (i) the actual cost of implementing the plan during the 
 79.21  fiscal year minus the aid received under subdivision 6, or 
 79.22     (ii) $93 times the adjusted pupil units for the school year.
 79.23     Any money received by districts in clauses (1) to (3) which 
 79.24  exceeds the amount received in fiscal year 2000 shall be subject 
 79.25  to the budget requirements in subdivision 1a.; and 
 79.26     (5) for a member district of a multidistrict integration 
 79.27  collaborative that files a plan with the commissioner, but is 
 79.28  not contiguous to a racially isolated district, integration 
 79.29  revenue equals the amount defined in clause (4). 
 79.30     <b>[EFFECTIVE DATE.]</b> The changes in clause (2) of this section 
 79.31  are effective for aid for fiscal year 2003 and for levy for 
 79.32  taxes payable in 2002 and later.  The changes in clauses (3) and 
 79.33  (5) are effective for revenue for fiscal year 2002 and later. 
 79.34     Sec. 48.  Minnesota Statutes 2000, section 124D.59, 
 79.35  subdivision 2, is amended to read: 
 79.36     Subd. 2.  [PUPIL OF LIMITED ENGLISH PROFICIENCY.] "Pupil of 
 80.1   limited English proficiency" means a pupil in any of the grades 
 80.2   of kindergarten through 12 who meets the following requirements: 
 80.3      (1) the pupil in kindergarten through grade 12, as declared 
 80.4   by a parent or guardian first learned a language other than 
 80.5   English, comes from a home where the language usually spoken is 
 80.6   other than English, or usually speaks a language other than 
 80.7   English; and 
 80.8      (2) the pupil's score is significantly below the average 
 80.9   district score for pupils of the same age on a nationally normed 
 80.10  English reading or English language arts achievement test.  A 
 80.11  pupil's score shall be considered significantly below the 
 80.12  average district score for pupils of the same age if it is 
 80.13  one-third of a standard deviation below that average score for a 
 80.14  pupil in kindergarten through grade 2, the pupil is determined 
 80.15  by developmentally appropriate measures, which might include 
 80.16  observations, teacher judgment, parent recommendations, or 
 80.17  developmentally appropriate assessment instruments, to lack the 
 80.18  necessary English skills to participate fully in classes taught 
 80.19  in English; or 
 80.20     (3) the pupil in grades 3 through 12 scores below the state 
 80.21  cutoff score on an assessment measuring emerging academic 
 80.22  English provided by the commissioner. 
 80.23     <b>[EFFECTIVE DATE.]</b> This section is effective for the 
 80.24  2002-2003 school year and later. 
 80.25     Sec. 49.  Minnesota Statutes 2000, section 124D.84, 
 80.26  subdivision 1, is amended to read: 
 80.27     Subdivision 1.  [AWARDS.] The commissioner, with the advice 
 80.28  and counsel of the Minnesota Indian scholarship education 
 80.29  committee, may award scholarships to any Minnesota resident 
 80.30  student who is of one-fourth or more Indian ancestry, who has 
 80.31  applied for other existing state and federal scholarship and 
 80.32  grant programs, and who, in the opinion of the commissioner, has 
 80.33  the capabilities to benefit from further education.  
 80.34  Scholarships must be for accredited degree programs in 
 80.35  accredited Minnesota colleges or universities or for courses in 
 80.36  accredited Minnesota business, technical, or vocational 
 81.1   schools.  Scholarships may also be given to students attending 
 81.2   Minnesota colleges that are in candidacy status for obtaining 
 81.3   full accreditation, and are eligible for and receiving federal 
 81.4   financial aid programs.  Students are also eligible for 
 81.5   scholarships when enrolled as students in Minnesota higher 
 81.6   education institutions that have joint programs with other 
 81.7   accredited higher education institutions.  Scholarships shall be 
 81.8   used to defray the total cost of education including tuition, 
 81.9   incidental fees, books, supplies, transportation, other related 
 81.10  school costs and the cost of board and room and shall be paid 
 81.11  directly to the college or school concerned where the student 
 81.12  receives federal financial aid.  The total cost of education 
 81.13  includes all tuition and fees for each student enrolling in a 
 81.14  public institution and the portion of tuition and fees for each 
 81.15  student enrolling in a private institution that does not exceed 
 81.16  the tuition and fees at a comparable public institution.  Each 
 81.17  student shall be awarded a scholarship based on the total cost 
 81.18  of the student's education and a federal standardized need 
 81.19  analysis.  Applicants are encouraged to apply for all other 
 81.20  sources of financial aid.  The amount and type of each 
 81.21  scholarship shall be determined through the advice and counsel 
 81.22  of the Minnesota Indian scholarship education committee. 
 81.23     When an Indian student satisfactorily completes the work 
 81.24  required by a certain college or school in a school year the 
 81.25  student is eligible for additional scholarships, if additional 
 81.26  training is necessary to reach the student's educational and 
 81.27  vocational objective.  Scholarships may not be given to any 
 81.28  Indian student for more than five years of study without special 
 81.29  approval recommendation of the Minnesota Indian scholarship 
 81.30  education committee.  
 81.31     Sec. 50.  Minnesota Statutes 2000, section 124D.892, 
 81.32  subdivision 1, is amended to read: 
 81.33     Subdivision 1.  [ESTABLISHMENT.] (a) An office of 
 81.34  desegregation/integration is established in the department of 
 81.35  children, families, and learning to coordinate and support 
 81.36  activities related to student enrollment, student and staff 
 82.1   recruitment and retention, transportation, and interdistrict 
 82.2   cooperation among metropolitan school districts.  
 82.3      (b) At the request of a metropolitan school district 
 82.4   involved in cooperative desegregation/integration efforts, the 
 82.5   office shall perform any of the following activities: 
 82.6      (1) assist districts with interdistrict student transfers, 
 82.7   including student recruitment, counseling, placement, and 
 82.8   transportation; 
 82.9      (2) coordinate and disseminate information about schools 
 82.10  and programs; 
 82.11     (3) assist districts with new magnet schools and programs; 
 82.12     (4) assist districts in providing staff development and 
 82.13  in-service training; and 
 82.14     (5) coordinate and administer staff exchanges. 
 82.15     (c) The office shall collect data on the efficacy of 
 82.16  districts' desegregation/integration efforts and make 
 82.17  recommendations based on the data.  The office shall 
 82.18  periodically consult with the metropolitan council to coordinate 
 82.19  metropolitan school desegregation/integration efforts with the 
 82.20  housing, social, economic, and infrastructure needs of the 
 82.21  metropolitan area.  The office shall develop a process for 
 82.22  resolving students' disputes and grievances about student 
 82.23  transfers under a desegregation/integration plan.  
 82.24     Sec. 51.  Minnesota Statutes 2000, section 124D.892, 
 82.25  subdivision 3, as amended by Laws 2001, chapter 7, section 32, 
 82.26  is amended to read: 
 82.27     Subd. 3.  [ADVISORY BOARD.] The commissioner shall 
 82.28  establish an advisory board composed of: 
 82.29     (1) nine superintendents, eight of whom are selected by the 
 82.30  superintendents of the school districts located in whole or in 
 82.31  part within each of the eight metropolitan districts established 
 82.32  under section 473.123, subdivision 3c, and one who is from a 
 82.33  district outside the seven-county metropolitan area that is 
 82.34  considered racially isolated or that has a racially isolated 
 82.35  school site according to Minnesota Rules, part 3535.0110; 
 82.36     (2) one person each selected by the Indian affairs council, 
 83.1   the council on Asian-Pacific Minnesotans, the council on Black 
 83.2   Minnesotans, and the council on affairs of Chicano/Latino 
 83.3   people; and 
 83.4      (3) the superintendent of independent school district No. 
 83.5   709, Duluth. 
 83.6      The advisory board shall advise the office on complying 
 83.7   with the requirements under subdivision 1.  The advisory board 
 83.8   may solicit comments from teachers, parents, students, and 
 83.9   interested community organizations and others. 
 83.10     The advisory board shall expire June 30, 2003.  
 83.11     Sec. 52.  Minnesota Statutes 2000, section 124D.894, is 
 83.12  amended to read: 
 83.13     124D.894 [STATE MULTICULTURAL EDUCATION ADVISORY 
 83.14  COMMITTEE.] 
 83.15     (a) The commissioner shall appoint a state multicultural 
 83.16  education advisory committee to advise the department and the 
 83.17  state board on multicultural education.  The committee must have 
 83.18  12 members and be composed of representatives from among the 
 83.19  following groups and community organizations:  African-American, 
 83.20  Asian-Pacific, Hispanic, and American Indian.  The committee 
 83.21  shall expire June 30, 2003.  
 83.22     (b) The state committee shall provide information and 
 83.23  recommendations on: 
 83.24     (1) department procedures for reviewing and approving 
 83.25  district plans and disseminating information on multicultural 
 83.26  education; 
 83.27     (2) department procedures for improving inclusive education 
 83.28  plans, curriculum and instruction improvement plans, and 
 83.29  performance-based assessments; 
 83.30     (3) developing learner outcomes which are multicultural; 
 83.31  and 
 83.32     (4) other recommendations that will further inclusive, 
 83.33  multicultural education. 
 83.34     (c) The committee shall also participate in determining the 
 83.35  criteria for and awarding the grants established under Laws 
 83.36  1993, chapter 224, article 8, section 22, subdivision 8. 
 84.1      Sec. 53.  [124D.945] [EDUCATIONAL IMPROVEMENT PLAN.] 
 84.2      Subdivision 1.  [QUALIFYING PLAN.] A district may develop 
 84.3   an educational improvement plan for the purpose of qualifying 
 84.4   for alternative teacher compensation aid under sections 124D.946 
 84.5   and 124D.947.  The plan must include measures for improving 
 84.6   school district, school site, teacher, and individual student 
 84.7   performance.  
 84.8      Subd. 2.  [PLAN COMPONENTS.] The educational improvement 
 84.9   plan must be approved by the school board and have at least 
 84.10  these elements: 
 84.11     (1) assessment and evaluation tools to measure student 
 84.12  performance and progress; 
 84.13     (2) performance goals and benchmarks for improvement; 
 84.14     (3) measures of student attendance and completion rates; 
 84.15     (4) a rigorous professional development system that is 
 84.16  aligned with educational improvement, designed to achieve 
 84.17  teaching quality improvement, and consistent with clearly 
 84.18  defined research-based standards; 
 84.19     (5) measures of student, family, and community involvement 
 84.20  and satisfaction; 
 84.21     (6) a data system about students and their academic 
 84.22  progress that provides parents and the public with 
 84.23  understandable information; and 
 84.24     (7) a teacher induction and mentoring program for 
 84.25  probationary teachers that provides continuous learning and 
 84.26  sustained teacher support.  The process for developing the plan 
 84.27  must involve district teachers. 
 84.28     Subd. 3.  [SCHOOL SITE ACCOUNTABILITY.] A district that 
 84.29  develops a plan under subdivisions 1 and 2 must ensure that each 
 84.30  school site develops a board-approved educational improvement 
 84.31  plan that is aligned with the district educational improvement 
 84.32  plan under subdivision 2.  While a site plan must be consistent 
 84.33  with the district educational improvement plan, it may establish 
 84.34  performance goals and benchmarks that meet or exceed those of 
 84.35  the district.  The process for developing the plan must involve 
 84.36  site teachers.  
 85.1      Sec. 54.  [124D.946] [ALTERNATIVE TEACHER COMPENSATION.] 
 85.2      Subdivision 1.  [RESTRUCTURED PAY SYSTEM.] A restructured 
 85.3   teacher compensation system is established under subdivision 2 
 85.4   to provide incentives for teachers to improve their knowledge 
 85.5   and skills and for school districts to recruit and retain highly 
 85.6   qualified teachers, and to support teachers' roles in improving 
 85.7   students' educational achievement.  
 85.8      Subd. 2.  [ALTERNATIVE TEACHER PROFESSIONAL PAY 
 85.9   SYSTEM.] (a) To participate in this program, a school district 
 85.10  must have an educational improvement plan as described in 
 85.11  section 124D.945 and an alternative teacher professional pay 
 85.12  system as described in paragraph (b). 
 85.13     (b) The alternative teacher professional pay system must: 
 85.14     (1) describe the conditions necessary for career 
 85.15  advancement and additional compensation; 
 85.16     (2) provide career advancement options for teachers 
 85.17  retaining primary roles in student instruction; 
 85.18     (3) use a professional pay system that replaces the step 
 85.19  and lane salary schedule and is not based on years of service; 
 85.20     (4) encourage teachers' continuous improvement in content 
 85.21  knowledge, pedagogy, and use of best practices; and 
 85.22     (5) implement an objective evaluation system, including 
 85.23  classroom observation, that is aligned with the district's or 
 85.24  the site's educational improvement plan as described in section 
 85.25  124D.945. 
 85.26     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 85.27  following final enactment.  
 85.28     Sec. 55.  [124D.947] [ALTERNATIVE COMPENSATION AID.] 
 85.29     Subdivision 1.  [AID AMOUNT.] (a) A school district that 
 85.30  meets the conditions of section 124D.946 and submits an 
 85.31  application approved by the commissioner is eligible for 
 85.32  alternative compensation aid.  The commissioner must consider 
 85.33  only applications submitted jointly by a school district and the 
 85.34  exclusive representative of the teachers for participation in 
 85.35  the program.  The application must contain a formally adopted 
 85.36  collective bargaining agreement, memorandum of understanding, or 
 86.1   other binding agreement that implements an alternative teacher 
 86.2   professional pay system consistent with section 124D.946 and 
 86.3   includes all teachers in a district, all teachers at a school 
 86.4   site, or at least 25 percent of the teachers in a district.  The 
 86.5   commissioner may give preference to applications involving 
 86.6   entire districts or sites in approving applications.  
 86.7      (b) Alternative compensation aid for a qualifying school 
 86.8   district, site, or portion of a district or school site is as 
 86.9   follows: 
 86.10     (1) for a school district in which the school board and the 
 86.11  exclusive representative of the teachers agree to place all 
 86.12  teachers in the district or at the site on the alternative 
 86.13  compensation schedule, alternative compensation aid equals $150 
 86.14  times the district's or the site's number of pupils enrolled on 
 86.15  October 1 of the previous fiscal year; or 
 86.16     (2) for a district in which the school board and the 
 86.17  exclusive representative of the teachers agree that at least 25 
 86.18  percent of the district's licensed teachers will be paid on the 
 86.19  alternative compensation schedule, alternative compensation aid 
 86.20  equals $150 times the percentage of participating teachers times 
 86.21  the district's number of pupils enrolled as of October 1 of the 
 86.22  previous fiscal year.  
 86.23     Subd. 2.  [PERCENTAGE OF TEACHERS.] For purposes of this 
 86.24  section, the percentage of teachers participating in the teacher 
 86.25  professional pay system equals the ratio of the number of 
 86.26  licensed teachers who are working at least 60 percent of a 
 86.27  full-time teacher's hours and agree to participate in the 
 86.28  teacher professional pay system to the total number of licensed 
 86.29  teachers who are working at least 60 percent of a full-time 
 86.30  teacher's hours.  
 86.31     Subd. 3.  [AID TIMING.] (a) Districts or sites with 
 86.32  approved applications must receive alternative compensation aid 
 86.33  for each school year that the district or site participates in 
 86.34  the program.  The commissioner must approve initial applications 
 86.35  for school districts qualifying under subdivision 1, paragraph 
 86.36  (b), clause (1), by January 15 of each year.  If any money 
 87.1   remains, the commissioner must approve aid amounts for school 
 87.2   districts qualifying under subdivision 1, paragraph (b), clause 
 87.3   (2), by February 15 of each year.  
 87.4      (b) The commissioner shall select applicants that qualify 
 87.5   for this program, notify school districts and school sites about 
 87.6   the program, develop and disseminate application materials, and 
 87.7   carry out other activities needed to implement this section.  
 87.8      <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2001. 
 87.9      Sec. 56.  Minnesota Statutes 2000, section 126C.05, 
 87.10  subdivision 15, is amended to read: 
 87.11     Subd. 15.  [LEARNING YEAR PUPIL UNITS.] (a) When a pupil is 
 87.12  enrolled in a learning year program under section 124D.128, an 
 87.13  area learning center under sections 123A.05 and 123A.06, an 
 87.14  alternative program approved by the commissioner, or a contract 
 87.15  alternative program under section 124D.68, subdivision 3, 
 87.16  paragraph (d), or subdivision 3a, for more than 1,020 hours in a 
 87.17  school year for a secondary student, more than 935 hours in a 
 87.18  school year for an elementary student, or more than 425 hours in 
 87.19  a school year for a kindergarten student without a disability, 
 87.20  that pupil may be counted as more than one pupil in average 
 87.21  daily membership.  The amount in excess of one pupil must be 
 87.22  determined by the ratio of the number of hours of instruction 
 87.23  provided to that pupil in excess of:  (i) the greater of 1,020 
 87.24  hours or the number of hours required for a full-time secondary 
 87.25  pupil in the district to 1,020 for a secondary pupil; (ii) the 
 87.26  greater of 935 hours or the number of hours required for a 
 87.27  full-time elementary pupil in the district to 935 for an 
 87.28  elementary pupil in grades 1 through 6; and (iii) the greater of 
 87.29  425 hours or the number of hours required for a full-time 
 87.30  kindergarten student without a disability in the district to 425 
 87.31  for a kindergarten student without a disability.  Hours that 
 87.32  occur after the close of the instructional year in June shall be 
 87.33  attributable to the following fiscal year.  A kindergarten 
 87.34  student must not be counted as more than 1.2 pupils in average 
 87.35  daily membership under this subdivision. 
 87.36     (b)(i) To receive general education revenue for a pupil in 
 88.1   an alternative program that has an independent study component, 
 88.2   a district must meet the requirements in this paragraph.  The 
 88.3   district must develop, with for the pupil, a continual learning 
 88.4   plan for the pupil.  A district must allow a minor pupil's 
 88.5   parent or guardian to participate in developing the plan, if the 
 88.6   parent or guardian wants to participate.  The plan must identify 
 88.7   the learning experiences and expected outcomes needed for 
 88.8   satisfactory credit for the year and for graduation.  The plan 
 88.9   must be updated each year consistent with section 124D.128, 
 88.10  subdivision 3.  Each school district that has a state-approved 
 88.11  public alternative program must reserve revenue in an amount 
 88.12  equal to at least 90 percent of the district average general 
 88.13  education revenue per pupil unit less compensatory revenue per 
 88.14  pupil unit times the number of pupil units generated by students 
 88.15  attending a state-approved public alternative program.  The 
 88.16  amount of reserved revenue available under this subdivision may 
 88.17  only be spent for program costs associated with the 
 88.18  state-approved public alternative program.  Compensatory revenue 
 88.19  must be allocated according to section 126C.15, subdivision 2. 
 88.20     (ii) General education revenue for a pupil in an approved 
 88.21  alternative program without an independent study component must 
 88.22  be prorated for a pupil participating for less than a full year, 
 88.23  or its equivalent.  The district must develop a continual 
 88.24  learning plan for the pupil, consistent with section 124D.128, 
 88.25  subdivision 3.  Each school district that has a state-approved 
 88.26  public alternative program must reserve revenue in an amount 
 88.27  equal to at least 90 percent of the district average general 
 88.28  education revenue per pupil unit less compensatory revenue per 
 88.29  pupil unit times the number of pupil units generated by students 
 88.30  attending a state-approved public alternative program.  The 
 88.31  amount of reserved revenue available under this subdivision may 
 88.32  only be spent for program costs associated with the 
 88.33  state-approved public alternative program.  Compensatory revenue 
 88.34  must be allocated according to section 126C.15, subdivision 2.  
 88.35     (iii) General education revenue for a pupil in an approved 
 88.36  alternative program that has an independent study component must 
 89.1   be paid for each hour of teacher contact time and each hour of 
 89.2   independent study time completed toward a credit or graduation 
 89.3   standards necessary for graduation.  Average daily membership 
 89.4   for a pupil shall equal the number of hours of teacher contact 
 89.5   time and independent study time divided by 1,020. 
 89.6      (iv) For an alternative program having an independent study 
 89.7   component, the commissioner shall require a description of the 
 89.8   courses in the program, the kinds of independent study involved, 
 89.9   the expected learning outcomes of the courses, and the means of 
 89.10  measuring student performance against the expected outcomes.  
 89.11     Sec. 57.  Minnesota Statutes 2000, section 126C.05, is 
 89.12  amended by adding a subdivision to read: 
 89.13     Subd. 18.  [PUPIL ADJUSTMENT FOR CLOSED CHARTER SCHOOLS AND 
 89.14  CONTRACTED ALTERNATIVE PROGRAMS.] For a charter school or 
 89.15  contracted alternative program operating during the prior school 
 89.16  year but ceasing operations before the end of the current school 
 89.17  year, prior year pupil data used in computing revenues for the 
 89.18  current school year shall be prorated based on the number of 
 89.19  days of student instruction in the current school year to 170. 
 89.20     Sec. 58.  Minnesota Statutes 2000, section 127A.45, 
 89.21  subdivision 9, is amended to read: 
 89.22     Subd. 9.  [FINAL ADJUSTMENT PAYMENT.] (a) For all aids and 
 89.23  credits paid according to subdivision 13, the final adjustment 
 89.24  payment must include the amounts necessary to pay the district's 
 89.25  full aid entitlement for the prior year based on actual data.  
 89.26  This payment must be used to correct all estimates used for the 
 89.27  payment schedule in subdivision 3.  The payment must be made as 
 89.28  specified in subdivision 3.  In the event actual data are not 
 89.29  available, the final adjustment payment may be computed based on 
 89.30  estimated data.  A corrected final adjustment payment must be 
 89.31  made when actual data are available.  
 89.32     (b) Notwithstanding paragraph (a) and subdivision 3, for a 
 89.33  charter school that ceases operation before the end of a school 
 89.34  year, a final adjustment payment for aid programs funded with an 
 89.35  open appropriation may be made after audit of the prior fiscal 
 89.36  year and current fiscal year pupil counts. 
 90.1      Sec. 59.  Minnesota Statutes 2000, section 129C.10, 
 90.2   subdivision 3, is amended to read: 
 90.3      Subd. 3.  [POWERS AND DUTIES OF BOARD.] (a) The board has 
 90.4   the powers necessary for the care, management, and control of 
 90.5   the Perpich center for arts education and all its real and 
 90.6   personal property.  The powers shall include, but are not 
 90.7   limited to, those listed in this subdivision. 
 90.8      (b) The board may employ and discharge necessary employees, 
 90.9   and contract for other services to ensure the efficient 
 90.10  operation of the center for arts education. 
 90.11     (c) The board may receive and award grants.  The board may 
 90.12  establish a charitable foundation and accept, in trust or 
 90.13  otherwise, any gift, grant, bequest, or devise for educational 
 90.14  purposes and hold, manage, invest, and dispose of them and the 
 90.15  proceeds and income of them according to the terms and 
 90.16  conditions of the gift, grant, bequest, or devise and its 
 90.17  acceptance.  The board must adopt internal procedures to 
 90.18  administer and monitor aids and grants. 
 90.19     (d) The board may establish or coordinate evening, 
 90.20  continuing education, extension, and summer programs for 
 90.21  teachers and pupils. 
 90.22     (e) The board may identify pupils who have artistic talent, 
 90.23  either demonstrated or potential, in dance, literary arts, media 
 90.24  arts, music, theater, and visual arts, or in more than one art 
 90.25  form. 
 90.26     (f) The board must educate pupils with artistic talent by 
 90.27  providing:  
 90.28     (1) an interdisciplinary academic and arts program for 
 90.29  pupils in the 11th and 12th grades.  The total number of pupils 
 90.30  accepted under this clause and clause (2) shall not exceed 300 
 90.31  310; 
 90.32     (2) additional instruction to pupils for a 13th grade. 
 90.33  Pupils eligible for this instruction are those enrolled in 12th 
 90.34  grade who need extra instruction and who apply to the board, or 
 90.35  pupils enrolled in the 12th grade who do not meet learner 
 90.36  outcomes established by the board; 
 91.1      (3) intensive arts seminars for one or two weeks for pupils 
 91.2   in grades 9 to 12; 
 91.3      (4) summer arts institutes for pupils in grades 9 to 12; 
 91.4      (5) artist mentor and extension programs in regional sites; 
 91.5   and 
 91.6      (6) teacher education programs for indirect curriculum 
 91.7   delivery. 
 91.8      (g) The board may determine the location for the Perpich 
 91.9   center for arts education and any additional facilities related 
 91.10  to the center, including the authority to lease a temporary 
 91.11  facility. 
 91.12     (h) The board must plan for the enrollment of pupils on an 
 91.13  equal basis from each congressional district.  
 91.14     (i) The board may establish task forces as needed to advise 
 91.15  the board on policies and issues.  The task forces expire as 
 91.16  provided in section 15.059, subdivision 6.  
 91.17     (j) The board may request the commissioner of children, 
 91.18  families, and learning for assistance and services. 
 91.19     (k) The board may enter into contracts with other public 
 91.20  and private agencies and institutions for residential and 
 91.21  building maintenance services if it determines that these 
 91.22  services could be provided more efficiently and less expensively 
 91.23  by a contractor than by the board itself.  The board may also 
 91.24  enter into contracts with public or private agencies and 
 91.25  institutions, school districts or combinations of school 
 91.26  districts, or service cooperatives to provide supplemental 
 91.27  educational instruction and services. 
 91.28     (l) The board may provide or contract for services and 
 91.29  programs by and for the center for arts education, including a 
 91.30  store, operating in connection with the center; theatrical 
 91.31  events; and other programs and services that, in the 
 91.32  determination of the board, serve the purposes of the center. 
 91.33     (m) The board may provide for transportation of pupils to 
 91.34  and from the center for arts education for all or part of the 
 91.35  school year, as the board considers advisable and subject to its 
 91.36  rules.  Notwithstanding any other law to the contrary, the board 
 92.1   may charge a reasonable fee for transportation of pupils.  Every 
 92.2   driver providing transportation of pupils under this paragraph 
 92.3   must possess all qualifications required by the commissioner of 
 92.4   children, families, and learning.  The board may contract for 
 92.5   furnishing authorized transportation under rules established by 
 92.6   the commissioner of children, families, and learning and may 
 92.7   purchase and furnish gasoline to a contract carrier for use in 
 92.8   the performance of a contract with the board for transportation 
 92.9   of pupils to and from the center for arts education.  When 
 92.10  transportation is provided, scheduling of routes, establishment 
 92.11  of the location of bus stops, the manner and method of 
 92.12  transportation, the control and discipline of pupils, and any 
 92.13  other related matter is within the sole discretion, control, and 
 92.14  management of the board. 
 92.15     (n) The board may provide room and board for its pupils.  
 92.16  If the board provides room and board, it shall charge a 
 92.17  reasonable fee for the room and board.  The fee is not subject 
 92.18  to chapter 14 and is not a prohibited fee according to sections 
 92.19  123B.34 to 123B.39.  
 92.20     (o) The board may establish and set fees for services and 
 92.21  programs.  If the board sets fees not authorized or prohibited 
 92.22  by the Minnesota public school fee law, it may do so without 
 92.23  complying with the requirements of section 123B.38.  
 92.24     (p) The board may apply for all competitive grants 
 92.25  administered by agencies of the state and other government or 
 92.26  nongovernment sources. 
 92.27     <b>[EFFECTIVE DATE.]</b> This section is effective for the 
 92.28  2001-2002 school year and later. 
 92.29     Sec. 60.  Minnesota Statutes 2000, section 171.02, 
 92.30  subdivision 2a, as amended by Laws 2001, chapter 97, section 4, 
 92.31  is amended to read: 
 92.32     Subd. 2a.  [EXCEPTIONS.] (a) Notwithstanding subdivision 2, 
 92.33  (1) a hazardous materials endorsement is not required to operate 
 92.34  a vehicle having a gross vehicle weight of 26,000 pounds or less 
 92.35  while carrying in bulk tanks a total of not more than 200 
 92.36  gallons of petroleum products and (2) a class C license or 
 93.1   hazardous materials endorsement is not required to operate a 
 93.2   farm vehicle as defined in Code of Federal Regulations, title 
 93.3   49, section 390.5, having a gross vehicle weight of 26,000 
 93.4   pounds or less while carrying in bulk tanks a total of not more 
 93.5   than 1,500 gallons of liquid fertilizer. 
 93.6      (b) Notwithstanding subdivision 2, paragraph (c), the 
 93.7   holder of a class D driver's license, without a school bus 
 93.8   endorsement, may operate a type A school bus described in 
 93.9   subdivision 2, paragraph (b), under the following conditions: 
 93.10     (1) The operator is an employee as of the day following 
 93.11  final enactment of this act of the entity that owns, leases, or 
 93.12  contracts for the school bus and is not solely hired to provide 
 93.13  transportation services under this paragraph. 
 93.14     (2) The operator drives the school bus only from points of 
 93.15  origin to points of destination, not including home-to-school 
 93.16  trips to pick up or drop off students.  
 93.17     (3) The operator is prohibited from using the eight-light 
 93.18  system.  Violation of this clause is a misdemeanor. 
 93.19     (4) The operator's employer has adopted and implemented a 
 93.20  policy that provides for annual training and certification of 
 93.21  the operator in: 
 93.22     (i) safe operation of the type of school bus the operator 
 93.23  will be driving; 
 93.24     (ii) understanding student behavior, including issues 
 93.25  relating to students with disabilities; 
 93.26     (iii) encouraging orderly conduct of students on the bus 
 93.27  and handling incidents of misconduct appropriately; 
 93.28     (iv) knowing and understanding relevant laws, rules of the 
 93.29  road, and local school bus safety policies; 
 93.30     (v) handling emergency situations; and 
 93.31     (vi) safe loading and unloading of students. 
 93.32     (5) A background check or background investigation of the 
 93.33  operator has been conducted that meets the requirements under 
 93.34  section 122A.18, subdivision 8, or 123B.03 for teachers; section 
 93.35  144.057 or 245A.04 for day care employees; or section 171.321, 
 93.36  subdivision 3, for all other persons operating a type A school 
 94.1   bus under this paragraph. 
 94.2      (6) Operators shall submit to a physical examination as 
 94.3   required by section 171.321, subdivision 2. 
 94.4      (7) The operator's driver's license is verified annually by 
 94.5   the entity that owns, leases, or contracts for the school bus. 
 94.6      (8) A person who sustains a conviction, as defined under 
 94.7   section 609.02, of violating section 169A.25, 169A.26, 169A.27, 
 94.8   169A.31, 169A.51, or 169A.52, or a similar statute or ordinance 
 94.9   of another state is precluded from operating a school bus for 
 94.10  five years from the date of conviction. 
 94.11     (9) A person who sustains a conviction, as defined under 
 94.12  section 609.02, of a fourth moving offense in violation of 
 94.13  chapter 169 is precluded from operating a school bus for one 
 94.14  year from the date of the last conviction. 
 94.15     (10) Students riding the school bus must have training 
 94.16  required under section 123B.90, subdivision 2. 
 94.17     (11) An operator must be trained in the proper use of child 
 94.18  safety restraints as set forth in the National Highway Traffic 
 94.19  Safety Administration's "Guideline for the Safe Transportation 
 94.20  of Pre-school Age Children in School Buses." 
 94.21     (12) Annual certification of the requirements listed in 
 94.22  this paragraph must be maintained under separate file at the 
 94.23  business location for each operator licensed under this 
 94.24  paragraph and subdivision 2, paragraph (b), clause (5).  The 
 94.25  business manager, school board, governing body of a nonpublic 
 94.26  school, or any other entity that owns, leases, or contracts for 
 94.27  the school bus operating under this paragraph is responsible for 
 94.28  maintaining these files for inspection. 
 94.29     (13) The school bus must bear a current certificate of 
 94.30  inspection issued under section 169.451. 
 94.31     (14) The word "School" on the front and rear of the bus 
 94.32  must be covered by a sign that reads "Activities" when the bus 
 94.33  is being operated under authority of this paragraph. 
 94.34     Sec. 61.  Minnesota Statutes 2000, section 179A.20, is 
 94.35  amended by adding a subdivision to read: 
 94.36     Subd. 2b.  [STRUCTURALLY BALANCED SCHOOL DISTRICT 
 95.1   BUDGETS.] (a) Prior to approving a collective bargaining 
 95.2   agreement that does not result from an interest arbitration 
 95.3   decision, a school board must determine by board resolution that 
 95.4   the proposed agreement will not cause structural imbalance in 
 95.5   the district's budget during the period of the agreement. 
 95.6      (b)  A school board may only determine that an agreement 
 95.7   will not cause structural imbalance if expenditures will not 
 95.8   exceed available funds, taking into account: 
 95.9      (1) current state aid formulas; and 
 95.10     (2) reasonable and comprehensive projections of ongoing 
 95.11  revenues and expenditures for the period of the agreement.  It 
 95.12  is expected that one-time revenue may not be used for ongoing 
 95.13  expenditures.  The school board must make available with the 
 95.14  resolution a summary of the projections and calculations 
 95.15  supporting the determination.  The projections and calculations 
 95.16  must include state aid formulas, pupil units, and employee 
 95.17  costs, including the terms of labor agreements, including the 
 95.18  agreement under consideration, fringe benefits, severance pay, 
 95.19  and staff changes. 
 95.20     (c) In addition to the determination required in paragraph 
 95.21  (a), the school board must project revenues, expenditures, and 
 95.22  fund balances for one year following the period of the 
 95.23  agreement.  The projections must include the categories of 
 95.24  information described in paragraph (b), be reasonable and 
 95.25  comprehensive, and reference current state aid formulas.  
 95.26     (d) All projections and calculations required by this 
 95.27  section must be made available to the public prior to and at the 
 95.28  meeting where the resolution is adopted in a manner consistent 
 95.29  with state law on public notice and access to public data.  
 95.30     (e) In an interest arbitration, the district must submit, 
 95.31  and the exclusive bargaining representative may submit, proposed 
 95.32  determinations with supporting projections and calculations 
 95.33  consistent with paragraph (b) of the effect of the potential 
 95.34  decision on the structural balance of the district's budget.  
 95.35  The arbitrator must consider the potential effect of a decision 
 95.36  on the structural balance of the district's budget for the term 
 96.1   of the agreement.  The arbitrator's decision must describe the 
 96.2   effect of the decision on the structural balance of the 
 96.3   district's budget in a manner consistent with paragraph (b).  
 96.4   The arbitrator's decision must also show the effect of the 
 96.5   decision on the school budget for one year following the term of 
 96.6   the contract at issue.  Within 30 days of receipt of the 
 96.7   decision or when the board acts on the decision, whichever is 
 96.8   earlier, the school board must by resolution determine the 
 96.9   effect of the decision on the structural balance of its budget 
 96.10  for the term of the agreement consistent with paragraph (b). 
 96.11     (f) A copy of the resolution with the supporting 
 96.12  projections and calculations must be submitted to the 
 96.13  commissioner of children, families, and learning with the 
 96.14  uniform collective bargaining agreement settlement document 
 96.15  within 30 days of adoption of the resolution.  The commissioner 
 96.16  must develop a model form for use by districts in reporting 
 96.17  projections and calculations.  The commissioner must make all 
 96.18  resolutions, projections, and calculations available to the 
 96.19  public. 
 96.20     (g) Compliance with this section by itself is not an unfair 
 96.21  labor practice under section 179A.13, subdivision 2. 
 96.22     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 96.23  following final enactment and applies to contracts between 
 96.24  school boards and exclusive representatives of teachers for the 
 96.25  time period July 1, 2001, to June 30, 2003, and thereafter.  
 96.26  This section does not apply to contracts settled prior to the 
 96.27  effective date. 
 96.28     Sec. 62.  [LABORATORY SCHOOL; INNOVATIVE TEACHING 
 96.29  TECHNIQUES.] 
 96.30     Subdivision 1.  [PURPOSE.] The purpose of this section is 
 96.31  to ensure that the school children in kindergarten through grade 
 96.32  5 in the Randall area, elsewhere in the Little Falls school 
 96.33  district, and in all school districts in the state have access 
 96.34  to a high quality, innovative education experience. 
 96.35     Subd. 2.  [JOINT OFFICE ESTABLISHED.] Independent school 
 96.36  district No. 482, Little Falls; the department of children, 
 97.1   families, and learning; Minnesota state colleges and 
 97.2   universities; and St. Cloud State University's school of 
 97.3   education shall collaborate for the purpose of establishing a 
 97.4   joint office, if funds are available, to evaluate curriculum, 
 97.5   instruction, and testing.  The office shall be located at the 
 97.6   Dr. S. G. Knight school in Randall.  
 97.7      Subd. 3.  [LABORATORY SCHOOL.] The office under authority 
 97.8   of independent school district No. 482, Little Falls shall, if 
 97.9   funds are available, operate a laboratory school program for 
 97.10  elementary students in kindergarten through grade 5 at the Dr. 
 97.11  S. G. Knight school.  The laboratory school, if established, 
 97.12  must be used to develop innovative teaching techniques that 
 97.13  enhance students' learning experiences.  The office, if 
 97.14  established, must make the innovative teaching techniques, which 
 97.15  must include testing of students' knowledge, developed at the 
 97.16  laboratory school available to all school districts in the state.
 97.17     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2001. 
 97.18     Sec. 63.  [ALTERNATIVE MODELS FOR DELIVERING EDUCATION; 
 97.19  EXPANDING THE FLEXIBLE LEARNING YEAR PROGRAM.] 
 97.20     Subdivision 1.  [ESTABLISHMENT; GOAL.] A three-year pilot 
 97.21  project is established to permit participating school districts 
 97.22  and school sites approved by the commissioner of children, 
 97.23  families, and learning under subdivision 2 to use alternative 
 97.24  models for delivering education by expanding the flexible 
 97.25  learning year program under Minnesota Statutes, sections 124D.12 
 97.26  to 124D.127.  The project is intended to explore effective 
 97.27  alternatives for delivering education, with the goal of 
 97.28  improving instruction and students' educational outcomes and 
 97.29  opportunities and increasing the cost-effectiveness of 
 97.30  educational programs. 
 97.31     Subd. 2.  [ELIGIBILITY; APPLICATIONS.] The commissioner 
 97.32  shall make application forms available to school districts and 
 97.33  school sites interested in exploring effective alternative 
 97.34  models for delivering instruction during a redefined flexible 
 97.35  learning year as described in this section.  Interested school 
 97.36  districts and school sites must have their application to 
 98.1   participate in this program first approved by the local school 
 98.2   board and a majority of teachers employed in the district or at 
 98.3   the site, respectively, after a public hearing on the matter.  
 98.4   Applications must be submitted to the commissioner by January 1, 
 98.5   2002.  The application must describe how the applicant proposes 
 98.6   to realize the goal of this project, including what activities 
 98.7   and procedures the applicant proposes to develop and implement 
 98.8   and the specific changes in the learning year the applicant 
 98.9   requires to accomplish those activities and procedures.  The 
 98.10  commissioner, consistent with the requirements of this section, 
 98.11  shall approve applications before March 1, 2002. 
 98.12     Subd. 3.  [EXEMPTIONS.] (a) Notwithstanding other laws or 
 98.13  rules to the contrary, a participant in the pilot project under 
 98.14  this section is exempt from Minnesota Statutes, sections 120A.40 
 98.15  and 120A.41, through the 2004-2005 school year.  Minnesota 
 98.16  Statutes, sections 124D.12 to 124D.127, apply through the 
 98.17  2004-2005 school year except to the extent that the provisions 
 98.18  of this section or the participant's learning year changes 
 98.19  conflict with particular provisions in Minnesota Statutes, 
 98.20  sections 124D.12 to 124D.127. 
 98.21     (b) Consistent with this section, a participant may adopt a 
 98.22  learning year calendar that allows the participant to suitably 
 98.23  fulfill the educational needs of its students using an 
 98.24  alternative learning year calendar.  The commissioner must 
 98.25  provide participants with a formula for computing average daily 
 98.26  membership so that all formulas based upon average daily 
 98.27  membership are not affected as a result of participating in this 
 98.28  pilot project. 
 98.29     Subd. 4.  [TECHNICAL ASSISTANCE.] The commissioner, at the 
 98.30  request of a participant, must provide technical assistance to 
 98.31  the participant.  Also, the commissioner must assist 
 98.32  participants in developing and implementing a valid and uniform 
 98.33  procedure to evaluate the efficacy of their alternative learning 
 98.34  year calendar, consistent with the goals of this section. 
 98.35     Subd. 5.  [EVALUATION; REPORT.] (a) Participants must 
 98.36  complete a formative and summative evaluation of their 
 99.1   experiences in delivering education under an alternative 
 99.2   learning year calendar.  Participants must focus the evaluation 
 99.3   on the overall efficacy of the pilot project, including the 
 99.4   cost-effectiveness of educational programs and the extent to 
 99.5   which students' educational outcomes and opportunities 
 99.6   improved.  Participants shall use their interim evaluations, 
 99.7   with the commissioner's approval, to modify their project where 
 99.8   appropriate. 
 99.9      (b) Participants shall submit to the commissioner a 
 99.10  progress report by September 1, 2004, and a final report by 
 99.11  January 1, 2006, evaluating the cost-effectiveness of 
 99.12  educational programs and the extent to which students' 
 99.13  educational outcomes and opportunities improved.  The 
 99.14  commissioner shall compile the reports to present to the 
 99.15  committees in the legislature that deal with education policy 
 99.16  and education finance by March 1, 2006.  When presenting the 
 99.17  report, the commissioner must recommend whether or not to 
 99.18  continue or expand this pilot project. 
 99.19     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 99.20  following final enactment. 
 99.21     Sec. 64.  [SCHOOLS' ACADEMIC AND FINANCIAL PERFORMANCE 
 99.22  EVALUATION; INDEPENDENT CONTRACTOR.] 
 99.23     (a) To assist taxpayers, educators, school board members, 
 99.24  and state and local officials in realizing their commitment to 
 99.25  improving student achievement and the management of school 
 99.26  systems, the commissioner of children, families, and learning 
 99.27  shall contract with an independent school evaluation services 
 99.28  contractor to evaluate and report on the academic and financial 
 99.29  performance of the state's independent school districts using 
 99.30  six core categories of analysis: 
 99.31     (1) school district expenditures; 
 99.32     (2) students' performance outcomes based on multiple 
 99.33  indicia including students' test scores, attendance rates, 
 99.34  dropout rates, and graduation rates; 
 99.35     (3) return on resources to determine the extent to which 
 99.36  student outcomes improve commensurate with increases in district 
100.1   spending; 
100.2      (4) school district finances, taxes, and debt to establish 
100.3   the context for analyzing the district's return on resources 
100.4   under clause (3); 
100.5      (5) students' learning environment to establish the context 
100.6   for analyzing the district's return on resources under clause 
100.7   (3); and 
100.8      (6) school district demographics to establish the 
100.9   socioeconomic context for analyzing the district's return on 
100.10  resources under clause (3). 
100.11     (b) In order to compare the regional and socioeconomic 
100.12  peers of particular school districts, monitor educational 
100.13  changes over time and identify important educational trends, the 
100.14  contractor shall use the six core categories of analysis to: 
100.15     (1) identify allocations of baseline and incremental school 
100.16  district spending; 
100.17     (2) connect student achievement with expenditure patterns; 
100.18     (3) track school district financial health; 
100.19     (4) observe school district debt and capital spending 
100.20  levels; and 
100.21     (5) measure the return on a school district's educational 
100.22  resources. 
100.23     (c) The contractor under paragraph (a) shall evaluate and 
100.24  report on the academic and financial performance of all school 
100.25  districts. 
100.26     (d) Consistent with paragraph (a), clause (2), the 
100.27  evaluation and reporting of test scores must distinguish between:
100.28     (1) performance-based assessments; and 
100.29     (2) academic, objective knowledge-based tests. 
100.30     (e) The contractor must complete its written report and 
100.31  submit it to the commissioner within 360 days of the date on 
100.32  which the contract is signed.  The commissioner immediately must 
100.33  make the report available in a readily accessible format to 
100.34  state and local elected officials, members of the public, 
100.35  educators, parents, and other interested individuals.  The 
100.36  commissioner, upon receiving an individual's request, also must 
101.1   make available all draft reports prepared by the contractor, 
101.2   consistent with Minnesota Statutes, chapter 13. 
101.3      Sec. 65.  [EXCESSIVE CHARTER SCHOOL LEASE COSTS; RELATED 
101.4   PARTIES.] 
101.5      (a) This section applies only to charter school leases 
101.6   entered into before July 1, 2001, that are between related 
101.7   parties as defined in paragraph (c), clause (1). 
101.8      (b) This section does not apply to a lease in which: 
101.9      (1) the lessor and lessee are not related parties, as 
101.10  defined in this section, as determined in writing by the 
101.11  commissioner; or 
101.12     (2) the lessor and lessee are related parties, but the 
101.13  lessor is a nonprofit corporation under chapter 317A or a 
101.14  cooperative under chapter 308A. 
101.15     (c) For purposes of this section: 
101.16     (1) "Related party" means an affiliate or close relative of 
101.17  the other party in question, an affiliate of a close relative, 
101.18  or a close relative of an affiliate.  
101.19     (2) "Affiliate" means a person that directly, or indirectly 
101.20  through one or more intermediaries, controls, or is controlled 
101.21  by, or is under common control with, another person. 
101.22     (3) "Close relative" means an individual whose relationship 
101.23  by blood, marriage, or adoption to another individual is no more 
101.24  remote than first cousin. 
101.25     (4) "Person" means an individual or entity of any kind. 
101.26     (5) "Control" includes the terms "controlling," "controlled 
101.27  by," and "under common control with" and means the possession, 
101.28  direct or indirect, of the power to direct or cause the 
101.29  direction of the management, operations, or policies of a 
101.30  person, whether through the ownership of voting securities, by 
101.31  contract, or otherwise. 
101.32     (d) To claim a lien under this section, the commissioner 
101.33  must record with the county recorder or file with the registrar 
101.34  of titles, whichever is appropriate, a document entitled "Notice 
101.35  of Lien," stating that the commissioner of children, families, 
101.36  and learning of the state of Minnesota claims a lien under this 
102.1   section on the real property, including fixtures.  The notice of 
102.2   lien must contain a legal description of the leased real 
102.3   property, be signed and acknowledged by the commissioner, and 
102.4   meet all other applicable requirements for recording or filing.  
102.5      (e) A lien created under this section secures the rights of 
102.6   the commissioner under paragraph (f). 
102.7      (f) The commissioner may recover from the lessor the amount 
102.8   of rent or other payments made under the lease, to the extent 
102.9   that the rent or other payments exceed the fair market rental 
102.10  value of the real property, as determined by the commissioner.  
102.11  If the lessor is not the holder of fee title to the real 
102.12  property, the commissioner's right of recovery extends to the 
102.13  holder of fee title if the lessor and holder of fee title are 
102.14  related parties as defined in this section. 
102.15     (g) The lien created under this section is subordinate to 
102.16  the interest of any mortgagee or other lienholder of the 
102.17  property, under a mortgage or other lien recorded or filed prior 
102.18  to the recording or filing of the lien created in this section, 
102.19  except that this provision does not apply to a mortgagee or 
102.20  other lienholder that is a related party to the lessor or other 
102.21  party against whom the commissioner has a right of recovery 
102.22  under paragraph (f).  The commissioner may agree to subordinate 
102.23  the lien created under this paragraph to a prior or subsequent 
102.24  mortgage or other lien if the commissioner determines that the 
102.25  subordination is necessary to permit continued lawful operation 
102.26  of the charter school.  The commissioner shall subordinate the 
102.27  lien created under this section to a prior mortgage or other 
102.28  lien if necessary to establish that the prior mortgagee or other 
102.29  lienor is not a related party to the lessor or other party 
102.30  against whom the commissioner has a right of recovery.  
102.31     (h) The lien created in this section is not enforceable 
102.32  against, and is subordinate to, the interest of a good faith 
102.33  purchaser for value of the real property who (1) is not a 
102.34  related party of the lessor or of another party against whom the 
102.35  commissioner has a right of recovery under paragraph (f), and 
102.36  (2) purchases the real property before the recording or filing 
103.1   of the notice of lien. 
103.2      (i) If, or to the extent that, the commissioner determines 
103.3   that the commissioner has no right of recovery under a lien 
103.4   created under this section, the commissioner shall provide to 
103.5   the lessor, or other party having an interest in the property, a 
103.6   release or partial release of this lien.  Any recording or 
103.7   filing fees for the release are the responsibility of the person 
103.8   requesting the release. 
103.9      (j) A decision or action of the commissioner under this 
103.10  subdivision may be appealed under chapter 14.  
103.11     (k) A lien created under this section may be foreclosed in 
103.12  the manner provided in chapter 581, with reasonable attorney 
103.13  fees to be determined by the court. 
103.14     (l) The commissioner must withhold the aid payments from a 
103.15  charter school if, during the commissioner's annual review of 
103.16  building lease agreements, the commissioner determines that the 
103.17  charter school lease does not contain the notice of lien under 
103.18  paragraph (d). 
103.19     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
103.20  following final enactment. 
103.21     Sec. 66.  [CHARTER SCHOOL ADVISORY COUNCIL; EXPIRATION.] 
103.22     The charter school advisory council under Minnesota 
103.23  Statutes, section 124D.10, subdivision 26, expires June 30, 2003.
103.24     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
103.25  following final enactment. 
103.26     Sec. 67.  [TEST CONTENT.] 
103.27     (a) The commissioner of the department of children, 
103.28  families, and learning at least must include in the eighth grade 
103.29  basic skills test in mathematics and in the mathematics portions 
103.30  of the third, fifth, and seventh grade Minnesota comprehensive 
103.31  assessments a sufficient number of test items to allow students 
103.32  to demonstrate computational skills without using a calculator. 
103.33     (b) The commissioner also must evaluate the impact of 
103.34  including items from a variety of print sources in addition to 
103.35  mass media, including fiction or nonfiction literature, in the 
103.36  basic skills tests in reading. 
104.1      <b>[EFFECTIVE DATE.]</b> The requirement in paragraph (a) to 
104.2   include items to allow students to demonstrate computational 
104.3   skills without using a calculator in the mathematics basic 
104.4   skills test is effective February 1, 2002.  The requirement in 
104.5   paragraph (a) to include items to allow students to demonstrate 
104.6   computational skills without using a calculator in the Minnesota 
104.7   comprehensive assessments is effective February 1, 2004.  
104.8   Paragraph (b) is effective the day following final enactment. 
104.9      Sec. 68.  [ACCESS TO TESTS.] 
104.10     The commissioner of children, families, and learning must 
104.11  adopt and publish a policy to provide public and parental access 
104.12  for review of basic skills tests, Minnesota comprehensive 
104.13  assessments, or any other such statewide test and assessment.  
104.14  Upon receiving a written request, the commissioner must make 
104.15  available to parents or guardians a copy of their student's 
104.16  actual answer sheet to the test questions. 
104.17     <b>[EFFECTIVE DATE.]</b> This section is effective February 1, 
104.18  2002. 
104.19     Sec. 69.  [PROCESS TO ALLOW STUDENTS TO TAKE THE BASIC 
104.20  SKILLS TEST AS EARLY AS FIFTH GRADE.] 
104.21     The commissioner of children, families, and learning shall 
104.22  develop a process to allow students to take the test of basic 
104.23  requirements in reading, math, or writing beginning in grade 5.  
104.24  The recommended process must include the parental or guardian 
104.25  consent, a recommendation from the student's teacher to take a 
104.26  test, and a policy that would limit the number of students who 
104.27  take the test to only those that are likely to pass the test.  
104.28  The commissioner shall consider options of an alternative test 
104.29  or other methods that would preserve the statistical integrity 
104.30  of the current scoring and sampling methods.  The commissioner 
104.31  shall report its recommendations to the education committees of 
104.32  the legislature by February 1, 2002. 
104.33     Sec. 70.  [READING COMPETENCY; ST. CROIX RIVER EDUCATION 
104.34  DISTRICT.] 
104.35     The St. Croix river education district must use its 
104.36  expertise in early literacy and the teaching of reading, its 
105.1   strategies for improving students' reading ability, its student 
105.2   performance measures, and its accountability structure to 
105.3   measure reading program results, to assist school sites and 
105.4   charter schools, including sites where at least 25 percent of 
105.5   K-3 students are eligible to receive a free or reduced price 
105.6   lunch, in achieving children's reading competency by the end of 
105.7   third grade. The St. Croix river education district also must 
105.8   work with preschool program staff to develop reading-related 
105.9   skills that are research-based predictors of literacy. 
105.10     Sec. 71.  [NO DEPARTMENT OF CHILDREN, FAMILIES, AND 
105.11  LEARNING AUDIT PENALTY.] 
105.12     Notwithstanding other law or rule to the contrary, the 
105.13  commissioner of children, families, and learning is prohibited 
105.14  from imposing any penalty, including a financial penalty, on 
105.15  independent school district No. 138, North Branch, as a result 
105.16  of findings 7, 8, and 11, contained in a department of children, 
105.17  families, and learning 1998-1999 fiscal year audit of pupil unit 
105.18  counts related to the district's learning year program under 
105.19  Minnesota Statutes, section 124D.128. 
105.20     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
105.21  following final enactment. 
105.22     Sec. 72.  [DEADLINE AND PENALTY WAIVED.] 
105.23     The deadline and penalty under Minnesota Statutes, section 
105.24  123B.05, subdivision 2, do not apply for aid payments for the 
105.25  2002-2003 biennium. 
105.26     Sec. 73.  [PARTICIPATION IN ATHLETIC ACTIVITIES; MINNESOTA 
105.27  STATE HIGH SCHOOL LEAGUE STUDY.] 
105.28     The Minnesota state high school league must prepare a 
105.29  written report by February 15, 2002, for the legislative 
105.30  committees charged with overseeing kindergarten through grade 12 
105.31  education policy that indicates the interest of charter school 
105.32  students in participating in athletic activities available in 
105.33  the students' resident district.  The Minnesota state high 
105.34  school league at least must: 
105.35     (1) survey the students enrolled in the state's charter 
105.36  schools to determine how interested the students are in 
106.1   participating in various athletic activities offered by their 
106.2   resident school district; 
106.3      (2) review the ability of charter schools to independently 
106.4   or through a cooperative sponsorship provide students with 
106.5   various athletic activities; and 
106.6      (3) determine whether the league's cooperative sponsorship 
106.7   rules need to be amended to facilitate cooperative sponsorship 
106.8   arrangements involving charter schools.  The Minnesota state 
106.9   high school league must cover the costs of this report. 
106.10     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
106.11  following final enactment. 
106.12     Sec. 74.  [SCIENCE LICENSURE.] 
106.13     The board of teaching must issue a teaching license to an 
106.14  applicant who qualifies to teach general science to students in 
106.15  grades five to eight, or who qualifies to teach a specialty in 
106.16  physics, chemistry, life science, or earth and space science to 
106.17  students in grades nine to 12 if the applicant meets other 
106.18  applicable licensure requirements, including the requirements of 
106.19  Minnesota Statutes, section 122A.18, subdivision 8. 
106.20     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
106.21  following final enactment. 
106.22     Sec. 75.  [CAREER AND TECHNICAL LEVY.] 
106.23     For taxes payable in 2002 only, a district that received 
106.24  revenue during fiscal year 2001 under Minnesota Statutes, 
106.25  section 124D.453, may levy an amount equal to the district's 
106.26  fiscal year 2001 entitlement for career and technical aid under 
106.27  Minnesota Statutes, section 124D.453, or $7,500, whichever is 
106.28  greater.  The district may recognize the full amount of this 
106.29  levy as revenue for fiscal year 2002. 
106.30     Sec. 76.  [INTEGRATION LEVY.] 
106.31     For taxes payable in 2002 only, a district's integration 
106.32  levy under Minnesota Statutes, section 124D.86, subdivision 4, 
106.33  equals 37 percent of the district's integration revenue as 
106.34  defined in Minnesota Statutes, section 124D.86, subdivision 3.  
106.35  For fiscal year 2003 only, a district's integration aid under 
106.36  Minnesota Statutes, section 124D.86, subdivision 5, equals 63 
107.1   percent of the district's integration revenue as defined in 
107.2   Minnesota Statutes, section 124D.86, subdivision 3. 
107.3      Sec. 77.  [APPROPRIATIONS.] 
107.4      Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
107.5   LEARNING.] The sums indicated in this section are appropriated 
107.6   from the general fund to the department of children, families, 
107.7   and learning for the fiscal years indicated.  
107.8      Subd. 2.  [EXAMINATION FEES; TEACHER TRAINING AND SUPPORT 
107.9   PROGRAMS.] (a) For students' advanced placement and 
107.10  international baccalaureate examination fees under Minnesota 
107.11  Statutes 2000, section 120B.13, subdivision 3, and the training 
107.12  and related costs for teachers and other interested educators 
107.13  under Minnesota Statutes 2000, section 120B.13, subdivision 1: 
107.14       $2,000,000     .....     2002 
107.15       $2,000,000     .....     2003 
107.16     Any funds unexpended in the first year do not cancel and 
107.17  are available in the second year. 
107.18     (b) The advanced placement program shall receive 75 percent 
107.19  of the appropriation each year and the international 
107.20  baccalaureate program shall receive 25 percent of the 
107.21  appropriation each year.  The department, in consultation with 
107.22  representatives of the advanced placement and international 
107.23  baccalaureate programs selected by the advanced placement 
107.24  advisory council and IBMN, respectively, shall determine the 
107.25  amounts of the expenditures each year for examination fees and 
107.26  training and support programs for each program. 
107.27     (c) Notwithstanding Minnesota Statutes, section 120B.13, 
107.28  subdivision 1, $375,000 each year is for teachers to attend 
107.29  subject matter summer training programs and follow-up support 
107.30  workshops approved by the advanced placement or international 
107.31  baccalaureate programs.  The amount of the subsidy for each 
107.32  teacher attending an advanced placement or international 
107.33  baccalaureate summer training program or workshop shall be the 
107.34  same.  The commissioner shall determine the payment process and 
107.35  the amount of the subsidy. 
107.36     (d) Notwithstanding Minnesota Statutes, section 120B.13, 
108.1   subdivision 3, in each year to the extent of available 
108.2   appropriations, the commissioner shall pay all examination fees 
108.3   for all students sitting for an advanced placement examination, 
108.4   international baccalaureate examination, or both.  If this 
108.5   amount is not adequate, the commissioner may pay less than the 
108.6   full examination fee. 
108.7      Any balance in the first year does not cancel but is 
108.8   available in the second year. 
108.9      Subd. 3.  [STATEWIDE TESTING.] For administering tests 
108.10  under Minnesota Statutes, sections 120B.02; 120B.30, subdivision 
108.11  1; and 120B.35: 
108.12       $6,500,000     .....     2002 
108.13       $6,500,000     .....     2003 
108.14     Any balance in the first year does not cancel but is 
108.15  available in the second year. 
108.16     Subd. 4.  [CHARTER SCHOOL BUILDING LEASE AID.] For building 
108.17  lease aid under Minnesota Statutes, section 124D.11, subdivision 
108.18  4: 
108.19       $16,554,000    .....     2002 
108.20       $25,176,000    .....     2003 
108.21     The 2002 appropriation includes $1,114,000 for 2001 and 
108.22  $15,440,000 for 2002. 
108.23     The 2003 appropriation includes $1,715,000 for 2002 and 
108.24  $23,461,000 for 2003.  
108.25     Subd. 5.  [CHARTER SCHOOL STARTUP GRANTS.] For charter 
108.26  school startup cost aid under Minnesota Statutes, section 
108.27  124D.11: 
108.28       $2,738,000     .....     2002 
108.29       $3,143,000     .....     2003 
108.30     The 2002 appropriation includes $273,000 for 2001 and 
108.31  $2,465,000 for 2002.  
108.32     The 2003 appropriation includes $274,000 for 2002 and 
108.33  $2,869,000 for 2003. 
108.34     Subd. 6.  [CHARTER SCHOOL INTEGRATION AID.] For grants to 
108.35  charter schools to promote integration and desegregation under 
108.36  Minnesota Statutes, section 124D.11, subdivision 6, paragraph 
109.1   (e): 
109.2        $45,000        .....     2002 
109.3        $50,000        .....     2003 
109.4      The 2002 appropriation includes $0 for 2001 and $45,000 for 
109.5   2002.  
109.6      The 2003 appropriation includes $5,000 for 2002 and $45,000 
109.7   for 2003. 
109.8      Any balance in the first year does not cancel but is 
109.9   available in the second year. 
109.10     Subd. 7.  [BEST PRACTICES SEMINARS.] For best practices 
109.11  graduation rule seminars and other professional development 
109.12  capacity building activities that assure proficiency in teaching 
109.13  and implementation of graduation rule standards: 
109.14       $5,260,000     .....     2002
109.15       $3,480,000     .....     2003
109.16     $1,000,000 in fiscal year 2002 is for arts via the Internet 
109.17  collaborative project between the Walker Art Center and the 
109.18  Minneapolis Institute of Arts; $500,000 each year is for best 
109.19  practices grants to intermediate school districts Nos. 287, 916, 
109.20  and 917 to train teachers of special needs students under Laws 
109.21  1998, chapter 398, article 5, section 42; and $250,000 each year 
109.22  is for a grant to A Chance to Grow/New Visions for the Minnesota 
109.23  Learning Resource Center.  
109.24     The commissioner shall consider a curriculum development 
109.25  grant, consistent with the graduation rule, to develop curricula 
109.26  in the area of natural sciences including botany, horticulture, 
109.27  and zoology.  The grant shall also be used to provide 
109.28  instructional materials on the Internet.  The commissioner shall 
109.29  consider best practices grants to districts for developing 
109.30  gifted and talented services that are integrated with the 
109.31  state's graduation standards.  The commissioner shall consider a 
109.32  grant to independent school district No. 621, Mounds View, for a 
109.33  pilot project to establish a parallel block schedule strategy in 
109.34  grades 1 through 3. 
109.35     Subd. 8.  [INTEGRATION AID.] For integration aid: 
109.36       $65,478,000    .....     2002 
110.1        $51,996,000    .....     2003 
110.2      The 2002 appropriation includes $5,729,000 for 2001 and 
110.3   $59,749,000 for 2002. 
110.4      The 2003 appropriation includes $6,639,000 for 2002 and 
110.5   $45,357,000 for 2003.  
110.6      Subd. 9.  [INTEGRATION PROGRAMS.] For minority fellowship 
110.7   grants under Laws 1994, chapter 647, article 8, section 29; 
110.8   minority teacher incentives under Minnesota Statutes, section 
110.9   122A.65; teachers of color program grants under Minnesota 
110.10  Statutes, section 122A.64; and cultural exchange grants under 
110.11  Minnesota Statutes, section 124D.89: 
110.12       $1,000,000     .....     2002
110.13       $1,000,000     .....     2003
110.14     In awarding teachers of color program grants, the 
110.15  commissioner must give priority to districts that have students 
110.16  who are in the process of currently completing their academic 
110.17  program. 
110.18     Any balance in the first year does not cancel but is 
110.19  available in the second year. 
110.20     Subd. 10.  [MAGNET SCHOOL GRANTS.] For magnet school and 
110.21  program grants under Minnesota Statutes, section 124D.871: 
110.22       $750,000       .....     2002 
110.23       $750,000       .....     2003 
110.24     $100,000 in fiscal year 2002 is to extend the Ely magnet 
110.25  school grant approved under Laws 2000, chapter 489, article 7, 
110.26  section 15, subdivision 5. 
110.27     Subd. 11.  [MAGNET SCHOOL STARTUP AID.] For magnet school 
110.28  startup aid under Minnesota Statutes, section 124D.88: 
110.29       $482,000       .....     2002 
110.30       $326,000       .....     2003 
110.31     The 2002 appropriation includes $25,000 for 2001 and 
110.32  $457,000 for 2002.  
110.33     The 2003 appropriation includes $51,000 for 2002 and 
110.34  $275,000 for 2003. 
110.35     Subd. 12.  [INTERDISTRICT DESEGREGATION OR INTEGRATION 
110.36  TRANSPORTATION GRANTS.] For interdistrict desegregation or 
111.1   integration transportation grants under Minnesota Statutes, 
111.2   section 124D.87: 
111.3        $2,932,000     .....     2003
111.4      Subd. 13.  [AMERICAN INDIAN LANGUAGE AND CULTURE PROGRAMS.] 
111.5   For grants to American Indian language and culture education 
111.6   programs under Minnesota Statutes 2000, section 124D.81, 
111.7   subdivision 1: 
111.8        $73,000        .....     2002
111.9      The 2002 appropriation includes $73,000 for 2001 and $0 for 
111.10  2002. 
111.11     Subd. 14.  [AMERICAN INDIAN EDUCATION.] For certain 
111.12  American Indian education programs in school districts: 
111.13       $17,000        .....     2002
111.14     The 2002 appropriation includes $17,000 for 2001 and $0 for 
111.15  2002. 
111.16     Subd. 15.  [SUCCESS FOR THE FUTURE.] For American Indian 
111.17  success for the future grants according to Minnesota Statutes, 
111.18  section 124D.81: 
111.19       $2,047,000     .....     2002
111.20       $2,137,000     .....     2003
111.21     The 2002 appropriation includes $0 for 2001 and $2,047,000 
111.22  for 2002. 
111.23     The 2003 appropriation includes $255,000 for 2002 and 
111.24  $2,132,000 for 2003. 
111.25     Subd. 16.  [AMERICAN INDIAN SCHOLARSHIPS.] For American 
111.26  Indian scholarships under Minnesota Statutes, section 124D.84: 
111.27       $1,875,000     .....     2002 
111.28       $1,875,000     .....     2003 
111.29     Any balance in the first year does not cancel but is 
111.30  available in the second year. 
111.31     Subd. 17.  [AMERICAN INDIAN TEACHER PREPARATION GRANTS.] (a)
111.32  For joint grants to assist American Indian people to become 
111.33  teachers under Minnesota Statutes, section 122A.63: 
111.34       $190,000       .....     2002 
111.35       $190,000       .....     2003 
111.36     (b) Up to $70,000 each year is for a joint grant to the 
112.1   University of Minnesota at Duluth and the Duluth school district.
112.2      (c) Up to $40,000 each year is for a joint grant to each of 
112.3   the following: 
112.4      (1) Bemidji state university and the Red Lake school 
112.5   district; 
112.6      (2) Moorhead state university and a school district located 
112.7   within the White Earth reservation; and 
112.8      (3) Augsburg college, independent school district No. 625, 
112.9   St. Paul, and the Minneapolis school district. 
112.10     (d) Money not used for students at one location may be 
112.11  transferred for use at another location. 
112.12     (e) Any balance in the first year does not cancel but is 
112.13  available in the second year. 
112.14     Subd. 18.  [TRIBAL CONTRACT SCHOOLS.] For tribal contract 
112.15  school aid under Minnesota Statutes, section 124D.83: 
112.16       $2,520,000     .....     2002
112.17       $2,767,000     .....     2003
112.18     The 2002 appropriation includes $192,000 for 2001 and 
112.19  $2,328,000 for 2002. 
112.20     The 2003 appropriation includes $258,000 for 2002 and 
112.21  $2,509,000 for 2003. 
112.22     Subd. 19.  [EARLY CHILDHOOD PROGRAMS AT TRIBAL 
112.23  SCHOOLS.] For early childhood family education programs at 
112.24  tribal contract schools: 
112.25       $68,000        .....     2002 
112.26       $68,000        .....     2003 
112.27     Subd. 20.  [FIRST GRADE PREPAREDNESS.] For first grade 
112.28  preparedness grants under Minnesota Statutes, section 124D.081: 
112.29       $7,150,000     .....     2002 
112.30       $7,250,000     .....     2003
112.31     Subd. 21.  [SECONDARY VOCATIONAL EDUCATION AID.] For 
112.32  secondary vocational education aid under Minnesota Statutes, 
112.33  section 124D.453: 
112.34       $1,242,000     .....     2002 
112.35     The 2002 appropriation includes $1,242,000 for 2001 and $0 
112.36  for 2002.  
113.1      Subd. 22.  [YOUTHWORKS PROGRAM.] For youthworks programs 
113.2   under Minnesota Statutes, sections 124D.37 to 124D.45: 
113.3        $1,788,000     .....     2002 
113.4        $1,788,000     .....     2003 
113.5      A grantee organization may provide health and child care 
113.6   coverage to the dependents of each participant enrolled in a 
113.7   full-time youth works program to the extent such coverage is not 
113.8   otherwise available. 
113.9      Up to $250,000 each year may be used for the jobs for 
113.10  America graduates program. 
113.11     Any balance in the first year does not cancel but is 
113.12  available in the second year. 
113.13     Subd. 23.  [EDUCATION AND EMPLOYMENT TRANSITIONS PROGRAM 
113.14  GRANTS.] For education and employment transitions programming 
113.15  under Minnesota Statutes, section 124D.46: 
113.16       $775,000       .....     2002 
113.17       $775,000       .....     2003 
113.18     $250,000 each year is for ISEEK. 
113.19     $450,000 each year is for youth apprenticeship grants and 
113.20  to conduct a high school follow-up survey to include first, 
113.21  third, and sixth year graduates of Minnesota schools. 
113.22     $75,000 each year is for grants to school districts for the 
113.23  junior achievement program. 
113.24     Any balance in the first year does not cancel but is 
113.25  available in the second year. 
113.26     Subd. 24.  [LEARN AND EARN GRADUATION ACHIEVEMENT PROGRAM.] 
113.27  For the learn and earn graduation achievement program according 
113.28  to Minnesota Statutes, section 124D.32: 
113.29       $725,000       .....     2002 
113.30     Any balance in the first year does not cancel but is 
113.31  available in the second year. 
113.32     Subd. 25.  [SCHOOL EVALUATION SERVICES.] For contracting 
113.33  with an independent school evaluation services contractor to 
113.34  evaluate and report on school districts' academic and financial 
113.35  performance under section 64:  
113.36       $2,500,000     .....     2002 
114.1      Subd. 26.  [MINNESOTA STUDENT ORGANIZATION FOUNDATION.] For 
114.2   the Minnesota student organization foundation under Minnesota 
114.3   Statutes, section 124D.34: 
114.4          $625,000     .....     2002 
114.5          $625,000     .....     2003 
114.6      Any balance in the first year does not cancel but is 
114.7   available in the second year. 
114.8      Subd. 27.  [READING COMPETENCY GRANTS.] For reading 
114.9   competency grants under Minnesota Statutes, section 120B.12: 
114.10         $100,000     .....     2002 
114.11         $100,000     .....     2003 
114.12     The commissioner must award one grant to the St. Croix 
114.13  river education district by July 1, 2001. 
114.14     Subd. 28.  [LABORATORY SCHOOL; INNOVATIVE TEACHING 
114.15  TECHNIQUES.] For a grant to independent school district No. 482, 
114.16  Little Falls, for a laboratory school for innovative teaching 
114.17  techniques in the Randall area: 
114.18       $10,000        .....     2002 
114.19     Subd. 29.  [ALTERNATIVE TEACHER COMPENSATION.] For 
114.20  alternative teacher compensation established under Minnesota 
114.21  Statutes, sections 124D.945 to 124D.947: 
114.22       $4,000,000     .....     2002 
114.23       $4,000,000     .....     2003 
114.24     If the appropriations under this subdivision are 
114.25  insufficient to fund all program participants, the participants 
114.26  shall be prioritized by the commissioner by the date of receipt 
114.27  of the application.  A participant may receive less than the 
114.28  maximum per pupil amount available under Minnesota Statutes, 
114.29  section 124D.945, subdivision 3. 
114.30     Any balance in the first year does not cancel but is 
114.31  available in the second year. 
114.32     Subd. 30.  [COLLABORATIVE URBAN EDUCATOR RECRUITMENT AND 
114.33  TRAINING PROGRAMS.] For grants to collaborative urban educator 
114.34  recruitment and training programs: 
114.35       $1,300,000     .....     2002
114.36       $1,300,000     .....     2003
115.1      $500,000 each year is for the Southeast Asian teacher 
115.2   program at Concordia University, St. Paul; $400,000 each year is 
115.3   for the collaborative urban educator program at the University 
115.4   of St. Thomas; and $400,000 each year is for the center for 
115.5   excellence in urban teaching at Hamline University.  Grant 
115.6   recipients must collaborate with urban and nonurban school 
115.7   districts. 
115.8      Any balance in the first year does not cancel but is 
115.9   available in the second year.  This appropriation is one-time 
115.10  only. 
115.11     Subd. 31.  [LIMITED ENGLISH PROFICIENCY STUDY.] For a study 
115.12  of limited English proficiency programs: 
115.13       $20,000     .....     2002 
115.14     The department of children, families, and learning must 
115.15  study current practices and program models as well as best 
115.16  practice research into effective methodology for instructing 
115.17  students with limited English proficiency so that they may 
115.18  participate fully in English language classroom content and 
115.19  develop appropriate assessments and instruments to determine the 
115.20  effectiveness of programs for students with limited English 
115.21  proficiency.  The instruments must address the effectiveness of 
115.22  the curriculum being taught, the instruction being provided, the 
115.23  professional development provided, the manner in which student 
115.24  progress in acquiring English language proficiency is assessed, 
115.25  as well as other factors pertinent to the instruction of 
115.26  students with limited English proficiency.  The study shall 
115.27  include best practice research-based methods of instructing 
115.28  students who are not literate in their native language.  The 
115.29  department shall make the results of the study as well as the 
115.30  instruments available to teachers and other educators involved 
115.31  in the design and implementation of programs for students with 
115.32  limited English proficiency and promote the use of best 
115.33  practices described in the study.  The department must submit 
115.34  its report to the education committees of the legislature by 
115.35  February 15, 2002.  This appropriation is one-time only. 
115.36     Sec. 78.  [REPEALER.] 
116.1      (a) Minnesota Statutes 2000, section 124D.85, is repealed. 
116.2      (b) Minnesota Statutes 2000, section 124D.32, is repealed, 
116.3   effective July 1, 2002. 
116.4      (c) Minnesota Statutes 2000, sections 124D.128, subdivision 
116.5   7, and 135A.081, are repealed effective the day following final 
116.6   enactment. 
116.7      (d) Minnesota Rules, part 3501.0280, subpart 3, is repealed.
116.8                              ARTICLE 3
116.9                           SPECIAL PROGRAMS
116.10     Section 1.  Minnesota Statutes 2000, section 121A.41, 
116.11  subdivision 10, is amended to read: 
116.12     Subd. 10.  [SUSPENSION.] "Suspension" means an action by 
116.13  the school administration, under rules promulgated by the school 
116.14  board, prohibiting a pupil from attending school for a period of 
116.15  no more than ten school days.  If a suspension is longer than 
116.16  five days, the suspending administrator must provide the 
116.17  superintendent with a reason for the longer suspension.  This 
116.18  definition does not apply to dismissal from school for one 
116.19  school day or less, except as provided in federal law for a 
116.20  student with a disability.  Each suspension action may include a 
116.21  readmission plan.  The readmission plan shall include, where 
116.22  appropriate, a provision for implementing alternative 
116.23  educational services upon readmission and may not be used to 
116.24  extend the current suspension.  Consistent with section 125A.09, 
116.25  subdivision 3, the readmission plan must not obligate a parent 
116.26  to provide a sympathomimetic medication for the parent's child 
116.27  as a condition of readmission.  The school administration may 
116.28  not impose consecutive suspensions against the same pupil for 
116.29  the same course of conduct, or incident of misconduct, except 
116.30  where the pupil will create an immediate and substantial danger 
116.31  to self or to surrounding persons or property, or where the 
116.32  district is in the process of initiating an expulsion, in which 
116.33  case the school administration may extend the suspension to a 
116.34  total of 15 days.  In the case of a student with a disability, 
116.35  the student's individual education plan team must meet 
116.36  immediately but not more than ten school days after the date on 
117.1   which the decision to remove the student from the student's 
117.2   current education placement is made.  The individual education 
117.3   plan team shall at that meeting:  conduct a review of the 
117.4   relationship between the child's disability and the behavior 
117.5   subject to disciplinary action; and determine the 
117.6   appropriateness of the child's education plan. 
117.7      The requirements of the individual education plan team 
117.8   meeting apply when: 
117.9      (1) the parent requests a meeting; 
117.10     (2) the student is removed from the student's current 
117.11  placement for five or more consecutive days; or 
117.12     (3) the student's total days of removal from the student's 
117.13  placement during the school year exceed ten cumulative days in a 
117.14  school year.  The school administration shall implement 
117.15  alternative educational services when the suspension exceeds 
117.16  five days.  A separate administrative conference is required for 
117.17  each period of suspension. 
117.18     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
117.19  following final enactment.  
117.20     Sec. 2.  Minnesota Statutes 2000, section 122A.31, is 
117.21  amended to read: 
117.22     122A.31 [AMERICAN SIGN LANGUAGE/ENGLISH INTERPRETERS.] 
117.23     Subdivision 1.  [REQUIREMENTS FOR AMERICAN SIGN 
117.24  LANGUAGE/ENGLISH INTERPRETERS.] (a) In addition to any other 
117.25  requirements that a school district establishes, any person 
117.26  employed to provide American sign language/English interpreting 
117.27  or sign transliterating services on a full-time or part-time 
117.28  basis for a school district after July 1, 2000, must: 
117.29     (1) hold current interpreter and transliterator 
117.30  certificates awarded by the Registry of Interpreters for the 
117.31  Deaf (RID), or the general level interpreter proficiency 
117.32  certificate awarded by the National Association of the Deaf 
117.33  (NAD), or a comparable state certification from the commissioner 
117.34  of children, families, and learning; and 
117.35     (2) satisfactorily complete an interpreter/transliterator 
117.36  training program affiliated with an accredited educational 
118.1   institution. 
118.2      (b) To provide American sign language/English interpreting 
118.3   or transliterating services on a full-time or part-time basis, a 
118.4   person employed in a school district during the 1999-2000 school 
118.5   year must only comply with paragraph (a), clause (1).  The 
118.6   commissioner shall grant a nonrenewable, one-year provisional 
118.7   certificate to individuals who have not attained a current 
118.8   applicable transliterator certificate pursuant to paragraph (a), 
118.9   clause (1).  During the one-year provisional period, the 
118.10  interpreter/transliterator must develop and implement an 
118.11  education plan in collaboration with a mentor under paragraph 
118.12  (d).  This paragraph shall expire on June 30, 2001. 
118.13     (c) New graduates of an interpreter/transliterator program 
118.14  affiliated with an accredited education institution shall be 
118.15  granted a two-year provisional certificate by the commissioner.  
118.16  During the two-year provisional period, the 
118.17  interpreter/transliterator must develop and implement an 
118.18  education plan in collaboration with a mentor under paragraph 
118.19  (d) (c).  This paragraph applies to spring semester 2000 
118.20  graduates and thereafter. 
118.21     (d) (c) A mentor of a provisionally certified 
118.22  interpreter/transliterator must be an interpreter/transliterator 
118.23  who has either NAD level IV or V certification or RID certified 
118.24  interpreter and certified transliterator certification and have 
118.25  at least three years interpreting/transliterating experience in 
118.26  any educational setting.  The mentor, in collaboration with the 
118.27  provisionally certified interpreter/transliterator, shall 
118.28  develop and implement an education plan designed to meet the 
118.29  requirements of paragraph (a), clause (1), and include a weekly 
118.30  on-site mentoring process. 
118.31     (d) Consistent with the requirements of this paragraph, a 
118.32  person holding a provisional certificate may apply to the 
118.33  commissioner for one time-limited extension.  The commissioner, 
118.34  in consultation with the commission serving deaf and 
118.35  hard-of-hearing people, must grant the person a time-limited 
118.36  extension of the provisional certificate based on the following 
119.1   documentation: 
119.2      (1) letters of support from the person's mentor, a parent 
119.3   of a pupil the person serves, the special education director of 
119.4   the district in which the person is employed, and a 
119.5   representative from the regional service center of the deaf and 
119.6   hard-of-hearing; 
119.7      (2) records of the person's formal education, training, 
119.8   experience, and progress on the person's education plan; and 
119.9      (3) an explanation of why the extension is needed. 
119.10     As a condition of receiving the extension, the person must 
119.11  comply with a plan and the accompanying time line for meeting 
119.12  the requirements of this subdivision.  A committee composed of 
119.13  the director of the Minnesota resource center serving deaf and 
119.14  hard-of-hearing, or the director's designee, a representative of 
119.15  the Minnesota association of deaf citizens, a representative of 
119.16  the Minnesota registry of interpreters of the deaf, and other 
119.17  appropriate persons selected by the commissioner must develop 
119.18  the plan and time line for the person receiving the extension. 
119.19     (e) A school district may not employ only an 
119.20  interpreter/transliterator who has not been certified under 
119.21  paragraph (a), or (b), or (c) for whom a time-limited extension 
119.22  has been granted under paragraph (d). 
119.23     Subd. 2.  [ORAL OR CUED SPEECH TRANSLITERATORS.] (a) In 
119.24  addition to any other requirements that a school district 
119.25  establishes, any person employed to provide oral transliterating 
119.26  or cued speech transliterating services on a full-time or 
119.27  part-time basis for a school district after July 1, 2000, must 
119.28  hold a current applicable transliterator certificate awarded by 
119.29  the national certifying association or comparable state 
119.30  certification from the commissioner of children, families, and 
119.31  learning. 
119.32     (b) To provide oral or cued speech transliterator services 
119.33  on a full-time or part-time basis, a person employed in a school 
119.34  district must comply with paragraph (a).  The commissioner shall 
119.35  grant a nonrenewable, two-year certificate to a school district 
119.36  on behalf of a person who has not yet attained a current 
120.1   applicable transliterator certificate under paragraph (a).  A 
120.2   person for whom a nonrenewable, two-year certificate is issued 
120.3   must work under the direction of a licensed teacher who is 
120.4   skilled in language development of individuals who are deaf or 
120.5   hard-of-hearing.  A person for whom a nonrenewable, two-year 
120.6   certificate is issued also must enroll in a state-approved 
120.7   training program and demonstrate progress towards the 
120.8   certification required under paragraph (a) sufficient for the 
120.9   person to be certified at the end of the two-year period. 
120.10     (c) Consistent with the requirements of this paragraph, a 
120.11  person holding a provisional certificate may apply to the 
120.12  commissioner for one time-limited extension.  The commissioner, 
120.13  in consultation with the commission serving deaf and 
120.14  hard-of-hearing people, must grant the person a time-limited 
120.15  extension of the provisional certificate based on the following 
120.16  documentation: 
120.17     (1) letters of support from the person's mentor, a parent 
120.18  of a pupil the person serves, the special education director of 
120.19  the district in which the person is employed, and a 
120.20  representative from the regional service center of the deaf and 
120.21  hard-of-hearing; 
120.22     (2) records of the person's formal education, training, 
120.23  experience, and progress on the person's education plan; and 
120.24     (3) an explanation of why the extension is needed. 
120.25     As a condition of receiving the extension, the person must 
120.26  comply with a plan and the accompanying time line for meeting 
120.27  the requirements of this subdivision.  A committee composed of 
120.28  the director of the Minnesota resource center serving deaf and 
120.29  hard-of-hearing, or the director's designee, a representative of 
120.30  the Minnesota association of deaf citizens, a representative of 
120.31  the Minnesota registry of interpreters of the deaf, and other 
120.32  appropriate persons selected by the commissioner must develop 
120.33  the plan and time line for the person receiving the extension. 
120.34     Subd. 3.  [QUALIFIED INTERPRETERS.] The department of 
120.35  children, families, and learning and the resource center:  deaf 
120.36  and hard of hearing shall work with existing 
121.1   interpreter/transliterator training programs, other 
121.2   training/educational institutions, and the regional service 
121.3   centers to ensure that ongoing staff development training for 
121.4   educational interpreters/transliterators is provided throughout 
121.5   the state. 
121.6      Subd. 4.  [REIMBURSEMENT.] (a) For purposes of revenue 
121.7   under section 125A.78, the department of children, families, and 
121.8   learning must only reimburse school districts for the services 
121.9   of those interpreters/transliterators who satisfy the standards 
121.10  of competency under this section.  
121.11     (b) Notwithstanding paragraph (a), a district shall be 
121.12  reimbursed for the services of interpreters with a nonrenewable 
121.13  provisional certificate and, interpreters/transliterators 
121.14  employed to mentor the provisional certified interpreters, and 
121.15  persons for whom a time-limited extension has been granted under 
121.16  subdivision 1, paragraph (d), or subdivision 2, paragraph (c). 
121.17     [EFFECTIVE DATE.] This section is effective for the 
121.18  2001-2002 school year and later. 
121.19     Sec. 3.  Minnesota Statutes 2000, section 122A.61, 
121.20  subdivision 1, is amended to read: 
121.21     Subdivision 1.  [STAFF DEVELOPMENT REVENUE.] A district is 
121.22  required to reserve an amount equal to at least two percent of 
121.23  the basic revenue under section 126C.10, subdivision 2, for 
121.24  in-service education for programs under section 120B.22, 
121.25  subdivision 2, for staff development plans, including plans for 
121.26  challenging instructional activities and experiences under 
121.27  section 122A.60, and for curriculum development and programs, 
121.28  other in-service education, teachers' workshops, teacher 
121.29  conferences, the cost of substitute teachers staff development 
121.30  purposes, preservice and in-service education for special 
121.31  education professionals and paraprofessionals, and other related 
121.32  costs for staff development efforts.  A district may annually 
121.33  waive the requirement to reserve their basic revenue under this 
121.34  section if a majority vote of the licensed teachers in the 
121.35  district and a majority vote of the school board agree to a 
121.36  resolution to waive the requirement.  A district in statutory 
122.1   operating debt is exempt from reserving basic revenue according 
122.2   to this section.  Districts may expend an additional amount of 
122.3   unreserved revenue for staff development based on their needs.  
122.4   With the exception of amounts reserved for staff development 
122.5   from revenues allocated directly to school sites, the board must 
122.6   initially allocate 50 percent of the reserved revenue to each 
122.7   school site in the district on a per teacher basis, which must 
122.8   be retained by the school site until used.  The board may retain 
122.9   25 percent to be used for district wide staff development 
122.10  efforts.  The remaining 25 percent of the revenue must be used 
122.11  to make grants to school sites for best practices methods.  A 
122.12  grant may be used for any purpose authorized under section 
122.13  120B.22, subdivision 2, 122A.60, or for the costs of curriculum 
122.14  development and programs, other in-service education, teachers' 
122.15  workshops, teacher conferences, substitute teachers for staff 
122.16  development purposes, and other staff development efforts, and 
122.17  determined by the site professional development team.  The site 
122.18  professional development team must demonstrate to the school 
122.19  board the extent to which staff at the site have met the 
122.20  outcomes of the program.  The board may withhold a portion of 
122.21  initial allocation of revenue if the staff development outcomes 
122.22  are not being met. 
122.23     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
122.24  following final enactment. 
122.25     Sec. 4.  Minnesota Statutes 2000, section 124D.65, 
122.26  subdivision 5, is amended to read: 
122.27     Subd. 5.  [SCHOOL DISTRICT LEP REVENUE.] (a) A school 
122.28  district's limited English proficiency programs revenue for 
122.29  fiscal year 2000 equals the state total limited English 
122.30  proficiency programs revenue, minus the amount determined under 
122.31  paragraph (b), times the ratio of the district's adjusted 
122.32  limited English proficiency programs base revenue to the state 
122.33  total adjusted limited English proficiency programs base revenue.
122.34     (b) Notwithstanding paragraph (a), if the limited English 
122.35  proficiency programs base revenue for a district equals zero, 
122.36  the limited English proficiency programs revenue equals the sum 
123.1   of the following amounts, computed using current year data: 
123.2      (1) 68 percent of the salary of one full-time equivalent 
123.3   teacher for each 40 pupils of limited English proficiency 
123.4   enrolled, or 68 percent of the salary of one-half of a full-time 
123.5   teacher in a district with 20 or fewer pupils of limited English 
123.6   proficiency enrolled; and 
123.7      (2) for supplies and equipment purchased or rented for use 
123.8   in the instruction of pupils of limited English proficiency an 
123.9   amount equal to 47 percent of the sum actually spent by the 
123.10  district but not to exceed an average of $47 in any one school 
123.11  year for each pupil of limited English proficiency receiving 
123.12  instruction. 
123.13     (c) A district's limited English proficiency programs 
123.14  revenue for fiscal year 2001 and later equals the product of 
123.15  $584 times the greater of 20 or the number of adjusted marginal 
123.16  cost pupils of limited English proficiency enrolled in the 
123.17  district during the current fiscal year. 
123.18     (d) A pupil ceases to generate state limited English 
123.19  proficiency aid in the school year following the school year in 
123.20  which the pupil attains the state cut-off score on a 
123.21  commissioner-provided assessment that measures the pupil's 
123.22  emerging academic English. 
123.23     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2002. 
123.24     Sec. 5.  Minnesota Statutes 2000, section 125A.023, 
123.25  subdivision 4, is amended to read: 
123.26     Subd. 4.  [STATE INTERAGENCY COMMITTEE.] (a) The governor 
123.27  shall convene an 18-member a 19-member interagency committee to 
123.28  develop and implement a coordinated, multidisciplinary, 
123.29  interagency intervention service system for children ages three 
123.30  to 21 with disabilities.  The commissioners of commerce, 
123.31  children, families, and learning, health, human rights, human 
123.32  services, economic security, and corrections shall each appoint 
123.33  two committee members from their departments; the association of 
123.34  Minnesota counties shall appoint two county representatives, one 
123.35  of whom must be an elected official, as committee members; and 
123.36  the Minnesota school boards association, the Minnesota 
124.1   administrators of special education, and the school nurse 
124.2   association of Minnesota shall each appoint one committee 
124.3   member.  The committee shall select a chair from among its 
124.4   members. 
124.5      (b) The committee shall: 
124.6      (1) identify and assist in removing state and federal 
124.7   barriers to local coordination of services provided to children 
124.8   with disabilities; 
124.9      (2) identify adequate, equitable, and flexible funding 
124.10  sources to streamline these services; 
124.11     (3) develop guidelines for implementing policies that 
124.12  ensure a comprehensive and coordinated system of all state and 
124.13  local agency services, including multidisciplinary assessment 
124.14  practices for children with disabilities ages three to 21; 
124.15     (4) develop, consistent with federal law, a standardized 
124.16  written plan for providing services to a child with 
124.17  disabilities; 
124.18     (5) identify how current systems for dispute resolution can 
124.19  be coordinated and develop guidelines for that coordination; 
124.20     (6) develop an evaluation process to measure the success of 
124.21  state and local interagency efforts in improving the quality and 
124.22  coordination of services to children with disabilities ages 
124.23  three to 21; 
124.24     (7) develop guidelines to assist the governing boards of 
124.25  the interagency early intervention committees in carrying out 
124.26  the duties assigned in section 125A.027, subdivision 1, 
124.27  paragraph (b); and 
124.28     (8) carry out other duties necessary to develop and 
124.29  implement within communities a coordinated, multidisciplinary, 
124.30  interagency intervention service system for children with 
124.31  disabilities. 
124.32     (c) The committee shall consult on an ongoing basis with 
124.33  the state education advisory committee for special education and 
124.34  the governor's interagency coordinating council in carrying out 
124.35  its duties under this section, including assisting the governing 
124.36  boards of the interagency early intervention committees. 
125.1      Sec. 6.  Minnesota Statutes 2000, section 125A.027, is 
125.2   amended by adding a subdivision to read: 
125.3      Subd. 4.  [RESPONSIBILITIES OF SCHOOL AND COUNTY 
125.4   BOARDS.] (a) It is the joint responsibility of school and county 
125.5   boards to coordinate, provide, and pay for appropriate services, 
125.6   and to facilitate payment for services from public and private 
125.7   sources.  Appropriate service for children eligible under 
125.8   section 125A.02 and receiving service from two or more public 
125.9   agencies of which one is the public school must be determined in 
125.10  consultation with parents, physicians, and other education, 
125.11  medical health, and human services providers.  The services 
125.12  provided must be in conformity with an Individual Interagency 
125.13  Intervention Plan (IIIP) for each eligible child ages 3 to 21. 
125.14     (b) Appropriate services include those services listed on a 
125.15  child's IIIP.  These services are those that are required to be 
125.16  documented on a plan under federal and state law or rule. 
125.17     (c) School and county boards shall coordinate interagency 
125.18  services.  Service responsibilities for eligible children, ages 
125.19  3 to 21, shall be established in interagency agreements or joint 
125.20  powers board agreements.  In addition, interagency agreements or 
125.21  joint powers board agreements shall be developed to establish 
125.22  agency responsibility that assures that coordinated interagency 
125.23  services are coordinated, provided, and paid for, and that 
125.24  payment is facilitated from public and private sources.  School 
125.25  boards must provide, pay for, and facilitate payment for special 
125.26  education services as required under sections 125A.05 and 
125.27  125A.06.  County boards must provide, pay for, and facilitate 
125.28  payment for those programs over which they have service and 
125.29  fiscal responsibility as referenced in section 125A.023, 
125.30  subdivision 3, paragraph (d), clause (1). 
125.31     Sec. 7.  Minnesota Statutes 2000, section 125A.08, is 
125.32  amended to read: 
125.33     125A.08 [SCHOOL DISTRICT OBLIGATIONS.] 
125.34     (a) As defined in this section, every district must ensure 
125.35  the following: 
125.36     (1) all students with disabilities are provided the special 
126.1   instruction and services which are appropriate to their needs.  
126.2   Where the individual education plan team has determined 
126.3   appropriate goals and objectives based on the student's needs, 
126.4   including the extent to which the student can be included in the 
126.5   least restrictive environment, and where there are essentially 
126.6   equivalent and effective instruction, related services, or 
126.7   assistive technology devices available to meet the student's 
126.8   needs, cost to the district may be among the factors considered 
126.9   by the team in choosing how to provide the appropriate services, 
126.10  instruction, or devices that are to be made part of the 
126.11  student's individual education plan.  The individual education 
126.12  plan team shall consider and may authorize services covered by 
126.13  medical assistance according to section 256B.0625, subdivision 
126.14  26.  The student's needs and the special education instruction 
126.15  and services to be provided must be agreed upon through the 
126.16  development of an individual education plan.  The plan must 
126.17  address the student's need to develop skills to live and work as 
126.18  independently as possible within the community.  The individual 
126.19  education plan team must consider positive behavioral 
126.20  interventions, strategies, and supports that address behavior 
126.21  for children with attention deficit disorder or attention 
126.22  deficit hyperactivity disorder.  By grade 9 or age 14, the plan 
126.23  must address the student's needs for transition from secondary 
126.24  services to post-secondary education and training, employment, 
126.25  community participation, recreation, and leisure and home 
126.26  living.  In developing the plan, districts must inform parents 
126.27  of the full range of transitional goals and related services 
126.28  that should be considered.  The plan must include a statement of 
126.29  the needed transition services, including a statement of the 
126.30  interagency responsibilities or linkages or both before 
126.31  secondary services are concluded; 
126.32     (2) children with a disability under age five and their 
126.33  families are provided special instruction and services 
126.34  appropriate to the child's level of functioning and needs; 
126.35     (3) children with a disability and their parents or 
126.36  guardians are guaranteed procedural safeguards and the right to 
127.1   participate in decisions involving identification, assessment 
127.2   including assistive technology assessment, and educational 
127.3   placement of children with a disability; 
127.4      (4) eligibility and needs of children with a disability are 
127.5   determined by an initial assessment or reassessment, which may 
127.6   be completed using existing data under United States Code, title 
127.7   20, section 33, et seq.; 
127.8      (5) to the maximum extent appropriate, children with a 
127.9   disability, including those in public or private institutions or 
127.10  other care facilities, are educated with children who are not 
127.11  disabled, and that special classes, separate schooling, or other 
127.12  removal of children with a disability from the regular 
127.13  educational environment occurs only when and to the extent that 
127.14  the nature or severity of the disability is such that education 
127.15  in regular classes with the use of supplementary services cannot 
127.16  be achieved satisfactorily; 
127.17     (6) in accordance with recognized professional standards, 
127.18  testing and evaluation materials, and procedures used for the 
127.19  purposes of classification and placement of children with a 
127.20  disability are selected and administered so as not to be 
127.21  racially or culturally discriminatory; and 
127.22     (7) the rights of the child are protected when the parents 
127.23  or guardians are not known or not available, or the child is a 
127.24  ward of the state. 
127.25     (b) For paraprofessionals employed to work in programs for 
127.26  students with disabilities, the school board in each district 
127.27  shall ensure that: 
127.28     (1) before or immediately upon employment, each 
127.29  paraprofessional develops sufficient knowledge and skills in 
127.30  emergency procedures, building orientation, roles and 
127.31  responsibilities, confidentiality, vulnerability, and 
127.32  reportability, among other things, to begin meeting the needs of 
127.33  the students with whom the paraprofessional works; 
127.34     (2) annual training opportunities are available to enable 
127.35  the paraprofessional to continue to further develop the 
127.36  knowledge and skills that are specific to the students with whom 
128.1   the paraprofessional works, including understanding 
128.2   disabilities, following lesson plans, and implementing follow-up 
128.3   instructional procedures and activities; and 
128.4      (3) a districtwide process obligates each paraprofessional 
128.5   to work under the ongoing direction of a licensed teacher and, 
128.6   where appropriate and possible, the supervision of a school 
128.7   nurse. 
128.8      <b>[EFFECTIVE DATE.]</b> This section is effective the day 
128.9   following final enactment.  
128.10     Sec. 8.  Minnesota Statutes 2000, section 125A.09, 
128.11  subdivision 3, is amended to read: 
128.12     Subd. 3.  [INITIAL ACTION; PARENT CONSENT.] (a) The 
128.13  district must not proceed with the initial formal assessment of 
128.14  a child, the initial placement of a child in a special education 
128.15  program, or the initial provision of special education services 
128.16  for a child without the prior written consent of the child's 
128.17  parent or guardian.  The refusal of a parent or guardian to 
128.18  consent may be overridden by the decision in a hearing held 
128.19  pursuant to subdivision 6 at the district's initiative. 
128.20     (b) A parent, after consulting with health care, education, 
128.21  or other professional providers, may agree or disagree to 
128.22  provide the parent's child with sympathomimetic medications 
128.23  unless section 144.344 applies.  
128.24     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
128.25  following final enactment.  
128.26     Sec. 9.  Minnesota Statutes 2000, section 125A.11, 
128.27  subdivision 3, is amended to read: 
128.28     Subd. 3.  [AGREEMENT BETWEEN DISTRICTS TO PROVIDE SPECIAL 
128.29  INSTRUCTION AND SERVICES.] For the purposes of this section, any 
128.30  school district may enter into an agreement, upon mutually 
128.31  agreed upon terms and conditions, to provide special instruction 
128.32  and services for children with a disability.  In that event, one 
128.33  of the participating units may employ and contract with 
128.34  necessary qualified personnel to offer services in the several 
128.35  districts.  Each participating unit must reimburse the employing 
128.36  unit a proportionate amount of the actual cost of providing the 
129.1   special instruction and services, less the amount of state 
129.2   special education aid, which shall be claimed in full by the 
129.3   employing district.  
129.4      Sec. 10.  Minnesota Statutes 2000, section 125A.27, 
129.5   subdivision 15, is amended to read: 
129.6      Subd. 15.  [PART H C STATE PLAN.] "Part H C state plan" 
129.7   means the annual state plan application approved by the federal 
129.8   government under the Individuals with Disabilities Education 
129.9   Act, United States Code, title 20, section 1471 et seq. (Part H 
129.10  C, Public Law Number 102-119 105-117). 
129.11     Sec. 11.  Minnesota Statutes 2000, section 125A.515, is 
129.12  amended to read: 
129.13     125A.515 [PLACEMENT OF CHILDREN WITHOUT DISABILITIES; 
129.14  APPROVAL OF EDUCATION PROGRAM.] 
129.15     The commissioner shall approve education programs in care 
129.16  and treatment facilities for placement of children without 
129.17  disabilities, including detention centers, before being licensed 
129.18  by the department of human services or the department of 
129.19  corrections.  For the purposes of this section, care and 
129.20  treatment facilities includes adult facilities that admit 
129.21  children and provide an education program specifically designed 
129.22  for children who are residents of the facility including 
129.23  chemical dependency and other substance abuse programs, shelter 
129.24  care facilities, hospitals, correctional facilities, mental 
129.25  health programs, and detention facilities. 
129.26     Sec. 12.  Minnesota Statutes 2000, section 125A.76, 
129.27  subdivision 1, is amended to read: 
129.28     Subdivision 1.  [DEFINITIONS.] For the purposes of this 
129.29  section, the definitions in this subdivision apply. 
129.30     (a) "Base year" for fiscal year 1998 and later fiscal years 
129.31  means the second fiscal year preceding the fiscal year for which 
129.32  aid will be paid. 
129.33     (b) "Basic revenue" has the meaning given it in section 
129.34  126C.10, subdivision 2.  For the purposes of computing basic 
129.35  revenue pursuant to this section, each child with a disability 
129.36  shall be counted as prescribed in section 126C.05, subdivision 1.
130.1      (c) "Essential personnel" means teachers, cultural 
130.2   liaisons, related services, and support services staff providing 
130.3   direct services to students.  Essential personnel may also 
130.4   include special education paraprofessionals or clericals 
130.5   providing support to teachers and students by preparing 
130.6   paperwork and making arrangements related to special education 
130.7   compliance requirements, including parent meetings and 
130.8   individual education plans. 
130.9      (d) "Average daily membership" has the meaning given it in 
130.10  section 126C.05. 
130.11     (e) "Program growth factor" means 1.08 for fiscal year 
130.12  2002, and 1.046 for fiscal year 2003 and later. 
130.13     Sec. 13.  Minnesota Statutes 2000, section 125A.76, 
130.14  subdivision 2, is amended to read: 
130.15     Subd. 2.  [SPECIAL EDUCATION BASE REVENUE.] (a) The special 
130.16  education base revenue equals the sum of the following amounts 
130.17  computed using base year data: 
130.18     (1) 68 percent of the salary of each essential person 
130.19  employed in the district's program for children with a 
130.20  disability during the fiscal year, not including the share of 
130.21  salaries for personnel providing health-related services counted 
130.22  in clause (8), whether the person is employed by one or more 
130.23  districts or a Minnesota correctional facility operating on a 
130.24  fee-for-service basis; 
130.25     (2) for the Minnesota state academy for the deaf or the 
130.26  Minnesota state academy for the blind, 68 percent of the salary 
130.27  of each instructional aide assigned to a child attending the 
130.28  academy, if that aide is required by the child's individual 
130.29  education plan; 
130.30     (3) for special instruction and services provided to any 
130.31  pupil by contracting with public, private, or voluntary agencies 
130.32  other than school districts, in place of special instruction and 
130.33  services provided by the district, 52 percent of the difference 
130.34  between the amount of the contract and the basic revenue of the 
130.35  district for that pupil amount of the basic revenue, as defined 
130.36  in section 126C.10, subdivision 2, special education aid, and 
131.1   any other aid earned on behalf of the child for the fraction of 
131.2   the school day the pupil receives services under the contract; 
131.3      (4) for special instruction and services provided to any 
131.4   pupil by contracting for services with public, private, or 
131.5   voluntary agencies other than school districts, that are 
131.6   supplementary to a full educational program provided by the 
131.7   school district, 52 percent of the amount of the contract for 
131.8   that pupil; 
131.9      (5) for supplies and equipment purchased or rented for use 
131.10  in the instruction of children with a disability, not including 
131.11  the portion of the expenses for supplies and equipment used to 
131.12  provide health-related services counted in clause (8), an amount 
131.13  equal to 47 percent of the sum actually expended by the 
131.14  district, or a Minnesota correctional facility operating on a 
131.15  fee-for-service basis, but not to exceed an average of $47 in 
131.16  any one school year for each child with a disability receiving 
131.17  instruction; 
131.18     (6) for fiscal years 1997 and later, special education base 
131.19  revenue shall include amounts under clauses (1) to (5) for 
131.20  special education summer programs provided during the base year 
131.21  for that fiscal year; and 
131.22     (7) for fiscal years 1999 and later, the cost of providing 
131.23  transportation services for children with disabilities under 
131.24  section 123B.92, subdivision 1, paragraph (b), clause (4). 
131.25     The department shall establish procedures through the 
131.26  uniform financial accounting and reporting system to identify 
131.27  and track all revenues generated from third-party billings as 
131.28  special education revenue at the school district level; include 
131.29  revenue generated from third-party billings as special education 
131.30  revenue in the annual cross-subsidy report; and exclude 
131.31  third-party revenue from calculation of excess cost aid to the 
131.32  districts. 
131.33     (b) If requested by a school district operating a special 
131.34  education program during the base year for less than the full 
131.35  fiscal year, or a school district in which is located a 
131.36  Minnesota correctional facility operating on a fee-for-service 
132.1   basis for less than the full fiscal year, the commissioner may 
132.2   adjust the base revenue to reflect the expenditures that would 
132.3   have occurred during the base year had the program been operated 
132.4   for the full fiscal year. 
132.5      (c) Notwithstanding paragraphs (a) and (b), the portion of 
132.6   a school district's base revenue attributable to a Minnesota 
132.7   correctional facility operating on a fee-for-service basis 
132.8   during the facility's first year of operating on a 
132.9   fee-for-service basis shall be computed using current year data. 
132.10     Sec. 14.  Minnesota Statutes 2000, section 260A.01, is 
132.11  amended to read: 
132.12     260A.01 [TRUANCY PROGRAMS AND SERVICES.] 
132.13     (a) The programs in this chapter are designed to provide a 
132.14  continuum of intervention and services to support families and 
132.15  children in keeping children in school and combating truancy and 
132.16  educational neglect.  School districts, county attorneys, and 
132.17  law enforcement may establish the programs and coordinate them 
132.18  with other community-based truancy services in order to provide 
132.19  the necessary and most effective intervention for children and 
132.20  their families.  This continuum of intervention and services 
132.21  involves progressively intrusive intervention, beginning with 
132.22  strong service-oriented efforts at the school and community 
132.23  level and involving the court's authority only when necessary. 
132.24     (b) Consistent with section 125A.09, subdivision 3, a 
132.25  parent's refusal to provide the parent's child with 
132.26  sympathomimetic medications does not constitute educational 
132.27  neglect.  
132.28     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
132.29  following final enactment.  
132.30     Sec. 15.  Minnesota Statutes 2000, section 260C.163, 
132.31  subdivision 11, is amended to read: 
132.32     Subd. 11.  [PRESUMPTIONS REGARDING TRUANCY OR EDUCATIONAL 
132.33  NEGLECT.] (a) A child's absence from school is presumed to be 
132.34  due to the parent's, guardian's, or custodian's failure to 
132.35  comply with compulsory instruction laws if the child is under 12 
132.36  years old and the school has made appropriate efforts to resolve 
133.1   the child's attendance problems; this presumption may be 
133.2   rebutted based on a showing by clear and convincing evidence 
133.3   that the child is habitually truant.  A child's absence from 
133.4   school without lawful excuse, when the child is 12 years old or 
133.5   older, is presumed to be due to the child's intent to be absent 
133.6   from school; this presumption may be rebutted based on a showing 
133.7   by clear and convincing evidence that the child's absence is due 
133.8   to the failure of the child's parent, guardian, or custodian to 
133.9   comply with compulsory instruction laws, sections 120A.22 and 
133.10  120A.24. 
133.11     (b) Consistent with section 125A.09, subdivision 3, a 
133.12  parent's refusal to provide the parent's child with 
133.13  sympathomimetic medications does not constitute educational 
133.14  neglect.  
133.15     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
133.16  following final enactment.  
133.17     Sec. 16.  Minnesota Statutes 2000, section 626.556, 
133.18  subdivision 2, is amended to read: 
133.19     Subd. 2.  [DEFINITIONS.] As used in this section, the 
133.20  following terms have the meanings given them unless the specific 
133.21  content indicates otherwise: 
133.22     (a) "Sexual abuse" means the subjection of a child by a 
133.23  person responsible for the child's care, by a person who has a 
133.24  significant relationship to the child, as defined in section 
133.25  609.341, or by a person in a position of authority, as defined 
133.26  in section 609.341, subdivision 10, to any act which constitutes 
133.27  a violation of section 609.342 (criminal sexual conduct in the 
133.28  first degree), 609.343 (criminal sexual conduct in the second 
133.29  degree), 609.344 (criminal sexual conduct in the third degree), 
133.30  609.345 (criminal sexual conduct in the fourth degree), or 
133.31  609.3451 (criminal sexual conduct in the fifth degree).  Sexual 
133.32  abuse also includes any act which involves a minor which 
133.33  constitutes a violation of prostitution offenses under sections 
133.34  609.321 to 609.324 or 617.246.  Sexual abuse includes threatened 
133.35  sexual abuse.  
133.36     (b) "Person responsible for the child's care" means (1) an 
134.1   individual functioning within the family unit and having 
134.2   responsibilities for the care of the child such as a parent, 
134.3   guardian, or other person having similar care responsibilities, 
134.4   or (2) an individual functioning outside the family unit and 
134.5   having responsibilities for the care of the child such as a 
134.6   teacher, school administrator, or other lawful custodian of a 
134.7   child having either full-time or short-term care 
134.8   responsibilities including, but not limited to, day care, 
134.9   babysitting whether paid or unpaid, counseling, teaching, and 
134.10  coaching.  
134.11     (c) "Neglect" means: 
134.12     (1) failure by a person responsible for a child's care to 
134.13  supply a child with necessary food, clothing, shelter, health, 
134.14  medical, or other care required for the child's physical or 
134.15  mental health when reasonably able to do so; 
134.16     (2) failure to protect a child from conditions or actions 
134.17  which imminently and seriously endanger the child's physical or 
134.18  mental health when reasonably able to do so; 
134.19     (3) failure to provide for necessary supervision or child 
134.20  care arrangements appropriate for a child after considering 
134.21  factors as the child's age, mental ability, physical condition, 
134.22  length of absence, or environment, when the child is unable to 
134.23  care for the child's own basic needs or safety, or the basic 
134.24  needs or safety of another child in their care; 
134.25     (4) failure to ensure that the child is educated as defined 
134.26  in sections 120A.22 and 260C.163, subdivision 11, which does not 
134.27  include a parent's refusal to provide the parent's child with 
134.28  sympathomimetic medications, consistent with section 125A.09, 
134.29  subdivision 3; 
134.30     (5) nothing in this section shall be construed to mean that 
134.31  a child is neglected solely because the child's parent, 
134.32  guardian, or other person responsible for the child's care in 
134.33  good faith selects and depends upon spiritual means or prayer 
134.34  for treatment or care of disease or remedial care of the child 
134.35  in lieu of medical care; except that a parent, guardian, or 
134.36  caretaker, or a person mandated to report pursuant to 
135.1   subdivision 3, has a duty to report if a lack of medical care 
135.2   may cause serious danger to the child's health.  This section 
135.3   does not impose upon persons, not otherwise legally responsible 
135.4   for providing a child with necessary food, clothing, shelter, 
135.5   education, or medical care, a duty to provide that care; 
135.6      (6) prenatal exposure to a controlled substance, as defined 
135.7   in section 253B.02, subdivision 2, used by the mother for a 
135.8   nonmedical purpose, as evidenced by withdrawal symptoms in the 
135.9   child at birth, results of a toxicology test performed on the 
135.10  mother at delivery or the child at birth, or medical effects or 
135.11  developmental delays during the child's first year of life that 
135.12  medically indicate prenatal exposure to a controlled substance; 
135.13     (7) "medical neglect" as defined in section 260C.007, 
135.14  subdivision 4, clause (5); 
135.15     (8) chronic and severe use of alcohol or a controlled 
135.16  substance by a parent or person responsible for the care of the 
135.17  child that adversely affects the child's basic needs and safety; 
135.18  or 
135.19     (9) emotional harm from a pattern of behavior which 
135.20  contributes to impaired emotional functioning of the child which 
135.21  may be demonstrated by a substantial and observable effect in 
135.22  the child's behavior, emotional response, or cognition that is 
135.23  not within the normal range for the child's age and stage of 
135.24  development, with due regard to the child's culture. 
135.25     (d) "Physical abuse" means any physical injury, mental 
135.26  injury, or threatened injury, inflicted by a person responsible 
135.27  for the child's care on a child other than by accidental means, 
135.28  or any physical or mental injury that cannot reasonably be 
135.29  explained by the child's history of injuries, or any aversive 
135.30  and deprivation procedures that have not been authorized under 
135.31  section 245.825.  Abuse does not include reasonable and moderate 
135.32  physical discipline of a child administered by a parent or legal 
135.33  guardian which does not result in an injury.  Actions which are 
135.34  not reasonable and moderate include, but are not limited to, any 
135.35  of the following that are done in anger or without regard to the 
135.36  safety of the child: 
136.1      (1) throwing, kicking, burning, biting, or cutting a child; 
136.2      (2) striking a child with a closed fist; 
136.3      (3) shaking a child under age three; 
136.4      (4) striking or other actions which result in any 
136.5   nonaccidental injury to a child under 18 months of age; 
136.6      (5) unreasonable interference with a child's breathing; 
136.7      (6) threatening a child with a weapon, as defined in 
136.8   section 609.02, subdivision 6; 
136.9      (7) striking a child under age one on the face or head; 
136.10     (8) purposely giving a child poison, alcohol, or dangerous, 
136.11  harmful, or controlled substances which were not prescribed for 
136.12  the child by a practitioner, in order to control or punish the 
136.13  child; or other substances that substantially affect the child's 
136.14  behavior, motor coordination, or judgment or that results in 
136.15  sickness or internal injury, or subjects the child to medical 
136.16  procedures that would be unnecessary if the child were not 
136.17  exposed to the substances; or 
136.18     (9) unreasonable physical confinement or restraint not 
136.19  permitted under section 609.379, including but not limited to 
136.20  tying, caging, or chaining. 
136.21     (e) "Report" means any report received by the local welfare 
136.22  agency, police department, or county sheriff pursuant to this 
136.23  section. 
136.24     (f) "Facility" means a licensed or unlicensed day care 
136.25  facility, residential facility, agency, hospital, sanitarium, or 
136.26  other facility or institution required to be licensed under 
136.27  sections 144.50 to 144.58, 241.021, or 245A.01 to 245A.16, or 
136.28  chapter 245B; or a school as defined in sections 120A.05, 
136.29  subdivisions 9, 11, and 13; and 124D.10; or a nonlicensed 
136.30  personal care provider organization as defined in sections 
136.31  256B.04, subdivision 16, and 256B.0625, subdivision 19a. 
136.32     (g) "Operator" means an operator or agency as defined in 
136.33  section 245A.02.  
136.34     (h) "Commissioner" means the commissioner of human services.
136.35     (i) "Assessment" includes authority to interview the child, 
136.36  the person or persons responsible for the child's care, the 
137.1   alleged perpetrator, and any other person with knowledge of the 
137.2   abuse or neglect for the purpose of gathering the facts, 
137.3   assessing the risk to the child, and formulating a plan.  
137.4      (j) "Practice of social services," for the purposes of 
137.5   subdivision 3, includes but is not limited to employee 
137.6   assistance counseling and the provision of guardian ad litem and 
137.7   parenting time expeditor services.  
137.8      (k) "Mental injury" means an injury to the psychological 
137.9   capacity or emotional stability of a child as evidenced by an 
137.10  observable or substantial impairment in the child's ability to 
137.11  function within a normal range of performance and behavior with 
137.12  due regard to the child's culture. 
137.13     (l) "Threatened injury" means a statement, overt act, 
137.14  condition, or status that represents a substantial risk of 
137.15  physical or sexual abuse or mental injury. 
137.16     (m) Persons who conduct assessments or investigations under 
137.17  this section shall take into account accepted child-rearing 
137.18  practices of the culture in which a child participates, which 
137.19  are not injurious to the child's health, welfare, and safety. 
137.20     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
137.21  following final enactment. 
137.22     Sec. 17.  Laws 2000, chapter 489, article 3, section 24, is 
137.23  amended to read: 
137.24     Sec. 24.  [SPECIAL EDUCATION CROSS-SUBSIDY REVENUE.] 
137.25     (a) For fiscal year 2000, a school district shall receive 
137.26  an amount of revenue equal to $8.15 times the district's 
137.27  adjusted marginal cost pupil units.  
137.28     (b) For fiscal year 2001, a school district shall receive 
137.29  an amount of revenue equal to $19 times the district's adjusted 
137.30  marginal cost pupil units.  Special education cross-subsidy 
137.31  revenue must be used to pay for a district's unfunded special 
137.32  education costs that are currently cross-subsidized by a 
137.33  district's general education revenue. 
137.34     (c) The fiscal year 2001 revenue is paid entirely in fiscal 
137.35  year 2001 based on estimated data.  By January 31, 2002, the 
137.36  department of children, families, and learning shall recalculate 
138.1   the revenue for each district using actual data, and shall 
138.2   adjust the general education aid paid to school districts for 
138.3   fiscal year 2002 by the amount of the difference between the 
138.4   estimated revenue and the actual revenue. 
138.5      Sec. 18.  [IDENTIFY REVENUE OPTIONS FOR COORDINATION OF 
138.6   SERVICES.] 
138.7      By July 1, 2002, the commissioner of children, families, 
138.8   and learning shall, in conjunction with the commissioner of 
138.9   human services, develop a plan to identify possible revenue 
138.10  options from medical assistance funds, including targeted case 
138.11  management, and other appropriate federal funds and develop a 
138.12  recommended procedure for use at the local level for the purpose 
138.13  of coordination of services needed to implement the individual 
138.14  interagency intervention plan required in Minnesota Statutes, 
138.15  section 125A.023, subdivision 4, paragraph (b), clause (4). 
138.16     Sec. 19.  [STATE BILLING PROCESS.] 
138.17     The commissioner of children, families, and learning, in 
138.18  consultation with the commissioner of human services, shall 
138.19  develop and recommend a billing process consistent with 
138.20  Minnesota Statutes, sections 125A.21 and 125A.744, for school 
138.21  districts to use to optimize processing third-party bills, 
138.22  including medical assistance.  The commissioner of children, 
138.23  families, and learning shall report to the legislature by 
138.24  February 1, 2002, on recommendations for a billing system. 
138.25     Sec. 20.  [BOARD OF TEACHING.] 
138.26     The board of teaching must review and report to the 
138.27  education committees of the 2002 legislature on rules that would 
138.28  require board-approved teacher preparation programs to include 
138.29  in their teacher preparation programs information on special 
138.30  education laws, teaching strategies, and positive behavior 
138.31  interventions.  
138.32     Sec. 21.  [APPROPRIATIONS.] 
138.33     Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
138.34  LEARNING.] The sums indicated in this section are appropriated 
138.35  from the general fund to the department of children, families, 
138.36  and learning for the fiscal years designated. 
139.1      Subd. 2.  [SPECIAL EDUCATION AID.] For special education 
139.2   aid according to Minnesota Statutes, section 125A.75: 
139.3        $507,448,000   .....     2002 
139.4        $531,481,000   .....     2003 
139.5      The 2002 appropriation includes $47,400,000 for 2001 and 
139.6   $460,048,000 for 2002. 
139.7      The 2003 appropriation includes $51,116,000 for 2002 and 
139.8   $480,365,000 for 2003. 
139.9      Subd. 3.  [AID FOR CHILDREN WITH A DISABILITY.] For aid 
139.10  according to Minnesota Statutes, section 125A.75, subdivision 3, 
139.11  for children with a disability placed in residential facilities 
139.12  within the district boundaries for whom no district of residence 
139.13  can be determined: 
139.14       $1,877,000     .....     2002 
139.15       $2,033,000     .....     2003 
139.16     If the appropriation for either year is insufficient, the 
139.17  appropriation for the other year is available.  
139.18     Any balance in the first year does not cancel but is 
139.19  available in the second year. 
139.20     Subd. 4.  [TRAVEL FOR HOME-BASED SERVICES.] For aid for 
139.21  teacher travel for home-based services according to Minnesota 
139.22  Statutes, section 125A.75, subdivision 1: 
139.23       $135,000       .....     2002 
139.24       $138,000       .....     2003 
139.25     The 2002 appropriation includes $13,000 for 2001 and 
139.26  $122,000 for 2002. 
139.27     The 2003 appropriation includes $13,000 for 2002 and 
139.28  $125,000 for 2003. 
139.29     Subd. 5.  [SPECIAL EDUCATION EXCESS COST AID.] For excess 
139.30  cost aid: 
139.31       $102,665,000   .....     2002 
139.32       $104,773,000   .....     2003 
139.33     The 2002 appropriation includes $9,889,000 for 2001 and 
139.34  $92,776,000 for 2002. 
139.35     The 2003 appropriation includes $10,308,000 for 2002 and 
139.36  $94,465,000 for 2003. 
140.1      Subd. 6.  [LITIGATION COSTS.] For paying the costs a 
140.2   district incurs under Minnesota Statutes, section 125A.75, 
140.3   subdivision 8: 
140.4        $375,000       .....     2003 
140.5      Subd. 7.  [TRANSITION PROGRAMS; STUDENTS WITH 
140.6   DISABILITIES.] For aid for transition programs for pupils with 
140.7   disabilities according to Minnesota Statutes, section 124D.454: 
140.8        $8,954,000     .....     2002 
140.9        $8,939,000     .....     2003 
140.10     The 2002 appropriation includes $896,000 for 2001 and 
140.11  $8,058,000 for 2002.  
140.12     The 2003 appropriation includes $895,000 for 2002 and 
140.13  $8,044,000 for 2003.  
140.14     Subd. 8.  [COURT-PLACED SPECIAL EDUCATION REVENUE.] For 
140.15  reimbursing serving school districts for unreimbursed eligible 
140.16  expenditures attributable to children placed in the serving 
140.17  school district by court action under Minnesota Statutes, 
140.18  section 125A.79, subdivision 4: 
140.19       $350,000       .....     2003 
140.20     Subd. 9.  [OUT-OF-STATE TUITION SPECIAL EDUCATION.] For 
140.21  special education out-of-state tuition according to Minnesota 
140.22  Statutes, section 125A.79, subdivision 8: 
140.23       $250,000       .....     2003 
140.24     Subd. 10.  [USE OF SYMPATHOMIMETIC MEDICATIONS; STUDY.] For 
140.25  the purpose of contracting with a qualified expert to determine 
140.26  and report, consistent with Minnesota Statutes, chapter 13, the 
140.27  number and overall incidence rate of Minnesota children ages 
140.28  three to 18, by age, grade level, gender, and race, diagnosed 
140.29  with attention deficit disorder (ADD) or attention deficit 
140.30  hyperactivity disorder (ADHD) currently taking sympathomimetic 
140.31  medications such as Ritalin: 
140.32       $50,000     .....     2002 
140.33     In preparing the report, the contractor also must determine 
140.34  the number and overall incidence rate of children not identified 
140.35  with ADD or ADHD currently taking sympathomimetic medications 
140.36  such as Ritalin.  The contractor is encouraged to examine the 
141.1   number of children who take sympathomimetic medications at home 
141.2   and not at school, the previous interventions tried with 
141.3   children taking sympathomimetic medications, the types of 
141.4   practitioners who prescribe the sympathomimetic medications, and 
141.5   what pressures families have experienced in terms of providing 
141.6   their children with sympathomimetic medications.  The 
141.7   commissioner must submit the report to the education committees 
141.8   of the legislature by February 15, 2002. 
141.9      Subd. 11.  [WEB-BASED, INDIVIDUAL INTERAGENCY INTERVENTION 
141.10  PLAN.] For ongoing development, administration, and interagency 
141.11  training costs associated with a statewide, Web-based 
141.12  application for the individual interagency intervention plan 
141.13  required in Minnesota Statutes, section 125A.023: 
141.14       $250,000     .....     2002 
141.15       $250,000     .....     2003 
141.16     Subd. 12.  [HIV/STI EDUCATION.] For regional training sites 
141.17  for HIV/STI education in schools established under Laws 1997, 
141.18  First Special Session chapter 4, article 6, section 18: 
141.19       $350,000     .....     2002 
141.20     Of this amount, $300,000 must be used for continued 
141.21  development of the existing sites and $50,000 for department of 
141.22  children, families, and learning technical assistance and 
141.23  contract management services.  This appropriation is available 
141.24  until June 30, 2003. 
141.25                             ARTICLE 4 
141.26                     FACILITIES AND TECHNOLOGY 
141.27     Section 1.  Minnesota Statutes 2000, section 16B.616, 
141.28  subdivision 4, is amended to read: 
141.29     Subd. 4.  [ENFORCEMENT.] (a) A statutory or home rule 
141.30  charter city that is not covered by the code because of action 
141.31  taken under section 16B.72 or 16B.73 is responsible for 
141.32  enforcement in the city of the code's requirements for bleacher 
141.33  safety.  In all other areas where the code does not apply 
141.34  because of action taken under section 16B.72 or 16B.73, the 
141.35  county is responsible for enforcement of those requirements. 
141.36     (b) Municipalities that have not adopted the code may 
142.1   enforce the code requirements for bleacher safety by either 
142.2   entering into a joint powers agreement for enforcement with 
142.3   another municipality that has adopted the code or contracting 
142.4   for enforcement with a qualified and certified building official 
142.5   or state licensed design professional to enforce the code. 
142.6      (c) Municipalities, school districts, organizations, 
142.7   individuals, and other persons operating or owning places of 
142.8   public accommodation with bleachers that are subject to the 
142.9   safety requirements in subdivision 3 shall provide a signed 
142.10  certification of compliance to the commissioner by January 1, 
142.11  2002.  For bleachers subject to the exception in subdivision 3, 
142.12  clause (1), entities covered by this paragraph must have on file 
142.13  a bleacher safety management plan and amortization schedule.  
142.14  The certification shall be prepared by a qualified and certified 
142.15  building official or state licensed design professional and 
142.16  shall certify that the bleachers have been inspected and are in 
142.17  compliance with the requirements of this section and are 
142.18  structurally sound.  For bleachers owned by a school district or 
142.19  nonpublic school, the person the district or nonpublic school 
142.20  designates to be responsible for buildings and grounds may make 
142.21  the certification. 
142.22     Sec. 2.  Minnesota Statutes 2000, section 123B.54, is 
142.23  amended to read: 
142.24     123B.54 [DEBT SERVICE APPROPRIATION.] 
142.25     (a) $33,141,000 in fiscal year 2000, $29,400,000 in fiscal 
142.26  year 2001, $26,934,000 in fiscal year 2002, and $24,540,000 in 
142.27  fiscal year 2003 and each year thereafter is $25,989,000 in 
142.28  fiscal year 2002, $35,163,000 in fiscal year 2003, $31,787,000 
142.29  in fiscal year 2004, and $26,453,000 in fiscal years 2005 and 
142.30  later are appropriated from the general fund to the commissioner 
142.31  of children, families, and learning for payment of debt service 
142.32  equalization aid under section 123B.53.  
142.33     (b) The appropriations in paragraph (a) must be reduced by 
142.34  the amount of any money specifically appropriated for the same 
142.35  purpose in any year from any state fund. 
142.36     Sec. 3.  Minnesota Statutes 2000, section 123B.57, 
143.1   subdivision 3, is amended to read: 
143.2      Subd. 3.  [HEALTH AND SAFETY REVENUE.] A district's health 
143.3   and safety revenue for a fiscal year equals: 
143.4      (1) the sum of (a) the total approved cost of the 
143.5   district's hazardous substance plan for fiscal years 1985 
143.6   through 1989, plus (b) the total approved cost of the district's 
143.7   health and safety program for fiscal year 1990 through the 
143.8   fiscal year to which the levy is attributable, excluding 
143.9   expenditures funded with bonds issued under section 123B.59 or 
143.10  123B.62, or chapter 475; certificates of indebtedness or capital 
143.11  notes under section 123B.61; levies under section 123B.58, 
143.12  123B.59, 123B.63, or 126C.40, subdivision 1 or 6; and other 
143.13  federal, state, or local revenues, minus 
143.14     (2) the sum of (a) the district's total hazardous substance 
143.15  aid and levy for fiscal years 1985 through 1989 under sections 
143.16  124.245 and 275.125, subdivision 11c, plus (b) the district's 
143.17  health and safety revenue under this subdivision, for years 
143.18  before the fiscal year to which the levy is attributable, plus 
143.19  (c) the amount of other federal, state, or local receipts for 
143.20  the district's hazardous substance or health and safety programs 
143.21  for fiscal year 1985 through the fiscal year to which the levy 
143.22  is attributable. 
143.23     Sec. 4.  Minnesota Statutes 2000, section 123B.57, 
143.24  subdivision 6, is amended to read: 
143.25     Subd. 6.  [USES OF HEALTH AND SAFETY REVENUE.] Health and 
143.26  safety revenue may be used only for approved expenditures 
143.27  necessary to correct fire safety hazards, life safety hazards, 
143.28  or for the removal or encapsulation of asbestos from school 
143.29  buildings or property owned or being acquired by the district, 
143.30  asbestos-related repairs, cleanup and disposal of 
143.31  polychlorinated biphenyls found in school buildings or 
143.32  property owned or being acquired by the district, or the 
143.33  cleanup, removal, disposal, and repairs related to storing 
143.34  heating fuel or transportation fuels such as alcohol, gasoline, 
143.35  fuel oil, and special fuel, as defined in section 296A.01, labor 
143.36  and industry regulated facility and equipment hazards, and 
144.1   health, safety, and environmental management.  Health and safety 
144.2   revenue must not be used to finance a lease purchase agreement, 
144.3   installment purchase agreement, or other deferred payments 
144.4   agreement.  Health and safety revenue must not be used for the 
144.5   construction of new facilities or the purchase of portable 
144.6   classrooms, for interest or other financing expenses, or for 
144.7   energy efficiency projects under section 123B.65.  The revenue 
144.8   may not be used for a building or property or part of a building 
144.9   or property used for post-secondary instruction or 
144.10  administration or for a purpose unrelated to elementary and 
144.11  secondary education. 
144.12     Sec. 5.  Minnesota Statutes 2000, section 123B.57, 
144.13  subdivision 8, is amended to read: 
144.14     Subd. 8.  [HEALTH, SAFETY, AND ENVIRONMENTAL MANAGEMENT 
144.15  COST.] (a) A district's cost for health, safety, and 
144.16  environmental management is limited to the lesser of:  
144.17     (1) actual cost to implement their plan; or 
144.18     (2) an amount determined by the commissioner, based on 
144.19  enrollment, building age, and size. 
144.20     (b) The department may contract with regional service 
144.21  organizations, private contractors, Minnesota safety council, or 
144.22  state agencies to provide management assistance to school 
144.23  districts for health and safety capital projects.  Management 
144.24  assistance is the development of written programs for the 
144.25  identification, recognition and control of hazards, and 
144.26  prioritization and scheduling of district health and safety 
144.27  capital projects.  The department shall not exclude private 
144.28  contractors from the opportunity to provide any health and 
144.29  safety services to school districts. 
144.30     (c) Notwithstanding paragraph (b), the department may 
144.31  approve revenue, up to the limit defined in paragraph (a) for 
144.32  districts having an approved health, safety, and environmental 
144.33  management plan that uses district staff to accomplish 
144.34  coordination and provided services. 
144.35     Sec. 6.  Minnesota Statutes 2000, section 123B.59, 
144.36  subdivision 1, is amended to read: 
145.1      Subdivision 1.  [TO QUALIFY.] An independent or special 
145.2   school district qualifies to participate in the alternative 
145.3   facilities bonding and levy program if the district has: 
145.4      (1) more than 66 students per grade; 
145.5      (2) over 1,850,000 square feet of space; 
145.6      (3) and the average age of building space is 15 years or 
145.7   older or over 1,500,000 square feet and the average age of 
145.8   building space is 35 years or older; 
145.9      (4) (3) insufficient funds from projected health and safety 
145.10  revenue and capital facilities revenue to meet the requirements 
145.11  for deferred maintenance, to make accessibility improvements, or 
145.12  to make fire, safety, or health repairs; and 
145.13     (5) (4) a ten-year facility plan approved by the 
145.14  commissioner according to subdivision 2. 
145.15     <b>[EFFECTIVE DATE.]</b> This section is effective for revenue for 
145.16  fiscal year 2004 and later. 
145.17     Sec. 7.  Minnesota Statutes 2000, section 123B.71, 
145.18  subdivision 1, is amended to read: 
145.19     Subdivision 1.  [CONSULTATION.] A school district shall 
145.20  consult with the commissioner of children, families, and 
145.21  learning before developing any plans and specifications to 
145.22  construct, remodel, or improve the building or site of an 
145.23  educational facility for which the estimated cost exceeds 
145.24  $100,000 $250,000.  This consultation shall occur before a 
145.25  referendum for bonds, solicitation for bids, or use of capital 
145.26  expenditure facilities revenue according to section 126C.10, 
145.27  subdivision 14, clause (2).  The commissioner may require the 
145.28  district to participate in a management assistance plan before 
145.29  conducting a review and comment on the project. 
145.30     Sec. 8.  Minnesota Statutes 2000, section 123B.71, 
145.31  subdivision 4, is amended to read: 
145.32     Subd. 4.  [PLAN SUBMITTAL.] For a project for which 
145.33  consultation is required under subdivision 1, the commissioner, 
145.34  after the consultation required in subdivision 1, may require a 
145.35  school district to submit the following preliminary and final 
145.36  plans for approval:  
146.1      (a) two sets of preliminary plans for each new building or 
146.2   addition, and 
146.3      (b) one set of final plans for each construction, 
146.4   remodeling, or site improvement project.  The commissioner shall 
146.5   approve or disapprove the plans within 90 days after submission. 
146.6      Final plans shall meet all applicable state laws, rules, 
146.7   and codes concerning public buildings, including sections 16B.59 
146.8   to 16B.73.  The department may furnish to a school district 
146.9   plans and specifications for temporary school buildings 
146.10  containing two classrooms or less.  
146.11     Sec. 9.  Minnesota Statutes 2000, section 123B.71, 
146.12  subdivision 8, is amended to read: 
146.13     Subd. 8.  [REVIEW AND COMMENT.] A school district, a 
146.14  special education cooperative, or a cooperative unit of 
146.15  government, as defined in section 123A.24, subdivision 2, must 
146.16  not initiate an installment contract for purchase or a lease 
146.17  agreement, hold a referendum for bonds, nor solicit bids for new 
146.18  construction, expansion, or remodeling of an educational 
146.19  facility that requires an expenditure in excess 
146.20  of $400,000 $500,000 per school site prior to review and comment 
146.21  by the commissioner.  The commissioner may exempt a facility 
146.22  maintenance project funded with general education aid and levy 
146.23  or health and safety revenue from this provision after reviewing 
146.24  a written request from a school district describing the scope of 
146.25  work.  A school board shall not separate portions of a single 
146.26  project into components to avoid the requirements of this 
146.27  subdivision. 
146.28     Sec. 10.  Minnesota Statutes 2000, section 123B.71, 
146.29  subdivision 9, is amended to read: 
146.30     Subd. 9.  [INFORMATION REQUIRED.] A school board proposing 
146.31  to construct a facility described in subdivision 8 shall submit 
146.32  to the commissioner a proposal containing information including 
146.33  at least the following: 
146.34     (a) the geographic area proposed to be served, whether 
146.35  within or outside the boundaries of the school district; 
146.36     (b) the people proposed to be served, including census 
147.1   findings and projections for the next ten years of the number of 
147.2   preschool and school-aged people in the area; 
147.3      (c) the reasonably anticipated need for the facility or 
147.4   service to be provided; 
147.5      (d) a description of the construction in reasonable detail, 
147.6   including:  the expenditures contemplated; the estimated annual 
147.7   operating cost, including the anticipated salary and number of 
147.8   new staff necessitated by the proposal; and an evaluation of the 
147.9   energy efficiency and effectiveness of the construction, 
147.10  including estimated annual energy costs; and a description of 
147.11  the telephone capabilities of the facility and its classrooms; 
147.12     (e) a description of existing facilities within the area to 
147.13  be served and within school districts adjacent to the area to be 
147.14  served; the extent to which existing facilities or services are 
147.15  used; the extent to which alternate space is available, 
147.16  including other school districts, post-secondary institutions, 
147.17  other public or private buildings, or other noneducation 
147.18  community resources; and the anticipated effect that the 
147.19  facility will have on existing facilities and services; 
147.20     (f) the anticipated benefit of the facility to the area; 
147.21     (g) if known, the relationship of the proposed construction 
147.22  to any priorities that have been established for the area to be 
147.23  served; 
147.24     (h) the availability and manner of financing the facility 
147.25  and the estimated date to begin and complete the facility; 
147.26     (i) desegregation requirements that cannot be met by any 
147.27  other reasonable means; 
147.28     (j) the relationship of the proposed facility to the 
147.29  cooperative integrated learning needs of the area; 
147.30     (k) the effects of the proposed facility on the district's 
147.31  operating budget; 
147.32     (l) the level of collaboration at the facility between the 
147.33  district and other governmental or nonprofit entities; and 
147.34     (m) the extent to which the district has minimized 
147.35  administrative overhead among facilities. 
147.36     (1) the geographic area and population to be served, 
148.1   preschool through grade 12 student enrollments for the past five 
148.2   years, and student enrollment projections for the next five 
148.3   years; 
148.4      (2) a list of existing facilities by year constructed, 
148.5   their uses, and an assessment of the extent to which alternate 
148.6   facilities are available within the school district boundaries 
148.7   and in adjacent school districts; 
148.8      (3) a list of the specific deficiencies of the facility 
148.9   that demonstrate the need for a new or renovated facility to be 
148.10  provided, and a list of the specific benefits that the new or 
148.11  renovated facility will provide to the students, teachers, and 
148.12  community users served by the facility; 
148.13     (4) the relationship of the project to any priorities 
148.14  established by the school district, educational cooperatives 
148.15  that provide support services, or other public bodies in the 
148.16  service area; 
148.17     (5) a specification of how the project will increase 
148.18  community use of the facility and whether and how the project 
148.19  will increase collaboration with other governmental or nonprofit 
148.20  entities; 
148.21     (6) a description of the project, including the 
148.22  specification of site and outdoor space acreage and square 
148.23  footage allocations for classrooms, laboratories, and support 
148.24  spaces; estimated expenditures for the major portions of the 
148.25  project; and the dates the project will begin and be completed; 
148.26     (7) a specification of the source of financing the project; 
148.27  the scheduled date for a bond issue or school board action; a 
148.28  schedule of payments, including debt service equalization aid; 
148.29  and the effect of a bond issue on local property taxes by the 
148.30  property class and valuation; 
148.31     (8) an analysis of how the proposed new or remodeled 
148.32  facility will affect school district operational or 
148.33  administrative staffing costs, and how the district's operating 
148.34  budget will cover any increased operational or administrative 
148.35  staffing costs; 
148.36     (9) a description of the consultation with local or state 
149.1   road and transportation officials on school site access and 
149.2   safety issues, and the ways that the project will address those 
149.3   issues; 
149.4      (10) a description of how indoor air quality issues have 
149.5   been considered and a certification that the architects and 
149.6   engineers designing the facility will have professional 
149.7   liability insurance; 
149.8      (11) as required under section 123B.72, for buildings 
149.9   coming into service after July 1, 2002, a certification that the 
149.10  plans and designs for the extensively renovated or new 
149.11  facility's heating, ventilation, and air conditioning systems 
149.12  will meet or exceed code standards; will provide for the 
149.13  monitoring of outdoor airflow and total airflow of ventilation 
149.14  systems; and will provide an indoor air quality filtration 
149.15  system that meets ASHRAE standard 52.1; 
149.16     (12) a specification of any desegregation requirements that 
149.17  cannot be met by any other reasonable means; and 
149.18     (13) a specification, if applicable, of how the facility 
149.19  will utilize environmentally sustainable school facility design 
149.20  concepts. 
149.21     Sec. 11.  Minnesota Statutes 2000, section 125B.21, is 
149.22  amended to read: 
149.23     125B.21 [MINNESOTA EDUCATION TELECOMMUNICATIONS COUNCIL.] 
149.24     Subdivision 1.  [STATE COUNCIL MEMBERSHIP.] The membership 
149.25  of the Minnesota education telecommunications council 
149.26  established in Laws 1993, First Special Session chapter 2, is 
149.27  expanded to include representatives of elementary and secondary 
149.28  education.  The membership shall consist of three 
149.29  representatives from the University of Minnesota; three 
149.30  representatives of the board of trustees for Minnesota state 
149.31  colleges and universities; one representative of the higher 
149.32  education services offices; one representative appointed by the 
149.33  private college council; one representative selected by the 
149.34  commissioner of administration; eight representatives selected 
149.35  by the commissioner of children, families, and learning, at 
149.36  least one of which must come from each of the six higher 
150.1   education telecommunication regions; a representative from the 
150.2   office of technology; two members each from the senate and the 
150.3   house of representatives selected by the subcommittee on 
150.4   committees of the committee on rules and administration of the 
150.5   senate and the speaker of the house, one member from each body 
150.6   must be a member of the minority party; and three 
150.7   representatives of libraries, one representing regional public 
150.8   libraries, one representing multitype libraries, and one 
150.9   representing community libraries, selected by the governor; and 
150.10  two members, one selected from and representing the higher 
150.11  education regional coordinators and one selected from and 
150.12  representing the kindergarten through grade 12 cluster regions.  
150.13  The council shall serve as a forum to establish and advocate for 
150.14  a statewide vision and plans for the use of distance learning 
150.15  technologies, including: 
150.16     (1) develop a statewide vision and plans for the use of 
150.17  distance learning technologies and provide leadership in 
150.18  implementing the use of such technologies the coordination and 
150.19  collaboration of distance learning opportunities; 
150.20     (2) recommend educational policy relating to 
150.21  telecommunications the implementation of the use of distance 
150.22  learning technologies; 
150.23     (3) determine priorities for use the collaboration of 
150.24  distance learning users; 
150.25     (4) oversee coordination of networks for post-secondary 
150.26  campuses, kindergarten through grade 12 education, and regional 
150.27  and community libraries the implementation of educational policy 
150.28  relating to telecommunications; 
150.29     (5) review application for telecommunications access grants 
150.30  under Minnesota Statutes, section 125B.20, and recommend to the 
150.31  department grants for funding the exchange of ideas; 
150.32     (6) determine priorities for grant funding proposals the 
150.33  communications with state government and related agencies and 
150.34  entities; and 
150.35     (7) work with the information policy office to ensure 
150.36  consistency of the operation of the learning network with 
151.1   standards of an open system architecture the coordination of 
151.2   networks for post-secondary campuses, kindergarten through grade 
151.3   12 education, and regional and community libraries; and 
151.4      (8) the promotion of consistency of the operation of the 
151.5   learning network with standards of an open system architecture. 
151.6      The council shall consult with representatives of the 
151.7   telecommunication industry in implementing this section.  
151.8      Subd. 2.  [DISTRICT COUNCIL MEMBERSHIP.] District 
151.9   organizations that coordinate applications for telecommunication 
151.10  access grants are encouraged to become members of the regional 
151.11  higher education telecommunication council in their area. 
151.12     Subd. 3.  [CRITERIA.] In addition to responsibilities of 
151.13  the council under Laws 1993, First Special Session chapter 2, as 
151.14  amended, the telecommunications council shall evaluate grant 
151.15  applications under section 125B.20 and applications from 
151.16  district organizations using the following criteria: 
151.17     (1) evidence of cooperative arrangements with other 
151.18  post-secondary institutions, school districts, and community and 
151.19  regional libraries in the geographic region; 
151.20     (2) plans for shared classes and programs; 
151.21     (3) avoidance of network duplication; 
151.22     (4) evidence of efficiencies to be achieved in delivery of 
151.23  instruction due to use of telecommunications; 
151.24     (5) a plan for development of a list of all courses 
151.25  available in the region for delivery at a distance; 
151.26     (6) a plan for coordinating and scheduling courses; and 
151.27     (7) a plan for evaluation of costs, access, and outcomes. 
151.28     Sec. 12.  Minnesota Statutes 2000, section 125B.25, 
151.29  subdivision 1, is amended to read: 
151.30     Subdivision 1.  [COSTS TO BE SUBMITTED.] A district shall 
151.31  submit its outstanding ongoing or recurring telecommunications 
151.32  access costs associated with data lines and video links 
151.33  connections to the department of children, families, and 
151.34  learning.  Costs of telecommunications hardware or equipment 
151.35  must not be included in the costs submitted by districts to the 
151.36  department.  A district may include installation charges 
152.1   associated with new lines or upgraded lines, but may not include 
152.2   costs of hardware or equipment. 
152.3      Sec. 13.  Minnesota Statutes 2000, section 125B.25, 
152.4   subdivision 2, is amended to read: 
152.5      Subd. 2.  [GUARANTEED MINIMUM ACCESS.] (a) The ongoing or 
152.6   recurring telecommunications access costs submitted to the 
152.7   department by each district under this section are limited to 
152.8   the operation costs equal to the greater of: 
152.9      (1) one data line or video link connection that relies on a 
152.10  transport medium that operates at a minimum speed of 1.544 
152.11  megabytes per second for each elementary school, middle school, 
152.12  or high school under section 120A.05, subdivisions 9, 11, and 
152.13  13; or 
152.14     (2) one data line or video link connection that relies on a 
152.15  transport medium that operates at a minimum speed of 1.544 
152.16  megabytes per second for each district. 
152.17     (b) A district may include costs associated with 
152.18  cooperative arrangements with other post-secondary institutions, 
152.19  school districts, and community and regional libraries in its 
152.20  geographic region.  A district may continue to purchase its 
152.21  ongoing or recurring telecommunications access services through 
152.22  existing contracts. 
152.23     Sec. 14.  Minnesota Statutes 2000, section 125B.25, 
152.24  subdivision 6, is amended to read: 
152.25     Subd. 6.  [REVENUE FOR CHARTER SCHOOLS.] (a) Each charter 
152.26  school shall receive revenue equal to the greater of: 
152.27     (1) the per marginal cost pupil unit amount for the 
152.28  district in which the charter school is located as determined by 
152.29  the commissioner according to subdivision 4; or 
152.30     (2) $5; 
152.31  times the adjusted marginal cost pupil units for that year, 
152.32  times 65 percent. 
152.33     (b) A charter school's revenue under this subdivision must 
152.34  be used to pay for ongoing or recurring telecommunication access 
152.35  costs, including access to data lines, and video lines 
152.36  connections, or including Internet access. 
153.1      Sec. 15.  Minnesota Statutes 2000, section 126C.40, 
153.2   subdivision 1, is amended to read: 
153.3      Subdivision 1.  [TO LEASE BUILDING OR LAND.] (a) When a 
153.4   district finds it economically advantageous to rent or lease a 
153.5   building or land for any instructional purposes or for school 
153.6   storage or furniture repair, and it determines that the 
153.7   operating capital revenue authorized under section 126C.10, 
153.8   subdivision 13, is insufficient for this purpose, it may apply 
153.9   to the commissioner for permission to make an additional capital 
153.10  expenditure levy for this purpose.  An application for 
153.11  permission to levy under this subdivision must contain financial 
153.12  justification for the proposed levy, the terms and conditions of 
153.13  the proposed lease, and a description of the space to be leased 
153.14  and its proposed use.  
153.15     (b) The criteria for approval of applications to levy under 
153.16  this subdivision must include:  the reasonableness of the price, 
153.17  the appropriateness of the space to the proposed activity, the 
153.18  feasibility of transporting pupils to the leased building or 
153.19  land, conformity of the lease to the laws and rules of the state 
153.20  of Minnesota, and the appropriateness of the proposed lease to 
153.21  the space needs and the financial condition of the district.  
153.22  The commissioner must not authorize a levy under this 
153.23  subdivision in an amount greater than the cost to the district 
153.24  of renting or leasing a building or land for approved purposes.  
153.25  The proceeds of this levy must not be used for custodial or 
153.26  other maintenance services.  A district may not levy under this 
153.27  subdivision for the purpose of leasing or renting a 
153.28  district-owned building or site to itself. 
153.29     (c) For agreements finalized after July 1, 1997, a district 
153.30  may not levy under this subdivision for the purpose of leasing:  
153.31  (1) a newly constructed building used primarily for regular 
153.32  kindergarten, elementary, or secondary instruction; or (2) a 
153.33  newly constructed building addition or additions used primarily 
153.34  for regular kindergarten, elementary, or secondary instruction 
153.35  that contains more than 20 percent of the square footage of the 
153.36  previously existing building. 
154.1      (d) Notwithstanding paragraph (b), a district may levy 
154.2   under this subdivision for the purpose of leasing or renting a 
154.3   district-owned building or site to itself only if the amount is 
154.4   needed by the district to make payments required by a lease 
154.5   purchase agreement, installment purchase agreement, or other 
154.6   deferred payments agreement authorized by law, and the levy 
154.7   meets the requirements of paragraph (c).  A levy authorized for 
154.8   a district by the commissioner under this paragraph may be in 
154.9   the amount needed by the district to make payments required by a 
154.10  lease purchase agreement, installment purchase agreement, or 
154.11  other deferred payments agreement authorized by law, provided 
154.12  that any agreement include a provision giving the school 
154.13  districts the right to terminate the agreement annually without 
154.14  penalty. 
154.15     (e) The total levy under this subdivision for a district 
154.16  for any year must not exceed $100 times the resident pupil units 
154.17  for the fiscal year to which the levy is attributable. 
154.18     (f) For agreements for which a review and comment have been 
154.19  submitted to the department of children, families, and learning 
154.20  after April 1, 1998, the term "instructional purpose" as used in 
154.21  this subdivision excludes expenditures on stadiums. 
154.22     (g) The commissioner of children, families, and learning 
154.23  may authorize a school district to exceed the limit in paragraph 
154.24  (e) if the school district petitions the commissioner for 
154.25  approval.  The commissioner shall grant approval to a school 
154.26  district to exceed the limit in paragraph (e) for not more than 
154.27  five years if the district meets the following criteria: 
154.28     (1) the school district has been experiencing pupil 
154.29  enrollment growth in the preceding five years; 
154.30     (2) the purpose of the increased levy is in the long-term 
154.31  public interest; 
154.32     (3) the purpose of the increased levy promotes colocation 
154.33  of government services; and 
154.34     (4) the purpose of the increased levy is in the long-term 
154.35  interest of the district by avoiding over construction of school 
154.36  facilities. 
155.1      (h) A school district that is a member of an intermediate 
155.2   school district may include in its authority under this section 
155.3   the costs associated with leases of administrative and classroom 
155.4   space for intermediate school district programs.  This authority 
155.5   must not exceed $25 times the adjusted marginal cost pupil units 
155.6   of the member districts.  This authority is in addition to any 
155.7   other authority authorized under this section. 
155.8      Sec. 16.  Minnesota Statutes 2000, section 126C.63, 
155.9   subdivision 8, is amended to read: 
155.10     Subd. 8.  [MAXIMUM EFFORT DEBT SERVICE LEVY.] "Maximum 
155.11  effort debt service levy" means the lesser of: 
155.12     (1) a levy in whichever of the following amounts is 
155.13  applicable: 
155.14     (a) in any district receiving a debt service loan for a 
155.15  debt service levy payable in 2002 and thereafter, or granted a 
155.16  capital loan after January 1, 2001, a levy in total dollar 
155.17  amount computed at a rate of 30 percent of adjusted net tax 
155.18  capacity for taxes payable in 2002 and thereafter; 
155.19     (b) in any district receiving a debt service loan for a 
155.20  debt service levy payable in 1991 and thereafter, or granted a 
155.21  capital loan after January 1, 1990, a levy in a total dollar 
155.22  amount computed at a rate of 24 percent of adjusted net tax 
155.23  capacity for taxes payable in 1991 and thereafter; 
155.24     (b) (c) in any district granted a debt service loan after 
155.25  July 31, 1981, or granted a capital loan which is approved after 
155.26  July 31, 1981, a levy in a total dollar amount computed as a tax 
155.27  rate of 21.92 percent on the adjusted net tax capacity for taxes 
155.28  payable in 1991 and thereafter; or 
155.29     (2) a levy in any district for which a capital loan was 
155.30  approved prior to August 1, 1981, a levy in a total dollar 
155.31  amount equal to the sum of the amount of the required debt 
155.32  service levy and an amount which when levied annually will in 
155.33  the opinion of the commissioner be sufficient to retire the 
155.34  remaining interest and principal on any outstanding loans from 
155.35  the state within 30 years of the original date when the capital 
155.36  loan was granted.  
156.1      The board in any district affected by the provisions of 
156.2   clause (2) may elect instead to determine the amount of its levy 
156.3   according to the provisions of clause (1).  If a district's 
156.4   capital loan is not paid within 30 years because it elects to 
156.5   determine the amount of its levy according to the provisions of 
156.6   clause (2), the liability of the district for the amount of the 
156.7   difference between the amount it levied under clause (2) and the 
156.8   amount it would have levied under clause (1), and for interest 
156.9   on the amount of that difference, must not be satisfied and 
156.10  discharged pursuant to Minnesota Statutes 1988, or an earlier 
156.11  edition of Minnesota Statutes if applicable, section 124.43, 
156.12  subdivision 4. 
156.13     Sec. 17.  Minnesota Statutes 2000, section 126C.69, 
156.14  subdivision 2, is amended to read: 
156.15     Subd. 2.  [CAPITAL LOANS ELIGIBILITY.] Beginning July 1, 
156.16  1999, a district is not eligible for a capital loan unless the 
156.17  district's estimated net debt tax rate as computed by the 
156.18  commissioner after debt service equalization aid would be more 
156.19  than 24 30 percent of adjusted net tax capacity.  The estimate 
156.20  must assume a 20-year maturity schedule for new debt. 
156.21     Sec. 18.  Minnesota Statutes 2000, section 126C.69, 
156.22  subdivision 9, is amended to read: 
156.23     Subd. 9.  [LOAN AMOUNT LIMITS.] (a) A loan must not be 
156.24  recommended for approval for a district exceeding an amount 
156.25  computed as follows: 
156.26     (1) the amount requested by the district under subdivision 
156.27  6; 
156.28     (2) plus the aggregate principal amount of general 
156.29  obligation bonds of the district outstanding on June 30 of the 
156.30  year following the year the application was received, not 
156.31  exceeding the limitation on net debt of the district in section 
156.32  475.53, subdivision 4, or 363 450 percent of its adjusted net 
156.33  tax capacity as most recently determined, whichever is less; 
156.34     (3) less the maximum net debt permissible for the district 
156.35  on December 1 of the year the application is received, under the 
156.36  limitation in section 475.53, subdivision 4, or 363 450 percent 
157.1   of its adjusted net tax capacity as most recently determined, 
157.2   whichever is less; 
157.3      (4) less any amount by which the amount voted exceeds the 
157.4   total cost of the facilities for which the loan is granted.  
157.5      (b) The loan may be approved in an amount computed as 
157.6   provided in paragraph (a), clauses (1) to (3), subject to later 
157.7   reduction according to paragraph (a), clause (4). 
157.8      Sec. 19.  Laws 2000, chapter 489, article 5, section 21, is 
157.9   amended to read: 
157.10     Sec. 21.  [ONE-TIME DEFERRED MAINTENANCE AID.] 
157.11     (a) For fiscal year 2001 only, a district's one-time 
157.12  deferred maintenance aid is equal to: 
157.13     (1) $10 times the adjusted marginal cost pupil units for 
157.14  the school year; plus 
157.15     (2) $21.90 times the adjusted marginal cost pupil units for 
157.16  the school year for a district that does not qualify for 
157.17  alternative facilities bonding under Minnesota Statutes, section 
157.18  123B.59, or under Laws 1999, chapter 241, article 4, section 25. 
157.19     (b) Aid received under this section must be used for 
157.20  deferred maintenance, to make accessibility improvements, or to 
157.21  make fire, safety, or health repairs. 
157.22     (c) This aid is paid entirely in fiscal year 2001 based on 
157.23  estimated data.  By January 31, 2002, the department of 
157.24  children, families, and learning shall recalculate the aid for 
157.25  each district using actual data, and shall adjust the general 
157.26  education aid paid to school districts for fiscal year 2002 by 
157.27  the amount of the difference between the estimated aid and the 
157.28  actual aid. 
157.29     Sec. 20.  Laws 2000, chapter 489, article 7, section 15, 
157.30  subdivision 3, is amended to read: 
157.31     Subd. 3.  [COOPERATIVE SECONDARY FACILITY FACILITIES NEEDS; 
157.32  PLANNING AND EXPENSES.] For a grant and administrative expenses 
157.33  to facilitate for facilities and curricular planning for a 
157.34  cooperative secondary facility under a joint powers agreement 
157.35  for school district districts Nos. 411, Balaton, 402, Hendricks, 
157.36  403, Ivanhoe, 404, Lake Benton, 418, Russell, 584, Ruthton, and 
158.1   409, Tyler: 
158.2          $100,000     .....     2001 2002
158.3      This is a one-time appropriation.  This appropriation is 
158.4   available until June 30, 2003. 
158.5      Sec. 21.  [INTERMEDIATE SCHOOL DISTRICTS; BONDING AUTHORITY 
158.6   WITHOUT VOTER APPROVAL.] 
158.7      Subdivision 1.  [INTERMEDIATE SCHOOL DISTRICT NO. 
158.8   916.] Notwithstanding Minnesota Statutes, chapter 136D, the 
158.9   school board of intermediate school district No. 916 may sell 
158.10  and issue up to $2,000,000 in bonds for acquisition and 
158.11  betterment purposes upon adoption of a resolution by the board 
158.12  authorizing the bonds.  
158.13     The bonds shall be general obligations of the intermediate 
158.14  school district; however, each member school district must each 
158.15  year certify its proportionate share of the debt service levy on 
158.16  the bonds, with the allocation of its share of that levy 
158.17  determined in accordance with the resolution authorizing the 
158.18  project previously adopted by each member school board.  For 
158.19  purposes of section 123B.53, the debt service levies certified 
158.20  for this purpose by an individual member school district shall 
158.21  be considered debt service levies of that school district.  By 
158.22  July 1 and December 1 of each year, the school board of each 
158.23  member school district shall transfer to the intermediate school 
158.24  district an amount equal to 50 percent of the debt service levy 
158.25  certified by that member school district in the previous fiscal 
158.26  year to pay its proportionate share. 
158.27     Subd. 2.  [INTERMEDIATE SCHOOL DISTRICT NO. 
158.28  917.] Notwithstanding Minnesota Statutes, chapter 136D, the 
158.29  school board of intermediate school district No. 917 may sell 
158.30  and issue up to $5,000,000 in bonds for acquisition and 
158.31  betterment purposes upon adoption of a resolution by the board 
158.32  authorizing the bonds. 
158.33     The bonds shall be general obligations of the intermediate 
158.34  school district; however, each member school district must each 
158.35  year certify its proportionate share of the debt service levy on 
158.36  the bonds, with the allocation of its share of that levy 
159.1   determined in accordance with the resolution authorizing the 
159.2   project previously adopted by each member school board.  For 
159.3   purposes of section 123B.53, the debt service levies certified 
159.4   for this purpose by an individual member school district shall 
159.5   be considered debt service levies of that school district.  By 
159.6   July 1 and December 1 of each year, the school board of each 
159.7   member school district shall transfer to the intermediate school 
159.8   district an amount equal to 50 percent of the debt service levy 
159.9   certified by that member school district in the previous fiscal 
159.10  year to pay its proportionate share. 
159.11     Sec. 22.  [ENVIRONMENTALLY SUSTAINABLE SCHOOL FACILITIES.] 
159.12     The department of administration must provide information 
159.13  to a school district interested in providing environmentally 
159.14  sustainable facilities. 
159.15     Sec. 23.  [BONDING AUTHORIZATION.] 
159.16     To provide funds for the acquisition or betterment of 
159.17  school facilities, independent school district No. 625, St. 
159.18  Paul, may by two-thirds majority vote of all the members of the 
159.19  board of directors issue general obligation bonds in one or more 
159.20  series in calendar years 2003 to 2008, both inclusive, as 
159.21  provided in this section.  The aggregate principal amount of any 
159.22  bonds issued under this section for each calendar year must not 
159.23  exceed $15,000,000.  Issuance of the bonds is not subject to 
159.24  Minnesota Statutes, section 475.58 or 475.59.  The bonds must 
159.25  otherwise be issued as provided in Minnesota Statutes, chapter 
159.26  475.  The authority to issue bonds under this section is in 
159.27  addition to any bonding authority authorized by Minnesota 
159.28  Statutes, chapter 123B, or other law.  The amount of bonding 
159.29  authority authorized under this section must be disregarded in 
159.30  calculating the bonding limit of Minnesota Statutes, chapter 
159.31  123B, or any other law other than Minnesota Statutes, section 
159.32  475.53, subdivision 4. 
159.33     Sec. 24.  [TAX LEVY FOR DEBT SERVICE.] 
159.34     To pay the principal of and interest on bonds issued under 
159.35  section 11, independent school district No. 625, St. Paul, must 
159.36  levy a tax annually in an amount sufficient under Minnesota 
160.1   Statutes, section 475.61, subdivisions 1 and 3, to pay the 
160.2   principal of and interest on the bonds.  The tax authorized 
160.3   under this section is in addition to the taxes authorized to be 
160.4   levied under Minnesota Statutes, chapter 123B, 124D, or 126C, or 
160.5   other law. 
160.6      Sec. 25.  [INTERACTIVE WEB-BASED AND INDEPENDENT STUDY 
160.7   PROGRAMS.] 
160.8      Subdivision 1.  [PUPIL REVENUE.] (a) General education 
160.9   revenue for an eligible pupil in an approved interactive 
160.10  Web-based program offered by a school district or a charter 
160.11  school, or an approved alternative program that has an 
160.12  independent study component offered by a charter school, under 
160.13  the supervision of a teacher with a Minnesota license, must be 
160.14  paid for each hour of completed coursework needed for grade 
160.15  progression, credit, or alignment with state graduation 
160.16  standards.  For purposes of this section, an eligible pupil is a 
160.17  public school pupil concurrently enrolled in the district or 
160.18  charter school or concurrently enrolled in another district or 
160.19  charter school and participating in the program by agreement 
160.20  with the district or charter school of enrollment.  The course 
160.21  of study must be approved by the commissioner of children, 
160.22  families, and learning for alignment with the state graduation 
160.23  standards and compliance with Minnesota Statutes, chapter 125A.  
160.24  An alternative program that has an independent study component 
160.25  must also meet the requirements of Minnesota Statutes, section 
160.26  126C.05, subdivision 15, paragraph (b), clauses (i) and (iv).  
160.27  Average daily membership for a pupil shall equal the number of 
160.28  hours of coursework completed divided by the number of hours 
160.29  required for a full-time student in the district or charter 
160.30  school.  Pupils enrolled in the program must not be counted as 
160.31  more than 1.0 pupil in average daily membership.  A school 
160.32  district or charter school is not required to provide a pupil 
160.33  enrolled in the program with access to a computer or to the 
160.34  Internet. 
160.35     (b) Notwithstanding paragraph (a), pupils enrolled in a 
160.36  Web-based public alternative program approved by the 
161.1   commissioner before June 1, 2001, are not required to be 
161.2   concurrently enrolled in the district and may be counted as more 
161.3   than 1.0 pupil in average daily membership under Minnesota 
161.4   Statutes, section 126C.05, subdivision 15. 
161.5      (c) Notwithstanding paragraph (a), pupils enrolled in a 
161.6   charter school with a Web-based program, approved by the 
161.7   commissioner before June 1, 2001, are not required to be 
161.8   concurrently enrolled in the charter school. 
161.9      (d) Notwithstanding paragraph (a), pupils enrolled in a 
161.10  charter school with an alternative program that has an 
161.11  independent study component, approved by the commissioner for 
161.12  fiscal year 2001, may be counted as more than 1.0 pupil in 
161.13  average daily membership under Minnesota Statutes, section 
161.14  126C.05, subdivision 15, paragraph (b), clause (iii). 
161.15     Subd. 2.  [REIMBURSEMENT.] Notwithstanding Minnesota 
161.16  Statutes, section 126C.19, subdivision 4, for fiscal year 2002 
161.17  only, the commissioner shall establish a process for providing 
161.18  additional revenue to school districts or charter schools for: 
161.19     (1) an eligible pupil in an approved interactive Web-based 
161.20  program under subdivision 1, paragraph (a), that may be counted 
161.21  as more than 1.0 pupil in average daily membership; or 
161.22     (2) a nonpublic pupil in an approved interactive Web-based 
161.23  program in a public school under subdivision 1, paragraph (a).  
161.24  The commissioner may award additional general education revenue 
161.25  to school districts and charter schools up to the amount 
161.26  appropriated for this section.  The amount of additional revenue 
161.27  awarded to a school district under this section shall be based 
161.28  on additional pupils in average daily membership that are 
161.29  generated according to this subdivision with the prior approval 
161.30  from the commissioner.  The commissioner shall establish a 
161.31  process to prioritize the awards under this subdivision based on 
161.32  the estimated number of students the school district or charter 
161.33  school expects to serve under this section. 
161.34     <b>[EFFECTIVE DATE.]</b> This section is effective for revenue for 
161.35  fiscal year 2002 only. 
161.36     Sec. 26.  [BUILDING REMODELING.] 
162.1      If the commissioner of human services uses a portion of its 
162.2   appropriation for repairs and betterments to remodel building 6 
162.3   at the Brainerd regional human services center to make the 
162.4   structure suitable for school programs, the Brainerd school 
162.5   district may levy an amount equal to district appropriations for 
162.6   taxes payable in 2002 and to reimburse the commissioner for 
162.7   these remodeling costs. 
162.8      Sec. 27.  [APPROPRIATIONS.] 
162.9      Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
162.10  LEARNING.] The sums indicated in this section are appropriated 
162.11  from the general fund to the department of children, families, 
162.12  and learning for the fiscal years designated.  
162.13     Subd. 2.  [HEALTH AND SAFETY AID.] For health and safety 
162.14  aid according to Minnesota Statutes, section 123B.57, 
162.15  subdivision 5: 
162.16       $14,980,000    .....     2002 
162.17       $14,550,000    .....     2003 
162.18     The 2002 appropriation includes $1,480,000 for 2001 and 
162.19  $13,500,000 for 2002. 
162.20     The 2003 appropriation includes $1,500,000 for 2002 and 
162.21  $13,050,000 for 2003. 
162.22     Subd. 3.  [DEBT SERVICE AID.] For debt service aid 
162.23  according to Minnesota Statutes, section 123B.53, subdivision 6: 
162.24       $25,989,000    .....     2002 
162.25       $35,523,000    .....     2003 
162.26     The 2002 appropriation includes $2,890,000 for 2001 and 
162.27  $23,099,000 for 2002. 
162.28     The 2003 appropriation includes $2,567,000 for 2002 and 
162.29  $32,956,000 for 2003. 
162.30     Subd. 4.  [INTERACTIVE TELEVISION (ITV) AID.] For 
162.31  interactive television (ITV) aid under Minnesota Statutes, 
162.32  section 126C.40, subdivision 4: 
162.33       $1,418,000     .....     2002 
162.34       $  129,000     .....     2003 
162.35     The 2002 appropriation includes $260,000 for 2001 and 
162.36  $1,158,000 for 2002. 
163.1      The 2003 appropriation includes $129,000 for 2002 and $0 
163.2   for 2003. 
163.3      Subd. 5.  [ALTERNATIVE FACILITIES BONDING AID.] For 
163.4   alternative facilities bonding aid, according to Minnesota 
163.5   Statutes, section 123B.59, subdivision 1: 
163.6        $19,279,000    .....     2002 
163.7        $19,287,000    .....     2003 
163.8      The 2002 appropriation includes $1,921,000 for 2001 and 
163.9   $17,358,000 for 2002. 
163.10     The 2003 appropriation includes $1,929,000 for 2002 and 
163.11  $17,358,000 for 2003. 
163.12     Subd. 6.  [TELECOMMUNICATION ACCESS COST REVENUE.] For 
163.13  telecommunication access cost revenue under Minnesota Statutes, 
163.14  section 125B.25: 
163.15       $15,387,000    .....     2002 
163.16       $ 1,565,000    .....     2003 
163.17     The 2002 appropriation includes $1,300,000 for 2001 and 
163.18  $14,087,000 for 2002. 
163.19     The 2003 appropriation includes $1,565,000 for 2002 and $0 
163.20  for 2003. 
163.21     If the appropriation amount is insufficient, the 
163.22  commissioner shall reduce the reimbursement rate in Minnesota 
163.23  Statutes, section 125B.25, subdivisions 5 and 6, and the revenue 
163.24  for the 2001-2002 school year shall be prorated.  The 
163.25  reimbursement rate shall not exceed 100 percent. 
163.26     Subd. 7.  [FLOODS; DECLINING PUPIL AID.] For declining 
163.27  pupil aid under Laws 1999, chapter 241, article 4, section 23: 
163.28       $  829,000     .....     2002 
163.29       $   92,000     .....     2003 
163.30     The 2002 appropriation includes $0 for 2001 and $829,000 
163.31  for 2002. 
163.32     The 2003 appropriation includes $92,000 for 2002 and $0 for 
163.33  2003.  
163.34     Subd. 8.  [ELECTRONIC LIBRARY FOR MINNESOTA.] For statewide 
163.35  licenses to on-line databases selected in cooperation with the 
163.36  higher education services office for school media centers, 
164.1   public libraries, state government agency libraries, and public 
164.2   or private college or university libraries: 
164.3        $400,000     .....     2002 
164.4        $400,000     .....     2003 
164.5      Any balance in the first year does not cancel but is 
164.6   available in the second year. 
164.7      Subd. 9.  [REIMBURSEMENT FOR WEB-BASED AND INDEPENDENT 
164.8   STUDY COURSES.] For grants to school districts and charter 
164.9   schools for additional pupils taking on-line courses according 
164.10  to section 25: 
164.11       $100,000     .....     2002 
164.12     Sec. 28.  [REPEALER.] 
164.13     Minnesota Statutes 2000, section 123B.71, subdivisions 3 
164.14  and 10, are repealed. 
164.15                             ARTICLE 5 
164.16          NUTRITION; SCHOOL ACCOUNTING; AND OTHER PROGRAMS 
164.17     Section 1.  Minnesota Statutes 2000, section 123B.80, 
164.18  subdivision 1, is amended to read: 
164.19     Subdivision 1.  [COMMISSIONER'S AUTHORIZATION.] The 
164.20  commissioner may authorize a board to transfer money from any 
164.21  fund or account other than the debt redemption fund to another 
164.22  fund or account according to this section. 
164.23     Sec. 2.  [124D.1156] [FAST BREAK TO LEARNING BREAKFAST 
164.24  PROGRAM.] 
164.25     Subdivision 1.  [ELIGIBILITY.] The commissioner shall 
164.26  provide funding to the 41 targeted breakfast program grant 
164.27  recipients under Laws 1997, First Special Session chapter 4, 
164.28  article 6, section 19, and then to public or nonpublic 
164.29  elementary schools that participate in the federal School 
164.30  Breakfast and Lunch Programs where at least 33 percent of the 
164.31  lunches served to children during the second preceding school 
164.32  year were provided free or at a reduced price.  Schools shall 
164.33  not charge student households for fast break to learning meals.  
164.34  Schools shall encourage all children to eat a nutritious 
164.35  breakfast, either at home or at school, and shall work to 
164.36  eliminate barriers to participation at school such as inadequate 
165.1   facilities and transportation. 
165.2      Subd. 2.  [PROGRAM.] The fast break to learning school 
165.3   breakfast program enables schools participating in the federal 
165.4   School Breakfast and Lunch Programs to cover the costs for 
165.5   school breakfast without charging student households. 
165.6      Subd. 3.  [PROGRAM REIMBURSEMENT.] State funds are provided 
165.7   to reimburse fast break to learning school breakfasts.  Each 
165.8   school year, the state must reimburse schools for the difference 
165.9   between the per meal federal rate of reimbursement and the per 
165.10  meal state average cost.  Meals that are reimbursed at a federal 
165.11  rate that is equal to or higher than the state average cost do 
165.12  not qualify for fast break to learning funds.  Schools must use 
165.13  the funds to provide school breakfast to school children every 
165.14  day school is in session. 
165.15     Sec. 3.  [124D.1195] [COMMODITY DONATED FOOD REVOLVING 
165.16  FUND.] 
165.17     A revolving fund is established for the purpose of 
165.18  depositing cash received for commodity donated foods that have 
165.19  been lost, damaged, recalled, or diverted for processing.  The 
165.20  state shall use the fund to issue payments for the value of the 
165.21  lost, damaged, recalled, or diverted commodity donated foods and 
165.22  related costs. 
165.23     Sec. 4.  Minnesota Statutes 2000, section 127A.41, 
165.24  subdivision 8, is amended to read: 
165.25     Subd. 8.  [APPROPRIATION TRANSFERS.] (a) If a direct 
165.26  appropriation from the general fund to the department for any 
165.27  education aid or grant authorized in this chapter and chapters 
165.28  122A, 123A, 123B, 124D, 125A, 126C, and 134, excluding 
165.29  appropriations under sections 124D.135, 124D.16, 124D.20, 
165.30  124D.21, 124D.22, 124D.52, 124D.53 124D.531, 124D.54, 124D.55, 
165.31  and 124D.56, exceeds the amount required, the commissioner may 
165.32  transfer the excess to any education aid or grant appropriation 
165.33  that is insufficient.  However, section 126C.20 applies to a 
165.34  deficiency in the direct appropriation for general education 
165.35  aid.  Excess appropriations must be allocated proportionately 
165.36  among aids or grants that have insufficient appropriations.  The 
166.1   commissioner of finance shall make the necessary transfers among 
166.2   appropriations according to the determinations of the 
166.3   commissioner.  If the amount of the direct appropriation for the 
166.4   aid or grant plus the amount transferred according to this 
166.5   subdivision is insufficient, the commissioner shall prorate the 
166.6   available amount among eligible districts.  The state is not 
166.7   obligated for any additional amounts. 
166.8      (b) Transfers for aids paid under section 127A.45, 
166.9   subdivisions 12, paragraph (a), 12a, paragraph (a), and 13 shall 
166.10  be made during the fiscal year after the fiscal year of the 
166.11  entitlement.  Transfers for aids paid under section 127A.45, 
166.12  subdivisions 11, 12, paragraph (b), and 12a, paragraph (b), 
166.13  shall be made during the fiscal year of the appropriation. 
166.14     Sec. 5.  Minnesota Statutes 2000, section 127A.42, is 
166.15  amended to read: 
166.16     127A.42 [REDUCTION OF AID FOR VIOLATION OF LAW.] 
166.17     Subdivision 1.  [STATE AIDS.] The amount of special state 
166.18  aids to which a district is entitled shall be the amount 
166.19  computed according to statutes.  The annual state aid 
166.20  certificate made by the commissioner to the commissioner of 
166.21  finance shall show the amount of any reductions made. 
166.22     Subd. 2.  [VIOLATIONS OF LAW.] The commissioner shall may 
166.23  reduce or withhold the district's special state aid for any 
166.24  school year whenever the board of the district authorizes or 
166.25  permits violations of law within the district by: 
166.26     (1) employing a teacher who does not hold a valid teaching 
166.27  license or permit in a public school; 
166.28     (2) noncompliance with a mandatory rule of general 
166.29  application promulgated by the commissioner in accordance with 
166.30  statute, unless special circumstances make enforcement 
166.31  inequitable, impose an extraordinary hardship on the district, 
166.32  or the rule is contrary to the district's best interests; 
166.33     (3) the district's continued performance of a contract made 
166.34  for the rental of rooms or buildings for school purposes or for 
166.35  the rental of any facility owned or operated by or under the 
166.36  direction of any private organization, if the contract has been 
167.1   disapproved, the time for review of the determination of 
167.2   disapproval has expired, and no proceeding for review is 
167.3   pending; 
167.4      (4) any practice which is a violation of sections 1 and 2 
167.5   of article 13 of the Constitution of the state of Minnesota; 
167.6      (5) failure to reasonably provide for a resident pupil's 
167.7   school attendance under Minnesota Statutes; or 
167.8      (6) noncompliance with state laws prohibiting 
167.9   discrimination because of race, color, creed, religion, national 
167.10  origin, sex, age, marital status, status with regard to public 
167.11  assistance or disability, as defined in section 363.03; or 
167.12     (7) using funds contrary to the statutory purpose of the 
167.13  funds. 
167.14  The reduction or withholding must be made in the amount and upon 
167.15  the procedure provided in this section or, in the case of the 
167.16  violation stated in clause (1), upon the procedure provided in 
167.17  section 127A.43.  
167.18     Subd. 3.  [ASSURANCE OF COMPLIANCE.] (a) After consultation 
167.19  with the commissioner of human rights, the commissioner of 
167.20  children, families, and learning shall adopt rules in 
167.21  conformance with chapter 14.  The rules must direct districts to 
167.22  file with the commissioner of children, families, and learning 
167.23  assurances of compliance with state and federal laws prohibiting 
167.24  discrimination.  The assurances must be provided in a form and 
167.25  manner prescribed by the commissioner.  
167.26     (b) If it appears that one or more violations of the 
167.27  Minnesota Human Rights Act are occurring in a district, the 
167.28  commissioner of human rights shall notify the commissioner of 
167.29  the violations, and the commissioner of children, families, and 
167.30  learning may then proceed pursuant to subdivision 4. 
167.31     Subd. 4.  [NOTICE TO BOARD.] When it appears that an 
167.32  enumerated a violation is occurring in a district, the 
167.33  commissioner shall notify the board of that district in 
167.34  writing.  The notice must specify the violations, set a 
167.35  reasonable time within which the district must correct the 
167.36  specified violations, describe the correction required, and 
168.1   advise that if the correction is not made within the time 
168.2   allowed, special state aids to the district will be reduced or 
168.3   withheld.  The time allowed for correction may be extended by 
168.4   the commissioner if there is reasonable ground therefor.  
168.5      Subd. 5.  [DISPUTE VIOLATIONS; HEARING.] The board to which 
168.6   such notice is given may, by a majority vote of the whole board, 
168.7   decide to dispute that the specified violation exists or that 
168.8   the time allowed is reasonable or the correction specified is 
168.9   correct, or that the commissioner may reduce or withhold aids.  
168.10  The board must give the commissioner written notice of the 
168.11  decision.  If the commissioner, after further investigation as 
168.12  the commissioner deems necessary, adheres to the previous 
168.13  notice, the commissioner shall notify the school board of its 
168.14  decision.  If the commissioner, after further investigation as 
168.15  the commissioner deems necessary, adheres to the previous 
168.16  notice, the board shall be entitled to a hearing by the 
168.17  commissioner under this subdivision and notwithstanding chapter 
168.18  14.  The commissioner must set a hearing time and place and the 
168.19  board of the district must be given notice by mail.  The 
168.20  hearings must be designed to give a full and fair hearing and 
168.21  permit interested parties an opportunity to produce evidence 
168.22  relating to the issues involved.  A stenographic record must be 
168.23  made of all testimony given and other proceedings during the 
168.24  hearing.  If practicable, rules governing admission of evidence 
168.25  in courts shall apply to the hearing.  The final decision of the 
168.26  commissioner must be in writing and the controlling facts upon 
168.27  which the decision is made must be stated in sufficient detail 
168.28  to apprise the parties and the reviewing court of the basis and 
168.29  reason for the decision. The decision must be confined to 
168.30  whether any of the specified violations existed at the date of 
168.31  the commissioner's first notice, whether the violations were 
168.32  corrected within the time permitted, whether the violations 
168.33  require withholding or reduction of the state aids under this 
168.34  section, and in what amount.  
168.35     Subd. 6.  [VIOLATION; AID REDUCTION OR WITHHOLDING.] The 
168.36  commissioner shall not reduce state aids payable to the district 
169.1   if the violation specified is corrected within the time 
169.2   permitted, or if the commissioner on being notified of the 
169.3   district board's decision to dispute decides the violation does 
169.4   not exist, or if the commissioner decides after hearing no 
169.5   violation specified in the commissioner's notice existed at the 
169.6   time of the notice, or that the violations were corrected within 
169.7   the time permitted.  Otherwise state aids payable to the 
169.8   district for the year in which the violation occurred shall may 
169.9   be reduced or withheld as follows:  The total amount of state 
169.10  aids to which the district may be entitled shall be reduced in 
169.11  the proportion that the period during which a specified 
169.12  violation continued, computed from the last day of the time 
169.13  permitted for correction, bears to the total number of days 
169.14  school is held in the district during the year in which a 
169.15  violation exists, multiplied by up to 60 percent of the basic 
169.16  revenue, as defined in section 126C.10, subdivision 2, of the 
169.17  district for that year. 
169.18     Subd. 7.  [REDUCTION IN AIDS PAYABLE.] Reductions in aid 
169.19  under this section and sections 127A.41 and 127A.43 must be from 
169.20  general education aid.  If there is not sufficient general 
169.21  education aid remaining to be paid for the school year in which 
169.22  the violation occurred, the reduction shall be from the other 
169.23  aids listed in section 127A.44, subdivision 2, that are payable 
169.24  to the district for that year in the order in which the aids are 
169.25  listed in section 127A.44, subdivision 2.  If there is not a 
169.26  sufficient amount of state aids remaining payable to the 
169.27  district for the school year in which the violation occurred to 
169.28  permit the full amount of reduction required, that part of the 
169.29  required reduction not taken from that school year's aids will 
169.30  be taken from the state aids payable to the district for the 
169.31  next school year, and the reduction will be made from the 
169.32  various aids payable for the next year in the order above 
169.33  specified. 
169.34     Subd. 8a.  [APPEAL.] A final decision of the commissioner 
169.35  under this section may be appealed in accordance with section 
169.36  480A.06, subdivision 3. 
170.1      Subd. 9.  [NOTICE TO DISTRICT.] Any notice given to the 
170.2   board of a district will be deemed given when a copy thereof is 
170.3   mailed, registered, to the superintendent of the district, if 
170.4   there is a superintendent, and to the clerk of the board of the 
170.5   district.  If it is shown that neither the superintendent nor 
170.6   the clerk in fact received such notice in the ordinary course of 
170.7   mail, then the time for correction will be accordingly extended 
170.8   by the commissioner so that a reasonable time will be allowed 
170.9   from actual receipt of notice for correction.  If notice is sent 
170.10  by the commissioner with respect to a violation which is 
170.11  continued by the district in a succeeding year, no separate 
170.12  notice for that violation for the succeeding year will be 
170.13  required.  Proceedings initiated by such notice shall include 
170.14  any continuing violation notwithstanding that a part thereof 
170.15  occurs in a year different from the year in which it started.  
170.16  The commissioner may require reasonable proof of the time that a 
170.17  violation ceased for the determination of the amount of aids to 
170.18  be reduced or withheld.  Costs and disbursements of the review 
170.19  by the district court court of appeals, exclusive of those 
170.20  incurred in the administrative proceedings, may be taxed against 
170.21  the losing party and in the event taxed against the state must 
170.22  be paid from the appropriations made to the department for the 
170.23  payment of special state aids. 
170.24     Sec. 6.  Minnesota Statutes 2000, section 127A.45, 
170.25  subdivision 11, is amended to read: 
170.26     Subd. 11.  [PAYMENT PERCENTAGE FOR REIMBURSEMENT AIDS.] One 
170.27  hundred percent of the aid for the previous fiscal year must be 
170.28  paid in the current year for the following aids:  special 
170.29  education special pupil aid according to section 125A.75, 
170.30  subdivision 3, for the previous fiscal year must be paid in the 
170.31  current year aid for litigation costs according to section 
170.32  125A.75, subdivision 8, aid for court-placed special education 
170.33  expenses according to section 125A.79, subdivision 4, and aid 
170.34  for special education out-of-state tuition according to section 
170.35  125A.79, subdivision 8. 
170.36     Sec. 7.  Minnesota Statutes 2000, section 127A.45, 
171.1   subdivision 12, is amended to read: 
171.2      Subd. 12.  [PAYMENT PERCENTAGE FOR CERTAIN AIDS.] (a) One 
171.3   hundred percent of the aid for the current fiscal year must be 
171.4   paid for the following aids:  reimbursement for enrollment 
171.5   options transportation to post-secondary institutions, according 
171.6   to section sections 124D.03, subdivision 8, 124D.09, subdivision 
171.7   22, and 124D.10; aid for the program for adults with 
171.8   disabilities, according to section 124D.56, subdivision 2; 
171.9   school lunch aid, according to section 124D.111; hearing 
171.10  impaired support services aid, according to section 124D.57; and 
171.11  Indian post-secondary preparation grants according to section 
171.12  124D.85; integration grants according to Laws 1989, chapter 329, 
171.13  article 8, section 14, subdivision 3; and debt service aid 
171.14  according to section 123B.53, subdivision 6. 
171.15     (b) One hundred percent of the aid for the current fiscal 
171.16  year, based on enrollment in the previous year, must be paid for 
171.17  the first grade preparedness program according to section 
171.18  124D.081. 
171.19     Sec. 8.  Minnesota Statutes 2000, section 127A.45, is 
171.20  amended by adding a subdivision to read: 
171.21     Subd. 14a.  [STATE NUTRITION PROGRAMS.] Notwithstanding 
171.22  subdivision 3, the state shall pay 100 percent of the aid for 
171.23  the current year according to sections 124D.111, 124D.115, and 
171.24  124D.118 and 90 percent of the aid for the current year 
171.25  according to section 124D.1156 based on submitted monthly 
171.26  vouchers showing meals and milk served.  The remaining ten 
171.27  percent according to section 124D.1156 shall be paid by October 
171.28  30 of the following fiscal year. 
171.29     Sec. 9.  Minnesota Statutes 2000, section 475.61, 
171.30  subdivision 3, is amended to read: 
171.31     Subd. 3.  [IRREVOCABILITY.] (a) Tax levies so made and 
171.32  filed shall be irrevocable, except as provided in this 
171.33  subdivision. 
171.34     (b) For purposes of this subdivision, "excess debt 
171.35  redemption fund balance" means the greater of zero or the 
171.36  balance in the district's debt redemption fund as of June 30 of 
172.1   the fiscal year ending in the year before the year the levy is 
172.2   certified, minus any debt redemption fund balance attributable 
172.3   to refunding of existing bonds, minus the amount of the levy 
172.4   reduction for the current year and the prior year under 
172.5   paragraphs (e) and (f), minus five percent of the district's 
172.6   required debt service levy for the next year. 
172.7      (c) By July 15 each year, a district shall report to the 
172.8   commissioner of children, families, and learning the amount of 
172.9   the districts' debt redemption fund balance as of June 30 of the 
172.10  prior year attributable to refunding of existing bonds.  
172.11     (d) By August 15 each year, the commissioner shall 
172.12  determine the excess debt redemption fund balance for each 
172.13  school district, and shall certify the amount of the excess 
172.14  balance to the school district superintendent.  
172.15     (e) In each year when there is on hand any a district has 
172.16  an excess amount in the debt redemption fund of a school 
172.17  district at the time the district makes its property tax levies, 
172.18  the amount of the excess shall be certified by the school board 
172.19  to the commissioner. balance, the commissioner shall report the 
172.20  amount of the excess to the county auditor and the auditor shall 
172.21  reduce the tax levy otherwise to be included in the rolls next 
172.22  prepared by the amount certified.  The commissioner shall 
172.23  prescribe the form and calculation to be used in computing the 
172.24  excess amount.  
172.25     (f) The school board may, with the approval of the 
172.26  commissioner, retain all or part of the excess amount balance if 
172.27  it is necessary to ensure the prompt and full payment of the its 
172.28  obligations and any call premium on the its obligations, or will 
172.29  be used for redemption of the its obligations in accordance with 
172.30  their terms, or to level out the debt service tax rate, 
172.31  excluding the debt excess adjustment, for its obligations over 
172.32  the next two years.  A school district requesting authority to 
172.33  retain all or part of the excess balance shall provide written 
172.34  documentation to the commissioner describing the rationale for 
172.35  its request by September 15 including the issuance of new 
172.36  obligations within the next year or the refunding of existing 
173.1   obligations.  A school district that retains an excess may 
173.2   request to transfer the excess to its operating capital account 
173.3   in the general fund under section 123B.80.  The school board 
173.4   may, with the approval of the commissioner, specify a tax levy 
173.5   in a higher amount if necessary because of anticipated tax 
173.6   delinquency or for cash flow needs to meet the required payments 
173.7   from the debt redemption fund.  
173.8      (g) If the governing body, including the governing body of 
173.9   a school district, in any year makes an irrevocable 
173.10  appropriation to the debt service fund of money actually on hand 
173.11  or if there is on hand any excess amount in the debt service 
173.12  fund, the recording officer may certify to the county auditor 
173.13  the fact and amount thereof and the auditor shall reduce by the 
173.14  amount so certified the amount otherwise to be included in the 
173.15  rolls next thereafter prepared. 
173.16     Sec. 10.  [FUND TRANSFERS.] 
173.17     Subdivision 1.  [LAPORTE.] Notwithstanding Minnesota 
173.18  Statutes, section 123B.79 or 123B.80, on June 30, 2001, 
173.19  independent school district No. 306, LaPorte, may permanently 
173.20  transfer up to $141,000 from the bus purchase account in its 
173.21  transportation fund to its capital expenditure fund without 
173.22  making a levy reduction. 
173.23     Subd. 2.  [LAC QUI PARLE VALLEY.] Notwithstanding Minnesota 
173.24  Statutes, sections 123B.58, 123B.79, or 123B.80, on June 30, 
173.25  2001, independent school district No. 2853, Lac qui Parle 
173.26  Valley, may permanently transfer up to $250,000 from its 
173.27  reserved account for disabled accessibility to its reserved 
173.28  account for operating capital in the general fund.  This 
173.29  transfer is contingent upon the school district demonstrating to 
173.30  the commissioner's satisfaction that the district's school 
173.31  buildings are accessible to students or employees with 
173.32  disabilities. 
173.33     Subd. 3.  [CLEVELAND.] Notwithstanding Minnesota Statutes, 
173.34  section 123B.79 or 123B.80, on June 30, 2001, independent school 
173.35  district No. 391, Cleveland, may permanently transfer up to 
173.36  $107,000 from its reserved operating capital account in its 
174.1   general fund to the undesignated fund balance. 
174.2      Subd. 4.  [LEWISTON.] (a) Notwithstanding Minnesota 
174.3   Statutes, section 123B.79 or 123B.80, for calendar years 2002 
174.4   through 2012, on June 30 of each year, independent school 
174.5   district No. 857, Lewiston, may permanently transfer up to 
174.6   $175,000 from its capital accounts in its general fund or from 
174.7   its unrestricted general fund to the debt redemption fund. 
174.8      (b) The eligible debt service revenue and debt service 
174.9   equalization aid, if any, for independent school district No. 
174.10  857, Lewiston, must be determined prior to the annual transfer 
174.11  of general fund revenue authorized in subdivision 1. 
174.12     Subd. 5.  [RUSSELL.] Notwithstanding Minnesota Statutes, 
174.13  section 123B.79 or 123B.80, on June 30, 2001, independent school 
174.14  district No. 418, Russell, may permanently transfer up to 
174.15  $160,000 from its reserved operating capital account in its 
174.16  general fund to the undesignated fund balance. 
174.17     Subd. 6.  [MOUNTAIN LAKE.] Notwithstanding Minnesota 
174.18  Statutes, section 123B.79 or 123B.80, on June 30, 2001, 
174.19  independent school district No. 173, Mountain Lake, may 
174.20  permanently transfer up to $300,000 from its reserved capital 
174.21  accounts in its general fund to the undesignated fund balance. 
174.22     Subd. 7.  [ISLE.] (a) Notwithstanding Minnesota Statutes, 
174.23  section 123B.79 or 123B.80, on June 30, 2001, upon approval of 
174.24  the commissioner of children, families, and learning, 
174.25  independent school district No. 473, Isle, may permanently 
174.26  transfer up to $175,000 from its reserved account for disability 
174.27  access to its undesignated general fund balance.  
174.28     (b) Prior to making the fund transfer, independent school 
174.29  district No. 473, Isle, must demonstrate to the commissioner's 
174.30  satisfaction that the district's school buildings are accessible 
174.31  to students or employees with disabilities.  
174.32     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
174.33  following final enactment.  
174.34     Sec. 11.  [OPERATING CAPITAL ACCOUNT DEFICIT; EXCEPTION.] 
174.35     Notwithstanding Minnesota Statutes, section 123B.78, 
174.36  subdivision 5, the commissioner of children, families, and 
175.1   learning may allow independent school district No. 492, Austin, 
175.2   to incur a deficit of up to $4,200,000 in its reserve for 
175.3   capital operating account for the Westcott Field improvement 
175.4   project.  The deficit must be eliminated by June 30, 2011.  Any 
175.5   donations or contributions received by the district for the 
175.6   Westcott Field improvement project must be deposited in the 
175.7   reserve for capital operating account to repay the deficit.  The 
175.8   commissioner of children, families, and learning must certify 
175.9   the financial viability of the Westcott Field improvement 
175.10  project prior to approving authority under this section. 
175.11     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
175.12  following final enactment. 
175.13     Sec. 12.  [SCHOOL DISTRICT FORMULA ADJUSTMENTS.] 
175.14     Subdivision 1.  [TAX RATE ADJUSTMENT.] The commissioner of 
175.15  children, families, and learning must adjust each tax rate 
175.16  established under Minnesota Statutes, chapters 120A to 127A, by 
175.17  multiplying the rate by the ratio of the statewide net tax 
175.18  capacity as calculated using the class rates in effect for 
175.19  assessment year 2000 to the statewide total net tax capacity as 
175.20  calculated using the class rates in effect for assessment year 
175.21  2001, in both cases using taxable market values for assessment 
175.22  year 2000. 
175.23     Subd. 2.  [EQUALIZING FACTORS.] The commissioner of 
175.24  children, families, and learning must adjust each equalizing 
175.25  factor based upon adjusted net tax capacity per actual pupil 
175.26  unit established under Minnesota Statutes, chapters 120A to 
175.27  127A, by multiplying the equalizing factor by the ratio of the 
175.28  statewide net tax capacity as calculated using the class rates 
175.29  in effect for assessment year 2001 to the statewide total net 
175.30  tax capacity as calculated using the class rates in effect for 
175.31  assessment year 2000, in both cases using taxable market values 
175.32  for assessment year 2000. 
175.33     Subd. 3.  [DEBT SERVICE TAX RATES AND EQUALIZING 
175.34  FACTORS.] The provisions in subdivisions 1 and 2 do not apply to 
175.35  the equalizing factors and tax rates of the debt service 
175.36  equalization aid program under Minnesota Statutes, section 
176.1   123B.53. 
176.2      <b>[EFFECTIVE DATE.]</b> This section is effective for aid and 
176.3   levy calculations for fiscal year 2003 and subsequent years. 
176.4      Sec. 13.  [APPROPRIATIONS.] 
176.5      Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
176.6   LEARNING.] The sums indicated in this section are appropriated 
176.7   from the general fund to the department of children, families, 
176.8   and learning for the fiscal years designated. 
176.9      Subd. 2.  [SCHOOL LUNCH.] (a) For school lunch aid 
176.10  according to Minnesota Statutes, section 124D.111, and Code of 
176.11  Federal Regulations, title 7, section 210.17, and for school 
176.12  milk aid according to Minnesota Statutes, section 124D.118:  
176.13       $8,710,000     .....     2002 
176.14       $8,950,000     .....     2003 
176.15     (b) Not more than $800,000 of the amount appropriated each 
176.16  year may be used for school milk aid. 
176.17     Subd. 3.  [SCHOOL BREAKFAST.] For school breakfast aid 
176.18  under Minnesota Statutes, section 124D.115: 
176.19       $640,000       .....     2002 
176.20       $700,000       .....     2003 
176.21     Subd. 4.  [SUMMER FOOD SERVICE REPLACEMENT AID.] For summer 
176.22  food service replacement aid under Minnesota Statutes, section 
176.23  124D.119: 
176.24       $150,000       .....     2002 
176.25       $150,000       .....     2003 
176.26     Subd. 5.  [FAST BREAK TO LEARNING GRANTS.] For fast break 
176.27  to learning grants under Minnesota Statutes, section 124D.1156: 
176.28       $2,446,000     .....     2002 
176.29       $2,839,000     .....     2003 
176.30     The 2002 appropriation includes $0 for 2001 and $2,446,000 
176.31  for 2002. 
176.32     The 2003 appropriation includes $272,000 for 2002 and 
176.33  $2,567,000 for 2003. 
176.34     Sec. 14.  [REPEALER.] 
176.35     Minnesota Statutes 2000, section 124D.1155, is repealed. 
176.36                             ARTICLE 6
177.1                             DEFICIENCIES
177.2      Section 1.  [APPROPRIATIONS; DEFICIENCIES.] 
177.3      Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
177.4   LEARNING.] Unless otherwise indicated, the sums indicated in 
177.5   this section are appropriated from the general fund to the 
177.6   department of children, families, and learning for the fiscal 
177.7   years designated for the funding of programs subject to 
177.8   state-aid deficiencies in fiscal year 2001.  These 
177.9   appropriations are in addition to any other appropriations for 
177.10  those purposes. 
177.11     Subd. 2.  [GENERAL EDUCATION AID.] For general education 
177.12  aid: 
177.13       $19,754,000    .....     2001 
177.14     Subd. 3.  [SECONDARY VOCATIONAL AID.] For secondary 
177.15  vocational aid: 
177.16       $    6,000     .....     2001 
177.17     Subd. 4.  [SPECIAL EDUCATION EXCESS COST AID.] For special 
177.18  education excess cost aid: 
177.19       $6,740,000     .....     2001 
177.20     Subd. 5.  [HEALTH AND SAFETY AID.] For health and safety 
177.21  aid: 
177.22       $  273,000     .....     2001 
177.23     Subd. 6.  [INTERACTIVE TELEVISION AID.] For interactive 
177.24  television aid: 
177.25       $    6,000     .....     2001 
177.26     Subd. 7.  [ALTERNATIVE FACILITIES BONDING AID.] For 
177.27  alternative facilities bonding aid: 
177.28       $   68,000     .....     2001 
177.29                             ARTICLE 7 
177.30                           STATE AGENCIES 
177.31     Section 1.  Minnesota Statutes 2000, section 122A.162, is 
177.32  amended to read: 
177.33     122A.162 [LICENSURE RULES.] 
177.34     The commissioner may make rules relating to licensure of 
177.35  school personnel not licensed by the board of teaching or board 
177.36  of school administrators. 
178.1      <b>[EFFECTIVE DATE.]</b> This section is effective September 1, 
178.2   2001. 
178.3      Sec. 2.  Minnesota Statutes 2000, section 122A.163, is 
178.4   amended to read: 
178.5      122A.163 [TEACHER RULE VARIANCES; COMMISSIONER.] 
178.6      Notwithstanding any law to the contrary, and only upon 
178.7   receiving the agreement of the state board of teaching or board 
178.8   of school administrators, whichever has jurisdiction over the 
178.9   licensure, the commissioner of children, families, and learning 
178.10  may grant a variance to rules governing licensure of teachers 
178.11  for those teachers persons licensed by the board of teaching or 
178.12  board of school administrators, whichever has jurisdiction.  The 
178.13  commissioner may grant a variance, without the agreement of the 
178.14  board of teaching, to rules adopted by the commissioner 
178.15  governing licensure of teachers for those teachers the 
178.16  commissioner licenses. 
178.17     <b>[EFFECTIVE DATE.]</b> This section is effective September 1, 
178.18  2001. 
178.19     Sec. 3.  Minnesota Statutes 2000, section 122A.18, 
178.20  subdivision 1, is amended to read: 
178.21     Subdivision 1.  [AUTHORITY TO LICENSE.] (a) The board of 
178.22  teaching must license teachers, as defined in section 122A.15, 
178.23  subdivision 1, except for supervisory personnel, as defined in 
178.24  section 122A.15, subdivision 2. 
178.25     (b) The commissioner of children, families, and learning 
178.26  board of school administrators must license supervisory 
178.27  personnel as defined in section 122A.15, subdivision 2, except 
178.28  for athletic coaches.  
178.29     (c) Licenses under the jurisdiction of the board of 
178.30  teaching, the board of school administrators, and the 
178.31  commissioner of children, families, and learning must be issued 
178.32  through the licensing section of the department.  
178.33     <b>[EFFECTIVE DATE.]</b> This section is effective September 1, 
178.34  2001. 
178.35     Sec. 4.  Minnesota Statutes 2000, section 122A.18, 
178.36  subdivision 4, is amended to read: 
179.1      Subd. 4.  [EXPIRATION AND RENEWAL.] (a) Each license the 
179.2   department of children, families, and learning issues through 
179.3   its licensing section must bear the date of issue.  Licenses 
179.4   must expire and be renewed according to the respective rules the 
179.5   board of teaching, the board of school administrators, or the 
179.6   commissioner of children, families, and learning adopts.  
179.7   Requirements for renewing a license must include showing 
179.8   satisfactory evidence of successful teaching or administrative 
179.9   experience for at least one school year during the period 
179.10  covered by the license in grades or subjects for which the 
179.11  license is valid or completing such additional preparation as 
179.12  the board of teaching prescribes.  The commissioner of children, 
179.13  families, and learning board of school administrators shall 
179.14  establish requirements for renewing the licenses of supervisory 
179.15  personnel except athletic coaches.  The state board of teaching 
179.16  shall establish requirements for renewing the licenses of 
179.17  athletic coaches. 
179.18     (b) The board of teaching shall offer alternative 
179.19  continuing relicensure options for teachers who are accepted 
179.20  into and complete the national board for professional teaching 
179.21  standards certification process, and offer additional continuing 
179.22  relicensure options for teachers who earn national board for 
179.23  professional teaching standards certification.  Continuing 
179.24  relicensure requirements for teachers who do not maintain 
179.25  national board for professional teaching standards certification 
179.26  are those the board prescribes.  
179.27     <b>[EFFECTIVE DATE.]</b> This section is effective September 1, 
179.28  2001. 
179.29     Sec. 5.  [122A.191] [DEFINITIONS.] 
179.30     Subdivision 1.  [SCOPE.] For the purposes of sections 
179.31  122A.191 to 122A.193, the terms in this section have the 
179.32  meanings given them, unless another meaning is clearly indicated.
179.33     Subd. 2.  [BOARD.] "Board" means board of school 
179.34  administrators. 
179.35     Subd. 3.  [SUPERVISORY PERSONNEL.] "Supervisory personnel" 
179.36  means supervisory personnel as defined in section 122A.15, 
180.1   subdivision 2, excluding athletic coaches. 
180.2      <b>[EFFECTIVE DATE.]</b> This section is effective the day 
180.3   following final enactment. 
180.4      Sec. 6.  [122A.192] [BOARD OF SCHOOL ADMINISTRATORS.] 
180.5      Subdivision 1.  [MEMBERSHIP.] A board of school 
180.6   administrators is established and must consist of nine members 
180.7   appointed by the governor with the advice and consent of the 
180.8   senate, including at least: 
180.9      (1) one elementary school principal; 
180.10     (2) one secondary school principal; 
180.11     (3) one higher education faculty member in an educational 
180.12  administration program approved by the board; 
180.13     (4) one higher education administrator for an educational 
180.14  administration program approved by the board; 
180.15     (5) one school superintendent; 
180.16     (6) one classroom teacher; 
180.17     (7) one community education director or a special education 
180.18  director; and 
180.19     (8) two members of the public, one of whom must be a 
180.20  present or former school board member. 
180.21     In making appointments, the governor shall solicit 
180.22  recommendations from groups representing persons in clauses (1) 
180.23  to (8). 
180.24     Subd. 2.  [TERMS; COMPENSATION; REMOVAL; 
180.25  ADMINISTRATION.] Membership terms, removal of members, and the 
180.26  filling of membership vacancies are as provided in section 
180.27  214.09.  The terms of the initial board members must be 
180.28  determined by lot as follows: 
180.29     (1) three members must be appointed for terms that expire 
180.30  August 1, 2002; 
180.31     (2) three members must be appointed for terms that expire 
180.32  August 1, 2003; and 
180.33     (3) three members must be appointed for terms that expire 
180.34  August 1, 2004. 
180.35     Members shall not receive the daily payment under section 
180.36  214.09, subdivision 3.  The public employer of a member shall 
181.1   not reduce the member's compensation or benefits for the 
181.2   member's absence from employment when engaging in the business 
181.3   of the board.  The provision of staff, administrative services, 
181.4   and office space; the review and processing of complaints; the 
181.5   setting of fees; the selection and duties of an executive 
181.6   secretary to serve the board; and other provisions relating to 
181.7   board operations are as provided in chapter 214.  Fiscal year 
181.8   and reporting requirements are as provided in sections 214.07 
181.9   and 214.08. 
181.10     Subd. 3.  [VACANT POSITION.] The position of a member who 
181.11  leaves Minnesota or whose employment status changes to a 
181.12  category different from that from which appointed shall be 
181.13  deemed vacant.  
181.14     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
181.15  following final enactment. 
181.16     Sec. 7.  [122A.193] [MEETINGS.] 
181.17     Subdivision 1.  [MEETINGS.] The board of school 
181.18  administrators shall meet regularly at the times and places 
181.19  determined by the board.  The board shall nominate and elect a 
181.20  chair and other officers from its membership.  Meetings shall be 
181.21  called by the chair or at the written request of any three 
181.22  members.  
181.23     Subd. 2.  [EXECUTIVE SECRETARY.] The board of school 
181.24  administrators may hire an executive secretary and other staff 
181.25  or may arrange to share an executive secretary and staff with 
181.26  the board of teaching.  If the board hires an executive 
181.27  secretary, the person is in the unclassified service. 
181.28     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
181.29  following final enactment. 
181.30     Sec. 8.  [122A.194] [DUTIES OF BOARD OF SCHOOL 
181.31  ADMINISTRATORS.] 
181.32     Subdivision 1.  [LICENSING.] The board shall license school 
181.33  administrators.  The board shall adopt rules to license school 
181.34  administrators under chapter 14.  Other than the rules 
181.35  transferred to the board under section 122A.18, subdivision 4, 
181.36  the board may not adopt or amend rules under this section until 
182.1   the rules are approved by law.  The rules shall include the 
182.2   licensing of persons who have successfully completed alternative 
182.3   preparation programs under section 122A.27 or other alternative 
182.4   competency-based preparation programs.  The board may enter into 
182.5   agreements with the board of teaching regarding multiple license 
182.6   matters.  
182.7      Subd. 2.  [PREPARATION PROGRAMS.] The board shall review 
182.8   and approve preparation programs for school administrators and 
182.9   alternative preparation programs for administrators under 
182.10  section 122A.27, and must consider other alternative 
182.11  competency-based preparation programs leading to licensure.  
182.12     Subd. 3.  [RULES FOR CONTINUING EDUCATION REQUIREMENTS.] 
182.13  The board shall adopt rules establishing continuing education 
182.14  requirements that promote continuous improvement and acquisition 
182.15  of new and relevant skills by school administrators. 
182.16     Subd. 4.  [CODE OF ETHICS.] The board shall adopt by rule a 
182.17  code of ethics covering standards of professional practice, 
182.18  including ethical conduct, professional performance, and methods 
182.19  of enforcement, and advise school administrators in interpreting 
182.20  the code of ethics. 
182.21     Subd. 5.  [COMMISSIONER'S REPRESENTATIVE TO COMMENT ON 
182.22  PROPOSED RULE.] Before adopting any rule that must be submitted 
182.23  to public hearing, a representative of the commissioner of 
182.24  children, families, and learning shall appear before the board 
182.25  and at any hearing required under section 14.14, subdivision 1, 
182.26  to comment on the cost and educational implications of the 
182.27  proposed rule.  
182.28     Subd. 6.  [REGISTER OF PERSONS LICENSED.] The executive 
182.29  director of the board shall keep a record of board proceedings 
182.30  and a register of all persons licensed under this chapter.  The 
182.31  register must show the name, address, license number, and the 
182.32  renewal of the license.  The board must on July 1 of each year, 
182.33  or as soon thereafter as is practicable, compile a list of 
182.34  licensed school administrators and transmit a copy of the list 
182.35  to the board.  A copy of the register must be available during 
182.36  business hours at the office of the board to any interested 
183.1   person.  
183.2      Subd. 7.  [COMMISSIONER'S ASSISTANCE; BOARD MONEY.] The 
183.3   commissioner shall provide all necessary materials and 
183.4   assistance for transacting board business and all money received 
183.5   by the board shall be paid into the state treasury as provided 
183.6   by law.  The expenses of administering the board of school 
183.7   administrators shall be paid for from appropriations made to the 
183.8   board of school administrators. 
183.9      Subd. 8.  [ACCOUNTABILITY.] The board must develop 
183.10  accountability measures for programs preparing students for 
183.11  licensure and report the progress of the programs to the 
183.12  legislature by January 15 of every other year beginning with the 
183.13  2003 legislature. 
183.14     Subd. 9.  [ANNUAL FEE.] Each person licensed by the board 
183.15  of school administrators shall pay the board an annual fee of 
183.16  $75.  The board may provide a lower fee for persons on retired 
183.17  or inactive status.  The executive secretary shall deposit the 
183.18  fees in the state treasury. 
183.19     <b>[EFFECTIVE DATE.]</b> This section is effective September 1, 
183.20  2001, except that the fee imposed by subdivision 9 is effective 
183.21  July 1, 2001. 
183.22     Sec. 9.  Minnesota Statutes 2000, section 122A.20, 
183.23  subdivision 2, is amended to read: 
183.24     Subd. 2.  [MANDATORY REPORTING.] A school board must report 
183.25  to the board of teaching, the board of school administrators, or 
183.26  the board of trustees of the Minnesota state colleges and 
183.27  universities, whichever has jurisdiction over the teacher's or 
183.28  administrator's license, when its teacher or administrator is 
183.29  discharged or resigns from employment after a charge is filed 
183.30  with the school board under section 122A.41, subdivisions 6, 
183.31  clauses (1), (2), and (3), and 7, or after charges are filed 
183.32  that are ground for discharge under section 122A.40, subdivision 
183.33  13, paragraph (a), clauses (1) to (5), or when a teacher or 
183.34  administrator is suspended or resigns while an investigation is 
183.35  pending under section 122A.40, subdivision 13, paragraph (a) 
183.36  clauses (1) to (5); 122A.41, subdivisions 6, clauses (1), (2), 
184.1   and (3), and 7; or 626.556.  The report must be made to the 
184.2   appropriate licensing board within ten days after the discharge, 
184.3   suspension, or resignation has occurred.  The licensing board to 
184.4   which the report is made must investigate the report for 
184.5   violation of subdivision 1 and the reporting board must 
184.6   cooperate in the investigation.  Notwithstanding any provision 
184.7   in chapter 13 or any law to the contrary, upon written request 
184.8   from the licensing board having jurisdiction over the teacher's 
184.9   license, a board or school superintendent shall provide the 
184.10  licensing board with information about the teacher or 
184.11  administrator from the district's files, any termination or 
184.12  disciplinary proceeding, any settlement or compromise, or any 
184.13  investigative file.  Upon written request from the appropriate 
184.14  licensing board, a board or school superintendent may, at the 
184.15  discretion of the board or school superintendent, solicit the 
184.16  written consent of a student and the student's parent to provide 
184.17  the licensing board with information that may aid the licensing 
184.18  board in its investigation and license proceedings.  The 
184.19  licensing board's request need not identify a student or parent 
184.20  by name.  The consent of the student and the student's parent 
184.21  must meet the requirements of chapter 13 and Code of Federal 
184.22  Regulations, title 34, section 99.30.  The licensing board may 
184.23  provide a consent form to the district.  Any data transmitted to 
184.24  any board under this section is private data under section 
184.25  13.02, subdivision 12, notwithstanding any other classification 
184.26  of the data when it was in the possession of any other agency. 
184.27     The licensing board to which a report is made must transmit 
184.28  to the attorney general's office any record or data it receives 
184.29  under this subdivision for the sole purpose of having the 
184.30  attorney general's office assist that board in its 
184.31  investigation.  When the attorney general's office has informed 
184.32  an employee of the appropriate licensing board in writing that 
184.33  grounds exist to suspend or revoke a teacher's license to teach, 
184.34  that licensing board must consider suspending or revoking or 
184.35  decline to suspend or revoke the teacher's or administrator's 
184.36  license within 45 days of receiving a stipulation executed by 
185.1   the teacher or administrator under investigation or a 
185.2   recommendation from an administrative law judge that 
185.3   disciplinary action be taken. 
185.4      <b>[EFFECTIVE DATE.]</b> This section is effective September 1, 
185.5   2001. 
185.6      Sec. 10.  Minnesota Statutes 2000, section 122A.21, is 
185.7   amended to read: 
185.8      122A.21 [TEACHERS' AND ADMINISTRATORS' LICENSES; FEES.] 
185.9      Each application for the issuance, renewal, or extension of 
185.10  a license to teach and each application for the issuance, 
185.11  renewal, or extension of a license as supervisory personnel must 
185.12  be accompanied by a processing fee in an amount set by the board 
185.13  of teaching by rule.  Each application for issuing, renewing, or 
185.14  extending the license of a school administrator or supervisor 
185.15  must be accompanied by a processing fee in the amount set by the 
185.16  board of teaching.  The processing fee for a teacher's license 
185.17  and for the licenses of supervisory personnel must be paid to 
185.18  the executive secretary of the appropriate board of teaching.  
185.19  The executive secretary of the board of teaching shall deposit 
185.20  the fees with the state treasurer, as provided by law, and 
185.21  report each month to the commissioner of finance the amount of 
185.22  fees collected.  The fees as set by the board are nonrefundable 
185.23  for applicants not qualifying for a license.  However, a fee 
185.24  must be refunded by the state treasurer in any case in which the 
185.25  applicant already holds a valid unexpired license.  The board 
185.26  may waive or reduce fees for applicants who apply at the same 
185.27  time for more than one license. 
185.28     <b>[EFFECTIVE DATE.]</b> This section is effective September 1, 
185.29  2001. 
185.30     Sec. 11.  [CONTRACTS AND GRANTS UNIT; INTERNAL AUDITS 
185.31  OFFICE.] 
185.32     (a) The commissioner of children, families, and learning 
185.33  shall establish a contracts and grants unit within the 
185.34  department to manage the contracting process for the 
185.35  department.  The unit must be separate from individual program 
185.36  functions.  The duties of the unit include: 
186.1      (1) supporting the fiscal management of contracts and 
186.2   grants; 
186.3      (2) technical assistance to program areas in setting up and 
186.4   monitoring grants; 
186.5      (3) legal review of contracts for compliance with state law 
186.6   and requirements of private grants; 
186.7      (4) training and advising program areas on how the 
186.8   contracting process should be handled; 
186.9      (5) reviewing requests for proposals for compliance with 
186.10  legal requirements; 
186.11     (6) drafting and maintaining a contracts manual for use by 
186.12  program areas; and 
186.13     (7) approving all contracts entered into by program areas. 
186.14     (b) The commissioner of children, families, and learning 
186.15  shall establish an internal audits office.  Any significant 
186.16  audit violations must be reported to the commissioner in 
186.17  writing.  The office must report at least annually to the 
186.18  commissioner on contract policies, procedures, and controls.  
186.19  Duties of the internal audits office include: 
186.20     (1) serving as an independent appraisal function to examine 
186.21  and evaluate the department's activities; 
186.22     (2) measuring and evaluating the effectiveness of 
186.23  accounting, financial and operating policies, procedures, and 
186.24  controls on a department basis; and 
186.25     (3) examining contracts and grants for compliance with 
186.26  federal and state law. 
186.27     Sec. 12.  [RETROACTIVITY.] 
186.28     A contract encumbered or a grant awarded by the department 
186.29  of children, families, and learning for the Perpich Center for 
186.30  Arts Education or the Minnesota state academies before September 
186.31  1, 2001, may be made retroactive to July 1, 2001. 
186.32     Sec. 13.  [APPROPRIATIONS; DEPARTMENT OF CHILDREN, 
186.33  FAMILIES, AND LEARNING.] 
186.34     Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
186.35  LEARNING.] Unless otherwise indicated, the sums indicated in 
186.36  this section are appropriated from the general fund to the 
187.1   department of children, families, and learning for the fiscal 
187.2   years designated. 
187.3      Subd. 2.  [DEPARTMENT.] (a) For the department of children, 
187.4   families, and learning: 
187.5        $31,530,000    .....     2002
187.6        $31,748,000    .....     2003 
187.7      Any balance in the first year does not cancel but is 
187.8   available in the second year. 
187.9      (b) $684,000 in 2002 and $690,000 in 2003 are for the board 
187.10  of teaching. 
187.11     (c) $165,000 each year is for the board of school 
187.12  administrators. 
187.13     (d) $400,000 in fiscal year 2002 and $400,000 in fiscal 
187.14  year 2003 are for the office of educational accountability under 
187.15  Minnesota Statutes, section 120B.31, subdivision 3. 
187.16     (e) $500,000 in 2002 and $250,000 in 2003 and thereafter 
187.17  are for the Minnesota Academic Excellence Foundation.  
187.18     (f) $260,000 each year is for the Minnesota Children's 
187.19  Museum; $50,000 in fiscal year 2002 is for the Duluth Children's 
187.20  Museum. 
187.21     (g) The expenditures of federal grants and aids as shown in 
187.22  the biennial budget document and its supplements are approved 
187.23  and appropriated and shall be spent as indicated. 
187.24     (h) In preparing the department budget for fiscal years 
187.25  2004-2005, the department shall shift all administrative funding 
187.26  from aids appropriations into the appropriation for the 
187.27  department.  
187.28     Sec. 14.  [APPROPRIATIONS; PERPICH CENTER FOR ARTS 
187.29  EDUCATION.] 
187.30     The sums indicated in this section are appropriated from 
187.31  the general fund to the Perpich Center for Arts Education for 
187.32  the fiscal years designated: 
187.33       $7,681,000     .....     2002 
187.34       $7,816,000     .....     2003 
187.35     $150,000 each year is to extend the partnership network to 
187.36  up to five new partnership sites and for developing 
188.1   whole-school, arts-based teaching and learning curriculum at new 
188.2   sites.  
188.3      Any balance in the first year does not cancel but is 
188.4   available in the second year. 
188.5      Sec. 15.  [APPROPRIATIONS; MINNESOTA STATE ACADEMIES.] 
188.6      The sums indicated in this section are appropriated from 
188.7   the general fund to the Minnesota state academies for the deaf 
188.8   and the blind for the fiscal years designated:  
188.9        $10,761,000    .....     2002 
188.10       $10,966,000    .....     2003 
188.11     Any balance in the first year does not cancel but is 
188.12  available in the second year. 
188.13                             ARTICLE 8 
188.14                        TECHNICAL AMENDMENTS 
188.15     Section 1.  Minnesota Statutes 2000, section 122A.26, 
188.16  subdivision 3, is amended to read: 
188.17     Subd. 3.  [ENGLISH AS A SECOND LANGUAGE.] Notwithstanding 
188.18  subdivision 2, a person who possesses a bachelor's or master's 
188.19  degree in English as a second language, applied linguistics, or 
188.20  bilingual education, or who possesses a related degree as 
188.21  approved by the commissioner, shall be permitted to teach 
188.22  English as a second language in an adult basic education program 
188.23  that receives funding under section 124D.53 124D.531.  
188.24     Sec. 2.  Minnesota Statutes 2000, section 124D.11, 
188.25  subdivision 5, is amended to read: 
188.26     Subd. 5.  [SPECIAL EDUCATION AID.] Except as provided in 
188.27  subdivision 2, special education aid must be paid to a charter 
188.28  school according to section 125A.76, as though it were a school 
188.29  district.  The charter school may charge tuition to the district 
188.30  of residence as provided in section 125A.11.  The charter school 
188.31  shall allocate its special education levy equalization revenue 
188.32  to the resident districts of the pupils attending the charter 
188.33  school.  The districts of residence shall levy as though they 
188.34  were participating in a cooperative, as provided in section 
188.35  125A.77, subdivision 3. 
188.36     Sec. 3.  Minnesota Statutes 2000, section 124D.454, 
189.1   subdivision 11, is amended to read: 
189.2      Subd. 11.  [REVENUE ALLOCATION FROM COOPERATIVE CENTERS AND 
189.3   INTERMEDIATE DISTRICTS.] For purposes of this section and 
189.4   section 125A.77, a cooperative center or an intermediate 
189.5   district must allocate its approved expenditures for transition 
189.6   programs for children with a disability among participating 
189.7   school districts.  Aid for transition programs for children with 
189.8   a disability for services provided by a cooperative or 
189.9   intermediate district shall be paid to the participating 
189.10  districts.  
189.11     Sec. 4.  Minnesota Statutes 2000, section 125A.17, is 
189.12  amended to read: 
189.13     125A.17 [LEGAL RESIDENCE OF A CHILD WITH A DISABILITY 
189.14  PLACED IN A FOSTER FACILITY.] 
189.15     The legal residence of a child with a disability placed in 
189.16  a foster facility for care and treatment is the district in 
189.17  which the child resides when: 
189.18     (1) parental rights have been terminated by court order; 
189.19     (2) the parent or guardian is not living within the state; 
189.20     (3) no other district residence can be established; or 
189.21     (4) the parent or guardian having legal custody of the 
189.22  child is an inmate of a Minnesota correctional facility or is a 
189.23  resident of a halfway house under the supervision of the 
189.24  commissioner of corrections; 
189.25  is the district in which the child resides.  The school board of 
189.26  the district of residence must provide the same educational 
189.27  program for the child as it provides for all resident children 
189.28  with a disability in the district.  
189.29     Sec. 5.  Minnesota Statutes 2000, section 127A.41, 
189.30  subdivision 9, is amended to read: 
189.31     Subd. 9.  [APPROPRIATION TRANSFERS FOR COMMUNITY EDUCATION 
189.32  PROGRAMS.] If a direct appropriation from the general fund to 
189.33  the department of children, families, and learning for an 
189.34  education aid or grant authorized under section 124D.135, 
189.35  124D.16, 124D.20, 124D.21, 124D.22, 124D.52, 124D.53 124D.531, 
189.36  124D.54, 124D.55, or 124D.56 exceeds the amount required, the 
190.1   commissioner of children, families, and learning may transfer 
190.2   the excess to any education aid or grant appropriation that is 
190.3   insufficiently funded under these sections.  Excess 
190.4   appropriations shall be allocated proportionately among aids or 
190.5   grants that have insufficient appropriations.  The commissioner 
190.6   of finance shall make the necessary transfers among 
190.7   appropriations according to the determinations of the 
190.8   commissioner of children, families, and learning.  If the amount 
190.9   of the direct appropriation for the aid or grant plus the amount 
190.10  transferred according to this subdivision is insufficient, the 
190.11  commissioner shall prorate the available amount among eligible 
190.12  districts.  The state is not obligated for any additional 
190.13  amounts. 
190.14     Sec. 6.  [REPEALER.] 
190.15     Laws 2000, chapter 254, section 30; and Laws 2000, chapter 
190.16  489, article 1, section 18, are repealed. 
190.17     Sec. 7.  [GENERAL EFFECTIVE DATE OF ACT.] 
190.18     If a section in this act does not specify its effective 
190.19  date, the section is effective July 1, 2001, unless the language 
190.20  or context clearly indicates that a different effective date is 
190.21  intended.