1.1                          A bill for an act 
  1.2             relating to the state budget; appropriating money to 
  1.3             fund the budget base plus inflation with certain 
  1.4             conditions; providing a sales tax rebate; making 
  1.5             technical corrections to the Minnesota college savings 
  1.6             plan; increasing reimbursement rate for certain 
  1.7             providers of human services by three percent in each 
  1.8             year of the biennium; ratifying certain salary 
  1.9             agreements negotiated during the 2000-2001 biennium; 
  1.10            providing disaster relief related to the floods of 
  1.11            1997 and the tornado of July 25, 2000; ratifying 
  1.12            transfer of duties from the department of public 
  1.13            service to the department of commerce; amending 
  1.14            Minnesota Statutes 2000, sections 3C.12, subdivision 
  1.15            2; 13.679; 15.01; 15.06, subdivision 1; 15A.0815, 
  1.16            subdivision 2; 16B.32, subdivision 2, as amended; 
  1.17            16B.335, subdivision 4; 16B.56, subdivision 1; 16B.76, 
  1.18            subdivision 1, as amended; 17.86, subdivision 3; 
  1.19            18.024, subdivision 1; 43A.08, subdivision 1a; 45.012; 
  1.20            62J.694, subdivision 2; 103F.325, subdivisions 2, 3; 
  1.21            115A.15, subdivision 5; 116O.06, subdivision 2; 
  1.22            119A.12, by adding subdivisions; 119A.13, subdivision 
  1.23            4; 119A.21; 119A.22; 119B.011, subdivision 19; 
  1.24            122A.26, subdivision 3; 123B.42, subdivision 3; 
  1.25            123B.44, subdivision 6; 123B.65, subdivisions 1, 3, 5; 
  1.26            123B.75, subdivision 5, by adding a subdivision; 
  1.27            124D.11, subdivision 5; 124D.128, subdivisions 1, 2, 
  1.28            3, 6; 124D.16, subdivision 2; 124D.454, subdivision 
  1.29            11; 124D.52, subdivision 2; 124D.522; 124D.531, 
  1.30            subdivisions 1, 3; 124D.80, subdivision 3; 124D.892, 
  1.31            subdivision 3, as amended; 125A.17; 125A.27, 
  1.32            subdivision 15; 125A.76, subdivision 2; 125B.20, 
  1.33            subdivision 1; 126C.05, subdivisions 1, 15; 126C.10, 
  1.34            subdivisions 1, 2, 9; 126C.12, subdivisions 2, 3, 4, 
  1.35            5, by adding a subdivision; 126C.17, subdivisions 1, 
  1.36            6, 9, 10, 11; 126C.23, subdivision 5; 126C.41, 
  1.37            subdivision 3; 127A.30; 127A.41, subdivisions 5, 8, 9; 
  1.38            127A.45, subdivision 12, by adding a subdivision; 
  1.39            134.31, by adding a subdivision; 136A.101, subdivision 
  1.40            5a; 136A.121, subdivisions 6, 9; 136A.241; 136A.242; 
  1.41            136A.243, subdivisions 1, 2, 3, 4, 9; 136A.244, 
  1.42            subdivisions 1, 4; 136A.245, subdivisions 2, 4, by 
  1.43            adding subdivisions; 161.45, subdivision 1; 168.61, 
  1.44            subdivision 1; 169.073; 174.03, subdivision 7; 181.30; 
  1.45            216A.01; 216A.035; 216A.036; 216A.05, subdivision 1; 
  1.46            216A.07, subdivision 1; 216A.08; 216A.085, subdivision 
  2.1             3; 216B.02, subdivisions 1, 7, 8; 216B.16, 
  2.2             subdivisions 1, 2, 6b; 216B.162, subdivisions 7, 11; 
  2.3             216B.1675, subdivision 9; 216B.241, subdivisions 1a, 
  2.4             as amended, 1b, as amended, 2b; 216C.01, subdivisions 
  2.5             1, 2, 3; 216C.37, subdivision 1; 216C.40, subdivision 
  2.6             4; 237.02; 237.075, subdivisions 2, 9; 237.082; 
  2.7             237.21; 237.30; 237.462, subdivision 6; 237.51, 
  2.8             subdivisions 1, 5, 5a; 237.52, subdivisions 2, 4, 5; 
  2.9             237.54, subdivision 2; 237.55; 237.59, subdivision 2; 
  2.10            237.768; 239.01; 242.192; 256B.431, by adding a 
  2.11            subdivision; 256B.434, subdivision 4; 256B.5012, by 
  2.12            adding a subdivision; 325E.11; 325E.115, subdivision 
  2.13            2; 326.243; 484.50; Laws 2000, chapter 489, article 2, 
  2.14            sections 34, 37, 39, subdivision 2; Laws 2000, chapter 
  2.15            489, article 3, sections 24, 25, subdivision 5; Laws 
  2.16            2000, chapter 489, article 5, section 21; Laws 2000, 
  2.17            chapter 489, article 7, section 15, subdivision 3; 
  2.18            proposing coding for new law in Minnesota Statutes, 
  2.19            chapters 16A; 119A; 124D; 134; 136A; repealing 
  2.20            Minnesota Statutes 2000, sections 119A.13, 
  2.21            subdivisions 1, 2, 3; 119A.14, subdivision 2; 119A.23; 
  2.22            124D.1155; 124D.128, subdivision 7; 124D.33; 124D.331; 
  2.23            125B.20, subdivision 3; 126C.10, subdivision 23; 
  2.24            216A.06; 237.69, subdivision 3; Laws 2000, chapter 
  2.25            254, section 30; Laws 2000, chapter 489, article 1, 
  2.26            section 18. 
  2.27  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  2.28                             ARTICLE 1
  2.29                       APPROPRIATION SUMMARY
  2.30                         General Fund Only
  2.31                                                      BIENNIAL
  2.32                           2002          2003           TOTAL
  2.33  E-12 Education   $4,570,103,000  $4,695,287,000  $9,265,390,000
  2.34  Higher Education  1,364,868,000   1,428,892,000   2,793,760,000
  2.35  Environment and
  2.36  Agriculture         206,162,000     209,599,000     415,761,000
  2.37  Health and
  2.38  Human Services    3,033,873,000   3,351,990,000   6,385,863,000
  2.39  State Government    316,318,000     323,107,000     639,425,000
  2.40  Economic
  2.41  Development         186,913,000     185,508,000     372,421,000
  2.42  Transportation 
  2.43  and Other Agencies   84,572,000      84,813,000     169,385,000
  2.44  Public Safety
  2.45  and Judiciary       223,609,000     235,036,000     458,645,000
  2.46  Corrections         410,616,000     423,209,000     833,825,000
  2.47  TOTAL           $10,397,034,000 $10,937,441,000 $21,334,475,000
  2.48                             ARTICLE 2
  2.49                          SALES TAX REBATE
  2.50     Section 1.  [STATEMENT OF PURPOSE.] 
  2.51     (a) The state of Minnesota derives revenues from a variety 
  3.1   of taxes, fees, and other sources, including the state sales tax.
  3.2      (b) It is fair and reasonable to refund the existing state 
  3.3   budget surplus in the form of a rebate of nonbusiness consumer 
  3.4   sales taxes paid by individuals in calendar year 1999. 
  3.5      (c) Information concerning the amount of sales tax paid at 
  3.6   various income levels is contained in the Minnesota tax 
  3.7   incidence report, which is written by the commissioner of 
  3.8   revenue and presented to the legislature according to Minnesota 
  3.9   Statutes, section 270.0682. 
  3.10     (d) It is fair and reasonable to use information contained 
  3.11  in the Minnesota tax incidence report to determine the 
  3.12  proportionate share of the sales tax rebate due each eligible 
  3.13  taxpayer since no effective or practical mechanism exists for 
  3.14  determining the amount of actual sales tax paid by each eligible 
  3.15  individual. 
  3.16     Sec. 2.  [SALES TAX REBATE.] 
  3.17     Subdivision 1.  [ELIGIBILITY; REBATE BASED ON INCOME.] An 
  3.18  individual who was a resident of Minnesota for any part of 1999, 
  3.19  and filed a 1999 Minnesota income tax return on or before 
  3.20  November 30, 2001, and had a tax liability before refundable 
  3.21  credits on that return of at least $1 and who was not allowed to 
  3.22  be claimed as a dependent on a 1999 federal income tax return 
  3.23  filed by another person is eligible for a sales tax rebate based 
  3.24  on income under either subdivision 2 or 3. 
  3.25     Subd. 2.  [MARRIED JOINT AND HEAD OF HOUSEHOLD FILERS.] The 
  3.26  sales tax rebate for taxpayers who qualify under subdivision 1 
  3.27  and are married filing joint or head of household filers is 
  3.28  computed according to the following schedule: 
  3.29       Income                                Sales Tax Rebate
  3.30   less than $2,500                                $233
  3.31   at least $2,500 but less than $5,000            $289
  3.32   at least $5,000 but less than $10,000           $303
  3.33   at least $10,000 but less than $15,000          $334
  3.34   at least $15,000 but less than $20,000          $379
  3.35   at least $20,000 but less than $25,000          $409
  3.36   at least $25,000 but less than $30,000          $436
  4.1    at least $30,000 but less than $35,000          $474
  4.2    at least $35,000 but less than $40,000          $516
  4.3    at least $40,000 but less than $45,000          $560
  4.4    at least $45,000 but less than $50,000          $595
  4.5    at least $50,000 but less than $60,000          $609
  4.6    at least $60,000 but less than $70,000          $636
  4.7    at least $70,000 but less than $80,000          $692
  4.8    at least $80,000 but less than $90,000          $748
  4.9    at least $90,000 but less than $100,000         $809
  4.10   at least $100,000 but less than $120,000        $877
  4.11   at least $120,000 but less than $140,000        $960
  4.12   at least $140,000 but less than $160,000      $1,038
  4.13   at least $160,000 but less than $180,000      $1,111
  4.14   at least $180,000 but less than $200,000      $1,181
  4.15   at least $200,000 but less than $400,000      $1,510
  4.16   at least $400,000 but less than $600,000      $1,987
  4.17   at least $600,000 but less than $800,000      $2,384
  4.18   at least $800,000 but less than $1,000,000    $2,733
  4.19   $1,000,000 and over                           $3,250
  4.20     Subd. 3.  [SINGLE AND MARRIED SEPARATE FILERS.] The sales 
  4.21  tax rebate for individuals who qualify under subdivision 1 as 
  4.22  single or married filing separately must be computed according 
  4.23  to the following schedule: 
  4.24       Income                                Sales Tax Rebate
  4.25   less than $2,500                               $118
  4.26   at least $2,500 but less than $5,000           $124
  4.27   at least $5,000 but less than $10,000          $165
  4.28   at least $10,000 but less than $15,000         $196
  4.29   at least $15,000 but less than $20,000         $227
  4.30   at least $20,000 but less than $25,000         $253
  4.31   at least $25,000 but less than $30,000         $305
  4.32   at least $30,000 but less than $40,000         $329
  4.33   at least $40,000 but less than $50,000         $363
  4.34   at least $50,000 but less than $70,000         $465
  4.35   at least $70,000 but less than $100,000        $644
  4.36   at least $100,000 but less than $140,000       $776
  5.1    at least $140,000 but less than $200,000       $937
  5.2    at least $200,000 but less than $400,000     $1,270
  5.3    $400,000 and over                            $1,625
  5.4      Subd. 4.  [NONRESIDENTS.] Individuals who were not 
  5.5   residents of Minnesota for any part of 1999 and who paid more 
  5.6   than $10 in Minnesota sales tax under Minnesota Statutes, 
  5.7   chapter 297A, on nonbusiness consumer purchases in that year 
  5.8   qualify for a rebate under this subdivision only.  Qualifying 
  5.9   nonresidents must file a claim for rebate on a form prescribed 
  5.10  by the commissioner by November 30, 2001.  The claim must 
  5.11  include receipts showing the Minnesota sales tax paid and the 
  5.12  date of the sale.  Taxes paid on purchases allowed in the 
  5.13  computation of federal taxable income or reimbursed by an 
  5.14  employer are not eligible for the rebate.  The commissioner 
  5.15  shall determine the qualifying taxes paid and rebate the lesser 
  5.16  of: 
  5.17     (1) 40.45 percent of that amount; or 
  5.18     (2) the maximum amount for which the claimant would have 
  5.19  been eligible as determined under subdivision 2 if the taxpayer 
  5.20  filed the 1999 federal income tax return as a married taxpayer 
  5.21  filing jointly or head of household, or as determined under 
  5.22  subdivision 3 for other taxpayers. 
  5.23     Subd. 5.  [DEFINITION OF INCOME.] "Income," for purposes of 
  5.24  this section other than subdivision 4, is taxable income as 
  5.25  defined in section 63 of the Internal Revenue Code of 1986, as 
  5.26  amended through December 31, 1998, plus the sum of any additions 
  5.27  to federal taxable income for the taxpayer under Minnesota 
  5.28  Statutes, section 290.01, subdivision 19a, and reported on the 
  5.29  original 1999 income tax return, including subsequent 
  5.30  adjustments to that return made within the time limits specified 
  5.31  in subdivision 12.  For an individual who was a resident of 
  5.32  Minnesota for less than the entire year, the sales tax rebate 
  5.33  equals the sales tax rebate calculated under subdivision 2 or 3 
  5.34  multiplied by the percentage determined pursuant to Minnesota 
  5.35  Statutes, section 290.06, subdivision 2c, paragraph (e), as 
  5.36  calculated on the original 1999 income tax return, including 
  6.1   subsequent adjustments to that return made within the time 
  6.2   limits specified in subdivision 12.  For purposes of subdivision 
  6.3   4, "income" is taxable income as defined in section 63 of the 
  6.4   Internal Revenue Code of 1986, as amended through December 31, 
  6.5   1998, and reported on the taxpayer's original federal tax return 
  6.6   for the first taxable year beginning after December 31, 1998. 
  6.7      Subd. 6.  [SOCIAL SECURITY AND PUBLIC PENSION 
  6.8   RECIPIENTS.] (a) An individual qualifies for a rebate of $118 
  6.9   under this subdivision if the individual: 
  6.10     (1) was a resident of Minnesota for all of calendar year 
  6.11  1999; 
  6.12     (2) is not eligible for a rebate under subdivision 9; 
  6.13     (3) attained the age of 18 on or before December 31, 1999; 
  6.14  and 
  6.15     (4)(i) received social security benefits as defined in 
  6.16  section 86(d)(1) of the Internal Revenue Code of 1986, as 
  6.17  amended through December 31, 2000, in calendar year 1999; or 
  6.18     (ii) received federal, state, or local public pension or 
  6.19  disability benefits in calendar year 1999. 
  6.20     (b) An individual or married couple who qualifies for a 
  6.21  rebate under both this subdivision and subdivision 1 is eligible 
  6.22  for the rebate under whichever subdivision provides a larger 
  6.23  amount. 
  6.24     (c) If the Social Security Administration, Railroad 
  6.25  Retirement Board, or the administrator of a public pension is 
  6.26  paying benefits to a recipient by electronic funds transfers in 
  6.27  calendar year 2001, the commissioner may pay the rebate under 
  6.28  this subdivision through electronic funds transfer to the same 
  6.29  financial institution and into the same account into which those 
  6.30  benefits are transferred in calendar year 2001. 
  6.31     (d) For purposes of this subdivision, "public pension plan 
  6.32  administrator" means (1) a state and local public pension 
  6.33  administrator, (2) the federal Civil Service Retirement System, 
  6.34  (3) the United States Department of Defense for the military 
  6.35  retirement and survivors benefit programs, and (4) the Federal 
  6.36  Employees Retirement System. 
  7.1      (e) A state and local public pension administrator is an 
  7.2   entity paying benefits under a pension plan enumerated in 
  7.3   Minnesota Statutes, section 356.20, subdivision 2.  Each state 
  7.4   and local pension administrator shall provide to the 
  7.5   commissioner of revenue, in a form the commissioner prescribes, 
  7.6   a list of individuals to whom it pays benefits that meet the 
  7.7   requirements of paragraph (a), clauses (1) and (3). 
  7.8      Subd. 7.  [DEPENDENTS.] An individual who: 
  7.9      (1) was allowed to be claimed as a dependent on a 1999 
  7.10  federal income tax return filed by another person; 
  7.11     (2) would have otherwise been eligible for a rebate under 
  7.12  subdivision 1; and 
  7.13     (3) reported earned income as defined in section 
  7.14  32(c)(2)(A)(i) of the Internal Revenue Code, 
  7.15  is eligible for a rebate under this subdivision only.  The 
  7.16  rebate under this subdivision equals 35 percent of the amount 
  7.17  allowed under the schedule in subdivision 3 based on the 
  7.18  individual's income.  For an individual who was a resident of 
  7.19  Minnesota for less than the entire year, the sales tax rebate 
  7.20  equals the rebate calculated under this subdivision multiplied 
  7.21  by the percentage determined pursuant to Minnesota Statutes, 
  7.22  section 290.06, subdivision 2c, paragraph (e), as calculated on 
  7.23  the original 1999 income tax return. 
  7.24     Subd. 8.  [CREDIT RECIPIENTS.] An individual who: 
  7.25     (1) was a resident of Minnesota for any part of 1999; 
  7.26     (2) was not eligible for a rebate under subdivision 1, 6, 
  7.27  or 9; 
  7.28     (3) was not allowed to be claimed as a dependent on a 1999 
  7.29  federal income tax return by another person; and 
  7.30     (4)(i) claimed and was eligible for a refund under 
  7.31  Minnesota Statutes, chapter 290A, for property taxes paid in 
  7.32  2000 or rent constituting property taxes paid in 1999 on or 
  7.33  before November 30, 2001; or 
  7.34     (ii) filed a 1999 Minnesota income tax return before 
  7.35  November 30, 2001, in order to 
  7.36     (A) claim a credit under Minnesota Statutes, section 
  8.1   290.067, 290.0671, or 290.0674; 
  8.2      (B) claim a refund of withheld taxes; or 
  8.3      (C) claim a refund of estimated taxes, 
  8.4   is eligible for a rebate under this subdivision only.  For 
  8.5   married couples filing joint returns and heads of households, 
  8.6   the rebate equals the minimum amount in subdivision 2.  For 
  8.7   single filers and married individuals filing separate returns 
  8.8   and for rebates based on refunds under Minnesota Statutes, 
  8.9   chapter 290A, the rebate equals the minimum amount in 
  8.10  subdivision 3.  For individuals who qualify for a rebate under 
  8.11  clause (4)(i), the rebate equals the minimum amount in 
  8.12  subdivision 3 unless the property tax refund return is a joint 
  8.13  return and neither of the joint filers qualifies for a rebate 
  8.14  under any of the other rebate criteria in which case the rebate 
  8.15  equals the minimum amount in subdivision 2.  For an individual 
  8.16  who was a resident of Minnesota for less than the entire year, 
  8.17  the sales tax rebate equals the rebate calculated under this 
  8.18  subdivision multiplied by the percentage determined under 
  8.19  Minnesota Statutes, section 290.06, subdivision 2c, paragraph 
  8.20  (e), as calculated on the original 1999 income tax return.  
  8.21  Notwithstanding the provisions of Minnesota Statutes, section 
  8.22  289A.60, subdivision 12, an individual who files a property tax 
  8.23  refund claim for property taxes paid in 2000 or rent 
  8.24  constituting property taxes paid in 1999 after August 15, 2001, 
  8.25  and before November 30, 2001, is eligible for a refund under 
  8.26  Minnesota Statutes, chapter 290A, and a rebate under this 
  8.27  subdivision. 
  8.28     Subd. 9.  [CLAIMS BASED ON FEDERAL LIABILITIES.] An 
  8.29  individual who: 
  8.30     (1) was a resident of Minnesota for any part of 1999; 
  8.31     (2) filed 1999 Minnesota and federal income tax returns on 
  8.32  or before November 30, 2001; 
  8.33     (3) had federal taxable income on the federal return of at 
  8.34  least $5; and 
  8.35     (4) does not qualify for a rebate under subdivision 1 or 7, 
  8.36  is eligible for a rebate under this subdivision only. 
  9.1   An individual who was allowed to be claimed as a dependent on a 
  9.2   1999 federal income tax return filed by another person is 
  9.3   eligible for a rebate under this subdivision only if the 
  9.4   individual had in 1999 earned income as defined in section 
  9.5   32(c)(2)(A)(i) of the Internal Revenue Code; the rebate of a 
  9.6   dependent eligible for a rebate under this subdivision equals 35 
  9.7   percent of the amount allowed under the schedule in subdivision 
  9.8   3 based on the individual's income.  For all other individuals 
  9.9   who qualify under this subdivision, the rebate equals the amount 
  9.10  allowed based on the individual's income under the schedule in 
  9.11  subdivision 2 for married couples filing joint returns and heads 
  9.12  of household and the amount allowed based on the individual's 
  9.13  income under the schedule in subdivision 3 for single filers and 
  9.14  married individuals filing separately, provided, however, that 
  9.15  any rebate payable under this subdivision to an individual who 
  9.16  was a part-year resident of Minnesota in 1998 must be prorated 
  9.17  according to the formula applicable to part-year residents in 
  9.18  subdivision 5. 
  9.19     Subd. 10.  [FISCAL YEAR TAXPAYERS.] For a fiscal year 
  9.20  taxpayer, the dates in subdivisions 1 through 4 are extended one 
  9.21  month for each month in calendar year 1999 that occurred prior 
  9.22  to the start of the individual's 1999 fiscal tax year. 
  9.23     Subd. 11.  [PAYMENT DATES; INTEREST.] The commissioner of 
  9.24  revenue may begin paying sales tax rebates by July 1, 2001. 
  9.25  Sales tax rebates not paid by January 1, 2002, bear interest at 
  9.26  the rate specified in Minnesota Statutes, section 270.75. 
  9.27     Subd. 12.  [NO ADJUSTMENTS AFTER PROCESSING.] A sales tax 
  9.28  rebate may not be adjusted based on changes to a 1999 income tax 
  9.29  return that are made by order of assessment after the date the 
  9.30  rebate is processed, or made by the taxpayer that are filed with 
  9.31  the commissioner of revenue after that date. 
  9.32     Subd. 13.  [JOINT REBATE RULES.] Individuals who filed a 
  9.33  joint income tax return for 1999 must receive a joint sales tax 
  9.34  rebate.  After the sales tax rebate has been issued, but before 
  9.35  the check has been cashed, either joint claimant may request a 
  9.36  separate check for one-half of the joint sales tax rebate.  
 10.1   Notwithstanding anything in this section to the contrary, if 
 10.2   prior to payment, the commissioner has been notified that 
 10.3   persons who filed a joint 1999 income tax return are living at 
 10.4   separate addresses, as indicated on their 2000 income tax return 
 10.5   or otherwise, the commissioner may issue separate checks to each 
 10.6   person.  The amount payable to each person is one-half of the 
 10.7   total joint rebate. 
 10.8      Subd. 14.  [DECEASED INDIVIDUALS.] If a rebate is received 
 10.9   by the estate of a deceased individual after the probate estate 
 10.10  has been closed, and if the original rebate check is returned to 
 10.11  the commissioner with a copy of the decree of descent or final 
 10.12  account of the estate, social security numbers, and addresses of 
 10.13  the beneficiaries, the commissioner may issue separate checks in 
 10.14  proportion to their share in the residuary estate in the names 
 10.15  of the residuary beneficiaries of the estate. 
 10.16     Subd. 15.  [APPLICATION OF OTHER LAW.] (a) The sales tax 
 10.17  rebate is a "Minnesota tax law" for purposes of Minnesota 
 10.18  Statutes, section 270B.01, subdivision 8. 
 10.19     (b) The sales tax rebate is "an overpayment of any tax 
 10.20  collected by the commissioner" for purposes of Minnesota 
 10.21  Statutes, section 270.07, subdivision 5.  For purposes of this 
 10.22  subdivision, a joint sales tax rebate is payable to each spouse 
 10.23  equally. 
 10.24     (c) The sales tax rebate is a refund subject to revenue 
 10.25  recapture under Minnesota Statutes, chapter 270A.  The 
 10.26  commissioner of revenue shall remit the entire refund to the 
 10.27  claimant agency, which shall, upon the request of the spouse who 
 10.28  does not owe the debt, refund one-half of the joint sales tax 
 10.29  rebate to the spouse who does not owe the debt. 
 10.30     Subd. 16.  [LAPSE OF ENTITLEMENT.] If the commissioner of 
 10.31  revenue cannot locate an individual entitled to a sales tax 
 10.32  rebate by July 1, 2003, or if an individual to whom a sales tax 
 10.33  rebate was issued has not cashed the check by July 1, 2003, the 
 10.34  right to the sales tax rebate lapses and the check must be 
 10.35  deposited in the general fund. 
 10.36     Subd. 17.  [CLAIMS FOR UNPAID REBATES.] Individuals 
 11.1   entitled to a sales tax rebate pursuant to subdivision 1, 6, 7, 
 11.2   8, or 9 but who did not receive one, and individuals who receive 
 11.3   a sales tax rebate that was not correctly computed, must file a 
 11.4   claim with the commissioner before July 1, 2002, in a form 
 11.5   prescribed by the commissioner.  These claims must be treated as 
 11.6   if they are a claim for refund under Minnesota Statutes, section 
 11.7   289A.50, subdivisions 4 and 7. 
 11.8      Subd. 18.  [APPROPRIATION.] The rebate is a reduction of 
 11.9   fiscal year 2001 sales tax revenues.  The amount necessary to 
 11.10  make the sales tax rebates and interest provided in this section 
 11.11  is appropriated from the general fund to the commissioner of 
 11.12  revenue in fiscal year 2001 and is available until June 30, 2003.
 11.13     Subd. 19.  [ILLEGALLY CASHED CHECKS.] If a sales tax rebate 
 11.14  check is cashed by someone other than the payee or payees of the 
 11.15  check, and the commissioner of revenue determines that the check 
 11.16  has been forged or improperly endorsed or the commissioner 
 11.17  determines that a rebate was overstated or erroneously issued, 
 11.18  the commissioner may issue an order of assessment for the amount 
 11.19  of the check or the amount the check is overstated against the 
 11.20  person or persons cashing it.  The assessment must be made 
 11.21  within two years after the check is cashed, but if cashing the 
 11.22  check constitutes theft under Minnesota Statutes, section 
 11.23  609.52, or forgery under Minnesota Statutes, section 609.631, 
 11.24  the assessment can be made at any time.  The assessment may be 
 11.25  appealed administratively and judicially.  The commissioner may 
 11.26  take action to collect the assessment in the same manner as 
 11.27  provided by Minnesota Statutes, chapter 289A, for any other 
 11.28  order of the commissioner assessing tax. 
 11.29     Subd. 20.  [AUTHORITY TO CONTRACT WITH VENDOR.] 
 11.30  Notwithstanding Minnesota Statutes, sections 9.031, 16A.40, 
 11.31  16B.49, 16B.50, and any other law to the contrary, the 
 11.32  commissioner of revenue may take whatever actions the 
 11.33  commissioner deems necessary to pay the rebates required by this 
 11.34  section, and may, in consultation with the commissioner of 
 11.35  finance and the state treasurer, contract with a private vendor 
 11.36  or vendors to process, print, and mail the rebate checks or 
 12.1   warrants required under this section and receive and disburse 
 12.2   state funds to pay those checks or warrants. 
 12.3      Subd. 21.  [ELECTRONIC PAYMENT.] The commissioner may pay 
 12.4   rebates required by this section by electronic funds transfer to 
 12.5   individuals who requested that their 2000 individual income tax 
 12.6   refund be paid through electronic funds transfer.  The 
 12.7   commissioner may make the electronic funds transfer payments to 
 12.8   the same financial institution and into the same account as the 
 12.9   2000 individual income tax refund. 
 12.10     Subd. 22.  [ADJUSTMENTS.] A sales tax rebate of 
 12.11  $852,080,000 is authorized for fiscal year 2001.  Before 
 12.12  payment, the commissioner of revenue shall adjust the rebate as 
 12.13  follows: 
 12.14     (1) the rebates calculated in subdivisions 2, 3, 4, 6, 7, 
 12.15  8, and 9 must be proportionately reduced to account for 1999 
 12.16  income tax returns that are filed on or after January 1, 2001, 
 12.17  but before June 1, 2001, so that the estimated amount of sales 
 12.18  tax rebates payable under subdivisions 2, 3, 4, 6, 7, 8, and 9 
 12.19  on the date the rebate is processed does not exceed the total 
 12.20  amount available for the rebate; and 
 12.21     (2) the commissioner of finance shall certify by July 15, 
 12.22  2001, the preliminary fiscal 2001 general fund net nondedicated 
 12.23  revenues.  The certification shall exclude the impact of any 
 12.24  legislation enacted during the 2001 regular and special 
 12.25  sessions.  If certified net nondedicated revenues are less than 
 12.26  the amount forecast in February 2001, the commissioner of 
 12.27  revenue shall proportionally decrease all rebates under this 
 12.28  section to rebate the entire amount of the certified net 
 12.29  nondedicated revenues.  The adjustments under this subdivision 
 12.30  are not a rule subject to Minnesota Statutes, chapter 14. 
 12.31     Sec. 3.  [APPROPRIATIONS.] 
 12.32     (a) $1,731,600 is appropriated in fiscal year 2001 from the 
 12.33  general fund to the commissioner of revenue to administer the 
 12.34  sales tax rebates in section 2.  Any unencumbered balance 
 12.35  remaining on June 30, 2001, does not cancel but is available for 
 12.36  expenditure by the commissioner of revenue until June 30, 2002.  
 13.1   Notwithstanding Minnesota Statutes, section 16A.285, the 
 13.2   commissioner of revenue may not use this appropriation for any 
 13.3   purpose other than administering the sales tax rebates.  This is 
 13.4   a one-time appropriation and may not be added to the agency's 
 13.5   budget base. 
 13.6      (b) $401,000 is appropriated in fiscal year 2001 from the 
 13.7   general fund to the state treasurer to pay the cost of clearing 
 13.8   sales tax rebate checks through commercial banks.  Any 
 13.9   unencumbered balance remaining on June 30, 2001, does not cancel 
 13.10  but is available for expenditure by the state treasurer until 
 13.11  June 30, 2002.  Notwithstanding Minnesota Statutes, section 
 13.12  16A.285, the state treasurer may not use this appropriation for 
 13.13  any purpose other than paying the cost of clearing rebate checks.
 13.14     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 13.15  following final enactment. 
 13.16                             ARTICLE 3
 13.17             EARLY CHILDHOOD THROUGH GRADE 12 EDUCATION
 13.18  Section 1.  [EARLY CHILDHOOD THROUGH GRADE 12 EDUCATION 
 13.19  APPROPRIATIONS.] 
 13.20     The sums shown in the columns marked "APPROPRIATIONS" are 
 13.21  appropriated from the general fund, or another named fund, to 
 13.22  the commissioner of children, families, and learning, or another 
 13.23  named official, for the purposes specified in the following 
 13.24  sections of this article, to be available for the fiscal years 
 13.25  indicated for each purpose.  The figures "2002" and "2003" where 
 13.26  used in this article, mean that the appropriation or 
 13.27  appropriations listed under them are available for the fiscal 
 13.28  year ending June 30, 2002, or June 30, 2003, respectively.  
 13.29                          SUMMARY BY FUND 
 13.30                                                      BIENNIAL
 13.31                           2002          2003           TOTAL
 13.32  General            $4,570,103,000 $4,695,287,000 $9,265,390,000
 13.33  Special Revenue         2,737,000      2,636,000      5,373,000
 13.34  Federal TANF           23,973,000     23,687,000     47,660,000
 13.35  TOTAL              $4,596,813,000 $4,721,610,000 $9,318,423,000
 13.36                                             APPROPRIATIONS 
 13.37                                         Available for the Year 
 14.1                                              Ending June 30 
 14.2                                             2002         2003 
 14.3   Sec. 2.  EARLY CHILDHOOD EDUCATION
 14.4   Subdivision 1.  Total  
 14.5   Appropriation                       $212,591,000   $208,324,000
 14.6                 Summary by Fund
 14.7   General             189,177,000   185,347,000
 14.8   Special Revenue       2,441,000     2,340,000
 14.9   Federal TANF         20,973,000    20,637,000
 14.10  The amounts that may be spent from this 
 14.11  appropriation for each program are 
 14.12  specified in the following subdivisions.
 14.13  Subd. 2.  School Readiness   
 14.14  Program Revenue    
 14.15        2002           2003
 14.16      10,395,000     10,395,000
 14.17  For school readiness programs according 
 14.18  to Minnesota Statutes, sections 124D.15 
 14.19  and 124D.16. 
 14.20  The 2002 appropriation includes 
 14.21  $1,039,000 for 2001 and $9,356,000 for 
 14.22  2002. 
 14.23  The 2003 appropriation includes 
 14.24  $1,040,000 for 2002 and $9,355,000 for 
 14.25  2003.  
 14.26  Subd. 3.  Early Childhood    
 14.27  Family Education Aid
 14.28      20,758,000     20,663,000
 14.29  For early childhood family education 
 14.30  aid according to Minnesota Statutes, 
 14.31  section 124D.135. 
 14.32  The 2002 appropriation includes 
 14.33  $2,036,000 for 2001 and $18,722,000 for 
 14.34  2002.  
 14.35  The 2003 appropriation includes 
 14.36  $2,080,000 for 2002 and $18,583,000 for 
 14.37  2003.  
 14.38  Subd. 4.  Health and Developmental
 14.39  Screening Aid      
 14.40       2,661,000      2,661,000
 14.41  For health and developmental screening 
 14.42  aid according to Minnesota Statutes, 
 14.43  sections 121A.17 and 121A.19. 
 14.44  The 2002 appropriation includes 
 14.45  $266,000 for 2001 and $2,395,000 for 
 14.46  2002.  
 14.47  The 2003 appropriation includes 
 14.48  $266,000 for 2002 and $2,395,000 for 
 15.1   2003.  
 15.2   Subd. 5.  Way to Grow        
 15.3          475,000        475,000
 15.4   For grants for existing way to grow 
 15.5   programs according to Minnesota 
 15.6   Statutes, section 124D.17. 
 15.7   Any balance in the first year does not 
 15.8   cancel but is available in the second 
 15.9   year. 
 15.10  Subd. 6.  Head Start Program 
 15.11      18,375,000     18,375,000
 15.12  For Head Start programs according to 
 15.13  Minnesota Statutes, section 119A.52. 
 15.14  $1,000,000 each year must be used for 
 15.15  grants to local Head Start agencies for 
 15.16  full-year programming for children ages 
 15.17  0 to 3. 
 15.18  Any balance in the first year does not 
 15.19  cancel but is available in the second 
 15.20  year. 
 15.21  Subd. 7.  School Age Child Care
 15.22         221,000        133,000
 15.23  For extended day aid according to 
 15.24  Minnesota Statutes, section 124D.22. 
 15.25  The 2002 appropriation includes $30,000 
 15.26  for 2001 and $191,000 for 2002. 
 15.27  The 2003 appropriation includes $21,000 
 15.28  for 2002 and $112,000 for 2003. 
 15.29  Subd. 8.  Basic Sliding Fee  
 15.30  Child Care         
 15.31      51,999,000     51,999,000
 15.32  For child care assistance according to 
 15.33  Minnesota Statutes, section 119B.03. 
 15.34  Subd. 9.  MFIP Child Care    
 15.35      82,253,000     78,606,000
 15.36  For child care assistance according to 
 15.37  Minnesota Statutes, section 119B.05. 
 15.38  Any balance in the first year does not 
 15.39  cancel but is available in the second 
 15.40  year. 
 15.41  Subd. 10.  Child Care Integrity
 15.42         175,000        175,000
 15.43  For the administrative costs of program 
 15.44  integrity and fraud prevention for 
 15.45  child care assistance under Minnesota 
 15.46  Statutes, chapter 119B. 
 16.1   Any balance in the first year does not 
 16.2   cancel but is available in the second 
 16.3   year. 
 16.4   Subd. 11.  Child Care Services
 16.5   Grants             
 16.6        1,865,000      1,865,000
 16.7   For child care services grants 
 16.8   according to Minnesota Statutes, 
 16.9   section 119B.21. 
 16.10  Any balance in the first year does not 
 16.11  cancel but is available in the second 
 16.12  year. 
 16.13  Subd. 12.  Child Support Collections
 16.14       2,441,000      2,340,000
 16.15  Appropriations in this subdivision are 
 16.16  from child support collection payments 
 16.17  in the special revenue fund pursuant to 
 16.18  Minnesota Statutes, section 119B.074.  
 16.19  The sums indicated are appropriated to 
 16.20  the department of children, families, 
 16.21  and learning for the fiscal years 
 16.22  designated. 
 16.23  Subd. 13.  TANF Appropriations
 16.24  for Basic Sliding Fee Child Care
 16.25      15,958,000     15,978,000
 16.26  These amounts are transferred from the 
 16.27  federal TANF fund to the child care and 
 16.28  development fund and appropriated to 
 16.29  the commissioner of children, families, 
 16.30  and learning for the fiscal years 
 16.31  designated.  The commissioner shall 
 16.32  ensure that all transferred funds are 
 16.33  expended in accordance with the child 
 16.34  care and development fund regulations 
 16.35  and that the maximum allowable 
 16.36  transferred funds are used for the 
 16.37  programs in this subdivision. 
 16.38  Any balance the first year does not 
 16.39  cancel but is available in the second 
 16.40  year. 
 16.41  Subd. 14.  TANF Appropriations 
 16.42  for MFIP Child Care   
 16.43       5,015,000      4,659,000
 16.44  These amounts are transferred from the 
 16.45  federal TANF fund to the child care and 
 16.46  development fund and appropriated to 
 16.47  the commissioner of children, families, 
 16.48  and learning for the fiscal years 
 16.49  designated.  The commissioner shall 
 16.50  ensure that all transferred funds are 
 16.51  expended in accordance with the child 
 16.52  care and development fund regulations 
 16.53  and that the maximum allowable 
 16.54  transferred funds are used for the 
 16.55  programs in this subdivision. 
 16.56  Any balance in the first year does not 
 17.1   cancel but is available in the second 
 17.2   year. 
 17.3   Sec. 3.  PREVENTION                
 17.4   Subdivision 1.  Total  
 17.5   Appropriation                         25,742,000     24,030,000
 17.6                 Summary by Fund
 17.7   General              25,446,000    23,734,000
 17.8   Special Revenue         296,000       296,000
 17.9   The amounts that may be spent from this 
 17.10  appropriation for each program are 
 17.11  specified in the following subdivisions.
 17.12  Subd. 2.  Family Services Collaboratives
 17.13       1,477,000        863,000
 17.14  For family services collaboratives 
 17.15  according to Laws 1995, First Special 
 17.16  Session chapter 3, article 4, section 
 17.17  29, subdivision 10. 
 17.18  No new family services collaboratives 
 17.19  shall be funded with this appropriation 
 17.20  after June 30, 1999. 
 17.21  Any balance in the first year does not 
 17.22  cancel but is available in the second 
 17.23  year. 
 17.24  Subd. 3.  Community Education Aid
 17.25      14,209,000     13,111,000
 17.26  For community education aid according 
 17.27  to Minnesota Statutes, section 124D.20. 
 17.28  The 2002 appropriation includes 
 17.29  $1,528,000 for 2001 and $12,681,000 for 
 17.30  2002.  
 17.31  The 2003 appropriation includes 
 17.32  $1,409,000 for 2002 and $11,702,000 for 
 17.33  2003.  
 17.34  Any balance in the first year does not 
 17.35  cancel but is available in the second 
 17.36  year. 
 17.37  Subd. 4.  Adults with Disabilities
 17.38  Program Aid        
 17.39         710,000        710,000
 17.40  For adults with disabilities programs 
 17.41  according to Minnesota Statutes, 
 17.42  section 124D.56. 
 17.43  Any balance in the first year does not 
 17.44  cancel but is available in the second 
 17.45  year. 
 17.46  Subd. 5.  Hearing-Impaired Adults
 17.47          70,000         70,000
 18.1   For programs for hearing-impaired 
 18.2   adults according to Minnesota Statutes, 
 18.3   section 124D.57. 
 18.4   Any balance in the first year does not 
 18.5   cancel but is available in the second 
 18.6   year. 
 18.7   Subd. 6.  Violence Prevention 
 18.8   Education Grants
 18.9        1,450,000      1,450,000
 18.10  For violence prevention education 
 18.11  grants according to Minnesota Statutes, 
 18.12  section 120B.23. 
 18.13  Any balance in the first year does not 
 18.14  cancel but is available in the second 
 18.15  year. 
 18.16  Subd. 7.  Abused Children    
 18.17         945,000        945,000
 18.18  For abused children programs according 
 18.19  to Minnesota Statutes, section 119A.21. 
 18.20  Any balance in the first year does not 
 18.21  cancel but is available in the second 
 18.22  year. 
 18.23  Subd. 8.  Children's Trust Fund
 18.24         225,000        225,000
 18.25  For the children's trust fund according 
 18.26  to Minnesota Statutes, sections 119A.12 
 18.27  and 119A.13. 
 18.28  Any balance in the first year does not 
 18.29  cancel but is available in the second 
 18.30  year. 
 18.31  Subd. 9.  Family Visitation Centers
 18.32         296,000        296,000
 18.33  (a) For family visitation centers 
 18.34  according to Minnesota Statutes, 
 18.35  section 119A.37. 
 18.36  Any balance in the first year does not 
 18.37  cancel but is available in the second 
 18.38  year. 
 18.39  (b) Of this amount, $96,000 in fiscal 
 18.40  year 2002 and $96,000 in fiscal year 
 18.41  2003 are appropriated from the special 
 18.42  revenue fund under Minnesota Statutes, 
 18.43  section 517.08, subdivision 1c, for 
 18.44  family visitation centers.  Any balance 
 18.45  in the first year does not cancel but 
 18.46  is available in the second year. 
 18.47  Subd. 10.  After School Enrichment Grants
 18.48       5,510,000      5,510,000
 18.49  For after school enrichment grants 
 18.50  according to Minnesota Statutes, 
 19.1   section 124D.221. 
 19.2   Any balance in the first year does not 
 19.3   cancel but is available in the second 
 19.4   year. 
 19.5   Subd. 11.  Adolescent Parenting Grants
 19.6          400,000        400,000
 19.7   For grants to reduce long-term welfare 
 19.8   dependency and promote self-sufficiency 
 19.9   among adolescent parents under Laws 
 19.10  1997, chapter 162, article 2, section 
 19.11  28. 
 19.12  Any balance in the first year does not 
 19.13  cancel but is available in the second 
 19.14  year. 
 19.15  Subd. 12.  Male Responsibility and
 19.16  Fathering Grants   
 19.17         250,000        250,000
 19.18  For grants according to Minnesota 
 19.19  Statutes, section 124D.33. 
 19.20  Any balance in the first year does not 
 19.21  cancel but is available in the second 
 19.22  year. 
 19.23  Subd. 13.  Chemical Abuse Prevention Grants
 19.24         200,000        200,000
 19.25  For grants with funds received under 
 19.26  Minnesota Statutes, section 171.29, 
 19.27  subdivision 2, paragraph (b), clause 
 19.28  (4). 
 19.29  These appropriations are from the 
 19.30  alcohol-impaired driver account of the 
 19.31  special revenue fund for chemical abuse 
 19.32  prevention grants. 
 19.33  Sec. 4.  SELF-SUFFICIENCY AND LIFELONG
 19.34  LEARNING                  
 19.35  Subdivision 1.  Total  
 19.36  Appropriation                         51,375,000     53,667,000
 19.37                Summary by Fund
 19.38  General              48,375,000    50,617,000
 19.39  Federal TANF          3,000,000     3,050,000
 19.40  The amounts that may be spent from this 
 19.41  appropriation for each program are 
 19.42  specified in the following subdivisions.
 19.43  Subd. 2.  Minnesota Economic Opportunity
 19.44  Grants             
 19.45       8,514,000      8,514,000
 19.46  For Minnesota economic opportunity 
 19.47  grants. 
 19.48  Any balance in the first year does not 
 20.1   cancel but is available in the second 
 20.2   year. 
 20.3   Subd. 3.  Adult Basic Education Aid
 20.4       32,150 000     34,731,000
 20.5   For adult basic education aid according 
 20.6   to Minnesota Statutes, section 124D.52, 
 20.7   in fiscal year 2002 and Minnesota 
 20.8   Statutes, section 124D.531, in fiscal 
 20.9   year 2003. 
 20.10  The 2002 appropriation includes 
 20.11  $3,019,000 for 2001 and $29,131,000 for 
 20.12  2002.  
 20.13  The 2003 appropriation includes 
 20.14  $3,237,000 for 2002 and $31,494,000 for 
 20.15  2003.  
 20.16  Subd. 4.  Adult Graduation Aid
 20.17       3,195,000      3,356,000
 20.18  For adult graduation aid according to 
 20.19  Minnesota Statutes, section 124D.54. 
 20.20  The 2002 appropriation includes 
 20.21  $305,000 for 2001 and $2,890,000 for 
 20.22  2002.  
 20.23  The 2003 appropriation includes 
 20.24  $321,000 for 2002 and $3,035,000 for 
 20.25  2003.  
 20.26  Subd. 5.  GED Tests          
 20.27         125,000        125,000
 20.28  For payment of 60 percent of the costs 
 20.29  of GED tests according to Laws 1993, 
 20.30  chapter 224, article 4, section 44, 
 20.31  subdivision 10. 
 20.32  Any balance in the first year does not 
 20.33  cancel but is available in the second 
 20.34  year. 
 20.35  Subd. 6.  Food Bank Program  
 20.36       1,278,000      1,278,000
 20.37  For foodshelf programs according to 
 20.38  Minnesota Statutes, section 119A.44. 
 20.39  Any balance in the first year does not 
 20.40  cancel but is available in the second 
 20.41  year. 
 20.42  Subd. 7.  Family Assets for  
 20.43  Independence       
 20.44         500,000        -0-    
 20.45  For family assets for independence. 
 20.46  Any balance in the first year does not 
 20.47  cancel but is available in the second 
 20.48  year. 
 21.1   Subd. 8.  Lead Abatement     
 21.2          100,000        100,000
 21.3   For lead abatement according to 
 21.4   Minnesota Statutes, section 119A.46. 
 21.5   Subd. 9.  Adult Basic Education 
 21.6   Administration 
 21.7          175,000        175,000
 21.8   Subd. 10.  Transitional Housing Programs
 21.9        1,988,000      1,988,000
 21.10  For transitional housing programs 
 21.11  according to Minnesota Statutes, 
 21.12  section 119A.43. 
 21.13  Any balance in the first year does not 
 21.14  cancel but is available in the second 
 21.15  year. 
 21.16  Subd. 11.  Emergency Services
 21.17         350,000        350,000
 21.18  For emergency services according to 
 21.19  Minnesota Statutes, section 119A.43. 
 21.20  Any balance in the first year does not 
 21.21  cancel but is available in the second 
 21.22  year. 
 21.23  Subd. 12.  TANF Appropriations
 21.24  This appropriation is from the federal 
 21.25  Temporary Assistance for Needy Families 
 21.26  (TANF) block grant for the fiscal years 
 21.27  designated.  These amounts are 
 21.28  available for expenditure until June 
 21.29  30, 2003.  Appropriations in this 
 21.30  subdivision are one-time appropriations 
 21.31  and are not added to the base for 
 21.32  fiscal years 2004 and 2005. 
 21.33  (a) Intensive ESL
 21.34       1,100,000      1,100,000
 21.35  For intensive English as a second 
 21.36  language (ESL) for eligible MFIP 
 21.37  participants under Laws 2000, chapter 
 21.38  489, article 1, section 39. 
 21.39  (b) Transitional Housing    
 21.40       1,900,000      1,950,000
 21.41  For reimbursement grants to 
 21.42  transitional housing programs under 
 21.43  Minnesota Statutes, section 119A.43. 
 21.44  These appropriations must be used for 
 21.45  up to four months of transitional 
 21.46  housing for families with incomes below 
 21.47  200 percent of the federal poverty 
 21.48  guidelines.  Payment must be made to 
 21.49  programs on a reimbursement basis. 
 22.1   Sec. 5.  GENERAL EDUCATION 
 22.2   Subdivision 1.  Total  
 22.3   Appropriation                      3,417,160,000  3,528,995,000
 22.4   The amounts that may be spent from this 
 22.5   appropriation for each program are 
 22.6   specified in the following subdivisions.
 22.7   Subd. 2.  General and Supplemental
 22.8   Education Aid      
 22.9    3,374,615,000  3,481,386,000
 22.10  The 2002 appropriation includes 
 22.11  $318,932,000 for 2001 and 
 22.12  $3,055,683,000 for 2002.  
 22.13  The 2003 appropriation includes 
 22.14  $339,520,000 for 2002 and 
 22.15  $3,141,866,000 for 2003.  
 22.16  Subd. 3.  Transportation Aid for 
 22.17  Enrollment Options
 22.18          70,000         80,000
 22.19  For transportation of pupils attending 
 22.20  post-secondary institutions according 
 22.21  to Minnesota Statutes, section 124D.09, 
 22.22  or for transportation of pupils 
 22.23  attending nonresident districts 
 22.24  according to Minnesota Statutes, 
 22.25  section 124D.03. 
 22.26  Any balance in the first year does not 
 22.27  cancel but is available in the second 
 22.28  year. 
 22.29  Subd. 4.  Richfield Airport Impact Aid
 22.30         -0-          1,115,000
 22.31  For Richfield airport impact aid 
 22.32  according to Laws 2000, chapter 489, 
 22.33  article 2, section 36. 
 22.34  Subd. 5.  Abatement Aid      
 22.35       7,098,000      7,692,000
 22.36  For abatement aid according to 
 22.37  Minnesota Statutes, section 127A.49. 
 22.38  Subd. 6.  Nonpublic Pupil Aid
 22.39      14,146,000     15,187,000
 22.40  For nonpublic pupil transportation aid 
 22.41  under Minnesota Statutes, section 
 22.42  123B.92, subdivision 9. 
 22.43  The 2002 appropriation includes 
 22.44  $1,280,000 for 2001 and $12,866,000 for 
 22.45  2002. 
 22.46  The 2003 appropriation includes 
 22.47  $1,372,000 for 2002 and $13,815,000 for 
 22.48  2003. 
 22.49  Subd. 7.  Nonpublic Pupil Transportation
 23.1       20,556,000     22,866,000
 23.2   For nonpublic pupil transportation aid 
 23.3   under Minnesota Statutes, section 
 23.4   123B.92, subdivision 9. 
 23.5   The 2002 appropriation includes 
 23.6   $2,066,000 for 2001 and $18,490,000 for 
 23.7   2002. 
 23.8   The 2003 appropriation includes 
 23.9   $2,146,000 for 2002 and $20,720,000 for 
 23.10  2003. 
 23.11  Subd. 8.  Consolidation Transition Aid  
 23.12         675,000        669,000
 23.13  For districts consolidating under 
 23.14  Minnesota Statutes, section 123A.485. 
 23.15  The 2002 appropriation includes $44,000 
 23.16  for 2001 and $631,000 for 2002. 
 23.17  The 2003 appropriation includes $70,000 
 23.18  for 2002 and $599,000 for 2003. 
 23.19  Any balance in the first year does not 
 23.20  cancel but is available in the second 
 23.21  year. 
 23.22  Sec. 6.  EDUCATION EXCELLENCE 
 23.23  Subdivision 1.  Total  
 23.24  Appropriation                        115,889,000    126,148,000
 23.25  The amounts that may be spent from this 
 23.26  appropriation for each program are 
 23.27  specified in the following subdivisions.
 23.28  Subd. 2.  Statewide Testing and 
 23.29  Graduation Standards Support
 23.30       6,500,000      6,500,000
 23.31  For supporting implementation of the 
 23.32  graduation standards. 
 23.33  Any balance in the first year does not 
 23.34  cancel but is available in the second 
 23.35  year. 
 23.36  Subd. 3.  Advanced Placement and 
 23.37  International Baccalaureate Programs
 23.38       1,875,000      1,875,000
 23.39  For the state advanced placement and 
 23.40  international baccalaureate programs. 
 23.41  Notwithstanding Minnesota Statutes, 
 23.42  section 120B.13, subdivisions 1 and 2, 
 23.43  $375,000 each year is for teachers to 
 23.44  attend subject matter summer training 
 23.45  programs and follow-up support 
 23.46  workshops approved by the advanced 
 23.47  placement or international 
 23.48  baccalaureate programs.  The amount of 
 23.49  the subsidy for each teacher attending 
 23.50  an advanced placement or international 
 23.51  baccalaureate summer training program 
 24.1   or workshop shall be the same.  The 
 24.2   commissioner shall determine the 
 24.3   payment process and the amount of the 
 24.4   subsidy. 
 24.5   Notwithstanding Minnesota Statutes, 
 24.6   section 120B.13, subdivision 3, in each 
 24.7   year to the extent of available 
 24.8   appropriations, the commissioner shall 
 24.9   pay all examination fees for all 
 24.10  students sitting for an advanced 
 24.11  placement examination, international 
 24.12  baccalaureate examination, or both.  If 
 24.13  this amount is not adequate, the 
 24.14  commissioner may pay less than the full 
 24.15  examination fee. 
 24.16  Any balance in the first year does not 
 24.17  cancel but is available in the second 
 24.18  year. 
 24.19  Subd. 4.  Charter School Building
 24.20  Lease Aid          
 24.21      16,554,000     25,176,000
 24.22  For building lease aid according to 
 24.23  Minnesota Statutes, section 124D.11, 
 24.24  subdivision 4. 
 24.25  The 2002 appropriation includes 
 24.26  $1,114,000 for 2001 and $15,440,000 for 
 24.27  2002. 
 24.28  The 2003 appropriation includes 
 24.29  $1,716,000 for 2002 and $23,460,000 for 
 24.30  2003.  
 24.31  Subd. 5.  Charter School Startup Grants
 24.32       2,738,000      3,143,000
 24.33  For charter school startup cost aid 
 24.34  under Minnesota Statutes, section 
 24.35  124D.11. 
 24.36  The 2002 appropriation includes 
 24.37  $273,000 for 2001 and $2,465,000 for 
 24.38  2002.  
 24.39  The 2003 appropriation includes 
 24.40  $274,000 for 2002 and $2,869,000 for 
 24.41  2003. 
 24.42  Subd. 6.  Charter School Integration Aid
 24.43          50,000         50,000
 24.44  For grants to charter schools to 
 24.45  promote integration and desegregation 
 24.46  according to Minnesota Statutes, 
 24.47  section 124D.11, subdivision 6, 
 24.48  paragraph (e). 
 24.49  Any balance in the first year does not 
 24.50  cancel but is available in the second 
 24.51  year. 
 24.52  Subd. 7.  Best Practices Seminars
 24.53       5,000,000      5,000,000
 25.1   For best practices graduation rule 
 25.2   seminars and other professional 
 25.3   development capacity building 
 25.4   activities that assure proficiency in 
 25.5   teaching and implementation of 
 25.6   graduation rule standards. 
 25.7   Of this amount, for fiscal year 2002, 
 25.8   $1,000,000 is for arts via the Internet 
 25.9   collaborative project between the 
 25.10  Walker Art Center and the Minneapolis 
 25.11  Institute of Arts. 
 25.12  Subd. 8.  Integration Aid    
 25.13      59,795,000     59,946,000
 25.14  The 2002 appropriation includes 
 25.15  $5,729,000 for 2001 and $54,066,000 for 
 25.16  2002. 
 25.17  The 2003 appropriation includes 
 25.18  $6,007,000 for 2002 and $53,939,000 for 
 25.19  2003.  
 25.20  Subd. 9.  Integration Programs
 25.21       1,000,000      1,000,000
 25.22  For minority fellowship grants 
 25.23  according to Laws 1994, chapter 647, 
 25.24  article 8, section 29; minority teacher 
 25.25  incentives according to Minnesota 
 25.26  Statutes, section 122A.65; teachers of 
 25.27  color grants according to Minnesota 
 25.28  Statutes, section 122A.64; and cultural 
 25.29  exchange grants according to Minnesota 
 25.30  Statutes, section 124D.89. 
 25.31  Any balance in the first year does not 
 25.32  cancel but is available in the second 
 25.33  year. 
 25.34  In awarding teacher of color grants, 
 25.35  priority must be given to districts 
 25.36  that have students who are currently in 
 25.37  the process of completing their 
 25.38  academic program. 
 25.39  Subd. 10.  Magnet School Grants
 25.40       1,750,000      1,050,000
 25.41  For magnet school and program grants 
 25.42  under Minnesota Statutes, section 
 25.43  124D.871. 
 25.44  Subd. 11.  Magnet School Startup Aid
 25.45         482,000        326,000
 25.46  For magnet school startup aid under 
 25.47  Minnesota Statutes, section 124D.88. 
 25.48  The 2002 appropriation includes $25,000 
 25.49  for 2001 and $457,000 for 2002.  
 25.50  The 2003 appropriation includes $51,000 
 25.51  for 2002 and $275,000 for 2003. 
 25.52  Subd. 12.  Interdistrict Desegregation
 26.1   or Integration Transportation Programs
 26.2          -0-          2,932,000
 26.3   For interdistrict desegregation or 
 26.4   integration transportation grants under 
 26.5   Minnesota Statutes, section 124D.87. 
 26.6   Subd. 13.  American Indian Language
 26.7   and Culture Programs
 26.8          730,000        730,000
 26.9   For grants to American Indian language 
 26.10  and culture education programs 
 26.11  according to Minnesota Statutes, 
 26.12  section 124D.81. 
 26.13  The 2002 appropriation includes $73,000 
 26.14  for 2001 and $657,000 for 2002. 
 26.15  The 2003 appropriation includes $73,000 
 26.16  for 2002 and $657,000 for 2003.  
 26.17  Subd. 14.  American Indian Education
 26.18         175,000        175,000
 26.19  For certain American Indian education 
 26.20  programs in school districts. 
 26.21  The 2002 appropriation includes $17,000 
 26.22  for 2001 and $158,000 for 2002. 
 26.23  The 2003 appropriation includes $17,000 
 26.24  for 2002 and $158,000 for 2003.  
 26.25  Subd. 15.  American Indian 
 26.26  Post-Secondary Preparation
 26.27         982,000        982,000
 26.28  For American Indian post-secondary 
 26.29  preparation grants according to 
 26.30  Minnesota Statutes, section 124D.85. 
 26.31  Any balance in the first year does not 
 26.32  cancel but is available in the second 
 26.33  year. 
 26.34  Subd. 16.  American Indian Scholarships
 26.35       1,875,000      1,875,000
 26.36  For American Indian scholarships 
 26.37  according to Minnesota Statutes, 
 26.38  section 124D.84. 
 26.39  Any balance in the first year does not 
 26.40  cancel but is available in the second 
 26.41  year. 
 26.42  Subd. 17.  Indian Teacher Preparation Grants
 26.43         190,000        190,000
 26.44  (a) For joint grants to assist Indian 
 26.45  people to become teachers. 
 26.46  (b) Up to $70,000 each year is for a 
 26.47  joint grant to the University of 
 27.1   Minnesota at Duluth and the Duluth 
 27.2   school district. 
 27.3   (c) Up to $40,000 each year is for a 
 27.4   joint grant to each of the following: 
 27.5   (1) Bemidji state university and the 
 27.6   Red Lake school district; 
 27.7   (2) Moorhead state university and a 
 27.8   school district located within the 
 27.9   White Earth reservation; and 
 27.10  (3) Augsburg college, independent 
 27.11  school district No. 625, St. Paul, and 
 27.12  the Minneapolis school district. 
 27.13  (d) Money not used for students at one 
 27.14  location may be transferred for use at 
 27.15  another location. 
 27.16  (e) Any balance in the first year does 
 27.17  not cancel but is available in the 
 27.18  second year. 
 27.19  Subd. 18.  Tribal Contract Schools
 27.20       2,520,000      2,767,000
 27.21  For tribal contract school aid 
 27.22  according to Minnesota Statutes, 
 27.23  section 124D.83. 
 27.24  The 2002 appropriation includes 
 27.25  $192,000 for 2001 and $2,328,000 for 
 27.26  2002. 
 27.27  The 2003 appropriation includes 
 27.28  $258,000 for 2002 and $2,509,000 for 
 27.29  2003. 
 27.30  Subd. 19.  Early Childhood Programs 
 27.31  at Tribal Schools
 27.32          68,000         68,000
 27.33  Subd. 20.  First Grade Preparedness
 27.34       7,000,000      7,000,000
 27.35  For first grade preparedness grants 
 27.36  according to Minnesota Statutes, 
 27.37  section 124D.081. 
 27.38  Subd. 21.  Secondary Vocational Education Aid
 27.39       1,242,000        -0-    
 27.40  For secondary vocational education aid 
 27.41  according to Minnesota Statutes, 
 27.42  section 124D.453. 
 27.43  The 2002 appropriation includes 
 27.44  $1,242,000 for 2001 and $0 for 2002.  
 27.45  Subd. 22.  Youthworks Program
 27.46       1,788,000      1,788,000
 27.47  For funding youthworks programs 
 27.48  according to Minnesota Statutes, 
 28.1   sections 124D.37 to 124D.45. 
 28.2   A grantee organization may provide 
 28.3   health and child care coverage to the 
 28.4   dependents of each participant enrolled 
 28.5   in a full-time youth works program to 
 28.6   the extent such coverage is not 
 28.7   otherwise available.  
 28.8   Any balance in the first year does not 
 28.9   cancel but is available in the second 
 28.10  year. 
 28.11  Subd. 23.  Education and Employment
 28.12  Transitions Program
 28.13       2,225,000      2,225,000
 28.14  For education and employment 
 28.15  transitions programming under Minnesota 
 28.16  Statutes, section 124D.46. 
 28.17  $750,000 in fiscal year 2002 and 
 28.18  $750,000 in fiscal year 2003 is for 
 28.19  youth apprenticeship grants. 
 28.20  $125,000 each year is to conduct a high 
 28.21  school follow-up survey to include 
 28.22  first, third, and sixth year graduates 
 28.23  of Minnesota schools. 
 28.24  Any balance in the first year does not 
 28.25  cancel but is available in the second 
 28.26  year. 
 28.27  Subd. 24.  Learn and Earn    
 28.28  Graduation Achievement Program 
 28.29         725,000        725,000
 28.30  For the learn and earn graduation 
 28.31  achievement program according to 
 28.32  Minnesota Statutes, section 124D.32. 
 28.33  Any balance in the first year does not 
 28.34  cancel but is available in the second 
 28.35  year. 
 28.36  Subd. 25.  Minnesota Student Organization
 28.37  Foundations        
 28.38         625,000        625,000
 28.39  For the Minnesota student organization 
 28.40  foundation under Minnesota Statutes, 
 28.41  section 124D.34. 
 28.42  Any balance in the first year does not 
 28.43  cancel but is available in the second 
 28.44  year. 
 28.45  Sec. 7.  SPECIAL EDUCATION 
 28.46  Subdivision 1.  Total  
 28.47  Appropriation                        622,054,000    648,339,000
 28.48  The amounts that may be spent from this 
 28.49  appropriation for each program are 
 28.50  specified in the following subdivisions.
 28.51  Subd. 2.  Special Education Aid
 29.1      507,448,000    531,481,000
 29.2   For special education aid according to 
 29.3   Minnesota Statutes, section 125A.75. 
 29.4   The 2002 appropriation includes 
 29.5   $47,400,000 for 2001 and $460,048,000 
 29.6   for 2002. 
 29.7   The 2003 appropriation includes 
 29.8   $51,116,000 for 2002 and $480,365,000 
 29.9   for 2003. 
 29.10  Subd. 3.  Aid for Children with
 29.11  a Disability       
 29.12       1,877,000      2,033,000
 29.13  For aid according to Minnesota 
 29.14  Statutes, section 125A.75, subdivision 
 29.15  3, for children with a disability 
 29.16  placed in residential facilities within 
 29.17  the district boundaries for whom no 
 29.18  district of residence can be determined.
 29.19  If the appropriation for either year is 
 29.20  insufficient, the appropriation for the 
 29.21  other year is available.  Any balance 
 29.22  in the first year does not cancel but 
 29.23  is available in the second year. 
 29.24  Subd. 4.  Travel for Home-Based Services
 29.25         135,000        138,000
 29.26  For aid for teacher travel for 
 29.27  home-based services according to 
 29.28  Minnesota Statutes, section 125A.75, 
 29.29  subdivision 1. 
 29.30  The 2002 appropriation includes $13,000 
 29.31  for 2001 and $122,000 for 2002. 
 29.32  The 2003 appropriation includes $13,000 
 29.33  for 2002 and $125,000 for 2003. 
 29.34  Subd. 5.  Special Education Excess
 29.35  Cost Aid           
 29.36     102,665,000    104,773,000
 29.37  The 2002 appropriation includes 
 29.38  $9,889,000 for 2001 and $92,776,000 for 
 29.39  2002. 
 29.40  The 2003 appropriation includes 
 29.41  $10,308,000 for 2002 and $94,465,000 
 29.42  for 2003. 
 29.43  Subd. 6.  Litigation Costs   
 29.44         375,000        375,000
 29.45  For paying the costs a district incurs 
 29.46  under Minnesota Statutes, section 
 29.47  125A.75, subdivision 8. 
 29.48  Subd. 7.  Transition Programs; Students
 29.49  with Disabilities  
 29.50       8,954,000      8,939,000
 30.1   For aid for transition programs for 
 30.2   pupils with disabilities according to 
 30.3   Minnesota Statutes, section 124D.454. 
 30.4   The 2002 appropriation includes 
 30.5   $896,000 for 2001 and $8,058,000 for 
 30.6   2002.  
 30.7   The 2003 appropriation includes 
 30.8   $895,000 for 2002 and $8,044,000 for 
 30.9   2003.  
 30.10  Subd. 8.  Court-Placed Special
 30.11  Education Revenue  
 30.12         350,000        350,000
 30.13  For reimbursing serving school 
 30.14  districts for unreimbursed eligible 
 30.15  expenditures attributable to children 
 30.16  placed in the serving school district 
 30.17  by court action under Minnesota 
 30.18  Statutes, section 125A.79, subdivision 
 30.19  4. 
 30.20  Subd. 9.  Out-of-State Tuition
 30.21  Special Education  
 30.22         250,000        250,000
 30.23  For special education out-of-state 
 30.24  tuition according to Minnesota 
 30.25  Statutes, section 125A.79, subdivision 
 30.26  8. 
 30.27  Sec. 8.  FACILITIES AND TECHNOLOGY 
 30.28  Subdivision 1.  Total  
 30.29  Appropriation                         80,728,000     59,625,000
 30.30  The amounts that may be spent from this 
 30.31  appropriation for each program are 
 30.32  specified in the following subdivisions.
 30.33  Subd. 2.  Health and Safety Aid
 30.34      14,980,000     14,550,000
 30.35  For health and safety aid according to 
 30.36  Minnesota Statutes, section 123B.57, 
 30.37  subdivision 5. 
 30.38  The 2002 appropriation includes 
 30.39  $1,480,000 for 2001 and $13,500,000 for 
 30.40  2002. 
 30.41  The 2003 appropriation includes 
 30.42  $1,500,000 for 2002 and $13,050,000 for 
 30.43  2003. 
 30.44  Subd. 3.  Debt Service Aid   
 30.45      25,989,000     23,716,000
 30.46  For debt service aid according to 
 30.47  Minnesota Statutes, section 123B.53, 
 30.48  subdivision 6. 
 30.49  The 2002 appropriation includes 
 30.50  $2,890,000 for 2001 and $23,099,000 for 
 30.51  2002. 
 31.1   The 2003 appropriation includes 
 31.2   $2,562,000 for 2002 and $21,154,000 for 
 31.3   2003. 
 31.4   Subd. 4.  Interactive Television
 31.5   (ITV) Aid          
 31.6        1,418,000        129,000
 31.7   For interactive television (ITV) aid 
 31.8   under Minnesota Statutes, section 
 31.9   126C.40, subdivision 4. 
 31.10  The 2002 appropriation includes 
 31.11  $260,000 for 2001 and $1,158,000 for 
 31.12  2002. 
 31.13  The 2003 appropriation includes 
 31.14  $129,000 for 2002 and $0 for 2003. 
 31.15  Subd. 5.  Alternative Facilities
 31.16  Bonding Aid        
 31.17      19,279,000     19,287,000
 31.18  For alternative facilities bonding aid, 
 31.19  according to Minnesota Statutes, 
 31.20  section 123B.59, subdivision 1. 
 31.21  The 2002 appropriation includes 
 31.22  $1,921,000 for 2001 and $17,358,000 for 
 31.23  2002. 
 31.24  The 2003 appropriation includes 
 31.25  $1,929,000 for 2002 and $17,358,000 for 
 31.26  2003. 
 31.27  Subd. 6.  Telecommunication Access
 31.28  Revenue            
 31.29      17,968,000      1,852,000
 31.30  For telecommunication access cost 
 31.31  revenue under Minnesota Statutes, 
 31.32  section 125B.25. 
 31.33  The 2002 appropriation includes 
 31.34  $1,300,000 for 2001 and $16,668,000 for 
 31.35  2002. 
 31.36  The 2003 appropriation includes 
 31.37  $1,852,000 for 2002 and $0 for 2003. 
 31.38  If the appropriation amount is 
 31.39  insufficient, the commissioner shall 
 31.40  reduce the reimbursement rate in 
 31.41  Minnesota Statutes, section 125B.25, 
 31.42  subdivisions 5 and 6, and the revenue 
 31.43  for the 2001-2002 school year shall be 
 31.44  prorated.  The reimbursement rate shall 
 31.45  not exceed 100 percent. 
 31.46  Subd. 7.  Declining Pupil Aid - St. Peter
 31.47         173,000         91,000
 31.48  For a grant to independent school 
 31.49  district No. 508, St. Peter, to 
 31.50  ameliorate general fund operating 
 31.51  losses associated with the March 1998 
 31.52  tornado. 
 32.1   Subd. 8.  Floods; Declining Pupil
 32.2   Aid                
 32.3          921,000        -0-    
 32.4   For declining pupil aid under Laws 
 32.5   2000, chapter 489, article 5, section 
 32.6   23. 
 32.7   Sec. 9.  NUTRITION PROGRAMS 
 32.8   Subdivision 1.  Total  
 32.9   Appropriation                         12,000,000     12,300,000
 32.10  The amounts that may be spent from this 
 32.11  appropriation for each program are 
 32.12  specified in the following subdivisions.
 32.13  Subd. 2.  School Lunch       
 32.14       8,710,000      8,950,000
 32.15  (a) For school lunch aid according to 
 32.16  Minnesota Statutes, section 124D.111, 
 32.17  and Code of Federal Regulations, title 
 32.18  7, section 210.17, and for school milk 
 32.19  aid according to Minnesota Statutes, 
 32.20  section 124D.118. 
 32.21  (b) Not more than $800,000 of the 
 32.22  amount appropriated each year may be 
 32.23  used for school milk aid. 
 32.24  Subd. 3.  School Breakfast   
 32.25         640,000        700,000
 32.26  For school breakfast aid under 
 32.27  Minnesota Statutes, section 124D.115. 
 32.28  Subd. 4.  Summer Food Service
 32.29  Replacement Aid                
 32.30         150,000        150,000
 32.31  For summer food service replacement aid 
 32.32  under Minnesota Statutes, section 
 32.33  124D.119. 
 32.34  Subd. 5.  Fast Break to Learning Grants
 32.35       2,500,000      2,500,000
 32.36  For fast break to learning grants under 
 32.37  Minnesota Statutes, section 124D.1156. 
 32.38  Sec. 10.  LIBRARIES 
 32.39  Subdivision 1.  Total  
 32.40  Appropriation                         10,673,000     10,673,000
 32.41  The amounts that may be spent from this 
 32.42  appropriation for each program are 
 32.43  specified in the following subdivisions.
 32.44  Subd. 2.  Basic Support Grants
 32.45       8,570,000      8,570,000
 32.46  For basic support grants according to 
 32.47  Minnesota Statutes, sections 134.32 to 
 33.1   134.35. 
 33.2   The 2002 appropriation includes 
 33.3   $857,000 for 2001 and $7,713,000 for 
 33.4   2002. 
 33.5   The 2003 appropriation includes 
 33.6   $857,000 for 2002 and $7,713,000 for 
 33.7   2003. 
 33.8   Subd. 3.  Multicounty, Multitype
 33.9   Library Systems   
 33.10         903,000        903,000
 33.11  For grants according to Minnesota 
 33.12  Statutes, sections 134.353 and 134.354, 
 33.13  to multicounty, multitype library 
 33.14  systems. 
 33.15  The 2002 appropriation includes $90,000 
 33.16  for 2001 and $813,000 for 2002. 
 33.17  The 2003 appropriation includes $90,000 
 33.18  for 2002 and $813,000 for 2003. 
 33.19  Subd. 4.  Regional Library   
 33.20  Telecommunications Aid
 33.21       1,200,000      1,200,000
 33.22  For grants to regional public library 
 33.23  systems under Minnesota Statutes, 
 33.24  section 134.47. 
 33.25  Any balance in the first year does not 
 33.26  cancel but is available in the second 
 33.27  year. 
 33.28  Sec. 11.  STATE AGENCIES 
 33.29  Subdivision 1.  Total  
 33.30  Appropriation                         48,601,000     49,509,000
 33.31  The amounts that may be spent from this 
 33.32  appropriation for each program are 
 33.33  specified in the following subdivisions.
 33.34  Subd. 2.  Department of Children,          
 33.35  Families, and Learning
 33.36      30,565,000     31,083,000
 33.37  (a) Of this amount, $41,000 each year 
 33.38  is for the Minnesota Academy of Science 
 33.39  and $260,000 each year is for the 
 33.40  Minnesota Children's Museum. 
 33.41  (b) The expenditures of federal grants 
 33.42  and aids as shown in the biennial 
 33.43  budget document and its supplement are 
 33.44  approved and appropriated and shall be 
 33.45  spent as indicated.  
 33.46  Any balance in the first year does not 
 33.47  cancel but is available in the second 
 33.48  year. 
 33.49  Subd. 3.  Perpich Center for Arts
 33.50  Education          
 34.1        7,531,000      7,666,000
 34.2   This appropriation is to the Perpich 
 34.3   center for arts education. 
 34.4   Any balance in the first year does not 
 34.5   cancel but is available in the second 
 34.6   year. 
 34.7   Subd. 4.  Minnesota State Academies
 34.8       10,505,000     10,760,000
 34.9   This appropriation is to the Minnesota 
 34.10  State academies for the deaf and for 
 34.11  the blind. 
 34.12  Any balance in the first year does not 
 34.13  cancel but is available in the second 
 34.14  year. 
 34.15                             ARTICLE 4
 34.16                      EARLY CHILDHOOD PROGRAMS
 34.17     Section 1.  Minnesota Statutes 2000, section 119B.011, 
 34.18  subdivision 19, is amended to read: 
 34.19     Subd. 19.  [PROVIDER.] "Provider" means a child care 
 34.20  license holder who operates a family child care home, a group 
 34.21  family child care home, a child care center, a nursery school, a 
 34.22  day nursery, a school age care program; a license-exempt school 
 34.23  age care program operating under the auspices of a local school 
 34.24  board or a park or recreation board of a city of the first class 
 34.25  that has adopted school age care guidelines which meet or exceed 
 34.26  guidelines recommended by the department, or a nonlicensed an 
 34.27  individual or child care center or facility, either licensed or 
 34.28  unlicensed, providing legal child care services as defined under 
 34.29  section 245A.03.  A legally unlicensed registered family child 
 34.30  care provider who is must be at least 18 years of age, and who 
 34.31  is not a member of the MFIP assistance unit or a member of the 
 34.32  family receiving child care assistance under this chapter.  
 34.33     Sec. 2.  Minnesota Statutes 2000, section 124D.16, 
 34.34  subdivision 2, is amended to read: 
 34.35     Subd. 2.  [AMOUNT OF AID.] (a) A district is eligible to 
 34.36  receive school readiness aid if the program plan as required by 
 34.37  subdivision 1 has been approved by the commissioner. 
 34.38     (b) For fiscal year 1998 2002 and thereafter, a district 
 34.39  must receive school readiness aid equal to: 
 35.1      (1) the number of eligible four-year old children in the 
 35.2   district on October 1 for the previous school year times the 
 35.3   ratio of 50 percent of the total school readiness aid for that 
 35.4   year to the total number of eligible four-year old children 
 35.5   reported to the commissioner for that the previous school year; 
 35.6   plus 
 35.7      (2) the number of pupils enrolled in the school district 
 35.8   from families eligible for the free or reduced school lunch 
 35.9   program for the second previous school year times the ratio of 
 35.10  50 percent of the total school readiness aid for that year to 
 35.11  the total number of pupils in the state from families eligible 
 35.12  for the free or reduced school lunch program for the second 
 35.13  previous school year. 
 35.14                             ARTICLE 5
 35.15                             PREVENTION
 35.16     Section 1.  Minnesota Statutes 2000, section 119A.12, is 
 35.17  amended by adding a subdivision to read: 
 35.18     Subd. 4.  [AUTHORITY TO DISBURSE FUNDS.] The commissioner 
 35.19  may disburse trust fund money to any public or private nonprofit 
 35.20  agency to fund a child abuse prevention program.  State funds 
 35.21  appropriated for child maltreatment prevention grants may be 
 35.22  transferred to the children's trust fund special revenue account 
 35.23  and are available to carry out this section. 
 35.24     Sec. 2.  Minnesota Statutes 2000, section 119A.12, is 
 35.25  amended by adding a subdivision to read: 
 35.26     Subd. 5.  [PLAN FOR DISBURSEMENT OF FUNDS.] The 
 35.27  commissioner shall develop a plan to disburse money from the 
 35.28  trust fund.  The plan must ensure that all geographic areas of 
 35.29  the state have an equal opportunity to establish prevention 
 35.30  programs and receive trust fund money. 
 35.31     Sec. 3.  Minnesota Statutes 2000, section 119A.12, is 
 35.32  amended by adding a subdivision to read: 
 35.33     Subd. 6.  [OPERATIONAL COSTS.] $120,000 each year is 
 35.34  appropriated from the children's trust fund to the special 
 35.35  revenue fund for administration and indirect costs of the 
 35.36  children's trust fund program. 
 36.1      Sec. 4.  Minnesota Statutes 2000, section 119A.13, 
 36.2   subdivision 4, is amended to read: 
 36.3      Subd. 4.  [RESPONSIBILITIES OF COMMISSIONER.] (a) The 
 36.4   commissioner shall: 
 36.5      (1) provide for the coordination and exchange of 
 36.6   information on the establishment and maintenance of prevention 
 36.7   programs; 
 36.8      (2) develop and publish criteria for receiving trust fund 
 36.9   money by prevention programs; 
 36.10     (3) review, approve, and monitor the spending of trust fund 
 36.11  money by prevention programs; 
 36.12     (4) provide statewide educational and public informational 
 36.13  seminars to develop public awareness on preventing child abuse; 
 36.14  to encourage professional persons and groups to recognize 
 36.15  instances of child abuse and work to prevent them; to make 
 36.16  information on child abuse prevention available to the public 
 36.17  and to organizations and agencies; and to encourage the 
 36.18  development of prevention programs, including programs that 
 36.19  provide support for adolescent parents, fathering education 
 36.20  programs, and other prevention activities designed to prevent 
 36.21  teen pregnancy; 
 36.22     (5) establish a procedure for an annual, internal 
 36.23  evaluation of the functions, responsibilities, and performance 
 36.24  of the commissioner in carrying out Laws 1986, chapter 423; 
 36.25     (6) provide technical assistance to local councils and 
 36.26  agencies working in the area of child abuse prevention; and 
 36.27     (7) accept and review grant applications beginning June 1, 
 36.28  1987. 
 36.29     (b) The commissioner shall recommend to the governor 
 36.30  changes in state programs, statutes, policies, budgets, and 
 36.31  standards that will reduce the problems of child abuse, improve 
 36.32  coordination among state agencies that provide prevention 
 36.33  services, and improve the condition of children, parents, or 
 36.34  guardians in need of prevention program services. 
 36.35     Sec. 5.  Minnesota Statutes 2000, section 119A.21, is 
 36.36  amended to read: 
 37.1      119A.21 [GRANTS TO SERVICE PROVIDER PROGRAMS.] 
 37.2      Subdivision 1.  [GRANTS AWARDED.] The commissioner shall 
 37.3   award grants to programs which that provide abused children 
 37.4   services to abused or neglected children.  Grants shall be 
 37.5   awarded in a manner that ensures that they are equitably 
 37.6   distributed to programs serving metropolitan and nonmetropolitan 
 37.7   populations.  
 37.8      Subd. 2.  [APPLICATIONS.] Any public or private nonprofit 
 37.9   agency may apply to the commissioner for a grant to provide 
 37.10  abused children services.  The application shall be submitted in 
 37.11  on a form approved prescribed by the commissioner after 
 37.12  consultation with the abused children advisory council and shall 
 37.13  include:.  
 37.14     (1) a proposal for the provision of abused children 
 37.15  services to, or on behalf of, abused children, children at risk, 
 37.16  and their families; 
 37.17     (2) a proposed budget; 
 37.18     (3) evidence of ability to represent the interests of 
 37.19  abused children and their families to local law enforcement 
 37.20  agencies and courts, social services, and health agencies; 
 37.21     (4) evidence of ability to do outreach to unserved and 
 37.22  underserved populations and to provide culturally and 
 37.23  linguistically appropriate services; and 
 37.24     (5) any other information the commissioner may require by 
 37.25  policy or by rule adopted under chapter 14, after considering 
 37.26  the recommendations of the abused children advisory council.  
 37.27     Programs which have been approved for grants in prior years 
 37.28  may submit materials which indicate changes in items listed in 
 37.29  clauses (1) to (5), in order to qualify for renewal funding.  
 37.30  Nothing in this subdivision may be construed to require programs 
 37.31  to submit complete applications for each year of funding.  
 37.32     Subd. 3.  [DUTIES.] Every public or private nonprofit 
 37.33  agency which receives a grant under this section to provide 
 37.34  abused children services shall comply with all requirements of 
 37.35  the commissioner related to the administration of the grants.  
 37.36     Subd. 4.  [CLASSIFICATION OF DATA COLLECTED BY GRANTEES.] 
 38.1   Personal history information and other information collected, 
 38.2   used, or maintained by a grantee from which the identity of any 
 38.3   abused child or family members may be determined is private data 
 38.4   on individuals as defined in section 13.02, subdivision 12, and 
 38.5   the grantee shall maintain the data in accordance with 
 38.6   provisions of chapter 13. 
 38.7      Sec. 6.  Minnesota Statutes 2000, section 119A.22, is 
 38.8   amended to read: 
 38.9      119A.22 [DUTIES OF THE COMMISSIONER.] 
 38.10     The commissioner shall:  
 38.11     (1) review applications and award grants to programs 
 38.12  pursuant to section 119A.21 after considering the recommendation 
 38.13  of the abused children advisory council; 
 38.14     (2) appoint members of the abused children advisory council 
 38.15  created under section 119A.23 and provide consultative staff and 
 38.16  other administrative services to the council; 
 38.17     (3) after considering the recommendation of the abused 
 38.18  children advisory council, appoint a program director to perform 
 38.19  the duties set forth in this clause.  In appointing the program 
 38.20  director the commissioner shall give due consideration to the 
 38.21  list of applicants submitted to the commissioner pursuant to 
 38.22  this section.  The program director shall administer the funds 
 38.23  appropriated for sections 119A.20 to 119A.23, consult with and 
 38.24  provide staff to the advisory council and perform other duties 
 38.25  related to abused children's programs as the commissioner may 
 38.26  assign; 
 38.27     (4) design a uniform method of collecting data on abused 
 38.28  children's programs to be used to monitor and assure compliance 
 38.29  of the programs funded under section 119A.21; 
 38.30     (5) (3) provide technical aid assistance to applicants in 
 38.31  the development of grant requests and to programs grantees in 
 38.32  meeting the data collection requirements established by the 
 38.33  commissioner; and 
 38.34     (6) (4) adopt, under chapter 14, all rules necessary to 
 38.35  implement the provisions of sections 119A.20 to 119A.23.  
 38.36     Sec. 7.  [119A.35] [ADVISORY COUNCIL.] 
 39.1      Subdivision 1.  [GENERALLY.] The advisory council is 
 39.2   established under section 15.059 to advise the commissioner on 
 39.3   the implementation and continued operations of sections 119A.10 
 39.4   to 119A.16 and 119A.20 to 119A.22.  The council shall expire 
 39.5   June 30, 2005. 
 39.6      Subd. 2.  [COUNCIL MEMBERSHIP.] The council shall consist 
 39.7   of a total of 22 members.  The governor shall appoint 18 of 
 39.8   these members.  The commissioners of human services and health 
 39.9   shall each appoint one member.  The senate shall appoint one 
 39.10  member from the senate committee with jurisdiction over family 
 39.11  and early childhood education and the house of representatives 
 39.12  shall appoint one member from the house committee with 
 39.13  jurisdiction over family and early childhood education. 
 39.14     Council members shall have knowledge in the areas of child 
 39.15  abuse and neglect prevention, and knowledge of the risk factors 
 39.16  that can lead to child abuse and neglect.  Council members shall 
 39.17  be representative of local government, criminal justice, 
 39.18  parents, consumers of services, health and human services 
 39.19  professionals, faith communities, professional and volunteer 
 39.20  providers of child abuse and neglect prevention services, racial 
 39.21  and ethnic minority communities, and the demographic and 
 39.22  geographic composition of the state.  Ten council members shall 
 39.23  reside in the seven-county metropolitan area and eight shall 
 39.24  reside in nonmetropolitan areas. 
 39.25     Subd. 3.  [RESPONSIBILITIES.] The council shall: 
 39.26     (1) advise the commissioner on planning, policy 
 39.27  development, data collection, rulemaking, funding, and 
 39.28  evaluation of the programs under the sections listed in 
 39.29  subdivision 1; 
 39.30     (2) coordinate and exchange information on the 
 39.31  establishment and ongoing operation of the programs listed in 
 39.32  subdivision 1; 
 39.33     (3) develop and publish criteria and guidelines for 
 39.34  receiving grants relating to child abuse and neglect prevention 
 39.35  and safety and support of child victims, including, but not 
 39.36  limited to, funds dedicated to the children's trust fund and 
 40.1   abused children program; 
 40.2      (4) provide guidance in the development of statewide 
 40.3   education and public information activities that increase public 
 40.4   awareness in the prevention and intervention of child abuse and 
 40.5   neglect and encourage the development of prevention and 
 40.6   intervention programs, which includes the safety of child 
 40.7   victims; 
 40.8      (5) guide, analyze, and disseminate results in the 
 40.9   development of appropriate evaluation procedures for all 
 40.10  programs receiving funds under subdivision 1; and 
 40.11     (6) assist the commissioner in identifying service gaps or 
 40.12  duplication in services, including geographic dispersion of 
 40.13  resources, programs reflecting the cycle of child abuse, and the 
 40.14  availability of culturally appropriate intervention and 
 40.15  prevention services. 
 40.16     Sec. 8.  [REVISOR INSTRUCTION.] 
 40.17     In the next and subsequent editions of Minnesota Statutes 
 40.18  and Minnesota Rules, the revisor shall renumber Minnesota 
 40.19  Statutes, section 119A.13, subdivision 4, as Minnesota Statutes, 
 40.20  section 119A.12, subdivision 4, and make necessary 
 40.21  cross-reference changes consistent with the renumbering. 
 40.22     Sec. 9.  [REPEALER.] 
 40.23     Minnesota Statutes 2000, sections 119A.13, subdivisions 1, 
 40.24  2, and 3; 119A.14, subdivision 2; 119A.23; 124D.33; and 
 40.25  124D.331, are repealed. 
 40.26                             ARTICLE 6
 40.27               SELF-SUFFICIENCY AND LIFELONG LEARNING
 40.28     Section 1.  Minnesota Statutes 2000, section 124D.52, 
 40.29  subdivision 2, is amended to read: 
 40.30     Subd. 2.  [PROGRAM APPROVAL.] (a) To receive aid under this 
 40.31  section, a district, a consortium of districts, the department 
 40.32  of corrections, or a private nonprofit organization must submit 
 40.33  an application by June 1 describing the program, on a form 
 40.34  provided by the department.  The program must be approved by the 
 40.35  commissioner according to the following criteria:  
 40.36     (1) how the needs of different levels of learning will be 
 41.1   met; 
 41.2      (2) for continuing programs, an evaluation of results; 
 41.3      (3) anticipated number and education level of participants; 
 41.4      (4) coordination with other resources and services; 
 41.5      (5) participation in a consortium, if any, and money 
 41.6   available from other participants; 
 41.7      (6) management and program design; 
 41.8      (7) volunteer training and use of volunteers; 
 41.9      (8) staff development services; 
 41.10     (9) program sites and schedules; 
 41.11     (10) program expenditures that qualify for aid; 
 41.12     (11) program ability to provide data related to learner 
 41.13  outcomes as required by law; and 
 41.14     (12) a copy of the memorandum of understanding described in 
 41.15  subdivision 1 submitted to the commissioner.  
 41.16     (b) Adult basic education programs may be approved under 
 41.17  this subdivision for up to five years.  Five-year program 
 41.18  approval must be granted to an applicant who has demonstrated 
 41.19  the capacity to: 
 41.20     (1) offer comprehensive learning opportunities and support 
 41.21  service choices appropriate for and accessible to adults at all 
 41.22  basic skill need levels; 
 41.23     (2) provide a participatory and experiential learning 
 41.24  approach based on the strengths, interests, and needs of each 
 41.25  adult, that enables adults with basic skill needs to: 
 41.26     (i) identify, plan for, and evaluate their own progress 
 41.27  toward achieving their defined educational and occupational 
 41.28  goals; 
 41.29     (ii) master the basic academic reading, writing, and 
 41.30  computational skills, as well as the problem-solving, decision 
 41.31  making, interpersonal effectiveness, and other life and learning 
 41.32  skills they need to function effectively in a changing society; 
 41.33     (iii) locate and be able to use the health, governmental, 
 41.34  and social services and resources they need to improve their own 
 41.35  and their families' lives; and 
 41.36     (iv) continue their education, if they desire, to at least 
 42.1   the level of secondary school completion, with the ability to 
 42.2   secure and benefit from continuing education that will enable 
 42.3   them to become more employable, productive, and responsible 
 42.4   citizens; 
 42.5      (3) plan, coordinate, and develop cooperative agreements 
 42.6   with community resources to address the needs that the adults 
 42.7   have for support services, such as transportation, flexible 
 42.8   course scheduling, convenient class locations, and child care; 
 42.9      (4) collaborate with business, industry, labor unions, and 
 42.10  employment-training agencies, as well as with family and 
 42.11  occupational education providers, to arrange for resources and 
 42.12  services through which adults can attain economic 
 42.13  self-sufficiency; 
 42.14     (5) provide sensitive and well trained adult education 
 42.15  personnel who participate in local, regional, and statewide 
 42.16  adult basic education staff development events to master 
 42.17  effective adult learning and teaching techniques; 
 42.18     (6) participate in regional adult basic education peer 
 42.19  program reviews and evaluations; 
 42.20     (7) submit accurate and timely performance and fiscal 
 42.21  reports; 
 42.22     (8) submit accurate and timely reports related to program 
 42.23  outcomes and learner follow-up information; and 
 42.24     (9) spend adult basic education aid on adult basic 
 42.25  education purposes only, which are specified in sections 
 42.26  124D.518 to 124D.531.  
 42.27     (c) The commissioner shall require each district to provide 
 42.28  notification by February 1, 2001, of its intent to apply for 
 42.29  funds under this section as a single district or as part of an 
 42.30  identified consortium of districts.  A district receiving funds 
 42.31  under this section must notify the commissioner by February 1 of 
 42.32  its intent to change its application status for applications due 
 42.33  the following June 1. 
 42.34     Sec. 2.  Minnesota Statutes 2000, section 124D.522, is 
 42.35  amended to read: 
 42.36     124D.522 [ADULT BASIC EDUCATION SUPPLEMENTAL SERVICE 
 43.1   GRANTS.] 
 43.2      (a) The commissioner, in consultation with the policy 
 43.3   review task force under section 124D.521, may make grants to 
 43.4   nonprofit organizations to provide services that are not offered 
 43.5   by a district adult basic education program or that are 
 43.6   supplemental to either the statewide adult basic education 
 43.7   program, or a district's adult basic education program.  The 
 43.8   commissioner may make grants for:  staff development for adult 
 43.9   basic education teachers and administrators; training for 
 43.10  volunteer tutors; training, services, and materials for serving 
 43.11  disabled students through adult basic education programs; 
 43.12  statewide promotion of adult basic education services and 
 43.13  programs; development and dissemination of instructional and 
 43.14  administrative technology for adult basic education programs; 
 43.15  programs which primarily serve communities of color; adult basic 
 43.16  education distance learning projects, including television 
 43.17  instruction programs; and other supplemental services to support 
 43.18  the mission of adult basic education and innovative delivery of 
 43.19  adult basic education services.  
 43.20     (b) The commissioner must establish eligibility criteria 
 43.21  and grant application procedures.  Grants under this section 
 43.22  must support services throughout the state, focus on educational 
 43.23  results for adult learners, and promote outcome-based 
 43.24  achievement through adult basic education programs.  Beginning 
 43.25  in fiscal year 2002, the commissioner may make grants under this 
 43.26  section from funds specifically appropriated the state total 
 43.27  adult basic education aid set aside for supplemental service 
 43.28  grants under section 124D.531.  Up to one-third one-fourth of 
 43.29  the appropriation for supplemental service grants must be used 
 43.30  for grants for adult basic education programs to encourage and 
 43.31  support innovations in adult basic education instruction and 
 43.32  service delivery.  A grant to a single organization cannot 
 43.33  exceed $100,000.  Nothing in this section prevents an approved 
 43.34  adult basic education program from using state or federal aid to 
 43.35  purchase supplemental services. 
 43.36     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2001. 
 44.1      Sec. 3.  Minnesota Statutes 2000, section 124D.531, 
 44.2   subdivision 1, is amended to read: 
 44.3      Subdivision 1.  [STATE TOTAL ADULT BASIC EDUCATION AID.] 
 44.4   (a) The state total adult basic education aid for fiscal year 
 44.5   2001 equals $30,157,000.  The state total adult basic education 
 44.6   aid for later years equals: 
 44.7      (1) the state total adult basic education aid for the 
 44.8   preceding fiscal year; times 
 44.9      (2) the lesser of: 
 44.10     (i) 1.08, or 
 44.11     (ii) the greater of 1.00 or the ratio of the state total 
 44.12  contact hours in the first prior program year to the state total 
 44.13  contact hours in the second prior program year.  Beginning in 
 44.14  fiscal year 2002, two percent of the state total adult basic 
 44.15  education aid must be set aside for adult basic education 
 44.16  supplemental service grants under section 124D.522. 
 44.17     (b) The state total adult basic education aid, excluding 
 44.18  basic population aid, equals the difference between the amount 
 44.19  computed in paragraph (a), and the state total basic population 
 44.20  aid under subdivision 2. 
 44.21     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2001. 
 44.22     Sec. 4.  Minnesota Statutes 2000, section 124D.531, 
 44.23  subdivision 3, is amended to read: 
 44.24     Subd. 3.  [PROGRAM REVENUE.] Adult basic education programs 
 44.25  established under section 124D.52 and approved by the 
 44.26  commissioner are eligible for revenue under this subdivision.  
 44.27  For fiscal year 2001 and later, adult basic education revenue 
 44.28  for each approved program equals the sum of: 
 44.29     (1) the basic population aid under subdivision 2 for 
 44.30  districts participating in the program during the current 
 44.31  program year; plus 
 44.32     (2) 84 percent times the amount computed in subdivision 1, 
 44.33  paragraph (b), times the ratio of the contact hours for students 
 44.34  participating in the program during the first prior program year 
 44.35  to the state total contact hours during the first prior program 
 44.36  year; plus 
 45.1      (3) eight percent times the amount computed in subdivision 
 45.2   1, paragraph (b), times the ratio of the enrollment of students 
 45.3   with limited English proficiency during the second prior school 
 45.4   year in districts participating in the program during the 
 45.5   current program year to the state total enrollment of students 
 45.6   with limited English proficiency during the second prior school 
 45.7   year in districts participating in adult basic education 
 45.8   programs during the current program year; plus 
 45.9      (4) eight percent times the amount computed in subdivision 
 45.10  1, paragraph (b), times the ratio of the latest federal census 
 45.11  count of the number of adults aged 20 or older with no diploma 
 45.12  residing in the districts participating in the program during 
 45.13  the current program year to the latest federal census count of 
 45.14  the state total number of adults aged 20 or older with no 
 45.15  diploma residing in the districts participating in adult basic 
 45.16  education programs during the current program year. 
 45.17                             ARTICLE 7
 45.18                         GENERAL EDUCATION
 45.19     Section 1.  Minnesota Statutes 2000, section 123B.42, 
 45.20  subdivision 3, is amended to read: 
 45.21     Subd. 3.  [COST; LIMITATION.] (a) The cost per pupil of the 
 45.22  textbooks, individualized instructional or cooperative learning 
 45.23  materials, and standardized tests provided for in this section 
 45.24  for each school year must not exceed the statewide average 
 45.25  expenditure per pupil, adjusted pursuant to clause (b), by the 
 45.26  Minnesota public elementary and secondary schools for textbooks, 
 45.27  individualized instructional materials and standardized tests as 
 45.28  computed and established by the department by March February 1 
 45.29  of the preceding school year from the most recent public school 
 45.30  year data then available. 
 45.31     (b) The cost computed in clause (a) shall be increased by 
 45.32  an inflation adjustment equal to the percent of increase in the 
 45.33  formula allowance, pursuant to section 126C.10, subdivision 2, 
 45.34  from the second preceding school year to the current school year.
 45.35     (c) The commissioner shall allot to the districts or 
 45.36  intermediary service areas the total cost for each school year 
 46.1   of providing or loaning the textbooks, individualized 
 46.2   instructional or cooperative learning materials, and 
 46.3   standardized tests for the pupils in each nonpublic school.  The 
 46.4   allotment shall not exceed the product of the statewide average 
 46.5   expenditure per pupil, according to clause (a), adjusted 
 46.6   pursuant to clause (b), multiplied by the number of nonpublic 
 46.7   school pupils who make requests pursuant to this section and who 
 46.8   are enrolled as of September 15 of the current school year. 
 46.9      Sec. 2.  Minnesota Statutes 2000, section 123B.44, 
 46.10  subdivision 6, is amended to read: 
 46.11     Subd. 6.  [COMPUTATION OF MAXIMUM ALLOTMENTS.] For purposes 
 46.12  of computing maximum allotments for each school year pursuant to 
 46.13  this section, the average public school expenditure per pupil 
 46.14  for health services and the average public school expenditure 
 46.15  per secondary pupil for guidance and counseling services shall 
 46.16  be computed and established by the department by March February 
 46.17  1 of the preceding school year from the most recent public 
 46.18  school year data then available. 
 46.19     Sec. 3.  Minnesota Statutes 2000, section 123B.75, 
 46.20  subdivision 5, is amended to read: 
 46.21     Subd. 5.  [LEVY RECOGNITION.] (a) "School district tax 
 46.22  settlement revenue" means the current, delinquent, and 
 46.23  manufactured home property tax receipts collected by the county 
 46.24  and distributed to the school district. 
 46.25     (b) In June of each year 2001, the school district must 
 46.26  recognize as revenue, in the fund for which the levy was made, 
 46.27  the lesser of:  
 46.28     (1) the sum of May, June, and July school district tax 
 46.29  settlement revenue received in that calendar year plus general 
 46.30  education aid according to section 126C.13, subdivision 4, 
 46.31  received in July and August of that calendar year; or 
 46.32     (2) the sum of: 
 46.33     (i) 31 percent of the referendum levy certified in the 
 46.34  prior calendar year according to section 126C.17, subdivision 9; 
 46.35  plus 
 46.36     (ii) the entire amount of the levy certified in the prior 
 47.1   calendar year according to sections 124D.86, subdivision 4, for 
 47.2   school districts receiving revenue under 124D.86, subdivision 3, 
 47.3   clauses (1), (2), and (3); 126C.41, subdivisions 1, 2, and 3, 
 47.4   paragraphs (4), (5), and (6); 126C.43, subdivision 2; and 
 47.5   126C.48, subdivision 6.  
 47.6      (c) For fiscal year 2002 and later years, in June of each 
 47.7   year, the school district must recognize as revenue, in the fund 
 47.8   for which the levy was made, the lesser of: 
 47.9      (1) the sum of May, June, and July school district tax 
 47.10  settlement revenue received in that calendar year, plus general 
 47.11  education aid according to section 126C.13, subdivision 4, 
 47.12  received in July and August of that calendar year; or 
 47.13     (2) the sum of: 
 47.14     (i) the lesser of 50 percent of the referendum levy 
 47.15  certified in the prior calendar year according to section 
 47.16  126C.17, subdivision 9; or 31 percent of the referendum levy 
 47.17  certified according to section 126C.17, in calendar year 2000; 
 47.18  plus 
 47.19     (ii) the entire amount of the levy certified in the prior 
 47.20  calendar year according to section 124D.86, subdivision 4, for 
 47.21  school districts receiving revenue under sections 124D.86, 
 47.22  subdivision 3, clauses (1) to (3); 126C.41, subdivisions 1, 2, 
 47.23  and 3, paragraphs (4) to (6); 126C.43, subdivision 2; and 
 47.24  126C.48, subdivision 6. 
 47.25     <b>[EFFECTIVE DATE.]</b> This section is effective June 30, 2001. 
 47.26     Sec. 4.  Minnesota Statutes 2000, section 123B.75, is 
 47.27  amended by adding a subdivision to read: 
 47.28     Subd. 6b.  [GENERAL EDUCATION AID.] If the amount to be 
 47.29  recognized as revenue under subdivision 5 exceeds the May, June, 
 47.30  and July school district tax settlement revenue received in that 
 47.31  calendar year, the district must recognize an amount of general 
 47.32  education aid equal to the difference between the total amount 
 47.33  to be recognized as revenue under subdivision 5, and the May, 
 47.34  June, and July school district tax settlement revenue received 
 47.35  in that calendar year as revenue in the previous fiscal year. 
 47.36     <b>[EFFECTIVE DATE.]</b> This section is effective June 30, 2001. 
 48.1      Sec. 5.  Minnesota Statutes 2000, section 126C.05, 
 48.2   subdivision 1, is amended to read: 
 48.3      Subdivision 1.  [PUPIL UNIT.] Pupil units for each 
 48.4   Minnesota resident pupil in average daily membership enrolled in 
 48.5   the district of residence, in another district under sections 
 48.6   123A.05 to 123A.08, 124D.03, 124D.06, 124D.07, 124D.08, or 
 48.7   124D.68; in a charter school under section 124D.10; or for whom 
 48.8   the resident district pays tuition under section 123A.18, 
 48.9   123A.22, 123A.30, 123A.32, 123A.44, 123A.488, 123B.88, 
 48.10  subdivision 4, 124D.04, 124D.05, 125A.03 to 125A.24, 125A.51, or 
 48.11  125A.65, shall be counted according to this subdivision.  
 48.12     (a) A prekindergarten pupil with a disability who is 
 48.13  enrolled in a program approved by the commissioner and has an 
 48.14  individual education plan is counted as the ratio of the number 
 48.15  of hours of assessment and education service to 825 times 1.25 
 48.16  with a minimum average daily membership of 0.28, but not more 
 48.17  than 1.25 pupil units. 
 48.18     (b) A prekindergarten pupil who is assessed but determined 
 48.19  not to be handicapped is counted as the ratio of the number of 
 48.20  hours of assessment service to 825 times 1.25.  
 48.21     (c) A kindergarten pupil with a disability who is enrolled 
 48.22  in a program approved by the commissioner is counted as the 
 48.23  ratio of the number of hours of assessment and education 
 48.24  services required in the fiscal year by the pupil's individual 
 48.25  education program plan to 875, but not more than one. 
 48.26     (d) A kindergarten pupil who is not included in paragraph 
 48.27  (c) is counted as .557 of a pupil unit for fiscal year 2000 and 
 48.28  thereafter. 
 48.29     (e) A pupil who is in any of grades 1 to 3 is counted as 
 48.30  1.115 pupil units for fiscal year 2000 and thereafter. 
 48.31     (f) A pupil who is any of grades 4 to 6 is counted as 1.06 
 48.32  pupil units for fiscal year 1995 and thereafter. 
 48.33     (g) A pupil who is in any of grades 7 to 12 is counted as 
 48.34  1.3 pupil units. 
 48.35     (h) A pupil who is in the post-secondary enrollment options 
 48.36  program is counted as 1.3 pupil units.  
 49.1      Sec. 6.  Minnesota Statutes 2000, section 126C.10, 
 49.2   subdivision 1, is amended to read: 
 49.3      Subdivision 1.  [GENERAL EDUCATION REVENUE.] For fiscal 
 49.4   year 2000 2002 and thereafter, the general education revenue for 
 49.5   each district equals the sum of the district's basic revenue, 
 49.6   basic skills revenue, training and experience revenue, secondary 
 49.7   sparsity revenue, elementary sparsity revenue, transportation 
 49.8   sparsity revenue, total operating capital revenue, equity 
 49.9   revenue, referendum offset adjustment, transition revenue, and 
 49.10  supplemental revenue. 
 49.11     Sec. 7.  Minnesota Statutes 2000, section 126C.10, 
 49.12  subdivision 2, is amended to read: 
 49.13     Subd. 2.  [BASIC REVENUE.] The basic revenue for each 
 49.14  district equals the formula allowance times the adjusted 
 49.15  marginal cost pupil units for the school year.  The formula 
 49.16  allowance for fiscal year 1998 is $3,581.  The formula allowance 
 49.17  for fiscal year 1999 is $3,530.  The formula allowance for 
 49.18  fiscal year 2000 is $3,740.  The formula allowance for fiscal 
 49.19  year 2001 and subsequent fiscal years is $3,964.  The formula 
 49.20  allowance for fiscal year 2002 is $4,083.  The formula allowance 
 49.21  for fiscal year 2003 and subsequent years is $4,205. 
 49.22     Sec. 8.  Minnesota Statutes 2000, section 126C.10, 
 49.23  subdivision 9, is amended to read: 
 49.24     Subd. 9.  [SUPPLEMENTAL REVENUE.] (a) A district's 
 49.25  supplemental revenue allowance for fiscal year 1994 2002 and 
 49.26  later fiscal years equals the district's supplemental 
 49.27  revenue allowance for fiscal year 1993 divided by the district's 
 49.28  1992-1993 resident pupil units 2001. 
 49.29     (b) A district's supplemental revenue allowance is reduced 
 49.30  for fiscal year 1995 and later according to subdivision 12. 
 49.31     (c) A district's supplemental revenue equals the 
 49.32  supplemental revenue allowance, if any, times its adjusted 
 49.33  marginal cost pupil units for that year.  
 49.34     (d) A district may cancel its supplemental revenue by 
 49.35  notifying the commissioner of education prior to June 30, 1994.  
 49.36  A district that is reorganizing under section 123A.35, 123A.46, 
 50.1   or 123A.48 may cancel its supplemental revenue by notifying the 
 50.2   commissioner of children, families, and learning before July 1 
 50.3   of the year of the reorganization.  If a district cancels its 
 50.4   supplemental revenue according to this paragraph, its 
 50.5   supplemental revenue allowance for fiscal year 1993 for purposes 
 50.6   of subdivision 12 and section 124A.03, subdivision 3b, equals 
 50.7   zero. 
 50.8      <b>[EFFECTIVE DATE.]</b> This section is effective for fiscal year 
 50.9   2002. 
 50.10     Sec. 9.  Minnesota Statutes 2000, section 126C.12, 
 50.11  subdivision 2, is amended to read: 
 50.12     Subd. 2.  [INSTRUCTOR DEFINED DEFINITIONS.] Primary 
 50.13  instructor (a) "Classroom teacher" means, for the purpose of the 
 50.14  annual report in subdivision 6, for collecting consistent state 
 50.15  data, and for determining the cost of reducing actual class size 
 50.16  to a level of 1 to 17, a public employee licensed by the board 
 50.17  of teaching who is authorized to teach all subjects to children 
 50.18  in any grade kindergarten through grade 6 and whose duties are 
 50.19  full-time regular classroom instruction, excluding a teacher for 
 50.20  whom federal aids are received or for whom categorical aids are 
 50.21  received pursuant to section 125A.76 or who is an itinerant 
 50.22  teacher or provides instruction outside of the regular 
 50.23  classroom.  Except as provided in section 122A.68, subdivision 
 50.24  6, instructor classroom teacher does not include supervisory and 
 50.25  support personnel, except school social workers as defined in 
 50.26  section 122A.15.  An instructor A classroom teacher whose duties 
 50.27  are less than full-time instruction must be included as an 
 50.28  equivalent only for the number of hours of instruction in grades 
 50.29  kindergarten through 6 grade 3.  
 50.30     (b) "Class size" means the district-wide ratio at each 
 50.31  grade level of the number of full-time students in kindergarten 
 50.32  through grade 3 served at least 40 percent of the time in 
 50.33  regular classrooms to the number of full-time classroom teachers 
 50.34  in kindergarten through grade 3, determined as of October 1 of 
 50.35  each school year. 
 50.36     Sec. 10.  Minnesota Statutes 2000, section 126C.12, 
 51.1   subdivision 3, is amended to read: 
 51.2      Subd. 3.  [INSTRUCTION CONTACT TIME.] Instruction may be 
 51.3   provided by a primary instructor, classroom teacher or by a team 
 51.4   of instructors classroom teachers, or by a teacher resident 
 51.5   supervised by a primary instructor classroom teacher.  The 
 51.6   district must maximize instructor classroom teacher to learner 
 51.7   average instructional contact time in the core subjects of 
 51.8   reading and mathematics. 
 51.9      Sec. 11.  Minnesota Statutes 2000, section 126C.12, 
 51.10  subdivision 4, is amended to read: 
 51.11     Subd. 4.  [REVENUE USE.] (a) Revenue must be used according 
 51.12  to either paragraph (b) or (c). 
 51.13     (b) Revenue must be used to reduce and maintain the 
 51.14  district's instructor to learner ratios average class size in 
 51.15  kindergarten through grade 6 3 to a level of 1 to 17 on 
 51.16  average.  The district must prioritize the use of the revenue to 
 51.17  attain this level initially in kindergarten and grade 1 and then 
 51.18  through the subsequent grades as revenue is available.  
 51.19     (c) The revenue may be used to prepare and use an 
 51.20  individualized learning plan for each learner.  
 51.21     (b) A district must not increase the district 
 51.22  wide instructor-to-learner ratios class sizes in other grades as 
 51.23  a result of reducing instructor-to-learner ratios class sizes in 
 51.24  kindergarten through grade 6 3.  Revenue may not be used to 
 51.25  provide instructor preparation time.  A district may use a 
 51.26  portion of the revenue reserved under this section to employ up 
 51.27  to the same number of full-time equivalent education assistants 
 51.28  or aides as the district employed during the 1992-1993 school 
 51.29  year under Minnesota Statutes 1992, section 124.331, subdivision 
 51.30  2, through fiscal year 2002.  Beginning in fiscal year 2003, 
 51.31  class size reduction revenue may only be reserved to employ 
 51.32  classroom teachers contributing to lower class sizes in 
 51.33  kindergarten through grade 3. 
 51.34     Sec. 12.  Minnesota Statutes 2000, section 126C.12, 
 51.35  subdivision 5, is amended to read: 
 51.36     Subd. 5.  [ADDITIONAL REVENUE USE.] If the board of a 
 52.1   district determines that the district has achieved and is 
 52.2   maintaining the instructor-to-learner ratios class sizes 
 52.3   specified in subdivision 4 and is using individualized learning 
 52.4   plans, the board may use the revenue to reduce class size in 
 52.5   grades 4, 5, and 6, provide all-day, everyday kindergarten, 
 52.6   prepare and use individualized learning plans, improve program 
 52.7   offerings, purchase instructional material and, services, or 
 52.8   technology, or provide staff development needed for reduced 
 52.9   instructor-to-learner ratios.  If additional revenue remains, 
 52.10  the district must use the revenue to improve program offerings, 
 52.11  including programs provided through interactive television, 
 52.12  throughout the district or other general education 
 52.13  purposes class sizes. 
 52.14     Sec. 13.  Minnesota Statutes 2000, section 126C.12, is 
 52.15  amended by adding a subdivision to read: 
 52.16     Subd. 6.  [ANNUAL REPORT.] By December 1 of each year, 
 52.17  districts receiving revenue under subdivision 1 shall make 
 52.18  available to the public a report on the amount of revenue the 
 52.19  district has received and the use of the revenue.  This report 
 52.20  shall be in the form and manner determined by the commissioner 
 52.21  and shall include the district average class sizes in 
 52.22  kindergarten through grade 6 as of October 1 of the current 
 52.23  school year and the class sizes for each site serving 
 52.24  kindergarten through grade 6 students in the district.  A copy 
 52.25  of the report shall be filed with the commissioner by December 
 52.26  15. 
 52.27     Sec. 14.  Minnesota Statutes 2000, section 126C.17, 
 52.28  subdivision 1, is amended to read: 
 52.29     Subdivision 1.  [REFERENDUM ALLOWANCE.] A district's 
 52.30  referendum revenue allowance equals the referendum revenue 
 52.31  authority for that year divided by its resident marginal cost 
 52.32  pupil units for that school year. sum of the allowance under 
 52.33  section 126C.16, subdivision 2, plus any additional allowance 
 52.34  per resident marginal cost pupil unit authorized under 
 52.35  subdivision 9 for fiscal year 2002 and later. 
 52.36     Sec. 15.  Minnesota Statutes 2000, section 126C.17, 
 53.1   subdivision 9, is amended to read: 
 53.2      Subd. 9.  [REFERENDUM REVENUE.] (a) The revenue authorized 
 53.3   by section 126C.10, subdivision 1, may be increased in the 
 53.4   amount approved by the voters of the district at a referendum 
 53.5   called for the purpose.  The referendum may be called by the 
 53.6   board or shall be called by the board upon written petition of 
 53.7   qualified voters of the district.  The referendum must be 
 53.8   conducted one or two calendar years before the increased levy 
 53.9   authority, if approved, first becomes payable.  Only one 
 53.10  election to approve an increase may be held in a calendar year.  
 53.11  Unless the referendum is conducted by mail under paragraph (g), 
 53.12  the referendum must be held on the first Tuesday after the first 
 53.13  Monday in November.  The ballot must state the maximum amount of 
 53.14  the increased revenue per resident marginal cost pupil unit, the 
 53.15  estimated referendum tax rate as a percentage of referendum 
 53.16  market value in the first year it is to be levied, and that the 
 53.17  revenue must be used to finance school operations.  The ballot 
 53.18  may state a schedule, determined by the board, of increased 
 53.19  revenue per resident marginal cost pupil unit that differs from 
 53.20  year to year over the number of years for which the increased 
 53.21  revenue is authorized.  If the ballot contains a schedule 
 53.22  showing different amounts, it must also indicate the estimated 
 53.23  referendum tax rate as a percent of referendum market value for 
 53.24  the amount specified for the first year and for the maximum 
 53.25  amount specified in the schedule.  The ballot may state that 
 53.26  existing referendum levy authority is expiring.  In this case, 
 53.27  the ballot may also compare the proposed levy authority to the 
 53.28  existing expiring levy authority, and express the proposed 
 53.29  increase as the amount, if any, over the expiring referendum 
 53.30  levy authority.  The ballot must designate the specific number 
 53.31  of years, not to exceed ten, for which the referendum 
 53.32  authorization applies.  The notice required under section 275.60 
 53.33  may be modified to read, in cases of renewing existing levies: 
 53.34     "BY VOTING "YES" ON THIS BALLOT QUESTION, YOU MAY BE VOTING 
 53.35     FOR A PROPERTY TAX INCREASE." 
 53.36     The ballot may contain a textual portion with the 
 54.1   information required in this subdivision and a question stating 
 54.2   substantially the following:  
 54.3      "Shall the increase in the revenue proposed by (petition 
 54.4   to) the board of ........., School District No. .., be approved?"
 54.5      If approved, an amount equal to the approved revenue per 
 54.6   resident marginal cost pupil unit times the resident marginal 
 54.7   cost pupil units for the school year beginning in the year after 
 54.8   the levy is certified shall be authorized for certification for 
 54.9   the number of years approved, if applicable, or until revoked or 
 54.10  reduced by the voters of the district at a subsequent referendum.
 54.11     (b) The board must prepare and deliver by first class mail 
 54.12  at least 15 days but no more than 30 days before the day of the 
 54.13  referendum to each taxpayer a notice of the referendum and the 
 54.14  proposed revenue increase.  The board need not mail more than 
 54.15  one notice to any taxpayer.  For the purpose of giving mailed 
 54.16  notice under this subdivision, owners must be those shown to be 
 54.17  owners on the records of the county auditor or, in any county 
 54.18  where tax statements are mailed by the county treasurer, on the 
 54.19  records of the county treasurer.  Every property owner whose 
 54.20  name does not appear on the records of the county auditor or the 
 54.21  county treasurer is deemed to have waived this mailed notice 
 54.22  unless the owner has requested in writing that the county 
 54.23  auditor or county treasurer, as the case may be, include the 
 54.24  name on the records for this purpose.  The notice must project 
 54.25  the anticipated amount of tax increase in annual dollars and 
 54.26  annual percentage for typical residential homesteads, 
 54.27  agricultural homesteads, apartments, and commercial-industrial 
 54.28  property within the school district. 
 54.29     The notice for a referendum may state that an existing 
 54.30  referendum levy is expiring and project the anticipated amount 
 54.31  of increase over the existing referendum levy in the first year, 
 54.32  if any, in annual dollars and annual percentage for typical 
 54.33  residential homesteads, agricultural homesteads, apartments, and 
 54.34  commercial-industrial property within the district. 
 54.35     The notice must include the following statement:  "Passage 
 54.36  of this referendum will result in an increase in your property 
 55.1   taxes."  However, in cases of renewing existing levies, the 
 55.2   notice may include the following statement:  "Passage of this 
 55.3   referendum may result in an increase in your property taxes." 
 55.4      (c) A referendum on the question of revoking or reducing 
 55.5   the increased revenue amount authorized pursuant to paragraph 
 55.6   (a) may be called by the board and shall be called by the board 
 55.7   upon the written petition of qualified voters of the district.  
 55.8   A referendum to revoke or reduce the levy amount must be based 
 55.9   upon the dollar amount, local tax rate, or amount per resident 
 55.10  marginal cost pupil unit, that was stated to be the basis for 
 55.11  the initial authorization.  Revenue approved by the voters of 
 55.12  the district pursuant to paragraph (a) must be received at least 
 55.13  once before it is subject to a referendum on its revocation or 
 55.14  reduction for subsequent years.  Only one revocation or 
 55.15  reduction referendum may be held to revoke or reduce referendum 
 55.16  revenue for any specific year and for years thereafter. 
 55.17     (d) A petition authorized by paragraph (a) or (c) is 
 55.18  effective if signed by a number of qualified voters in excess of 
 55.19  15 percent of the registered voters of the district on the day 
 55.20  the petition is filed with the board.  A referendum invoked by 
 55.21  petition must be held on the date specified in paragraph (a). 
 55.22     (e) The approval of 50 percent plus one of those voting on 
 55.23  the question is required to pass a referendum authorized by this 
 55.24  subdivision. 
 55.25     (f) At least 15 days before the day of the referendum, the 
 55.26  district must submit a copy of the notice required under 
 55.27  paragraph (b) to the commissioner and to the county auditor of 
 55.28  each county in which the district is located.  Within 15 days 
 55.29  after the results of the referendum have been certified by the 
 55.30  board, or in the case of a recount, the certification of the 
 55.31  results of the recount by the canvassing board, the district 
 55.32  must notify the commissioner of the results of the referendum. 
 55.33     (g) Except for a referendum held under subdivision 11, any 
 55.34  referendum under this section held on a day other than the first 
 55.35  Tuesday after the first Monday in November must be conducted by 
 55.36  mail in accordance with section 204B.46.  Notwithstanding 
 56.1   paragraph (b) to the contrary, in the case of a referendum 
 56.2   conducted by mail under this paragraph, the notice required by 
 56.3   paragraph (b) must be prepared and delivered by first class mail 
 56.4   at least 20 days before the referendum. 
 56.5      Sec. 16.  Minnesota Statutes 2000, section 126C.17, 
 56.6   subdivision 10, is amended to read: 
 56.7      Subd. 10.  [SCHOOL REFERENDUM LEVY; MARKET VALUE.] 
 56.8   Notwithstanding the provisions of subdivision 9, A school 
 56.9   referendum levy approved after November 1, 1992, for taxes 
 56.10  payable in 1993 and thereafter, must be levied against the 
 56.11  referendum market value of all taxable property as defined in 
 56.12  section 126C.01, subdivision 3.  Any referendum levy amount 
 56.13  subject to the requirements of this subdivision must be 
 56.14  certified separately to the county auditor under section 275.07. 
 56.15     All other provisions of subdivision 9 that do not conflict 
 56.16  with this subdivision apply to referendum levies under this 
 56.17  subdivision.  
 56.18     <b>[EFFECTIVE DATE.]</b> This section is effective for revenue for 
 56.19  fiscal year 2002. 
 56.20     Sec. 17.  Minnesota Statutes 2000, section 126C.17, 
 56.21  subdivision 11, is amended to read: 
 56.22     Subd. 11.  [REFERENDUM DATE.] (a) Except for a referendum 
 56.23  held under paragraph (b), any referendum under this section held 
 56.24  on a day other than the first Tuesday after the first Monday in 
 56.25  November must be conducted by mail in accordance with section 
 56.26  204B.46.  Notwithstanding subdivision 9, paragraph (b), to the 
 56.27  contrary, in the case of a referendum conducted by mail under 
 56.28  this paragraph, the notice required by subdivision 9, paragraph 
 56.29  (b), must be prepared and delivered by first-class mail at least 
 56.30  20 days before the referendum. 
 56.31     (b) In addition to the referenda allowed in subdivision 9, 
 56.32  clause (a), the commissioner may authorize a referendum for a 
 56.33  different day.  
 56.34     (a) The commissioner may grant authority to a district to 
 56.35  hold a referendum on a different day if the district is in 
 56.36  statutory operating debt and has an approved plan or has 
 57.1   received an extension from the department to file a plan to 
 57.2   eliminate the statutory operating debt.  
 57.3      (b) The commissioner may grant authority for a district to 
 57.4   hold a referendum on a different day if:  (1) the district will 
 57.5   conduct a bond election under chapter 475 on that same day; and 
 57.6   (2) the proceeds of the referendum will provide only additional 
 57.7   operating revenue complementing the purpose for which bonding 
 57.8   authority is sought.  The commissioner may only grant authority 
 57.9   under this paragraph if the district demonstrates to the 
 57.10  commissioner's satisfaction that the district's ability to 
 57.11  operate the new facility or achieve efficiencies with the 
 57.12  purchases connected to the proceeds of the bond sale will be 
 57.13  significantly affected if the operating referendum is not 
 57.14  conducted until the November general election.  Authority under 
 57.15  this paragraph expires November 30, 1998. 
 57.16     (c) The commissioner must approve, deny, or modify each 
 57.17  district's request for a referendum levy on a different day 
 57.18  within 60 days of receiving the request from a district. 
 57.19     Sec. 18.  Minnesota Statutes 2000, section 126C.23, 
 57.20  subdivision 5, is amended to read: 
 57.21     Subd. 5.  [DATA REPORTING.] Each district must report to 
 57.22  the commissioner the estimated amount of general education and 
 57.23  referendum initially allocated to each building under 
 57.24  subdivision 2 and the amount of any reallocations under 
 57.25  subdivision 3 by January 30 of the current fiscal year, and the 
 57.26  actual amount of general education and referendum revenue 
 57.27  initially allocated to each building under subdivision 2 and the 
 57.28  amount of any reallocations under subdivision 3 by January 30 of 
 57.29  the next fiscal year. 
 57.30     Sec. 19.  Minnesota Statutes 2000, section 126C.41, 
 57.31  subdivision 3, is amended to read: 
 57.32     Subd. 3.  [RETIREMENT LEVIES.] (1) In addition to the 
 57.33  excess levy authorized in 1976 any district within a city of the 
 57.34  first class which was authorized in 1975 to make a retirement 
 57.35  levy under Minnesota Statutes 1974, section 275.127 and chapter 
 57.36  422A may levy an amount per pupil unit which is equal to the 
 58.1   amount levied in 1975 payable 1976, under Minnesota Statutes 
 58.2   1974, section 275.127 and chapter 422A, divided by the number of 
 58.3   pupil units in the district in 1976-1977. 
 58.4      (2) In 1979 and each year thereafter, any district which 
 58.5   qualified in 1976 for an extra levy under paragraph (1) shall be 
 58.6   allowed to levy the same amount as levied for retirement in 1978 
 58.7   under this clause reduced each year by ten percent of the 
 58.8   difference between the amount levied for retirement in 1971 
 58.9   under Minnesota Statutes 1971, sections 275.127 and 422.01 to 
 58.10  422.54 and the amount levied for retirement in 1975 under 
 58.11  Minnesota Statutes 1974, section 275.127 and chapter 422A. 
 58.12     (3) (a) In 1991 and each year thereafter, a district to 
 58.13  which this subdivision applies may levy an additional amount 
 58.14  required for contributions to the Minneapolis employees 
 58.15  retirement fund as a result of the maximum dollar amount 
 58.16  limitation on state contributions to the fund imposed under 
 58.17  section 422A.101, subdivision 3.  The additional levy must not 
 58.18  exceed the most recent amount certified by the board of the 
 58.19  Minneapolis employees retirement fund as the district's share of 
 58.20  the contribution requirement in excess of the maximum state 
 58.21  contribution under section 422A.101, subdivision 3.  
 58.22     (4) (b) For taxes payable in 1994 and thereafter, special 
 58.23  school district No. 1, Minneapolis, and independent school 
 58.24  district No. 625, St. Paul, may levy for the increase in the 
 58.25  employer retirement fund contributions, under Laws 1992, chapter 
 58.26  598, article 5, section 1.  
 58.27     (5) (c) If the employer retirement fund contributions under 
 58.28  section 354A.12, subdivision 2a, are increased for fiscal year 
 58.29  1994 or later fiscal years, special school district No. 1, 
 58.30  Minneapolis, and independent school district No. 625, St. Paul, 
 58.31  may levy in payable 1994 or later an amount equal to the amount 
 58.32  derived by applying the net increase in the employer retirement 
 58.33  fund contribution rate of the respective teacher retirement fund 
 58.34  association between fiscal year 1993 and the fiscal year 
 58.35  beginning in the year after the levy is certified to the total 
 58.36  covered payroll of the applicable teacher retirement fund 
 59.1   association.  If an applicable school district levies under this 
 59.2   paragraph, they may not levy under paragraph (4) (b). 
 59.3      (6) (d) In addition to the levy authorized under paragraph 
 59.4   (5) (c), special school district No. 1, Minneapolis, may also 
 59.5   levy payable in 1997 or later an amount equal to the 
 59.6   contributions under section 423A.02, subdivision 3, and may also 
 59.7   levy in payable 1994 or later an amount equal to the state aid 
 59.8   contribution under section 354A.12, subdivision 3b.  Independent 
 59.9   school district No. 625, St. Paul, may levy payable in 1997 or 
 59.10  later an amount equal to the supplemental contributions under 
 59.11  section 423A.02, subdivision 3.  
 59.12     Sec. 20.  Minnesota Statutes 2000, section 127A.41, 
 59.13  subdivision 5, is amended to read: 
 59.14     Subd. 5.  [DISTRICT APPEAL OF AID REDUCTION; INSPECTION OF 
 59.15  DISTRICT SCHOOLS AND ACCOUNTS AND RECORDS.] Public schools shall 
 59.16  at all times be open to the inspection of the commissioner.  The 
 59.17  accounts and records of any district must be open to inspection 
 59.18  by the state auditor, or the commissioner for the purpose of 
 59.19  audits conducted under this section.  Each district shall keep 
 59.20  for a minimum of three years at least the following:  (1) 
 59.21  identification of the annual session days held, together with a 
 59.22  record of the length of each session day, (2) a record of each 
 59.23  pupil's daily attendance, with entrance and withdrawal dates, 
 59.24  and (3) identification of the pupils transported who are 
 59.25  reported for transportation aid to-and-from school 
 59.26  transportation category for each pupil as defined in section 
 59.27  123B.92, subdivision 1. 
 59.28     Sec. 21.  Minnesota Statutes 2000, section 127A.41, 
 59.29  subdivision 8, is amended to read: 
 59.30     Subd. 8.  [APPROPRIATION TRANSFERS.] If a direct 
 59.31  appropriation from the general fund to the department for any 
 59.32  education aid or grant authorized in this chapter and chapters 
 59.33  122A, 123A, 123B, 124D, 125A, 126C, and 134, excluding 
 59.34  appropriations under sections 124D.135, 124D.16, 124D.20, 
 59.35  124D.21, 124D.22, 124D.52, 124D.53 124D.531, 124D.54, 124D.55, 
 59.36  and 124D.56, exceeds the amount required, the commissioner may 
 60.1   transfer the excess to any education aid or grant appropriation 
 60.2   that is insufficient.  However, section 126C.20 applies to a 
 60.3   deficiency in the direct appropriation for general education 
 60.4   aid.  Excess appropriations must be allocated proportionately 
 60.5   among aids or grants that have insufficient appropriations.  The 
 60.6   commissioner of finance shall make the necessary transfers among 
 60.7   appropriations according to the determinations of the 
 60.8   commissioner.  If the amount of the direct appropriation for the 
 60.9   aid or grant plus the amount transferred according to this 
 60.10  subdivision is insufficient, the commissioner shall prorate the 
 60.11  available amount among eligible districts.  The state is not 
 60.12  obligated for any additional amounts. 
 60.13     Sec. 22.  Laws 2000, chapter 489, article 2, section 34, is 
 60.14  amended to read: 
 60.15     Sec. 34.  [TRAINING AND EXPERIENCE REPLACEMENT REVENUE.] 
 60.16     (a) For fiscal year 2001 only, a school district's training 
 60.17  and experience replacement revenue equals the sum of the 
 60.18  following: 
 60.19     (1) the ratio of the amount of training and experience 
 60.20  revenue the district would have received for fiscal year 1999 
 60.21  calculated using the training and experience index in Minnesota 
 60.22  Statutes 1996, section 124A.04, to its resident pupil units for 
 60.23  that year, times the district's adjusted marginal cost pupil 
 60.24  units for fiscal year 2001, times .06; plus 
 60.25     (2) the difference between .47 times the training and 
 60.26  experience revenue the district would have received for fiscal 
 60.27  year 1999, calculated using the training and experience index in 
 60.28  Minnesota Statutes 1996, section 124A.04, and the amount 
 60.29  calculated in Minnesota Statutes, section 126C.10, subdivision 
 60.30  5, for fiscal year 2001, but not less than zero. 
 60.31     (b) This revenue is paid entirely in fiscal year 2001 based 
 60.32  on estimated data. 
 60.33     (c) By January 31, 2002, the department of children, 
 60.34  families, and learning shall recalculate the revenue for each 
 60.35  district using actual data, and shall adjust the general 
 60.36  education aid paid to school districts for fiscal year 2002 by 
 61.1   the amount of the difference between the estimated revenue and 
 61.2   the actual revenue. 
 61.3      Sec. 23.  Laws 2000, chapter 489, article 2, section 37, is 
 61.4   amended to read: 
 61.5      Sec. 37.  [SPARSITY CORRECTION REVENUE.] 
 61.6      Subdivision 1.  [QUALIFICATION FOR REVENUE.] A school 
 61.7   district qualifies for sparsity correction revenue if it 
 61.8   qualifies for sparsity revenue, according to Minnesota Statutes, 
 61.9   section 126C.10, subdivisions 7 and 8, in fiscal year 2000 or 
 61.10  2001 and the amount of sparsity revenue it received in those 
 61.11  years is less than the amount it would have received in fiscal 
 61.12  year 2000 or 2001 prior to the passage of Laws 1999, chapter 
 61.13  241, article 1, sections 18 and 19. 
 61.14     Subd. 2.  [FISCAL YEAR 2000 CALCULATION.] For fiscal year 
 61.15  2000, a school district's sparsity correction revenue equals the 
 61.16  difference between sparsity revenue in fiscal year 2000 
 61.17  calculated according to Laws 1999, chapter 241, article 1, 
 61.18  sections 18 and 19, and the sparsity revenue the district would 
 61.19  have received for fiscal year 2000 had these sections of law not 
 61.20  been approved. 
 61.21     Subd. 3.  [FISCAL YEAR 2001 CALCULATION.] (a) For fiscal 
 61.22  year 2001, a school district's sparsity correction revenue 
 61.23  equals .5 times the difference between sparsity revenue in 
 61.24  fiscal year 2001 calculated according to Laws 1999, chapter 241, 
 61.25  article 1, sections 18 and 19, and the sparsity revenue the 
 61.26  district would have received for fiscal year 2001 had these 
 61.27  sections of law not been approved. 
 61.28     (b) This revenue is paid entirely in fiscal year 2001 based 
 61.29  on estimated data.  
 61.30     (c) By January 31, 2002, the department of children, 
 61.31  families, and learning shall recalculate the revenue for each 
 61.32  district using actual data and shall adjust the general 
 61.33  education aid paid to school districts for fiscal year 2002 by 
 61.34  the amount of the difference between the estimated revenue and 
 61.35  the actual revenue. 
 61.36     Sec. 24.  Laws 2000, chapter 489, article 2, section 39, 
 62.1   subdivision 2, is amended to read: 
 62.2      Subd. 2.  [SPARSITY CORRECTION REVENUE.] For sparsity 
 62.3   correction revenue: 
 62.4        $1,030,000     .....     2000
 62.5        $  515,000     .....     2001
 62.6      The 2000 appropriation is available until June 30, 2001.  
 62.7      <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 62.8   following final enactment. 
 62.9      Sec. 25.  Laws 2000, chapter 489, article 3, section 25, 
 62.10  subdivision 5, is amended to read: 
 62.11     Subd. 5.  [SPECIAL EDUCATION CROSS-SUBSIDY REVENUE.] For 
 62.12  special education cross-subsidy revenue: 
 62.13       $ 7,898,000     .....     2000 
 62.14       $18,396,000     .....     2001 
 62.15     The 2000 appropriation is available until June 30, 2001. 
 62.16     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 62.17  following final enactment. 
 62.18     Sec. 26.  [REPEALER.] 
 62.19     Minnesota Statutes 2000, section 126C.10, subdivision 23, 
 62.20  is repealed effective for revenue for fiscal year 2002. 
 62.21                             ARTICLE 8
 62.22                        EDUCATION EXCELLENCE
 62.23     Section 1.  Minnesota Statutes 2000, section 124D.128, 
 62.24  subdivision 1, is amended to read: 
 62.25     Subdivision 1.  [PROGRAM ESTABLISHED.] A learning year 
 62.26  program provides instruction throughout the year.  A pupil may 
 62.27  participate in the program and accelerate attainment of grade 
 62.28  level requirements or graduation requirements.  A learning year 
 62.29  program may begin after the close of the regular school year in 
 62.30  June.  The program may be for students in one or more grade 
 62.31  levels from kindergarten through grade 12.  
 62.32     Students may participate in the program if they reside in:  
 62.33     (1) a district that has been designated a learning year 
 62.34  site under subdivision 2; 
 62.35     (2) a district that is a member of the same education 
 62.36  district as a site; or 
 63.1      (3) a district that participates in the same area learning 
 63.2   center program as a site.  
 63.3      Sec. 2.  Minnesota Statutes 2000, section 124D.128, 
 63.4   subdivision 2, is amended to read: 
 63.5      Subd. 2.  [COMMISSIONER DESIGNATION.] An area learning 
 63.6   center designated by the state must be a site.  To be 
 63.7   designated, a district or center must demonstrate to the 
 63.8   commissioner that it will: 
 63.9      (1) provide a program of instruction that permits pupils to 
 63.10  receive instruction throughout the entire year; and 
 63.11     (2) maintain a record system that, for purposes of section 
 63.12  126C.05, permits identification of membership attributable to 
 63.13  pupils participating in the program.  The record system and 
 63.14  identification must ensure that the program will not have the 
 63.15  effect of increasing the total number of pupil units 
 63.16  attributable to an individual pupil as a result of a learning 
 63.17  year program.  The record system must include the date the pupil 
 63.18  originally enrolled in a learning year program, the pupil's 
 63.19  grade level, the date of each grade promotion, the average daily 
 63.20  membership generated in each grade level, the number of credits 
 63.21  or standards earned, and the number needed to graduate. 
 63.22     Sec. 3.  Minnesota Statutes 2000, section 124D.128, 
 63.23  subdivision 3, is amended to read: 
 63.24     Subd. 3.  [STUDENT PLANNING.] A district must inform all 
 63.25  pupils and their parents about the learning year program and 
 63.26  that participation in the program is optional.  A continual 
 63.27  learning plan must be developed at least annually for each pupil 
 63.28  with the participation of the pupil, parent or guardian, 
 63.29  teachers, and other staff.  Each participant must sign and date 
 63.30  the plan.  The plan must specify the learning experiences that 
 63.31  must occur each during the entire fiscal year and, for secondary 
 63.32  students, for graduation.  The plan must include:  
 63.33     (1) the pupil's learning objectives and experiences; 
 63.34     (2) the assessment measurements used to evaluate each 
 63.35  objective; 
 63.36     (3) requirements for grade level progression; and 
 64.1      (4) for pupils generating more than one average daily 
 64.2   membership in a given grade, an indication of which objectives 
 64.3   were unmet. 
 64.4   The plan may be modified to conform to district schedule 
 64.5   changes.  The district may not modify the plan if the 
 64.6   modification would result in delaying the student's time of 
 64.7   graduation.  
 64.8      Sec. 4.  Minnesota Statutes 2000, section 124D.128, 
 64.9   subdivision 6, is amended to read: 
 64.10     Subd. 6.  [REVENUE COMPUTATION AND REPORTING.] Aid and levy 
 64.11  revenue computations must be based on the total number of hours 
 64.12  of education programs for pupils in average daily membership for 
 64.13  each fiscal year.  For purposes of section 126C.05, Average 
 64.14  daily membership shall be computed by dividing the total number 
 64.15  of hours of participation for the fiscal year by the minimum 
 64.16  number of hours for a year determined for the appropriate grade 
 64.17  level according to section 126C.05, subdivision 15.  Hours of 
 64.18  participation that occur after the close of the regular 
 64.19  instructional year and before July 1 must be attributed to the 
 64.20  following fiscal year.  Thirty hours may be used for teacher 
 64.21  workshops, staff development, or parent-teacher conferences.  As 
 64.22  part of each pilot program, the department and each district 
 64.23  must report and evaluate the changes needed to adjust the dates 
 64.24  of the fiscal year for aid and levy computation and fiscal year 
 64.25  reporting.  For revenue computation purposes, the learning year 
 64.26  program shall generate revenue based on the formulas for the 
 64.27  fiscal year in which the services are provided.  Dates of grade 
 64.28  promotion must be reported to the department for all pupils who 
 64.29  have participated in the program. 
 64.30     State aid and levy revenue computation for the learning 
 64.31  year programs begins July 1, 1988, for fiscal year 1989. 
 64.32     Sec. 5.  Minnesota Statutes 2000, section 126C.05, 
 64.33  subdivision 15, is amended to read: 
 64.34     Subd. 15.  [LEARNING YEAR PUPIL UNITS.] (a) When a pupil is 
 64.35  enrolled in a learning year program under section 124D.128, an 
 64.36  area learning center under sections 123A.05 and 123A.06, an 
 65.1   alternative program approved by the commissioner, or a contract 
 65.2   alternative program under section 124D.68, subdivision 3, 
 65.3   paragraph (d), or subdivision 3a, for more than 1,020 hours in a 
 65.4   school year for a secondary student, more than 935 hours in a 
 65.5   school year for an elementary student, or more than 425 hours in 
 65.6   a school year for a kindergarten student without a disability, 
 65.7   that pupil may be counted as more than one pupil in average 
 65.8   daily membership.  The amount in excess of one pupil must be 
 65.9   determined by the ratio of the number of hours of instruction 
 65.10  provided to that pupil in excess of:  (i) the greater of 1,020 
 65.11  hours or the number of hours required for a full-time secondary 
 65.12  pupil in the district to 1,020 for a secondary pupil; (ii) the 
 65.13  greater of 935 hours or the number of hours required for a 
 65.14  full-time elementary pupil in the district to 935 for an 
 65.15  elementary pupil in grades 1 through 6; and (iii) the greater of 
 65.16  425 hours or the number of hours required for a full-time 
 65.17  kindergarten student without a disability in the district to 425 
 65.18  for a kindergarten student without a disability.  Hours that 
 65.19  occur after the close of the instructional year in June shall be 
 65.20  attributable to the following fiscal year.  A kindergarten 
 65.21  student must not be counted as more than 1.2 pupils in average 
 65.22  daily membership under this subdivision. 
 65.23     (b)(i) To receive general education revenue for a pupil in 
 65.24  an alternative program that has an independent study component, 
 65.25  a district must meet the requirements in this paragraph.  The 
 65.26  district must develop, with for the pupil, a continual learning 
 65.27  plan for the pupil.  A district must allow a minor pupil's 
 65.28  parent or guardian to participate in developing the plan, if the 
 65.29  parent or guardian wants to participate.  The plan must identify 
 65.30  the learning experiences and expected outcomes needed for 
 65.31  satisfactory credit for the year and for graduation.  The plan 
 65.32  must be updated each year consistent with section 124D.128, 
 65.33  subdivision 3.  Each school district that has a state-approved 
 65.34  public alternative program must reserve revenue in an amount 
 65.35  equal to at least 90 percent of the district average general 
 65.36  education revenue per pupil unit less compensatory revenue per 
 66.1   pupil unit times the number of pupil units generated by students 
 66.2   attending a state-approved public alternative program.  The 
 66.3   amount of reserved revenue available under this subdivision may 
 66.4   only be spent for program costs associated with the 
 66.5   state-approved public alternative program.  Compensatory revenue 
 66.6   must be allocated according to section 126C.15, subdivision 2. 
 66.7      (ii) General education revenue for a pupil in an approved 
 66.8   alternative program without an independent study component must 
 66.9   be prorated for a pupil participating for less than a full year, 
 66.10  or its equivalent.  The district must develop for the pupil a 
 66.11  continual learning plan consistent with section 124D.128, 
 66.12  subdivision 3.  Each school district that has a state-approved 
 66.13  public alternative program must reserve revenue in an amount 
 66.14  equal to at least 90 percent of the district average general 
 66.15  education revenue per pupil unit less compensatory revenue per 
 66.16  pupil unit times the number of pupil units generated by students 
 66.17  attending a state-approved public alternative program.  The 
 66.18  amount of reserved revenue available under this subdivision may 
 66.19  only be spent for program costs associated with the 
 66.20  state-approved public alternative program.  Compensatory revenue 
 66.21  must be allocated according to section 126C.15, subdivision 2.  
 66.22     (iii) General education revenue for a pupil in an approved 
 66.23  alternative program that has an independent study component must 
 66.24  be paid for each hour of teacher contact time and each hour of 
 66.25  independent study time completed toward a credit or graduation 
 66.26  standards necessary for graduation.  Average daily membership 
 66.27  for a pupil shall equal the number of hours of teacher contact 
 66.28  time and independent study time divided by 1,020. 
 66.29     (iv) For an alternative program having an independent study 
 66.30  component, the commissioner shall require a description of the 
 66.31  courses in the program, the kinds of independent study involved, 
 66.32  the expected learning outcomes of the courses, and the means of 
 66.33  measuring student performance against the expected outcomes.  
 66.34     Sec. 6.  [REPEALER.] 
 66.35     Minnesota Statutes 2000, section 124D.128, subdivision 7, 
 66.36  is repealed. 
 67.1                              ARTICLE 9
 67.2                          SPECIAL EDUCATION
 67.3      Section 1.  Minnesota Statutes 2000, section 125A.27, 
 67.4   subdivision 15, is amended to read: 
 67.5      Subd. 15.  [PART H C STATE PLAN.] "Part H C state plan" 
 67.6   means the annual state plan application approved by the federal 
 67.7   government under the Individuals with Disabilities Education 
 67.8   Act, United States Code, title 20, section 1471 et seq. (Part H 
 67.9   C, Public Law Number 102-119 105-117). 
 67.10     Sec. 2.  Minnesota Statutes 2000, section 125A.76, 
 67.11  subdivision 2, is amended to read: 
 67.12     Subd. 2.  [SPECIAL EDUCATION BASE REVENUE.] (a) The special 
 67.13  education base revenue equals the sum of the following amounts 
 67.14  computed using base year data: 
 67.15     (1) 68 percent of the salary of each essential person 
 67.16  employed in the district's program for children with a 
 67.17  disability during the fiscal year, not including the share of 
 67.18  salaries for personnel providing health-related services counted 
 67.19  in clause (8), whether the person is employed by one or more 
 67.20  districts or a Minnesota correctional facility operating on a 
 67.21  fee-for-service basis; 
 67.22     (2) for the Minnesota state academy for the deaf or the 
 67.23  Minnesota state academy for the blind, 68 percent of the salary 
 67.24  of each instructional aide assigned to a child attending the 
 67.25  academy, if that aide is required by the child's individual 
 67.26  education plan; 
 67.27     (3) for special instruction and services provided to any 
 67.28  pupil by contracting with public, private, or voluntary agencies 
 67.29  other than school districts, in place of special instruction and 
 67.30  services provided by the district, 52 percent of the difference 
 67.31  between the amount of the contract and the basic revenue of the 
 67.32  district for that pupil amount of the basic revenue, as defined 
 67.33  in section 126C.10, subdivision 2, special education aid, and 
 67.34  any other aid earned on behalf of the child for the fraction of 
 67.35  the school day the pupil receives services under the contract; 
 67.36     (4) for special instruction and services provided to any 
 68.1   pupil by contracting for services with public, private, or 
 68.2   voluntary agencies other than school districts, that are 
 68.3   supplementary to a full educational program provided by the 
 68.4   school district, 52 percent of the amount of the contract for 
 68.5   that pupil; 
 68.6      (5) for supplies and equipment purchased or rented for use 
 68.7   in the instruction of children with a disability, not including 
 68.8   the portion of the expenses for supplies and equipment used to 
 68.9   provide health-related services counted in clause (8), an amount 
 68.10  equal to 47 percent of the sum actually expended by the 
 68.11  district, or a Minnesota correctional facility operating on a 
 68.12  fee-for-service basis, but not to exceed an average of $47 in 
 68.13  any one school year for each child with a disability receiving 
 68.14  instruction; 
 68.15     (6) for fiscal years 1997 and later, special education base 
 68.16  revenue shall include amounts under clauses (1) to (5) for 
 68.17  special education summer programs provided during the base year 
 68.18  for that fiscal year; and 
 68.19     (7) for fiscal years 1999 and later, the cost of providing 
 68.20  transportation services for children with disabilities under 
 68.21  section 123B.92, subdivision 1, paragraph (b), clause (4). 
 68.22     The department shall establish procedures through the 
 68.23  uniform financial accounting and reporting system to identify 
 68.24  and track all revenues generated from third-party billings as 
 68.25  special education revenue at the school district level; include 
 68.26  revenue generated from third-party billings as special education 
 68.27  revenue in the annual cross-subsidy report; and exclude 
 68.28  third-party revenue from calculation of excess cost aid to the 
 68.29  districts. 
 68.30     (b) If requested by a school district operating a special 
 68.31  education program during the base year for less than the full 
 68.32  fiscal year, or a school district in which is located a 
 68.33  Minnesota correctional facility operating on a fee-for-service 
 68.34  basis for less than the full fiscal year, the commissioner may 
 68.35  adjust the base revenue to reflect the expenditures that would 
 68.36  have occurred during the base year had the program been operated 
 69.1   for the full fiscal year. 
 69.2      (c) Notwithstanding paragraphs (a) and (b), the portion of 
 69.3   a school district's base revenue attributable to a Minnesota 
 69.4   correctional facility operating on a fee-for-service basis 
 69.5   during the facility's first year of operating on a 
 69.6   fee-for-service basis shall be computed using current year data. 
 69.7      Sec. 3.  Laws 2000, chapter 489, article 3, section 24, is 
 69.8   amended to read: 
 69.9      Sec. 24.  [SPECIAL EDUCATION CROSS-SUBSIDY REVENUE.] 
 69.10     (a) For fiscal year 2000, a school district shall receive 
 69.11  an amount of revenue equal to $8.15 times the district's 
 69.12  adjusted marginal cost pupil units.  
 69.13     (b) For fiscal year 2001, a school district shall receive 
 69.14  an amount of revenue equal to $19 times the district's adjusted 
 69.15  marginal cost pupil units.  Special education cross-subsidy 
 69.16  revenue must be used to pay for a district's unfunded special 
 69.17  education costs that are currently cross-subsidized by a 
 69.18  district's general education revenue. 
 69.19     (c) The fiscal year 2001 revenue is paid entirely in fiscal 
 69.20  year 2001 based on estimated data.  By January 31, 2002, the 
 69.21  department of children, families, and learning shall recalculate 
 69.22  the revenue for each district using actual data, and shall 
 69.23  adjust the general education aid paid to school districts for 
 69.24  fiscal year 2002 by the amount of the difference between the 
 69.25  estimated revenue and the actual revenue. 
 69.26                             ARTICLE 10
 69.27                     FACILITIES AND TECHNOLOGY
 69.28     Section 1.  Laws 2000, chapter 489, article 5, section 21, 
 69.29  is amended to read: 
 69.30     Sec. 21.  [ONE-TIME DEFERRED MAINTENANCE AID.] 
 69.31     (a) For fiscal year 2001 only, a district's one-time 
 69.32  deferred maintenance aid is equal to: 
 69.33     (1) $10 times the adjusted marginal cost pupil units for 
 69.34  the school year; plus 
 69.35     (2) $21.90 times the adjusted marginal cost pupil units for 
 69.36  the school year for a district that does not qualify for 
 70.1   alternative facilities bonding under Minnesota Statutes, section 
 70.2   123B.59, or under Laws 1999, chapter 241, article 4, section 25. 
 70.3      (b) Aid received under this section must be used for 
 70.4   deferred maintenance, to make accessibility improvements, or to 
 70.5   make fire, safety, or health repairs. 
 70.6      (c) This aid is paid entirely in fiscal year 2001 based on 
 70.7   estimated data.  By January 31, 2002, the department of 
 70.8   children, families, and learning shall recalculate the aid for 
 70.9   each district using actual data, and shall adjust the general 
 70.10  education aid paid to school districts for fiscal year 2002 by 
 70.11  the amount of the difference between the estimated aid and the 
 70.12  actual aid. 
 70.13                             ARTICLE 11
 70.14                         NUTRITION PROGRAMS
 70.15     Section 1.  [124D.1156] [FAST BREAK TO LEARNING BREAKFAST 
 70.16  PROGRAM.] 
 70.17     Subdivision 1.  [ELIGIBILITY.] The commissioner shall 
 70.18  provide funding to the 41 targeted breakfast program grant 
 70.19  recipients under Laws 1997, First Special Session chapter 4, 
 70.20  article 6, section 19, and then to public or nonpublic 
 70.21  elementary schools that participate in the federal School 
 70.22  Breakfast and Lunch Programs where at least 33 percent of the 
 70.23  lunches served to children during the second preceding school 
 70.24  year were provided free or at a reduced price.  Schools shall 
 70.25  not charge student households for fast break to learning meals.  
 70.26  Schools shall encourage all children to eat a nutritious 
 70.27  breakfast, either at home or at school, and shall work to 
 70.28  eliminate barriers to participation at school such as inadequate 
 70.29  facilities and transportation. 
 70.30     Subd. 2.  [PROGRAM.] The fast break to learning school 
 70.31  breakfast program enables schools participating in the federal 
 70.32  School Breakfast and Lunch Programs to cover the costs for 
 70.33  school breakfast without charging student households. 
 70.34     Subd. 3.  [PROGRAM REIMBURSEMENT.] State funds are provided 
 70.35  to reimburse fast break to learning school breakfasts.  Each 
 70.36  school year, the state must reimburse schools for the difference 
 71.1   between the per meal federal rate of reimbursement and the per 
 71.2   meal state average cost.  Meals that are reimbursed at a federal 
 71.3   rate that is equal to or higher than the state average cost do 
 71.4   not qualify for fast break to learning funds.  Schools must use 
 71.5   the funds to provide school breakfast to school children every 
 71.6   day school is in session. 
 71.7      Sec. 2.  [124D.1195] [COMMODITY DONATED FOOD REVOLVING 
 71.8   FUND.] 
 71.9      A revolving fund is established for the purpose of 
 71.10  depositing cash received for commodity donated foods that have 
 71.11  been lost, damaged, recalled, or diverted for processing.  The 
 71.12  state shall use the fund to issue payments for the value of the 
 71.13  lost, damaged, recalled, or diverted commodity donated foods and 
 71.14  related costs. 
 71.15     Sec. 3.  Minnesota Statutes 2000, section 127A.45, 
 71.16  subdivision 12, is amended to read: 
 71.17     Subd. 12.  [PAYMENT PERCENTAGE FOR CERTAIN AIDS.] One 
 71.18  hundred percent of the aid for the current fiscal year must be 
 71.19  paid for the following aids:  reimbursement for transportation 
 71.20  to post-secondary institutions, according to section 124D.09, 
 71.21  subdivision 22; aid for the program for adults with 
 71.22  disabilities, according to section 124D.56, subdivision 2; 
 71.23  school lunch aid, according to section 124D.111; hearing 
 71.24  impaired support services aid, according to section 124D.57; 
 71.25  Indian post-secondary preparation grants according to section 
 71.26  124D.85; integration grants according to Laws 1989, chapter 329, 
 71.27  article 8, section 14, subdivision 3; and debt service aid 
 71.28  according to section 123B.53, subdivision 6. 
 71.29     Sec. 4.  Minnesota Statutes 2000, section 127A.45, is 
 71.30  amended by adding a subdivision to read: 
 71.31     Subd. 14a.  [STATE NUTRITION PROGRAMS.] Notwithstanding 
 71.32  subdivision 3, the state shall pay 100 percent of the aid for 
 71.33  the current year according to sections 124D.111, 124D.115, and 
 71.34  124D.118 and 90 percent of the aid for the current year 
 71.35  according to section 124D.1156 based on submitted monthly 
 71.36  vouchers showing meals and milk served.  The remaining ten 
 72.1   percent according to section 124D.1156 shall be paid by October 
 72.2   30 of the following fiscal year. 
 72.3      Sec. 5.  [REPEALER.] 
 72.4      Minnesota Statutes 2000, section 124D.1155, is repealed. 
 72.5                              ARTICLE 12
 72.6                              LIBRARIES
 72.7      Section 1.  Minnesota Statutes 2000, section 125B.20, 
 72.8   subdivision 1, is amended to read: 
 72.9      Subdivision 1.  [ESTABLISHMENT; PURPOSE.] The purpose of 
 72.10  developing a statewide school district telecommunications 
 72.11  network is to expand the availability of a broad range of 
 72.12  courses and degrees to students throughout the state, to share 
 72.13  information resources to improve access, quality, and 
 72.14  efficiency, to improve learning, and distance cooperative 
 72.15  learning opportunities, and to promote the exchange of ideas 
 72.16  among students, parents, teachers, media generalists, 
 72.17  librarians, and the public.  In addition, through the 
 72.18  development of this statewide telecommunications network 
 72.19  emphasizing cost-effective, competitive connections, all 
 72.20  Minnesotans will benefit by enhancing access to 
 72.21  telecommunications technology throughout the state.  Network 
 72.22  connections for school districts and public libraries are 
 72.23  coordinated and fully integrated into the existing state 
 72.24  telecommunications and interactive television networks to 
 72.25  achieve comprehensive and efficient interconnectivity of school 
 72.26  districts and libraries to higher education institutions, state 
 72.27  agencies, other governmental units, agencies, and institutions 
 72.28  throughout Minnesota.  A school district may apply to the 
 72.29  commissioner for a grant under subdivision 2, and a regional 
 72.30  public library may apply under subdivision 3.  The Minnesota 
 72.31  education telecommunications council established in Laws 1995, 
 72.32  First Special Session chapter 3, article 12, section 7, shall 
 72.33  establish priorities for awarding grants, making grant awards, 
 72.34  and being responsible for the coordination of networks. 
 72.35     Sec. 2.  [134.47] [REGIONAL LIBRARY TELECOMMUNICATIONS 
 72.36  AID.] 
 73.1      Subdivision 1.  [ELIGIBILITY.] (a) A regional public 
 73.2   library system may apply for regional library telecommunications 
 73.3   aid.  The aid must be used for data and video access costs and 
 73.4   other related costs to improve or maintain electronic access and 
 73.5   connect the library system with the state information 
 73.6   infrastructure administered by the department of administration 
 73.7   under section 16B.465.  Priority shall be given to public 
 73.8   libraries that have not received access.  To be eligible, a 
 73.9   regional public library system must be officially designated by 
 73.10  the commissioner of children, families, and learning as a 
 73.11  regional public library system as defined in section 134.34, 
 73.12  subdivision 3, and each of its participating cities and counties 
 73.13  must meet local support levels defined in section 134.34, 
 73.14  subdivision 1.  A public library building that receives aid 
 73.15  under this section must be open a minimum of 20 hours per week. 
 73.16     (b) Aid received under this section may not be used to 
 73.17  substitute for any existing local funds allocated to provide 
 73.18  electronic access, equipment for library staff or the public, or 
 73.19  local funds dedicated to other library operations. 
 73.20     (c) An application for regional library telecommunications 
 73.21  aid must, at a minimum, contain information to document the 
 73.22  following: 
 73.23     (1) the connections are adequate and employ an open network 
 73.24  architecture that will ensure interconnectivity and 
 73.25  interoperability with school districts, post-secondary 
 73.26  education, or other governmental agencies; 
 73.27     (2) that the connection is established through the most 
 73.28  cost-effective means and that the regional library has explored 
 73.29  and coordinated connections through school districts, 
 73.30  post-secondary education, or other governmental agencies; 
 73.31     (3) that the regional library system has filed an e-rate 
 73.32  application; and 
 73.33     (4) other information, as determined by the commissioner of 
 73.34  children, families, and learning, to ensure that connections are 
 73.35  coordinated, efficient, and cost-effective, take advantage of 
 73.36  discounts, and meet applicable state standards. 
 74.1      The library system may include costs associated with 
 74.2   cooperative arrangements with post-secondary institutions, 
 74.3   school districts, and other governmental agencies. 
 74.4      Subd. 2.  [AWARD OF FUNDS.] The commissioner of children, 
 74.5   families, and learning shall develop an application and a 
 74.6   reporting form and procedures for regional library 
 74.7   telecommunications aid.  Aid shall be based on actual costs of 
 74.8   connections and funds available for this purpose.  The 
 74.9   commissioner shall make payments directly to the regional public 
 74.10  library system. 
 74.11     Sec. 3.  [REPEALER.] 
 74.12     Minnesota Statutes 2000, section 125B.20, subdivision 3, is 
 74.13  repealed. 
 74.14                             ARTICLE 13
 74.15                        TECHNICAL AMENDMENTS
 74.16     Section 1.  Minnesota Statutes 2000, section 122A.26, 
 74.17  subdivision 3, is amended to read: 
 74.18     Subd. 3.  [ENGLISH AS A SECOND LANGUAGE.] Notwithstanding 
 74.19  subdivision 2, a person who possesses a bachelor's or master's 
 74.20  degree in English as a second language, applied linguistics, or 
 74.21  bilingual education, or who possesses a related degree as 
 74.22  approved by the commissioner, shall be permitted to teach 
 74.23  English as a second language in an adult basic education program 
 74.24  that receives funding under section 124D.53 124D.531.  
 74.25     Sec. 2.  Minnesota Statutes 2000, section 124D.11, 
 74.26  subdivision 5, is amended to read: 
 74.27     Subd. 5.  [SPECIAL EDUCATION AID.] Except as provided in 
 74.28  subdivision 2, special education aid must be paid to a charter 
 74.29  school according to section 125A.76, as though it were a school 
 74.30  district.  The charter school may charge tuition to the district 
 74.31  of residence as provided in section 125A.11.  The charter school 
 74.32  shall allocate its special education levy equalization revenue 
 74.33  to the resident districts of the pupils attending the charter 
 74.34  school.  The districts of residence shall levy as though they 
 74.35  were participating in a cooperative, as provided in section 
 74.36  125A.77, subdivision 3. 
 75.1      Sec. 3.  Minnesota Statutes 2000, section 124D.454, 
 75.2   subdivision 11, is amended to read: 
 75.3      Subd. 11.  [REVENUE ALLOCATION FROM COOPERATIVE CENTERS AND 
 75.4   INTERMEDIATE DISTRICTS.] For purposes of this section and 
 75.5   section 125A.77, a cooperative center or an intermediate 
 75.6   district must allocate its approved expenditures for transition 
 75.7   programs for children with a disability among participating 
 75.8   school districts.  Aid for transition programs for children with 
 75.9   a disability for services provided by a cooperative or 
 75.10  intermediate district shall be paid to the participating 
 75.11  districts.  
 75.12     Sec. 4.  Minnesota Statutes 2000, section 125A.17, is 
 75.13  amended to read: 
 75.14     125A.17 [LEGAL RESIDENCE OF A CHILD WITH A DISABILITY 
 75.15  PLACED IN A FOSTER FACILITY.] 
 75.16     The legal residence of a child with a disability placed in 
 75.17  a foster facility for care and treatment is the district in 
 75.18  which the child resides when: 
 75.19     (1) parental rights have been terminated by court order; 
 75.20     (2) the parent or guardian is not living within the state; 
 75.21     (3) no other district residence can be established; or 
 75.22     (4) the parent or guardian having legal custody of the 
 75.23  child is an inmate of a Minnesota correctional facility or is a 
 75.24  resident of a halfway house under the supervision of the 
 75.25  commissioner of corrections; 
 75.26  is the district in which the child resides.  The school board of 
 75.27  the district of residence must provide the same educational 
 75.28  program for the child as it provides for all resident children 
 75.29  with a disability in the district.  
 75.30     Sec. 5.  Minnesota Statutes 2000, section 126C.17, 
 75.31  subdivision 6, is amended to read: 
 75.32     Subd. 6.  [REFERENDUM EQUALIZATION LEVY.] (a) A district's 
 75.33  referendum equalization levy for a referendum levied against the 
 75.34  referendum market value of all taxable property as defined in 
 75.35  section 126C.01, subdivision 3, equals the district's referendum 
 75.36  equalization revenue times the lesser of one or the ratio of the 
 76.1   district's referendum market value per resident marginal cost 
 76.2   pupil unit to $476,000. 
 76.3      (b) A district's referendum equalization levy for a 
 76.4   referendum levied against the net tax capacity of all taxable 
 76.5   property equals the district's referendum equalization revenue 
 76.6   times the lesser of one or the ratio of the district's adjusted 
 76.7   net tax capacity per resident marginal cost pupil unit to $8,404.
 76.8      Sec. 6.  Minnesota Statutes 2000, section 127A.41, 
 76.9   subdivision 9, is amended to read: 
 76.10     Subd. 9.  [APPROPRIATION TRANSFERS FOR COMMUNITY EDUCATION 
 76.11  PROGRAMS.] If a direct appropriation from the general fund to 
 76.12  the department of children, families, and learning for an 
 76.13  education aid or grant authorized under section 124D.135, 
 76.14  124D.16, 124D.20, 124D.21, 124D.22, 124D.52, 124D.53 124D.531, 
 76.15  124D.54, 124D.55, or 124D.56 exceeds the amount required, the 
 76.16  commissioner of children, families, and learning may transfer 
 76.17  the excess to any education aid or grant appropriation that is 
 76.18  insufficiently funded under these sections. Excess 
 76.19  appropriations shall be allocated proportionately among aids or 
 76.20  grants that have insufficient appropriations.  The commissioner 
 76.21  of finance shall make the necessary transfers among 
 76.22  appropriations according to the determinations of the 
 76.23  commissioner of children, families, and learning.  If the amount 
 76.24  of the direct appropriation for the aid or grant plus the amount 
 76.25  transferred according to this subdivision is insufficient, the 
 76.26  commissioner shall prorate the available amount among eligible 
 76.27  districts.  The state is not obligated for any additional 
 76.28  amounts. 
 76.29     Sec. 7.  Laws 2000, chapter 489, article 7, section 15, 
 76.30  subdivision 3, is amended to read: 
 76.31     Subd. 3.  [COOPERATIVE SECONDARY FACILITY; PLANNING AND 
 76.32  EXPENSES.] For a grant and administrative expenses to facilitate 
 76.33  planning for a cooperative secondary facility under a joint 
 76.34  powers agreement for school district Nos. 411, Balaton, 402, 
 76.35  Hendricks, 403, Ivanhoe, 404, Lake Benton, 418, Russell, 584, 
 76.36  Ruthton, and 409, Tyler: 
 77.1          $100,000     .....     2001
 77.2      This is a one-time appropriation. 
 77.3      Sec. 8.  [REPEALER.] 
 77.4      Laws 2000, chapter 254, section 30; and Laws 2000, chapter 
 77.5   489, article 1, section 18, are repealed. 
 77.6                              ARTICLE 14
 77.7                         ADVISORY COMMITTEES
 77.8      Section 1.  Minnesota Statutes 2000, section 124D.80, 
 77.9   subdivision 3, is amended to read: 
 77.10     Subd. 3.  [EXPENSES.] Each committee must be reimbursed for 
 77.11  expenses according to section 15.059, subdivision 6.  The 
 77.12  commissioner must determine the membership terms and the 
 77.13  duration of each committee, which expire no later than June 
 77.14  30, 2001 2003. 
 77.15     Sec. 2.  Minnesota Statutes 2000, section 124D.892, 
 77.16  subdivision 3, as amended by Laws 2001, chapter 7, section 32, 
 77.17  is amended to read: 
 77.18     Subd. 3.  [ADVISORY BOARD.] The commissioner shall 
 77.19  establish an advisory board composed of: 
 77.20     (1) nine superintendents, eight of whom are selected by the 
 77.21  superintendents of the school districts located in whole or in 
 77.22  part within each of the eight metropolitan districts established 
 77.23  under section 473.123, subdivision 3c, and one who is from a 
 77.24  district outside the seven-county metropolitan area that is 
 77.25  considered racially isolated or that has a racially isolated 
 77.26  school site according to Minnesota Rules, part 3535.0110; 
 77.27     (2) one person each selected by the Indian affairs council, 
 77.28  the council on Asian-Pacific Minnesotans, the council on Black 
 77.29  Minnesotans, and the council on affairs of Chicano/Latino 
 77.30  people; and 
 77.31     (3) the superintendent of independent school district No. 
 77.32  709, Duluth. 
 77.33     The advisory board shall advise the office on complying 
 77.34  with the requirements under subdivision 1.  The advisory board 
 77.35  may solicit comments from teachers, parents, students, and 
 77.36  interested community organizations and others. 
 78.1      The advisory board shall expire June 30, 2003. 
 78.2      Sec. 3.  [124D.893] [STATE MULTICULTURAL EDUCATION ADVISORY 
 78.3   COMMITTEE.] 
 78.4      (a) The commissioner shall appoint a state multicultural 
 78.5   education advisory committee to advise the department and the 
 78.6   state board on multicultural education.  The committee must have 
 78.7   12 members and be composed of representatives from among the 
 78.8   following groups and community organizations:  African-American, 
 78.9   Asian-Pacific, Hispanic, and American Indian.  The committee 
 78.10  shall expire June 30, 2003.  
 78.11     (b) The state committee shall provide information and 
 78.12  recommendations on: 
 78.13     (1) department procedures for reviewing and approving 
 78.14  district plans and disseminating information on multicultural 
 78.15  education; 
 78.16     (2) department procedures for improving inclusive education 
 78.17  plans, curriculum and instruction improvement plans, and 
 78.18  performance-based assessments; 
 78.19     (3) developing learner outcomes which are multicultural; 
 78.20  and 
 78.21     (4) other recommendations that will further inclusive, 
 78.22  multicultural education. 
 78.23     (c) The committee shall also participate in determining the 
 78.24  criteria for and awarding the grants established under Laws 
 78.25  1993, chapter 224, article 8, section 22, subdivision 8. 
 78.26     Sec. 4.  Minnesota Statutes 2000, section 127A.30, is 
 78.27  amended to read: 
 78.28     127A.30 [PERMANENT SCHOOL FUND ADVISORY COMMITTEE.] 
 78.29     A state permanent school fund advisory committee is 
 78.30  established to advise the department of natural resources on the 
 78.31  management of permanent school fund land, which is held in trust 
 78.32  for the school districts of the state.  The advisory committee 
 78.33  must consist of the following persons or their designees:  the 
 78.34  chairs of the education committees of the legislature, the 
 78.35  chairs of the senate committee on finance and house committee on 
 78.36  ways and means, the commissioner of children, families, and 
 79.1   learning, one superintendent from a nonmetropolitan district, 
 79.2   and one superintendent from a metropolitan area district.  The 
 79.3   school district superintendents shall be appointed by the 
 79.4   commissioner of children, families, and learning.  The advisory 
 79.5   committee shall expire June 30, 2003.  
 79.6      The advisory committee shall review the policies of the 
 79.7   department of natural resources and current statutes on 
 79.8   management of school trust fund lands at least semiannually and 
 79.9   shall recommend necessary changes in statutes, policy, and 
 79.10  implementation in order to ensure provident utilization of the 
 79.11  permanent school fund lands. 
 79.12     Sec. 5.  Minnesota Statutes 2000, section 134.31, is 
 79.13  amended by adding a subdivision to read: 
 79.14     Subd. 6.  [ADVISORY COMMITTEE.] The commissioner shall 
 79.15  appoint an advisory committee of five members to advise the 
 79.16  staff of the Minnesota library for the blind and physically 
 79.17  handicapped on long-range plans and library services.  Members 
 79.18  shall be people who use the library.  Section 15.059 governs 
 79.19  this committee except that the committee shall expire on June 
 79.20  30, 2003. 
 79.21                             ARTICLE 15
 79.22                          HIGHER EDUCATION
 79.23  Section 1.  [HIGHER EDUCATION APPROPRIATIONS.] 
 79.24     The sums in the columns marked "APPROPRIATIONS" are 
 79.25  appropriated from the general fund, or other named fund, to the 
 79.26  agencies and for the purposes specified in this article.  The 
 79.27  listing of an amount under the figure "2002" or "2003" in this 
 79.28  article indicates that the amount is appropriated to be 
 79.29  available for the fiscal year ending June 30, 2002, or June 30, 
 79.30  2003, respectively.  "The first year" is fiscal year 2002.  "The 
 79.31  second year" is fiscal year 2003.  "The biennium" is fiscal 
 79.32  years 2002 and 2003. 
 79.33                          SUMMARY BY FUND
 79.34                                                      BIENNIAL
 79.35                            2002          2003          TOTAL
 79.36  General            $1,364,868,000 $1,428,892,000 $2,793,760,000
 80.1   Health Care 
 80.2   Access                  2,537,000      2,537,000      5,074,000
 80.3                    SUMMARY BY AGENCY - ALL FUNDS
 80.4                             2002         2003      TOTAL
 80.5   Higher Education Services
 80.6   Office                156,258,000    164,796,000    321,054,000
 80.7   Board of Trustees of the
 80.8   Minnesota State Colleges
 80.9   and Universities      588,407,000    615,967,000  1,204,374,000
 80.10  Board of Regents of the
 80.11  University of
 80.12  Minnesota             621,103,000    649,029,000  1,270,132,000
 80.13  Mayo Medical
 80.14  Foundation              1,637,000      1,637,000      3,274,000
 80.15                                             APPROPRIATIONS 
 80.16                                         Available for the Year 
 80.17                                             Ending June 30 
 80.18                                            2002         2003 
 80.19  Sec. 2.  HIGHER EDUCATION
 80.20  SERVICES OFFICE
 80.21  Subdivision 1.  Total
 80.22  Appropriation                       $156,258,000   $164,796,000
 80.23  The amounts that may be spent from this 
 80.24  appropriation for each purpose are 
 80.25  specified in the following subdivisions.
 80.26  Notwithstanding Minnesota Statutes, 
 80.27  section 136A.1211, savings in the state 
 80.28  grant program in fiscal years 2002 and 
 80.29  2003 resulting from any increases in 
 80.30  the maximum federal grant from $3,300 
 80.31  up to $3,750 must be used as provided 
 80.32  in this section. 
 80.33  Subd. 2.  State Grants
 80.34      123,274,000       131,744,000
 80.35  If the appropriation in this 
 80.36  subdivision for either year is 
 80.37  insufficient, the appropriation for the 
 80.38  other year is available for it.  
 80.39  The legislature intends that the higher 
 80.40  education services office make full 
 80.41  grant awards in each year of the 
 80.42  biennium.  
 80.43  For the biennium, the private 
 80.44  institution tuition maximum shall be 
 80.45  $8,764 in the first year and $8,983 in 
 80.46  the second year for four-year 
 80.47  institutions and $6,744 in the first 
 80.48  year and $6,913 in the second year for 
 80.49  two-year institutions. 
 80.50  This appropriation contains money to 
 80.51  set the living and miscellaneous 
 80.52  expense allowance at $5,405 in each 
 80.53  year. 
 81.1   Notwithstanding Minnesota Statutes, 
 81.2   section 136A.1211, savings in the state 
 81.3   grant program in fiscal years 2002 and 
 81.4   2003 resulting from any increase in the 
 81.5   maximum federal grant over $3,750 or 
 81.6   from any other source must be used to 
 81.7   provide additional decreases in the 
 81.8   family responsibility for independent 
 81.9   students and to increase funding for 
 81.10  child care grants under Minnesota 
 81.11  Statutes, section 136A.125.  The higher 
 81.12  education services office may allocate 
 81.13  savings between the two purposes. 
 81.14  Subd. 3.  Interstate Tuition
 81.15  Reciprocity
 81.16       5,250,000      5,250,000
 81.17  If the appropriation in this 
 81.18  subdivision for either year is 
 81.19  insufficient, the appropriation for the 
 81.20  other year is available to meet 
 81.21  reciprocity contract obligations. 
 81.22  Subd. 4.  State Work Study
 81.23      12,444,000     12,444,000
 81.24  Subd. 5.  Minitex Library Program
 81.25       4,968,000      4,968,000
 81.26  Subd. 6.  Learning Network of Minnesota
 81.27       5,179,000      5,179,000
 81.28  Subd. 7.  Income Contingent Loans (GRIP)
 81.29  The higher education services office 
 81.30  shall administer an income contingent 
 81.31  loan repayment program to assist 
 81.32  graduates of Minnesota schools in 
 81.33  medicine, dentistry, pharmacy, 
 81.34  chiropractic medicine, public health, 
 81.35  and veterinary medicine, and Minnesota 
 81.36  residents graduating from optometry and 
 81.37  osteopathy programs.  Applicant data 
 81.38  collected by the higher education 
 81.39  services office for this program may be 
 81.40  disclosed to a consumer credit 
 81.41  reporting agency under the same 
 81.42  conditions as apply to the supplemental 
 81.43  loan program under Minnesota Statutes, 
 81.44  section 136A.162.  No new applicants 
 81.45  may be accepted after June 30, 1995.  
 81.46  Subd. 8.  Minnesota College
 81.47  Savings Plan
 81.48       1,520,000      1,520,000 
 81.49  Subd. 9.  Agency Administration
 81.50       3,623,000      3,691,000
 81.51  This appropriation includes base 
 81.52  funding to foster post-secondary 
 81.53  attendance by providing outreach 
 81.54  services to historically underserved 
 81.55  groups of Minnesota elementary and 
 82.1   secondary students.  The office may 
 82.2   retain the entire appropriation or 
 82.3   contract with other agencies or 
 82.4   nonprofit organizations for specific 
 82.5   services in this effort.  
 82.6   Subd. 10.  Balances Forward 
 82.7   An unencumbered balance in the first 
 82.8   year under a subdivision in this 
 82.9   section does not cancel but is 
 82.10  available for the second year. 
 82.11  Subd. 11.  Transfers 
 82.12  The higher education services office 
 82.13  may transfer unencumbered balances from 
 82.14  the appropriations in this section to 
 82.15  the state grant appropriation, the 
 82.16  interstate tuition reciprocity 
 82.17  appropriation, the child care 
 82.18  appropriation, and the state work-study 
 82.19  appropriation. 
 82.20  Sec. 3.  BOARD OF TRUSTEES OF THE
 82.21  MINNESOTA STATE COLLEGES AND UNIVERSITIES
 82.22  Subdivision 1.  Total
 82.23  Appropriation                       588,407,000    615,967,000
 82.24  The amounts that may be spent from this 
 82.25  appropriation for each purpose are 
 82.26  specified in the following subdivisions.
 82.27  The legislature intends that state 
 82.28  appropriations be used to strengthen 
 82.29  and support education of students.  To 
 82.30  this end, all money appropriated in 
 82.31  this section, except that in direct 
 82.32  support of system office activities, 
 82.33  shall be allocated by the board 
 82.34  directly to the colleges and 
 82.35  universities. 
 82.36  Subd. 2.  Estimated Expenditures 
 82.37  and Appropriations
 82.38  The legislature estimates that 
 82.39  instructional expenditures will be 
 82.40  $778,478,000 in the first year and 
 82.41  $816,066,000 in the second year.  The 
 82.42  legislature estimates that 
 82.43  noninstructional expenditures will be 
 82.44  $69,421,000 in the first year and 
 82.45  $71,923,000 in the second year.  
 82.46  In each year of the biennium, the board 
 82.47  of trustees must increase the 
 82.48  percentage of the total general fund 
 82.49  expenditures for direct instruction and 
 82.50  academic support, as reported in the 
 82.51  federal Integrated Post Secondary 
 82.52  Education Data System.  By February 15 
 82.53  of each year, the board must report to 
 82.54  the higher education finance committees 
 82.55  of the legislature on the percentage of 
 82.56  total general fund expenditures for 
 82.57  each institution and for the system 
 82.58  spent on direct instruction and on 
 82.59  academic support during the previous 
 82.60  fiscal year. 
 83.1   During the biennium, neither the board 
 83.2   nor campuses shall plan or develop 
 83.3   doctoral level programs or degrees 
 83.4   until after they have received the 
 83.5   recommendation of the house and senate 
 83.6   committees on education, finance, and 
 83.7   ways and means. 
 83.8   During the biennium, technical and 
 83.9   consolidated colleges shall make use of 
 83.10  instructional advisory committees 
 83.11  consisting of employers, students, and 
 83.12  instructors.  The instructional 
 83.13  advisory committee shall be consulted 
 83.14  when a technical program is proposed to 
 83.15  be created, modified, or eliminated.  
 83.16  If a decision is made to eliminate a 
 83.17  program, a college shall adequately 
 83.18  notify students and make plans to 
 83.19  assist students affected by the closure.
 83.20  The board may waive tuition for 
 83.21  eligible Southwest Asia veterans, as 
 83.22  provided in Minnesota Statutes, section 
 83.23  136F.28. 
 83.24  Sec. 4.  BOARD OF REGENTS OF THE 
 83.25  UNIVERSITY OF MINNESOTA 
 83.26  Subdivision 1.  Total
 83.27  Appropriation                        621,103,000    649,029,000
 83.28  The amounts that may be spent from this 
 83.29  appropriation for each purpose are 
 83.30  specified in the following subdivisions.
 83.31  Subd. 2.  Operations and 
 83.32  Maintenance                          545,307,000    573,233,000
 83.33  Estimated Expenditures and 
 83.34  Appropriations 
 83.35  The legislature estimates that 
 83.36  instructional expenditures will be 
 83.37  $477,914,000 in the first year and 
 83.38  $506,519,000 in the second year. 
 83.39  The legislature estimates that 
 83.40  noninstructional expenditures will be 
 83.41  $226,698,000 in the first year and 
 83.42  $235,554,000 in the second year. 
 83.43  Subd. 3.  Health Care
 83.44  Access Fund                            2,537,000      2,537,000
 83.45  This appropriation is from the health 
 83.46  care access fund for primary care 
 83.47  education initiatives. 
 83.48  Subd. 4.  Special
 83.49  Appropriation                         73,259,000     73,259,000
 83.50  The amounts expended for each program 
 83.51  in the four categories of special 
 83.52  appropriations shall be separately 
 83.53  identified in the 2003 biennial budget 
 83.54  document. 
 83.55  (a) Agriculture and Extension Service 
 83.56      58,338,000     58,338,000
 84.1   This appropriation is for the 
 84.2   Agricultural Experiment Station, 
 84.3   Minnesota Extension Service. 
 84.4   Any salary increases granted by the 
 84.5   University to personnel paid from the 
 84.6   Minnesota Extension appropriation must 
 84.7   not result in a reduction of the county 
 84.8   responsibility for the salary payments. 
 84.9   During the biennium, the University 
 84.10  shall maintain an advisory council 
 84.11  system for each experiment station.  
 84.12  The advisory councils must be broadly 
 84.13  representative of the range of size and 
 84.14  income distribution of farms and 
 84.15  agribusinesses and must not 
 84.16  disproportionately represent those from 
 84.17  the upper half of the size and income 
 84.18  distributions. 
 84.19  (b) Health Sciences 
 84.20       5,846,000      5,846,000
 84.21  This appropriation is for the rural 
 84.22  physicians associates program, the 
 84.23  Veterinary Diagnostic Laboratory, 
 84.24  health sciences research, dental care, 
 84.25  and the Biomedical Engineering Center. 
 84.26  (c) Institute of Technology  
 84.27       1,645,000      1,645,000
 84.28  This appropriation is for the 
 84.29  Geological Survey and the Talented 
 84.30  Youth Mathematics Program. 
 84.31  (d) System Specials 
 84.32       7,430,000      7,430,000
 84.33  This appropriation is for general 
 84.34  research, student loans matching money, 
 84.35  industrial relations education, Natural 
 84.36  Resources Research Institute, Center 
 84.37  for Urban and Regional Affairs, Bell 
 84.38  Museum of Natural History, and the 
 84.39  Humphrey exhibit. 
 84.40  Sec. 5.  MAYO MEDICAL FOUNDATION 
 84.41  Subdivision 1.  Total
 84.42  Appropriation                           1,637,000       1,637,000
 84.43  The amounts that may be spent from this 
 84.44  appropriation for each purpose are 
 84.45  specified in the following subdivisions.
 84.46  Subd. 2.  Medical School
 84.47         605,000        605,000
 84.48  The state of Minnesota must pay a 
 84.49  capitation of $14,405 each year for 
 84.50  each student who is a resident of 
 84.51  Minnesota.  The appropriation may be 
 84.52  transferred between years of the 
 84.53  biennium to accommodate enrollment 
 84.54  fluctuations. 
 85.1   The legislature intends that during the 
 85.2   biennium the Mayo foundation use the 
 85.3   capitation money to increase the number 
 85.4   of doctors practicing in rural areas in 
 85.5   need of doctors.  
 85.6   Subd. 3.  Family Practice and
 85.7   Graduate Residency Program
 85.8          625,000        625,000
 85.9   The state of Minnesota must pay a 
 85.10  capitation of $22,313 for 26 residents 
 85.11  each year and $44,627 for one resident 
 85.12  each year. 
 85.13  Subd. 4.  St. Cloud Hospital-Mayo 
 85.14  Family Practice Residency Program 
 85.15         407,000        407,000
 85.16  This appropriation is to the Mayo 
 85.17  foundation to support 12 resident 
 85.18  physicians in the first year and 12 
 85.19  resident physicians in the second year 
 85.20  in the St. Cloud Hospital-Mayo Family 
 85.21  Practice Residency Program.  The 
 85.22  program shall prepare doctors to 
 85.23  practice primary care medicine in the 
 85.24  rural areas of the state.  It is 
 85.25  intended that this program will improve 
 85.26  health care in rural communities, 
 85.27  provide affordable access to 
 85.28  appropriate medical care, and manage 
 85.29  the treatment of patients in a more 
 85.30  cost-effective manner. 
 85.31     Sec. 6.  Minnesota Statutes 2000, section 62J.694, 
 85.32  subdivision 2, is amended to read: 
 85.33     Subd. 2.  [EXPENDITURES.] (a) Up to five percent of the 
 85.34  fair market value of the fund is appropriated for medical 
 85.35  education activities in the state of Minnesota.  The 
 85.36  appropriations are to be transferred quarterly for the purposes 
 85.37  identified in the following paragraphs.  
 85.38     (b) For fiscal year 2000, 70 percent of the appropriation 
 85.39  in paragraph (a) is for transfer to the board of regents for the 
 85.40  instructional costs of health professional programs at the 
 85.41  academic health center and affiliated teaching institutions, and 
 85.42  30 percent of the appropriation is for transfer to the 
 85.43  commissioner of health to be distributed for medical education 
 85.44  under section 62J.692.  
 85.45     (c) For fiscal year 2001, 49 percent of the appropriation 
 85.46  in paragraph (a) is for transfer to the board of regents for the 
 85.47  instructional costs of health professional programs at the 
 86.1   academic health center and affiliated teaching institutions, and 
 86.2   51 percent is for transfer to the commissioner of health to be 
 86.3   distributed for medical education under section 62J.692. 
 86.4      (d) For fiscal year 2002, and each year thereafter, 42 
 86.5   percent of the appropriation in paragraph (a) may be 
 86.6   appropriated by another law is for the instructional costs of 
 86.7   health professional programs at publicly funded academic health 
 86.8   centers and affiliated teaching institutions, and 58 percent is 
 86.9   for transfer to the commissioner of health to be distributed for 
 86.10  medical education under section 62J.692. 
 86.11     (e) A maximum of $150,000 of each annual appropriation to 
 86.12  the commissioner of health in paragraph (d) may be used by the 
 86.13  commissioner for administrative expenses associated with 
 86.14  implementing section 62J.692. 
 86.15     Sec. 7.  Minnesota Statutes 2000, section 136A.101, 
 86.16  subdivision 5a, is amended to read: 
 86.17     Subd. 5a.  [ASSIGNED FAMILY RESPONSIBILITY.] "Assigned 
 86.18  family responsibility" means the amount of a family contribution 
 86.19  to a student's cost of attendance, as determined by a federal 
 86.20  need analysis, except that, beginning for the 1998-1999 academic 
 86.21  year, up to $25,000 in savings and other assets shall be 
 86.22  subtracted from the federal calculation of net worth before 
 86.23  determining the contribution.  For dependent students, the 
 86.24  assigned family responsibility is the parental contribution.  
 86.25  For independent students with dependents other than a spouse, 
 86.26  the assigned family responsibility is the student contribution. 
 86.27  For independent students without dependents other than a spouse, 
 86.28  the assigned family responsibility is 80 percent of the student 
 86.29  contribution.  Beginning in fiscal year 2002, the assigned 
 86.30  family responsibility for all independent students is reduced an 
 86.31  additional ten percent.  
 86.32     Sec. 8.  Minnesota Statutes 2000, section 136A.121, 
 86.33  subdivision 6, is amended to read: 
 86.34     Subd. 6.  [COST OF ATTENDANCE.] (a) The recognized cost of 
 86.35  attendance consists of allowances specified in law for room and 
 86.36  board living and miscellaneous expenses, and 
 87.1      (1) for public institutions, the actual tuition and fees 
 87.2   charged by the institution; or 
 87.3      (2) for private institutions, an allowance for tuition and 
 87.4   fees equal to the lesser of the actual tuition and fees charged 
 87.5   by the institution, or the private institution tuition and fee 
 87.6   maximums established in law. 
 87.7      (b) For the purpose of paragraph (a), clause (2), the 
 87.8   private institution tuition and fee maximum for two- and 
 87.9   four-year, private, residential, liberal arts, degree-granting 
 87.10  colleges and universities must be the same. 
 87.11     (c) For a student attending registering for less than full 
 87.12  time, the office shall prorate the recognized cost of attendance 
 87.13  living and miscellaneous expense allowance to the actual number 
 87.14  of credits for which the student is enrolled. 
 87.15     The recognized cost of attendance for a student who is 
 87.16  confined to a Minnesota correctional institution shall consist 
 87.17  of the tuition and fee component in paragraph (a), clause (1) or 
 87.18  (2), with no allowance for living and miscellaneous expenses. 
 87.19     Sec. 9.  Minnesota Statutes 2000, section 136A.121, 
 87.20  subdivision 9, is amended to read: 
 87.21     Subd. 9.  [AWARDS.] An undergraduate student who meets the 
 87.22  office's requirements is eligible to apply for and receive a 
 87.23  grant in any year of undergraduate study unless the student has 
 87.24  obtained a baccalaureate degree or previously has been enrolled 
 87.25  full time or the equivalent for eight ten semesters or 12 
 87.26  quarters the equivalent, excluding courses taken from a 
 87.27  Minnesota school or post-secondary institution which is not 
 87.28  participating in the state grant program and from which a 
 87.29  student transferred no credit. 
 87.30     Sec. 10.  Minnesota Statutes 2000, section 136A.241, is 
 87.31  amended to read: 
 87.32     136A.241 [EDVEST PROGRAM MINNESOTA COLLEGE SAVINGS PLAN 
 87.33  ESTABLISHED.] 
 87.34     An Edvest savings program A college savings plan known as 
 87.35  the Minnesota college savings plan is established.  In 
 87.36  establishing this program plan, the legislature seeks to 
 88.1   encourage individuals to save for post-secondary education by: 
 88.2      (1) providing a qualified state tuition program plan under 
 88.3   federal tax law; 
 88.4      (2) providing matching grants for contributions to the 
 88.5   program plan by low- and middle-income families; and 
 88.6      (3) by encouraging individuals, foundations, and businesses 
 88.7   to provide additional grants to participating students. 
 88.8      Sec. 11.  Minnesota Statutes 2000, section 136A.242, is 
 88.9   amended to read: 
 88.10     136A.242 [DEFINITIONS.] 
 88.11     Subdivision 1.  [GENERAL.] For purposes of sections 
 88.12  136A.241 to 136A.245 136A.246, the following terms have the 
 88.13  meanings given. 
 88.14     Subd. 1a.  [ACCOUNT.] "Account" means the formal record of 
 88.15  transactions relating to a Minnesota college savings plan 
 88.16  beneficiary. 
 88.17     Subd. 1b.  [ACCOUNT OWNER.] "Account owner" means a person 
 88.18  who enters into a participation agreement and is entitled to 
 88.19  select or change the beneficiary of an account or to receive 
 88.20  distributions from the account for other than payment of 
 88.21  qualified higher education expenses. 
 88.22     Subd. 2.  [ADJUSTED GROSS INCOME.] "Adjusted gross income" 
 88.23  means adjusted gross income as defined in section 62 of the 
 88.24  Internal Revenue Code. 
 88.25     Subd. 3.  [BENEFICIARY.] "Beneficiary" means the designated 
 88.26  beneficiary for the account, as defined in section 529(e)(1) of 
 88.27  the Internal Revenue Code. 
 88.28     Subd. 4.  [BOARD.] "Board" means the state board of 
 88.29  investment. 
 88.30     Subd. 4a.  [CONTINGENT ACCOUNT OWNER.] "Contingent account 
 88.31  owner" means the individual designated as the account owner, 
 88.32  either in the participation agreement or pursuant to a separate 
 88.33  Minnesota college savings plan form, in the event of the death 
 88.34  of the account owner. 
 88.35     Subd. 4b.  [CONTRIBUTION.] "Contribution" means a payment 
 88.36  directly allocated to an account for the benefit of a 
 89.1   beneficiary.  For a rollover distribution, only the portion of 
 89.2   the rollover amount that constitutes investment in the account 
 89.3   is treated as a contribution to the account. 
 89.4      Subd. 5.  [DIRECTOR.] "Director" means the director of the 
 89.5   higher education services office. 
 89.6      Subd. 5a.  [DISTRIBUTION.] "Distribution" means a 
 89.7   disbursement from an account to the account owner, the 
 89.8   beneficiary, or the beneficiary's estate or to an eligible 
 89.9   educational institution.  Distribution does not include a change 
 89.10  of beneficiary to a member of the family of the prior 
 89.11  beneficiary or a rollover distribution. 
 89.12     Subd. 5b.  [DORMANT ACCOUNT.] "Dormant account" means an 
 89.13  account that has not received contributions for at least three 
 89.14  consecutive years and the account statements mailed to the 
 89.15  account owner have been returned as undeliverable. 
 89.16     Subd. 5c.  [EARNINGS.] "Earnings" means the total account 
 89.17  balance minus the investment in the account. 
 89.18     Subd. 5d.  [ELIGIBLE EDUCATIONAL INSTITUTION.] "Eligible 
 89.19  educational institution" means an institution as defined in 
 89.20  section 529(e)(5) of the Internal Revenue Code. 
 89.21     Subd. 6.  [EXECUTIVE DIRECTOR.] "Executive director" means 
 89.22  the executive director of the state board of investment. 
 89.23     Subd. 6a.  [INACTIVE ACCOUNT WITH A MATCHING GRANT 
 89.24  ACCOUNT.] "Inactive account with a matching grant account" means 
 89.25  an account in which the beneficiary: 
 89.26     (1) is not the account owner, the beneficiary has reached 
 89.27  28 years of age, and the beneficiary has not informed the plan 
 89.28  administrator that the beneficiary is enrolled in an eligible 
 89.29  educational institution; 
 89.30     (2) is the account owner, the beneficiary was over the age 
 89.31  of 18 when the account was opened, and the beneficiary has not 
 89.32  informed the program administrator that the beneficiary is 
 89.33  enrolled in an eligible educational institution within ten years 
 89.34  of the date of opening the account; or 
 89.35     (3) is the account owner, the beneficiary was a minor when 
 89.36  the account was opened, the account becomes inactive when the 
 90.1   beneficiary turns 28 years of age, and the beneficiary has not 
 90.2   informed the program administrator that the beneficiary is 
 90.3   enrolled in an eligible educational institution. 
 90.4      Subd. 7.  [INTERNAL REVENUE CODE.] "Internal Revenue Code" 
 90.5   means the Internal Revenue Code of 1986, as amended. 
 90.6      Subd. 7a.  [INVESTMENT IN THE ACCOUNT.] "Investment in the 
 90.7   account" means the sum of all contributions made to an account 
 90.8   by a particular date minus the aggregate amount of contributions 
 90.9   included in distributions or rollover distributions, if any, 
 90.10  made from the account as of that date. 
 90.11     Subd. 7b.  [MATCHING GRANT.] "Matching grant" means an 
 90.12  amount added to a matching grant account under section 136A.245. 
 90.13     Subd. 7c.  [MATCHING GRANT ACCOUNT.] "Matching grant 
 90.14  account" means an account owned by the state that contains 
 90.15  matching grants and earnings. 
 90.16     Subd. 7d.  [MAXIMUM ACCOUNT BALANCE LIMIT.] "Maximum 
 90.17  account balance limit" means the amount established by the 
 90.18  office under section 136A.2441, subdivision 8, paragraph (d).  
 90.19     Subd. 7e.  [MEMBER OF THE FAMILY.] "Member of the family" 
 90.20  means an individual who is related to the beneficiary as defined 
 90.21  in section 529(e)(2) of the Internal Revenue Code. 
 90.22     Subd. 7f.  [NONQUALIFIED DISTRIBUTION.] "Nonqualified 
 90.23  distribution" means a distribution made from an account other 
 90.24  than (1) a qualified distribution; or (2) a distribution due to 
 90.25  the death or disability of, or scholarship to, a beneficiary. 
 90.26     Subd. 8.  [OFFICE.] "Office" means the higher education 
 90.27  services office. 
 90.28     Subd. 8a.  [PARTICIPATION AGREEMENT.] "Participation 
 90.29  agreement" means an agreement to participate in the Minnesota 
 90.30  college savings plan between an account owner and the state, 
 90.31  through its agencies, the office, and the board. 
 90.32     Subd. 8b.  [PENALTY.] "Penalty" means the amount 
 90.33  established by the office that is applied against the earnings 
 90.34  portion of a nonqualified distribution.  The amount established 
 90.35  by the office must be the minimum required to be de minimis 
 90.36  under section 529 of the Internal Revenue Code.  The office must 
 91.1   impose, collect, and apply penalties consistent with section 529 
 91.2   of the Internal Revenue Code.  
 91.3      Subd. 8c.  [PERSON.] "Person" means an individual, trust, 
 91.4   estate, partnership, association, company, corporation, or the 
 91.5   state.  
 91.6      Subd. 9.  [PROGRAM PLAN.] "Program" or "Edvest Plan" 
 91.7   refers to the program plan established under sections 136A.241 
 91.8   to 136A.245 136A.246. 
 91.9      Subd. 10.  [PLAN ADMINISTRATOR.] "Plan administrator" means 
 91.10  the person selected by the office and the board to administer 
 91.11  the daily operations of the Minnesota college savings plan and 
 91.12  to provide marketing, recordkeeping, investment management, and 
 91.13  other services for the plan. 
 91.14     Subd. 11.  [QUALIFIED DISTRIBUTION.] "Qualified 
 91.15  distribution" means a distribution made from an account for 
 91.16  qualified higher education expenses of the beneficiary. 
 91.17     Subd. 12.  [QUALIFIED HIGHER EDUCATION 
 91.18  EXPENSES.] "Qualified higher education expenses" means expenses 
 91.19  as defined in section 529(e)(3) of the Internal Revenue Code. 
 91.20     Subd. 13.  [ROLLOVER DISTRIBUTION.] "Rollover distribution" 
 91.21  means a transfer of funds made: 
 91.22     (1) from one account to another account within 60 days of a 
 91.23  distribution; 
 91.24     (2) from another qualified state tuition program to an 
 91.25  account within 60 days of the distribution; or 
 91.26     (3) to another qualified state tuition program from an 
 91.27  account within 60 days of a distribution. 
 91.28     Each transfer of funds must be made for the benefit of a 
 91.29  new beneficiary who is a member of the family of the prior 
 91.30  beneficiary. 
 91.31     Subd. 14.  [SCHOLARSHIP.] "Scholarship" means a 
 91.32  scholarship, allowance, or payment under section 529(b)(3)(C) of 
 91.33  the Internal Revenue Code. 
 91.34     Subd. 15.  [STATE.] "State" means the state of Minnesota 
 91.35  and any Minnesota agency or political subdivision of Minnesota. 
 91.36     Subd. 16.  [TOTAL ACCOUNT BALANCE.] "Total account balance" 
 92.1   means the amount in an account on a particular date or the fair 
 92.2   market value of an account on a particular date. 
 92.3      Sec. 12.  Minnesota Statutes 2000, section 136A.243, 
 92.4   subdivision 1, is amended to read: 
 92.5      Subdivision 1.  [RESPONSIBILITIES.] (a) The director shall 
 92.6   establish the rules, terms, and conditions for the program plan, 
 92.7   subject to the requirements of sections 136A.241 to 
 92.8   136A.245 136A.246. 
 92.9      (b) The director shall prescribe the application forms, 
 92.10  procedures, and other requirements that apply to the program 
 92.11  plan. 
 92.12     Sec. 13.  Minnesota Statutes 2000, section 136A.243, 
 92.13  subdivision 2, is amended to read: 
 92.14     Subd. 2.  [ACCOUNTS-TYPE PROGRAM PLAN.] The office must 
 92.15  establish the program plan and the program plan must be operated 
 92.16  as an accounts-type program plan that permits individuals 
 92.17  persons to save for qualified higher education costs expenses 
 92.18  incurred at any eligible educational institution, regardless of 
 92.19  whether it is private or public or whether it is located within 
 92.20  or outside of this the state.  A separate account must be 
 92.21  maintained for each beneficiary for whom contributions are made. 
 92.22     Sec. 14.  Minnesota Statutes 2000, section 136A.243, 
 92.23  subdivision 3, is amended to read: 
 92.24     Subd. 3.  [CONSULTATION WITH STATE BOARD OF INVESTMENT.] In 
 92.25  designing and establishing the program's plan's requirements and 
 92.26  in negotiating or entering into contracts with third parties 
 92.27  under subdivision 8, the director shall consult with the 
 92.28  executive director.  The director and the executive director 
 92.29  shall establish an annual fee, equal to a percentage of the 
 92.30  average daily net assets of the plan, to be imposed on 
 92.31  participants to recover the costs of administration, 
 92.32  recordkeeping, and investment management as provided in 
 92.33  subdivision 9 and section 136A.244, subdivision 4. 
 92.34     Sec. 15.  Minnesota Statutes 2000, section 136A.243, 
 92.35  subdivision 4, is amended to read: 
 92.36     Subd. 4.  [PROGRAM PLAN TO COMPLY WITH FEDERAL LAW.] The 
 93.1   director shall take steps to ensure that the program plan meets 
 93.2   the requirements for a qualified state tuition program under 
 93.3   section 529(b)(1)(A)(ii) of the Internal Revenue Code.  The 
 93.4   director may request a private letter ruling or rulings from the 
 93.5   Internal Revenue Service or take any other steps to ensure that 
 93.6   the program plan qualifies under section 529 of the Internal 
 93.7   Revenue Code or other relevant provisions of federal law. 
 93.8      Sec. 16.  Minnesota Statutes 2000, section 136A.243, 
 93.9   subdivision 9, is amended to read: 
 93.10     Subd. 9.  [AUTHORITY TO IMPOSE FEES.] The office may impose 
 93.11  annual fees, as provided in subdivision 3, on participants in 
 93.12  the program plan to recover the costs of administration.  The 
 93.13  office must use its best efforts to keep these fees as low as 
 93.14  possible, consistent with efficient administration, so that the 
 93.15  returns on savings invested in the program plan will be as high 
 93.16  as possible. 
 93.17     Sec. 17.  Minnesota Statutes 2000, section 136A.244, 
 93.18  subdivision 1, is amended to read: 
 93.19     Subdivision 1.  [STATE BOARD TO INVEST.] The state board of 
 93.20  investment shall invest the money deposited in accounts in the 
 93.21  program plan and all investments are directed by the board.  
 93.22  Neither persons making contributions to an account nor 
 93.23  beneficiaries may direct the investment of contributions to the 
 93.24  plan or plan earnings.  
 93.25     Sec. 18.  Minnesota Statutes 2000, section 136A.244, 
 93.26  subdivision 4, is amended to read: 
 93.27     Subd. 4.  [FEES.] The board may impose annual fees, as 
 93.28  provided in section 136A.243, subdivision 3, on participants in 
 93.29  the program plan to recover the cost of investment management 
 93.30  and related tasks for the program plan.  The board must use its 
 93.31  best efforts to keep these fees as low as possible, consistent 
 93.32  with high quality investment management, so that the returns on 
 93.33  savings invested in the program plan will be as high as possible.
 93.34     Sec. 19.  [136A.2441] [MINNESOTA COLLEGE SAVINGS PLAN 
 93.35  ACCOUNTS; GENERALLY.] 
 93.36     Subdivision 1.  [CONTRIBUTIONS TO AN ACCOUNT.] A person may 
 94.1   make contributions to an account on behalf of a beneficiary.  
 94.2   Contributions to an account made by persons other than the 
 94.3   account owner become the property of the account owner.  A 
 94.4   person does not acquire an interest in an account by making 
 94.5   contributions to an account.  Contributions to an account must 
 94.6   be made by check, money order, or other commercially acceptable 
 94.7   means as permitted by the United States Internal Revenue Service 
 94.8   and authorized by the plan administrator in cooperation with the 
 94.9   office and the board. 
 94.10     Subd. 2.  [AUTHORITY OF ACCOUNT OWNER.] An account owner is 
 94.11  the only person entitled to: 
 94.12     (1) select or change a beneficiary or a contingent account 
 94.13  owner; or 
 94.14     (2) request distributions or rollover distributions from an 
 94.15  account. 
 94.16     Subd. 3.  [SECURITY FOR LOANS.] An interest in an account 
 94.17  or matching grant account must not be used as security for a 
 94.18  loan. 
 94.19     Subd. 4.  [SEPARATE ACCOUNTING.] The plan must provide a 
 94.20  separate account for each beneficiary for whom contributions are 
 94.21  made.  Each account must have a single account owner and a 
 94.22  single beneficiary.  An account owner must not open more than 
 94.23  one account for the same beneficiary, but several account owners 
 94.24  may open accounts for the same beneficiary. 
 94.25     Subd. 5.  [NAMING OF BENEFICIARY.] The account owner must 
 94.26  designate the beneficiary of an account when the account is 
 94.27  established, except for accounts established under section 
 94.28  529(e)(1)(C) of the Internal Revenue Code, which do not require 
 94.29  a designated beneficiary until a distribution is made. 
 94.30     Subd. 6.  [CHANGE OF BENEFICIARY.] An account owner may 
 94.31  change the beneficiary of an account to a member of the family 
 94.32  of the current beneficiary, at any time without penalty, if the 
 94.33  change will not cause the total account balance of all accounts 
 94.34  held for the new beneficiary to exceed the maximum account 
 94.35  balance limit as provided in subdivision 8.  A change of 
 94.36  beneficiary other than as permitted in this subdivision is 
 95.1   treated as a nonqualified distribution under section 136A.246, 
 95.2   subdivision 3. 
 95.3      Subd. 7.  [CHANGE OF ACCOUNT OWNERSHIP.] An account owner 
 95.4   may transfer ownership of an account to another person eligible 
 95.5   to be an account owner.  All transfers of ownership are absolute 
 95.6   and irrevocable. 
 95.7      Subd. 8.  [MAXIMUM ACCOUNT BALANCE LIMIT.] (a) When a 
 95.8   contribution is made, the total account balance of all accounts 
 95.9   held for the same beneficiary, including matching grant 
 95.10  accounts, must not exceed the maximum account balance limit as 
 95.11  determined under this subdivision. 
 95.12     (b) The maximum account balance limit is reduced for 
 95.13  withdrawals from any account for the same beneficiary that are 
 95.14  qualified distributions, distributions due to the death or 
 95.15  disability of the beneficiary, or distributions due to the 
 95.16  beneficiary receiving a scholarship.  Subsequent contributions 
 95.17  must not be made to replenish an account if the contribution 
 95.18  results in the total account balance of all accounts held for 
 95.19  the beneficiary to exceed the reduced maximum account balance 
 95.20  limit.  Any subsequent contributions must be rejected.  A 
 95.21  subsequent contribution accepted in error must be returned to 
 95.22  the account owner plus any earnings on the contribution less any 
 95.23  applicable penalties. 
 95.24     (c) The maximum account balance limit is not reduced for a 
 95.25  nonqualified distribution or a rollover distribution.  When such 
 95.26  distributions are taken, subsequent contributions may be made to 
 95.27  replenish an account up to the maximum account balance limit. 
 95.28     (d) The office must establish a maximum account balance 
 95.29  limit.  The maximum account balance limit is four times the cost 
 95.30  of one year of qualified higher education expenses at the most 
 95.31  expensive eligible educational institution in Minnesota.  The 
 95.32  office must adjust the maximum account balance limit, as 
 95.33  necessary, or on January 1 of each year.  Qualified higher 
 95.34  education expenses for the academic year prior to January 1 of 
 95.35  each year must be used in calculating the maximum account 
 95.36  balance limit.  The maximum account balance limit must not 
 96.1   exceed the amount permitted for the plan to qualify as a 
 96.2   qualified state tuition program under section 529 of the 
 96.3   Internal Revenue Code.  
 96.4      (e) If the total account balance of all accounts held for a 
 96.5   single beneficiary reaches the maximum account balance limit 
 96.6   prior to the end of that calendar year, the beneficiary may 
 96.7   receive an applicable matching grant for that calendar year. 
 96.8      Subd. 9.  [EXCESS CONTRIBUTIONS AND BALANCES.] A 
 96.9   contribution to any account for a beneficiary must be rejected 
 96.10  if the contribution would cause the total account balance of all 
 96.11  accounts held for the same beneficiary, including the matching 
 96.12  grant account, to exceed the maximum account balance limit under 
 96.13  section 529 of the Internal Revenue Code as established by the 
 96.14  office.  If a contribution under this subdivision is accepted in 
 96.15  error, the contribution must be returned to the account owner 
 96.16  plus any earnings thereon, less applicable penalties.  A payment 
 96.17  of an excess contribution to the account owner may be a 
 96.18  nonqualified distribution subject to a penalty. 
 96.19     Subd. 10.  [DORMANT ACCOUNTS.] (a) The plan administrator 
 96.20  shall attempt to locate the account owner or the beneficiary, or 
 96.21  both, to determine the disposition of a dormant account.  A fee 
 96.22  of five percent of the total account balance of the dormant 
 96.23  account, not to exceed $100, plus allowable costs, may be 
 96.24  charged for this service.  Costs will not exceed $100 or five 
 96.25  percent of the total account balance in the dormant account, 
 96.26  whichever is less. 
 96.27     (b) If the account owner, or the account owner's legal 
 96.28  heirs, are not found after three attempts by the plan 
 96.29  administrator, the remaining funds in the dormant account must 
 96.30  be turned over to the office.  The funds are treated as 
 96.31  unclaimed property for purposes of sections 345.31 to 345.60, 
 96.32  and the office shall turn all remaining dormant account funds 
 96.33  over to the commissioner of commerce.  If the dormant account 
 96.34  has a matching grant account, all amounts in the beneficiary's 
 96.35  matching grant account, if any, must be returned to the office. 
 96.36     Subd. 11.  [EFFECT OF PLAN CHANGES ON PARTICIPATION 
 97.1   AGREEMENT.] Amendments to sections 136A.241 to 136A.246 
 97.2   automatically amend the participation agreement.  Any amendments 
 97.3   to the operating procedures and policies of the plan shall amend 
 97.4   the participation agreement 30 days after adoption by the office 
 97.5   or the board. 
 97.6      Subd. 12.  [SPECIAL ACCOUNT TO HOLD PLAN ASSETS IN 
 97.7   TRUST.] All assets of the plan, including contributions to 
 97.8   accounts and matching grant accounts and earnings, are held in 
 97.9   trust for the exclusive benefit of account owners and 
 97.10  beneficiaries.  Assets must be held in a separate account in the 
 97.11  state treasury to be known as the Minnesota college savings plan 
 97.12  account.  Plan assets are not subject to claims by creditors of 
 97.13  the state, are not part of the general fund, and are not subject 
 97.14  to appropriation by the state.  Payments from the Minnesota 
 97.15  college savings plan account shall be made under sections 
 97.16  136A.241 to 136A.246. 
 97.17     Sec. 20.  Minnesota Statutes 2000, section 136A.245, 
 97.18  subdivision 2, is amended to read: 
 97.19     Subd. 2.  [FAMILY INCOME.] (a) For purposes of this 
 97.20  section, "family income" means: 
 97.21     (1) if the beneficiary is under age 25, the combined 
 97.22  adjusted gross income of the beneficiary's parents or legal 
 97.23  guardians as reported on the federal tax return or returns for 
 97.24  the most recently available tax year.  If the beneficiary's 
 97.25  parents are divorced, the income of the parent claiming the 
 97.26  beneficiary as a dependent on the federal individual income tax 
 97.27  return and the income of that parent's spouse, if any, is used 
 97.28  to determine family income; or 
 97.29     (2) if the beneficiary is age 25 or older, the combined 
 97.30  adjusted gross income of the beneficiary and spouse, if any. 
 97.31     (b) For a parent or legal guardian of beneficiaries under 
 97.32  age 25 and for beneficiaries age 25 or older who resided in 
 97.33  Minnesota and filed a federal individual income tax return two 
 97.34  years prior to the year in which the matching grant is awarded, 
 97.35  the matching grant must be based on family income from Internal 
 97.36  Revenue Service tax data on file with the Minnesota department 
 98.1   of revenue.  
 98.2      (c) Parents or legal guardians of beneficiaries under age 
 98.3   25 and beneficiaries age 25 or older who did not reside in 
 98.4   Minnesota two years prior to the year in which the matching 
 98.5   grant is awarded must provide a signed copy of their federal 
 98.6   individual income tax return to the office, regardless of who 
 98.7   the account owner is, in order to be considered for a matching 
 98.8   grant. 
 98.9      Sec. 21.  Minnesota Statutes 2000, section 136A.245, is 
 98.10  amended by adding a subdivision to read: 
 98.11     Subd. 2a.  [RESIDENCY REQUIREMENT.] (a) If the beneficiary 
 98.12  is under age 25, the beneficiary's parents or legal guardians 
 98.13  must be Minnesota residents to qualify for a matching grant.  If 
 98.14  the beneficiary is age 25 or older, the beneficiary must be a 
 98.15  Minnesota resident to qualify for a matching grant. 
 98.16     (b) To meet the residency requirements, the parent or legal 
 98.17  guardian of beneficiaries under age 25 must have filed a 
 98.18  Minnesota individual income tax return as a Minnesota resident, 
 98.19  claiming the beneficiary as a dependent, two years prior to the 
 98.20  year in which the matching grant is awarded.  For beneficiaries 
 98.21  age 25 or older, the beneficiary, and a spouse, if any, must 
 98.22  have filed a Minnesota individual income tax return as a 
 98.23  Minnesota resident two years prior to the year in which the 
 98.24  matching grant is awarded. 
 98.25     (c) A parent of beneficiaries under age 25 and 
 98.26  beneficiaries age 25 or older who did not reside in Minnesota 
 98.27  two years prior to the year in which the matching grant is 
 98.28  awarded must establish Minnesota residency through the issuance 
 98.29  of a Minnesota driver's license or identification card. 
 98.30     Sec. 22.  Minnesota Statutes 2000, section 136A.245, is 
 98.31  amended by adding a subdivision to read: 
 98.32     Subd. 2b.  [AGE AND DATE OF BIRTH DETERMINATION OF 
 98.33  BENEFICIARY.] In determining the age of the beneficiary for 
 98.34  purposes of a matching grant, the plan administrator shall use 
 98.35  the age of the beneficiary as reported on the participation 
 98.36  agreement on December 31 of the year in which the request for a 
 99.1   matching grant is made. 
 99.2      Sec. 23.  Minnesota Statutes 2000, section 136A.245, 
 99.3   subdivision 4, is amended to read: 
 99.4      Subd. 4.  [BUDGET LIMIT.] If the total amount of matching 
 99.5   grants determined under subdivision 3 exceeds the amount of the 
 99.6   appropriation for the fiscal year, the director shall 
 99.7   proportionately reduce each grant so that the total equals the 
 99.8   available appropriation.  The director must reduce matching 
 99.9   grants so that the amount of the matching grant assigned to a 
 99.10  beneficiary's account equals: 
 99.11     (1) the ratio of state appropriations for the matching 
 99.12  grant divided by the total dollar amount of matching grants for 
 99.13  all beneficiaries; multiplied by 
 99.14     (2) the dollar amount of the matching grant for each 
 99.15  eligible beneficiary. 
 99.16     Sec. 24.  Minnesota Statutes 2000, section 136A.245, is 
 99.17  amended by adding a subdivision to read: 
 99.18     Subd. 7.  [ANNUAL APPLICATION.] An account owner must 
 99.19  submit an application form for a matching grant on an annual 
 99.20  basis.  The application must be postmarked by December 31 of the 
 99.21  year preceding the awarding of the matching grant.  
 99.22     Sec. 25.  Minnesota Statutes 2000, section 136A.245, is 
 99.23  amended by adding a subdivision to read: 
 99.24     Subd. 8.  [SINGLE BENEFICIARIES WITH MULTIPLE 
 99.25  ACCOUNTS.] (a) A matching grant will first be computed on an 
 99.26  account owned by a parent or legal guardian of the beneficiary, 
 99.27  or an account owner who is also the beneficiary.  If there are 
 99.28  multiple accounts for a single beneficiary, any matching grant, 
 99.29  up to the annual maximum, will be proportionately awarded to the 
 99.30  beneficiary named in accounts owned by the parents or guardians. 
 99.31     (b) If the account owned by a parent or a guardian or an 
 99.32  account owner who is also the beneficiary does not qualify for 
 99.33  the maximum annual matching grant, any remaining matching grant 
 99.34  funds are proportionately distributed to the beneficiary to an 
 99.35  account or accounts owned by someone other than the parent or 
 99.36  guardian. 
100.1      (c) If the account for a beneficiary is not owned by a 
100.2   parent or a legal guardian, or an account owner who is also the 
100.3   beneficiary, then the matching grant will be proportionately 
100.4   distributed to the beneficiary to accounts owned by others. 
100.5      Sec. 26.  Minnesota Statutes 2000, section 136A.245, is 
100.6   amended by adding a subdivision to read: 
100.7      Subd. 9.  [OWNERSHIP OF MATCHING GRANT FUNDS.] The state 
100.8   retains ownership of all matching grants and earnings on 
100.9   matching grants until a qualified distribution is made to a 
100.10  beneficiary or an eligible educational institution. 
100.11     Sec. 27.  Minnesota Statutes 2000, section 136A.245, is 
100.12  amended by adding a subdivision to read: 
100.13     Subd. 10.  [INACTIVE ACCOUNTS WITH MATCHING GRANTS.] (a) 
100.14  The plan administrator will attempt to locate the account owner 
100.15  or the beneficiary of an inactive account with a matching grant 
100.16  to determine the disposition of the account.  No fee will be 
100.17  charged for this service.  The matching grants and matching 
100.18  grant earnings in the account must be returned to the office, 
100.19  unless the account owner applies for a deferment or the 
100.20  beneficiary begins attending an eligible educational institution 
100.21  within one year of the date of notification. 
100.22     (b) The account owner may apply to the plan administrator 
100.23  for a deferment of inactive account time limits.  Upon 
100.24  application, the plan administrator shall grant a one-time 
100.25  deferment of two years.  In addition, the plan administrator 
100.26  shall grant a deferment for the beneficiary's initial enlistment 
100.27  for active duty in the armed forces of the United States, or for 
100.28  the period of active military duty required as part of the 
100.29  beneficiary's obligation as a member in a reserve military unit 
100.30  of the armed forces of the United States. 
100.31     Sec. 28.  Minnesota Statutes 2000, section 136A.245, is 
100.32  amended by adding a subdivision to read: 
100.33     Subd. 11.  [FORFEITURE OF MATCHING GRANTS.] (a) Matching 
100.34  grants are forfeited if: 
100.35     (1) the account owner transfers the total account balance 
100.36  of an account to another account or to another qualified state 
101.1   tuition program; 
101.2      (2) the beneficiary receives a full tuition scholarship or 
101.3   admission to a United States service academy; 
101.4      (3) the beneficiary dies or becomes disabled; 
101.5      (4) the account owner changes the beneficiary of the 
101.6   account; or 
101.7      (5) the account owner closes the account with a 
101.8   nonqualified withdrawal. 
101.9      (b) Matching grants must be proportionally forfeited if: 
101.10     (1) the account owner transfers a portion of an account to 
101.11  another account or to another qualified state tuition program; 
101.12     (2) the beneficiary receives a scholarship covering a 
101.13  portion of qualified higher education expenses; or 
101.14     (3) the account owner makes a partial nonqualified 
101.15  withdrawal. 
101.16     (c) If the account owner makes a misrepresentation in a 
101.17  participation agreement or an application for a matching grant 
101.18  that results in a matching grant, the matching grant associated 
101.19  with the misrepresentation is forfeited.  The office and the 
101.20  board must instruct the plan administrator as to the amount to 
101.21  be forfeited from the matching grant account.  The office and 
101.22  the board must withdraw the matching grant or the proportion of 
101.23  the matching grant that is related to the misrepresentation. 
101.24     Sec. 29.  [136A.246] [ACCOUNT DISTRIBUTIONS.] 
101.25     Subdivision 1.  [QUALIFIED DISTRIBUTION METHODS.] (a) 
101.26  Qualified distributions may be made: 
101.27     (1) directly to participating eligible educational 
101.28  institutions on behalf of the beneficiary; 
101.29     (2) in the form of a check payable to both the beneficiary 
101.30  and the eligible educational institution; or 
101.31     (3) to an account owner with a receipt verifying the 
101.32  payment of qualified higher education expenses. 
101.33     (b) When administratively feasible, distributions may be 
101.34  made when the account owner and beneficiary certify prior to the 
101.35  distribution that the distribution will be expended for 
101.36  qualified higher education expenses a reasonable time after the 
102.1   distribution.  The plan administrator may retain a penalty on 
102.2   the earnings portion of the nonqualified distribution until 
102.3   payment of qualified higher education expenses are 
102.4   substantiated.  A payment receipt showing payment for qualified 
102.5   higher education expenses must be submitted to the program 
102.6   administrator within 30 days of distribution. 
102.7      (c) Qualified distributions must be withdrawn 
102.8   proportionally from contributions and earnings in an account 
102.9   owner's account on the date of distribution as provided in 
102.10  section 529 of the Internal Revenue Code. 
102.11     Subd. 2.  [MATCHING GRANT ACCOUNTS.] Qualified 
102.12  distributions are based on the total account balances in an 
102.13  account owner's account and matching grant account, if any, on 
102.14  the date of distribution.  Qualified distributions must be 
102.15  withdrawn proportionally from each account based on the relative 
102.16  total account balance of each account to the total account 
102.17  balance for both accounts.  Amounts for matching grants and 
102.18  matching grant earnings must only be distributed for qualified 
102.19  higher education expenses. 
102.20     Subd. 3.  [NONQUALIFIED DISTRIBUTION.] An account owner may 
102.21  request a nonqualified distribution from an account at any 
102.22  time.  Nonqualified distributions are based on the total account 
102.23  balances in an account owner's account and must be withdrawn 
102.24  proportionally from contributions and earnings as provided in 
102.25  section 529 of the Internal Revenue Code.  The earnings portion 
102.26  of a nonqualified distribution is subject to a penalty.  For 
102.27  purposes of this subdivision, "earnings portion" means the ratio 
102.28  of the earnings in the account to the total account balance, 
102.29  immediately prior to the distribution, multiplied by the 
102.30  distribution.  The penalty must be withheld from the total 
102.31  amount of any distribution. 
102.32     Subd. 4.  [NONQUALIFIED DISTRIBUTIONS FROM MATCHING GRANT 
102.33  ACCOUNTS.] (a) If an account owner requests a nonqualified 
102.34  distribution from an account that has a matching grant account, 
102.35  the total account balance of the matching grant account, if any, 
102.36  is reduced. 
103.1      (b) After the nonqualified distribution is withdrawn from 
103.2   the account including any penalty as provided in subdivision 3, 
103.3   the account owner forfeits matching grant amounts in the same 
103.4   proportion as the nonqualified distribution is to the total 
103.5   account balance of the account. 
103.6      Subd. 5.  [DISTRIBUTIONS DUE TO DEATH OR DISABILITY OF, OR 
103.7   SCHOLARSHIP TO, A BENEFICIARY.] An account owner may request a 
103.8   distribution due to the death or disability of, or scholarship 
103.9   to, a beneficiary from an account by submitting a completed 
103.10  request to the plan.  Prior to distribution, the account owner 
103.11  shall certify the reason for the distribution and provide 
103.12  written confirmation from a third party that the beneficiary has 
103.13  died, become disabled, or received a scholarship for attendance 
103.14  at an eligible educational institution.  The plan must not 
103.15  consider a request to make a distribution until a third-party 
103.16  written confirmation is received by the plan.  For purposes of 
103.17  this subdivision, a third-party written confirmation consists of 
103.18  the following: 
103.19     (1) for death of the beneficiary, a certified copy of the 
103.20  beneficiary's death certificate; 
103.21     (2) for disability of the beneficiary, a certification by a 
103.22  physician who is a doctor of medicine or osteopathy stating that 
103.23  the doctor is legally authorized to practice in a state of the 
103.24  United States and that the beneficiary is unable to attend any 
103.25  eligible educational institution because of an injury or illness 
103.26  that is expected to continue indefinitely or result in death.  
103.27  Certification must be on a form approved by the plan; or 
103.28     (3) for a scholarship award to the beneficiary, a letter 
103.29  from the grantor of the scholarship or from the eligible 
103.30  educational institution receiving or administering the 
103.31  scholarship, that identifies the beneficiary by name and social 
103.32  security number or taxpayer identification number as the 
103.33  recipient of the scholarship and states the amount of the 
103.34  scholarship, the period of time or number of credits or units to 
103.35  which it applies, the date of the scholarship, and, if 
103.36  applicable, the eligible educational institution to which the 
104.1   scholarship is to be applied. 
104.2      Sec. 30.  [REVISOR'S INSTRUCTION.] 
104.3      (a) The revisor of statutes shall renumber each section of 
104.4   Minnesota Statutes listed in column A with the section listed in 
104.5   column B. 
104.6       Column A          Column B 
104.7       136A.241          136G.01 
104.8       136A.242          136G.03 
104.9       136A.243          136G.05 
104.10      136A.244          136G.07 
104.11      136A.2441         136G.09 
104.12      136A.245          136G.11 
104.13      136A.246          136G.13 
104.14     (b) The revisor of statutes shall correct cross-references 
104.15  in Minnesota Statutes that are recodified by this act, and, if 
104.16  Minnesota Statutes, sections 136A.241 to 136A.246, are further 
104.17  amended in the 2001 legislative regular or special session, 
104.18  shall codify the amendments in a manner consistent with this act.
104.19     (c) The revisor of statutes shall change "Edvest" to 
104.20  "Minnesota college savings plan" wherever it appears in 
104.21  Minnesota Statutes. 
104.22     Sec. 31.  [EFFECTIVE DATE.] 
104.23     This article is effective the day following final 
104.24  enactment, except that section 8 is effective July 1, 2002. 
104.25                             ARTICLE 16
104.26                    ENVIRONMENT AND AGRICULTURE
104.27  Section 1.  [ENVIRONMENT, NATURAL RESOURCES, AND AGRICULTURE 
104.28  APPROPRIATIONS.] 
104.29     The sums shown in the columns marked "APPROPRIATIONS" are 
104.30  appropriated from the general fund, or another named fund, to 
104.31  the agencies and for the purposes specified in this article, to 
104.32  be available for the fiscal years indicated for each purpose.  
104.33  The figures "2001," "2002," and "2003," where used in this 
104.34  article, mean that the appropriation or appropriations listed 
104.35  under them are available for the year ending June 30, 2001, June 
104.36  30, 2002, or June 30, 2003, respectively.  The term "the first 
105.1   year" means the year ending June 30, 2002, and the term "the 
105.2   second year" means the year ending June 30, 2003. 
105.3                           SUMMARY BY FUND
105.4                                                       BIENNIAL
105.5                 2001        2002          2003          TOTAL
105.6   General               $206,162,000   $209,599,000  $415,761,000
105.7   State Government
105.8   Special Revenue             47,000         48,000        95,000
105.9   Agriculture                200,000        200,000       400,000
105.10  Environmental           23,010,000     23,749,000    46,759,000
105.11  Natural
105.12  Resources               26,170,000     26,511,000    52,681,000
105.13  Game and Fish           67,894,000     69,347,000   137,241,000
105.14  Petroleum Tank           3,511,000      3,616,000     7,127,000
105.15  Solid Waste 500,000      7,494,000      7,729,000    15,223,000
105.16  Future Resources 
105.17  Fund                       389,000        -0-           389,000
105.18  Trust Fund                 338,000        338,000       676,000
105.19  TOTAL   $   500,000   $335,215,000   $341,137,000  $676,352,000
105.20                                             APPROPRIATIONS 
105.21                                         Available for the Year 
105.22                                             Ending June 30 
105.23                                            2002         2003 
105.24  Sec. 2.  POLLUTION CONTROL    
105.25  AGENCY  
105.26  Subdivision 1.  Total           
105.27  Appropriation                        $49,505,000   $50,858,000
105.28                Summary by Fund
105.29  General              17,184,000    17,481,000
105.30  Petroleum Tank        3,511,000     3,616,000
105.31  State Government   
105.32  Special Revenue          47,000        48,000
105.33  Environmental        21,369,000    22,084,000
105.34  Solid Waste 500,000   7,394,000     7,629,000
105.35  The amounts that may be spent from this 
105.36  appropriation for each program are 
105.37  specified in the following subdivisions.
105.38  Subd. 2.  Protection of the Water 
105.39      14,459,000     14,793,000
105.40                Summary by Fund
105.41  General              11,144,000    11,365,000
105.42  State Government
106.1   Special Revenue          47,000        48,000
106.2   Environmental         3,268,000     3,380,000
106.3   $2,348,000 the first year and 
106.4   $2,348,000 the second year are for the 
106.5   clean water partnership program.  Any 
106.6   balance remaining in the first year 
106.7   does not cancel and is available for 
106.8   the second year of the biennium. 
106.9   $1,841,000 the first year and 
106.10  $1,841,000 the second year are for 
106.11  grants for county administration of the 
106.12  feedlot permit program.  These amounts 
106.13  are transferred to the board of water 
106.14  and soil resources for disbursement in 
106.15  accordance with Minnesota Statutes, 
106.16  section 103B.3369, in cooperation with 
106.17  the pollution control agency.  Grants 
106.18  must be matched with a combination of 
106.19  local cash and/or in-kind contributions.
106.20  Counties receiving these grants shall 
106.21  submit an annual report to the 
106.22  pollution control agency regarding 
106.23  activities conducted under the grant, 
106.24  expenditures made, and local match 
106.25  contributions.  First priority for 
106.26  funding shall be given to counties that 
106.27  have requested and received delegation 
106.28  from the pollution control agency for 
106.29  processing of animal feedlot permit 
106.30  applications under Minnesota Statutes, 
106.31  section 116.07, subdivision 7.  For 
106.32  each year of the grant, delegated 
106.33  counties shall be eligible to receive 
106.34  an amount of either:  (1) $50 
106.35  multiplied by the number of feedlots 
106.36  with greater than ten animal units as 
106.37  determined by (i) registration data 
106.38  under Minnesota Rules, part 7020.0350, 
106.39  (ii) if registration data are not yet 
106.40  complete, a level 1 feedlot inventory 
106.41  conducted in accordance with the 
106.42  Feedlot Inventory Guidebook published 
106.43  by the board of water and soil 
106.44  resources, dated June 1991, or (iii) if 
106.45  registration or an inventory has not 
106.46  been completed, the number of livestock 
106.47  or poultry farms with sales greater 
106.48  than $10,000, as reported in the 1997 
106.49  Census of Agriculture, published by the 
106.50  United States Bureau of Census; or (2) 
106.51  $80 multiplied by the number of 
106.52  feedlots with greater than ten animal 
106.53  units as determined by a level 2 or 
106.54  level 3 feedlot inventory conducted in 
106.55  accordance with the Feedlot Inventory 
106.56  Guidebook published by the board of 
106.57  water and soil resources, dated June 
106.58  1991.  At a minimum, delegated counties 
106.59  are eligible to receive a grant of 
106.60  $7,500 per year.  To receive the 
106.61  additional funding that is based on the 
106.62  county feedlot inventory, the inventory 
106.63  information shall be current within the 
106.64  most recent four-year period and the 
106.65  county shall submit a copy of the 
106.66  inventory to the pollution control 
106.67  agency.  Any remaining money is for 
106.68  distribution to all counties on a 
107.1   competitive basis through the challenge 
107.2   grant process for the conducting of 
107.3   feedlot inventories, development of 
107.4   delegated county feedlot programs, and 
107.5   for information and education or 
107.6   technical assistance efforts to reduce 
107.7   feedlot-related pollution hazards.  Any 
107.8   money remaining after the first year is 
107.9   available for the second year.  
107.10  $328,000 the first year and $335,000 
107.11  the second year are for community 
107.12  technical assistance and education, 
107.13  including grants and technical 
107.14  assistance to communities for local and 
107.15  basinwide water quality protection. 
107.16  $204,000 the first year and $205,000 
107.17  the second year are for individual 
107.18  sewage treatment system (ISTS) 
107.19  administration.  Of this amount, 
107.20  $86,000 in each year is transferred to 
107.21  the board of water and soil resources 
107.22  for assistance to local units of 
107.23  government through competitive grant 
107.24  programs for ISTS program development. 
107.25  $200,000 each year is for individual 
107.26  sewage treatment system grants.  Any 
107.27  unexpended balance in the first year 
107.28  does not cancel, but is available in 
107.29  the second year. 
107.30  Subd. 3.  Protection of the Air 
107.31       7,591,000      7,751,000
107.32                Summary by Fund
107.33  General                 135,000        62,000 
107.34  Environmental         7,456,000     7,689,000
107.35  Up to $150,000 the first year and 
107.36  $150,000 the second year may be 
107.37  transferred to the environmental fund 
107.38  for the small business environmental 
107.39  improvement loan program established in 
107.40  Minnesota Statutes, section 116.993. 
107.41  $200,000 each year from the 
107.42  environmental fund is for a monitoring 
107.43  program under Minnesota Statutes, 
107.44  section 116.454. 
107.45  Subd. 4.  Protection of the Land 
107.46      10,909,000     11,177,000
107.47                Summary by Fund
107.48  General               1,258,000     1,265,000
107.49  Petroleum Tank        2,218,000     2,270,000
107.50  Solid Waste           4,617,000     4,758,000
107.51  Environmental         2,816,000     2,884,000
107.52  $200,000 the first year and $200,000 
107.53  the second year are from the 
108.1   environmental fund to be transferred to 
108.2   the department of health for private 
108.3   water supply monitoring and health 
108.4   assessment costs in areas contaminated 
108.5   by unpermitted mixed municipal solid 
108.6   waste disposal facilities. 
108.7   Subd. 5.  Integrated
108.8   Environmental Programs  
108.9       14,455,000     14,913,000
108.10                Summary by Fund
108.11  General               2,556,000     2,565,000
108.12  Petroleum Tank        1,293,000     1,346,000
108.13  Environmental         7,829,000     8,131,000
108.14  Solid Waste           2,777,000     2,871,000
108.15  $562,000 the first year and $574,000 
108.16  the second year are from the petroleum 
108.17  tank fund for purposes of the leaking 
108.18  underground storage tank program to 
108.19  protect the land. 
108.20  Subd. 6.  Administrative Support 
108.21   500,000     2,091,000      2,224,000
108.22                Summary by Fund
108.23  General               2,091,000     2,224,000
108.24  Solid waste 500,000
108.25  Subd. 7.  Deficiency Appropriation
108.26  for FLSA 
108.27  $500,000 in fiscal year 2001 is from 
108.28  the solid waste fund for back pay owed 
108.29  under settlements regarding overtime 
108.30  under the federal Fair Labor Standards 
108.31  Act.  
108.32  Sec. 3.  OFFICE OF ENVIRONMENTAL 
108.33  ASSISTANCE                            21,948,000     22,092,000
108.34                Summary by Fund
108.35  General              20,654,000    20,780,000
108.36  Environmental         1,294,000     1,312,000
108.37  $14,008,000 each year is for SCORE 
108.38  block grants to counties. 
108.39  Any unencumbered grant and loan 
108.40  balances in the first year do not 
108.41  cancel but are available for grants and 
108.42  loans in the second year. 
108.43  All money deposited in the 
108.44  environmental fund for the metropolitan 
108.45  solid waste landfill fee in accordance 
108.46  with Minnesota Statutes, section 
108.47  473.843, and not otherwise 
108.48  appropriated, is appropriated to the 
108.49  office of environmental assistance for 
109.1   the purposes of Minnesota Statutes, 
109.2   section 473.844. 
109.3   The funds appropriated pursuant to Laws 
109.4   1988, chapter 685, section 43, 
109.5   including those funds reappropriated in 
109.6   Laws 1999, chapter 231, section 3, are 
109.7   available until June 30, 2003.  
109.8   Sec. 4.  ZOOLOGICAL BOARD              7,445,000      7,668,000
109.9   Sec. 5.  NATURAL RESOURCES 
109.10  Subdivision 1.  Total 
109.11  Appropriation                        207,026,000    211,181,000
109.12                Summary by Fund
109.13  General             112,897,000   115,259,000
109.14  Natural Resources    26,135,000    26,475,000
109.15  Game and Fish        67,894,000    69,347,000
109.16  Solid Waste             100,000       100,000
109.17  The amounts that may be spent from this 
109.18  appropriation for each program are 
109.19  specified in the following subdivisions.
109.20  Subd. 2.  Land and Mineral Resources
109.21       7,135,000      7,298,000
109.22                Summary by Fund
109.23  General               6,556,000     6,704,000
109.24  Natural Resources       152,000       156,000
109.25  Game and Fish           427,000       438,000
109.26  $314,000 the first year and $315,000 
109.27  the second year are for iron ore 
109.28  cooperative research, of which $200,000 
109.29  the first year and $200,000 the second 
109.30  year are available only as matched by 
109.31  $1 of nonstate money for each $1 of 
109.32  state money.  Any unencumbered balance 
109.33  remaining in the first year does not 
109.34  cancel but is available for the second 
109.35  year. 
109.36  $380,000 the first year and $382,000 
109.37  the second year are for mineral 
109.38  diversification.  
109.39  $103,000 the first year and $104,000 
109.40  the second year are for minerals 
109.41  cooperative environmental research, of 
109.42  which $50,000 the first year and 
109.43  $50,500 the second year are available 
109.44  only as matched by $1 of nonstate money 
109.45  for each $1 of state money.  Any 
109.46  unencumbered balance remaining in the 
109.47  first year does not cancel but is 
109.48  available for the second year. 
109.49  Subd. 3.  Water Resources Management 
109.50      12,522,000      12,760,000
110.1                 Summary by Fund
110.2   General              12,248,000    12,480,000
110.3   Natural Resources       274,000       280,000
110.4   $170,000 the first year and $170,000 
110.5   the second year are for a grant to the 
110.6   Mississippi headwaters board for up to 
110.7   50 percent of the cost of implementing 
110.8   the comprehensive plan for the upper 
110.9   Mississippi within areas under its 
110.10  jurisdiction.  
110.11  $17,000 the first year and $17,000 the 
110.12  second year are for payment to the 
110.13  Leech Lake Band of Chippewa Indians to 
110.14  implement its portion of the 
110.15  comprehensive plan for the upper 
110.16  Mississippi.  
110.17  $1,000,000 the first year and 
110.18  $1,000,000 the second year are for 
110.19  activities associated with the 
110.20  implementation of the Red River 
110.21  mediation agreement, including 
110.22  comprehensive watershed plans; agency 
110.23  interdisciplinary teams for each 
110.24  watershed, and a basin repository, 
110.25  including data on flood flows and water 
110.26  supply; and for grants to watershed 
110.27  districts located within the Red River 
110.28  Basin for flood damage reduction 
110.29  projects under Minnesota Statutes, 
110.30  section 103F.161. 
110.31  Subd. 4.  Forest Management 
110.32      32,509,000     33,206,000
110.33                Summary by Fund
110.34  General              36,187,000    36,709,000
110.35  $3,744,000 the first year and 
110.36  $3,803,000 the second year are for 
110.37  presuppression and suppression costs of 
110.38  emergency firefighting and other costs 
110.39  incurred under Minnesota Statutes, 
110.40  section 88.12, subdivision 2, related 
110.41  to search and rescue operations.  If 
110.42  the appropriation for either year is 
110.43  insufficient to cover all costs of 
110.44  suppression and search and rescue 
110.45  operations, the amount necessary to pay 
110.46  for these costs during the biennium is 
110.47  appropriated from the general fund.  By 
110.48  November 15 each year, the commissioner 
110.49  must report on all expenditures from 
110.50  these appropriations.  The report must 
110.51  identify presuppression activities, 
110.52  suppression activities conducted in 
110.53  anticipation of fires, and suppression 
110.54  activities conducted to extinguish 
110.55  fires.  The appropriations may not be 
110.56  transferred.  Notwithstanding Minnesota 
110.57  Statutes, section 88.75, any 
110.58  reimbursement of firefighting 
110.59  expenditures made to the commissioner 
110.60  from any source other than federal 
110.61  mobilizations shall be deposited into 
111.1   the general fund.  
111.2   $730,000 the first year and $736,000 
111.3   the second year are for programs and 
111.4   practices on state, county, and private 
111.5   lands to regenerate and protect 
111.6   Minnesota's white pine.  Up to $280,000 
111.7   of the appropriation in each year may 
111.8   be used by the commissioner to provide 
111.9   50 percent matching funds to implement 
111.10  cultural practices for white pine 
111.11  management on nonindustrial, private 
111.12  forest lands at rates specified in the 
111.13  Minnesota stewardship incentives 
111.14  program manual.  Up to $150,000 of the 
111.15  appropriation in each year may be used 
111.16  by the commissioner to provide funds to 
111.17  implement cultural practices for white 
111.18  pine management on county-administered 
111.19  lands through grant agreements with 
111.20  individual counties, with priorities 
111.21  for areas that experienced wind damage 
111.22  in July 1995.  $40,000 each year is for 
111.23  a study of the natural regeneration 
111.24  process of white pine.  The remainder 
111.25  of the funds in each fiscal year will 
111.26  be available to the commissioner for 
111.27  white pine regeneration and protection 
111.28  on department-administered lands. 
111.29  $64,000 the first year and $65,000 the 
111.30  second year are for the focus on 
111.31  community forests program, to provide 
111.32  communities with natural resources 
111.33  technical assistance. 
111.34  Subd. 5.  Parks and Recreation 
111.35  Management 
111.36      30,172,000     30,775,000
111.37                Summary by Fund
111.38  General              29,534,000    30,135,000
111.39  Natural Resources       638,000       640,000
111.40  $638,000 the first year and $640,000 
111.41  the second year are from the water 
111.42  recreation account in the natural 
111.43  resources fund for state park 
111.44  development projects.  If the 
111.45  appropriation in either year is 
111.46  insufficient, the appropriation for the 
111.47  other year is available for it. 
111.48  $3,000,000 the first year and 
111.49  $3,000,000 the second year are for 
111.50  payment of a grant to the metropolitan 
111.51  council for metropolitan area regional 
111.52  parks maintenance and operations.  
111.53  $247,000 the first year and $253,000 
111.54  the second year are for state forest 
111.55  campground operations. 
111.56  Subd. 6.  Trails and Waterways 
111.57  Management 
111.58      17,800,000     17,995,000
112.1                 Summary by Fund
112.2   General               2,122,000     2,158,000
112.3   Natural Resources    14,070,000    14,228,000
112.4   Game and Fish         1,608,000     1,609,000
112.5   $4,649,000 the first year and 
112.6   $4,649,000 the second year are from the 
112.7   snowmobile trails and enforcement 
112.8   account in the natural resources fund 
112.9   for snowmobile grants-in-aid.  
112.10  $259,000 the first year and $261,000 
112.11  the second year are from the water 
112.12  recreation account in the natural 
112.13  resources fund for a safe harbor 
112.14  program on Lake Superior. 
112.15  Subd. 7.  Fish Management
112.16      23,412,000     23,944,000
112.17                Summary by Fund
112.18  General                 646,000       660,000
112.19  Natural Resources       191,000       197,000
112.20  Game and Fish        22,575,000    23,087,000
112.21  $222,000 the first year and $227,000 
112.22  the second year are for resource 
112.23  population surveys in the 1837 treaty 
112.24  area.  Of this amount, $84,000 the 
112.25  first year and $85,000 the second year 
112.26  are from the game and fish fund. 
112.27  $165,000 the first year and $190,000 
112.28  the second year are for the reinvest in 
112.29  Minnesota programs of game and fish, 
112.30  critical habitat, and wetlands 
112.31  established under Minnesota Statutes, 
112.32  section 84.95, subdivision 2.  
112.33  $666,000 the first year and $671,000 
112.34  the second year are from the trout and 
112.35  salmon management account for only the 
112.36  purposes specified in Minnesota 
112.37  Statutes, section 97A.075, subdivision 
112.38  3. 
112.39  $205,000 the first year and $207,000 
112.40  the second year are available for 
112.41  aquatic plant restoration. 
112.42  Subd. 8.  Wildlife Management 
112.43      19,956,000     20,329,000
112.44                Summary by Fund
112.45  General               1,720,000     1,744,000
112.46  Game and Fish        18,236,000    18,585,000
112.47  $106,000 the first year and $106,000 
112.48  the second year are for resource 
112.49  population surveys in the 1837 treaty 
112.50  area.  Of this amount, $26,000 the 
113.1   first year and $26,000 the second year 
113.2   are from the game and fish fund. 
113.3   $552,000 the first year and $565,000 
113.4   the second year are for the reinvest in 
113.5   Minnesota programs of game and fish, 
113.6   critical habitat, and wetlands 
113.7   established under Minnesota Statutes, 
113.8   section 84.95, subdivision 2. 
113.9   $1,419,000 the first year and 
113.10  $1,430,000 the second year are from the 
113.11  wildlife acquisition surcharge account 
113.12  for only the purposes specified in 
113.13  Minnesota Statutes, section 97A.071, 
113.14  subdivision 2a. 
113.15  $1,245,000 the first year and 
113.16  $1,269,000 the second year are from the 
113.17  deer habitat improvement account for 
113.18  only the purposes specified in 
113.19  Minnesota Statutes, section 97A.075, 
113.20  subdivision 1, paragraph (b). 
113.21  $147,000 the first year and $148,000 
113.22  the second year are from the deer and 
113.23  bear management account for only the 
113.24  purposes specified in Minnesota 
113.25  Statutes, section 97A.075, subdivision 
113.26  1, paragraph (c). 
113.27  $699,000 the first year and $708,000 
113.28  the second year are from the waterfowl 
113.29  habitat improvement account for only 
113.30  the purposes specified in Minnesota 
113.31  Statutes, section 97A.075, subdivision 
113.32  2. 
113.33  $546,000 the first year and $546,000 
113.34  the second year are from the pheasant 
113.35  habitat improvement account for only 
113.36  the purposes specified in Minnesota 
113.37  Statutes, section 97A.075, subdivision 
113.38  4.  In addition to the purposes 
113.39  specified in Minnesota Statutes, 
113.40  section 97A.075, subdivision 4, this 
113.41  appropriation may be used for pheasant 
113.42  restocking efforts. 
113.43  $308,000 the first year and $313,000 
113.44  the second year are from the game and 
113.45  fish fund for activities relating to 
113.46  reduction and prevention of property 
113.47  damage by wildlife.  $50,000 each year 
113.48  is for emergency damage abatement 
113.49  materials. 
113.50  $86,000 the first year and $87,000 the 
113.51  second year are from the wild turkey 
113.52  management account for only the 
113.53  purposes specified in Minnesota 
113.54  Statutes, section 97A.075, subdivision 
113.55  5. 
113.56  $13,000 the first year and $13,000 the 
113.57  second year are to publicize the 
113.58  critical habitat license plate match 
113.59  program. 
113.60  Subd. 9.  Ecological Services
114.1        7,511,000      7,658,000
114.2                 Summary by Fund
114.3   General               3,745,000     3,818,000
114.4   Natural Resources     1,979,000     2,013,000
114.5   Game and Fish         1,787,000     1,827,000
114.6   $1,006,000 the first year and 
114.7   $1,028,000 the second year are from the 
114.8   nongame wildlife management account in 
114.9   the natural resources fund for the 
114.10  purpose of nongame wildlife management. 
114.11  $254,000 the first year and $259,000 
114.12  the second year are for population and 
114.13  habitat objectives of the nongame 
114.14  wildlife management program. 
114.15  $593,000 the first year and $600,000 
114.16  the second year are for the reinvest in 
114.17  Minnesota programs of game and fish, 
114.18  critical habitat, and wetlands 
114.19  established under Minnesota Statutes, 
114.20  section 84.95, subdivision 2. 
114.21  $103,000 the first year and $105,000 
114.22  the second year are for water 
114.23  monitoring activities, including 
114.24  integrated monitoring using biology, 
114.25  chemistry, hydrology, and habitat 
114.26  assessment for water quality assessment.
114.27  $12,000 the first year and $12,000 the 
114.28  second year are to publicize the tax 
114.29  donation checkoff to the nongame 
114.30  wildlife program. 
114.31  $970,000 the first year is from the 
114.32  game and fish fund for the wildlife 
114.33  conservation and restoration program.  
114.34  This appropriation is for the planning 
114.35  and implementation of a program that 
114.36  addresses wildlife conservation and 
114.37  restoration, wildlife conservation 
114.38  education, and wildlife associated 
114.39  recreation. 
114.40  Subd. 10.  Enforcement 
114.41      23,314,000     23,817,000
114.42                Summary by Fund
114.43  General               3,741,000     3,836,000
114.44  Natural Resources     4,691,000     4,736,000
114.45  Game and Fish        14,782,000    15,145,000
114.46  Solid Waste             100,000       100,000
114.47  $1,082,000 the first year and 
114.48  $1,082,000 the second year are from the 
114.49  water recreation account in the natural 
114.50  resources fund for grants to counties 
114.51  for boat and water safety. 
114.52  $100,000 the first year and $100,000 
115.1   the second year are from the solid 
115.2   waste fund for solid waste enforcement 
115.3   activities under Minnesota Statutes, 
115.4   section 116.073. 
115.5   $315,000 the first year and $315,000 
115.6   the second year are from the snowmobile 
115.7   trails and enforcement account in the 
115.8   natural resources fund for grants to 
115.9   local law enforcement agencies for 
115.10  snowmobile enforcement activities. 
115.11  $40,000 the first year and $40,000 the 
115.12  second year are from the natural 
115.13  resources fund for enforcement 
115.14  activities relating to the iron range 
115.15  off-highway vehicle recreation area.  
115.16  Of the amount appropriated, $40,000 is 
115.17  from the all-terrain vehicle account, 
115.18  $32,000 is from the off-road vehicle 
115.19  account, and $8,000 is from the 
115.20  off-highway motorcycle account. 
115.21  $131,000 the first year and $133,000 
115.22  the second year are for protected class 
115.23  employee recruitment and retention. 
115.24  Overtime shall be distributed to 
115.25  conservation officers at historical 
115.26  levels.  If funding for enforcement is 
115.27  reduced because of an unallotment, the 
115.28  overtime bank may be reduced in 
115.29  proportion to reductions made in other 
115.30  areas of the budget. 
115.31  Subd. 11.  Operations Support
115.32      32,695,000     33,399,000
115.33                Summary by Fund
115.34  General              20,076,000    20,518,000
115.35  Natural Resources     4,140,000     4,225,000
115.36  Game and Fish         8,479,000     8,656,000
115.37  $413,000 the first year and $418,000 
115.38  the second year are for technical 
115.39  assistance and grants to assist local 
115.40  government units and organizations in 
115.41  the metropolitan area to acquire and 
115.42  develop natural areas and greenways. 
115.43  $494,000 the first year and $504,000 
115.44  the second year are for the community 
115.45  assistance program to provide for 
115.46  technical assistance and regional 
115.47  resource enhancement grants. 
115.48  $2,538,000 the first year and 
115.49  $2,595,000 the second year are for the 
115.50  operations of the youth programs.  Of 
115.51  these amounts, $478,000 the first year 
115.52  and $491,000 the second year are from 
115.53  the natural resources fund. 
115.54  The commissioner may contract with and 
115.55  make grants to nonprofit agencies to 
115.56  carry out the purposes, plans, and 
115.57  programs of the office of youth 
116.1   programs, Minnesota Conservation Corps. 
116.2   Sec. 6.  BOARD OF WATER AND 
116.3   SOIL RESOURCES                        18,244,000     18,363,000
116.4   $5,480,000 the first year and 
116.5   $5,480,000 the second year are for 
116.6   natural resources block grants to local 
116.7   governments.  Of this amount, $50,000 
116.8   each year is for a grant to the North 
116.9   Shore management board, $35,000 each 
116.10  year is for a grant to the St. Louis 
116.11  river board, $100,000 each year is for 
116.12  a grant to the Minnesota river basin 
116.13  joint powers board, and $27,000 each 
116.14  year is for a grant to the southeast 
116.15  Minnesota resources board. 
116.16  The board shall reduce the amount of 
116.17  the natural resource block grant to a 
116.18  county by an amount equal to any 
116.19  reduction in the county's general 
116.20  services allocation to a soil and water 
116.21  conservation district from the county's 
116.22  previous year allocation. 
116.23  Grants must be matched with a 
116.24  combination of local cash or in-kind 
116.25  contributions.  The base grant portion 
116.26  related to water planning must be 
116.27  matched by an amount that would be 
116.28  raised by a levy under Minnesota 
116.29  Statutes, section 103B.3369. 
116.30  $3,867,000 the first year and 
116.31  $3,867,000 the second year are for 
116.32  grants to soil and water conservation 
116.33  districts for general purposes, 
116.34  nonpoint engineering, and 
116.35  implementation of the reinvest in 
116.36  Minnesota (RIM) conservation reserve 
116.37  program.  Upon approval of the board, 
116.38  expenditures may be made from these 
116.39  appropriations for supplies and 
116.40  services benefiting soil and water 
116.41  conservation districts. 
116.42  $4,120,000 the first year and 
116.43  $4,120,000 the second year are for 
116.44  grants to soil and water conservation 
116.45  districts for cost-sharing contracts 
116.46  for erosion control and water quality 
116.47  management.  Of this amount, at least 
116.48  $1,500,000 the first year and 
116.49  $1,500,000 the second year are for 
116.50  grants for cost-sharing contracts for 
116.51  water quality management on feedlots.  
116.52  $189,000 the first year and $189,000 
116.53  the second year are for grants to 
116.54  watershed districts and other local 
116.55  units of government in the southern 
116.56  Minnesota River basin study area 2 for 
116.57  floodplain management.  If the 
116.58  appropriation in either year is 
116.59  insufficient, the appropriation in the 
116.60  other year is available for it. 
116.61  $463,000 the first year and $476,000 
116.62  the second year are for the 
116.63  administrative costs of easement and 
117.1   grant programs. 
117.2   Any unencumbered balance in the board's 
117.3   program of grants does not cancel at 
117.4   the end of the first year and is 
117.5   available for the second year for the 
117.6   same grant program.  This appropriation 
117.7   is available until expended.  If the 
117.8   appropriation in either year is 
117.9   insufficient, the appropriation in the 
117.10  other year is available for it.  
117.11  Sec. 7.  MINNESOTA-WISCONSIN
117.12  BOUNDARY AREA COMMISSION                 194,000        199,000
117.13                Summary by Fund
117.14  General                 159,000       163,000
117.15  Natural Resources        35,000        36,000
117.16  This appropriation is only available to 
117.17  the extent it is matched by an equal 
117.18  amount from the state of Wisconsin. 
117.19  $35,000 the first year and $36,000 the 
117.20  second year are from the water 
117.21  recreation account in the natural 
117.22  resources fund for the St. Croix 
117.23  management and stewardship program. 
117.24  Sec. 8.  SCIENCE MUSEUM 
117.25  OF MINNESOTA                           1,164,000      1,164,000
117.26  Sec. 9.  AGRICULTURE 
117.27  Subdivision 1.  Total 
117.28  Appropriation                         21,727,000     22,099,000
117.29                Summary by Fund
117.30  General              21,380,000    21,746,000
117.31  Environmental           347,000       353,000
117.32  The amounts that may be spent from this 
117.33  appropriation for each program are 
117.34  specified in the following subdivisions.
117.35  Subd. 2.  Protection Service 
117.36      11,340,000     11,554,000
117.37                Summary by Fund
117.38  General               10,993,000   11,201,000
117.39  Environmental            347,000      353,000
117.40  $504,000 the first year and $505,000 
117.41  the second year are for diagnostics 
117.42  teams. 
117.43  $347,000 the first year and $353,000 
117.44  the second year are from the 
117.45  environmental fund for administrative 
117.46  funding for the voluntary cleanup 
117.47  program.  
117.48  Subd. 3.  Agricultural Marketing and Development
118.1         5,521,000      5,610,000 
118.2   Notwithstanding Minnesota Statutes, 
118.3   section 41A.09, subdivision 3a, the 
118.4   total payments from the ethanol 
118.5   development account to all producers 
118.6   may not exceed $70,892,000 for the 
118.7   biennium ending June 30, 2003.  If the 
118.8   total amount for which all producers 
118.9   are eligible in a quarter exceeds the 
118.10  amount available for payments, the 
118.11  commissioner shall make the payments on 
118.12  a pro rata basis. 
118.13  $71,000 the first year and $71,000 the 
118.14  second year are for transfer to the 
118.15  Minnesota grown matching account and 
118.16  may be used as grants for Minnesota 
118.17  grown promotion under Minnesota 
118.18  Statutes, section 17.109. 
118.19  $65,000 the first year and $65,000 the 
118.20  second year are for beaver damage 
118.21  control grants under Minnesota 
118.22  Statutes, section 17.110. 
118.23  Subd. 4.  Administration and 
118.24  Financial Assistance 
118.25        4,866,000     4,935,000
118.26  $49,000 the first year and $49,000 the 
118.27  second year are for family farm 
118.28  security interest payment adjustments.  
118.29  If the appropriation for either year is 
118.30  insufficient, the appropriation for the 
118.31  other year is available for it.  No new 
118.32  loans may be approved in fiscal year 
118.33  2002 or 2003.  
118.34  $70,000 the first year and $70,000 the 
118.35  second year are for the Northern Crops 
118.36  Institute.  These appropriations may be 
118.37  spent to purchase equipment and are 
118.38  available until spent.  
118.39  $175,000 the first year and $175,000 
118.40  the second year are for grants to 
118.41  agriculture information centers.  The 
118.42  grants are only available on a match 
118.43  basis.  The funds may be released at 
118.44  the rate of $4 of state money for each 
118.45  $1 of matching nonstate money that is 
118.46  raised.  
118.47  $115,000 the first year and $115,000 
118.48  the second year are for the Seaway Port 
118.49  Authority of Duluth. 
118.50  $19,000 the first year and $19,000 the 
118.51  second year are for a grant to the 
118.52  Minnesota Livestock Breeders' 
118.53  Association. 
118.54  $237,000 the first year and $237,000 
118.55  the second year are for the farm 
118.56  advocates program.  
118.57  Sec. 10.  BOARD OF ANIMAL HEALTH       2,823,000       2,763,000
118.58  $200,000 the first year and $200,000 
119.1   the second year are for a program to 
119.2   control paratuberculosis ("Johne's 
119.3   disease") in domestic bovine herds.  
119.4   Sec. 11.  MINNESOTA HORTICULTURAL 
119.5   SOCIETY                                  82,000         82,000
119.6   Sec. 12.  AGRICULTURAL UTILIZATION
119.7   RESEARCH INSTITUTE                    4,330,000      4,330,000
119.8                 Summary by Fund
119.9   General               4,130,000     4,130,000
119.10  Agriculture Fund        200,000       200,000 
119.11  $200,000 the first year and $200,000 
119.12  the second year are for hybrid tree 
119.13  management research and development of 
119.14  an implementation plan for establishing 
119.15  hybrid tree plantations in the state.  
119.16  This appropriation is available to the 
119.17  extent matched by $2 of nonstate 
119.18  contributions, either cash or in-kind, 
119.19  for each $1 of state money. 
119.20  Sec. 13.  MINNESOTA RESOURCES
119.21  Subdivision 1.  Total
119.22  Appropriation                            727,000        338,000
119.23                Summary by Fund
119.24  Minnesota Future 
119.25  Resources Fund          389,000       -0- 
119.26  Environment and 
119.27  Natural Resources 
119.28  Trust Fund              338,000       338,000
119.29  Appropriations from the Minnesota 
119.30  future resources fund are available for 
119.31  either year of the biennium. 
119.32  For appropriations from the environment 
119.33  and natural resources trust fund, any 
119.34  unencumbered balance remaining in the 
119.35  first year does not cancel and is 
119.36  available for the second year. 
119.37  Unless otherwise provided, the amounts 
119.38  in this section are available until 
119.39  June 30, 2003, when projects must be 
119.40  completed and final products delivered. 
119.41  Subd. 2.  Definitions 
119.42  (a) "Future resources fund" means the 
119.43  Minnesota future resources fund 
119.44  referred to in Minnesota Statutes, 
119.45  section 116P.13. 
119.46  (b) "Trust fund" means the Minnesota 
119.47  environment and natural resources trust 
119.48  fund referred to in Minnesota Statutes, 
119.49  section 116P.02, subdivision 6. 
119.50  Subd. 3.  Administration                 727,000        338,000
119.51                Summary by Fund
120.1   Future Resources 
120.2   Fund                    389,000       -0-
120.3   Trust Fund              338,000       338,000
120.4   Legislative Commission on Minnesota 
120.5   Resources 
120.6   $389,000 of this appropriation is from 
120.7   the future resources fund and $338,000 
120.8   the first year and $338,000 the second 
120.9   year are from the trust fund for 
120.10  administration as provided in Minnesota 
120.11  Statutes, section 116P.09, subdivision 
120.12  5.  
120.13  Subd. 4.  Carryforward       
120.14  (a) The availability of the 
120.15  appropriations for the following 
120.16  projects is extended to June 30, 2002:  
120.17  Laws 1999, chapter 231, section 16, 
120.18  subdivision 4, paragraph (m), Como Park 
120.19  campus maintenance; subdivision 6, 
120.20  paragraph (b), identification of 
120.21  sediment sources in agricultural 
120.22  watersheds, and paragraph (c), 
120.23  accelerated statewide local water plan 
120.24  implementation; subdivision 7, 
120.25  paragraph (g), Minnesota river basin 
120.26  initiative; local leadership, paragraph 
120.27  (h), commercial fertilizer plant for 
120.28  livestock solid waste processing, and 
120.29  paragraph (j), wild rice management 
120.30  planning; subdivision 8, paragraph (b), 
120.31  tools and training for community-based 
120.32  planning; subdivision 10, paragraph 
120.33  (g), by-products application to 
120.34  agricultural, mineland, and forest 
120.35  soils; subdivision 11, paragraph (c), 
120.36  Minnesota wolf public education; 
120.37  subdivision 12, paragraph (d), Dakota 
120.38  county wetland health monitoring 
120.39  program, paragraph (e), predicting 
120.40  water and forest resources health and 
120.41  sustainability, and paragraph (f), 
120.42  potential for infant risk from nitrate 
120.43  contamination; and subdivision 13, 
120.44  paragraph (b), national prairie 
120.45  passage; linking isolated prairie 
120.46  preserves, paragraph (g), arboretum 
120.47  land acquisition and wetlands 
120.48  restoration - continuation. 
120.49  (b) The availability of the 
120.50  appropriations for the following 
120.51  projects is extended to June 30, 2004:  
120.52  Laws 1999, chapter 231, section 16, 
120.53  subdivision 4, paragraph (b), Mesabi 
120.54  trail land acquisition and development -
120.55  continuation; and subdivision 11, 
120.56  paragraph (f), science outreach and 
120.57  integrated learning on soil. 
120.58  (c) The availability of the 
120.59  appropriation in Laws 1999, chapter 
120.60  231, section 16, subdivision 8, 
120.61  paragraph (a), resources for 
120.62  redevelopment:  a community property 
120.63  investigation program, is extended to 
120.64  June 30, 2002, for additional sites. 
121.1   (d) The availability of the 
121.2   appropriation in Laws 1999, chapter 
121.3   231, section 16, subdivision 9, 
121.4   paragraph (c), evaluate biodiesel made 
121.5   from waste fats and oils, is extended 
121.6   to June 30, 2002, for trial in 
121.7   heavy-duty vehicles. 
121.8                              ARTICLE 17
121.9                      HEALTH AND HUMAN SERVICES
121.10  Section 1.  [HEALTH AND HUMAN SERVICES APPROPRIATIONS.] 
121.11     The sums shown in the columns marked "APPROPRIATIONS" are 
121.12  appropriated from the general fund, or any other fund named, to 
121.13  the agencies and for the purposes specified in the following 
121.14  sections of this article, to be available for the fiscal years 
121.15  indicated for each purpose.  The figures "2002" and "2003" where 
121.16  used in this article, mean that the appropriation or 
121.17  appropriations listed under them are available for the fiscal 
121.18  year ending June 30, 2002, or June 30, 2003, respectively.  
121.19  Where a dollar amount appears in parentheses, it means a 
121.20  reduction of an appropriation.  
121.21                          SUMMARY BY FUND 
121.22                                                      BIENNIAL
121.23                          2002          2003            TOTAL
121.24  General          $3,033,873,000 $3,351,990,000 $6,385,863,000
121.25  State Government
121.26  Special Revenue      35,183,000     36,284,000     71,467,000
121.27  Health Care
121.28  Access              214,964,000    271,028,000    485,992,000
121.29  Federal TANF        265,342,000    228,660,000    494,022,000
121.30  Lottery Cash Flow     1,303,000      1,306,000      2,609,000
121.31  TOTAL            $3,550,665,000 $3,889,228,000 $7,439,953,000
121.32                                             APPROPRIATIONS 
121.33                                         Available for the Year 
121.34                                             Ending June 30 
121.35                                            2002         2003 
121.36  Sec. 2.  COMMISSIONER OF 
121.37  HUMAN SERVICES 
121.38  Subdivision 1.  Total 
121.39  Appropriation                     $3,405,363,000 $3,740,915,000
121.40                Summary by Fund
121.41  General           2,937,141,000 3,253,356,000
121.42  State Government
121.43  Special Revenue         520,000       534,000
122.1   Health Care 
122.2   Access              208,057,000   264,039,000
122.3   Federal TANF        258,342,000   221,680,000
122.4   Lottery Cash Flow     1,303,000     1,306,000
122.5   TOTAL             3,405,363,000 3,740,915,000
122.6   [RECEIPTS FOR SYSTEMS PROJECTS.] 
122.7   Appropriations and federal receipts for 
122.8   information system projects for MAXIS, 
122.9   PRISM, MMIS, and SSIS must be deposited 
122.10  in the state system account authorized 
122.11  in Minnesota Statutes, section 
122.12  256.014.  Money appropriated for 
122.13  computer projects approved by the 
122.14  Minnesota office of technology, funded 
122.15  by the legislature, and approved by the 
122.16  commissioner of finance may be 
122.17  transferred from one project to another 
122.18  and from development to operations as 
122.19  the commissioner of human services 
122.20  considers necessary.  Any unexpended 
122.21  balance in the appropriation for these 
122.22  projects does not cancel but is 
122.23  available for ongoing development and 
122.24  operations. 
122.25  [GIFTS.] Notwithstanding Minnesota 
122.26  Statutes, chapter 7, the commissioner 
122.27  may accept on behalf of the state 
122.28  additional funding from sources other 
122.29  than state funds for the purpose of 
122.30  financing the cost of assistance 
122.31  program grants or nongrant 
122.32  administration.  All additional funding 
122.33  is appropriated to the commissioner for 
122.34  use as designated by the grantor of 
122.35  funding. 
122.36  [SYSTEMS CONTINUITY.] In the event of 
122.37  disruption of technical systems or 
122.38  computer operations, the commissioner 
122.39  may use available grant appropriations 
122.40  to ensure continuity of payments for 
122.41  maintaining the health, safety, and 
122.42  well-being of clients served by 
122.43  programs administered by the department 
122.44  of human services.  Grant funds must be 
122.45  used in a manner consistent with the 
122.46  original intent of the appropriation. 
122.47  [SPECIAL REVENUE FUND INFORMATION.] On 
122.48  December 1, 2001, and December 1, 2002, 
122.49  the commissioner shall provide the 
122.50  chairs of the house health and human 
122.51  services finance committee and the 
122.52  senate health, human services, and 
122.53  corrections budget division with 
122.54  detailed fund balance information for 
122.55  each special revenue fund account.  
122.56  [FEDERAL ADMINISTRATIVE REIMBURSEMENT.] 
122.57  Federal administrative reimbursement 
122.58  resulting from MinnesotaCare outreach 
122.59  grants and the Minnesota senior health 
122.60  options project are appropriated to the 
122.61  commissioner for these activities. 
122.62  [NONFEDERAL SHARE TRANSFERS.] The 
123.1   nonfederal share of activities for 
123.2   which federal administrative 
123.3   reimbursement is appropriated to the 
123.4   commissioner may be transferred to the 
123.5   special revenue fund. 
123.6   [TANF FUNDS APPROPRIATED TO OTHER 
123.7   ENTITIES.] Any expenditures from the 
123.8   TANF block grant shall be expended in 
123.9   accordance with the requirements and 
123.10  limitations of part A of title IV of 
123.11  the Social Security Act, as amended, 
123.12  and any other applicable federal 
123.13  requirement or limitation.  Prior to 
123.14  any expenditure of these funds, the 
123.15  commissioner shall assure that funds 
123.16  are expended in compliance with the 
123.17  requirements and limitations of federal 
123.18  law and that any reporting requirements 
123.19  of federal law are met.  It shall be 
123.20  the responsibility of any entity to 
123.21  which these funds are appropriated to 
123.22  implement a memorandum of understanding 
123.23  with the commissioner that provides the 
123.24  necessary assurance of compliance prior 
123.25  to any expenditure of funds.  The 
123.26  commissioner shall receipt TANF funds 
123.27  appropriated to other state agencies 
123.28  and coordinate all related interagency 
123.29  accounting transactions necessary to 
123.30  implement these appropriations.  
123.31  Unexpended TANF funds appropriated to 
123.32  any state, local, or nonprofit entity 
123.33  cancel at the end of the state fiscal 
123.34  year unless appropriation language 
123.35  permits otherwise. 
123.36  [TANF FUNDS TRANSFERRED TO OTHER 
123.37  FEDERAL GRANTS.] The commissioner must 
123.38  authorize transfers from TANF to other 
123.39  federal block grants so that funds are 
123.40  available to meet the annual 
123.41  expenditure needs as appropriated.  
123.42  Transfers may be authorized prior to 
123.43  the expenditure year with the agreement 
123.44  of the receiving entity.  Transferred 
123.45  funds must be expended in the year for 
123.46  which the funds were appropriated 
123.47  unless appropriation language permits 
123.48  otherwise.  In accelerating transfer 
123.49  authorizations, the commissioner must 
123.50  aim to preserve the future potential 
123.51  transfer capacity from TANF to other 
123.52  block grants. 
123.53  [TANF MAINTENANCE OF EFFORT.] (a) In 
123.54  order to meet the basic maintenance of 
123.55  effort (MOE) requirements of the TANF 
123.56  block grant specified under Code of 
123.57  Federal Regulations, title 45, section 
123.58  263.1, the commissioner may only report 
123.59  nonfederal money expended for allowable 
123.60  activities listed in the following 
123.61  clauses as TANF MOE expenditures: 
123.62  (1) MFIP cash and food assistance 
123.63  benefits under Minnesota Statutes, 
123.64  chapter 256J; 
123.65  (2) the child care assistance programs 
123.66  under Minnesota Statutes, sections 
124.1   119B.03 and 119B.05, and county child 
124.2   care administrative costs under 
124.3   Minnesota Statutes, section 119B.15; 
124.4   (3) state and county MFIP 
124.5   administrative costs under Minnesota 
124.6   Statutes, chapters 256J and 256K; 
124.7   (4) state, county, and tribal MFIP 
124.8   employment services under Minnesota 
124.9   Statutes, chapters 256J and 256K; and 
124.10  (5) expenditures made on behalf of 
124.11  noncitizen MFIP recipients who qualify 
124.12  for the medical assistance without 
124.13  federal financial participation program 
124.14  under Minnesota Statutes, section 
124.15  256B.06, subdivision 4, paragraphs (d), 
124.16  (e), and (j). 
124.17  (b) The commissioner shall ensure that 
124.18  sufficient qualified nonfederal 
124.19  expenditures are made each year to meet 
124.20  the state's TANF MOE requirements.  For 
124.21  the activities listed in paragraph (a), 
124.22  clauses (2) to (5), the commissioner 
124.23  may only report expenditures that are 
124.24  excluded from the definition of 
124.25  assistance under Code of Federal 
124.26  Regulations, title 45, section 260.31. 
124.27  (c) By August 31 of each year, the 
124.28  commissioner shall make a preliminary 
124.29  calculation to determine the likelihood 
124.30  that the state will meet its annual 
124.31  federal work participation requirement 
124.32  under Code of Federal Regulations, 
124.33  title 45, sections 261.21 and 261.23, 
124.34  after adjustment for any caseload 
124.35  reduction credit under Code of Federal 
124.36  Regulations, title 45, section 261.41.  
124.37  If the commissioner determines that the 
124.38  state will meet its federal work 
124.39  participation rate for the federal 
124.40  fiscal year ending that September, the 
124.41  commissioner may reduce the expenditure 
124.42  under paragraph (a), clause (1), to the 
124.43  extent allowed under Code of Federal 
124.44  Regulations, title 45, section 
124.45  263.1(a)(2). 
124.46  (d) For fiscal years beginning with 
124.47  state fiscal year 2003, the 
124.48  commissioner shall ensure that the 
124.49  maintenance of effort used by the 
124.50  commissioner of finance for the 
124.51  February and November forecasts 
124.52  required under Minnesota Statutes, 
124.53  section 16A.103, contains expenditures 
124.54  under paragraph (a), clause (1), equal 
124.55  to at least 25 percent of the total 
124.56  required under Code of Federal 
124.57  Regulations, title 45, section 263.1. 
124.58  (e) If nonfederal expenditures for the 
124.59  programs and purposes listed in 
124.60  paragraph (a) are insufficient to meet 
124.61  the state's TANF MOE requirements, the 
124.62  commissioner shall recommend additional 
124.63  allowable sources of nonfederal 
124.64  expenditures to the legislature, if the 
125.1   legislature is or will be in session to 
125.2   take action to specify additional 
125.3   sources of nonfederal expenditures for 
125.4   TANF MOE before a federal penalty is 
125.5   imposed.  The commissioner shall 
125.6   otherwise provide notice to the 
125.7   legislative commission on planning and 
125.8   fiscal policy under paragraph (g). 
125.9   (f) If the commissioner uses authority 
125.10  granted under Laws 1999, chapter 245, 
125.11  article 1, section 10, or similar 
125.12  authority granted by a subsequent 
125.13  legislature, to meet the state's TANF 
125.14  MOE requirements in a reporting period, 
125.15  the commissioner shall inform the 
125.16  chairs of the appropriate legislative 
125.17  committees about all transfers made 
125.18  under that authority for this purpose.  
125.19  (g) If the commissioner determines that 
125.20  nonfederal expenditures for the 
125.21  programs under paragraph (a), are 
125.22  insufficient to meet TANF MOE 
125.23  expenditure requirements, and if the 
125.24  legislature is not or will not be in 
125.25  session to take timely action to avoid 
125.26  a federal penalty, the commissioner may 
125.27  report nonfederal expenditures from 
125.28  other allowable sources as TANF MOE 
125.29  expenditures after the requirements of 
125.30  this paragraph are met.  The 
125.31  commissioner may report nonfederal 
125.32  expenditures in addition to those 
125.33  specified under paragraph (a) as 
125.34  nonfederal TANF MOE expenditures, but 
125.35  only ten days after the commissioner of 
125.36  finance has first submitted the 
125.37  commissioner's recommendations for 
125.38  additional allowable sources of 
125.39  nonfederal TANF MOE expenditures to the 
125.40  members of the legislative commission 
125.41  on planning and fiscal policy for their 
125.42  review. 
125.43  (h) The commissioner of finance shall 
125.44  not incorporate any changes in federal 
125.45  TANF expenditures or nonfederal 
125.46  expenditures for TANF MOE that may 
125.47  result from reporting additional 
125.48  allowable sources of nonfederal TANF 
125.49  MOE expenditures under the interim 
125.50  procedures in paragraph (g) into the 
125.51  February or November forecasts required 
125.52  under Minnesota Statutes, section 
125.53  16A.103, unless the commissioner of 
125.54  finance has approved the additional 
125.55  sources of expenditures under paragraph 
125.56  (g). 
125.57  (i) The provisions of Minnesota 
125.58  Statutes, section 256.011, subdivision 
125.59  3, which require that federal grants or 
125.60  aids secured or obtained under that 
125.61  subdivision be used to reduce any 
125.62  direct appropriations provided by law, 
125.63  do not apply if the grants or aids are 
125.64  federal TANF funds. 
125.65  (j) Notwithstanding section 13 of this 
125.66  article, paragraphs (a) to (j) expire 
126.1   June 30, 2005. 
126.2   Subd. 2.  Agency Management 
126.3   General              29,304,000    30,341,000
126.4   State Government
126.5   Special Revenue         403,000       415,000
126.6   Health Care 
126.7   Access                3,631,000     3,673,000
126.8   Federal TANF            165,000       165,000
126.9   The amounts that may be spent from the 
126.10  appropriation for each purpose are as 
126.11  follows: 
126.12  (a) Financial Operations 
126.13  General               6,872,000     7,041,000
126.14  Health Care
126.15  Access                  815,000       828,000
126.16  Federal TANF            165,000       165,000
126.17  (b) Legal & Regulation Operations 
126.18  General               6,572,000     6,757,000
126.19  State Government
126.20  Special Revenue         403,000       415,000
126.21  Health Care
126.22  Access                  239,000       244,000
126.23  (c) Management Operations 
126.24  General              15,860,000    16,543,000
126.25  Health Care
126.26  Access                2,577,000     2,601,000
126.27  Subd. 3.  Administrative Reimbursement/
126.28  Passthrough 
126.29  Federal TANF         65,565,000    56,992,000 
126.30  Subd. 4.  Children's Services Grants 
126.31  General              56,608,000    57,121,000
126.32  Federal TANF          1,640,000     1,640,000
126.33  [ADOPTION ASSISTANCE INCENTIVE GRANTS.] 
126.34  Federal funds available during the 
126.35  biennium ending June 30, 2003, for 
126.36  adoption incentive grants are 
126.37  appropriated to the commissioner for 
126.38  these purposes. 
126.39  Subd. 5.  Children's Services Management
126.40  General               3,770,000     3,849,000
126.41  Subd. 6.  Basic Health Care Grants
126.42                Summary by Fund
126.43  General           1,112,028,000 1,300,537,000
127.1   Health Care
127.2   Access              189,217,000   244,838,000
127.3   The amounts that may be spent from this 
127.4   appropriation for each purpose are as 
127.5   follows: 
127.6   (a) MinnesotaCare Grants  
127.7   Health Care
127.8   Access              188,467,000   244,088,000
127.9   [MINNESOTACARE FEDERAL RECEIPTS.] 
127.10  Receipts received as a result of 
127.11  federal participation pertaining to 
127.12  administrative costs of the Minnesota 
127.13  health care reform waiver shall be 
127.14  deposited as nondedicated revenue in 
127.15  the health care access fund.  Receipts 
127.16  received as a result of federal 
127.17  participation pertaining to grants 
127.18  shall be deposited in the federal fund 
127.19  and shall offset health care access 
127.20  funds for payments to providers. 
127.21  [MINNESOTACARE FUNDING.] The 
127.22  commissioner may expend money 
127.23  appropriated from the health care 
127.24  access fund for MinnesotaCare in either 
127.25  fiscal year of the biennium. 
127.26  (b) MA Basic Health Care Grants -
127.27  Families and Children
127.28  General             434,077,000   516,864,000
127.29  (c) MA Basic Health Care Grants - 
127.30  Elderly and Disabled
127.31  General             508,028,000   591,011,000
127.32  (d) General Assistance Medical Care
127.33  General             154,768,000   174,220,000
127.34  (e) Health Care Grants - Other Assistance  
127.35  General              15,155,000    18,442,000
127.36  Health Care Access      750,000       750,000
127.37  Subd. 7.  Basic Health Care Management
127.38  General              20,825,000    21,201,000
127.39  Health Care
127.40  Access               13,876,000    14,179,000
127.41  The amounts that may be spent from this 
127.42  appropriation for each purpose are as 
127.43  follows: 
127.44  (a) Health Care Policy Administration
127.45  General               2,820,000     2,860,000
127.46  Health Care 
127.47  Access                  578,000       595,000
127.48  (b) Health Care Operations
127.49  General              18,005,000    18,341,000
128.1   Health Care
128.2   Access               13,298,000    13,584,000
128.3   [PREPAID MEDICAL PROGRAMS.] The 
128.4   nonfederal share of the prepaid medical 
128.5   assistance program fund, which has been 
128.6   appropriated to fund county managed 
128.7   care advocacy and enrollment operating 
128.8   costs, shall be disbursed as grants 
128.9   using either a reimbursement or block 
128.10  grant mechanism and may also be 
128.11  transferred between grants and nongrant 
128.12  administration costs with approval of 
128.13  the commissioner of finance. 
128.14  Subd. 8.  State-Operated Services
128.15  General             214,887,000   215,930,000
128.16  [MITIGATION RELATED TO STATE-OPERATED 
128.17  SERVICES RESTRUCTURING.] Money 
128.18  appropriated to finance mitigation 
128.19  expenses related to restructuring 
128.20  state-operated services programs and 
128.21  administrative services may be 
128.22  transferred between fiscal years within 
128.23  the biennium. 
128.24  [STATE-OPERATED SERVICES CHEMICAL 
128.25  DEPENDENCY PROGRAMS.] When the 
128.26  operations of the state-operated 
128.27  services chemical dependency fund 
128.28  created in Minnesota Statutes, section 
128.29  246.18, subdivision 2, are impeded by 
128.30  projected cash deficiencies resulting 
128.31  from delays in the receipt of grants, 
128.32  dedicated income, or other similar 
128.33  receivables, and when the deficiencies 
128.34  would be corrected within the budget 
128.35  period involved, the commissioner of 
128.36  finance may transfer general fund cash 
128.37  reserves into this account as necessary 
128.38  to meet cash demands.  The cash flow 
128.39  transfers must be returned to the 
128.40  general fund in the fiscal year that 
128.41  the transfer was made.  Any interest 
128.42  earned on general fund cash flow 
128.43  transfers accrues to the general fund 
128.44  and not the state-operated services 
128.45  chemical dependency fund. 
128.46  [STATE-OPERATED SERVICES 
128.47  RESTRUCTURING.] For purposes of 
128.48  restructuring state-operated services, 
128.49  any state-operated services employee 
128.50  whose position is to be eliminated 
128.51  shall be afforded the options provided 
128.52  in applicable collective bargaining 
128.53  agreements.  All salary and mitigation 
128.54  allocations from fiscal year 2002 shall 
128.55  be carried forward into fiscal year 
128.56  2003.  Provided there is no conflict 
128.57  with any collective bargaining 
128.58  agreement, any state-operated services 
128.59  position reduction must only be 
128.60  accomplished through mitigation, 
128.61  attrition, transfer, and other measures 
128.62  as provided in state or applicable 
128.63  collective bargaining agreements and in 
128.64  Minnesota Statutes, section 252.50, 
128.65  subdivision 11, and not through layoff. 
129.1   [REPAIRS AND BETTERMENTS.] The 
129.2   commissioner may transfer unencumbered 
129.3   appropriation balances between fiscal 
129.4   years for the state residential 
129.5   facilities repairs and betterments 
129.6   account and special equipment. 
129.7   Subd. 9.  Continuing Care Grants 
129.8   General           1,346,056,000 1,470,731,000
129.9   Lottery Cash Flow     1,158,000     1,158,000
129.10  The amounts that may be spent from this 
129.11  appropriation for each purpose are as 
129.12  follows: 
129.13  (a) Community Social Services
129.14  Block Grants
129.15      49,354,000     50,338,000 
129.16  [CSSA TRADITIONAL APPROPRIATION.] 
129.17  Notwithstanding Minnesota Statutes, 
129.18  section 256E.06, subdivisions 1 and 2, 
129.19  the appropriations available under that 
129.20  section in fiscal years 2002 and 2003 
129.21  must be distributed to each county 
129.22  proportionately to the aid received by 
129.23  the county in calendar year 2000.  
129.24  (b) Aging Adult Service Grants
129.25       7,654,000      7,486,000 
129.26  (c) Deaf and Hard-of-Hearing 
129.27  Services Grants
129.28       1,823,000      1,725,000
129.29  (d) Mental Health Grants 
129.30  General              49,864,000    51,325,000
129.31  Lottery Cash Flow     1,158,000     1,158,000
129.32  (e) Community Support Grants
129.33      12,698,000     12,920,000 
129.34  (f) Medical Assistance Long-Term 
129.35  Care Waivers and Home Care
129.36     450,301,000    526,839,000 
129.37  [NURSING FACILITY OPERATED BY THE RED 
129.38  LAKE BAND OF CHIPPEWA INDIANS.] (1) The 
129.39  medical assistance payment rates for 
129.40  the 47-bed nursing facility operated by 
129.41  the Red Lake Band of Chippewa Indians 
129.42  must be calculated according to 
129.43  allowable reimbursement costs under the 
129.44  medical assistance program, as 
129.45  specified in Minnesota Statutes, 
129.46  section 246.50, and are subject to the 
129.47  facility-specific Medicare upper limits.
129.48  (2) In addition, the commissioner shall 
129.49  make available rate adjustments for the 
129.50  biennium beginning July 1, 2001, on the 
129.51  same basis as the adjustments provided 
130.1   to nursing facilities under Minnesota 
130.2   Statutes, section 256B.431.  The 
130.3   commissioner must use the facility's 
130.4   final 2000 and 2001 Medicare cost 
130.5   reports to calculate the adjustments.  
130.6   This rate increase shall become part of 
130.7   the facility's base rate for future 
130.8   rate years. 
130.9   (g) Medical Assistance Long-Term 
130.10  Care Facilities
130.11     584,090,000    617,849,000
130.12  (h) Alternative Care Grants  
130.13  General              63,707,000    65,467,000
130.14  [ALTERNATIVE CARE TRANSFER.] Any money 
130.15  allocated to the alternative care 
130.16  program that is not spent for the 
130.17  purposes indicated does not cancel but 
130.18  shall be transferred to the medical 
130.19  assistance account. 
130.20  [ALTERNATIVE CARE APPROPRIATION.] The 
130.21  commissioner may expend the money 
130.22  appropriated for the alternative care 
130.23  program for that purpose in either year 
130.24  of the biennium. 
130.25  (i) Group Residential Housing
130.26  General              77,783,000    84,851,000
130.27  (j) Chemical Dependency
130.28  Entitlement Grants
130.29  General              42,454,000    45,603,000
130.30  (k) Chemical Dependency 
130.31  Nonentitlement Grants
130.32  General               6,328,000     6,328,000
130.33  Subd. 10.  Continuing Care Management
130.34  General              18,537,000    18,916,000
130.35  State Government
130.36  Special Revenue         117,000       119,000
130.37  Lottery Cash Flow       145,000       148,000
130.38  Subd. 11.  Economic Support Grants
130.39  General              98,357,000    97,339,000
130.40  Federal TANF        190,229,000   162,140,000
130.41  The amounts that may be spent from this 
130.42  appropriation for each purpose are as 
130.43  follows: 
130.44  (a) Assistance to Families Grants
130.45  General              34,199,000    33,897,000
130.46  Federal TANF        128,066,000    99,977,000
130.47  (b) Work Grants              
131.1   General              10,281,000    10,281,000
131.2   Federal TANF         60,903,000    60,903,000
131.3   [LOCAL INTERVENTION GRANTS FOR 
131.4   SELF-SUFFICIENCY CARRYFORWARD.] 
131.5   Unexpended funds appropriated for local 
131.6   intervention grants under Minnesota 
131.7   Statutes, section 256J.625, for fiscal 
131.8   year 2002 do not cancel but are 
131.9   available to the commissioner for these 
131.10  purposes in fiscal year 2003. 
131.11  (c) Economic Support Grants -      
131.12  Other Assistance
131.13  General               2,682,000     1,931,000
131.14  Federal TANF          1,000,000     1,000,000
131.15  (d) Child Support Enforcement
131.16  General               4,189,000     4,189,000
131.17  Federal TANF            260,000       260,000
131.18  [CHILD SUPPORT PAYMENT CENTER.] 
131.19  Payments to the commissioner from other 
131.20  governmental units, private 
131.21  enterprises, and individuals for 
131.22  services performed by the child support 
131.23  payment center must be deposited in the 
131.24  state systems account authorized under 
131.25  Minnesota Statutes, section 256.014.  
131.26  These payments are appropriated to the 
131.27  commissioner for the operation of the 
131.28  child support payment center or system, 
131.29  according to Minnesota Statutes, 
131.30  section 256.014. 
131.31  (e) General Assistance
131.32  General              17,156,000    15,700,000
131.33  [GENERAL ASSISTANCE STANDARD.] The 
131.34  commissioner shall set the monthly 
131.35  standard of assistance for general 
131.36  assistance units consisting of an adult 
131.37  recipient who is childless and 
131.38  unmarried or living apart from his or 
131.39  her parents or a legal guardian at 
131.40  $203.  The commissioner may reduce this 
131.41  amount in accordance with Laws 1997, 
131.42  chapter 85, article 3, section 54. 
131.43  (f) Minnesota Supplemental Aid
131.44  General              29,600,000    31,091,000
131.45  (g) Refugee Services         
131.46  General                 250,000       250,000
131.47  Subd. 12.  Economic Support  
131.48  Management
131.49  General              36,769,000    37,391,000
131.50  Health Care
131.51  Access                1,333,000     1,349,000
132.1   Federal TANF            743,000       743,000
132.2   The amounts that may be spent from this 
132.3   appropriation for each purpose are as 
132.4   follows: 
132.5   (a) Economic Support Policy  
132.6   Administration
132.7   General               6,513,000     6,647,000
132.8   Federal TANF            743,000       743,000
132.9   [FOOD STAMP ADMINISTRATIVE 
132.10  REIMBURSEMENT.] The commissioner shall 
132.11  reduce quarterly food stamp 
132.12  administrative reimbursement to 
132.13  counties in fiscal years 2002 and 2003 
132.14  by the amount that the United States 
132.15  Department of Health and Human Services 
132.16  determines to be the county random 
132.17  moment study share of the food stamp 
132.18  adjustment under Public Law Number 
132.19  105-185.  The reductions shall be 
132.20  allocated to each county in proportion 
132.21  to each county's contribution, if any, 
132.22  to the amount of the adjustment.  Any 
132.23  adjustment to medical assistance 
132.24  administrative reimbursement that is 
132.25  based on the United States Department 
132.26  of Health and Human Services' 
132.27  determinations under Public Law Number 
132.28  105-185 shall be distributed to 
132.29  counties in the same manner.  
132.30  (b) Economic Support Operations 
132.31  General              30,256,000    30,744,000
132.32  Health Care 
132.33  Access                1,333,000     1,349,000
132.34  [SPENDING AUTHORITY FOR FOOD STAMP 
132.35  ENHANCED FUNDING.] In the event that 
132.36  Minnesota qualifies for United States 
132.37  Department of Agriculture Food and 
132.38  Nutrition Services Food Stamp Program 
132.39  enhanced funding beginning in federal 
132.40  fiscal year 1998, the money is 
132.41  appropriated to the commissioner for 
132.42  the purposes of the program.  The 
132.43  commissioner may retain 25 percent of 
132.44  the enhanced funding, with the 
132.45  remaining 75 percent divided among the 
132.46  counties according to a formula that 
132.47  takes into account each county's impact 
132.48  on the statewide food stamp error rate. 
132.49  Sec. 3.  COMMISSIONER OF HEALTH 
132.50  Subdivision 1.  Total 
132.51  Appropriation                        101,248,000    102,862,000
132.52                Summary by Fund
132.53  General              62,995,000    63,708,000 
132.54  State Government 
132.55  Special Revenue      24,346,000    25,165,000 
132.56  Health Care 
133.1   Access                6,907,000     6,989,000 
133.2   Federal TANF          7,000,000     7,000,000 
133.3   Subd. 2.  Family and 
133.4   Community Health                      51,448,000     51,640,000 
133.5                 Summary by Fund
133.6   General              39,805,000    39,941,000
133.7   State Government 
133.8   Special Revenue         961,000       987,000 
133.9   Health Care 
133.10  Access                3,682,000     3,712,000 
133.11  Federal TANF          7,000,000     7,000,000 
133.12  [WIC TRANSFERS.] The general fund 
133.13  appropriation for the women, infants, 
133.14  and children (WIC) food supplement 
133.15  program is available for either year of 
133.16  the biennium.  Transfers of these funds 
133.17  between fiscal years must be either to 
133.18  maximize federal funds or to minimize 
133.19  fluctuations in the number of program 
133.20  participants. 
133.21  [MINNESOTA CHILDREN WITH SPECIAL HEALTH 
133.22  NEEDS CARRYFORWARD.] General fund 
133.23  appropriations for treatment services 
133.24  in the services for Minnesota children 
133.25  with special health needs program are 
133.26  available for either year of the 
133.27  biennium. 
133.28  Subd. 3.  Access and Quality 
133.29  Improvement                           16,649,000     16,784,000 
133.30                Summary by Fund
133.31  General               5,581,000     5,549,000 
133.32  State Government 
133.33  Special Revenue       7,843,000     7,958,000 
133.34  Health Care 
133.35  Access                3,225,000     3,277,000 
133.36  Subd. 4.  Health Protection           27,646,000     28,521,000 
133.37                Summary by Fund 
133.38  General              12,255,000    12,456,000 
133.39  State Government 
133.40  Special Revenue      15,391,000    16,065,000 
133.41  Subd. 5.  Management and 
133.42  Support Services                       5,505,000      5,917,000 
133.43                Summary by Fund
133.44  General               5,354,000     5,762,000 
133.45  State Government 
133.46  Special Revenue         151,000       155,000 
133.47  Sec. 4.  VETERANS NURSING   
133.48  HOMES BOARD                           28,948,000     30,030,000 
134.1   [VETERANS HOMES SPECIAL REVENUE 
134.2   ACCOUNT.] The general fund 
134.3   appropriations made to the board may be 
134.4   transferred to a veterans homes special 
134.5   revenue account in the special revenue 
134.6   fund in the same manner as other 
134.7   receipts are deposited according to 
134.8   Minnesota Statutes, section 198.34, and 
134.9   are appropriated to the board for the 
134.10  operation of board facilities and 
134.11  programs. 
134.12  [SETTING COST OF CARE.] The cost of 
134.13  care for the domiciliary residents at 
134.14  the Minneapolis veterans home for 
134.15  fiscal year 2002 and fiscal year 2003 
134.16  shall be calculated based on 100 
134.17  percent occupancy. 
134.18  Sec. 5.  HEALTH-RELATED BOARDS 
134.19  Subdivision 1.  Total       
134.20  Appropriation                         10,317,000     10,585,000 
134.21  [STATE GOVERNMENT SPECIAL REVENUE 
134.22  FUND.] The appropriations in this 
134.23  section are from the state government 
134.24  special revenue fund. 
134.25  [NO SPENDING IN EXCESS OF REVENUES.] 
134.26  The commissioner of finance shall not 
134.27  permit the allotment, encumbrance, or 
134.28  expenditure of money appropriated in 
134.29  this section in excess of the 
134.30  anticipated biennial revenues or 
134.31  accumulated surplus revenues from fees 
134.32  collected by the boards.  Neither this 
134.33  provision nor Minnesota Statutes, 
134.34  section 214.06, applies to transfers 
134.35  from the general contingent account. 
134.36  Subd. 2.  Board of Chiropractic 
134.37  Examiners                                372,000        384,000
134.38  Subd. 3.  Board of Dentistry             831,000        855,000
134.39  Subd. 4.  Board of Dietetic
134.40  and Nutrition Practice                    98,000        101,000
134.41  Subd. 5.  Board of Marriage and 
134.42  Family Therapy                           114,000        118,000
134.43  Subd. 6.  Board of Medical  
134.44  Practice                               3,334,000      3,400,000
134.45  Subd. 7.  Board of Nursing             2,490,000      2,555,000
134.46  [HEALTH PROFESSIONAL SERVICES 
134.47  ACTIVITY.] Of these appropriations, 
134.48  $392,000 the first year and $403,000 
134.49  the second year are for the health 
134.50  professional services activity. 
134.51  Subd. 8.  Board of Nursing
134.52  Home Administrators                      192,000        198,000
134.53  Subd. 9.  Board of Optometry              93,000         96,000
134.54  Subd. 10.  Board of Pharmacy           1,172,000      1,207,000
135.1   [ADMINISTRATIVE SERVICES UNIT.] Of this 
135.2   appropriation, $279,000 the first year 
135.3   and $287,000 the second year are for 
135.4   the health boards administrative 
135.5   services unit.  The administrative 
135.6   services unit may receive and expend 
135.7   reimbursements for services performed 
135.8   for other agencies. 
135.9   Subd. 11.  Board of Physical Therapy     191,000        197,000
135.10  Subd. 12.  Board of Podiatry              43,000         45,000
135.11  Subd. 13.  Board of Psychology           550,000        567,000
135.12  Subd. 14.  Board of Social Work          679,000        699,000
135.13  Subd. 15.  Board of Veterinary 
135.14  Medicine                                 158,000        163,000
135.15  Sec. 6.  EMERGENCY MEDICAL
135.16  SERVICES BOARD                         2,502,000      2,539,000 
135.17  Sec. 7.  COUNCIL ON DISABILITY           692,000        714,000
135.18  Sec. 8.  OMBUDSMAN FOR MENTAL 
135.19  HEALTH AND MENTAL RETARDATION          1,419,000      1,462,000
135.20  Sec. 9.  OMBUDSMAN
135.21  FOR FAMILIES                             176,000        181,000
135.22  Sec. 10.  TRANSFERS 
135.23  Subdivision 1.  Grants
135.24  The commissioner of human services, 
135.25  with the approval of the commissioner 
135.26  of finance, and after notification of 
135.27  the chair of the senate health and 
135.28  family security budget division and the 
135.29  chair of the house health and human 
135.30  services finance committee, may 
135.31  transfer unencumbered appropriation 
135.32  balances for the biennium ending June 
135.33  30, 2003, within fiscal years among the 
135.34  MFIP, general assistance, general 
135.35  assistance medical care, medical 
135.36  assistance, Minnesota supplemental aid, 
135.37  and group residential housing programs, 
135.38  and the entitlement portion of the 
135.39  chemical dependency consolidated 
135.40  treatment fund, and between fiscal 
135.41  years of the biennium. 
135.42  Subd. 2.  Administration
135.43  Positions, salary money, and nonsalary 
135.44  administrative money may be transferred 
135.45  within the departments of human 
135.46  services and health and within the 
135.47  programs operated by the veterans 
135.48  nursing homes board as the 
135.49  commissioners and the board consider 
135.50  necessary, with the advance approval of 
135.51  the commissioner of finance.  The 
135.52  commissioner or the board shall inform 
135.53  the chairs of the house health and 
135.54  human services finance committee and 
135.55  the senate health and family security 
135.56  budget division quarterly about 
135.57  transfers made under this provision. 
136.1   Subd. 3.  Prohibited Transfers 
136.2   Grant money shall not be transferred to 
136.3   operations within the departments of 
136.4   human services and health and within 
136.5   the programs operated by the veterans 
136.6   nursing homes board without the 
136.7   approval of the legislature. 
136.8   Sec. 11.  INDIRECT COSTS NOT TO
136.9   FUND PROGRAMS.
136.10  The commissioners of health and of 
136.11  human services shall not use indirect 
136.12  cost allocations to pay for the 
136.13  operational costs of any program for 
136.14  which they are responsible. 
136.15  Sec. 12.  CARRYOVER LIMITATION 
136.16  None of the appropriations in this act 
136.17  which are allowed to be carried forward 
136.18  from fiscal year 2002 to fiscal year 
136.19  2003 shall become part of the base 
136.20  level funding for the 2004-2005 
136.21  biennial budget, unless specifically 
136.22  directed by the legislature. 
136.23  Sec. 13.  SUNSET OF UNCODIFIED LANGUAGE
136.24  All uncodified language contained in 
136.25  this article expires on June 30, 2003, 
136.26  unless a different expiration date is 
136.27  explicit. 
136.28     Sec. 14.  Minnesota Statutes 2000, section 256B.431, is 
136.29  amended by adding a subdivision to read: 
136.30     Subd. 31.  [NURSING FACILITY RATE INCREASES BEGINNING JULY 
136.31  1, 2001, AND JULY 1, 2002.] (a) For the rate years beginning 
136.32  July 1, 2001, and July 1, 2002, the commissioner shall make 
136.33  available to each nursing facility reimbursed under this section 
136.34  or section 256B.434 an adjustment of 3.0 percent to the total 
136.35  operating payment rates in effect on June 30, 2001, and June 30, 
136.36  2002, respectively.  The operating payment rate in effect on 
136.37  June 30, 2001, must include the adjustment in subdivision 2i, 
136.38  paragraph (c).  The adjustment must be used to increase the 
136.39  wages of all employees except management fees, the 
136.40  administrator, and central office staff and to pay associated 
136.41  costs for FICA, the Medicare tax, workers' compensation 
136.42  premiums, and federal and state unemployment insurance. 
136.43     Money received by a facility as a result of the additional 
136.44  rate increase provided under this paragraph must be used only 
136.45  for wage increases implemented on or after July 1, 2001, or July 
137.1   1, 2002, respectively, and must not be used for wage increases 
137.2   implemented prior to those dates. 
137.3      (b) Nursing facilities may apply for the wage-related 
137.4   payment rate adjustment calculated under paragraph (a).  The 
137.5   application must be made to the commissioner and contain a plan 
137.6   by which the nursing facility will distribute the payment rate 
137.7   adjustment to employees of the nursing facility.  For nursing 
137.8   facilities in which the employees are represented by an 
137.9   exclusive bargaining representative, an agreement negotiated and 
137.10  agreed to by the employer and the exclusive bargaining 
137.11  representative constitutes the plan.  A negotiated agreement may 
137.12  constitute the plan only if the agreement is finalized after the 
137.13  date of enactment of all increases for the rate year.  The 
137.14  commissioner shall review the plan to ensure that the 
137.15  wage-related payment rate adjustment per diem is used as 
137.16  provided in paragraph (a).  To be eligible, a facility must 
137.17  submit its plan for the wage distribution by December 31 each 
137.18  year.  If a facility's plan for wage distribution is effective 
137.19  for its employees after July 1 of the year that the funds are 
137.20  available, the payment rate adjustment per diem is effective the 
137.21  same date as its plan. 
137.22     (c) A hospital-attached nursing facility may include costs 
137.23  in their distribution plan for wages and wage-related costs of 
137.24  employees in the organization's shared services departments, 
137.25  provided that: 
137.26     (1) the nursing facility and the hospital share common 
137.27  ownership; and 
137.28     (2) adjustments for hospital services using the 
137.29  diagnostic-related grouping payment rates per admission under 
137.30  medical assistance or Medicare are less than three percent 
137.31  during the 12 months prior to the effective date of this 
137.32  increase. 
137.33     If a hospital-attached facility meets the qualifications in 
137.34  this paragraph, the difference between the rate increase 
137.35  approved for nursing facility services and the rate increase 
137.36  approved for hospital services may be permitted as a 
138.1   distribution in the hospital-attached facility's plan regardless 
138.2   of whether the use of those funds is shown as being attributable 
138.3   to employee hours worked in the nursing facility or employee 
138.4   hours worked in the hospital. 
138.5      For the purposes of this paragraph, a hospital-attached 
138.6   nursing facility is one that meets the definition under 
138.7   subdivision 2j, or, in the case of a facility reimbursed under 
138.8   section 256B.434, met this definition at the time their last 
138.9   payment rate was established under Minnesota Rules, parts 
138.10  9549.0010 to 9549.0080, and this section. 
138.11     (d) A copy of the approved distribution plan must be made 
138.12  available to all employees by giving each employee a copy or by 
138.13  posting it in an area of the nursing facility to which all 
138.14  employees have access.  If an employee does not receive the wage 
138.15  adjustment described in the facility's approved plan and is 
138.16  unable to resolve the problem with the facility's management or 
138.17  through the employee's union representative, the employee may 
138.18  contact the commissioner at an address or telephone number 
138.19  provided by the commissioner and included in the approved plan.  
138.20     (e) Notwithstanding section 256B.48, subdivision 1, clause 
138.21  (a), upon the request of a nursing facility, the commissioner 
138.22  may authorize the facility to raise per diem rates for 
138.23  private-pay residents on July 1 by the amount anticipated to be 
138.24  required upon implementation of the wage-related increase 
138.25  available under this subdivision.  The commissioner shall 
138.26  require any amounts collected under this paragraph to be placed 
138.27  in an escrow account until the medical assistance rate is 
138.28  finalized.  The commissioner shall conduct audits as necessary 
138.29  to ensure that: 
138.30     (1) the amounts collected are retained in escrow until 
138.31  medical assistance rates are increased to reflect the 
138.32  wage-related adjustment; and 
138.33     (2) any amounts collected from private-pay residents in 
138.34  excess of the final medical assistance wage-related rate 
138.35  increase are repaid to the private-pay residents with interest 
138.36  at the rate used by the commissioner of revenue for the late 
139.1   payment of taxes and in effect on the date the distribution plan 
139.2   is approved by the commissioner of human services. 
139.3      (f) For the rate year beginning July 1, 2001, the 
139.4   commissioner shall make available to each nursing facility that 
139.5   is reimbursed under this section or section 256B.434 and had 35 
139.6   or fewer admissions during calendar year 2000 an adjustment of 
139.7   1.0 percent to the total operating payment rates in effect on 
139.8   June 30, 2001. 
139.9   The operating payment rate in effect on June 30, 2001, must 
139.10  include the adjustment in subdivision 2i, paragraph (c). 
139.11     Sec. 15.  Minnesota Statutes 2000, section 256B.434, 
139.12  subdivision 4, is amended to read: 
139.13     Subd. 4.  [ALTERNATE RATES FOR NURSING FACILITIES.] (a) For 
139.14  nursing facilities which have their payment rates determined 
139.15  under this section rather than section 256B.431, the 
139.16  commissioner shall establish a rate under this subdivision.  The 
139.17  nursing facility must enter into a written contract with the 
139.18  commissioner. 
139.19     (b) A nursing facility's case mix payment rate for the 
139.20  first rate year of a facility's contract under this section is 
139.21  the payment rate the facility would have received under section 
139.22  256B.431. 
139.23     (c) A nursing facility's case mix payment rates for the 
139.24  second and subsequent years of a facility's contract under this 
139.25  section are the previous rate year's contract payment rates plus 
139.26  an inflation adjustment.  The index for the inflation adjustment 
139.27  must be based on the change in the Consumer Price Index-All 
139.28  Items (United States City average) (CPI-U) forecasted by Data 
139.29  Resources, Inc., as forecasted in the fourth quarter of the 
139.30  calendar year preceding the rate year.  The inflation adjustment 
139.31  must be based on the 12-month period from the midpoint of the 
139.32  previous rate year to the midpoint of the rate year for which 
139.33  the rate is being determined.  For the rate years beginning on 
139.34  July 1, 1999, and July 1, 2000, July 1, 2001, and July 1, 2002, 
139.35  this paragraph shall apply only to the property-related payment 
139.36  rate.  In determining the amount of the property-related payment 
140.1   rate adjustment under this paragraph, the commissioner shall 
140.2   determine the proportion of the facility's rates that are 
140.3   property-related based on the facility's most recent cost report.
140.4      (d) The commissioner shall develop additional 
140.5   incentive-based payments of up to five percent above the 
140.6   standard contract rate for achieving outcomes specified in each 
140.7   contract.  The specified facility-specific outcomes must be 
140.8   measurable and approved by the commissioner.  The commissioner 
140.9   may establish, for each contract, various levels of achievement 
140.10  within an outcome.  After the outcomes have been specified the 
140.11  commissioner shall assign various levels of payment associated 
140.12  with achieving the outcome.  Any incentive-based payment cancels 
140.13  if there is a termination of the contract.  In establishing the 
140.14  specified outcomes and related criteria the commissioner shall 
140.15  consider the following state policy objectives: 
140.16     (1) improved cost effectiveness and quality of life as 
140.17  measured by improved clinical outcomes; 
140.18     (2) successful diversion or discharge to community 
140.19  alternatives; 
140.20     (3) decreased acute care costs; 
140.21     (4) improved consumer satisfaction; 
140.22     (5) the achievement of quality; or 
140.23     (6) any additional outcomes proposed by a nursing facility 
140.24  that the commissioner finds desirable. 
140.25     Sec. 16.  Minnesota Statutes 2000, section 256B.5012, is 
140.26  amended by adding a subdivision to read: 
140.27     Subd. 4.  [ICF/MR RATE INCREASES BEGINNING JULY 1, 2001, 
140.28  AND JULY 1, 2002.] (a) For the rate years beginning July 1, 
140.29  2001, and July 1, 2002, the commissioner shall make available to 
140.30  each facility reimbursed under this section an adjustment to the 
140.31  total operating payment rate of 3.0 percent to provide an 
140.32  employee wage increase as provided under paragraph (b). 
140.33     (b) The adjustment under this paragraph must be used to 
140.34  increase the wages of all employees except administrative and 
140.35  central office employees and to pay associated costs for FICA, 
140.36  the Medicare tax, workers' compensation premiums, and federal 
141.1   and state unemployment insurance, provided that this increase 
141.2   must be used only for wage increases implemented on or after the 
141.3   first day of the rate year and must not be used for wage 
141.4   increases implemented prior to that date. 
141.5      (c) For each facility, the commissioner shall make 
141.6   available an adjustment using the percentage specified in 
141.7   paragraph (a) multiplied by the total payment rate, excluding 
141.8   the property-related payment rate, in effect on the preceding 
141.9   June 30.  The total payment rate shall include the adjustment 
141.10  provided in section 256B.501, subdivision 12. 
141.11     (d) A facility whose payment rates are governed by closure 
141.12  agreements, receivership agreements, or Minnesota Rules, part 
141.13  9553.0075, is not eligible for an adjustment otherwise granted 
141.14  under this subdivision.  
141.15     (e) A facility may apply for the wage-related payment rate 
141.16  adjustment provided under paragraph (b).  The application must 
141.17  be made to the commissioner and contain a plan by which the 
141.18  facility will distribute the wage-related portion of the payment 
141.19  rate adjustment to employees of the facility.  For facilities in 
141.20  which the employees are represented by an exclusive bargaining 
141.21  representative, an agreement negotiated and agreed to by the 
141.22  employer and the exclusive bargaining representative constitutes 
141.23  the plan.  A negotiated agreement may constitute the plan only 
141.24  if the agreement is finalized after the date of enactment of all 
141.25  rate increases for the rate year.  The commissioner shall review 
141.26  the plan to ensure that the payment rate adjustment per diem is 
141.27  used as provided in this subdivision.  To be eligible, a 
141.28  facility must submit its plan by March 31, 2002, and March 31, 
141.29  2003, respectively.  If a facility's plan is effective for its 
141.30  employees after the first day of the applicable rate year that 
141.31  the funds are available, the payment rate adjustment per diem is 
141.32  effective the same date as its plan. 
141.33     (f) A copy of the approved distribution plan must be made 
141.34  available to all employees by giving each employee a copy or by 
141.35  posting it in an area of the facility to which all employees 
141.36  have access.  If an employee does not receive the wage 
142.1   adjustment described in the facility's approved plan and is 
142.2   unable to resolve the problem with the facility's management or 
142.3   through the employee's union representative, the employee may 
142.4   contact the commissioner at an address or telephone number 
142.5   provided by the commissioner and included in the approved plan. 
142.6      Sec. 17.  [PROVIDER RATE INCREASES.] 
142.7      (a) The commissioner of human services shall increase 
142.8   reimbursement rates by 3.0 percent each year of the biennium for 
142.9   the providers listed in paragraph (b).  The increases are 
142.10  effective for services rendered on or after July 1 of each year. 
142.11     (b) The rate increases described in this section must be 
142.12  provided to: 
142.13     (1) home and community-based waivered services for persons 
142.14  with mental retardation or related conditions under Minnesota 
142.15  Statutes, section 256B.501; 
142.16     (2) home and community-based waivered services for the 
142.17  elderly under Minnesota Statutes, section 256B.0915; 
142.18     (3) waivered services under community alternatives for 
142.19  disabled individuals under Minnesota Statutes, section 256B.49; 
142.20     (4) community alternative care waivered services under 
142.21  Minnesota Statutes, section 256B.49; 
142.22     (5) traumatic brain injury waivered services under 
142.23  Minnesota Statutes, section 256B.49; 
142.24     (6) nursing services and home health services under 
142.25  Minnesota Statutes, section 256B.0625, subdivision 6a; 
142.26     (7) personal care services and nursing supervision of 
142.27  personal care services under Minnesota Statutes, section 
142.28  256B.0625, subdivision 19a; 
142.29     (8) private duty nursing services under Minnesota Statutes, 
142.30  section 256B.0625, subdivision 7; 
142.31     (9) day training and habilitation services for adults with 
142.32  mental retardation or related conditions under Minnesota 
142.33  Statutes, sections 252.40 to 252.46; 
142.34     (10) alternative care services under Minnesota Statutes, 
142.35  section 256B.0913; 
142.36     (11) adult residential program grants under Minnesota 
143.1   Rules, parts 9535.2000 to 9535.3000; 
143.2      (12) adult and family community support grants under 
143.3   Minnesota Rules, parts 9535.1700 to 9535.1760; 
143.4      (13) the group residential housing supplementary service 
143.5   rate under Minnesota Statutes, section 256I.05, subdivision 1a; 
143.6      (14) adult mental health integrated fund grants under 
143.7   Minnesota Statutes, section 245.4661; 
143.8      (15) semi-independent living services under Minnesota 
143.9   Statutes, section 252.275, including SILS funding under county 
143.10  social services grants formerly funded under Minnesota Statutes, 
143.11  chapter 256I; 
143.12     (16) community support services for deaf and 
143.13  hard-of-hearing adults with mental illness who use or wish to 
143.14  use sign language as their primary means of communication; and 
143.15     (17) living skills training programs for persons with 
143.16  intractable epilepsy who need assistance in the transition to 
143.17  independent living. 
143.18     (c) Providers that receive a rate increase under this 
143.19  section shall use the additional revenue to increase wages for 
143.20  all employees other than the administrator and central office 
143.21  staff and to pay associated costs for FICA, the Medicare tax, 
143.22  workers' compensation premiums, and federal and state 
143.23  unemployment insurance.  For public employees, the increase is 
143.24  available and pay rates shall be increased only to the extent 
143.25  that they comply with laws governing public employees collective 
143.26  bargaining.  Money received by a provider for pay increases 
143.27  under this section must be used only for wage increases 
143.28  implemented on or after the first day of the state fiscal year 
143.29  in which the increase is available and must not be used for wage 
143.30  increases implemented prior to that date. 
143.31     (d) A copy of the provider's plan for complying with 
143.32  paragraph (c) must be made available to all employees by giving 
143.33  each employee a copy or by posting it in an area of the 
143.34  provider's operation to which all employees have access.  If an 
143.35  employee does not receive the wage adjustment described in the 
143.36  plan and is unable to resolve the problem with the provider, the 
144.1   employee may contact the employee's union representative.  If 
144.2   the employee is not covered by a collective bargaining 
144.3   agreement, the employee may contact the commissioner at a phone 
144.4   number provided by the commissioner and included in the 
144.5   provider's plan. 
144.6                              ARTICLE 18
144.7                           STATE GOVERNMENT
144.8   Section 1.  [STATE GOVERNMENT APPROPRIATIONS.] 
144.9      The sums shown in the columns marked "APPROPRIATIONS" are 
144.10  appropriated from the general fund, or another fund named, to 
144.11  the agencies and for the purposes specified in this article, to 
144.12  be available for the fiscal years indicated for each purpose.  
144.13  The figures "2001," "2002," and "2003," where used in this 
144.14  article, mean that the appropriation or appropriations listed 
144.15  under them are available for the year ending June 30, 2001, June 
144.16  30, 2002, or June 30, 2003, respectively.  
144.17                          SUMMARY BY FUND 
144.18                                                      BIENNIAL
144.19                            2002          2003          TOTAL
144.20  General              $316,318,000   $323,107,000   $639,425,000
144.21  State 
144.22  Government 
144.23  Special Revenue        24,231,000     24,273,000     48,504,000
144.24  For 2001 - $3,988,000
144.25  Health Care Access      1,881,000      1,914,000      3,795,000
144.26  Environmental             249,000        255,000        504,000
144.27  Solid Waste   
144.28  Cleanup                   677,000        684,000      1,361,000
144.29  Highway User
144.30  Tax Distribution        2,191,000      2,237,000      4,428,000
144.31  Workers'
144.32  Compensation            7,313,000      7,505,000     14,818,000
144.33   TOTAL               $352,860,000   $359,975,000   $712,835,000
144.34                                             APPROPRIATIONS 
144.35                                         Available for the Year 
144.36                                             Ending June 30 
144.37                                            2002         2003 
144.38  Sec. 2.  LEGISLATURE 
144.39  Subdivision 1.  Total  
144.40  Appropriation                         64,082,000     65,326,000
144.41                Summary by Fund
145.1   General              63,932,000    65,176,000
145.2   Health Care Access      150,000       150,000
145.3   The amounts that may be spent from this 
145.4   appropriation for each program are 
145.5   specified in the following subdivisions.
145.6   Subd. 2.  Senate                      20,933,000     21,357,000
145.7   Subd. 3.  House of Representatives    28,146,000     28,638,000
145.8   Subd. 4.  Legislative 
145.9   Coordinating Commission               15,003,000     15,331,000
145.10                Summary by Fund
145.11  General              14,853,000    15,181,000
145.12  Health Care Access      150,000       150,000
145.13  $6,420,000 the first year and 
145.14  $6,535,000 the second year are for the 
145.15  office of the revisor of statutes. 
145.16  $1,242,000 the first year and 
145.17  $1,273,000 the second year are for the 
145.18  legislative reference library. 
145.19  $5,275,000 the first year and 
145.20  $5,429,000 the second year are for the 
145.21  office of the legislative auditor and 
145.22  the legislative audit commission. 
145.23  The compensation council recommendation 
145.24  of 2001 may not take effect unless 
145.25  approved by law. 
145.26  Sec. 3.  GOVERNOR AND 
145.27  LIEUTENANT GOVERNOR                    4,262,000      4,369,000
145.28  This appropriation is to fund the 
145.29  offices of the governor and lieutenant 
145.30  governor.  
145.31  $19,000 the first year and $19,000 the 
145.32  second year are for necessary expenses 
145.33  in the normal performance of the 
145.34  governor's and lieutenant governor's 
145.35  duties for which no other reimbursement 
145.36  is provided. 
145.37  By September 1 of each year, the 
145.38  commissioner of finance shall report to 
145.39  the chairs of the senate governmental 
145.40  operations budget division and the 
145.41  house state government finance division 
145.42  any personnel costs incurred by the 
145.43  office of the governor and lieutenant 
145.44  governor that were supported by 
145.45  appropriations to other agencies during 
145.46  the previous fiscal year.  The office 
145.47  of the governor shall inform the chairs 
145.48  of the divisions before initiating any 
145.49  interagency agreements. 
145.50  The funds appropriated to the 
145.51  governor's office for maintenance of 
145.52  the governor's residence are 
145.53  transferred to the department of 
145.54  administration for the same purpose. 
146.1   Sec. 4.  STATE AUDITOR                 9,569,000      9,825,000
146.2   Sec. 5.  STATE TREASURER               2,351,000      2,331,000
146.3   $1,093,000 the first year and 
146.4   $1,125,000 the second year are for the 
146.5   treasurer to pay for banking services 
146.6   by fees rather than by compensating 
146.7   balances.  
146.8   Sec. 6.  ATTORNEY GENERAL             28,103,000     28,726,000
146.9                 Summary by Fund
146.10  General              25,650,000    26,221,000
146.11  State Government
146.12  Special Revenue       1,834,000     1,876,000
146.13  Environmental           142,000       145,000 
146.14  Solid Waste
146.15  Cleanup                 477,000       484,000  
146.16  Sec. 7.  SECRETARY OF STATE            6,104,000      6,393,000
146.17  Sec. 8.  CAMPAIGN FINANCE AND 
146.18  PUBLIC DISCLOSURE BOARD                  599,000        622,000
146.19  Sec. 9.  INVESTMENT BOARD              2,429,000      2,483,000
146.20  Sec. 10.  ADMINISTRATIVE HEARINGS      7,182,000      7,375,000
146.21  This appropriation is from the workers' 
146.22  compensation fund. 
146.23  Sec. 11.  OFFICE OF STRATEGIC 
146.24  AND LONG-RANGE PLANNING                4,903,000      5,041,000
146.25  Sec. 12.  ADMINISTRATION 
146.26  Subdivision 1.  Total 
146.27  Appropriation                         48,917,000     49,558,000
146.28  For 2001 - $3,998,000
146.29                Summary by Fund
146.30  General              26,920,000    27,561,000
146.31  State Government 
146.32  Special Revenue      21,997,000    21,997,000
146.33  For 2001 - $3,998,000
146.34  The amounts that may be spent from this 
146.35  appropriation for each program are 
146.36  specified in the following subdivisions.
146.37  Subd. 2.  Operations Management 
146.38       4,121,000      4,234,000
146.39  Subd. 3.  Office of Technology
146.40       2,779,000      2,830,000
146.41  $468,000 the first year and $468,000 
146.42  the second year are for ongoing costs 
146.43  of the North Star II project under 
146.44  Minnesota Statutes, section 16E.07. 
147.1   Subd. 4.  Intertechnologies Group
147.2       22,856,000     22,856,000
147.3                 Summary by Fund
147.4   General                 859,000       859,000
147.5   State Government 
147.6   Special Revenue      21,997,000    21,997,000
147.7   For 2001 - $3,998,000 
147.8   $3,988,000 in fiscal year 2001 and 
147.9   $2,862,000 in fiscal year 2002 are from 
147.10  the 911 fund under Minnesota Statutes, 
147.11  section 403.11, for increased costs 
147.12  associated with wireless-enhanced 911 
147.13  and for reimbursements to providers for 
147.14  prior period services not yet certified 
147.15  by the public utilities commission. 
147.16  The appropriation from the special 
147.17  revenue fund is for recurring costs of 
147.18  911 emergency telephone service. 
147.19  Subd. 5.  Facilities Management
147.20       11,670,000    12,035,000
147.21  $7,560,000 the first year and 
147.22  $7,820,000 the second year are for 
147.23  office space costs of the legislature 
147.24  and veterans organizations, for 
147.25  ceremonial space, and for statutorily 
147.26  free space. 
147.27  Subd. 6.  Management Services
147.28       4,159,000      4,271,000 
147.29  $200,000 the first year and $200,000 
147.30  the second year are for the information 
147.31  policy training program under Minnesota 
147.32  Statutes, section 13.073. 
147.33  $196,000 the first year and $196,000 
147.34  the second year are for the office of 
147.35  the state archaeologist. 
147.36  $74,000 the first year and $74,000 the 
147.37  second year are for the developmental 
147.38  disabilities council. 
147.39  Subd. 7.  Fiscal Agent
147.40           2,000          2,000
147.41  $2,000 the first year and $2,000 the 
147.42  second year are for the state 
147.43  employees' band. 
147.44  Subd. 8.  Public Broadcasting 
147.45       3,330,000      3,330,000
147.46  $1,450,000 the first year and 
147.47  $1,450,000 the second year are for 
147.48  matching grants for public television.  
147.49  $600,000 the first year and $600,000 
148.1   the second year are for public 
148.2   television equipment grants.  
148.3   Equipment or digital conversion grant 
148.4   allocations shall be made after 
148.5   considering the recommendations of the 
148.6   Minnesota public television association.
148.7   $441,000 the first year and $441,000 
148.8   the second year are for grants for 
148.9   contracts with the senate and house of 
148.10  representatives for public information 
148.11  television, Internet, intranet, and 
148.12  other transmission of legislative 
148.13  activities.  At least one-half must go 
148.14  for programming to be broadcast in 
148.15  rural Minnesota. 
148.16  $25,000 the first year and $25,000 the 
148.17  second year are for grants to the Twin 
148.18  Cities regional cable channel. 
148.19  $320,000 the first year and $320,000 
148.20  the second year are for community 
148.21  service grants to public educational 
148.22  radio stations, which must be allocated 
148.23  after considering the recommendations 
148.24  of the association of Minnesota public 
148.25  educational radio stations under 
148.26  Minnesota Statutes, section 129D.14.  
148.27  $494,000 the first year and $494,000 
148.28  the second year are for equipment 
148.29  grants to public radio stations.  These 
148.30  grants must be allocated after 
148.31  considering the recommendations of the 
148.32  association of Minnesota public 
148.33  educational radio stations and 
148.34  Minnesota Public Radio, Inc. 
148.35  If an appropriation for either year for 
148.36  grants to public television or radio 
148.37  stations is not sufficient, the 
148.38  appropriation for the other year is 
148.39  available for it. 
148.40  Sec. 13.  CAPITOL AREA ARCHITECTURAL 
148.41  AND PLANNING BOARD                       315,000        323,000
148.42  Sec. 14.  FINANCE 
148.43  Subdivision 1.  Total 
148.44  Appropriation                         18,300,000     18,689,000
148.45  The amounts that may be spent from this 
148.46  appropriation for each program are 
148.47  specified in the following subdivisions.
148.48  Subd. 2.  State Financial Management 
148.49       8,493,000      8,598,000
148.50  Subd. 3.  Information and 
148.51  Management Services 
148.52       9,807,000     10,091,000
148.53  Sec. 15.  EMPLOYEE RELATIONS 
148.54  Subdivision 1.  Total 
148.55  Appropriation                         10,596,000     10,821,000
149.1   The amounts that may be spent from this 
149.2   appropriation for each program are 
149.3   specified in the following subdivisions.
149.4   Subd. 2.  Employee Insurance
149.5        2,446,000      2,446,000
149.6   Subd. 3.  Human Resources Management
149.7        8,150,000      8,375,000
149.8   $50,000 the first year and $50,000 the 
149.9   second year are for a grant to the 
149.10  government training service. 
149.11  Sec. 16.  REVENUE 
149.12  Subdivision 1.  Total  
149.13  Appropriation                         91,192,000     93,200,000
149.14                Summary by Fund
149.15  General              86,963,000    88,889,000
149.16  Health Care Access    1,731,000     1,764,000
149.17  Highway User 
149.18  Tax Distribution      2,191,000     2,237,000
149.19  Environmental           107,000       110,000
149.20  Solid Waste 
149.21  Cleanup                 200,000       200,000 
149.22  Subd. 2.  Tax System Management
149.23      90,899,000     86,228,000
149.24                Summary by Fund
149.25  General              76,039,000    77,965,000
149.26  Health Care Access    1,678,000     1,711,000
149.27  Highway User 
149.28  Tax Distribution      2,191,000     2,237,000
149.29  Environmental           107,000       110,000
149.30  Solid Waste
149.31  Cleanup                 200,000       200,000
149.32  Subd. 3.  Accounts Receivable Management
149.33      10,977,000     10,977,000
149.34                Summary by Fund
149.35  General              10,924,000    10,924,000
149.36  Health Care Access       53,000        53,000
149.37  Sec. 17.  MILITARY AFFAIRS  
149.38  Subdivision 1.  Total 
149.39  Appropriation                         11,243,000     11,418,000
149.40  The amounts that may be spent from this 
149.41  appropriation for each program are 
150.1   specified in the following subdivisions.
150.2   Subd. 2.  Maintenance of Training 
150.3   Facilities 
150.4         7,038,000     7,141,000
150.5   Subd. 3.  General Support
150.6         1,774,000     1,845,000
150.7   Subd. 4.  Enlistment Incentives
150.8        2,356,000      2,357,000 
150.9   If appropriations for either year of 
150.10  the biennium are insufficient, the 
150.11  appropriation from the other year is 
150.12  available.  The appropriations for 
150.13  enlistment incentives are available 
150.14  until expended. 
150.15  Subd. 5.  Emergency Services 
150.16          75,000         75,000
150.17  These appropriations are for expenses 
150.18  of military forces ordered to active 
150.19  duty under Minnesota Statutes, chapter 
150.20  192.  If the appropriation for either 
150.21  year is insufficient, the appropriation 
150.22  for the other year is available for it. 
150.23  Sec. 18.  VETERANS AFFAIRS             4,419,000      4,484,000
150.24  Sec. 19.  VETERANS OF FOREIGN 
150.25  WARS                                      41,000         41,000
150.26  For carrying out the provisions of Laws 
150.27  1945, chapter 455. 
150.28  Sec. 20.  MILITARY ORDER OF 
150.29  THE PURPLE HEART                          20,000         20,000
150.30  Sec. 21.  DISABLED AMERICAN VETERANS      13,000         13,000
150.31  For carrying out the provisions of Laws 
150.32  1941, chapter 425. 
150.33  Sec. 22.  GAMBLING CONTROL             2,305,000      2,370,000
150.34  Sec. 23.  RACING COMMISSION              414,000        426,000
150.35  Sec. 24.  AMATEUR SPORTS COMMISSION      657,000        677,000
150.36  Sec. 25.  BOARD OF THE ARTS     
150.37  Subdivision 1.  Total         
150.38  Appropriation                         13,118,000     13,142,000
150.39  Any unencumbered balance remaining in 
150.40  this section the first year does not 
150.41  cancel but is available for the second 
150.42  year of the biennium. 
150.43  Subd. 2.  Operations and Services 
150.44       1,043,000      1,067,000 
150.45  Subd. 3.  Grants Program 
151.1        8,540,000      8,540,000 
151.2   Subd. 4.  Regional Arts Councils 
151.3        3,535,000      3,535,000 
151.4   Sec. 26.  MINNESOTA HUMANITIES 
151.5   COMMISSION                               922,000        936,000
151.6   Any unencumbered balance remaining in 
151.7   the first year does not cancel but is 
151.8   available for the second year of the 
151.9   biennium. 
151.10  Sec. 27.  GENERAL CONTINGENT 
151.11  ACCOUNTS                                 600,000        600,000
151.12                Summary by Fund
151.13  General                 100,000       100,000
151.14  State Government
151.15  Special Revenue         400,000       400,000
151.16  Workers' Compensation   100,000       100,000
151.17  The appropriations in this section must 
151.18  be spent with the approval of the 
151.19  governor after consultation with the 
151.20  legislative advisory commission under 
151.21  Minnesota Statutes, section 3.30. 
151.22  If an appropriation in this section for 
151.23  either year is insufficient, the 
151.24  appropriation for the other year is 
151.25  available for it. 
151.26  The special revenue appropriation is 
151.27  available to be transferred to the 
151.28  attorney general when the costs to 
151.29  provide legal services to the health 
151.30  boards exceed the biennial 
151.31  appropriation to the attorney general 
151.32  from the special revenue fund and for 
151.33  transfer to the health boards if 
151.34  required for unforeseen expenditures of 
151.35  an emergency nature.  The boards 
151.36  receiving the additional services or 
151.37  supplemental appropriations shall set 
151.38  their fees to cover the costs. 
151.39  Sec. 28.  TORT CLAIMS                    275,000        275,000
151.40  To be spent by the commissioner of 
151.41  finance.  
151.42  If the appropriation for either year is 
151.43  insufficient, the appropriation for the 
151.44  other year is available for it.  
151.45  Sec. 29.  MINNESOTA STATE   
151.46  RETIREMENT SYSTEM                      9,299,000      9,856,000
151.47  The amounts estimated to be needed for 
151.48  each program are as follows: 
151.49  (a) Legislators 
151.50       6,821,000      7,230,000
151.51  Under Minnesota Statutes, sections 
152.1   3A.03, subdivision 2; 3A.04, 
152.2   subdivisions 3 and 4; and 3A.11. 
152.3   (b) Constitutional Officers 
152.4          355,000        376,000
152.5   Under Minnesota Statutes, sections 
152.6   352C.031, subdivision 5; 352C.04, 
152.7   subdivision 3; and 352C.09, subdivision 
152.8   2. 
152.9    (c) Judges 
152.10       2,123,000      2,250,000
152.11  If an appropriation in this section for 
152.12  either year is insufficient, the 
152.13  appropriation for the other year is 
152.14  available for it. 
152.15  Sec. 30.  MINNEAPOLIS EMPLOYEES 
152.16  RETIREMENT FUND                        3,232,000      3,232,000
152.17  Sec. 31.  POLICE AND FIRE   
152.18  AMORTIZATION AID                       6,345,000      6,345,000
152.19  $4,925,000 the first year and 
152.20  $4,925,000 the second year are to the 
152.21  commissioner of revenue for state aid 
152.22  to amortize the unfunded liability of 
152.23  local police and salaried firefighters 
152.24  relief associations under Minnesota 
152.25  Statutes, section 423A.02. 
152.26  $1,000,000 the first year and 
152.27  $1,000,000 the second year are to the 
152.28  commissioner of revenue for 
152.29  supplemental state aid to amortize the 
152.30  unfunded liability of local police and 
152.31  salaried firefighters relief 
152.32  associations under Minnesota Statutes, 
152.33  section 423A.02, subdivision 1a. 
152.34  $420,000 the first year and $420,000 
152.35  the second year are to the commissioner 
152.36  of revenue to pay reimbursements to 
152.37  relief associations for firefighter 
152.38  supplemental benefits paid under 
152.39  Minnesota Statutes, section 424A.10. 
152.40  Sec. 32.  BOARD OF GOVERNMENT 
152.41  INNOVATION AND COOPERATION             1,022,000      1,028,000
152.42     Sec. 33.  [16A.1286] [STATEWIDE SYSTEMS ACCOUNT.] 
152.43     Subdivision 1.  [CONTINUATION.] The statewide systems 
152.44  account is a separate account in the special revenue fund.  All 
152.45  money resulting from billings for statewide systems services 
152.46  must be credited to the account.  For the purposes of this 
152.47  section, statewide systems include the state accounting system, 
152.48  payroll system, human resources systems, procurement system, and 
152.49  related information access systems. 
152.50     Subd. 2.  [BILLING PROCEDURES.] The commissioner may bill 
153.1   up to $7,520,000 in each fiscal year for statewide systems 
153.2   services provided to state agencies, judicial branch agencies, 
153.3   the University of Minnesota, the Minnesota state colleges and 
153.4   universities, and other entities.  Billing must be based only on 
153.5   usage of services relating to statewide systems provided by the 
153.6   intertechnologies division.  Each agency shall transfer from 
153.7   agency operating appropriations to the statewide systems account 
153.8   the amount billed by the commissioner.  Billing policies and 
153.9   procedures related to statewide systems services must be 
153.10  developed by the commissioner in consultation with the 
153.11  commissioners of employee relations and administration, the 
153.12  University of Minnesota, and the Minnesota state colleges and 
153.13  universities. 
153.14     Subd. 3.  [APPROPRIATION.] Money transferred into the 
153.15  account is appropriated to the commissioner to pay for statewide 
153.16  systems services during the biennium in which it is appropriated.
153.17     Sec. 34.  [RATIFICATIONS.] 
153.18     Subdivision 1.  [UNREPRESENTED MANAGERS; MINNESOTA STATE 
153.19  COLLEGES AND UNIVERSITIES.] The amendments to the plan for 
153.20  administrators of the Minnesota state colleges and universities, 
153.21  approved by the legislative coordinating commission subcommittee 
153.22  on employee relations on July 21, 2000, are ratified. 
153.23     Subd. 2.  [SALARIES FOR HEADS OF STATE AGENCIES.] The 
153.24  proposal to increase the salaries of certain heads of state 
153.25  agencies, approved by the legislative coordinating commission 
153.26  subcommittee on employee relations on July 21, 2000, is ratified.
153.27     Subd. 3.  [ENGINEERS.] The arbitration award and labor 
153.28  agreement between the state of Minnesota and the Minnesota 
153.29  government engineers council, approved by the legislative 
153.30  coordinating commission subcommittee on employee relations on 
153.31  September 8, 2000, are ratified. 
153.32     Subd. 4.  [SALARIES FOR CERTAIN HEADS OF STATE 
153.33  AGENCIES.] The proposals to increase the salaries of the 
153.34  directors of the state board of investment and the teachers 
153.35  retirement association, as approved by the legislative 
153.36  coordinating commission subcommittee on employee relations on 
154.1   September 8, 2000, are ratified. 
154.2      Sec. 35.  [EFFECTIVE DATE.] 
154.3      The 2001 appropriations in this article are effective the 
154.4   day following final enactment and are available until June 30, 
154.5   2003. 
154.6                              ARTICLE 19
154.7                         ECONOMIC DEVELOPMENT
154.8   Section 1.  [ECONOMIC DEVELOPMENT; APPROPRIATIONS.] 
154.9      The sums shown in the columns marked "APPROPRIATIONS" are 
154.10  appropriated from the general fund, or another named fund, to 
154.11  the agencies and for the purposes specified in this article, to 
154.12  be available for the fiscal years indicated for each purpose.  
154.13  The figures "2002" and "2003," where used in this article, mean 
154.14  that the appropriations listed under them are available for the 
154.15  year ending June 30, 2002, or June 30, 2003, respectively.  The 
154.16  term "first year" means the fiscal year ending June 30, 2002, 
154.17  and "second year" means the fiscal year ending June 30, 2003. 
154.18                          SUMMARY BY FUND
154.19                                                      BIENNIAL
154.20                            2002          2003          TOTAL
154.21  General              $186,913,000   $185,508,000   $372,421,000
154.22  Environmental Fund        700,000        700,000      1,400,000
154.23  TANF                      750,000        750,000      1,500,000
154.24  Petroleum Tank
154.25  Cleanup                 1,064,000      1,084,000      2,148,000
154.26  Workers' 
154.27  Compensation           23,216,000     23,765,000     46,981,000
154.28  Workforce
154.29  Development Fund        3,395,000      3,410,000      6,805,000 
154.30  TOTAL                $216,038,000   $215,217,000   $431,255,000
154.31                                             APPROPRIATIONS 
154.32                                         Available for the Year 
154.33                                             Ending June 30 
154.34                                            2002         2003 
154.35  Sec. 2.  TRADE AND ECONOMIC DEVELOPMENT 
154.36  Subdivision 1.  Total       
154.37  Appropriation                         40,240,000     38,108,000
154.38                Summary by Fund
154.39  General              38,790,000    36,658,000
154.40  TANF                    750,000       750,000
155.1   Environmental Fund      700,000       700,000 
155.2   The amounts that may be spent from this 
155.3   appropriation for each program are 
155.4   specified in the following subdivisions.
155.5   Subd. 2.  Business and Community 
155.6   Development 
155.7       13,712,000     11,012,000
155.8                 Summary by Fund
155.9   General             13,012,000     10,312,000
155.10  Environmental Fund     700,000        700,000
155.11  $1,000,000 is for a grant to the cities 
155.12  of Ada, Breckenridge, East Grand Forks, 
155.13  and Warren.  Of that amount, $478,000 
155.14  is to reimburse Ada for bond interest 
155.15  expenses in connection with temporary 
155.16  financing in anticipation of financing 
155.17  by the Federal Emergency Management 
155.18  Agency (FEMA) for 1997 flood recovery 
155.19  work in that city.  $119,000 is to 
155.20  reimburse Breckenridge, $321,000 is to 
155.21  reimburse East Grand Forks, and $82,000 
155.22  is to reimburse Warren for lost 
155.23  interest in connection with 
155.24  expenditures in anticipation of 
155.25  financing by FEMA for 1997 flood 
155.26  recovery work in those cities. 
155.27  $1,775,000 the first year is for 
155.28  purposes of tornado relief to the 
155.29  Granite Falls area.  This appropriation 
155.30  shall be spent as follows: 
155.31  (1) $1,400,000 to the Minnesota 
155.32  investment fund for grants to local 
155.33  units of government for locally 
155.34  administered operating loan programs 
155.35  for businesses directly and adversely 
155.36  affected by the July 25, 2000, 
155.37  tornadoes.  Loan criteria and 
155.38  requirements must be locally 
155.39  established with approval by the 
155.40  department.  For the purposes of this 
155.41  appropriation, Minnesota Statutes, 
155.42  section 116J.8731, subdivisions 3, 4, 
155.43  5, and 7, is waived.  Businesses that 
155.44  receive grants or loans from this 
155.45  appropriation shall set goals for jobs 
155.46  retained and wages paid within the 
155.47  areas designated in amendment number 5 
155.48  and amendment number 6 to the 
155.49  Presidential Declaration of Major 
155.50  Disaster, DR1333; and 
155.51  (2) $375,000 is for a grant to project 
155.52  turnabout, a residential compulsive 
155.53  gambling treatment facility. 
155.54  Subd. 3.  Workforce Development 
155.55  Division  
155.56       8,191,000      8,201,000
155.57                Summary by Fund
156.1   General               7,441,000     7,451,000
156.2   TANF                    750,000       750,000
156.3   $7,441,000 the first year and 
156.4   $7,451,000 the second year are for the 
156.5   job skills partnership program.  If the 
156.6   appropriation for either year is 
156.7   insufficient, the appropriation for the 
156.8   other year is available.  This 
156.9   appropriation does not cancel. 
156.10  $750,000 the first year and $750,000 
156.11  the second are from the TANF fund to 
156.12  the commissioner for the health care 
156.13  and human services training program. 
156.14  Subd. 4.  Minnesota Trade Office 
156.15       2,466,000      2,614,000
156.16  Subd. 5.  Tourism 
156.17      10,785,000     10,877,000
156.18  $829,000 the first year and $829,000 
156.19  the second year are for the Minnesota 
156.20  film board.  $329,000 of this 
156.21  appropriation in each year is available 
156.22  only upon receipt by the board of $1 in 
156.23  matching contributions of money or 
156.24  in-kind from nonstate sources for every 
156.25  $3 provided by this appropriation.  Of 
156.26  this amount, $500,000 the first year 
156.27  and $500,000 the second year are for 
156.28  grants to the Minnesota film board for 
156.29  a film production jobs fund to 
156.30  stimulate feature film production in 
156.31  Minnesota.  This appropriation is to 
156.32  reimburse film and television producers 
156.33  for up to ten percent of the documented 
156.34  wages and cost of services that they 
156.35  paid to Minnesotans for film and 
156.36  television production after January 1, 
156.37  2001. 
156.38  $766,000 the first year and $766,000 
156.39  the second year are for the travel 
156.40  information centers. 
156.41  To develop maximum private sector 
156.42  involvement in tourism, $3,500,000 the 
156.43  first year and $3,500,000 the second 
156.44  year of the amounts appropriated for 
156.45  marketing activities are contingent on 
156.46  receipt of an equal contribution from 
156.47  nonstate sources that have been 
156.48  certified by the commissioner.  Up to 
156.49  one-half of the match may be given in 
156.50  in-kind contributions. 
156.51  In order to maximize marketing grant 
156.52  benefits, the commissioner must give 
156.53  priority for joint venture marketing 
156.54  grants to organizations with year-round 
156.55  sustained tourism activities.  For 
156.56  programs and projects submitted, the 
156.57  commissioner must give priority to 
156.58  those that encompass two or more areas 
156.59  or that attract nonresident travelers 
156.60  to the state. 
157.1   If an appropriation for either year for 
157.2   grants is not sufficient, the 
157.3   appropriation for the other year is 
157.4   available for it. 
157.5   The commissioner may use grant dollars 
157.6   or the value of in-kind services to 
157.7   provide the state contribution for the 
157.8   partnership program. 
157.9   Any unexpended money from general fund 
157.10  appropriations made under this 
157.11  subdivision does not cancel but must be 
157.12  placed in a special advertising account 
157.13  for use by the office of tourism to 
157.14  purchase additional media. 
157.15  Subd. 6.  Administration 
157.16       3,455,000      3,736,000
157.17  Subd. 7.  Information and Analysis
157.18       1,631,000      1,668,000
157.19  Sec. 3.  MINNESOTA TECHNOLOGY, INC.    6,105,000      6,105,000
157.20  $6,105,000 the first year and 
157.21  $6,105,000 the second year are for 
157.22  transfer from the general fund to the 
157.23  Minnesota Technology, Inc. fund. 
157.24  Sec. 4.  ECONOMIC SECURITY  
157.25  Subdivision 1.  Total 
157.26  Appropriation                         38,701,000     38,852,000
157.27                Summary by Fund
157.28  General              36,099,000    36,250,000
157.29  Workforce
157.30  Development Fund      2,602,000     2,602,000
157.31  Subd. 2.  Rehabilitation Services 
157.32      21,976,000     21,991,000
157.33  $1,850,000 the first year and 
157.34  $1,850,000 the second year are for the 
157.35  centers for independent living.  
157.36  Subd. 3.  State Services for the Blind 
157.37       4,940,000      5,067,000
157.38  Subd. 4.  Workforce Services 
157.39      11,785,000     11,794,000
157.40                Summary by Fund
157.41  General               9,183,000     9,192,000
157.42  Workforce
157.43  Development Fund      2,602,000     2,602,000
157.44  $1,827,000 the first year and 
157.45  $1,827,000 the second year from the 
157.46  workforce development fund are for 
157.47  displaced homemaker programs under 
158.1   Minnesota Statutes, section 268.96. 
158.2   $50,000 the first year and $50,000 the 
158.3   second year are for asset preservation. 
158.4   Sec. 5.  HOUSING FINANCE AGENCY 
158.5   Subdivision 1.  Total
158.6   Appropriation                         40,832,000     39,832,000 
158.7   The amounts that may be spent from this 
158.8   appropriation for certain programs are 
158.9   specified in the following subdivisions.
158.10  This appropriation is for transfer to 
158.11  the housing development fund for the 
158.12  programs specified.  Except as 
158.13  otherwise indicated, this transfer is 
158.14  part of the agency's permanent budget 
158.15  base. 
158.16  Subd. 2.  Rental Assistance for Mentally Ill 
158.17  $1,700,000 the first year and 
158.18  $1,700,000 the second year are for a 
158.19  rental housing assistance program for 
158.20  persons with a mental illness or 
158.21  families with an adult member with a 
158.22  mental illness under Minnesota 
158.23  Statutes, section 462A.2097. 
158.24  Subd. 3.  Family Homeless Prevention 
158.25  $3,250,000 the first year and 
158.26  $3,250,000 the second year are for the 
158.27  family homeless prevention and 
158.28  assistance program under Minnesota 
158.29  Statutes, section 462A.204. 
158.30  Subd. 4.  Homeownership Education and 
158.31  Training Program 
158.32  $858,000 the first year and $858,000 
158.33  the second year are for the 
158.34  homeownership education and training 
158.35  program under Minnesota Statutes, 
158.36  section 462A.209. 
158.37  Subd. 5.  Housing Trust Fund
158.38  $4,623,000 the first year and 
158.39  $4,623,000 the second year are for the 
158.40  housing trust fund to be deposited in 
158.41  the housing trust fund account created 
158.42  under Minnesota Statutes, section 
158.43  462A.201, and used for the purposes 
158.44  provided in that section.  Until 
158.45  January 1, 2002, the agency may 
158.46  administer the appropriations under 
158.47  this subdivision in the same manner as 
158.48  appropriations for Minnesota Statutes, 
158.49  section 462A.21, subdivision 8b, 15, 
158.50  21, or 24. 
158.51  Subd. 6.  Affordable Rental Investment Fund
158.52  $10,000,000 the first year and 
158.53  $10,000,000 the second year are for the 
158.54  affordable rental investment fund 
158.55  program under Minnesota Statutes, 
158.56  section 462A.21, subdivision 8b.  Of 
159.1   this amount, $10,000,000 the first year 
159.2   and $10,000,000 the second year are to 
159.3   finance the acquisition, 
159.4   rehabilitation, and debt restructuring 
159.5   of federally assisted rental property 
159.6   and for making equity take-out loans 
159.7   under Minnesota Statutes, section 
159.8   462A.05, subdivision 39.  The owner of 
159.9   the federally assisted rental property 
159.10  must agree to participate in the 
159.11  applicable federally assisted housing 
159.12  program and to extend any existing 
159.13  low-income affordability restrictions 
159.14  on the housing for the maximum term 
159.15  permitted.  The owner must also enter 
159.16  into an agreement that gives local 
159.17  units of government, housing and 
159.18  redevelopment authorities, and 
159.19  nonprofit housing organizations the 
159.20  right of first refusal if the rental 
159.21  property is offered for sale.  Priority 
159.22  must be given among comparable 
159.23  properties to properties with the 
159.24  longest remaining term under an 
159.25  agreement for federal rental 
159.26  assistance.  Priority must also be 
159.27  given among comparable rental housing 
159.28  developments to developments that are 
159.29  or will be owned by local government 
159.30  units, a housing and redevelopment 
159.31  authority, or a nonprofit housing 
159.32  organization. 
159.33  Subd. 7.  Urban Indian Housing Program
159.34  $187,000 the first year and $187,000 
159.35  the second year are for the urban 
159.36  Indian housing program under Minnesota 
159.37  Statutes, section 462A.07, subdivision 
159.38  15.  
159.39  Subd. 8.  Tribal Indian Housing Program
159.40  $1,683,000 the first year and 
159.41  $1,683,000 the second year are for the 
159.42  tribal Indian housing program under 
159.43  Minnesota Statutes, section 462A.07, 
159.44  subdivision 14.  
159.45  Subd. 9.  Capacity Building Grants 
159.46  $340,000 the first year and $340,000 
159.47  the second year are for nonprofit 
159.48  capacity building grants under 
159.49  Minnesota Statutes, section 462A.21, 
159.50  subdivision 3b. 
159.51  Subd. 10.  Challenge Program
159.52  $13,004,000 the first year and 
159.53  $12,004,000 the second year are 
159.54  appropriated for transfer to the 
159.55  housing development fund for the 
159.56  economic development and housing 
159.57  challenge program created by Minnesota 
159.58  Statutes, section 462A.33.  Until 
159.59  January 1, 2002, the agency may 
159.60  administer the appropriations under 
159.61  this subdivision in the same manner as 
159.62  appropriations for Minnesota Statutes, 
159.63  section 462A.21, subdivision 8b, 15, 
160.1   21, or 24. 
160.2   Of this appropriation, $610,000 the 
160.3   first year is for disaster relief for 
160.4   home ownership in the areas that 
160.5   sustained damage from the tornado that 
160.6   struck Yellow Medicine and Chippewa 
160.7   counties on July 25, 2000, and were 
160.8   added to the Presidential Declaration 
160.9   of Major Disaster, DR1333, by amendment 
160.10  number 5 dated July 28, 2000, and 
160.11  amendment number 6 dated August 14, 
160.12  2000. 
160.13  Of this appropriation, $390,000 the 
160.14  first year is for disaster relief for 
160.15  rental housing in the areas that 
160.16  sustained damage from the tornado that 
160.17  struck Yellow Medicine and Chippewa 
160.18  counties on July 25, 2000, and were 
160.19  added to the Presidential Declaration 
160.20  of Major Disaster, DR1333, by amendment 
160.21  number 5 dated July 28, 2000, and 
160.22  amendment number 6 dated August 14, 
160.23  2000.  Notwithstanding Minnesota 
160.24  Statutes, section 462A.21, subdivision 
160.25  8b, assistance provided from this 
160.26  disaster relief appropriation for the 
160.27  rehabilitation of existing rental 
160.28  housing may be in the form of 
160.29  forgivable loans.  In making forgivable 
160.30  loans from this appropriation, the 
160.31  agency shall determine the 
160.32  circumstances, terms, and conditions 
160.33  under which all or any portion of the 
160.34  grant shall be repaid.  This 
160.35  appropriation is available until spent. 
160.36  Subd. 11.  Transfers
160.37  Money appropriated under this section 
160.38  for disaster relief may be transferred 
160.39  between the affordable rental 
160.40  investment fund account and the 
160.41  community rehabilitation fund account. 
160.42  Sec. 6.  COMMERCE 
160.43  Subdivision 1.  Total 
160.44  Appropriation                         27,061,000     27,728,000
160.45                Summary by Fund
160.46  General              25,398,000    26,029,000
160.47  Petroleum Tank
160.48  Cleanup               1,064,000     1,084,000 
160.49  Workers'
160.50  Compensation            599,000       615,000
160.51  The amounts that may be spent from this 
160.52  appropriation for each program are 
160.53  specified in the following subdivisions.
160.54  Subd. 2.  Financial Examinations 
160.55       6,379,000      6,555,000
160.56  Subd. 3.  Enforcement and Compliance 
161.1        5,685,000      5,836,000
161.2                 Summary by Fund
161.3   General               5,086,000     5,221,000
161.4   Workers' 
161.5   Compensation            599,000       615,000
161.6   Subd. 4.  Energy
161.7        3,809,000      3,884,000
161.8   $588,000 each year is for transfer to 
161.9   the energy and conservation account 
161.10  established in Minnesota Statutes, 
161.11  section 216B.241, subdivision 2a, for 
161.12  programs administered by the 
161.13  commissioner of economic security to 
161.14  improve the energy efficiency of 
161.15  residential oil-fired heating plants in 
161.16  low-income households and, when 
161.17  necessary, to provide weatherization 
161.18  services to the homes. 
161.19  Subd. 5.  Petroleum Tank Release 
161.20  Cleanup 
161.21       1,064,000      1,084,000
161.22  This appropriation is from the 
161.23  petroleum tank release cleanup fund. 
161.24  Subd. 6.  Administrative Services 
161.25       5,852,000      6,003,000 
161.26  Subd. 7.  Telecommunications
161.27         986,000      1,008,000
161.28  Subd. 8.  Weights and Measures
161.29       3,286,000      3,358,000
161.30  Sec. 7.  BOARD OF ACCOUNTANCY            643,000        664,000
161.31  Sec. 8.  BOARD OF ARCHITECTURE,
161.32  ENGINEERING, LAND SURVEYING, 
161.33  LANDSCAPE ARCHITECTURE, 
161.34  GEOSCIENCE, AND INTERIOR DESIGN          951,000        981,000 
161.36  Sec. 9.  BOARD OF BARBER   
161.37  EXAMINERS                                153,000        159,000
161.38  Sec. 10.  LABOR AND INDUSTRY 
161.39  Subdivision 1.  Total             
161.40  Appropriation                         25,408,000     26,001,000
161.41                Summary by Fund
161.42  General               3,567,000     3,661,000
161.43  Workers'     
161.44  Compensation         21,048,000    21,532,000
161.45  Workforce 
161.46  Development Fund        793,000       808,000
162.1   The amounts that may be spent from this 
162.2   appropriation for each program are 
162.3   specified in the following subdivisions.
162.4   Subd. 2.  Workers' Compensation
162.5       10,912,000     11,178,000
162.6   This appropriation is from the workers' 
162.7   compensation fund. 
162.8   $125,000 the first year and $125,000 
162.9   the second year are for grants to the 
162.10  Vinland Center for rehabilitation 
162.11  service. 
162.12  Subd. 3.  Workplace Services 
162.13       7,468,000      7,643,000
162.14                Summary by Fund
162.15  General               2,493,000     2,555,000
162.16  Workers'
162.17  Compensation          4,182,000     4,280,000
162.18  Workforce 
162.19  Development Fund        793,000       808,000 
162.20  $204,000 the first year and $204,000 
162.21  the second year are for labor education 
162.22  and advancement program grants.  The 
162.23  commissioner must report to the 
162.24  legislature by February 15, 2003, on 
162.25  the success of the program in placing 
162.26  and retaining participants.  This 
162.27  appropriation is from the workforce 
162.28  development fund. 
162.29  Subd. 4.  General Support 
162.30       7,028,000      7,180,000
162.31                Summary by Fund
162.32  General               1,074,000     1,106,000
162.33  Workers'     
162.34  Compensation          5,954,000     6,074,000
162.35  Sec. 11.  BUREAU OF MEDIATION SERVICES 
162.36  Subdivision 1.  Total
162.37  Appropriation                          2,230,000      2,278,000
162.38  The amounts that may be spent from this 
162.39  appropriation for each program are 
162.40  specified in the following subdivisions.
162.41  Subd. 2.  Mediation Services 
162.42       1,928,000      1,976,000
162.43  Subd. 3.  Labor Management Cooperation Grants
162.44         302,000        302,000
162.45  $302,000 each year is for grants to 
162.46  area labor management committees.  Any 
162.47  unencumbered balance remaining at the 
163.1   end of the first year does not cancel 
163.2   but is available for the second year. 
163.3   Sec. 12.  PUBLIC UTILITIES  
163.4   COMMISSION                             3,994,000      4,163,000
163.5   Sec. 13.  MINNESOTA HISTORICAL 
163.6   SOCIETY 
163.7   Subdivision 1.  Total       
163.8   Appropriation                         26,599,000     27,129,000
163.9   The amounts that may be spent from this 
163.10  appropriation for each program are 
163.11  specified in the following subdivisions.
163.12  Subd. 2.  Education and     
163.13  Outreach  
163.14      14,635,000     14,962,000
163.15  Subd. 3.  Preservation and Access
163.16      11,568,000     11,819,000
163.17  Subd. 4.  Fiscal Agent
163.18  General                   396,000        348,000
163.19  (a) Sibley House Association 
163.20          88,000         88,000
163.21  This appropriation is available for 
163.22  operation and maintenance of the Sibley 
163.23  House and related buildings on the Old 
163.24  Mendota state historic site operated by 
163.25  the Sibley House Association.  
163.26  (b) Minnesota International Center 
163.27          50,000         50,000
163.28  (c) Minnesota Air National   
163.29  Guard Museum 
163.30          19,000        -0-
163.31  (d) Institute for Learning and
163.32  Teaching - Project 120
163.33         110,000        110,000 
163.34  (e) Minnesota Military Museum
163.35          29,000            -0-
163.36  (f) Farmamerica
163.37         100,000        100,000 
163.38  Notwithstanding any other law, this 
163.39  appropriation may be used for 
163.40  operations. 
163.41  (g) Balances Forward
163.42  Any unencumbered balance remaining in 
163.43  this subdivision the first year does 
163.44  not cancel but is available for the 
163.45  second year of the biennium. 
164.1   Sec. 14.  COUNCIL ON BLACK
164.2   MINNESOTANS                              339,000        349,000
164.3   $25,000 each year is for expenses 
164.4   associated with the Dr. Martin Luther 
164.5   King, Jr. Day activities. 
164.6   Sec. 15.  COUNCIL ON 
164.7   CHICANO-LATINO AFFAIRS                   334,000        344,000
164.8   Sec. 16.  COUNCIL ON
164.9   ASIAN-PACIFIC MINNESOTANS                295,000        304,000
164.10  Sec. 17.  INDIAN AFFAIRS
164.11  COUNCIL                                  584,000        602,000
164.12  Sec. 18.  WORKERS' COMPENSATION
164.13  COURT OF APPEALS                       1,569,000      1,618,000
164.14  This appropriation is from the workers' 
164.15  compensation fund. 
164.16     Sec. 19.  [CONSOLIDATION OF STATE REGULATION OF COMMERCE.] 
164.17     In order to make state government more efficient and 
164.18  effective and to accomplish more efficient and effective 
164.19  regulation of commerce in Minnesota, all of the powers, rights, 
164.20  responsibilities, and duties that remain in the department of 
164.21  public service after reorganization order No. 181 are 
164.22  transferred to the department of commerce under Minnesota 
164.23  Statutes, section 15.039.  This transfer is governed in all 
164.24  respects by Minnesota Statutes, section 15.039.  The department 
164.25  of public service is abolished. 
164.26     Sec. 20.  Minnesota Statutes 2000, section 3C.12, 
164.27  subdivision 2, is amended to read: 
164.28     Subd. 2.  [FREE DISTRIBUTION.] The revisor shall distribute 
164.29  without charge copies of each edition of Minnesota Statutes, 
164.30  supplements to Minnesota Statutes, and Laws of Minnesota to the 
164.31  persons or bodies listed in this subdivision.  Before 
164.32  distributing the copies, the revisor shall inform these persons 
164.33  or bodies of the cost of the publication and the availability of 
164.34  statutes and session laws on the Internet, and shall ask whether 
164.35  their work requires the full number of copies authorized by this 
164.36  subdivision.  Unless a smaller number is needed, the revisor 
164.37  shall distribute:  
164.38     (a) 30 copies to the supreme court; 
164.39     (b) 30 copies to the court of appeals; 
164.40     (c) one copy to each judge of a district court; 
165.1      (d) one copy to the court administrator of each district 
165.2   court for use in each courtroom of the district court; 
165.3      (e) one copy to each judge, district attorney, clerk of 
165.4   court of the United States, and deputy clerk of each division of 
165.5   the United States district court in Minnesota; 
165.6      (f) 100 copies to the office of the attorney general; 
165.7      (g) ten copies each to the governor's office, the 
165.8   departments of agriculture, commerce, corrections, children, 
165.9   families, and learning, finance, health, transportation, labor 
165.10  and industry, economic security, natural resources, public 
165.11  safety, public service, human services, revenue, and the 
165.12  pollution control agency; 
165.13     (h) two copies each to the lieutenant governor and the 
165.14  state treasurer; 
165.15     (i) 20 copies each to the department departments of 
165.16  administration and commerce, state auditor, and legislative 
165.17  auditor; 
165.18     (j) one copy each to other state departments, agencies, 
165.19  boards, and commissions not specifically named in this 
165.20  subdivision; 
165.21     (k) one copy to each member of the legislature; 
165.22     (l) 150 copies for the use of the senate and 200 copies for 
165.23  the use of the house of representatives; 
165.24     (m) 50 copies to the revisor of statutes from which the 
165.25  revisor shall send the appropriate number to the Library of 
165.26  Congress for copyright and depository purposes; 
165.27     (n) four copies to the secretary of the senate; 
165.28     (o) four copies to the chief clerk of the house of 
165.29  representatives; 
165.30     (p) 100 copies to the state law library; 
165.31     (q) 100 copies to the law school of the University of 
165.32  Minnesota; 
165.33     (r) five copies each to the Minnesota historical society 
165.34  and the secretary of state; 
165.35     (s) one copy each to the public library of the largest 
165.36  municipality of each county if the library is not otherwise 
166.1   eligible to receive a free copy under this section or section 
166.2   15.18; and 
166.3      (t) one copy to each county library maintained pursuant to 
166.4   chapter 134, except in counties containing cities of the first 
166.5   class.  If a county has not established a county library 
166.6   pursuant to chapter 134, the copy shall be provided to any 
166.7   public library in the county. 
166.8      Sec. 21.  Minnesota Statutes 2000, section 13.679, is 
166.9   amended to read: 
166.10     13.679 [DEPARTMENT OF PUBLIC SERVICE DATA.] 
166.11     Subdivision 1.  [TENANT.] Data collected by the department 
166.12  of public service commissioner of commerce that reveals the 
166.13  identity of a tenant who makes a complaint regarding energy 
166.14  efficiency standards for rental housing are private data on 
166.15  individuals.  
166.16     Subd. 2.  [UTILITY OR TELEPHONE COMPANY EMPLOYEE OR 
166.17  CUSTOMER.] (a) The following are private data on individuals:  
166.18  data collected by the department of public service commissioner 
166.19  of commerce or the public utilities commission, including the 
166.20  names or any other data that would reveal the identity of either 
166.21  an employee or customer of a telephone company or public utility 
166.22  who files a complaint or provides information regarding a 
166.23  violation or suspected violation by the telephone company or 
166.24  public utility of any federal or state law or rule; except this 
166.25  data may be released as needed to law enforcement authorities. 
166.26     (b) The following are private data on individuals:  data 
166.27  collected by the commission or the department of public service 
166.28  commissioner of commerce on individual public utility or 
166.29  telephone company customers or prospective customers, including 
166.30  copies of tax forms, needed to administer federal or state 
166.31  programs that provide relief from telephone company bills, 
166.32  public utility bills, or cold weather disconnection.  The 
166.33  determination of eligibility of the customers or prospective 
166.34  customers may be released to public utilities or telephone 
166.35  companies to administer the programs.  
166.36     Sec. 22.  Minnesota Statutes 2000, section 15.01, is 
167.1   amended to read: 
167.2      15.01 [DEPARTMENTS OF THE STATE.] 
167.3      The following agencies are designated as the departments of 
167.4   the state government:  the department of administration; the 
167.5   department of agriculture; the department of commerce; the 
167.6   department of corrections; the department of children, families, 
167.7   and learning; the department of economic security; the 
167.8   department of trade and economic development; the department of 
167.9   finance; the department of health; the department of human 
167.10  rights; the department of labor and industry; the department of 
167.11  military affairs; the department of natural resources; the 
167.12  department of employee relations; the department of public 
167.13  safety; the department of public service; the department of 
167.14  human services; the department of revenue; the department of 
167.15  transportation; the department of veterans affairs; and their 
167.16  successor departments. 
167.17     Sec. 23.  Minnesota Statutes 2000, section 15.06, 
167.18  subdivision 1, is amended to read: 
167.19     Subdivision 1.  [APPLICABILITY.] This section applies to 
167.20  the following departments or agencies:  the departments of 
167.21  administration, agriculture, commerce, corrections, economic 
167.22  security, children, families, and learning, employee relations, 
167.23  trade and economic development, finance, health, human rights, 
167.24  labor and industry, natural resources, public safety, public 
167.25  service, human services, revenue, transportation, and veterans 
167.26  affairs; the housing finance and pollution control agencies; the 
167.27  office of commissioner of iron range resources and 
167.28  rehabilitation; the bureau of mediation services; and their 
167.29  successor departments and agencies.  The heads of the foregoing 
167.30  departments or agencies are "commissioners." 
167.31     Sec. 24.  Minnesota Statutes 2000, section 15A.0815, 
167.32  subdivision 2, is amended to read: 
167.33     Subd. 2.  [GROUP I SALARY LIMITS.] The salaries for 
167.34  positions in this subdivision may not exceed 95 percent of the 
167.35  salary of the governor:  
167.36     Commissioner of administration; 
168.1      Commissioner of agriculture; 
168.2      Commissioner of children, families, and learning; 
168.3      Commissioner of commerce; 
168.4      Commissioner of corrections; 
168.5      Commissioner of economic security; 
168.6      Commissioner of employee relations; 
168.7      Commissioner of finance; 
168.8      Commissioner of health; 
168.9      Executive director, higher education services office; 
168.10     Commissioner, housing finance agency; 
168.11     Commissioner of human rights; 
168.12     Commissioner of human services; 
168.13     Executive director, state board of investment; 
168.14     Commissioner of labor and industry; 
168.15     Commissioner of natural resources; 
168.16     Director of office of strategic and long-range planning; 
168.17     Commissioner, pollution control agency; 
168.18     Commissioner of public safety; 
168.19     Commissioner, department of public service; 
168.20     Commissioner of revenue; 
168.21     Commissioner of trade and economic development; 
168.22     Commissioner of transportation; and 
168.23     Commissioner of veterans affairs. 
168.24     Sec. 25.  Minnesota Statutes 2000, section 16B.32, 
168.25  subdivision 2, as amended by Laws 2001, chapter 162, section 4, 
168.26  is amended to read: 
168.27     Subd. 2.  [ENERGY CONSERVATION GOALS; EFFICIENCY PROGRAM.] 
168.28  (a) The commissioner of administration in consultation with 
168.29  the department of public service commissioner of commerce, in 
168.30  cooperation with one or more public utilities or comprehensive 
168.31  energy services providers, may conduct a shared-savings program 
168.32  involving energy conservation expenditures on state-owned 
168.33  buildings.  The public utility or energy services provider shall 
168.34  contract with appropriate state agencies to implement energy 
168.35  efficiency improvements in the selected buildings.  A contract 
168.36  must require the public utility or energy services provider to 
169.1   include all energy efficiency improvements in selected buildings 
169.2   that are calculated to achieve a cost payback within ten years.  
169.3   The contract must require that the public utility or energy 
169.4   services provider be repaid solely from energy cost savings and 
169.5   only to the extent of energy cost savings.  Repayments must be 
169.6   interest-free.  The goal of the program in this paragraph is to 
169.7   demonstrate that through effective energy conservation the total 
169.8   energy consumption per square foot of state-owned and wholly 
169.9   state-leased buildings could be reduced by at least 25 percent 
169.10  from consumption in the base year of 1990.  All agencies 
169.11  participating in the program must report to the commissioner of 
169.12  administration their monthly energy usage, building schedules, 
169.13  inventory of energy-consuming equipment, and other information 
169.14  as needed by the commissioner to manage and evaluate the program.
169.15     (b) The commissioner may exclude from the program of 
169.16  paragraph (a) a building in which energy conservation measures 
169.17  are carried out.  "Energy conservation measures" means measures 
169.18  that are applied to a state building that improve energy 
169.19  efficiency and have a simple return of investment in ten years 
169.20  or within the remaining period of a lease, whichever time is 
169.21  shorter, and involves energy conservation, conservation 
169.22  facilities, renewable energy sources, improvements in operations 
169.23  and maintenance efficiencies, or retrofit activities. 
169.24     (c) This subdivision expires January 1, 2006. 
169.25     Sec. 26.  Minnesota Statutes 2000, section 16B.335, 
169.26  subdivision 4, is amended to read: 
169.27     Subd. 4.  [ENERGY CONSERVATION.] A recipient to whom a 
169.28  direct appropriation is made for a capital improvement project 
169.29  shall ensure that the project complies with the applicable 
169.30  energy conservation standards contained in law, including 
169.31  sections 216C.19 to 216C.20, and rules adopted thereunder.  The 
169.32  recipient may use the energy planning and intervention and 
169.33  energy technologies units of the department of public service to 
169.34  obtain information and technical assistance from the state 
169.35  energy office in the department of commerce on energy 
169.36  conservation and alternative energy development relating to the 
170.1   planning and construction of the capital improvement project. 
170.2      Sec. 27.  Minnesota Statutes 2000, section 16B.56, 
170.3   subdivision 1, is amended to read: 
170.4      Subdivision 1.  [EMPLOYEE TRANSPORTATION PROGRAM.] (a) 
170.5   [ESTABLISHMENT.] To conserve energy and alleviate traffic 
170.6   congestion around state offices, the commissioner shall, in 
170.7   cooperation with the commissioner of public service, the 
170.8   commissioner of transportation, the state energy office in the 
170.9   department of commerce, and interested nonprofit agencies, 
170.10  establish and operate an employee transportation program using 
170.11  commuter vans with a capacity of not less than seven nor more 
170.12  than 16 passengers.  Commuter vans may be used by state 
170.13  employees and others to travel between their homes and their 
170.14  work locations.  However, only state employee drivers may use 
170.15  the van for personal purposes after working hours, not including 
170.16  partisan political activity.  The commissioner shall acquire or 
170.17  lease commuter vans, or otherwise contract for the provision of 
170.18  commuter vans, and shall make the vans available for the use of 
170.19  state employees and others in accordance with standards and 
170.20  procedures adopted by the commissioner.  The commissioner shall 
170.21  promote the maximum participation of state employees and others 
170.22  in the use of the vans.  
170.23     (b) [ADMINISTRATIVE POLICIES.] The commissioner shall adopt 
170.24  standards and procedures under this section without regard to 
170.25  chapter 14.  The commissioner shall provide for the recovery by 
170.26  the state of vehicle acquisition, lease, operation, and 
170.27  insurance costs through efficient and convenient assignment of 
170.28  vans, and for the billing of costs and collection of fees.  A 
170.29  state employee using a van for personal use shall pay, pursuant 
170.30  to the standards and procedures adopted by the commissioner, for 
170.31  operating and routine maintenance costs incurred as a result of 
170.32  the personal use.  Fees collected under this subdivision shall 
170.33  be deposited in the accounts from which the costs of operating, 
170.34  maintaining, and leasing or amortization for the specific 
170.35  vehicle are paid.  
170.36     Sec. 28.  Minnesota Statutes 2000, section 16B.76, 
171.1   subdivision 1, as amended by Laws 2001, chapter 161, section 6, 
171.2   is amended to read: 
171.3      Subdivision 1.  [MEMBERSHIP.] (a) The construction codes 
171.4   advisory council consists of the following members: 
171.5      (1) the commissioner of administration or the 
171.6   commissioner's designee representing the department's building 
171.7   codes and standards division; 
171.8      (2) the commissioner of health or the commissioner's 
171.9   designee representing an environmental health section of the 
171.10  department; 
171.11     (3) the commissioner of public safety or the commissioner's 
171.12  designee representing the department's state fire marshal 
171.13  division; 
171.14     (4) the commissioner of public service commerce or the 
171.15  commissioner's designee representing the department's energy 
171.16  regulation and resource management division state energy office; 
171.17  and 
171.18     (5) one member representing each of the following 
171.19  occupations or entities, appointed by the commissioner of 
171.20  administration: 
171.21     (i) a certified building official; 
171.22     (ii) a fire service representative; 
171.23     (iii) a licensed architect; 
171.24     (iv) a licensed engineer; 
171.25     (v) a building owners and managers representative; 
171.26     (vi) a licensed residential building contractor; 
171.27     (vii) a commercial building contractor; 
171.28     (viii) a heating and ventilation contractor; 
171.29     (ix) a plumbing contractor; 
171.30     (x) a representative of a construction and building trades 
171.31  union; and 
171.32     (xi) a local unit of government representative. 
171.33     (b) For members who are not state officials or employees, 
171.34  terms, compensation, removal, and the filling of vacancies are 
171.35  governed by section 15.059.  The council shall select one of its 
171.36  members to serve as chair. 
172.1      (c) The council expires June 30, 2003. 
172.2      Sec. 29.  Minnesota Statutes 2000, section 17.86, 
172.3   subdivision 3, is amended to read: 
172.4      Subd. 3.  [INFORMATION.] The University of Minnesota 
172.5   extension service, in cooperation with the commissioners of 
172.6   agriculture, children, families, and learning, natural 
172.7   resources, and public service commerce, shall serve as the 
172.8   principal agency for publishing and circulating information 
172.9   derived from research under subdivision 2 among the various 
172.10  municipalities and individual property owners in the state.  
172.11  Where practical, the extension service and the state energy 
172.12  office in the department of public service commerce shall secure 
172.13  the advice and assistance of various energy utilities interested 
172.14  and concerned with conservation.  The commissioner of 
172.15  agriculture shall establish an information source for requests 
172.16  for nursery stock, to match needs of municipalities with stocks 
172.17  of trees available for planting from private and governmental 
172.18  sources.  
172.19     Sec. 30.  Minnesota Statutes 2000, section 18.024, 
172.20  subdivision 1, is amended to read: 
172.21     Subdivision 1.  [WOOD UTILIZATION.] The departments of 
172.22  agriculture and natural resources, after consultation with the 
172.23  Minnesota shade tree advisory committee and the commissioner of 
172.24  public service state energy office in the department of 
172.25  commerce, shall investigate, evaluate, and make recommendations 
172.26  to the legislature concerning the potential uses of wood from 
172.27  community trees removed due to disease or other disorders.  
172.28  These recommendations shall include maximum resource recovery 
172.29  through recycling, use as an alternative energy source, or use 
172.30  in construction or the manufacture of new products.  Wood 
172.31  utilization or disposal systems as defined in section 18.023 
172.32  must be included to ensure maximum utilization of diseased shade 
172.33  trees with designs and procedures to ensure public safety and to 
172.34  assure compliance with approved disease control programs. 
172.35     Sec. 31.  Minnesota Statutes 2000, section 43A.08, 
172.36  subdivision 1a, is amended to read: 
173.1      Subd. 1a.  [ADDITIONAL UNCLASSIFIED POSITIONS.] Appointing 
173.2   authorities for the following agencies may designate additional 
173.3   unclassified positions according to this subdivision:  the 
173.4   departments of administration; agriculture; commerce; 
173.5   corrections; economic security; children, families, and 
173.6   learning; employee relations; trade and economic development; 
173.7   finance; health; human rights; labor and industry; natural 
173.8   resources; public safety; public service; human services; 
173.9   revenue; transportation; and veterans affairs; the housing 
173.10  finance and pollution control agencies; the state lottery; the 
173.11  state board of investment; the office of administrative 
173.12  hearings; the office of environmental assistance; the offices of 
173.13  the attorney general, secretary of state, state auditor, and 
173.14  state treasurer; the Minnesota state colleges and universities; 
173.15  the higher education services office; the Perpich center for 
173.16  arts education; and the Minnesota zoological board. 
173.17     A position designated by an appointing authority according 
173.18  to this subdivision must meet the following standards and 
173.19  criteria:  
173.20     (1) the designation of the position would not be contrary 
173.21  to other law relating specifically to that agency; 
173.22     (2) the person occupying the position would report directly 
173.23  to the agency head or deputy agency head and would be designated 
173.24  as part of the agency head's management team; 
173.25     (3) the duties of the position would involve significant 
173.26  discretion and substantial involvement in the development, 
173.27  interpretation, and implementation of agency policy; 
173.28     (4) the duties of the position would not require primarily 
173.29  personnel, accounting, or other technical expertise where 
173.30  continuity in the position would be important; 
173.31     (5) there would be a need for the person occupying the 
173.32  position to be accountable to, loyal to, and compatible with, 
173.33  the governor and the agency head, the employing statutory board 
173.34  or commission, or the employing constitutional officer; 
173.35     (6) the position would be at the level of division or 
173.36  bureau director or assistant to the agency head; and 
174.1      (7) the commissioner has approved the designation as being 
174.2   consistent with the standards and criteria in this subdivision. 
174.3      Sec. 32.  Minnesota Statutes 2000, section 45.012, is 
174.4   amended to read: 
174.5      45.012 [COMMISSIONER.] 
174.6      (a) The department of commerce is under the supervision and 
174.7   control of the commissioner of commerce.  The commissioner is 
174.8   appointed by the governor in the manner provided by section 
174.9   15.06.  
174.10     (b) Data that is received by the commissioner or the 
174.11  commissioner's designee by virtue of membership or participation 
174.12  in an association, group, or organization that is not otherwise 
174.13  subject to chapter 13 is confidential or protected nonpublic 
174.14  data but may be shared with the department employees as the 
174.15  commissioner considers appropriate.  The commissioner may 
174.16  release the data to any person, agency, or the public if the 
174.17  commissioner determines that the access will aid the law 
174.18  enforcement process, promote public health or safety, or dispel 
174.19  widespread rumor or unrest.  
174.20     (c) It is part of the department's mission that within the 
174.21  department's resources the commissioner shall endeavor to: 
174.22     (1) prevent the waste or unnecessary spending of public 
174.23  money; 
174.24     (2) use innovative fiscal and human resource practices to 
174.25  manage the state's resources and operate the department as 
174.26  efficiently as possible; 
174.27     (3) coordinate the department's activities wherever 
174.28  appropriate with the activities of other governmental agencies; 
174.29     (4) use technology where appropriate to increase agency 
174.30  productivity, improve customer service, increase public access 
174.31  to information about government, and increase public 
174.32  participation in the business of government; 
174.33     (5) utilize constructive and cooperative labor-management 
174.34  practices to the extent otherwise required by chapters 43A and 
174.35  179A; 
174.36     (6) report to the legislature on the performance of agency 
175.1   operations and the accomplishment of agency goals in the 
175.2   agency's biennial budget according to section 16A.10, 
175.3   subdivision 1; and 
175.4      (7) recommend to the legislature appropriate changes in law 
175.5   necessary to carry out the mission and improve the performance 
175.6   of the department. 
175.7      (d) The commissioner also has all the powers and 
175.8   responsibilities and shall perform all the duties previously 
175.9   assigned to the commissioner of public service and the 
175.10  department of public service under chapters 216, 216A, 216B, 
175.11  216C, 237, 238, 239, and other statutes prior to the date of 
175.12  final enactment of this act, except in the case where those 
175.13  powers, responsibilities, or duties have been specifically 
175.14  otherwise assigned by law. 
175.15     Sec. 33.  Minnesota Statutes 2000, section 103F.325, 
175.16  subdivision 2, is amended to read: 
175.17     Subd. 2.  [REVIEW AND HEARING.] (a) The commissioner shall 
175.18  make the proposed management plan available to affected local 
175.19  governmental bodies, shoreland owners, conservation and outdoor 
175.20  recreation groups, the commissioner of trade and economic 
175.21  development, the commissioner of public service commerce, the 
175.22  governor, and the general public.  The commissioners of trade 
175.23  and economic development and of public service, the state energy 
175.24  office in the department of commerce, and the governor shall 
175.25  review the proposed management plan in accordance with the 
175.26  criteria in section 86A.09, subdivision 3, and submit any 
175.27  written comments to the commissioner within 60 days after 
175.28  receipt of the proposed management plan.  
175.29     (b) By 60 days after making the information available, the 
175.30  commissioner shall conduct a public hearing on the proposed 
175.31  management plan in the county seat of each county that contains 
175.32  a portion of the designated system area, in the manner provided 
175.33  in chapter 14.  
175.34     Sec. 34.  Minnesota Statutes 2000, section 103F.325, 
175.35  subdivision 3, is amended to read: 
175.36     Subd. 3.  [POST HEARING REVIEW.] Upon receipt of the 
176.1   administrative law judge's report, the commissioner shall 
176.2   immediately forward the proposed management plan and the 
176.3   administrative law judge's report to the commissioners of trade 
176.4   and economic development and of public service commerce for 
176.5   review under section 86A.09, subdivision 3, except that the 
176.6   review by the commissioners must be completed or be deemed 
176.7   completed within 30 days after receiving the administrative law 
176.8   judge's report, and the review by the governor must be completed 
176.9   or be deemed completed within 15 days after receipt.  
176.10     Sec. 35.  Minnesota Statutes 2000, section 115A.15, 
176.11  subdivision 5, is amended to read: 
176.12     Subd. 5.  [REPORTS.] (a) By January 1 of each odd-numbered 
176.13  year, the commissioner of administration shall submit a report 
176.14  to the governor and to the environment and natural resources 
176.15  committees of the senate and house of representatives, the 
176.16  finance division of the senate committee on environment and 
176.17  natural resources, and the house of representatives committee on 
176.18  environment and natural resources finance summarizing past 
176.19  activities and proposed goals of the program for the following 
176.20  biennium.  The report shall include at least: 
176.21     (1) a summary list of product and commodity purchases that 
176.22  contain recycled materials; 
176.23     (2) the results of any performance tests conducted on 
176.24  recycled products and agencies' experience with recycled 
176.25  products used; 
176.26     (3) a list of all organizations participating in and using 
176.27  the cooperative purchasing program; and 
176.28     (4) a list of products and commodities purchased for their 
176.29  recyclability and of recycled products reviewed for purchase. 
176.30     (b) By July 1 of each even-numbered year, the director of 
176.31  the office of environmental assistance and the commissioner of 
176.32  public service commerce through the state energy office shall 
176.33  submit recommendations to the commissioner regarding the 
176.34  operation of the program. 
176.35     Sec. 36.  Minnesota Statutes 2000, section 116O.06, 
176.36  subdivision 2, is amended to read: 
177.1      Subd. 2.  [EQUITY INVESTMENTS.] The corporation may acquire 
177.2   an interest in a product or a private business entity, except 
177.3   that the corporation may not acquire an interest in a business 
177.4   entity engaged in a trade or industry whose profits are directly 
177.5   regulated by the commissioner of commerce or the department of 
177.6   public service public utilities commission.  The corporation may 
177.7   enter into joint venture agreements with other private 
177.8   corporations to promote economic development and job creation.  
177.9      Sec. 37.  Minnesota Statutes 2000, section 123B.65, 
177.10  subdivision 1, is amended to read: 
177.11     Subdivision 1.  [DEFINITIONS.] The definitions in this 
177.12  subdivision apply to this section. 
177.13     (a) "Energy conservation measure" means a training program 
177.14  or facility alteration designed to reduce energy consumption or 
177.15  operating costs and includes: 
177.16     (1) insulation of the building structure and systems within 
177.17  the building; 
177.18     (2) storm windows and doors, caulking or weatherstripping, 
177.19  multiglazed windows and doors, heat absorbing or heat reflective 
177.20  glazed and coated window and door systems, additional glazing, 
177.21  reductions in glass area, and other window and door system 
177.22  modifications that reduce energy consumption; 
177.23     (3) automatic energy control systems; 
177.24     (4) heating, ventilating, or air conditioning system 
177.25  modifications or replacements; 
177.26     (5) replacement or modifications of lighting fixtures to 
177.27  increase the energy efficiency of the lighting system without 
177.28  increasing the overall illumination of a facility, unless such 
177.29  increase in illumination is necessary to conform to the 
177.30  applicable state or local building code for the lighting system 
177.31  after the proposed modifications are made; 
177.32     (6) energy recovery systems; 
177.33     (7) cogeneration systems that produce steam or forms of 
177.34  energy such as heat, as well as electricity, for use primarily 
177.35  within a building or complex of buildings; 
177.36     (8) energy conservation measures that provide long-term 
178.1   operating cost reductions.  
178.2      (b) "Guaranteed energy savings contract" means a contract 
178.3   for the evaluation and recommendations of energy conservation 
178.4   measures, and for one or more energy conservation measures.  The 
178.5   contract must provide that all payments, except obligations on 
178.6   termination of the contract before its expiration, are to be 
178.7   made over time, but not to exceed 15 years from the date of 
178.8   final installation, and the savings are guaranteed to the extent 
178.9   necessary to make payments for the systems. 
178.10     (c) "Qualified provider" means a person or business 
178.11  experienced in the design, implementation, and installation of 
178.12  energy conservation measures.  A qualified provider to whom the 
178.13  contract is awarded shall give a sufficient bond to the school 
178.14  district for its faithful performance. 
178.15     (d) "Commissioner" means the commissioner of public service 
178.16  commerce through the state energy office. 
178.17     Sec. 38.  Minnesota Statutes 2000, section 123B.65, 
178.18  subdivision 3, is amended to read: 
178.19     Subd. 3.  [EVALUATION BY COMMISSIONER.] Upon request of the 
178.20  board, the commissioner of public service shall review the 
178.21  report required in subdivision 2 and provide an evaluation to 
178.22  the board on the proposed contract within 15 working days of 
178.23  receiving the report.  In evaluating the proposed contract, the 
178.24  commissioner shall determine whether the detailed calculations 
178.25  of the costs and of the energy and operating savings are 
178.26  accurate and reasonable.  The commissioner may request 
178.27  additional information about a proposed contract as the 
178.28  commissioner deems necessary.  If the commissioner requests 
178.29  additional information, the commissioner shall not be required 
178.30  to submit an evaluation to the board within fewer than ten 
178.31  working days of receiving the requested information.  
178.32     Sec. 39.  Minnesota Statutes 2000, section 123B.65, 
178.33  subdivision 5, is amended to read: 
178.34     Subd. 5.  [PAYMENT OF REVIEW EXPENSES.] The commissioner of 
178.35  public service may charge a district requesting services under 
178.36  subdivisions 3 and 4 actual costs incurred by the department 
179.1   of public service commerce while conducting the review, or 
179.2   one-half percent of the total identified project cost, whichever 
179.3   is less.  Before conducting the review, the commissioner shall 
179.4   notify a district requesting review services that expenses will 
179.5   be charged to the district.  The commissioner shall bill the 
179.6   district upon completion of the contract review.  Money 
179.7   collected by the commissioner under this subdivision must be 
179.8   deposited in the general fund.  A district may include the cost 
179.9   of a review by the commissioner under subdivision 3 in a 
179.10  contract made pursuant to this section. 
179.11     Sec. 40.  Minnesota Statutes 2000, section 161.45, 
179.12  subdivision 1, is amended to read: 
179.13     Subdivision 1.  [RULES.] Electric transmission, telephone 
179.14  or telegraph lines, pole lines, community antenna television 
179.15  lines, railways, ditches, sewers, water, heat or gas mains, gas 
179.16  and other pipe lines, flumes, or other structures which, under 
179.17  the laws of this state or the ordinance of any city, may be 
179.18  constructed, placed, or maintained across or along any trunk 
179.19  highway, or the roadway thereof, by any person, persons, 
179.20  corporation, or any subdivision of the state, may be so 
179.21  maintained or hereafter constructed only in accordance with such 
179.22  rules as may be prescribed by the commissioner who shall have 
179.23  power to prescribe and enforce reasonable rules with reference 
179.24  to the placing and maintaining along, across, or in any such 
179.25  trunk highway of any of the utilities hereinbefore set forth.  
179.26  Nothing herein shall restrict the actions of public authorities 
179.27  in extraordinary emergencies nor restrict the power and 
179.28  authority of the department of public service commissioner of 
179.29  commerce as provided for in other provisions of law.  Provided, 
179.30  however, that in the event any local subdivision of government 
179.31  has enacted ordinances relating to the method of installation or 
179.32  requiring underground installation of such community antenna 
179.33  television lines, the permit granted by the commissioner of 
179.34  transportation shall require compliance with such local 
179.35  ordinance. 
179.36     Sec. 41.  Minnesota Statutes 2000, section 168.61, 
180.1   subdivision 1, is amended to read: 
180.2      Subdivision 1.  [DEFINITION.] The term "intercity bus" as 
180.3   used in sections 168.61 to 168.65 means a motor bus as defined 
180.4   in section 168.011, subdivision 9, which is owned or operated by 
180.5   either a resident or nonresident of Minnesota in interstate 
180.6   commerce under authority of the Interstate Commerce Commission 
180.7   or in combined interstate and intrastate commerce under 
180.8   authority of the Interstate Commerce Commission and the 
180.9   department of public service transportation of Minnesota, as a 
180.10  result of which operation such bus operates both within and 
180.11  without the territorial limits of the state of Minnesota.  
180.12     Sec. 42.  Minnesota Statutes 2000, section 169.073, is 
180.13  amended to read: 
180.14     169.073 [PROHIBITED LIGHT OR SIGNAL.] 
180.15     (a) No person or corporation shall place, maintain or 
180.16  display any red light or red sign, signal, or lighting device or 
180.17  maintain it in view of any highway or any line of railroad on or 
180.18  over which trains are operated in such a way as to interfere 
180.19  with the effectiveness or efficiency of any highway 
180.20  traffic-control device or signals or devices used in the 
180.21  operation of a railroad.  Upon written notice from the 
180.22  commissioner of transportation, a person or corporation 
180.23  maintaining or owning or displaying a prohibited light shall 
180.24  promptly remove it, or change the color of it to some other 
180.25  color than red.  Where a prohibited light or sign interferes 
180.26  with the effectiveness or efficiency of the signals or devices 
180.27  used in the operation of a railroad, the department of public 
180.28  service transportation may cause the removal of it and the 
180.29  department may issue notices and orders for its removal.  The 
180.30  department shall proceed as provided in sections 216.13, 216.14, 
180.31  216.15, 216.16, and 216.17, with a right of appeal to the 
180.32  aggrieved party in accordance with chapter 14. 
180.33     (b) No person or corporation shall maintain or display any 
180.34  light after written notice from the commissioner of 
180.35  transportation or the department of public service that the 
180.36  light constitutes a traffic hazard and that it has ordered the 
181.1   removal thereof. 
181.2      Sec. 43.  Minnesota Statutes 2000, section 174.03, 
181.3   subdivision 7, is amended to read: 
181.4      Subd. 7.  [ENERGY CONSERVATION.] The commissioner, in 
181.5   cooperation with the commissioner of public service commerce 
181.6   through the state energy office, shall evaluate all modes of 
181.7   transportation in terms of their levels of energy consumption.  
181.8   The commissioner of public service commerce shall provide the 
181.9   commissioner with projections of the future availability of 
181.10  energy resources for transportation.  The commissioner shall use 
181.11  the results of this evaluation and the projections to evaluate 
181.12  alternative programs and facilities to be included in the 
181.13  statewide plan and to otherwise promote the more efficient use 
181.14  of energy resources for transportation purposes. 
181.15     Sec. 44.  Minnesota Statutes 2000, section 181.30, is 
181.16  amended to read: 
181.17     181.30 [DUTY OF DEPARTMENT OF PUBLIC SERVICE.] 
181.18     Any officer of any railroad company in the state violating 
181.19  any of the provisions of section 181.29 shall be guilty of a 
181.20  misdemeanor; and, upon conviction, punished by a fine of not 
181.21  less than $100, and not more than $700, for each offense, or by 
181.22  imprisonment in the county jail not more than 60 days, or both 
181.23  fine and imprisonment, at the discretion of the court.  It shall 
181.24  be the duty of the state department of public 
181.25  service transportation, upon complaint properly filed with it 
181.26  alleging a violation of section 181.29, to make a full 
181.27  investigation in relation thereto, and for such purpose it shall 
181.28  have the power to administer oaths, interrogate witnesses, take 
181.29  testimony and require the production of books and papers, and if 
181.30  such report shall show a violation of the provisions of section 
181.31  181.29, the department of public service transportation shall, 
181.32  through the attorney general, begin the prosecution of all 
181.33  parties against whom evidence of such violation is found; but 
181.34  section 181.29 shall not be construed to prevent any other 
181.35  person from beginning prosecution for the violation of the 
181.36  provisions thereof.  
182.1      Sec. 45.  Minnesota Statutes 2000, section 216A.01, is 
182.2   amended to read: 
182.3      216A.01 [ESTABLISHMENT OF DEPARTMENT AND COMMISSION; POWERS 
182.4   AND DUTIES.] 
182.5      There are hereby created and established the department of 
182.6   public service, and the public utilities commission.  The 
182.7   department of public service commerce shall have and possess all 
182.8   of the rights and powers and perform all of the duties vested in 
182.9   it by this chapter.  The public utilities commission shall have 
182.10  and possess all of the rights and powers and perform all of the 
182.11  duties vested in it by this chapter, and those formerly vested 
182.12  by law in the railroad and warehouse commission. 
182.13     Sec. 46.  Minnesota Statutes 2000, section 216A.035, is 
182.14  amended to read: 
182.15     216A.035 [CONFLICT OF INTEREST.] 
182.16     (a) No person, while a member of the public utilities 
182.17  commission, while acting as executive secretary of the 
182.18  commission, or while employed in a professional capacity by the 
182.19  commission, shall receive any income, other than dividends or 
182.20  other earnings from a mutual fund or trust if these earnings do 
182.21  not constitute a significant portion of the person's income, 
182.22  directly or indirectly from any public utility or other 
182.23  organization subject to regulation by the commission. 
182.24     (b) No person is eligible to be appointed as a member of 
182.25  the commission if the person has been employed with an entity, 
182.26  or an affiliated company of an entity, that is subject to rate 
182.27  regulation by the commission within one year from the date when 
182.28  the person's term on the commission will begin. 
182.29     (c) No person who is an employee of the public service 
182.30  department of commerce shall participate in any manner in any 
182.31  decision or action of the commission where that person has a 
182.32  direct or indirect financial interest.  Each commissioner or 
182.33  employee of the public service department who is in the general 
182.34  professional, supervisory, or technical units established in 
182.35  section 179A.10 or who is a professional, supervisory, or 
182.36  technical employee defined as confidential in section 179A.03, 
183.1   subdivision 4, or who is a management classification employee 
183.2   and whose duties are related to public utilities or 
183.3   transportation utility, telephone company, or telecommunications 
183.4   company regulation shall report to the campaign finance and 
183.5   public disclosure board annually before April 15 any interest in 
183.6   an industry or business regulated by the commission.  Each 
183.7   commissioner shall file a statement of economic interest as 
183.8   required by section 10A.09 with the campaign finance and public 
183.9   disclosure board and the public utilities commission before 
183.10  taking office.  The statement of economic interest must state 
183.11  any interest that the commissioner has in an industry or 
183.12  business regulated by the commission. 
183.13     (d) A professional employee of the commission or department 
183.14  must immediately disclose to the commission or to the 
183.15  commissioner of the department, respectively, any communication, 
183.16  direct or indirect, with a person who is a party to a pending 
183.17  proceeding before the commission regarding future benefits, 
183.18  compensation, or employment to be received from that person. 
183.19     Sec. 47.  Minnesota Statutes 2000, section 216A.036, is 
183.20  amended to read: 
183.21     216A.036 [EMPLOYMENT RESTRICTIONS.] 
183.22     (a) A person who serves as (1) a commissioner of the public 
183.23  utilities commission, (2) commissioner of the department of 
183.24  public service commerce, or (3) deputy commissioner of the 
183.25  department commerce, shall not, while employed with or within 
183.26  one year after leaving the commission, or department, accept 
183.27  employment with, receive compensation directly or indirectly 
183.28  from, or enter into a contractual relationship with an entity, 
183.29  or an affiliated company of an entity, that is subject to rate 
183.30  regulation by the commission. 
183.31     (b) An entity or an affiliated company of an entity that is 
183.32  subject to rate regulation by the commission, or a person acting 
183.33  on behalf of the entity, shall not negotiate or offer to employ 
183.34  or compensate a commissioner of the public utilities commission, 
183.35  the commissioner of public service commerce, or the deputy 
183.36  commissioner of commerce, while the person is so employed or 
184.1   within one year after the person leaves that employment. 
184.2      (c) For the purposes of this section, "affiliated company" 
184.3   means a company that controls, is controlled by, or is under 
184.4   common control with an entity subject to rate regulation by the 
184.5   commission. 
184.6      (d) A person who violates this section is subject to a 
184.7   civil penalty not to exceed $10,000 for each violation.  The 
184.8   attorney general may bring an action in district court to 
184.9   collect the penalties provided in this section.  
184.10     Sec. 48.  Minnesota Statutes 2000, section 216A.05, 
184.11  subdivision 1, is amended to read: 
184.12     Subdivision 1.  [LEGISLATIVE AND QUASI-JUDICIAL FUNCTIONS.] 
184.13  The functions of the commission shall be legislative and 
184.14  quasi-judicial in nature.  It may make such investigations and 
184.15  determinations, hold such hearings, prescribe such rules and 
184.16  issue such orders with respect to the control and conduct of the 
184.17  businesses coming within its jurisdiction as the legislature 
184.18  itself might make but only as it shall from time to time 
184.19  authorize.  It may adjudicate all proceedings brought before it 
184.20  in which the violation of any law or rule administered by the 
184.21  department of commerce is alleged. 
184.22     Sec. 49.  Minnesota Statutes 2000, section 216A.07, 
184.23  subdivision 1, is amended to read: 
184.24     Subdivision 1.  [ADMINISTRATIVE COMMISSIONER'S DUTIES.] The 
184.25  commissioner shall be the executive and administrative head of 
184.26  the public service department and shall have and possess of 
184.27  commerce has all the rights and powers and shall perform all the 
184.28  duties relating to the administrative function of the department 
184.29  as set forth in this chapter.  The commissioner may: 
184.30     (1) prepare all forms or blanks for the purpose of 
184.31  obtaining information which the commissioner may deem necessary 
184.32  or useful in the proper exercise of the authority and duties of 
184.33  the commissioner in connection with regulated businesses; 
184.34     (2) prescribe the time and manner within which forms or 
184.35  blanks shall be filed with the department; 
184.36     (3) inspect at all reasonable times, and copy the books, 
185.1   records, memoranda and correspondence or other documents and 
185.2   records of any person relating to any regulated business; and 
185.3      (4) cause the deposition to be taken of any person 
185.4   concerning the business and affairs of any business regulated by 
185.5   the department.  Information sought through said deposition 
185.6   shall be for a lawfully authorized purpose and shall be relevant 
185.7   and material to the investigation or hearing before the 
185.8   commission.  Information obtained from said deposition shall be 
185.9   used by the department only for a lawfully authorized purpose 
185.10  and pursuant to powers and responsibilities conferred upon the 
185.11  department.  Said deposition is to be taken in the manner 
185.12  prescribed by law for taking depositions in civil actions in the 
185.13  district court. 
185.14     Sec. 50.  Minnesota Statutes 2000, section 216A.08, is 
185.15  amended to read: 
185.16     216A.08 [CONTINUATION OF RULES OF PUBLIC SERVICE 
185.17  DEPARTMENT.] 
185.18     All valid rules, orders, and directives heretofore 
185.19  enforced, issued, or promulgated by the public service 
185.20  department under authority of chapter 216, 216A, 216B, 216C, 
185.21  218, 219, 221, or 222, 237, 238, or 239 shall remain and 
185.22  continue in force and effect until repealed, modified, or 
185.23  superseded by duly authorized rules, orders, or directives of 
185.24  the public utilities commission or, the commissioner of 
185.25  transportation, or the commissioner of commerce. 
185.26     Sec. 51.  Minnesota Statutes 2000, section 216A.085, 
185.27  subdivision 3, is amended to read: 
185.28     Subd. 3.  [STAFFING.] The intervention office shall be 
185.29  under the control and supervision of the commissioner of the 
185.30  department of public service commerce.  The commissioner may 
185.31  hire staff or contract for outside services as needed to carry 
185.32  out the purposes of this section.  The attorney general shall 
185.33  act as counsel in all intervention proceedings.  
185.34     Sec. 52.  Minnesota Statutes 2000, section 216B.02, 
185.35  subdivision 1, is amended to read: 
185.36     Subdivision 1.  [SCOPE.] For the purposes of Laws 1974, 
186.1   chapter 429 this chapter, the terms defined in this section have 
186.2   the meanings given them. 
186.3      Sec. 53.  Minnesota Statutes 2000, section 216B.02, 
186.4   subdivision 7, is amended to read: 
186.5      Subd. 7.  [COMMISSION.] "Commission" means the public 
186.6   utilities commission of the department of public service. 
186.7      Sec. 54.  Minnesota Statutes 2000, section 216B.02, 
186.8   subdivision 8, is amended to read: 
186.9      Subd. 8.  [DEPARTMENT.] "Department" means the department 
186.10  of public service commerce of the state of Minnesota. 
186.11     Sec. 55.  Minnesota Statutes 2000, section 216B.16, 
186.12  subdivision 1, is amended to read: 
186.13     Subdivision 1.  [NOTICE.] Unless the commission otherwise 
186.14  orders, no public utility shall change a rate which has been 
186.15  duly established under this chapter, except upon 60 days' notice 
186.16  to the commission.  The notice shall include statements of 
186.17  facts, expert opinions, substantiating documents, and exhibits, 
186.18  supporting the change requested, and state the change proposed 
186.19  to be made in the rates then in force and the time when the 
186.20  modified rates will go into effect.  If the filing utility does 
186.21  not have an approved conservation improvement plan on file with 
186.22  the department of public service, it shall also include in its 
186.23  notice an energy conservation plan pursuant to section 
186.24  216B.241.  The filing utility shall give written notice, as 
186.25  approved by the commission, of the proposed change to the 
186.26  governing body of each municipality and county in the area 
186.27  affected.  All proposed changes shall be shown by filing new 
186.28  schedules or shall be plainly indicated upon schedules on file 
186.29  and in force at the time. 
186.30     Sec. 56.  Minnesota Statutes 2000, section 216B.16, 
186.31  subdivision 2, is amended to read: 
186.32     Subd. 2.  [SUSPENSION OF PROPOSED RATE; HEARING; FINAL 
186.33  DETERMINATION DEFINED.] (a) Whenever there is filed with the 
186.34  commission a schedule modifying or resulting in a change in any 
186.35  rates then in force as provided in subdivision 1, the commission 
186.36  may suspend the operation of the schedule by filing with the 
187.1   schedule of rates and delivering to the affected utility a 
187.2   statement in writing of its reasons for the suspension at any 
187.3   time before the rates become effective.  The suspension shall 
187.4   not be for a longer period than ten months beyond the initial 
187.5   filing date except as provided in this subdivision or 
187.6   subdivision 1a.  
187.7      (b) During the suspension the commission shall determine 
187.8   whether all questions of the reasonableness of the rates 
187.9   requested raised by persons deemed interested or by the 
187.10  administrative division of the department of public service can 
187.11  be resolved to the satisfaction of the commission.  If the 
187.12  commission finds that all significant issues raised have not 
187.13  been resolved to its satisfaction, or upon petition by ten 
187.14  percent of the affected customers or 250 affected customers, 
187.15  whichever is less, it shall refer the matter to the office of 
187.16  administrative hearings with instructions for a public hearing 
187.17  as a contested case pursuant to chapter 14, except as otherwise 
187.18  provided in this section. 
187.19     (c) The commission may order that the issues presented by 
187.20  the proposed rate changes be bifurcated into two separate 
187.21  hearings as follows:  (1) determination of the utility's revenue 
187.22  requirements and (2) determination of the rate design.  Upon 
187.23  issuance of both administrative law judge reports, the issues 
187.24  shall again be joined for consideration and final determination 
187.25  by the commission. 
187.26     (d) All prehearing discovery activities of state agency 
187.27  intervenors shall be consolidated and conducted by the 
187.28  department of public service commerce. 
187.29     (e) If the commission does not make a final determination 
187.30  concerning a schedule of rates within ten months after the 
187.31  initial filing date, the schedule shall be deemed to have been 
187.32  approved by the commission; except if: 
187.33     (1) an extension of the procedural schedule has been 
187.34  granted under subdivision 1a, in which case the schedule of 
187.35  rates is deemed to have been approved by the commission on the 
187.36  last day of the extended period of suspension; or 
188.1      (2) a settlement has been submitted to and rejected by the 
188.2   commission and the commission does not make a final 
188.3   determination concerning the schedule of rates, the schedule of 
188.4   rates is deemed to have been approved 60 days after the initial 
188.5   or, if applicable, the extended period of suspension. 
188.6      (f) If the commission finds that it has insufficient time 
188.7   during the suspension period to make a final determination of a 
188.8   case involving changes in general rates because of the need to 
188.9   make a final determination of another previously filed case 
188.10  involving changes in general rates under this section or section 
188.11  237.075, the commission may extend the suspension period to the 
188.12  extent necessary to allow itself 20 working days to make the 
188.13  final determination after it has made a final determination in 
188.14  the previously filed case.  An extension of the suspension 
188.15  period under this paragraph does not alter the setting of 
188.16  interim rates under subdivision 3. 
188.17     (g) For the purposes of this section, "final determination" 
188.18  means the initial decision of the commission and not any order 
188.19  which may be entered by the commission in response to a petition 
188.20  for rehearing or other further relief.  The commission may 
188.21  further suspend rates until it determines all those petitions. 
188.22     Sec. 57.  Minnesota Statutes 2000, section 216B.16, 
188.23  subdivision 6b, is amended to read: 
188.24     Subd. 6b.  [ENERGY CONSERVATION IMPROVEMENT.] (a) Except as 
188.25  otherwise provided in this subdivision, all investments and 
188.26  expenses of a public utility as defined in section 216B.241, 
188.27  subdivision 1, paragraph (e), incurred in connection with energy 
188.28  conservation improvements shall be recognized and included by 
188.29  the commission in the determination of just and reasonable rates 
188.30  as if the investments and expenses were directly made or 
188.31  incurred by the utility in furnishing utility service. 
188.32     (b) After December 31, 1999, investments and expenses for 
188.33  energy conservation improvements shall not be included by the 
188.34  commission in the determination of just and reasonable electric 
188.35  and gas rates for retail electric and gas service provided to 
188.36  large electric customer facilities that have been exempted by 
189.1   the commissioner of the department of public service pursuant to 
189.2   section 216B.241, subdivision 1a, paragraph (b).  However, no 
189.3   public utility shall be prevented from recovering its investment 
189.4   in energy conservation improvements from all customers that were 
189.5   made on or before December 31, 1999, in compliance with the 
189.6   requirements of section 216B.241.  
189.7      (c) The commission may permit a public utility to file rate 
189.8   schedules providing for annual recovery of the costs of energy 
189.9   conservation improvements.  These rate schedules may be 
189.10  applicable to less than all the customers in a class of retail 
189.11  customers if necessary to reflect the differing minimum spending 
189.12  requirements of section 216B.241, subdivision 1a.  After 
189.13  December 31, 1999, the commission shall allow a public utility, 
189.14  without requiring a general rate filing under this section, to 
189.15  reduce the electric and gas rates applicable to large electric 
189.16  customer facilities that have been exempted by the commissioner 
189.17  of the department of public service pursuant to section 
189.18  216B.241, subdivision 1a, paragraph (b), by an amount that 
189.19  reflects the elimination of energy conservation improvement 
189.20  investments or expenditures for those facilities required on or 
189.21  before December 31, 1999.  In the event that the commission has 
189.22  set electric or gas rates based on the use of an accounting 
189.23  methodology that results in the cost of conservation 
189.24  improvements being recovered from utility customers over a 
189.25  period of years, the rate reduction may occur in a series of 
189.26  steps to coincide with the recovery of balances due to the 
189.27  utility for conservation improvements made by the utility on or 
189.28  before December 31, 1999.  
189.29     Sec. 58.  Minnesota Statutes 2000, section 216B.162, 
189.30  subdivision 7, is amended to read: 
189.31     Subd. 7.  [COMMISSION DETERMINATION.] (a) Except as 
189.32  provided under subdivision 6, competitive rates offered by 
189.33  electric utilities under this section must be filed with the 
189.34  commission and must be approved, modified, or rejected by the 
189.35  commission within 90 days.  The utility's filing must include 
189.36  statements of fact demonstrating that the proposed rates meet 
190.1   the standards of this subdivision.  The filing must be served on 
190.2   the department of public service and the office of the attorney 
190.3   general at the same time as it is served on the commission. 
190.4      (b) In reviewing a specific rate proposal, the commission 
190.5   shall determine: 
190.6      (1) that the rate meets the terms and conditions in 
190.7   subdivision 4, unless the commission determines that waiver of 
190.8   one or more terms and conditions would be in the public 
190.9   interest; 
190.10     (2) that the consumer can obtain its energy requirements 
190.11  from an energy supplier not rate-regulated by the commission 
190.12  under section 216B.16; 
190.13     (3) that the customer is not likely to take service from 
190.14  the electric utility seeking to offer the competitive rate if 
190.15  the customer was charged the electric utility's standard 
190.16  tariffed rate; and 
190.17     (4) that after consideration of environmental and 
190.18  socioeconomic impacts it is in the best interest of all other 
190.19  customers to offer the competitive rate to the customer subject 
190.20  to effective competition. 
190.21     (c) If the commission approves the competitive rate, it 
190.22  becomes effective as agreed to by the electric utility and the 
190.23  customer.  If the competitive rate is modified by the 
190.24  commission, the commission shall issue an order modifying the 
190.25  competitive rate subject to the approval of the electric utility 
190.26  and the customer.  Each party has ten days in which to reject 
190.27  the proposed modification.  If no party rejects the proposed 
190.28  modification, the commissioner's order becomes final.  If either 
190.29  party rejects the commission's proposed modification, the 
190.30  electric utility, on its behalf or on the behalf of the 
190.31  customer, may submit to the commission a modified version of the 
190.32  commission's proposal.  The commission shall accept or reject 
190.33  the modified version within 30 days.  If the commission rejects 
190.34  the competitive rate, it shall issue an order indicating the 
190.35  reasons for the rejection. 
190.36     Sec. 59.  Minnesota Statutes 2000, section 216B.162, 
191.1   subdivision 11, is amended to read: 
191.2      Subd. 11.  [COMMISSION DETERMINATION.] (a) Proposals for 
191.3   discretionary rate reductions offered by utilities must be filed 
191.4   with the commission, with copies of the filing served upon the 
191.5   department of public service and the office of attorney general 
191.6   at the same time it is served upon the commission.  The 
191.7   commission shall review the proposals according to procedures 
191.8   developed under section 216B.05, subdivision 2a.  The commission 
191.9   shall not approve discretionary rate reductions offered by 
191.10  public utilities that do not have an accepted resource plan on 
191.11  file with the commission.  The commission shall not approve 
191.12  discretionary rate reductions unless the utility has made the 
191.13  customer aware of all cost-effective opportunities for energy 
191.14  efficiency improvements offered by the utility. 
191.15     (b) Public utilities that provide service under 
191.16  discretionary rate reductions shall not, through increased 
191.17  revenue requirements or through prospective rate design changes, 
191.18  recover any revenues foregone due to the discretionary rate 
191.19  reductions, nor shall the commission grant such recovery. 
191.20     Sec. 60.  Minnesota Statutes 2000, section 216B.1675, 
191.21  subdivision 9, is amended to read: 
191.22     Subd. 9.  [COMMISSION FINDINGS.] The commission shall issue 
191.23  findings concerning the appropriateness of the proposed plan.  
191.24  The commission may approve, reject, or modify the plan in a 
191.25  manner which meets the requirements of this section.  An 
191.26  approved or modified plan becomes effective unless the plan is 
191.27  withdrawn by the utility within 30 days of a final appealable 
191.28  order.  If the utility withdraws an approved or modified plan, 
191.29  all of the administrative costs related to the plan that are 
191.30  charged by the commission or the department of public service to 
191.31  the utility may not be recovered from ratepayers in current or 
191.32  subsequent rates.  A utility that withdraws an approved or 
191.33  modified plan may not file another plan under this section for a 
191.34  period of one year following the withdrawal of the plan. 
191.35     Sec. 61.  Minnesota Statutes 2000, section 216B.241, 
191.36  subdivision 1a, as amended by Laws 2001, chapter 212, article 8, 
192.1   section 5, is amended to read: 
192.2      Subd. 1a.  [INVESTMENT, EXPENDITURE, AND CONTRIBUTION; 
192.3   PUBLIC UTILITY.] (a) For purposes of this subdivision and 
192.4   subdivision 2, "public utility" has the meaning given it in 
192.5   section 216B.02, subdivision 4.  Each public utility shall spend 
192.6   and invest for energy conservation improvements under this 
192.7   subdivision and subdivision 2 the following amounts: 
192.8      (1) for a utility that furnishes gas service, 0.5 percent 
192.9   of its gross operating revenues from service provided in the 
192.10  state; 
192.11     (2) for a utility that furnishes electric service, 1.5 
192.12  percent of its gross operating revenues from service provided in 
192.13  the state; and 
192.14     (3) for a utility that furnishes electric service and that 
192.15  operates a nuclear-powered electric generating plant within the 
192.16  state, two percent of its gross operating revenues from service 
192.17  provided in the state. 
192.18  For purposes of this paragraph (a), "gross operating revenues" 
192.19  do not include revenues from large electric customer facilities 
192.20  exempted by the commissioner under paragraph (b). 
192.21     (b) The owner of a large electric customer facility may 
192.22  petition the commissioner to exempt both electric and gas 
192.23  utilities serving the large energy customer facility from the 
192.24  investment and expenditure requirements of paragraph (a) with 
192.25  respect to retail revenues attributable to the facility.  At a 
192.26  minimum, the petition must be supported by evidence relating to 
192.27  competitive or economic pressures on the customer and a showing 
192.28  by the customer of reasonable efforts to identify, evaluate, and 
192.29  implement cost-effective conservation improvements at the 
192.30  facility.  If a petition is filed on or before October 1 of any 
192.31  year, the order of the commissioner to exempt revenues 
192.32  attributable to the facility can be effective no earlier than 
192.33  January 1 of the following year.  The commissioner shall not 
192.34  grant an exemption if the commissioner determines that granting 
192.35  the exemption is contrary to the public interest.  The 
192.36  commissioner may, after investigation, rescind any exemption 
193.1   granted under this paragraph upon a determination that 
193.2   cost-effective energy conservation improvements are available at 
193.3   the large electric customer facility.  For the purposes of this 
193.4   paragraph, "cost-effective" means that the projected total cost 
193.5   of the energy conservation improvement at the large electric 
193.6   customer facility is less than the projected present value of 
193.7   the energy and demand savings resulting from the energy 
193.8   conservation improvement.  For the purposes of investigations by 
193.9   the commissioner under this paragraph, the owner of any large 
193.10  electric customer facility shall, upon request, provide the 
193.11  commissioner with updated information comparable to that 
193.12  originally supplied in or with the owner's original petition 
193.13  under this paragraph. 
193.14     (c) The commissioner may require investments or spending 
193.15  greater than the amounts required under this subdivision for a 
193.16  public utility whose most recent advance forecast required under 
193.17  section 216B.2422 or 216C.17 projects a peak demand deficit of 
193.18  100 megawatts or greater within five years under mid-range 
193.19  forecast assumptions.  
193.20     (d) A public utility or owner of a large electric customer 
193.21  facility may appeal a decision of the commissioner under 
193.22  paragraph (b) or (c) to the commission under subdivision 2.  In 
193.23  reviewing a decision of the commissioner under paragraph (b) or 
193.24  (c), the commission shall rescind the decision if it finds that 
193.25  the required investments or spending will: 
193.26     (1) not result in cost-effective energy conservation 
193.27  improvements; or 
193.28     (2) otherwise not be in the public interest. 
193.29     (e) Each utility shall determine what portion of the amount 
193.30  it sets aside for conservation improvement will be used for 
193.31  conservation improvements under subdivision 2 and what portion 
193.32  it will contribute to the energy and conservation account 
193.33  established in subdivision 2a.  A public utility may propose to 
193.34  the commissioner to designate that all or a portion of funds 
193.35  contributed to the account established in subdivision 2a be used 
193.36  for research and development projects that can best be 
194.1   implemented on a statewide basis.  Contributions must be 
194.2   remitted to the commissioner of public service by February 1 of 
194.3   each year.  Nothing in this subdivision prohibits a public 
194.4   utility from spending or investing for energy conservation 
194.5   improvement more than required in this subdivision. 
194.6      Sec. 62.  Minnesota Statutes 2000, section 216B.241, 
194.7   subdivision 1b, as amended by Laws 2001, chapter 212, article 8, 
194.8   section 6, is amended to read: 
194.9      Subd. 1b.  [CONSERVATION IMPROVEMENT BY COOPERATIVE 
194.10  ASSOCIATION OR MUNICIPALITY.] (a) This subdivision applies to: 
194.11     (1) a cooperative electric association that provides retail 
194.12  service to its members; 
194.13     (2) a municipality that provides electric service to retail 
194.14  customers; and 
194.15     (3) a municipality with gross operating revenues in excess 
194.16  of $5,000,000 from sales of natural gas to retail customers.  
194.17     (b) Each cooperative electric association and municipality 
194.18  subject to this subdivision shall spend and invest for energy 
194.19  conservation improvements under this subdivision the following 
194.20  amounts: 
194.21     (1) for a municipality, 0.5 percent of its gross operating 
194.22  revenues from the sale of gas and 1.5 percent of its gross 
194.23  operating revenues from the sale of electricity, excluding gross 
194.24  operating revenues from electric and gas service provided in the 
194.25  state to large electric customer facilities; and 
194.26     (2) for a cooperative electric association, 1.5 percent of 
194.27  its gross operating revenues from service provided in the state, 
194.28  excluding gross operating revenues from service provided in the 
194.29  state to large electric customer facilities indirectly through a 
194.30  distribution cooperative electric association. 
194.31     (c) Each municipality and cooperative electric association 
194.32  subject to this subdivision shall identify and implement energy 
194.33  conservation improvement spending and investments that are 
194.34  appropriate for the municipality or association, except that a 
194.35  municipality or association may not spend or invest for energy 
194.36  conservation improvements that directly benefit a large electric 
195.1   customer facility for which the commissioner has issued an 
195.2   exemption under subdivision 1a, paragraph (b). 
195.3      (d) Each municipality and cooperative electric association 
195.4   subject to this subdivision may spend and invest annually up to 
195.5   ten percent of the total amount required to be spent and 
195.6   invested on energy conservation improvements under this 
195.7   subdivision on research and development projects that meet the 
195.8   definition of energy conservation improvement in subdivision 1 
195.9   and that are funded directly by the municipality or cooperative 
195.10  electric association.  
195.11     (e) Load management activities that do not reduce energy 
195.12  use but that increase the efficiency of the electric system may 
195.13  be used to meet the following percentage of the conservation 
195.14  investment and spending requirements of this subdivision: 
195.15     (1) 2002 - 90 percent; 
195.16     (2) 2003 - 80 percent; 
195.17     (3) 2004 - 65 percent; and 
195.18     (4) 2005 and thereafter - 50 percent. 
195.19     (f) A generation and transmission cooperative electric 
195.20  association that provides energy services to cooperative 
195.21  electric associations that provide electric service at retail to 
195.22  consumers may invest in energy conservation improvements on 
195.23  behalf of the associations it serves and may fulfill the 
195.24  conservation, spending, reporting, and energy savings goals on 
195.25  an aggregate basis.  A municipal power agency or other 
195.26  not-for-profit entity that provides energy service to municipal 
195.27  utilities that provide electric service at retail may invest in 
195.28  energy conservation improvements on behalf of the municipal 
195.29  utilities it serves and may fulfill the conservation, spending, 
195.30  reporting, and energy savings goals on an aggregate basis, under 
195.31  an agreement between the municipal power agency or 
195.32  not-for-profit entity and each municipal utility for funding the 
195.33  investments. 
195.34     (g) By June 1, 2002, and every two years thereafter, each 
195.35  municipality or cooperative shall file an overview of its 
195.36  conservation improvement plan with the commissioner.  With this 
196.1   overview, the municipality or cooperative shall also provide an 
196.2   evaluation to the commissioner detailing its energy conservation 
196.3   improvement spending and investments for the previous period.  
196.4   The evaluation must briefly describe each conservation program 
196.5   and must specify the energy savings or increased efficiency in 
196.6   the use of energy within the service territory of the utility or 
196.7   association that is the result of the spending and investments.  
196.8   The evaluation must analyze the cost-effectiveness of the 
196.9   utility's or association's conservation programs, using a list 
196.10  of baseline energy and capacity savings assumptions developed in 
196.11  consultation with the department. 
196.12  The commissioner shall review each evaluation and make 
196.13  recommendations, where appropriate, to the municipality or 
196.14  association to increase the effectiveness of conservation 
196.15  improvement activities.  Up to three percent of a utility's 
196.16  conservation spending obligation under this section may be used 
196.17  for program pre-evaluation, testing, and monitoring and program 
196.18  evaluation.  
196.19     (h) The commissioner shall also review each evaluation for 
196.20  whether a portion of the money spent on residential conservation 
196.21  improvement programs is devoted to programs that directly 
196.22  address the needs of renters and low-income persons unless an 
196.23  insufficient number of appropriate programs are available.  For 
196.24  the purposes of this subdivision and subdivision 2, "low-income" 
196.25  means an income at or below 50 percent of the state median 
196.26  income.  
196.27     (i) As part of its spending for conservation improvement, a 
196.28  municipality or association may contribute to the energy and 
196.29  conservation account.  A municipality or association may propose 
196.30  to the commissioner to designate that all or a portion of funds 
196.31  contributed to the account be used for research and development 
196.32  projects that can best be implemented on a statewide basis.  Any 
196.33  amount contributed must be remitted to the commissioner of 
196.34  public service by February 1 of each year. 
196.35     Sec. 63.  Minnesota Statutes 2000, section 216B.241, 
196.36  subdivision 2b, is amended to read: 
197.1      Subd. 2b.  [RECOVERY OF EXPENSES.] The commission shall 
197.2   allow a utility to recover expenses resulting from a 
197.3   conservation improvement program required by the department and 
197.4   contributions to the energy and conservation account, unless the 
197.5   recovery would be inconsistent with a financial incentive 
197.6   proposal approved by the commission.  In addition, a utility may 
197.7   file annually, or the public utilities commission may require 
197.8   the utility to file, and the commission may approve, rate 
197.9   schedules containing provisions for the automatic adjustment of 
197.10  charges for utility service in direct relation to changes in the 
197.11  expenses of the utility for real and personal property taxes, 
197.12  fees, and permits, the amounts of which the utility cannot 
197.13  control.  A public utility is eligible to file for adjustment 
197.14  for real and personal property taxes, fees, and permits under 
197.15  this subdivision only if, in the year previous to the year in 
197.16  which it files for adjustment, it has spent or invested at least 
197.17  1.75 percent of its gross revenues from provision of electric 
197.18  service, excluding gross operating revenues from electric 
197.19  service provided in the state to large electric customer 
197.20  facilities for which the commissioner of public service has 
197.21  issued an exemption under subdivision 1a, paragraph (b), and 0.6 
197.22  percent of its gross revenues from provision of gas service, 
197.23  excluding gross operating revenues from gas services provided in 
197.24  the state to large electric customer facilities for which the 
197.25  commissioner of public service has issued an exemption under 
197.26  subdivision 1a, paragraph (b), for that year for energy 
197.27  conservation improvements under this section. 
197.28     Sec. 64.  Minnesota Statutes 2000, section 216C.01, 
197.29  subdivision 1, is amended to read: 
197.30     Subdivision 1.  [APPLICABILITY.] The definitions in this 
197.31  section apply to sections 216C.02, 216C.05, 216C.07 to 216C.19, 
197.32  216C.20 to 216C.35, and 216C.373 to 216C.381 this chapter. 
197.33     Sec. 65.  Minnesota Statutes 2000, section 216C.01, 
197.34  subdivision 2, is amended to read: 
197.35     Subd. 2.  [COMMISSIONER.] "Commissioner" means the 
197.36  commissioner of the department of public service commerce. 
198.1      Sec. 66.  Minnesota Statutes 2000, section 216C.01, 
198.2   subdivision 3, is amended to read: 
198.3      Subd. 3.  [DEPARTMENT.] "Department" means the department 
198.4   of public service commerce. 
198.5      Sec. 67.  Minnesota Statutes 2000, section 216C.37, 
198.6   subdivision 1, is amended to read: 
198.7      Subdivision 1.  [DEFINITIONS.] In this section:  
198.8      (a) "Commissioner" means the commissioner of public service 
198.9   commerce. 
198.10     (b) "Energy conservation investments" means all capital 
198.11  expenditures that are associated with conservation measures 
198.12  identified in an energy project study, and that have a ten-year 
198.13  or less payback period.  
198.14     (c) "Municipality" means any county, statutory or home rule 
198.15  charter city, town, school district, or any combination of those 
198.16  units operating under an agreement to jointly undertake projects 
198.17  authorized in this section.  
198.18     (d) "Energy project study" means a study of one or more 
198.19  energy-related capital improvement projects analyzed in 
198.20  sufficient detail to support a financing application.  At a 
198.21  minimum, it must include one year of energy consumption and cost 
198.22  data, a description of existing conditions, a description of 
198.23  proposed conditions, a detailed description of the costs of the 
198.24  project, and calculations sufficient to document the proposed 
198.25  energy savings. 
198.26     Sec. 68.  Minnesota Statutes 2000, section 216C.40, 
198.27  subdivision 4, is amended to read: 
198.28     Subd. 4.  [CONDITION PRECEDENT.] The duties of the 
198.29  department under this section are conditional on the 
198.30  commissioner of public service finding that there will be at 
198.31  least one public utility that will be subject to the assessment 
198.32  created by Laws 1993, chapter 254, section 7. 
198.33     Sec. 69.  Minnesota Statutes 2000, section 237.02, is 
198.34  amended to read: 
198.35     237.02 [GENERAL AUTHORITY OF DEPARTMENT AND COMMISSION; 
198.36  DEFINITIONS.] 
199.1      The department of public service commerce and the public 
199.2   utilities commission, now existing under the laws of this state, 
199.3   are hereby vested with the same jurisdiction and supervisory 
199.4   power over telephone and telecommunications companies doing 
199.5   business in this state as it now has the commission's 
199.6   predecessor, the railroad and warehouse commission, had over 
199.7   railroad and express companies.  The definitions set forth 
199.8   in section sections 216A.02 shall apply and 216B.02 also apply 
199.9   to this chapter. 
199.10     Sec. 70.  Minnesota Statutes 2000, section 237.075, 
199.11  subdivision 2, is amended to read: 
199.12     Subd. 2.  [SUSPENSION OF PROPOSED RATE; HEARING; FINAL 
199.13  DETERMINATION DEFINED.] (a) Whenever there is filed with the 
199.14  commission as provided in subdivision 1 a schedule modifying or 
199.15  resulting in a change in any rate then in force, the commission 
199.16  may suspend the operation of the schedule by filing with the 
199.17  schedule of rates and delivering to the affected telephone 
199.18  company a statement in writing of its reasons for the suspension 
199.19  at any time before the rates become effective.  The suspension 
199.20  shall not be for a longer period than ten months beyond the 
199.21  initial filing date except as provided in paragraph (b).  During 
199.22  the suspension the commission shall determine whether all 
199.23  questions of the reasonableness of the rates requested raised by 
199.24  persons deemed interested or by the administrative division of 
199.25  the department of public service can be resolved to the 
199.26  satisfaction of the commission.  If the commission finds that 
199.27  all significant issues raised have not been resolved to its 
199.28  satisfaction, or upon petition by ten percent of the affected 
199.29  customers or 250 affected customers, whichever is less, it shall 
199.30  refer the matter to the office of administrative hearings with 
199.31  instructions for a public hearing as a contested case pursuant 
199.32  to chapter 14, except as otherwise provided in this section.  
199.33  The commission may order that the issues presented by the 
199.34  proposed rate changes be bifurcated into two separate hearings 
199.35  as follows:  (1) determination of the telephone company's 
199.36  revenue requirements and (2) determination of the rate design.  
200.1   Upon issuance of both administrative law judge reports, the 
200.2   issues shall again be joined for consideration and final 
200.3   determination by the commission.  All prehearing discovery 
200.4   activities of state agency intervenors shall be consolidated and 
200.5   conducted by the department of public service commerce.  If the 
200.6   commission does not make a final determination concerning a 
200.7   schedule of rates within ten months after the initial filing 
200.8   date, the schedule shall be deemed to have been approved by the 
200.9   commission; except if a settlement has been submitted to and 
200.10  rejected by the commission, the schedule is deemed to have been 
200.11  approved 12 months after the initial filing. 
200.12     (b) If the commission finds that it has insufficient time 
200.13  during the suspension period to make a final determination of a 
200.14  case involving changes in general rates because of the need to 
200.15  make final determinations of other previously filed cases 
200.16  involving changes in general rates under this section or section 
200.17  216B.16, the commission may extend the suspension period to the 
200.18  extent necessary to allow itself 20 working days to make the 
200.19  final determination after it has made final determinations in 
200.20  the previously filed cases.  An extension of the suspension 
200.21  period under this paragraph does not alter the setting of 
200.22  interim rates under subdivision 3. 
200.23     (c) For the purposes of this section, "final determination" 
200.24  means the initial decision of the commission and not any order 
200.25  which may be entered by the commission in response to a petition 
200.26  for rehearing or other further relief.  The commission may 
200.27  further suspend rates until it determines all those petitions. 
200.28     Sec. 71.  Minnesota Statutes 2000, section 237.075, 
200.29  subdivision 9, is amended to read: 
200.30     Subd. 9.  [ELECTION ON REGULATION; COOPERATIVE, MUNICIPAL, 
200.31  INDEPENDENT.] For the purposes of this section, "telephone 
200.32  company" shall not include a cooperative telephone association 
200.33  organized under the provisions of chapter 308A, an independent 
200.34  telephone company, or a municipal, unless the cooperative 
200.35  telephone association, independent telephone company, or 
200.36  municipal makes the election provided in this subdivision. 
201.1      A cooperative telephone association may elect to become 
201.2   subject to rate regulation by the commission pursuant to this 
201.3   section.  The election shall be (a) approved by the board of 
201.4   directors of the association in accordance with the procedures 
201.5   for amending the articles of incorporation contained in section 
201.6   308A.135, excluding the filing requirements; or (b) approved by 
201.7   a majority of members or stockholders voting by mail ballot 
201.8   initiated by petition of no fewer than five percent of the 
201.9   members or stockholders of the association.  The ballot to be 
201.10  used for the election shall be approved by the board of 
201.11  directors and the department of public service.  The department 
201.12  shall mail the ballots to the association's members who shall 
201.13  return the ballots to the department.  The department will keep 
201.14  the ballots sealed until a date agreed upon by the department 
201.15  and the board of directors.  On this date, representatives of 
201.16  the department and the association shall count the ballots.  If 
201.17  a majority of the association's members who vote elect to become 
201.18  subject to rate regulation by the commission, the election shall 
201.19  be effective 30 days after the date the ballots are counted.  
201.20  For purposes of this section, the term "member or stockholder"  
201.21  shall mean either the member or stockholder of record or the 
201.22  spouse of the member or stockholder unless the association has 
201.23  been notified otherwise in writing.  
201.24     A municipal may elect to become subject to rate regulation 
201.25  by the commission pursuant to this section.  The election shall 
201.26  be (a) approved by resolution of the governing body of the 
201.27  municipality; or (b) approved by a majority of the customers of 
201.28  the municipal voting by mail ballot initiated by petition of no 
201.29  fewer than 20 percent of the customers of the municipal.  The 
201.30  ballot to be used for the election shall be approved by the 
201.31  governing body of the municipality and the department of public 
201.32  service.  The department shall mail the ballots to the 
201.33  municipal's customers who shall return the ballots to the 
201.34  department.  The department will keep the ballots sealed until a 
201.35  date agreed upon by the department and the governing body of the 
201.36  municipality.  On this date, representatives of the department 
202.1   and the municipal shall count the ballots.  If a majority of the 
202.2   customers of the municipal who vote elect to become subject to 
202.3   rate regulation by the commission, the election shall be 
202.4   effective 30 days after the date the ballots are counted.  For 
202.5   purposes of this section, the term "customer" shall mean either 
202.6   the person in whose name the telephone service is registered or 
202.7   the spouse of the person unless the municipal utility has been 
202.8   notified otherwise in writing.  
202.9      An independent telephone company may elect to become 
202.10  subject to rate regulation by the commission pursuant to this 
202.11  section.  The election shall be (a) approved by the board of 
202.12  directors of the company in accordance with the procedures for 
202.13  amending the articles of incorporation contained in sections 
202.14  302A.133 to 302A.139, excluding the filing requirements; or (b) 
202.15  approved by a majority of subscribers voting by mail ballot 
202.16  initiated by petition of no fewer than five percent of the 
202.17  subscribers of the company.  The ballot to be used for the 
202.18  election shall be approved by the board of directors and the 
202.19  department of public service.  The department shall mail the 
202.20  ballots to the company's subscribers who shall return the 
202.21  ballots to the department.  The department will keep the ballots 
202.22  sealed until a date agreed upon by the department and the board 
202.23  of directors.  On this date, representatives of the department 
202.24  and the company shall count the ballots.  If a majority of the 
202.25  company's subscribers who vote elect to become subject to rate 
202.26  regulation by the commission, the election shall be effective 30 
202.27  days after the date the ballots are counted.  For purposes of 
202.28  this section the term "subscriber" shall mean either the person 
202.29  in whose name the telephone service is registered or the spouse 
202.30  of the person unless the independent telephone company has been 
202.31  notified otherwise in writing.  
202.32     Sec. 72.  Minnesota Statutes 2000, section 237.082, is 
202.33  amended to read: 
202.34     237.082 [TELECOMMUNICATION SERVICE; POLICY OF INCREASED 
202.35  SPEED AND SERVICE.] 
202.36     When setting rates, adopting rules, or issuing orders 
203.1   related to telecommunication matters that affect deployment of 
203.2   the infrastructure, the commission may apply the goals of: 
203.3      (1) achieving economically efficient investment in: 
203.4      (i) higher speed telecommunication services; and 
203.5      (ii) greater capacity for voice, video, and data 
203.6   transmission; and 
203.7      (2) just and reasonable rates. 
203.8      The department of public service may apply the same goals 
203.9   in its regulation of and recommendations regarding 
203.10  telecommunication services. 
203.11     Sec. 73.  Minnesota Statutes 2000, section 237.21, is 
203.12  amended to read: 
203.13     237.21 [VALUATION OF TELEPHONE PROPERTY.] 
203.14     In determining the value of any telephone property for rate 
203.15  making purposes, no valuation shall be allowed upon the value of 
203.16  any franchise granted by the state or any municipality where no 
203.17  payment was or is being made to the state or municipality on 
203.18  account thereof.  The requirement as to reasonableness of rates 
203.19  shall apply to each exchange unit as well as to telephone plants 
203.20  as a whole.  Provided, that in the case of a company operating a 
203.21  telephone system consisting of more than one exchange in the 
203.22  state, reasonableness of rates, as measured by earnings, shall 
203.23  be determined by a reasonable return from the total operations 
203.24  of the system within the state rather than by the return from 
203.25  individual exchanges or services.  No telephone rates or charges 
203.26  shall be allowed or approved by the commission under any 
203.27  circumstances, which are inadequate and which are intended to or 
203.28  naturally tend to destroy competition or produce a monopoly in 
203.29  telephone service in the locality affected.  
203.30     Laws 1953, chapter 25, shall have no effect on proceedings 
203.31  pending before the courts or the department of public service at 
203.32  the time of its enactment.  
203.33     Sec. 74.  Minnesota Statutes 2000, section 237.30, is 
203.34  amended to read: 
203.35     237.30 [TELEPHONE INVESTIGATION FUND; APPROPRIATION.] 
203.36     The sum of $25,000 is hereby appropriated out of any moneys 
204.1   in the state treasury not otherwise appropriated, to establish 
204.2   and provide a revolving fund to be known as the Minnesota 
204.3   Telephone Investigation Fund for the use of the department of 
204.4   public service commerce and of the attorney general in 
204.5   investigations, valuations, and revaluations under section 
204.6   237.295.  All sums paid by the telephone companies to reimburse 
204.7   the department of public service for its expenses pursuant to 
204.8   section 237.295 shall be credited to the revolving fund and 
204.9   shall be deposited in a separate bank account and not commingled 
204.10  with any other state funds or moneys, but any balance in excess 
204.11  of $25,000 in the revolving fund at the end of each fiscal year 
204.12  shall be paid into the state treasury and credited to the 
204.13  general fund.  The sum of $25,000 herein appropriated and all 
204.14  subsequent credits to said revolving fund shall be paid upon the 
204.15  warrant of the commissioner of finance upon application of the 
204.16  department or of the attorney general to an aggregate amount of 
204.17  not more than one-half of such sums to each of them, which 
204.18  proportion shall be constantly maintained in all credits and 
204.19  withdrawals from the revolving fund. 
204.20     Sec. 75.  Minnesota Statutes 2000, section 237.462, 
204.21  subdivision 6, is amended to read: 
204.22     Subd. 6.  [EXPEDITED PROCEEDING.] (a) The commission may 
204.23  order an expedited proceeding under section 237.61 and this 
204.24  subdivision, in lieu of a contested case under chapter 14, to 
204.25  develop an evidentiary record in any proceeding that involves 
204.26  contested issues of material fact either upon request of a party 
204.27  or upon the commission's own motion if the complaint alleges a 
204.28  violation described in subdivision 1, clauses (1) to (4).  The 
204.29  commission may order an expedited proceeding under this 
204.30  subdivision if the commission finds an expedited proceeding is 
204.31  in the public interest, regardless of whether all parties agree 
204.32  to the expedited proceeding.  In determining whether to grant an 
204.33  expedited proceeding, the commission may consider any evidence 
204.34  of impairment of the provision of telecommunications service to 
204.35  subscribers in the state or impairment of the provision of any 
204.36  service or network element subject to the jurisdiction of the 
205.1   commission.  
205.2      (b) Any request for an expedited proceeding under this 
205.3   subdivision must be noted in the title of the first filing by a 
205.4   party.  The filing shall also state the specific circumstances 
205.5   that the party believes warrant an expedited proceeding under 
205.6   this subdivision.  
205.7      (c) A complaint requesting an expedited proceeding, unless 
205.8   filed by the department of public service or the attorney 
205.9   general, must set forth the actions and the dates of the actions 
205.10  taken by the party filing the complaint to attempt to resolve 
205.11  the alleged violations with the party against whom the complaint 
205.12  is filed, including any requests that the party against whom the 
205.13  complaint is filed correct the conduct giving rise to the 
205.14  violations alleged in the complaint.  If no such actions were 
205.15  taken by the complainant, the complaint shall set forth the 
205.16  reasons why no such actions were taken.  The commission may 
205.17  order an expedited proceeding even if the filing complaint fails 
205.18  to meet this requirement if the commission determines that it 
205.19  would be in the public interest to go forward with the expedited 
205.20  proceeding without information in the complaint on attempts to 
205.21  resolve the dispute. 
205.22     (d) The complaining party shall serve the complaint along 
205.23  with any written discovery requests by hand delivery and 
205.24  facsimile on the party against whom the complaint is filed, the 
205.25  department of public service, and the office of the attorney 
205.26  general on the same day the complaint is filed with the 
205.27  commission. 
205.28     (e) The party responding to a complaint that includes a 
205.29  request for an expedited proceeding under this subdivision shall 
205.30  file an answer within 15 days after receiving the complaint.  
205.31  The responding party shall state in the answer the party's 
205.32  position on the request for an expedited proceeding.  The 
205.33  responding party shall serve with the answer any objections to 
205.34  any written discovery requests as well as any written discovery 
205.35  requests the responding party wishes to serve on the complaining 
205.36  party.  Except for stating any objections, the responding party 
206.1   is not required to answer any written discovery requests under 
206.2   this subdivision until a time established at a prehearing 
206.3   conference.  The responding party shall serve a copy of the 
206.4   answer and any discovery requests and objections on the 
206.5   complaining party, the department of public service, and office 
206.6   of the attorney general by hand delivery and facsimile on the 
206.7   same day as the answer is filed with the commission. 
206.8      (f) Within 15 days of receiving the answer to a complaint 
206.9   in a proceeding in which a party has requested an expedited 
206.10  hearing, the commission shall determine whether the filing 
206.11  warrants an expedited proceeding.  If the commission decides to 
206.12  grant a request by a party or if the commission orders an 
206.13  expedited proceeding on its own motion, the commission shall 
206.14  conduct within seven days of the decision a prehearing 
206.15  conference to schedule the evidentiary hearing.  During the 
206.16  prehearing conference, the commission shall establish a 
206.17  discovery schedule that requires all discovery to be completed 
206.18  no later than three days before the start of the hearing.  An 
206.19  evidentiary hearing under this subdivision must commence no 
206.20  later than 45 days after the commission's decision to order an 
206.21  expedited proceeding.  A quorum of the commission shall preside 
206.22  at any evidentiary hearing under this subdivision unless all the 
206.23  parties to the proceeding agree otherwise.  
206.24     (g) All pleadings submitted under this subdivision must be 
206.25  verified and all oral statements of fact made in a hearing or 
206.26  deposition under this subdivision must be made under oath or 
206.27  affirmation. 
206.28     (h) The commission shall issue a written decision and final 
206.29  order on the complaint within 15 days after the close of the 
206.30  evidentiary hearing under this subdivision.  On the day of 
206.31  issuance, the commission shall notify the parties by facsimile 
206.32  that a final order has been issued and shall provide each party 
206.33  with a copy of the final order. 
206.34     (i) The commission may extend any time periods under this 
206.35  subdivision if all parties to the proceeding agree to the 
206.36  extension or if the commission finds the extension is necessary 
207.1   to ensure a just resolution of the complaint. 
207.2      (j) Except as otherwise provided in this subdivision, an 
207.3   expedited proceeding under this subdivision shall be governed by 
207.4   the following procedural rules: 
207.5      (1) the parties shall have the discovery rights provided in 
207.6   Minnesota Rules, parts 1400.6700 to 1400.7000; 
207.7      (2) the parties shall have the right to cross-examine 
207.8   witnesses as provided in section 14.60, subdivision 3; 
207.9      (3) the admissibility of evidence and development of record 
207.10  for decision shall be governed by section 14.60 and Minnesota 
207.11  Rules, part 1400.7300; and 
207.12     (4) the commission may apply other procedures or standards 
207.13  included in the rules of the office of administrative hearings, 
207.14  as necessary to ensure the fair and expeditious resolution of 
207.15  disputes under this section. 
207.16     Sec. 76.  Minnesota Statutes 2000, section 237.51, 
207.17  subdivision 1, is amended to read: 
207.18     Subdivision 1.  [CREATION.] The department of public 
207.19  service commissioner of commerce shall administer through 
207.20  interagency agreement with the department commissioner of human 
207.21  services a program to distribute communication devices to 
207.22  eligible communication-impaired persons and contract with a 
207.23  local consumer group that serves communication-impaired persons 
207.24  to create and maintain a telecommunication relay service.  For 
207.25  purposes of sections 237.51 to 237.56, the department of public 
207.26  service commerce and any organization with which it contracts 
207.27  pursuant to this section or section 237.54, subdivision 2, are 
207.28  not telephone companies or telecommunications carriers as 
207.29  defined in section 237.01. 
207.30     Sec. 77.  Minnesota Statutes 2000, section 237.51, 
207.31  subdivision 5, is amended to read: 
207.32     Subd. 5.  [DEPARTMENT OF PUBLIC SERVICE COMMISSIONER OF 
207.33  COMMERCE DUTIES.] In addition to any duties specified elsewhere 
207.34  in sections 237.51 to 237.56, the department of public service 
207.35  commissioner of commerce shall: 
207.36     (1) prepare the reports required by section 237.55; 
208.1      (2) administer the fund created in section 237.52; and 
208.2      (3) adopt rules under chapter 14 to implement the 
208.3   provisions of sections 237.50 to 237.56. 
208.4      Sec. 78.  Minnesota Statutes 2000, section 237.51, 
208.5   subdivision 5a, is amended to read: 
208.6      Subd. 5a.  [DEPARTMENT OF HUMAN SERVICES DUTIES.] (a) In 
208.7   addition to any duties specified elsewhere in sections 237.51 to 
208.8   237.56, the department commissioner of human services shall: 
208.9      (1) define economic hardship, special needs, and household 
208.10  criteria so as to determine the priority of eligible applicants 
208.11  for initial distribution of devices and to determine 
208.12  circumstances necessitating provision of more than one 
208.13  communication device per household; 
208.14     (2) establish a method to verify eligibility requirements; 
208.15     (3) establish specifications for communication devices to 
208.16  be purchased under section 237.53, subdivision 3; and 
208.17     (4) inform the public and specifically the community of 
208.18  communication-impaired persons of the program.  
208.19     (b) The department commissioner may establish an advisory 
208.20  board to advise the department in carrying out the duties 
208.21  specified in this section and to advise the department of public 
208.22  service commissioner of commerce in carrying out its duties 
208.23  under section 237.54.  If so established, the advisory board 
208.24  must include, at a minimum, the following communication-impaired 
208.25  persons: 
208.26     (1) at least one member who is deaf; 
208.27     (2) at least one member who is speech impaired; 
208.28     (3) at least one member who is mobility impaired; and 
208.29     (4) at least one member who is hard-of-hearing. 
208.30     The membership terms, compensation, and removal of members 
208.31  and the filling of membership vacancies are governed by section 
208.32  15.059.  Advisory board meetings shall be held at the discretion 
208.33  of the commissioner. 
208.34     Sec. 79.  Minnesota Statutes 2000, section 237.52, 
208.35  subdivision 2, is amended to read: 
208.36     Subd. 2.  [ASSESSMENT.] The department of public 
209.1   service commissioner of commerce shall annually recommend to the 
209.2   commission an adequate and appropriate surcharge and budget to 
209.3   implement sections 237.50 to 237.56.  The public utilities 
209.4   commission shall review the budget for reasonableness and may 
209.5   modify the budget to the extent it is unreasonable.  The 
209.6   commission shall annually determine the funding mechanism to be 
209.7   used within 60 days of receipt of the recommendation of the 
209.8   department and shall order the imposition of surcharges 
209.9   effective on the earliest practicable date.  The commission 
209.10  shall establish a monthly charge no greater than 20 cents for 
209.11  each customer access line, including trunk equivalents as 
209.12  designated by the commission pursuant to section 403.11, 
209.13  subdivision 1. 
209.14     Sec. 80.  Minnesota Statutes 2000, section 237.52, 
209.15  subdivision 4, is amended to read: 
209.16     Subd. 4.  [APPROPRIATION.] Money in the fund is 
209.17  appropriated to the department of public service commissioner of 
209.18  commerce to implement sections 237.51 to 237.56. 
209.19     Sec. 81.  Minnesota Statutes 2000, section 237.52, 
209.20  subdivision 5, is amended to read: 
209.21     Subd. 5.  [EXPENDITURES.] Money in the fund may only be 
209.22  used for: 
209.23     (1) expenses of the department of public service commerce, 
209.24  including personnel cost, public relations, advisory board 
209.25  members' expenses, preparation of reports, and other reasonable 
209.26  expenses not to exceed ten percent of total program 
209.27  expenditures; 
209.28     (2) reimbursing the commissioner of human services for 
209.29  purchases made or services provided pursuant to section 237.53; 
209.30     (3) reimbursing telephone companies for purchases made or 
209.31  services provided under section 237.53, subdivision 5; and 
209.32     (4) contracting for establishment and operation of the 
209.33  telecommunication relay service required by section 237.54. 
209.34     All costs directly associated with the establishment of the 
209.35  program, the purchase and distribution of communication devices, 
209.36  and the establishment and operation of the telecommunication 
210.1   relay service are either reimbursable or directly payable from 
210.2   the fund after authorization by the department of public service 
210.3   commissioner of commerce.  The department of public 
210.4   service commissioner of commerce shall contract with the message 
210.5   relay service operator to indemnify the local exchange carriers 
210.6   of the relay service for any fines imposed by the Federal 
210.7   Communications Commission related to the failure of the relay 
210.8   service to comply with federal service standards.  
210.9   Notwithstanding section 16A.41, the department of public service 
210.10  commissioner may advance money to the contractor of the 
210.11  telecommunication relay service if the contractor establishes to 
210.12  the department's commissioner's satisfaction that the advance 
210.13  payment is necessary for the operation of the service.  The 
210.14  advance payment may be used only for working capital reserve for 
210.15  the operation of the service.  The advance payment must be 
210.16  offset or repaid by the end of the contract fiscal year together 
210.17  with interest accrued from the date of payment.  
210.18     Sec. 82.  Minnesota Statutes 2000, section 237.54, 
210.19  subdivision 2, is amended to read: 
210.20     Subd. 2.  [OPERATION.] The department of public 
210.21  service commissioner of commerce shall contract with a local 
210.22  consumer organization that serves communication-impaired persons 
210.23  for operation and maintenance of the telecommunication relay 
210.24  system.  The department commissioner may contract with other 
210.25  than a local consumer organization if no local consumer 
210.26  organization is available to enter into or perform a reasonable 
210.27  contract or the only available consumer organization fails to 
210.28  comply with terms of a contract.  The operator of the system 
210.29  shall keep all messages confidential, shall train personnel in 
210.30  the unique needs of communication-impaired people, and shall 
210.31  inform communication-impaired persons and the public of the 
210.32  availability and use of the system.  The operator shall not 
210.33  relay a message unless it originates or terminates through a 
210.34  communication device for the deaf or a Brailling device for use 
210.35  with a telephone. 
210.36     Sec. 83.  Minnesota Statutes 2000, section 237.55, is 
211.1   amended to read: 
211.2      237.55 [ANNUAL REPORT ON COMMUNICATION ACCESS.] 
211.3      The department of public service commissioner of commerce 
211.4   must prepare a report for presentation to the commission by 
211.5   January 31 of each year.  Each report must review the 
211.6   accessibility of the telephone system to communication-impaired 
211.7   persons, review the ability of non-communication-impaired 
211.8   persons to communicate with communication-impaired persons via 
211.9   the telephone system, describe services provided, account for 
211.10  money received and disbursed annually for each aspect of the 
211.11  program to date, and include predicted future operation. 
211.12     Sec. 84.  Minnesota Statutes 2000, section 237.59, 
211.13  subdivision 2, is amended to read: 
211.14     Subd. 2.  [PETITION.] (a) A telephone company, or the 
211.15  commission on its own motion, may petition to have a service of 
211.16  that telephone company classified as subject to effective 
211.17  competition or emerging competition.  The petition must be 
211.18  served on the commission, the department of public service, the 
211.19  office of the attorney general, and any other person designated 
211.20  by the commission.  The petition must contain at least: 
211.21     (1) a list of the known alternative providers of the 
211.22  service available to the company's customers; and 
211.23     (2) a description of affiliate relationships with any other 
211.24  provider of the service in the company's market. 
211.25     (b) At the time the company first offers a service, it 
211.26  shall also file a petition with the commission for a 
211.27  determination as to how the service should be classified.  In 
211.28  the event that no interested party or the commission objects to 
211.29  the company's proposed classification within 20 days of the 
211.30  filing of the petition, the company's proposed classification of 
211.31  the service is deemed approved.  If an objection is filed, the 
211.32  commission shall determine the appropriate classification after 
211.33  a hearing conducted pursuant to section 237.61.  In either 
211.34  event, the company may offer the new service to its customers 
211.35  ten days after the company files the price list and incremental 
211.36  cost study as provided in section 237.60, subdivision 2, 
212.1   paragraph (f). 
212.2      (c) A new service may be classified as subject to effective 
212.3   competition or emerging competition pursuant to the criteria set 
212.4   forth in subdivision 5.  A new service must be regulated under 
212.5   the emerging competition provisions if it is not integrally 
212.6   related to the provision of adequate local service or access to 
212.7   the telephone network or to the privacy, health, or safety of 
212.8   the company's customers, whether or not it meets the criteria 
212.9   set forth in subdivision 5. 
212.10     Sec. 85.  Minnesota Statutes 2000, section 237.768, is 
212.11  amended to read: 
212.12     237.768 [PERIODIC FINANCIAL REPORT.] 
212.13     In addition to the reports required under section 237.766, 
212.14  an alternative regulation plan may require a telephone company 
212.15  to file with the department an annual report of financial 
212.16  matters for the previous calendar year on or before May 1 of 
212.17  each year on report forms furnished by the department of public 
212.18  service in the same manner as is required of other telephone 
212.19  companies on August 1, 1995.  In addition, any company subject 
212.20  to a plan shall file with the commission and department a copy 
212.21  of any filings it has made to the Federal Communications 
212.22  Commission regarding the provisions of video programming 
212.23  provided through a video dial tone facility in Minnesota.  An 
212.24  alternative regulation plan may require a telephone company to 
212.25  maintain its accounts in accordance with the system of accounts 
212.26  prescribed for the company by the commission under section 
212.27  237.10. 
212.28     Sec. 86.  Minnesota Statutes 2000, section 239.01, is 
212.29  amended to read: 
212.30     239.01 [WEIGHTS AND MEASURES DIVISION; JURISDICTION.] 
212.31     The weights and measures division, referred to in this 
212.32  chapter as the division, is created under the jurisdiction of 
212.33  the department of public service commerce.  The division has 
212.34  supervision and control over all weights, weighing devices, and 
212.35  measures in the state. 
212.36     Sec. 87.  Minnesota Statutes 2000, section 325E.11, is 
213.1   amended to read: 
213.2      325E.11 [COLLECTION FACILITIES; NOTICE.] 
213.3      (a) Any person selling at retail or offering motor oil or 
213.4   motor oil filters for retail sale in this state shall: 
213.5      (1) post a notice indicating the nearest location where 
213.6   used motor oil and used motor oil filters may be returned at no 
213.7   cost for recycling or reuse, post a toll-free telephone number 
213.8   that may be called by the public to determine a convenient 
213.9   location, or post a listing of locations where used motor oil 
213.10  and used motor oil filters may be returned at no cost for 
213.11  recycling or reuse; or 
213.12     (2) if the person is subject to section 325E.112, 
213.13  subdivision 1, paragraph (b), post a notice informing customers 
213.14  purchasing motor oil or motor oil filters of the location of the 
213.15  used motor oil and used motor oil filter collection site 
213.16  established by the retailer in accordance with section 325E.112, 
213.17  subdivision 1, paragraph (b), where used motor oil and used 
213.18  motor oil filters may be returned at no cost. 
213.19     (b) A notice under paragraph (a) shall be posted on or 
213.20  adjacent to the motor oil and motor oil filter displays, be at 
213.21  least 8-1/2 inches by 11 inches in size, contain the universal 
213.22  recycling symbol with the following language: 
213.23     (1) "It is illegal to put used oil and used motor oil 
213.24  filters in the garbage."; 
213.25     (2) "Recycle your used oil and used motor oil filters."; 
213.26  and 
213.27     (3)(i) "There is a free collection site here for your used 
213.28  oil and used motor oil filters."; 
213.29     (ii) "There is a free collection site for used oil and used 
213.30  motor oil filters located at (name of business and street 
213.31  address)."; 
213.32     (iii) "For the location of a free collection site for used 
213.33  oil and used motor oil filters call (toll-free phone number)."; 
213.34  or 
213.35     (iv) "Here is a list of free collection sites for used oil 
213.36  and used motor oil filters." 
214.1      (c) The division of weights and measures under in the 
214.2   department of public service commerce shall enforce compliance 
214.3   with this section as provided in section 239.54.  The pollution 
214.4   control agency shall enforce compliance with this section under 
214.5   sections 115.071 and 116.072 in coordination with the division 
214.6   of weights and measures. 
214.7      Sec. 88.  Minnesota Statutes 2000, section 325E.115, 
214.8   subdivision 2, is amended to read: 
214.9      Subd. 2.  [COMPLIANCE; MANAGEMENT.] The division of weights 
214.10  and measures under in the department of public service commerce 
214.11  shall enforce compliance of subdivision 1 as provided in section 
214.12  239.54.  The commissioner of the pollution control agency shall 
214.13  inform persons governed by subdivision 1 of requirements for 
214.14  managing lead acid batteries.  
214.15     Sec. 89.  Minnesota Statutes 2000, section 326.243, is 
214.16  amended to read: 
214.17     326.243 [SAFETY STANDARDS.] 
214.18     All electrical wiring, apparatus and equipment for electric 
214.19  light, heat and power, alarm and communication systems shall 
214.20  comply with the rules of the department of public service, the 
214.21  commissioner of commerce, or the department of labor and 
214.22  industry, as applicable, and be installed in conformity with 
214.23  accepted standards of construction for safety to life and 
214.24  property.  For the purposes of this chapter, the rules and 
214.25  safety standards stated at the time the work is done in the then 
214.26  most recently published edition of the National Electrical Code 
214.27  as adopted by the National Fire Protection Association, Inc. and 
214.28  approved by the American National Standards Institute, and the 
214.29  National Electrical Safety Code as published by the Institute of 
214.30  Electrical and Electronics Engineers, Inc. and approved by the 
214.31  American National Standards Institute, shall be prima facie 
214.32  evidence of accepted standards of construction for safety to 
214.33  life and property; provided further, that in the event a 
214.34  Minnesota Building Code is formulated pursuant to section 
214.35  16B.61, containing approved methods of electrical construction 
214.36  for safety to life and property, compliance with said methods of 
215.1   electrical construction of said Minnesota Building Code shall 
215.2   also constitute compliance with this section, and provided 
215.3   further, that nothing herein contained shall prohibit any 
215.4   political subdivision from making and enforcing more stringent 
215.5   requirements than set forth herein and such requirements shall 
215.6   be complied with by all licensed electricians working within the 
215.7   jurisdiction of such political subdivisions.  
215.8      Sec. 90.  Minnesota Statutes 2000, section 484.50, is 
215.9   amended to read: 
215.10     484.50 [SUMMONS; PLACE OF TRIAL; ST. LOUIS COUNTY.] 
215.11     A party wishing to have an appeal from an order of the 
215.12  department of public service public utilities commission, an 
215.13  election contest, a lien foreclosure, or a civil cause or 
215.14  proceeding of a kind commenced or appealed by a party in the 
215.15  court, tried in the city of Virginia shall, in the summons, 
215.16  notice of appeal in a matter, or other jurisdictional instrument 
215.17  issued, in addition to the usual provisions, print, stamp, or 
215.18  write thereon the words, "to be tried at the city of Virginia," 
215.19  and a party wishing a matter commenced or appealed by a party in 
215.20  the court tried at the city of Hibbing shall, in the summons, 
215.21  notice of appeal in a matter, or other jurisdictional instrument 
215.22  issued, in addition to the usual provisions, print, stamp, or 
215.23  write thereon the words, "to be tried at the city of Hibbing," 
215.24  and in a case where a summons, notice of appeal in a matter, or 
215.25  other jurisdictional instrument contains a specification, the 
215.26  case shall be tried at the city of Virginia, or the city of 
215.27  Hibbing, as the case may be, unless the defendant shall have the 
215.28  place of trial fixed in the manner specified in this section. 
215.29     If the place of trial designated is not the proper place of 
215.30  trial, as specified in sections 484.44 to 484.52, the cause 
215.31  shall nevertheless be tried in a place, unless the defendant, in 
215.32  an answer in addition to the other allegations of defense, shall 
215.33  plead the location of the defendant's residence, and demand that 
215.34  the action be tried at the place of holding the court nearest 
215.35  the defendant's residence, as provided in this section; and in a 
215.36  case where the answer of the defendant pleads the place of 
216.1   residence and makes a demand of place of trial, the plaintiff, 
216.2   in reply, may admit or deny the allegations of residence, and if 
216.3   the allegations of residence are not expressly denied, the case 
216.4   shall be tried at the place demanded by the defendant, and if 
216.5   the allegations of residence are denied, the place of trial 
216.6   shall be determined by the court on motion. 
216.7      If there are several defendants, residing at different 
216.8   places in a county, the trial shall be at the place in which the 
216.9   majority of the defendants unite in demanding, or if the numbers 
216.10  are equal, at the place nearest the residence of the majority of 
216.11  the defendants. 
216.12     The venue of an action may be changed from one of these 
216.13  places to another, by order of the court, in the following cases:
216.14     (1) Upon written consent of the parties; 
216.15     (2) When it appears, on motion, that a party has been made 
216.16  a defendant for the purpose of preventing a change of venue as 
216.17  provided in this section; 
216.18     (3) When an impartial trial cannot be held in the place 
216.19  where the action is pending; or 
216.20     (4) When the convenience of witnesses and the ends of 
216.21  justice would be promoted by the change. 
216.22     Application for a change under clause (2), (3), or (4), 
216.23  shall be made by motion which shall be returnable and heard at 
216.24  the place of commencement of the action. 
216.25     Sec. 91.  [INSTRUCTION TO REVISOR.] 
216.26     The revisor of statutes shall change the words "public 
216.27  service" to the word "commerce" in the following sections of 
216.28  Minnesota Statutes:  13.68; 13.681; 17A.04, subdivisions 6, 7, 
216.29  and 8; 17A.10, subdivision 1; 41A.09, subdivision 7; 116C.03, 
216.30  subdivision 2; 160.262, subdivision 3; 216A.085, subdivision 1; 
216.31  216B.241, subdivision 1; 237.295, subdivision 1; 237.662, 
216.32  subdivision 3; 237.70, subdivision 7; 239.05, subdivisions 6c, 
216.33  7a, 8, and 8c; 272.0211, subdivision 1; 296A.02, subdivision 1; 
216.34  308A.210, subdivisions 5 and 6; 325F.733, subdivision 7; and 
216.35  469.164, subdivision 2. 
216.36     Sec. 92.  [REPEALER.] 
217.1      Minnesota Statutes 2000, sections 216A.06; and 237.69, 
217.2   subdivision 3, are repealed. 
217.3                              ARTICLE 20
217.4                  TRANSPORTATION AND OTHER AGENCIES
217.5   Section 1.  [TRANSPORTATION AND OTHER AGENCIES APPROPRIATIONS.] 
217.6      The sums shown in the columns marked "APPROPRIATIONS" are 
217.7   appropriated from the general fund, or another named fund, to 
217.8   the agencies and for the purposes specified in this article, to 
217.9   be available for the fiscal years indicated for each purpose.  
217.10  The figures "2001," "2002," and "2003," where used in this 
217.11  article, mean that the appropriations listed under them are 
217.12  available for the year ending June 30, 2001, June 30, 2002, or 
217.13  June 30, 2003, respectively.  If the figures are not used, the 
217.14  appropriations are available for the year ending June 30, 2002, 
217.15  or June 30, 2003, respectively.  The term "first year" means the 
217.16  year ending June 30, 2002, and the term "second year" means the 
217.17  year ending June 30, 2003.  Appropriations for the year ending 
217.18  June 30, 2001, are in addition to appropriations made in 
217.19  previous years.  
217.20                          SUMMARY BY FUND
217.21                                                      BIENNIAL
217.22                            2002          2003          TOTAL
217.23  General             $  84,572,000   $ 84,813,000   $169,385,000
217.24  Airports               19,407,000     19,498,000     38,905,000 
217.25  C.S.A.H.              405,330,000    418,113,000    823,443,000 
217.26  Highway User           15,853,000     16,150,000     32,878,000 
217.27  For 2001 - $875,000
217.28  M.S.A.S.              106,469,000    109,827,000    216,296,000 
217.29  Special Revenue           979,000        994,000      1,973,000 
217.30  Trunk 
217.31  Highway             1,065,765,000  1,081,984,000  2,148,194,000 
217.33  For 2001 - $445,000
217.34  TOTAL              $1,698,375,000 $1,731,379,000 $3,429,754,000
217.35  For 2001 - $1,320,000
217.36                                             APPROPRIATIONS 
217.37                                         Available for the Year 
217.38                                             Ending June 30 
217.39                                            2002         2003 
218.1   Sec. 2.  TRANSPORTATION 
218.2   Subdivision 1.  Total 
218.3   Appropriation                     $1,526,974,000 $1,557,288,000
218.4   The appropriations in this section are 
218.5   from the trunk highway fund, except 
218.6   when another fund is named. 
218.7                 Summary by Fund
218.8   General             16,007,000     16,033,000
218.9   Airports            19,357,000     19,448,000
218.10  C.S.A.H.           405,330,000    418,113,000
218.11  M.S.A.S.           106,469,000    109,827,000
218.12  Trunk Highway      979,811,000    993,867,000
218.13  The amounts that may be spent from this 
218.14  appropriation for each program are 
218.15  specified in the following subdivisions.
218.16  Subd. 2.  Aeronautics                 19,348,000     19,439,000
218.17                Summary by Fund
218.18  Airports            19,287,000     19,378,000
218.19  General                 50,000         50,000
218.20  Trunk Highway           11,000         11,000
218.21  Except as otherwise provided, the 
218.22  appropriations in this subdivision are 
218.23  from the state airports fund. 
218.24  The amounts that may be spent from this 
218.25  appropriation for each activity are as 
218.26  follows:  
218.27  (a) Airport Development and Assistance 
218.28      13,798,000     13,798,000
218.29  These appropriations must be spent 
218.30  according to Minnesota Statutes, 
218.31  section 360.305, subdivision 4. 
218.32  (b) Aviation Support 
218.33       5,415,000      5,503,000
218.34  $65,000 the first year and $65,000 the 
218.35  second year are for the civil air 
218.36  patrol. 
218.37  (c) Air Transportation Services 
218.38         135,000        138,000 
218.39                Summary by Fund
218.40  Airports                 74,000         77,000
218.41  General                  50,000         50,000
218.42  Trunk Highway            11,000         11,000
219.1   Subd. 3.  Transit                    15,839,000     15,860,000
219.2   For 2001 - $10,000,000
219.3                 Summary by Fund
219.4   General              15,499,000     15,512,000
219.5   Trunk Highway           340,000        348,000
219.6   The amounts that may be spent from this 
219.7   appropriation for each activity are as 
219.8   follows:  
219.9   (a) Greater Minnesota Transit
219.10  Assistance 
219.11      15,001,000    15,001,000
219.12  This appropriation is from the general 
219.13  fund.  Any unencumbered balance the 
219.14  first year does not cancel but is 
219.15  available for the second year.  
219.16  (b) Transit Administration   
219.17         838,000       859,000
219.18                Summary by Fund
219.19  General                 498,000       511,000
219.20  Trunk Highway           340,000       348,000
219.21  Subd. 4.  Railroads and Waterways    1,608,000      1,654,000
219.22                Summary by Fund
219.23  General                 273,000       280,000
219.24  Trunk Highway         1,335,000     1,374,000 
219.25  Subd. 5.  Motor Carrier Regulation   3,524,000      3,623,000
219.26                Summary by Fund
219.27  General                 122,000       126,000
219.28  Trunk Highway         3,402,000     3,497,000
219.29  Subd. 6.  Local Roads              511,799,000    527,940,000
219.30                Summary by Fund
219.31  C.S.A.H.            405,330,000   418,113,000
219.32  M.S.A.S.            106,469,000   109,827,000
219.33  The amounts that may be spent from this 
219.34  appropriation for each activity are as 
219.35  follows:  
219.36  (a) County State Aids 
219.37     405,330,000    418,113,000
219.38  This appropriation is from the county 
219.39  state-aid highway fund and is available 
219.40  until spent.  
219.41  (b) Municipal State Aids 
220.1      106,469,000    109,827,000
220.2   This appropriation is from the 
220.3   municipal state-aid street fund and is 
220.4   available until spent.  
220.5   If an appropriation for either county 
220.6   state aids or municipal state aids does 
220.7   not exhaust the balance in the fund 
220.8   from which it is made in the year for 
220.9   which it is made, the commissioner of 
220.10  finance, upon request of the 
220.11  commissioner of transportation, shall 
220.12  notify the chair of the transportation 
220.13  finance committee of the house of 
220.14  representatives and the chair of the 
220.15  transportation budget division of the 
220.16  senate of the amount of the remainder 
220.17  and shall then add that amount to the 
220.18  appropriation.  The amount added is 
220.19  appropriated for the purposes of county 
220.20  state aids or municipal state aids, as 
220.21  appropriate.  
220.22  Subd. 7.  State Roads                929,175,000    942,131,000
220.23                Summary by Fund
220.24  General                  9,000          9,000
220.25  Trunk Highway      929,166,000    942,122,000
220.26  The amounts that may be spent from this 
220.27  appropriation for each activity are as 
220.28  follows:  
220.29  (a) State Road Construction 
220.30     521,707,000    521,707,000
220.31  It is estimated that these 
220.32  appropriations will be funded as 
220.33  follows:  
220.34  Federal Highway Aid 
220.35     275,000,000    300,000,000
220.36  Highway User Taxes 
220.37     246,707,000    221,707,000
220.38  The commissioner of transportation 
220.39  shall notify the chair of the 
220.40  transportation budget division of the 
220.41  senate and chair of the transportation 
220.42  finance committee of the house of 
220.43  representatives quarterly of any events 
220.44  that should cause these estimates to 
220.45  change. 
220.46  This appropriation is for the actual 
220.47  construction, reconstruction, and 
220.48  improvement of trunk highways.  This 
220.49  includes the cost of actual payment to 
220.50  landowners for lands acquired for 
220.51  highway rights-of-way, payment to 
220.52  lessees, interest subsidies, and 
220.53  relocation expenses. 
220.54  The commissioner may receive money 
221.1   covering other shares of the cost of 
221.2   partnership projects.  These receipts 
221.3   are appropriated to the commissioner 
221.4   for these projects. 
221.5   (b) Highway Debt Service 
221.6       19,235,000     24,228,000
221.7   If this appropriation is insufficient 
221.8   to make all transfers required in the 
221.9   year for which it is made, the 
221.10  commissioner of finance shall notify 
221.11  the committee on state government 
221.12  finance of the senate and the committee 
221.13  on ways and means of the house of 
221.14  representatives of the amount of the 
221.15  deficiency and shall then transfer that 
221.16  amount under the statutory open 
221.17  appropriation.  
221.18  Any excess appropriation must be 
221.19  canceled to the trunk highway fund. 
221.20  (c) Research and Investment Management 
221.21      12,087,000     12,311,000
221.22  $600,000 the first year and $600,000 
221.23  the second year are available for 
221.24  grants for transportation studies 
221.25  outside the metropolitan area to 
221.26  identify critical concerns, problems, 
221.27  and issues.  These grants are available 
221.28  to (1) regional development 
221.29  commissions, and (2) in regions where 
221.30  no regional development commission is 
221.31  functioning, joint powers boards 
221.32  established under agreement of two or 
221.33  more political subdivisions in the 
221.34  region to exercise the planning 
221.35  functions of a regional development 
221.36  commission, and (3) in regions where no 
221.37  regional development commission or 
221.38  joint powers board is functioning, the 
221.39  department's district office for that 
221.40  region. 
221.41  $266,000 the first year and $266,000 
221.42  the second year are available for 
221.43  grants to metropolitan planning 
221.44  organizations outside the seven-county 
221.45  metropolitan area, including the 
221.46  Mankato area. 
221.47  (d) Central Engineering Services
221.48      68,954,000     70,261,000
221.49  (e) Design and Construction Engineering
221.50      84,991,000     87,202,000
221.51  (f) State Road Operations
221.52     216,559,000    220,651,000
221.53  (g) Electronic Communications
221.54       5,642,000      5,771,000
222.1                 Summary by Fund
222.2   General                   9,000         9,000
222.3   Trunk Highway         5,633,000     5,762,000
222.4   Subd. 8.  General Support             45,681,000     46,641,000
222.5                 Summary by Fund
222.6   General                  54,000        56,000
222.7   Airports                 70,000        70,000 
222.8   Trunk Highway        45,557,000    46,515,000
222.9   The amounts that may be spent from this 
222.10  appropriation for each activity are as 
222.11  follows:  
222.12  (a) General Management       
222.13      33,989,000     34,706,000
222.14  (b) General Services
222.15      11,692,000     11,935,000
222.16                Summary by Fund
222.17  General                  54,000        56,000
222.18  Airports                 70,000        70,000 
222.19  Trunk Highway        11,568,000    11,809,000 
222.20  If the appropriation for either year is 
222.21  insufficient, the appropriation for the 
222.22  other year is available for it.  
222.23  Subd. 9.  Transfers
222.24  (a) The commissioner of transportation 
222.25  with the approval of the commissioner 
222.26  of finance may transfer unencumbered 
222.27  balances among the appropriations from 
222.28  the trunk highway fund and the state 
222.29  airports fund made in this section.  No 
222.30  transfer may be made from the 
222.31  appropriation for state road 
222.32  construction.  No transfer may be made 
222.33  from the appropriations for debt 
222.34  service to any other appropriation.  
222.35  Transfers under this paragraph may not 
222.36  be made between funds.  Transfers must 
222.37  be reported immediately to the chair of 
222.38  the transportation budget division of 
222.39  the senate and the chair of the 
222.40  transportation finance committee of the 
222.41  house of representatives.  
222.42  (b) The commissioner of finance shall 
222.43  transfer from the flexible account in 
222.44  the county state-aid highway fund 
222.45  $6,400,000 the first year and 
222.46  $2,400,000 the second year to the 
222.47  municipal turnback account in the 
222.48  municipal state-aid street fund, and 
222.49  the remainder in each year to the 
222.50  county turnback account in the county 
222.51  state-aid highway fund. 
223.1   Subd. 10.  Use of State Road 
223.2   Construction Appropriations 
223.3   Any money appropriated to the 
223.4   commissioner of transportation for 
223.5   state road construction for any fiscal 
223.6   year before fiscal year 2001 is 
223.7   available to the commissioner during 
223.8   fiscal years 2002 and 2003 to the 
223.9   extent that the commissioner spends the 
223.10  money on the state road construction 
223.11  project for which the money was 
223.12  originally encumbered during the fiscal 
223.13  year for which it was appropriated. 
223.14  The commissioner of transportation 
223.15  shall report to the commissioner of 
223.16  finance by August 1, 2001, and August 
223.17  1, 2002, on a form the commissioner of 
223.18  finance provides, on expenditures made 
223.19  during the previous fiscal year that 
223.20  are authorized by this subdivision. 
223.21  Subd. 11.  Contingent Appropriation 
223.22  The commissioner of transportation, 
223.23  with the approval of the governor after 
223.24  consultation with the legislative 
223.25  advisory commission under Minnesota 
223.26  Statutes, section 3.30, may transfer 
223.27  all or part of the unappropriated 
223.28  balance in the trunk highway fund to an 
223.29  appropriation (1) for trunk highway 
223.30  design, construction, or inspection in 
223.31  order to take advantage of an 
223.32  unanticipated receipt of income to the 
223.33  trunk highway fund, (2) for trunk 
223.34  highway maintenance in order to meet an 
223.35  emergency, or (3) to pay tort or 
223.36  environmental claims.  The amount 
223.37  transferred is appropriated for the 
223.38  purpose of the account to which it is 
223.39  transferred. 
223.40  Sec. 3.  METROPOLITAN COUNCIL  
223.41  TRANSIT                               56,801,000     56,801,000
223.42  The council may not spend more than 
223.43  $42,200,000 for metro mobility in the 
223.44  2002-2003 fiscal biennium except for 
223.45  proceeds from bond sales when use of 
223.46  those proceeds for metro mobility 
223.47  capital expenditures is authorized by 
223.48  law. 
223.49  Sec. 4.  PUBLIC SAFETY
223.50  Subdivision 1.  Total       
223.51  Appropriation                        113,625,000    116,315,000 
223.52                Summary by Fund
223.53  General              11,764,000     11,979,000
223.54  Trunk
223.55  Highway              85,154,000     87,317,000
223.56  For 2001 - $445,000
223.57  Highway User         15,728,000     16,025,000
224.1   For 2001 - $875,000
224.2   Special 
224.3   Revenue                 979,000        994,000
224.4   Subd. 2.  Administration 
224.5   and Related Services                  13,169,000     13,365,000
224.6                 Summary by Fund
224.7   General               4,578,000      4,603,000
224.8   Trunk Highway         7,206,000      7,377,000
224.9   Highway User          1,385,000      1,385,000
224.10  (a) Office of Communications
224.11         390,000        398,000
224.12                Summary by Fund
224.13  General                  20,000        20,000
224.14  Trunk Highway           370,000       378,000
224.15  (b) Public Safety Support
224.16       7,903,000      7,995,000
224.17                Summary by Fund
224.18  General               3,086,000      3,087,000
224.19  Trunk Highway         3,451,000      3,542,000
224.20  Highway User          1,366,000      1,366,000
224.21  $326,000 the first year and $326,000 
224.22  the second year are for payment of 
224.23  public safety officer survivor benefits 
224.24  under Minnesota Statutes, section 
224.25  299A.44.  If the appropriation for 
224.26  either year is insufficient, the 
224.27  appropriation for the other year is 
224.28  available for it. 
224.29  $314,000 the first year and $314,000 
224.30  the second year are to be deposited in 
224.31  the public safety officer's benefit 
224.32  account.  This money is available for 
224.33  reimbursements under Minnesota 
224.34  Statutes, section 299A.465. 
224.35  $508,000 the first year and $508,000 
224.36  the second year are for soft body armor 
224.37  reimbursements under Minnesota 
224.38  Statutes, section 299A.38.  
224.39  (c) Technical Support Services
224.40       4,876,000       4,972,000
224.41                Summary by Fund
224.42  General               1,472,000      1,496,000
224.43  Trunk Highway         3,385,000      3,457,000
224.44  Highway User             19,000         19,000
225.1   Subd. 3.  State Patrol                59,509,000     61,123,000
225.2                 Summary by Fund
225.3   General               3,354,000      3,447,000
225.4   Trunk Highway        56,063,000     57,584,000
225.5   Highway User             92,000         92,000
225.6   (a) Patrolling Highways
225.7        49,693,000     51,029,000
225.8                 Summary by Fund
225.9   General                  37,000        37,000
225.10  Trunk Highway        49,564,000    50,900,000
225.11  Highway Users            92,000        92,000
225.12  (b) Commercial Vehicle Enforcement
225.13       6,295,000      6,474,000
225.14  This appropriation is from the trunk 
225.15  highway fund. 
225.16  (c) Capitol Security
225.17       3,521,000      3,620,000
225.18                Summary by Fund
225.19  General               3,317,000     3,410,000
225.20  Trunk Highway           204,000       210,000
225.21  Subd. 4.  Driver and
225.22  Vehicle Services                      39,651,000     40,509,000
225.23                Summary by Fund
225.24  General               3,832,000      3,929,000
225.25  Trunk Highway        21,568,000     22,032,000
225.26  For 2001 - $445,000
225.27  Highway User         14,251,000     14,548,000 
225.28  For 2001 - $875,000
225.29  (a) Vehicle Registration 
225.30  and Title
225.31      18,028,000     18,421,000
225.32                Summary by Fund
225.33  General               3,777,000     3,873,000
225.34  Highway User         14,251,000    14,548,000
225.35  For 2001 - $875,000
225.36  $875,000 from the highway user fund is 
225.37  added to the appropriation for fiscal 
225.38  year 2001 in Laws 1999, chapter 238, 
225.39  article 1, section 4, subdivision 4, 
226.1   paragraph (a), for increased license 
226.2   plate costs. 
226.3   (b) Licensing Drivers 
226.4       21,623,000     22,088,000
226.5                 Summary by Fund
226.6   General                  55,000        56,000
226.7   Trunk Highway        21,568,000    22,032,000
226.8   For 2001 - $445,000
226.9   $445,000 from the trunk highway fund is 
226.10  added to the appropriation for fiscal 
226.11  year 2001 in Laws 1999, chapter 238, 
226.12  article 1, section 4, subdivision 4, 
226.13  paragraph (c), for increased driver's 
226.14  license card production costs. 
226.15  Subd. 5.  Traffic Safety                 317,000        324,000
226.16  This appropriation is from the trunk 
226.17  highway fund. 
226.18  Subd. 6.  Pipeline Safety                979,000        994,000
226.19  This appropriation is from the pipeline 
226.20  safety account in the special revenue 
226.21  fund. 
226.22  Sec. 5.  GENERAL CONTINGENT 
226.23  ACCOUNTS                                 375,000       375,000
226.24  The appropriations in this section may 
226.25  only be spent with the approval of the 
226.26  governor after consultation with the 
226.27  legislative advisory commission 
226.28  pursuant to Minnesota Statutes, section 
226.29  3.30. 
226.30  If an appropriation in this section for 
226.31  either year is insufficient, the 
226.32  appropriation for the other year is 
226.33  available for it.  
226.34                Summary by Fund
226.35  Trunk Highway           200,000       200,000
226.36  Highway User            125,000       125,000
226.37  Airports                 50,000        50,000
226.38  Sec. 6.  TORT CLAIMS                     600,000       600,000
226.39  To be spent by the commissioner of 
226.40  finance.  
226.41  This appropriation is from the trunk 
226.42  highway fund. 
226.43  If the appropriation for either year is 
226.44  insufficient, the appropriation for the 
226.45  other year is available for it. 
226.46                             ARTICLE 21
226.47                    PUBLIC SAFETY AND JUDICIARY
227.1   Section 1.  [PUBLIC SAFETY AND JUDICIARY APPROPRIATIONS.] 
227.2      The sums shown in the columns marked "APPROPRIATIONS" are 
227.3   appropriated from the general fund, or another named fund, to 
227.4   the agencies and for the purposes specified in this article, to 
227.5   be available for the fiscal years indicated for each purpose.  
227.6   The figures "2001," "2002," and "2003," where used in this 
227.7   article, mean that the appropriations listed under them are 
227.8   available for the year ending June 30, 2001, June 30, 2002, or 
227.9   June 30, 2003, respectively.  The term "first year" means the 
227.10  year ending June 30, 2002, and the term "second year" means the 
227.11  year ending June 30, 2003.  Appropriations for the year ending 
227.12  June 30, 2001, are in addition to appropriations made in 
227.13  previous years.  All 2001 appropriations in this article are 
227.14  effective immediately on final enactment and do not cancel, but 
227.15  are available until expended. 
227.16                          SUMMARY BY FUND
227.17                                                      BIENNIAL
227.18                            2002          2003          TOTAL
227.19  General            $  223,609,000 $  235,036,000 $  458,645,000
227.20  Special Revenue         4,936,000      4,981,000      9,917,000
227.21  Environmental              47,000         49,000         96,000
227.22  State Government 
227.23  Special Revenue             7,000          7,000         14,000
227.24  Trunk Highway             354,000        361,000        715,000
227.25  TOTAL              $  228,953,000 $  240,434,000 $  469,387,000
227.26                                             APPROPRIATIONS 
227.27                                         Available for the Year 
227.28                                             Ending June 30 
227.29                                            2002         2003 
227.30  Sec. 2.  SUPREME COURT 
227.31  Subdivision 1.  Total 
227.32  Appropriation                       $ 28,251,000   $ 30,097,000
227.33  The amounts that may be spent from this 
227.34  appropriation for each program are 
227.35  specified in the following subdivisions.
227.36  Subd. 2.  Supreme Court Operations 
227.37       4,692,000      4,821,000
227.38  $5,000 the first year and $5,000 the 
227.39  second year are for a contingent 
227.40  account for expenses necessary for the 
227.41  normal operation of the court for which 
227.42  no other reimbursement is provided. 
228.1   Subd. 3.  Civil Legal Services
228.2        6,484,000      6,484,000
228.3   (a) This appropriation is for legal 
228.4   services to low-income clients and for 
228.5   family farm legal assistance under 
228.6   Minnesota Statutes, section 480.242.  
228.7   Any unencumbered balance remaining in 
228.8   the first year does not cancel but is 
228.9   available for the second year of the 
228.10  biennium.  A qualified legal services 
228.11  program, as defined in Minnesota 
228.12  Statutes, section 480.24, subdivision 
228.13  3, may provide legal services to 
228.14  persons eligible for family farm legal 
228.15  assistance under Minnesota Statutes, 
228.16  section 480.242.  
228.17  (b) Of this appropriation, $877,000 the 
228.18  first year and $877,000 the second year 
228.19  are to improve the access of low-income 
228.20  clients to legal representation in 
228.21  family law matters.  This appropriation 
228.22  must be distributed under Minnesota 
228.23  Statutes, section 480.242, to the 
228.24  qualified legal services programs 
228.25  described in Minnesota Statutes, 
228.26  section 480.242, subdivision 2, 
228.27  paragraph (a).  Any unencumbered 
228.28  balance remaining in the first year 
228.29  does not cancel and is available for 
228.30  the second year of the biennium. 
228.31  Subd. 4.  State Court Administration 
228.32      15,176,000     16,847,000
228.33  Subd. 5.  Law Library Operations 
228.34       1,899,000      1,945,000
228.35  Sec. 3.  COURT OF APPEALS              7,299,000      7,881,000
228.36  Sec. 4.  DISTRICT COURTS             108,605,000    116,945,000
228.37  Sec. 5.  BOARD ON JUDICIAL  
228.38  STANDARDS                                245,000        252,000
228.39  Sec. 6.  TAX COURT                       692,000        713,000
228.40  FY 2001 - $14,000
228.41  Sec. 7.  HUMAN RIGHTS                  4,032,000      4,148,000
228.42  Sec. 8.  UNIFORM LAWS COMMISSION          39,000         40,000
228.43  Sec. 9.  CRIME VICTIM 
228.44  OMBUDSMAN                                400,000        411,000
228.45  Sec. 10.  PUBLIC SAFETY
228.46  Subdivision 1.  Total 
228.47  Appropriation                         74,554,000     75,075,000
228.48                Summary by Fund
228.49                          2002          2003
228.50  General             73,602,000    74,101,000 
229.1   Special Revenue        544,000       557,000 
229.2   State Government 
229.3   Special Revenue          7,000         7,000  
229.4   Environmental           47,000        49,000  
229.5   Trunk Highway          354,000       361,000
229.6   The amounts that may be spent from this 
229.7   appropriation for each program are 
229.8   specified in the following subdivisions.
229.9   Subd. 2.  Emergency Management
229.10                Summary by Fund
229.11  General                3,874,000    3,916,000
229.12  Environmental             47,000       49,000
229.13  Subd. 3.  Criminal Apprehension 
229.14                Summary by Fund
229.15  General              28,050,000   28,336,000
229.16  Special Revenue         544,000      557,000
229.17  State Government
229.18  Special Revenue           7,000        7,000
229.19  Trunk Highway           354,000      361,000
229.20  (a) $99,000 the first year and $99,000 
229.21  the second year from the bureau of 
229.22  criminal apprehension account in the 
229.23  special revenue fund are for grants to 
229.24  local officials for the cooperative 
229.25  investigation of cross-jurisdictional 
229.26  criminal activity.  Any unencumbered 
229.27  balance remaining in the first year 
229.28  does not cancel but is available for 
229.29  the second year. 
229.30  (b) $1,332,000 the first year and 
229.31  $1,357,000 the second year from the 
229.32  general fund are for laboratory 
229.33  analysis related to driving while 
229.34  impaired cases. 
229.35  (c) Notwithstanding Minnesota Statutes, 
229.36  section 161.20, subdivision 3, $354,000 
229.37  the first year and $361,000 the second 
229.38  year from the trunk highway fund are 
229.39  for laboratory analysis related to 
229.40  driving while impaired cases. 
229.41  Subd. 4.  Fire Marshal 
229.42       3,280,000      3,363,000
229.43  Subd. 5.  Alcohol and Gambling Enforcement
229.44       1,822,000      1,864,000
229.45  Subd. 6.  Crime Victim Services Center
229.46      31,152,000     31,186,000
229.47  Subd. 7.  Law Enforcement and Community Grants
230.1        5,424,000      5,436,000
230.2   Sec. 11.  BOARD OF PEACE OFFICER 
230.3   STANDARDS AND TRAINING                 4,692,000      4,724,000
230.4                 Summary by Fund
230.5   General                 300,000       300,000
230.6   Special Revenue       4,392,000     4,424,000
230.7   The appropriation from the special 
230.8   revenue fund is from the peace officer 
230.9   training account.  Any receipts 
230.10  credited to the peace officer training 
230.11  account in the special revenue fund in 
230.12  the first year in excess of $4,392,000 
230.13  must be transferred and credited to the 
230.14  general fund.  Any receipts credited to 
230.15  the peace officer training account in 
230.16  the special revenue fund in the second 
230.17  year in excess of $4,424,000 must be 
230.18  transferred and credited to the general 
230.19  fund. 
230.20  The appropriation from the general fund 
230.21  is to reimburse local law enforcement 
230.22  agencies for the cost of providing 
230.23  training in emergency vehicle 
230.24  operations and police pursuit. 
230.25  Sec. 12.  BOARD OF PRIVATE DETECTIVE 
230.26  AND PROTECTIVE AGENT SERVICES            144,000        148,000
230.27  The board may increase the amounts 
230.28  charged for initial licenses, 
230.29  application fees, reissuance fees, 
230.30  designation fees, status fees, and 
230.31  business fees as specified on page 
230.32  H-331 of the governor's 2002-2003 
230.33  proposed criminal justice budget. 
230.34                             ARTICLE 22
230.35                            CORRECTIONS
230.36  Section 1.  [CRIMINAL JUSTICE APPROPRIATIONS.] 
230.37     The sums shown in the columns marked "APPROPRIATIONS" are 
230.38  appropriated from the general fund, or another fund named, to 
230.39  the agencies and for the purposes specified in this act, to be 
230.40  available for the fiscal years indicated for each purpose.  The 
230.41  figures "2002" and "2003" where used in this article, mean that 
230.42  the appropriation or appropriations listed under them are 
230.43  available for the year ending June 30, 2002, or June 30, 2003, 
230.44  respectively. 
230.45                          SUMMARY BY FUND
230.46                                                      BIENNIAL
230.47                            2002          2003          TOTAL
230.48  General            $  410,616,000 $  423,209,000 $  833,825,000
231.1   Special Revenue         1,389,000      1,242,000      2,631,000
231.2   TOTAL              $  412,005,000 $  424,451,000 $  836,456,000
231.3                                              APPROPRIATIONS 
231.4                                          Available for the Year 
231.5                                              Ending June 30 
231.6                                             2002         2003 
231.7   Sec. 2.  BOARD OF PUBLIC DEFENSE 
231.8   Subdivision 1.  Total       
231.9   Appropriation                         49,067,000     50,588,000
231.10  None of this appropriation shall be 
231.11  used to pay for lawsuits against public 
231.12  agencies or public officials to change 
231.13  social or public policy.  
231.14  During the biennium ending June 30, 
231.15  2003, the state public defender may, 
231.16  with the approval of the commissioner 
231.17  of finance, transfer funds for 
231.18  transcript costs from the office of 
231.19  administrative services to the state 
231.20  public defender. 
231.21  The amounts that may be spent from this 
231.22  appropriation for each program are 
231.23  specified in the following subdivisions.
231.24  Subd. 2.  State Public      
231.25  Defender 
231.26       3,341,000      3,507,000
231.27  Subd. 3.  Administrative Services  
231.28  Office  
231.29       2,135,000      2,175,000
231.30  Subd. 4.  District Public   
231.31  Defense  
231.32      43,591,000     44,906,000 
231.33  $1,326,000 the first year and 
231.34  $1,366,000 the second year are for 
231.35  grants to the five existing public 
231.36  defense corporations under Minnesota 
231.37  Statutes, section 611.216. 
231.38  Sec. 3.  CORRECTIONS 
231.39  Subdivision 1.  Total 
231.40  Appropriation                        362,102,000    372,997,000
231.41                Summary by Fund
231.42  General             360,713,000   371,755,000
231.43  Special Revenue       1,389,000     1,242,000
231.44  The amounts that may be spent from this 
231.45  appropriation for each program are 
231.46  specified in the following subdivisions.
231.47  Any unencumbered balances remaining in 
231.48  the first year do not cancel but are 
231.49  available for the second year of the 
231.50  biennium. 
232.1   Positions and administrative money may 
232.2   be transferred within the department of 
232.3   corrections as the commissioner 
232.4   considers necessary, upon the advance 
232.5   approval of the commissioner of finance.
232.6   For the biennium ending June 30, 2003, 
232.7   the commissioner of corrections may, 
232.8   with the approval of the commissioner 
232.9   of finance, transfer funds to or from 
232.10  salaries. 
232.11  During the biennium ending June 30, 
232.12  2003, the commissioner may enter into 
232.13  contracts with private corporations or 
232.14  governmental units of the state of 
232.15  Minnesota to house adult offenders 
232.16  committed to the commissioner of 
232.17  corrections.  Every effort shall be 
232.18  made to house individuals committed to 
232.19  the commissioner of corrections in 
232.20  Minnesota correctional facilities. 
232.21  Subd. 2.  Correctional 
232.22  Institutions  
232.23                Summary by Fund
232.24  General Fund        231,202,000    241,146,000 
232.25  Special Revenue Fund    932,000        785,000 
232.26  If the commissioner contracts with 
232.27  other states, local units of 
232.28  government, or the federal government 
232.29  to rent beds in the Rush City 
232.30  correctional facility under Minnesota 
232.31  Statutes, section 243.51, subdivision 
232.32  1, to the extent possible, the 
232.33  commissioner shall charge a per diem 
232.34  under the contract that is equal to or 
232.35  greater than the per diem cost of 
232.36  housing Minnesota inmates in the 
232.37  facility.  This per diem cost shall be 
232.38  based on the assumption that the 
232.39  facility is at or near capacity.  
232.40  Notwithstanding any law to the 
232.41  contrary, the per diem money is 
232.42  appropriated to the commissioner to 
232.43  operate the state correctional 
232.44  institutions. 
232.45  The commissioner may use any cost 
232.46  savings generated through the 
232.47  implementation of a per diem reduction 
232.48  plan for capital improvements, which 
232.49  will contribute to further per diem 
232.50  reductions at adult correctional 
232.51  facilities. 
232.52  Subd. 3.  Juvenile Services
232.53      13,984,000     14,283,000 
232.54  Subd. 4.  Community Services 
232.55                Summary by Fund
232.56  General              102,697,000   103,241,000
232.57  Special Revenue          150,000       150,000
233.1   $4,283,000 the first year and 
233.2   $8,000,000 the second year are for 
233.3   juvenile residential treatment grants. 
233.4   Subd. 5.  Management Services
233.5                 Summary by Fund
233.6   General Fund         12,830,000     13,085,000 
233.7   Special Revenue Fund    307,000        307,000 
233.8   Sec. 4.  CORRECTIONS OMBUDSMAN          323,000        336,000
233.9   Sec. 5.  SENTENCING GUIDELINES
233.10  COMMISSION                              513,000        530,000 
233.11     Sec. 6.  Minnesota Statutes 2000, section 242.192, is 
233.12  amended to read: 
233.13     242.192 [CHARGES TO COUNTIES.] 
233.14     (a) Until June 30, 2001 2002, the commissioner shall charge 
233.15  counties or other appropriate jurisdictions 65 percent of the 
233.16  per diem cost of confinement, excluding educational costs and 
233.17  nonbillable service, of juveniles at the Minnesota correctional 
233.18  facility-Red Wing and of juvenile females committed to the 
233.19  commissioner of corrections.  This charge applies to juveniles 
233.20  committed to the commissioner of corrections and juveniles 
233.21  admitted to the Minnesota correctional facility-Red Wing under 
233.22  established admissions criteria.  This charge applies to both 
233.23  counties that participate in the Community Corrections Act and 
233.24  those that do not.  The commissioner shall determine the per 
233.25  diem cost of confinement based on projected population, pricing 
233.26  incentives, market conditions, and the requirement that expense 
233.27  and revenue balance out over a period of two years.  All money 
233.28  received under this section must be deposited in the state 
233.29  treasury and credited to the general fund. 
233.30     (b) Until June 30, 2001 2002, the department of corrections 
233.31  shall be responsible for 35 percent of the per diem cost of 
233.32  confinement described in this section.