1.1                          A bill for an act 
  1.2             relating to education; kindergarten through grade 12; 
  1.3             providing for budget modifications, education policy, 
  1.4             and technical amendments; appropriating money; 
  1.5             amending Minnesota Statutes 2000, sections 4.07, 
  1.6             subdivision 3; 121A.11, by adding subdivisions; 
  1.7             123B.78, subdivision 3; 123B.92, subdivision 3; 
  1.8             124D.03, subdivision 12; 124D.10, subdivision 13, by 
  1.9             adding a subdivision; 124D.385, subdivision 3, by 
  1.10            adding a subdivision; 124D.86, subdivisions 4, 5, 6; 
  1.11            125A.12; 126C.10, subdivision 3; 126C.50; 127A.47, 
  1.12            subdivision 7; 136F.68; 260B.171, subdivision 3; 
  1.13            Minnesota Statutes 2001 Supplement, sections 122A.61, 
  1.14            subdivision 1; 123B.54; 124D.10, subdivisions 8, 23a; 
  1.15            124D.20, subdivision 5; 124D.86, subdivision 3; 
  1.16            126C.05, subdivision 15; 126C.17, subdivisions 1, 5; 
  1.17            126C.43, subdivision 3; 127A.45, subdivision 12; Laws 
  1.18            1997, First Special Session chapter 4, article 3, 
  1.19            section 25, subdivision 7; Laws 2001, First Special 
  1.20            Session chapter 6, article 1, section 54, subdivisions 
  1.21            2, 4, 5, 6, 7; Laws 2001, First Special Session 
  1.22            chapter 6, article 2, section 77, subdivisions 4, 5, 
  1.23            7, 8, 11, 15, 18, 22, 23, 25, as amended; Laws 2001, 
  1.24            First Special Session chapter 6, article 3, section 
  1.25            21, subdivisions 2, 3, 4, 5, 7, 11; Laws 2001, First 
  1.26            Special Session chapter 6, article 4, section 27, 
  1.27            subdivisions 2, 3, 5, 6; Laws 2001, First Special 
  1.28            Session chapter 6, article 5, section 13, subdivisions 
  1.29            2, 5; Laws 2001, First Special Session chapter 6, 
  1.30            article 7, sections 13, as amended; 14; proposing 
  1.31            coding for new law in Minnesota Statutes, chapters 
  1.32            120B; 126C; repealing Minnesota Statutes 2000, 
  1.33            sections 123B.59, subdivisions 6, 7; 124D.453; 
  1.34            124D.46; 126C.55, subdivision 5; 127A.41, subdivision 
  1.35            6; Minnesota Statutes 2001 Supplement, sections 93.22, 
  1.36            subdivision 2; 93.223; 93.2235; Laws 2000, chapter 
  1.37            489, article 2, section 36, as amended; Laws 2001, 
  1.38            First Special Session chapter 3, article 4, section 1; 
  1.39            Laws 2001, First Special Session chapter 6, article 1, 
  1.40            section 31. 
  1.41  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.42                             ARTICLE 1 
  1.43                        BUDGET MODIFICATIONS 
  2.1      Section 1.  Minnesota Statutes 2000, section 4.07, 
  2.2   subdivision 3, is amended to read: 
  2.3      Subd. 3.  [FEDERAL AND STATE LAW; APPROPRIATION OF FUNDS.] 
  2.4   (a) The governor or any state department or agency designated by 
  2.5   the governor shall comply with any and all requirements of 
  2.6   federal law and any rules and regulations promulgated thereunder 
  2.7   to enable the application for, the receipt of, and the 
  2.8   acceptance of such federal funds.  The expenditure of any such 
  2.9   funds received shall be governed by the laws of the state except 
  2.10  insofar as federal requirements may otherwise provide.  All such 
  2.11  money received by the governor or any state department or agency 
  2.12  designated by the governor for such purpose shall be deposited 
  2.13  in the state treasury and, subject to section 3.3005, are hereby 
  2.14  appropriated annually in order to enable the governor or the 
  2.15  state department or agency designated by the governor for such 
  2.16  purpose to carry out the purposes for which the funds are 
  2.17  received.  None of such federal money so deposited in the state 
  2.18  treasury shall cancel and they shall be available for 
  2.19  expenditure in accordance with the requirements of federal law.  
  2.20     (b) Notwithstanding paragraph (a), money received according 
  2.21  to the authorization in the federal law designated as the 
  2.22  Elementary and Secondary Education Act are not appropriated in 
  2.23  this subdivision and are available for expenditure only after 
  2.24  being appropriated for a specific year in a law. 
  2.25     Sec. 2.  Minnesota Statutes 2000, section 123B.78, 
  2.26  subdivision 3, is amended to read: 
  2.27     Subd. 3.  [TAX AND AID ANTICIPATION CERTIFICATES.] 
  2.28  Minnesota school districts may issue tax and aid anticipation 
  2.29  certificates and intermediate school districts may issue revenue 
  2.30  anticipation certificates in conformance with the provisions of 
  2.31  sections 126C.50 to 126C.56, with the additional provision that 
  2.32  the proceeds of such borrowing or any other method of borrowing 
  2.33  shall be recorded as liabilities of funds for which the taxes 
  2.34  were levied, or for which the aids are receivable.  Nothing in 
  2.35  this subdivision provides authority for borrowing against the 
  2.36  tax levies and aids of one district fund for the purpose of 
  3.1   increasing the available cash balance of another fund. 
  3.2      Sec. 3.  Minnesota Statutes 2001 Supplement, section 
  3.3   124D.20, subdivision 5, is amended to read: 
  3.4      Subd. 5.  [TOTAL COMMUNITY EDUCATION LEVY.] To obtain total 
  3.5   community education revenue, a district operating a youth 
  3.6   after-school enrichment program under section 124D.19, 
  3.7   subdivision 12, may levy the amount raised by a maximum tax rate 
  3.8   of .7431 0.994 percent times the adjusted net tax capacity of 
  3.9   the district.  To obtain total community education revenue, a 
  3.10  district not operating a youth after-school enrichment program 
  3.11  may levy the amount raised by a maximum tax rate of .4795 0.830 
  3.12  percent times the adjusted net tax capacity of the district.  If 
  3.13  the amount of the total community education levy would exceed 
  3.14  the total community education revenue, the total community 
  3.15  education levy shall be determined according to subdivision 
  3.16  6.  The rates in this subdivision must not be adjusted by Laws 
  3.17  2001, First Special Session chapter 6, article 5, section 12. 
  3.18     Sec. 4.  Minnesota Statutes 2000, section 124D.385, 
  3.19  subdivision 3, is amended to read: 
  3.20     Subd. 3.  [DUTIES.] (a) The commission shall: 
  3.21     (1) develop, with the assistance of the governor, the 
  3.22  commissioner of children, families, and learning, and affected 
  3.23  state agencies, a comprehensive state plan to provide services 
  3.24  under sections 124D.37 to 124D.45 and federal law; 
  3.25     (2) actively pursue public and private funding sources for 
  3.26  services, including funding available under federal law; 
  3.27     (3) coordinate volunteer service-learning programs within 
  3.28  the state; 
  3.29     (4) develop, in cooperation with the workforce development 
  3.30  council and the commissioner of children, families, and 
  3.31  learning, volunteer service-learning programs, including 
  3.32  curriculum, materials, and methods of instruction; 
  3.33     (5) work collaboratively with the workforce development 
  3.34  council, the commissioner of children, families, and learning, 
  3.35  schools, public and private agencies, for-profit and nonprofit 
  3.36  employers, and labor unions to identify mentoring and 
  4.1   service-learning opportunities, solicit and recruit participants 
  4.2   for these programs, and disseminate information on the programs; 
  4.3      (6) administer the youth works grant program under sections 
  4.4   124D.39 to 124D.44, with assistance from the commissioner of 
  4.5   children, families, and learning and the executive director of 
  4.6   the higher education services office, including soliciting and 
  4.7   approving grant applications from eligible organizations, and 
  4.8   administering individual postservice benefits; 
  4.9      (7) (4) establish an evaluation plan for programs developed 
  4.10  and services provided under sections 124D.37 to 124D.45; 
  4.11     (8) (5) report to the governor, commissioner of children, 
  4.12  families, and learning, and legislature; and 
  4.13     (9) provide oversight and support for school, campus, and 
  4.14  community-based service programs; and 
  4.15     (10) (6) administer the federal AmeriCorps program. 
  4.16     (b) Nothing in sections 124D.37 to 124D.45 precludes an 
  4.17  organization from independently seeking public or private 
  4.18  funding to accomplish purposes similar to those described in 
  4.19  paragraph (a). 
  4.20     (c) The commissioner of children, families, and learning 
  4.21  shall consult with commission members before the commissioner 
  4.22  selects the executive director for the commission, who shall 
  4.23  serve in the unclassified service. 
  4.24     <b>[EFFECTIVE DATE.]</b> This section, including the termination 
  4.25  of the employment of the executive director in the state 
  4.26  unclassified service, is effective July 1, 2002.  
  4.27     Sec. 5.  Minnesota Statutes 2000, section 124D.385, is 
  4.28  amended by adding a subdivision to read: 
  4.29     Subd. 4.  [DELEGATION TO NONPROFIT.] The commission may 
  4.30  create a private nonprofit corporation that is exempt from 
  4.31  taxation under section 501(c)(3) of the Internal Revenue Code of 
  4.32  1986.  If the commission creates a private nonprofit 
  4.33  corporation, the commission must serve as the corporation's 
  4.34  board of directors.  The private nonprofit corporation is not 
  4.35  subject to laws governing state agencies or political 
  4.36  subdivisions.  The commission may delegate any or all of its 
  5.1   powers and duties under federal law or under sections 124D.37 to 
  5.2   124D.45 to the corporation if the nonprofit corporation is 
  5.3   approved under federal law to administer the National and 
  5.4   Community Service Trust Act.  The commission may revoke a 
  5.5   delegation of powers and duties at any time, and must revoke the 
  5.6   delegation if the corporation is no longer approved under 
  5.7   federal law as the administrator in the state of Minnesota for 
  5.8   the National and Community Service Trust Act. 
  5.9      <b>[EFFECTIVE DATE.]</b> This section is effective the day 
  5.10  following final enactment. 
  5.11     Sec. 6.  Minnesota Statutes 2001 Supplement, section 
  5.12  124D.86, subdivision 3, is amended to read: 
  5.13     Subd. 3.  [INTEGRATION REVENUE.] Integration revenue equals 
  5.14  the following amounts: 
  5.15     (1) for independent school district No. 709, Duluth, $207 
  5.16  times the adjusted pupil units for the school year; 
  5.17     (2) for independent school district No. 625, St. Paul, and 
  5.18  for special school district No. 1, Minneapolis, $446 times the 
  5.19  adjusted pupil units for the school year; 
  5.20     (3) (2) for a district not listed in clause (1) or (2) that 
  5.21  must implement a plan under Minnesota Rules, parts 3535.0100 to 
  5.22  3535.0180, where the district's enrollment of protected 
  5.23  students, as defined under Minnesota Rules, part 3535.0110, 
  5.24  exceeds 15 percent, the lesser of (i) the actual cost of 
  5.25  implementing the plan during the fiscal year minus the aid 
  5.26  received under subdivision 6, or (ii) $130 times the adjusted 
  5.27  pupil units for the school year; 
  5.28     (4) (3) for a district not listed in clause (1), or (2), 
  5.29  or (3) that is required to implement a plan according to the 
  5.30  requirements of Minnesota Rules, parts 3535.0100 to 3535.0180, 
  5.31  the lesser of 
  5.32     (i) the actual cost of implementing the plan during the 
  5.33  fiscal year minus the aid received under subdivision 6, or 
  5.34     (ii) $93 times the adjusted pupil units for the school year.
  5.35     Any money received by districts in clauses (1) to (3) or (2)
  5.36  which exceeds the amount received in fiscal year 2000 shall be 
  6.1   subject to the budget requirements in subdivision 1a; and 
  6.2      (5) (4) for a member district of a multidistrict 
  6.3   integration collaborative that files a plan with the 
  6.4   commissioner, but is not contiguous to a racially isolated 
  6.5   district, integration revenue equals the amount defined in 
  6.6   clause (4) (3). 
  6.7      <b>[EFFECTIVE DATE.]</b> This section is effective for revenue for 
  6.8   fiscal year 2003.  
  6.9      Sec. 7.  Minnesota Statutes 2000, section 124D.86, 
  6.10  subdivision 4, is amended to read: 
  6.11     Subd. 4.  [INTEGRATION LEVY.] A district may levy an amount 
  6.12  equal to 33 37 percent for fiscal year 2000 2003 and 22 33 
  6.13  percent for fiscal year 2001 2004 and thereafter of the 
  6.14  district's integration revenue as defined in subdivision 3. 
  6.15     Sec. 8.  Minnesota Statutes 2000, section 124D.86, 
  6.16  subdivision 5, is amended to read: 
  6.17     Subd. 5.  [INTEGRATION AID.] A district's integration aid 
  6.18  equals 67 63 percent for fiscal year 2000 2003 and 78 67 
  6.19  percent for fiscal year 2001 2004 and thereafter of the 
  6.20  district's integration revenue as defined in subdivision 3. 
  6.21     Sec. 9.  Minnesota Statutes 2001 Supplement, section 
  6.22  126C.05, subdivision 15, is amended to read: 
  6.23     Subd. 15.  [LEARNING YEAR PUPIL UNITS.] (a) When a pupil is 
  6.24  enrolled in a learning year program under section 124D.128, an 
  6.25  area learning center under sections 123A.05 and 123A.06, an 
  6.26  alternative program approved by the commissioner, or a contract 
  6.27  alternative program under section 124D.68, subdivision 3, 
  6.28  paragraph (d), or subdivision 3a, for more than 1,020 hours in a 
  6.29  school year for a secondary student, more than 935 hours in a 
  6.30  school year for an elementary student, or more than 425 hours in 
  6.31  a school year for a kindergarten student without a disability, 
  6.32  that pupil may be counted as more than one pupil in average 
  6.33  daily membership.  The amount in excess of one pupil must be 
  6.34  determined by the ratio of the number of hours of instruction 
  6.35  provided to that pupil in excess of:  (i) the greater of 1,020 
  6.36  hours or the number of hours required for a full-time secondary 
  7.1   pupil in the district to 1,020 for a secondary pupil; (ii) the 
  7.2   greater of 935 hours or the number of hours required for a 
  7.3   full-time elementary pupil in the district to 935 for an 
  7.4   elementary pupil in grades 1 through 6; and (iii) the greater of 
  7.5   425 hours or the number of hours required for a full-time 
  7.6   kindergarten student without a disability in the district to 425 
  7.7   for a kindergarten student without a disability.  Hours that 
  7.8   occur after the close of the instructional year in June shall be 
  7.9   attributable to the following fiscal year.  A kindergarten 
  7.10  student must not be counted as more than 1.2 pupils in average 
  7.11  daily membership under this subdivision.  A student in grades 1 
  7.12  through 12 must not be counted as more than 1.5 pupils in 
  7.13  average daily membership under this subdivision. 
  7.14     (b)(i) To receive general education revenue for a pupil in 
  7.15  an alternative program that has an independent study component, 
  7.16  a district must meet the requirements in this paragraph.  The 
  7.17  district must develop, for the pupil, a continual learning plan 
  7.18  consistent with section 124D.128, subdivision 3.  Each school 
  7.19  district that has a state-approved public alternative program 
  7.20  must reserve revenue in an amount equal to at least 90 percent 
  7.21  of the district average general education revenue per pupil unit 
  7.22  less compensatory revenue per pupil unit times the number of 
  7.23  pupil units generated by students attending a state-approved 
  7.24  public alternative program.  The amount of reserved revenue 
  7.25  available under this subdivision may only be spent for program 
  7.26  costs associated with the state-approved public alternative 
  7.27  program.  Compensatory revenue must be allocated according to 
  7.28  section 126C.15, subdivision 2. 
  7.29     (ii) General education revenue for a pupil in an approved 
  7.30  alternative program without an independent study component must 
  7.31  be prorated for a pupil participating for less than a full year, 
  7.32  or its equivalent.  The district must develop a continual 
  7.33  learning plan for the pupil, consistent with section 124D.128, 
  7.34  subdivision 3.  Each school district that has a state-approved 
  7.35  public alternative program must reserve revenue in an amount 
  7.36  equal to at least 90 percent of the district average general 
  8.1   education revenue per pupil unit less compensatory revenue per 
  8.2   pupil unit times the number of pupil units generated by students 
  8.3   attending a state-approved public alternative program.  The 
  8.4   amount of reserved revenue available under this subdivision may 
  8.5   only be spent for program costs associated with the 
  8.6   state-approved public alternative program.  Compensatory revenue 
  8.7   must be allocated according to section 126C.15, subdivision 2.  
  8.8      (iii) General education revenue for a pupil in an approved 
  8.9   alternative program that has an independent study component must 
  8.10  be paid for each hour of teacher contact time and each hour of 
  8.11  independent study time completed toward a credit or graduation 
  8.12  standards necessary for graduation.  Average daily membership 
  8.13  for a pupil shall equal the number of hours of teacher contact 
  8.14  time and independent study time divided by 1,020. 
  8.15     (iv) For an alternative program having an independent study 
  8.16  component, the commissioner shall require a description of the 
  8.17  courses in the program, the kinds of independent study involved, 
  8.18  the expected learning outcomes of the courses, and the means of 
  8.19  measuring student performance against the expected outcomes.  
  8.20     Sec. 10.  Minnesota Statutes 2000, section 126C.10, 
  8.21  subdivision 3, is amended to read: 
  8.22     Subd. 3.  [COMPENSATORY EDUCATION REVENUE.] The 
  8.23  compensatory education revenue for each building in the district 
  8.24  equals the formula allowance $4,601 times the compensation 
  8.25  revenue pupil units computed according to section 126C.05, 
  8.26  subdivision 3.  Revenue shall be paid to the district and must 
  8.27  be allocated according to section 126C.15, subdivision 2. 
  8.28     <b>[EFFECTIVE DATE.]</b> This section is effective for revenue for 
  8.29  fiscal year 2004. 
  8.30     Sec. 11.  Minnesota Statutes 2001 Supplement, section 
  8.31  126C.17, subdivision 1, is amended to read: 
  8.32     Subdivision 1.  [REFERENDUM ALLOWANCE.] (a) For fiscal year 
  8.33  2002, a district's referendum revenue allowance equals the sum 
  8.34  of the allowance under section 126C.16, subdivision 2 3, plus 
  8.35  any additional allowance per resident marginal cost pupil unit 
  8.36  authorized under subdivision 9 for fiscal year 2002. 
  9.1      (b) For fiscal year 2003 and later, a district's initial 
  9.2   referendum revenue allowance equals the sum of the allowance 
  9.3   under section 126C.16, subdivision 2 3, plus any additional 
  9.4   allowance per resident marginal cost pupil unit authorized under 
  9.5   subdivision 9 before May 1, 2001, for fiscal year 2002 and 
  9.6   later, plus the referendum conversion allowance approved under 
  9.7   subdivision 13, minus $415.  For districts with more than one 
  9.8   referendum authority, the reduction must be computed separately 
  9.9   for each authority.  The reduction must be applied first to the 
  9.10  referendum conversion allowance and next to the authority with 
  9.11  the earliest expiration date.  A district's initial referendum 
  9.12  revenue allowance may not be less than zero. 
  9.13     (c) For fiscal year 2003 and later, a district's referendum 
  9.14  revenue allowance equals the initial referendum allowance plus 
  9.15  any additional allowance per resident marginal cost pupil unit 
  9.16  authorized under subdivision 9 after April 30, 2001, for fiscal 
  9.17  year 2003 and later. 
  9.18     Sec. 12.  Minnesota Statutes 2001 Supplement, section 
  9.19  126C.17, subdivision 5, is amended to read: 
  9.20     Subd. 5.  [REFERENDUM EQUALIZATION REVENUE.] (a) For fiscal 
  9.21  year 2003 and later, A district's referendum equalization 
  9.22  revenue equals the sum of the first tier referendum equalization 
  9.23  revenue and the second tier referendum equalization revenue. 
  9.24     (b) A district's first tier referendum equalization revenue 
  9.25  equals the district's first tier referendum equalization 
  9.26  allowance times the district's resident marginal cost pupil 
  9.27  units for that year.  
  9.28     (c) A district's first tier referendum equalization 
  9.29  allowance equals the lesser of the district's referendum 
  9.30  allowance under subdivision 1 or $126 $230. 
  9.31     (d) A district's second tier referendum equalization 
  9.32  revenue equals the district's second tier referendum 
  9.33  equalization allowance times the district's resident marginal 
  9.34  cost pupil units for that year. 
  9.35     (e) A district's second tier referendum equalization 
  9.36  allowance equals the lesser of the district's referendum 
 10.1   allowance under subdivision 1 or 18.2 percent of the formula 
 10.2   allowance, minus the district's first tier referendum 
 10.3   equalization allowance. 
 10.4      (f) Notwithstanding paragraph (e), the second tier 
 10.5   referendum allowance for a district qualifying for secondary 
 10.6   sparsity revenue under section 126C.10, subdivision 7, or 
 10.7   elementary sparsity revenue under section 126C.10, subdivision 
 10.8   8, equals the district's referendum allowance under subdivision 
 10.9   1 minus the district's first tier referendum equalization 
 10.10  allowance. 
 10.11     <b>[EFFECTIVE DATE.]</b> This section is effective for revenue for 
 10.12  fiscal year 2004.  
 10.13     Sec. 13.  Minnesota Statutes 2001 Supplement, section 
 10.14  126C.43, subdivision 3, is amended to read: 
 10.15     Subd. 3.  [TAX LEVY FOR JUDGMENT.] A school district or 
 10.16  intermediate school district may levy the amounts necessary to 
 10.17  pay judgments against the district under section 123B.25 that 
 10.18  became final after the date the district certified its proposed 
 10.19  levy in the previous year.  With the approval of the 
 10.20  commissioner, a district may spread this levy over a period not 
 10.21  to exceed three years. 
 10.22     Sec. 14.  [126C.457] [CAREER AND TECHNICAL LEVY.] 
 10.23     For taxes payable in 2003 and later, a school district may 
 10.24  levy an amount equal to the greater of (1) $10,000, or (2) the 
 10.25  district's fiscal year 2001 entitlement for career and technical 
 10.26  aid under section 124D.453.  The district must recognize the 
 10.27  full amount of this levy as revenue for the fiscal year in which 
 10.28  it is certified.  Revenue received under this section must be 
 10.29  reserved and used only for career and technical programs.  
 10.30     Sec. 15.  Minnesota Statutes 2000, section 126C.50, is 
 10.31  amended to read: 
 10.32     126C.50 [TAX AND AID ANTICIPATION BORROWING; DEFINITIONS.] 
 10.33     School district as used in sections 126C.50 to 126C.56 
 10.34  means any school district or intermediate school district in the 
 10.35  state of Minnesota, however organized and wherever located. 
 10.36     Sec. 16.  Minnesota Statutes 2000, section 136F.68, is 
 11.1   amended to read: 
 11.2      136F.68 [STATE PROPERTY AGREEMENTS.] 
 11.3      Notwithstanding section 16B.24, or other law to the 
 11.4   contrary, the board may enter into an agreement with an 
 11.5   intermediate school district for the cooperative use of state 
 11.6   property for an initial period of ten years, which may be 
 11.7   renewed or extended for additional periods of up to ten years 
 11.8   each any period of time specified in the agreement. 
 11.9      <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 11.10  following final enactment. 
 11.11     Sec. 17.  Laws 1997, First Special Session chapter 4, 
 11.12  article 3, section 25, subdivision 7, is amended to read: 
 11.13     Subd. 7.  [WORKSTUDY STUDENT COMPENSATION.] For enabling 
 11.14  school districts to pay the employer's share of work study 
 11.15  students compensation under Minnesota Statutes, section 
 11.16  136A.233, subdivision 3: 
 11.17       $50,000        .....     1998 
 11.18       $50,000        .....     1999 
 11.19     Money shall be available to districts upon request until 
 11.20  the appropriation is exhausted February 14, 2002.  The 
 11.21  commissioner may establish an application procedure for 
 11.22  allocating the money to districts. 
 11.23     Sec. 18.  Laws 2001, First Special Session chapter 6, 
 11.24  article 1, section 54, subdivision 2, is amended to read: 
 11.25     Subd. 2.  [GENERAL AND SUPPLEMENTAL EDUCATION AID.] For 
 11.26  general and supplemental education aid:  
 11.27       $3,364,596,000 $3,404,787,000 .....     2002
 11.28       $3,506,910,000 $4,982,334,000 .....     2003
 11.29     The 2002 appropriation includes $318,932,000 $323,767,000 
 11.30  for 2001 and $3,045,664,000 $3,081,020,000 for 2002.  
 11.31     The 2003 appropriation includes $338,407,000 $335,220,000 
 11.32  for 2002 and $3,168,503,000 $4,647,114,000 for 2003.  
 11.33     The fiscal year 2003 appropriation is reduced by $2,032,000.
 11.34     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 11.35  following final enactment. 
 11.36     Sec. 19.  Laws 2001, First Special Session chapter 6, 
 12.1   article 2, section 77, subdivision 7, is amended to read: 
 12.2      Subd. 7.  [BEST PRACTICES SEMINARS.] For best practices 
 12.3   graduation rule seminars and other professional development 
 12.4   capacity building activities that assure proficiency in teaching 
 12.5   and implementation of graduation rule standards: 
 12.6        $5,260,000     .....     2002
 12.7        $3,480,000 $  750,000    .....     2003
 12.8      $1,000,000 in fiscal year 2002 is for arts via the Internet 
 12.9   collaborative project between the Walker Art Center and the 
 12.10  Minneapolis Institute of Arts; $500,000 each year is for best 
 12.11  practices grants to intermediate school districts Nos. 287, 916, 
 12.12  and 917 to train teachers of special needs students under Laws 
 12.13  1998, chapter 398, article 5, section 42; and $250,000 each year 
 12.14  is for a grant to A Chance to Grow/New Visions for the Minnesota 
 12.15  Learning Resource Center.  
 12.16     The commissioner shall consider a curriculum development 
 12.17  grant, consistent with the graduation rule, to develop curricula 
 12.18  in the area of natural sciences including botany, horticulture, 
 12.19  and zoology.  The grant shall also be used to provide 
 12.20  instructional materials on the Internet.  The commissioner shall 
 12.21  consider best practices grants to districts for developing 
 12.22  gifted and talented services that are integrated with the 
 12.23  state's graduation standards.  The commissioner shall consider a 
 12.24  grant to independent school district No. 621, Mounds View, for a 
 12.25  pilot project to establish a parallel block schedule strategy in 
 12.26  grades 1 through 3. 
 12.27     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 12.28  following final enactment. 
 12.29     Sec. 20.  Laws 2001, First Special Session chapter 6, 
 12.30  article 2, section 77, subdivision 8, is amended to read: 
 12.31     Subd. 8.  [INTEGRATION AID.] For integration aid: 
 12.32       $65,478,000 $63,421,000   .....     2002 
 12.33       $51,996,000 $52,934,000   .....     2003 
 12.34     The 2002 appropriation includes $5,729,000 for 2001 and 
 12.35  $59,749,000 $57,692,000 for 2002. 
 12.36     The 2003 appropriation includes $6,639,000 $6,410,000 for 
 13.1   2002 and $45,357,000 $46,524,000 for 2003.  
 13.2      <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 13.3   following final enactment. 
 13.4      Sec. 21.  Laws 2001, First Special Session chapter 6, 
 13.5   article 2, section 77, subdivision 22, is amended to read: 
 13.6      Subd. 22.  [YOUTHWORKS PROGRAM.] For youthworks programs 
 13.7   under Minnesota Statutes, sections 124D.37 to 124D.45: 
 13.8        $1,788,000     .....     2002 
 13.9        $1,788,000     .....     2003 
 13.10     A grantee organization may provide health and child care 
 13.11  coverage to the dependents of each participant enrolled in a 
 13.12  full-time youth works program to the extent such coverage is not 
 13.13  otherwise available. 
 13.14     Up to $250,000 each year may be used for the jobs for 
 13.15  America graduates program. 
 13.16     Any balance in the first year does not cancel but is 
 13.17  available in the second year.  The base for this program is 
 13.18  $1,000,000 in fiscal year 2004 and $1,000,000 in fiscal year 
 13.19  2005. 
 13.20     Sec. 22.  Laws 2001, First Special Session chapter 6, 
 13.21  article 2, section 77, subdivision 23, is amended to read: 
 13.22     Subd. 23.  [EDUCATION AND EMPLOYMENT TRANSITIONS PROGRAM 
 13.23  GRANTS.] For education and employment transitions programming 
 13.24  under Minnesota Statutes, section 124D.46: 
 13.25       $775,000       .....     2002 
 13.26       $775,000       .....     2003 
 13.27     $250,000 each year is for ISEEK. 
 13.28     $450,000 each year is for youth apprenticeship grants and 
 13.29  to conduct a high school follow-up survey to include first, 
 13.30  third, and sixth year graduates of Minnesota schools. 
 13.31     $75,000 each year is for grants to school districts for the 
 13.32  junior achievement program. 
 13.33     Any balance in the first year does not cancel but is 
 13.34  available in the second year. 
 13.35     Sec. 23.  Laws 2001, First Special Session chapter 6, 
 13.36  article 3, section 21, subdivision 11, is amended to read: 
 14.1      Subd. 11.  [WEB-BASED, INDIVIDUAL INTERAGENCY INTERVENTION 
 14.2   PLAN.] For ongoing development, administration, and interagency 
 14.3   training costs associated with a statewide, Web-based 
 14.4   application for the individual interagency intervention plan 
 14.5   required in Minnesota Statutes, section 125A.023: 
 14.6        $250,000     .....     2002 
 14.7        $250,000     .....     2003 
 14.8      Sec. 24.  Laws 2001, First Special Session chapter 6, 
 14.9   article 7, section 13, as amended by Laws 2001, First Special 
 14.10  Session chapter 13, section 15, is amended to read: 
 14.11     Sec. 13.  [APPROPRIATIONS; DEPARTMENT OF CHILDREN, 
 14.12  FAMILIES, AND LEARNING.] 
 14.13     Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
 14.14  LEARNING.] Unless otherwise indicated, the sums indicated in 
 14.15  this section are appropriated from the general fund to the 
 14.16  department of children, families, and learning for the fiscal 
 14.17  years designated. 
 14.18     Subd. 2.  [DEPARTMENT.] (a) For the department of children, 
 14.19  families, and learning: 
 14.20       $31,530,000 $28,801,000   .....     2002
 14.21       $31,748,000 $27,567,000   .....     2003 
 14.22     Any balance in the first year does not cancel but is 
 14.23  available in the second year. 
 14.24     (b) $684,000 $616,000 in 2002 and $690,000 $621,000 in 2003 
 14.25  are for the board of teaching. 
 14.26     (c) $165,000 each year is for the board of school 
 14.27  administrators. 
 14.28     (d) $500,000 in 2002 and $250,000 in 2003 and thereafter 
 14.29  are for the Minnesota Academic Excellence Foundation.  
 14.30     (e) $260,000 each year in fiscal year 2002 is for the 
 14.31  Minnesota Children's Museum; $50,000 in fiscal year 2002 is for 
 14.32  the Duluth Children's Museum. 
 14.33     (f) (e) The expenditures of federal grants and aids other 
 14.34  than funds for state assessments and enhanced assessment 
 14.35  instruments as shown in the biennial budget document and its 
 14.36  supplements are approved and appropriated and shall be spent as 
 15.1   indicated.  The commissioner shall report to the education 
 15.2   committees of the legislature by January 15, 2003, the proposed 
 15.3   plan for expending federal funds for state assessments and 
 15.4   enhanced assessment instruments.  
 15.5      (g) (f) In preparing the department budget for fiscal years 
 15.6   2004-2005, the department shall shift all administrative funding 
 15.7   from aids appropriations into the appropriation for the 
 15.8   department. 
 15.9      <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 15.10  following final enactment. 
 15.11     Sec. 25.  Laws 2001, First Special Session chapter 6, 
 15.12  article 7, section 14, is amended to read: 
 15.13     Sec. 14.  [APPROPRIATIONS; PERPICH CENTER FOR ARTS 
 15.14  EDUCATION.] 
 15.15     The sums indicated in this section are appropriated from 
 15.16  the general fund to the Perpich Center for Arts Education for 
 15.17  the fiscal years designated: 
 15.18       $7,681,000 $7,130,000    .....     2002 
 15.19       $7,816,000 $6,818,000    .....     2003 
 15.20     $150,000 each year is to extend the partnership network to 
 15.21  up to five new partnership sites and for developing 
 15.22  whole-school, arts-based teaching and learning curriculum at new 
 15.23  sites. 
 15.24     The base for this program is $7,035,000 in fiscal year 2004 
 15.25  and $7,035,000 in fiscal year 2005. 
 15.26     Any balance in the first year does not cancel but is 
 15.27  available in the second year. 
 15.28     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 15.29  following final enactment. 
 15.30     Sec. 26.  [EXCESS COST AID ADJUSTMENT; CAMBRIDGE-ISANTI.] 
 15.31     For fiscal year 2002 only, the commissioner of children, 
 15.32  families, and learning must make a positive adjustment of 
 15.33  $748,000 to the special education excess cost aid payment to 
 15.34  independent school district No. 911, Cambridge-Isanti.  
 15.35     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 15.36  following final enactment. 
 16.1      Sec. 27.  [TRANSITION.] 
 16.2      On the effective date of section 28, all powers and duties 
 16.3   of the commissioner of children, families, and learning relating 
 16.4   to the commission cease, except for the assistance described in 
 16.5   section 124D.385, subdivision 3, clause (1), and the duty to 
 16.6   provide pass-through grant funds that are appropriated by law 
 16.7   for the benefit of the commission or the nonprofit corporation. 
 16.8      <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 16.9   following final enactment. 
 16.10     Sec. 28.  [APPROPRIATION TRANSFER.] 
 16.11     The unspent and unencumbered portion of the appropriation 
 16.12  in Laws 2001, First Special Session chapter 6, article 2, 
 16.13  section 77, subdivision 22, is transferred from the commissioner 
 16.14  of children, families, and learning to the administrative entity 
 16.15  approved by the Corporation for National and Community Service 
 16.16  to carry out the National and Community Service Trust Act.  
 16.17     <b>[EFFECTIVE DATE.]</b> This section is effective the day after 
 16.18  the commission certifies to the commissioner of finance that it 
 16.19  has created a nonprofit corporation under section 5, that the 
 16.20  corporation has been approved by the Corporation for National 
 16.21  and Community Service to carry out the National and Community 
 16.22  Service Trust Act, and that the commission has delegated duties 
 16.23  to administer sections 124D.37 to 124D.45 to the corporation. 
 16.24     Sec. 29.  [CAPITAL ACCOUNT TRANSFER.] 
 16.25     Subdivision 1.  [BUTTERFIELD.] Notwithstanding Minnesota 
 16.26  Statutes, section 123B.79 or 123B.80, on June 30, 2002, 
 16.27  independent school district No. 836, Butterfield, may 
 16.28  permanently transfer up to $117,000 from its reserved capital 
 16.29  accounts in its general fund to the undesignated fund balance. 
 16.30     Subd. 2.  [TRUMAN.] Notwithstanding Minnesota Statutes, 
 16.31  section 123B.79 or 123B.80, on June 30, 2002, independent school 
 16.32  district No. 458, Truman, may permanently transfer up to 
 16.33  $500,000 from its reserved capital accounts in its general fund 
 16.34  to the undesignated fund balance. 
 16.35     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 16.36  following final enactment. 
 17.1      Sec. 30.  [APPROPRIATION; MINNESOTA ASSOCIATION OF 
 17.2   ALTERNATIVE PROGRAMS.] 
 17.3      $250,000 in fiscal year 2003 is appropriated from the 
 17.4   general fund to the department of children, families, and 
 17.5   learning for a grant to the Minnesota association of alternative 
 17.6   programs to implement electronic continual learning plans at 
 17.7   area learning centers and alternative programs.  This is a 
 17.8   one-time appropriation.  
 17.9      Sec. 31.  [REPEALER.] 
 17.10     Subdivision 1.  [FISCAL YEAR 2003.] Minnesota Statutes 
 17.11  2000, sections 124D.453 and 124D.46; Minnesota Statutes 2001 
 17.12  Supplement, sections 93.22, subdivision 2; 93.223; and 93.2235, 
 17.13  are repealed.  
 17.14     Subd. 2.  [FISCAL YEAR 2004.] Minnesota Statutes 2000, 
 17.15  section 123B.59, subdivisions 6 and 7; and Laws 2000, chapter 
 17.16  489, article 2, section 36, as amended by Laws 2001, First 
 17.17  Special Session chapter 6, article 1, section 44, are repealed 
 17.18  for revenue for fiscal year 2004 and later. 
 17.19     Subd. 3.  [RETROACTIVE.] Laws 2001, First Special Session 
 17.20  chapter 6, article 1, section 31, is repealed retroactive to 
 17.21  July 1, 2001. 
 17.22                             ARTICLE 2
 17.23                        FORECAST ADJUSTMENTS
 17.24     Section 1.  Minnesota Statutes 2001 Supplement, section 
 17.25  123B.54, is amended to read: 
 17.26     123B.54 [DEBT SERVICE APPROPRIATION.] 
 17.27     (a) $25,989,000 $25,987,000 in fiscal year 2002, 
 17.28  $35,163,000 $31,892,000 in fiscal year 
 17.29  2003, $31,787,000 $36,629,000 in fiscal year 2004, and 
 17.30  $26,453,000 $36,931,000 in fiscal years 2005 and later are 
 17.31  appropriated from the general fund to the commissioner of 
 17.32  children, families, and learning for payment of debt service 
 17.33  equalization aid under section 123B.53.  
 17.34     (b) The appropriations in paragraph (a) must be reduced by 
 17.35  the amount of any money specifically appropriated for the same 
 17.36  purpose in any year from any state fund. 
 18.1      <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 18.2   following final enactment. 
 18.3      Sec. 2.  Laws 2001, First Special Session chapter 6, 
 18.4   article 1, section 54, subdivision 4, is amended to read: 
 18.5      Subd. 4.  [ABATEMENT AID.] For abatement aid according to 
 18.6   Minnesota Statutes, section 127A.49:  
 18.7        $7,098,000 $5,698,000    .....     2002 
 18.8        $7,692,000 $2,990,000    .....     2003 
 18.9      The 2002 appropriation includes $640,000 for 2001 and 
 18.10  $6,458,000 $5,058,000 for 2002.  
 18.11     The 2003 appropriation includes $717,000 $562,000 for 2002 
 18.12  and $6,975,000 $2,428,000 for 2003.  
 18.13     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 18.14  following final enactment. 
 18.15     Sec. 3.  Laws 2001, First Special Session chapter 6, 
 18.16  article 1, section 54, subdivision 5, is amended to read: 
 18.17     Subd. 5.  [NONPUBLIC PUPIL AID.] For nonpublic pupil 
 18.18  education aid according to Minnesota Statutes, sections 123.79 
 18.19  and 123B.40 to 123B.43: 
 18.20       $14,099,000 $14,441,000   .....     2002 
 18.21       $16,472,000 $15,977,000   .....     2003 
 18.22     The 2002 appropriation includes $1,330,000 for 2001 and 
 18.23  $12,769,000 $13,111,000 for 2002. 
 18.24     The 2003 appropriation includes $1,419,000 $1,457,000 for 
 18.25  2002 and $15,053,000 $14,520,000 for 2003. 
 18.26     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 18.27  following final enactment. 
 18.28     Sec. 4.  Laws 2001, First Special Session chapter 6, 
 18.29  article 1, section 54, subdivision 6, is amended to read: 
 18.30     Subd. 6.  [NONPUBLIC PUPIL TRANSPORTATION.] For nonpublic 
 18.31  pupil transportation aid under Minnesota Statutes, section 
 18.32  123B.92, subdivision 9: 
 18.33       $20,488,000 $20,635,000    .....     2002 
 18.34       $24,802,000 $25,347,000    .....     2003 
 18.35     The 2002 appropriation includes $2,000,000 for 2001 and 
 18.36  $18,488,000 $18,635,000 for 2002. 
 19.1      The 2003 appropriation includes $2,054,000 $2,070,000 for 
 19.2   2002 and $22,748,000 $23,277,000 for 2003. 
 19.3      <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 19.4   following final enactment. 
 19.5      Sec. 5.  Laws 2001, First Special Session chapter 6, 
 19.6   article 1, section 54, subdivision 7, is amended to read: 
 19.7      Subd. 7.  [CONSOLIDATION TRANSITION AID.] For districts 
 19.8   consolidating under Minnesota Statutes, section 123A.485: 
 19.9        $675,000 $531,000       .....     2002 
 19.10       $669,000 $736,000       .....     2003 
 19.11     The 2002 appropriation includes $44,000 for 2001 and 
 19.12  $631,000 $487,000 for 2002. 
 19.13     The 2003 appropriation includes $70,000 $54,000 for 2002 
 19.14  and $599,000 $682,000 for 2003. 
 19.15     Any balance in the first year does not cancel but is 
 19.16  available in the second year. 
 19.17     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 19.18  following final enactment. 
 19.19     Sec. 6.  Laws 2001, First Special Session chapter 6, 
 19.20  article 2, section 77, subdivision 4, is amended to read: 
 19.21     Subd. 4.  [CHARTER SCHOOL BUILDING LEASE AID.] For building 
 19.22  lease aid under Minnesota Statutes, section 124D.11, subdivision 
 19.23  4: 
 19.24       $16,554,000 $12,323,000   .....     2002 
 19.25       $25,176,000 $15,330,000   .....     2003 
 19.26     The 2002 appropriation includes $1,114,000 for 2001 and 
 19.27  $15,440,000 $11,209,000 for 2002. 
 19.28     The 2003 appropriation includes $1,715,000 $1,245,000 for 
 19.29  2002 and $23,461,000 $14,085,000 for 2003.  
 19.30     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 19.31  following final enactment. 
 19.32     Sec. 7.  Laws 2001, First Special Session chapter 6, 
 19.33  article 2, section 77, subdivision 5, is amended to read: 
 19.34     Subd. 5.  [CHARTER SCHOOL STARTUP GRANTS.] For charter 
 19.35  school startup cost aid under Minnesota Statutes, section 
 19.36  124D.11: 
 20.1        $2,738,000 $2,090,000    .....     2002 
 20.2        $3,143,000 $1,549,000    .....     2003 
 20.3      The 2002 appropriation includes $273,000 $258,000 for 2001 
 20.4   and $2,465,000 $1,832,000 for 2002.  
 20.5      The 2003 appropriation includes $274,000 $204,000 for 2002 
 20.6   and $2,869,000 $1,345,000 for 2003. 
 20.7      <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 20.8   following final enactment. 
 20.9      Sec. 8.  Laws 2001, First Special Session chapter 6, 
 20.10  article 2, section 77, subdivision 11, is amended to read: 
 20.11     Subd. 11.  [MAGNET SCHOOL STARTUP AID.] For magnet school 
 20.12  startup aid under Minnesota Statutes, section 124D.88: 
 20.13       $482,000 $475,000      .....     2002 
 20.14       $326,000 $298,000      .....     2003 
 20.15     The 2002 appropriation includes $25,000 for 2001 and 
 20.16  $457,000 $450,000 for 2002.  
 20.17     The 2003 appropriation includes $51,000 $50,000 for 2002 
 20.18  and $275,000 $248,000 for 2003. 
 20.19     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 20.20  following final enactment. 
 20.21     Sec. 9.  Laws 2001, First Special Session chapter 6, 
 20.22  article 2, section 77, subdivision 15, is amended to read: 
 20.23     Subd. 15.  [SUCCESS FOR THE FUTURE.] For American Indian 
 20.24  success for the future grants according to Minnesota Statutes, 
 20.25  section 124D.81: 
 20.26       $2,047,000 $1,924,000    .....     2002
 20.27       $2,137,000     .....     2003
 20.28     The 2002 appropriation includes $0 for 2001 and $2,047,000 
 20.29  $1,924,000 for 2002. 
 20.30     The 2003 appropriation includes $255,000 $213,000 for 2002 
 20.31  and $2,132,000 $1,924,000 for 2003. 
 20.32     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 20.33  following final enactment. 
 20.34     Sec. 10.  Laws 2001, First Special Session chapter 6, 
 20.35  article 2, section 77, subdivision 18, is amended to read: 
 20.36     Subd. 18.  [TRIBAL CONTRACT SCHOOLS.] For tribal contract 
 21.1   school aid under Minnesota Statutes, section 124D.83: 
 21.2        $2,520,000 $2,304,000    .....     2002
 21.3        $2,767,000 $2,408,000    .....     2003
 21.4      The 2002 appropriation includes $192,000 for 2001 and 
 21.5   $2,328,000 $2,112,000 for 2002. 
 21.6      The 2003 appropriation includes $258,000 $235,000 for 2002 
 21.7   and $2,509,000 $2,173,000 for 2003. 
 21.8      <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 21.9   following final enactment. 
 21.10     Sec. 11.  Laws 2001, First Special Session chapter 6, 
 21.11  article 2, section 77, subdivision 25, as amended by Laws 2001, 
 21.12  First Special Session chapter 13, section 14, is amended to read:
 21.13     Subd. 25.  [SCHOOL EVALUATION SERVICES.] For contracting 
 21.14  with an independent school evaluation services contractor to 
 21.15  evaluate and report on school districts' academic and financial 
 21.16  performance under section 64:  
 21.17       $2,500,000     .....     2002 
 21.18     Any balance in the first year does not cancel but is 
 21.19  available in the second year.  The base for this program is 
 21.20  $2,000,000 in fiscal year 2004 and $2,000,000 in fiscal year 
 21.21  2005. 
 21.22     Sec. 12.  Laws 2001, First Special Session chapter 6, 
 21.23  article 3, section 21, subdivision 2, is amended to read: 
 21.24     Subd. 2.  [SPECIAL EDUCATION AID.] For special education 
 21.25  aid according to Minnesota Statutes, section 125A.75: 
 21.26       $507,448,000 $507,841,000  .....     2002 
 21.27       $531,481,000 $532,282,000  .....     2003 
 21.28     The 2002 appropriation includes $47,400,000 for 2001 and 
 21.29  $460,048,000 $460,441,000 for 2002. 
 21.30     The 2003 appropriation includes $51,116,000 $51,160,000 for 
 21.31  2002 and $480,365,000 $481,122,000 for 2003. 
 21.32     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 21.33  following final enactment. 
 21.34     Sec. 13.  Laws 2001, First Special Session chapter 6, 
 21.35  article 3, section 21, subdivision 3, is amended to read: 
 21.36     Subd. 3.  [AID FOR CHILDREN WITH A DISABILITY.] For aid 
 22.1   according to Minnesota Statutes, section 125A.75, subdivision 3, 
 22.2   for children with a disability placed in residential facilities 
 22.3   within the district boundaries for whom no district of residence 
 22.4   can be determined: 
 22.5        $1,877,000 $1,358,000    .....     2002 
 22.6        $2,033,000 $3,161,000    .....     2003 
 22.7      If the appropriation for either year is insufficient, the 
 22.8   appropriation for the other year is available.  
 22.9      Any balance in the first year does not cancel but is 
 22.10  available in the second year. 
 22.11     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 22.12  following final enactment. 
 22.13     Sec. 14.  Laws 2001, First Special Session chapter 6, 
 22.14  article 3, section 21, subdivision 4, is amended to read: 
 22.15     Subd. 4.  [TRAVEL FOR HOME-BASED SERVICES.] For aid for 
 22.16  teacher travel for home-based services according to Minnesota 
 22.17  Statutes, section 125A.75, subdivision 1: 
 22.18       $135,000 $143,000      .....     2002 
 22.19       $138,000 $148,000      .....     2003 
 22.20     The 2002 appropriation includes $13,000 $14,000 for 2001 
 22.21  and $122,000 $129,000 for 2002. 
 22.22     The 2003 appropriation includes $13,000 $15,000 for 2002 
 22.23  and $125,000 $133,000 for 2003. 
 22.24     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 22.25  following final enactment. 
 22.26     Sec. 15.  Laws 2001, First Special Session chapter 6, 
 22.27  article 3, section 21, subdivision 5, is amended to read: 
 22.28     Subd. 5.  [SPECIAL EDUCATION EXCESS COST AID.] For excess 
 22.29  cost aid: 
 22.30       $102,665,000 $103,061,000  .....     2002 
 22.31       $104,773,000 $105,289,000  .....     2003 
 22.32     The 2002 appropriation includes $9,889,000 for 2001 and 
 22.33  $92,776,000 $93,172,000 for 2002. 
 22.34     The 2003 appropriation includes $10,308,000 $10,352,000 for 
 22.35  2002 and $94,465,000 $94,937,000 for 2003. 
 22.36     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 23.1   following final enactment. 
 23.2      Sec. 16.  Laws 2001, First Special Session chapter 6, 
 23.3   article 3, section 21, subdivision 7, is amended to read: 
 23.4      Subd. 7.  [TRANSITION PROGRAMS; STUDENTS WITH 
 23.5   DISABILITIES.] For aid for transition programs for pupils with 
 23.6   disabilities according to Minnesota Statutes, section 124D.454: 
 23.7        $8,954,000 $8,960,000    .....     2002 
 23.8        $8,939,000 $8,952,000    .....     2003 
 23.9      The 2002 appropriation includes $896,000 for 2001 and 
 23.10  $8,058,000 $8,064,000 for 2002.  
 23.11     The 2003 appropriation includes $895,000 $896,000 for 2002 
 23.12  and $8,044,000 $8,056,000 for 2003.  
 23.13     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 23.14  following final enactment. 
 23.15     Sec. 17.  Laws 2001, First Special Session chapter 6, 
 23.16  article 4, section 27, subdivision 2, is amended to read: 
 23.17     Subd. 2.  [HEALTH AND SAFETY AID.] For health and safety 
 23.18  aid according to Minnesota Statutes, section 123B.57, 
 23.19  subdivision 5: 
 23.20       $14,980,000 $13,630,000   .....     2002 
 23.21       $14,550,000 $10,800,000   .....     2003 
 23.22     The 2002 appropriation includes $1,480,000 for 2001 and 
 23.23  $13,500,000 $12,150,000 for 2002. 
 23.24     The 2003 appropriation includes $1,500,000 $1,350,000 for 
 23.25  2002 and $13,050,000 $9,450,000 for 2003. 
 23.26     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 23.27  following final enactment. 
 23.28     Sec. 18.  Laws 2001, First Special Session chapter 6, 
 23.29  article 4, section 27, subdivision 3, is amended to read: 
 23.30     Subd. 3.  [DEBT SERVICE AID.] For debt service aid 
 23.31  according to Minnesota Statutes, section 123B.53, subdivision 6: 
 23.32       $25,989,000 $25,987,000   .....     2002 
 23.33       $35,523,000 $31,892,000   .....     2003 
 23.34     The 2002 appropriation includes $2,890,000 for 2001 and 
 23.35  $23,099,000 $23,097,000 for 2002. 
 23.36     The 2003 appropriation includes $2,567,000 $2,566,000 for 
 24.1   2002 and $32,956,000 $29,326,000 for 2003. 
 24.2      <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 24.3   following final enactment. 
 24.4      Sec. 19.  Laws 2001, First Special Session chapter 6, 
 24.5   article 4, section 27, subdivision 5, is amended to read: 
 24.6      Subd. 5.  [ALTERNATIVE FACILITIES BONDING AID.] For 
 24.7   alternative facilities bonding aid, according to Minnesota 
 24.8   Statutes, section 123B.59, subdivision 1: 
 24.9        $19,279,000 $19,280,000   .....     2002 
 24.10       $19,287,000    .....     2003 
 24.11     The 2002 appropriation includes $1,921,000 for 2001 and 
 24.12  $17,358,000 $17,359,000 for 2002. 
 24.13     The 2003 appropriation includes $1,929,000 $1,928,000 for 
 24.14  2002 and $17,358,000 $17,359,000 for 2003. 
 24.15     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 24.16  following final enactment. 
 24.17     Sec. 20.  Laws 2001, First Special Session chapter 6, 
 24.18  article 4, section 27, subdivision 6, is amended to read: 
 24.19     Subd. 6.  [TELECOMMUNICATION ACCESS COST REVENUE.] For 
 24.20  telecommunication access cost revenue under Minnesota Statutes, 
 24.21  section 125B.25: 
 24.22       $15,387,000 $14,800,000   .....     2002 
 24.23       $ 1,565,000 $ 1,500,000   .....     2003 
 24.24     The 2002 appropriation includes $1,300,000 for 2001 and 
 24.25  $14,087,000 $13,500,000 for 2002. 
 24.26     The 2003 appropriation includes $1,565,000 $1,500,000 for 
 24.27  2002 and $0 for 2003. 
 24.28     If the appropriation amount is insufficient, the 
 24.29  commissioner shall reduce the reimbursement rate in Minnesota 
 24.30  Statutes, section 125B.25, subdivisions 5 and 6, and the revenue 
 24.31  for the 2001-2002 school year shall be prorated.  The 
 24.32  reimbursement rate shall not exceed 100 percent. 
 24.33     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 24.34  following final enactment. 
 24.35     Sec. 21.  Laws 2001, First Special Session chapter 6, 
 24.36  article 5, section 13, subdivision 2, is amended to read: 
 25.1      Subd. 2.  [SCHOOL LUNCH.] (a) For school lunch aid 
 25.2   according to Minnesota Statutes, section 124D.111, and Code of 
 25.3   Federal Regulations, title 7, section 210.17, and for school 
 25.4   milk aid according to Minnesota Statutes, section 124D.118:  
 25.5        $8,710,000     .....     2002 
 25.6        $8,950,000 $8,500,000    .....     2003 
 25.7      (b) Not more than $800,000 of the amount appropriated each 
 25.8   year may be used for school milk aid. 
 25.9      Sec. 22.  Laws 2001, First Special Session chapter 6, 
 25.10  article 5, section 13, subdivision 5, is amended to read: 
 25.11     Subd. 5.  [FAST BREAK TO LEARNING GRANTS.] For fast break 
 25.12  to learning grants under Minnesota Statutes, section 124D.1156: 
 25.13       $2,446,000     .....     2002 
 25.14       $2,839,000     .....     2003 
 25.15     The 2002 appropriation includes $0 for 2001 and $2,446,000 
 25.16  for 2002. 
 25.17     The 2003 appropriation includes $272,000 $271,000 for 2002 
 25.18  and $2,567,000 $2,568,000 for 2003. 
 25.19                             ARTICLE 3 
 25.20                          EDUCATION POLICY 
 25.21     Section 1.  [120B.25] [AMERICAN HERITAGE EDUCATION.] 
 25.22     (a) School districts shall adopt a policy to allow for 
 25.23  grade-level instruction to assure that all students are 
 25.24  encouraged, and have the opportunity, to read and study 
 25.25  America's founding documents that are pertinent to understanding 
 25.26  the principles, character, and world view of America's founders; 
 25.27  including documents that contributed to the foundation or 
 25.28  maintenance of America's representative republican form of 
 25.29  limited government, our free-market economic system, and 
 25.30  patriotism.  Districts shall permit a principal or teacher, in 
 25.31  the ordinary course of their duties, to use, read, or post in a 
 25.32  public school building or classroom any excerpts or portions of 
 25.33  the documents, writings, speeches, proclamations, or records 
 25.34  relating to the history, heritage, or foundation of the United 
 25.35  States or the state of Minnesota, including, but not limited to: 
 25.36     (1) the Mayflower compact; 
 26.1      (2) the Declaration of Independence; 
 26.2      (3) the Constitutions of the United States and the state of 
 26.3   Minnesota and the Bill of Rights; 
 26.4      (4) the Federalist Papers; 
 26.5      (5) the Northwest Ordinance of 1787; 
 26.6      (6) the Pledge of Allegiance in its original and current 
 26.7   forms and the national anthem; 
 26.8      (7) Washington's farewell address to the nation, Lincoln's 
 26.9   Gettysburg address, and other writings from George Washington 
 26.10  Carver, Phyllis Wheatley, and Martin Luther King; and 
 26.11     (8) the published records of Congress and the United States 
 26.12  Supreme Court decisions. 
 26.13     (b) In the ordinary course of providing instruction and 
 26.14  curriculum, districts may not prohibit the use of documents, 
 26.15  writings, speeches, proclamations, or records described under 
 26.16  paragraph (a) based on religious references.  These and any 
 26.17  other materials must be used for educational purposes and not to 
 26.18  establish any religion. 
 26.19     (c) Students may voluntarily choose to read, write, share, 
 26.20  report, or otherwise study a topic which is religious in nature 
 26.21  provided other students are provided with the same opportunity 
 26.22  to freely choose a topic. 
 26.23     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 26.24  following final enactment. 
 26.25     Sec. 2.  Minnesota Statutes 2000, section 121A.11, is 
 26.26  amended by adding a subdivision to read: 
 26.27     Subd. 3.  [PLEDGE OF ALLEGIANCE.] (a) All public and 
 26.28  charter school students shall recite the pledge of allegiance to 
 26.29  the flag of the United States of America one or more times each 
 26.30  week.  The recitation shall be conducted: 
 26.31     (1) by each individual classroom teacher or the teacher's 
 26.32  surrogate; or 
 26.33     (2) over a school intercom system by a person designated by 
 26.34  the school principal or other person having administrative 
 26.35  control over the school. 
 26.36  A local school board or a charter school board of directors 
 27.1   annually, by majority vote, may waive this requirement.  
 27.2      (b) Any student or teacher who objects to reciting the 
 27.3   pledge must be excused from participating without penalty. 
 27.4      (c) A local school board or a charter school board of 
 27.5   directors that waives the requirement to recite the pledge of 
 27.6   allegiance under paragraph (a) may adopt a district or school 
 27.7   policy regarding the reciting of the pledge of allegiance. 
 27.8      <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 27.9   following final enactment. 
 27.10     Sec. 3.  Minnesota Statutes 2000, section 121A.11, is 
 27.11  amended by adding a subdivision to read: 
 27.12     Subd. 4.  [INSTRUCTION.] Unless this requirement is waived 
 27.13  annually by a majority vote of the school board, a school 
 27.14  district must instruct students in the proper etiquette toward, 
 27.15  correct display of, and respect for the flag, and in patriotic 
 27.16  exercises.  The instruction is recommended to be part of the 
 27.17  district's fifth grade social studies curriculum. 
 27.18     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 27.19  following final enactment.  Each school district must begin the 
 27.20  instruction required under this section no later than the 
 27.21  2003-2004 school year. 
 27.22     Sec. 4.  Minnesota Statutes 2001 Supplement, section 
 27.23  122A.61, subdivision 1, is amended to read: 
 27.24     Subdivision 1.  [STAFF DEVELOPMENT REVENUE.] A district is 
 27.25  required to may reserve an amount equal to at least two percent 
 27.26  of the basic revenue under section 126C.10, subdivision 2, for 
 27.27  in-service education for programs under section 120B.22, 
 27.28  subdivision 2, for staff development plans, including plans for 
 27.29  challenging instructional activities and experiences under 
 27.30  section 122A.60, and for curriculum development and programs, 
 27.31  other in-service education, teachers' workshops, teacher 
 27.32  conferences, the cost of substitute teachers staff development 
 27.33  purposes, preservice and in-service education for special 
 27.34  education professionals and paraprofessionals, and other related 
 27.35  costs for staff development efforts.  A district may annually 
 27.36  waive the requirement to reserve their basic revenue under this 
 28.1   section if a majority vote of the licensed teachers in the 
 28.2   district and a majority vote of the school board agree to a 
 28.3   resolution to waive the requirement.  A district in statutory 
 28.4   operating debt is exempt from reserving basic revenue according 
 28.5   to this section.  Districts may expend an additional amount of 
 28.6   unreserved revenue for staff development based on their needs.  
 28.7   With the exception of amounts reserved for staff development 
 28.8   from revenues allocated directly to school sites, The board must 
 28.9   initially may allocate 50 percent of the reserved revenue to 
 28.10  each school site in the district on a per teacher basis, which 
 28.11  must be retained by the school site until used.  The board may 
 28.12  retain 25 percent to be used or may use the revenue for district 
 28.13  wide staff development efforts.  The remaining 25 percent of the 
 28.14  revenue must be used or to make grants to school sites for best 
 28.15  practices methods.  A grant may be used for any purpose 
 28.16  authorized under section 120B.22, subdivision 2, 122A.60, or for 
 28.17  the costs of curriculum development and programs, other 
 28.18  in-service education, teachers' workshops, teacher conferences, 
 28.19  substitute teachers for staff development purposes, and other 
 28.20  staff development efforts, and determined by the site 
 28.21  professional development team.  The site professional 
 28.22  development team must demonstrate to the school board the extent 
 28.23  to which staff at the site have met the outcomes of the 
 28.24  program.  The board may withhold a portion of initial allocation 
 28.25  of revenue if the staff development outcomes are not being met. 
 28.26     <b>[EFFECTIVE DATE.]</b> This section is effective for the 
 28.27  2002-2003 school year and later. 
 28.28     Sec. 5.  Minnesota Statutes 2000, section 124D.10, is 
 28.29  amended by adding a subdivision to read: 
 28.30     Subd. 3a.  [FORMATION OF SCHOOL BY SCHOOL BOARD.] (a) This 
 28.31  subdivision is intended to provide a method for school districts 
 28.32  to create schools that serve to implement the school board's 
 28.33  strategic plan for public education in the district. 
 28.34     (b) In addition to subdivision 4, paragraph (a), a school 
 28.35  board or one or more licensed teachers working in cooperation 
 28.36  with the school board may initiate a proposal to operate a 
 29.1   charter school.  A charter school formed under this subdivision 
 29.2   does not require commissioner approval before the school may 
 29.3   operate. 
 29.4      (c) A charter school formed under this subdivision is 
 29.5   subject to the provisions of this section and section 124D.11 
 29.6   unless specifically exempted. 
 29.7      (d) Notwithstanding the board of directors selection 
 29.8   requirements in subdivision 4, paragraph (c), up to two members 
 29.9   of the charter school board of directors must be selected by the 
 29.10  sponsoring school board.  
 29.11     (e) A charter school formed under this subdivision must 
 29.12  submit its budget to the sponsoring school board for review and 
 29.13  comment by school district officials.  The charter school must 
 29.14  submit its learning program to the sponsoring school board for 
 29.15  review and comment before implementation or making significant 
 29.16  changes. 
 29.17     (f) The sponsoring school district must provide facilities 
 29.18  for the charter school formed under this subdivision.  The 
 29.19  charter school must pay the school district for the operating 
 29.20  costs of the facility.  If the school district does not have 
 29.21  space for the charter school, the school may apply to the 
 29.22  commissioner for building lease aid under section 124D.11, 
 29.23  subdivision 4. 
 29.24     (g) The teacher selection process must be established in 
 29.25  the charter school's bylaws.  Teachers may be selected: 
 29.26     (1) by acquiring teaching services from a teachers 
 29.27  cooperative or similar professional practice organization; 
 29.28     (2) from existing teachers in the sponsoring school 
 29.29  district who are covered by the contract with the district and 
 29.30  as a result, retain their contract rights in the district; or 
 29.31     (3) from outside the district. 
 29.32     If teachers are selected according to clause (2) or (3), 
 29.33  the personnel selection, evaluation, and termination are the 
 29.34  responsibility of the charter school.  If teachers are selected 
 29.35  according to clause (1), the personnel selection, evaluation, 
 29.36  and termination are the responsibility of the professional 
 30.1   practice organization. 
 30.2      (h) The nonrenewal or termination of a charter school 
 30.3   contract formed under this section must follow the requirements 
 30.4   of subdivision 23.  However, if a hearing is requested according 
 30.5   to the requirements of subdivision 23, the sponsoring school 
 30.6   board must provide notice to the public and allow for public 
 30.7   input at the hearing before a vote on nonrenewal or termination 
 30.8   by the school board. 
 30.9      Sec. 6.  Minnesota Statutes 2001 Supplement, section 
 30.10  124D.10, subdivision 8, is amended to read: 
 30.11     Subd. 8.  [STATE AND LOCAL REQUIREMENTS.] (a) A charter 
 30.12  school shall meet all applicable state and local health and 
 30.13  safety requirements. 
 30.14     (b) A school sponsored by a school board may be located in 
 30.15  any district, unless the school board of the district of the 
 30.16  proposed location disapproves by written resolution.  
 30.17     (c) A charter school must be nonsectarian in its programs, 
 30.18  admission policies, employment practices, and all other 
 30.19  operations.  A sponsor may not authorize a charter school or 
 30.20  program that is affiliated with a nonpublic sectarian school or 
 30.21  a religious institution. 
 30.22     (d) Charter schools must not be used as a method of 
 30.23  providing education or generating revenue for students who are 
 30.24  being home-schooled. 
 30.25     (e) The primary focus of a charter school must be to 
 30.26  provide a comprehensive program of instruction for at least one 
 30.27  grade or age group from five through 18 years of age.  
 30.28  Instruction may be provided to people younger than five years 
 30.29  and older than 18 years of age. 
 30.30     (f) A charter school may not charge tuition. 
 30.31     (g) A charter school is subject to and must comply with 
 30.32  chapter 363 and section 121A.04. 
 30.33     (h) A charter school is subject to and must comply with the 
 30.34  Pupil Fair Dismissal Act, sections 121A.40 to 121A.56, and the 
 30.35  Minnesota Public School Fee Law, sections 123B.34 to 123B.39. 
 30.36     (i) A charter school is subject to the same financial 
 31.1   audits, audit procedures, and audit requirements as a district.  
 31.2   Audits must be conducted in compliance with generally accepted 
 31.3   governmental auditing standards, the Federal Single Audit Act, 
 31.4   if applicable, and section 6.65.  A charter school is subject to 
 31.5   and must comply with sections 15.054; 118A.01; 118A.02; 118A.03; 
 31.6   118A.04; 118A.05; 118A.06; 123B.52, subdivision 5; 471.38; 
 31.7   471.391; 471.392; 471.425; 471.87; 471.88, subdivisions 1, 2, 3, 
 31.8   4, 5, 6, 12, 13, and 15; 471.881; and 471.89.  The audit must 
 31.9   comply with the requirements of sections 123B.75 to 123B.83, 
 31.10  except to the extent deviations are necessary because of the 
 31.11  program at the school.  Deviations must be approved by the 
 31.12  commissioner.  The department of children, families, and 
 31.13  learning, state auditor, or legislative auditor may conduct 
 31.14  financial, program, or compliance audits.  A charter school 
 31.15  determined to be in statutory operating debt under sections 
 31.16  123B.81 to 123B.83 must submit a plan under section 123B.81, 
 31.17  subdivision 4. 
 31.18     (j) A charter school is a district for the purposes of tort 
 31.19  liability under chapter 466. 
 31.20     (k) A charter school is subject to the pledge of allegiance 
 31.21  requirement under section 121A.11, subdivision 3. 
 31.22     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 31.23  following final enactment. 
 31.24     Sec. 7.  [TITLE.] 
 31.25     Minnesota Statutes, section 120B.25, shall be known as the 
 31.26  American Heritage Education in Minnesota Public Schools Act.  
 31.27     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 31.28  following final enactment.  
 31.29                             ARTICLE 4 
 31.30                        TECHNICAL AMENDMENTS 
 31.31     Section 1.  Minnesota Statutes 2000, section 123B.92, 
 31.32  subdivision 3, is amended to read: 
 31.33     Subd. 3.  [ALTERNATIVE ATTENDANCE PROGRAMS.] A district 
 31.34  that enrolls nonresident pupils in programs under sections 
 31.35  124D.03, 124D.06, 124D.07, 124D.08, 123A.05 to 123A.08, and 
 31.36  124D.68, must provide authorized transportation to the pupil 
 32.1   within the attendance area for the school that the pupil 
 32.2   attends.  The resident district need not provide or pay for 
 32.3   transportation between the pupil's residence and the district's 
 32.4   border. 
 32.5      Sec. 2.  Minnesota Statutes 2000, section 124D.03, 
 32.6   subdivision 12, is amended to read: 
 32.7      Subd. 12.  [TERMINATION OF ENROLLMENT.] A district may 
 32.8   terminate the enrollment of a nonresident student enrolled under 
 32.9   this section or section 124D.07 or 124D.08 at the end of a 
 32.10  school year if the student meets the definition of a habitual 
 32.11  truant under section 260C.007, subdivision 19, the student has 
 32.12  been provided appropriate services under chapter 260A, and the 
 32.13  student's case has been referred to juvenile court.  A district 
 32.14  may also terminate the enrollment of a nonresident student over 
 32.15  the age of 16 enrolled under this section if the student is 
 32.16  absent without lawful excuse for one or more periods on 15 
 32.17  school days and has not lawfully withdrawn from school under 
 32.18  section 120A.22, subdivision 8. 
 32.19     Sec. 3.  Minnesota Statutes 2000, section 124D.10, 
 32.20  subdivision 13, is amended to read: 
 32.21     Subd. 13.  [LENGTH OF SCHOOL YEAR.] A charter school must 
 32.22  provide instruction each year for at least the number of days 
 32.23  required by section 120A.22, subdivision 5 120A.41.  It may 
 32.24  provide instruction throughout the year according to sections 
 32.25  124D.12 to 124D.127 or 124D.128.  
 32.26     Sec. 4.  Minnesota Statutes 2001 Supplement, section 
 32.27  124D.10, subdivision 23a, is amended to read: 
 32.28     Subd. 23a.  [RELATED PARTY LEASE COSTS.] (a) A charter 
 32.29  school is prohibited from entering a lease of real property with 
 32.30  a related party as defined in this subdivision, unless the 
 32.31  lessor is a nonprofit corporation under chapter 317A or a 
 32.32  cooperative under chapter 308A, and the lease cost is reasonable 
 32.33  under section 124D.11, subdivision 4, clause (1). 
 32.34     (b) For purposes of this subdivision: 
 32.35     (1) A "related party" is an affiliate or close relative of 
 32.36  the other party in question, an affiliate of a close relative, 
 33.1   or a close relative of an affiliate.  
 33.2      (2) "Affiliate" means a person that directly, or indirectly 
 33.3   through one or more intermediaries, controls, or is controlled 
 33.4   by, or is under common control with, another person. 
 33.5      (3) "Close relative" means an individual whose relationship 
 33.6   by blood, marriage, or adoption to another individual is no more 
 33.7   remote than first cousin. 
 33.8      (4) "Person" means an individual or entity of any kind. 
 33.9      (5) "Control" includes the terms "controlling," "controlled 
 33.10  by," and "under common control with" and means the possession, 
 33.11  direct or indirect, of the power to direct or cause the 
 33.12  direction of the management, operations, or policies of a 
 33.13  person, whether through the ownership of voting securities, by 
 33.14  contract, or otherwise. 
 33.15     (c) A lease of real property to be used for a charter 
 33.16  school, not excluded in paragraph (b), must contain the 
 33.17  following statement:  "This lease is subject to Minnesota 
 33.18  Statutes, section 124D.10, subdivision 23a." 
 33.19     (d) If a charter school enters into as lessee a lease with 
 33.20  a related party and the charter school subsequently closes, the 
 33.21  commissioner has the right to recover from the lessor any lease 
 33.22  payments in excess of those that are reasonable under section 
 33.23  124.11 124D.11, subdivision 4, clause (1). 
 33.24     Sec. 5.  Minnesota Statutes 2000, section 124D.86, 
 33.25  subdivision 6, is amended to read: 
 33.26     Subd. 6.  [ALTERNATIVE ATTENDANCE PROGRAMS.] (a) The 
 33.27  integration aid under subdivision 5 must be adjusted for each 
 33.28  pupil residing in a district eligible for integration revenue 
 33.29  under subdivision 3, clause (1), (2), or (3), and attending a 
 33.30  nonresident district under sections 123A.05 to 123A.08, 124D.03, 
 33.31  124D.06, 124D.07, and 124D.08, that is not eligible for 
 33.32  integration revenue under subdivision 3, clause (1), (2), or 
 33.33  (3), and has implemented a plan under Minnesota Rules, parts 
 33.34  3535.0100 to 3535.0180, if the enrollment of the pupil in the 
 33.35  nonresident district contributes to desegregation or integration 
 33.36  purposes.  The adjustments must be made according to this 
 34.1   subdivision.  
 34.2      (b) Aid paid to a district serving nonresidents must be 
 34.3   increased by an amount equal to the revenue per pupil unit of 
 34.4   the resident district under subdivision 3, clause (1), (2), or 
 34.5   (3), minus the revenue attributable to the pupil in the 
 34.6   nonresident district under subdivision 3, clause (4), for the 
 34.7   time the pupil is enrolled in the nonresident district.  
 34.8      Sec. 6.  Minnesota Statutes 2000, section 125A.12, is 
 34.9   amended to read: 
 34.10     125A.12 [ATTENDANCE IN ANOTHER DISTRICT.] 
 34.11     No resident of a district who is eligible for special 
 34.12  instruction and services pursuant to this section may be denied 
 34.13  provision of this instruction and service because of attending a 
 34.14  public school in another district pursuant to section 123B.88, 
 34.15  subdivision 5, if the attendance is not subject to section 
 34.16  124D.06, 124D.07, or 124D.08.  If the pupil attends a public 
 34.17  school located in a contiguous district and the district of 
 34.18  attendance does not provide special instruction and services, 
 34.19  the district of residence must provide necessary transportation 
 34.20  for the pupil between the boundary of the district of residence 
 34.21  and the educational facility where special instruction and 
 34.22  services are provided within the district of residence.  The 
 34.23  district of residence may provide necessary transportation for 
 34.24  the pupil between its boundary and the school attended in the 
 34.25  contiguous district, but must not pay the cost of transportation 
 34.26  provided outside the boundary of the district of residence.  
 34.27     Sec. 7.  Minnesota Statutes 2001 Supplement, section 
 34.28  127A.45, subdivision 12, is amended to read: 
 34.29     Subd. 12.  [PAYMENT PERCENTAGE FOR CERTAIN AIDS.] (a) One 
 34.30  hundred percent of the aid for the current fiscal year must be 
 34.31  paid for the following aids:  reimbursement for enrollment 
 34.32  options transportation, according to sections 124D.03, 
 34.33  subdivision 8, 124D.09, subdivision 22, and 124D.10; school 
 34.34  lunch aid, according to section 124D.111; hearing impaired 
 34.35  support services aid, according to section 124D.57; and Indian 
 34.36  post-secondary preparation grants according to section 124D.85. 
 35.1      (b) One hundred percent of the aid for the current fiscal 
 35.2   year, based on enrollment in the previous year, must be paid for 
 35.3   the first grade preparedness program according to section 
 35.4   124D.081. 
 35.5      Sec. 8.  Minnesota Statutes 2000, section 127A.47, 
 35.6   subdivision 7, is amended to read: 
 35.7      Subd. 7.  [ALTERNATIVE ATTENDANCE PROGRAMS.] The general 
 35.8   education aid for districts must be adjusted for each pupil 
 35.9   attending a nonresident district under sections 123A.05 to 
 35.10  123A.08, 124D.03, 124D.06, 124D.07, 124D.08, and 124D.68.  The 
 35.11  adjustments must be made according to this subdivision. 
 35.12     (a) General education aid paid to a resident district must 
 35.13  be reduced by an amount equal to the referendum equalization aid 
 35.14  attributable to the pupil in the resident district. 
 35.15     (b) General education aid paid to a district serving a 
 35.16  pupil in programs listed in this subdivision must be increased 
 35.17  by an amount equal to the referendum equalization aid 
 35.18  attributable to the pupil in the nonresident district.  
 35.19     (c) If the amount of the reduction to be made from the 
 35.20  general education aid of the resident district is greater than 
 35.21  the amount of general education aid otherwise due the district, 
 35.22  the excess reduction must be made from other state aids due the 
 35.23  district. 
 35.24     (d) The district of residence must pay tuition to a 
 35.25  district or an area learning center, operated according to 
 35.26  paragraph (e), providing special instruction and services to a 
 35.27  pupil with a disability, as defined in section 125A.02, or a 
 35.28  pupil, as defined in section 125A.51, who is enrolled in a 
 35.29  program listed in this subdivision.  The tuition must be equal 
 35.30  to (1) the actual cost of providing special instruction and 
 35.31  services to the pupil, including a proportionate amount for debt 
 35.32  service and for capital expenditure facilities and equipment, 
 35.33  and debt service but not including any amount for 
 35.34  transportation, minus (2) the amount of general education 
 35.35  revenue and special education aid but not including any amount 
 35.36  for transportation, attributable to that pupil, that is received 
 36.1   by the district providing special instruction and services. 
 36.2      (e) An area learning center operated by a service 
 36.3   cooperative, intermediate district, education district, or a 
 36.4   joint powers cooperative may elect through the action of the 
 36.5   constituent boards to charge tuition for pupils rather than to 
 36.6   calculate general education aid adjustments under paragraph (a), 
 36.7   (b), or (c).  The tuition must be equal to the greater of the 
 36.8   average general education revenue per pupil unit attributable to 
 36.9   the pupil, or the actual cost of providing the instruction, 
 36.10  excluding transportation costs, if the pupil meets the 
 36.11  requirements of section 125A.02 or 125A.51. 
 36.12     Sec. 9.  Minnesota Statutes 2000, section 260B.171, 
 36.13  subdivision 3, is amended to read: 
 36.14     Subd. 3.  [DISPOSITION ORDER; COPY TO SCHOOL.] (a) If a 
 36.15  juvenile is enrolled in school, the juvenile's probation officer 
 36.16  shall transmit a copy of the court's disposition order to the 
 36.17  superintendent of the juvenile's school district or the chief 
 36.18  administrative officer of the juvenile's school if the juvenile 
 36.19  has been adjudicated delinquent for committing an act on the 
 36.20  school's property or an act: 
 36.21     (1) that would be a violation of section 609.185 
 36.22  (first-degree murder); 609.19 (second-degree murder); 609.195 
 36.23  (third-degree murder); 609.20 (first-degree manslaughter); 
 36.24  609.205 (second-degree manslaughter); 609.21 (criminal vehicular 
 36.25  homicide and injury); 609.221 (first-degree assault); 609.222 
 36.26  (second-degree assault); 609.223 (third-degree assault); 
 36.27  609.2231 (fourth-degree assault); 609.224 (fifth-degree 
 36.28  assault); 609.2242 (domestic assault); 609.24 (simple robbery); 
 36.29  609.245 (aggravated robbery); 609.25 (kidnapping); 609.255 
 36.30  (false imprisonment); 609.342 (first-degree criminal sexual 
 36.31  conduct); 609.343 (second-degree criminal sexual conduct); 
 36.32  609.344 (third-degree criminal sexual conduct); 609.345 
 36.33  (fourth-degree criminal sexual conduct); 609.3451 (fifth-degree 
 36.34  criminal sexual conduct); 609.498 (tampering with a witness); 
 36.35  609.561 (first-degree arson); 609.582, subdivision 1 or 2 
 36.36  (burglary); 609.713 (terroristic threats); or 609.749 
 37.1   (harassment and stalking), if committed by an adult; 
 37.2      (2) that would be a violation of section 152.021 
 37.3   (first-degree controlled substance crime); 152.022 
 37.4   (second-degree controlled substance crime); 152.023 
 37.5   (third-degree controlled substance crime); 152.024 
 37.6   (fourth-degree controlled substance crime); 152.025 
 37.7   (fifth-degree controlled substance crime); 152.0261 (importing a 
 37.8   controlled substance); or 152.027 (other controlled substance 
 37.9   offenses), if committed by an adult; or 
 37.10     (3) that involved the possession or use of a dangerous 
 37.11  weapon as defined in section 609.02, subdivision 6. 
 37.12     When a disposition order is transmitted under this 
 37.13  subdivision, the probation officer shall notify the juvenile's 
 37.14  parent or legal guardian that the disposition order has been 
 37.15  shared with the juvenile's school. 
 37.16     (b) In addition, the juvenile's probation officer may 
 37.17  transmit a copy of the court's disposition order to the 
 37.18  superintendent of the juvenile's school district or the chief 
 37.19  administrative officer of the juvenile's school if the juvenile 
 37.20  has been adjudicated delinquent for offenses not listed in 
 37.21  paragraph (a) and placed on probation.  The probation officer 
 37.22  shall notify the superintendent or chief administrative officer 
 37.23  when the juvenile is discharged from probation.  
 37.24     (c) The disposition order must be accompanied by a notice 
 37.25  to the school that the school may obtain additional information 
 37.26  from the juvenile's probation officer with the consent of the 
 37.27  juvenile or the juvenile's parents, as applicable.  The 
 37.28  disposition order must be maintained, shared, or released only 
 37.29  as provided in section 121A.07 121A.75. 
 37.30     (d) The juvenile's probation officer shall maintain a 
 37.31  record of disposition orders released under this subdivision and 
 37.32  the basis for the release. 
 37.33     (e) The criminal and juvenile justice information policy 
 37.34  group, in consultation with representatives of probation 
 37.35  officers and educators, shall prepare standard forms for use by 
 37.36  juvenile probation officers in forwarding information to schools 
 38.1   under this subdivision and in maintaining a record of the 
 38.2   information that is released.  
 38.3      (f) As used in this subdivision, "school" means a school as 
 38.4   defined in section 120A.22, subdivision 4, except a home school. 
 38.5      Sec. 10.  [REPEALER.] 
 38.6      (a) Minnesota Statutes 2000, sections 126C.55, subdivision 
 38.7   5, and 127A.41, subdivision 6, are repealed.  
 38.8      (b) Laws 2001, First Special Session chapter 3, article 4, 
 38.9   section 1, is repealed.