1.1                          A bill for an act 
  1.2             relating to education; kindergarten through grade 12 
  1.3             education; providing for general education, education 
  1.4             excellence, special education, facilities and 
  1.5             technology, and nutrition and other programs; 
  1.6             providing for rulemaking; amending Minnesota Statutes 
  1.7             2000, sections 13.41, subdivision 5; 122A.64; 123B.04, 
  1.8             subdivision 5; 123B.49, subdivisions 3, 4; 123B.57, 
  1.9             subdivision 4; 123B.61; 123B.62; 123B.63; 123B.83, 
  1.10            subdivision 4; 123B.88, subdivision 2; 124D.03, 
  1.11            subdivisions 2, 6; 124D.09, subdivisions 3, 4, 12, 20; 
  1.12            124D.10, subdivision 16; 124D.11, subdivisions 1, 2; 
  1.13            124D.118; 125A.03; 125A.27, subdivision 10; 125A.43; 
  1.14            125A.76, subdivision 7; 126C.01, by adding a 
  1.15            subdivision; 126C.10, subdivision 26; 126C.21, 
  1.16            subdivision 3; 126C.42, subdivision 1; 126C.63, 
  1.17            subdivision 5; 127A.47, subdivisions 7, 8; 475.61, 
  1.18            subdivision 1; Minnesota Statutes 2001 Supplement, 
  1.19            sections 13.32, subdivision 3; 13.46, subdivision 2; 
  1.20            121A.41, subdivision 10; 124D.65, subdivision 5; 
  1.21            125A.09, subdivision 3; 126C.10, subdivision 4; 
  1.22            126C.15, subdivision 1; 126C.17, subdivisions 7, 7a; 
  1.23            126C.63, subdivision 8; 126C.69, subdivisions 2, 9; 
  1.24            127A.42, subdivision 2; Laws 1965, chapter 705, as 
  1.25            amended; Laws 2001, First Special Section chapter 5, 
  1.26            article 2, section 15; Laws 2001, First Special 
  1.27            Session chapter 6, article 2, section 67; proposing 
  1.28            coding for new law in Minnesota Statutes, chapters 
  1.29            124D; 125A; repealing Minnesota Statutes 2000, 
  1.30            sections 123B.81, subdivision 6; 124D.65, subdivision 
  1.31            4; 126C.01, subdivisions 4, 11; 126C.14; 126C.40, 
  1.32            subdivision 4; Laws 2001, First Special Session 
  1.33            chapter 6, article 1, section 31; Laws 2001, First 
  1.34            Special Session chapter 6, article 5, section 12. 
  1.35  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.36                             ARTICLE 1
  1.37                         GENERAL EDUCATION 
  1.38     Section 1.  Minnesota Statutes 2000, section 123B.88, 
  1.39  subdivision 2, is amended to read: 
  1.40     Subd. 2.  [VOLUNTARY SURRENDER OF TRANSPORTATION 
  2.1   PRIVILEGES.] The parent or guardian of a secondary student may 
  2.2   voluntarily surrender the secondary student's to and from school 
  2.3   transportation privileges granted under subdivision 1. 
  2.4      Sec. 2.  Minnesota Statutes 2000, section 124D.10, 
  2.5   subdivision 16, is amended to read: 
  2.6      Subd. 16.  [TRANSPORTATION.] (a) By July March 1 of each 
  2.7   year, a charter school must notify the district in which the 
  2.8   school is located and the department of children, families, and 
  2.9   learning if it will provide transportation for pupils enrolled 
  2.10  in the school for the fiscal year. 
  2.11     (b) If a charter school elects to provide transportation 
  2.12  for pupils, the transportation must be provided by the charter 
  2.13  school within the district in which the charter school is 
  2.14  located.  The state must pay transportation aid to the charter 
  2.15  school according to section 124D.11, subdivision 2. 
  2.16     For pupils who reside outside the district in which the 
  2.17  charter school is located, the charter school is not required to 
  2.18  provide or pay for transportation between the pupil's residence 
  2.19  and the border of the district in which the charter school is 
  2.20  located.  A parent may be reimbursed by the charter school for 
  2.21  costs of transportation from the pupil's residence to the border 
  2.22  of the district in which the charter school is located if the 
  2.23  pupil is from a family whose income is at or below the poverty 
  2.24  level, as determined by the federal government.  The 
  2.25  reimbursement may not exceed the pupil's actual cost of 
  2.26  transportation or 15 cents per mile traveled, whichever is 
  2.27  less.  Reimbursement may not be paid for more than 250 miles per 
  2.28  week.  
  2.29     At the time a pupil enrolls in a charter school, the 
  2.30  charter school must provide the parent or guardian with 
  2.31  information regarding the transportation.  
  2.32     (c) If a charter school does not elect to provide 
  2.33  transportation, transportation for pupils enrolled at the school 
  2.34  must be provided by the district in which the school is located, 
  2.35  according to sections 123B.88, subdivision 6, and 124D.03, 
  2.36  subdivision 8, for a pupil residing in the same district in 
  3.1   which the charter school is located.  Transportation may be 
  3.2   provided by the district in which the school is located, 
  3.3   according to sections 123B.88, subdivision 6, and 124D.03, 
  3.4   subdivision 8, for a pupil residing in a different district.  If 
  3.5   the district provides the transportation, the scheduling of 
  3.6   routes, manner and method of transportation, control and 
  3.7   discipline of the pupils, and any other matter relating to the 
  3.8   transportation of pupils under this paragraph shall be within 
  3.9   the sole discretion, control, and management of the district 
  3.10  school board. 
  3.11     Sec. 3.  Minnesota Statutes 2000, section 124D.11, 
  3.12  subdivision 1, is amended to read: 
  3.13     Subdivision 1.  [GENERAL EDUCATION REVENUE.] (a) General 
  3.14  education revenue must be paid to a charter school as though it 
  3.15  were a district.  The general education revenue for each 
  3.16  adjusted marginal cost pupil unit is the state average general 
  3.17  education revenue per pupil unit, plus the referendum 
  3.18  equalization aid allowance in the pupil's district of residence, 
  3.19  minus an amount equal to the product of the formula allowance 
  3.20  according to section 126C.10, subdivision 2, times .0485, 
  3.21  calculated without basic skills revenue, and transportation 
  3.22  sparsity revenue, and the transportation portion of the 
  3.23  transition revenue adjustment, plus basic skills revenue as 
  3.24  though the school were a school district. 
  3.25     (b) Notwithstanding paragraph (a), for charter schools in 
  3.26  the first year of operation, general education revenue shall be 
  3.27  computed using the number of adjusted pupil units in the current 
  3.28  fiscal year.  
  3.29     Sec. 4.  Minnesota Statutes 2000, section 124D.11, 
  3.30  subdivision 2, is amended to read: 
  3.31     Subd. 2.  [TRANSPORTATION REVENUE.] Transportation revenue 
  3.32  must be paid to a charter school that provides transportation 
  3.33  services according to section 124D.10, subdivision 16, according 
  3.34  to this subdivision.  Transportation aid shall equal 
  3.35  transportation revenue.  
  3.36     In addition to the revenue under subdivision 1, a charter 
  4.1   school providing transportation services must receive general 
  4.2   education aid for each pupil unit equal to the sum of an amount 
  4.3   equal to the product of the formula allowance according to 
  4.4   section 126C.10, subdivision 2, times .0485, plus the 
  4.5   transportation sparsity allowance for the school district in 
  4.6   which the charter school is located, plus the transportation 
  4.7   transition allowance for the district in which the charter 
  4.8   school is located.  
  4.9      Sec. 5.  Minnesota Statutes 2001 Supplement, section 
  4.10  124D.65, subdivision 5, is amended to read: 
  4.11     Subd. 5.  [SCHOOL DISTRICT LEP REVENUE.] (a) A school 
  4.12  district's limited English proficiency programs revenue for 
  4.13  fiscal year 2000 equals the state total limited English 
  4.14  proficiency programs revenue, minus the amount determined under 
  4.15  paragraph (b), times the ratio of the district's adjusted 
  4.16  limited English proficiency programs base revenue to the state 
  4.17  total adjusted limited English proficiency programs base revenue.
  4.18     (b) Notwithstanding paragraph (a), if the limited English 
  4.19  proficiency programs base revenue for a district equals zero, 
  4.20  the limited English proficiency programs revenue equals the sum 
  4.21  of the following amounts, computed using current year data: 
  4.22     (1) 68 percent of the salary of one full-time equivalent 
  4.23  teacher for each 40 pupils of limited English proficiency 
  4.24  enrolled, or 68 percent of the salary of one-half of a full-time 
  4.25  teacher in a district with 20 or fewer pupils of limited English 
  4.26  proficiency enrolled; and 
  4.27     (2) for supplies and equipment purchased or rented for use 
  4.28  in the instruction of pupils of limited English proficiency an 
  4.29  amount equal to 47 percent of the sum actually spent by the 
  4.30  district but not to exceed an average of $47 in any one school 
  4.31  year for each pupil of limited English proficiency receiving 
  4.32  instruction. 
  4.33     (c) A district's limited English proficiency programs 
  4.34  revenue for fiscal year 2001 and later equals the product of 
  4.35  $584 times the greater of 20 or the number of adjusted marginal 
  4.36  cost pupils of limited English proficiency enrolled in the 
  5.1   district during the current fiscal year. 
  5.2      (d) (b) A pupil ceases to generate state limited English 
  5.3   proficiency aid in the school year following the school year in 
  5.4   which the pupil attains the state cut-off score on a 
  5.5   commissioner-provided assessment that measures the pupil's 
  5.6   emerging academic English. 
  5.7      Sec. 6.  Minnesota Statutes 2001 Supplement, section 
  5.8   126C.10, subdivision 4, is amended to read: 
  5.9      Subd. 4.  [BASIC SKILLS REVENUE.] (a) For fiscal year 2002, 
  5.10  a school district's basic skills revenue equals the sum of: 
  5.11     (1) compensatory revenue under subdivision 3; plus 
  5.12     (2) limited English proficiency revenue according to 
  5.13  section 124D.65, subdivision 5; plus 
  5.14     (3) $190 times the limited English proficiency pupil units 
  5.15  according to section 126C.05, subdivision 17; plus 
  5.16     (4) $22.50 times the number of adjusted marginal cost pupil 
  5.17  units in kindergarten to grade 8. 
  5.18     (b) For fiscal year 2003 and later, a school district's 
  5.19  basic skills revenue equals the sum of: 
  5.20     (1) compensatory revenue under subdivision 3; plus 
  5.21     (2) limited English proficiency revenue under section 
  5.22  124D.65, subdivision 5; plus 
  5.23     (3) $190 times the limited English proficiency pupil units 
  5.24  under section 126C.05, subdivision 17. 
  5.25     Sec. 7.  Minnesota Statutes 2000, section 126C.10, 
  5.26  subdivision 26, is amended to read: 
  5.27     Subd. 26.  [DISTRICT EQUITY GAP.] A district's equity gap 
  5.28  equals the greater of zero or the difference between the 
  5.29  district's adjusted general revenue and the value of the school 
  5.30  district at or immediately above the regional 90th 95th 
  5.31  percentile of adjusted general revenue per adjusted marginal 
  5.32  cost pupil unit. 
  5.33     <b>[EFFECTIVE DATE.]</b> This section is effective for revenue for 
  5.34  fiscal year 2002. 
  5.35     Sec. 8.  Minnesota Statutes 2001 Supplement, section 
  5.36  126C.15, subdivision 1, is amended to read: 
  6.1      Subdivision 1.  [USE OF THE REVENUE.] The basic skills 
  6.2   revenue under section 126C.10, subdivision 4, and the portion of 
  6.3   the transition revenue adjustment under section 126C.10, 
  6.4   subdivision 20, attributable to the compensatory transition 
  6.5   allowance under section 126C.10, subdivision 19, paragraph (b), 
  6.6   must be reserved and used to meet the educational needs of 
  6.7   pupils who enroll under-prepared to learn and whose progress 
  6.8   toward meeting state or local content or performance standards 
  6.9   is below the level that is appropriate for learners of their 
  6.10  age.  Any of the following may be provided to meet these 
  6.11  learners' needs: 
  6.12     (1) direct instructional services under the assurance of 
  6.13  mastery program according to section 124D.66; 
  6.14     (2) remedial instruction in reading, language arts, 
  6.15  mathematics, other content areas, or study skills to improve the 
  6.16  achievement level of these learners; 
  6.17     (3) additional teachers and teacher aides to provide more 
  6.18  individualized instruction to these learners through individual 
  6.19  tutoring, lower instructor-to-learner ratios, or team teaching; 
  6.20     (4) a longer school day or week during the regular school 
  6.21  year or through a summer program that may be offered directly by 
  6.22  the site or under a performance-based contract with a 
  6.23  community-based organization; 
  6.24     (5) comprehensive and ongoing staff development consistent 
  6.25  with district and site plans according to section 122A.60, for 
  6.26  teachers, teacher aides, principals, and other personnel to 
  6.27  improve their ability to identify the needs of these learners 
  6.28  and provide appropriate remediation, intervention, 
  6.29  accommodations, or modifications; 
  6.30     (6) instructional materials and technology appropriate for 
  6.31  meeting the individual needs of these learners; 
  6.32     (7) programs to reduce truancy, encourage completion of 
  6.33  high school, enhance self-concept, provide health services, 
  6.34  provide nutrition services, provide a safe and secure learning 
  6.35  environment, provide coordination for pupils receiving services 
  6.36  from other governmental agencies, provide psychological services 
  7.1   to determine the level of social, emotional, cognitive, and 
  7.2   intellectual development, and provide counseling services, 
  7.3   guidance services, and social work services; 
  7.4      (8) bilingual programs, bicultural programs, and programs 
  7.5   for learners of limited English proficiency; 
  7.6      (9) all day kindergarten; 
  7.7      (10) extended school day and extended school year programs; 
  7.8   and 
  7.9      (11) substantial parent involvement in developing and 
  7.10  implementing remedial education or intervention plans for a 
  7.11  learner, including learning contracts between the school, the 
  7.12  learner, and the parent that establish achievement goals and 
  7.13  responsibilities of the learner and the learner's parent or 
  7.14  guardian. 
  7.15     Sec. 9.  Minnesota Statutes 2001 Supplement, section 
  7.16  126C.17, subdivision 7, is amended to read: 
  7.17     Subd. 7.  [REFERENDUM EQUALIZATION AID.] (a) A district's 
  7.18  referendum equalization aid equals the difference between its 
  7.19  referendum equalization revenue and levy. 
  7.20     (b) If a district's actual levy for first or second tier 
  7.21  referendum equalization revenue is less than its maximum levy 
  7.22  limit for that tier, aid shall be proportionately reduced. 
  7.23     (c) If a district's second tier referendum equalization 
  7.24  levy under section 17, paragraph (d), exceeds the district's 
  7.25  levy under section 17, paragraph (c), the district may apply to 
  7.26  the commissioner by July 1 each year for additional second tier 
  7.27  referendum equalization aid for the subsequent fiscal year.  The 
  7.28  commissioner must approve or reject the application by September 
  7.29  1.  The additional aid must not exceed the lesser of 2.32 
  7.30  percent of the formula allowance times the district's resident 
  7.31  marginal cost pupil units or the difference between the levy 
  7.32  under section 17, paragraph (d), and the levy under section 17, 
  7.33  paragraph (c).  The second tier referendum equalization levy 
  7.34  must be reduced by the amount of the additional aid. 
  7.35     <b>[EFFECTIVE DATE.]</b> This section is effective for revenue for 
  7.36  fiscal year 2004. 
  8.1      Sec. 10.  Minnesota Statutes 2001 Supplement, section 
  8.2   126C.17, subdivision 7a, is amended to read: 
  8.3      Subd. 7a.  [REFERENDUM TAX BASE REPLACEMENT AID.] For each 
  8.4   school district that had a referendum allowance for fiscal year 
  8.5   2002 exceeding $415, for each separately authorized referendum 
  8.6   levy, the commissioner of revenue, in consultation with the 
  8.7   commissioner of children, families, and learning, shall certify 
  8.8   the amount of the referendum levy in taxes payable year 2001 
  8.9   attributable to the portion of the referendum allowance 
  8.10  exceeding $415 levied against property classified as class 2 
  8.11  4c(1), or 4c(4), under section 273.13, excluding the portion of 
  8.12  the tax paid by the portion of class 2a property consisting of 
  8.13  the house, garage, and surrounding one acre of land.  The 
  8.14  resulting amount must be used to reduce the district's 
  8.15  referendum levy amount otherwise determined, and must be paid to 
  8.16  the district each year that the referendum authority remains in 
  8.17  effect.  The aid payable under this subdivision must be 
  8.18  subtracted from the district's referendum equalization aid under 
  8.19  subdivision 7.  The referendum equalization aid after the 
  8.20  subtraction must not be less than zero. 
  8.21     For the purposes of this subdivision, the referendum levy 
  8.22  with the latest year of expiration is assumed to be at the 
  8.23  highest level of equalization, and the referendum levy with the 
  8.24  earliest year of expiration is assumed to be at the lowest level 
  8.25  of equalization. 
  8.26     Sec. 11.  Minnesota Statutes 2000, section 126C.21, 
  8.27  subdivision 3, is amended to read: 
  8.28     Subd. 3.  [COUNTY APPORTIONMENT DEDUCTION.] Each year the 
  8.29  amount of money apportioned to a district for that year pursuant 
  8.30  to section 127A.34, subdivision 2, excluding any district where 
  8.31  the general education levy is determined according to section 
  8.32  126C.13, subdivision 3, must be deducted from the general 
  8.33  education aid earned by that district for the same year or from 
  8.34  aid earned from other state sources.  
  8.35     Sec. 12.  Minnesota Statutes 2000, section 126C.42, 
  8.36  subdivision 1, is amended to read: 
  9.1      Subdivision 1.  [1977 STATUTORY OPERATING DEBT.] (a) In 
  9.2   each year in which so required by this subdivision, a district 
  9.3   must make an additional levy to eliminate its statutory 
  9.4   operating debt, determined as of June 30, 1977, and certified 
  9.5   and adjusted by the commissioner.  This levy shall not be made 
  9.6   in more than 30 successive years and each year before it is 
  9.7   made, it must be approved by the commissioner and the approval 
  9.8   shall specify its amount.  This levy shall be an amount which is 
  9.9   equal to the amount raised by a levy of a net tax rate of 1.98 
  9.10  2.67 percent times the adjusted net tax capacity of the district 
  9.11  for the preceding year for taxes payable in 2000 2002 and 
  9.12  thereafter; provided that in the last year in which the district 
  9.13  is required to make this levy, it must levy an amount not to 
  9.14  exceed the amount raised by a levy of a net tax rate of 1.98 
  9.15  2.67 percent times the adjusted net tax capacity of the district 
  9.16  for the preceding year for taxes payable in 2000 2002 and 
  9.17  thereafter.  When the sum of the cumulative levies made pursuant 
  9.18  to this subdivision and transfers made according to section 
  9.19  123B.79, subdivision 6, equals an amount equal to the statutory 
  9.20  operating debt of the district, the levy shall be discontinued. 
  9.21     (b) The district must establish a special account in the 
  9.22  general fund which shall be designated "appropriated fund 
  9.23  balance reserve account for purposes of reducing statutory 
  9.24  operating debt" on its books and records.  This account shall 
  9.25  reflect the levy authorized pursuant to this subdivision.  The 
  9.26  proceeds of this levy must be used only for cash flow 
  9.27  requirements and must not be used to supplement district 
  9.28  revenues or income for the purposes of increasing the district's 
  9.29  expenditures or budgets. 
  9.30     (c) Any district which is required to levy pursuant to this 
  9.31  subdivision must certify the maximum levy allowable under 
  9.32  section 126C.13, subdivision 2, in that same year. 
  9.33     (d) Each district shall make permanent fund balance 
  9.34  transfers so that the total statutory operating debt of the 
  9.35  district is reflected in the general fund as of June 30, 1977. 
  9.36     Sec. 13.  Minnesota Statutes 2001 Supplement, section 
 10.1   127A.42, subdivision 2, is amended to read: 
 10.2      Subd. 2.  [VIOLATIONS OF LAW.] The commissioner may reduce 
 10.3   or withhold the district's state aid for any school year 
 10.4   whenever the board of the district authorizes or permits 
 10.5   violations of law within the district by: 
 10.6      (1) employing a teacher who does not hold a valid teaching 
 10.7   license or permit in a public school; 
 10.8      (2) noncompliance with a mandatory rule of general 
 10.9   application promulgated by the commissioner in accordance with 
 10.10  statute, unless special circumstances make enforcement 
 10.11  inequitable, impose an extraordinary hardship on the district, 
 10.12  or the rule is contrary to the district's best interests; 
 10.13     (3) the district's continued performance of a contract made 
 10.14  for the rental of rooms or buildings for school purposes or for 
 10.15  the rental of any facility owned or operated by or under the 
 10.16  direction of any private organization, if the contract has been 
 10.17  disapproved, the time for review of the determination of 
 10.18  disapproval has expired, and no proceeding for review is 
 10.19  pending; 
 10.20     (4) any practice which is a violation of sections 1 and 2 
 10.21  of article 13 of the Constitution of the state of Minnesota; 
 10.22     (5) failure to reasonably provide for a resident pupil's 
 10.23  school attendance under Minnesota Statutes; 
 10.24     (6) noncompliance with state laws prohibiting 
 10.25  discrimination because of race, color, creed, religion, national 
 10.26  origin, sex, age, marital status, status with regard to public 
 10.27  assistance or disability, as defined in section 363.03; or 
 10.28     (7) using funds contrary to the statutory purpose of the 
 10.29  funds. 
 10.30  The reduction or withholding must be made in the amount and upon 
 10.31  the procedure provided in this section.  
 10.32     Sec. 14.  Minnesota Statutes 2000, section 127A.47, 
 10.33  subdivision 7, is amended to read: 
 10.34     Subd. 7.  [ALTERNATIVE ATTENDANCE PROGRAMS.] The general 
 10.35  education aid for districts must be adjusted for each pupil 
 10.36  attending a nonresident district under sections 123A.05 to 
 11.1   123A.08, 124D.03, 124D.06, 124D.07, 124D.08, and 124D.68.  The 
 11.2   adjustments must be made according to this subdivision. 
 11.3      (a) General education aid paid to a resident district must 
 11.4   be reduced by an amount equal to the referendum equalization aid 
 11.5   attributable to the pupil in the resident district. 
 11.6      (b) General education aid paid to a district serving a 
 11.7   pupil in programs listed in this subdivision must be increased 
 11.8   by an amount equal to the referendum equalization aid 
 11.9   attributable to the pupil in the nonresident district.  
 11.10     (c) If the amount of the reduction to be made from the 
 11.11  general education aid of the resident district is greater than 
 11.12  the amount of general education aid otherwise due the district, 
 11.13  the excess reduction must be made from other state aids due the 
 11.14  district. 
 11.15     (d) The district of residence must pay tuition to a 
 11.16  district or an area learning center, operated according to 
 11.17  paragraph (e), providing special instruction and services to a 
 11.18  pupil with a disability, as defined in section 125A.02, or a 
 11.19  pupil, as defined in section 125A.51, who is enrolled in a 
 11.20  program listed in this subdivision.  The tuition must be equal 
 11.21  to (1) the actual cost of providing special instruction and 
 11.22  services to the pupil, including a proportionate amount for debt 
 11.23  service and for capital expenditure facilities and equipment, 
 11.24  and debt service but not including any amount for 
 11.25  transportation, minus (2) the amount of general education 
 11.26  revenue and special education aid but not including any amount 
 11.27  for transportation, attributable to that pupil, that is received 
 11.28  by the district providing special instruction and services. 
 11.29     (e) An area learning center operated by a service 
 11.30  cooperative, intermediate district, education district, or a 
 11.31  joint powers cooperative may elect through the action of the 
 11.32  constituent boards to charge the resident district tuition for 
 11.33  pupils rather than to calculate general education aid 
 11.34  adjustments under paragraph (a), (b), or (c).  The tuition must 
 11.35  be equal to the greater of the average general education revenue 
 11.36  per pupil unit attributable to the pupil, or the actual cost of 
 12.1   providing the instruction, excluding transportation costs, if 
 12.2   the pupil meets the requirements of section 125A.02 or 
 12.3   125A.51 have the general education revenue paid to a fiscal 
 12.4   agent school district.  Except as provided in paragraph (d), the 
 12.5   district of residence must pay tuition equal to at least 90 
 12.6   percent of the district average general education revenue per 
 12.7   pupil unit minus an amount equal to the product of the formula 
 12.8   allowance according to section 126C.10, subdivision 2, times 
 12.9   .0485, calculated without basic skills revenue and 
 12.10  transportation sparsity revenue, times the number of pupil units 
 12.11  for pupils attending the area learning center, plus the amount 
 12.12  of compensatory revenue generated by pupils attending the area 
 12.13  learning center. 
 12.14     Sec. 15.  Minnesota Statutes 2000, section 127A.47, 
 12.15  subdivision 8, is amended to read: 
 12.16     Subd. 8.  [CHARTER SCHOOLS.] (a) The general education aid 
 12.17  for districts must be adjusted for each pupil attending a 
 12.18  charter school under section 124D.10.  The adjustments must be 
 12.19  made according to this subdivision. 
 12.20     (b) General education aid paid to a district in which a 
 12.21  charter school not providing transportation according to section 
 12.22  124D.10, subdivision 16, is located must be increased by an 
 12.23  amount equal to the product of:  (1) the sum of an amount equal 
 12.24  to the product of the formula allowance according to section 
 12.25  126C.10, subdivision 2, times .0485, plus the transportation 
 12.26  sparsity allowance for the district, plus the transportation 
 12.27  transition allowance for the district; times (2) the pupil units 
 12.28  attributable to the pupil.  
 12.29     Sec. 16.  Laws 1965, chapter 705, as amended by Laws 1975, 
 12.30  chapter 261, section 4; Laws 1980, chapter 609, article 6, 
 12.31  section 37; and Laws 1989, chapter 329, article 13, section 18, 
 12.32  is amended to read: 
 12.33     Sec. 6.  The school board of independent school district 
 12.34  No. 625, St. Paul, for the purpose of providing moneys for the 
 12.35  payment of its severance pay obligations under a plan approved 
 12.36  by resolution of the district, in addition to all other powers 
 13.1   possessed by the school district and in addition to and in 
 13.2   excess of any existing limitation upon the amount it is 
 13.3   otherwise authorized by law to levy as taxes, is authorized to 
 13.4   levy taxes annually not exceeding in any one year an amount 
 13.5   equal to a gross tax capacity rate of .17 percent for taxes 
 13.6   payable in 1990 or a net tax capacity rate of .21 .34 percent 
 13.7   for taxes payable in 1991 2002 and thereafter upon all taxable 
 13.8   property within the school district which taxes as levied shall 
 13.9   be spread upon the tax rolls, and all corrections thereof shall 
 13.10  be held by the school district, and allocated therefor to be 
 13.11  disbursed and expended by the school district in payment of any 
 13.12  public school severance pay obligations and for no other 
 13.13  purpose.  Disbursements and expenditures previously authorized 
 13.14  on behalf of the school district for payment of severance pay 
 13.15  obligations shall not be deemed to constitute any part of the 
 13.16  cost of the operation and maintenance of the school district 
 13.17  within the meaning of any statutory limitation of any school 
 13.18  district expenditures. 
 13.19     The amount of such severance pay allowable or to become 
 13.20  payable in respect of any such employment or to any such 
 13.21  employee shall not exceed the amount permitted by Minnesota 
 13.22  Statutes, Section 465.72. 
 13.23     Sec. 17.  Laws 2001, First Special Session chapter 5, 
 13.24  article 2, section 15, is amended to read: 
 13.25     Sec. 15.  Minnesota Statutes 2000, section 126C.17, 
 13.26  subdivision 6, is amended to read: 
 13.27     Subd. 6.  [REFERENDUM EQUALIZATION LEVY.] (a) For fiscal 
 13.28  year 2003 and later, a district's referendum equalization levy 
 13.29  equals the sum of the first tier referendum equalization levy 
 13.30  and the second tier referendum equalization levy. 
 13.31     (b) A district's first tier referendum equalization levy 
 13.32  equals the district's first tier referendum equalization revenue 
 13.33  times the lesser of one or the ratio of the district's 
 13.34  referendum market value per resident marginal cost pupil unit to 
 13.35  $476,000. 
 13.36     (c) A district's second tier referendum equalization levy 
 14.1   equals the district's second tier referendum equalization 
 14.2   revenue times the lesser of one or the ratio of the district's 
 14.3   referendum market value per resident marginal cost pupil unit to 
 14.4   $270,000. 
 14.5      (d) Notwithstanding paragraph (c), a district's second tier 
 14.6   referendum equalization levy must not be less than 15 percent of 
 14.7   the district's second tier referendum equalization revenue. 
 14.8      <b>[EFFECTIVE DATE.]</b> This section is effective for revenue for 
 14.9   fiscal year 2004. 
 14.10     Sec. 18.  [REVISOR INSTRUCTION.] 
 14.11     In the next and subsequent editions of Minnesota Statutes, 
 14.12  the revisor shall number section 16 as Minnesota Statutes, 
 14.13  section 126C.42, subdivision 5. 
 14.14     Sec. 19.  [REPEALER.] 
 14.15     (a) Minnesota Statutes 2000, sections 123B.81, subdivision 
 14.16  6; and 124D.65, subdivision 4; and Laws 2001, First Special 
 14.17  Session chapter 6, article 5, section 12, are repealed. 
 14.18     (b) Minnesota Statutes 2000, section 126C.01, subdivision 
 14.19  4, is repealed effective July 1, 2002. 
 14.20     (c) Minnesota Statutes 2000, sections 126C.14; and 126C.40, 
 14.21  subdivision 4, are repealed effective for revenue for fiscal 
 14.22  year 2003. 
 14.23     (d) Laws 2001, First Special Session chapter 6, article 1, 
 14.24  section 31, is repealed retroactive to July 1, 2001. 
 14.25                             ARTICLE 2
 14.26                        EDUCATION EXCELLENCE 
 14.27     Section 1.  Minnesota Statutes 2000, section 122A.64, is 
 14.28  amended to read: 
 14.29     122A.64 [TEACHERS OF COLOR MULTICULTURAL EDUCATOR PROGRAM.] 
 14.30     Subdivision 1.  [DEFINITION.] For purposes of this 
 14.31  section, "people of color" means permanent United States 
 14.32  residents who are African-American, American Indian or Alaskan 
 14.33  native, Asian or Pacific Islander, or Hispanic "multicultural 
 14.34  educator" means a person with significant personal or 
 14.35  professional experience with communities of color and an 
 14.36  interest in teaching to enhance the achievement and success of 
 15.1   Minnesota's multicultural schools. 
 15.2      Subd. 2.  [GRANTS.] The commissioner of children, families, 
 15.3   and learning in consultation with the desegregation/integration 
 15.4   advisory board established in section 124D.892, subdivision 3, 
 15.5   shall award grants for professional development programs to 
 15.6   recruit and educate people of color multicultural educators in 
 15.7   the field of education, including early childhood and parent 
 15.8   education.  Grant applicants must be a school district with a 
 15.9   growing minority population working in collaboration with a 
 15.10  state institution of higher education with an approved teacher 
 15.11  licensure program or an approved early childhood or parent 
 15.12  education licensure program. 
 15.13     Subd. 3.  [PROGRAM REQUIREMENTS.] (a) A grant recipient 
 15.14  must recruit persons of color multicultural educators to be 
 15.15  teachers in elementary, secondary, early childhood or parent 
 15.16  education, and provide support in linking program participants 
 15.17  with jobs in the recipient's school district. 
 15.18     (b) A grant recipient must establish an advisory council 
 15.19  composed of representatives of communities of color. 
 15.20     (c) A grant recipient, with the assistance of the advisory 
 15.21  council, must recruit high school students and other persons, 
 15.22  including educational paraprofessionals, support them through 
 15.23  the higher education application and admission process, advise 
 15.24  them while enrolled and link them with support resources in the 
 15.25  college or university and the community. 
 15.26     (d) A grant recipient must award stipends to multicultural 
 15.27  students of color enrolled in an approved licensure program to 
 15.28  help cover the costs of tuition, student fees, supplies, and 
 15.29  books.  Stipend awards must be based on a student's financial 
 15.30  need and students must apply for any additional financial aid 
 15.31  they are eligible for to supplement this program.  No more than 
 15.32  ten percent of the grant may be used for costs of administering 
 15.33  the program.  Students must agree to teach in the grantee school 
 15.34  district for at least two years after licensure.  If the 
 15.35  district has no licensed positions open, the student may teach 
 15.36  in another district in Minnesota. 
 16.1      (e) The commissioner of children, families, and learning 
 16.2   shall consider the following criteria in awarding grants: 
 16.3      (1) whether the program is likely to increase the 
 16.4   recruitment and retention of multicultural students of color in 
 16.5   teaching; 
 16.6      (2) whether grant recipients will recruit paraprofessionals 
 16.7   from the district to work in its schools; and 
 16.8      (3) whether grant recipients will establish or have a 
 16.9   mentoring program for multicultural students of color. 
 16.10     Sec. 2.  Minnesota Statutes 2000, section 123B.04, 
 16.11  subdivision 5, is amended to read: 
 16.12     Subd. 5.  [COMMISSIONER'S ROLE.] The commissioner of 
 16.13  children, families, and learning, in consultation with 
 16.14  appropriate educational organizations, shall: 
 16.15     (1) upon request, provide technical support for districts 
 16.16  and sites with agreements under this section; and 
 16.17     (2) conduct and compile research on the effectiveness of 
 16.18  site decision making; and 
 16.19     (3) periodically report on and evaluate the effectiveness 
 16.20  of site management agreements on a statewide basis. 
 16.21     Sec. 3.  Minnesota Statutes 2000, section 124D.03, 
 16.22  subdivision 2, is amended to read: 
 16.23     Subd. 2.  [LIMITED ENROLLMENT OF NONRESIDENT PUPILS.] (a) A 
 16.24  board may, by resolution, limit the enrollment of nonresident 
 16.25  pupils in its schools or programs district according to this 
 16.26  section to a number not less than the lesser of: 
 16.27     (1) one percent of the total enrollment at each grade level 
 16.28  in the district; or 
 16.29     (2) the number of district residents at that grade level 
 16.30  enrolled in a nonresident district according to this section.  
 16.31     (b) A district that limits enrollment of nonresident pupils 
 16.32  under paragraph (a) shall report submit to the commissioner by 
 16.33  July 15 on the number of nonresident pupils denied admission due 
 16.34  to the limitations on the enrollment of nonresident pupils its 
 16.35  approved board resolution in writing within 15 days of board 
 16.36  action under this subdivision. 
 17.1      Sec. 4.  Minnesota Statutes 2000, section 124D.03, 
 17.2   subdivision 6, is amended to read: 
 17.3      Subd. 6.  [BASIS FOR DECISIONS.] The board must adopt, by 
 17.4   resolution, specific standards for acceptance and rejection of 
 17.5   applications.  Standards may include the capacity of a program, 
 17.6   class, or school building.  The school board may not reject 
 17.7   applications for enrollment in a particular grade level if the 
 17.8   nonresident enrollment at that grade level does not exceed the 
 17.9   limit set by the board under subdivision 2.  Standards may not 
 17.10  include previous academic achievement, athletic or other 
 17.11  extracurricular ability, disabling conditions, proficiency in 
 17.12  the English language, previous disciplinary proceedings, or the 
 17.13  student's district of residence. 
 17.14     Sec. 5.  Minnesota Statutes 2000, section 124D.09, 
 17.15  subdivision 3, is amended to read: 
 17.16     Subd. 3.  [DEFINITIONS.] For purposes of this section, the 
 17.17  following terms have the meanings given to them. 
 17.18     (a) "Eligible institution" means a Minnesota public 
 17.19  post-secondary institution, a private, nonprofit two-year trade 
 17.20  and technical school granting associate degrees, an 
 17.21  opportunities industrialization center or tribal college 
 17.22  accredited by the North Central Association of Colleges and 
 17.23  Schools, or a private, residential, two-year or four-year, 
 17.24  liberal arts, degree-granting college or university located in 
 17.25  Minnesota.  "Course" means a course or program.  
 17.26     (b) "Course" means a course or program.  
 17.27     Sec. 6.  Minnesota Statutes 2000, section 124D.09, 
 17.28  subdivision 4, is amended to read: 
 17.29     Subd. 4.  [ALTERNATIVE PUPIL.] "Alternative pupil" means an 
 17.30  11th or 12th grade student not enrolled in a public school 
 17.31  district, and includes students attending nonpublic schools and 
 17.32  students who are home schooled and have met the reporting 
 17.33  requirements under section 120A.24, subdivision 1, clause (1).  
 17.34  An alternative pupil is considered a pupil for purposes of this 
 17.35  section only.  An alternative pupil must register with the 
 17.36  commissioner of children, families, and learning before 
 18.1   participating in the post-secondary enrollment options program.  
 18.2   The commissioner shall prescribe the form and manner of the 
 18.3   registration, in consultation with the nonpublic education 
 18.4   council under section 123B.445, and may request any necessary 
 18.5   information from the alternative pupil. 
 18.6      Sec. 7.  Minnesota Statutes 2000, section 124D.09, 
 18.7   subdivision 12, is amended to read: 
 18.8      Subd. 12.  [CREDITS.] A pupil may enroll in a course under 
 18.9   this section for either secondary credit or post-secondary 
 18.10  credit.  At the time a pupil enrolls in a course, the pupil 
 18.11  shall designate whether the course is for secondary or 
 18.12  post-secondary credit.  A pupil taking several courses may 
 18.13  designate some for secondary credit and some for post-secondary 
 18.14  credit.  A pupil must not audit a course under this section. 
 18.15     A district shall grant academic credit to a pupil enrolled 
 18.16  in a course for secondary credit if the pupil successfully 
 18.17  completes the course.  Seven quarter or four semester college 
 18.18  credits equal at least one full year of high school credit.  
 18.19  Fewer college credits may be prorated.  A district must also 
 18.20  grant academic credit to a pupil enrolled in a course for 
 18.21  post-secondary credit if secondary credit is requested by a 
 18.22  pupil.  If no comparable course is offered by the district, the 
 18.23  district must, as soon as possible, notify the commissioner, who 
 18.24  shall determine the number of credits that shall be granted to a 
 18.25  pupil who successfully completes a course.  If a comparable 
 18.26  course is offered by the district, the school board shall grant 
 18.27  a comparable number of credits to the pupil.  If there is a 
 18.28  dispute between the district and the pupil regarding the number 
 18.29  of credits granted for a particular course, the pupil may appeal 
 18.30  the board's decision to the commissioner.  The commissioner's 
 18.31  decision regarding the number of credits shall be final.  
 18.32     The secondary credits granted to a pupil must be counted 
 18.33  toward the graduation requirements and subject area requirements 
 18.34  of the district.  Evidence of successful completion of each 
 18.35  course and secondary credits granted must be included in the 
 18.36  pupil's secondary school record.  A pupil shall provide the 
 19.1   school with a copy of the pupil's grade in each course taken for 
 19.2   secondary credit under this section.  Upon the request of a 
 19.3   pupil, the pupil's secondary school record must also include 
 19.4   evidence of successful completion and credits granted for a 
 19.5   course taken for post-secondary credit.  In either case, the 
 19.6   record must indicate that the credits were earned at a 
 19.7   post-secondary institution. 
 19.8      If a pupil enrolls in a post-secondary institution after 
 19.9   leaving secondary school, the post-secondary institution must 
 19.10  award post-secondary credit for any course successfully 
 19.11  completed for secondary credit at that institution.  Other 
 19.12  post-secondary institutions may award, after a pupil leaves 
 19.13  secondary school, post-secondary credit for any courses 
 19.14  successfully completed under this section.  An institution may 
 19.15  not charge a pupil for the award of credit. 
 19.16     Sec. 8.  Minnesota Statutes 2000, section 124D.09, 
 19.17  subdivision 20, is amended to read: 
 19.18     Subd. 20.  [TEXTBOOKS; MATERIALS.] All textbooks and 
 19.19  equipment provided to a pupil, and paid for under subdivision 
 19.20  13, are the property of the pupil's school district of residence 
 19.21  post-secondary institution.  Each pupil is required to return 
 19.22  all textbooks and equipment to the district post-secondary 
 19.23  institution after the course has ended. 
 19.24     Sec. 9.  [124D.452] [CAREER AND TECHNICAL EDUCATION 
 19.25  DISTRICT REPORTS.] 
 19.26     Each district or cooperative center must report data to the 
 19.27  department for all career and technical education programs as 
 19.28  required by the department. 
 19.29     Sec. 10.  Laws 2001, First Special Session chapter 6, 
 19.30  article 2, section 67, the effective date, is amended to read: 
 19.31     <b>[EFFECTIVE DATE.]</b> The requirement in paragraph (a) to 
 19.32  include items to allow students to demonstrate computational 
 19.33  skills without using a calculator in the mathematics basic 
 19.34  skills test is effective February 1, 2002 2008.  The requirement 
 19.35  in paragraph (a) to include items to allow students to 
 19.36  demonstrate computational skills without using a calculator in 
 20.1   the Minnesota comprehensive assessments is effective February 1, 
 20.2   2004.  Paragraph (b) is effective the day following final 
 20.3   enactment. 
 20.4      Sec. 11.  [PROFILE OF LEARNING.] 
 20.5      The commissioner of children, families, and learning may 
 20.6   amend rules relating to the profile of learning in Minnesota 
 20.7   Rules, parts 3501.0300 to 3501.0469. 
 20.8                              ARTICLE 3
 20.9                           SPECIAL PROGRAMS
 20.10     Section 1.  Minnesota Statutes 2001 Supplement, section 
 20.11  121A.41, subdivision 10, is amended to read: 
 20.12     Subd. 10.  [SUSPENSION.] "Suspension" means an action by 
 20.13  the school administration, under rules promulgated by the school 
 20.14  board, prohibiting a pupil from attending school for a period of 
 20.15  no more than ten school days.  If a suspension is longer than 
 20.16  five days, the suspending administrator must provide the 
 20.17  superintendent with a reason for the longer suspension.  This 
 20.18  definition does not apply to dismissal from school for one 
 20.19  school day or less, except as provided in federal law for a 
 20.20  student with a disability.  Each suspension action may include a 
 20.21  readmission plan.  The readmission plan shall include, where 
 20.22  appropriate, a provision for implementing alternative 
 20.23  educational services upon readmission and may not be used to 
 20.24  extend the current suspension.  Consistent with section 125A.09, 
 20.25  subdivision 3, the readmission plan must not obligate a parent 
 20.26  to provide a sympathomimetic medication for the parent's child 
 20.27  as a condition of readmission.  The school administration may 
 20.28  not impose consecutive suspensions against the same pupil for 
 20.29  the same course of conduct, or incident of misconduct, except 
 20.30  where the pupil will create an immediate and substantial danger 
 20.31  to self or to surrounding persons or property, or where the 
 20.32  district is in the process of initiating an expulsion, in which 
 20.33  case the school administration may extend the suspension to a 
 20.34  total of 15 days.  In the case of a student with a disability, 
 20.35  the student's individual education plan team and other qualified 
 20.36  personnel must meet immediately but not more than ten school 
 21.1   days after the date on which the decision to remove the student 
 21.2   from the student's current education placement is made.  The 
 21.3   individual education plan team shall at that meeting:  conduct a 
 21.4   review of the relationship between the child's disability and 
 21.5   the behavior subject to disciplinary action; and determine the 
 21.6   appropriateness of the child's education plan. 
 21.7      The requirements of the individual education plan team 
 21.8   meeting apply when: 
 21.9      (1) the parent requests a meeting; 
 21.10     (2) the student is removed from the student's current 
 21.11  placement for five or more consecutive days; or 
 21.12     (3) the student's total days of removal from the student's 
 21.13  placement during the school year exceed ten cumulative days in a 
 21.14  school year.  The school administration shall implement 
 21.15  alternative educational services when the suspension exceeds 
 21.16  five days.  A separate administrative conference is required for 
 21.17  each period of suspension. 
 21.18     Sec. 2.  [125A.021] [DEPARTMENT DUTY.] 
 21.19     The department of children, families, and learning shall 
 21.20  enforce all federal and state laws, federal regulations, and 
 21.21  state rules for special education. 
 21.22     Sec. 3.  Minnesota Statutes 2000, section 125A.03, is 
 21.23  amended to read: 
 21.24     125A.03 [SPECIAL INSTRUCTION FOR CHILDREN WITH A 
 21.25  DISABILITY.] 
 21.26     (a) As defined in paragraph (b), every district or other 
 21.27  entity providing public education must provide special 
 21.28  instruction and a free appropriate public education through 
 21.29  specialized instruction and related services, either within the 
 21.30  district or in another district, for all children with a 
 21.31  disability who are residents of the district and who are 
 21.32  disabled as set forth in section 125A.02 in conformance with 
 21.33  sections 121A.40 to 121A.56. 
 21.34     (b) Notwithstanding any age limits in laws to the contrary, 
 21.35  special instruction and related services must be provided from 
 21.36  birth until July 1 after the child with a disability becomes 21 
 22.1   years old but shall not extend beyond secondary school or its 
 22.2   equivalent, except as provided in section 124D.68, subdivision 
 22.3   2.  Local health, education, and social service agencies must 
 22.4   refer children under age five who are known to need or suspected 
 22.5   of needing special instruction and services to the school 
 22.6   district.  Districts with less than the minimum number of 
 22.7   eligible children with a disability as determined by the 
 22.8   commissioner must cooperate with other districts to maintain a 
 22.9   full range of programs for education and services for children 
 22.10  with a disability.  This section does not alter the compulsory 
 22.11  attendance requirements of section 120A.22. 
 22.12     Sec. 4.  Minnesota Statutes 2001 Supplement, section 
 22.13  125A.09, subdivision 3, is amended to read: 
 22.14     Subd. 3.  [INITIAL ACTION; PARENT CONSENT.] (a) The 
 22.15  district must not proceed with the initial formal assessment of 
 22.16  a child, the initial placement of a child in a special education 
 22.17  program, or the initial provision of special education services 
 22.18  for a child without the prior written consent of the child's 
 22.19  parent or guardian.  The refusal of a parent or guardian to 
 22.20  consent may be overridden by the decision in a hearing held 
 22.21  pursuant to subdivision 6 at the district's initiative. 
 22.22     (b) A parent, after consulting with health care, education, 
 22.23  or other professional providers, may agree or disagree to 
 22.24  provide the parent's child with sympathomimetic medications 
 22.25  unless section 144.344 applies.  
 22.26     Sec. 5.  Minnesota Statutes 2000, section 125A.27, 
 22.27  subdivision 10, is amended to read: 
 22.28     Subd. 10.  [INDIVIDUALIZED FAMILY SERVICE PLAN.] 
 22.29  "Individualized family service plan" or "IFSP" means a written 
 22.30  plan for providing services to a child age birth to three years 
 22.31  and the child's family.  
 22.32     Sec. 6.  Minnesota Statutes 2000, section 125A.43, is 
 22.33  amended to read: 
 22.34     125A.43 [MEDIATION PROCEDURE.] 
 22.35     (a) The commissioner, or the commissioner's designee, of 
 22.36  the state lead agency must use federal funds to provide 
 23.1   mediation for the activities in paragraphs (b) and (c). 
 23.2      (b) A parent may resolve a dispute regarding issues in 
 23.3   section 125A.42, paragraph (b), clause (5), through mediation.  
 23.4   If the parent chooses mediation, all public agencies involved in 
 23.5   the dispute must participate in the mediation process mediation 
 23.6   must be voluntary on the part of all parties.  The parent and 
 23.7   the public agencies must complete the mediation process within 
 23.8   30 calendar days of the date the office of dispute resolution 
 23.9   receives a parent's written request for mediation.  The 
 23.10  mediation process may not be used to delay a parent's right to a 
 23.11  due process hearing.  The resolution of the mediation is not 
 23.12  binding on any party. 
 23.13     (c) Resolution of a dispute through mediation, or other 
 23.14  form of alternative dispute resolution, is not limited to formal 
 23.15  disputes arising from the objection of a parent or guardian and 
 23.16  is not limited to the period following a request for a due 
 23.17  process hearing. 
 23.18     (d) The commissioner shall provide training and resources 
 23.19  to school districts to facilitate early identification of 
 23.20  disputes and access to mediation. 
 23.21     (e) The local primary agency may request mediation on 
 23.22  behalf of involved agencies when there are disputes between 
 23.23  agencies regarding responsibilities to coordinate, provide, pay 
 23.24  for, or facilitate payment for early intervention services. 
 23.25     Sec. 7.  Minnesota Statutes 2000, section 125A.76, 
 23.26  subdivision 7, is amended to read: 
 23.27     Subd. 7.  [REVENUE ALLOCATION FROM COOPERATIVE CENTERS AND 
 23.28  INTERMEDIATES.] For the purposes of this section, a special 
 23.29  education cooperative, a service cooperative, an education 
 23.30  district, or an intermediate district must allocate its approved 
 23.31  expenditures for special education programs among participating 
 23.32  school districts. 
 23.33                             ARTICLE 4
 23.34                     FACILITIES AND TECHNOLOGY
 23.35     Section 1.  Minnesota Statutes 2000, section 123B.57, 
 23.36  subdivision 4, is amended to read: 
 24.1      Subd. 4.  [HEALTH AND SAFETY LEVY.] To receive health and 
 24.2   safety revenue, a district may levy an amount equal to the 
 24.3   district's health and safety revenue as defined in subdivision 3 
 24.4   multiplied by the lesser of one, or the ratio of the quotient 
 24.5   derived by dividing the adjusted net tax capacity of the 
 24.6   district for the year preceding the year the levy is certified 
 24.7   by the adjusted marginal cost pupil units in the district for 
 24.8   the school year to which the levy is attributable, 
 24.9   to $3,956 $2,935. 
 24.10     Sec. 2.  Minnesota Statutes 2000, section 123B.61, is 
 24.11  amended to read: 
 24.12     123B.61 [PURCHASE OF CERTAIN EQUIPMENT.] 
 24.13     The board of a district may issue general obligation 
 24.14  certificates of indebtedness or capital notes subject to the 
 24.15  district debt limits to:  (a) purchase vehicles, computers, 
 24.16  telephone systems, cable equipment, photocopy and office 
 24.17  equipment, technological equipment for instruction, and other 
 24.18  capital equipment having an expected useful life at least as 
 24.19  long as the terms of the certificates or notes; (b) purchase 
 24.20  computer hardware and software, without regard to its expected 
 24.21  useful life, whether bundled with machinery or equipment or 
 24.22  unbundled, together with application development services and 
 24.23  training related to the use of the computer; and (c) prepay 
 24.24  special assessments.  The certificates or notes must be payable 
 24.25  in not more than five years and must be issued on the terms and 
 24.26  in the manner determined by the board, except that certificates 
 24.27  or notes issued to prepay special assessments must be payable in 
 24.28  not more than 20 years.  The certificates or notes may be issued 
 24.29  by resolution and without the requirement for an election.  The 
 24.30  certificates or notes are general obligation bonds for purposes 
 24.31  of section 126C.55.  A tax levy must be made for the payment of 
 24.32  the principal and interest on the certificates or notes, in 
 24.33  accordance with section 475.61, as in the case of bonds.  The 
 24.34  sum of the tax levies under this section and section 123B.62 for 
 24.35  each year must not exceed the lesser of the amount of the 
 24.36  district's total operating capital revenue or the sum of the 
 25.1   district's levy in the general and community service funds 
 25.2   excluding the adjustments under this section for the year 
 25.3   preceding the year the initial debt service levies are 
 25.4   certified.  The district's general education fund levy for each 
 25.5   year must be reduced by the sum of (1) the amount of the tax 
 25.6   levies for debt service certified for each year for payment of 
 25.7   the principal and interest on the certificates or notes issued 
 25.8   under this section as required by section 475.61, (2) the amount 
 25.9   of the tax levies for debt service certified for each year for 
 25.10  payment of the principal and interest on bonds issued under 
 25.11  section 123B.62, and (2) (3) any excess amount in the debt 
 25.12  redemption fund used to retire bonds, certificates, or notes 
 25.13  issued under this section or section 123B.62 after April 1, 
 25.14  1997, other than amounts used to pay capitalized interest.  If 
 25.15  the district's general fund levy is less than the amount of the 
 25.16  reduction, the balance shall be deducted first from the 
 25.17  district's community service fund levy, and next from the 
 25.18  district's general fund or community service fund levies for the 
 25.19  following year.  A district using an excess amount in the debt 
 25.20  redemption fund to retire the certificates or notes shall report 
 25.21  the amount used for this purpose to the commissioner by July 15 
 25.22  of the following fiscal year.  A district having an outstanding 
 25.23  capital loan under section 126C.69 or an outstanding debt 
 25.24  service loan under section 126C.68 must not use an excess amount 
 25.25  in the debt redemption fund to retire the certificates or notes. 
 25.26     Sec. 3.  Minnesota Statutes 2000, section 123B.62, is 
 25.27  amended to read: 
 25.28     123B.62 [BONDS FOR CERTAIN CAPITAL FACILITIES.] 
 25.29     (a) In addition to other bonding authority, with approval 
 25.30  of the commissioner, a district may issue general obligation 
 25.31  bonds for certain capital projects under this section.  The 
 25.32  bonds must be used only to make capital improvements including: 
 25.33     (1) under section 126C.10, subdivision 14, total operating 
 25.34  capital revenue uses specified in clauses (4), (6), (7), (8), 
 25.35  (9), and (10); 
 25.36     (2) the cost of energy modifications; 
 26.1      (3) improving handicap accessibility to school buildings; 
 26.2   and 
 26.3      (4) bringing school buildings into compliance with life and 
 26.4   safety codes and fire codes.  
 26.5      (b) Before a district issues bonds under this subdivision, 
 26.6   it must publish notice of the intended projects, the amount of 
 26.7   the bond issue, and the total amount of district indebtedness.  
 26.8      (c) A bond issue tentatively authorized by the board under 
 26.9   this subdivision becomes finally authorized unless a petition 
 26.10  signed by more than 15 percent of the registered voters of the 
 26.11  district is filed with the school board within 30 days of the 
 26.12  board's adoption of a resolution stating the board's intention 
 26.13  to issue bonds.  The percentage is to be determined with 
 26.14  reference to the number of registered voters in the district on 
 26.15  the last day before the petition is filed with the board.  The 
 26.16  petition must call for a referendum on the question of whether 
 26.17  to issue the bonds for the projects under this section.  The 
 26.18  approval of 50 percent plus one of those voting on the question 
 26.19  is required to pass a referendum authorized by this section. 
 26.20     (d) The bonds must be paid off within ten years of 
 26.21  issuance.  The bonds must be issued in compliance with chapter 
 26.22  475, except as otherwise provided in this section.  A tax levy 
 26.23  must be made for the payment of principal and interest on the 
 26.24  bonds in accordance with section 475.61.  The sum of the tax 
 26.25  levies under this section and section 123B.61 for each year must 
 26.26  not exceed the amount of the district's total operating capital 
 26.27  revenue for the year the initial debt service levies are 
 26.28  certified limit specified in section 123B.61.  The district's 
 26.29  general education levy for each year must be reduced by the sum 
 26.30  of (1) the amount of the tax levies for debt service certified 
 26.31  for each year for payment of the principal and interest on the 
 26.32  bonds, and (2) any excess amount in the debt redemption fund 
 26.33  used to retire bonds issued after April 1, 1997, other than 
 26.34  amounts used to pay capitalized interest as provided in section 
 26.35  123B.61.  A district using an excess amount in the debt 
 26.36  redemption fund to retire the bonds shall report the amount used 
 27.1   for this purpose to the commissioner by July 15 of the following 
 27.2   fiscal year.  A district having an outstanding capital loan 
 27.3   under section 126C.69 or an outstanding debt service loan under 
 27.4   section 126C.68 must not use an excess amount in the debt 
 27.5   redemption fund to retire the bonds. 
 27.6      (e) Notwithstanding paragraph (d), bonds issued by a 
 27.7   district within the first five years following voter approval of 
 27.8   a combination according to section 123A.37, subdivision 2, must 
 27.9   be paid off within 20 years of issuance.  All the other 
 27.10  provisions and limitation of paragraph (d) apply. 
 27.11     Sec. 4.  Minnesota Statutes 2000, section 123B.63, is 
 27.12  amended to read: 
 27.13     123B.63 [BUILDING CONSTRUCTION DOWN PAYMENT CAPITAL PROJECT 
 27.14  REFERENDUM PROGRAM.] 
 27.15     Subdivision 1.  [CREATION OF A DOWN PAYMENT CAPITAL PROJECT 
 27.16  REFERENDUM ACCOUNT.] A district may create a down payment 
 27.17  capital project referendum account as a separate account in 
 27.18  its general fund and its building construction fund.  All 
 27.19  proceeds from the down payment capital project levy must be 
 27.20  deposited in the capital expenditure fund and transferred to 
 27.21  this account project referendum account in its general fund.  
 27.22  The portion of the proceeds to be used for building construction 
 27.23  must be transferred to the capital project referendum account in 
 27.24  its building construction fund.  Interest income attributable to 
 27.25  the down payment a capital project referendum account must be 
 27.26  credited to the that account. 
 27.27     Subd. 2.  [USES OF THE ACCOUNT.] Money in the down 
 27.28  payment capital project referendum account must be used as a 
 27.29  down payment for the future costs of acquisition and betterment 
 27.30  for a project that has been reviewed under section 123B.71 and 
 27.31  has been approved according to subdivision 3. 
 27.32     Subd. 3.  [FACILITIES DOWN PAYMENT CAPITAL PROJECT LEVY 
 27.33  REFERENDUM.] A district may levy the local tax rate approved by 
 27.34  a majority of the electors voting on the question to provide 
 27.35  funds for a down payment for an approved project.  The election 
 27.36  must take place no more than five years before the estimated 
 28.1   date of commencement of the project.  The referendum must be 
 28.2   held on a date set by the board.  A referendum for a project not 
 28.3   receiving a positive review and comment by the commissioner 
 28.4   under section 123B.71 must be approved by at least 60 percent of 
 28.5   the voters at the election.  The referendum may be called by the 
 28.6   school board and may be held: 
 28.7      (1) separately, before an election for the issuance of 
 28.8   obligations for the project under chapter 475; or 
 28.9      (2) in conjunction with an election for the issuance of 
 28.10  obligations for the project under chapter 475; or 
 28.11     (3) notwithstanding section 475.59, as a conjunctive 
 28.12  question authorizing both the down payment capital project levy 
 28.13  and the issuance of obligations for the project under chapter 
 28.14  475.  Any obligations authorized for a project may be issued 
 28.15  within five years of the date of the election. 
 28.16     The ballot must provide a general description of the 
 28.17  proposed project, state the estimated total cost of the project, 
 28.18  state whether the project has received a positive or negative 
 28.19  review and comment from the commissioner, state the maximum 
 28.20  amount of the down payment capital project levy as a percentage 
 28.21  of net tax capacity, state the amount that will be raised by 
 28.22  that local tax rate in the first year it is to be levied, and 
 28.23  state the maximum number of years that the levy authorization 
 28.24  will apply. 
 28.25     The ballot must contain a textual portion with the 
 28.26  information required in this section and a question stating 
 28.27  substantially the following: 
 28.28     "Shall the down payment capital project levy proposed by 
 28.29  the board of .......... School District No. .......... be 
 28.30  approved?" 
 28.31     If approved, the amount provided by the approved local tax 
 28.32  rate applied to the net tax capacity for the year preceding the 
 28.33  year the levy is certified may be certified for the number of 
 28.34  years approved. 
 28.35     In the event a conjunctive question proposes to authorize 
 28.36  both the down payment capital project levy and the issuance of 
 29.1   obligations for the project, appropriate language authorizing 
 29.2   the issuance of obligations must also be included in the 
 29.3   question.  
 29.4      The district must notify the commissioner of the results of 
 29.5   the referendum. 
 29.6      Subd. 4.  [EXCESS BUILDING CONSTRUCTION FUND LEVY 
 29.7   PROCEEDS.] Any funds remaining in the down payment capital 
 29.8   project referendum account that are not applied to the payment 
 29.9   of the costs of the approved project before its final completion 
 29.10  must be transferred to the district's debt redemption fund.  
 29.11     Sec. 5.  Minnesota Statutes 2000, section 126C.63, 
 29.12  subdivision 5, is amended to read: 
 29.13     Subd. 5.  [LEVY.] "Levy" means a district's net debt 
 29.14  service levy after the reduction of debt service equalization 
 29.15  aid under section 123B.53, subdivision 6.  For taxes payable in 
 29.16  1994 2003 and later, each district's maximum effort debt service 
 29.17  levy for purposes of subdivision 8, must be reduced by an equal 
 29.18  number of percentage points if the commissioner of finance 
 29.19  determines that the levy reduction will not result in 
 29.20  a statewide property tax payment from the general fund in the 
 29.21  state treasury according to section 16A.641 as would be required 
 29.22  under Minnesota Statutes 1992, section 124.46 126C.72, 
 29.23  subdivision 3.  A district's levy that is adjusted under this 
 29.24  section must not be reduced below 22.3 30.1 percent of the 
 29.25  district's adjusted net tax capacity. 
 29.26     Sec. 6.  Minnesota Statutes 2001 Supplement, section 
 29.27  126C.63, subdivision 8, is amended to read: 
 29.28     Subd. 8.  [MAXIMUM EFFORT DEBT SERVICE LEVY.] "Maximum 
 29.29  effort debt service levy" means the lesser of: 
 29.30     (1) a levy in whichever of the following amounts is 
 29.31  applicable: 
 29.32     (a) (i) in any district receiving a debt service loan for a 
 29.33  debt service levy payable in 2002 and thereafter, or granted a 
 29.34  capital loan after January 1, 2001 2002, a levy in total dollar 
 29.35  amount computed at a rate of 30 40 percent of adjusted net tax 
 29.36  capacity for taxes payable in 2002 and thereafter; 
 30.1      (b) (ii) in any district receiving a debt service loan for 
 30.2   a debt service levy payable in 1991 and thereafter 2001 or 
 30.3   earlier, or granted a capital loan after January 1, 1990 before 
 30.4   January 2, 2002, a levy in a total dollar amount computed at a 
 30.5   rate of 24 32 percent of adjusted net tax capacity for taxes 
 30.6   payable in 1991 2002 and thereafter; 
 30.7      (c) in any district granted a debt service loan after July 
 30.8   31, 1981, or granted a capital loan which is approved after July 
 30.9   31, 1981, a levy in a total dollar amount computed as a tax rate 
 30.10  of 21.92 percent on the adjusted net tax capacity for taxes 
 30.11  payable in 1991 and thereafter; or 
 30.12     (2) a levy in any district for which a capital loan was 
 30.13  approved prior to August 1, 1981, a levy in a total dollar 
 30.14  amount equal to the sum of the amount of the required debt 
 30.15  service levy and an amount which when levied annually will in 
 30.16  the opinion of the commissioner be sufficient to retire the 
 30.17  remaining interest and principal on any outstanding loans from 
 30.18  the state within 30 years of the original date when the capital 
 30.19  loan was granted.  
 30.20     The board in any district affected by the provisions of 
 30.21  clause (2) may elect instead to determine the amount of its levy 
 30.22  according to the provisions of clause (1).  If a district's 
 30.23  capital loan is not paid within 30 years because it elects to 
 30.24  determine the amount of its levy according to the provisions of 
 30.25  clause (2), the liability of the district for the amount of the 
 30.26  difference between the amount it levied under clause (2) and the 
 30.27  amount it would have levied under clause (1), and for interest 
 30.28  on the amount of that difference, must not be satisfied and 
 30.29  discharged pursuant to Minnesota Statutes 1988, or an earlier 
 30.30  edition of Minnesota Statutes if applicable, section 124.43, 
 30.31  subdivision 4. 
 30.32     Sec. 7.  Minnesota Statutes 2001 Supplement, section 
 30.33  126C.69, subdivision 2, is amended to read: 
 30.34     Subd. 2.  [CAPITAL LOANS ELIGIBILITY.] Beginning July 1, 
 30.35  1999, a district is not eligible for a capital loan unless the 
 30.36  district's estimated net debt tax rate as computed by the 
 31.1   commissioner after debt service equalization aid would be more 
 31.2   than 30 40 percent of adjusted net tax capacity.  The estimate 
 31.3   must assume a 20-year maturity schedule for new debt. 
 31.4      Sec. 8.  Minnesota Statutes 2001 Supplement, section 
 31.5   126C.69, subdivision 9, is amended to read: 
 31.6      Subd. 9.  [LOAN AMOUNT LIMITS.] (a) A loan must not be 
 31.7   recommended for approval for a district exceeding an amount 
 31.8   computed as follows: 
 31.9      (1) the amount requested by the district under subdivision 
 31.10  6; 
 31.11     (2) plus the aggregate principal amount of general 
 31.12  obligation bonds of the district outstanding on June 30 of the 
 31.13  year following the year the application was received, not 
 31.14  exceeding the limitation on net debt of the district in section 
 31.15  475.53, subdivision 4, or 450 607 percent of its adjusted net 
 31.16  tax capacity as most recently determined, whichever is less; 
 31.17     (3) less the maximum net debt permissible for the district 
 31.18  on December 1 of the year the application is received, under the 
 31.19  limitation in section 475.53, subdivision 4, or 450 607 percent 
 31.20  of its adjusted net tax capacity as most recently determined, 
 31.21  whichever is less; 
 31.22     (4) less any amount by which the amount voted exceeds the 
 31.23  total cost of the facilities for which the loan is granted.  
 31.24     (b) The loan may be approved in an amount computed as 
 31.25  provided in paragraph (a), clauses (1) to (3), subject to later 
 31.26  reduction according to paragraph (a), clause (4). 
 31.27     Sec. 9.  Minnesota Statutes 2000, section 475.61, 
 31.28  subdivision 1, is amended to read: 
 31.29     Subdivision 1.  [DEBT SERVICE RESOLUTION.] The governing 
 31.30  body of any municipality issuing general obligations shall, 
 31.31  prior to delivery of the obligations, levy by resolution a 
 31.32  direct general ad valorem tax upon all taxable property in the 
 31.33  municipality to be spread upon the tax rolls for each year of 
 31.34  the term of the obligations.  The tax levies for all years for 
 31.35  municipalities other than school districts shall be specified 
 31.36  and such that if collected in full they, together with estimated 
 32.1   collections of special assessments and other revenues pledged 
 32.2   for the payment of said obligations, will produce at least five 
 32.3   percent in excess of the amount needed to meet when due the 
 32.4   principal and interest payments on the obligations.  The tax 
 32.5   levies for school districts shall be specified and such that if 
 32.6   collected in full they, together with estimated collection of 
 32.7   other revenues pledged for the payment of the obligations, will 
 32.8   produce between five and six percent in excess of the amount 
 32.9   needed to meet when due the principal and interest payments on 
 32.10  the obligations, rounded up to the nearest dollar; except that, 
 32.11  with the permission of the commissioner of children, families, 
 32.12  and learning, a school board may specify a tax levy in a higher 
 32.13  amount if necessary either to meet an anticipated tax 
 32.14  delinquency or for cash flow needs to meet the required payments 
 32.15  from the debt redemption fund.  Such resolution shall 
 32.16  irrevocably appropriate the taxes so levied and any special 
 32.17  assessments or other revenues so pledged to the municipality's 
 32.18  debt service fund or a special debt service fund or account 
 32.19  created for the payment of one or more issues of obligations.  
 32.20  The governing body may, in its discretion, at any time after the 
 32.21  obligations have been authorized, adopt a resolution levying 
 32.22  only a portion of such taxes, to be filed, assessed, extended, 
 32.23  collected, and remitted as hereinafter provided, and the amount 
 32.24  or amounts therein levied shall be credited against the tax 
 32.25  required to be levied prior to delivery of the obligations. 
 32.26                             ARTICLE 5
 32.27                    NUTRITION AND OTHER PROGRAMS 
 32.28     Section 1.  Minnesota Statutes 2001 Supplement, section 
 32.29  13.32, subdivision 3, is amended to read: 
 32.30     Subd. 3.  [PRIVATE DATA; WHEN DISCLOSURE IS PERMITTED.] 
 32.31  Except as provided in subdivision 5, educational data is private 
 32.32  data on individuals and shall not be disclosed except as follows:
 32.33     (a) Pursuant to section 13.05; 
 32.34     (b) Pursuant to a valid court order; 
 32.35     (c) Pursuant to a statute specifically authorizing access 
 32.36  to the private data; 
 33.1      (d) To disclose information in health and safety 
 33.2   emergencies pursuant to the provisions of United States Code, 
 33.3   title 20, section 1232g(b)(1)(I) and Code of Federal 
 33.4   Regulations, title 34, section 99.36; 
 33.5      (e) Pursuant to the provisions of United States Code, title 
 33.6   20, sections 1232g(b)(1), (b)(4)(A), (b)(4)(B), (b)(1)(B), 
 33.7   (b)(3) and Code of Federal Regulations, title 34, sections 
 33.8   99.31, 99.32, 99.33, 99.34, and 99.35; 
 33.9      (f) To appropriate health authorities to the extent 
 33.10  necessary to administer immunization programs and for bona fide 
 33.11  epidemiologic investigations which the commissioner of health 
 33.12  determines are necessary to prevent disease or disability to 
 33.13  individuals in the public educational agency or institution in 
 33.14  which the investigation is being conducted; 
 33.15     (g) When disclosure is required for institutions that 
 33.16  participate in a program under title IV of the Higher Education 
 33.17  Act, United States Code, title 20, chapter 1092; 
 33.18     (h) To the appropriate school district officials to the 
 33.19  extent necessary under subdivision 6, annually to indicate the 
 33.20  extent and content of remedial instruction, including the 
 33.21  results of assessment testing and academic performance at a 
 33.22  post-secondary institution during the previous academic year by 
 33.23  a student who graduated from a Minnesota school district within 
 33.24  two years before receiving the remedial instruction; 
 33.25     (i) To appropriate authorities as provided in United States 
 33.26  Code, title 20, section 1232g(b)(1)(E)(ii), if the data concern 
 33.27  the juvenile justice system and the ability of the system to 
 33.28  effectively serve, prior to adjudication, the student whose 
 33.29  records are released; provided that the authorities to whom the 
 33.30  data are released submit a written request for the data that 
 33.31  certifies that the data will not be disclosed to any other 
 33.32  person except as authorized by law without the written consent 
 33.33  of the parent of the student and the request and a record of the 
 33.34  release are maintained in the student's file; 
 33.35     (j) To volunteers who are determined to have a legitimate 
 33.36  educational interest in the data and who are conducting 
 34.1   activities and events sponsored by or endorsed by the 
 34.2   educational agency or institution for students or former 
 34.3   students; 
 34.4      (k) To provide student recruiting information, from 
 34.5   educational data held by colleges and universities, as required 
 34.6   by and subject to Code of Federal Regulations, title 32, section 
 34.7   216; 
 34.8      (l) To the juvenile justice system if information about the 
 34.9   behavior of a student who poses a risk of harm is reasonably 
 34.10  necessary to protect the health or safety of the student or 
 34.11  other individuals; 
 34.12     (m) With respect to social security numbers of students in 
 34.13  the adult basic education system, to Minnesota state colleges 
 34.14  and universities and the department of economic security for the 
 34.15  purpose and in the manner described in section 124D.52, 
 34.16  subdivision 7; or 
 34.17     (n) To the commissioner of children, families, and learning 
 34.18  for purposes of an assessment or investigation of a report of 
 34.19  alleged maltreatment of a student as mandated by section 
 34.20  626.556.  Upon request by the commissioner of children, 
 34.21  families, and learning, data that are relevant to a report of 
 34.22  maltreatment and are from charter school and school district 
 34.23  investigations of alleged maltreatment of a student must be 
 34.24  disclosed to the commissioner, including, but not limited to, 
 34.25  the following: 
 34.26     (1) information regarding the student alleged to have been 
 34.27  maltreated; 
 34.28     (2) information regarding student and employee witnesses; 
 34.29     (3) information regarding the alleged perpetrator; and 
 34.30     (4) what corrective or protective action was taken, if any, 
 34.31  by the school facility in response to a report of maltreatment 
 34.32  by an employee or agent of the school or school district. 
 34.33     (o) Data on individuals approved for free and reduced-price 
 34.34  school meals or other meal benefits based on information 
 34.35  self-reported from households may be released to the 
 34.36  commissioners of human services, health, economic security, 
 35.1   housing finance, and revenue for the purpose of verification of 
 35.2   self-reported information, as required by United States Code, 
 35.3   title 42, sections 1758 and 1766, and Code of Federal 
 35.4   Regulations, title 7, sections 210, 220, 226, and 245.  The 
 35.5   commissioners of human services, health, economic security, 
 35.6   housing finance, and revenue may report to the commissioner of 
 35.7   children, families, and learning the confirmed eligibility 
 35.8   status of individuals for meal benefits, based on household 
 35.9   income information reported to their departments, or based on 
 35.10  households' participation in programs that require household 
 35.11  income to be within guidelines that do not exceed the income 
 35.12  guidelines for meal benefits as specified in United States Code, 
 35.13  title 42, sections 1758 and 1766, and Code of Federal 
 35.14  Regulations, title 7, sections 226 and 245, and announced 
 35.15  annually by the United States Department of Agriculture.  Data 
 35.16  released to the commissioner of children, families, and learning 
 35.17  shall not report the incomes of households. 
 35.18     Data on individuals may be exchanged between the 
 35.19  commissioner of children, families, and learning and the 
 35.20  commissioners of human services, health, economic security, 
 35.21  housing finance, and revenue for the purpose of certifying 
 35.22  individuals for free and reduced-price school meals or other 
 35.23  meal benefits according to United States Code, title 42, 
 35.24  sections 1758 and 1766, and Code of Federal Regulations, title 
 35.25  7, sections 210, 220, 226, and 245, and federal waivers granted 
 35.26  by the United States Department of Agriculture.  Data released 
 35.27  from the commissioners of human services, health, economic 
 35.28  security, housing finance, and revenue to the commissioner of 
 35.29  children, families, and learning shall be limited to 
 35.30  confirmation of individuals' eligibility for meal benefits based 
 35.31  on income information reported to their departments by 
 35.32  households or based on households' participation in programs 
 35.33  that require household income to be within guidelines that do 
 35.34  not exceed the income guidelines as defined in United States 
 35.35  Code, title 42, sections 1758 and 1766, and Code of Federal 
 35.36  Regulations, title 7, sections 226 and 245, and announced 
 36.1   annually by the United States Department of Agriculture.  Data 
 36.2   released to the commissioner of children, families, and learning 
 36.3   shall not report the incomes of households. 
 36.4      Sec. 2.  Minnesota Statutes 2000, section 13.41, 
 36.5   subdivision 5, is amended to read: 
 36.6      Subd. 5.  [PUBLIC DATA.] Licensing agency minutes, 
 36.7   application data on licensees except nondesignated addresses, 
 36.8   orders for hearing, findings of fact, conclusions of law and 
 36.9   specification of the final disciplinary action contained in the 
 36.10  record of the disciplinary action are classified as public, 
 36.11  pursuant to section 13.02, subdivision 15.  The entire record 
 36.12  concerning the disciplinary proceeding is public data pursuant 
 36.13  to section 13.02, subdivision 15, in those instances where there 
 36.14  is a public hearing concerning the disciplinary action.  If the 
 36.15  licensee and the licensing agency agree to resolve a complaint 
 36.16  without a hearing, the agreement and the specific reasons for 
 36.17  the agreement are public data.  The license numbers, the license 
 36.18  status, and continuing education records issued or maintained by 
 36.19  the board of peace officer standards and training are classified 
 36.20  as public data, pursuant to section 13.02, subdivision 15. 
 36.21     Sec. 3.  Minnesota Statutes 2001 Supplement, section 13.46, 
 36.22  subdivision 2, is amended to read: 
 36.23     Subd. 2.  [GENERAL.] (a) Unless the data is summary data or 
 36.24  a statute specifically provides a different classification, data 
 36.25  on individuals collected, maintained, used, or disseminated by 
 36.26  the welfare system is private data on individuals, and shall not 
 36.27  be disclosed except:  
 36.28     (1) according to section 13.05; 
 36.29     (2) according to court order; 
 36.30     (3) according to a statute specifically authorizing access 
 36.31  to the private data; 
 36.32     (4) to an agent of the welfare system, including a law 
 36.33  enforcement person, attorney, or investigator acting for it in 
 36.34  the investigation or prosecution of a criminal or civil 
 36.35  proceeding relating to the administration of a program; 
 36.36     (5) to personnel of the welfare system who require the data 
 37.1   to determine eligibility, amount of assistance, and the need to 
 37.2   provide services of additional programs to the individual; 
 37.3      (6) to administer federal funds or programs; 
 37.4      (7) between personnel of the welfare system working in the 
 37.5   same program; 
 37.6      (8) the amounts of cash public assistance and relief paid 
 37.7   to welfare recipients in this state, including their names, 
 37.8   social security numbers, income, addresses, and other data as 
 37.9   required, upon request by the department of revenue to 
 37.10  administer the property tax refund law, supplemental housing 
 37.11  allowance, early refund of refundable tax credits, and the 
 37.12  income tax.  "Refundable tax credits" means the dependent care 
 37.13  credit under section 290.067, the Minnesota working family 
 37.14  credit under section 290.0671, the property tax refund under 
 37.15  section 290A.04, and, if the required federal waiver or waivers 
 37.16  are granted, the federal earned income tax credit under section 
 37.17  32 of the Internal Revenue Code; 
 37.18     (9) between the department of human services, the 
 37.19  department of children, families, and learning, and the 
 37.20  department of economic security for the purpose of monitoring 
 37.21  the eligibility of the data subject for unemployment benefits, 
 37.22  for any employment or training program administered, supervised, 
 37.23  or certified by that agency, for the purpose of administering 
 37.24  any rehabilitation program or child care assistance program, 
 37.25  whether alone or in conjunction with the welfare system, or to 
 37.26  monitor and evaluate the Minnesota family investment program by 
 37.27  exchanging data on recipients and former recipients of food 
 37.28  stamps, cash assistance under chapter 256, 256D, 256J, or 256K, 
 37.29  child care assistance under chapter 119B, or medical programs 
 37.30  under chapter 256B, 256D, or 256L; 
 37.31     (10) to appropriate parties in connection with an emergency 
 37.32  if knowledge of the information is necessary to protect the 
 37.33  health or safety of the individual or other individuals or 
 37.34  persons; 
 37.35     (11) data maintained by residential programs as defined in 
 37.36  section 245A.02 may be disclosed to the protection and advocacy 
 38.1   system established in this state according to Part C of Public 
 38.2   Law Number 98-527 to protect the legal and human rights of 
 38.3   persons with mental retardation or other related conditions who 
 38.4   live in residential facilities for these persons if the 
 38.5   protection and advocacy system receives a complaint by or on 
 38.6   behalf of that person and the person does not have a legal 
 38.7   guardian or the state or a designee of the state is the legal 
 38.8   guardian of the person; 
 38.9      (12) to the county medical examiner or the county coroner 
 38.10  for identifying or locating relatives or friends of a deceased 
 38.11  person; 
 38.12     (13) data on a child support obligor who makes payments to 
 38.13  the public agency may be disclosed to the higher education 
 38.14  services office to the extent necessary to determine eligibility 
 38.15  under section 136A.121, subdivision 2, clause (5); 
 38.16     (14) participant social security numbers and names 
 38.17  collected by the telephone assistance program may be disclosed 
 38.18  to the department of revenue to conduct an electronic data match 
 38.19  with the property tax refund database to determine eligibility 
 38.20  under section 237.70, subdivision 4a; 
 38.21     (15) the current address of a Minnesota family investment 
 38.22  program participant may be disclosed to law enforcement officers 
 38.23  who provide the name of the participant and notify the agency 
 38.24  that: 
 38.25     (i) the participant: 
 38.26     (A) is a fugitive felon fleeing to avoid prosecution, or 
 38.27  custody or confinement after conviction, for a crime or attempt 
 38.28  to commit a crime that is a felony under the laws of the 
 38.29  jurisdiction from which the individual is fleeing; or 
 38.30     (B) is violating a condition of probation or parole imposed 
 38.31  under state or federal law; 
 38.32     (ii) the location or apprehension of the felon is within 
 38.33  the law enforcement officer's official duties; and 
 38.34     (iii)  the request is made in writing and in the proper 
 38.35  exercise of those duties; 
 38.36     (16) the current address of a recipient of general 
 39.1   assistance or general assistance medical care may be disclosed 
 39.2   to probation officers and corrections agents who are supervising 
 39.3   the recipient and to law enforcement officers who are 
 39.4   investigating the recipient in connection with a felony level 
 39.5   offense; 
 39.6      (17) information obtained from food stamp applicant or 
 39.7   recipient households may be disclosed to local, state, or 
 39.8   federal law enforcement officials, upon their written request, 
 39.9   for the purpose of investigating an alleged violation of the 
 39.10  Food Stamp Act, according to Code of Federal Regulations, title 
 39.11  7, section 272.1(c); 
 39.12     (18) the address, social security number, and, if 
 39.13  available, photograph of any member of a household receiving 
 39.14  food stamps shall be made available, on request, to a local, 
 39.15  state, or federal law enforcement officer if the officer 
 39.16  furnishes the agency with the name of the member and notifies 
 39.17  the agency that:  
 39.18     (i) the member: 
 39.19     (A) is fleeing to avoid prosecution, or custody or 
 39.20  confinement after conviction, for a crime or attempt to commit a 
 39.21  crime that is a felony in the jurisdiction the member is 
 39.22  fleeing; 
 39.23     (B) is violating a condition of probation or parole imposed 
 39.24  under state or federal law; or 
 39.25     (C) has information that is necessary for the officer to 
 39.26  conduct an official duty related to conduct described in subitem 
 39.27  (A) or (B); 
 39.28     (ii) locating or apprehending the member is within the 
 39.29  officer's official duties; and 
 39.30     (iii) the request is made in writing and in the proper 
 39.31  exercise of the officer's official duty; 
 39.32     (19) the current address of a recipient of Minnesota family 
 39.33  investment program, general assistance, general assistance 
 39.34  medical care, or food stamps may be disclosed to law enforcement 
 39.35  officers who, in writing, provide the name of the recipient and 
 39.36  notify the agency that the recipient is a person required to 
 40.1   register under section 243.166, but is not residing at the 
 40.2   address at which the recipient is registered under section 
 40.3   243.166; 
 40.4      (20) certain information regarding child support obligors 
 40.5   who are in arrears may be made public according to section 
 40.6   518.575; 
 40.7      (21) data on child support payments made by a child support 
 40.8   obligor and data on the distribution of those payments excluding 
 40.9   identifying information on obligees may be disclosed to all 
 40.10  obligees to whom the obligor owes support, and data on the 
 40.11  enforcement actions undertaken by the public authority, the 
 40.12  status of those actions, and data on the income of the obligor 
 40.13  or obligee may be disclosed to the other party; 
 40.14     (22) data in the work reporting system may be disclosed 
 40.15  under section 256.998, subdivision 7; 
 40.16     (23) to the department of children, families, and learning 
 40.17  for the purpose of matching department of children, families, 
 40.18  and learning student data with public assistance data to 
 40.19  determine students eligible for free and reduced price meals, 
 40.20  meal supplements, and free milk according to United States Code, 
 40.21  title 42, sections 1758, 1761, 1766, 1766a, 1772, and 1773; to 
 40.22  allocate federal and state funds that are distributed based on 
 40.23  income of the student's family; and to verify receipt of energy 
 40.24  assistance for the telephone assistance plan; 
 40.25     (24) the current address and telephone number of program 
 40.26  recipients and emergency contacts may be released to the 
 40.27  commissioner of health or a local board of health as defined in 
 40.28  section 145A.02, subdivision 2, when the commissioner or local 
 40.29  board of health has reason to believe that a program recipient 
 40.30  is a disease case, carrier, suspect case, or at risk of illness, 
 40.31  and the data are necessary to locate the person; 
 40.32     (25) to other state agencies, statewide systems, and 
 40.33  political subdivisions of this state, including the attorney 
 40.34  general, and agencies of other states, interstate information 
 40.35  networks, federal agencies, and other entities as required by 
 40.36  federal regulation or law for the administration of the child 
 41.1   support enforcement program; 
 41.2      (26) to personnel of public assistance programs as defined 
 41.3   in section 256.741, for access to the child support system 
 41.4   database for the purpose of administration, including monitoring 
 41.5   and evaluation of those public assistance programs; 
 41.6      (27) to monitor and evaluate the Minnesota family 
 41.7   investment program by exchanging data between the departments of 
 41.8   human services and children, families, and learning, on 
 41.9   recipients and former recipients of food stamps, cash assistance 
 41.10  under chapter 256, 256D, 256J, or 256K, child care assistance 
 41.11  under chapter 119B, or medical programs under chapter 256B, 
 41.12  256D, or 256L; 
 41.13     (28) to evaluate child support program performance and to 
 41.14  identify and prevent fraud in the child support program by 
 41.15  exchanging data between the department of human services, 
 41.16  department of revenue under section 270B.14, subdivision 1, 
 41.17  paragraphs (a) and (b), without regard to the limitation of use 
 41.18  in paragraph (c), department of health, department of economic 
 41.19  security, and other state agencies as is reasonably necessary to 
 41.20  perform these functions; or 
 41.21     (29) counties operating child care assistance programs 
 41.22  under chapter 119B may disseminate data on program participants, 
 41.23  applicants, and providers to the commissioner of children, 
 41.24  families, and learning.  
 41.25     (b) Information on persons who have been treated for drug 
 41.26  or alcohol abuse may only be disclosed according to the 
 41.27  requirements of Code of Federal Regulations, title 42, sections 
 41.28  2.1 to 2.67. 
 41.29     (c) Data provided to law enforcement agencies under 
 41.30  paragraph (a), clause (15), (16), (17), or (18), or paragraph 
 41.31  (b), are investigative data and are confidential or protected 
 41.32  nonpublic while the investigation is active.  The data are 
 41.33  private after the investigation becomes inactive under section 
 41.34  13.82, subdivision 5, paragraph (a) or (b). 
 41.35     (d) Mental health data shall be treated as provided in 
 41.36  subdivisions 7, 8, and 9, but is not subject to the access 
 42.1   provisions of subdivision 10, paragraph (b). 
 42.2      For the purposes of this subdivision, a request will be 
 42.3   deemed to be made in writing if made through a computer 
 42.4   interface system. 
 42.5      Sec. 4.  Minnesota Statutes 2000, section 123B.49, 
 42.6   subdivision 3, is amended to read: 
 42.7      Subd. 3.  [COCURRICULAR ACTIVITIES.] Cocurricular 
 42.8   activities means school sponsored and directed activities 
 42.9   designed to provide opportunities for pupils to participate, on 
 42.10  an individual or group basis, in school and public events for 
 42.11  the improvement of skills.  Cocurricular activities are not 
 42.12  offered for school credit, cannot or can be counted toward 
 42.13  graduation and have one or more of the following characteristics:
 42.14     (a) (1) they are conducted at regular and uniform times 
 42.15  during school hours, or at times established by school 
 42.16  authorities; 
 42.17     (b) Although not offered for credit, (2) they are directed 
 42.18  or supervised by instructional staff in a learning environment 
 42.19  similar to that found in courses offered for credit and can be 
 42.20  offered for credit or counted toward a graduation requirement; 
 42.21     (c) (3) they are partially funded by public moneys for 
 42.22  general instructional purposes under direction and control of 
 42.23  the board. 
 42.24     Sec. 5.  Minnesota Statutes 2000, section 123B.49, 
 42.25  subdivision 4, is amended to read: 
 42.26     Subd. 4.  [BOARD CONTROL OF EXTRACURRICULAR ACTIVITIES.] 
 42.27  (a) The board may take charge of and control all extracurricular 
 42.28  activities of the teachers and children of the public schools in 
 42.29  the district.  Extracurricular activities means all direct and 
 42.30  personal services for pupils for their enjoyment that are 
 42.31  managed and operated under the guidance of an adult or staff 
 42.32  member.  The board shall allow all resident pupils receiving 
 42.33  instruction in a home school as defined in section 123B.36, 
 42.34  subdivision 1, paragraph (a), to be eligible to fully 
 42.35  participate in extracurricular activities on the same basis as 
 42.36  public school students. 
 43.1      (b) Extracurricular activities have all of the following 
 43.2   characteristics: 
 43.3      (1) they are not offered for school credit nor required for 
 43.4   graduation; 
 43.5      (2) they are generally conducted outside school hours, or 
 43.6   if partly during school hours, at times agreed by the 
 43.7   participants, and approved by school authorities; 
 43.8      (3) the content of the activities is determined primarily 
 43.9   by the pupil participants under the guidance of a staff member 
 43.10  or other adult. 
 43.11     (c) If the board does not take charge of and control 
 43.12  extracurricular activities, these activities shall be 
 43.13  self-sustaining with all expenses, except direct salary costs 
 43.14  and indirect costs of the use of school facilities, met by dues, 
 43.15  admissions, or other student fundraising events.  The general 
 43.16  fund must reflect only those salaries directly related to and 
 43.17  readily identified with the activity and paid by public funds.  
 43.18  Other revenues and expenditures for extra curricular activities 
 43.19  must be recorded according to the "Manual of Instruction for 
 43.20  Uniform Student Activities Accounting for Minnesota School 
 43.21  Districts and Area Vocational-Technical Colleges Manual for 
 43.22  Activity Fund Accounting."  Extracurricular activities not under 
 43.23  board control must have an annual financial audit and must also 
 43.24  be audited annually for compliance with this section. 
 43.25     (d) If the board takes charge of and controls 
 43.26  extracurricular activities, any or all costs of these activities 
 43.27  may be provided from school revenues and all revenues and 
 43.28  expenditures for these activities shall be recorded in the same 
 43.29  manner as other revenues and expenditures of the district.  
 43.30     (e) If the board takes charge of and controls 
 43.31  extracurricular activities, the teachers or pupils in the 
 43.32  district must not participate in such activity, nor shall the 
 43.33  school name or any allied name be used in connection therewith, 
 43.34  except by consent and direction of the board. 
 43.35     Sec. 6.  Minnesota Statutes 2000, section 123B.83, 
 43.36  subdivision 4, is amended to read: 
 44.1      Subd. 4.  [SPECIAL OPERATING PLAN.] (a) If the net negative 
 44.2   unreserved general fund balance, calculated in accordance with 
 44.3   the uniform financial accounting and reporting standards for 
 44.4   Minnesota school districts, as of June 30 each year, is more 
 44.5   than a negative 2-1/2 percent of the year's expenditure amount, 
 44.6   the district must, prior to January 31 of the next fiscal year, 
 44.7   submit a special operating plan to reduce the district's deficit 
 44.8   expenditures to the commissioner for approval.  The commissioner 
 44.9   may also require the district to provide evidence that the 
 44.10  district meets and will continue to meet all high school 
 44.11  graduation requirements. 
 44.12     Notwithstanding any other law to the contrary, a district 
 44.13  submitting a special operating plan to the commissioner under 
 44.14  this clause which is disapproved by the commissioner must not 
 44.15  receive any aid pursuant to chapters 120B, 122A, 123A, 123B, 
 44.16  124D, 125A, 126C, and 127A until a special operating plan of the 
 44.17  district is so approved. 
 44.18     (b) A district must receive aids pending the approval of 
 44.19  its special operating plan under paragraph (a).  A district 
 44.20  which complies with its approved operating plan must receive 
 44.21  aids as long as the district continues to comply with the 
 44.22  approved operating plan. 
 44.23     Sec. 7.  Minnesota Statutes 2000, section 124D.118, is 
 44.24  amended to read: 
 44.25     124D.118 [SCHOOL MILK PROGRAM.] 
 44.26     Subdivision 1.  [LEGISLATIVE FINDINGS ESTABLISHMENT.] The 
 44.27  legislature finds that for best health and well-being, school 
 44.28  children in the state should receive at least one serving of 
 44.29  milk each day.  The school milk program established in this 
 44.30  section is to provide districts public and nonpublic schools in 
 44.31  the state with added resources so that all kindergarten students 
 44.32  in public and nonpublic schools may have access to wholesome 
 44.33  milk on a daily basis. 
 44.34     Subd. 2.  [ESTABLISHMENT; SCHOOL PARTICIPATION.] Each 
 44.35  district in the state is encouraged to participate in the 
 44.36  state-supported school milk program for kindergartners.  
 45.1   Participating districts schools must provide offer one serving 
 45.2   of milk on each per school day to each kindergarten 
 45.3   student attending a public or nonpublic school in the district.  
 45.4   No student is required to accept the milk that is provided by 
 45.5   the district.  The program must be promoted and operated under 
 45.6   the direction of the commissioner or the commissioner's designee.
 45.7      Subd. 3.  [PROGRAM GUIDELINES; DUTIES OF THE COMMISSIONER.] 
 45.8   (a) The commissioner shall: 
 45.9      (1) encourage all districts to participate in the school 
 45.10  milk program for kindergartners; 
 45.11     (2) prepare program guidelines, not subject to chapter 14 
 45.12  until July 1, 1998, which will effectively and efficiently 
 45.13  distribute appropriated and donated money to participating 
 45.14  districts; and 
 45.15     (3) seek donations and matching funds from appropriate 
 45.16  private and public sources schools. 
 45.17     (b) Program guidelines may shall provide for disbursement 
 45.18  to districts schools through a mechanism of prepayments or by 
 45.19  reimbursement for approved program expenses. 
 45.20     Subd. 4.  [REIMBURSEMENT.] In accordance with program 
 45.21  guidelines, the commissioner shall prepay or reimburse 
 45.22  participating districts schools for the state share of the 
 45.23  district's school's cost for providing milk to kindergarten 
 45.24  students. 
 45.25     Sec. 8.  Minnesota Statutes 2000, section 126C.01, is 
 45.26  amended by adding a subdivision to read: 
 45.27     Subd. 5a.  [NET UNRESERVED GENERAL FUND BALANCE.] "Net 
 45.28  unreserved general fund balance" means the unreserved or 
 45.29  undesignated balance and encumbrances in the general fund. 
 45.30     Sec. 9.  [STUDY COMMISSION ON SCHOOL DISTRICT 
 45.31  ORGANIZATION.] 
 45.32     Subdivision 1.  [ESTABLISHMENT.] The commissioner of 
 45.33  children, families, and learning shall convene a commission on 
 45.34  school district organization to study and make recommendations 
 45.35  for a governance structure for Kindergarten through grade 12 
 45.36  school districts that would: 
 46.1      (1) best provide administrative efficiency and 
 46.2   effectiveness; 
 46.3      (2) maximize opportunities, program offerings, and learning 
 46.4   support for students; and 
 46.5      (3) support parental involvement at school sites. 
 46.6      The commission shall consider as one option the impact of 
 46.7   an alignment of school district boundaries with county 
 46.8   boundaries. 
 46.9      Subd. 2.  [MEMBERSHIP; STAFFING.] (a) The study commission 
 46.10  on school district organization must include one representative 
 46.11  from each of the following organizations:  the Minnesota School 
 46.12  Boards Association; Education Minnesota; the Minnesota 
 46.13  Association of School Administrators; the Minnesota Association 
 46.14  of Secondary School Principals; the Minnesota Elementary 
 46.15  Principals Association; the Minnesota Association for Pupil 
 46.16  Transportation; the Minnesota Congress of Parents, Teachers, and 
 46.17  Students; Minnesota Administrators of Special Education; 
 46.18  Minnesota Association for School Business Officials; Minnesota 
 46.19  Community Education Association; Minnesota Rural Education 
 46.20  Association; Schools for Equity in Education; the Minnesota 
 46.21  American Indian Committee; the Association of Minnesota 
 46.22  Counties; the metropolitan council; the Minnesota Business 
 46.23  Partnership; the Minnesota Chamber of Commerce; and six public 
 46.24  members appointed by the commissioner. 
 46.25     (b) The commissioner shall make staff available to assist 
 46.26  the task force. 
 46.27     Subd. 3.  [REPORT.] (a) The study commission must report to 
 46.28  the governor and the appropriate committees of the house and 
 46.29  senate no later than January 1, 2003. 
 46.30     (b) The study commission must include in its report 
 46.31  recommendations and findings on the following: 
 46.32     (1) school district administrative structures that best 
 46.33  provide administrative efficiency and effectiveness; 
 46.34     (2) the impact of an alignment of school district 
 46.35  boundaries with county boundaries; 
 46.36     (3) students' assignment and attendance options; 
 47.1      (4) ways for effective parent and citizen participation 
 47.2   with the schools and the school districts; 
 47.3      (5) governance policies to enhance programmatic, budgetary, 
 47.4   and staffing decisions by parents and staff at learning sites; 
 47.5      (6) ways to coordinate services for students and families 
 47.6   with other agencies and political subdivisions; 
 47.7      (7) how to adjust operating referendum and debt service 
 47.8   levies; 
 47.9      (8) the process for establishing an elected governing board 
 47.10  and the timely transfer of duties and responsibilities; 
 47.11     (9) the transition and compensation of staff including 
 47.12  negotiations of contracts; 
 47.13     (10) the process to transfer and establish subsequent 
 47.14  ownership of assets; 
 47.15     (11) a suggested timeline for implementation of its 
 47.16  recommendations; and 
 47.17     (12) other appropriate recommendations. 
 47.18     Sec. 10.  [REPEALER.] 
 47.19     Minnesota Statutes 2000, section 126C.01, subdivision 11, 
 47.20  is repealed.