1st Engrossment - 82nd Legislature, 2001 1st Special Session (2001 - 2002) Posted on 12/15/2009 12:00am
1.1 A bill for an act 1.2 relating to education; providing for kindergarten 1.3 through grade 12 education including general education 1.4 revenue; education excellence; special programs; 1.5 facilities and technology; nutrition, school 1.6 accounting, and other programs; deficiencies; state 1.7 agencies; and technical amendments; appropriating 1.8 money; amending Minnesota Statutes 2000, sections 1.9 16B.616, subdivision 4; 93.22; 120B.07; 120B.13, 1.10 subdivision 1; 120B.30, subdivision 1; 120B.35; 1.11 121A.41, subdivision 10; 121A.582; 122A.162; 122A.163; 1.12 122A.18, subdivisions 1, 2, 4; 122A.20, subdivision 2; 1.13 122A.21; 122A.24, subdivision 3; 122A.25, by adding a 1.14 subdivision; 122A.26, subdivision 3; 122A.31; 122A.40, 1.15 subdivision 7, by adding a subdivision; 122A.41, 1.16 subdivisions 4, 7, 13, by adding subdivisions; 1.17 122A.61, subdivision 1; 123B.03, subdivision 3; 1.18 123B.143, subdivision 1; 123B.36, subdivision 1; 1.19 123B.37, subdivision 1; 123B.42, subdivision 3; 1.20 123B.44, subdivision 6; 123B.54; 123B.57, subdivisions 1.21 3, 6, 8; 123B.59, subdivision 1; 123B.71, subdivisions 1.22 1, 4, 8, 9; 123B.75, subdivision 5, by adding a 1.23 subdivision; 123B.80, subdivision 1; 123B.88, 1.24 subdivision 1; 124D.03, subdivision 4; 124D.10, 1.25 subdivisions 4, 8, 15, by adding subdivisions; 1.26 124D.11, subdivisions 4, 5, 9; 124D.128, subdivisions 1.27 1, 2, 3, 6, by adding a subdivision; 124D.454, 1.28 subdivision 11; 124D.59, subdivision 2; 124D.65, 1.29 subdivision 5; 124D.69, subdivision 1; 124D.74, 1.30 subdivisions 1, 2, 3, 4, 6; 124D.75, subdivision 6; 1.31 124D.76; 124D.78, subdivision 1; 124D.81, subdivisions 1.32 1, 3, 5, 6, 7; 124D.84, subdivision 1; 124D.86, 1.33 subdivision 3; 124D.892, subdivisions 1, 3, as 1.34 amended; 124D.894; 125A.023, subdivision 4; 125A.027, 1.35 by adding a subdivision; 125A.08; 125A.09, subdivision 1.36 3; 125A.11, subdivision 3; 125A.17; 125A.27, 1.37 subdivision 15; 125A.515; 125A.76, subdivisions 1, 2; 1.38 125B.21; 125B.25, subdivisions 1, 2, 6; 126C.05, 1.39 subdivisions 1, 15, by adding a subdivision; 126C.10, 1.40 subdivisions 1, 2, 4, 9, 13, 24, 25; 126C.12, 1.41 subdivisions 2, 3, 4, 5, by adding a subdivision; 1.42 126C.15, subdivisions 1, 2, 5; 126C.17, subdivisions 1.43 6, 9, 10, 11; 126C.23, subdivision 5; 126C.40, 1.44 subdivision 1; 126C.41, subdivisions 2, 3; 126C.43, 1.45 subdivision 3; 126C.63, subdivision 8; 126C.69, 1.46 subdivisions 2, 9; 127A.41, subdivisions 5, 8, 9; 2.1 127A.42; 127A.45, subdivisions 9, 11, 12, by adding a 2.2 subdivision; 127A.50, subdivision 2; 127A.51; 129C.10, 2.3 subdivision 3; 171.02, subdivision 2a; 179A.20, by 2.4 adding a subdivision; 260A.01; 260C.163, subdivision 2.5 11; 475.61, subdivision 3; 626.556, subdivision 2; 2.6 Laws 1992, chapter 499, article 7, section 31, as 2.7 amended; Laws 2000, chapter 489, article 2, section 2.8 34; Laws 2000, chapter 489, article 2, section 36; 2.9 Laws 2000, chapter 489, article 2, section 37, 2.10 subdivision 3; Laws 2000, chapter 489, article 2, 2.11 section 39, subdivision 2; Laws 2000, chapter 489, 2.12 article 3, section 24; Laws 2000, chapter 489, article 2.13 3, section 25, subdivision 5; Laws 2000, chapter 489, 2.14 article 5, section 21; Laws 2000, chapter 489, article 2.15 7, section 15, subdivision 3; proposing coding for new 2.16 law in Minnesota Statutes, chapters 93; 120A; 120B; 2.17 122A; 124D; 126C; repealing Minnesota Statutes 2000, 2.18 sections 123B.71, subdivisions 3, 10; 124D.07; 2.19 124D.1155; 124D.128, subdivision 7; 124D.32; 124D.85; 2.20 126C.01, subdivision 10; 126C.10, subdivisions 12, 23; 2.21 126C.16, subdivision 2; 126C.17, subdivision 12; 2.22 126C.18; 126C.22; 126C.30; 126C.31; 126C.32; 126C.33; 2.23 126C.34; 126C.35; 126C.36; 126C.42, subdivisions 2, 3; 2.24 126C.47; 127A.44; 135A.081; Laws 2000, chapter 254, 2.25 section 30; Laws 2000, chapter 489, article 1, section 2.26 18; Minnesota Rules, part 3501.0280, subpart 3. 2.27 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 2.28 ARTICLE 1 2.29 GENERAL EDUCATION REVENUE 2.30 Section 1. Minnesota Statutes 2000, section 93.22, is 2.31 amended to read: 2.32 93.22 [DISPOSITION OF PAYMENTS.] 2.33 Subdivision 1. [GENERALLY.]
(a)All payments under 2.34 sections 93.14 to 93.285 shall be made to the department of 2.35 natural resources and shall be credited as follows:according to 2.36 this section. 2.37 (1)(a) If the lands or minerals and mineral rights covered 2.38 by a lease are held by the state by virtue of an act of 2.39 Congress, payments made under the lease shall be credited to the 2.40 permanent fund of the class of land to which the leased premises 2.41 belong ;. 2.42 (2)(b) If a lease covers the bed of navigable waters, 2.43 payments made under the lease shall be credited to the permanent 2.44 school fund of the state ; and. 2.45 (3)(c) If the lands or minerals and mineral rights covered 2.46 by a lease are held by the state in trust for the taxing 2.47 districts, payments made under the lease shall be distributed 2.48 annually on the first day of September as follows: 3.1 (i)(1) 20 percent to the general fund; and 3.2 (ii)(2) 80 percent to the respective counties in which the 3.3 lands lie, to be apportioned among the taxing districts 3.4 interested therein as follows: county, three-ninths; town or 3.5 city, two-ninths; and school district, four-ninths. 3.6 (b)(d) Except as provided under paragraph (a)this section 3.7 and except where the disposition of payments may be otherwise 3.8 directed by law, all payments shall be paid into the general 3.9 fund of the state. 3.10 Subd. 2. [TACONITE LEASE REVENUE.] Notwithstanding 3.11 subdivision 1, from July 1, 2001, to June 30, 2006, payments 3.12 made under state taconite leases shall be distributed as follows: 3.13 (1) if the lands or minerals and mineral rights covered by 3.14 a lease are held by the state by virtue of a school, swamp, or 3.15 internal improvement land grant of Congress, payments made under 3.16 the lease shall be distributed annually on September 1 to the 3.17 school fund mineral lease suspense account created under section 3.18 93.223, subdivision 1; and 3.19 (2) if the lands or minerals and mineral rights covered by 3.20 a lease are held by the state by virtue of a university land 3.21 grant of Congress, payments made under the lease shall be 3.22 distributed annually on September 1 to the university mineral 3.23 lease suspense account created under section 93.223, subdivision 3.24 2. 3.25 Sec. 2. [93.223] [MINERAL LEASE SUSPENSE ACCOUNTS.] 3.26 Subdivision 1. [SCHOOL FUND MINERAL LEASE SUSPENSE 3.27 ACCOUNT.] The school fund mineral lease suspense account is 3.28 created as an account in the state treasury for mineral lease 3.29 money deposited according to section 93.22, subdivision 2, 3.30 clause (1). Interest earned on money in the account accrues to 3.31 the account. After money is annually deposited in the account 3.32 under section 93.22, subdivision 2, clause (1), the commissioner 3.33 of finance shall certify 20 percent of the payments made during 3.34 the preceding fiscal year as costs for the administration and 3.35 management of mineral leases on permanent school fund lands. 3.36 The commissioner of finance shall transfer the certified amount 4.1 from the school fund mineral lease suspense account to the 4.2 general fund. The balance remaining in the account after the 4.3 certification is annually transferred to the permanent school 4.4 fund. 4.5 Subd. 2. [UNIVERSITY FUND MINERAL LEASE SUSPENSE ACCOUNT.] 4.6 The university fund mineral lease suspense account is created as 4.7 an account in the state treasury for mineral lease money 4.8 deposited according to section 93.22, subdivision 2, clause (2). 4.9 Interest earned on money in the account accrues to the account. 4.10 After money is annually deposited in the account under section 4.11 93.22, subdivision 2, clause (2), the commissioner of finance 4.12 shall certify 20 percent of the payments made during the 4.13 preceding fiscal year as costs for the administration and 4.14 management of mineral leases on permanent university fund 4.15 lands. The commissioner of finance shall transfer the certified 4.16 amount from the university fund mineral lease account to the 4.17 general fund. The balance remaining in the account is annually 4.18 transferred to the permanent university fund. 4.19 Sec. 3. [93.2235] [TACONITE MINING GRANTS; 4.20 APPROPRIATIONS.] 4.21 Subdivision 1. [COMMISSIONER.] The commissioner shall 4.22 establish a program to award grants to taconite mining companies 4.23 for: 4.24 (1) taconite pellet product improvements; 4.25 (2) value-added production of taconite iron ore; or 4.26 (3) cost-savings production improvements at Minnesota 4.27 taconite plants. 4.28 An amount equal to the sum of money transferred to the 4.29 general fund under section 93.223, subdivision 1, is annually 4.30 appropriated from the general fund to the commissioner for the 4.31 purposes of this section. 4.32 Subd. 2. [COLERAINE LABORATORY.] The director of the 4.33 Coleraine laboratory shall establish a program to award grants 4.34 for the purpose of transferring technology from the Coleraine 4.35 laboratory to taconite mining companies for: 4.36 (1) taconite pellet product improvements; 5.1 (2) value-added production of taconite iron ore; or 5.2 (3) cost-savings production improvements at Minnesota 5.3 taconite plants. 5.4 An amount equal to the sum of money transferred to the 5.5 general fund under section 92.223, subdivision 2, is annually 5.6 appropriated from the general fund to the board of regents of 5.7 the University of Minnesota for the purposes of this section. 5.8 Sec. 4. Minnesota Statutes 2000, section 120B.07, is 5.9 amended to read: 5.10 120B.07 [EARLY GRADUATION.] 5.11 Notwithstanding any law to the contrary, any secondary 5.12 school student who has completed all required courses or 5.13 standards may, with the approval of the student, the student's 5.14 parent or guardian, and local school officials, graduate before 5.15 the completion of the school year. General education revenue 5.16 attributable to the student must be paid as though the student 5.17 was in attendance for the entire year. 5.18 Sec. 5. Minnesota Statutes 2000, section 123B.143, 5.19 subdivision 1, is amended to read: 5.20 Subdivision 1. [CONTRACT; DUTIES.] All districts 5.21 maintaining a classified secondary school must employ a 5.22 superintendent who shall be an ex officio nonvoting member of 5.23 the school board. The authority for selection and employment of 5.24 a superintendent must be vested in the board in all cases. An 5.25 individual employed by a board as a superintendent shall have an 5.26 initial employment contract for a period of time no longer than 5.27 three years from the date of employment. Any subsequent 5.28 employment contract must not exceed a period of three years. A 5.29 board, at its discretion, may or may not renew an employment 5.30 contract. A board must not, by action or inaction, extend the 5.31 duration of an existing employment contract. Beginning 365 days 5.32 prior to the expiration date of an existing employment contract, 5.33 a board may negotiate and enter into a subsequent employment 5.34 contract to take effect upon the expiration of the existing 5.35 contract. A subsequent contract must be contingent upon the 5.36 employee completing the terms of an existing contract. If a 6.1 contract between a board and a superintendent is terminated 6.2 prior to the date specified in the contract, the board may not 6.3 enter into another superintendent contract with that same 6.4 individual that has a term that extends beyond the date 6.5 specified in the terminated contract. A board may terminate a 6.6 superintendent during the term of an employment contract for any 6.7 of the grounds specified in section 122A.40, subdivision 9 or 13. 6.8 A superintendent shall not rely upon an employment contract with 6.9 a board to assert any other continuing contract rights in the 6.10 position of superintendent under section 122A.40. 6.11 Notwithstanding the provisions of sections 122A.40, subdivision 6.12 10 or 11, 123A.32, 123A.75, or any other law to the contrary, no 6.13 individual shall have a right to employment as a superintendent 6.14 based on order of employment in any district. If two or more 6.15 districts enter into an agreement for the purchase or sharing of 6.16 the services of a superintendent, the contracting districts have 6.17 the absolute right to select one of the individuals employed to 6.18 serve as superintendent in one of the contracting districts and 6.19 no individual has a right to employment as the superintendent to 6.20 provide all or part of the services based on order of employment 6.21 in a contracting district. The superintendent of a district 6.22 shall perform the following: 6.23 (1) visit and supervise the schools in the district, report 6.24 and make recommendations about their condition when advisable or 6.25 on request by the board; 6.26 (2) recommend to the board employment and dismissal of 6.27 teachers; 6.28 (3) superintend school grading practices and examinations 6.29 for promotions; 6.30 (4) make reports required by the commissioner; 6.31 (5) by January 10, submit an annual report to the 6.32 commissioner in a manner prescribed by the commissioner, in 6.33 consultation with school districts, identifying the expenditures 6.34 that the district requires to ensure an 80 percent and a 906.35 percentstudent passage rate on the basic standards test taken 6.36 in the eighth grade, identifying the highest student passage 7.1 rate the district expects it will be able to attain on the basic 7.2 standards test by grade 12, the amount of expenditures that the 7.3 district requires to ensure a 99 percentattain the targeted 7.4 student passage rate on the basic standards test by 12th grade, 7.5 and how much the district is cross-subsidizing programs with 7.6 special education, basic skills, and general education revenue; 7.7 and 7.8 (6) perform other duties prescribed by the board. 7.9 Sec. 6. Minnesota Statutes 2000, section 123B.36, 7.10 subdivision 1, is amended to read: 7.11 Subdivision 1. [SCHOOL BOARDS MAY REQUIRE FEES.] (a) For 7.12 purposes of this subdivision, "home school" means a home school 7.13 as defined in sections 120A.22 and 120A.24 with five or fewer 7.14 students receiving instruction. 7.15 (b) A school board is authorized to require payment of fees 7.16 in the following areas: 7.17 (1) in any program where the resultant product, in excess 7.18 of minimum requirements and at the pupil's option, becomes the 7.19 personal property of the pupil; 7.20 (2) admission fees or charges for extra curricular 7.21 activities, where attendance is optional and where the admission 7.22 fees or charges a student must pay to attend or participate in 7.23 an extracurricular activity is the same for all students, 7.24 regardless of whether the student is enrolled in a public or a 7.25 home school; 7.26 (3) a security deposit for the return of materials, 7.27 supplies, or equipment; 7.28 (4) personal physical education and athletic equipment and 7.29 apparel, although any pupil may personally provide it if it 7.30 meets reasonable requirements and standards relating to health 7.31 and safety established by the board; 7.32 (5) items of personal use or products that a student has an 7.33 option to purchase such as student publications, class rings, 7.34 annuals, and graduation announcements; 7.35 (6) fees specifically permitted by any other statute, 7.36 including but not limited to section 171.05, subdivision 2; 8.1 provided (i) driver education fees do not exceed the actual cost 8.2 to the school and school district of providing driver education, 8.3 and (ii) the driver education courses are open to enrollment to 8.4 persons between the ages of 15 and 18 who reside or attend 8.5 school in the school district; 8.6 (7) field trips considered supplementary to a district 8.7 educational program; 8.8 (8) any authorized voluntary student health and accident 8.9 benefit plan; 8.10 (9) for the use of musical instruments owned or rented by 8.11 the district, a reasonable rental fee not to exceed either the 8.12 rental cost to the district or the annual depreciation plus the 8.13 actual annual maintenance cost for each instrument; 8.14 (10) transportation of pupils to and from extra curricular 8.15 activities conducted at locations other than school, where 8.16 attendance is optional; 8.17 (11) transportation to and from school of pupils to and8.18 living within two miles from school for which aid for fiscal8.19 year 1996 is not authorized under Minnesota Statutes 1994,8.20 section 124.223, subdivision 1, and for which levy for fiscal8.21 year 1996 is not authorized under Minnesota Statutes 1994,8.22 section 124.226, subdivision 5,and all other transportation 8.23 services not required by law. If a district chargingcharges 8.24 fees for transportation of pupils establishes, it must establish 8.25 guidelines for that transportation to ensure that no pupil is 8.26 denied transportation solely because of inability to pay; 8.27 (12) motorcycle classroom education courses conducted 8.28 outside of regular school hours; provided the charge must not 8.29 exceed the actual cost of these courses to the school district; 8.30 (13) transportation to and from post-secondary institutions 8.31 for pupils enrolled under the post-secondary enrollment options 8.32 program under section 123B.88, subdivision 22. Fees collected 8.33 for this service must be reasonable and must be used to reduce 8.34 the cost of operating the route. Families who qualify for 8.35 mileage reimbursement under section 124D.09, subdivision 22, may 8.36 use their state mileage reimbursement to pay this fee. If no 9.1 fee is charged, districts must allocate costs based on the 9.2 number of pupils riding the route. 9.3 Sec. 7. Minnesota Statutes 2000, section 123B.37, 9.4 subdivision 1, is amended to read: 9.5 Subdivision 1. [BOARDS SHALL NOT CHARGE CERTAIN FEES.] (a) 9.6 A board is not authorized to charge fees in the following areas: 9.7 (1) textbooks, workbooks, art materials, laboratory 9.8 supplies, towels; 9.9 (2) supplies necessary for participation in any 9.10 instructional course except as authorized in sections 123B.36 9.11 and 123B.38; 9.12 (3) field trips that are required as a part of a basic 9.13 education program or course; 9.14 (4) graduation caps, gowns, any specific form of dress 9.15 necessary for any educational program, and diplomas; 9.16 (5) instructional costs for necessary school personnel 9.17 employed in any course or educational program required for 9.18 graduation; 9.19 (6) library books required to be utilized for any 9.20 educational course or program; 9.21 (7) admission fees, dues, or fees for any activity the 9.22 pupil is required to attend; 9.23 (8) any admission or examination cost for any required 9.24 educational course or program; 9.25 (9) locker rentals; 9.26 (10) transportation to and from school of pupils (i) for9.27 which state transportation aid for fiscal year 1996 is9.28 authorized pursuant to Minnesota Statutes 1994, section 124.223,9.29 or (ii) for which a levy for fiscal year 1996 is authorized9.30 under Minnesota Statutes 1994, section 124.226, subdivision9.31 5living two miles or more from school. 9.32 (b) Notwithstanding paragraph (a), clauses (1) and (6), a 9.33 board may charge fees for textbooks, workbooks, and library 9.34 books, lost or destroyed by students. The board must annually 9.35 notify parents or guardians and students about its policy to 9.36 charge a fee under this paragraph. 10.1 Sec. 8. Minnesota Statutes 2000, section 123B.42, 10.2 subdivision 3, is amended to read: 10.3 Subd. 3. [COST; LIMITATION.] (a) The cost per pupil of the 10.4 textbooks, individualized instructional or cooperative learning 10.5 materials, and standardized tests provided for in this section 10.6 for each school year must not exceed the statewide average 10.7 expenditure per pupil, adjusted pursuant to clause (b), by the 10.8 Minnesota public elementary and secondary schools for textbooks, 10.9 individualized instructional materials and standardized tests as 10.10 computed and established by the department by MarchFebruary 1 10.11 of the preceding school year from the most recent public school 10.12 year data then available. 10.13 (b) The cost computed in clause (a) shall be increased by 10.14 an inflation adjustment equal to the percent of increase in the 10.15 formula allowance, pursuant to section 126C.10, subdivision 2, 10.16 from the second preceding school year to the current school year. 10.17 (c) The commissioner shall allot to the districts or 10.18 intermediary service areas the total cost for each school year 10.19 of providing or loaning the textbooks, individualized 10.20 instructional or cooperative learning materials, and 10.21 standardized tests for the pupils in each nonpublic school. The 10.22 allotment shall not exceed the product of the statewide average 10.23 expenditure per pupil, according to clause (a), adjusted 10.24 pursuant to clause (b), multiplied by the number of nonpublic 10.25 school pupils who make requests pursuant to this section and who 10.26 are enrolled as of September 15 of the current school year. 10.27 Sec. 9. Minnesota Statutes 2000, section 123B.44, 10.28 subdivision 6, is amended to read: 10.29 Subd. 6. [COMPUTATION OF MAXIMUM ALLOTMENTS.] For purposes 10.30 of computing maximum allotments for each school year pursuant to 10.31 this section, the average public school expenditure per pupil 10.32 for health services and the average public school expenditure 10.33 per secondary pupil for guidance and counseling services shall 10.34 be computed and established by the department by MarchFebruary 10.35 1 of the preceding school year from the most recent public 10.36 school year data then available. 11.1 Sec. 10. Minnesota Statutes 2000, section 123B.75, 11.2 subdivision 5, is amended to read: 11.3 Subd. 5. [LEVY RECOGNITION.] (a) "School district tax 11.4 settlement revenue" means the current, delinquent, and 11.5 manufactured home property tax receipts collected by the county 11.6 and distributed to the school district. 11.7 (b) In June of each year2001, the school district must 11.8 recognize as revenue, in the fund for which the levy was made, 11.9 the lesser of: 11.10 (1) the sum of May, June, and July school district tax 11.11 settlement revenue received in that calendar year plus general 11.12 education aid according to section 126C.13, subdivision 4, 11.13 received in July and August of that calendar year; or 11.14 (2) the sum of: 11.15 (i) 31 percent of the referendum levy certified in the 11.16 prior calendar year according to section 126C.17, subdivision 9; 11.17 plus 11.18 (ii) the entire amount of the levy certified in the prior 11.19 calendar year according to sections 124D.86, subdivision 4, for 11.20 school districts receiving revenue under 124D.86, subdivision 3, 11.21 clauses (1), (2), and (3); 126C.41, subdivisions 1, 2, and 3, 11.22 paragraphs (4), (5), and (6); 126C.43, subdivision 2; and 11.23 126C.48, subdivision 6. 11.24 (c) For fiscal year 2002 and later years, in June of each 11.25 year, the school district must recognize as revenue, in the fund 11.26 for which the levy was made, the lesser of: 11.27 (1) the sum of May, June, and July school district tax 11.28 settlement revenue received in that calendar year, plus general 11.29 education aid according to section 126C.13, subdivision 4, 11.30 received in July and August of that calendar year; or 11.31 (2) the sum of: 11.32 (i) 31 percent of the referendum levy certified according 11.33 to section 126C.17, in calendar year 2000; plus 11.34 (ii) the entire amount of the levy certified in the prior 11.35 calendar year according to section 124D.86, subdivision 4, for 11.36 school districts receiving revenue under sections 124D.86, 12.1 subdivision 3, clauses (1), (2), and (3); 126C.41, subdivisions 12.2 1, 2, and 3, paragraphs (4), (5), and (6); 126C.43, subdivision 12.3 2; and 126C.48, subdivision 6. 12.4 [EFFECTIVE DATE.] This section is effective June 30, 2001. 12.5 Sec. 11. Minnesota Statutes 2000, section 123B.75, is 12.6 amended by adding a subdivision to read: 12.7 Subd. 6b. [GENERAL EDUCATION AID.] If the amount to be 12.8 recognized as revenue under subdivision 5 exceeds the May, June, 12.9 and July school district tax settlement revenue received in that 12.10 calendar year, the district must recognize an amount of general 12.11 education aid equal to the difference between the total amount 12.12 to be recognized as revenue under subdivision 5, and the May, 12.13 June, and July school district tax settlement revenue received 12.14 in that calendar year as revenue in the previous fiscal year. 12.15 [EFFECTIVE DATE.] This section is effective June 30, 2001. 12.16 Sec. 12. Minnesota Statutes 2000, section 123B.88, 12.17 subdivision 1, is amended to read: 12.18 Subdivision 1. [PROVIDING TRANSPORTATION.] The board may 12.19 provide for the transportation of pupils to and from school and 12.20 for any other purpose. The board may also provide for the 12.21 transportation of pupils to schools in other districts for 12.22 grades and departments not maintained in the district, including 12.23 high school, at the expense of the district, when funds are 12.24 available therefor and if agreeable to the district to which it 12.25 is proposed to transport the pupils, for the whole or a part of 12.26 the school year, as it may deem advisable, and subject to its 12.27 rules. In any district, the board must arrange for the 12.28 attendance of all pupils living two miles or more from the 12.29 school, except pupils whose transportation privileges have been 12.30 voluntarily surrendered under subdivision 2, or whose privileges 12.31 have been revoked under section 123B.91, subdivision 1, clause 12.32 (6), or 123B.90, subdivision 2. The district may provide for 12.33 the transportation of or the boarding and rooming of the pupils 12.34 who may be more economically and conveniently provided for by 12.35 that means. Arrangements for attendance may include a 12.36 requirement that parents or guardians request transportation 13.1 before it is provided. The board must provide transportation to 13.2 and from the home of a child with a disability not yet enrolled 13.3 in kindergarten when special instruction and services under 13.4 sections 125A.03 to 125A.24, 125A.26 to 125A.48, and 125A.65 are 13.5 provided in a location other than in the child's home. When 13.6 transportation is provided, scheduling of routes, establishment 13.7 of the location of bus stops, manner and method of 13.8 transportation, control and discipline of school children, the 13.9 determination of fees, and any other matter relating thereto 13.10 must be within the sole discretion, control, and management of 13.11 the board. The district may provide for the transportation of 13.12 pupils or expend a reasonable amount for room and board of 13.13 pupils whose attendance at school can more economically and 13.14 conveniently be provided for by that means or who attend school 13.15 in a building rented or leased by a district within the confines 13.16 of an adjacent district. 13.17 Sec. 13. Minnesota Statutes 2000, section 124D.69, 13.18 subdivision 1, is amended to read: 13.19 Subdivision 1. [AID.] If a pupil enrolls in an alternative 13.20 program, eligible under section 124D.68, subdivision 3, 13.21 paragraph (d), or subdivision 4, operated by a private 13.22 organization that has contracted with a school district to 13.23 provide educational services for eligible pupils under section 13.24 124D.68, subdivision 2, the district contracting with the 13.25 private organization must reimburse the provider an amount equal 13.26 to at least 9095 percent of the district's average general 13.27 education less basic skills revenue per pupil unit times the 13.28 number of pupil units for pupils attending the program. Basic 13.29 skills revenue shall be paid according to section 126C.10, 13.30 subdivision 4. Compensatory revenue must be allocated according 13.31 to section 126C.15, subdivision 2. For a pupil attending the 13.32 program part time, the revenue paid to the program must be 13.33 reduced proportionately, according to the amount of time the 13.34 pupil attends the program, and revenue paid to the district 13.35 shall be reduced accordingly. Pupils for whom a district 13.36 provides reimbursement may not be counted by the district for 14.1 any purpose other than computation of general education 14.2 revenue. If payment is made to a district or program for a 14.3 pupil under this section, the department must not make a payment 14.4 for the same pupil under section 124D.68, subdivision 9. 14.5 [EFFECTIVE DATE.] This section is effective for revenue for 14.6 fiscal years 2002 and later. 14.7 Sec. 14. Minnesota Statutes 2000, section 126C.05, 14.8 subdivision 1, is amended to read: 14.9 Subdivision 1. [PUPIL UNIT.] Pupil units for each 14.10 Minnesota resident pupil in average daily membership enrolled in 14.11 the district of residence, in another district under sections 14.12 123A.05 to 123A.08, 124D.03, 124D.06, 124D.07, 124D.08, or 14.13 124D.68; in a charter school under section 124D.10; or for whom 14.14 the resident district pays tuition under section 123A.18, 14.15 123A.22, 123A.30, 123A.32, 123A.44, 123A.488, 123B.88, 14.16 subdivision 4, 124D.04, 124D.05, 125A.03 to 125A.24, 125A.51, or 14.17 125A.65, shall be counted according to this subdivision. 14.18 (a) A prekindergarten pupil with a disability who is 14.19 enrolled in a program approved by the commissioner and has an 14.20 individual education plan is counted as the ratio of the number 14.21 of hours of assessment and education service to 825 times 1.25 14.22 with a minimum average daily membership of 0.28, but not more 14.23 than 1.25 pupil units. 14.24 (b) A prekindergarten pupil who is assessed but determined 14.25 not to be handicapped is counted as the ratio of the number of 14.26 hours of assessment service to 825 times 1.25. 14.27 (c) A kindergarten pupil with a disability who is enrolled 14.28 in a program approved by the commissioner is counted as the 14.29 ratio of the number of hours of assessment and education 14.30 services required in the fiscal year by the pupil's individual 14.31 education program plan to 875, but not more than one. 14.32 (d) A kindergarten pupil who is not included in paragraph 14.33 (c) is counted as .557 of a pupil unit for fiscal year 2000 and 14.34 thereafter. 14.35 (e) A pupil who is in any of grades 1 to 3 is counted as 14.36 1.115 pupil units for fiscal year 2000 and thereafter. 15.1 (f) A pupil who is any of grades 4 to 6 is counted as 1.06 15.2 pupil units for fiscal year 1995 and thereafter. 15.3 (g) A pupil who is in any of grades 7 to 12 is counted as 15.4 1.3 pupil units. 15.5 (h) A pupil who is in the post-secondary enrollment options 15.6 program is counted as 1.3 pupil units. 15.7 Sec. 15. Minnesota Statutes 2000, section 126C.10, 15.8 subdivision 1, is amended to read: 15.9 Subdivision 1. [GENERAL EDUCATION REVENUE.] (a) For fiscal 15.10 year 2000 and thereafter2002, the general education revenue for 15.11 each district equals the sum of the district's basic revenue, 15.12 basic skills revenue, training and experience revenue, secondary 15.13 sparsity revenue, elementary sparsity revenue, transportation 15.14 sparsity revenue, total operating capital revenue, equity 15.15 revenue, referendum offset adjustment,transition revenue, and 15.16 supplemental revenue. 15.17 (b) For fiscal year 2003 and later, the general education 15.18 revenue for each district equals the sum of the district's basic 15.19 revenue, basic skills revenue, training and experience revenue, 15.20 secondary sparsity revenue, elementary sparsity revenue, 15.21 transportation sparsity revenue, total operating capital 15.22 revenue, and equity revenue. 15.23 Sec. 16. Minnesota Statutes 2000, section 126C.10, 15.24 subdivision 2, is amended to read: 15.25 Subd. 2. [BASIC REVENUE.] The basic revenue for each 15.26 district equals the formula allowance times the adjusted 15.27 marginal cost pupil units for the school year. The formula15.28 allowance for fiscal year 1998 is $3,581. The formula allowance15.29 for fiscal year 1999 is $3,530. The formula allowance for15.30 fiscal year 2000 is $3,740.The formula allowance for fiscal 15.31 year 2001 and subsequent fiscal yearsis $3,964. The formula 15.32 allowance for fiscal year 2002 is $4,068. The formula allowance 15.33 for fiscal year 2003 and subsequent years is $4,601. 15.34 Sec. 17. Minnesota Statutes 2000, section 126C.10, 15.35 subdivision 4, is amended to read: 15.36 Subd. 4. [BASIC SKILLS REVENUE.] (a) For fiscal year 199916.1 and thereafter2002, a school district's basic skills revenue 16.2 equals the sum of: 16.3 (1) compensatory revenue under subdivision 3; plus 16.4 (2) limited English proficiency revenue according to 16.5 section 124D.65, subdivision 5; plus 16.6 (3) $190 times the limited English proficiency pupil units 16.7 according to section 126C.05, subdivision 17; plus 16.8 (4) $22.50 times the number of adjusted marginal cost pupil 16.9 units in kindergarten to grade 8. 16.10 (b) For fiscal year 2003, a school district's basic skills 16.11 revenue equals the sum of: 16.12 (1) compensatory revenue under subdivision 3; plus 16.13 (2) limited English proficiency revenue under section 16.14 124D.65, subdivision 5; plus 16.15 (3) $190 times the limited English proficiency pupil units 16.16 under section 126C.05, subdivision 17. 16.17 Sec. 18. Minnesota Statutes 2000, section 126C.10, 16.18 subdivision 9, is amended to read: 16.19 Subd. 9. [SUPPLEMENTAL REVENUE.] (a) A district's 16.20 supplemental revenue allowance for fiscal year 1994 and later16.21 fiscal years2002 equals the district's supplemental 16.22 revenue allowance for fiscal year 1993 divided by the district's16.23 1992-1993 resident pupil units2001. 16.24 (b) A district's supplemental revenue allowance is reduced16.25 for fiscal year 1995 and later according to subdivision 12.16.26 (c)A district's supplemental revenue equals the 16.27 supplemental revenue allowance, if any, times its adjusted 16.28 marginal cost pupil units for that year. 16.29 (d) A district may cancel its supplemental revenue by16.30 notifying the commissioner of education prior to June 30, 1994.16.31 A district that is reorganizing under section 123A.35, 123A.46,16.32 or 123A.48 may cancel its supplemental revenue by notifying the16.33 commissioner of children, families, and learning before July 116.34 of the year of the reorganization. If a district cancels its16.35 supplemental revenue according to this paragraph, its16.36 supplemental revenue allowance for fiscal year 1993 for purposes17.1 of subdivision 12 and section 124A.03, subdivision 3b, equals17.2 zero.17.3 [EFFECTIVE DATE.] This section is effective for revenue for 17.4 fiscal year 2002. 17.5 Sec. 19. Minnesota Statutes 2000, section 126C.10, 17.6 subdivision 13, is amended to read: 17.7 Subd. 13. [TOTAL OPERATING CAPITAL REVENUE.] (a) For 17.8 fiscal year 2000 and thereafter, total operating capital revenue 17.9 for a district equals the amount determined under paragraph (b) 17.10 or (c), plus $73 times the adjusted marginal cost pupil units 17.11 for the school year. The revenue must be placed in a reserved 17.12 account in the general fund and may only be used according to 17.13 paragraph (d) or subdivision 14. 17.14 (b) For fiscal years 2000 and later, capital revenue for a 17.15 district equals $100 times the district's maintenance cost index 17.16 times its adjusted marginal cost pupil units for the school year. 17.17 (c) For fiscal years 2000 and later, the revenue for a 17.18 district that operates a program under section 124D.128, is 17.19 increased by an amount equal to $30 times the number of marginal 17.20 cost pupil units served at the site where the program is 17.21 implemented. 17.22 (d) For fiscal years 2001 and 2002, the district must 17.23 reserve an amount equal to $5 per adjusted marginal cost pupil 17.24 unit for telecommunication access costs. Reserve revenue under 17.25 this paragraph must first be used to pay for ongoing or 17.26 recurring telecommunication access costs, including access to 17.27 data lines,and video linesconnections, orincluding 17.28 Internet access. Any revenue remaining after covering all 17.29 ongoing or recurring access costs may be used for computer 17.30 hardware or equipment. 17.31 Sec. 20. Minnesota Statutes 2000, section 126C.10, 17.32 subdivision 24, is amended to read: 17.33 Subd. 24. [EQUITY REVENUE.] (a) A school district 17.34 qualifies for equity revenue if: 17.35 (1) the school district's adjusted marginal cost pupil unit 17.36 amount of basic revenue, supplemental revenue, transition 18.1 revenue, and referendum revenue is less than the value of the 18.2 school district at or immediately above the 90th95th percentile 18.3 of school districts in its equity region for those revenue 18.4 categories; and 18.5 (2) the school district's administrative offices are not 18.6 located in a city of the first class on July 1, 1999. 18.7 (b) Equity revenue for a qualifying district that receives 18.8 referendum revenue under section 126C.17, subdivision 4, equals 18.9 the product of (1) the district's adjusted marginal cost pupil 18.10 units for that year; times (2) the sum of (i) $10, plus (ii) 18.11 $30$55, times the school district's equity index computed under 18.12 subdivision 27. 18.13 (c) Equity revenue for a qualifying district that does not 18.14 receive referendum revenue under section 126C.17, subdivision 4, 18.15 equals the product of the district's adjusted marginal cost 18.16 pupil units for that year times $10. 18.17 [EFFECTIVE DATE.] This section is effective for revenue for 18.18 fiscal year 2002 and later. 18.19 Sec. 21. Minnesota Statutes 2000, section 126C.10, 18.20 subdivision 25, is amended to read: 18.21 Subd. 25. [REGIONAL EQUITY GAP.] The regional equity gap 18.22 equals the difference between the value of the school district 18.23 at or immediately above the fifth percentile of adjusted general 18.24 revenue per adjusted marginal cost pupil unit and the value of 18.25 the school district at or immediately above the 90th95th 18.26 percentile of adjusted general revenue per adjusted marginal 18.27 cost pupil unit. 18.28 [EFFECTIVE DATE.] This section is effective for revenue for 18.29 fiscal year 2002 and later. 18.30 Sec. 22. Minnesota Statutes 2000, section 126C.12, 18.31 subdivision 2, is amended to read: 18.32 Subd. 2. [ INSTRUCTOR DEFINEDDEFINITIONS.] Primary18.33 instructor(a) "Classroom teacher" means a public employee 18.34 licensed by the board of teaching who is authorized to teach all 18.35 subjects to children in any grade in kindergarten through grade 18.36 6 and whose duties are full-time regular classroom instruction, 19.1 excluding a teacher for whom federal aids are received or for 19.2 whom categorical aids are received pursuant tounder section 19.3 125A.76 or who is an itinerant teacher or provides instruction 19.4 outside of the regular classroom. Except as provided in section 19.5 122A.68, subdivision 6, instructorclassroom teacher does not 19.6 include supervisory and support personnel , except school social19.7 workers asdefined in section 122A.15. An instructorA 19.8 classroom teacher whose duties are less than full-time 19.9 instruction must be included as an equivalent only for the 19.10 number of hours of instruction in gradeskindergarten through 619.11 grade 3. 19.12 (b) "Class size" means the districtwide ratio at each grade 19.13 level of the number of full-time students in kindergarten 19.14 through grade 3 served at least 40 percent of the time in 19.15 regular classrooms to the number of full-time classroom teachers 19.16 in kindergarten through grade 3, determined as of October 1 of 19.17 each school year. 19.18 Sec. 23. Minnesota Statutes 2000, section 126C.12, 19.19 subdivision 3, is amended to read: 19.20 Subd. 3. [INSTRUCTION CONTACT TIME.] Instruction may be 19.21 provided by a primary instructor,classroom teacher or by a team 19.22 of instructorsclassroom teachers, or by a teacher resident 19.23 supervised by a primary instructorclassroom teacher. The 19.24 district must maximize instructorclassroom teacher to learner 19.25 average instructional contact time in the core subjects of 19.26 reading and mathematics. 19.27 Sec. 24. Minnesota Statutes 2000, section 126C.12, 19.28 subdivision 4, is amended to read: 19.29 Subd. 4. [REVENUE USE.] (a) Revenue must be used according19.30 to either paragraph (b) or (c).19.31 (b)Revenue must be used to reduce and maintain the 19.32 district's instructor to learner ratiosaverage class size in 19.33 kindergarten through grade 63 to a level of 117 to 171 on 19.34 average in each of the respective grades. The district must19.35 prioritize the use of the revenue to attain this level initially19.36 in kindergarten and grade 1 and then through the subsequent20.1 grades as revenue is available.20.2 (c) The revenue may be used to prepare and use an20.3 individualized learning plan for each learner.(b) A district 20.4 must not increase the district wide instructor-to-learner ratios20.5 districtwide class sizes in other grades as a result of reducing 20.6 instructor-to-learner ratiosclass sizes in kindergarten through 20.7 grade 63. Revenue may not be used to provide instructor 20.8 preparation time. A district may use a portion of the revenue 20.9 reserved under this section to employ up to the same number of 20.10 full-time equivalent education assistants or aides as the 20.11 district employed during the 1992-1993 school year under 20.12 Minnesota Statutes 1992, section 124.331, subdivision 2 through 20.13 fiscal year 2002. Beginning in fiscal year 2003, class size 20.14 reduction revenue may only be reserved to employ classroom 20.15 teachers contributing to lower class sizes in kindergarten 20.16 through grade 3. 20.17 Sec. 25. Minnesota Statutes 2000, section 126C.12, 20.18 subdivision 5, is amended to read: 20.19 Subd. 5. [ADDITIONAL REVENUE USE.] If the board of a 20.20 district determines that the district has achieved and is 20.21 maintaining the instructor-to-learner ratiosclass sizes 20.22 specified in subdivision 4 and is using individualized learning20.23 plans, the board may use the revenue to reduce class size in 20.24 grades 4, 5, and 6, provide all-day, everyday kindergarten, 20.25 prepare and use individualized learning plans, improve program 20.26 offerings, purchase instructional material and, services, or 20.27 technology, or provide staff development needed for reduced 20.28 instructor-to-learner ratios. If additional revenue remains,20.29 the district must use the revenue to improve program offerings,20.30 including programs provided through interactive television,20.31 throughout the district or other general education20.32 purposesclass sizes. 20.33 Sec. 26. Minnesota Statutes 2000, section 126C.12, is 20.34 amended by adding a subdivision to read: 20.35 Subd. 6. [ANNUAL REPORT.] By December 1 of each year, 20.36 districts receiving revenue under subdivision 1 shall make 21.1 available to the public a report on the amount of revenue the 21.2 district has received and the use of the revenue. This report 21.3 shall be in the form and manner determined by the commissioner 21.4 and shall include the district average class sizes in 21.5 kindergarten through grade 6 as of October 1 of the current 21.6 school year and the class sizes for each site serving 21.7 kindergarten through grade 6 students in the district. A copy 21.8 of the report shall be filed with the commissioner by December 21.9 15. 21.10 Sec. 27. [126C.126] [REALLOCATING GENERAL EDUCATION 21.11 REVENUE FOR ALL-DAY KINDERGARTEN.] 21.12 In order to provide additional revenue for an optional 21.13 all-day kindergarten program, a district may reallocate general 21.14 education revenue attributable to 12th grade students who have 21.15 graduated early under section 120B.07. 21.16 [EFFECTIVE DATE.] This section is effective for fiscal year 21.17 2002 and later. 21.18 Sec. 28. Minnesota Statutes 2000, section 126C.15, 21.19 subdivision 1, is amended to read: 21.20 Subdivision 1. [USE OF THE REVENUE.] The basic skills 21.21 revenue under section 126C.10, subdivision 4, and the portion of 21.22 the transition revenue adjustment under section 126C.10, 21.23 subdivision 20, attributable to the compensatory transition 21.24 allowance under section 126C.10, subdivision 19, paragraph (b), 21.25 must be reserved and used to meet the educational needs of 21.26 pupils who enroll under-prepared to learn and whose progress 21.27 toward meeting state or local content or performance standards 21.28 is below the level that is appropriate for learners of their 21.29 age. Any of the following may be provided to meet these 21.30 learners' needs: 21.31 (1) direct instructional services under the assurance of 21.32 mastery program according to section 124D.66; 21.33 (2) remedial instruction in reading, language arts, 21.34 mathematics, other content areas, or study skills to improve the 21.35 achievement level of these learners; 21.36 (3) additional teachers and teacher aides to provide more 22.1 individualized instruction to these learners through individual 22.2 tutoring, lower instructor-to-learner ratios, or team teaching; 22.3 (4) a longer school day or week during the regular school 22.4 year or through a summer program that may be offered directly by 22.5 the site or under a performance-based contract with a 22.6 community-based organization; 22.7 (5) comprehensive and ongoing staff development consistent 22.8 with district and site plans according to section 122A.60, for 22.9 teachers, teacher aides, principals, and other personnel to 22.10 improve their ability to identify the needs of these learners 22.11 and provide appropriate remediation, intervention, 22.12 accommodations, or modifications; 22.13 (6) instructional materials and technology appropriate for 22.14 meeting the individual needs of these learners; 22.15 (7) programs to reduce truancy, encourage completion of 22.16 high school, enhance self-concept, provide health services, 22.17 provide nutrition services, provide a safe and secure learning 22.18 environment, provide coordination for pupils receiving services 22.19 from other governmental agencies, provide psychological services 22.20 to determine the level of social, emotional, cognitive, and 22.21 intellectual development, and provide counseling services, 22.22 guidance services, and social work services; 22.23 (8) bilingual programs, bicultural programs, and programs 22.24 for learners of limited English proficiency; 22.25 (9) all day kindergarten; 22.26 (10) extended school day and extended school year programs; 22.27 and 22.28 (11) substantial parent involvement in developing and 22.29 implementing remedial education or intervention plans for a 22.30 learner, including learning contracts between the school, the 22.31 learner, and the parent that establish achievement goals and 22.32 responsibilities of the learner and the learner's parent or 22.33 guardian ; and22.34 (12) other methods to increase achievement, as needed. 22.35 Sec. 29. Minnesota Statutes 2000, section 126C.15, 22.36 subdivision 2, is amended to read: 23.1 Subd. 2. [BUILDING ALLOCATION.] (a) A district must 23.2 allocate its compensatory revenue to each school building in the 23.3 district where the children who have generated the revenue are 23.4 served. 23.5 (b) Notwithstanding paragraph (a), for fiscal years 1999,23.6 2000, and 2001, upon approval by the commissioner,a district 23.7 may allocate up to five percent of the amount of compensatory 23.8 revenue that the district would havereceived under Minnesota23.9 Statutes 1996, section 124A.22, subdivision 3, for fiscal year23.10 1998, computed using a basic formula allowance of $3,581during 23.11 the previous fiscal year to school sites according to a plan 23.12 adopted by the school board. 23.13 (c) For the purposes of this section and section 126C.05, 23.14 subdivision 3, "building" means education site as defined in 23.15 section 123B.04, subdivision 1. 23.16 (d) If the pupil is served at a site other than one owned 23.17 and operated by the district, the revenue shall be paid to the 23.18 district and used for services for pupils who generate the 23.19 revenue. 23.20 Sec. 30. Minnesota Statutes 2000, section 126C.15, 23.21 subdivision 5, is amended to read: 23.22 Subd. 5. [ANNUAL EXPENDITURE REPORT.] Each year a district 23.23 that receives basic skills revenue must submit a report 23.24 identifying the expenditures it incurred to meet the needs of 23.25 eligible learners under subdivision 1. The report must conform 23.26 to uniform financial and reporting standards established for 23.27 this purpose. Using valid and reliable data and measurement 23.28 criteria, the report also must determine whether increased 23.29 expenditures raised student achievement levels. 23.30 Sec. 31. Minnesota Statutes 2000, section 126C.17, 23.31 subdivision 6, is amended to read: 23.32 Subd. 6. [REFERENDUM EQUALIZATION LEVY.] (a)A district's 23.33 referendum equalization levy for a referendum levied against the23.34 referendum market value of all taxable property as defined in23.35 section 126C.01, subdivision 3,equals the district's referendum 23.36 equalization revenue times the lesser of one or the ratio of the 24.1 district's referendum market value per resident marginal cost 24.2 pupil unit to $476,000. 24.3 (b) A district's referendum equalization levy for a24.4 referendum levied against the net tax capacity of all taxable24.5 property equals the district's referendum equalization revenue24.6 times the lesser of one or the ratio of the district's adjusted24.7 net tax capacity per resident marginal cost pupil unit to $8,404.24.8 [EFFECTIVE DATE.] This section is effective for revenue for 24.9 fiscal year 2002. 24.10 Sec. 32. Minnesota Statutes 2000, section 126C.17, 24.11 subdivision 9, is amended to read: 24.12 Subd. 9. [REFERENDUM REVENUE.] (a) The revenue authorized 24.13 by section 126C.10, subdivision 1, may be increased in the 24.14 amount approved by the voters of the district at a referendum 24.15 called for the purpose. The referendum may be called by the 24.16 board or shall be called by the board upon written petition of 24.17 qualified voters of the district. The referendum must be 24.18 conducted one or two calendar years before the increased levy 24.19 authority, if approved, first becomes payable. Only one 24.20 election to approve an increase may be held in a calendar year. 24.21 Unless the referendum is conducted by mail under paragraph (g), 24.22 the referendum must be held on the first Tuesday after the first 24.23 Monday in November. The ballot must state the maximum amount of 24.24 the increased revenue per resident marginal cost pupil unit, the 24.25 estimated referendum tax rate as a percentage of referendum 24.26 market value in the first year it is to be levied, and that the 24.27 revenue must be used to finance school operations. The ballot 24.28 may state a schedule, determined by the board, of increased 24.29 revenue per resident marginal cost pupil unit that differs from 24.30 year to year over the number of years for which the increased 24.31 revenue is authorized. If the ballot contains a schedule 24.32 showing different amounts, it must also indicate the estimated 24.33 referendum tax rate as a percent of referendum market value for 24.34 the amount specified for the first year and for the maximum 24.35 amount specified in the schedule. The ballot may state that 24.36 existing referendum levy authority is expiring. In this case, 25.1 the ballot may also compare the proposed levy authority to the 25.2 existing expiring levy authority, and express the proposed 25.3 increase as the amount, if any, over the expiring referendum 25.4 levy authority. The ballot must designate the specific number 25.5 of years, not to exceed ten, for which the referendum 25.6 authorization applies. The notice required under section 275.60 25.7 may be modified to read, in cases of renewing existing levies: 25.8 "BY VOTING "YES" ON THIS BALLOT QUESTION, YOU MAY BE VOTING 25.9 FOR A PROPERTY TAX INCREASE." 25.10 The ballot may contain a textual portion with the 25.11 information required in this subdivision and a question stating 25.12 substantially the following: 25.13 "Shall the increase in the revenue proposed by (petition 25.14 to) the board of ........., School District No. .., be approved?" 25.15 If approved, an amount equal to the approved revenue per 25.16 resident marginal cost pupil unit times the resident marginal 25.17 cost pupil units for the school year beginning in the year after 25.18 the levy is certified shall be authorized for certification for 25.19 the number of years approved, if applicable, or until revoked or 25.20 reduced by the voters of the district at a subsequent referendum. 25.21 (b) The board must prepare and deliver by first class mail 25.22 at least 15 days but no more than 30 days before the day of the 25.23 referendum to each taxpayer a notice of the referendum and the 25.24 proposed revenue increase. The board need not mail more than 25.25 one notice to any taxpayer. For the purpose of giving mailed 25.26 notice under this subdivision, owners must be those shown to be 25.27 owners on the records of the county auditor or, in any county 25.28 where tax statements are mailed by the county treasurer, on the 25.29 records of the county treasurer. Every property owner whose 25.30 name does not appear on the records of the county auditor or the 25.31 county treasurer is deemed to have waived this mailed notice 25.32 unless the owner has requested in writing that the county 25.33 auditor or county treasurer, as the case may be, include the 25.34 name on the records for this purpose. The notice must project 25.35 the anticipated amount of tax increase in annual dollars and 25.36 annual percentage for typical residential homesteads, 26.1 agricultural homesteads, apartments, and commercial-industrial 26.2 property within the school district. 26.3 The notice for a referendum may state that an existing 26.4 referendum levy is expiring and project the anticipated amount 26.5 of increase over the existing referendum levy in the first year, 26.6 if any, in annual dollars and annual percentage for typical 26.7 residential homesteads, agricultural homesteads, apartments, and 26.8 commercial-industrial property within the district. 26.9 The notice must include the following statement: "Passage 26.10 of this referendum will result in an increase in your property 26.11 taxes." However, in cases of renewing existing levies, the 26.12 notice may include the following statement: "Passage of this 26.13 referendum may result in an increase in your property taxes." 26.14 (c) A referendum on the question of revoking or reducing 26.15 the increased revenue amount authorized pursuant to paragraph 26.16 (a) may be called by the board and shall be called by the board 26.17 upon the written petition of qualified voters of the district. 26.18 A referendum to revoke or reduce the levy amount must be based 26.19 upon the dollar amount, local tax rate, or amount per resident 26.20 marginal cost pupil unit, that was stated to be the basis for 26.21 the initial authorization. Revenue approved by the voters of 26.22 the district pursuant to paragraph (a) must be received at least 26.23 once before it is subject to a referendum on its revocation or 26.24 reduction for subsequent years. Only one revocation or 26.25 reduction referendum may be held to revoke or reduce referendum 26.26 revenue for any specific year and for years thereafter. 26.27 (d) A petition authorized by paragraph (a) or (c) is 26.28 effective if signed by a number of qualified voters in excess of 26.29 15 percent of the registered voters of the district on the day 26.30 the petition is filed with the board. A referendum invoked by 26.31 petition must be held on the date specified in paragraph (a). 26.32 (e) The approval of 50 percent plus one of those voting on 26.33 the question is required to pass a referendum authorized by this 26.34 subdivision. 26.35 (f) At least 15 days before the day of the referendum, the 26.36 district must submit a copy of the notice required under 27.1 paragraph (b) to the commissioner and to the county auditor of 27.2 each county in which the district is located. Within 15 days 27.3 after the results of the referendum have been certified by the 27.4 board, or in the case of a recount, the certification of the 27.5 results of the recount by the canvassing board, the district 27.6 must notify the commissioner of the results of the referendum. 27.7 (g) Except for a referendum held under subdivision 11, any27.8 referendum under this section held on a day other than the first27.9 Tuesday after the first Monday in November must be conducted by27.10 mail in accordance with section 204B.46. Notwithstanding27.11 paragraph (b) to the contrary, in the case of a referendum27.12 conducted by mail under this paragraph, the notice required by27.13 paragraph (b) must be prepared and delivered by first class mail27.14 at least 20 days before the referendum.27.15 Sec. 33. Minnesota Statutes 2000, section 126C.17, 27.16 subdivision 10, is amended to read: 27.17 Subd. 10. [SCHOOL REFERENDUM LEVY; MARKET VALUE.] 27.18 Notwithstanding the provisions of subdivision 9,A school 27.19 referendum levy approved after November 1, 1992, for taxes27.20 payable in 1993 and thereafter,must be levied against the 27.21 referendum market value of all taxable property as defined in 27.22 section 126C.01, subdivision 3. Any referendum levy amount 27.23 subject to the requirements of this subdivision must be 27.24 certified separately to the county auditor under section 275.07. 27.25 All other provisions of subdivision 9 that do not conflict27.26 with this subdivision apply to referendum levies under this27.27 subdivision.27.28 [EFFECTIVE DATE.] This section is effective for revenue for 27.29 fiscal year 2002. 27.30 Sec. 34. Minnesota Statutes 2000, section 126C.17, 27.31 subdivision 11, is amended to read: 27.32 Subd. 11. [REFERENDUM DATE.] (a) Except for a referendum 27.33 held under paragraph (b), any referendum under this section held 27.34 on a day other than the first Tuesday after the first Monday in 27.35 November must be conducted by mail in accordance with section 27.36 204B.46. Notwithstanding subdivision 9, paragraph (b), to the 28.1 contrary, in the case of a referendum conducted by mail under 28.2 this paragraph, the notice required by subdivision 9, paragraph 28.3 (b), must be prepared and delivered by first-class mail at least 28.4 20 days before the referendum. 28.5 (b) In addition to the referenda allowed in subdivision 9, 28.6 clause (a), the commissioner may authorize a referendum for a28.7 different day.28.8 (a) The commissioner maygrant authority to a district to 28.9 hold a referendum on a different day if the district is in 28.10 statutory operating debt and has an approved plan or has 28.11 received an extension from the department to file a plan to 28.12 eliminate the statutory operating debt. 28.13 (b) The commissioner may grant authority for a district to28.14 hold a referendum on a different day if: (1) the district will28.15 conduct a bond election under chapter 475 on that same day; and28.16 (2) the proceeds of the referendum will provide only additional28.17 operating revenue complementing the purpose for which bonding28.18 authority is sought. The commissioner may only grant authority28.19 under this paragraph if the district demonstrates to the28.20 commissioner's satisfaction that the district's ability to28.21 operate the new facility or achieve efficiencies with the28.22 purchases connected to the proceeds of the bond sale will be28.23 significantly affected if the operating referendum is not28.24 conducted until the November general election. Authority under28.25 this paragraph expires November 30, 1998.28.26 (c) The commissioner must approve, deny, or modify each 28.27 district's request for a referendum levy on a different day 28.28 within 60 days of receiving the request from a district. 28.29 Sec. 35. Minnesota Statutes 2000, section 126C.23, 28.30 subdivision 5, is amended to read: 28.31 Subd. 5. [DATA REPORTING.] Each district must report to 28.32 the commissioner the estimated amount of general education and28.33 referendum initially allocated to each building under28.34 subdivision 2 and the amount of any reallocations under28.35 subdivision 3 by January 30 of the current fiscal year, andthe 28.36 actual amount of general education and referendum revenue 29.1 initially allocated to each building under subdivision 2 and the 29.2 amount of any reallocations under subdivision 3 by January 30 of 29.3 the next fiscal year. 29.4 Sec. 36. Minnesota Statutes 2000, section 126C.41, 29.5 subdivision 2, is amended to read: 29.6 Subd. 2. [RETIRED EMPLOYEE HEALTH BENEFITS.] A district 29.7 may levy an amount up to the amount the district is required by 29.8 the collective bargaining agreement in effect on March 30, 1992, 29.9 to pay for health insurance or unreimbursed medical expenses for 29.10 licensed and nonlicensed employees who have terminated services 29.11 in the employing district and withdrawn from active teaching 29.12 service or other active service, as applicable, before July 1, 29.13 1992. The total amount of the levy each year may not 29.14 exceed $300,000$600,000. 29.15 Sec. 37. Minnesota Statutes 2000, section 126C.41, 29.16 subdivision 3, is amended to read: 29.17 Subd. 3. [RETIREMENT LEVIES.] (1) In addition to the29.18 excess levy authorized in 1976 any district within a city of the29.19 first class which was authorized in 1975 to make a retirement29.20 levy under Minnesota Statutes 1974, section 275.127 and chapter29.21 422A may levy an amount per pupil unit which is equal to the29.22 amount levied in 1975 payable 1976, under Minnesota Statutes29.23 1974, section 275.127 and chapter 422A, divided by the number of29.24 pupil units in the district in 1976-1977.29.25 (2) In 1979 and each year thereafter, any district which29.26 qualified in 1976 for an extra levy under paragraph (1) shall be29.27 allowed to levy the same amount as levied for retirement in 197829.28 under this clause reduced each year by ten percent of the29.29 difference between the amount levied for retirement in 197129.30 under Minnesota Statutes 1971, sections 275.127 and 422.01 to29.31 422.54 and the amount levied for retirement in 1975 under29.32 Minnesota Statutes 1974, section 275.127 and chapter 422A.29.33 (3)(a) In 1991 and each year thereafter, a district to 29.34 which this subdivision applies may levy an additional amount 29.35 required for contributions to the Minneapolis employees 29.36 retirement fund as a result of the maximum dollar amount 30.1 limitation on state contributions to the fund imposed under 30.2 section 422A.101, subdivision 3. The additional levy must not 30.3 exceed the most recent amount certified by the board of the 30.4 Minneapolis employees retirement fund as the district's share of 30.5 the contribution requirement in excess of the maximum state 30.6 contribution under section 422A.101, subdivision 3. 30.7 (4)(b) For taxes payable in 1994 and thereafter, special 30.8 school district No. 1, Minneapolis, and independent school 30.9 district No. 625, St. Paul, may levy for the increase in the 30.10 employer retirement fund contributions, under Laws 1992, chapter 30.11 598, article 5, section 1. 30.12 (5)(c) If the employer retirement fund contributions under 30.13 section 354A.12, subdivision 2a, are increased for fiscal year 30.14 1994 or later fiscal years, special school district No. 1, 30.15 Minneapolis, and independent school district No. 625, St. Paul, 30.16 may levy in payable 1994 or later an amount equal to the amount 30.17 derived by applying the net increase in the employer retirement 30.18 fund contribution rate of the respective teacher retirement fund 30.19 association between fiscal year 1993 and the fiscal year 30.20 beginning in the year after the levy is certified to the total 30.21 covered payroll of the applicable teacher retirement fund 30.22 association. If an applicable school district levies under this 30.23 paragraph, they may not levy under paragraph (4)(b). 30.24 (6)(d) In addition to the levy authorized under paragraph 30.25 (5)(c), special school district No. 1, Minneapolis, may also 30.26 levy payable in 1997 or later an amount equal to the 30.27 contributions under section 423A.02, subdivision 3, and may also 30.28 levy in payable 1994 or later an amount equal to the state aid 30.29 contribution under section 354A.12, subdivision 3b. Independent 30.30 school district No. 625, St. Paul, may levy payable in 1997 or 30.31 later an amount equal to the supplemental contributions under 30.32 section 423A.02, subdivision 3. 30.33 Sec. 38. Minnesota Statutes 2000, section 126C.43, 30.34 subdivision 3, is amended to read: 30.35 Subd. 3. [TAX LEVY FOR UNPAIDJUDGMENT.] A district may 30.36 levy the amounts necessary to pay the district's obligations31.1 judgments against the district under section 126C.47123B.25 31.2 that became final after the date the district certified its 31.3 proposed levy in the previous year. With the approval of the 31.4 commissioner, a district may spread this levy over a period not 31.5 to exceed three years. 31.6 Sec. 39. Minnesota Statutes 2000, section 127A.41, 31.7 subdivision 5, is amended to read: 31.8 Subd. 5. [DISTRICT APPEAL OF AID REDUCTION; INSPECTION OF 31.9 DISTRICT SCHOOLS AND ACCOUNTS AND RECORDS.] Public schools shall 31.10 at all times be open to the inspection of the commissioner. The 31.11 accounts and records of any district must be open to inspection 31.12 by the state auditor, or the commissioner for the purpose of 31.13 audits conducted under this section. Each district shall keep 31.14 for a minimum of three years at least the following: (1) 31.15 identification of the annual session days held, together with a 31.16 record of the length of each session day, (2) a record of each 31.17 pupil's daily attendance, with entrance and withdrawal dates, 31.18 and (3) identification of the pupils transported who are31.19 reported for transportation aidto-and-from school 31.20 transportation category for each pupil as defined in section 31.21 123B.92, subdivision 1. 31.22 Sec. 40. Minnesota Statutes 2000, section 127A.50, 31.23 subdivision 2, is amended to read: 31.24 Subd. 2. [APPROPRIATION AND ESTIMATED NET SAVINGS.] The 31.25 amounts necessary to pay any positive net adjustments under this 31.26 section to any school district are appropriated annually from 31.27 the general fund to the commissioner of children, families, and 31.28 learning. The estimated net general fund savings under this31.29 section is $29,819,000 in fiscal year 1998, and $26,997,000 in31.30 each fiscal year thereafter.31.31 Sec. 41. Minnesota Statutes 2000, section 127A.51, is 31.32 amended to read: 31.33 127A.51 [STATEWIDE AVERAGE REVENUE.] 31.34 By October 1 of each year the commissioner must estimate 31.35 the statewide average adjusted general revenue per adjusted 31.36 marginal cost pupil unit and the disparity in adjusted general 32.1 revenue among pupils and districts by computing the ratio of the 32.2 ninety-fifth percentile to the fifth percentile of adjusted 32.3 general revenue. The commissioner must provide that information 32.4 to all districts. 32.5 If the disparity in adjusted general revenue as measured by 32.6 the ratio of the ninety-fifth percentile to the fifth percentile 32.7 increases in any year, the commissioner shall recommend to the 32.8 legislature options for change in the general education formula 32.9 that will limit the disparity in adjusted general revenue to no 32.10 more than the disparity for the previous school year. The 32.11 commissioner must submit the recommended options to the 32.12 education committees of the legislature by January 15. 32.13 For purposes of this section and section 126C.10, adjusted 32.14 general revenue means: 32.15 (1) for fiscal year 2002, the sum of basic revenue under 32.16 section 126C.10, subdivision 2; supplemental revenue under 32.17 section 126C.10, subdivisions 9 and 12; transition revenue under 32.18 section 126C.10, subdivision 20; andreferendum revenue under 32.19 section 126C.17; and equity revenue under section 126C.10, 32.20 subdivisions 24a and 24b; and 32.21 (2) for fiscal year 2003 and later, the sum of basic 32.22 revenue under section 126C.10, subdivision 2; referendum revenue 32.23 under section 126C.17; and equity revenue under section 126C.10, 32.24 subdivisions 24a and 24b. 32.25 Sec. 42. Laws 1992, chapter 499, article 7, section 31, as 32.26 amended by Laws 1998, chapter 398, article 1, section 39, Laws 32.27 1999, chapter 241, article 1, section 54, and Laws 2000, chapter 32.28 489, article 2, section 28, is amended to read: 32.29 Sec. 31. [REPEALER.] 32.30 Minnesota Statutes 1990, sections 124A.02, subdivision 24;32.31 124A.23, subdivisions 2 and 3; 124A.26, subdivisions 2 and 3;32.32 124A.27; 124A.28; and 124A.29, subdivision 2; and Minnesota32.33 Statutes 1991 Supplement, sections 124A.02, subdivisions 16 and32.34 23; 124A.03, subdivisions 1b, 1c, 1d, 1e, 1f, 1g, 1h, and 1i;32.35 124A.04; 124A.22, subdivisions 2, 3, 4, 4a, 4b, 8, and 9;32.36 124A.23, subdivisions 1, 4, and 5; 124A.24; 124A.26, subdivision33.1 1; and 124A.29, subdivision 1, are repealed effective June 30,33.2 2004;Laws 1991, chapter 265, article 7, section 35, is repealed. 33.3 Sec. 43. Laws 2000, chapter 489, article 2, section 34, is 33.4 amended to read: 33.5 Sec. 34. [TRAINING AND EXPERIENCE REPLACEMENT REVENUE.] 33.6 (a) For fiscal year 2001 only, a school district's training 33.7 and experience replacement revenue equals the sum of the 33.8 following: 33.9 (1) the ratio of the amount of training and experience 33.10 revenue the district would have received for fiscal year 1999 33.11 calculated using the training and experience index in Minnesota 33.12 Statutes 1996, section 124A.04, to its resident pupil units for 33.13 that year, times the district's adjusted marginal cost pupil 33.14 units for fiscal year 2001, times .06; plus 33.15 (2) the difference between .47 times the training and 33.16 experience revenue the district would have received for fiscal 33.17 year 1999, calculated using the training and experience index in 33.18 Minnesota Statutes 1996, section 124A.04, and the amount 33.19 calculated in Minnesota Statutes, section 126C.10, subdivision 33.20 5, for fiscal year 2001, but not less than zero. 33.21 (b) This revenue is paid entirely in fiscal year 2001 based 33.22 on estimated data. 33.23 (c) By January 31, 2002, the department of children, 33.24 families, and learning shall recalculate the revenue for each 33.25 district using actual data, and shall adjust the general 33.26 education aid paid to school districts for fiscal year 2002 by 33.27 the amount of the difference between the estimated revenue and 33.28 the actual revenue. 33.29 Sec. 44. Laws 2000, chapter 489, article 2, section 36, is 33.30 amended to read: 33.31 Sec. 36. [FISCAL YEARS 20032004 TO 20072008 AIRPORT 33.32 RUNWAY IMPACT PUPIL UNIT AID; RICHFIELD.] 33.33 Subdivision 1. [AIRPORT IMPACT ZONE PUPIL UNITS, 33.34 DEFINITION.] For the purposes of this section, "airport impact 33.35 zone pupil units" means the number of pupil units, according to 33.36 Minnesota Statutes 1999 Supplement, section 126C.05, subdivision 34.1 1, in school year 1998-1999 that were attributable to the 34.2 airport impact zone, as defined in Laws 1999, chapter 243, 34.3 article 16, section 35, subdivision 1. 34.4 Subd. 2. [FISCAL YEAR 20032004.] For fiscal year 200334.5 2004 only, independent school district No. 280, Richfield, is 34.6 eligible for declining pupil unit aid equal to the product of 70 34.7 percent of the airport impact zone pupil units times the general 34.8 education formula allowance for fiscal year 20032004. 34.9 Subd. 3. [FISCAL YEAR 20042005.] For fiscal year 200434.10 2005 only, independent school district No. 280, Richfield, is 34.11 eligible for declining pupil unit aid equal to the product of 70 34.12 percent of the airport impact zone pupil units times the general 34.13 education formula allowance for fiscal year 20042005. 34.14 Subd. 4. [FISCAL YEAR 20052006.] For fiscal year 200534.15 2006 only, independent school district No. 280, Richfield, is 34.16 eligible for declining pupil unit aid equal to the product of 34.17 52.5 percent of the airport impact zone pupil units times the 34.18 general education formula allowance for fiscal year 20052006. 34.19 Subd. 5. [FISCAL YEAR 20062007.] For fiscal year 200634.20 2007 only, independent school district No. 280, Richfield, is 34.21 eligible for declining pupil unit aid equal to the product of 35 34.22 percent of the airport impact zone pupil units times the general 34.23 education formula allowance for fiscal year 20062007. 34.24 Subd. 6. [FISCAL YEAR 20072008.] For fiscal year 200734.25 2008 only, independent school district No. 280, Richfield, is 34.26 eligible for declining pupil unit aid equal to the product of 34.27 17.5 percent of the airport impact zone pupil units times the 34.28 general education formula allowance for fiscal year 20072008. 34.29 Sec. 45. Laws 2000, chapter 489, article 2, section 37, 34.30 subdivision 3, is amended to read: 34.31 Subd. 3. [FISCAL YEAR 2001 CALCULATION.] (a) For fiscal 34.32 year 2001, a school district's sparsity correction revenue 34.33 equals .5 times the difference between sparsity revenue in 34.34 fiscal year 2001 calculated according to Laws 1999, chapter 241, 34.35 article 1, sections 18 and 19, and the sparsity revenue the 34.36 district would have received for fiscal year 2001 had these 35.1 sections of law not been approved. 35.2 (b) This revenue is paid entirely in fiscal year 2001 based 35.3 on estimated data. 35.4 (c) By January 31, 2002, the department of children, 35.5 families, and learning shall recalculate the revenue for each 35.6 district using actual data, and shall adjust the general 35.7 education aid paid to school districts for fiscal year 2002 by 35.8 the amount of the difference between the estimated revenue and 35.9 the actual revenue. 35.10 Sec. 46. Laws 2000, chapter 489, article 2, section 39, 35.11 subdivision 2, is amended to read: 35.12 Subd. 2. [SPARSITY CORRECTION REVENUE.] For sparsity 35.13 correction revenue: 35.14 $1,030,000 ..... 2000 35.15 $ 515,000 ..... 2001 35.16 The 2000 appropriation is available until June 30, 2001. 35.17 [EFFECTIVE DATE.] This section is effective the day 35.18 following final enactment. 35.19 Sec. 47. Laws 2000, chapter 489, article 3, section 25, 35.20 subdivision 5, is amended to read: 35.21 Subd. 5. [SPECIAL EDUCATION CROSS-SUBSIDY REVENUE.] For 35.22 special education cross-subsidy revenue: 35.23 $ 7,898,000 ..... 2000 35.24 $18,396,000 ..... 2001 35.25 The 2000 appropriation is available until June 30, 2001. 35.26 [EFFECTIVE DATE.] This section is effective the day 35.27 following final enactment. 35.28 Sec. 48. [LEGISLATIVE TASK FORCE ON REDUCING THE 35.29 COMPLEXITY AND INEQUITIES OF KINDERGARTEN THROUGH GRADE 12 35.30 EDUCATION FUNDING STATUTES AND RULES.] 35.31 (a) The legislative task force on reducing the complexity 35.32 and inequities of kindergarten through grade 12 education 35.33 funding consists of eight members. The speaker of the house of 35.34 representatives, considering geographical balance, shall appoint 35.35 four members from the house, two of whom must be minority caucus 35.36 members. The subcommittee on committees of the senate committee 36.1 on rules and administration, considering geographical balance, 36.2 shall appoint four members from the senate, two of whom must be 36.3 minority caucus members. 36.4 (b) The task force shall study and recommend to the 36.5 legislature by January 15, 2002, and by January 15, 2003, any 36.6 changes in statutes and rules needed to improve equity and 36.7 quality in and to simplify, clarify, and reduce the complexity 36.8 of the kindergarten through grade 12 education funding system. 36.9 The task force shall consider at least the following in 36.10 recommending changes in statutes and rules: 36.11 (1) the extent to which funding system and related 36.12 statutory and rule provisions are easily read and understood by 36.13 the public; 36.14 (2) the extent to which the funding system can be 36.15 simplified; 36.16 (3) how to resolve funding disparities between students; 36.17 (4) how voters' funding decisions affect district equity; 36.18 (5) how to create more equitable per student education 36.19 funding, including funding for alternative learning centers, 36.20 contracted alternatives, and charter schools; 36.21 (6) the extent to which regional variations in cost and 36.22 differentials in market-based wages affect school district 36.23 costs; 36.24 (7) how to define compensatory revenue to most effectively 36.25 meet the academic needs of students in attendance areas of high 36.26 concentrations of poverty; 36.27 (8) how to equitably distribute integration revenue based 36.28 on the level of services provided under the integration plan; 36.29 and 36.30 (9) the extent to which the legislative process of funding 36.31 kindergarten through grade 12 education can be improved to 36.32 provide school districts with timely, accurate information 36.33 concerning legislative decisions. 36.34 (c) The task force shall seek the input of various 36.35 kindergarten through grade 12 education stakeholders and the 36.36 general public in making its recommendations. The task force 37.1 may call upon the department of children, families, and learning 37.2 to assist with its duties. Upon submission of its 37.3 recommendations, the task force expires. 37.4 [EFFECTIVE DATE.] This section is effective the day 37.5 following final enactment. 37.6 Sec. 49. [DECLINING PUPIL UNIT AID; YELLOW MEDICINE EAST.] 37.7 Subdivision 1. [FISCAL YEAR 2002.] For fiscal year 2002, 37.8 independent school district No. 2190, Yellow Medicine East, is 37.9 eligible for tornado impact declining enrollment aid equal to 37.10 $156,000. 37.11 Subd. 2. [FISCAL YEAR 2003.] For fiscal year 2003, 37.12 independent school district No. 2190, Yellow Medicine East, is 37.13 eligible for tornado impact declining enrollment aid equal to 75 37.14 percent of the fiscal year 2002 appropriation in subdivision 1. 37.15 Subd. 3. [FISCAL YEAR 2004.] For fiscal year 2004, 37.16 independent school district No. 2190, Yellow Medicine East, is 37.17 eligible for tornado impact declining enrollment aid equal to 50 37.18 percent of the fiscal year 2002 appropriation in subdivision 1. 37.19 Subd. 4. [FISCAL YEAR 2005.] For fiscal year 2005, 37.20 independent school district No. 2190, Yellow Medicine East, is 37.21 eligible for tornado impact declining enrollment aid equal to 25 37.22 percent of the fiscal year 2002 appropriation in subdivision 1. 37.23 Sec. 50. [SUPPLEMENTAL REVENUE; ANOKA AND DULUTH.] 37.24 For fiscal year 2002, the supplemental revenue for 37.25 independent school districts Nos. 11, Anoka, and 709, Duluth, is 37.26 increased by $500,000. 37.27 Sec. 51. [DIRECTION TO COMMISSIONER; TRANSPORTATION.] 37.28 (a) The commissioner of children, families, and learning 37.29 must collect from each school district data needed to examine 37.30 pupil transportation costs for the following ridership 37.31 categories: regular, hazardous, disabled, nonpublic, charter 37.32 schools, desegregation, noon kindergarten, learning year summer 37.33 and summer school, between schools, late activity, enrollment 37.34 options, student activity trips, safety requirements, and bus 37.35 replacement. 37.36 (b) The commissioner, by February 15, 2002, must prepare a 38.1 report on per pupil transportation costs to the legislative 38.2 committees responsible for kindergarten through grade 12 38.3 education finance. The report must: 38.4 (1) identify funding inequities; 38.5 (2) make recommendations for providing equitable 38.6 transportation funding; 38.7 (3) consider changes in student demographics, attendance 38.8 patterns, declining enrollment, district topography, labor and 38.9 fuel costs; and 38.10 (4) examine whether public transportation options can be 38.11 used more effectively to provide transportation services. 38.12 The commissioner must consult with transportation professionals 38.13 throughout the state in developing and preparing the report. 38.14 Sec. 52. [AID REPAYMENT; LITTLE FALLS.] 38.15 Notwithstanding any law to the contrary, the department of 38.16 children, families, and learning must allow independent school 38.17 district No. 482, Little Falls, to repay over a five-year period 38.18 state aid overpayments for fiscal years 1998 and 1999 resulting 38.19 from the district's miscalculation of pupil units for those 38.20 years. If this aid has already been recaptured, the department 38.21 shall make a positive aid adjustment of $500,000 in the July 15, 38.22 2001, aid payment to the district. The school district must 38.23 repay the aid in equal payments of $100,000 each payable on June 38.24 20. Payments must begin on June 20, 2002. 38.25 Sec. 53. [REFERENDUM CONVERSION ADJUSTMENT FOR INTEREST 38.26 EARNED.] 38.27 (a) The commissioner of children, families, and learning 38.28 shall calculate the change in estimated net interest earnings 38.29 for each district attributable to the repeal of the general 38.30 education levy as provided in this section. 38.31 (b) The interest calculations must assume an annual 38.32 interest rate of five percent, and must be based on the amount 38.33 by which the district's cumulative net general education levy 38.34 receipts for taxes payable in 2000, based on the assumptions 38.35 specified in Minnesota Statutes, section 127A.45, subdivision 8, 38.36 exceeds the cumulative amount that would have been guaranteed 39.1 for each payment in fiscal year 2001, as defined in Minnesota 39.2 Statutes, section 127A.45, subdivisions 2 and 3, calculated 39.3 using data as of the June 20, 2001, payment, and assuming that 39.4 the repeal of the general education levy was effective for 39.5 fiscal year 2001. The commissioner shall divide the interest 39.6 revenue in fiscal year 2001 by the number of resident marginal 39.7 cost pupil units in fiscal year 2001. 39.8 (c) The amount calculated in paragraph (a) may be converted 39.9 to an additional referendum allowance according to Minnesota 39.10 Statutes, section 126C.17, subdivision 11. 39.11 (d) Any additional referendum allowance as a result of a 39.12 conversion under paragraph (b) shall be included in the 39.13 referendum conversion allowance used to determine the referendum 39.14 allowance limit under Minnesota Statutes, section 126C.17, 39.15 subdivision 2. 39.16 [EFFECTIVE DATE.] This section is effective for revenue for 39.17 fiscal year 2003 and later. 39.18 Sec. 54. [APPROPRIATIONS.] 39.19 Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND 39.20 LEARNING.] The sums indicated in this section are appropriated 39.21 from the general fund to the department of children, families, 39.22 and learning for the fiscal years designated. 39.23 Subd. 2. [GENERAL AND SUPPLEMENTAL EDUCATION AID.] For 39.24 general and supplemental education aid: 39.25 $3,364,596,000 ..... 2002 39.26 $3,506,910,000 ..... 2003 39.27 The 2002 appropriation includes $318,932,000 for 2001 and 39.28 $3,045,664,000 for 2002. 39.29 The 2003 appropriation includes $338,407,000 for 2002 and 39.30 $3,168,503,000 for 2003. 39.31 Subd. 3. [TRANSPORTATION AID FOR ENROLLMENT OPTIONS.] For 39.32 transportation of pupils attending post-secondary institutions 39.33 according to Minnesota Statutes, section 124D.09, or for 39.34 transportation of pupils attending nonresident districts 39.35 according to Minnesota Statutes, sections 124D.03 and 124D.10: 39.36 $70,000 ..... 2002 40.1 $80,000 ..... 2003 40.2 Any balance in the first year does not cancel but is 40.3 available in the second year. 40.4 Subd. 4. [ABATEMENT AID.] For abatement aid according to 40.5 Minnesota Statutes, section 127A.49: 40.6 $7,098,000 ..... 2002 40.7 $7,692,000 ..... 2003 40.8 The 2002 appropriation includes $640,000 for 2001 and 40.9 $6,458,000 for 2002. 40.10 The 2003 appropriation includes $717,000 for 2002 and 40.11 $6,975,000 for 2003. 40.12 Subd. 5. [NONPUBLIC PUPIL AID.] For nonpublic pupil 40.13 education aid according to Minnesota Statutes, sections 123.79 40.14 and 123B.40 to 123B.43: 40.15 $14,099,000 ..... 2002 40.16 $16,472,000 ..... 2003 40.17 The 2002 appropriation includes $1,330,000 for 2001 and 40.18 $12,769,000 for 2002. 40.19 The 2003 appropriation includes $1,419,000 for 2002 and 40.20 $15,053,000 for 2003. 40.21 Subd. 6. [NONPUBLIC PUPIL TRANSPORTATION.] For nonpublic 40.22 pupil transportation aid under Minnesota Statutes, section 40.23 123B.92, subdivision 9: 40.24 $20,488,000 ..... 2002 40.25 $24,802,000 ..... 2003 40.26 The 2002 appropriation includes $2,000,000 for 2001 and 40.27 $18,488,000 for 2002. 40.28 The 2003 appropriation includes $2,054,000 for 2002 and 40.29 $22,748,000 for 2003. 40.30 Subd. 7. [CONSOLIDATION TRANSITION AID.] For districts 40.31 consolidating under Minnesota Statutes, section 123A.485: 40.32 $675,000 ..... 2002 40.33 $669,000 ..... 2003 40.34 The 2002 appropriation includes $44,000 for 2001 and 40.35 $631,000 for 2002. 40.36 The 2003 appropriation includes $70,000 for 2002 and 41.1 $599,000 for 2003. 41.2 Any balance in the first year does not cancel but is 41.3 available in the second year. 41.4 Subd. 8. [TORNADO IMPACT; YELLOW MEDICINE EAST.] For a 41.5 grant to independent school district No. 2190, Yellow Medicine 41.6 East, for tornado impact declining enrollment aid: 41.7 $156,000 ..... 2002 41.8 $117,000 ..... 2003 41.9 Subd. 9. [TORNADO IMPACT; ST. PETER.] For a grant to 41.10 independent school district No. 508, St. Peter, for tornado 41.11 impact declining enrollment aid: 41.12 $455,000 ..... 2002 41.13 This grant is in lieu of funds authorized under Laws 1999, 41.14 chapter 241, article 4, section 22. 41.15 Subd. 10. [ONE-ROOM SCHOOLHOUSE.] For a grant to 41.16 independent school district No. 690, Warroad, to operate the 41.17 Angle Inlet School: 41.18 $35,000 ..... 2002 41.19 $35,000 ..... 2003 41.20 This appropriation is one-time only. 41.21 Subd. 11. [TRANSPORTATION STUDY.] For the costs of the 41.22 transportation study in section 52: 41.23 $10,000 ..... 2002 41.24 Subd. 12. [AID REPAYMENT; LITTLE FALLS.] For a positive 41.25 aid adjustment for school district No. 482, Little Falls: 41.26 $500,000 ..... 2002 41.27 Sec. 55. [REPEALER.] 41.28 Subdivision 1. [EDUCATION REPEALERS.] (a) Minnesota 41.29 Statutes 2000, sections 124D.07; 126C.01, subdivision 10; 41.30 126C.16, subdivision 2; 126C.18; 126C.22; 126C.30; 126C.31; 41.31 126C.32; 126C.33; 126C.34; 126C.35; 126C.36; and 127A.44, are 41.32 repealed. 41.33 (b) Minnesota Statutes 2000, sections 126C.10, subdivisions 41.34 12 and 23; and 126C.17, subdivision 12, are repealed effective 41.35 for revenue for fiscal year 2002. 41.36 (c) Minnesota Statutes 2000, sections 126C.42, subdivisions 42.1 2 and 3; and 126C.47, are repealed effective for taxes payable 42.2 in 2002. 42.3 Subd. 2. [TAX BILL PROVISIONS; REPEALED WITHOUT 42.4 EFFECT.] Notwithstanding Minnesota Statutes, chapter 645, or any 42.5 other law to the contrary, article 2, sections 1, 5, 7, 9, 10, 42.6 20, 21, and 23 of House File 1 if enacted during the 2001 First 42.7 Special Session, are repealed and the provisions are without 42.8 effect. 42.9 [EFFECTIVE DATE.] Subdivision 2 is effective the day 42.10 following final enactment. 42.11 ARTICLE 2 42.12 EDUCATION EXCELLENCE 42.13 Section 1. [120A.415] [EXTENDED SCHOOL CALENDAR.] 42.14 A school board that offers licensed kindergarten through 42.15 grade 12 teachers the opportunity for more staff development 42.16 training and additional salary under section 122A.40, 42.17 subdivisions 7 and 7a, or 122A.41, subdivisions 4 and 4a, must 42.18 adopt as its school calendar a total of 240 days of student 42.19 instruction and staff development, of which the total number of 42.20 staff development days equals the difference between the total 42.21 number of days of student instruction and 240 days. A school 42.22 board may schedule additional staff development days throughout 42.23 the calendar year. 42.24 [EFFECTIVE DATE.] This section is effective for the 42.25 2001-2002 school year and thereafter. 42.26 Sec. 2. Minnesota Statutes 2000, section 120B.13, 42.27 subdivision 1, is amended to read: 42.28 Subdivision 1. [PROGRAM STRUCTURE; TRAINING PROGRAMS FOR 42.29 TEACHERS.] (a) The advanced placement and international 42.30 baccalaureate programs are well-established academic programs 42.31 for mature, academically-directed high school students. These 42.32 programs, in addition to providing academic rigor, offer sound 42.33 curricular design, accountability, comprehensive external 42.34 assessment, feedback to students and teachers, and the 42.35 opportunity for high school students to compete academically on 42.36 a global level. Advanced placement and international 43.1 baccalaureate programs allow students to leave high school with 43.2 the academic skills and self-confidence to succeed in college 43.3 and beyond. The advanced placement and international 43.4 baccalaureate programs help provide Minnesota students with 43.5 world-class educational opportunity. 43.6 (b) Critical to schools' educational success is ongoing 43.7 advanced placement/international baccalaureate-approved teacher 43.8 training. A secondary teacher assigned by a district to teach 43.9 an advanced placement or international baccalaureate course or 43.10 other interested educator may participate in a training program 43.11 offered by the college board or International Baccalaureate 43.12 North America, Inc. The state may pay a portion of the tuition, 43.13 room, and board costs a teacher or other interested educator 43.14 incurs in participating in a training program. The commissioner 43.15 shall determine application procedures and deadlines, and select 43.16 teachers and other interested educators to participate in the 43.17 training program. The procedures determined by the commissioner 43.18 shall, to the extent possible, ensure that advanced placement 43.19 and international baccalaureate courses become available in all 43.20 parts of the state and that a variety of course offerings are 43.21 available in school districts. This subdivision does not 43.22 prevent teacher or other interested educator participation in 43.23 training programs offered by the college board or International 43.24 Baccalaureate North America, Inc., when tuition is paid by a 43.25 source other than the state. 43.26 Sec. 3. [120B.15] [INVOLUNTARY CAREER TRACKING 43.27 PROHIBITED.] 43.28 A school district may develop grade-level curricula or 43.29 provide instruction that introduces students to various careers, 43.30 but must not require any curriculum, instruction, or 43.31 employment-related activity that obligates an elementary or 43.32 secondary student to involuntarily select a career, career 43.33 interest, employment goals, or related job training. 43.34 [EFFECTIVE DATE.] This section is effective the day 43.35 following final enactment. 43.36 Sec. 4. Minnesota Statutes 2000, section 120B.30, 44.1 subdivision 1, is amended to read: 44.2 Subdivision 1. [STATEWIDE TESTING.] (a) The commissioner, 44.3 with advice from experts with appropriate technical 44.4 qualifications and experience and stakeholders, shall include in 44.5 the comprehensive assessment system, for each grade level to be 44.6 tested, a test, which shall be aligned with the state's 44.7 graduation standards and administered annually to all students 44.8 in the third, fifth, seventh, and eighth grades. The 44.9 commissioner shall establish one or more months during which 44.10 schools shall administer the tests to students each school 44.11 year. Only Minnesota basic skills tests in reading, 44.12 mathematics, and writing shall fulfill students' basic skills 44.13 testing requirements for a passing state notation. The passing 44.14 scores of the state tests in reading and mathematics are the 44.15 equivalent of: 44.16 (1) 70 percent correct for students entering grade 9 in 44.17 1996; and 44.18 (2) 75 percent correct for students entering grade 9 in 44.19 1997 and thereafter, as based on the first uniform test 44.20 administration of February 1998. 44.21 Notwithstanding Minnesota Rules, part 3501.0050, subpart 2,44.22 at the written request of a parent or guardian, and with the44.23 recommendation of the student's teacher, a district may offer44.24 the test of basic requirements in reading, math, or writing to44.25 an individual student beginning in grade 5. The student must44.26 take the same test on the same date as administered to students44.27 in eighth grade or higher.(b) Third and, fifth, and seventh 44.28 grade test results shall be available to districts for 44.29 diagnostic purposes affecting student learning and district 44.30 instruction and curriculum, and for establishing educational 44.31 accountability. The commissioner must disseminate to the public 44.32 the third and, fifth, and seventh grade test results upon 44.33 receiving those results. 44.34 (b)(c) In addition, at the secondaryhigh school level, 44.35 districts shall assess student performance in all required 44.36 learning areas and selected required standards within each area 45.1 of the profile of learning. The testing instruments and, the 45.2 testing process, and the order of administration shall be 45.3 determined by the commissioner. The results shall be aggregated 45.4 at the site and district level. The testing shall be45.5 administered beginning in the 1999-2000 school year and45.6 thereafter.45.7 (c)(d) The commissioner shall report school site and 45.8 school district student academic achievement levels of the 45.9 current and two immediately preceding school years. The report 45.10 shall include students' unweighted mean test scores in each 45.11 tested subject, the unweighted mean test scores of only those 45.12 students enrolled in the school by JanuaryOctober 1 of the 45.13 previouscurrent school year, and the unweighted test scores of 45.14 all students except those students receiving limited English 45.15 proficiency instruction. The report also shall record 45.16 separately, in proximity to the reported performance levels, the 45.17 percentage of students of each gender and the percentages of 45.18 students who are eligible to receive a free or reduced price 45.19 school meal, demonstrate limited English proficiency, are 45.20 identified as migrant students, are a member of a major ethnic 45.21 or racial population, or are eligible to receive special 45.22 education services. 45.23 (d)(e) In addition to the testing and reporting 45.24 requirements under paragraphs (a), (b), and(c), and (d), the 45.25 commissioner shall include the following components in the 45.26 statewide public reporting system: 45.27 (1) uniform statewide testing of all third, fifth, seventh, 45.28 eighth, and post-eighth grade students that provides exemptions, 45.29 only with parent or guardian approval, for those very few 45.30 students for whom the student's individual education plan team 45.31 under sections 125A.05 and 125A.06, determines that the student 45.32 is incapable of taking a statewide test, or for a limited 45.33 English proficiency student under section 124D.59, subdivision 45.34 2, if the student has been in the United States for fewer than 45.35 12 months and for whom special language barriers exist, such as 45.36 the student's native language does not have a written form or 46.1 the district does not have access to appropriate interpreter 46.2 services for the student's native language; 46.3 (2) educational indicators that can be aggregated and 46.4 compared across school districts and across time on a statewide 46.5 basis, including average daily attendance, high school 46.6 graduation rates, and high school drop-out rates by age and 46.7 grade level; 46.8 (3) students' scores on the American College Test; and 46.9 (4) participation in the National Assessment of Educational 46.10 Progress so that the state can benchmark its performance against 46.11 the nation and other states, and, where possible, against other 46.12 countries, and contribute to the national effort to monitor 46.13 achievement. 46.14 (e)(f) Districts must report exemptions under paragraph 46.15 (d)(e), clause (1), to the commissioner consistent with a 46.16 format provided by the commissioner. 46.17 [EFFECTIVE DATE.] This section is effective the day 46.18 following final enactment except that the seventh grade testing 46.19 requirement applies to the 2002-2003 school year and later. 46.20 Sec. 5. Minnesota Statutes 2000, section 120B.35, is 46.21 amended to read: 46.22 120B.35 [STUDENT ACADEMIC ACHIEVEMENT LEVELSAND PROGRESS.] 46.23 Subdivision 1. [ADEQUATE YEARLY PROGRESS OF SCHOOLS AND 46.24 STUDENTS.] The commissioner must develop and implement a system 46.25 for measuring and reporting academic achievement and individual 46.26 student progress, consistent with the statewide educational 46.27 accountability and reporting system. The components of the 46.28 system must measure the adequate yearly progress of schools and 46.29 individual students: students' current achievement in schools 46.30 under subdivision 2; and individual students' educational 46.31 progress over time under subdivision 3. The system also must 46.32 include statewide measures of student academic achievement that 46.33 identify schools with high levels of achievement, and also 46.34 schools with low levels of achievement that need improvement. 46.35 When determining a school's effect, the data must include both 46.36 statewide measures of student achievement and, to the extent 47.1 annual tests are administered, indicators of achievement growth 47.2 that take into account a student's prior achievement. 47.3 Indicators of achievement and prior achievement must be based on 47.4 highly reliable statewide or districtwide assessments. 47.5 Indicators that take into account a student's prior achievement 47.6 must not be used to disregard a school's low achievement or to 47.7 exclude a school from a program to improve low achievement 47.8 levels. The commissioner by January 15, 2002, must submit a 47.9 plan for integrating these components to the chairs of the 47.10 legislative committees having policy and budgetary 47.11 responsibilities for elementary and secondary education. 47.12 Subd. 2. [STUDENT ACADEMIC ACHIEVEMENT.] (a) Each school 47.13 year, a school district must determine if the student 47.14 achievement levels at each school site meet state and local 47.15 expectations. If student achievement levels at a school site do 47.16 not meet state and local expectations and the site has not made 47.17 adequate yearly progress for two out of threeconsecutive school 47.18 years, beginning with the 2000-20012001-2002 school year, the 47.19 district must work with the school site to adopt a plan to raise 47.20 student achievement levels to meet state and local 47.21 expectations. The legislature will determine state expectations47.22 after receiving a recommendation fromThe commissioner of 47.23 children, families, and learning shall establish student 47.24 academic achievement levels. 47.25 (b) School sites identified as not meeting expectations 47.26 must develop continuous improvement plans in order to meet state 47.27 and local expectations for student academic achievement. The 47.28 department, at a district's request, must assist the district 47.29 and the school site in developing a plan to improve student 47.30 achievement. The plan must include parental involvement 47.31 components. 47.32 (c) The commissioner must: 47.33 (1) provide assistance to school sites and districts 47.34 identified as not meeting expectations; and 47.35 (2) provide technical assistance to schools that integrate 47.36 student progress measures under subdivision 3 in the school 48.1 continuous improvement plan. 48.2 (d) The commissioner shall establish and maintain a 48.3 continuous improvement Web site designed to make data on every 48.4 school and district available to parents, teachers, 48.5 administrators, community members, and the general public. 48.6 Subd. 3. [STUDENT PROGRESS ASSESSMENT.] (a) The 48.7 educational assessment system component measuring individual 48.8 students' educational progress must be based, to the extent 48.9 annual tests are administered, on indicators of achievement 48.10 growth that show an individual student's prior achievement. 48.11 Indicators of achievement and prior achievement must be based on 48.12 highly reliable statewide or districtwide assessments. 48.13 (b) The commissioner must identify effective models for 48.14 measuring individual student progress that enable a school 48.15 district or school site to perform gains-based analysis, 48.16 including evaluating the effects of the teacher, school, and 48.17 school district on student achievement over time. At least one 48.18 model must be a "value-added" assessment model that reliably 48.19 estimates those effects for classroom settings where a single 48.20 teacher teaches multiple subjects to the same group of students, 48.21 for team teaching arrangements, and for other teaching 48.22 circumstances. 48.23 (c) If a district has an accountability plan that includes 48.24 gains-based analysis or "value-added" assessment, the 48.25 commissioner shall, to the extent practicable, incorporate those 48.26 measures in determining whether the district or school site 48.27 meets expectations. The department must coordinate with the 48.28 district in evaluating school sites and continuous improvement 48.29 plans, consistent with best practices. 48.30 Subd. 4. [IMPROVING SCHOOLS.] Consistent with the 48.31 requirements of this section, the commissioner of children, 48.32 families, and learning must establish a second achievement 48.33 benchmark to identify improving schools. The commissioner must 48.34 recommend to the legislature by February 15, 2002, indicators in 48.35 addition to the achievement benchmark for identifying improving 48.36 schools, including an indicator requiring a school to 49.1 demonstrate ongoing successful use of best teaching practices. 49.2 [EFFECTIVE DATE.] This section is effective the day 49.3 following final enactment. 49.4 Sec. 6. Minnesota Statutes 2000, section 121A.582, is 49.5 amended to read: 49.6 121A.582 [STUDENT DISCIPLINE; REASONABLE FORCE.] 49.7 Subdivision 1. [REASONABLE FORCE STANDARD.] (a) A 49.8 teacher or school principal, in exercising the person's lawful 49.9 authority, may use reasonable force when it is necessary under 49.10 the circumstances to correct or restrain a student or prevent 49.11 bodily harm or death to another. 49.12 (b) A school employee, school bus driver, or other agent of 49.13 a district, in exercising the person's lawful authority, may use 49.14 reasonable force when it is necessary under the circumstances to 49.15 restrain a student or prevent bodily harm or death to another. 49.16 (c) Paragraphs (a) and (b) do not authorize conduct 49.17 prohibited under sections 121A.58 and 121A.67. 49.18 Subd. 2. [CIVIL LIABILITY.] (a) A teacher or school 49.19 principal who, in the exercise of the person's lawful authority, 49.20 uses reasonable force under the standard in subdivision 1, 49.21 paragraph (a), has a defense against a civil action for damages 49.22 under section 123B.25. 49.23 (b) A school employee, bus driver, or other agent of a 49.24 district who, in the exercise of the person's lawful authority, 49.25 uses reasonable force under the standard in subdivision 1, 49.26 paragraph (b), has a defense against a civil action for damages 49.27 under section 123B.25. 49.28 Subd. 3. [CRIMINAL PROSECUTION.] (a) A teacher or school 49.29 principal who, in the exercise of the person's lawful authority, 49.30 uses reasonable force under the standard in subdivision 1, 49.31 paragraph (a), has a defense against a criminal prosecution 49.32 under section 609.06, subdivision 1. 49.33 (b) A school employee, bus driver, or other agent of a 49.34 district who, in the exercise of the person's lawful authority, 49.35 uses reasonable force under the standard in subdivision 1, 49.36 paragraph (b), has a defense against a criminal prosecution 50.1 under section 609.06, subdivision 1. 50.2 Subd. 4. [SUPPLEMENTARY RIGHTS AND DEFENSES.] Any right or 50.3 defense in this section is supplementary to those specified in 50.4 section 121A.58, 121A.67, 123B.25, or 609.06, subdivision 1. 50.5 [EFFECTIVE DATE.] This section is effective the day 50.6 following final enactment. 50.7 Sec. 7. Minnesota Statutes 2000, section 122A.18, 50.8 subdivision 2, is amended to read: 50.9 Subd. 2. [TEACHER AND SUPPORT PERSONNEL QUALIFICATIONS.] 50.10 (a) The board of teaching must issue licenses under its 50.11 jurisdiction to persons the board finds to be qualified and 50.12 competent for their respective positions. 50.13 (b) The board must require a person to successfully 50.14 complete an examination of skills in reading, writing, and 50.15 mathematics before being granted an initial teaching license to 50.16 provide direct instruction to pupils in prekindergarten, 50.17 elementary, secondary, or special education programs. The board 50.18 must require colleges and universities offering a board approved 50.19 teacher preparation program to provide remedial assistance that 50.20 includes a formal diagnostic component to persons enrolled in 50.21 their institution who did not achieve a qualifying score on the 50.22 skills examination, including those for whom English is a second 50.23 language. The colleges and universities must provide assistance 50.24 in the specific academic areas of deficiency in which the person 50.25 did not achieve a qualifying score. School districts must 50.26 provide similar, appropriate, and timely remedial assistance 50.27 that includes a formal diagnostic component and mentoring to 50.28 those persons employed by the district who completed their 50.29 teacher education program outside the state of Minnesota, 50.30 received a one-year license to teach in Minnesota and did not 50.31 achieve a qualifying score on the skills examination, including 50.32 those persons for whom English is a second language. The board 50.33 of teaching shall report annually to the education committees of 50.34 the legislature on the total number of teacher candidates during 50.35 the most recent school year taking the skills examination, the 50.36 number who achieve a qualifying score on the examination, the 51.1 number who do not achieve a qualifying score on the examination, 51.2 the distribution of all candidates' scores, the number of 51.3 candidates who have taken the examination at least once before, 51.4 and the number of candidates who have taken the examination at 51.5 least once before and achieve a qualifying score. 51.6 (c) A person who has completed an approved teacher 51.7 preparation program and obtained a one-year license to teach, 51.8 but has not successfully completed the skills examination, may 51.9 renew the one-year license for two additional one-year periods. 51.10 Each renewal of the one-year license is contingent upon the 51.11 licensee: 51.12 (1) providing evidence of participating in an approved 51.13 remedial assistance program provided by a school district or 51.14 post-secondary institution that includes a formal diagnostic 51.15 component in the specific areas in which the licensee did not 51.16 obtain qualifying scores; and 51.17 (2) attempting to successfully complete the skills 51.18 examination during the period of each one-year license. 51.19 (d) The board of teaching must grant continuing licenses 51.20 only to those persons who have met board criteria for granting a 51.21 continuing license, which includes successfully completing the 51.22 skills examination in reading, writing, and mathematics. 51.23 (e) All colleges and universities approved by the board of 51.24 teaching to prepare persons for teacher licensure must include 51.25 in their teacher preparation programs a common core of teaching 51.26 knowledge and skills to be acquired by all persons recommended 51.27 for teacher licensure. This common core shall meet the 51.28 standards developed by the interstate new teacher assessment and 51.29 support consortium in its 1992 "model standards for beginning 51.30 teacher licensing and development." Amendments to standards 51.31 adopted under this paragraph are covered by chapter 14. The 51.32 board of teaching shall report annually to the education 51.33 committees of the legislature on the performance of teacher 51.34 candidates on common core assessments of knowledge and skills 51.35 under this paragraph during the most recent school year. 51.36 [EFFECTIVE DATE.] This section is effective for the 52.1 2001-2002 school year and later. 52.2 Sec. 8. Minnesota Statutes 2000, section 122A.24, 52.3 subdivision 3, is amended to read: 52.4 Subd. 3. [PROGRAM APPROVAL.] (a) The board of teaching 52.5 must approve alternative preparation programs based on criteria 52.6 adopted by the board. 52.7 (b) An alternative preparation program at a school52.8 district, group of schools, or an education district must be52.9 affiliated with a post-secondary institution that has a teacher52.10 preparation program.The board shall permit demonstration of 52.11 licensure competencies in school-based and other nontraditional 52.12 pathways to teacher licensure. 52.13 Sec. 9. Minnesota Statutes 2000, section 122A.25, is 52.14 amended by adding a subdivision to read: 52.15 Subd. 4. [BACKGROUND CHECK.] A school district or charter 52.16 school shall provide the board of teaching with confirmation 52.17 that criminal background checks have been completed for all 52.18 nonlicensed community experts employed by the district or 52.19 charter school and approved by the board of teaching under this 52.20 section. 52.21 Sec. 10. Minnesota Statutes 2000, section 122A.40, 52.22 subdivision 7, is amended to read: 52.23 Subd. 7. [TERMINATION OF CONTRACT AFTER PROBATIONARY 52.24 PERIOD.] (a) A teacher who has completed a probationary period 52.25 in any district, and who has not been discharged or advised of a 52.26 refusal to renew the teacher's contract pursuant tounder 52.27 subdivision 5, shall elect to have a continuing contract with 52.28 such district where contract terms and conditions, including 52.29 salary and salary increases, are established based either on the 52.30 length of the school calendar or an extended school calendar 52.31 under section 120A.415. Thereafter, the teacher's contract must 52.32 remain in full force and effect, except as modified by mutual 52.33 consent of the board and the teacher, until terminated by a 52.34 majority roll call vote of the full membership of the board 52.35 prior to April 1 upon one of the grounds specified in 52.36 subdivision 9 or July 1 upon one of the grounds specified in 53.1 subdivision 10 or 11, or until the teacher is discharged 53.2 pursuant to subdivision 13, or by the written resignation of the 53.3 teacher submitted prior to April 1. If an agreement as to the 53.4 terms and conditions of employment for the succeeding school 53.5 year has not been adopted pursuant to the provisions of sections 53.6 179A.01 to 179A.25 prior to March 1, the teacher's right of 53.7 resignation is extended to the 30th calendar day following the 53.8 adoption of said contract in compliance with section 179A.20, 53.9 subdivision 5. Such written resignation by the teacher is 53.10 effective as of June 30 if submitted prior to that date and the 53.11 teachers' right of resignation for the school year then 53.12 beginning shall cease on July 15. Before a teacher's contract 53.13 is terminated by the board, the board must notify the teacher in 53.14 writing and state its ground for the proposed termination in 53.15 reasonable detail together with a statement that the teacher may 53.16 make a written request for a hearing before the board within 14 53.17 days after receipt of such notification. If the grounds are 53.18 those specified in subdivision 9 or 13, the notice must also 53.19 state a teacher may request arbitration under subdivision 15. 53.20 Within 14 days after receipt of this notification the teacher 53.21 may make a written request for a hearing before the board or an 53.22 arbitrator and it shall be granted upon reasonable notice to the 53.23 teacher of the date set for hearing, before final action is 53.24 taken. If no hearing is requested within such period, it shall 53.25 be deemed acquiescence by the teacher to the board's action. 53.26 Such termination shall take effect at the close of the school 53.27 year in which the contract is terminated in the manner 53.28 aforesaid. Such contract may be terminated at any time by 53.29 mutual consent of the board and the teacher and this section 53.30 does not affect the powers of a board to suspend, discharge, or 53.31 demote a teacher under and pursuant to other provisions of law. 53.32 (b) A teacher electing to have a continuing contract based 53.33 on the extended school calendar under section 120A.415 must 53.34 participate in staff development training under subdivision 7a 53.35 and shall receive an increased base salary. 53.36 [EFFECTIVE DATE.] This section is effective for the 54.1 2001-2002 school year and thereafter. 54.2 Sec. 11. Minnesota Statutes 2000, section 122A.40, is 54.3 amended by adding a subdivision to read: 54.4 Subd. 7a. [ADDITIONAL STAFF DEVELOPMENT AND SALARY.] (a) A 54.5 teacher electing to have a continuing contract based on the 54.6 extended school calendar under section 120A.415 must participate 54.7 in a total number of staff development days where the total 54.8 number of such days equals the difference between the total 54.9 number of days of student instruction and 240 days. Staff 54.10 development includes peer mentoring, peer gathering, continuing 54.11 education, professional development, or other training. A 54.12 school board may schedule such days throughout the calendar 54.13 year. Staff development programs provided during such days 54.14 shall enable teachers to achieve the staff development outcomes 54.15 under section 122A.60, subdivision 3. 54.16 (b) A public employer and the exclusive representative of 54.17 the teachers must include terms in the collective bargaining 54.18 agreement for all teachers who participate in additional staff 54.19 development days under paragraph (a) that increase base salaries. 54.20 [EFFECTIVE DATE.] This section is effective for the 54.21 2001-2002 school year and thereafter. 54.22 Sec. 12. Minnesota Statutes 2000, section 122A.41, 54.23 subdivision 4, is amended to read: 54.24 Subd. 4. [PERIOD OF SERVICE AFTER PROBATIONARY PERIOD; 54.25 DISCHARGE OR DEMOTION.] (a) After the completion of such 54.26 probationary period, without discharge, such teachers as are 54.27 thereupon reemployed shall continue in service and hold their 54.28 respective position during good behavior and efficient and 54.29 competent service and must not be discharged or demoted except 54.30 for cause after a hearing. The terms and conditions of a 54.31 teacher's employment contract, including salary and salary 54.32 increases, must be based either on the length of the school year 54.33 or an extended school calendar under section 120A.415. 54.34 (b) A probationary teacher is deemed to have been 54.35 reemployed for the ensuing school year, unless the school board 54.36 in charge of such school gave such teacher notice in writing 55.1 before July 1 of the termination of such employment. 55.2 (c) A teacher electing to have an employment contract based 55.3 on the extended school calendar under section 120A.415 must 55.4 participate in staff development training under subdivision 4a 55.5 and shall receive an increased base salary. 55.6 [EFFECTIVE DATE.] This section is effective for the 55.7 2001-2002 school year and thereafter. 55.8 Sec. 13. Minnesota Statutes 2000, section 122A.41, is 55.9 amended by adding a subdivision to read: 55.10 Subd. 4a. [ADDITIONAL STAFF DEVELOPMENT AND SALARY.] (a) A 55.11 teacher electing to have a continuing contract based on the 55.12 extended school calendar under section 120A.415 must participate 55.13 in a total number of staff development days where the total 55.14 number of such days equals the difference between the total 55.15 number of days of student instruction and 240 days. Staff 55.16 development includes peer mentoring, peer gathering, continuing 55.17 education, professional development, or other training. A 55.18 school board may schedule such days throughout the calendar 55.19 year. Staff development programs provided during such days 55.20 shall enable teachers to achieve the staff development outcomes 55.21 under section 122A.60, subdivision 3. 55.22 (b) A public employer and the exclusive representative of 55.23 the teachers must include terms in the collective bargaining 55.24 agreement for all teachers who participate in additional staff 55.25 development days under paragraph (a) that increase base salaries. 55.26 [EFFECTIVE DATE.] This section is effective for the 55.27 2001-2002 school year and thereafter. 55.28 Sec. 14. Minnesota Statutes 2000, section 122A.41, is 55.29 amended by adding a subdivision to read: 55.30 Subd. 5a. [PROBATIONARY PERIOD FOR PRINCIPALS HIRED 55.31 INTERNALLY.] A board and the exclusive representative of the 55.32 school principals in the district may negotiate a plan for a 55.33 probationary period of up to two school years for licensed 55.34 teachers employed by the board who are subsequently employed by 55.35 the board as a licensed school principal. 55.36 [EFFECTIVE DATE.] This section is effective for the 56.1 2001-2002 school year and following. 56.2 Sec. 15. Minnesota Statutes 2000, section 122A.41, 56.3 subdivision 7, is amended to read: 56.4 Subd. 7. [HEARING OF CHARGES AGAINST TEACHER.] The charges 56.5 against a teacher must be in writing and signed by the person 56.6 making the same and then filed with the secretary or clerk of 56.7 the school board having charge of the school in which the 56.8 teacher is employed. Before the school board , before56.9 discharging or demotingdischarges or demotes a teacher, must56.10 then accord the teacher against whom charges have been filed a56.11 full hearing and give to the teacher at least ten days' notice56.12 in writing of the time and place of such hearing. The notice56.13 may be served personally or sent by certified mail addressed to56.14 the teacher at the teacher's last known post office address.the 56.15 board must notify the teacher in writing and state in reasonable 56.16 detail its grounds for the proposed discharge or demotion, 56.17 together with a statement that the teacher may request in 56.18 writing within ten days after receiving the notice a hearing 56.19 before the board. The board may have the notice served 56.20 personally or may send it by certified mail addressed to the 56.21 teacher at the teacher's last known post office address. The 56.22 teacher, under subdivision 13, also may elect a hearing before 56.23 an arbitrator instead of the school board. Within ten days 56.24 after receiving the notice the teacher may request in writing a 56.25 hearing before the board or an arbitrator and it shall be 56.26 granted. The teacher must be given reasonable notice of the 56.27 time and place of the hearing before final action is taken. A 56.28 teacher who fails to request a hearing within ten days is 56.29 considered to acquiesce in the board's action. If the charge is 56.30 made by a person not connected with the school system the charge 56.31 may be disregarded by the school board. If the grounds are 56.32 those specified in subdivision 6, clause (1), (2), (3), or (4), 56.33 the notice must also state a teacher may request arbitration 56.34 under subdivision 13. At the hearing, the school board or 56.35 arbitrator shall hear all evidence that may be adduced in 56.36 support of the charges and for the teacher's defense to the 57.1 charges. Either party has the right to have a written record of 57.2 the hearing at the expense of the board and to have witnesses 57.3 subpoenaed and all witnesses so subpoenaed must be examined 57.4 under oath. Any member of the school board conducting such a 57.5 hearing has authority to issue subpoenas and to administer oaths 57.6 to witnesses. 57.7 [EFFECTIVE DATE.] This section is effective for the 57.8 2002-2003 school year and following. 57.9 Sec. 16. Minnesota Statutes 2000, section 122A.41, 57.10 subdivision 13, is amended to read: 57.11 Subd. 13. [HEARING AND DETERMINATION BY ARBITRATOR.] A 57.12 teacher against whom charges have been filed alleging any cause 57.13 for discharge or demotion specified in subdivision 6, clause 57.14 (1), (2), (3), or (4), may elect a hearing before an arbitrator 57.15 instead of the school board. The hearing is governed by this 57.16 subdivision. 57.17 (a) The teacher must make a written request for a hearing 57.18 before an arbitrator within ten days after receiving a written 57.19 notice of the filing of charges required by subdivision 7. 57.20 Failure to request a hearing before an arbitrator during this 57.21 period is considered acquiescence to a hearing beforethe 57.22 boardboard's action. 57.23 (b) If the teacher and the school board are unable to 57.24 mutually agree on an arbitrator, the board must request from the 57.25 bureau of mediation services a list of five persons to serve as 57.26 an arbitrator. If the teacher and the school board are unable 57.27 to mutually agree on an arbitrator from the list provided, the 57.28 parties shall alternately strike names from the list until the 57.29 name of one arbitrator remains. The person remaining after the 57.30 striking procedure must be the arbitrator. If the parties are 57.31 unable to agree on who shall strike the first name, the question 57.32 must be decided by a flip of a coin. The teacher and the board 57.33 must share equally the costs and fees of the arbitrator. 57.34 (c) The arbitrator shall determine, by a preponderance of 57.35 the evidence, whether the causes specified in subdivision 6, 57.36 clause (1), (2), (3), or (4), exist to support the proposed 58.1 discharge or demotion. A lesser penalty than discharge or 58.2 demotion may be imposed by the arbitrator only to the extent 58.3 that either party proposes such lesser penalty in the 58.4 proceeding. In making the determination, the arbitration 58.5 proceeding is governed by sections 572.11 to 572.17 and by the 58.6 collective bargaining agreement applicable to the teacher. 58.7 (d) An arbitration hearing conducted under this subdivision 58.8 is a meeting for preliminary consideration of allegations or 58.9 charges within the meaning of section 13D.05, subdivision 3, 58.10 paragraph (a), and must be closed, unless the teacher requests 58.11 it to be open. 58.12 (e) The arbitrator's decision is final and binding on the 58.13 parties, subject to sections 572.18 to 572.26. 58.14 [EFFECTIVE DATE.] This section is effective for the 58.15 2002-2003 school year and following. 58.16 Sec. 17. [122A.76] [BEST PRACTICES.] 58.17 "Best practices" means research-based proven practices. 58.18 Sec. 18. Minnesota Statutes 2000, section 123B.03, 58.19 subdivision 3, is amended to read: 58.20 Subd. 3. [DEFINITIONS.] For purposes of this section: 58.21 (a) "School" means a school as defined in section 120A.22, 58.22 subdivision 4, except a home-school, and includes a school 58.23 receiving tribal contract or grant school aid under section 58.24 124D.83; school, for the purposes of this section, also means a 58.25 service cooperative, a special education cooperative, or an 58.26 education district under Minnesota Statutes 1997 Supplement, 58.27 section 123.35, a charter school under section 124D.10, and a 58.28 joint powers district under section 471.59. 58.29 (b) "School hiring authority" means the school principal or 58.30 other person having general control and supervision of the 58.31 school. 58.32 Sec. 19. Minnesota Statutes 2000, section 124D.03, 58.33 subdivision 4, is amended to read: 58.34 Subd. 4. [DESEGREGATION DISTRICT TRANSFERS.] (a) This 58.35 subdivision applies to a transfer into or out of a district that 58.36 has a desegregation plan approved by the commissioner of 59.1 children, families, and learning. 59.2 (b) An application to transfer may be submitted at any time 59.3 for enrollment beginning at any time. 59.4 (c) The parent or guardian of a pupil who is a resident of59.5 a district that has a desegregation plan must submit an59.6 application to the resident district. If the district accepts59.7 the application, it must forward the application to the59.8 nonresident district.59.9 (d) The parent or guardian of a pupil who applies for59.10 enrollment in a nonresident district that has a desegregation59.11 plan must submit an application to the nonresident district.59.12 (e) Each district must accept or reject an application it59.13 receives and notify the parent or guardian in writing within 3059.14 calendar days of receiving the application. A notification of59.15 acceptance must include the date enrollment can begin.59.16 (f) If an application is rejected, the district must state59.17 the reason for rejection in the notification. If a district59.18 that has a desegregation plan rejects an application for a59.19 reason related to the desegregation plan, the district must59.20 state with specificity how acceptance of the application would59.21 result in noncompliance with department of children, families,59.22 and learning rules with respect to the school or program for59.23 which application was made.59.24 (g) If an application is accepted, the parent or guardian59.25 must notify the nonresident district in writing within 1559.26 calendar days of receiving the acceptance whether the pupil59.27 intends to enroll in the nonresident district. Notice of59.28 intention to enroll obligates the pupil to enroll in the59.29 nonresident district, unless the boards of the resident and59.30 nonresident districts agree otherwise. If a parent or guardian59.31 does not notify the nonresident district, the pupil may not59.32 enroll in that nonresident district at that time, unless the59.33 boards of the resident and nonresident district agree otherwise.59.34 (h) Within 15 calendar days of receiving the notice from59.35 the parent or guardian, the nonresident district shall notify59.36 the resident district in writing of the pupil's intention to60.1 enroll in the nonresident district.60.2 (i)A pupil enrolled in a nonresident district under this60.3 subdivisiona desegregation plan approved by the commissioner of 60.4 children, families, and learning is not required to make annual 60.5 or periodic application for enrollment but may remain enrolled 60.6 in the same district. A pupil may transfer to the resident 60.7 district at any time. 60.8 (d) Section 124D.03, subdivision 2, applies to a transfer 60.9 into or out of a district with a desegregation plan. 60.10 (j) A pupil enrolled in a nonresident district and applying60.11 to transfer into or out of a district that has a desegregation60.12 plan must follow the procedures of this subdivision. For the60.13 purposes of this type of transfer, "resident district" means the60.14 nonresident district in which the pupil is enrolled at the time60.15 of application.60.16 (k) A district that has a desegregation plan approved by60.17 the commissioner must accept or reject each individual60.18 application in a manner that will enable compliance with its60.19 desegregation plan.60.20 Sec. 20. Minnesota Statutes 2000, section 124D.10, is 60.21 amended by adding a subdivision to read: 60.22 Subd. 3a. [CONFLICT OF INTEREST.] (a) A member of a 60.23 charter school board of directors is prohibited from serving as 60.24 a member of the board of directors or as an employee or agent of 60.25 or a contractor with a for-profit entity with whom the charter 60.26 school contracts, directly or indirectly, for professional 60.27 services, goods, or facilities. A violation of this prohibition 60.28 renders a contract voidable at the option of the commissioner. 60.29 A member of a charter school board of directors who violates 60.30 this prohibition shall be individually liable to the charter 60.31 school for any damage caused by the violation. 60.32 (b) An individual may serve as a member of the board of 60.33 directors if no conflict of interest under paragraph (a) exists. 60.34 (c) A member of a charter school board of directors that 60.35 serves as a member of the board of directors or as an employee 60.36 or agent of or a contractor with a nonprofit entity with whom 61.1 the charter school contracts, directly or indirectly, for 61.2 professional services, goods, or facilities, must disclose all 61.3 potential conflicts to the commissioner. 61.4 (d) The conflict of interest provisions under this 61.5 subdivision do not apply to compensation paid to a teacher 61.6 employed by the charter school who also serves as a member of 61.7 the board of directors. 61.8 (e) The conflict of interest provisions under this 61.9 subdivision do not apply to a teacher who provides services to a 61.10 charter school through a cooperative formed under chapter 308A 61.11 when the teacher also serves on the charter school board of 61.12 directors. 61.13 [EFFECTIVE DATE.] This section is effective for the 61.14 2001-2002 school year and following. 61.15 Sec. 21. Minnesota Statutes 2000, section 124D.10, 61.16 subdivision 4, is amended to read: 61.17 Subd. 4. [FORMATION OF SCHOOL.] (a) A sponsor may 61.18 authorize one or more licensed teachers under section 122A.18, 61.19 subdivision 1, to operate a charter school subject to approval 61.20 by the commissioner. A board must vote on charter school 61.21 application for sponsorship no later than 90 days after 61.22 receiving the application. After 90 days, the applicant may 61.23 apply to the commissioner. If a board elects not to sponsor a 61.24 charter school, the applicant may appeal the board's decision to 61.25 the commissioner. If the commissioner authorizes the school,61.26 the commissioner must sponsor the school according to this61.27 sectionThe commissioner may elect to sponsor the charter school 61.28 or assist the applicant in finding an eligible sponsor. The 61.29 school must be organized and operated as a cooperative under 61.30 chapter 308A or nonprofit corporation under chapter 317A and the 61.31 provisions under the applicable chapter shall apply to the 61.32 school except as provided in this section. Notwithstanding 61.33 sections 465.717 and 465.719, a school district may create a 61.34 corporation for the purpose of creating a charter school. 61.35 (b) Before the operators may form and operate a school, the 61.36 sponsor must file an affidavit with the commissioner stating its 62.1 intent to authorize a charter school. The affidavit must state 62.2 the terms and conditions under which the sponsor would authorize 62.3 a charter school. The commissioner must approve or disapprove 62.4 the sponsor's proposed authorization within 60 days of receipt 62.5 of the affidavit. Failure to obtain commissioner approval 62.6 precludes a sponsor from authorizing the charter school that was 62.7 the subject of the affidavit. 62.8 (c) The operators authorized to organize and operate a 62.9 school, before entering into a contract or other agreement for 62.10 professional or other services, goods, or facilities, must hold62.11 an election for members of the school's board of directors in a62.12 timely manner after the school is operatingincorporate as a 62.13 cooperative under chapter 308A or as a nonprofit corporation 62.14 under chapter 317A and must establish a board of directors 62.15 composed of at least five members until a timely election for 62.16 members of the charter school board of directors is held 62.17 according to the school's articles and bylaws. A charter school 62.18 board of directors must be composed of at least five members. 62.19 Any staff members who are employed at the school, including 62.20 teachers providing instruction under a contract with a 62.21 cooperative, and all parents of children enrolled in the school 62.22 may participate in the election for members of the school's 62.23 board of directors. Licensed teachers employed at the school, 62.24 including teachers providing instruction under a contract with a 62.25 cooperative, must be a majority of the members of the board of 62.26 directors before the school completes its third year of 62.27 operation, unless the commissioner waives the requirement 62.28 for the schoola majority of licensed teachers on the board. A62.29 provisional board may operate before the election of the62.30 school's board of directors.Board of director meetings must 62.31 comply with chapter 13D. 62.32 (d) The granting or renewal of a charter by a sponsoring 62.33 entity must not be conditioned upon the bargaining unit status 62.34 of the employees of the school. 62.35 (e) The commissioner annually must provide timely financial 62.36 management training to newly elected members of a charter school 63.1 board of directors and ongoing training to other members of a 63.2 charter school board of directors. Training must address ways 63.3 to: 63.4 (1) proactively assess opportunities for a charter school 63.5 to maximize all available revenue sources; 63.6 (2) establish and maintain complete, auditable records for 63.7 the charter school; 63.8 (3) establish proper filing techniques; 63.9 (4) document formal actions of the charter school, 63.10 including meetings of the charter school board of directors; 63.11 (5) properly manage and retain charter school and student 63.12 records; 63.13 (6) comply with state and federal payroll recordkeeping 63.14 requirements; and 63.15 (7) address other similar factors that facilitate 63.16 establishing and maintaining complete records on the charter 63.17 school's operations. 63.18 [EFFECTIVE DATE.] This section is effective for the 63.19 2001-2002 school year and later. 63.20 Sec. 22. Minnesota Statutes 2000, section 124D.10, is 63.21 amended by adding a subdivision to read: 63.22 Subd. 6a. [AUDIT REPORT.] The charter school must submit 63.23 an audit report to the commissioner by December 31 each year. 63.24 The charter school, with the assistance of the auditor 63.25 conducting the audit, must include with the report a copy of all 63.26 charter school agreements for corporate management services. If 63.27 the entity that provides the professional services to the 63.28 charter school is exempt from taxation under section 501 of the 63.29 Internal Revenue Code of 1986, that entity must file with the 63.30 commissioner by February 15 a copy of the annual return required 63.31 under section 6033 of the Internal Revenue Code of 1986. If the 63.32 commissioner receives as part of the audit report a management 63.33 letter indicating that a material weakness exists in the 63.34 financial reporting systems of a charter school, the charter 63.35 school must submit a written report to the commissioner 63.36 explaining how the material weakness will be resolved. Upon the 64.1 request of an individual, the charter school must make available 64.2 in a timely fashion the minutes of meetings of members, the 64.3 board of directors, and committees having any of the authority 64.4 of the board of directors, and statements showing the financial 64.5 result of all operations and transactions affecting income and 64.6 surplus during the school's last annual accounting period and a 64.7 balance sheet containing a summary of its assets and liabilities 64.8 as of the closing date of the accounting period. 64.9 [EFFECTIVE DATE.] This section is effective for the 64.10 2001-2002 school year and later. 64.11 Sec. 23. Minnesota Statutes 2000, section 124D.10, 64.12 subdivision 8, is amended to read: 64.13 Subd. 8. [STATE AND LOCAL REQUIREMENTS.] (a) A charter 64.14 school shall meet all applicable state and local health and 64.15 safety requirements. 64.16 (b) A school sponsored by a school board may be located in 64.17 any district, unless the school board of the district of the 64.18 proposed location disapproves by written resolution. If such a64.19 board denies a request to locate within its boundaries a charter64.20 school sponsored by another school board, the sponsoring school64.21 board may appeal to the commissioner. If the commissioner64.22 authorizes the school, the commissioner must sponsor the school.64.23 (c) A charter school must be nonsectarian in its programs, 64.24 admission policies, employment practices, and all other 64.25 operations. A sponsor may not authorize a charter school or 64.26 program that is affiliated with a nonpublic sectarian school or 64.27 a religious institution. 64.28 (d) Charter schools must not be used as a method of 64.29 providing education or generating revenue for students who are 64.30 being home-schooled. 64.31 (e) The primary focus of a charter school must be to 64.32 provide a comprehensive program of instruction for at least one 64.33 grade or age group from five through 18 years of age. 64.34 Instruction may be provided to people younger than five years 64.35 and older than 18 years of age. 64.36 (f) A charter school may not charge tuition. 65.1 (g) A charter school is subject to and must comply with 65.2 chapter 363 and section 121A.04. 65.3 (h) A charter school is subject to and must comply with the 65.4 Pupil Fair Dismissal Act, sections 121A.40 to 121A.56, and the 65.5 Minnesota Public School Fee Law, sections 123B.34 to 123B.39. 65.6 (i) A charter school is subject to the same financial 65.7 audits, audit procedures, and audit requirements as a district. 65.8 Audits must be conducted in compliance with generally accepted 65.9 governmental auditing standards, the Federal Single Audit Act, 65.10 if applicable, and section 6.65. A charter school is subject to 65.11 and must comply with sections 15.054; 118A.01; 118A.02; 118A.03; 65.12 118A.04; 118A.05; 118A.06; 123B.52, subdivision 5; 471.38; 65.13 471.391; 471.392; 471.425; 471.87; 471.88, subdivisions 1, 2, 3, 65.14 4, 5, 6, 12, 13, and 15; 471.881; and 471.89. The audit must 65.15 comply with the requirements of sections 123B.75 to 123B.83, 65.16 except to the extent deviations are necessary because of the 65.17 program at the school. Deviations must be approved by the 65.18 commissioner. The department of children, families, and 65.19 learning, state auditor, or legislative auditor may conduct 65.20 financial, program, or compliance audits. A charter school 65.21 determined to be in statutory operating debt under sections 65.22 123B.81 to 123B.83 must submit a plan under section 123B.81, 65.23 subdivision 4. 65.24 (j) A charter school is a district for the purposes of tort 65.25 liability under chapter 466. 65.26 Sec. 24. Minnesota Statutes 2000, section 124D.10, 65.27 subdivision 15, is amended to read: 65.28 Subd. 15. [REVIEW AND COMMENT.] The department must review 65.29 and comment on the evaluation, by the sponsor, of the 65.30 performance of a charter school before the charter school's 65.31 contract is renewed. A sponsor shall monitor and evaluate the 65.32 fiscal and student performance of the school, and may for this 65.33 purpose annually assess the schoola charter school: (1) in its 65.34 first, second, or third year of operation up to $10$30 per 65.35 student up to a maximum of $3,500$10,000; and (2) in its fourth 65.36 or a subsequent year of operation up to $10 per student up to a 66.1 maximum of $3,500. The information for the review and comment 66.2 shall be reported by the sponsor to the commissioner of 66.3 children, families, and learning in a timely manner. 66.4 Periodically, the commissioner shall report trends or66.5 suggestions based on the evaluation of charter school contracts66.6 to the education committees of the state legislature.66.7 Sec. 25. Minnesota Statutes 2000, section 124D.10, is 66.8 amended by adding a subdivision to read: 66.9 Subd. 23a. [RELATED PARTY LEASE COSTS.] (a) A charter 66.10 school is prohibited from entering a lease of real property with 66.11 a related party as defined in this subdivision, unless the 66.12 lessor is a nonprofit corporation under chapter 317A or a 66.13 cooperative under chapter 308A, and the lease cost is reasonable 66.14 under section 124D.11, subdivision 4, clause (1). 66.15 (b) For purposes of this subdivision: 66.16 (1) A "related party" is an affiliate or close relative of 66.17 the other party in question, an affiliate of a close relative, 66.18 or a close relative of an affiliate. 66.19 (2) "Affiliate" means a person that directly, or indirectly 66.20 through one or more intermediaries, controls, or is controlled 66.21 by, or is under common control with, another person. 66.22 (3) "Close relative" means an individual whose relationship 66.23 by blood, marriage, or adoption to another individual is no more 66.24 remote than first cousin. 66.25 (4) "Person" means an individual or entity of any kind. 66.26 (5) "Control" includes the terms "controlling," "controlled 66.27 by," and "under common control with" and means the possession, 66.28 direct or indirect, of the power to direct or cause the 66.29 direction of the management, operations, or policies of a 66.30 person, whether through the ownership of voting securities, by 66.31 contract, or otherwise. 66.32 (c) A lease of real property to be used for a charter 66.33 school, not excluded in paragraph (b), must contain the 66.34 following statement: "This lease is subject to Minnesota 66.35 Statutes, section 124D.10, subdivision 23a." 66.36 (d) If a charter school enters into as lessee a lease with 67.1 a related party and the charter school subsequently closes, the 67.2 commissioner has the right to recover from the lessor any lease 67.3 payments in excess of those that are reasonable under section 67.4 124.11, subdivision 4, clause (1). 67.5 [EFFECTIVE DATE.] This section is effective the day 67.6 following final enactment and applies to any charter school 67.7 lease entered into on or after that date. 67.8 Sec. 26. Minnesota Statutes 2000, section 124D.10, is 67.9 amended by adding a subdivision to read: 67.10 Subd. 26. [CHARTER SCHOOL ADVISORY COUNCIL.] A charter 67.11 school advisory council is established under section 15.059. 67.12 The advisory council is composed of seven members from 67.13 throughout the state who have demonstrated experience with or 67.14 interest in charter schools. The advisory council shall bring 67.15 to the attention of the commissioner any matters related to 67.16 charter schools that the council deems necessary and shall: 67.17 (1) encourage school boards to make full use of charter 67.18 school opportunities; 67.19 (2) encourage the creation of innovative schools; 67.20 (3) provide leadership and support for charter school 67.21 sponsors to increase the innovation in and the effectiveness, 67.22 accountability, and fiscal soundness of charter schools; 67.23 (4) serve an ombudsman function in facilitating the 67.24 operations of new and existing charter schools; 67.25 (5) promote timely financial management training for newly 67.26 elected members of a charter school board of directors and 67.27 ongoing training for other members of a charter school board of 67.28 directors; 67.29 (6) review charter school applications and recommend 67.30 approving or disapproving the applications; and 67.31 (7) facilitate compliance with auditing and other reporting 67.32 requirements. The advisory council shall refer all its 67.33 proposals to the commissioner who shall provide time for reports 67.34 from the council. 67.35 [EFFECTIVE DATE.] This section is effective the day 67.36 following final enactment. 68.1 Sec. 27. Minnesota Statutes 2000, section 124D.11, 68.2 subdivision 4, is amended to read: 68.3 Subd. 4. [BUILDING LEASE AID.] When a charter school finds 68.4 it economically advantageous to rent or lease a building or land 68.5 for any instructional purposes and it determines that the total 68.6 operating capital revenue under section 126C.10, subdivision 13, 68.7 is insufficient for this purpose, it may apply to the 68.8 commissioner for building lease aid for this purpose. Criteria68.9 for aid approval and revenue uses shall be as defined for the68.10 building lease levy in section 126C.40, subdivision 1,68.11 paragraphs (a) and (b).The commissioner must review and either 68.12 approve or deny a lease aid application using the following 68.13 criteria: 68.14 (1) the reasonableness of the price based on current market 68.15 values; 68.16 (2) the extent to which the lease conforms to applicable 68.17 state laws and rules; and 68.18 (3) the appropriateness of the proposed lease in the 68.19 context of the space needs and financial circumstances of the 68.20 charter school. 68.21 A charter school must not use the building lease aid it receives 68.22 for custodial, maintenance service, utility, or other operating 68.23 costs. The amount of building lease aid per pupil unit served 68.24 for a charter school for any year shall not exceed the lesser of 68.25 (a) 90 percent of the approved cost or (b) the product of the 68.26 pupil units served for the current school year times $1,500. 68.27 Sec. 28. Minnesota Statutes 2000, section 124D.11, 68.28 subdivision 9, is amended to read: 68.29 Subd. 9. [PAYMENT OF AIDS TO CHARTER SCHOOLS.] (a) 68.30 Notwithstanding section 127A.45, subdivision 3, aid payments for 68.31 the current fiscal year to a charter school not in its first 68.32 year of operation shall be of an equal amount on each of the 23 68.33 payment dates. A charter school in its first year of operation 68.34 shall receive, on its first payment date, ten percent of its 68.35 cumulative amount guaranteed for the year and 22 payments of an 68.36 equal amount thereafter the sum of which shall be 90 percent of 69.1 the cumulative amount guaranteed. 69.2 (b) Notwithstanding paragraph (a), for a charter school 69.3 ceasing operation prior to the end of a school year, 90 percent 69.4 of the amount due for the school year may be paid to the school 69.5 after audit of prior fiscal year and current fiscal year pupil 69.6 counts. 69.7 (c) Notwithstanding section 127A.45, subdivision 3, and 69.8 paragraph (a), 90 percent of the start-up cost aid under 69.9 subdivision 8 shall be paid within 45 days after the first day 69.10 of student attendance for that school year. 69.11 (d) In order to receive state aid payments under this 69.12 subdivision, a charter school in its first three years of 69.13 operation must submit a quarterly report to the department of 69.14 children, families, and learning. The report must list each 69.15 student by grade, show the student's start and end dates, if 69.16 any, with the charter school, and for any student participating 69.17 in a learning year program, the report must list the hours and 69.18 times of learning year activities. The report must be submitted 69.19 not more than two weeks after the end of the calendar quarter to 69.20 the department. The department must develop a Web-based 69.21 reporting form for charter schools to use when submitting 69.22 enrollment reports. A charter school in its fourth and 69.23 subsequent year of operation must submit enrollment information 69.24 to the department in the form and manner requested by the 69.25 department. 69.26 Sec. 29. Minnesota Statutes 2000, section 124D.128, 69.27 subdivision 1, is amended to read: 69.28 Subdivision 1. [PROGRAM ESTABLISHED.] A learning year 69.29 program provides instruction throughout the year. A pupil may 69.30 participate in the program and accelerate attainment of grade 69.31 level requirements or graduation requirements. A learning year 69.32 program may begin after the close of the regular school year in 69.33 June. The program may be for students in one or more grade 69.34 levels from kindergarten through grade 12. 69.35 Students may participate in the program if they reside in:69.36 (1) a district that has been designated a learning year70.1 site under subdivision 2;70.2 (2) a district that is a member of the same education70.3 district as a site; or70.4 (3) a district that participates in the same area learning70.5 center program as a site.70.6 Sec. 30. Minnesota Statutes 2000, section 124D.128, 70.7 subdivision 2, is amended to read: 70.8 Subd. 2. [COMMISSIONER DESIGNATION.] (a) An area learning 70.9 center designated by the state must be a site. To be 70.10 designated, a district or center must demonstrate to the 70.11 commissioner that it will: 70.12 (1) provide a program of instruction that permits pupils to 70.13 receive instruction throughout the entire year; and 70.14 (2) maintain a record system that, for purposes of section 70.15 126C.05, permits identification of membership attributable to 70.16 pupils participating in the program. The record system and 70.17 identification must ensure that the program will not have the 70.18 effect of increasing the total number of pupil units 70.19 attributable to an individual pupil as a result of a learning 70.20 year program. The record system must include the date the pupil 70.21 originally enrolled in a learning year program, the pupil's 70.22 grade level, the date of each grade promotion, the average daily 70.23 membership generated in each grade level, the number of credits 70.24 or standards earned, and the number needed to graduate. 70.25 (b) A student who has not completed a school district's 70.26 graduation requirements may continue to enroll in courses the 70.27 student must complete in order to graduate until the student 70.28 satisfies the district's graduation requirements or the student 70.29 is 21 years old, whichever comes first. 70.30 [EFFECTIVE DATE.] This section is effective the day 70.31 following final enactment. 70.32 Sec. 31. Minnesota Statutes 2000, section 124D.128, 70.33 subdivision 3, is amended to read: 70.34 Subd. 3. [STUDENT PLANNING.] A district must inform all 70.35 pupils and their parents about the learning year program and 70.36 that participation in the program is optional. A continual 71.1 learning plan must be developed at least annually for each pupil 71.2 with the participation of the pupil, parent or guardian, 71.3 teachers, and other staff; each participant must sign and date 71.4 the plan. The plan must specify the learning experiences that 71.5 must occur eachduring the entire fiscal year and, for secondary 71.6 students, for graduation. The plan must include: 71.7 (1) the pupil's learning objectives and experiences, 71.8 including courses or credits the pupil plans to complete each 71.9 year and, for a secondary pupil, the graduation requirements the 71.10 student must complete; 71.11 (2) the assessment measurements used to evaluate a pupil's 71.12 objectives; 71.13 (3) requirements for grade level or other appropriate 71.14 progression; and 71.15 (4) for pupils generating more than one average daily 71.16 membership in a given grade, an indication of which objectives 71.17 were unmet. 71.18 The plan may be modified to conform to district schedule 71.19 changes. The district may not modify the plan if the 71.20 modification would result in delaying the student's time of 71.21 graduation. 71.22 Sec. 32. Minnesota Statutes 2000, section 124D.128, 71.23 subdivision 6, is amended to read: 71.24 Subd. 6. [REVENUE COMPUTATION AND REPORTING.] Aid and levy 71.25 revenue computations must be based on the total number of hours 71.26 of education programs for pupils in average daily membership for 71.27 each fiscal year. For purposes of section 126C.05,Average 71.28 daily membership shall be computed by dividing the total number71.29 of hours of participation for the fiscal year by the minimum71.30 number of hours for a year determined for the appropriate grade71.31 levelunder section 126C.05, subdivision 15. Hours of 71.32 participation that occur after the close of the regular 71.33 instructional year and before July 1 must be attributed to the 71.34 following fiscal year. Thirty hours may be used for teacher71.35 workshops, staff development, or parent-teacher conferences. As71.36 part of each pilot program, the department and each district72.1 must report and evaluate the changes needed to adjust the dates72.2 of the fiscal year for aid and levy computation and fiscal year72.3 reporting.For revenue computation purposes, the learning year 72.4 program shall generate revenue based on the formulas for the 72.5 fiscal year in which the services are provided. The dates a 72.6 participating pupil is promoted must be reported in a timely 72.7 manner to the department. 72.8 State aid and levy revenue computation for the learning72.9 year programs begins July 1, 1988, for fiscal year 1989.72.10 Sec. 33. Minnesota Statutes 2000, section 124D.128, is 72.11 amended by adding a subdivision to read: 72.12 Subd. 6a. [PROCESS TO ADDRESS AUDIT FINDINGS.] (a) If, 72.13 during an audit of a district's learning year program, the 72.14 commissioner finds that the district is not meeting program 72.15 requirements, the commissioner must notify the board of that 72.16 district in writing. The notice must specify the findings in 72.17 detail, describe the correction required, set a reasonable time 72.18 during which the findings should be corrected, and advise that 72.19 general education revenue to the district may be reduced. The 72.20 commissioner may extend the time allowed for the correction. 72.21 (b) A board that receives a notice under paragraph (a) may 72.22 decide by majority vote of the entire board to dispute that: 72.23 (1) the specified finding exists; 72.24 (2) the time allowed is reasonable; or 72.25 (3) the commissioner should reduce district general 72.26 education revenue. 72.27 The board must give the commissioner written notice of the 72.28 board's decision within 30 days of receipt of the audit report. 72.29 After making any further investigations the commissioner deems 72.30 necessary, the commissioner must decide whether or not to adhere 72.31 to the commissioner's original notice and must notify the board 72.32 of the commissioner's decision. 72.33 (c) The commissioner may reduce or withhold state general 72.34 education revenues as the result of an audit. The commissioner 72.35 may decide not to reduce or withhold state general education 72.36 revenues if the district corrects the specified finding, or 73.1 after receiving the district's notice disputing the finding, the 73.2 commissioner decides the finding does not exist. 73.3 Sec. 34. Minnesota Statutes 2000, section 124D.74, 73.4 subdivision 1, is amended to read: 73.5 Subdivision 1. [PROGRAM DESCRIBED.] American Indian 73.6 language and cultureeducation programs are programs in public 73.7 elementary and secondary schools, nonsectarian nonpublic, 73.8 community, tribal, or alternative schools enrolling American 73.9 Indian children designed to: 73.10 (1) tosupport post-secondary preparation for pupils; 73.11 (2) support the academic achievement of American Indian 73.12 students with identified focus to improve reading and mathematic 73.13 skills; 73.14 (3) make the curriculum more relevant to the needs, 73.15 interests, and cultural heritage of American Indian pupils; 73.16 (2) to(4) provide positive reinforcement of the self-image 73.17 of American Indian pupils; and73.18 (3) to(5) develop intercultural awareness among pupils, 73.19 parents, and staff; and 73.20 (6) supplement, not supplant, state and federal educational 73.21 and cocurricular programs. 73.22 Program components may include: instruction in American Indian73.23 language, literature, history, and culturedevelopment of 73.24 support components for students in the areas of academic 73.25 achievement, retention, and attendance; development of support 73.26 components for staff, including in-service training and 73.27 technical assistance in methods of teaching American Indian 73.28 pupils; research projects, including experimentation with and 73.29 evaluation of methods of relating to American Indian pupils; 73.30 provision of personal and vocational counseling to American 73.31 Indian pupils; modification of curriculum, instructional 73.32 methods, and administrative procedures to meet the needs of 73.33 American Indian pupils; and establishment of cooperative73.34 liaisons with nonsectarian nonpublic, community, tribal or73.35 alternative schools offering curricula which reflect American73.36 Indian culturesupplemental instruction in American Indian 74.1 language, literature, history, and culture. Districts offering 74.2 programs may make contracts for the provision of program 74.3 components by nonsectarian nonpublic, community, tribal or74.4 alternative schoolsestablishing cooperative liaisons with 74.5 tribal programs and American Indian social service agencies. 74.6 These programs may also be provided as components of early 74.7 childhood and family education programs. 74.8 Sec. 35. Minnesota Statutes 2000, section 124D.74, 74.9 subdivision 2, is amended to read: 74.10 Subd. 2. [VOLUNTARY ENROLLMENT.] Enrollment in American 74.11 Indian language and cultureeducation programs must be 74.12 voluntary. School districts and participating schools must make 74.13 affirmative efforts to encourage participation. They shall 74.14 encourage parents to visit classes or come to school for a 74.15 conference explaining the nature of the program and provide 74.16 visits by school staff to parents' homes to explain the nature 74.17 of the program. 74.18 Sec. 36. Minnesota Statutes 2000, section 124D.74, 74.19 subdivision 3, is amended to read: 74.20 Subd. 3. [ENROLLMENT OF OTHER CHILDREN; SHARED TIME 74.21 ENROLLMENT.] To the extent it is economically feasible, a 74.22 district or participating school may make provision for the 74.23 voluntary enrollment of non-American Indian children in the 74.24 instructional components of an American Indian language and74.25 cultureeducation program in order that they may acquire an 74.26 understanding of the cultural heritage of the American Indian 74.27 children for whom that particular program is designed. However, 74.28 in determining eligibility to participate in a program, priority 74.29 must be given to American Indian children. American Indian 74.30 children and other children enrolled in an existing nonpublic 74.31 school system may be enrolled on a shared time basis in American 74.32 Indian language and cultureeducation programs. 74.33 Sec. 37. Minnesota Statutes 2000, section 124D.74, 74.34 subdivision 4, is amended to read: 74.35 Subd. 4. [LOCATION OF PROGRAMS.] American Indian language74.36 and cultureeducation programs must be located in facilities in 75.1 which regular classes in a variety of subjects are offered on a 75.2 daily basis. Programs may operate on an extended day or 75.3 extended year basis. 75.4 Sec. 38. Minnesota Statutes 2000, section 124D.74, 75.5 subdivision 6, is amended to read: 75.6 Subd. 6. [NONVERBAL COURSES AND EXTRACURRICULAR 75.7 ACTIVITIES.] In predominantly nonverbal subjects, such as art, 75.8 music, and physical education, American Indian children shall 75.9 participate fully and on an equal basis with their 75.10 contemporaries in school classes provided for these subjects. 75.11 Every school district or participating school shall ensure to 75.12 children enrolled in American Indian language and culture75.13 education programs an equal and meaningful opportunity to 75.14 participate fully with other children in all extracurricular 75.15 activities. This subdivision shall not be construed to prohibit 75.16 instruction in nonverbal subjects or extracurricular activities 75.17 which relate to the cultural heritage of the American Indian 75.18 children, or which are otherwise necessary to accomplish the 75.19 objectives described in sections 124D.71 to 124D.82. 75.20 Sec. 39. Minnesota Statutes 2000, section 124D.75, 75.21 subdivision 6, is amended to read: 75.22 Subd. 6. [PERSONS ELIGIBLE FOR EMPLOYMENT; EXEMPTIONS.] 75.23 Any person licensed under this section shall be eligible for 75.24 employment by a school board or a participating school as a 75.25 teacher in an American Indian language and cultureeducation 75.26 program in which the American Indian language or culture in 75.27 which the person is licensed is taught. A school district or 75.28 participating school may prescribe only those additional 75.29 qualifications for teachers licensed under this section as are 75.30 approved by the board of teaching. Any school board or 75.31 participating school upon request may be exempted from the 75.32 licensure requirements of this section in the hiring of one or 75.33 more American Indian language and culture education teachers for 75.34 any school year in which compliance would, in the opinion of the 75.35 commissioner, create a hardship in the securing of the teachers. 75.36 Sec. 40. Minnesota Statutes 2000, section 124D.76, is 76.1 amended to read: 76.2 124D.76 [TEACHERS AIDES; COMMUNITY COORDINATORS.] 76.3 In addition to employing American Indian language and 76.4 culture education teachers, each district or participating 76.5 school providing programs pursuant to sections 124D.71 to 76.6 124D.82 may employ teachers' aides. Teachers' aides must not be 76.7 employed for the purpose of supplanting American Indian language 76.8 and culture education teachers. 76.9 Any district or participating school which conducts 76.10 American Indian language and cultureeducation programs pursuant 76.11 to sections 124D.71 to 124D.82 must employ one or more full-time 76.12 or part-time community coordinators if there are 100 or more 76.13 students enrolled in the program. Community coordinators shall 76.14 promote communication understanding, and cooperation between the 76.15 schools and the community and shall visit the homes of children 76.16 who are to be enrolled in an American Indian language and76.17 cultureeducation program in order to convey information about 76.18 the program. 76.19 Sec. 41. Minnesota Statutes 2000, section 124D.78, 76.20 subdivision 1, is amended to read: 76.21 Subdivision 1. [PARENT COMMITTEE.] School boards and 76.22 American Indian schools must provide for the maximum involvement 76.23 of parents of children enrolled in education programs, including76.24 language and culture education programs,programs for elementary 76.25 and secondary grades, special education programs, and support 76.26 services. Accordingly, the board of a school district in which 76.27 there are ten or more American Indian children enrolled and each 76.28 American Indian school must establish a parent committee. If a 76.29 committee whose membership consists of a majority of parents of 76.30 American Indian children has been or is established according to 76.31 federal, tribal, or other state law, that committee may serve as 76.32 the committee required by this section and is subject to, at 76.33 least, the requirements of this subdivision and subdivision 2. 76.34 The parent committee must develop its recommendations in 76.35 consultation with the curriculum advisory committee required by 76.36 section 120B.11, subdivision 3. This committee must afford 77.1 parents the necessary information and the opportunity 77.2 effectively to express their views concerning all aspects of 77.3 American Indian education and the educational needs of the 77.4 American Indian children enrolled in the school or program. The 77.5 committee must also address the need for adult education 77.6 programs for American Indian people in the community. The board 77.7 or American Indian school must ensure that programs are planned, 77.8 operated, and evaluated with the involvement of and in 77.9 consultation with parents of children served by the programs. 77.10 Sec. 42. Minnesota Statutes 2000, section 124D.81, 77.11 subdivision 1, is amended to read: 77.12 Subdivision 1. [GRANTS; PROCEDURES.] Each fiscal year the 77.13 commissioner of children, families, and learning must make 77.14 grants to no fewer than six American Indian language and culture77.15 education programs. At least three programs must be in urban 77.16 areas and at least three must be on or near reservations. The 77.17 board of a local district, a participating school or a group of 77.18 boards may develop a proposal for grants in support of American 77.19 Indian language and cultureeducation programs. Proposals may 77.20 provide for contracts for the provision of program components by 77.21 nonsectarian nonpublic, community, tribal, or alternative 77.22 schools. The commissioner shall prescribe the form and manner 77.23 of application for grants, and no grant shall be made for a 77.24 proposal not complying with the requirements of sections 124D.71 77.25 to 124D.82. The commissioner must submit all proposals to the 77.26 state advisory task forcecommittee on American Indian language77.27 and cultureeducation programs for its recommendations 77.28 concerning approval, modification, or disapproval and the 77.29 amounts of grants to approved programs. 77.30 Sec. 43. Minnesota Statutes 2000, section 124D.81, 77.31 subdivision 3, is amended to read: 77.32 Subd. 3. [ADDITIONAL REQUIREMENTS.] Each district 77.33 receiving a grant under this section must each year conduct a 77.34 count of American Indian children in the schools of the 77.35 district; test for achievement; identify the extent of other 77.36 educational needs of the children to be enrolled in the American 78.1 Indian language and cultureeducation program; and classify the 78.2 American Indian children by grade, level of educational 78.3 attainment, age and achievement. Participating schools must 78.4 maintain records concerning the needs and achievements of 78.5 American Indian children served. 78.6 Sec. 44. Minnesota Statutes 2000, section 124D.81, 78.7 subdivision 5, is amended to read: 78.8 Subd. 5. [RECORDS.] Participating schools and districts 78.9 must keep records and afford access to them as the commissioner 78.10 finds necessary to ensure that American Indian language and78.11 cultureeducation programs are implemented in conformity with 78.12 sections 124D.71 to 124D.82. Each school district or 78.13 participating school must keep accurate, detailed, and separate 78.14 revenue and expenditure accounts for pilot American Indian 78.15 language and cultureeducation programs funded under this 78.16 section. 78.17 Sec. 45. Minnesota Statutes 2000, section 124D.81, 78.18 subdivision 6, is amended to read: 78.19 Subd. 6. [MONEY FROM OTHER SOURCES.] A district or 78.20 participating school providing American Indian language and78.21 cultureeducation programs shall be eligible to receive moneys 78.22 for these programs from other government agencies and from 78.23 private sources when the moneys are available. 78.24 Sec. 46. Minnesota Statutes 2000, section 124D.81, 78.25 subdivision 7, is amended to read: 78.26 Subd. 7. [EXCEPTIONS.] Nothing in sections 124D.71 to 78.27 124D.82 shall be construed as prohibiting a district or school 78.28 from implementing an American Indian language and culture78.29 education program which is not in compliance with sections 78.30 124D.71 to 124D.82 if the proposal and plan for that program is 78.31 not funded pursuant to this section. 78.32 Sec. 47. Minnesota Statutes 2000, section 124D.86, 78.33 subdivision 3, is amended to read: 78.34 Subd. 3. [INTEGRATION REVENUE.] For fiscal year 2000 and78.35 later fiscal years,Integration revenue equals the following 78.36 amounts: 79.1 (1) for independent school district No. 709, Duluth, $207 79.2 times the adjusted pupil units for the school year; 79.3 (2) for independent school district No. 625, St. Paul, $44679.4 times the adjusted pupil units for the school year;79.5 (3)and for special school district No. 1, Minneapolis, 79.6 $536$446 times the adjusted pupil units for the school year; 79.7 and79.8 (3) for a district not listed in clause (1) or (2) that 79.9 must implement a plan under Minnesota Rules, parts 3535.0100 to 79.10 3535.0180, where the district's enrollment of protected 79.11 students, as defined under Minnesota Rules, part 3535.0110, 79.12 exceeds 15 percent, the lesser of (i) the actual cost of 79.13 implementing the plan during the fiscal year minus the aid 79.14 received under subdivision 6, or (ii) $130 times the adjusted 79.15 pupil units for the school year; 79.16 (4) for a district not listed in clause (1), (2), or (3) 79.17 that is required to implement a plan according to the 79.18 requirements of Minnesota Rules, parts 3535.0100 to 3535.0180, 79.19 the lesser of 79.20 (i) the actual cost of implementing the plan during the 79.21 fiscal year minus the aid received under subdivision 6, or 79.22 (ii) $93 times the adjusted pupil units for the school year. 79.23 Any money received by districts in clauses (1) to (3) which 79.24 exceeds the amount received in fiscal year 2000 shall be subject 79.25 to the budget requirements in subdivision 1a .; and 79.26 (5) for a member district of a multidistrict integration 79.27 collaborative that files a plan with the commissioner, but is 79.28 not contiguous to a racially isolated district, integration 79.29 revenue equals the amount defined in clause (4). 79.30 [EFFECTIVE DATE.] The changes in clause (2) of this section 79.31 are effective for aid for fiscal year 2003 and for levy for 79.32 taxes payable in 2002 and later. The changes in clauses (3) and 79.33 (5) are effective for revenue for fiscal year 2002 and later. 79.34 Sec. 48. Minnesota Statutes 2000, section 124D.59, 79.35 subdivision 2, is amended to read: 79.36 Subd. 2. [PUPIL OF LIMITED ENGLISH PROFICIENCY.] "Pupil of 80.1 limited English proficiency" means a pupil in any of the grades80.2 of kindergarten through 12who meets the following requirements: 80.3 (1) the pupil in kindergarten through grade 12, as declared 80.4 by a parent or guardian first learned a language other than 80.5 English, comes from a home where the language usually spoken is 80.6 other than English, or usually speaks a language other than 80.7 English; and 80.8 (2) the pupil's score is significantly below the average80.9 district score for pupils of the same age on a nationally normed80.10 English reading or English language arts achievement test. A80.11 pupil's score shall be considered significantly below the80.12 average district score for pupils of the same age if it is80.13 one-third of a standard deviation below that average scorefor a 80.14 pupil in kindergarten through grade 2, the pupil is determined 80.15 by developmentally appropriate measures, which might include 80.16 observations, teacher judgment, parent recommendations, or 80.17 developmentally appropriate assessment instruments, to lack the 80.18 necessary English skills to participate fully in classes taught 80.19 in English; or 80.20 (3) the pupil in grades 3 through 12 scores below the state 80.21 cutoff score on an assessment measuring emerging academic 80.22 English provided by the commissioner. 80.23 [EFFECTIVE DATE.] This section is effective for the 80.24 2002-2003 school year and later. 80.25 Sec. 49. Minnesota Statutes 2000, section 124D.84, 80.26 subdivision 1, is amended to read: 80.27 Subdivision 1. [AWARDS.] The commissioner, with the advice 80.28 and counsel of the Minnesota Indian scholarshipeducation 80.29 committee, may award scholarships to any Minnesota resident 80.30 student who is of one-fourth or more Indian ancestry, who has 80.31 applied for other existing state and federal scholarship and 80.32 grant programs, and who, in the opinion of the commissioner, has 80.33 the capabilities to benefit from further education. 80.34 Scholarships must be for accredited degree programs in 80.35 accredited Minnesota colleges or universities or for courses in 80.36 accredited Minnesota business, technical, or vocational 81.1 schools. Scholarships may also be given to students attending 81.2 Minnesota colleges that are in candidacy status for obtaining 81.3 full accreditation, and are eligible for and receiving federal 81.4 financial aid programs. Students are also eligible for 81.5 scholarships when enrolled as students in Minnesota higher 81.6 education institutions that have joint programs with other 81.7 accredited higher education institutions. Scholarships shall be 81.8 used to defray the total cost of education including tuition, 81.9 incidental fees, books, supplies, transportation, other related 81.10 school costs and the cost of board and room and shall be paid 81.11 directly to the college or school concerned where the student 81.12 receives federal financial aid. The total cost of education 81.13 includes all tuition and fees for each student enrolling in a 81.14 public institution and the portion of tuition and fees for each 81.15 student enrolling in a private institution that does not exceed 81.16 the tuition and fees at a comparable public institution. Each 81.17 student shall be awarded a scholarship based on the total cost 81.18 of the student's education and a federal standardized need 81.19 analysis. Applicants are encouraged to apply for all other 81.20 sources of financial aid. The amount and type of each 81.21 scholarship shall be determined through the advice and counsel 81.22 of the Minnesota Indian scholarshipeducation committee. 81.23 When an Indian student satisfactorily completes the work 81.24 required by a certain college or school in a school year the 81.25 student is eligible for additional scholarships, if additional 81.26 training is necessary to reach the student's educational and 81.27 vocational objective. Scholarships may not be given to any 81.28 Indian student for more than five years of study without special 81.29 approvalrecommendation of the Minnesota Indian scholarship81.30 education committee. 81.31 Sec. 50. Minnesota Statutes 2000, section 124D.892, 81.32 subdivision 1, is amended to read: 81.33 Subdivision 1. [ESTABLISHMENT.] (a) An office of 81.34 desegregation/integration is established in the department of 81.35 children, families, and learning to coordinate and support 81.36 activities related to student enrollment, student and staff 82.1 recruitment and retention, transportation, and interdistrict 82.2 cooperation among metropolitanschool districts. 82.3 (b) At the request of a metropolitanschool district 82.4 involved in cooperative desegregation/integration efforts, the 82.5 office shall perform any of the following activities: 82.6 (1) assist districts with interdistrict student transfers, 82.7 including student recruitment, counseling, placement, and 82.8 transportation; 82.9 (2) coordinate and disseminate information about schools 82.10 and programs; 82.11 (3) assist districts with new magnet schools and programs; 82.12 (4) assist districts in providing staff development and 82.13 in-service training; and 82.14 (5) coordinate and administer staff exchanges. 82.15 (c) The office shall collect data on the efficacy of 82.16 districts' desegregation/integration efforts and make 82.17 recommendations based on the data. The office shall 82.18 periodically consult with the metropolitan council to coordinate 82.19 metropolitan school desegregation/integration efforts with the 82.20 housing, social, economic, and infrastructure needs of the 82.21 metropolitan area. The office shall develop a process for 82.22 resolving students' disputes and grievances about student 82.23 transfers under a desegregation/integration plan. 82.24 Sec. 51. Minnesota Statutes 2000, section 124D.892, 82.25 subdivision 3, as amended by Laws 2001, chapter 7, section 32, 82.26 is amended to read: 82.27 Subd. 3. [ADVISORY BOARD.] The commissioner shall 82.28 establish an advisory board composed of: 82.29 (1) nine superintendents, eight of whom are selected by the 82.30 superintendents of the school districts located in whole or in 82.31 part within each of the eight metropolitan districts established 82.32 under section 473.123, subdivision 3c, and one who is from a 82.33 district outside the seven-county metropolitan area that is 82.34 considered racially isolated or that has a racially isolated 82.35 school site according to Minnesota Rules, part 3535.0110; 82.36 (2) one person each selected by the Indian affairs council, 83.1 the council on Asian-Pacific Minnesotans, the council on Black 83.2 Minnesotans, and the council on affairs of Chicano/Latino 83.3 people; and 83.4 (3) the superintendent of independent school district No. 83.5 709, Duluth. 83.6 The advisory board shall advise the office on complying 83.7 with the requirements under subdivision 1. The advisory board 83.8 may solicit comments from teachers, parents, students, and 83.9 interested community organizations and others. 83.10 The advisory board shall expire June 30, 2003. 83.11 Sec. 52. Minnesota Statutes 2000, section 124D.894, is 83.12 amended to read: 83.13 124D.894 [STATE MULTICULTURAL EDUCATION ADVISORY 83.14 COMMITTEE.] 83.15 (a) The commissioner shall appoint a state multicultural 83.16 education advisory committee to advise the department and the 83.17 state board on multicultural education. The committee must have 83.18 12 members and be composed of representatives from among the 83.19 following groups and community organizations: African-American, 83.20 Asian-Pacific, Hispanic, and American Indian. The committee 83.21 shall expire June 30, 2003. 83.22 (b) The state committee shall provide information and 83.23 recommendations on: 83.24 (1) department procedures for reviewing and approving 83.25 district plans and disseminating information on multicultural 83.26 education; 83.27 (2) department procedures for improving inclusive education 83.28 plans, curriculum and instruction improvement plans, and 83.29 performance-based assessments; 83.30 (3) developing learner outcomes which are multicultural; 83.31 and 83.32 (4) other recommendations that will further inclusive, 83.33 multicultural education. 83.34 (c) The committee shall also participate in determining the 83.35 criteria for and awarding the grants established under Laws 83.36 1993, chapter 224, article 8, section 22, subdivision 8. 84.1 Sec. 53. [124D.945] [EDUCATIONAL IMPROVEMENT PLAN.] 84.2 Subdivision 1. [QUALIFYING PLAN.] A district may develop 84.3 an educational improvement plan for the purpose of qualifying 84.4 for alternative teacher compensation aid under sections 124D.946 84.5 and 124D.947. The plan must include measures for improving 84.6 school district, school site, teacher, and individual student 84.7 performance. 84.8 Subd. 2. [PLAN COMPONENTS.] The educational improvement 84.9 plan must be approved by the school board and have at least 84.10 these elements: 84.11 (1) assessment and evaluation tools to measure student 84.12 performance and progress; 84.13 (2) performance goals and benchmarks for improvement; 84.14 (3) measures of student attendance and completion rates; 84.15 (4) a rigorous professional development system that is 84.16 aligned with educational improvement, designed to achieve 84.17 teaching quality improvement, and consistent with clearly 84.18 defined research-based standards; 84.19 (5) measures of student, family, and community involvement 84.20 and satisfaction; 84.21 (6) a data system about students and their academic 84.22 progress that provides parents and the public with 84.23 understandable information; and 84.24 (7) a teacher induction and mentoring program for 84.25 probationary teachers that provides continuous learning and 84.26 sustained teacher support. The process for developing the plan 84.27 must involve district teachers. 84.28 Subd. 3. [SCHOOL SITE ACCOUNTABILITY.] A district that 84.29 develops a plan under subdivisions 1 and 2 must ensure that each 84.30 school site develops a board-approved educational improvement 84.31 plan that is aligned with the district educational improvement 84.32 plan under subdivision 2. While a site plan must be consistent 84.33 with the district educational improvement plan, it may establish 84.34 performance goals and benchmarks that meet or exceed those of 84.35 the district. The process for developing the plan must involve 84.36 site teachers. 85.1 Sec. 54. [124D.946] [ALTERNATIVE TEACHER COMPENSATION.] 85.2 Subdivision 1. [RESTRUCTURED PAY SYSTEM.] A restructured 85.3 teacher compensation system is established under subdivision 2 85.4 to provide incentives for teachers to improve their knowledge 85.5 and skills and for school districts to recruit and retain highly 85.6 qualified teachers, and to support teachers' roles in improving 85.7 students' educational achievement. 85.8 Subd. 2. [ALTERNATIVE TEACHER PROFESSIONAL PAY 85.9 SYSTEM.] (a) To participate in this program, a school district 85.10 must have an educational improvement plan as described in 85.11 section 124D.945 and an alternative teacher professional pay 85.12 system as described in paragraph (b). 85.13 (b) The alternative teacher professional pay system must: 85.14 (1) describe the conditions necessary for career 85.15 advancement and additional compensation; 85.16 (2) provide career advancement options for teachers 85.17 retaining primary roles in student instruction; 85.18 (3) use a professional pay system that replaces the step 85.19 and lane salary schedule and is not based on years of service; 85.20 (4) encourage teachers' continuous improvement in content 85.21 knowledge, pedagogy, and use of best practices; and 85.22 (5) implement an objective evaluation system, including 85.23 classroom observation, that is aligned with the district's or 85.24 the site's educational improvement plan as described in section 85.25 124D.945. 85.26 [EFFECTIVE DATE.] This section is effective the day 85.27 following final enactment. 85.28 Sec. 55. [124D.947] [ALTERNATIVE COMPENSATION AID.] 85.29 Subdivision 1. [AID AMOUNT.] (a) A school district that 85.30 meets the conditions of section 124D.946 and submits an 85.31 application approved by the commissioner is eligible for 85.32 alternative compensation aid. The commissioner must consider 85.33 only applications submitted jointly by a school district and the 85.34 exclusive representative of the teachers for participation in 85.35 the program. The application must contain a formally adopted 85.36 collective bargaining agreement, memorandum of understanding, or 86.1 other binding agreement that implements an alternative teacher 86.2 professional pay system consistent with section 124D.946 and 86.3 includes all teachers in a district, all teachers at a school 86.4 site, or at least 25 percent of the teachers in a district. The 86.5 commissioner may give preference to applications involving 86.6 entire districts or sites in approving applications. 86.7 (b) Alternative compensation aid for a qualifying school 86.8 district, site, or portion of a district or school site is as 86.9 follows: 86.10 (1) for a school district in which the school board and the 86.11 exclusive representative of the teachers agree to place all 86.12 teachers in the district or at the site on the alternative 86.13 compensation schedule, alternative compensation aid equals $150 86.14 times the district's or the site's number of pupils enrolled on 86.15 October 1 of the previous fiscal year; or 86.16 (2) for a district in which the school board and the 86.17 exclusive representative of the teachers agree that at least 25 86.18 percent of the district's licensed teachers will be paid on the 86.19 alternative compensation schedule, alternative compensation aid 86.20 equals $150 times the percentage of participating teachers times 86.21 the district's number of pupils enrolled as of October 1 of the 86.22 previous fiscal year. 86.23 Subd. 2. [PERCENTAGE OF TEACHERS.] For purposes of this 86.24 section, the percentage of teachers participating in the teacher 86.25 professional pay system equals the ratio of the number of 86.26 licensed teachers who are working at least 60 percent of a 86.27 full-time teacher's hours and agree to participate in the 86.28 teacher professional pay system to the total number of licensed 86.29 teachers who are working at least 60 percent of a full-time 86.30 teacher's hours. 86.31 Subd. 3. [AID TIMING.] (a) Districts or sites with 86.32 approved applications must receive alternative compensation aid 86.33 for each school year that the district or site participates in 86.34 the program. The commissioner must approve initial applications 86.35 for school districts qualifying under subdivision 1, paragraph 86.36 (b), clause (1), by January 15 of each year. If any money 87.1 remains, the commissioner must approve aid amounts for school 87.2 districts qualifying under subdivision 1, paragraph (b), clause 87.3 (2), by February 15 of each year. 87.4 (b) The commissioner shall select applicants that qualify 87.5 for this program, notify school districts and school sites about 87.6 the program, develop and disseminate application materials, and 87.7 carry out other activities needed to implement this section. 87.8 [EFFECTIVE DATE.] This section is effective July 1, 2001. 87.9 Sec. 56. Minnesota Statutes 2000, section 126C.05, 87.10 subdivision 15, is amended to read: 87.11 Subd. 15. [LEARNING YEAR PUPIL UNITS.] (a) When a pupil is 87.12 enrolled in a learning year program under section 124D.128, an 87.13 area learning center under sections 123A.05 and 123A.06, an 87.14 alternative program approved by the commissioner, or a contract 87.15 alternative program under section 124D.68, subdivision 3, 87.16 paragraph (d), or subdivision 3a, for more than 1,020 hours in a 87.17 school year for a secondary student, more than 935 hours in a 87.18 school year for an elementary student, or more than 425 hours in 87.19 a school year for a kindergarten student without a disability, 87.20 that pupil may be counted as more than one pupil in average 87.21 daily membership. The amount in excess of one pupil must be 87.22 determined by the ratio of the number of hours of instruction 87.23 provided to that pupil in excess of: (i) the greater of 1,020 87.24 hours or the number of hours required for a full-time secondary 87.25 pupil in the district to 1,020 for a secondary pupil; (ii) the 87.26 greater of 935 hours or the number of hours required for a 87.27 full-time elementary pupil in the district to 935 for an 87.28 elementary pupil in grades 1 through 6; and (iii) the greater of 87.29 425 hours or the number of hours required for a full-time 87.30 kindergarten student without a disability in the district to 425 87.31 for a kindergarten student without a disability. Hours that 87.32 occur after the close of the instructional year in June shall be 87.33 attributable to the following fiscal year. A kindergarten 87.34 student must not be counted as more than 1.2 pupils in average 87.35 daily membership under this subdivision. 87.36 (b)(i) To receive general education revenue for a pupil in 88.1 an alternative program that has an independent study component, 88.2 a district must meet the requirements in this paragraph. The 88.3 district must develop, withfor the pupil, a continual learning 88.4 plan for the pupil. A district must allow a minor pupil's88.5 parent or guardian to participate in developing the plan, if the88.6 parent or guardian wants to participate. The plan must identify88.7 the learning experiences and expected outcomes needed for88.8 satisfactory credit for the year and for graduation. The plan88.9 must be updated each yearconsistent with section 124D.128, 88.10 subdivision 3. Each school district that has a state-approved 88.11 public alternative program must reserve revenue in an amount 88.12 equal to at least 90 percent of the district average general 88.13 education revenue per pupil unit less compensatory revenue per 88.14 pupil unit times the number of pupil units generated by students 88.15 attending a state-approved public alternative program. The 88.16 amount of reserved revenue available under this subdivision may 88.17 only be spent for program costs associated with the 88.18 state-approved public alternative program. Compensatory revenue 88.19 must be allocated according to section 126C.15, subdivision 2. 88.20 (ii) General education revenue for a pupil in an approved 88.21 alternative program without an independent study component must 88.22 be prorated for a pupil participating for less than a full year, 88.23 or its equivalent. The district must develop a continual 88.24 learning plan for the pupil, consistent with section 124D.128, 88.25 subdivision 3. Each school district that has a state-approved 88.26 public alternative program must reserve revenue in an amount 88.27 equal to at least 90 percent of the district average general 88.28 education revenue per pupil unit less compensatory revenue per 88.29 pupil unit times the number of pupil units generated by students 88.30 attending a state-approved public alternative program. The 88.31 amount of reserved revenue available under this subdivision may 88.32 only be spent for program costs associated with the 88.33 state-approved public alternative program. Compensatory revenue 88.34 must be allocated according to section 126C.15, subdivision 2. 88.35 (iii) General education revenue for a pupil in an approved 88.36 alternative program that has an independent study component must 89.1 be paid for each hour of teacher contact time and each hour of 89.2 independent study time completed toward a credit or graduation 89.3 standards necessary for graduation. Average daily membership 89.4 for a pupil shall equal the number of hours of teacher contact 89.5 time and independent study time divided by 1,020. 89.6 (iv) For an alternative program having an independent study 89.7 component, the commissioner shall require a description of the 89.8 courses in the program, the kinds of independent study involved, 89.9 the expected learning outcomes of the courses, and the means of 89.10 measuring student performance against the expected outcomes. 89.11 Sec. 57. Minnesota Statutes 2000, section 126C.05, is 89.12 amended by adding a subdivision to read: 89.13 Subd. 18. [PUPIL ADJUSTMENT FOR CLOSED CHARTER SCHOOLS AND 89.14 CONTRACTED ALTERNATIVE PROGRAMS.] For a charter school or 89.15 contracted alternative program operating during the prior school 89.16 year but ceasing operations before the end of the current school 89.17 year, prior year pupil data used in computing revenues for the 89.18 current school year shall be prorated based on the number of 89.19 days of student instruction in the current school year to 170. 89.20 Sec. 58. Minnesota Statutes 2000, section 127A.45, 89.21 subdivision 9, is amended to read: 89.22 Subd. 9. [FINAL ADJUSTMENT PAYMENT.] (a) For all aids and 89.23 credits paid according to subdivision 13, the final adjustment 89.24 payment must include the amounts necessary to pay the district's 89.25 full aid entitlement for the prior year based on actual data. 89.26 This payment must be used to correct all estimates used for the 89.27 payment schedule in subdivision 3. The payment must be made as 89.28 specified in subdivision 3. In the event actual data are not 89.29 available, the final adjustment payment may be computed based on 89.30 estimated data. A corrected final adjustment payment must be 89.31 made when actual data are available. 89.32 (b) Notwithstanding paragraph (a) and subdivision 3, for a 89.33 charter school that ceases operation before the end of a school 89.34 year, a final adjustment payment for aid programs funded with an 89.35 open appropriation may be made after audit of the prior fiscal 89.36 year and current fiscal year pupil counts. 90.1 Sec. 59. Minnesota Statutes 2000, section 129C.10, 90.2 subdivision 3, is amended to read: 90.3 Subd. 3. [POWERS AND DUTIES OF BOARD.] (a) The board has 90.4 the powers necessary for the care, management, and control of 90.5 the Perpich center for arts education and all its real and 90.6 personal property. The powers shall include, but are not 90.7 limited to, those listed in this subdivision. 90.8 (b) The board may employ and discharge necessary employees, 90.9 and contract for other services to ensure the efficient 90.10 operation of the center for arts education. 90.11 (c) The board may receive and award grants. The board may 90.12 establish a charitable foundation and accept, in trust or 90.13 otherwise, any gift, grant, bequest, or devise for educational 90.14 purposes and hold, manage, invest, and dispose of them and the 90.15 proceeds and income of them according to the terms and 90.16 conditions of the gift, grant, bequest, or devise and its 90.17 acceptance. The board must adopt internal procedures to 90.18 administer and monitor aids and grants. 90.19 (d) The board may establish or coordinate evening, 90.20 continuing education, extension, and summer programs for 90.21 teachers and pupils. 90.22 (e) The board may identify pupils who have artistic talent, 90.23 either demonstrated or potential, in dance, literary arts, media 90.24 arts, music, theater, and visual arts, or in more than one art 90.25 form. 90.26 (f) The board must educate pupils with artistic talent by 90.27 providing: 90.28 (1) an interdisciplinary academic and arts program for 90.29 pupils in the 11th and 12th grades. The total number of pupils 90.30 accepted under this clause and clause (2) shall not exceed 30090.31 310; 90.32 (2) additional instruction to pupils for a 13th grade. 90.33 Pupils eligible for this instruction are those enrolled in 12th 90.34 grade who need extra instruction and who apply to the board, or 90.35 pupils enrolled in the 12th grade who do not meet learner 90.36 outcomes established by the board; 91.1 (3) intensive arts seminars for one or two weeks for pupils 91.2 in grades 9 to 12; 91.3 (4) summer arts institutes for pupils in grades 9 to 12; 91.4 (5) artist mentor and extension programs in regional sites; 91.5 and 91.6 (6) teacher education programs for indirect curriculum 91.7 delivery. 91.8 (g) The board may determine the location for the Perpich 91.9 center for arts education and any additional facilities related 91.10 to the center, including the authority to lease a temporary 91.11 facility. 91.12 (h) The board must plan for the enrollment of pupils on an 91.13 equal basis from each congressional district. 91.14 (i) The board may establish task forces as needed to advise 91.15 the board on policies and issues. The task forces expire as 91.16 provided in section 15.059, subdivision 6. 91.17 (j) The board may request the commissioner of children, 91.18 families, and learning for assistance and services. 91.19 (k) The board may enter into contracts with other public 91.20 and private agencies and institutions for residential and 91.21 building maintenance services if it determines that these 91.22 services could be provided more efficiently and less expensively 91.23 by a contractor than by the board itself. The board may also 91.24 enter into contracts with public or private agencies and 91.25 institutions, school districts or combinations of school 91.26 districts, or service cooperatives to provide supplemental 91.27 educational instruction and services. 91.28 (l) The board may provide or contract for services and 91.29 programs by and for the center for arts education, including a 91.30 store, operating in connection with the center; theatrical 91.31 events; and other programs and services that, in the 91.32 determination of the board, serve the purposes of the center. 91.33 (m) The board may provide for transportation of pupils to 91.34 and from the center for arts education for all or part of the 91.35 school year, as the board considers advisable and subject to its 91.36 rules. Notwithstanding any other law to the contrary, the board 92.1 may charge a reasonable fee for transportation of pupils. Every 92.2 driver providing transportation of pupils under this paragraph 92.3 must possess all qualifications required by the commissioner of 92.4 children, families, and learning. The board may contract for 92.5 furnishing authorized transportation under rules established by 92.6 the commissioner of children, families, and learning and may 92.7 purchase and furnish gasoline to a contract carrier for use in 92.8 the performance of a contract with the board for transportation 92.9 of pupils to and from the center for arts education. When 92.10 transportation is provided, scheduling of routes, establishment 92.11 of the location of bus stops, the manner and method of 92.12 transportation, the control and discipline of pupils, and any 92.13 other related matter is within the sole discretion, control, and 92.14 management of the board. 92.15 (n) The board may provide room and board for its pupils. 92.16 If the board provides room and board, it shall charge a 92.17 reasonable fee for the room and board. The fee is not subject 92.18 to chapter 14 and is not a prohibited fee according to sections 92.19 123B.34 to 123B.39. 92.20 (o) The board may establish and set fees for services and 92.21 programs. If the board sets fees not authorized or prohibited 92.22 by the Minnesota public school fee law, it may do so without 92.23 complying with the requirements of section 123B.38. 92.24 (p) The board may apply for all competitive grants 92.25 administered by agencies of the state and other government or 92.26 nongovernment sources. 92.27 [EFFECTIVE DATE.] This section is effective for the 92.28 2001-2002 school year and later. 92.29 Sec. 60. Minnesota Statutes 2000, section 171.02, 92.30 subdivision 2a, as amended by Laws 2001, chapter 97, section 4, 92.31 is amended to read: 92.32 Subd. 2a. [EXCEPTIONS.] (a) Notwithstanding subdivision 2, 92.33 (1) a hazardous materials endorsement is not required to operate 92.34 a vehicle having a gross vehicle weight of 26,000 pounds or less 92.35 while carrying in bulk tanks a total of not more than 200 92.36 gallons of petroleum products and (2) a class C license or 93.1 hazardous materials endorsement is not required to operate a 93.2 farm vehicle as defined in Code of Federal Regulations, title 93.3 49, section 390.5, having a gross vehicle weight of 26,000 93.4 pounds or less while carrying in bulk tanks a total of not more 93.5 than 1,500 gallons of liquid fertilizer. 93.6 (b) Notwithstanding subdivision 2, paragraph (c), the 93.7 holder of a class D driver's license, without a school bus 93.8 endorsement, may operate a type A school bus described in 93.9 subdivision 2, paragraph (b), under the following conditions: 93.10 (1) The operator is an employee as of the day following93.11 final enactment of this actof the entity that owns, leases, or 93.12 contracts for the school bus and is not solely hired to provide 93.13 transportation services under this paragraph. 93.14 (2) The operator drives the school bus only from points of 93.15 origin to points of destination, not including home-to-school 93.16 trips to pick up or drop off students. 93.17 (3) The operator is prohibited from using the eight-light 93.18 system. Violation of this clause is a misdemeanor. 93.19 (4) The operator's employer has adopted and implemented a 93.20 policy that provides for annual training and certification of 93.21 the operator in: 93.22 (i) safe operation of the type of school bus the operator 93.23 will be driving; 93.24 (ii) understanding student behavior, including issues 93.25 relating to students with disabilities; 93.26 (iii) encouraging orderly conduct of students on the bus 93.27 and handling incidents of misconduct appropriately; 93.28 (iv) knowing and understanding relevant laws, rules of the 93.29 road, and local school bus safety policies; 93.30 (v) handling emergency situations; and 93.31 (vi) safe loading and unloading of students. 93.32 (5) A background check or background investigation of the 93.33 operator has been conducted that meets the requirements under 93.34 section 122A.18, subdivision 8, or 123B.03 for teachers; section 93.35 144.057 or 245A.04 for day care employees; or section 171.321, 93.36 subdivision 3, for all other persons operating a type A school 94.1 bus under this paragraph. 94.2 (6) Operators shall submit to a physical examination as 94.3 required by section 171.321, subdivision 2. 94.4 (7) The operator's driver's license is verified annually by 94.5 the entity that owns, leases, or contracts for the school bus. 94.6 (8) A person who sustains a conviction, as defined under 94.7 section 609.02, of violating section 169A.25, 169A.26, 169A.27, 94.8 169A.31, 169A.51, or 169A.52, or a similar statute or ordinance 94.9 of another state is precluded from operating a school bus for 94.10 five years from the date of conviction. 94.11 (9) A person who sustains a conviction, as defined under 94.12 section 609.02, of a fourth moving offense in violation of 94.13 chapter 169 is precluded from operating a school bus for one 94.14 year from the date of the last conviction. 94.15 (10) Students riding the school bus must have training 94.16 required under section 123B.90, subdivision 2. 94.17 (11) An operator must be trained in the proper use of child 94.18 safety restraints as set forth in the National Highway Traffic 94.19 Safety Administration's "Guideline for the Safe Transportation 94.20 of Pre-school Age Children in School Buses." 94.21 (12) Annual certification of the requirements listed in 94.22 this paragraph must be maintained under separate file at the 94.23 business location for each operator licensed under this 94.24 paragraph and subdivision 2, paragraph (b), clause (5). The 94.25 business manager, school board, governing body of a nonpublic 94.26 school, or any other entity that owns, leases, or contracts for 94.27 the school bus operating under this paragraph is responsible for 94.28 maintaining these files for inspection. 94.29 (13) The school bus must bear a current certificate of 94.30 inspection issued under section 169.451. 94.31 (14) The word "School" on the front and rear of the bus 94.32 must be covered by a sign that reads "Activities" when the bus 94.33 is being operated under authority of this paragraph. 94.34 Sec. 61. Minnesota Statutes 2000, section 179A.20, is 94.35 amended by adding a subdivision to read: 94.36 Subd. 2b. [STRUCTURALLY BALANCED SCHOOL DISTRICT 95.1 BUDGETS.] (a) Prior to approving a collective bargaining 95.2 agreement that does not result from an interest arbitration 95.3 decision, a school board must determine by board resolution that 95.4 the proposed agreement will not cause structural imbalance in 95.5 the district's budget during the period of the agreement. 95.6 (b) A school board may only determine that an agreement 95.7 will not cause structural imbalance if expenditures will not 95.8 exceed available funds, taking into account: 95.9 (1) current state aid formulas; and 95.10 (2) reasonable and comprehensive projections of ongoing 95.11 revenues and expenditures for the period of the agreement. It 95.12 is expected that one-time revenue may not be used for ongoing 95.13 expenditures. The school board must make available with the 95.14 resolution a summary of the projections and calculations 95.15 supporting the determination. The projections and calculations 95.16 must include state aid formulas, pupil units, and employee 95.17 costs, including the terms of labor agreements, including the 95.18 agreement under consideration, fringe benefits, severance pay, 95.19 and staff changes. 95.20 (c) In addition to the determination required in paragraph 95.21 (a), the school board must project revenues, expenditures, and 95.22 fund balances for one year following the period of the 95.23 agreement. The projections must include the categories of 95.24 information described in paragraph (b), be reasonable and 95.25 comprehensive, and reference current state aid formulas. 95.26 (d) All projections and calculations required by this 95.27 section must be made available to the public prior to and at the 95.28 meeting where the resolution is adopted in a manner consistent 95.29 with state law on public notice and access to public data. 95.30 (e) In an interest arbitration, the district must submit, 95.31 and the exclusive bargaining representative may submit, proposed 95.32 determinations with supporting projections and calculations 95.33 consistent with paragraph (b) of the effect of the potential 95.34 decision on the structural balance of the district's budget. 95.35 The arbitrator must consider the potential effect of a decision 95.36 on the structural balance of the district's budget for the term 96.1 of the agreement. The arbitrator's decision must describe the 96.2 effect of the decision on the structural balance of the 96.3 district's budget in a manner consistent with paragraph (b). 96.4 The arbitrator's decision must also show the effect of the 96.5 decision on the school budget for one year following the term of 96.6 the contract at issue. Within 30 days of receipt of the 96.7 decision or when the board acts on the decision, whichever is 96.8 earlier, the school board must by resolution determine the 96.9 effect of the decision on the structural balance of its budget 96.10 for the term of the agreement consistent with paragraph (b). 96.11 (f) A copy of the resolution with the supporting 96.12 projections and calculations must be submitted to the 96.13 commissioner of children, families, and learning with the 96.14 uniform collective bargaining agreement settlement document 96.15 within 30 days of adoption of the resolution. The commissioner 96.16 must develop a model form for use by districts in reporting 96.17 projections and calculations. The commissioner must make all 96.18 resolutions, projections, and calculations available to the 96.19 public. 96.20 (g) Compliance with this section by itself is not an unfair 96.21 labor practice under section 179A.13, subdivision 2. 96.22 [EFFECTIVE DATE.] This section is effective the day 96.23 following final enactment and applies to contracts between 96.24 school boards and exclusive representatives of teachers for the 96.25 time period July 1, 2001, to June 30, 2003, and thereafter. 96.26 This section does not apply to contracts settled prior to the 96.27 effective date. 96.28 Sec. 62. [LABORATORY SCHOOL; INNOVATIVE TEACHING 96.29 TECHNIQUES.] 96.30 Subdivision 1. [PURPOSE.] The purpose of this section is 96.31 to ensure that the school children in kindergarten through grade 96.32 5 in the Randall area, elsewhere in the Little Falls school 96.33 district, and in all school districts in the state have access 96.34 to a high quality, innovative education experience. 96.35 Subd. 2. [JOINT OFFICE ESTABLISHED.] Independent school 96.36 district No. 482, Little Falls; the department of children, 97.1 families, and learning; Minnesota state colleges and 97.2 universities; and St. Cloud State University's school of 97.3 education shall collaborate for the purpose of establishing a 97.4 joint office, if funds are available, to evaluate curriculum, 97.5 instruction, and testing. The office shall be located at the 97.6 Dr. S. G. Knight school in Randall. 97.7 Subd. 3. [LABORATORY SCHOOL.] The office under authority 97.8 of independent school district No. 482, Little Falls shall, if 97.9 funds are available, operate a laboratory school program for 97.10 elementary students in kindergarten through grade 5 at the Dr. 97.11 S. G. Knight school. The laboratory school, if established, 97.12 must be used to develop innovative teaching techniques that 97.13 enhance students' learning experiences. The office, if 97.14 established, must make the innovative teaching techniques, which 97.15 must include testing of students' knowledge, developed at the 97.16 laboratory school available to all school districts in the state. 97.17 [EFFECTIVE DATE.] This section is effective July 1, 2001. 97.18 Sec. 63. [ALTERNATIVE MODELS FOR DELIVERING EDUCATION; 97.19 EXPANDING THE FLEXIBLE LEARNING YEAR PROGRAM.] 97.20 Subdivision 1. [ESTABLISHMENT; GOAL.] A three-year pilot 97.21 project is established to permit participating school districts 97.22 and school sites approved by the commissioner of children, 97.23 families, and learning under subdivision 2 to use alternative 97.24 models for delivering education by expanding the flexible 97.25 learning year program under Minnesota Statutes, sections 124D.12 97.26 to 124D.127. The project is intended to explore effective 97.27 alternatives for delivering education, with the goal of 97.28 improving instruction and students' educational outcomes and 97.29 opportunities and increasing the cost-effectiveness of 97.30 educational programs. 97.31 Subd. 2. [ELIGIBILITY; APPLICATIONS.] The commissioner 97.32 shall make application forms available to school districts and 97.33 school sites interested in exploring effective alternative 97.34 models for delivering instruction during a redefined flexible 97.35 learning year as described in this section. Interested school 97.36 districts and school sites must have their application to 98.1 participate in this program first approved by the local school 98.2 board and a majority of teachers employed in the district or at 98.3 the site, respectively, after a public hearing on the matter. 98.4 Applications must be submitted to the commissioner by January 1, 98.5 2002. The application must describe how the applicant proposes 98.6 to realize the goal of this project, including what activities 98.7 and procedures the applicant proposes to develop and implement 98.8 and the specific changes in the learning year the applicant 98.9 requires to accomplish those activities and procedures. The 98.10 commissioner, consistent with the requirements of this section, 98.11 shall approve applications before March 1, 2002. 98.12 Subd. 3. [EXEMPTIONS.] (a) Notwithstanding other laws or 98.13 rules to the contrary, a participant in the pilot project under 98.14 this section is exempt from Minnesota Statutes, sections 120A.40 98.15 and 120A.41, through the 2004-2005 school year. Minnesota 98.16 Statutes, sections 124D.12 to 124D.127, apply through the 98.17 2004-2005 school year except to the extent that the provisions 98.18 of this section or the participant's learning year changes 98.19 conflict with particular provisions in Minnesota Statutes, 98.20 sections 124D.12 to 124D.127. 98.21 (b) Consistent with this section, a participant may adopt a 98.22 learning year calendar that allows the participant to suitably 98.23 fulfill the educational needs of its students using an 98.24 alternative learning year calendar. The commissioner must 98.25 provide participants with a formula for computing average daily 98.26 membership so that all formulas based upon average daily 98.27 membership are not affected as a result of participating in this 98.28 pilot project. 98.29 Subd. 4. [TECHNICAL ASSISTANCE.] The commissioner, at the 98.30 request of a participant, must provide technical assistance to 98.31 the participant. Also, the commissioner must assist 98.32 participants in developing and implementing a valid and uniform 98.33 procedure to evaluate the efficacy of their alternative learning 98.34 year calendar, consistent with the goals of this section. 98.35 Subd. 5. [EVALUATION; REPORT.] (a) Participants must 98.36 complete a formative and summative evaluation of their 99.1 experiences in delivering education under an alternative 99.2 learning year calendar. Participants must focus the evaluation 99.3 on the overall efficacy of the pilot project, including the 99.4 cost-effectiveness of educational programs and the extent to 99.5 which students' educational outcomes and opportunities 99.6 improved. Participants shall use their interim evaluations, 99.7 with the commissioner's approval, to modify their project where 99.8 appropriate. 99.9 (b) Participants shall submit to the commissioner a 99.10 progress report by September 1, 2004, and a final report by 99.11 January 1, 2006, evaluating the cost-effectiveness of 99.12 educational programs and the extent to which students' 99.13 educational outcomes and opportunities improved. The 99.14 commissioner shall compile the reports to present to the 99.15 committees in the legislature that deal with education policy 99.16 and education finance by March 1, 2006. When presenting the 99.17 report, the commissioner must recommend whether or not to 99.18 continue or expand this pilot project. 99.19 [EFFECTIVE DATE.] This section is effective the day 99.20 following final enactment. 99.21 Sec. 64. [SCHOOLS' ACADEMIC AND FINANCIAL PERFORMANCE 99.22 EVALUATION; INDEPENDENT CONTRACTOR.] 99.23 (a) To assist taxpayers, educators, school board members, 99.24 and state and local officials in realizing their commitment to 99.25 improving student achievement and the management of school 99.26 systems, the commissioner of children, families, and learning 99.27 shall contract with an independent school evaluation services 99.28 contractor to evaluate and report on the academic and financial 99.29 performance of the state's independent school districts using 99.30 six core categories of analysis: 99.31 (1) school district expenditures; 99.32 (2) students' performance outcomes based on multiple 99.33 indicia including students' test scores, attendance rates, 99.34 dropout rates, and graduation rates; 99.35 (3) return on resources to determine the extent to which 99.36 student outcomes improve commensurate with increases in district 100.1 spending; 100.2 (4) school district finances, taxes, and debt to establish 100.3 the context for analyzing the district's return on resources 100.4 under clause (3); 100.5 (5) students' learning environment to establish the context 100.6 for analyzing the district's return on resources under clause 100.7 (3); and 100.8 (6) school district demographics to establish the 100.9 socioeconomic context for analyzing the district's return on 100.10 resources under clause (3). 100.11 (b) In order to compare the regional and socioeconomic 100.12 peers of particular school districts, monitor educational 100.13 changes over time and identify important educational trends, the 100.14 contractor shall use the six core categories of analysis to: 100.15 (1) identify allocations of baseline and incremental school 100.16 district spending; 100.17 (2) connect student achievement with expenditure patterns; 100.18 (3) track school district financial health; 100.19 (4) observe school district debt and capital spending 100.20 levels; and 100.21 (5) measure the return on a school district's educational 100.22 resources. 100.23 (c) The contractor under paragraph (a) shall evaluate and 100.24 report on the academic and financial performance of all school 100.25 districts. 100.26 (d) Consistent with paragraph (a), clause (2), the 100.27 evaluation and reporting of test scores must distinguish between: 100.28 (1) performance-based assessments; and 100.29 (2) academic, objective knowledge-based tests. 100.30 (e) The contractor must complete its written report and 100.31 submit it to the commissioner within 360 days of the date on 100.32 which the contract is signed. The commissioner immediately must 100.33 make the report available in a readily accessible format to 100.34 state and local elected officials, members of the public, 100.35 educators, parents, and other interested individuals. The 100.36 commissioner, upon receiving an individual's request, also must 101.1 make available all draft reports prepared by the contractor, 101.2 consistent with Minnesota Statutes, chapter 13. 101.3 Sec. 65. [EXCESSIVE CHARTER SCHOOL LEASE COSTS; RELATED 101.4 PARTIES.] 101.5 (a) This section applies only to charter school leases 101.6 entered into before July 1, 2001, that are between related 101.7 parties as defined in paragraph (c), clause (1). 101.8 (b) This section does not apply to a lease in which: 101.9 (1) the lessor and lessee are not related parties, as 101.10 defined in this section, as determined in writing by the 101.11 commissioner; or 101.12 (2) the lessor and lessee are related parties, but the 101.13 lessor is a nonprofit corporation under chapter 317A or a 101.14 cooperative under chapter 308A. 101.15 (c) For purposes of this section: 101.16 (1) "Related party" means an affiliate or close relative of 101.17 the other party in question, an affiliate of a close relative, 101.18 or a close relative of an affiliate. 101.19 (2) "Affiliate" means a person that directly, or indirectly 101.20 through one or more intermediaries, controls, or is controlled 101.21 by, or is under common control with, another person. 101.22 (3) "Close relative" means an individual whose relationship 101.23 by blood, marriage, or adoption to another individual is no more 101.24 remote than first cousin. 101.25 (4) "Person" means an individual or entity of any kind. 101.26 (5) "Control" includes the terms "controlling," "controlled 101.27 by," and "under common control with" and means the possession, 101.28 direct or indirect, of the power to direct or cause the 101.29 direction of the management, operations, or policies of a 101.30 person, whether through the ownership of voting securities, by 101.31 contract, or otherwise. 101.32 (d) To claim a lien under this section, the commissioner 101.33 must record with the county recorder or file with the registrar 101.34 of titles, whichever is appropriate, a document entitled "Notice 101.35 of Lien," stating that the commissioner of children, families, 101.36 and learning of the state of Minnesota claims a lien under this 102.1 section on the real property, including fixtures. The notice of 102.2 lien must contain a legal description of the leased real 102.3 property, be signed and acknowledged by the commissioner, and 102.4 meet all other applicable requirements for recording or filing. 102.5 (e) A lien created under this section secures the rights of 102.6 the commissioner under paragraph (f). 102.7 (f) The commissioner may recover from the lessor the amount 102.8 of rent or other payments made under the lease, to the extent 102.9 that the rent or other payments exceed the fair market rental 102.10 value of the real property, as determined by the commissioner. 102.11 If the lessor is not the holder of fee title to the real 102.12 property, the commissioner's right of recovery extends to the 102.13 holder of fee title if the lessor and holder of fee title are 102.14 related parties as defined in this section. 102.15 (g) The lien created under this section is subordinate to 102.16 the interest of any mortgagee or other lienholder of the 102.17 property, under a mortgage or other lien recorded or filed prior 102.18 to the recording or filing of the lien created in this section, 102.19 except that this provision does not apply to a mortgagee or 102.20 other lienholder that is a related party to the lessor or other 102.21 party against whom the commissioner has a right of recovery 102.22 under paragraph (f). The commissioner may agree to subordinate 102.23 the lien created under this paragraph to a prior or subsequent 102.24 mortgage or other lien if the commissioner determines that the 102.25 subordination is necessary to permit continued lawful operation 102.26 of the charter school. The commissioner shall subordinate the 102.27 lien created under this section to a prior mortgage or other 102.28 lien if necessary to establish that the prior mortgagee or other 102.29 lienor is not a related party to the lessor or other party 102.30 against whom the commissioner has a right of recovery. 102.31 (h) The lien created in this section is not enforceable 102.32 against, and is subordinate to, the interest of a good faith 102.33 purchaser for value of the real property who (1) is not a 102.34 related party of the lessor or of another party against whom the 102.35 commissioner has a right of recovery under paragraph (f), and 102.36 (2) purchases the real property before the recording or filing 103.1 of the notice of lien. 103.2 (i) If, or to the extent that, the commissioner determines 103.3 that the commissioner has no right of recovery under a lien 103.4 created under this section, the commissioner shall provide to 103.5 the lessor, or other party having an interest in the property, a 103.6 release or partial release of this lien. Any recording or 103.7 filing fees for the release are the responsibility of the person 103.8 requesting the release. 103.9 (j) A decision or action of the commissioner under this 103.10 subdivision may be appealed under chapter 14. 103.11 (k) A lien created under this section may be foreclosed in 103.12 the manner provided in chapter 581, with reasonable attorney 103.13 fees to be determined by the court. 103.14 (l) The commissioner must withhold the aid payments from a 103.15 charter school if, during the commissioner's annual review of 103.16 building lease agreements, the commissioner determines that the 103.17 charter school lease does not contain the notice of lien under 103.18 paragraph (d). 103.19 [EFFECTIVE DATE.] This section is effective the day 103.20 following final enactment. 103.21 Sec. 66. [CHARTER SCHOOL ADVISORY COUNCIL; EXPIRATION.] 103.22 The charter school advisory council under Minnesota 103.23 Statutes, section 124D.10, subdivision 26, expires June 30, 2003. 103.24 [EFFECTIVE DATE.] This section is effective the day 103.25 following final enactment. 103.26 Sec. 67. [TEST CONTENT.] 103.27 (a) The commissioner of the department of children, 103.28 families, and learning at least must include in the eighth grade 103.29 basic skills test in mathematics and in the mathematics portions 103.30 of the third, fifth, and seventh grade Minnesota comprehensive 103.31 assessments a sufficient number of test items to allow students 103.32 to demonstrate computational skills without using a calculator. 103.33 (b) The commissioner also must evaluate the impact of 103.34 including items from a variety of print sources in addition to 103.35 mass media, including fiction or nonfiction literature, in the 103.36 basic skills tests in reading. 104.1 [EFFECTIVE DATE.] The requirement in paragraph (a) to 104.2 include items to allow students to demonstrate computational 104.3 skills without using a calculator in the mathematics basic 104.4 skills test is effective February 1, 2002. The requirement in 104.5 paragraph (a) to include items to allow students to demonstrate 104.6 computational skills without using a calculator in the Minnesota 104.7 comprehensive assessments is effective February 1, 2004. 104.8 Paragraph (b) is effective the day following final enactment. 104.9 Sec. 68. [ACCESS TO TESTS.] 104.10 The commissioner of children, families, and learning must 104.11 adopt and publish a policy to provide public and parental access 104.12 for review of basic skills tests, Minnesota comprehensive 104.13 assessments, or any other such statewide test and assessment. 104.14 Upon receiving a written request, the commissioner must make 104.15 available to parents or guardians a copy of their student's 104.16 actual answer sheet to the test questions. 104.17 [EFFECTIVE DATE.] This section is effective February 1, 104.18 2002. 104.19 Sec. 69. [PROCESS TO ALLOW STUDENTS TO TAKE THE BASIC 104.20 SKILLS TEST AS EARLY AS FIFTH GRADE.] 104.21 The commissioner of children, families, and learning shall 104.22 develop a process to allow students to take the test of basic 104.23 requirements in reading, math, or writing beginning in grade 5. 104.24 The recommended process must include the parental or guardian 104.25 consent, a recommendation from the student's teacher to take a 104.26 test, and a policy that would limit the number of students who 104.27 take the test to only those that are likely to pass the test. 104.28 The commissioner shall consider options of an alternative test 104.29 or other methods that would preserve the statistical integrity 104.30 of the current scoring and sampling methods. The commissioner 104.31 shall report its recommendations to the education committees of 104.32 the legislature by February 1, 2002. 104.33 Sec. 70. [READING COMPETENCY; ST. CROIX RIVER EDUCATION 104.34 DISTRICT.] 104.35 The St. Croix river education district must use its 104.36 expertise in early literacy and the teaching of reading, its 105.1 strategies for improving students' reading ability, its student 105.2 performance measures, and its accountability structure to 105.3 measure reading program results, to assist school sites and 105.4 charter schools, including sites where at least 25 percent of 105.5 K-3 students are eligible to receive a free or reduced price 105.6 lunch, in achieving children's reading competency by the end of 105.7 third grade. The St. Croix river education district also must 105.8 work with preschool program staff to develop reading-related 105.9 skills that are research-based predictors of literacy. 105.10 Sec. 71. [NO DEPARTMENT OF CHILDREN, FAMILIES, AND 105.11 LEARNING AUDIT PENALTY.] 105.12 Notwithstanding other law or rule to the contrary, the 105.13 commissioner of children, families, and learning is prohibited 105.14 from imposing any penalty, including a financial penalty, on 105.15 independent school district No. 138, North Branch, as a result 105.16 of findings 7, 8, and 11, contained in a department of children, 105.17 families, and learning 1998-1999 fiscal year audit of pupil unit 105.18 counts related to the district's learning year program under 105.19 Minnesota Statutes, section 124D.128. 105.20 [EFFECTIVE DATE.] This section is effective the day 105.21 following final enactment. 105.22 Sec. 72. [DEADLINE AND PENALTY WAIVED.] 105.23 The deadline and penalty under Minnesota Statutes, section 105.24 123B.05, subdivision 2, do not apply for aid payments for the 105.25 2002-2003 biennium. 105.26 Sec. 73. [PARTICIPATION IN ATHLETIC ACTIVITIES; MINNESOTA 105.27 STATE HIGH SCHOOL LEAGUE STUDY.] 105.28 The Minnesota state high school league must prepare a 105.29 written report by February 15, 2002, for the legislative 105.30 committees charged with overseeing kindergarten through grade 12 105.31 education policy that indicates the interest of charter school 105.32 students in participating in athletic activities available in 105.33 the students' resident district. The Minnesota state high 105.34 school league at least must: 105.35 (1) survey the students enrolled in the state's charter 105.36 schools to determine how interested the students are in 106.1 participating in various athletic activities offered by their 106.2 resident school district; 106.3 (2) review the ability of charter schools to independently 106.4 or through a cooperative sponsorship provide students with 106.5 various athletic activities; and 106.6 (3) determine whether the league's cooperative sponsorship 106.7 rules need to be amended to facilitate cooperative sponsorship 106.8 arrangements involving charter schools. The Minnesota state 106.9 high school league must cover the costs of this report. 106.10 [EFFECTIVE DATE.] This section is effective the day 106.11 following final enactment. 106.12 Sec. 74. [SCIENCE LICENSURE.] 106.13 The board of teaching must issue a teaching license to an 106.14 applicant who qualifies to teach general science to students in 106.15 grades five to eight, or who qualifies to teach a specialty in 106.16 physics, chemistry, life science, or earth and space science to 106.17 students in grades nine to 12 if the applicant meets other 106.18 applicable licensure requirements, including the requirements of 106.19 Minnesota Statutes, section 122A.18, subdivision 8. 106.20 [EFFECTIVE DATE.] This section is effective the day 106.21 following final enactment. 106.22 Sec. 75. [CAREER AND TECHNICAL LEVY.] 106.23 For taxes payable in 2002 only, a district that received 106.24 revenue during fiscal year 2001 under Minnesota Statutes, 106.25 section 124D.453, may levy an amount equal to the district's 106.26 fiscal year 2001 entitlement for career and technical aid under 106.27 Minnesota Statutes, section 124D.453, or $7,500, whichever is 106.28 greater. The district may recognize the full amount of this 106.29 levy as revenue for fiscal year 2002. 106.30 Sec. 76. [INTEGRATION LEVY.] 106.31 For taxes payable in 2002 only, a district's integration 106.32 levy under Minnesota Statutes, section 124D.86, subdivision 4, 106.33 equals 37 percent of the district's integration revenue as 106.34 defined in Minnesota Statutes, section 124D.86, subdivision 3. 106.35 For fiscal year 2003 only, a district's integration aid under 106.36 Minnesota Statutes, section 124D.86, subdivision 5, equals 63 107.1 percent of the district's integration revenue as defined in 107.2 Minnesota Statutes, section 124D.86, subdivision 3. 107.3 Sec. 77. [APPROPRIATIONS.] 107.4 Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND 107.5 LEARNING.] The sums indicated in this section are appropriated 107.6 from the general fund to the department of children, families, 107.7 and learning for the fiscal years indicated. 107.8 Subd. 2. [EXAMINATION FEES; TEACHER TRAINING AND SUPPORT 107.9 PROGRAMS.] (a) For students' advanced placement and 107.10 international baccalaureate examination fees under Minnesota 107.11 Statutes 2000, section 120B.13, subdivision 3, and the training 107.12 and related costs for teachers and other interested educators 107.13 under Minnesota Statutes 2000, section 120B.13, subdivision 1: 107.14 $2,000,000 ..... 2002 107.15 $2,000,000 ..... 2003 107.16 Any funds unexpended in the first year do not cancel and 107.17 are available in the second year. 107.18 (b) The advanced placement program shall receive 75 percent 107.19 of the appropriation each year and the international 107.20 baccalaureate program shall receive 25 percent of the 107.21 appropriation each year. The department, in consultation with 107.22 representatives of the advanced placement and international 107.23 baccalaureate programs selected by the advanced placement 107.24 advisory council and IBMN, respectively, shall determine the 107.25 amounts of the expenditures each year for examination fees and 107.26 training and support programs for each program. 107.27 (c) Notwithstanding Minnesota Statutes, section 120B.13, 107.28 subdivision 1, $375,000 each year is for teachers to attend 107.29 subject matter summer training programs and follow-up support 107.30 workshops approved by the advanced placement or international 107.31 baccalaureate programs. The amount of the subsidy for each 107.32 teacher attending an advanced placement or international 107.33 baccalaureate summer training program or workshop shall be the 107.34 same. The commissioner shall determine the payment process and 107.35 the amount of the subsidy. 107.36 (d) Notwithstanding Minnesota Statutes, section 120B.13, 108.1 subdivision 3, in each year to the extent of available 108.2 appropriations, the commissioner shall pay all examination fees 108.3 for all students sitting for an advanced placement examination, 108.4 international baccalaureate examination, or both. If this 108.5 amount is not adequate, the commissioner may pay less than the 108.6 full examination fee. 108.7 Any balance in the first year does not cancel but is 108.8 available in the second year. 108.9 Subd. 3. [STATEWIDE TESTING.] For administering tests 108.10 under Minnesota Statutes, sections 120B.02; 120B.30, subdivision 108.11 1; and 120B.35: 108.12 $6,500,000 ..... 2002 108.13 $6,500,000 ..... 2003 108.14 Any balance in the first year does not cancel but is 108.15 available in the second year. 108.16 Subd. 4. [CHARTER SCHOOL BUILDING LEASE AID.] For building 108.17 lease aid under Minnesota Statutes, section 124D.11, subdivision 108.18 4: 108.19 $16,554,000 ..... 2002 108.20 $25,176,000 ..... 2003 108.21 The 2002 appropriation includes $1,114,000 for 2001 and 108.22 $15,440,000 for 2002. 108.23 The 2003 appropriation includes $1,715,000 for 2002 and 108.24 $23,461,000 for 2003. 108.25 Subd. 5. [CHARTER SCHOOL STARTUP GRANTS.] For charter 108.26 school startup cost aid under Minnesota Statutes, section 108.27 124D.11: 108.28 $2,738,000 ..... 2002 108.29 $3,143,000 ..... 2003 108.30 The 2002 appropriation includes $273,000 for 2001 and 108.31 $2,465,000 for 2002. 108.32 The 2003 appropriation includes $274,000 for 2002 and 108.33 $2,869,000 for 2003. 108.34 Subd. 6. [CHARTER SCHOOL INTEGRATION AID.] For grants to 108.35 charter schools to promote integration and desegregation under 108.36 Minnesota Statutes, section 124D.11, subdivision 6, paragraph 109.1 (e): 109.2 $45,000 ..... 2002 109.3 $50,000 ..... 2003 109.4 The 2002 appropriation includes $0 for 2001 and $45,000 for 109.5 2002. 109.6 The 2003 appropriation includes $5,000 for 2002 and $45,000 109.7 for 2003. 109.8 Any balance in the first year does not cancel but is 109.9 available in the second year. 109.10 Subd. 7. [BEST PRACTICES SEMINARS.] For best practices 109.11 graduation rule seminars and other professional development 109.12 capacity building activities that assure proficiency in teaching 109.13 and implementation of graduation rule standards: 109.14 $5,260,000 ..... 2002 109.15 $3,480,000 ..... 2003 109.16 $1,000,000 in fiscal year 2002 is for arts via the Internet 109.17 collaborative project between the Walker Art Center and the 109.18 Minneapolis Institute of Arts; $500,000 each year is for best 109.19 practices grants to intermediate school districts Nos. 287, 916, 109.20 and 917 to train teachers of special needs students under Laws 109.21 1998, chapter 398, article 5, section 42; and $250,000 each year 109.22 is for a grant to A Chance to Grow/New Visions for the Minnesota 109.23 Learning Resource Center. 109.24 The commissioner shall consider a curriculum development 109.25 grant, consistent with the graduation rule, to develop curricula 109.26 in the area of natural sciences including botany, horticulture, 109.27 and zoology. The grant shall also be used to provide 109.28 instructional materials on the Internet. The commissioner shall 109.29 consider best practices grants to districts for developing 109.30 gifted and talented services that are integrated with the 109.31 state's graduation standards. The commissioner shall consider a 109.32 grant to independent school district No. 621, Mounds View, for a 109.33 pilot project to establish a parallel block schedule strategy in 109.34 grades 1 through 3. 109.35 Subd. 8. [INTEGRATION AID.] For integration aid: 109.36 $65,478,000 ..... 2002 110.1 $51,996,000 ..... 2003 110.2 The 2002 appropriation includes $5,729,000 for 2001 and 110.3 $59,749,000 for 2002. 110.4 The 2003 appropriation includes $6,639,000 for 2002 and 110.5 $45,357,000 for 2003. 110.6 Subd. 9. [INTEGRATION PROGRAMS.] For minority fellowship 110.7 grants under Laws 1994, chapter 647, article 8, section 29; 110.8 minority teacher incentives under Minnesota Statutes, section 110.9 122A.65; teachers of color program grants under Minnesota 110.10 Statutes, section 122A.64; and cultural exchange grants under 110.11 Minnesota Statutes, section 124D.89: 110.12 $1,000,000 ..... 2002 110.13 $1,000,000 ..... 2003 110.14 In awarding teachers of color program grants, the 110.15 commissioner must give priority to districts that have students 110.16 who are in the process of currently completing their academic 110.17 program. 110.18 Any balance in the first year does not cancel but is 110.19 available in the second year. 110.20 Subd. 10. [MAGNET SCHOOL GRANTS.] For magnet school and 110.21 program grants under Minnesota Statutes, section 124D.871: 110.22 $750,000 ..... 2002 110.23 $750,000 ..... 2003 110.24 $100,000 in fiscal year 2002 is to extend the Ely magnet 110.25 school grant approved under Laws 2000, chapter 489, article 7, 110.26 section 15, subdivision 5. 110.27 Subd. 11. [MAGNET SCHOOL STARTUP AID.] For magnet school 110.28 startup aid under Minnesota Statutes, section 124D.88: 110.29 $482,000 ..... 2002 110.30 $326,000 ..... 2003 110.31 The 2002 appropriation includes $25,000 for 2001 and 110.32 $457,000 for 2002. 110.33 The 2003 appropriation includes $51,000 for 2002 and 110.34 $275,000 for 2003. 110.35 Subd. 12. [INTERDISTRICT DESEGREGATION OR INTEGRATION 110.36 TRANSPORTATION GRANTS.] For interdistrict desegregation or 111.1 integration transportation grants under Minnesota Statutes, 111.2 section 124D.87: 111.3 $2,932,000 ..... 2003 111.4 Subd. 13. [AMERICAN INDIAN LANGUAGE AND CULTURE PROGRAMS.] 111.5 For grants to American Indian language and culture education 111.6 programs under Minnesota Statutes 2000, section 124D.81, 111.7 subdivision 1: 111.8 $73,000 ..... 2002 111.9 The 2002 appropriation includes $73,000 for 2001 and $0 for 111.10 2002. 111.11 Subd. 14. [AMERICAN INDIAN EDUCATION.] For certain 111.12 American Indian education programs in school districts: 111.13 $17,000 ..... 2002 111.14 The 2002 appropriation includes $17,000 for 2001 and $0 for 111.15 2002. 111.16 Subd. 15. [SUCCESS FOR THE FUTURE.] For American Indian 111.17 success for the future grants according to Minnesota Statutes, 111.18 section 124D.81: 111.19 $2,047,000 ..... 2002 111.20 $2,137,000 ..... 2003 111.21 The 2002 appropriation includes $0 for 2001 and $2,047,000 111.22 for 2002. 111.23 The 2003 appropriation includes $255,000 for 2002 and 111.24 $2,132,000 for 2003. 111.25 Subd. 16. [AMERICAN INDIAN SCHOLARSHIPS.] For American 111.26 Indian scholarships under Minnesota Statutes, section 124D.84: 111.27 $1,875,000 ..... 2002 111.28 $1,875,000 ..... 2003 111.29 Any balance in the first year does not cancel but is 111.30 available in the second year. 111.31 Subd. 17. [AMERICAN INDIAN TEACHER PREPARATION GRANTS.] (a) 111.32 For joint grants to assist American Indian people to become 111.33 teachers under Minnesota Statutes, section 122A.63: 111.34 $190,000 ..... 2002 111.35 $190,000 ..... 2003 111.36 (b) Up to $70,000 each year is for a joint grant to the 112.1 University of Minnesota at Duluth and the Duluth school district. 112.2 (c) Up to $40,000 each year is for a joint grant to each of 112.3 the following: 112.4 (1) Bemidji state university and the Red Lake school 112.5 district; 112.6 (2) Moorhead state university and a school district located 112.7 within the White Earth reservation; and 112.8 (3) Augsburg college, independent school district No. 625, 112.9 St. Paul, and the Minneapolis school district. 112.10 (d) Money not used for students at one location may be 112.11 transferred for use at another location. 112.12 (e) Any balance in the first year does not cancel but is 112.13 available in the second year. 112.14 Subd. 18. [TRIBAL CONTRACT SCHOOLS.] For tribal contract 112.15 school aid under Minnesota Statutes, section 124D.83: 112.16 $2,520,000 ..... 2002 112.17 $2,767,000 ..... 2003 112.18 The 2002 appropriation includes $192,000 for 2001 and 112.19 $2,328,000 for 2002. 112.20 The 2003 appropriation includes $258,000 for 2002 and 112.21 $2,509,000 for 2003. 112.22 Subd. 19. [EARLY CHILDHOOD PROGRAMS AT TRIBAL 112.23 SCHOOLS.] For early childhood family education programs at 112.24 tribal contract schools: 112.25 $68,000 ..... 2002 112.26 $68,000 ..... 2003 112.27 Subd. 20. [FIRST GRADE PREPAREDNESS.] For first grade 112.28 preparedness grants under Minnesota Statutes, section 124D.081: 112.29 $7,150,000 ..... 2002 112.30 $7,250,000 ..... 2003 112.31 Subd. 21. [SECONDARY VOCATIONAL EDUCATION AID.] For 112.32 secondary vocational education aid under Minnesota Statutes, 112.33 section 124D.453: 112.34 $1,242,000 ..... 2002 112.35 The 2002 appropriation includes $1,242,000 for 2001 and $0 112.36 for 2002. 113.1 Subd. 22. [YOUTHWORKS PROGRAM.] For youthworks programs 113.2 under Minnesota Statutes, sections 124D.37 to 124D.45: 113.3 $1,788,000 ..... 2002 113.4 $1,788,000 ..... 2003 113.5 A grantee organization may provide health and child care 113.6 coverage to the dependents of each participant enrolled in a 113.7 full-time youth works program to the extent such coverage is not 113.8 otherwise available. 113.9 Up to $250,000 each year may be used for the jobs for 113.10 America graduates program. 113.11 Any balance in the first year does not cancel but is 113.12 available in the second year. 113.13 Subd. 23. [EDUCATION AND EMPLOYMENT TRANSITIONS PROGRAM 113.14 GRANTS.] For education and employment transitions programming 113.15 under Minnesota Statutes, section 124D.46: 113.16 $775,000 ..... 2002 113.17 $775,000 ..... 2003 113.18 $250,000 each year is for ISEEK. 113.19 $450,000 each year is for youth apprenticeship grants and 113.20 to conduct a high school follow-up survey to include first, 113.21 third, and sixth year graduates of Minnesota schools. 113.22 $75,000 each year is for grants to school districts for the 113.23 junior achievement program. 113.24 Any balance in the first year does not cancel but is 113.25 available in the second year. 113.26 Subd. 24. [LEARN AND EARN GRADUATION ACHIEVEMENT PROGRAM.] 113.27 For the learn and earn graduation achievement program according 113.28 to Minnesota Statutes, section 124D.32: 113.29 $725,000 ..... 2002 113.30 Any balance in the first year does not cancel but is 113.31 available in the second year. 113.32 Subd. 25. [SCHOOL EVALUATION SERVICES.] For contracting 113.33 with an independent school evaluation services contractor to 113.34 evaluate and report on school districts' academic and financial 113.35 performance under section 64: 113.36 $2,500,000 ..... 2002 114.1 Subd. 26. [MINNESOTA STUDENT ORGANIZATION FOUNDATION.] For 114.2 the Minnesota student organization foundation under Minnesota 114.3 Statutes, section 124D.34: 114.4 $625,000 ..... 2002 114.5 $625,000 ..... 2003 114.6 Any balance in the first year does not cancel but is 114.7 available in the second year. 114.8 Subd. 27. [READING COMPETENCY GRANTS.] For reading 114.9 competency grants under Minnesota Statutes, section 120B.12: 114.10 $100,000 ..... 2002 114.11 $100,000 ..... 2003 114.12 The commissioner must award one grant to the St. Croix 114.13 river education district by July 1, 2001. 114.14 Subd. 28. [LABORATORY SCHOOL; INNOVATIVE TEACHING 114.15 TECHNIQUES.] For a grant to independent school district No. 482, 114.16 Little Falls, for a laboratory school for innovative teaching 114.17 techniques in the Randall area: 114.18 $10,000 ..... 2002 114.19 Subd. 29. [ALTERNATIVE TEACHER COMPENSATION.] For 114.20 alternative teacher compensation established under Minnesota 114.21 Statutes, sections 124D.945 to 124D.947: 114.22 $4,000,000 ..... 2002 114.23 $4,000,000 ..... 2003 114.24 If the appropriations under this subdivision are 114.25 insufficient to fund all program participants, the participants 114.26 shall be prioritized by the commissioner by the date of receipt 114.27 of the application. A participant may receive less than the 114.28 maximum per pupil amount available under Minnesota Statutes, 114.29 section 124D.945, subdivision 3. 114.30 Any balance in the first year does not cancel but is 114.31 available in the second year. 114.32 Subd. 30. [COLLABORATIVE URBAN EDUCATOR RECRUITMENT AND 114.33 TRAINING PROGRAMS.] For grants to collaborative urban educator 114.34 recruitment and training programs: 114.35 $1,300,000 ..... 2002 114.36 $1,300,000 ..... 2003 115.1 $500,000 each year is for the Southeast Asian teacher 115.2 program at Concordia University, St. Paul; $400,000 each year is 115.3 for the collaborative urban educator program at the University 115.4 of St. Thomas; and $400,000 each year is for the center for 115.5 excellence in urban teaching at Hamline University. Grant 115.6 recipients must collaborate with urban and nonurban school 115.7 districts. 115.8 Any balance in the first year does not cancel but is 115.9 available in the second year. This appropriation is one-time 115.10 only. 115.11 Subd. 31. [LIMITED ENGLISH PROFICIENCY STUDY.] For a study 115.12 of limited English proficiency programs: 115.13 $20,000 ..... 2002 115.14 The department of children, families, and learning must 115.15 study current practices and program models as well as best 115.16 practice research into effective methodology for instructing 115.17 students with limited English proficiency so that they may 115.18 participate fully in English language classroom content and 115.19 develop appropriate assessments and instruments to determine the 115.20 effectiveness of programs for students with limited English 115.21 proficiency. The instruments must address the effectiveness of 115.22 the curriculum being taught, the instruction being provided, the 115.23 professional development provided, the manner in which student 115.24 progress in acquiring English language proficiency is assessed, 115.25 as well as other factors pertinent to the instruction of 115.26 students with limited English proficiency. The study shall 115.27 include best practice research-based methods of instructing 115.28 students who are not literate in their native language. The 115.29 department shall make the results of the study as well as the 115.30 instruments available to teachers and other educators involved 115.31 in the design and implementation of programs for students with 115.32 limited English proficiency and promote the use of best 115.33 practices described in the study. The department must submit 115.34 its report to the education committees of the legislature by 115.35 February 15, 2002. This appropriation is one-time only. 115.36 Sec. 78. [REPEALER.] 116.1 (a) Minnesota Statutes 2000, section 124D.85, is repealed. 116.2 (b) Minnesota Statutes 2000, section 124D.32, is repealed, 116.3 effective July 1, 2002. 116.4 (c) Minnesota Statutes 2000, sections 124D.128, subdivision 116.5 7, and 135A.081, are repealed effective the day following final 116.6 enactment. 116.7 (d) Minnesota Rules, part 3501.0280, subpart 3, is repealed. 116.8 ARTICLE 3 116.9 SPECIAL PROGRAMS 116.10 Section 1. Minnesota Statutes 2000, section 121A.41, 116.11 subdivision 10, is amended to read: 116.12 Subd. 10. [SUSPENSION.] "Suspension" means an action by 116.13 the school administration, under rules promulgated by the school 116.14 board, prohibiting a pupil from attending school for a period of 116.15 no more than ten school days. If a suspension is longer than 116.16 five days, the suspending administrator must provide the 116.17 superintendent with a reason for the longer suspension. This 116.18 definition does not apply to dismissal from school for one 116.19 school day or less, except as provided in federal law for a 116.20 student with a disability. Each suspension action may include a 116.21 readmission plan. The readmission plan shall include, where 116.22 appropriate, a provision for implementing alternative 116.23 educational services upon readmission and may not be used to 116.24 extend the current suspension. Consistent with section 125A.09, 116.25 subdivision 3, the readmission plan must not obligate a parent 116.26 to provide a sympathomimetic medication for the parent's child 116.27 as a condition of readmission. The school administration may 116.28 not impose consecutive suspensions against the same pupil for 116.29 the same course of conduct, or incident of misconduct, except 116.30 where the pupil will create an immediate and substantial danger 116.31 to self or to surrounding persons or property, or where the 116.32 district is in the process of initiating an expulsion, in which 116.33 case the school administration may extend the suspension to a 116.34 total of 15 days. In the case of a student with a disability, 116.35 the student's individual education plan team must meet 116.36 immediately but not more than ten school days after the date on 117.1 which the decision to remove the student from the student's 117.2 current education placement is made. The individual education 117.3 plan team shall at that meeting: conduct a review of the 117.4 relationship between the child's disability and the behavior 117.5 subject to disciplinary action; and determine the 117.6 appropriateness of the child's education plan. 117.7 The requirements of the individual education plan team 117.8 meeting apply when: 117.9 (1) the parent requests a meeting; 117.10 (2) the student is removed from the student's current 117.11 placement for five or more consecutive days; or 117.12 (3) the student's total days of removal from the student's 117.13 placement during the school year exceed ten cumulative days in a 117.14 school year. The school administration shall implement 117.15 alternative educational services when the suspension exceeds 117.16 five days. A separate administrative conference is required for 117.17 each period of suspension. 117.18 [EFFECTIVE DATE.] This section is effective the day 117.19 following final enactment. 117.20 Sec. 2. Minnesota Statutes 2000, section 122A.31, is 117.21 amended to read: 117.22 122A.31 [AMERICAN SIGN LANGUAGE/ENGLISH INTERPRETERS.] 117.23 Subdivision 1. [REQUIREMENTS FOR AMERICAN SIGN 117.24 LANGUAGE/ENGLISH INTERPRETERS.] (a) In addition to any other 117.25 requirements that a school district establishes, any person 117.26 employed to provide American sign language/English interpreting 117.27 or sign transliterating services on a full-time or part-time 117.28 basis for a school district after July 1, 2000, must: 117.29 (1) hold current interpreter and transliterator 117.30 certificates awarded by the Registry of Interpreters for the 117.31 Deaf (RID), or the general level interpreter proficiency 117.32 certificate awarded by the National Association of the Deaf 117.33 (NAD), or a comparable state certification from the commissioner 117.34 of children, families, and learning; and 117.35 (2) satisfactorily complete an interpreter/transliterator 117.36 training program affiliated with an accredited educational 118.1 institution. 118.2 (b) To provide American sign language/English interpreting118.3 or transliterating services on a full-time or part-time basis, a118.4 person employed in a school district during the 1999-2000 school118.5 year must only comply with paragraph (a), clause (1). The118.6 commissioner shall grant a nonrenewable, one-year provisional118.7 certificate to individuals who have not attained a current118.8 applicable transliterator certificate pursuant to paragraph (a),118.9 clause (1). During the one-year provisional period, the118.10 interpreter/transliterator must develop and implement an118.11 education plan in collaboration with a mentor under paragraph118.12 (d). This paragraph shall expire on June 30, 2001.118.13 (c)New graduates of an interpreter/transliterator program 118.14 affiliated with an accredited education institution shall be 118.15 granted a two-year provisional certificate by the commissioner. 118.16 During the two-year provisional period, the 118.17 interpreter/transliterator must develop and implement an 118.18 education plan in collaboration with a mentor under paragraph 118.19 (d)(c). This paragraph applies to spring semester 2000118.20 graduates and thereafter.118.21 (d)(c) A mentor of a provisionally certified 118.22 interpreter/transliterator must be an interpreter/transliterator 118.23 who has either NAD level IV or V certification or RID certified 118.24 interpreter and certified transliterator certification and have 118.25 at least three years interpreting/transliterating experience in 118.26 any educational setting. The mentor, in collaboration with the 118.27 provisionally certified interpreter/transliterator, shall 118.28 develop and implement an education plan designed to meet the 118.29 requirements of paragraph (a), clause (1), and include a weekly 118.30 on-site mentoring process. 118.31 (d) Consistent with the requirements of this paragraph, a 118.32 person holding a provisional certificate may apply to the 118.33 commissioner for one time-limited extension. The commissioner, 118.34 in consultation with the commission serving deaf and 118.35 hard-of-hearing people, must grant the person a time-limited 118.36 extension of the provisional certificate based on the following 119.1 documentation: 119.2 (1) letters of support from the person's mentor, a parent 119.3 of a pupil the person serves, the special education director of 119.4 the district in which the person is employed, and a 119.5 representative from the regional service center of the deaf and 119.6 hard-of-hearing; 119.7 (2) records of the person's formal education, training, 119.8 experience, and progress on the person's education plan; and 119.9 (3) an explanation of why the extension is needed. 119.10 As a condition of receiving the extension, the person must 119.11 comply with a plan and the accompanying time line for meeting 119.12 the requirements of this subdivision. A committee composed of 119.13 the director of the Minnesota resource center serving deaf and 119.14 hard-of-hearing, or the director's designee, a representative of 119.15 the Minnesota association of deaf citizens, a representative of 119.16 the Minnesota registry of interpreters of the deaf, and other 119.17 appropriate persons selected by the commissioner must develop 119.18 the plan and time line for the person receiving the extension. 119.19 (e) A school district may notemploy only an 119.20 interpreter/transliterator who has notbeen certified under 119.21 paragraph (a) ,or (b), or (c)for whom a time-limited extension 119.22 has been granted under paragraph (d). 119.23 Subd. 2. [ORAL OR CUED SPEECH TRANSLITERATORS.] (a) In 119.24 addition to any other requirements that a school district 119.25 establishes, any person employed to provide oral transliterating 119.26 or cued speech transliterating services on a full-time or 119.27 part-time basis for a school district after July 1, 2000, must 119.28 hold a current applicable transliterator certificate awarded by 119.29 the national certifying association or comparable state 119.30 certification from the commissioner of children, families, and 119.31 learning. 119.32 (b) To provide oral or cued speech transliterator services 119.33 on a full-time or part-time basis, a person employed in a school 119.34 district must comply with paragraph (a). The commissioner shall 119.35 grant a nonrenewable, two-year certificate to a school district 119.36 on behalf of a person who has not yet attained a current 120.1 applicable transliterator certificate under paragraph (a). A 120.2 person for whom a nonrenewable, two-year certificate is issued 120.3 must work under the direction of a licensed teacher who is 120.4 skilled in language development of individuals who are deaf or 120.5 hard-of-hearing. A person for whom a nonrenewable, two-year 120.6 certificate is issued also must enroll in a state-approved 120.7 training program and demonstrate progress towards the 120.8 certification required under paragraph (a) sufficient for the 120.9 person to be certified at the end of the two-year period. 120.10 (c) Consistent with the requirements of this paragraph, a 120.11 person holding a provisional certificate may apply to the 120.12 commissioner for one time-limited extension. The commissioner, 120.13 in consultation with the commission serving deaf and 120.14 hard-of-hearing people, must grant the person a time-limited 120.15 extension of the provisional certificate based on the following 120.16 documentation: 120.17 (1) letters of support from the person's mentor, a parent 120.18 of a pupil the person serves, the special education director of 120.19 the district in which the person is employed, and a 120.20 representative from the regional service center of the deaf and 120.21 hard-of-hearing; 120.22 (2) records of the person's formal education, training, 120.23 experience, and progress on the person's education plan; and 120.24 (3) an explanation of why the extension is needed. 120.25 As a condition of receiving the extension, the person must 120.26 comply with a plan and the accompanying time line for meeting 120.27 the requirements of this subdivision. A committee composed of 120.28 the director of the Minnesota resource center serving deaf and 120.29 hard-of-hearing, or the director's designee, a representative of 120.30 the Minnesota association of deaf citizens, a representative of 120.31 the Minnesota registry of interpreters of the deaf, and other 120.32 appropriate persons selected by the commissioner must develop 120.33 the plan and time line for the person receiving the extension. 120.34 Subd. 3. [QUALIFIED INTERPRETERS.] The department of 120.35 children, families, and learning and the resource center: deaf 120.36 and hard of hearing shall work with existing 121.1 interpreter/transliterator training programs, other 121.2 training/educational institutions, and the regional service 121.3 centers to ensure that ongoing staff development training for 121.4 educational interpreters/transliterators is provided throughout 121.5 the state. 121.6 Subd. 4. [REIMBURSEMENT.] (a) For purposes of revenue 121.7 under section 125A.78, the department of children, families, and 121.8 learning must only reimburse school districts for the services 121.9 of those interpreters/transliterators who satisfy the standards 121.10 of competency under this section. 121.11 (b) Notwithstanding paragraph (a), a district shall be 121.12 reimbursed for the services of interpreters with a nonrenewable 121.13 provisional certificate and, interpreters/transliterators 121.14 employed to mentor the provisional certified interpreters, and 121.15 persons for whom a time-limited extension has been granted under 121.16 subdivision 1, paragraph (d), or subdivision 2, paragraph (c). 121.17 [EFFECTIVE DATE.] This section is effective for the 121.18 2001-2002 school year and later. 121.19 Sec. 3. Minnesota Statutes 2000, section 122A.61, 121.20 subdivision 1, is amended to read: 121.21 Subdivision 1. [STAFF DEVELOPMENT REVENUE.] A district is 121.22 required to reserve an amount equal to at least two percent of 121.23 the basic revenue under section 126C.10, subdivision 2, for 121.24 in-service education for programs under section 120B.22, 121.25 subdivision 2, for staff development plans, including plans for 121.26 challenging instructional activities and experiences under 121.27 section 122A.60, and for curriculum development and programs, 121.28 other in-service education, teachers' workshops, teacher 121.29 conferences, the cost of substitute teachers staff development 121.30 purposes, preservice and in-service education for special 121.31 education professionals and paraprofessionals, and other related 121.32 costs for staff development efforts. A district may annually 121.33 waive the requirement to reserve their basic revenue under this 121.34 section if a majority vote of the licensed teachers in the 121.35 district and a majority vote of the school board agree to a 121.36 resolution to waive the requirement. A district in statutory 122.1 operating debt is exempt from reserving basic revenue according 122.2 to this section. Districts may expend an additional amount of 122.3 unreserved revenue for staff development based on their needs. 122.4 With the exception of amounts reserved for staff development 122.5 from revenues allocated directly to school sites, the board must 122.6 initially allocate 50 percent of the reserved revenue to each 122.7 school site in the district on a per teacher basis, which must 122.8 be retained by the school site until used. The board may retain 122.9 25 percent to be used for district wide staff development 122.10 efforts. The remaining 25 percent of the revenue must be used 122.11 to make grants to school sites for best practices methods. A 122.12 grant may be used for any purpose authorized under section 122.13 120B.22, subdivision 2, 122A.60, or for the costs of curriculum 122.14 development and programs, other in-service education, teachers' 122.15 workshops, teacher conferences, substitute teachers for staff 122.16 development purposes, and other staff development efforts, and 122.17 determined by the site professional development team. The site 122.18 professional development team must demonstrate to the school 122.19 board the extent to which staff at the site have met the 122.20 outcomes of the program. The board may withhold a portion of 122.21 initial allocation of revenue if the staff development outcomes 122.22 are not being met. 122.23 [EFFECTIVE DATE.] This section is effective the day 122.24 following final enactment. 122.25 Sec. 4. Minnesota Statutes 2000, section 124D.65, 122.26 subdivision 5, is amended to read: 122.27 Subd. 5. [SCHOOL DISTRICT LEP REVENUE.] (a) A school 122.28 district's limited English proficiency programs revenue for 122.29 fiscal year 2000 equals the state total limited English 122.30 proficiency programs revenue, minus the amount determined under 122.31 paragraph (b), times the ratio of the district's adjusted 122.32 limited English proficiency programs base revenue to the state 122.33 total adjusted limited English proficiency programs base revenue. 122.34 (b) Notwithstanding paragraph (a), if the limited English 122.35 proficiency programs base revenue for a district equals zero, 122.36 the limited English proficiency programs revenue equals the sum 123.1 of the following amounts, computed using current year data: 123.2 (1) 68 percent of the salary of one full-time equivalent 123.3 teacher for each 40 pupils of limited English proficiency 123.4 enrolled, or 68 percent of the salary of one-half of a full-time 123.5 teacher in a district with 20 or fewer pupils of limited English 123.6 proficiency enrolled; and 123.7 (2) for supplies and equipment purchased or rented for use 123.8 in the instruction of pupils of limited English proficiency an 123.9 amount equal to 47 percent of the sum actually spent by the 123.10 district but not to exceed an average of $47 in any one school 123.11 year for each pupil of limited English proficiency receiving 123.12 instruction. 123.13 (c) A district's limited English proficiency programs 123.14 revenue for fiscal year 2001 and later equals the product of 123.15 $584 times the greater of 20 or the number of adjusted marginal 123.16 cost pupils of limited English proficiency enrolled in the 123.17 district during the current fiscal year. 123.18 (d) A pupil ceases to generate state limited English 123.19 proficiency aid in the school year following the school year in 123.20 which the pupil attains the state cut-off score on a 123.21 commissioner-provided assessment that measures the pupil's 123.22 emerging academic English. 123.23 [EFFECTIVE DATE.] This section is effective July 1, 2002. 123.24 Sec. 5. Minnesota Statutes 2000, section 125A.023, 123.25 subdivision 4, is amended to read: 123.26 Subd. 4. [STATE INTERAGENCY COMMITTEE.] (a) The governor 123.27 shall convene an 18-membera 19-member interagency committee to 123.28 develop and implement a coordinated, multidisciplinary, 123.29 interagency intervention service system for children ages three 123.30 to 21 with disabilities. The commissioners of commerce, 123.31 children, families, and learning, health, human rights, human 123.32 services, economic security, and corrections shall each appoint 123.33 two committee members from their departments; the association of 123.34 Minnesota counties shall appoint two county representatives, one 123.35 of whom must be an elected official, as committee members; and 123.36 the Minnesota school boards association, the Minnesota 124.1 administrators of special education, and the school nurse 124.2 association of Minnesota shall each appoint one committee 124.3 member. The committee shall select a chair from among its 124.4 members. 124.5 (b) The committee shall: 124.6 (1) identify and assist in removing state and federal 124.7 barriers to local coordination of services provided to children 124.8 with disabilities; 124.9 (2) identify adequate, equitable, and flexible funding 124.10 sources to streamline these services; 124.11 (3) develop guidelines for implementing policies that 124.12 ensure a comprehensive and coordinated system of all state and 124.13 local agency services, including multidisciplinary assessment 124.14 practices for children with disabilities ages three to 21; 124.15 (4) develop, consistent with federal law, a standardized 124.16 written plan for providing services to a child with 124.17 disabilities; 124.18 (5) identify how current systems for dispute resolution can 124.19 be coordinated and develop guidelines for that coordination; 124.20 (6) develop an evaluation process to measure the success of 124.21 state and local interagency efforts in improving the quality and 124.22 coordination of services to children with disabilities ages 124.23 three to 21; 124.24 (7) develop guidelines to assist the governing boards of 124.25 the interagency early intervention committees in carrying out 124.26 the duties assigned in section 125A.027, subdivision 1, 124.27 paragraph (b); and 124.28 (8) carry out other duties necessary to develop and 124.29 implement within communities a coordinated, multidisciplinary, 124.30 interagency intervention service system for children with 124.31 disabilities. 124.32 (c) The committee shall consult on an ongoing basis with 124.33 the state education advisory committee for special education and 124.34 the governor's interagency coordinating council in carrying out 124.35 its duties under this section, including assisting the governing 124.36 boards of the interagency early intervention committees. 125.1 Sec. 6. Minnesota Statutes 2000, section 125A.027, is 125.2 amended by adding a subdivision to read: 125.3 Subd. 4. [RESPONSIBILITIES OF SCHOOL AND COUNTY 125.4 BOARDS.] (a) It is the joint responsibility of school and county 125.5 boards to coordinate, provide, and pay for appropriate services, 125.6 and to facilitate payment for services from public and private 125.7 sources. Appropriate service for children eligible under 125.8 section 125A.02 and receiving service from two or more public 125.9 agencies of which one is the public school must be determined in 125.10 consultation with parents, physicians, and other education, 125.11 medical health, and human services providers. The services 125.12 provided must be in conformity with an Individual Interagency 125.13 Intervention Plan (IIIP) for each eligible child ages 3 to 21. 125.14 (b) Appropriate services include those services listed on a 125.15 child's IIIP. These services are those that are required to be 125.16 documented on a plan under federal and state law or rule. 125.17 (c) School and county boards shall coordinate interagency 125.18 services. Service responsibilities for eligible children, ages 125.19 3 to 21, shall be established in interagency agreements or joint 125.20 powers board agreements. In addition, interagency agreements or 125.21 joint powers board agreements shall be developed to establish 125.22 agency responsibility that assures that coordinated interagency 125.23 services are coordinated, provided, and paid for, and that 125.24 payment is facilitated from public and private sources. School 125.25 boards must provide, pay for, and facilitate payment for special 125.26 education services as required under sections 125A.05 and 125.27 125A.06. County boards must provide, pay for, and facilitate 125.28 payment for those programs over which they have service and 125.29 fiscal responsibility as referenced in section 125A.023, 125.30 subdivision 3, paragraph (d), clause (1). 125.31 Sec. 7. Minnesota Statutes 2000, section 125A.08, is 125.32 amended to read: 125.33 125A.08 [SCHOOL DISTRICT OBLIGATIONS.] 125.34 (a) As defined in this section, every district must ensure 125.35 the following: 125.36 (1) all students with disabilities are provided the special 126.1 instruction and services which are appropriate to their needs. 126.2 Where the individual education plan team has determined 126.3 appropriate goals and objectives based on the student's needs, 126.4 including the extent to which the student can be included in the 126.5 least restrictive environment, and where there are essentially 126.6 equivalent and effective instruction, related services, or 126.7 assistive technology devices available to meet the student's 126.8 needs, cost to the district may be among the factors considered 126.9 by the team in choosing how to provide the appropriate services, 126.10 instruction, or devices that are to be made part of the 126.11 student's individual education plan. The individual education 126.12 plan team shall consider and may authorize services covered by 126.13 medical assistance according to section 256B.0625, subdivision 126.14 26. The student's needs and the special education instruction 126.15 and services to be provided must be agreed upon through the 126.16 development of an individual education plan. The plan must 126.17 address the student's need to develop skills to live and work as 126.18 independently as possible within the community. The individual 126.19 education plan team must consider positive behavioral 126.20 interventions, strategies, and supports that address behavior 126.21 for children with attention deficit disorder or attention 126.22 deficit hyperactivity disorder. By grade 9 or age 14, the plan 126.23 must address the student's needs for transition from secondary 126.24 services to post-secondary education and training, employment, 126.25 community participation, recreation, and leisure and home 126.26 living. In developing the plan, districts must inform parents 126.27 of the full range of transitional goals and related services 126.28 that should be considered. The plan must include a statement of 126.29 the needed transition services, including a statement of the 126.30 interagency responsibilities or linkages or both before 126.31 secondary services are concluded; 126.32 (2) children with a disability under age five and their 126.33 families are provided special instruction and services 126.34 appropriate to the child's level of functioning and needs; 126.35 (3) children with a disability and their parents or 126.36 guardians are guaranteed procedural safeguards and the right to 127.1 participate in decisions involving identification, assessment 127.2 including assistive technology assessment, and educational 127.3 placement of children with a disability; 127.4 (4) eligibility and needs of children with a disability are 127.5 determined by an initial assessment or reassessment, which may 127.6 be completed using existing data under United States Code, title 127.7 20, section 33, et seq.; 127.8 (5) to the maximum extent appropriate, children with a 127.9 disability, including those in public or private institutions or 127.10 other care facilities, are educated with children who are not 127.11 disabled, and that special classes, separate schooling, or other 127.12 removal of children with a disability from the regular 127.13 educational environment occurs only when and to the extent that 127.14 the nature or severity of the disability is such that education 127.15 in regular classes with the use of supplementary services cannot 127.16 be achieved satisfactorily; 127.17 (6) in accordance with recognized professional standards, 127.18 testing and evaluation materials, and procedures used for the 127.19 purposes of classification and placement of children with a 127.20 disability are selected and administered so as not to be 127.21 racially or culturally discriminatory; and 127.22 (7) the rights of the child are protected when the parents 127.23 or guardians are not known or not available, or the child is a 127.24 ward of the state. 127.25 (b) For paraprofessionals employed to work in programs for 127.26 students with disabilities, the school board in each district 127.27 shall ensure that: 127.28 (1) before or immediately upon employment, each 127.29 paraprofessional develops sufficient knowledge and skills in 127.30 emergency procedures, building orientation, roles and 127.31 responsibilities, confidentiality, vulnerability, and 127.32 reportability, among other things, to begin meeting the needs of 127.33 the students with whom the paraprofessional works; 127.34 (2) annual training opportunities are available to enable 127.35 the paraprofessional to continue to further develop the 127.36 knowledge and skills that are specific to the students with whom 128.1 the paraprofessional works, including understanding 128.2 disabilities, following lesson plans, and implementing follow-up 128.3 instructional procedures and activities; and 128.4 (3) a districtwide process obligates each paraprofessional 128.5 to work under the ongoing direction of a licensed teacher and, 128.6 where appropriate and possible, the supervision of a school 128.7 nurse. 128.8 [EFFECTIVE DATE.] This section is effective the day 128.9 following final enactment. 128.10 Sec. 8. Minnesota Statutes 2000, section 125A.09, 128.11 subdivision 3, is amended to read: 128.12 Subd. 3. [INITIAL ACTION; PARENT CONSENT.] (a) The 128.13 district must not proceed with the initial formal assessment of 128.14 a child, the initial placement of a child in a special education 128.15 program, or the initial provision of special education services 128.16 for a child without the prior written consent of the child's 128.17 parent or guardian. The refusal of a parent or guardian to 128.18 consent may be overridden by the decision in a hearing held 128.19 pursuant to subdivision 6 at the district's initiative. 128.20 (b) A parent, after consulting with health care, education, 128.21 or other professional providers, may agree or disagree to 128.22 provide the parent's child with sympathomimetic medications 128.23 unless section 144.344 applies. 128.24 [EFFECTIVE DATE.] This section is effective the day 128.25 following final enactment. 128.26 Sec. 9. Minnesota Statutes 2000, section 125A.11, 128.27 subdivision 3, is amended to read: 128.28 Subd. 3. [AGREEMENT BETWEEN DISTRICTS TO PROVIDE SPECIAL 128.29 INSTRUCTION AND SERVICES.] For the purposes of this section, any 128.30 school district may enter into an agreement, upon mutually 128.31 agreed upon terms and conditions, to provide special instruction 128.32 and services for children with a disability. In that event, one 128.33 of the participating units may employ and contract with 128.34 necessary qualified personnel to offer services in the several 128.35 districts. Each participating unit must reimburse the employing 128.36 unit a proportionate amount of the actual cost of providing the 129.1 special instruction and services, less the amount of state 129.2 special education aid , which shall be claimed in full by the129.3 employing district. 129.4 Sec. 10. Minnesota Statutes 2000, section 125A.27, 129.5 subdivision 15, is amended to read: 129.6 Subd. 15. [PART HC STATE PLAN.] "Part HC state plan" 129.7 means the annual state plan application approved by the federal 129.8 government under the Individuals with Disabilities Education 129.9 Act, United States Code, title 20, section 1471 et seq. (Part H129.10 C, Public Law Number 102-119105-117). 129.11 Sec. 11. Minnesota Statutes 2000, section 125A.515, is 129.12 amended to read: 129.13 125A.515 [PLACEMENT OF CHILDREN WITHOUT DISABILITIES; 129.14 APPROVAL OF EDUCATION PROGRAM.] 129.15 The commissioner shall approve education programs in care 129.16 and treatment facilities for placement of children without 129.17 disabilities , including detention centers,before being licensed 129.18 by the department of human services or the department of 129.19 corrections. For the purposes of this section, care and 129.20 treatment facilities includes adult facilities that admit 129.21 children and provide an education program specifically designed 129.22 for children who are residents of the facility including 129.23 chemical dependency and other substance abuse programs, shelter 129.24 care facilities, hospitals, correctional facilities, mental 129.25 health programs, and detention facilities. 129.26 Sec. 12. Minnesota Statutes 2000, section 125A.76, 129.27 subdivision 1, is amended to read: 129.28 Subdivision 1. [DEFINITIONS.] For the purposes of this 129.29 section, the definitions in this subdivision apply. 129.30 (a) "Base year" for fiscal year 1998 and later fiscal years 129.31 means the second fiscal year preceding the fiscal year for which 129.32 aid will be paid. 129.33 (b) "Basic revenue" has the meaning given it in section 129.34 126C.10, subdivision 2. For the purposes of computing basic 129.35 revenue pursuant to this section, each child with a disability 129.36 shall be counted as prescribed in section 126C.05, subdivision 1. 130.1 (c) "Essential personnel" means teachers, cultural 130.2 liaisons, related services, and support services staff providing 130.3 direct services to students. Essential personnel may also 130.4 include special education paraprofessionals or clericals 130.5 providing support to teachers and students by preparing 130.6 paperwork and making arrangements related to special education 130.7 compliance requirements, including parent meetings and 130.8 individual education plans. 130.9 (d) "Average daily membership" has the meaning given it in 130.10 section 126C.05. 130.11 (e) "Program growth factor" means 1.08 for fiscal year 130.12 2002, and 1.046 for fiscal year 2003 and later. 130.13 Sec. 13. Minnesota Statutes 2000, section 125A.76, 130.14 subdivision 2, is amended to read: 130.15 Subd. 2. [SPECIAL EDUCATION BASE REVENUE.] (a) The special 130.16 education base revenue equals the sum of the following amounts 130.17 computed using base year data: 130.18 (1) 68 percent of the salary of each essential person 130.19 employed in the district's program for children with a 130.20 disability during the fiscal year, not including the share of130.21 salaries for personnel providing health-related services counted130.22 in clause (8),whether the person is employed by one or more 130.23 districts or a Minnesota correctional facility operating on a 130.24 fee-for-service basis; 130.25 (2) for the Minnesota state academy for the deaf or the 130.26 Minnesota state academy for the blind, 68 percent of the salary 130.27 of each instructional aide assigned to a child attending the 130.28 academy, if that aide is required by the child's individual 130.29 education plan; 130.30 (3) for special instruction and services provided to any 130.31 pupil by contracting with public, private, or voluntary agencies 130.32 other than school districts, in place of special instruction and 130.33 services provided by the district, 52 percent of the difference 130.34 between the amount of the contract and the basic revenue of the130.35 district for that pupilamount of the basic revenue, as defined 130.36 in section 126C.10, subdivision 2, special education aid, and 131.1 any other aid earned on behalf of the child for the fraction of 131.2 the school day the pupil receives services under the contract; 131.3 (4) for special instruction and services provided to any 131.4 pupil by contracting for services with public, private, or 131.5 voluntary agencies other than school districts, that are 131.6 supplementary to a full educational program provided by the 131.7 school district, 52 percent of the amount of the contract for 131.8 that pupil; 131.9 (5) for supplies and equipment purchased or rented for use 131.10 in the instruction of children with a disability, not including131.11 the portion of the expenses for supplies and equipment used to131.12 provide health-related services counted in clause (8),an amount 131.13 equal to 47 percent of the sum actually expended by the 131.14 district, or a Minnesota correctional facility operating on a 131.15 fee-for-service basis, but not to exceed an average of $47 in 131.16 any one school year for each child with a disability receiving 131.17 instruction; 131.18 (6) for fiscal years 1997 and later, special education base 131.19 revenue shall include amounts under clauses (1) to (5) for 131.20 special education summer programs provided during the base year 131.21 for that fiscal year; and 131.22 (7) for fiscal years 1999 and later, the cost of providing 131.23 transportation services for children with disabilities under 131.24 section 123B.92, subdivision 1, paragraph (b), clause (4). 131.25 The department shall establish procedures through the 131.26 uniform financial accounting and reporting system to identify 131.27 and track all revenues generated from third-party billings as 131.28 special education revenue at the school district level; include 131.29 revenue generated from third-party billings as special education 131.30 revenue in the annual cross-subsidy report; and exclude 131.31 third-party revenue from calculation of excess cost aid to the 131.32 districts. 131.33 (b) If requested by a school district operating a special 131.34 education program during the base year for less than the full 131.35 fiscal year, or a school district in which is located a 131.36 Minnesota correctional facility operating on a fee-for-service 132.1 basis for less than the full fiscal year, the commissioner may 132.2 adjust the base revenue to reflect the expenditures that would 132.3 have occurred during the base year had the program been operated 132.4 for the full fiscal year. 132.5 (c) Notwithstanding paragraphs (a) and (b), the portion of 132.6 a school district's base revenue attributable to a Minnesota 132.7 correctional facility operating on a fee-for-service basis 132.8 during the facility's first year of operating on a 132.9 fee-for-service basis shall be computed using current year data. 132.10 Sec. 14. Minnesota Statutes 2000, section 260A.01, is 132.11 amended to read: 132.12 260A.01 [TRUANCY PROGRAMS AND SERVICES.] 132.13 (a) The programs in this chapter are designed to provide a 132.14 continuum of intervention and services to support families and 132.15 children in keeping children in school and combating truancy and 132.16 educational neglect. School districts, county attorneys, and 132.17 law enforcement may establish the programs and coordinate them 132.18 with other community-based truancy services in order to provide 132.19 the necessary and most effective intervention for children and 132.20 their families. This continuum of intervention and services 132.21 involves progressively intrusive intervention, beginning with 132.22 strong service-oriented efforts at the school and community 132.23 level and involving the court's authority only when necessary. 132.24 (b) Consistent with section 125A.09, subdivision 3, a 132.25 parent's refusal to provide the parent's child with 132.26 sympathomimetic medications does not constitute educational 132.27 neglect. 132.28 [EFFECTIVE DATE.] This section is effective the day 132.29 following final enactment. 132.30 Sec. 15. Minnesota Statutes 2000, section 260C.163, 132.31 subdivision 11, is amended to read: 132.32 Subd. 11. [PRESUMPTIONS REGARDING TRUANCY OR EDUCATIONAL 132.33 NEGLECT.] (a) A child's absence from school is presumed to be 132.34 due to the parent's, guardian's, or custodian's failure to 132.35 comply with compulsory instruction laws if the child is under 12 132.36 years old and the school has made appropriate efforts to resolve 133.1 the child's attendance problems; this presumption may be 133.2 rebutted based on a showing by clear and convincing evidence 133.3 that the child is habitually truant. A child's absence from 133.4 school without lawful excuse, when the child is 12 years old or 133.5 older, is presumed to be due to the child's intent to be absent 133.6 from school; this presumption may be rebutted based on a showing 133.7 by clear and convincing evidence that the child's absence is due 133.8 to the failure of the child's parent, guardian, or custodian to 133.9 comply with compulsory instruction laws, sections 120A.22 and 133.10 120A.24. 133.11 (b) Consistent with section 125A.09, subdivision 3, a 133.12 parent's refusal to provide the parent's child with 133.13 sympathomimetic medications does not constitute educational 133.14 neglect. 133.15 [EFFECTIVE DATE.] This section is effective the day 133.16 following final enactment. 133.17 Sec. 16. Minnesota Statutes 2000, section 626.556, 133.18 subdivision 2, is amended to read: 133.19 Subd. 2. [DEFINITIONS.] As used in this section, the 133.20 following terms have the meanings given them unless the specific 133.21 content indicates otherwise: 133.22 (a) "Sexual abuse" means the subjection of a child by a 133.23 person responsible for the child's care, by a person who has a 133.24 significant relationship to the child, as defined in section 133.25 609.341, or by a person in a position of authority, as defined 133.26 in section 609.341, subdivision 10, to any act which constitutes 133.27 a violation of section 609.342 (criminal sexual conduct in the 133.28 first degree), 609.343 (criminal sexual conduct in the second 133.29 degree), 609.344 (criminal sexual conduct in the third degree), 133.30 609.345 (criminal sexual conduct in the fourth degree), or 133.31 609.3451 (criminal sexual conduct in the fifth degree). Sexual 133.32 abuse also includes any act which involves a minor which 133.33 constitutes a violation of prostitution offenses under sections 133.34 609.321 to 609.324 or 617.246. Sexual abuse includes threatened 133.35 sexual abuse. 133.36 (b) "Person responsible for the child's care" means (1) an 134.1 individual functioning within the family unit and having 134.2 responsibilities for the care of the child such as a parent, 134.3 guardian, or other person having similar care responsibilities, 134.4 or (2) an individual functioning outside the family unit and 134.5 having responsibilities for the care of the child such as a 134.6 teacher, school administrator, or other lawful custodian of a 134.7 child having either full-time or short-term care 134.8 responsibilities including, but not limited to, day care, 134.9 babysitting whether paid or unpaid, counseling, teaching, and 134.10 coaching. 134.11 (c) "Neglect" means: 134.12 (1) failure by a person responsible for a child's care to 134.13 supply a child with necessary food, clothing, shelter, health, 134.14 medical, or other care required for the child's physical or 134.15 mental health when reasonably able to do so; 134.16 (2) failure to protect a child from conditions or actions 134.17 which imminently and seriously endanger the child's physical or 134.18 mental health when reasonably able to do so; 134.19 (3) failure to provide for necessary supervision or child 134.20 care arrangements appropriate for a child after considering 134.21 factors as the child's age, mental ability, physical condition, 134.22 length of absence, or environment, when the child is unable to 134.23 care for the child's own basic needs or safety, or the basic 134.24 needs or safety of another child in their care; 134.25 (4) failure to ensure that the child is educated as defined 134.26 in sections 120A.22 and 260C.163, subdivision 11, which does not 134.27 include a parent's refusal to provide the parent's child with 134.28 sympathomimetic medications, consistent with section 125A.09, 134.29 subdivision 3; 134.30 (5) nothing in this section shall be construed to mean that 134.31 a child is neglected solely because the child's parent, 134.32 guardian, or other person responsible for the child's care in 134.33 good faith selects and depends upon spiritual means or prayer 134.34 for treatment or care of disease or remedial care of the child 134.35 in lieu of medical care; except that a parent, guardian, or 134.36 caretaker, or a person mandated to report pursuant to 135.1 subdivision 3, has a duty to report if a lack of medical care 135.2 may cause serious danger to the child's health. This section 135.3 does not impose upon persons, not otherwise legally responsible 135.4 for providing a child with necessary food, clothing, shelter, 135.5 education, or medical care, a duty to provide that care; 135.6 (6) prenatal exposure to a controlled substance, as defined 135.7 in section 253B.02, subdivision 2, used by the mother for a 135.8 nonmedical purpose, as evidenced by withdrawal symptoms in the 135.9 child at birth, results of a toxicology test performed on the 135.10 mother at delivery or the child at birth, or medical effects or 135.11 developmental delays during the child's first year of life that 135.12 medically indicate prenatal exposure to a controlled substance; 135.13 (7) "medical neglect" as defined in section 260C.007, 135.14 subdivision 4, clause (5); 135.15 (8) chronic and severe use of alcohol or a controlled 135.16 substance by a parent or person responsible for the care of the 135.17 child that adversely affects the child's basic needs and safety; 135.18 or 135.19 (9) emotional harm from a pattern of behavior which 135.20 contributes to impaired emotional functioning of the child which 135.21 may be demonstrated by a substantial and observable effect in 135.22 the child's behavior, emotional response, or cognition that is 135.23 not within the normal range for the child's age and stage of 135.24 development, with due regard to the child's culture. 135.25 (d) "Physical abuse" means any physical injury, mental 135.26 injury, or threatened injury, inflicted by a person responsible 135.27 for the child's care on a child other than by accidental means, 135.28 or any physical or mental injury that cannot reasonably be 135.29 explained by the child's history of injuries, or any aversive 135.30 and deprivation procedures that have not been authorized under 135.31 section 245.825. Abuse does not include reasonable and moderate 135.32 physical discipline of a child administered by a parent or legal 135.33 guardian which does not result in an injury. Actions which are 135.34 not reasonable and moderate include, but are not limited to, any 135.35 of the following that are done in anger or without regard to the 135.36 safety of the child: 136.1 (1) throwing, kicking, burning, biting, or cutting a child; 136.2 (2) striking a child with a closed fist; 136.3 (3) shaking a child under age three; 136.4 (4) striking or other actions which result in any 136.5 nonaccidental injury to a child under 18 months of age; 136.6 (5) unreasonable interference with a child's breathing; 136.7 (6) threatening a child with a weapon, as defined in 136.8 section 609.02, subdivision 6; 136.9 (7) striking a child under age one on the face or head; 136.10 (8) purposely giving a child poison, alcohol, or dangerous, 136.11 harmful, or controlled substances which were not prescribed for 136.12 the child by a practitioner, in order to control or punish the 136.13 child; or other substances that substantially affect the child's 136.14 behavior, motor coordination, or judgment or that results in 136.15 sickness or internal injury, or subjects the child to medical 136.16 procedures that would be unnecessary if the child were not 136.17 exposed to the substances; or 136.18 (9) unreasonable physical confinement or restraint not 136.19 permitted under section 609.379, including but not limited to 136.20 tying, caging, or chaining. 136.21 (e) "Report" means any report received by the local welfare 136.22 agency, police department, or county sheriff pursuant to this 136.23 section. 136.24 (f) "Facility" means a licensed or unlicensed day care 136.25 facility, residential facility, agency, hospital, sanitarium, or 136.26 other facility or institution required to be licensed under 136.27 sections 144.50 to 144.58, 241.021, or 245A.01 to 245A.16, or 136.28 chapter 245B; or a school as defined in sections 120A.05, 136.29 subdivisions 9, 11, and 13; and 124D.10; or a nonlicensed 136.30 personal care provider organization as defined in sections 136.31 256B.04, subdivision 16, and 256B.0625, subdivision 19a. 136.32 (g) "Operator" means an operator or agency as defined in 136.33 section 245A.02. 136.34 (h) "Commissioner" means the commissioner of human services. 136.35 (i) "Assessment" includes authority to interview the child, 136.36 the person or persons responsible for the child's care, the 137.1 alleged perpetrator, and any other person with knowledge of the 137.2 abuse or neglect for the purpose of gathering the facts, 137.3 assessing the risk to the child, and formulating a plan. 137.4 (j) "Practice of social services," for the purposes of 137.5 subdivision 3, includes but is not limited to employee 137.6 assistance counseling and the provision of guardian ad litem and 137.7 parenting time expeditor services. 137.8 (k) "Mental injury" means an injury to the psychological 137.9 capacity or emotional stability of a child as evidenced by an 137.10 observable or substantial impairment in the child's ability to 137.11 function within a normal range of performance and behavior with 137.12 due regard to the child's culture. 137.13 (l) "Threatened injury" means a statement, overt act, 137.14 condition, or status that represents a substantial risk of 137.15 physical or sexual abuse or mental injury. 137.16 (m) Persons who conduct assessments or investigations under 137.17 this section shall take into account accepted child-rearing 137.18 practices of the culture in which a child participates, which 137.19 are not injurious to the child's health, welfare, and safety. 137.20 [EFFECTIVE DATE.] This section is effective the day 137.21 following final enactment. 137.22 Sec. 17. Laws 2000, chapter 489, article 3, section 24, is 137.23 amended to read: 137.24 Sec. 24. [SPECIAL EDUCATION CROSS-SUBSIDY REVENUE.] 137.25 (a) For fiscal year 2000, a school district shall receive 137.26 an amount of revenue equal to $8.15 times the district's 137.27 adjusted marginal cost pupil units. 137.28 (b) For fiscal year 2001, a school district shall receive 137.29 an amount of revenue equal to $19 times the district's adjusted 137.30 marginal cost pupil units. Special education cross-subsidy 137.31 revenue must be used to pay for a district's unfunded special 137.32 education costs that are currently cross-subsidized by a 137.33 district's general education revenue. 137.34 (c) The fiscal year 2001 revenue is paid entirely in fiscal 137.35 year 2001 based on estimated data. By January 31, 2002, the 137.36 department of children, families, and learning shall recalculate 138.1 the revenue for each district using actual data, and shall 138.2 adjust the general education aid paid to school districts for 138.3 fiscal year 2002 by the amount of the difference between the 138.4 estimated revenue and the actual revenue. 138.5 Sec. 18. [IDENTIFY REVENUE OPTIONS FOR COORDINATION OF 138.6 SERVICES.] 138.7 By July 1, 2002, the commissioner of children, families, 138.8 and learning shall, in conjunction with the commissioner of 138.9 human services, develop a plan to identify possible revenue 138.10 options from medical assistance funds, including targeted case 138.11 management, and other appropriate federal funds and develop a 138.12 recommended procedure for use at the local level for the purpose 138.13 of coordination of services needed to implement the individual 138.14 interagency intervention plan required in Minnesota Statutes, 138.15 section 125A.023, subdivision 4, paragraph (b), clause (4). 138.16 Sec. 19. [STATE BILLING PROCESS.] 138.17 The commissioner of children, families, and learning, in 138.18 consultation with the commissioner of human services, shall 138.19 develop and recommend a billing process consistent with 138.20 Minnesota Statutes, sections 125A.21 and 125A.744, for school 138.21 districts to use to optimize processing third-party bills, 138.22 including medical assistance. The commissioner of children, 138.23 families, and learning shall report to the legislature by 138.24 February 1, 2002, on recommendations for a billing system. 138.25 Sec. 20. [BOARD OF TEACHING.] 138.26 The board of teaching must review and report to the 138.27 education committees of the 2002 legislature on rules that would 138.28 require board-approved teacher preparation programs to include 138.29 in their teacher preparation programs information on special 138.30 education laws, teaching strategies, and positive behavior 138.31 interventions. 138.32 Sec. 21. [APPROPRIATIONS.] 138.33 Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND 138.34 LEARNING.] The sums indicated in this section are appropriated 138.35 from the general fund to the department of children, families, 138.36 and learning for the fiscal years designated. 139.1 Subd. 2. [SPECIAL EDUCATION AID.] For special education 139.2 aid according to Minnesota Statutes, section 125A.75: 139.3 $507,448,000 ..... 2002 139.4 $531,481,000 ..... 2003 139.5 The 2002 appropriation includes $47,400,000 for 2001 and 139.6 $460,048,000 for 2002. 139.7 The 2003 appropriation includes $51,116,000 for 2002 and 139.8 $480,365,000 for 2003. 139.9 Subd. 3. [AID FOR CHILDREN WITH A DISABILITY.] For aid 139.10 according to Minnesota Statutes, section 125A.75, subdivision 3, 139.11 for children with a disability placed in residential facilities 139.12 within the district boundaries for whom no district of residence 139.13 can be determined: 139.14 $1,877,000 ..... 2002 139.15 $2,033,000 ..... 2003 139.16 If the appropriation for either year is insufficient, the 139.17 appropriation for the other year is available. 139.18 Any balance in the first year does not cancel but is 139.19 available in the second year. 139.20 Subd. 4. [TRAVEL FOR HOME-BASED SERVICES.] For aid for 139.21 teacher travel for home-based services according to Minnesota 139.22 Statutes, section 125A.75, subdivision 1: 139.23 $135,000 ..... 2002 139.24 $138,000 ..... 2003 139.25 The 2002 appropriation includes $13,000 for 2001 and 139.26 $122,000 for 2002. 139.27 The 2003 appropriation includes $13,000 for 2002 and 139.28 $125,000 for 2003. 139.29 Subd. 5. [SPECIAL EDUCATION EXCESS COST AID.] For excess 139.30 cost aid: 139.31 $102,665,000 ..... 2002 139.32 $104,773,000 ..... 2003 139.33 The 2002 appropriation includes $9,889,000 for 2001 and 139.34 $92,776,000 for 2002. 139.35 The 2003 appropriation includes $10,308,000 for 2002 and 139.36 $94,465,000 for 2003. 140.1 Subd. 6. [LITIGATION COSTS.] For paying the costs a 140.2 district incurs under Minnesota Statutes, section 125A.75, 140.3 subdivision 8: 140.4 $375,000 ..... 2003 140.5 Subd. 7. [TRANSITION PROGRAMS; STUDENTS WITH 140.6 DISABILITIES.] For aid for transition programs for pupils with 140.7 disabilities according to Minnesota Statutes, section 124D.454: 140.8 $8,954,000 ..... 2002 140.9 $8,939,000 ..... 2003 140.10 The 2002 appropriation includes $896,000 for 2001 and 140.11 $8,058,000 for 2002. 140.12 The 2003 appropriation includes $895,000 for 2002 and 140.13 $8,044,000 for 2003. 140.14 Subd. 8. [COURT-PLACED SPECIAL EDUCATION REVENUE.] For 140.15 reimbursing serving school districts for unreimbursed eligible 140.16 expenditures attributable to children placed in the serving 140.17 school district by court action under Minnesota Statutes, 140.18 section 125A.79, subdivision 4: 140.19 $350,000 ..... 2003 140.20 Subd. 9. [OUT-OF-STATE TUITION SPECIAL EDUCATION.] For 140.21 special education out-of-state tuition according to Minnesota 140.22 Statutes, section 125A.79, subdivision 8: 140.23 $250,000 ..... 2003 140.24 Subd. 10. [USE OF SYMPATHOMIMETIC MEDICATIONS; STUDY.] For 140.25 the purpose of contracting with a qualified expert to determine 140.26 and report, consistent with Minnesota Statutes, chapter 13, the 140.27 number and overall incidence rate of Minnesota children ages 140.28 three to 18, by age, grade level, gender, and race, diagnosed 140.29 with attention deficit disorder (ADD) or attention deficit 140.30 hyperactivity disorder (ADHD) currently taking sympathomimetic 140.31 medications such as Ritalin: 140.32 $50,000 ..... 2002 140.33 In preparing the report, the contractor also must determine 140.34 the number and overall incidence rate of children not identified 140.35 with ADD or ADHD currently taking sympathomimetic medications 140.36 such as Ritalin. The contractor is encouraged to examine the 141.1 number of children who take sympathomimetic medications at home 141.2 and not at school, the previous interventions tried with 141.3 children taking sympathomimetic medications, the types of 141.4 practitioners who prescribe the sympathomimetic medications, and 141.5 what pressures families have experienced in terms of providing 141.6 their children with sympathomimetic medications. The 141.7 commissioner must submit the report to the education committees 141.8 of the legislature by February 15, 2002. 141.9 Subd. 11. [WEB-BASED, INDIVIDUAL INTERAGENCY INTERVENTION 141.10 PLAN.] For ongoing development, administration, and interagency 141.11 training costs associated with a statewide, Web-based 141.12 application for the individual interagency intervention plan 141.13 required in Minnesota Statutes, section 125A.023: 141.14 $250,000 ..... 2002 141.15 $250,000 ..... 2003 141.16 Subd. 12. [HIV/STI EDUCATION.] For regional training sites 141.17 for HIV/STI education in schools established under Laws 1997, 141.18 First Special Session chapter 4, article 6, section 18: 141.19 $350,000 ..... 2002 141.20 Of this amount, $300,000 must be used for continued 141.21 development of the existing sites and $50,000 for department of 141.22 children, families, and learning technical assistance and 141.23 contract management services. This appropriation is available 141.24 until June 30, 2003. 141.25 ARTICLE 4 141.26 FACILITIES AND TECHNOLOGY 141.27 Section 1. Minnesota Statutes 2000, section 16B.616, 141.28 subdivision 4, is amended to read: 141.29 Subd. 4. [ENFORCEMENT.] (a) A statutory or home rule 141.30 charter city that is not covered by the code because of action 141.31 taken under section 16B.72 or 16B.73 is responsible for 141.32 enforcement in the city of the code's requirements for bleacher 141.33 safety. In all other areas where the code does not apply 141.34 because of action taken under section 16B.72 or 16B.73, the 141.35 county is responsible for enforcement of those requirements. 141.36 (b) Municipalities that have not adopted the code may 142.1 enforce the code requirements for bleacher safety by either 142.2 entering into a joint powers agreement for enforcement with 142.3 another municipality that has adopted the code or contracting 142.4 for enforcement with a qualified and certified building official 142.5 or state licensed design professional to enforce the code. 142.6 (c) Municipalities, school districts, organizations, 142.7 individuals, and other persons operating or owning places of 142.8 public accommodation with bleachers that are subject to the 142.9 safety requirements in subdivision 3 shall provide a signed 142.10 certification of compliance to the commissioner by January 1, 142.11 2002. For bleachers subject to the exception in subdivision 3, 142.12 clause (1), entities covered by this paragraph must have on file 142.13 a bleacher safety management plan and amortization schedule. 142.14 The certification shall be prepared by a qualified and certified 142.15 building official or state licensed design professional and 142.16 shall certify that the bleachers have been inspected and are in 142.17 compliance with the requirements of this section and are 142.18 structurally sound. For bleachers owned by a school district or 142.19 nonpublic school, the person the district or nonpublic school 142.20 designates to be responsible for buildings and grounds may make 142.21 the certification. 142.22 Sec. 2. Minnesota Statutes 2000, section 123B.54, is 142.23 amended to read: 142.24 123B.54 [DEBT SERVICE APPROPRIATION.] 142.25 (a) $33,141,000 in fiscal year 2000, $29,400,000 in fiscal142.26 year 2001, $26,934,000 in fiscal year 2002, and $24,540,000 in142.27 fiscal year 2003 and each year thereafter is$25,989,000 in 142.28 fiscal year 2002, $35,163,000 in fiscal year 2003, $31,787,000 142.29 in fiscal year 2004, and $26,453,000 in fiscal years 2005 and 142.30 later are appropriated from the general fund to the commissioner 142.31 of children, families, and learning for payment of debt service 142.32 equalization aid under section 123B.53. 142.33 (b) The appropriations in paragraph (a) must be reduced by 142.34 the amount of any money specifically appropriated for the same 142.35 purpose in any year from any state fund. 142.36 Sec. 3. Minnesota Statutes 2000, section 123B.57, 143.1 subdivision 3, is amended to read: 143.2 Subd. 3. [HEALTH AND SAFETY REVENUE.] A district's health 143.3 and safety revenue for a fiscal year equals: 143.4 (1) the sum of (a) the total approved cost of the 143.5 district's hazardous substance plan for fiscal years 1985 143.6 through 1989, plus (b) the total approved cost of the district's 143.7 health and safety program for fiscal year 1990 through the 143.8 fiscal year to which the levy is attributable, excluding 143.9 expenditures funded with bonds issued under section 123B.59 or 143.10 123B.62, or chapter 475; certificates of indebtedness or capital 143.11 notes under section 123B.61; levies under section 123B.58, 143.12 123B.59, 123B.63, or 126C.40, subdivision 1 or 6; and other 143.13 federal, state, or local revenues, minus 143.14 (2) the sum of (a) the district's total hazardous substance 143.15 aid and levy for fiscal years 1985 through 1989 under sections 143.16 124.245 and 275.125, subdivision 11c, plus (b) the district's 143.17 health and safety revenue under this subdivision, for years 143.18 before the fiscal year to which the levy is attributable , plus143.19 (c) the amount of other federal, state, or local receipts for143.20 the district's hazardous substance or health and safety programs143.21 for fiscal year 1985 through the fiscal year to which the levy143.22 is attributable. 143.23 Sec. 4. Minnesota Statutes 2000, section 123B.57, 143.24 subdivision 6, is amended to read: 143.25 Subd. 6. [USES OF HEALTH AND SAFETY REVENUE.] Health and 143.26 safety revenue may be used only for approved expenditures 143.27 necessary to correct fire safety hazards, life safety hazards, 143.28 or for the removal or encapsulation of asbestos from school 143.29 buildings or property owned or being acquired by the district, 143.30 asbestos-related repairs, cleanup and disposal of 143.31 polychlorinated biphenyls found in school buildings or 143.32 property owned or being acquired by the district, or the 143.33 cleanup, removal, disposal, and repairs related to storing 143.34 heating fuel or transportation fuels such as alcohol, gasoline, 143.35 fuel oil, and special fuel, as defined in section 296A.01, labor 143.36 and industry regulated facility and equipment hazards, and 144.1 health, safety, and environmental management. Health and safety 144.2 revenue must not be used to finance a lease purchase agreement, 144.3 installment purchase agreement, or other deferred payments 144.4 agreement. Health and safety revenue must not be used for the 144.5 construction of new facilities or the purchase of portable 144.6 classrooms, for interest or other financing expenses, or for 144.7 energy efficiency projects under section 123B.65. The revenue 144.8 may not be used for a building or property or part of a building 144.9 or property used for post-secondary instruction or 144.10 administration or for a purpose unrelated to elementary and 144.11 secondary education. 144.12 Sec. 5. Minnesota Statutes 2000, section 123B.57, 144.13 subdivision 8, is amended to read: 144.14 Subd. 8. [HEALTH, SAFETY, AND ENVIRONMENTAL MANAGEMENT 144.15 COST.] (a) A district's cost for health, safety, and 144.16 environmental management is limited to the lesser of: 144.17 (1) actual cost to implement their plan; or 144.18 (2) an amount determined by the commissioner, based on 144.19 enrollment, building age, and size. 144.20 (b) The department may contract with regional service 144.21 organizations, private contractors, Minnesota safety council, or 144.22 state agencies to provide management assistance to school 144.23 districts for health and safety capital projects. Management 144.24 assistance is the development of written programs for the 144.25 identification, recognition and control of hazards, and 144.26 prioritization and scheduling of district health and safety 144.27 capital projects. The department shall not exclude private 144.28 contractors from the opportunity to provide any health and 144.29 safety services to school districts. 144.30 (c) Notwithstanding paragraph (b), the department may 144.31 approve revenue, up to the limit defined in paragraph (a) for 144.32 districts having an approved health, safety, and environmental 144.33 management plan that uses district staff to accomplish 144.34 coordination and provided services. 144.35 Sec. 6. Minnesota Statutes 2000, section 123B.59, 144.36 subdivision 1, is amended to read: 145.1 Subdivision 1. [TO QUALIFY.] An independent or special 145.2 school district qualifies to participate in the alternative 145.3 facilities bonding and levy program if the district has: 145.4 (1) more than 66 students per grade; 145.5 (2) over 1,850,000 square feet of space ;145.6 (3)and the average age of building space is 15 years or 145.7 older or over 1,500,000 square feet and the average age of 145.8 building space is 35 years or older; 145.9 (4)(3) insufficient funds from projected health and safety 145.10 revenue and capital facilities revenue to meet the requirements 145.11 for deferred maintenance, to make accessibility improvements, or 145.12 to make fire, safety, or health repairs; and 145.13 (5)(4) a ten-year facility plan approved by the 145.14 commissioner according to subdivision 2. 145.15 [EFFECTIVE DATE.] This section is effective for revenue for 145.16 fiscal year 2004 and later. 145.17 Sec. 7. Minnesota Statutes 2000, section 123B.71, 145.18 subdivision 1, is amended to read: 145.19 Subdivision 1. [CONSULTATION.] A school district shall 145.20 consult with the commissioner of children, families, and 145.21 learning before developing any plans and specifications to 145.22 construct, remodel, or improve the building or site of an 145.23 educational facility for which the estimated cost exceeds 145.24 $100,000$250,000. This consultation shall occur before a 145.25 referendum for bonds, solicitation for bids, or use of capital 145.26 expenditure facilities revenue according to section 126C.10, 145.27 subdivision 14, clause (2). The commissioner may require the 145.28 district to participate in a management assistance plan before 145.29 conducting a review and comment on the project. 145.30 Sec. 8. Minnesota Statutes 2000, section 123B.71, 145.31 subdivision 4, is amended to read: 145.32 Subd. 4. [PLAN SUBMITTAL.] For a project for which 145.33 consultation is required under subdivision 1, the commissioner, 145.34 after the consultation required in subdivision 1, may require a 145.35 school district to submit the followingpreliminary and final 145.36 plans for approval :146.1 (a) two sets of preliminary plans for each new building or146.2 addition, and146.3 (b) one set of final plans for each construction,146.4 remodeling, or site improvement project. The commissioner shall 146.5 approve or disapprove the plans within 90 days after submission. 146.6 Final plans shall meet all applicable state laws, rules, 146.7 and codes concerning public buildings, including sections 16B.59 146.8 to 16B.73. The department may furnish to a school district146.9 plans and specifications for temporary school buildings146.10 containing two classrooms or less.146.11 Sec. 9. Minnesota Statutes 2000, section 123B.71, 146.12 subdivision 8, is amended to read: 146.13 Subd. 8. [REVIEW AND COMMENT.] A school district, a 146.14 special education cooperative, or a cooperative unit of 146.15 government, as defined in section 123A.24, subdivision 2, must 146.16 not initiate an installment contract for purchase or a lease 146.17 agreement, hold a referendum for bonds, nor solicit bids for new 146.18 construction, expansion, or remodeling of an educational 146.19 facility that requires an expenditure in excess 146.20 of $400,000$500,000 per school site prior to review and comment 146.21 by the commissioner. The commissioner may exempt a facility 146.22 maintenance project funded with general education aid and levy 146.23 or health and safety revenue from this provision after reviewing 146.24 a written request from a school district describing the scope of 146.25 work. A school board shall not separate portions of a single 146.26 project into components to avoid the requirements of this 146.27 subdivision. 146.28 Sec. 10. Minnesota Statutes 2000, section 123B.71, 146.29 subdivision 9, is amended to read: 146.30 Subd. 9. [INFORMATION REQUIRED.] A school board proposing 146.31 to construct a facility described in subdivision 8 shall submit 146.32 to the commissioner a proposal containing information including 146.33 at least the following: 146.34 (a) the geographic area proposed to be served, whether146.35 within or outside the boundaries of the school district;146.36 (b) the people proposed to be served, including census147.1 findings and projections for the next ten years of the number of147.2 preschool and school-aged people in the area;147.3 (c) the reasonably anticipated need for the facility or147.4 service to be provided;147.5 (d) a description of the construction in reasonable detail,147.6 including: the expenditures contemplated; the estimated annual147.7 operating cost, including the anticipated salary and number of147.8 new staff necessitated by the proposal; and an evaluation of the147.9 energy efficiency and effectiveness of the construction,147.10 including estimated annual energy costs; and a description of147.11 the telephone capabilities of the facility and its classrooms;147.12 (e) a description of existing facilities within the area to147.13 be served and within school districts adjacent to the area to be147.14 served; the extent to which existing facilities or services are147.15 used; the extent to which alternate space is available,147.16 including other school districts, post-secondary institutions,147.17 other public or private buildings, or other noneducation147.18 community resources; and the anticipated effect that the147.19 facility will have on existing facilities and services;147.20 (f) the anticipated benefit of the facility to the area;147.21 (g) if known, the relationship of the proposed construction147.22 to any priorities that have been established for the area to be147.23 served;147.24 (h) the availability and manner of financing the facility147.25 and the estimated date to begin and complete the facility;147.26 (i) desegregation requirements that cannot be met by any147.27 other reasonable means;147.28 (j) the relationship of the proposed facility to the147.29 cooperative integrated learning needs of the area;147.30 (k) the effects of the proposed facility on the district's147.31 operating budget;147.32 (l) the level of collaboration at the facility between the147.33 district and other governmental or nonprofit entities; and147.34 (m) the extent to which the district has minimized147.35 administrative overhead among facilities.147.36 (1) the geographic area and population to be served, 148.1 preschool through grade 12 student enrollments for the past five 148.2 years, and student enrollment projections for the next five 148.3 years; 148.4 (2) a list of existing facilities by year constructed, 148.5 their uses, and an assessment of the extent to which alternate 148.6 facilities are available within the school district boundaries 148.7 and in adjacent school districts; 148.8 (3) a list of the specific deficiencies of the facility 148.9 that demonstrate the need for a new or renovated facility to be 148.10 provided, and a list of the specific benefits that the new or 148.11 renovated facility will provide to the students, teachers, and 148.12 community users served by the facility; 148.13 (4) the relationship of the project to any priorities 148.14 established by the school district, educational cooperatives 148.15 that provide support services, or other public bodies in the 148.16 service area; 148.17 (5) a specification of how the project will increase 148.18 community use of the facility and whether and how the project 148.19 will increase collaboration with other governmental or nonprofit 148.20 entities; 148.21 (6) a description of the project, including the 148.22 specification of site and outdoor space acreage and square 148.23 footage allocations for classrooms, laboratories, and support 148.24 spaces; estimated expenditures for the major portions of the 148.25 project; and the dates the project will begin and be completed; 148.26 (7) a specification of the source of financing the project; 148.27 the scheduled date for a bond issue or school board action; a 148.28 schedule of payments, including debt service equalization aid; 148.29 and the effect of a bond issue on local property taxes by the 148.30 property class and valuation; 148.31 (8) an analysis of how the proposed new or remodeled 148.32 facility will affect school district operational or 148.33 administrative staffing costs, and how the district's operating 148.34 budget will cover any increased operational or administrative 148.35 staffing costs; 148.36 (9) a description of the consultation with local or state 149.1 road and transportation officials on school site access and 149.2 safety issues, and the ways that the project will address those 149.3 issues; 149.4 (10) a description of how indoor air quality issues have 149.5 been considered and a certification that the architects and 149.6 engineers designing the facility will have professional 149.7 liability insurance; 149.8 (11) as required under section 123B.72, for buildings 149.9 coming into service after July 1, 2002, a certification that the 149.10 plans and designs for the extensively renovated or new 149.11 facility's heating, ventilation, and air conditioning systems 149.12 will meet or exceed code standards; will provide for the 149.13 monitoring of outdoor airflow and total airflow of ventilation 149.14 systems; and will provide an indoor air quality filtration 149.15 system that meets ASHRAE standard 52.1; 149.16 (12) a specification of any desegregation requirements that 149.17 cannot be met by any other reasonable means; and 149.18 (13) a specification, if applicable, of how the facility 149.19 will utilize environmentally sustainable school facility design 149.20 concepts. 149.21 Sec. 11. Minnesota Statutes 2000, section 125B.21, is 149.22 amended to read: 149.23 125B.21 [MINNESOTA EDUCATION TELECOMMUNICATIONS COUNCIL.] 149.24 Subdivision 1. [STATE COUNCIL MEMBERSHIP.] The membership 149.25 of the Minnesota education telecommunications council 149.26 established in Laws 1993, First Special Session chapter 2, is 149.27 expanded to include representatives of elementary and secondary 149.28 education. The membership shall consist of three 149.29 representatives from the University of Minnesota; three 149.30 representatives of the board of trustees for Minnesota state 149.31 colleges and universities; one representative of the higher 149.32 education services offices; one representative appointed by the 149.33 private college council; one representative selected by the 149.34 commissioner of administration; eight representatives selected 149.35 by the commissioner of children, families, and learning, at 149.36 least one of which must come from each of the six higher 150.1 education telecommunication regions; a representative from the 150.2 office of technology; two members each from the senate and the 150.3 house of representatives selected by the subcommittee on 150.4 committees of the committee on rules and administration of the 150.5 senate and the speaker of the house, one member from each body 150.6 must be a member of the minority party; and three 150.7 representatives of libraries, one representing regional public 150.8 libraries, one representing multitype libraries, and one 150.9 representing community libraries, selected by the governor; and 150.10 two members, one selected from and representing the higher 150.11 education regional coordinators and one selected from and 150.12 representing the kindergarten through grade 12 cluster regions. 150.13 The council shall serve as a forum to establish and advocate for 150.14 a statewide vision and plans for the use of distance learning 150.15 technologies, including: 150.16 (1) develop a statewide vision and plans for the use of150.17 distance learning technologies and provide leadership in150.18 implementing the use of such technologiesthe coordination and 150.19 collaboration of distance learning opportunities; 150.20 (2) recommend educational policy relating to150.21 telecommunicationsthe implementation of the use of distance 150.22 learning technologies; 150.23 (3) determine priorities for usethe collaboration of 150.24 distance learning users; 150.25 (4) oversee coordination of networks for post-secondary150.26 campuses, kindergarten through grade 12 education, and regional150.27 and community librariesthe implementation of educational policy 150.28 relating to telecommunications; 150.29 (5) review application for telecommunications access grants150.30 under Minnesota Statutes, section 125B.20, and recommend to the150.31 department grants for fundingthe exchange of ideas; 150.32 (6) determine priorities for grant funding proposalsthe 150.33 communications with state government and related agencies and 150.34 entities; and150.35 (7) work with the information policy office to ensure150.36 consistency of the operation of the learning network with151.1 standards of an open system architecturethe coordination of 151.2 networks for post-secondary campuses, kindergarten through grade 151.3 12 education, and regional and community libraries; and 151.4 (8) the promotion of consistency of the operation of the 151.5 learning network with standards of an open system architecture. 151.6 The council shall consult with representatives of the151.7 telecommunication industry in implementing this section.151.8 Subd. 2. [DISTRICT COUNCIL MEMBERSHIP.] District151.9 organizations that coordinate applications for telecommunication151.10 access grants are encouraged to become members of the regional151.11 higher education telecommunication council in their area.151.12 Subd. 3. [CRITERIA.] In addition to responsibilities of151.13 the council under Laws 1993, First Special Session chapter 2, as151.14 amended, the telecommunications council shall evaluate grant151.15 applications under section 125B.20 and applications from151.16 district organizations using the following criteria:151.17 (1) evidence of cooperative arrangements with other151.18 post-secondary institutions, school districts, and community and151.19 regional libraries in the geographic region;151.20 (2) plans for shared classes and programs;151.21 (3) avoidance of network duplication;151.22 (4) evidence of efficiencies to be achieved in delivery of151.23 instruction due to use of telecommunications;151.24 (5) a plan for development of a list of all courses151.25 available in the region for delivery at a distance;151.26 (6) a plan for coordinating and scheduling courses; and151.27 (7) a plan for evaluation of costs, access, and outcomes.151.28 Sec. 12. Minnesota Statutes 2000, section 125B.25, 151.29 subdivision 1, is amended to read: 151.30 Subdivision 1. [COSTS TO BE SUBMITTED.] A district shall 151.31 submit its outstanding ongoing or recurring telecommunications 151.32 access costs associated with data linesand video links151.33 connections to the department of children, families, and 151.34 learning. Costs of telecommunications hardware or equipment 151.35 must not be included in the costs submitted by districts to the 151.36 department. A district may include installation charges 152.1 associated with new lines or upgraded lines, but may not include 152.2 costs of hardware or equipment. 152.3 Sec. 13. Minnesota Statutes 2000, section 125B.25, 152.4 subdivision 2, is amended to read: 152.5 Subd. 2. [GUARANTEED MINIMUM ACCESS.] (a) The ongoing or 152.6 recurring telecommunications access costs submitted to the 152.7 department by each district under this section are limited to 152.8 the operation costs equal to the greater of: 152.9 (1) one data lineor video linkconnection that relies on a 152.10 transport medium that operates at a minimum speed of 1.544 152.11 megabytes per second for each elementary school, middle school, 152.12 or high school under section 120A.05, subdivisions 9, 11, and 152.13 13; or 152.14 (2) one data lineor video linkconnection that relies on a 152.15 transport medium that operates at a minimum speed of 1.544 152.16 megabytes per second for each district. 152.17 (b) A district may include costs associated with 152.18 cooperative arrangements with other post-secondary institutions, 152.19 school districts, and community and regional libraries in its 152.20 geographic region. A district may continue to purchase its 152.21 ongoing or recurring telecommunications access services through 152.22 existing contracts. 152.23 Sec. 14. Minnesota Statutes 2000, section 125B.25, 152.24 subdivision 6, is amended to read: 152.25 Subd. 6. [REVENUE FOR CHARTER SCHOOLS.] (a) Each charter 152.26 school shall receive revenue equal to the greater of: 152.27 (1) the per marginal cost pupil unit amount for the 152.28 district in which the charter school is located as determined by 152.29 the commissioner according to subdivision 4; or 152.30 (2) $5; 152.31 times the adjusted marginal cost pupil units for that year, 152.32 times 65 percent. 152.33 (b) A charter school's revenue under this subdivision must 152.34 be used to pay for ongoing or recurring telecommunication access 152.35 costs, including access to data lines,and video lines152.36 connections, orincluding Internet access. 153.1 Sec. 15. Minnesota Statutes 2000, section 126C.40, 153.2 subdivision 1, is amended to read: 153.3 Subdivision 1. [TO LEASE BUILDING OR LAND.] (a) When a 153.4 district finds it economically advantageous to rent or lease a 153.5 building or land for any instructional purposes or for school 153.6 storage or furniture repair, and it determines that the 153.7 operating capital revenue authorized under section 126C.10, 153.8 subdivision 13, is insufficient for this purpose, it may apply 153.9 to the commissioner for permission to make an additional capital 153.10 expenditure levy for this purpose. An application for 153.11 permission to levy under this subdivision must contain financial 153.12 justification for the proposed levy, the terms and conditions of 153.13 the proposed lease, and a description of the space to be leased 153.14 and its proposed use. 153.15 (b) The criteria for approval of applications to levy under 153.16 this subdivision must include: the reasonableness of the price, 153.17 the appropriateness of the space to the proposed activity, the 153.18 feasibility of transporting pupils to the leased building or 153.19 land, conformity of the lease to the laws and rules of the state 153.20 of Minnesota, and the appropriateness of the proposed lease to 153.21 the space needs and the financial condition of the district. 153.22 The commissioner must not authorize a levy under this 153.23 subdivision in an amount greater than the cost to the district 153.24 of renting or leasing a building or land for approved purposes. 153.25 The proceeds of this levy must not be used for custodial or 153.26 other maintenance services. A district may not levy under this 153.27 subdivision for the purpose of leasing or renting a 153.28 district-owned building or site to itself. 153.29 (c) For agreements finalized after July 1, 1997, a district 153.30 may not levy under this subdivision for the purpose of leasing: 153.31 (1) a newly constructed building used primarily for regular 153.32 kindergarten, elementary, or secondary instruction; or (2) a 153.33 newly constructed building addition or additions used primarily 153.34 for regular kindergarten, elementary, or secondary instruction 153.35 that contains more than 20 percent of the square footage of the 153.36 previously existing building. 154.1 (d) Notwithstanding paragraph (b), a district may levy 154.2 under this subdivision for the purpose of leasing or renting a 154.3 district-owned building or site to itself only if the amount is 154.4 needed by the district to make payments required by a lease 154.5 purchase agreement, installment purchase agreement, or other 154.6 deferred payments agreement authorized by law, and the levy 154.7 meets the requirements of paragraph (c). A levy authorized for 154.8 a district by the commissioner under this paragraph may be in 154.9 the amount needed by the district to make payments required by a 154.10 lease purchase agreement, installment purchase agreement, or 154.11 other deferred payments agreement authorized by law, provided 154.12 that any agreement include a provision giving the school 154.13 districts the right to terminate the agreement annually without 154.14 penalty. 154.15 (e) The total levy under this subdivision for a district 154.16 for any year must not exceed $100 times the resident pupil units 154.17 for the fiscal year to which the levy is attributable. 154.18 (f) For agreements for which a review and comment have been 154.19 submitted to the department of children, families, and learning 154.20 after April 1, 1998, the term "instructional purpose" as used in 154.21 this subdivision excludes expenditures on stadiums. 154.22 (g) The commissioner of children, families, and learning 154.23 may authorize a school district to exceed the limit in paragraph 154.24 (e) if the school district petitions the commissioner for 154.25 approval. The commissioner shall grant approval to a school 154.26 district to exceed the limit in paragraph (e) for not more than 154.27 five years if the district meets the following criteria: 154.28 (1) the school district has been experiencing pupil 154.29 enrollment growth in the preceding five years; 154.30 (2) the purpose of the increased levy is in the long-term 154.31 public interest; 154.32 (3) the purpose of the increased levy promotes colocation 154.33 of government services; and 154.34 (4) the purpose of the increased levy is in the long-term 154.35 interest of the district by avoiding over construction of school 154.36 facilities. 155.1 (h) A school district that is a member of an intermediate 155.2 school district may include in its authority under this section 155.3 the costs associated with leases of administrative and classroom 155.4 space for intermediate school district programs. This authority 155.5 must not exceed $25 times the adjusted marginal cost pupil units 155.6 of the member districts. This authority is in addition to any 155.7 other authority authorized under this section. 155.8 Sec. 16. Minnesota Statutes 2000, section 126C.63, 155.9 subdivision 8, is amended to read: 155.10 Subd. 8. [MAXIMUM EFFORT DEBT SERVICE LEVY.] "Maximum 155.11 effort debt service levy" means the lesser of: 155.12 (1) a levy in whichever of the following amounts is 155.13 applicable: 155.14 (a) in any district receiving a debt service loan for a 155.15 debt service levy payable in 2002 and thereafter, or granted a 155.16 capital loan after January 1, 2001, a levy in total dollar 155.17 amount computed at a rate of 30 percent of adjusted net tax 155.18 capacity for taxes payable in 2002 and thereafter; 155.19 (b) in any district receiving a debt service loan for a 155.20 debt service levy payable in 1991 and thereafter, or granted a 155.21 capital loan after January 1, 1990, a levy in a total dollar 155.22 amount computed at a rate of 24 percent of adjusted net tax 155.23 capacity for taxes payable in 1991 and thereafter; 155.24 (b)(c) in any district granted a debt service loan after 155.25 July 31, 1981, or granted a capital loan which is approved after 155.26 July 31, 1981, a levy in a total dollar amount computed as a tax 155.27 rate of 21.92 percent on the adjusted net tax capacity for taxes 155.28 payable in 1991 and thereafter; or 155.29 (2) a levy in any district for which a capital loan was 155.30 approved prior to August 1, 1981, a levy in a total dollar 155.31 amount equal to the sum of the amount of the required debt 155.32 service levy and an amount which when levied annually will in 155.33 the opinion of the commissioner be sufficient to retire the 155.34 remaining interest and principal on any outstanding loans from 155.35 the state within 30 years of the original date when the capital 155.36 loan was granted. 156.1 The board in any district affected by the provisions of 156.2 clause (2) may elect instead to determine the amount of its levy 156.3 according to the provisions of clause (1). If a district's 156.4 capital loan is not paid within 30 years because it elects to 156.5 determine the amount of its levy according to the provisions of 156.6 clause (2), the liability of the district for the amount of the 156.7 difference between the amount it levied under clause (2) and the 156.8 amount it would have levied under clause (1), and for interest 156.9 on the amount of that difference, must not be satisfied and 156.10 discharged pursuant to Minnesota Statutes 1988, or an earlier 156.11 edition of Minnesota Statutes if applicable, section 124.43, 156.12 subdivision 4. 156.13 Sec. 17. Minnesota Statutes 2000, section 126C.69, 156.14 subdivision 2, is amended to read: 156.15 Subd. 2. [CAPITAL LOANS ELIGIBILITY.] Beginning July 1, 156.16 1999, a district is not eligible for a capital loan unless the 156.17 district's estimated net debt tax rate as computed by the 156.18 commissioner after debt service equalization aid would be more 156.19 than 2430 percent of adjusted net tax capacity. The estimate 156.20 must assume a 20-year maturity schedule for new debt. 156.21 Sec. 18. Minnesota Statutes 2000, section 126C.69, 156.22 subdivision 9, is amended to read: 156.23 Subd. 9. [LOAN AMOUNT LIMITS.] (a) A loan must not be 156.24 recommended for approval for a district exceeding an amount 156.25 computed as follows: 156.26 (1) the amount requested by the district under subdivision 156.27 6; 156.28 (2) plus the aggregate principal amount of general 156.29 obligation bonds of the district outstanding on June 30 of the 156.30 year following the year the application was received, not 156.31 exceeding the limitation on net debt of the district in section 156.32 475.53, subdivision 4, or 363450 percent of its adjusted net 156.33 tax capacity as most recently determined, whichever is less; 156.34 (3) less the maximum net debt permissible for the district 156.35 on December 1 of the year the application is received, under the 156.36 limitation in section 475.53, subdivision 4, or 363450 percent 157.1 of its adjusted net tax capacity as most recently determined, 157.2 whichever is less; 157.3 (4) less any amount by which the amount voted exceeds the 157.4 total cost of the facilities for which the loan is granted. 157.5 (b) The loan may be approved in an amount computed as 157.6 provided in paragraph (a), clauses (1) to (3), subject to later 157.7 reduction according to paragraph (a), clause (4). 157.8 Sec. 19. Laws 2000, chapter 489, article 5, section 21, is 157.9 amended to read: 157.10 Sec. 21. [ONE-TIME DEFERRED MAINTENANCE AID.] 157.11 (a) For fiscal year 2001 only, a district's one-time 157.12 deferred maintenance aid is equal to: 157.13 (1) $10 times the adjusted marginal cost pupil units for 157.14 the school year; plus 157.15 (2) $21.90 times the adjusted marginal cost pupil units for 157.16 the school year for a district that does not qualify for 157.17 alternative facilities bonding under Minnesota Statutes, section 157.18 123B.59, or under Laws 1999, chapter 241, article 4, section 25. 157.19 (b) Aid received under this section must be used for 157.20 deferred maintenance, to make accessibility improvements, or to 157.21 make fire, safety, or health repairs. 157.22 (c) This aid is paid entirely in fiscal year 2001 based on 157.23 estimated data. By January 31, 2002, the department of 157.24 children, families, and learning shall recalculate the aid for 157.25 each district using actual data, and shall adjust the general 157.26 education aid paid to school districts for fiscal year 2002 by 157.27 the amount of the difference between the estimated aid and the 157.28 actual aid. 157.29 Sec. 20. Laws 2000, chapter 489, article 7, section 15, 157.30 subdivision 3, is amended to read: 157.31 Subd. 3. [ COOPERATIVE SECONDARY FACILITYFACILITIES NEEDS; 157.32 PLANNING AND EXPENSES.] For a grant and administrative expenses 157.33 to facilitatefor facilities and curricular planning for a157.34 cooperative secondary facility under a joint powers agreement157.35 for school districtdistricts Nos. 411, Balaton, 402, Hendricks, 157.36 403, Ivanhoe, 404, Lake Benton, 418, Russell, 584, Ruthton, and 158.1 409, Tyler: 158.2 $100,000 ..... 20012002 158.3 This is a one-time appropriation. This appropriation is 158.4 available until June 30, 2003. 158.5 Sec. 21. [INTERMEDIATE SCHOOL DISTRICTS; BONDING AUTHORITY 158.6 WITHOUT VOTER APPROVAL.] 158.7 Subdivision 1. [INTERMEDIATE SCHOOL DISTRICT NO. 158.8 916.] Notwithstanding Minnesota Statutes, chapter 136D, the 158.9 school board of intermediate school district No. 916 may sell 158.10 and issue up to $2,000,000 in bonds for acquisition and 158.11 betterment purposes upon adoption of a resolution by the board 158.12 authorizing the bonds. 158.13 The bonds shall be general obligations of the intermediate 158.14 school district; however, each member school district must each 158.15 year certify its proportionate share of the debt service levy on 158.16 the bonds, with the allocation of its share of that levy 158.17 determined in accordance with the resolution authorizing the 158.18 project previously adopted by each member school board. For 158.19 purposes of section 123B.53, the debt service levies certified 158.20 for this purpose by an individual member school district shall 158.21 be considered debt service levies of that school district. By 158.22 July 1 and December 1 of each year, the school board of each 158.23 member school district shall transfer to the intermediate school 158.24 district an amount equal to 50 percent of the debt service levy 158.25 certified by that member school district in the previous fiscal 158.26 year to pay its proportionate share. 158.27 Subd. 2. [INTERMEDIATE SCHOOL DISTRICT NO. 158.28 917.] Notwithstanding Minnesota Statutes, chapter 136D, the 158.29 school board of intermediate school district No. 917 may sell 158.30 and issue up to $5,000,000 in bonds for acquisition and 158.31 betterment purposes upon adoption of a resolution by the board 158.32 authorizing the bonds. 158.33 The bonds shall be general obligations of the intermediate 158.34 school district; however, each member school district must each 158.35 year certify its proportionate share of the debt service levy on 158.36 the bonds, with the allocation of its share of that levy 159.1 determined in accordance with the resolution authorizing the 159.2 project previously adopted by each member school board. For 159.3 purposes of section 123B.53, the debt service levies certified 159.4 for this purpose by an individual member school district shall 159.5 be considered debt service levies of that school district. By 159.6 July 1 and December 1 of each year, the school board of each 159.7 member school district shall transfer to the intermediate school 159.8 district an amount equal to 50 percent of the debt service levy 159.9 certified by that member school district in the previous fiscal 159.10 year to pay its proportionate share. 159.11 Sec. 22. [ENVIRONMENTALLY SUSTAINABLE SCHOOL FACILITIES.] 159.12 The department of administration must provide information 159.13 to a school district interested in providing environmentally 159.14 sustainable facilities. 159.15 Sec. 23. [BONDING AUTHORIZATION.] 159.16 To provide funds for the acquisition or betterment of 159.17 school facilities, independent school district No. 625, St. 159.18 Paul, may by two-thirds majority vote of all the members of the 159.19 board of directors issue general obligation bonds in one or more 159.20 series in calendar years 2003 to 2008, both inclusive, as 159.21 provided in this section. The aggregate principal amount of any 159.22 bonds issued under this section for each calendar year must not 159.23 exceed $15,000,000. Issuance of the bonds is not subject to 159.24 Minnesota Statutes, section 475.58 or 475.59. The bonds must 159.25 otherwise be issued as provided in Minnesota Statutes, chapter 159.26 475. The authority to issue bonds under this section is in 159.27 addition to any bonding authority authorized by Minnesota 159.28 Statutes, chapter 123B, or other law. The amount of bonding 159.29 authority authorized under this section must be disregarded in 159.30 calculating the bonding limit of Minnesota Statutes, chapter 159.31 123B, or any other law other than Minnesota Statutes, section 159.32 475.53, subdivision 4. 159.33 Sec. 24. [TAX LEVY FOR DEBT SERVICE.] 159.34 To pay the principal of and interest on bonds issued under 159.35 section 11, independent school district No. 625, St. Paul, must 159.36 levy a tax annually in an amount sufficient under Minnesota 160.1 Statutes, section 475.61, subdivisions 1 and 3, to pay the 160.2 principal of and interest on the bonds. The tax authorized 160.3 under this section is in addition to the taxes authorized to be 160.4 levied under Minnesota Statutes, chapter 123B, 124D, or 126C, or 160.5 other law. 160.6 Sec. 25. [INTERACTIVE WEB-BASED AND INDEPENDENT STUDY 160.7 PROGRAMS.] 160.8 Subdivision 1. [PUPIL REVENUE.] (a) General education 160.9 revenue for an eligible pupil in an approved interactive 160.10 Web-based program offered by a school district or a charter 160.11 school, or an approved alternative program that has an 160.12 independent study component offered by a charter school, under 160.13 the supervision of a teacher with a Minnesota license, must be 160.14 paid for each hour of completed coursework needed for grade 160.15 progression, credit, or alignment with state graduation 160.16 standards. For purposes of this section, an eligible pupil is a 160.17 public school pupil concurrently enrolled in the district or 160.18 charter school or concurrently enrolled in another district or 160.19 charter school and participating in the program by agreement 160.20 with the district or charter school of enrollment. The course 160.21 of study must be approved by the commissioner of children, 160.22 families, and learning for alignment with the state graduation 160.23 standards and compliance with Minnesota Statutes, chapter 125A. 160.24 An alternative program that has an independent study component 160.25 must also meet the requirements of Minnesota Statutes, section 160.26 126C.05, subdivision 15, paragraph (b), clauses (i) and (iv). 160.27 Average daily membership for a pupil shall equal the number of 160.28 hours of coursework completed divided by the number of hours 160.29 required for a full-time student in the district or charter 160.30 school. Pupils enrolled in the program must not be counted as 160.31 more than 1.0 pupil in average daily membership. A school 160.32 district or charter school is not required to provide a pupil 160.33 enrolled in the program with access to a computer or to the 160.34 Internet. 160.35 (b) Notwithstanding paragraph (a), pupils enrolled in a 160.36 Web-based public alternative program approved by the 161.1 commissioner before June 1, 2001, are not required to be 161.2 concurrently enrolled in the district and may be counted as more 161.3 than 1.0 pupil in average daily membership under Minnesota 161.4 Statutes, section 126C.05, subdivision 15. 161.5 (c) Notwithstanding paragraph (a), pupils enrolled in a 161.6 charter school with a Web-based program, approved by the 161.7 commissioner before June 1, 2001, are not required to be 161.8 concurrently enrolled in the charter school. 161.9 (d) Notwithstanding paragraph (a), pupils enrolled in a 161.10 charter school with an alternative program that has an 161.11 independent study component, approved by the commissioner for 161.12 fiscal year 2001, may be counted as more than 1.0 pupil in 161.13 average daily membership under Minnesota Statutes, section 161.14 126C.05, subdivision 15, paragraph (b), clause (iii). 161.15 Subd. 2. [REIMBURSEMENT.] Notwithstanding Minnesota 161.16 Statutes, section 126C.19, subdivision 4, for fiscal year 2002 161.17 only, the commissioner shall establish a process for providing 161.18 additional revenue to school districts or charter schools for: 161.19 (1) an eligible pupil in an approved interactive Web-based 161.20 program under subdivision 1, paragraph (a), that may be counted 161.21 as more than 1.0 pupil in average daily membership; or 161.22 (2) a nonpublic pupil in an approved interactive Web-based 161.23 program in a public school under subdivision 1, paragraph (a). 161.24 The commissioner may award additional general education revenue 161.25 to school districts and charter schools up to the amount 161.26 appropriated for this section. The amount of additional revenue 161.27 awarded to a school district under this section shall be based 161.28 on additional pupils in average daily membership that are 161.29 generated according to this subdivision with the prior approval 161.30 from the commissioner. The commissioner shall establish a 161.31 process to prioritize the awards under this subdivision based on 161.32 the estimated number of students the school district or charter 161.33 school expects to serve under this section. 161.34 [EFFECTIVE DATE.] This section is effective for revenue for 161.35 fiscal year 2002 only. 161.36 Sec. 26. [BUILDING REMODELING.] 162.1 If the commissioner of human services uses a portion of its 162.2 appropriation for repairs and betterments to remodel building 6 162.3 at the Brainerd regional human services center to make the 162.4 structure suitable for school programs, the Brainerd school 162.5 district may levy an amount equal to district appropriations for 162.6 taxes payable in 2002 and to reimburse the commissioner for 162.7 these remodeling costs. 162.8 Sec. 27. [APPROPRIATIONS.] 162.9 Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND 162.10 LEARNING.] The sums indicated in this section are appropriated 162.11 from the general fund to the department of children, families, 162.12 and learning for the fiscal years designated. 162.13 Subd. 2. [HEALTH AND SAFETY AID.] For health and safety 162.14 aid according to Minnesota Statutes, section 123B.57, 162.15 subdivision 5: 162.16 $14,980,000 ..... 2002 162.17 $14,550,000 ..... 2003 162.18 The 2002 appropriation includes $1,480,000 for 2001 and 162.19 $13,500,000 for 2002. 162.20 The 2003 appropriation includes $1,500,000 for 2002 and 162.21 $13,050,000 for 2003. 162.22 Subd. 3. [DEBT SERVICE AID.] For debt service aid 162.23 according to Minnesota Statutes, section 123B.53, subdivision 6: 162.24 $25,989,000 ..... 2002 162.25 $35,523,000 ..... 2003 162.26 The 2002 appropriation includes $2,890,000 for 2001 and 162.27 $23,099,000 for 2002. 162.28 The 2003 appropriation includes $2,567,000 for 2002 and 162.29 $32,956,000 for 2003. 162.30 Subd. 4. [INTERACTIVE TELEVISION (ITV) AID.] For 162.31 interactive television (ITV) aid under Minnesota Statutes, 162.32 section 126C.40, subdivision 4: 162.33 $1,418,000 ..... 2002 162.34 $ 129,000 ..... 2003 162.35 The 2002 appropriation includes $260,000 for 2001 and 162.36 $1,158,000 for 2002. 163.1 The 2003 appropriation includes $129,000 for 2002 and $0 163.2 for 2003. 163.3 Subd. 5. [ALTERNATIVE FACILITIES BONDING AID.] For 163.4 alternative facilities bonding aid, according to Minnesota 163.5 Statutes, section 123B.59, subdivision 1: 163.6 $19,279,000 ..... 2002 163.7 $19,287,000 ..... 2003 163.8 The 2002 appropriation includes $1,921,000 for 2001 and 163.9 $17,358,000 for 2002. 163.10 The 2003 appropriation includes $1,929,000 for 2002 and 163.11 $17,358,000 for 2003. 163.12 Subd. 6. [TELECOMMUNICATION ACCESS COST REVENUE.] For 163.13 telecommunication access cost revenue under Minnesota Statutes, 163.14 section 125B.25: 163.15 $15,387,000 ..... 2002 163.16 $ 1,565,000 ..... 2003 163.17 The 2002 appropriation includes $1,300,000 for 2001 and 163.18 $14,087,000 for 2002. 163.19 The 2003 appropriation includes $1,565,000 for 2002 and $0 163.20 for 2003. 163.21 If the appropriation amount is insufficient, the 163.22 commissioner shall reduce the reimbursement rate in Minnesota 163.23 Statutes, section 125B.25, subdivisions 5 and 6, and the revenue 163.24 for the 2001-2002 school year shall be prorated. The 163.25 reimbursement rate shall not exceed 100 percent. 163.26 Subd. 7. [FLOODS; DECLINING PUPIL AID.] For declining 163.27 pupil aid under Laws 1999, chapter 241, article 4, section 23: 163.28 $ 829,000 ..... 2002 163.29 $ 92,000 ..... 2003 163.30 The 2002 appropriation includes $0 for 2001 and $829,000 163.31 for 2002. 163.32 The 2003 appropriation includes $92,000 for 2002 and $0 for 163.33 2003. 163.34 Subd. 8. [ELECTRONIC LIBRARY FOR MINNESOTA.] For statewide 163.35 licenses to on-line databases selected in cooperation with the 163.36 higher education services office for school media centers, 164.1 public libraries, state government agency libraries, and public 164.2 or private college or university libraries: 164.3 $400,000 ..... 2002 164.4 $400,000 ..... 2003 164.5 Any balance in the first year does not cancel but is 164.6 available in the second year. 164.7 Subd. 9. [REIMBURSEMENT FOR WEB-BASED AND INDEPENDENT 164.8 STUDY COURSES.] For grants to school districts and charter 164.9 schools for additional pupils taking on-line courses according 164.10 to section 25: 164.11 $100,000 ..... 2002 164.12 Sec. 28. [REPEALER.] 164.13 Minnesota Statutes 2000, section 123B.71, subdivisions 3 164.14 and 10, are repealed. 164.15 ARTICLE 5 164.16 NUTRITION; SCHOOL ACCOUNTING; AND OTHER PROGRAMS 164.17 Section 1. Minnesota Statutes 2000, section 123B.80, 164.18 subdivision 1, is amended to read: 164.19 Subdivision 1. [COMMISSIONER'S AUTHORIZATION.] The 164.20 commissioner may authorize a board to transfer money from any 164.21 fund or account other than the debt redemption fundto another 164.22 fund or account according to this section. 164.23 Sec. 2. [124D.1156] [FAST BREAK TO LEARNING BREAKFAST 164.24 PROGRAM.] 164.25 Subdivision 1. [ELIGIBILITY.] The commissioner shall 164.26 provide funding to the 41 targeted breakfast program grant 164.27 recipients under Laws 1997, First Special Session chapter 4, 164.28 article 6, section 19, and then to public or nonpublic 164.29 elementary schools that participate in the federal School 164.30 Breakfast and Lunch Programs where at least 33 percent of the 164.31 lunches served to children during the second preceding school 164.32 year were provided free or at a reduced price. Schools shall 164.33 not charge student households for fast break to learning meals. 164.34 Schools shall encourage all children to eat a nutritious 164.35 breakfast, either at home or at school, and shall work to 164.36 eliminate barriers to participation at school such as inadequate 165.1 facilities and transportation. 165.2 Subd. 2. [PROGRAM.] The fast break to learning school 165.3 breakfast program enables schools participating in the federal 165.4 School Breakfast and Lunch Programs to cover the costs for 165.5 school breakfast without charging student households. 165.6 Subd. 3. [PROGRAM REIMBURSEMENT.] State funds are provided 165.7 to reimburse fast break to learning school breakfasts. Each 165.8 school year, the state must reimburse schools for the difference 165.9 between the per meal federal rate of reimbursement and the per 165.10 meal state average cost. Meals that are reimbursed at a federal 165.11 rate that is equal to or higher than the state average cost do 165.12 not qualify for fast break to learning funds. Schools must use 165.13 the funds to provide school breakfast to school children every 165.14 day school is in session. 165.15 Sec. 3. [124D.1195] [COMMODITY DONATED FOOD REVOLVING 165.16 FUND.] 165.17 A revolving fund is established for the purpose of 165.18 depositing cash received for commodity donated foods that have 165.19 been lost, damaged, recalled, or diverted for processing. The 165.20 state shall use the fund to issue payments for the value of the 165.21 lost, damaged, recalled, or diverted commodity donated foods and 165.22 related costs. 165.23 Sec. 4. Minnesota Statutes 2000, section 127A.41, 165.24 subdivision 8, is amended to read: 165.25 Subd. 8. [APPROPRIATION TRANSFERS.] (a) If a direct 165.26 appropriation from the general fund to the department for any 165.27 education aid or grant authorized in this chapter and chapters 165.28 122A, 123A, 123B, 124D, 125A, 126C, and 134, excluding 165.29 appropriations under sections 124D.135, 124D.16, 124D.20, 165.30 124D.21, 124D.22, 124D.52, 124D.53124D.531, 124D.54, 124D.55, 165.31 and 124D.56, exceeds the amount required, the commissioner may 165.32 transfer the excess to any education aid or grant appropriation 165.33 that is insufficient. However, section 126C.20 applies to a 165.34 deficiency in the direct appropriation for general education 165.35 aid. Excess appropriations must be allocated proportionately 165.36 among aids or grants that have insufficient appropriations. The 166.1 commissioner of finance shall make the necessary transfers among 166.2 appropriations according to the determinations of the 166.3 commissioner. If the amount of the direct appropriation for the 166.4 aid or grant plus the amount transferred according to this 166.5 subdivision is insufficient, the commissioner shall prorate the 166.6 available amount among eligible districts. The state is not 166.7 obligated for any additional amounts. 166.8 (b) Transfers for aids paid under section 127A.45, 166.9 subdivisions 12, paragraph (a), 12a, paragraph (a), and 13 shall 166.10 be made during the fiscal year after the fiscal year of the 166.11 entitlement. Transfers for aids paid under section 127A.45, 166.12 subdivisions 11, 12, paragraph (b), and 12a, paragraph (b), 166.13 shall be made during the fiscal year of the appropriation. 166.14 Sec. 5. Minnesota Statutes 2000, section 127A.42, is 166.15 amended to read: 166.16 127A.42 [REDUCTION OF AID FOR VIOLATION OF LAW.] 166.17 Subdivision 1. [STATE AIDS.] The amount of specialstate 166.18 aids to which a district is entitled shall be the amount 166.19 computed according to statutes. The annual state aid 166.20 certificate made by the commissioner to the commissioner of 166.21 finance shall show the amount of any reductions made. 166.22 Subd. 2. [VIOLATIONS OF LAW.] The commissioner shallmay 166.23 reduce or withhold the district's specialstate aid for any 166.24 school year whenever the board of the district authorizes or 166.25 permits violations of law within the district by: 166.26 (1) employing a teacher who does not hold a valid teaching 166.27 license or permit in a public school; 166.28 (2) noncompliance with a mandatory rule of general 166.29 application promulgated by the commissioner in accordance with 166.30 statute, unless special circumstances make enforcement 166.31 inequitable, impose an extraordinary hardship on the district, 166.32 or the rule is contrary to the district's best interests; 166.33 (3) the district's continued performance of a contract made 166.34 for the rental of rooms or buildings for school purposes or for 166.35 the rental of any facility owned or operated by or under the 166.36 direction of any private organization, if the contract has been 167.1 disapproved, the time for review of the determination of 167.2 disapproval has expired, and no proceeding for review is 167.3 pending; 167.4 (4) any practice which is a violation of sections 1 and 2 167.5 of article 13 of the Constitution of the state of Minnesota; 167.6 (5) failure to reasonably provide for a resident pupil's 167.7 school attendance under Minnesota Statutes; or167.8 (6) noncompliance with state laws prohibiting 167.9 discrimination because of race, color, creed, religion, national 167.10 origin, sex, age, marital status, status with regard to public 167.11 assistance or disability, as defined in section 363.03; or 167.12 (7) using funds contrary to the statutory purpose of the 167.13 funds. 167.14 The reduction or withholding must be made in the amount and upon 167.15 the procedure provided in this section or, in the case of the167.16 violation stated in clause (1), upon the procedure provided in167.17 section 127A.43. 167.18 Subd. 3. [ASSURANCE OF COMPLIANCE.] (a) After consultation 167.19 with the commissioner of human rights, the commissioner of 167.20 children, families, and learning shall adopt rules in 167.21 conformance with chapter 14. The rules must direct districts to 167.22 file with the commissioner of children, families, and learning 167.23 assurances of compliance with state and federal laws prohibiting 167.24 discrimination. The assurances must be provided in a form and 167.25 manner prescribed by the commissioner. 167.26 (b) If it appears that one or more violations of the 167.27 Minnesota Human Rights Act are occurring in a district, the 167.28 commissioner of human rights shall notify the commissioner of 167.29 the violations, and the commissioner of children, families, and 167.30 learning may then proceed pursuant to subdivision 4. 167.31 Subd. 4. [NOTICE TO BOARD.] When it appears that an167.32 enumerateda violation is occurring in a district, the 167.33 commissioner shall notify the board of that district in 167.34 writing. The notice must specify the violations, set a 167.35 reasonable time within which the district must correct the 167.36 specified violations, describe the correction required, and 168.1 advise that if the correction is not made within the time 168.2 allowed, special state aids to the district will be reduced or 168.3 withheld. The time allowed for correction may be extended by 168.4 the commissioner if there is reasonable ground therefor. 168.5 Subd. 5. [DISPUTE VIOLATIONS; HEARING.] The board to which 168.6 such notice is given may, by a majority vote of the whole board, 168.7 decide to dispute that the specified violation exists or that 168.8 the time allowed is reasonable or the correction specified is 168.9 correct, or that the commissioner may reduce or withhold aids. 168.10 The board must give the commissioner written notice of the 168.11 decision. If the commissioner, after further investigation as 168.12 the commissioner deems necessary, adheres to the previous 168.13 notice, the commissioner shall notify the school board of its 168.14 decision. If the commissioner, after further investigation as 168.15 the commissioner deems necessary, adheres to the previous 168.16 notice, the board shall be entitled to a hearing by the 168.17 commissioner under this subdivision and notwithstanding chapter 168.18 14. The commissioner must set a hearing time and place and the 168.19 board of the district must be given notice by mail. The 168.20 hearings must be designed to give a full and fair hearing and 168.21 permit interested parties an opportunity to produce evidence 168.22 relating to the issues involved. A stenographic record must be 168.23 made of all testimony given and other proceedings during the 168.24 hearing. If practicable, rules governing admission of evidence 168.25 in courts shall apply to the hearing. The final decision of the 168.26 commissioner must be in writing and the controlling facts upon 168.27 which the decision is made must be stated in sufficient detail 168.28 to apprise the parties and the reviewing court of the basis and 168.29 reason for the decision. The decision must be confined to 168.30 whether any of the specified violations existed at the date of 168.31 the commissioner's first notice, whether the violations were 168.32 corrected within the time permitted, whether the violations 168.33 require withholding or reduction of the state aids under this 168.34 section, and in what amount. 168.35 Subd. 6. [VIOLATION; AID REDUCTION OR WITHHOLDING.] The 168.36 commissioner shall not reduce state aids payable to the district 169.1 if the violation specified is corrected within the time 169.2 permitted, or if the commissioner on being notified of the 169.3 district board's decision to dispute decides the violation does 169.4 not exist, or if the commissioner decides after hearing no 169.5 violation specified in the commissioner's notice existed at the 169.6 time of the notice, or that the violations were corrected within 169.7 the time permitted. Otherwise state aids payable to the 169.8 district for the year in which the violation occurred shallmay 169.9 be reduced or withheld as follows: The total amount of state 169.10 aids to which the district may be entitled shall be reduced in 169.11 the proportion that the period during which a specified 169.12 violation continued, computed from the last day of the time 169.13 permitted for correction, bears to the total number of days 169.14 school is held in the district during the year in which a 169.15 violation exists, multiplied by up to 60 percent of the basic 169.16 revenue, as defined in section 126C.10, subdivision 2, of the 169.17 district for that year. 169.18 Subd. 7. [REDUCTION IN AIDS PAYABLE.] Reductions in aid 169.19 under this section and sections 127A.41 and 127A.43 must be from 169.20 general education aid. If there is not sufficient general 169.21 education aid remaining to be paid for the school year in which 169.22 the violation occurred, the reduction shall be from theother 169.23 aids listed in section 127A.44, subdivision 2,that are payable 169.24 to the district for that year in the order in which the aids are169.25 listed in section 127A.44, subdivision 2. If there is not a 169.26 sufficient amount of state aids remaining payable to the 169.27 district for the school year in which the violation occurred to 169.28 permit the full amount of reduction required, that part of the 169.29 required reduction not taken from that school year's aids will 169.30 be taken from the state aids payable to the district for the 169.31 next school year, and the reduction will be made from the 169.32 various aids payable for the next year in the order above169.33 specified. 169.34 Subd. 8a. [APPEAL.] A final decision of the commissioner 169.35 under this section may be appealed in accordance with section 169.36 480A.06, subdivision 3. 170.1 Subd. 9. [NOTICE TO DISTRICT.] Any notice given to the 170.2 board of a district will be deemed given when a copy thereof is 170.3 mailed, registered, to the superintendent of the district, if 170.4 there is a superintendent, and to the clerk of the board of the 170.5 district. If it is shown that neither the superintendent nor 170.6 the clerk in fact received such notice in the ordinary course of 170.7 mail, then the time for correction will be accordingly extended 170.8 by the commissioner so that a reasonable time will be allowed 170.9 from actual receipt of notice for correction. If notice is sent 170.10 by the commissioner with respect to a violation which is 170.11 continued by the district in a succeeding year, no separate 170.12 notice for that violation for the succeeding year will be 170.13 required. Proceedings initiated by such notice shall include 170.14 any continuing violation notwithstanding that a part thereof 170.15 occurs in a year different from the year in which it started. 170.16 The commissioner may require reasonable proof of the time that a 170.17 violation ceased for the determination of the amount of aids to 170.18 be reduced or withheld. Costs and disbursements of the review 170.19 by the district courtcourt of appeals, exclusive of those 170.20 incurred in the administrative proceedings, may be taxed against 170.21 the losing party and in the event taxed against the state must 170.22 be paid from the appropriations made to the department for the 170.23 payment of specialstate aids. 170.24 Sec. 6. Minnesota Statutes 2000, section 127A.45, 170.25 subdivision 11, is amended to read: 170.26 Subd. 11. [PAYMENT PERCENTAGE FOR REIMBURSEMENT AIDS.] One 170.27 hundred percent of the aid for the previous fiscal year must be 170.28 paid in the current year for the following aids: special 170.29 education special pupil aid according to section 125A.75, 170.30 subdivision 3, for the previous fiscal year must be paid in the170.31 current yearaid for litigation costs according to section 170.32 125A.75, subdivision 8, aid for court-placed special education 170.33 expenses according to section 125A.79, subdivision 4, and aid 170.34 for special education out-of-state tuition according to section 170.35 125A.79, subdivision 8. 170.36 Sec. 7. Minnesota Statutes 2000, section 127A.45, 171.1 subdivision 12, is amended to read: 171.2 Subd. 12. [PAYMENT PERCENTAGE FOR CERTAIN AIDS.] (a) One 171.3 hundred percent of the aid for the current fiscal year must be 171.4 paid for the following aids: reimbursement for enrollment 171.5 options transportation to post-secondary institutions, according 171.6 to sectionsections 124D.03, subdivision 8, 124D.09, subdivision 171.7 22, and 124D.10; aid for the program for adults with171.8 disabilities, according to section 124D.56, subdivision 2;171.9 school lunch aid, according to section 124D.111; hearing 171.10 impaired support services aid, according to section 124D.57; and 171.11 Indian post-secondary preparation grants according to section 171.12 124D.85 ; integration grants according to Laws 1989, chapter 329,171.13 article 8, section 14, subdivision 3; and debt service aid171.14 according to section 123B.53, subdivision 6. 171.15 (b) One hundred percent of the aid for the current fiscal 171.16 year, based on enrollment in the previous year, must be paid for 171.17 the first grade preparedness program according to section 171.18 124D.081. 171.19 Sec. 8. Minnesota Statutes 2000, section 127A.45, is 171.20 amended by adding a subdivision to read: 171.21 Subd. 14a. [STATE NUTRITION PROGRAMS.] Notwithstanding 171.22 subdivision 3, the state shall pay 100 percent of the aid for 171.23 the current year according to sections 124D.111, 124D.115, and 171.24 124D.118 and 90 percent of the aid for the current year 171.25 according to section 124D.1156 based on submitted monthly 171.26 vouchers showing meals and milk served. The remaining ten 171.27 percent according to section 124D.1156 shall be paid by October 171.28 30 of the following fiscal year. 171.29 Sec. 9. Minnesota Statutes 2000, section 475.61, 171.30 subdivision 3, is amended to read: 171.31 Subd. 3. [IRREVOCABILITY.] (a) Tax levies so made and 171.32 filed shall be irrevocable, except as provided in this 171.33 subdivision. 171.34 (b) For purposes of this subdivision, "excess debt 171.35 redemption fund balance" means the greater of zero or the 171.36 balance in the district's debt redemption fund as of June 30 of 172.1 the fiscal year ending in the year before the year the levy is 172.2 certified, minus any debt redemption fund balance attributable 172.3 to refunding of existing bonds, minus the amount of the levy 172.4 reduction for the current year and the prior year under 172.5 paragraphs (e) and (f), minus five percent of the district's 172.6 required debt service levy for the next year. 172.7 (c) By July 15 each year, a district shall report to the 172.8 commissioner of children, families, and learning the amount of 172.9 the districts' debt redemption fund balance as of June 30 of the 172.10 prior year attributable to refunding of existing bonds. 172.11 (d) By August 15 each year, the commissioner shall 172.12 determine the excess debt redemption fund balance for each 172.13 school district, and shall certify the amount of the excess 172.14 balance to the school district superintendent. 172.15 (e) In each year when there is on hand anya district has 172.16 an excess amount in thedebt redemption fund of a school172.17 district at the time the district makes its property tax levies,172.18 the amount of the excess shall be certified by the school board172.19 to the commissioner.balance, the commissioner shall report the 172.20 amount of the excess to the county auditor and the auditor shall 172.21 reduce the tax levy otherwise to be included in the rolls next 172.22 prepared by the amount certified. The commissioner shall172.23 prescribe the form and calculation to be used in computing the172.24 excess amount.172.25 (f) The school board may, with the approval of the 172.26 commissioner, retain all or part of the excess amountbalance if 172.27 it is necessary to ensure the prompt and full payment of theits 172.28 obligations and any call premium on theits obligations, orwill 172.29 be used for redemption of theits obligations in accordance with 172.30 their terms, or to level out the debt service tax rate, 172.31 excluding the debt excess adjustment, for its obligations over 172.32 the next two years. A school district requesting authority to 172.33 retain all or part of the excess balance shall provide written 172.34 documentation to the commissioner describing the rationale for 172.35 its request by September 15 including the issuance of new 172.36 obligations within the next year or the refunding of existing 173.1 obligations. A school district that retains an excess may 173.2 request to transfer the excess to its operating capital account 173.3 in the general fund under section 123B.80. The school board 173.4 may, with the approval of the commissioner, specify a tax levy 173.5 in a higher amount if necessary because of anticipated tax 173.6 delinquency or for cash flow needs to meet the required payments 173.7 from the debt redemption fund. 173.8 (g) If the governing body, including the governing body of 173.9 a school district, in any year makes an irrevocable 173.10 appropriation to the debt service fund of money actually on hand 173.11 or if there is on hand any excess amount in the debt service 173.12 fund, the recording officer may certify to the county auditor 173.13 the fact and amount thereof and the auditor shall reduce by the 173.14 amount so certified the amount otherwise to be included in the 173.15 rolls next thereafter prepared. 173.16 Sec. 10. [FUND TRANSFERS.] 173.17 Subdivision 1. [LAPORTE.] Notwithstanding Minnesota 173.18 Statutes, section 123B.79 or 123B.80, on June 30, 2001, 173.19 independent school district No. 306, LaPorte, may permanently 173.20 transfer up to $141,000 from the bus purchase account in its 173.21 transportation fund to its capital expenditure fund without 173.22 making a levy reduction. 173.23 Subd. 2. [LAC QUI PARLE VALLEY.] Notwithstanding Minnesota 173.24 Statutes, sections 123B.58, 123B.79, or 123B.80, on June 30, 173.25 2001, independent school district No. 2853, Lac qui Parle 173.26 Valley, may permanently transfer up to $250,000 from its 173.27 reserved account for disabled accessibility to its reserved 173.28 account for operating capital in the general fund. This 173.29 transfer is contingent upon the school district demonstrating to 173.30 the commissioner's satisfaction that the district's school 173.31 buildings are accessible to students or employees with 173.32 disabilities. 173.33 Subd. 3. [CLEVELAND.] Notwithstanding Minnesota Statutes, 173.34 section 123B.79 or 123B.80, on June 30, 2001, independent school 173.35 district No. 391, Cleveland, may permanently transfer up to 173.36 $107,000 from its reserved operating capital account in its 174.1 general fund to the undesignated fund balance. 174.2 Subd. 4. [LEWISTON.] (a) Notwithstanding Minnesota 174.3 Statutes, section 123B.79 or 123B.80, for calendar years 2002 174.4 through 2012, on June 30 of each year, independent school 174.5 district No. 857, Lewiston, may permanently transfer up to 174.6 $175,000 from its capital accounts in its general fund or from 174.7 its unrestricted general fund to the debt redemption fund. 174.8 (b) The eligible debt service revenue and debt service 174.9 equalization aid, if any, for independent school district No. 174.10 857, Lewiston, must be determined prior to the annual transfer 174.11 of general fund revenue authorized in subdivision 1. 174.12 Subd. 5. [RUSSELL.] Notwithstanding Minnesota Statutes, 174.13 section 123B.79 or 123B.80, on June 30, 2001, independent school 174.14 district No. 418, Russell, may permanently transfer up to 174.15 $160,000 from its reserved operating capital account in its 174.16 general fund to the undesignated fund balance. 174.17 Subd. 6. [MOUNTAIN LAKE.] Notwithstanding Minnesota 174.18 Statutes, section 123B.79 or 123B.80, on June 30, 2001, 174.19 independent school district No. 173, Mountain Lake, may 174.20 permanently transfer up to $300,000 from its reserved capital 174.21 accounts in its general fund to the undesignated fund balance. 174.22 Subd. 7. [ISLE.] (a) Notwithstanding Minnesota Statutes, 174.23 section 123B.79 or 123B.80, on June 30, 2001, upon approval of 174.24 the commissioner of children, families, and learning, 174.25 independent school district No. 473, Isle, may permanently 174.26 transfer up to $175,000 from its reserved account for disability 174.27 access to its undesignated general fund balance. 174.28 (b) Prior to making the fund transfer, independent school 174.29 district No. 473, Isle, must demonstrate to the commissioner's 174.30 satisfaction that the district's school buildings are accessible 174.31 to students or employees with disabilities. 174.32 [EFFECTIVE DATE.] This section is effective the day 174.33 following final enactment. 174.34 Sec. 11. [OPERATING CAPITAL ACCOUNT DEFICIT; EXCEPTION.] 174.35 Notwithstanding Minnesota Statutes, section 123B.78, 174.36 subdivision 5, the commissioner of children, families, and 175.1 learning may allow independent school district No. 492, Austin, 175.2 to incur a deficit of up to $4,200,000 in its reserve for 175.3 capital operating account for the Westcott Field improvement 175.4 project. The deficit must be eliminated by June 30, 2011. Any 175.5 donations or contributions received by the district for the 175.6 Westcott Field improvement project must be deposited in the 175.7 reserve for capital operating account to repay the deficit. The 175.8 commissioner of children, families, and learning must certify 175.9 the financial viability of the Westcott Field improvement 175.10 project prior to approving authority under this section. 175.11 [EFFECTIVE DATE.] This section is effective the day 175.12 following final enactment. 175.13 Sec. 12. [SCHOOL DISTRICT FORMULA ADJUSTMENTS.] 175.14 Subdivision 1. [TAX RATE ADJUSTMENT.] The commissioner of 175.15 children, families, and learning must adjust each tax rate 175.16 established under Minnesota Statutes, chapters 120A to 127A, by 175.17 multiplying the rate by the ratio of the statewide net tax 175.18 capacity as calculated using the class rates in effect for 175.19 assessment year 2000 to the statewide total net tax capacity as 175.20 calculated using the class rates in effect for assessment year 175.21 2001, in both cases using taxable market values for assessment 175.22 year 2000. 175.23 Subd. 2. [EQUALIZING FACTORS.] The commissioner of 175.24 children, families, and learning must adjust each equalizing 175.25 factor based upon adjusted net tax capacity per actual pupil 175.26 unit established under Minnesota Statutes, chapters 120A to 175.27 127A, by multiplying the equalizing factor by the ratio of the 175.28 statewide net tax capacity as calculated using the class rates 175.29 in effect for assessment year 2001 to the statewide total net 175.30 tax capacity as calculated using the class rates in effect for 175.31 assessment year 2000, in both cases using taxable market values 175.32 for assessment year 2000. 175.33 Subd. 3. [DEBT SERVICE TAX RATES AND EQUALIZING 175.34 FACTORS.] The provisions in subdivisions 1 and 2 do not apply to 175.35 the equalizing factors and tax rates of the debt service 175.36 equalization aid program under Minnesota Statutes, section 176.1 123B.53. 176.2 [EFFECTIVE DATE.] This section is effective for aid and 176.3 levy calculations for fiscal year 2003 and subsequent years. 176.4 Sec. 13. [APPROPRIATIONS.] 176.5 Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND 176.6 LEARNING.] The sums indicated in this section are appropriated 176.7 from the general fund to the department of children, families, 176.8 and learning for the fiscal years designated. 176.9 Subd. 2. [SCHOOL LUNCH.] (a) For school lunch aid 176.10 according to Minnesota Statutes, section 124D.111, and Code of 176.11 Federal Regulations, title 7, section 210.17, and for school 176.12 milk aid according to Minnesota Statutes, section 124D.118: 176.13 $8,710,000 ..... 2002 176.14 $8,950,000 ..... 2003 176.15 (b) Not more than $800,000 of the amount appropriated each 176.16 year may be used for school milk aid. 176.17 Subd. 3. [SCHOOL BREAKFAST.] For school breakfast aid 176.18 under Minnesota Statutes, section 124D.115: 176.19 $640,000 ..... 2002 176.20 $700,000 ..... 2003 176.21 Subd. 4. [SUMMER FOOD SERVICE REPLACEMENT AID.] For summer 176.22 food service replacement aid under Minnesota Statutes, section 176.23 124D.119: 176.24 $150,000 ..... 2002 176.25 $150,000 ..... 2003 176.26 Subd. 5. [FAST BREAK TO LEARNING GRANTS.] For fast break 176.27 to learning grants under Minnesota Statutes, section 124D.1156: 176.28 $2,446,000 ..... 2002 176.29 $2,839,000 ..... 2003 176.30 The 2002 appropriation includes $0 for 2001 and $2,446,000 176.31 for 2002. 176.32 The 2003 appropriation includes $272,000 for 2002 and 176.33 $2,567,000 for 2003. 176.34 Sec. 14. [REPEALER.] 176.35 Minnesota Statutes 2000, section 124D.1155, is repealed. 176.36 ARTICLE 6 177.1 DEFICIENCIES 177.2 Section 1. [APPROPRIATIONS; DEFICIENCIES.] 177.3 Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND 177.4 LEARNING.] Unless otherwise indicated, the sums indicated in 177.5 this section are appropriated from the general fund to the 177.6 department of children, families, and learning for the fiscal 177.7 years designated for the funding of programs subject to 177.8 state-aid deficiencies in fiscal year 2001. These 177.9 appropriations are in addition to any other appropriations for 177.10 those purposes. 177.11 Subd. 2. [GENERAL EDUCATION AID.] For general education 177.12 aid: 177.13 $19,754,000 ..... 2001 177.14 Subd. 3. [SECONDARY VOCATIONAL AID.] For secondary 177.15 vocational aid: 177.16 $ 6,000 ..... 2001 177.17 Subd. 4. [SPECIAL EDUCATION EXCESS COST AID.] For special 177.18 education excess cost aid: 177.19 $6,740,000 ..... 2001 177.20 Subd. 5. [HEALTH AND SAFETY AID.] For health and safety 177.21 aid: 177.22 $ 273,000 ..... 2001 177.23 Subd. 6. [INTERACTIVE TELEVISION AID.] For interactive 177.24 television aid: 177.25 $ 6,000 ..... 2001 177.26 Subd. 7. [ALTERNATIVE FACILITIES BONDING AID.] For 177.27 alternative facilities bonding aid: 177.28 $ 68,000 ..... 2001 177.29 ARTICLE 7 177.30 STATE AGENCIES 177.31 Section 1. Minnesota Statutes 2000, section 122A.162, is 177.32 amended to read: 177.33 122A.162 [LICENSURE RULES.] 177.34 The commissioner may make rules relating to licensure of 177.35 school personnel not licensed by the board of teaching or board 177.36 of school administrators. 178.1 [EFFECTIVE DATE.] This section is effective September 1, 178.2 2001. 178.3 Sec. 2. Minnesota Statutes 2000, section 122A.163, is 178.4 amended to read: 178.5 122A.163 [TEACHER RULE VARIANCES; COMMISSIONER.] 178.6 Notwithstanding any law to the contrary, and only upon 178.7 receiving the agreement of the state board of teaching or board 178.8 of school administrators, whichever has jurisdiction over the 178.9 licensure, the commissioner of children, families, and learning 178.10 may grant a variance to rules governing licensure of teachers178.11 for those teacherspersons licensed by the board of teaching or 178.12 board of school administrators, whichever has jurisdiction. The178.13 commissioner may grant a variance, without the agreement of the178.14 board of teaching, to rules adopted by the commissioner178.15 governing licensure of teachers for those teachers the178.16 commissioner licenses.178.17 [EFFECTIVE DATE.] This section is effective September 1, 178.18 2001. 178.19 Sec. 3. Minnesota Statutes 2000, section 122A.18, 178.20 subdivision 1, is amended to read: 178.21 Subdivision 1. [AUTHORITY TO LICENSE.] (a) The board of 178.22 teaching must license teachers, as defined in section 122A.15, 178.23 subdivision 1, except for supervisory personnel, as defined in 178.24 section 122A.15, subdivision 2. 178.25 (b) The commissioner of children, families, and learning178.26 board of school administrators must license supervisory 178.27 personnel as defined in section 122A.15, subdivision 2, except 178.28 for athletic coaches. 178.29 (c) Licenses under the jurisdiction of the board of 178.30 teaching, the board of school administrators, and the 178.31 commissioner of children, families, and learning must be issued 178.32 through the licensing section of the department. 178.33 [EFFECTIVE DATE.] This section is effective September 1, 178.34 2001. 178.35 Sec. 4. Minnesota Statutes 2000, section 122A.18, 178.36 subdivision 4, is amended to read: 179.1 Subd. 4. [EXPIRATION AND RENEWAL.] (a) Each license the 179.2 department of children, families, and learning issues through 179.3 its licensing section must bear the date of issue. Licenses 179.4 must expire and be renewed according to the respective rules the 179.5 board of teaching, the board of school administrators, or the 179.6 commissioner of children, families, and learning adopts. 179.7 Requirements for renewing a license must include showing 179.8 satisfactory evidence of successful teaching or administrative 179.9 experience for at least one school year during the period 179.10 covered by the license in grades or subjects for which the 179.11 license is valid or completing such additional preparation as 179.12 the board of teaching prescribes. The commissioner of children,179.13 families, and learningboard of school administrators shall 179.14 establish requirements for renewing the licenses of supervisory 179.15 personnel except athletic coaches. The state board of teaching 179.16 shall establish requirements for renewing the licenses of 179.17 athletic coaches. 179.18 (b) The board of teaching shall offer alternative 179.19 continuing relicensure options for teachers who are accepted 179.20 into and complete the national board for professional teaching 179.21 standards certification process, and offer additional continuing 179.22 relicensure options for teachers who earn national board for 179.23 professional teaching standards certification. Continuing 179.24 relicensure requirements for teachers who do not maintain 179.25 national board for professional teaching standards certification 179.26 are those the board prescribes. 179.27 [EFFECTIVE DATE.] This section is effective September 1, 179.28 2001. 179.29 Sec. 5. [122A.191] [DEFINITIONS.] 179.30 Subdivision 1. [SCOPE.] For the purposes of sections 179.31 122A.191 to 122A.193, the terms in this section have the 179.32 meanings given them, unless another meaning is clearly indicated. 179.33 Subd. 2. [BOARD.] "Board" means board of school 179.34 administrators. 179.35 Subd. 3. [SUPERVISORY PERSONNEL.] "Supervisory personnel" 179.36 means supervisory personnel as defined in section 122A.15, 180.1 subdivision 2, excluding athletic coaches. 180.2 [EFFECTIVE DATE.] This section is effective the day 180.3 following final enactment. 180.4 Sec. 6. [122A.192] [BOARD OF SCHOOL ADMINISTRATORS.] 180.5 Subdivision 1. [MEMBERSHIP.] A board of school 180.6 administrators is established and must consist of nine members 180.7 appointed by the governor with the advice and consent of the 180.8 senate, including at least: 180.9 (1) one elementary school principal; 180.10 (2) one secondary school principal; 180.11 (3) one higher education faculty member in an educational 180.12 administration program approved by the board; 180.13 (4) one higher education administrator for an educational 180.14 administration program approved by the board; 180.15 (5) one school superintendent; 180.16 (6) one classroom teacher; 180.17 (7) one community education director or a special education 180.18 director; and 180.19 (8) two members of the public, one of whom must be a 180.20 present or former school board member. 180.21 In making appointments, the governor shall solicit 180.22 recommendations from groups representing persons in clauses (1) 180.23 to (8). 180.24 Subd. 2. [TERMS; COMPENSATION; REMOVAL; 180.25 ADMINISTRATION.] Membership terms, removal of members, and the 180.26 filling of membership vacancies are as provided in section 180.27 214.09. The terms of the initial board members must be 180.28 determined by lot as follows: 180.29 (1) three members must be appointed for terms that expire 180.30 August 1, 2002; 180.31 (2) three members must be appointed for terms that expire 180.32 August 1, 2003; and 180.33 (3) three members must be appointed for terms that expire 180.34 August 1, 2004. 180.35 Members shall not receive the daily payment under section 180.36 214.09, subdivision 3. The public employer of a member shall 181.1 not reduce the member's compensation or benefits for the 181.2 member's absence from employment when engaging in the business 181.3 of the board. The provision of staff, administrative services, 181.4 and office space; the review and processing of complaints; the 181.5 setting of fees; the selection and duties of an executive 181.6 secretary to serve the board; and other provisions relating to 181.7 board operations are as provided in chapter 214. Fiscal year 181.8 and reporting requirements are as provided in sections 214.07 181.9 and 214.08. 181.10 Subd. 3. [VACANT POSITION.] The position of a member who 181.11 leaves Minnesota or whose employment status changes to a 181.12 category different from that from which appointed shall be 181.13 deemed vacant. 181.14 [EFFECTIVE DATE.] This section is effective the day 181.15 following final enactment. 181.16 Sec. 7. [122A.193] [MEETINGS.] 181.17 Subdivision 1. [MEETINGS.] The board of school 181.18 administrators shall meet regularly at the times and places 181.19 determined by the board. The board shall nominate and elect a 181.20 chair and other officers from its membership. Meetings shall be 181.21 called by the chair or at the written request of any three 181.22 members. 181.23 Subd. 2. [EXECUTIVE SECRETARY.] The board of school 181.24 administrators may hire an executive secretary and other staff 181.25 or may arrange to share an executive secretary and staff with 181.26 the board of teaching. If the board hires an executive 181.27 secretary, the person is in the unclassified service. 181.28 [EFFECTIVE DATE.] This section is effective the day 181.29 following final enactment. 181.30 Sec. 8. [122A.194] [DUTIES OF BOARD OF SCHOOL 181.31 ADMINISTRATORS.] 181.32 Subdivision 1. [LICENSING.] The board shall license school 181.33 administrators. The board shall adopt rules to license school 181.34 administrators under chapter 14. Other than the rules 181.35 transferred to the board under section 122A.18, subdivision 4, 181.36 the board may not adopt or amend rules under this section until 182.1 the rules are approved by law. The rules shall include the 182.2 licensing of persons who have successfully completed alternative 182.3 preparation programs under section 122A.27 or other alternative 182.4 competency-based preparation programs. The board may enter into 182.5 agreements with the board of teaching regarding multiple license 182.6 matters. 182.7 Subd. 2. [PREPARATION PROGRAMS.] The board shall review 182.8 and approve preparation programs for school administrators and 182.9 alternative preparation programs for administrators under 182.10 section 122A.27, and must consider other alternative 182.11 competency-based preparation programs leading to licensure. 182.12 Subd. 3. [RULES FOR CONTINUING EDUCATION REQUIREMENTS.] 182.13 The board shall adopt rules establishing continuing education 182.14 requirements that promote continuous improvement and acquisition 182.15 of new and relevant skills by school administrators. 182.16 Subd. 4. [CODE OF ETHICS.] The board shall adopt by rule a 182.17 code of ethics covering standards of professional practice, 182.18 including ethical conduct, professional performance, and methods 182.19 of enforcement, and advise school administrators in interpreting 182.20 the code of ethics. 182.21 Subd. 5. [COMMISSIONER'S REPRESENTATIVE TO COMMENT ON 182.22 PROPOSED RULE.] Before adopting any rule that must be submitted 182.23 to public hearing, a representative of the commissioner of 182.24 children, families, and learning shall appear before the board 182.25 and at any hearing required under section 14.14, subdivision 1, 182.26 to comment on the cost and educational implications of the 182.27 proposed rule. 182.28 Subd. 6. [REGISTER OF PERSONS LICENSED.] The executive 182.29 director of the board shall keep a record of board proceedings 182.30 and a register of all persons licensed under this chapter. The 182.31 register must show the name, address, license number, and the 182.32 renewal of the license. The board must on July 1 of each year, 182.33 or as soon thereafter as is practicable, compile a list of 182.34 licensed school administrators and transmit a copy of the list 182.35 to the board. A copy of the register must be available during 182.36 business hours at the office of the board to any interested 183.1 person. 183.2 Subd. 7. [COMMISSIONER'S ASSISTANCE; BOARD MONEY.] The 183.3 commissioner shall provide all necessary materials and 183.4 assistance for transacting board business and all money received 183.5 by the board shall be paid into the state treasury as provided 183.6 by law. The expenses of administering the board of school 183.7 administrators shall be paid for from appropriations made to the 183.8 board of school administrators. 183.9 Subd. 8. [ACCOUNTABILITY.] The board must develop 183.10 accountability measures for programs preparing students for 183.11 licensure and report the progress of the programs to the 183.12 legislature by January 15 of every other year beginning with the 183.13 2003 legislature. 183.14 Subd. 9. [ANNUAL FEE.] Each person licensed by the board 183.15 of school administrators shall pay the board an annual fee of 183.16 $75. The board may provide a lower fee for persons on retired 183.17 or inactive status. The executive secretary shall deposit the 183.18 fees in the state treasury. 183.19 [EFFECTIVE DATE.] This section is effective September 1, 183.20 2001, except that the fee imposed by subdivision 9 is effective 183.21 July 1, 2001. 183.22 Sec. 9. Minnesota Statutes 2000, section 122A.20, 183.23 subdivision 2, is amended to read: 183.24 Subd. 2. [MANDATORY REPORTING.] A school board must report 183.25 to the board of teaching, the board of school administrators, or 183.26 the board of trustees of the Minnesota state colleges and 183.27 universities, whichever has jurisdiction over the teacher's or 183.28 administrator's license, when its teacher or administrator is 183.29 discharged or resigns from employment after a charge is filed 183.30 with the school board under section 122A.41, subdivisions 6, 183.31 clauses (1), (2), and (3), and 7, or after charges are filed 183.32 that are ground for discharge under section 122A.40, subdivision 183.33 13, paragraph (a), clauses (1) to (5), or when a teacher or 183.34 administrator is suspended or resigns while an investigation is 183.35 pending under section 122A.40, subdivision 13, paragraph (a) 183.36 clauses (1) to (5); 122A.41, subdivisions 6, clauses (1), (2), 184.1 and (3), and 7; or 626.556. The report must be made to the 184.2 appropriate licensing board within ten days after the discharge, 184.3 suspension, or resignation has occurred. The licensing board to 184.4 which the report is made must investigate the report for 184.5 violation of subdivision 1 and the reporting board must 184.6 cooperate in the investigation. Notwithstanding any provision 184.7 in chapter 13 or any law to the contrary, upon written request 184.8 from the licensing board having jurisdiction over the teacher's184.9 license, a board or school superintendent shall provide the 184.10 licensing board with information about the teacher or 184.11 administrator from the district's files, any termination or 184.12 disciplinary proceeding, any settlement or compromise, or any 184.13 investigative file. Upon written request from the appropriate 184.14 licensing board, a board or school superintendent may, at the 184.15 discretion of the board or school superintendent, solicit the 184.16 written consent of a student and the student's parent to provide 184.17 the licensing board with information that may aid the licensing 184.18 board in its investigation and license proceedings. The 184.19 licensing board's request need not identify a student or parent 184.20 by name. The consent of the student and the student's parent 184.21 must meet the requirements of chapter 13 and Code of Federal 184.22 Regulations, title 34, section 99.30. The licensing board may 184.23 provide a consent form to the district. Any data transmitted to 184.24 any board under this section is private data under section 184.25 13.02, subdivision 12, notwithstanding any other classification 184.26 of the data when it was in the possession of any other agency. 184.27 The licensing board to which a report is made must transmit 184.28 to the attorney general's office any record or data it receives 184.29 under this subdivision for the sole purpose of having the 184.30 attorney general's office assist that board in its 184.31 investigation. When the attorney general's office has informed 184.32 an employee of the appropriate licensing board in writing that 184.33 grounds exist to suspend or revoke a teacher's license to teach, 184.34 that licensing board must consider suspending or revoking or 184.35 decline to suspend or revoke the teacher's or administrator's 184.36 license within 45 days of receiving a stipulation executed by 185.1 the teacher or administrator under investigation or a 185.2 recommendation from an administrative law judge that 185.3 disciplinary action be taken. 185.4 [EFFECTIVE DATE.] This section is effective September 1, 185.5 2001. 185.6 Sec. 10. Minnesota Statutes 2000, section 122A.21, is 185.7 amended to read: 185.8 122A.21 [TEACHERS' AND ADMINISTRATORS' LICENSES; FEES.] 185.9 Each application for the issuance, renewal, or extension of 185.10 a license to teach and each application for the issuance,185.11 renewal, or extension of a license as supervisory personnelmust 185.12 be accompanied by a processing fee in an amount set by the board 185.13 of teaching by rule. Each application for issuing, renewing, or 185.14 extending the license of a school administrator or supervisor 185.15 must be accompanied by a processing fee in the amount set by the 185.16 board of teaching. The processing fee for a teacher's license 185.17 and for the licenses of supervisory personnel must be paid to 185.18 the executive secretary of the appropriate board of teaching. 185.19 The executive secretary of the board of teachingshall deposit 185.20 the fees with the state treasurer, as provided by law, and 185.21 report each month to the commissioner of finance the amount of 185.22 fees collected. The fees as set by the board are nonrefundable 185.23 for applicants not qualifying for a license. However, a fee 185.24 must be refunded by the state treasurer in any case in which the 185.25 applicant already holds a valid unexpired license. The board 185.26 may waive or reduce fees for applicants who apply at the same 185.27 time for more than one license. 185.28 [EFFECTIVE DATE.] This section is effective September 1, 185.29 2001. 185.30 Sec. 11. [CONTRACTS AND GRANTS UNIT; INTERNAL AUDITS 185.31 OFFICE.] 185.32 (a) The commissioner of children, families, and learning 185.33 shall establish a contracts and grants unit within the 185.34 department to manage the contracting process for the 185.35 department. The unit must be separate from individual program 185.36 functions. The duties of the unit include: 186.1 (1) supporting the fiscal management of contracts and 186.2 grants; 186.3 (2) technical assistance to program areas in setting up and 186.4 monitoring grants; 186.5 (3) legal review of contracts for compliance with state law 186.6 and requirements of private grants; 186.7 (4) training and advising program areas on how the 186.8 contracting process should be handled; 186.9 (5) reviewing requests for proposals for compliance with 186.10 legal requirements; 186.11 (6) drafting and maintaining a contracts manual for use by 186.12 program areas; and 186.13 (7) approving all contracts entered into by program areas. 186.14 (b) The commissioner of children, families, and learning 186.15 shall establish an internal audits office. Any significant 186.16 audit violations must be reported to the commissioner in 186.17 writing. The office must report at least annually to the 186.18 commissioner on contract policies, procedures, and controls. 186.19 Duties of the internal audits office include: 186.20 (1) serving as an independent appraisal function to examine 186.21 and evaluate the department's activities; 186.22 (2) measuring and evaluating the effectiveness of 186.23 accounting, financial and operating policies, procedures, and 186.24 controls on a department basis; and 186.25 (3) examining contracts and grants for compliance with 186.26 federal and state law. 186.27 Sec. 12. [RETROACTIVITY.] 186.28 A contract encumbered or a grant awarded by the department 186.29 of children, families, and learning for the Perpich Center for 186.30 Arts Education or the Minnesota state academies before September 186.31 1, 2001, may be made retroactive to July 1, 2001. 186.32 Sec. 13. [APPROPRIATIONS; DEPARTMENT OF CHILDREN, 186.33 FAMILIES, AND LEARNING.] 186.34 Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND 186.35 LEARNING.] Unless otherwise indicated, the sums indicated in 186.36 this section are appropriated from the general fund to the 187.1 department of children, families, and learning for the fiscal 187.2 years designated. 187.3 Subd. 2. [DEPARTMENT.] (a) For the department of children, 187.4 families, and learning: 187.5 $31,530,000 ..... 2002 187.6 $31,748,000 ..... 2003 187.7 Any balance in the first year does not cancel but is 187.8 available in the second year. 187.9 (b) $684,000 in 2002 and $690,000 in 2003 are for the board 187.10 of teaching. 187.11 (c) $165,000 each year is for the board of school 187.12 administrators. 187.13 (d) $400,000 in fiscal year 2002 and $400,000 in fiscal 187.14 year 2003 are for the office of educational accountability under 187.15 Minnesota Statutes, section 120B.31, subdivision 3. 187.16 (e) $500,000 in 2002 and $250,000 in 2003 and thereafter 187.17 are for the Minnesota Academic Excellence Foundation. 187.18 (f) $260,000 each year is for the Minnesota Children's 187.19 Museum; $50,000 in fiscal year 2002 is for the Duluth Children's 187.20 Museum. 187.21 (g) The expenditures of federal grants and aids as shown in 187.22 the biennial budget document and its supplements are approved 187.23 and appropriated and shall be spent as indicated. 187.24 (h) In preparing the department budget for fiscal years 187.25 2004-2005, the department shall shift all administrative funding 187.26 from aids appropriations into the appropriation for the 187.27 department. 187.28 Sec. 14. [APPROPRIATIONS; PERPICH CENTER FOR ARTS 187.29 EDUCATION.] 187.30 The sums indicated in this section are appropriated from 187.31 the general fund to the Perpich Center for Arts Education for 187.32 the fiscal years designated: 187.33 $7,681,000 ..... 2002 187.34 $7,816,000 ..... 2003 187.35 $150,000 each year is to extend the partnership network to 187.36 up to five new partnership sites and for developing 188.1 whole-school, arts-based teaching and learning curriculum at new 188.2 sites. 188.3 Any balance in the first year does not cancel but is 188.4 available in the second year. 188.5 Sec. 15. [APPROPRIATIONS; MINNESOTA STATE ACADEMIES.] 188.6 The sums indicated in this section are appropriated from 188.7 the general fund to the Minnesota state academies for the deaf 188.8 and the blind for the fiscal years designated: 188.9 $10,761,000 ..... 2002 188.10 $10,966,000 ..... 2003 188.11 Any balance in the first year does not cancel but is 188.12 available in the second year. 188.13 ARTICLE 8 188.14 TECHNICAL AMENDMENTS 188.15 Section 1. Minnesota Statutes 2000, section 122A.26, 188.16 subdivision 3, is amended to read: 188.17 Subd. 3. [ENGLISH AS A SECOND LANGUAGE.] Notwithstanding 188.18 subdivision 2, a person who possesses a bachelor's or master's 188.19 degree in English as a second language, applied linguistics, or 188.20 bilingual education, or who possesses a related degree as 188.21 approved by the commissioner, shall be permitted to teach 188.22 English as a second language in an adult basic education program 188.23 that receives funding under section 124D.53124D.531. 188.24 Sec. 2. Minnesota Statutes 2000, section 124D.11, 188.25 subdivision 5, is amended to read: 188.26 Subd. 5. [SPECIAL EDUCATION AID.] Except as provided in 188.27 subdivision 2, special education aid must be paid to a charter 188.28 school according to section 125A.76, as though it were a school 188.29 district. The charter school may charge tuition to the district 188.30 of residence as provided in section 125A.11. The charter school188.31 shall allocate its special education levy equalization revenue188.32 to the resident districts of the pupils attending the charter188.33 school. The districts of residence shall levy as though they188.34 were participating in a cooperative, as provided in section188.35 125A.77, subdivision 3.188.36 Sec. 3. Minnesota Statutes 2000, section 124D.454, 189.1 subdivision 11, is amended to read: 189.2 Subd. 11. [REVENUE ALLOCATION FROM COOPERATIVE CENTERS AND 189.3 INTERMEDIATE DISTRICTS.] For purposes of this section and189.4 section 125A.77, a cooperative center or an intermediate 189.5 district must allocate its approved expenditures for transition 189.6 programs for children with a disability among participating 189.7 school districts. Aid for transition programs for children with 189.8 a disability for services provided by a cooperative or 189.9 intermediate district shall be paid to the participating 189.10 districts. 189.11 Sec. 4. Minnesota Statutes 2000, section 125A.17, is 189.12 amended to read: 189.13 125A.17 [LEGAL RESIDENCE OF A CHILD WITH A DISABILITY 189.14 PLACED IN A FOSTER FACILITY.] 189.15 The legal residence of a child with a disability placed in 189.16 a foster facility for care and treatment is the district in 189.17 which the child resides when: 189.18 (1) parental rights have been terminated by court order; 189.19 (2) the parent or guardian is not living within the state; 189.20 (3) no other district residence can be established; or 189.21 (4) the parent or guardian having legal custody of the 189.22 child is an inmate of a Minnesota correctional facility or is a 189.23 resident of a halfway house under the supervision of the 189.24 commissioner of corrections ;189.25 is the district in which the child resides. The school board of 189.26 the district of residence must provide the same educational 189.27 program for the child as it provides for all resident children 189.28 with a disability in the district. 189.29 Sec. 5. Minnesota Statutes 2000, section 127A.41, 189.30 subdivision 9, is amended to read: 189.31 Subd. 9. [APPROPRIATION TRANSFERS FOR COMMUNITY EDUCATION 189.32 PROGRAMS.] If a direct appropriation from the general fund to 189.33 the department of children, families, and learning for an 189.34 education aid or grant authorized under section 124D.135, 189.35 124D.16, 124D.20, 124D.21, 124D.22, 124D.52, 124D.53124D.531, 189.36 124D.54, 124D.55, or 124D.56 exceeds the amount required, the 190.1 commissioner of children, families, and learning may transfer 190.2 the excess to any education aid or grant appropriation that is 190.3 insufficiently funded under these sections. Excess 190.4 appropriations shall be allocated proportionately among aids or 190.5 grants that have insufficient appropriations. The commissioner 190.6 of finance shall make the necessary transfers among 190.7 appropriations according to the determinations of the 190.8 commissioner of children, families, and learning. If the amount 190.9 of the direct appropriation for the aid or grant plus the amount 190.10 transferred according to this subdivision is insufficient, the 190.11 commissioner shall prorate the available amount among eligible 190.12 districts. The state is not obligated for any additional 190.13 amounts. 190.14 Sec. 6. [REPEALER.] 190.15 Laws 2000, chapter 254, section 30; and Laws 2000, chapter 190.16 489, article 1, section 18, are repealed. 190.17 Sec. 7. [GENERAL EFFECTIVE DATE OF ACT.] 190.18 If a section in this act does not specify its effective 190.19 date, the section is effective July 1, 2001, unless the language 190.20 or context clearly indicates that a different effective date is 190.21 intended.